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2025-08-11 City Council Agenda Packet
CITY COUNCIL Regular Meeting Monday, August 11, 2025 Council Chambers & Hybrid 5:30 PM 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@CityofPaloAlto.org 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@CityofPaloAlto.org 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 August 11, 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). STUDY SESSION (Item 1: 6:15 - 7:15 PM, Item 2: 7:15 - 8:15 PM) 1.4256 El Camino Real [25PLN-00095]. Request for Council Prescreening to Rezone the Subject Property from Commercial Services to Planned Community/Planned Home Zoning and to Allow Construction of a Multi-Family Apartment Complex with 120 Units in a Six-Story Structure on a 25,950-Square-Foot (0.6 Acre) Site. CEQA Status: Not a Project. 2.332 Forest Avenue [25PLN-00130]. Request for Council Prescreening to Rezone the Subject Property from Multifamily Residential (RM-40) to Planned Home Zoning (PHZ) and to Allow Construction of a New Multi-Family Apartment Complex with 82 units in an Eight-Story Structure on a 25,000 Square Foot (0.57 Acre) Site. CEQA Status: Not a Project. CONSENT CALENDAR (8:15 - 8:20 PM) Items will be voted in one motion unless removed from the calendar by three Council Members. 3.Approval of Minutes from June 9, June 16, and June 17, 2025 Meetings 4.Ordinance Adopting the 2025 Fire Hazard Severity Zone Map Issued by the State Fire Marshal 5.Adoption of Memorandums of Agreement with the Palo Alto Police Officers’ Association (PAPOA) and the Palo Alto Police Managers Association (PMA) for Terms Ending June 30, 2028, and Corresponding Salary Schedules; CEQA Status – Not a Project 6.Adoption of a Resolution Establishing Fiscal Year 2026 Property Tax Levy for General Obligation Bonds (Measure N Libraries) 2 August 11, 2025 Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas. 7.Adopt a Resolution to Modify Evergreen Park-Mayfield Residential Preferential Parking Program Employee Permit Allotment and Zone Revisions and Create New Two-Hour Parking Areas Adjacent to El Camino Real; CEQA Status: Exempt pursuant to CEQA Guidelines Sections 15061(b)(3) and 15301. 8.Adopt a Council Chambers Use Policy as recommended by the Policy and Services Committee and Adopt an Ordinance Adding Use of Council Chambers Fees to the FY 2026 Municipal Fee Schedule; CEQA status: Not a project 9.Approval of Five (5) On-Call Consulting Contracts to Provide Long Term Planning Policy Development support for the Planning and Development Services over a Five-Year Term, as needed: 1) Aaron Welch Planning, 2) Ascent Environmental, Inc. 3) Lexington Planning LLC, 4) PlaceWorks, Inc., 5) Raimi & Associates Inc. in an amount not to exceed $2,000,000; CEQA Status: Not a Project. 10.Approval of Increase of Construction Contingency for Contract No. C24189237 with SAK Construction, LCC in the amount of $1,800,000, Funded by the Wastewater Treatment Enterprise Fund for the Joint Intercepting Sewer Rehabilitation (Phase 1) Project (WQ 24000), and Approval of a Budget Amendment in the Wastewater Treatment Fund; CEQA Status - Exempt under CEQA Guidelines Section 15301 (Repairs to Existing Facilities) 11.Approval of Amendment No. 1 to Contract No. C22182051 with EPI-USE Labs LLC to Increase the Compensation by $939,675 for the City’s AWS Cloud and SAP Basis Support Services and Extending the Term by 12 months to December 31, 2026; CEQA status - exempt under 15061(b)(3). 12.Approval of Amendment #1 to Contract C23184669A With LifeMoves to Extend the Contract by Two Years Through July 1, 2025 – June 30, 2027 in the Amount of $512,377 for a Total Contract Value Not To Exceed $972,377 for the Provision of Homeless Outreach Service; and Amend the FY 2026 Budget in the General Fund and the Permanent Local Housing Allocation (PLHA) Grant Fund; CEQA Status – Not A Project. 13.QUASI-JUDICIAL. 3150 El Camino Real [24PLN-00231]: Approval of a Vesting Tentative Map to Merge Five Parcels Together to Create One 111,030-Square-Foot Parcel to Facilitate Construction of 368 New Residential Rental Units. CEQA Status: Streamlined CEQA Review in Accordance with Section 15183. Zoning District: CS (Service Commercial). Supplemental Report added 3 August 11, 2025 Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas. 14.FIRST READING: Adoption of an Ordinance to align chair and vice chair selection language for the Parks and Recreation Commission (Palo Alto Municipal Code Ch. 2.25) and the Architectural Review Board (Palo Alto Municipal Code Ch. 2.21) with the City’s other Boards, Commissions, and Committees (BCCs); and Adoption of a Resolution doing the same for the Storm Water Management Oversight Committee – CEQA Status: Not a Project 15.FIRST READING: Adoption of an Ordinance Adding PAMC Chapter 16.15 to Restate Procedures for Expedited Permitting of Electric Vehicle Charging Systems to Comply with State Law. CEQA Status: Exempt under CEQA Guidelines Section 15061(b)(3). CITY MANAGER COMMENTS (8:20 - 8:35 PM) BREAK (15 MINUTES) ACTION ITEMS (Item 16: 8:50 - 9:05 PM, Item 17: 9:05 - 10:30 PM) Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished Business and Council Matters. 16.PUBLIC HEARING: Consideration of Objections for Weed Abatement Assessments; and Adoption of Resolution Confirming the Weed Abatement Report and Ordering Abatement Costs to be a Special Assessment on the Properties Specified in the Report; CEQA status - categorically exempt. 17.Approval of Resolutions Amending the Amended and Restated Water Supply Agreement Between the City and County of San Francisco and Wholesale Customers in Alameda County, San Mateo County and Santa Clara County and the Updated Tier 2 Drought Response Implementation Plan; CEQA Status: Not a Project and Categorically Exempt under CEQA Guidelines Sec. 15307, 15308 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.City Council Summer Recess Report 4 August 11, 2025 Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas. B.City of Palo Alto Monthly Investment Activity Report for May 2025 (Unaudited) C.City of Palo Alto Monthly Investment Activity Report June 2025 (Unaudited) D.Fiscal Year 2025 Annual Evaluation Report for the Santa Clara County Multi-Jurisdictional Program for Public Information on Flood Preparedness and Awareness, and the Resulting Community Rating System Flood Insurance Discounts OTHER INFORMATION Standing Committee Meetings this week Policy & Services Committee August 12, 2025 Public Comment Letters Schedule of Meetings SUPPLEMENTAL / AMENDED AGENDA ITEMS 13.QUASI-JUDICIAL. 3150 El Camino Real [24PLN-00231]: Approval of a Vesting Tentative Map to Merge Five Parcels Together to Create One 111,030-Square-Foot Parcel to Facilitate Construction of 368 New Residential Rental Units. CEQA Status: Streamlined CEQA Review in Accordance with Section 15183. Zoning District: CS (Service Commercial). Supplemental Report added 5 August 11, 2025 Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas. 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@cityofpaloalto.org. 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. ◦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@cityofpaloalto.org. Requests for assistance or accommodations must be submitted at least 24 hours in advance of the meeting, program, or service. 6 August 11, 2025 Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas. 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. 7 August 11, 2025 Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas. City Council Staff Report From: City Manager Report Type: STUDY SESSION Lead Department: Planning and Development Services Meeting Date: August 11, 2025 Report #:2505-4640 TITLE 4256 El Camino Real [25PLN-00095]. Request for Council Prescreening to Rezone the Subject Property from Commercial Services to Planned Community/Planned Home Zoning and to Allow Construction of a Multi-Family Apartment Complex with 120 Units in a Six-Story Structure on a 25,950-Square-Foot (0.6 Acre) Site. CEQA Status: Not a Project. RECOMMENDATION Staff recommends that Council conduct a prescreening and provide informal comments regarding the applicant’s request to rezone 4265 El Camino Real from Service Commercial (CS) to Planned Community/Planned Home Zoning (PHZ).1 Comments provided during the prescreening process are not binding on the City nor the applicant. EXECUTIVE SUMMARY This prescreening is a request by the applicant to rezone the subject property, which is currently zoned Service Commercial (CS) to “Planned Home Zoning (PHZ).” The project site is 25,950 square feet, and currently has a valid Planning Entitlement for a five-story hotel. The new project includes construction of a 92,700-square-foot building (3.57:1 Floor Area Ratio) with 120 residential rental units. In accordance with Palo Alto Municipal Code (PAMC) Section 18.79.030(A), a prescreening review is required for legislative changes, including rezoning, prior to submittal of a formal application. Prescreenings are intended to solicit early feedback on proposed projects and, like all study sessions, cannot result in any formal action. Since this proposal may return to the City Council as a formal application, Councilmembers should refrain from forming firm opinions supporting or opposing the project. Following this prescreening, the applicant may choose to file a formal application to amend the zoning for the site. Planned Community Rezoning applications require an initial review by the Planning and Transportation Commission (PTC) followed by a formal recommendation from the 1 Referred to in this report as "Planned Home Zoning" to emphasize the focus on housing as the benefit to the community. PAMC Section 18.38, which outlines the requirement and process for Planned Community (PC) Zoning, remains the underlying code supporting application of this policy. Item 1 Item 1 Staff Report Item 1: Staff Report Pg. 1 Packet Pg. 8 of 627 Architectural Review Board, a formal recommendation from the PTC, and Council’s final decision as set forth in PAMC Chapter 18.38. BACKGROUND The building and demolition permits for the hotel project were issued in 2023 and demolition work is complete. Therefore, the site is currently vacant. The building permits for the approved hotel will expire in September 2025 and may apply for a 180-day extension prior to then. The permit cannot be further extended beyond March 2026. Item 1 Item 1 Staff Report Item 1: Staff Report Pg. 2 Packet Pg. 9 of 627 Surrounding Uses ANALYSIS Item 1 Item 1 Staff Report Item 1: Staff Report Pg. 3 Packet Pg. 10 of 627 City’s Regional Housing Allocation Needs (RHNA) buffer. A 3.57:1 FAR where a maximum of 0.6 FAR is allowed for residential use (2.85 is allowed under the HIP; 3.5 would be allowed under the HIP if the it were a Housing Element opportunity site); An 87% lot coverage where up to 50% is allowed (100% is allowed under the HIP); 79 feet, six inches height where up to 50 feet is allowed (60 feet is allowed under the HIP); No retail-like use(s), where 3,300 square feet of retail-like use(s) is required (see further discussion below); 121 square feet of useable open space per unit where minimum of 150 square feet are required. The CS district allows for this to be a combination of private and shared open space. 100 parking spaces where 140 parking spaces are required, prior to adjustments (125 would be required under the HIP); and No loading space is proposed. Stepback (PAMC 18.24.050(b)(1)): The building massing as proposed is not stepped back where it is more than 20 feet taller the average height of an adjacent building. This step back would start within two vertical feet of the height of the adjacent building. The step back would be a minimum depth of six feet along both the façade on the primary building frontage and the facing façade of the adjacent building, and the step shall occur for a minimum of 70% of each façade length. Item 1 Item 1 Staff Report Item 1: Staff Report Pg. 4 Packet Pg. 11 of 627 Façade Modulation (PAMC 18.24.050(b)(3)): Additional information would be needed to analyze the façade modulation depth; however, it appears that the recesses may need to be deeper in some areas Parking Location/Screening (PAMC 18.24.060(b)(7)(B)): This project proposes ground- level parking rather than underground. In order to do so, it must also be lined with commercial or habitable uses with a minimum depth of 20 feet along the street frontage. The alternative is to fully underground the parking (PAMC 18.24.060(c)(7)). Privacy and Transitions to Residential Uses (PAMC 18.24.050(b)(2)(D) and (E)): The proposed balconies and windows within 30 feet of windows, balconies, and private open space at Palo Alto Redwoods do not utilize privacy measures such as high sills, obscured glazing, or angling away from the property lines. A sight line analysis will be required in the formal submittal. Miscellaneous: Some details, particularly regarding landscaping, are not included in the conceptual plans. As the project moves forward to the formal review, additional Objective Design Standards may be identified. Not all projects are required to meet the Objective Design Standards, as a project may opt to use the subjective Contextual Design Criteria instead. Retail Preservation Prior to the demolition associated with the current entitlement, this property was the location of Su Zhe Eatery. The previous building was 3,300 square feet. The approved hotel is a retail- like use, and therefore the hotel entitlement was consistent with the Retail Preservation requirements (PAMC 18.40.180). However, the proposed residential project would not be consistent with the City’s Retail Preservation requirements, as it is not eligible for the Housing Element Opportunity Site exemption. Prior to April 2025, it could have been allowed to replace only 1,500 as a HIP project. At this time, under the most recent code change that exemption was removed for non-Housing Element Sites along El Camino Real (as part of an “interim retail node”). If retained in a Retail Preservation Node, this project would need to provide approximately 3,300 square feet of a retail or retail-like use. However, a revised El Camino Real Retail Node map has been prepared and recommended by the PTC. The revised map recommended by PTC does not include this site in a Retail Preservation Node and is expected to be considered by Council prior to submittal of a formal application on this project. PC Special Requirements The project would be subject to one of the special standards for PCs as set forth in PAMC Section 18.38.150, as there is one R-1 zoned property within 150 feet of the project site. However, the R-1 zoned property is located approximately 149 feet from the site; therefore, all portions of the proposed improvements are outside the 150 foot setback and are not subject to the height limitations required for structures within 150 feet of properties zone R-1. The site is Item 1 Item 1 Staff Report Item 1: Staff Report Pg. 5 Packet Pg. 12 of 627 also not abutting an RE, R-1, R-2, RMD, RM, or residential PC district. Therefore, the other special requirements for setbacks and daylight plane do not apply. Parking Item 1 Item 1 Staff Report Item 1: Staff Report Pg. 6 Packet Pg. 13 of 627 Enclosure as defined in PAMC 18.54.060(a)(2)(B). Twelve short-term bicycle stalls will also be available, consistent with the zoning code. 3 provides greater weight and flexibility towards providing very-low income units, however this proposal falls short of that with a weighted value of only 17.1% and would need to be adjusted to meet the 20% threshold. 4256 El Camino Real Below Market Rate Unit Calculation Income Level Area Median Income Weighted Value Number of Units % of Actual Units Weighted % Extremely-low Income 16-30%1.9 0 0.0%0% Very-low Income 31-50%1.9 1 0.8%2% Low Income 51-80%1.2 14 11.7%14%Below Market Rate Units Moderate Income 81-120%0.6 3 2.5%2% Typical Units Above Moderate & Market Rate 121% +0 102 0% Total 120 15.0%17.1% POLICY IMPACT FISCAL/RESOURCE IMPACT 3 June 23, 2020 Council staff report. https://www.paloalto.gov/files/assets/public/v/1/agendas-minutes- reports/reports/city-manager-reports-cmrs/year-archive/2020/id-10715.pdf Item 1 Item 1 Staff Report Item 1: Staff Report Pg. 7 Packet Pg. 14 of 627 potential transient occupancy tax revenue that may have been obtained through development of the hotel. However, there would be no loss in existing revenue as the site is currently vacant. STAKEHOLDER ENGAGEMENT Increased traffic congestion Not enough parking for the proposed number of units, as well as the parking spaces proposed in parking lift systems A lack of setbacks and/or stepbacks from the neighboring residences Privacy between the Palo Alto Redwoods residences and the proposed projects’ Importance of protecting existing redwood trees, including for privacy ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: Jonathan Lait, Planning and Development Services Director Item 1 Item 1 Staff Report Item 1: Staff Report Pg. 8 Packet Pg. 15 of 627 Crowne Plaza Cabana Hotel Palo Alto_Redwoods Sky Ranch Motel ' 113.2' 57.0' 57.0'71.6' 108.4'75.0' 108.9' 60.0' 50.4' 110.9' .4' 9.6' 49.6' 10.4' 110.4' 0' 110.9' 60.0' 109.9'60.0' 110.4' 60.0' 109.4'60.0' 109.9' 60.0' 108.9'60.0' 109.4' 173.5' 16.2'14.0' 20.0'14.0' 83. 1 147.3' 163.5' 29.0' 95.2' 29.0' 78.3' 15.7' 80.0' 60.0' 125.0' 60.0' 125.0' 358.7 27.9' 173.5' 16.2' 14.0'20.0'14.0' 30.2' 151.2' 40.2'10.0' 19.0' 10.0' 17.0' 53.0' 11.3' 25.0' 10.5' 91.2' 12.6' 34.1' 12.7' 16.0' 109.7' 23.0' 40.2' 9.1' 24.3' 6.0' 126.8' 30.2' 151.2' 40.2'10.0' 19.0' 10.0' 17.0' 53.0' 11.3' 25.0' 10.5' 91.2' 12.6' 34.1' 12.7' 16.0' 109.7' 23.0' 40.2' 9.1' 24.3' 6.0' 126.8' 30.2' 151.2' 40.2'10.0' 19.0' 10.0' 17.0' 53.0' 11.3' 25.0' 10.5' 91.2' 12.6' 34.1' 12.7' 16.0' 109.7' 23.0' 40.2' 9.1' 24.3' 6.0' 126.8' 30.2' 151.2' 40.2'10.0' 19.0' 10.0' 17.0' 53.0' 11.3' 25.0' 10.5' 91.2' 12.6' 34.1' 12.7' 16.0' 109.7' 23.0' 40.2' 9.1' 24.3' 6.0' 126.8' 30.2' 151.2' 40.2'10.0' 19.0' 10.0' 17.0' 53.0' 11.3' 25.0' 10.5' 91.2' 12.6' 34.1' 12.7' 16.0' 109.7' 23.0' 40.2' 9.1' 24.3' 6.0' 126.8' 30.2' 151.2' 40.2'10.0' 19.0' 10.0' 17.0' 53.0' 11.3' 25.0' 10.5' 91.2' 12.6' 34.1' 12.7' 16.0' 109.7' 23.0' 40.2' 9.1' 24.3' 6.0' 126.8' 30.2' 151.2' 40.2'10.0' 19.0' 10.0' 17.0' 53.0' 11.3' 25.0' 10.5' 91.2' 12.6' 34.1' 12.7' 16.0' 109.7' 23.0' 40.2' 9.1' 24.3' 6.0' 126.8' 30.2' 151.2' 40.2'10.0' 19.0' 10.0' 17.0' 53.0' 11.3' 25.0' 10.5' 91.2' 12.6' 34.1' 12.7' 16.0' 109.7' 23.0' 40.2' 9.1' 24.3' 6.0' 126.8' 30.2' 151.2' 40.2'10.0' 19.0' 10.0' 17.0' 53.0' 11.3' 25.0' 10.5' 91.2' 12.6' 34.1' 12.7' 16.0' 109.7' 23.0' 40.2' 9.1' 24.3' 6.0' 126.8' 30.2' 151.2' 40.2'10.0' 19.0' 10.0' 17.0' 53.0' 11.3' 25.0' 10.5' 91.2' 12.6' 34.1' 12.7' 16.0' 109.7' 23.0' 40.2' 9.1' 24.3' 6.0' 126.8' 30.2' 151.2' 40.2'10.0' 19.0' 10.0' 17.0' 53.0' 11.3' 25.0' 10.5' 91.2' 12.6' 34.1' 12.7' 16.0' 109.7' 23.0' 40.2' 9.1' 24.3' 6.0' 126.8' 30.2' 151.2' 40.2'10.0' 19.0' 10.0' 17.0' 53.0' 11.3' 25.0' 10.5' 91.2' 12.6' 34.1' 12.7' 16.0' 109.7' 23.0' 40.2' 9.1' 24.3' 6.0' 126.8' 30.2' 151.2' 40.2'10.0' 19.0' 10.0' 17.0' 53.0' 11.3' 25.0' 10.5' 91.2' 12.6' 34.1' 12.7' 16.0' 109.7' 23.0' 40.2' 9.1' 24.3' 6.0' 126.8' 30.2' 151.2' 40.2'10.0' 19.0' 10.0' 17.0' 53.0' 11.3' 25.0' 10.5' 91.2' 12.6' 34.1' 12.7' 16.0' 109.7' 23.0' 40.2' 9.1' 24.3' 6.0' 126.8' 30.2' 151.2' 40.2'10.0' 19.0' 10.0' 17.0' 53.0' 11.3' 25.0' 10.5' 91.2' 12.6' 34.1' 12.7' 16.0' 109.7' 23.0' 40.2' 9.1' 24.3' 6.0' 126.8' 30.2' 151.2' 40.2'10.0' 19.0' 10.0' 17.0' 53.0' 11.3' 25.0' 10.5' 91.2' 12.6' 34.1' 12.7' 16.0' 109.7' 23.0' 40.2' 9.1' 24.3' 6.0' 126.8' 30.2' 151.2' 40.2'10.0' 19.0' 10.0' 17.0' 53.0' 11.3' 25.0' 10.5' 91.2' 12.6' 34.1' 12.7' 16.0' 109.7' 23.0' 40.2' 9.1' 24.3' 6.0' 126.8' 30.2' 151.2' 40.2'10.0' 19.0' 10.0' 17.0' 53.0' 11.3' 25.0' 10.5' 91.2' 12.6' 34.1' 12.7' 16.0' 109.7' 23.0' 40.2' 9.1' 24.3' 6.0' 126.8' 30.2' 151.2' 40.2'10.0' 19.0' 10.0' 17.0' 53.0' 11.3' 25.0' 10.5' 91.2' 12.6' 34.1' 12.7' 16.0' 109.7' 23.0' 40.2' 9.1' 24.3' 6.0' 126.8' 30.2' 151.2' 40.2'10.0' 19.0' 10.0' 17.0' 53.0' 11.3' 25.0' 10.5' 91.2' 12.6' 34.1' 12.7' 16.0' 109.7' 23.0' 40.2' 9.1' 24.3' 6.0' 126.8' 30.2' 151.2' 40.2'10.0' 19.0' 10.0' 17.0' 53.0' 11.3' 25.0' 10.5' 91.2' 12.6' 34.1' 12.7' 16.0' 109.7' 23.0' 40.2' 9.1' 24.3' 6.0' 126.8' 30.2' 151.2' 40.2'10.0' 19.0' 10.0' 17.0' 53.0' 11.3' 25.0' 10.5' 91.2' 12.6' 34.1' 12.7' 16.0' 109.7' 23.0' 40.2' 9.1' 24.3' 6.0' 126.8' 30.2' 151.2' 40.2'10.0' 19.0' 10.0' 17.0' 53.0' 11.3' 25.0' 10.5' 91.2' 12.6' 34.1' 12.7' 16.0' 109.7' 23.0' 40.2' 9.1' 24.3' 6.0' 126.8' 225.2' 60.0' 38.5'29.0' 53.7' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 153.2' 151.2' 40.2' 10.0' 19.0' 10.0'17.0' 53.0' 11.3' 25.0' 10.5' 225.2' 60.0' 38.5'29.0' 53.7' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 153.2' 151.2' 40.2' 10.0' 19.0' 10.0'17.0' 53.0' 11.3' 25.0' 10.5' 225.2' 60.0' 38.5'29.0' 53.7' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 153.2' 151.2' 40.2' 10.0' 19.0' 10.0'17.0' 53.0' 11.3' 25.0' 10.5' 225.2' 60.0' 38.5'29.0' 53.7' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 153.2' 151.2' 40.2' 10.0' 19.0' 10.0'17.0' 53.0' 11.3' 25.0' 10.5' 225.2' 60.0' 38.5'29.0' 53.7' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 153.2' 151.2' 40.2' 10.0' 19.0' 10.0'17.0' 53.0' 11.3' 25.0' 10.5' 225.2' 60.0' 38.5'29.0' 53.7' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 153.2' 151.2' 40.2' 10.0' 19.0' 10.0'17.0' 53.0' 11.3' 25.0' 10.5' 225.2' 60.0' 38.5'29.0' 53.7' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 153.2' 151.2' 40.2' 10.0' 19.0' 10.0'17.0' 53.0' 11.3' 25.0' 10.5' 225.2' 60.0' 38.5'29.0' 53.7' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 153.2' 151.2' 40.2' 10.0' 19.0' 10.0'17.0' 53.0' 11.3' 25.0' 10.5' 225.2' 60.0' 38.5'29.0' 53.7' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 153.2' 151.2' 40.2' 10.0' 19.0' 10.0'17.0' 53.0' 11.3' 25.0' 10.5' 225.2' 60.0' 38.5'29.0' 53.7' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 153.2' 151.2' 40.2' 10.0' 19.0' 10.0'17.0' 53.0' 11.3' 25.0' 10.5' 225.2' 60.0' 38.5'29.0' 53.7' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 153.2' 151.2' 40.2' 10.0' 19.0' 10.0'17.0' 53.0' 11.3' 25.0' 10.5' 225.2' 60.0' 38.5'29.0' 53.7' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 153.2' 151.2' 40.2' 10.0' 19.0' 10.0'17.0' 53.0' 11.3' 25.0' 10.5' 225.2' 60.0' 38.5'29.0' 53.7' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 153.2' 151.2' 40.2' 10.0' 19.0' 10.0'17.0' 53.0' 11.3' 25.0' 10.5' 225.2' 60.0' 38.5'29.0' 53.7' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 153.2' 151.2' 40.2' 10.0' 19.0' 10.0'17.0' 53.0' 11.3' 25.0' 10.5' 225.2' 60.0' 38.5'29.0' 53.7' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 153.2' 151.2' 40.2' 10.0' 19.0' 10.0'17.0' 53.0' 11.3' 25.0' 10.5' 225.2' 60.0' 38.5'29.0' 53.7' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 153.2' 151.2' 40.2' 10.0' 19.0' 10.0'17.0' 53.0' 11.3' 25.0' 10.5' 225.2' 60.0' 38.5'29.0' 53.7' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 153.2' 151.2' 40.2' 10.0' 19.0' 10.0'17.0' 53.0' 11.3' 25.0' 10.5' 225.2' 60.0' 38.5'29.0' 53.7' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 153.2' 151.2' 40.2' 10.0' 19.0' 10.0'17.0' 53.0' 11.3' 25.0' 10.5' 225.2' 60.0' 38.5'29.0' 53.7' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 153.2' 151.2' 40.2' 10.0' 19.0' 10.0'17.0' 53.0' 11.3' 25.0' 10.5' 225.2' 60.0' 38.5'29.0' 53.7' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 153.2' 151.2' 40.2' 10.0' 19.0' 10.0'17.0' 53.0' 11.3' 25.0' 10.5' 225.2' 60.0' 38.5'29.0' 53.7' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 153.2' 151.2' 40.2' 10.0' 19.0' 10.0'17.0' 53.0' 11.3' 25.0' 10.5' 225.2' 60.0' 38.5'29.0' 53.7' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 153.2' 151.2' 40.2' 10.0' 19.0' 10.0'17.0' 53.0' 11.3' 25.0' 10.5' 225.2' 60.0' 38.5'29.0' 53.7' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 153.2' 151.2' 40.2' 10.0' 19.0' 10.0'17.0' 53.0' 11.3' 25.0' 10.5' 225.2' 60.0' 38.5'29.0' 53.7' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 153.2' 151.2' 40.2' 10.0' 19.0' 10.0'17.0' 53.0' 11.3' 25.0' 10.5' 225.2' 60.0' 38.5'29.0' 53.7' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 153.2' 151.2' 40.2' 10.0' 19.0' 10.0'17.0' 53.0' 11.3' 25.0' 10.5' 225.2' 60.0' 38.5'29.0' 53.7' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 153.2' 151.2' 40.2' 10.0' 19.0' 10.0'17.0' 53.0' 11.3' 25.0' 10.5' 225.2' 60.0' 38.5'29.0' 53.7' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 153.2' 151.2' 40.2' 10.0' 19.0' 10.0'17.0' 53.0' 11.3' 25.0' 10.5' 225.2' 60.0' 38.5'29.0' 53.7' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 153.2' 151.2' 40.2' 10.0' 19.0' 10.0'17.0' 53.0' 11.3' 25.0' 10.5' 225.2' 60.0' 38.5'29.0' 53.7' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 153.2' 151.2' 40.2' 10.0' 19.0' 10.0'17.0' 53.0' 11.3' 25.0' 10.5' 225.2' 60.0' 38.5'29.0' 53.7' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 153.2' 151.2' 40.2' 10.0' 19.0' 10.0'17.0' 53.0' 11.3' 25.0' 10.5' 113.2' 240.2' 24.3'9.1' 40.2' 23.0' 109.7' 16.0'12.7'34.1'12.6' 144.9'113.2' 240.2' 24.3'9.1' 40.2' 23.0' 109.7' 16.0'12.7'34.1'12.6' 144.9'113.2' 240.2' 24.3'9.1' 40.2' 23.0' 109.7' 16.0'12.7'34.1'12.6' 144.9'113.2' 240.2' 24.3'9.1' 40.2' 23.0' 109.7' 16.0'12.7'34.1'12.6' 144.9'113.2' 240.2' 24.3'9.1' 40.2' 23.0' 109.7' 16.0'12.7'34.1'12.6' 144.9'113.2' 240.2' 24.3'9.1' 40.2' 23.0' 109.7' 16.0'12.7'34.1'12.6' 144.9'113.2' 240.2' 24.3'9.1' 40.2' 23.0' 109.7' 16.0'12.7'34.1'12.6' 144.9'113.2' 240.2' 24.3'9.1' 40.2' 23.0' 109.7' 16.0'12.7'34.1'12.6' 144.9'113.2' 240.2' 24.3'9.1' 40.2' 23.0' 109.7' 16.0'12.7'34.1'12.6' 144.9'113.2' 240.2' 24.3'9.1' 40.2' 23.0' 109.7' 16.0'12.7'34.1'12.6' 144.9'113.2' 240.2' 24.3'9.1' 40.2' 23.0' 109.7' 16.0'12.7'34.1'12.6' 144.9'113.2' 240.2' 24.3'9.1' 40.2' 23.0' 109.7' 16.0'12.7'34.1'12.6' 144.9'113.2' 240.2' 24.3'9.1' 40.2' 23.0' 109.7' 16.0'12.7'34.1'12.6' 144.9'113.2' 240.2' 24.3'9.1' 40.2' 23.0' 109.7' 16.0'12.7'34.1'12.6' 144.9'113.2' 240.2' 24.3'9.1' 40.2' 23.0' 109.7' 16.0'12.7'34.1'12.6' 144.9'113.2' 240.2' 24.3'9.1' 40.2' 23.0' 109.7' 16.0'12.7'34.1'12.6' 144.9'113.2' 240.2' 24.3'9.1' 40.2' 23.0' 109.7' 16.0'12.7'34.1'12.6' 144.9'113.2' 240.2' 24.3'9.1' 40.2' 23.0' 109.7' 16.0'12.7'34.1'12.6' 144.9'113.2' 240.2' 24.3'9.1' 40.2' 23.0' 109.7' 16.0'12.7'34.1'12.6' 144.9'113.2' 240.2' 24.3'9.1' 40.2' 23.0' 109.7' 16.0'12.7'34.1'12.6' 144.9'113.2' 240.2' 24.3'9.1' 40.2' 23.0' 109.7' 16.0'12.7'34.1'12.6' 144.9'113.2' 240.2' 24.3'9.1' 40.2' 23.0' 109.7' 16.0'12.7'34.1'12.6' 144.9'113.2' 240.2' 24.3'9.1' 40.2' 23.0' 109.7' 16.0'12.7'34.1'12.6' 144.9'113.2' 240.2' 24.3'9.1' 40.2' 23.0' 109.7' 16.0'12.7'34.1'12.6' 144.9'113.2' 240.2' 24.3'9.1' 40.2' 23.0' 109.7' 16.0'12.7'34.1'12.6' 144.9'113.2' 240.2' 24.3'9.1' 40.2' 23.0' 109.7' 16.0'12.7'34.1'12.6' 144.9'113.2' 240.2' 24.3'9.1' 40.2' 23.0' 109.7' 16.0'12.7'34.1'12.6' 144.9'113.2' 240.2' 24.3'9.1' 40.2' 23.0' 109.7' 16.0'12.7'34.1'12.6' 144.9'113.2' 240.2' 24.3'9.1' 40.2' 23.0' 109.7' 16.0'12.7'34.1'12.6' 144.9'113.2' 240.2' 24.3'9.1' 40.2' 23.0' 109.7' 16.0'12.7'34.1'12.6' 144.9' 225.2' 60.0' 38.5'29.0' 53.7' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 153.2' 151.2' 40.2' 10.0' 19.0' 10.0'17.0' 53.0' 11.3' 25.0' 10.5' 113.2' 240.2' 24.3'9.1' 40.2' 23.0' 109.7' 16.0'12.7'34.1'12.6' 144.9' 175.2' 94.1' 80.0' 15.6' 78.3' 29.0' 41.5' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 175.2' 94.1' 80.0' 15.6' 78.3' 29.0' 41.5' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 175.2' 94.1' 80.0' 15.6' 78.3' 29.0' 41.5' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 175.2' 94.1' 80.0' 15.6' 78.3' 29.0' 41.5' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 175.2' 94.1' 80.0' 15.6' 78.3' 29.0' 41.5' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 175.2' 94.1' 80.0' 15.6' 78.3' 29.0' 41.5' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 175.2' 94.1' 80.0' 15.6' 78.3' 29.0' 41.5' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 175.2' 94.1' 80.0' 15.6' 78.3' 29.0' 41.5' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 175.2' 94.1' 80.0' 15.6' 78.3' 29.0' 41.5' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 175.2' 94.1' 80.0' 15.6' 78.3' 29.0' 41.5' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 175.2' 94.1' 80.0' 15.6' 78.3' 29.0' 41.5' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 175.2' 94.1' 80.0' 15.6' 78.3' 29.0' 41.5' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 175.2' 94.1' 80.0' 15.6' 78.3' 29.0' 41.5' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 175.2' 94.1' 80.0' 15.6' 78.3' 29.0' 41.5' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 175.2' 94.1' 80.0' 15.6' 78.3' 29.0' 41.5' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 175.2' 94.1' 80.0' 15.6' 78.3' 29.0' 41.5' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 175.2' 94.1' 80.0' 15.6' 78.3' 29.0' 41.5' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 175.2' 94.1' 80.0' 15.6' 78.3' 29.0' 41.5' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 175.2' 94.1' 80.0' 15.6' 78.3' 29.0' 41.5' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 175.2' 94.1' 80.0' 15.6' 78.3' 29.0' 41.5' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 175.2' 94.1' 80.0' 15.6' 78.3' 29.0' 41.5' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 175.2' 94.1' 80.0' 15.6' 78.3' 29.0' 41.5' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 175.2' 94.1' 80.0' 15.6' 78.3' 29.0' 41.5' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 175.2' 94.1' 80.0' 15.6' 78.3' 29.0' 41.5' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 175.2' 94.1' 80.0' 15.6' 78.3' 29.0' 41.5' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 175.2' 94.1' 80.0' 15.6' 78.3' 29.0' 41.5' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 175.2' 94.1' 80.0' 15.6' 78.3' 29.0' 41.5' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 175.2' 94.1' 80.0' 15.6' 78.3' 29.0' 41.5' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 175.2' 94.1' 80.0' 15.6' 78.3' 29.0' 41.5' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 175.2' 94.1' 80.0' 15.6' 78.3' 29.0' 41.5' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 175.2' 94.1' 80.0' 15.6' 78.3' 29.0' 41.5' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 175.2' 94.1' 80.0' 15.6' 78.3' 29.0' 41.5' 47.8' 6.5' 48.5' 29.9'5.0'30.8' 54.1' 77.3' 89.7' 42.0' 35.7' 51.3'51.3' 101.6' 72.7'72.7' 67.2' 82.7' .' 81.6'81.6' 34.8' 87.7' 102.0' 67.4' 72.4'72.4' 34.3' 87.6' 120.0'189.9' 189.9' 189.9' 189.9' 189.9' 189.9' 189.9' 149.5' 149.9' 112.1' 100.0' 100.0' 112.1' 4232 42504275 0 62 563 553 550 4230 4234 4238 4235 4245 4251 4257 4265 4269 4256 4260 4290 4249 6A EL CAMINO REAL EL CAMINO REALT CTS (L) CS PC-4448 C This map is a product of theCity of Palo Alto GIS This document is a graphic representation only of best available sources. Legend Project SiteCurrent Features 0' 70' Attachment A:Location Map4256 El Camino Real CITY OF PALO ALTOINCORPORATED CALIFORNIA P a l o A l t oT h e C i t y o f APRIL 16 1894 The City of Palo Alto assumes no responsibility for any errors. ©1989 to 2016 City of Palo Altoekallas, 2025-06-12 15:23:51Attachment A. Location Map (\\cc-maps\Encompass\Admin\Personal\Planning.mdb) Item 1 Attachment A - Location Map Item 1: Staff Report Pg. 9 Packet Pg. 16 of 627 8 3 4 1 ATTACHMENT B 4265 El Camino Real, 25PLN-00095 Table 1: COMPARISON WITH CHAPTER 18.16 (CS DISTRICT), 18.14 (HOUSING INCENTIVE PROGRAM (HIP)) and 18.38.150 (PC SPECIAL REQUIREMENTS) Development Standards Regulation Required Proposed Residential Project Minimum Site Area, width and depth None 25,950 square feet (0.6 acres) Minimum Front Yard 0-10 feet to create an 8- to 12- foot effective sidewalk width (1), (2), (8) Varies 5 feet 9 inches to 16 feet 8 inches Rear Yard 10 feet for residential uses 10 feet 2 inches Interior Side Yard None 6 feet Min. yard for lot lines abutting or opposite residential districts or residential PC districts 10 feet (2) Does not apply as the abutting properties are zoned CS Not Applicable Build-to-lines 50% of frontage built to setback on El Camino Real Complies Max. Site Coverage 50% (12,975 square feet) 100% for HIP 87% (22,550 square feet) CS Max. Building Height (5) 50 feet 35 feet for portions of a site within 150 feet (or 50 feet (5)) of an abutting residential district. 60 feet for HIP 79 feet 6 inches PC Special Requirements for height 35 feet when within 150 feet of R- 1, no restriction otherwise. 79 feet 6 inches CS Daylight Plane for lot lines abutting one or more residential zone districts other than an RM- 40 or PC Zone None, as the abutting properties are zoned CS Not Applicable PC Special Requirements for Daylight Plane None, as the abutting properties are zoned CS Not Applicable Max. Floor Area Ratio (FAR)0.4:1 (10,380 square feet) for residential use, plus non- residential uses up to a total of 1.0:1 2.85:1 for HIP (73,957 square feet) 3.57:1 (92,700 square feet) 100% residential Item 1 Attachment B - Zoning Comparison Table Item 1: Staff Report Pg. 10 Packet Pg. 17 of 627 8 3 4 1 Residential Density 30 du/ac per CS Zone No maximum density per HIP 200 du/ac (120 units proposed) Minimum Useable Open Space 150 square feet per unit Common Open Space Provided: 3,170 + 5,520 = 8,690 square feet or 72.4 square feet per unit Private Open Space: 5,840 square feet or 48.7 square feet per unit Average total per unit 121.1 square feet Minimum Mixed-use Ground Floor Commercial FAR This property is subject to Retail Preservation. Previous restaurant was 3,300 square feet. 0 square feet (1) No parking or loading space, whether required or optional, shall be located in the first 10 feet adjoining the street property line of any required yard. (2) Any minimum front, street side, or interior yard shall be planted and maintained as a landscaped screen excluding areas required for access to the site. A solid wall or fence between 5 and 8 feet in height shall be constructed along any common interior lot line.. (5) Distance shall be measured from the property line of the subject site. 150-foot measurement may be reduced to 50 feet at minimum, subject to approval by the Planning Director, upon recommendation by the Architectural Review Board pursuant to criteria set forth in Chapter 18.76. (6) The initial height and slope shall be identical to those of the most restrictive residential zone abutting the site line in question. (7) 25 foot driveway access permitted regardless of frontage, build-to requirement does not apply to CC district. (8) A 12 foot sidewalk width is required along El Camino Real frontage Table 2: CONFORMANCE WITH CHAPTER 18.52 (Off-Street Parking and Loading) Type Required Proposed Vehicle Parking 1 per unit 1 bedroom or Studio 2 per unit 2+ bedroom 140 spaces total 100 spaces proposed Bicycle Parking 1 LT space per unit (120) 1 ST space per 10 units (12) 120 long term 12 short term Loading Space 1 loading space for a building with 50+ units None Item 1 Attachment B - Zoning Comparison Table Item 1: Staff Report Pg. 11 Packet Pg. 18 of 627 Item 1 Attachment C - Applicant’s Description Letter Item 1: Staff Report Pg. 12 Packet Pg. 19 of 627 Item 1 Attachment C - Applicant’s Description Letter Item 1: Staff Report Pg. 13 Packet Pg. 20 of 627 From:Kristi Bascom To:Kou, Lydia; Stone, Greer; Burt, Patrick; Lauing, Ed; Lythcott-Haims, Julie; Tanaka, Greg;Vicki.Veemker@cityofpaloalto.org; Clerk, City Cc:Sharlene Carlson; a_m_mason@yahoo.com; Julie Baskind; Laura D. Beaton Subject:Request for action on 11/13/2023 City Council Meeting Agenda Item 9 Date:Tuesday, November 7, 2023 12:56:44 PM Attachments:image001.pngPAR letter to PACC re Agenda Item 9 for 11.13.2023.pdf You don't often get email from kbascom@smwlaw.com. Learn why this is important CAUTION: This email originated from outside of the organization. Be cautiousof opening attachments and clicking on links. Dear Honorable Mayor and Councilmembers, Please accept the attached request for Council action on Item #9 on the 11/13/2023 CityCouncil agenda (Ordinance Implementing Program 1.1A and 1.1B of the Housing Element,Including: 1) New Chapter 18.14: Housing Incentives, and 2) Modifications to Base ZoningDistricts Throughout Title 18). We represent the Palo Alto Redwoods Homeowner’s Association (PAR), a community of117 market rate and affordable condominiums located at 4250 El Camino Real. For sometime, PAR has been exploring ways to ensure that their wholly-residential communityreceives protection from the impacts of neighboring commercial uses such as late nightnoise, impacts to privacy, and protection of the daylight plane. To achieve this goal forPAR, and to also benefit other existing and future residential communities in the City facingsimilar issues, we have identified a few minor zoning text amendments. The details areexplained in the attached letter, but in short, PAR is requesting Council’s support tosupplement the zoning text amendments proposed by Staff in Agenda Item #9 with theadditional language we’re proposing. We believe our amendments can be added to theOrdinance that the Council is considering for adoption which is already amending relevantsections of Title 18. We believe these additional amendments can help demonstrate Palo Alto’s commitment tosupporting residential neighborhoods. Thank you in advance for your consideration. Sincerely,Kristi Bascom Kristi Bascom Urban Planner Shute, Mihaly & Weinberger LLP 396 Hayes Street San Francisco, CA 94102-4421 p: 415/552-7272 x 202 | c: 925/872-6327 www.smwlaw.com | A San Francisco Green Business Item 1 Attachment D - 2023 Neighbor Comments Item 1: Staff Report Pg. 14 Packet Pg. 21 of 627 November 7, 2023 Via Electronic Mail Only Honorable Mayor Lydia Kou and Members of the City Council City of Palo Alto E-Mail: Lydia.Kou@cityofpaloalto.org, Greer.Stone@cityofpaloalto.org, Pat.Burt@cityofpaloalto.org, Ed.Lauing@cityofpaloalto.org, Julie.LythcottHaims@cityofpaloalto.org, Greg.Tanaka@cityofpaloalto.org, Re: 11/13/2023 City Council Meeting Agenda Item 9: Ordinance Implementing Program 1.1A and 1.1B of the Housing Element, Including: 1) New Chapter 18.14: Housing Incentives, and 2) Modifications to Base Zoning Districts Throughout Title 18 Dear Honorable Mayor and Members of the Palo Alto City Council: I am writing on behalf of the Palo Alto Redwoods Homeowners Association (“PAR”) to propose a few minor but important revisions to the Title 18 Zoning Ordinance Amendment you are considering at the Council meeting on November 13, 2023. These revisions will help ensure that higher density housing constructed on properties zoned for commercial uses will be treated like the residential uses they are. These proposed revisions will apply to new housing development as well as existing residential properties that have been built in commercial zones. The revisions will demonstrate Palo Alto’s commitment to ensuring that new neighborhoods – often created in non-traditional areas – are buffered from impacts created by commercial neighbors such as noise, reduction in access to daylight, and impacts to privacy. The specific zoning ordinance revisions proposed by PAR are shown in redline in Attachments 1 and 2 to this letter. Generally speaking, the text revisions extend protections that currently apply to “residentially zoned property” and apply them to “exclusively residential uses” as well. This means that whether a property is zoned residential, commercial, or mixed use, if the property is developed with a wholly residential use, it will be provided the same protection from inadvertent impacts. The proposed amendments are to PAMC Section 18.16.040(b), which protects residential uses from the impacts of late night activities, and to PAMC Section 18.16.060, which includes development standards for mixed-use and non-residential uses including requirements for setbacks, building height, and daylight plane. Item 1 Attachment D - 2023 Neighbor Comments Item 1: Staff Report Pg. 15 Packet Pg. 22 of 627 Honorable Mayor Lydia Kou and Members of the City Council November 7, 2023 Page 2 The proposed changes would not only provide these basic protections to the Palo Alto Redwoods community, but it would also apply other existing residential communities. Likewise, it would apply to the thousands of future residential units that the City is incentivizing through implementation of the Housing Element, many of which are likely to be sited on commercially- zoned land. Simply put, it is most fair and efficient to treat all exclusively residential properties similarly. Further, not adopting the changes could easily result in an increased burden on the City when future residents on commercially-zoned properties appeal or otherwise contest adjacent commercial development to try to get the same projections that residentially-zoned properties enjoy. In light of the City’s current efforts to update its zoning code, PAR believes this is an ideal opportunity for the City to consider these minor changes. We submitted a letter to the Planning and Transportation Commission when they reviewed the Ordinance Amending the Palo Alto Municipal Code Title 18 (Zoning) to Implement Housing Element Programs 1.1A and 1.1B at their meeting on October 11, 2023 and asked for their consideration, but they were not able to act on the request (see Attachment 3). The City Council, however, can choose to do so. PAMC Section 18.80.100 (Action by City Council) states: “After consideration of the recommendation of the planning commission, and the completion of a public hearing, if any, the council may approve, modify, or disapprove the proposed change of-district boundaries or change of any other provisions of this title. Should the council determine that a change of district boundaries or change of any other provisions of this title shall be appropriate, such change shall be accomplished by ordinance.” Therefore, PAR respectfully requests that the City Council incorporates these additional zoning text amendments into the Title 18 ordinance being considered in Item 9 at the November 13, 2023 public hearing. We believe that PAR’s proposed amendments are covered under the public noticing completed for Item 9, as it broadly described the project as an “Ordinance Implementing Program 1.1A and 1.1B of the Housing Element, Including: 1) New Chapter 18.14: Housing Incentives, and 2) Modifications to Base Zoning Districts Throughout Title 18.” The amendments proposed by PAR fit within this description. Furthermore, PAR’s proposed text amendments will not result in an increase in housing production or other impacts beyond the text amendments already identified by City Staff. We believe that the CEQA documentation identified in the staff report that covers the proposed Amendments to Title 18 (Zoning) of the Palo Alto Municipal Code (PAMC) will cover these additional text amendments as well and no additional CEQA documentation should be required. We believe that these requested amendments are aligned with the Housing Element efforts the City is currently implementing and are not incongruous with the zoning ordinance amendments the City Council is considering in Item 9. If PAR had to apply for this zoning text Item 1 Attachment D - 2023 Neighbor Comments Item 1: Staff Report Pg. 16 Packet Pg. 23 of 627 Honorable Mayor Lydia Kou and Members of the City Council November 7, 2023 Page 3 amendment in a separate process, the cost would be at least $30,0001, and would involve additional City Staff time and effort to process the application. Because these amendments will benefit all exclusively residential uses that have been, or will be, developed on commercially- zoned land and are adjacent to commercial properties, it seems reasonable to think that the City Council would prefer to incorporate these minor changes now. If the City Council decides to not incorporate the proposed revisions at this time, PAR requests that the Council direct staff to study and initiate amendments to Sections 18.16.040(b) and 18.16.060 to incorporate the changes shown in Attachments 1 and 2. PAMC Sections 18.80.080 (a) and (b) allows the Council to make a motion to initiate changes to the provisions of Title 18 of their own accord. On behalf of PAR, we truly appreciate the City Council’s consideration of this request to incorporate the text amendments shown in Attachments 1 and 2 into the Title 18 Zoning Ordinance Amendment being considered at the November 13, 2023 public hearing. Please do not hesitate to contact me if you have any questions regarding this request or if we can provide any further information that will help with the City Council’s decision. We look forward to the Council’s discussion and deliberations at the meeting on the 13th. Very truly yours, SHUTE, MIHALY & WEINBERGER LLP Kristi T. Bascom, AICP Attachments: 1: Proposed revisions to PAMC Section 18.16.040(b) 2: Proposed revisions to PAMC Section 18.16.060 3: Letter submitted by PAR to the Planning and Transportation Commission dated October 10, 2023 1710592.2 1 According to the City’s Fee Schedule: $4,484.53 deposit for the prescreening, $1,345.00 public noticing fee, $9,144.54 deposit for Zone Change (Regular and Text Amendments), and $14,957.00 for the legal review of legislative/zone change. The schedule also notes that “all fees will be recovered”, so those that are a deposit are likely to increase with no cap to the potential costs incurred by the Applicant. Item 1 Attachment D - 2023 Neighbor Comments Item 1: Staff Report Pg. 17 Packet Pg. 24 of 627 1 18.16.040 Land Uses (b) Late Night Use and Activities The following regulations restrict businesses that operate or have associated activities at any time between the hours of 10:00 p.m. and 6:00 a.m., where such site abuts or is located within 50 feet of residentially zoned properties or properties with exclusively residential uses. (1) Such businesses shall be operated in a manner to protect residential properties from excessive noise, odors, lighting or other nuisances from any sources during those hours. (2) For properties located in the CN or CS zone districts, businesses that operate or have associated activities at any time between the hours of 10:00 p.m. and 6:00 a.m. shall be required to obtain a conditional use permit. The director may apply conditions of approval as are deemed necessary to assure that the operations or activities are compatible with the nearby residentially zoned property or property developed with exclusively residential uses. Item 1 Attachment D - 2023 Neighbor Comments Item 1: Staff Report Pg. 18 Packet Pg. 25 of 627 1 18.16.060 Development Standards (a) Exclusively Non-Residential Uses Table 3 specifies the development standards for exclusively non-residential uses and alterations to non-residential uses or structures in the CN, CC, CC(2) and CS districts. These developments shall be designed and constructed in compliance with the following requirements and the context-based design criteria outlined in Section 18.16.090, provided that more restrictive regulations may be recommended by the architectural review board and approved by the director of planning and development services, pursuant to Section 18.76.020. Table 3 Exclusively Non-residential Development Standards CN CC CC(2) CS Subject to regulations in Section Minimum Site Specifications Site Area (ft 2 ) Site Width (ft) Site Depth (ft) None required Minimum Setbacks Front Yard (ft) 0 - 10' to create an 8' - 12' effective sidewalk width (1), (2), (8) None Required (8) 0 - 10' to create an 8' - 12' effective sidewalk width (1), (2), (8) 0 - 10' to create an 8' - 12' effective sidewalk width (1), (2), (8) Setback lines imposed by a special setback map pursuant to Chapter 20.08 of this code Rear Yard (ft) None required Interior Side Yard (ft) Street Side Yard (ft) 20' (2) None required Minimum Yard (ft) for lot lines abutting or opposite residential districts or residential PC districts or properties developed with exclusively residential uses 10’ (2) 10’ (2) 10’ (2) 10’ (2) Item 1 Attachment D - 2023 Neighbor Comments Item 1: Staff Report Pg. 19 Packet Pg. 26 of 627 2 CN CC CC(2) CS Subject to regulations in Section Build-To-Lines 50% of frontage built to setback (7) 33% of side street built to setback (7) Minimum setbacks from alleys for structures other than public parking garages (ft) (3) Corner lots, from rear lot line on the alley Not applicable 8’ Not applicable Corner lots, from side lot line on the alley None All lots other than corner lots 20’ Maximum Site Coverage 50% None required Maximum Height (ft) 18.08.030 Standard 25' and 2 stories 50’ 37’ (4) 50’ Portions of a site within 150 ft. of an abutting residential district (other than a PC zone) or within 150 ft. of an abutting property developed with exclusively residential uses. (9) 35’ 35’ 35’ Maximum Floor Area Ratio (FAR) 0.4:1 2.0:1 0.4:1 18.18.060(e) Maximum Floor Area Ratio (FAR) for Hotels N/A - (5) 2.0:1 2.0:1 18.18.060(d) Daylight Plane for lot lines abutting one or more residential zone districts other than an RM-40 or PC zone or for lot lines abutting a property developed with Item 1 Attachment D - 2023 Neighbor Comments Item 1: Staff Report Pg. 20 Packet Pg. 27 of 627 3 CN CC CC(2) CS Subject to regulations in Section uses. Initial Height at side or rear lot line (ft) - (6) - (6) - (6) - (6) Slope - (6) - (6) - (6) - (6) (1) No parking or loading space, whether required or optional, shall be located in the first 10 feet adjoining the street property line of any required yard. (2) Any minimum front, street side, or interior yard shall be planted and maintained as a landscaped screen excluding areas required for access to the site. A solid wall or fence between 5 and 8 feet in height shall be constructed along any common interior lot line. (3) No setback from an alley is required for a public parking garage. (4) As measured to the peak of the roof or the top of a parapet; penthouses and equipment enclosures may exceed this height limit by a maximum of five feet, but shall be limited to an area equal to no more than ten percent of the site area and shall not intrude into the daylight plane. (5) See additional regulations in subsection (e) of this Section 18.16.050. (6) The initial height and slope shall be identical to those of the most restrictive residential zone abutting the site line in question. (7) Twenty-five-foot driveway access permitted regardless of frontage; build-to requirement does not apply to CC district. (8) A 12-foot sidewalk width is required along El Camino Real frontage. (9) Distance shall be measured from the property line of the subject site. 150-foot measurement may be reduced to 50 feet at minimum, subject to approval by the Planning Director, upon recommendation by the Architectural Review Board pursuant to criteria set forth in Chapter 18.76. (b) Mixed Use and Residential Table 4 specifies the development standards for new residential mixed use developments and residential developments. These developments shall be designed and constructed in compliance with the following requirements and the objective design standards in Chapter 18.24. Non-Housing Development Projects and Housing Development Projects that elect to deviate from one or more objective standards in Chapter 18.24 shall meet the context-based design criteria outlined in Section 18.16.090, provided that more restrictive regulations may be recommended by the architectural review board and approved by the director of planning and development services, pursuant to Section 18.76.020. Item 1 Attachment D - 2023 Neighbor Comments Item 1: Staff Report Pg. 21 Packet Pg. 28 of 627 4 Table 4 Mixed Use and Residential Development Standards CN CC CC(2) CS Subject to regulations in: Minimum Site Specifications Site Area (ft2) None required Site Width (ft) Site Depth (ft) Minimum Setbacks Setback lines imposed by a special setback map pursuant to Chapter 20.08 of this code may apply Front Yard (ft) 0' - 10' to create an 8' - 12' effective sidewalk width (8) None Required (8) 0' - 10' to create an 8' - 12' effective sidewalk width (8) 0' - 10' to create an 8' - 12' effective sidewalk width (8) Rear Yard (ft) 10' for residential portion; no requirement for commercial portion Rear Yard abutting residential zone district or a property developed with exclusively residential uses (ft) 10’ abutting residential zone district or a property developed with exclusively residential uses (ft) 10’ Street Side Yard (ft) 5’ Built-to-Lines 50% of frontage built to setback (1) 33% of side street built to setback (1) Permitted Setback Encroachments Balconies, awnings, porches, stairways, and similar elements may extend up to 6' into the setback. Cornices, eaves, fireplaces, and similar architectural features (excluding flat or continuous walls or enclosures of interior space) may extend up to 4' into the front and rear setbacks and up to 3' into interior side setbacks Maximum Site Coverage 50% 50% 100% 50% Minimum Landscape/Open Space Coverage 35% 30% 20% 30% Item 1 Attachment D - 2023 Neighbor Comments Item 1: Staff Report Pg. 22 Packet Pg. 29 of 627 5 CN CC CC(2) CS Subject to regulations in: (Private and/or Common) 150 sq ft per unit (2) 18.16.090 Maximum Height (ft) Standard 35’ (4) 50’ 37’ 50’ 150 ft. of an abutting residential district (other than an RM-40 or PC zone) or within 150 ft of an abutting property developed with exclusively residential uses. 35’ 35’ 35’ 35’ 18.08.030 Daylight Plane for lot lines abutting one or more residential zoning districts or abutting a property developed with exclusively residential uses. Daylight plane height and slope shall be identical to those of the most restrictive residential zoning district abutting the lot line. If no residential zoning district abuts the lot line, the daylight plane and slope shall be identical to that of any exclusively residential use abutting the lot line. Residential Density (net)(3) 15 or 20 (9) See sub- section (e) below No maximum 30 18.16.060(i) Sites on El Camino Real No maximum No maximum Sites on San Antonia Rd between Middlefield Rd and E. Charleston Rd. 15 or 20 (9) No maximum Maximum Residential Floor Area Ratio (FAR) 0.5:1(4) 0.6:1 0.6:1 18.16.065 Maximum Nonresidential Floor Area Ratio (FAR) 0.4:1 2.0:1 0.4:1 Total Mixed Use Floor Area Ratio (FAR) 0.9:1 (4) 2.0:1 1.0:1 18.16.065 Minimum Mixed Use Ground Floor Commercial FAR(6) 0.15:1 (10) 0.15:1 (10) 0.25:1 (7) (10) 0.15:1 (10) Parking See Chapters 18.52 and 18.54 (Parking) 18.52, 18.54 (1) Twenty-five-foot driveway access permitted regardless of frontage; build-to requirement does not apply to CC district. (2) Required usable open space: (1) may be any combination of private and common open spaces; (2) does not need to be located on the ground (but rooftop gardens are not included as open space except as provided below); (3) minimum private open space dimension six feet; and (4) minimum common open space dimension twelve feet. Item 1 Attachment D - 2023 Neighbor Comments Item 1: Staff Report Pg. 23 Packet Pg. 30 of 627 6 For CN and CS sites on El Camino Real and CC(2) sites that do not abut a single- or two- family residential use or zoning district, rooftop gardens may qualify as usable open space and may count as up to 60% of the required usable open space for the residential component of a project. In order to qualify as usable open space, the rooftop garden shall meet the requirements set forth in Section 18.40.230. (3) Residential density shall be computed based upon the total site area, irrespective of the percent of the site devoted to commercial use. (4) For CN sites on El Camino Real, height may increase to a maximum of 40 feet and the FAR may increase to a maximum of 1.0:1 (0.5:1 for nonresidential, 0.5:1 for residential). (5) Distance shall be measured from the property line of the subject site. 150-foot measurement may be reduced to 50 feet at minimum, subject to approval by the Planning Director, upon recommendation by the Architectural Review Board pursuant to criteria set forth in Chapter 18.76. (6) Ground floor commercial uses generally include retail, personal services, hotels and eating and drinking establishments. Office uses may be included only to the extent they are permitted in ground floor regulations. (7) If located in the California Avenue Parking Assessment District. (8) A 12-foot sidewalk width is required along El Camino Real frontage. (9) Residential densities up to 20 units/acre are allowed on CN zoned housing inventory sites identified in the Housing Element. Other CN zoned sites not located on El Camino Real are subject to a maximum residential density of up to 15 units/acre. (10) In the CC(2) zone and on CN and CS zoned sites on El Camino Real, there shall be no minimum mixed use ground floor commercial FAR for a residential project, except to the extent that the retail preservation requirements of Section 18.40.180 or the retail shopping (R) combining district (Chapter 18.30(A)) applies. Item 1 Attachment D - 2023 Neighbor Comments Item 1: Staff Report Pg. 24 Packet Pg. 31 of 627 October 10, 2023 Via Electronic Mail Only Jonathan Lait, Planning Director City of Palo Alto E-Mail: jonathan.lait@cityofpaloalto.org City of Palo Alto Planning & Transportation Commission Re: Proposed Changes to the Palo Alto Zoning Code to Incorporate Residential Protections for the Palo Alto Redwoods Community Dear Mr. Lait and Planning and Transportation Commissioners: I am writing on behalf of the Palo Alto Redwoods Homeowners Association (“PAR”) to suggest a few minor but important updates to the City’s zoning code. The 117-unit Palo Alto Redwoods condominium complex located at 4250 El Camino Real, includes a diverse group of residents, with both market-rate and deed-restricted below- market-rate homes. As you may be aware, the land where Palo Alto Redwoods is located is currently zoned as commercial. The land surrounding Palo Alto Redwoods is also zoned as commercial. Consequently, Palo Alto Redwoods – despite being a property with only residential uses – does not enjoy some of the protections that other residentially zoned properties in Palo Alto receive with respect to buffering of incompatible land uses. PAR has explored rezoning the land where Palo Alto Redwoods is located to a high-density residential district, which would allow the community to benefit from the zoning code’s buffering protections. But City staff informed PAR in February of this year that the rezoning process could potentially cost thousands of dollars with no guarantee of success. In light of the City’s current efforts to review its zoning code, however, PAR believes there is an opportunity for the City to consider some minor changes that could Item 1 Attachment D - 2023 Neighbor Comments Item 1: Staff Report Pg. 25 Packet Pg. 32 of 627 Jonathan Lait October 10, 2023 Page 2 benefit Palo Alto Redwoods and similarly situated communities. These changes would afford our residents many of the protections that the City’s other residentially zoned properties currently enjoy. I have reviewed the City’s zoning code and identified two sections of the Municipal Code that that could be revised to achieve PAR’s goals with minimal changes. These sections currently set standards for hours of operation, minimum setbacks, building height, and daylight plane for commercially zoned properties located close to residentially zoned land. By changing the refences in these code sections from “residential zoning” to “residential uses,” the zoning code would provide Palo Alto Redwoods residents similar protections as other residential zones, even though Palo Alto Redwoods is located on commercially zoned land. This proposed change would not only provide basic protections to the Palo Alto Redwoods community. It would likewise benefit other existing and the 6,000 to 20,000 future residential properties that the City will be approving through implementation of the housing element, which are likely to be sited on commercially-zoned land. By including PAR’s proposed change in the City’s upcoming zoning changes, it would support residential uses in commercial zones by ensuring that such residential developments enjoy the same protections as residential uses on residentially zoned land. Further, not adopting the changes could easily result in an increased burden on the City when future residents on commercially zoned properties appeal or otherwise contest adjacent commercial development to try to get the same projections that residentially zoned properties enjoy. Simply put, it is most fair and efficient to treat all residential properties similarly. I have attached redlined versions containing proposed changes to the two referenced code sections—section 18.16.040, governing hours of operation, and section 18.16.060, governing building setbacks, building height, and daylight plane. We appreciate the Planning Commission’s consideration of these changes and hope the Commission will include these minor amendments with other the other zoning changes it is currently considering. Please do not hesitate to contact me if you have any questions or if I can provide any further information. Item 1 Attachment D - 2023 Neighbor Comments Item 1: Staff Report Pg. 26 Packet Pg. 33 of 627 Jonathan Lait October 10, 2023 Page 3 Very truly yours, SHUTE, MIHALY & WEINBERGER LLP Item 1 Attachment D - 2023 Neighbor Comments Item 1: Staff Report Pg. 27 Packet Pg. 34 of 627 From:rdmto@aol.com To:Council, CitySubject:4256 El Camino Real Council pre-screening meeting Date:Sunday, July 27, 2025 11:23:59 AM CAUTION: This email originated from outside of the organization. Be cautious of opening attachments andclicking on links. i Subject: Oppse 4256 El Camino Real : poorly designed housing project Dear Vice Mayor Vicki Veenker and council members Pat Burt, George Lu, Julie Lythcott-Haims, KeithReckdahl, Ed Lauing, Carlos Romero, and Webster Lincoln, I am writing to express my concerns regarding the 4256 Elcamino Real poorly designed housing project. As a resident of the neighborhood, I believe this matter could significantly affect the immediate community in terms of congextive traffic, high desnity living conditon with studio and one bedroom units, inadequate parking spaces in proposal. Concern: Tracffic congestion on already crowded Major road: El Camino Real . There are only 100 parking spaces for 100 units. Units breakdown: 44 studios 44 one bedroom units 8 two bedroom units 4 three bedroom units ----------------------------------- 100 total units. Puzzle Lift Stacker parking style: Each Puzzle module can hold 6-50 cars. Drivers park their car in entry platform, and lifted to available spot. Only one car can go in and out of the system - commute hours will create problems for residents. Need to empty grocery, backpacks or furniture before car enters platform (takes time). During power outage, no car can go in or out. Imagine during busy time to go to work or school, you have to load everything into your care before driving away from the platform. Please remember On El Camino Real where we have designated bike lanes,there is no parking on the street where you can load or unload your stuff from your car before you enter or exit the car platform. This message needs your attentionThis is a personal email address. Mark Safe Report Item 1 Attachment E - Neighbor Comments on Prescreening Application Item 1: Staff Report Pg. 28 Packet Pg. 35 of 627 Please STOP this poorly designed project. __________________________________________________________________________________ No Plaza, rest area or clubhouse or swimming pool either, for the well- being of the residents who live in a small cram space:studios or one bedrooms......... We need to have quality housing - not boxed homes like in the slump areas or housing projects in SAn Francisco. We need livable housing. Please don't give up quality of living in Palo Alto for Quantity housing projects in government subsidized areas. Thank you very much for your time. I believe addressing these 2 main concerns will lead to better outcomes for both current and futrue residents. I appreciate your attention to this matter and encourage the city council to take these concerns into careful consideration. Sincerely, Mary Young Charleston Meadow resident rdmto@aol.com Item 1 Attachment E - Neighbor Comments on Prescreening Application Item 1: Staff Report Pg. 29 Packet Pg. 36 of 627 From:JS To:Council, CitySubject:4256 El Camino Real Council pre-screening meeting Date:Sunday, July 27, 2025 11:30:04 AM CAUTION: This email originated from outside of the organization. Be cautious of opening attachments andclicking on links. i Subject: Oppse 4256 El Camino Real proposal Dear Mayor Stone, Vice Mayor Vicki Veenker, Pat Burt, George Lu, Julie Lythcott-Haims, Keith Reckdahl, EdLauing, Carlos Romero, and Webster Lincoln, I am writing to express my concerns regarding the 4256 El Camino Real poorly designed housing project. As a resident of the neighborhood, I believe this matter could significantly affect the immediate community in terms of congextive traffic, high desnity living conditon with studio and one bedroom units, inadequate parking spaces in proposal. Concern: 1. Puzzle Lift Stacker parking style: Each Puzzle module can hold 6-50 cars. Drivers park their car in entry platform, and lifted to available spot. Only one car can go in and out of the system - commute hours will create problems for residents. Need to empty grocery, backpacks or furniture before car enters platform (takes time). During power outage, no car can go in or out. Imagine during busy time to go to work or school, you have to load everything into your care before driving away from the platform. Please remember On El Camino Real where we have designated bike lanes,there is no parking on the street where you can load or unload your stuff from your car before you enter or exit the car platform. Please ask developer to add more parking spaces. 2. No Plaza, rest area or clubhouse or swimming pool either, for the well- being of the residents who live in a small cram space:studios or one bedrooms......... We need to have quality housing - not boxed homes like in the slump areas or housing projects in SAn Francisco. We need livable housing. Please don't give up quality of living in Palo Alto for Quantity housing projects in government subsidized areas. This message needs your attention This is a personal email address.This is their first email to your company. Mark Safe Report Item 1 Attachment E - Neighbor Comments on Prescreening Application Item 1: Staff Report Pg. 30 Packet Pg. 37 of 627 Thank you very much for your time. I believe addressing these 2 main concerns will lead to better outcomes for both current and futrue residents. I appreciate your attention to this matter and encourage the city council to take these concerns into careful consideration. Sincerely, Jee Smith Ventura resident Jeesm5@aol.com Item 1 Attachment E - Neighbor Comments on Prescreening Application Item 1: Staff Report Pg. 31 Packet Pg. 38 of 627 From:Diane Walker To:Council, City Cc:Diane Walker Subject:4256 El Camino Project Review Date:Sunday, July 27, 2025 6:47:14 PM CAUTION: This email originated from outside of the organization. Be cautiousof opening attachments and clicking on links. i Hello: I am concerned about proposed plan for 4256 El Camino because it is totally oversized for thissmall / shallow parcel of land. The Redwoods condominium complex next door is primarily 3 stories height with only 4 set-back units at 4 stories. The plan for new construction is a 6 storydesign with no set-backs to allow light. The proposed height will block sunlight and open sky to PARedwoods residences & endanger the heritage trees on our property. We need morehousing in Palo Alto, but please, let's consider a plan that is scaled to be harmonious with neighborhood. Thank you, Diane Walker 4250 El Camino Real C224, Palo Alto, CA 94306 This message needs your attention This is a personal email address. This is their first email to your company. Mark Safe Report Item 1 Attachment E - Neighbor Comments on Prescreening Application Item 1: Staff Report Pg. 32 Packet Pg. 39 of 627 From:Armer, Jennifer To:Kallas, Emily; Raybould, Claire Cc:Tran, Vickie Subject:Fw: Public comment on 4256 El Camino Real proposal (2025) Date:Monday, July 28, 2025 8:25:09 AM Attachments:image002.pngimage003.pngOutlook-Logo__Desc.pngOutlook-5ms2a114.png Emily and Claire, See public comment below. Sincerely, Jennifer JENNIFER ARMER, AICP Assistant Director Planning and Development Services Department (650) 329-2191 | jennifer.armer@paloalto.gov www.paloalto.gov From: Velasquez, Ingrid <Ingrid.Velasquez@paloalto.gov> Sent: Monday, July 28, 2025 8:18 AM To: Lait, Jonathan <Jonathan.Lait@paloalto.gov>; Armer, Jennifer <Jennifer.Armer@paloalto.gov>; Tran, Vickie <Vickie.Tran@paloalto.gov> Cc: Nose, Kiely <Kiely.Nose@paloalto.gov>; Gaines, Chantal <Chantal.Gaines@paloalto.gov>; McDonough, Melissa <Melissa.McDonough@paloalto.gov>; City Mgr <CityMgr@paloalto.gov> Subject: FW: Public comment on 4256 El Camino Real proposal (2025) Hello, Forwarding the comment below for awareness. Thanks, Ingrid Ingrid Velásquez Administrative Assistant Office of the City Manager (650) 329-2354| Ingrid.Velasquez@PaloAlto.gov www.PaloAlto.gov Item 1 Attachment E - Neighbor Comments on Prescreening Application Item 1: Staff Report Pg. 33 Packet Pg. 40 of 627 From: Neil Murphy <wnmurphy@gmail.com> Sent: Sunday, July 27, 2025 12:28 PM To: Council, City <city.council@PaloAlto.gov> Subject: Public comment on 4256 El Camino Real proposal (2025) CAUTION: This email originated from outside of the organization. Be cautiousof opening attachments and clicking on links. Members of our City Council, I am writing to submit public comments regarding the proposed development project at 4256 El Camino Real. While I support the addition of housing in our community, this proposal has some irreconcilable flaws: Parking issues: Total dependency on mechan i This message needs your attention This is a personal email address. This is their first email to you. Mark Safe Report CGBANNERINDICATOR Members of our City Council, I am writing to submit public comments regarding the proposed development project at 4256 El Camino Real. While I support the addition of housing in our community, this proposal has some irreconcilable flaws: Parking issues: Total dependency on mechanical stacking. 96/100 stalls are puzzle-lift type. High maintenance, low throughput, prone to downtime. Accessible parking deficiency. Only 5 accessible stalls—exactly 5%—bare minimum, no margin for future ADA upgrades or aging tenants. Ingress/egress conflict. Entry/exit drive aisle intersects lobby access and elevator zone. Pedestrian-vehicular conflict risk. Powered by Mimecast Item 1 Attachment E - Neighbor Comments on Prescreening Application Item 1: Staff Report Pg. 34 Packet Pg. 41 of 627 Circulation problems. No turnaround space; if lifts fail, no alternate parking path or egress loop. No EV chargers indicated. Noncompliant with California CALGreen for new residential. Traffic circulation issues: No affordance for service vehicles or rideshares. No internal holding area, forcing double-parking on El Camino. For reference, our comparable facility of 117 units has continuous delivery trucks and vans, two garbage trucks, constant rideshare pickup/dropoff, a daily mail truck. The developer appears to intend to use a lane of public traffic on ECR to get a loading zone for free, to the detriment of public use and safety. If the intention is for all service vehicles to park in the first lane of traffic on ECR, this will continually halt the flow of traffic on ECR and obstruct bike lanes. Curbside congestion. No designated loading zone or lay-by for rideshare, deliveries, garbage, or mail. Conflicts inevitable with protected bike lanes. Protected bike lane barrier. Direct curb access from El Camino is blocked; vehicles must cross bike lanes, creating dangerous conflict points for cyclists. Service vehicle access. Turning radius insufficient for dual garbage trucks and delivery vans without obstructing traffic/bike lanes, assuming the intention is for these vehicles to enter the site. Entry bottleneck. Single narrow driveway (approx. 20’) shared for all vehicle types. High conflict, inefficient throughput. Traffic will back up onto ECR. Design issues: Single stair access. West wing lacks compliant second stair; trap risk in fire event. Trash room access. Some residents will need to carry dripping garbage ~150 ft to the trash chute. Light/air deficiency. North-facing interior units (~460 SF studios) face a narrow courtyard (~31’ wide), risking inadequate natural light/ventilation. Units facing only into 41’ wide courtyard may not meet CBC 1202.5 for natural light/ventilation due to limited sky exposure. Elevator location. Poor central access; far from western units. Poor accessibility, move-in/out logistics. Elevator redundancy. When one elevator goes down, how are elderly or disabled residents meant to exit the facility? Item 1 Attachment E - Neighbor Comments on Prescreening Application Item 1: Staff Report Pg. 35 Packet Pg. 42 of 627 Neighbor privacy. Exterior balconies on W and S faces look directly into our own balconies, bedrooms, and living rooms. I urge the City to carefully consider these points in evaluating the project. Thank you, Neil Murphy 650-504-4433 4250 El Camino Real Item 1 Attachment E - Neighbor Comments on Prescreening Application Item 1: Staff Report Pg. 36 Packet Pg. 43 of 627 From:Maggie Bening To:Council, City Subject:4256 El Camino Real - Proposed Housing Project - August 11 City Council Agenda Item Date:Monday, July 28, 2025 7:31:58 PM CAUTION: This email originated from outside of the organization. Be cautiousof opening attachments and clicking on links. i Dear Palo Alto City Council Members, I am writing to express my concerns regarding 4256 El Camino Real, Palo Alto. As a resident and current VP of the Board of Directors at the Palo Alto Redwoods, I believe this matter will significantly affect our communities quality of life in many different ways. Concerns: The proposed development will increase traffic congestion on El Camino, making it unsafe for pedestrians and cyclists. I also have concerns with fire safety and accessof emergency vehicles since the proposed setbacks do not appear to be adequate to allow for service vehicles to access the property. I Urge the City Council To: Conduct a thorough traffic and environmental impact study. Ensure that the project design respects the privacy and character of existing neighborhoods and is harmonious with the rest of the neighborhood. Provide sufficient infrastructure and parking to accommodate new residents and minimize spillover. Maintain open communication with residents and local organizations during all phases of planning and construction. While I am not opposed to new housing units in Palo Alto I believe addressing these concerns will lead to better outcomes for both current and future residents. I appreciate your attention to this matter and encourage the City Council to take these points into careful consideration. Thank you for your service and commitment to our community. This message needs your attention This is a personal email address. This is their first email to you. Mark Safe Report Item 1 Attachment E - Neighbor Comments on Prescreening Application Item 1: Staff Report Pg. 37 Packet Pg. 44 of 627 Sincerely, Maggie Bening 4250 El Camino Real, C324 Palo Alto, CA 94306 Item 1 Attachment E - Neighbor Comments on Prescreening Application Item 1: Staff Report Pg. 38 Packet Pg. 45 of 627 From:Sharlene Carlson To:Council, City Subject:Resident memo re: 4256 El Camino Real pre-screening August 11, 2025 Date:Monday, July 28, 2025 8:05:53 PM Attachments:SHC letter to CC 072825.pdf CAUTION: This email originated from outside of the organization. Be cautiousof opening attachments and clicking on links. i Dear Palo Alto City Council, I am providing my resident input regarding the proposed rezoning of 4256 El Camino Real to allow for dense housing that has been agendized for your August 11 meeting. Please reviewand consider my concerns and include my memo in your agenda packet. Thank you, Sharlene Carlson 650 269-6467 if you have questions This message needs your attention This is a personal email address. This is their first email to your company. Mark Safe Report Item 1 Attachment E - Neighbor Comments on Prescreening Application Item 1: Staff Report Pg. 39 Packet Pg. 46 of 627 MEMORANDUM To: Palo Alto City Council members From: Sharlene Carlson 4250 El Camino Real, Unit B112, Palo Alto, CA 94306 (650) 269-6467 Date: July 28, 2025 Subject: City Council Meeting August 11, 2025 agenda item Prescreening of design concept for 4256 El Camino Real Proposed zoning change for a dense condominium complex I am writing to express my deep concerns about the proposed rezoning of 4256 El Camino Real (4256) from Commercial Services to Planned Home Zone to allow a dense, 100 unit, 6 story tall condominium complex on this 6/10 acre parcel. I have lived in Palo Alto for 55 years and have owned and lived in a unit in Palo Alto Redwoods (PAR) for 28 years. We have 117 condominium units situated on a 2 2/3 acre parcel with beautiful grounds and trees next door to and behind 4256. As a retired senior, my plan has been to age in place at PAR because it has always been a beautiful and safe place to live a high quality life, but now my future is threatened. I served on my condominium board as president during the time (starting 8 years ago) that a hotel was proposed and ultimately approved by the city to replace Su Hong restaurant. I spoke frequently at ARB hearings to urge a design that concentrated massing along El Camino Real and stepped down massing closer to our residences to protect our privacy. We urged that Redwood trees on both properties be protected. We urged that traffic safety be prioritized and that adequate parking for hotel staff, guests, service and delivery vehicles be assured so traffic would not negatively impact our ability to safely get in and out of our property, since our only driveway is on El Camino. We recognized that an owner has a right to build something so long as it is reasonable and within limits, respecting residents in neighboring properties. Ultimately there was a plan that we could live with after many design and provider changes, but following city approval the owner did not (maybe could not afford to?) build the hotel. This was before street parking was banned and bicycle lanes installed along the El Camino Real transit corridor. Now the first of three developer representatives returns proposing a massive structure that does not include any of the understandings we previously achieved over the years. These are my concerns: SAFETY: As a senior, I have major concerns about my personal safety driving in and out of PAR and any impacts that construction and traffic will have on my health. The proposed development will dramatically increase traffic congestion along El Camino Real because of the increased number of resident vehicles coming in and out of 4256 and likely delays in moving vehicles into and out of the proposed puzzle lift parking system during peak times due to sequential entry and retrieval. Item 1 Attachment E - Neighbor Comments on Prescreening Application Item 1: Staff Report Pg. 40 Packet Pg. 47 of 627 I rely on a car for transportation and am concerned that many vehicles will be backed up in car and bike lanes in front of PAR and 4256 waiting to access puzzle parking and blocking vision for vehicles entering and exiting PAR, including resident, guest, service and delivery vehicles. And there is no place for guest, service or delivery vehicles to park in the 4256 garage, which will cause significant safety issues for all. o Traffic - I urge you to conduct a thorough traffic and environmental impact study before any decision is made. I also urge you to require the developer to provide sufficient infrastructure and parking to accommodate resident, guest, service and deliver vehicles within the property to minimize vehicle spillover onto El Camino Real. Street parking is no longer an option for any vehicles. o Environment - I urge you to require strong noise and dust control during construction and assure that equipment is quiet and non-polluting during construction and as the building functions and is maintained. TREE PROTECTION: PAR's Redwood trees are our most valuable assets, and we have arborists regularly feed and prune them. Some Redwoods are on the 4256 property and they provide a visual barrier between properties. They get the benefit of the care we provide our trees as nothing has been done on the 4256 property to protect their Redwoods over the past 8 years. The proposed condominium building appears to be taller than our Redwood trees so adequate sunlight is a concern. I urge you to require a study on how all Redwoods will be impacted, kept and optimally maintained with regular arborist care. PRIVACY, MASSING, ZONING: PAR felt that we were able to live with the height and massing design of the approved hotel, so we likely can live with something similar in a housing complex. We understand that the city must approve new housing units per state mandates. But we urge you not to allow zoning changes but rather consider housing with the same massing as the approved hotel, which means less density, building height reductions, and greater setbacks to preserve privacy. Please ensure that the project design respects the privacy and character of our existing residential community. OPEN COMMUNICATION: So far we have had no communication from the city or the developer. We learned about the condominium proposal in local newspapers and learned about the August 11 prescreening conceit agenda item coming before City Council because we monitor Palo Alto's Buildingeye. I urge you to require open communication with PAR residents during all phases of planning and construction. Thank you for your service and commitment to residents of Palo Alto. I deeply appreciate your attention to this matter and encourage you to carefully consider these points. Item 1 Attachment E - Neighbor Comments on Prescreening Application Item 1: Staff Report Pg. 41 Packet Pg. 48 of 627 From:McKenzie White To:Council, City Subject:Concerns About the Proposed 4256 El Camino Project Date:Tuesday, July 29, 2025 4:26:56 PM CAUTION: This email originated from outside of the organization. Be cautious of opening attachments and clicking on links. Dear Palo Alto City Council, My name is McKenzie White, and as of December 2024, I am a new homeowner in the Palo Alto Redwoods complex at 4250 El Camino Real. I moved across the country and found a sense of home in this unique, close-knit community. I was recently made aware of the proposed 100-unit development at 4256 El Camino Real, and I’m writing to express serious concerns about the project’s scale and its potential impact on our neighborhood. At six stories tall, the proposed building would tower over the existing streetscape - larger than any nearby structure. It would obstruct views, block natural sunlight, and cast a shadow over shared spaces like our pool area. Several units in our complex would have their balconies facing directly into the new development, stripping us of privacy and diminishing the character of our community. Beyond the visual and spatial concerns, this project would significantly increase local traffic, noise, and congestion. Emergency response times may suffer, and the overall quality of life for residents in the immediate area could decline. While we understand that development is inevitable - and even welcome thoughtful growth - we urge the City to reconsider the current scale of this project. We ask that you conduct thorough impact studies on traffic, parking, privacy, property values, and the environment, and consider reducing the size to better align with the surrounding neighborhood. Thank you for your time and for giving our community a voice. I look forward to the August 11th meeting at 5:30 PM. Sincerely, McKenzie White 4250 El Camino Real, Unit B417 Palo Alto, CA 94306 Item 1 Attachment E - Neighbor Comments on Prescreening Application Item 1: Staff Report Pg. 42 Packet Pg. 49 of 627 From:Jean Kvasnica To:Council, City Subject:4256 El Camino Real - Multi Family Development - concerns Date:Tuesday, July 29, 2025 5:36:59 PM CAUTION: This email originated from outside of the organization. Be cautiousof opening attachments and clicking on links. i Subject: 4256 El Camino Real - MultiFamily Development Dear Palo Alto City Council Members, I am writing to express my concerns regarding the 4256 El Camino Housing Development. As a resident and homeowner at Palo Alto Redwoods 4250 El Camino, I believe this matter could significantly impact ourcommunity in terms of the density, safety and quality of life we have and for our surrounding neighbors. Concern: * The proposed development will increase traffic congestion on El Camino, making it unsafefor pedestrians and cyclists. * We have a large community here of various ages, some who bike to school, walk along El Camino to local stores, or walk for exercise. * The density and robustness of the building will also greatly impact the families that livedirectly next to and behind this proposed project where the building butts right up against the property line * I am also concerned about fire safety and emergency vehicle access due to inadequatesetbacks for service vehicles. I Urge the City Council To: * Conduct a thorough traffic and environmental impact study. * Ensure that the project design respects the privacy and character of existing neighborhoods This message needs your attention This is a personal email address. This is their first email to your company. Mark Safe Report Item 1 Attachment E - Neighbor Comments on Prescreening Application Item 1: Staff Report Pg. 43 Packet Pg. 50 of 627 * Provide sufficient infrastructure and parking to accommodate new residents and minimizespillover * Maintain open communication with residents and local organizations during all phases of planning and construction While we support new housing in Palo Alto, I believe addressing these concerns will lead tobetter outcomes for both current and future residents. I appreciate your attention to this matter and encourage the City Council to take these pointsinto careful consideration. Thank you for your service and commitment to our community. Sincerely, Jean Kvasnica4250 El Camino Real # D233 Palo Alto, 94306jean.kvasnica@gmail.com Item 1 Attachment E - Neighbor Comments on Prescreening Application Item 1: Staff Report Pg. 44 Packet Pg. 51 of 627 July 29, 2025 City Council City of Palo Alto 250 Hamilton Avenue Palo Alto, CA 94301 Re: August 11, 2025 Pre-Screening of condominium at 4256 El Camino Real Honorable Mayor Lauing, Vice Mayor Veenker and City Council Members, I write to comment on the proposed 6 story, 120 unit condominium development at 4256 El Camino Real. I ask you to consider the effects on the neighbors and residents of Palo Alto. The same applicant is in possession of a building permit for a 5 story hotel which doesn’t expire until 9/22/2025. One has to wonder why that project has only accomplished the demolition of the existing one story restaurant after 6 years. This leaves an empty lot, which blights South El Camino Real since 2020. The proposal on the agenda for the Pre-Screening not only calls for building a condominium, but also calls for a zone change from CS (Commercial Services) to PHZ (Planned Housing Zone). Without the PHZ zone, both the height and the floor area ratio (FAR) would be cut in half, back to what the CS zone and the existing hotel building permit allows. I care about this proposal as my property is located in the Palo Alto Redwoods (PAR) at 4250 El Camino Real, which is adjacent to 4256 ECR on three sides. The PAR community is 100% residential (117 units) in a CS zone and over 200 people live here. My building is about 10 feet from the tallest portion (91 feet) of the proposed building labeled “South Elevation”. I have windows that will be facing 75 windows and 35 full balconies. I ask you to think about the idea of a 90 foot tall wall of windows and balconies blocking all light and views of the sky from your property. I ask you to imagine the invasion of privacy that would entail. Never being able to see outside without other people staring back at you. The proposed condominium has minuscule setbacks of 6 feet from the property line in order to utilize the PHZ FAR of 3.57. To achieve this, there are 4 coast redwood trees on the 4256 ECR property that will have to be removed, despite being “protected” trees in Palo Alto. Below I attach a Table from the hotel proposal’s Appendix C Tree Protection Plan from October of 2018. Trees #13, #14, #15 and #16 are on 4256 ECR property on the side labeled “West Elevation”. Item 1 Attachment E - Neighbor Comments on Prescreening Application Item 1: Staff Report Pg. 45 Packet Pg. 52 of 627 Those 4 (soon to be absent) coast redwoods provided my community with shade and privacy. It took decades, if not centuries, for those 4 coast redwoods to mature, but it only takes a single day to fell them. We will never recover the natural amenities of sunlight, beautiful coast redwood trees and privacy if the City allows the proposed extremely massive, dense and intrusive building as it is currently designed. Residential uses mean human beings will reside in those buildings. As a neighbor already residing in Palo Alto, I ask your support for a more reasonable development. Sincerely yours, Anne Mason Item 1 Attachment E - Neighbor Comments on Prescreening Application Item 1: Staff Report Pg. 46 Packet Pg. 53 of 627 From:Julie Baskind To:Council, City Cc:Clerk, City; Kallas, Emily Subject:August 11th Prescreening of Proposed Condo Complex - 4256 ECR Date:Wednesday, July 30, 2025 1:43:11 PM Attachments:Julie"s Balcony_#2.pngIMG_3435.HEICIMG_3434.HEIC CAUTION: This email originated from outside of the organization. Be cautiousof opening attachments and clicking on links. i City Council City of Palo Alto 250 Hamilton AvePalo Alto CA 94301 Dear City Council Members: I am a longtime homeowner (37 years) of the Palo Alto Redwoods, located at 4250 ECR. Ourcommunity totals 117 units with about 250 residents. My condo looks directly onto the empty lotwhere a 6-story (91 ft) housing development has been proposed. Attached are 3 photos from mydeck, two with a current view of the trees and skylight, and one which includes the proposedbuilding. My home, and those of approximately 50 other families that face east, willbe directly impacted by the loss of light and privacy. This message needs your attention This is a personal email address. This is their first email to your company. Mark Safe Report Item 1 Attachment E - Neighbor Comments on Prescreening Application Item 1: Staff Report Pg. 47 Packet Pg. 54 of 627 Item 1 Attachment E - Neighbor Comments on Prescreening Application Item 1: Staff Report Pg. 48 Packet Pg. 55 of 627 Reply Reply all Forward Item 1 Attachment E - Neighbor Comments on Prescreening Application Item 1: Staff Report Pg. 49 Packet Pg. 56 of 627 If you need assistance reviewing the above documents, please contact the Project Planner or call the Planner-on-Duty at 650-617-3117 or email planner@cityofpaloalto.org Project Plans In order to reduce paper consumption, a limited number of hard copy project plans are provided to Council members for their review. The same plans are available to the public, at all hours of the day, via the following online resources. Directions to review Project plans and environmental documents online: 1. Go to: bit.ly/PApendingprojects 2. Scroll down to find “4256 El Camino” and click the address link 3. On this project-specific webpage you will find a link to the project plans and other important information Direct Link to Project Webpage: https://www.paloalto.gov/Departments/Planning-Development-Services/Current- Planning/Projects/4256-El-Camino-Real-Pre-Screening Item 1 Attachment F - Project Plans Item 1: Staff Report Pg. 50 Packet Pg. 57 of 627 City Council Staff Report From: City Manager Report Type: STUDY SESSION Lead Department: Planning and Development Services Meeting Date: August 11, 2025 Report #:2506-4878 TITLE 332 Forest Avenue [25PLN-00130]. Request for Council Prescreening to Rezone the Subject Property from Multifamily Residential (RM-40) to Planned Home Zoning (PHZ) and to Allow Construction of a New Multi-Family Apartment Complex with 82 units in an Eight-Story Structure on a 25,000 Square Foot (0.57 Acre) Site. CEQA Status: Not a Project. RECOMMENDATION Staff recommends that Council conduct a prescreening and provide informal comments regarding the applicant’s request to rezone 332 Forest Avenue from Multifamily Residential (RM-40) to Planned Community/Planned Home Zoning (PHZ).1 Comments provided during the prescreening process are not binding on the City nor the applicant. EXECUTIVE SUMMARY This prescreening is a request by the applicant to rezone the subject property, which is currently zoned Multifamily Residential (RM-40) to “Planned Home Zoning (PHZ).”1 The project site is comprised of two parcels totaling 25,000 square feet. The project includes demolition of an existing 16-unit apartment complex and construction of a 105,230-square-foot building (4.21:1 FAR) with 82 residential rental units. In accordance with Palo Alto Municipal Code (PAMC) Section 18.79.030(A), a prescreening review is required for legislative changes, including rezoning, prior to submittal of a formal application. Prescreenings are intended to solicit early feedback on proposed projects and, like all study sessions, cannot result in any formal action. Since this proposal may return to the City Council as a formal application, Councilmembers should refrain from forming firm opinions supporting or opposing the project. 1 Referred to in this report as "Planned Home Zoning" to emphasize the focus on housing as the benefit to the community. PAMC Section 18.38, which outlines the requirement and process for Planned Community (PC) Zoning, remains the underlying code supporting application of this policy. Item 2 Item 2 Staff Report Item 2: Staff Report Pg. 1 Packet Pg. 58 of 627 Following this prescreening, the applicant may choose to file a formal application to amend the zoning for the site. Planned Community Rezoning applications require an initial review by the Planning and Transportation Commission followed by a formal recommendation from the Architectural Review Board, a formal recommendation from the Planning and Transportation Commission, and Council’s final decision as set forth in PAMC Chapter 18.38. BACKGROUND On February 3, 2020, Council unanimously endorsed using Planned Home Zoning (PHZ) for housing and mixed-use housing projects to help spur housing production. In exchange for deviation from the development standards, as allowed under the rezoning if approved by Council, the project must include at least 20% of the housing units as deed restricted, or equivalent based on a menu of options, for lower income households. Item 2 Item 2 Staff Report Item 2: Staff Report Pg. 2 Packet Pg. 59 of 627 Ramona Street) invite public use and enhance quality of life. The project site is located less than one-half mile from the University Avenue Caltrain station. Across Forest Avenue, to the north of the property is Lanning Chateau/Staller Court, a five-story 85-unit apartment building. To the east, there is a two-story 19-unit condominium development. To the south, there is a four-story 30-unit condominium development. To the west of the property, there is a 40-unit apartment building, Casa Real, listed as a Category 4 Historic Resource on the City’s Historic Inventory. When completed in 1930, it was the only seven-story building in the City. ANALYSIS 3 The property is located within the boundaries of the South of Forest Area (SOFA) 1 Coordinated Area Plan (CAP).4 The Comprehensive Plan designation is SOFA 1 CAP. This CAP implements the City of Palo Alto Comprehensive Plan and provides more detailed programs and policies for the specifically defined SOFA 1 CAP. For the subject property, the SOFA 1 CAP simply designates the site as "RM-40." During the 1999-2006 Housing Element cycle, the City Council adopted SOFA 1 CAP as a planning tool to address a specific nine block area comprised of 19 acres. The policy framework for SOFA 1 CAP is for a walkable and livable neighborhood that is compatible with the surrounding area, transitioning from a low-density detached housing in the south-east to higher density closer to downtown. The SOFA 1 CAP also envisions a neighborhood that takes advantage of the opportunities presented by its close proximity to Downtown Palo Alto and the regional transit center at the University Avenue/Downtown train station. Some existing zoning designations remain in effect, e.g. RM-30, RM-40, R-2, and PF, which largely retain the current associated zoning designation and development standards. Maintaining housing on the site would align with Comprehensive Plan Policy B-6.2 that provides uses in SOFA 1 CAP should be maintained that complement the downtown business district. Further, promoting infill development with higher densities nearby transit corridors helps to reach the goals of energy conservation and integrating land use with transportation. 3 The Palo Alto Comprehensive Plan is available online: https://www.paloalto.gov/files/assets/public/v/2/planning- amp-development-services/3.-comprehensive-plan/comprehensive-plan/full-comp-plan-2030_with-june21- amendments.pdf 4 The South of Forest Area (SOFA) 1 Coordinated Area Plan is available online: https://www.paloalto.gov/files/assets/public/v/1/planning-amp-development-services/file-migration/current- planning/forms-and-guidelines/south-of-forest-coordinated-area-plan-phase-1.pdf Item 2 Item 2 Staff Report Item 2: Staff Report Pg. 3 Packet Pg. 60 of 627 Goal L-7 that provides for the conservation and preservation of Palo Alto’s historic buildings, sites, and districts. 7 The site is currently zoned RM-40 (medium density multi-family residential). Multi-family housing is identified as a permitted use in the RM-40 Zone District. The proposed project exceeds the standards under the RM-40 zone district and proposes to deviate from these standards in a manner consistent with the zoning ordinance through the PHZ rezoning process as set forth in PAMC Chapter 18.38. For projects proposing to rezone to PHZ, Council has the authority to set the parameters for most development standards, which would be reflected in the tailored ordinance for the new Planned Community District. However, for informational purposes, Attachment B compares the development standards under the current RM-40 zone district with the proposed project in order to assist Council in considerations of how these deviations relate to the proposed public benefits of the project. A 4.21:1 FAR where 1:1 FAR is allowed in the RM-40 zone; 85 feet height where 40 feet is allowed in the RM-40 zone; The private open space meets the 50 square feet per unit average, however, the project proposes common open space be provided through a shared common space located on the adjacent parcel; Does not comply with the required side and rear daylight planes; 110 parking spaces where no minimum parking is required (AB 2097); No bicycle parking shown where 82 long term spaces are required; and No loading space is proposed, where one space would normally be required. The building massing is not stepped back where it is more than 20 feet taller the average height of an adjacent building. This step back standard starts within two vertical feet of the height of the adjacent building. The step back would be a minimum depth of six feet along both the façade on the primary building frontage and the facing façade of the adjacent building, and the step shall occur for a minimum of 70% of each façade length. This project proposes ground-level parking as well as a portion underground. In order to 7 The Palo Alto Zoning Code is available online: https://codelibrary.amlegal.com/codes/paloalto/latest/paloalto_ca/0-0-0-76269 Item 2 Item 2 Staff Report Item 2: Staff Report Pg. 4 Packet Pg. 61 of 627 do so, it must also be lined with commercial or habitable uses with a minimum depth of 20 feet along the street frontage. The alternative is to fully underground the parking (PAMC 18.24.060(c)(7)). A 50-foot height limit. A daylight plan of 45-degree angle measured at 10 feet up on the property line for the side lot lines and the setbacks of the RM-30 zone district would apply or a daylight plane of 30-degree angle measured at 10 feet up on the property line may be used with lesser setbacks. A 10-foot setback with landscape screen on the southern interior side yard that abuts the RM-30 zoned parcel. Item 2 Item 2 Staff Report Item 2: Staff Report Pg. 5 Packet Pg. 62 of 627 use or business), or be charged a parking fee, but cannot require that any voluntary parking is free of charge to residents.9 No bicycle parking is currently shown on the plans. Based on the 82-unit count, 82 long-term bicycle spaces are required. Bike parking would be required to be shown on the plans as part of any formal application and would need to be designed to meet the requirements of a Restricted-Access Bicycle Enclosure as defined in PAMC 18.54.060(a)(2)(B). SOFA 1 CAP does provide reductions in parking requirements for mixed-use projects with shared parking of up to 20%, and 15% for housing, community development projects, and office projects with shared parking. The project site could potentially accommodate a through lot connection to Homer Avenue connecting the property to the adjacent Museum of American Heritage property located at 351 Homer Avenue. The applicant indicated that there is no desire to have a connection through the property. Since the proposed project is a rezoning, Council has the discretion to approve or deny the applicant’s request. This project has yet to be analyzed for consistency with the City’s Bicycle and Pedestrian Transportation Plan and other transportation policies such as Council’s Local Transportation Impact Analysis Policy adopted on June 15, 2019 (CMR 11256). This analysis would be conducted as a part of any formal application and reviewed by the Office of Transportation. Inclusionary Requirement and Jobs Housing Imbalance The intent of limiting PHZ projects to residential and residential mixed-use is to address the job/housing imbalance and to support increased housing production within the City, consistent with the City’s RHNA allocation. PHZ projects are required to provide more housing than jobs on site. As this is a 100% residential project, no new jobs would be created. The project is required to provide 20% of the units at Below Market Rate at an average of 80% AMI in accordance with Council’s requirements for projects seeking to rezone using the PHZ process. The applicant is currently proposing 20% (16 units) provided at a rate affordable to low income. This is consistent with Option 2 presented in the June 23, 2020, Council staff report,10 which provides greater weight and flexibility towards providing very-low income units. Open Space Project plans indicate that 91 square feet of private open space will be provided per unit. The floor plan provided for a typical level of the building indicates that most units would have a balcony or patio space. The existing open space provided on the adjacent parcel for the Casa Real building is shown to be shared with the project. An easement would be required over the 9 Gov. Code, § 65863.2, subd. (g). 10 June 23, 2020, Council staff report: https://www.paloalto.gov/files/assets/public/v/1/agendas-minutes- reports/reports/city-manager-reports-cmrs/year-archive/2020/id-10715.pdf Item 2 Item 2 Staff Report Item 2: Staff Report Pg. 6 Packet Pg. 63 of 627 Casa Real open space to provide access to the subject property. Project plans also note that the lobby and amenity space would be located on the adjacent parcel. A lot line adjustment would be needed to allow the proposed amenity space to be located on the same property rather than crossing property lines. POLICY IMPACT Item 2 Item 2 Staff Report Item 2: Staff Report Pg. 7 Packet Pg. 64 of 627 FISCAL/RESOURCE IMPACT STAKEHOLDER ENGAGEMENT ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: Item 2 Item 2 Staff Report Item 2: Staff Report Pg. 8 Packet Pg. 65 of 627 LMAN STREET FOREST AV ENU E BRYANT STREET WAV HO 365 Bldg C 675 Bldg A 385 Bldg D 690 Bldg D 315 707 332 345 36050 40-746 40 372 704 712 720 730 724 351 646 6 650 643 325 664 730 724 1 350 737 375 Bldg C 654 This map is a product of theCity of Palo Alto GIS This document is a graphic representation only of best available sources. Legend Assessment Parcel Palo Alto Assessment Parcel Palo AltoAssessment Parcel Outside Palo Alto abc Road Centerline Small Text (TC) Curb Face (RF) Pavement Edge (RF) Address Label Points (AP)Current Features 0' 51' Attachment A 332 Forest Ave CITY OF PALO ALTOINCORPORATED CALIFORNIA P a l o A l t oT h e C i t y o f APRIL 16 1894 The City of Palo Alto assumes no responsibility for any errors. ©1989 to 2016 City of Palo Altosswitze, 2025-06-23 09:10:09Assessor Parcels (\\cc-maps\Encompass\Admin\Meta\View.mdb) Item 2 Attachment A - Location Map Item 2: Staff Report Pg. 9 Packet Pg. 66 of 627 ATTACHMENT B 332 Forest Ave, 25PLN-00130 Table 1: COMPARISON WITH CHAPTER 18.13 (RM-40 DISTRICT), and Section 18.38.150 (PC District Special Requirements) Regulation Required Proposed Residential Project Minimum/Maximum Site Area, Width and Depth 8,500 square feet area, 70 foot width, 100 foot depth 25,000 square feet lot, 100 foot width, 300 foot depth Minimum Front Yard (2) 0-25 feet (1) 10 feet Rear Yard 10 feet 10 feet Interior Side Yard 10 feet, 6 feet for properties less than 70 feet wide 10 feet Street Side Yard 0-16 feet (2)N/A Setback from major roadways (1) [18.13.040(b)(1)(A)] 0-25 feet (1)N/A Max. Building Height 40 feet, 35 feet for portions of a building within 50 feet of a more restrictive residential zone/use 85 Feet PC Special Requirements for Height 50 ft when within 150 feet of RM-30, no restriction otherwise. 85 Feet Side Yard Daylight Plane (7)10 feet at interior side lot line then 45 degree angle Does Not Comply Rear Yard Daylight Plane (7)10 feet at rear setback line then 45 degree angle. None for lots > than 70 ft wide Does Not Comply PC Special Requirements for Daylight Plane daylight planes same as most restrictive abutting residential district (RM-30) Does Not Comply Max. Site Coverage 45%, plus 5% for covered patios (11,250 square feet) 87% (21,780 square feet) Max. Total Floor Area Ratio (4)1.0:1 4.21:1 Max. Residential Density (3) 40 DU/AC 143 DU/AC Minimum Site Open Space 20% (5,000 square feet) 0 square feet Minimum Usable Open Space (5)100 square feet per unit (8,200 square feet) 0 square feet Minimum Common Open Space 50 square feet per unit (4,100 square feet) 0 square feet Minimum Private Open Space 50 square feet per unit (4,100 square feet) 91 square feet Item 2 Attachment B - Zoning Comparison Table Item 2: Staff Report Pg. 10 Packet Pg. 67 of 627 (1) Minimum front setbacks shall be determined by the Architectural Review Board upon review pursuant to criteria set forth in Chapter 18.76 and the context-based criteria outlined in Section 18.13.060. Arterial roadways do not include residential arterials. (2) Minimum street side setbacks in the RM-40 zone may be from 0 to 16 feet and shall be determined by the Architectural Review Board upon review pursuant to criteria set forth in Chapter 18.76 and the context-based criteria outlined in Section 18.13.060. (3) Provided that, for any lot of 5,000 square feet or greater, two units are allowed, subject to compliance with all other development regulations. (4) Covered parking is not included as floor area in multi-family development, up to a maximum of 230 square feet per required parking space. Covered parking spaces in excess of required parking spaces count as floor area. (5) Subject to the limitations of Section 18.13.040(e). Usable open space is included as part of the minimum site open space; required usable open space in excess of the minimum required for common and private open space may be used as either common or private usable open space; landscaping may count towards total site open space after usable open space requirements are met. (6) Tandem parking is allowed for any unit requiring two parking spaces, provided that both spaces in tandem are intended for use by the same residential unit. For projects with more than four (4) units, not more than 25% of the required parking spaces shall be in a tandem configuration. (7) Each daylight plane applies specifically and separately to each property line according to the adjacent use. Table 2: CONFORMANCE WITH CHAPTER 18.52 (Off-Street Parking) for Multiple-Family Residential Type Required Proposed Vehicle Parking 1 space per 1 bedroom unit (27 units) 2 spaces per 2 bedroom or more unit (55 units) 137 spaces required 110 spaces Bicycle Parking 1 space per unit (100% long term) 82 required None Item 2 Attachment B - Zoning Comparison Table Item 2: Staff Report Pg. 11 Packet Pg. 68 of 627 Development Statement May 16, 2025 Project Summary As a local family with deep roots in Palo Alto spanning nearly 50 years, the Giovannotto family is proud to introduce Forest Commons, a thoughtfully designed 82-unit residential community located at 332 Forest Avenue in downtown Palo Alto. Forest Commons presents a unique opportunity to deliver a substantial number of pedestrian- friendly, transit-oriented housing units on a scale that can make a real difference while enhancing the existing neighborhood fabric. A diverse mix of family-friendly unit types will be made available —as well as a significant number of below market rate housing units—attracting a wide range residents seeking a vibrant, walkable community with proximity to downtown services and abundant transit options. The project delivers significant community benefits, including housing units not accounted for in the Housing Element, as well as 16 below market rate units (20%). Additionally, the development will further bolster the vitality of downtown and generate substantial new property tax revenue for the City. This is the right site for new downtown housing, the property is strategically located less than a half- mile from the University Avenue Caltrain station and is only steps from downtown Palo Alto. For families, several local Elementary Schools, including Addison, are within walking distance, and our middle and high schools are within short biking distances. To support residents while minimizing any impact on street parking availability, the proposal includes a generous 1:1 parking ratio. Constructed with a Type III wood structure over a Type I concrete podium, this project promises a high-quality and sustainable addition to Palo Alto's housing stock. Beyond walkability to City services and amenities, residents will enjoy modern on-site wellness amenities such as a well- equipped fitness center, welcoming community gathering spaces, and access to the reimagined outdoor grounds of the adjacent ‘Casa Real’ property. Architecturally, the project demonstrates contextual sensitivity at its core. Its design draws inspiration from its surroundings, notably the prominent and architecturally significant Casa Real. Respecting the neighborhood's scale, the design aligns with existing datum lines and maintains an 85-foot building height (plus parapet), which allows for it to achieve significant density without overwhelming the existing context. Additionally, the project will offer residents access to the combined amenities of both Forest Commons and Casa Real, fostering a richer living experience. We are eager to collaborate with the City to deliver this vital housing project, enriching downtown Palo Alto’s vibrancy while honoring its character, embracing inclusivity, and advancing a forward- thinking vision. Item 2 Attachment C - Applicant’s Description Letter Item 2: Staff Report Pg. 12 Packet Pg. 69 of 627 Addressing The Need for Housing Our review of the Housing Element reveals a recognized need for increased housing density near transit hubs. Within a half-mile radius of both Palo Alto Caltrain Stations, 24 identified sites are collectively planned to yield 346 housing units. This underscores the demand for additional housing in transit-oriented areas. Although Forest Commons was not specifically listed as an opportunity site, its realization would by itself contribute nearly one-quarter of the total housing units targeted for the downtown area, which is the most transit-oriented and pedestrian-friendly of all districts. Due to the scarcity of underutilized sites in the downtown area, the Housing Element identifies only four potential units within RM-40 zoning—all designated for above moderate-income households. This lack of viable sites is not limited to RM-40 zones. A significant majority of the opportunity sites near the Caltrain stations are also too small to support economically viable development. For example, Table 3-17 in the Housing Element highlights four representative sites averaging just 0.14 acres, with an average allocation of only 4.25 units. Approving this project would represent a major stride toward achieving the City's stated housing goals. This infill project is a rare underutilized downtown site and will address Palo Alto’s pressing housing needs. Density & Entitlements – The PHZ Process The proposed project achieves a density of 143 units per acre to yield 82 new housing units. The site's current RM-40 zoning limits density to 40 units per acre, and thus requires a Planned Housing Zone (PHZ) application to realize this more appropriate density. Considering the property's existing land use and height context, we firmly believe that a density of 143 units per acre is both fitting and essential to meaningfully address Palo Alto's pressing housing needs. As part of the PHZ application, we will ask the City consider the following adjustments to the current zoning: Standard Zoning Proposed Existing Use The existing 1925 building currently houses only 16 units and occupies a mere 27% of the lot. This leaves a significant portion of valuable land in Palo Alto's urban core underutilized. The existing building does not have a historic designation. Item 2 Attachment C - Applicant’s Description Letter Item 2: Staff Report Pg. 13 Packet Pg. 70 of 627 Major Project Benefits • Catalyzes Major Investment and Redevelopment near CalTrain: Transforms underutilized property in a transit-proximate location. • Prioritizes Pedestrian and Bicycle Connectivity: Creates a walkable and bikeable environment. • Directly Addresses Palo Alto's Housing Needs: Provides crucial new units to meet community demands. • Integrates 16 Dedicated Below Market Rate Housing Units: Fosters inclusivity and affordability within the community. • Generates Significant Economic Stimulus: Injects vitality into the Palo Alto economy. • Harmonizes with Surrounding Commercial Character: Respects and complements the existing commercial landscape. • Delivers Diverse, High-Quality Housing Options: Offers a range of residences near transit, employment hubs, and essential services. • Elevates Community Sustainability and Energy Efficiency: Incorporates environmentally responsible design and operation. Item 2 Attachment C - Applicant’s Description Letter Item 2: Staff Report Pg. 14 Packet Pg. 71 of 627 Relevant Figure and Table from the 2023-2031 Palo Alto Housing Element Item 2 Attachment C - Applicant’s Description Letter Item 2: Staff Report Pg. 15 Packet Pg. 72 of 627 If you need assistance reviewing the above documents, please contact the Project Planner or call the Planner-on-Duty at 650-617-3117 or email planner@paloalto.gov Project Plans In order to reduce paper consumption, a limited number of hard copy project plans are provided to Council members for their review. The same plans are available to the public, at all hours of the day, via the following online resources. Directions to review Project plans and environmental documents online: 1. Go to: bit.ly/PApendingprojects 2. Scroll down to find “332 Forest Ave” and click the address link 3. On this project-specific webpage you will find a link to the project plans and other important information Direct Link to Project Webpage: https://www.paloalto.gov/Departments/Planning-Development-Services/Current- Planning/Projects/332-Forest-Avenue Item 2 Attachment D - Project Plans Item 2: Staff Report Pg. 16 Packet Pg. 73 of 627 City Council Staff Report Report Type: CONSENT CALENDAR Lead Department: City Clerk Meeting Date: August 11, 2025 Report #:2506-4823 TITLE Approval of Minutes from June 9, June 16, and June 17, 2025 Meetings RECOMMENDATION Staff recommends that the City Council review and approve the minutes. ATTACHMENTS Attachment A: June 9, 2025 Draft Action Minutes Attachment B: June 16, 2025 Draft Action Minutes Attachment C: June 17, 2025 Draft Action Minutes APPROVED BY: Mahealani Ah Yun, City Clerk Item 3 Item 3 Staff Report Item 3: Staff Report Pg. 1 Packet Pg. 74 of 627 CITY COUNCIL DRAFT ACTION MINUTES Page 1 of 5 Regular Meeting June 9, 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: Special Orders of the Day 1. Proclamation Honoring James Moss for his Years of Service to the City of Palo Alto NO ACTION Agenda Changes, Additions and Deletions Public Comment Council Member Questions, Comments and Announcements Study Session 2. Cubberley Project: Discuss First Round Polling Results and Feedback from Community and Stakeholder Engagement Activities and Review an Update on the Workplan for the Cubberley Master Plan and Consideration of November 2026 Ballot Measure; CEQA Status – the Master Plan will undergo CEQA review NO ACTION Item 3 Attachment A - June 9, 2025 Draft Action Minutes Item 3: Staff Report Pg. 2 Packet Pg. 75 of 627 DRAFT ACTION MINUTES Page 2 of 5 City Council Meeting Draft Action Minutes: 06/09/2025 Consent Calendar Councilmember Burt requested to pull Agenda Item Number 7. Councilmember Burt registered a no vote on Agenda Item Number 7. MOTION: Councilmember Lythcott-Haims moved, seconded by Councilmember Reckdahl to approve Agenda Item Numbers 3-15. MOTION PASSED ITEMS 3-6, 8-15: 7-0 MOTION PASSED ITEM 7: 6-1, Burt no 3. Approval of Minutes from May 27, 2025 Meeting 4. 2025 Annual Water Supply and Demand CEQA Status Assessment -- Exempt under Water Code Section 10652. 5. Approval of Proposed 10 Year Energy Efficiency Goals for 2026-2035 as Recommended by the Utilities Advisory Commission; CEQA Status – Not a Project. 6. Approval of a Professional Services Contract No. C26193873 with Avenidas, Inc. in an Amount Not-to-Exceed $3,186,528 for Provision of Comprehensive Services to Older Adults for a Term of Five Years; CEQA Status – Not a Project 7. Approval of a Professional Services Contract Number C25192686 with Statewide Traffic Safety and Signs, Inc. in an Amount Not-to-Exceed of $2,125,000 for On-Call Traffic Control Services for Utilities a Period of Five (5) Years; CEQA Status – Not a Project 8. Approve Three Professional Service Contracts: (1) Contract Number C25191790A with Ampirical Services, Inc.; (2) Contract Number C25191790B with Burns & McDonnell Western Enterprises, Inc.; and (3) Contract Number C25191790D with Transformer Consulting Services, Inc. in an Aggregated Amount Not-to-Exceed $15,000,000 Over a Three-Year Period for Utilities Electric Engineering Consulting Services and delegate authority to the City Manager to execute each vendor’s contract for two additional one- year extensions and increase the aggregated not to exceed amount to $25,000,000 ; CEQA Status: Not a Project 9. Approval of Construction Contract No. C25193640 with FieldTurf USA, Inc. in the Amount of $3,064,185 for Stanford Palo Alto Community Playing Fields Turf Replacement Project PG-26000, and Authorization of Contract Contingency in an Amount Not-to-Exceed $306,419; and Amend the FY 2025 Budget in the Capital Improvement Fund and the Parks Dedication Fund; CEQA status – categorically exempt under CEQA Guidelines sections 15301 (Existing Facilities) and 15302 (Replacement or Reconstruction). Item 3 Attachment A - June 9, 2025 Draft Action Minutes Item 3: Staff Report Pg. 3 Packet Pg. 76 of 627 DRAFT ACTION MINUTES Page 3 of 5 City Council Meeting Draft Action Minutes: 06/09/2025 10. Approval of Construction Contract No. C25194274 with O’Grady Paving, Inc. in the Amount Not-to-Exceed $1,218,317 and Authorization for the City Manager or Their Designee to Negotiate and Execute Change Orders Up to a Not-to-Exceed Amount of $121,832 for the Fiscal Year 2025 Streets Preventative Maintenance Project; Capital Improvement Program Projects PE-86070 and PO-11001; CEQA Status – Exempt under CEQA Guidelines Section 15301(c) 11. Approval of Amendment No. 1 to Contract No. C22183804 With Jacobs Engineering Group, Inc. to Increase the Contract Amount by $150,000 to $1,030,569, to Update the Hourly Rate Schedule, and to Extend the Contract Term to June 30, 2026 for Engineering Services During Construction; Amendment No. 2 to Contract No. C21179265E with Tanner Pacific, Inc. to Increase the Contract Amount by $245,095 to $1,097,595 for Construction Management Services, to add Exhibit C-2 Schedule of Rates, and to Extend the Contract Term to June 30, 2026; and Amendment No. 6 to Contract No. C21179265C with Carollo Engineers, Inc. to Increase the Contract Amount by $397,800 to $15,093,184 for Construction Management Services and to add Exhibit C-2 Schedule of Rates, Funded by Wastewater Treatment Enterprise Fund for the Joint Intercepting Sewer Rehabilitation (Phase 1) Project (WQ-24000); CEQA Status – Exempt under CEQA Guidelines Section 15301 (Repairs to Existing Facilities) 12. Approval of Contract Amendment Number 1 to Contract Number C24193066 with Origami Risk in the Amount of $3,163 for API Integration Resulting in a New Not-to-Exceed Amount of $209,473 for claims processing services. CEQA Status – Not a Project. 13. Approval of Contract Amendment Number 1 to Contract Number S22183280 with Sloan Sakai Yeung & Wong, LLP for Legal Services, Extending the Term to July 1, 2028 and Increasing the Amount Not to Exceed by $200,000, Bringing the New Total Not to Exceed to $455,000; CEQA Status – Not a Project. 14. FIRST READING: Adoption of an Ordinance amending Section 15.04.410 (Definition of Wildland-Urban Interface Fire Area) to adopt and incorporate the 2025 CAL FIRE Fire Hazard Severity Zone (FHSZ) Map for the City of Palo Alto. CEQA status: Not a Project. 15. SECOND READING: Ordinance of the Council of the City of Palo Alto Amending Chapter 18.42 (Standards for Special Uses) of the Palo Alto Municipal Code on a Temporary Basis to Modify the Procedure and Standards Governing the Review of Wireless Communications Facilities Applications; and repealing Resolution 9873 (Amending Objective Aesthetic, Noise, and Related Standards for Wireless Communication Facilities in the Public Rights of Way) (FIRST READING: May 19, 2025, PASSED: 7-0) City Manager Comments Ed Shikada, City Manager Item 3 Attachment A - June 9, 2025 Draft Action Minutes Item 3: Staff Report Pg. 4 Packet Pg. 77 of 627 DRAFT ACTION MINUTES Page 4 of 5 City Council Meeting Draft Action Minutes: 06/09/2025 Action Items 16. Adoption of the Community Development Block Grant (CDBG) Fiscal Year (FY) 2025-2026 Annual Action Plan, 2025-2030 Consolidated Plan, and a Resolution Approving Use of CDBG Funds for FY 2025-2026 as Recommended by the Human Relations Commission. CEQA Status: Exempt under CEQA Guidelines Section 15378(b)(4). MOTION: Councilmember Stone moved, seconded by Councilmember Burt to: 1. Adopt the draft Fiscal Year (FY) 2025-2026 Annual Action Plan (AAP), 2025-2030 Consolidated Plan (ConPlan)1, and the associated resolution (Attachment A) allocating Community Development Block Grant (CDBG) funding for FY 2025-2026; 2. Authorize the City Manager to execute the FY 2025-2026 CDBG application to fund the FY 2025-2026 AAP and any other necessary documents concerning the application, and to otherwise bind the City with respect to the applications and commitment of funds; 3. Authorize staff to submit the FY 2025-2030 Consolidated Plan and 2025-2026 AAP to U.S. Department of Housing and Urban Development (HUD) by the extended deadline of August 16, 2025; 4. Authorize the City Manager or designee to draft and execute amendments to a loan agreement, regulatory agreement, and related documents necessary to implement City Council direction on the Alma Garden Rehabilitation Project in a form consistent with the City’s affordable housing loan documents and approved by the City Attorney; and 5. Direct staff to return to Council following budget adoption to amend the FY 2026 Budget Appropriation for the Community Development Block Grant Fund (2/3 vote needed) by: a. Increasing Revenue from Other Agencies by $616,233. b. Increasing General Expenses by $616,233. MOTION PASSED: 7-0 17. Approve a Resolution to Allow Dining and Retail Encroachments on Car Free California Avenue under PAMC Ch. 12.11; Direct Staff to Approve the Car Free California Avenue Outdoor Activation Program Regulations Including Reference to the Program fees in the FY 2026 Municipal Fee Schedule; Adopt a Resolution Allowing Open Containers in Conjunction with Third Thursday Performances in 2025; Direct Staff to Review Differences Between the Open Container Resolution and an Entertainment Zone as Recommended by the Retail Committee. CEQA Status – categorically exempt. Item Removed Off Agenda (Rescheduled to be heard at the June 17, 2025 City Council Meeting) Item 3 Attachment A - June 9, 2025 Draft Action Minutes Item 3: Staff Report Pg. 5 Packet Pg. 78 of 627 DRAFT ACTION MINUTES Page 5 of 5 City Council Meeting Draft Action Minutes: 06/09/2025 AA1. 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. New Item Added, Supplemental Report Added MOTION: Mayor Lauing moved, seconded by Councilmember Reckdahl to: 1. Adopt the proposed ordinance (Attachment A) by a four-fifths majority (six affirmative votes), temporarily updating Title 18 and Title 21 of the Municipal Code in accordance with recent changes in State law; 2. Direct staff to prepare a ordinance for review by Planning and Transportation Commission and City Council; and 3. Direct staff to develop a ordinance for Council consideration updating the Land Use Element of the Comprehensive Plan to more specifically differentiate single-family, low-, medium-, and high-density residential land use designations. MOTION PASSED: 7-0 Adjournment: The meeting was adjourned at 8:42 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 3 Attachment A - June 9, 2025 Draft Action Minutes Item 3: Staff Report Pg. 6 Packet Pg. 79 of 627 CITY COUNCIL DRAFT ACTION MINUTES Page 1 of 10 Regular Meeting June 16, 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, Veenker Present Remotely: Absent: Stone Agenda Changes, Additions and Deletions Public Comment Council Member Questions, Comments and Announcements Consent Calendar Disclosures on Agenda Item Number 12 from Councilmembers Burt, Lythcott-Haims, Lauing, Lu, and Veenker. Councilmember Veenker, Lu recused from Agenda Item Number 20. Councilmember Burt, Reckdahl, Lythcott-Haims requested to pull Agenda Item Number 3. Councilmember Burt, Reckdahl, Lythcott-Haims requested to pull Agenda Item Number 11. Councilmember Burt, Lu, Lythcott-Haims requested to pull Agenda Item Number 12. MOTION: Councilmember Burt moved, seconded by Council member Reckdahl to approve Agenda Item Numbers 1-2, 4-10, 13-17, 19-21 (Item 18 Deferred to June 17, 2025 City Council Meeting), and to pull off Consent Agenda Item Numbers 3, 11, 12. MOTION PASSED ITEMS 1-2, 4-10, 13-17, 19, 21: 6-0-1, Stone absent Item 3 Attachment B - June 16, 2025 Draft Action Minutes Item 3: Staff Report Pg. 7 Packet Pg. 80 of 627 DRAFT ACTION MINUTES Page 2 of 10 City Council Meeting Draft Action Minutes: 06/16/2025 MOTION PASSED ITEM 20: 4-0-1-2, Stone absent, Veenker, Lu Recused 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 Updated Management and Professional Compensation Plan and Corresponding Salary Schedules; CEQA Status – Not a Project 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 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 Item 3 Attachment B - June 16, 2025 Draft Action Minutes Item 3: Staff Report Pg. 8 Packet Pg. 81 of 627 DRAFT ACTION MINUTES Page 3 of 10 City Council Meeting Draft Action Minutes: 06/16/2025 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) 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) 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. 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 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. 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 Item 3 Attachment B - June 16, 2025 Draft Action Minutes Item 3: Staff Report Pg. 9 Packet Pg. 82 of 627 DRAFT ACTION MINUTES Page 4 of 10 City Council Meeting Draft Action Minutes: 06/16/2025 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) 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 Requirements Relating to Accessory Dwelling Units and Junior Accessory Dwelling Units (FIRST READING: May 12, 2025; PASSED 7-0) City Manager Comments Ed Shikada, City Manager Action Items 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) Item 3 Attachment B - June 16, 2025 Draft Action Minutes Item 3: Staff Report Pg. 10 Packet Pg. 83 of 627 DRAFT ACTION MINUTES Page 5 of 10 City Council Meeting Draft Action Minutes: 06/16/2025 Note: Resolutions are included in the packet as Attachments A – F, Attachment G reflects the Table of URLs for the Exhibits to Attachments A – F. MOTION: Councilmember Burt moved, seconded by Councilmember Reckdahl to adopt: 1. For the Water Utility, a Resolution (Attachment B): a. Approving the FY 2026 Water Utility Financial Forecast and Reserves Management Practices; and b. Approving the transfer of up to $3 million from the Rate Stabilization Reserve to the Operations Reserve in FY 2025; and c. Amending the Water Utility Rate Schedules effective July 1, 2025 (FY 2026): i. W-1 (General Residential Water service), ii. W-2 (Water Service from Fire Hydrants), iii. W-3 (Fire Service Connections), iv. W-4 (Residential Master-Metered and General Non- Residential Water Service), and v. W-7 (Non-Residential Irrigation Water Service) MOTION PASSED: 6-0-1, Stone absent MOTION: Vice Mayor Veenker moved, seconded by Mayor Lauing to adopt: 1. For the Wastewater Collection Utility, a Resolution (Attachment A): a. Approving the Fiscal Year (FY) 2026 Wastewater Collection Utility Financial Forecast and Reserves Management Practices; and b. Amending the Wastewater Collection Utility Rate Schedules effective July 1, 2025 (FY 2026): i. S-1 (Residential Wastewater Collection and Disposal), ii. S-2 (Commercial Wastewater Collection and Disposal), iii. S-6 (Restaurant Wastewater Collection and Disposal), and iv. S-7 (Commercial Wastewater Collection and Disposal – Industrial Discharger); and c. Repealing the Wastewater Collection Utility Rate Schedules effective July 1, 2025: i. S-3 (Industrial Waste Laboratory and Analysis Charges), and ii. S-4 (Hauled Liquid Waste Charges) MOTION PASSED: 6-0-1, Stone absent Item 3 Attachment B - June 16, 2025 Draft Action Minutes Item 3: Staff Report Pg. 11 Packet Pg. 84 of 627 DRAFT ACTION MINUTES Page 6 of 10 City Council Meeting Draft Action Minutes: 06/16/2025 MOTION: Councilmember Burt moved, seconded by Mayor Lauing to adopt: 1. For the Gas Utility, a Resolution (Attachment C) with the following modification: a. Approving the FY 2026 Gas Utility Financial Forecast and Reserves Management Practices; and b. Approving the transfer of up to $1.5 million from the Gas Utility Operations Reserve to the Distribution Rate Stabilization Reserve in FY 2025; and c. Transferring up to 18% of gas utility gross revenues received during FY 2024 to the General Fund in FY 2026; and d. Amending the Gas Utility Rate Schedules effective July 1, 2025 (FY 2026): i. G-1 Residential Gas Service, ii. G-2 Residential Master-Metered and Commercial Gas Service, iii. G-3 Large Commercial Gas Service, and iv. G-10 Compressed Natural Gas Service); e. Remand the issue of a one-time credit to the Utilities Advisory Commission to be considered at the time they review the updated COSA. MOTION PASSED: 5-1-1, Lythcott-Haims no, Stone absent MOTION: Councilmember Burt moved, seconded by Council Reckdahl to adopt: 1. For the Electric Utility, a Resolution (Attachment D): a. Approving the FY 2026 Electric Utility Financial Forecast and Reserves Management Practices; and b. Approving the transfer of up to $5 million from the Electric Utility Supply Operations Reserve to the Distribution Operations Reserve in FY 2025; and c. Amending the Electric Utility Rate Schedules effective July 1, 2025 (FY 2026): i. E-1 (Residential Electric Service), ii. E-2 (Small Non-Residential Electric Service), iii. E-2-G (Residential Master-Metered and Small Non-Residential Green Power Electric Service, iv. E-4 (Medium Non-Residential Electric Service), v. E-4-G (Medium Non-Residential Green Power Electric Service), vi. E-4 TOU (Medium Non-Residential Time of Use Electric Service), vii. E-7 (Large Non-Residential Electric Service), viii. E-7-G (Large Non-Residential Green Power Electric Service), ix. E-7 TOU (Large Non-Residential Time of Use Electric Service), x. E-14 (Street Lights), xi. E-16 (Unmetered Electric Service) to recover capital and maintenance costs for utility pole attachments and telecom conduit, xii. E-EEC-1 (Export Electricity Compensation) to reflect 2024 avoided cost, and xiii. E-NSE-1 (Net Surplus Electricity Compensation) to reflect current projections of FY 2026 avoided cost; Item 3 Attachment B - June 16, 2025 Draft Action Minutes Item 3: Staff Report Pg. 12 Packet Pg. 85 of 627 DRAFT ACTION MINUTES Page 7 of 10 City Council Meeting Draft Action Minutes: 06/16/2025 2. For the Fiber Optics Utility, a Resolution (Attachment E) with the following additions: a. Amending the Dark Fiber Optic Utility Rate Schedules, consistent with the applicable Consumer Price Index, effective July 1, 2025 (FY 2026): i. EDF-1 (Dark Fiber Licensing Services), ii. EDF-2 (Dark Fiber Service Connection Fees); b. Approving the new Palo Alto Fiber Broadband Internet Services Rate Schedule F- 1, for broadband internet services; c. Direct staff to evaluate one or more alternative pricing models, including a promotional price and consideration of a reduced pricing for higher speed categories; 3. For Storm Water Management, a Resolution (Attachment F): a. Amending the Storm Water Management Fee Rate Schedule, consistent with the applicable Consumer Price Index, D-1 effective July 1, 2025 (FY 2026): i. D-1 (General Storm and Surface Water Drainage) MOTION PASSED: 6-0-1, Stone absent 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 City Manager Ed Shikada and Vice Mayor Veenker recused from Stanford related portions of the item. MOTION: Councilmember Lu moved, seconded by Councilmember Burt to approve the Stanford related items for the FY 2026 budget (Attachment C) and authorize funding extension of the Palo Alto Link (PAL) On Demand Transit Services program for up to 6 months for FY 2026. MOTION PASSED: 5-0-1-1, Veenker recused, Stone absent MOTION: Councilmember Burt moved, seconded by Councilmember Lythcott-Haims to approve the allocations recommended by the Policy & Services Committee with the following changes: • Decrease $12,500 from the Policy and Services Committee recommendation and increase the City Manager’s Office budget for FY 2026 for Neighbors Abroad by $17,500; Item 3 Attachment B - June 16, 2025 Draft Action Minutes Item 3: Staff Report Pg. 13 Packet Pg. 86 of 627 DRAFT ACTION MINUTES Page 8 of 10 City Council Meeting Draft Action Minutes: 06/16/2025 • Decrease $10,780 from the Policy & Services Committee recommendation and increase the Community Services budget for FY 2026 for the Environmental Volunteers by $10,780; • Increase of $50,000 for Magical Bridge Foundation to the Policy Services Committee recommendation to a total of $150,000 and also an increase of $25,000 for UNAFF to the Policy and Services Committee recommendation to a total of $45,000 (with $75,000 coming from FY 2025 Council Contingency). MOTION PASSED: 6-0-1, Stone absent Also, the net balance of $7,366 above FY26 budget based upon the revised P&S recommendation will be funded from FY25 Council Contingency for a total of $82,366. MOTION: Councilmember Burt moved, seconded by Councilmember Lu to: 1. Adopt the Fiscal Year 2026 Budget Ordinance (Attachment A), which includes: a. City Manager’s Fiscal Year 2026 Proposed Operating and Capital Budgets, previously distributed at the May 5 City Council Meeting (Attachment A, Exhibit 1) b. Amendments to the City Manager’s Fiscal Year 2026 Proposed Operating Budget (Attachment A, Exhibit 2) c. Amendments to the City Manager’s Fiscal Year 2026 Proposed Capital Budget (Attachment A, Exhibit 3) d. Fiscal Year 2026 City Table of Organization (Attachment A, Exhibit 4) e. Fiscal Year 2026 Municipal Fee Changes (Attachment A, Exhibit 5) f. Planning and Development Services Cost of Service Study and Municipal Fee Adjustments (Attachment A, Exhibit 6) g. Citywide Cost of Services Study and Municipal Fee Adjustments (Attachment A, Exhibit 7) h. In the Gas Fund: Remove $1,100,000 appropriation for Gas Climate Credits 2. Accept the Fiscal Year 2026 – 2030 Capital Improvement Plan 3. Adopt a Resolution determining the Appropriations Limit for Fiscal Year 2026 (Attachment B) 4. Comply with Assembly Bill 2561 / Government Code § 3502.3 regarding vacancies and recruitment efforts (Attachment D). 5. Approval of FY 2026 Non-Profit Workplan Phase I Awards as amended by Items 5-9 below. 6. Adopt a Resolution to Extend and Amend the Development Services Reserve Fund (DSRF) Policy Resolution, previously adopted by Resolution No. 10142. 7. Authorizing the Measure B funding for Safe Routes to School Planner position and advance recruitment as soon as possible. Amend the Fiscal Year 2026 Budget Ordinance in the General Fund by: Item 3 Attachment B - June 16, 2025 Draft Action Minutes Item 3: Staff Report Pg. 14 Packet Pg. 87 of 627 DRAFT ACTION MINUTES Page 9 of 10 City Council Meeting Draft Action Minutes: 06/16/2025 1. Decreasing the Appropriation for the Palo Alto Link program by $550,000; 2. Decreasing Other Revenue from Stanford University by $260,000; 3. Decreasing Charges for Services Revenue by $40,000; 4. Increasing the Budget Stabilization Reserve by $250,000; 5. Increasing the appropriation for Neighbors Abroad in the City Manager’s Office by $17,500 6. Increasing the appropriation for Environmental Services in the Community Services Department by $10,780 7. Increasing the appropriation for Magical Bridge in the Nonprofit Workplan Phase I by $50,000; 8. Increasing the appropriation for UNAFF in the Nonprofit Workplan Phase I by $25,000; 9. Reappropriating the FY 2025 Council Contingent Account by $82,366. MOTION PASSED: 6-0-1, Stone absent 24. Approval of Five Items to Support the Newell Road/San Francisquito Creek Bridge 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) MOTION: Councilmember Reckdahl moved, seconded by Councilmember Burt to: 1. Authorize the City Manager or their designee, after considering Caltrans’ feedback on the Good Faith Effort documentation associated with the Disadvantaged Business Enterprise program, to approve and execute Construction Contract No. C25194068 with Granite Construction Company, in the amount not to exceed $9,399,787 for the Newell Road/San Francisquito Creek Bridge Replacement Project (CIP PE-12011): a. Authorize the City Manager or their designee to negotiate and execute one or more change orders to the contract with Granite Construction Company for Item 3 Attachment B - June 16, 2025 Draft Action Minutes Item 3: Staff Report Pg. 15 Packet Pg. 88 of 627 DRAFT ACTION MINUTES Page 10 of 10 City Council Meeting Draft Action Minutes: 06/16/2025 related additional but unforeseen work that may develop during the project, the total value of which shall not exceed $939,787; 2. Approve and authorize the City Manager or their designee to execute the attached Professional Services Contract No. C25190454 with Zoon Engineering, Inc. to provide construction management services through December 31, 2026 and a total not-to- exceed amount of $2,559,915, including $2,327,196 for base services and $232,719 for additional services; 3. Approve and authorize the City Manager or their designee to execute Amendment No.7 to Contract No. C12142825 with NV5, Inc. to extend the contract term through December 31, 2026 for construction support services; 4. Approve and authorize the City Manager or their designee to execute Amendment No. 3 to Cost Share Agreement A3581S with the Santa Clara Valley Water District in the amount of $155,458, providing local matching funds; and 5. Approve a Fiscal Year 2025 Budget Amendment for the Capital Improvement Fund (requires a 2/3 vote): a. Increasing the revenue appropriation for the Newell Road/San Francisquito Creek Bridge Replacement Project (PE-12011) by $155,458 for Santa Clara Valley Water District’s local match contribution associated with completing design and right-of-way phases. MOTION PASSED: 6-0-1, Stone absent Adjournment: The meeting was adjourned at 11:20 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 3 Attachment B - June 16, 2025 Draft Action Minutes Item 3: Staff Report Pg. 16 Packet Pg. 89 of 627 CITY COUNCIL DRAFT ACTION MINUTES Page 1 of 6 Special Meeting June 17, 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, Veenker Present Remotely: Absent: Stone Special Orders of the Day 1. Proclamation Honoring Juneteenth NO ACTION Closed Session AA1. CONFERENCE WITH LABOR NEGOTIATORS City Designated Representatives: City Manager and his Designees Pursuant to Merit System Rules and Regulations (Ed Shikada, Kiely Nose, Sandra Blanch, Nick Raisch, Tori Post, Molly Stump, Lauren Lai, Paul Harper, and Jennifer Fine) Employee Organization: Service Employees International Union, (SEIU) Local 521 Hourly Unit, Utilities Management and Professional Association of Palo Alto (UMPAPA), Palo Alto Peace Officers’ Association (PAPOA), Palo Alto Police Management Association (PMA), International Association of Fire Fighters (IAFF) local 1319, Palo Alto Fire Chiefs’ Association (FCA); Authority: Government Code Section 54957.6 (a) MOTION: Councilmember Reckdahl moved, seconded by Vice Mayor Veenker to go into Closed Session. MOTION PASSED: 6-0-1, Stone absent Council went into Closed Session at 5:47 P.M. Council returned from Closed Session at 6:57 P.M. Item 3 Attachment C - June 17, 2025 Draft Action Minutes Item 3: Staff Report Pg. 17 Packet Pg. 90 of 627 DRAFT ACTION MINUTES Page 2 of 6 Sp. City Council Meeting Draft Action Minutes: 06/17/2025 Mayor Lauing announced no reportable action. Agenda Changes, Additions and Deletions Public Comment Council Member Questions, Comments and Announcements Consent Calendar MOTION: Councilmember Lythcott-Haims moved, seconded by Mayor Lauing to approve Agenda Item Numbers 2-16 and to pull of consent Agenda Item Number AA2. MOTION PASSED: 6-0-1, Stone absent 2. Approval of the Office of the City Auditor Annual Risk Assessment and FY 2026 Audit Plan and Corresponding Task Orders 3. Climate Action and Sustainability Committee Recommendation to Council to Direct Staff to Develop an Affordable Multi-Family Housing Electrification Grant Program and to Approve a Budget Amendment in the Gas Utility Funds; CEQA Status: Under CEQA Guidelines section 15183, projects consistent with an existing general or comprehensive plan do not require additional CEQA review 4. Adopt a Resolution Declaring Surface Parking Lot T (APN: 120-15-100) Exempt Surplus Land and Approve an Exclusive Negotiation Agreement with Alta Housing for Development of 100% Affordable Housing on City-Owned Property Located at the Corner of Kipling Street and Lytton Avenue in Downtown Palo Alto; CEQA Status – Not a Project. 5. Approval of the 2025 update to the Sewer System Management Plan (SSMP) and Authorization for Staff to Make Future Administrative or Minor Updates to the SSMP as Needed; CEQA Status – Exempt under CEQA Guidelines sections 15301, 15302, 15308. 6. Approval for the City Manager or their Designee to Execute Contract No. C25194016 with SCA of CA, LLC, Utilizing Sourcewell Cooperative Contract No. 062421-SWP, to Procure Services for the Sweeping of Residential and Commercial Streets for a Period of Five Years for a Total Not-to-Exceed Amount of $9,883,850; CEQA Status – Not a Project Item 3 Attachment C - June 17, 2025 Draft Action Minutes Item 3: Staff Report Pg. 18 Packet Pg. 91 of 627 DRAFT ACTION MINUTES Page 3 of 6 Sp. City Council Meeting Draft Action Minutes: 06/17/2025 7. Approval of General Services Contract No. C25193659 With Community Tree Service LLC for Utility Line Clearance Services in an Amount Not-to-Exceed $16,500,000 for a Period of Five Years; CEQA Status – Exempt Under Section 15301(h) 8. Approval of and Authorization for the City Manager or Designee to Negotiate and Execute a Purchase and Sale Agreement with C H LLC to Acquire the Industrial Property Located at 2575 East Bayshore Road (Assessor’s Parcel Number 008-03-015) for $8.5 million, with Leaseback to Insulation Sources, Inc. (dba Ico Rally) for $12,600/Month; CEQA Status – Exempt Under CEQA Guidelines Section 15301 9. Approval of Professional Services Contract Number C26193797 with Chandler Asset Management, Inc. in an Amount Not to Exceed $750,000 for Investment Management Services for a Period of Three Years; CEQA Status - Not A Project 10. Approval of Professional Services Contract Number C25193814 with Alta Housing BMR Services LLC in an Amount Not to Exceed $450,600 for Administration and Consulting Services for the City's Below Market Rate Housing Program for a Period of Two Years and Approve a FY 2026 Budget Amendment in the Residential Housing In-Lieu Fund. CEQA Status: Exempt under CEQA Guidelines 15262. 11. Authorize the City Manager to Negotiate and Execute 14 Professional Services Contracts for GIS On-Call Services, supplemental staffing, and programming services: C26193271A with Lynx Technologies Inc, C26193271B with Seven Tablets Inc, C26193271C with iSpatial Techno Solutions Inc, C26193271D with Geodesy, C26193271E with UDC, C26193271F with NV5 Geospatial Inc, C26193271G with SSP Innovations, C26193271H with Timmons Group, C26193271I with Infojini Inc, C26193271J with Sybyte Technologies Inc, C26193271K with 360S2G, C26193271L with Enterprise Maps, C26193271M with Farallon Geographics, C26193271N with Arini Geographics in an Amount Not-to-Exceed $2,000,000 for a Term of One Year; CEQA Status – Not a Project. 12. Authorize the City Manager to Negotiate and Execute Professional Services Contracts for SAP Enterprise Resource System On-call Programming Services: Contract C26193272A with 360S2G, C26193272B with Sage Group Technologies Inc, C26193272C with Avertra Corp, C26193272D with Amick Brown LLC, C26193272E with 2iSolutions Inc, C26193272F with the Peloton Group, C26193272G with Phoenix Business Inc, C26193272H with EPI-USE America in an Amount Not-to-Exceed $2,000,000 for a Term of One Year; CEQA status – Not a project. 13. Authorize the City Manager to Negotiate and Execute Eight Professional Services Contracts for On-Call IT Project Support and supplemental staffing: Contract C26193247A with INSPYR Solutions, C26193247B with AgreeYa Solutions, C26193247C with TechLink Systems, C26193247D with Compunnel Software Group, C26193247E with Progile Tech Inc, C26193247F with Omm IT Solutions, C26193247G with Infojini Inc, Item 3 Attachment C - June 17, 2025 Draft Action Minutes Item 3: Staff Report Pg. 19 Packet Pg. 92 of 627 DRAFT ACTION MINUTES Page 4 of 6 Sp. City Council Meeting Draft Action Minutes: 06/17/2025 and C26193247H with California Creative Solutions Inc in an Amount Not to Exceed $1,500,000 for a Term of One Year; CEQA Status – Not a Project 14. Approval of Professional Services Contract No. C26193874 with Palo Alto Community Child Care in an Amount Not-to-Exceed $3,228,146 to Provide Management of the City’s Childcare Subsidy Program for a Term of Five Years. CEQA Status – Not A Project 15. Approval of Seven (7) On-Call Consulting Contracts to Provide Planning Application Processing and Supplemental Staffing for the Planning and Development Services Department over a Five-Year Term, as needed: 1) Arnold Mammarella, Architecture + Consulting, 2) CTC Media Group INC., 3) Good City Company 4) Metropolitan Planning Group, 5) Michael Baker International Inc., 6) Stantec Consulting Services, Inc., 7) Urban Planning Partners Inc. in the Amount not to exceed $2,000,000 ; CEQA Status: Not a Project. 16. Amend the Fiscal Year (FY) 2026 Budget Appropriation for the Community Development Block Grant (CDBG) Fund to Reflect Final Entitlement Grant Allocation. CEQA Status: Exempt under CEQA Guidelines Section 15378(b)(4). AA2. 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. (Originally Published on the June 16, 2025 City Council Meeting Agenda Item Number #18 - Deferred to June 17, 2025 City Council Meeting) Agenda Item AA2 Removed from Consent Calendar to be heard on Action at the June 17, 2025 City Council Meeting Action Items AA2. 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. (Originally Published on the June 16, 2025 City Council Meeting Agenda Item Number #18 - Deferred to June 17, 2025 City Council Meeting) City Manager Ed Shikada and Vice Mayor Veenker recused from Stanford related portions of the item. MOTION: Councilmember Burt moved, seconded by Councilmember Lythcott-Haims to: 1. Approve 12-month contract amendment for Palo Alto Link service with Nomad Transit; 2. Direct staff to consider and present termination implications and alternative service options by end of 2025; Item 3 Attachment C - June 17, 2025 Draft Action Minutes Item 3: Staff Report Pg. 20 Packet Pg. 93 of 627 DRAFT ACTION MINUTES Page 5 of 6 Sp. City Council Meeting Draft Action Minutes: 06/17/2025 3. Consider opportunities created if requested grants are awarded; 4. Direct staff to negotiate with the provider to assure that the City has, to the extent possible, the prerogative to adjust the program, either in its service or length, over the next year. MOTION PASSED: 5-0-1-1, Veenker recused, Stone absent 17. Approve a Resolution to Allow Dining and Retail Encroachments on Car Free California Avenue under PAMC Ch. 12.11; Direct Staff to Approve the Car Free California Avenue Outdoor Activation Program Regulations Including Reference to the Program fees in the FY 2026 Municipal Fee Schedule; Adopt a Resolution Allowing Open Containers in Conjunction with Third Thursday Performances in 2025; Direct Staff to Review Differences Between the Open Container Resolution and an Entertainment Zone as Recommended by the Retail Committee. CEQA Status – categorically exempt. MOTION: Councilmember Burt moved, seconded by Councilmember Lythcott-Haims to: 1. Adopt a Resolution allowing dining and retail encroachments on Car Free California Avenue under existing PAMC Ch. 12.11 (Parklets) Attachment B; 2. Adopt a Resolution to allow open containers in conjunction with the Third Thursday music performances in 2025 (Attachment C); 3. Refer to staff a review expanding the open container resolution to an entertainment zone beyond Third Thursday; Fees: 4. Set program fees (application fee, renewal fee, license fee for use of the public right-of- way, and deposit) in alignment with the existing Ongoing Parklet Program as recommended in the FY 2026 Municipal Fee Schedule (scheduled for Council adoption on June 16); Parklets: 5. Direct staff to pursue standards for parklet structures; and a. Utilize the Architecture Review Board (ARB) for design recommendations and prospective processes for standard versus custom designs. b. Pursue edge materials in addition to planters – intended to go to ARB. Item 3 Attachment C - June 17, 2025 Draft Action Minutes Item 3: Staff Report Pg. 21 Packet Pg. 94 of 627 DRAFT ACTION MINUTES Page 6 of 6 Sp. City Council Meeting Draft Action Minutes: 06/17/2025 c. Look at a street design that would allow for outdoor seating amounts and square footage close to or at the current amount that exists on California Avenue. Biking: 6. Reaffirm the interest in supporting Cambridge Avenue as a route for through biking a. Move forward with signage and other calming measures to reduce bike speeds of California Avenue. MOTION PASSED: 6-0-1, Stone absent Adjournment: The meeting was adjourned at 9:45 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 3 Attachment C - June 17, 2025 Draft Action Minutes Item 3: Staff Report Pg. 22 Packet Pg. 95 of 627 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Fire Meeting Date: August 11, 2025 Report #:2507-4976 TITLE Ordinance Adopting the 2025 Fire Hazard Severity Zone Map Issued by the State Fire Marshal RECOMMENDATION Staff recommends that the City Council adopt the CAL FIRE Hazard Severity Zone (FHSZ) map, as recommended by the California Department of Forestry and Fire Protection (CAL FIRE), for areas within the City of Palo Alto’s jurisdiction (local responsibility area). EXECUTIVE SUMMARY CAL FIRE is mandated by state law to identify and map areas with significant fire hazards and periodically revise and update its designation of zones. These maps, known as Fire Hazard Severity Zone (FHSZ) maps, categorize areas based on factors that influence fire likelihood and behavior. Updates in state law since 2021 now require that a local agency, including the City of Palo Alto, designate by ordinance the moderate, high, and very high FHSZs in its jurisdiction after receiving recommendations from the State Fire Marshal. (Gov. Code 51179(a)). Recent updates to the state’s FHSZ maps were issued for the Bay Area, including Palo Alto, February 24, 2025.The City provided opportunities for public review and comment on the CAL FIRE FHSZ map from March 26 through April 30, 2025, and adoption of the CAL FIRE FHSZ map is a necessary next step to protect the City of Palo Alto from the increasing threat of wildfires. It ensures compliance with state law, enhances public safety, and promotes responsible land-use planning. Staff recommends that the City Council adopt the map as presented. Under state law, a local agency has discretion to add areas not identified by the State Fire Marshal or increase the fire hazard severity identified by the state, but not to remove areas or reduce the hazard severity level (Gov. Code 51179(b)). Staff recommends adopting the local FHSZ maps as issued by CAL FIRE, without revisions. This is part of multiple items regarding wildfire preparedness and in support of the City Council priorities for 2025. The details within this staff report, an audit on wildfire preparedness and community conversations with those neighborhoods in the WUI held in June 2025. Item 4 Item 4 Staff Report Item 4: Staff Report Pg. 1 Packet Pg. 96 of 627 BACKGROUND Wildfire Preparedness: They provide critical information for residents, property owners, and the City to understand the level of fire hazard in specific areas. Building Codes: The maps inform building code requirements, particularly for new construction and renovations, to enhance structural resistance to wildfire. Defensible Space: The maps guide the implementation and enforcement of defensible space regulations, which are crucial for protecting structures from approaching wildfires. Emergency Planning: The maps assist in developing effective wildfire mitigation and response plans. Designating areas where California’s defensible space standards and wildland urban interface building codes are required. General plan considerations: Local governments may consider them in their general plans. ANALYSIS Compliance with State Law: State law mandates that local agencies adopt the FHSZ maps. Item 4 Item 4 Staff Report Item 4: Staff Report Pg. 2 Packet Pg. 97 of 627 Enhanced Public Safety: Adopting the map enables the City to better protect its residents and property from the increasing threat of wildfires. It provides a foundation for implementing effective mitigation measures and enforcing necessary regulations. Improved Planning and Development: The map will inform land-use planning and development decisions, ensuring that new construction and infrastructure projects are designed to minimize fire risks. Access to Funding: Adoption of the FHSZ maps may be a prerequisite for accessing certain state and federal funding for wildfire prevention and mitigation projects. Understanding Fire Hazard Severity Zones: It is important to note that the Fire Hazard Severity Zone map evaluates "hazard," not "risk." "Hazard" is based on the physical conditions that create a likelihood and expected fire behavior over a 30 to 50-year period without considering mitigation measures. "Risk" is the potential damage a fire can do to the area under existing conditions, accounting for modifications such as fuel reduction projects, defensible space, and ignition-resistant construction. City staff has reviewed the CAL FIRE FHSZ map and recommends its adoption as issued. A description of how the maps are developed is provided here: Fire Hazard Severity Zones | OSFM1. Below summarizes elements of the FHSZ maps and how they were developed. Key elements of the Fire Hazard Severity Zone model: The fire hazard severity model for wildland fire has two key elements: 1) probability of an area burning and 2) expected fire behavior under extreme fuel and weather conditions. The zones reflect areas that have similar burn probabilities and fire behavior characteristics. Factors considered in determining fire hazard within wildland areas are fire history, flame length, terrain, local weather, and potential fuel over a 50-year period. Outside of wildlands, the model considers factors that might lead to buildings being threatened, including terrain, weather, urban vegetation cover, blowing embers, proximity to wildland, fire history, and fire hazard in nearby wildlands. FHSZs are not a structure loss model, as key information regarding structure ignition (such as roof type, etc.) is not included. 1 Fire Hazard Severity Zones | OSFM https://osfm.fire.ca.gov/what-we-do/community-wildfire-preparedness-and- mitigation/fire-hazard-severity-zones Item 4 Item 4 Staff Report Item 4: Staff Report Pg. 3 Packet Pg. 98 of 627 The model places an emphasis on the spread of embers. Embers can travel long distances in the wind and ignite vegetation, roofs, attics, and decks. Areas immediately adjacent to wildland receive the same FHSZ score as that wildland where fire originates, and the model then produces lower scores as the distance to the wildland edge increases. In wildland areas, zone edges are a result of the way zones are delineated. Zones represent areas of similar slope and fuel potential. How Fire Hazard Severity Zones are determined: CAL FIRE used the best available science and data to develop and field-test a model that served as the basis of zone assignments. The model evaluated the probability of the area burning and potential fire behavior in the area. Many factors were included, such as fire history, vegetation, flame length, blowing embers, proximity to wildland, terrain, and weather. A 2 km grid of climate data covering the years 2003-2018 is being used in the models underlying the 2025 map update. The previous model used stock weather inputs across the state to calculate wildland fire intensity scores. The updated model adjusts fire intensity scores based on the most extreme fire weather at a given location, considering temperature, humidity, and wind speed. Ember transport is being modeled based on local distributions of observed wind speed and direction values instead of using a generic buffer distance for urban areas adjacent to wildlands. Classification of a wildland zone as Moderate, High, or Very High fire hazard is based on the average hazard across the area included in the zone, which have a minimum size of 200 acres. In wildlands, hazard is a function of modeled flame length under the worst conditions and annual burn probability. Classification outside of wildland areas is based on the fire hazard of the adjacent wildland and the probability of flames and embers threatening buildings. State Responsibility Area (SRA): SRA is the area where the state has financial responsibility for wildland fire protection and prevention. Incorporated cities and federal ownership are not included in SRA. CAL FIRE is responsible for fire prevention and suppression within the SRA. Local Responsibility Area (LRA): Local Responsibility Areas (LRA) are incorporated cities, urban regions, agricultural lands, and portions of the desert where the local government is responsible for wildfire protection. CAL FIRE uses an extension of the Item 4 Item 4 Staff Report Item 4: Staff Report Pg. 4 Packet Pg. 99 of 627 state responsibility area Fire Hazard Severity Zone model as the basis for evaluating fire hazard in Local Responsibility Area. The Local Responsibility Area hazard rating reflects flame and ember intrusion from adjacent wildlands and from flammable vegetation in the urban area. CAL FIRE’s Land Use Planning Program provides support to local governments by providing fire safety expertise on the State’s wildland urban interface building codes, wildfire safety codes, as well as helping in the development of the safety elements in general plans. CAL FIRE uses the same modeling data that is used to map the State Responsibility Area for Local Responsibility Areas. New legislation, Senate Bill 63 (Stern, 2021), now requires the adoption of all three Fire Hazard Severity Zone classes in the Local Responsibility Area. Previously only Very High Fire Hazard Severity Zones were required for adoption in Local Responsibility Areas. FISCAL/RESOURCE IMPACT STAKEHOLDER ENGAGEMENT ENVIRONMENTAL REVIEW Item 4 Item 4 Staff Report Item 4: Staff Report Pg. 5 Packet Pg. 100 of 627 ATTACHMENTS APPROVED BY: Item 4 Item 4 Staff Report Item 4: Staff Report Pg. 6 Packet Pg. 101 of 627 NOT YET APPROVED Attachment A 1 027072325 Ordinance No. ____ Ordinance of the Council of the City of Palo Alto adopting the 2025 Fire Hazard Severity Zone Map Issued by the State Fire Marshal The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. Findings and Declarations. The City Council finds and declares as follows: A. To better prepare for wildfires, the California Department of Forestry and Fire Protection (CAL FIRE) is required to periodically review its recommended classifications of fire hazard severity zones throughout California. The state legislature has found that the prevention of wildfires is a matter of statewide concern, not a municipal affair. B. The State released updated 2025 Fire Hazard Severity Zone (FHSZ) maps, and requires all local jurisdictions, including Palo Alto, with moderate, high, and very high fire hazard severity zone recommendations to designate those zones by ordinance. C. State law also requires that the City post the maps indicating CAL FIRE’s FHSZ recommendations publicly for comment within 30 days of receipt, which the City conducted from March 26 - April 30, 2025. D. After consideration of public comments, the City will rely on the latest recommendations of CAL FIRE in its published FHSZ maps, notwithstanding local discretion to impose more restrictive fire and public safety requirements. SECTION 2. Adoption of 2025 Fire Hazard Severity Zone Map for Palo Alto. The City hereby designates the Fire Hazard Severity Zones as recommended by the California Department of Forestry and Fire Protection pursuant to Government Code Section 51178. The map, approved by the Council of the City of Palo Alto, is hereby incorporated by reference, and entitled, “Fire Hazard Severity Zones in Local Responsibility Area - City of Palo Alto”, dated February 24, 2025 (Exhibit A). The official map is also located electronically on the following website: https://www.paloalto.gov/wildfire SECTION 3. Effective Date. This Ordinance shall be effective on the thirty-first date after the date of its adoption. // // // Item 4 Attachment A - Ordinance of the Council of the City of Palo Alto adopting the 2025 Fire Hazard Severity Zone Map Issued by the State Fire Marshal Item 4: Staff Report Pg. 7 Packet Pg. 102 of 627 NOT YET APPROVED Attachment A 2 027072325 SECTION 4. CEQA. The City Council finds and determines that this Ordinance is not a project within the meaning of section 15378 of the California Environmental Quality Act (“CEQA”) Guidelines because adoption of the state FHSZ map and updating a statutory definition involves no action with potential for resulting in physical change in the environment, either directly or ultimately. In the event that this Ordinance is found to be a project under CEQA, it is subject to the CEQA exemption contained in CEQA Guidelines section 15061(b)(3) because it can be seen with certainty to have no possibility of a significant effect on the environment in that this Ordinance simply clarifies existing local regulations. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: __________________________ _____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: __________________________ _____________________________ City Attorney or designee City Manager _____________________________ Fire Chief, Palo Alto Fire Department Item 4 Attachment A - Ordinance of the Council of the City of Palo Alto adopting the 2025 Fire Hazard Severity Zone Map Issued by the State Fire Marshal Item 4: Staff Report Pg. 8 Packet Pg. 103 of 627 City and County boundaries as of 10/22/24 (CA Board of Equalization) CAL FIRE State Responsibility Areas (SRA25_1) CAL FIRE Fire Hazard Severity Zones (FHSZSRA23_3, FHSZLRA_25_1) Data Sources: Daniel Berlant, State Fire Marshal, CA Department of Forestry and Fire Protection Joe Tyler, Director/Fire Chief, CA Department of Forestry and Fire Protection Wade Crowfoot, Secretary for Natural Resources, CA Natural Resources Agency Gavin Newsom, Governor, State of CaliforniaThe State of California and the Department of Forestry and FireProtection make no representations or warranties regarding theaccuracy of data or maps. Neither the State nor the Department shallbe liable under any circumstances for any direct, special, incidental,or consequential damages with respect to any claim by any user orthird party on account of, or arising from, the use of data or maps. and other relevant factors including areas where windshave been identified by the Office of the State Fire Marshalas a major cause of wildfire spread. statewide criteria and based on the severity of fire hazard that isexpected to prevail in those areas. Moderate, high, and very high firehazard severity zones shall be based on fuel loading, slope, fire weather, Government Code section 51178 requires the State FireMarshal to identify areas in the state as moderate, high,and very high fire hazard severity zones based on consistent Waterbody Federal ResponsibilityArea (FRA)Unzoned LRA Incorporated City Projection: NAD 83 California Teale AlbersScale: 1:97,000 at 11" x 17" 0 1 2 3 4 5 6 7Km 0 1 2 3 4Mi Very High High Moderate Fire Hazard Severity Zones in State Responsibility Area(SRA), Effective April 1, 2024 Very High High Moderate Fire Hazard Severity Zones (FHSZ) in Local ResponsibilityArea (LRA), as Identified by the State Fire Marshal Palo Alto UNINCORPORATEDSAN MATEO CO. UNINCORPORATEDSANTA CLARA CO. elCam i n o Real 101 82 35 ATHERTON CUPERTINO EAST PALOALTO FREMONT LOS ALTOSLOSALTOS HILLS MENLO PARK MOUNTAIN VIEW NEWARK PORTOLAVALLEY REDWOOD CITY SAN CARLOS SAN JOSE SAN JOSE SANTACLARA SARATOGA SUNNYVALE WOODSIDE ALAMEDA CO. SANTA CLARA CO. SANMATEO CO. SANTA CLARACO. February 24, 2025 As Identified by the State Fire MarshalLocal Responsibility Area Fire Hazard Severity Zones CITY OF PALO ALTO – SANTA CLARA COUNTY Exhibit A Item 4 Attachment A - Ordinance of the Council of the City of Palo Alto adopting the 2025 Fire Hazard Severity Zone Map Issued by the State Fire Marshal Item 4: Staff Report Pg. 9 Packet Pg. 104 of 627 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Human Resources Meeting Date: August 11, 2025 Report #:2507-4928 TITLE Adoption of Memorandums of Agreement with the Palo Alto Police Officers’ Association (PAPOA) and the Palo Alto Police Managers Association (PMA) for Terms Ending June 30, 2028, and Corresponding Salary Schedules; CEQA Status – Not a Project RECOMMENDATION Staff recommend that the City Council: 1) Adopt the Memorandum of Agreement (MOA), and all associated salary schedules, between the City of Palo Alto and the Palo Alto Police Officers’ Association (PAPOA); 2) Adopt the Memorandum of Agreement (MOA), and all associated salary schedules, between the City of Palo Alto and the Palo Alto Police Managers Association (PMA). 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 PAPOA. PAPOA has ratified the tentative agreement. 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 operational sustainability as well as focusing on fiscal responsibility. The current agreements expired on June 30, 2025. ANALYSIS The agreements continue the City’s successful approach of cost of living adjustments and medical increases aligned across all bargaining groups. As with our other labor groups, the agreements include tailored market-based targeted adjustments intended to attract new Item 5 Item 5 Staff Report Item 5: Staff Report Pg. 1 Packet Pg. 105 of 627 recruits and retain our current staff. Additionally, certification related compensation is adjusted to encourage growth, knowledge and talent development within the organization. Across California, police departments continue to have significant recruiting challenges to hire officers. As reported to Council on June 16, PAPOA has 9 vacancies.1 The City’s goal with this new agreement is to halt costly turnover and maintain the community ‘s public safety service expectations. Term: through June 30, 2028 (3-year term) Cost of Living Adjustment: FY 2026: 3% FY 2027: 3% FY 2028: 3% August 2025: alignment with SEIU (all units will be on one flat rate) Jan 2026: None Jan 2027: Avg. of 4% increase in flat-rate contributions Jan 2028: 4% increase in flat-rate contribution PAPOA – Palo Alto Police Officers’ Association Unit Description: The Palo Alto Police Officers’ Association represents the City’s sworn Police Officer, Agents and Sergeants. This unit is comprised of 78 full time equivalent “FTE” and is responsible for serving on the frontline of public safety, enforcing laws, and engaging with the community. This agreement helps address the hard-to-fill positions by maintaining a competitive market placement and creating professional growth incentives to attract and retain qualified staff. Specific adjustments for PAPOA include: Market Based Adjustment: o FY 2025: 0.75% 1 City Council Meeting, June 16, 2025, Item 23, https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=16147 Item 5 Item 5 Staff Report Item 5: Staff Report Pg. 2 Packet Pg. 106 of 627 o FY 2026: 0.5% o FT 2028: 0.5% Deferred Compensation for PEPRA increased from $50 per mo., to $150 per mo. Detective Pay special compensation of 5% Advance POST certificate increased from 2.5% to 5% in July 2026 PMA – Palo Alto Police Manager’s Association Unit Description: The Palo Alto Police Managers’ Association (PAPMA) represents the City’s sworn Police Lieutenants and Captains. The unit is comprised of 7 FTE who provide upper and middle management level leadership within the Police Department, overseeing personnel and training programs, managing field services (including patrol and emergency response) and directing investigative operations. This agreement retains the current structure in place to support internal growth within the department by maintaining the spread between Sergeants and Lieutenants. Furthermore, the agreement helps retain our experienced managers and appeals to prospective police managers. Specific Adjustments include: Market Based Adjustment: 1% annually starting in FY 2026 Deferred Compensation: FY 2027: $250 per month, FY 2028: $400 per month Excess Management Benefit Increase from $2,500 to $3,000 annually starting in FY 2026 FISCAL/RESOURCE IMPACT Adoption of the Memorandum of Agreements for PAPAO and PMA will result in estimated cost increases of $6.4 million in the General Fund over the three-year term, ending June 30, 2028. The first-year contract costs were incorporated into the FY 2026 Adopted Budget, and costs for years two and three of the contracts were included in the General Fund long-range financial forecast; however, final estimates may vary based on actual staffing levels, classification changes, and health plan enrollment. Staff will incorporate these agreements into the development of future long-range forecasts and operating budgets. 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. Item 5 Item 5 Staff Report Item 5: Staff Report Pg. 3 Packet Pg. 107 of 627 ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: Item 5 Item 5 Staff Report Item 5: Staff Report Pg. 4 Packet Pg. 108 of 627 Palo Alto Peace Officers' Association Memorandum of Agreement July 1, 2025 – June 30, 2028 Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 5 Packet Pg. 109 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028 ii TABLE OF CONTENTS PREAMBLE 1 Section 1. Recognition 1 Section 2. No Discrimination 1 Section 3. Association Security 2 Section 4. Payroll Deduction 2 Section 5. No Strikes 2 Section 6. Probationary Period 3 Section 7. Salary Provisions 4 Section 8. Night Shift Differential 8 Section 9. Paid Holidays 9 Section 10. Working Out of Class Pay 10 Section 11. Retention/Career Incentive Program (Special Compensation) 10 Section 12. Dependent Care Assistance Program 11 Section 13. Court Pay 11 Section 14. Health Plans 12 Section 15. Dental Benefits 15 Section 16. Life Insurance Benefits 15 Section 17. Effective date of Coverage for New Employees 16 Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 6 Packet Pg. 110 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028 iii Section 18. Retirement Benefits 16 Section 19. Retirement Medical Plan 18 Section 20. Psychological Counseling Program 19 Section 21. Uniforms 20 Section 22. Work Schedule 20 Section 23. Overtime Pay and Compensatory Time Off 34 Section 24. Overtime Sign-Up 35 Section 25. Jury Duty 36 Section 26. Vacation Accrual 36 Section 27. Use of Vacation 37 Section 28. Vacation Pay at Termination 39 Section 29. Vacation Benefits for Deceased Employees 39 Section 30. Effect of Extended Military Leave 39 Section 31. Sick Leave 39 Section 32. Leaves of Absence Without Pay 42 Section 33. Leave of Absence With Pay 43 Section 34. Reduction in Force 44 Section 35. Agents 44 Section 36. Commute Incentives and Parking in Civic Center Garage 44 Section 37. Disciplinary Action and Unsatisfactory Work or Conduct 45 Section 38. Grievance Procedure 47 Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 7 Packet Pg. 111 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028 iv Section 39. Bulletin Boards and Telephones 50 Section 40. Access to Association Representatives 50 Section 41. Meeting Places 51 Section 42. Voluntary Leave Program: 52 Section 43. Utilization of Reserves for Field Services Division Events 53 Section 44. Overtime Meals for Investigative Services Division 54 Section 45. Hiring Incentives 54 Section 46. Full Understanding 55 Section 47. Printed Agreement 56 Section 48. Duration 56 Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 8 Packet Pg. 112 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028 1 MEMORANDUM OF AGREEMENT CITY OF PALO ALTO and PALO ALTO PEACE OFFICERS' ASSOCIATION July 1, 2025 – June 30, 2028 PREAMBLE This Memorandum of Agreement is pursuant to and subject to Sections 3500-3510 of the Government Code of the State of California, the Charter of the City of Palo Alto, and the City of Palo Alto Merit System Rules and Regulations. (This Memorandum of Agreement made and entered into at Palo Alto, California, by and between the City of Palo Alto, a municipal corporation (hereinafter referred to as "City") and the Palo Alto Peace Officers' Association, Incorporated, a California corporation (hereinafter referred to as "Association"), is intended to define agreements reached during the meet and confer process concerning wages, hours, working conditions, and other terms and conditions of employment for the represented group of employees. Section 1. Recognition The City recognizes the Association as the exclusive representative of an employee group consisting solely of Police Officer Trainees, Police Officers, Police Agents, and Police Sergeants who are regularly employed by the City and others who might be amended into the representation unit from time to time under existing law and the Merit System Rules and Regulations. Section 2. No Discrimination (a) The Association and the City hereby agree that there shall be no discrimination because of race, color, age, disability, sex, sexual orientation, national origin, political or religious affiliation, or any other protected classification as provided by applicable local, state or federal law. 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. (b) 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. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 9 Packet Pg. 113 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028 2 Section 3. Association Security (a) When a person is hired in any of the covered job classifications, the City shall notify that person that the Association is the recognized bargaining representative for the employee in said Unit and give the employee a current copy of the Memorandum of Agreement. (b) If there is no disruption of work, members of the Association Board of Directors may use a reasonable amount of on-duty time without loss of pay to attend to Association business specifically related to representation of employees. Such release time must be cleared in advance by the appropriate division manager who is a member of management. For purposes of this section, representation shall include: (i) Meetings with represented employees or management related to a grievance or disciplinary action, including investigation and preparation time. (ii) A meeting with management related to benefits, working conditions or other terms and conditions of employment. Section 4. Payroll Deduction The City shall deduct Association membership dues and any other mutually agreed upon payroll deduction from the bi-weekly pay of member employees. The dues deduction must be authorized in writing by the employee on an authorization card acceptable to the City and the Association. The City shall remit the deducted dues to the Association as soon as possible after deduction. Section 5. No Strikes The Association, its representatives, or members, shall not engage in or cause, instigate, encourage, sanction, or condone a strike, withholding of services, concerted abuse of leave of absence provisions, work stoppage or work slowdown of any kind. No employee shall refuse to cross any picket line in the conduct of Police Department business, nor shall the Association, its representatives, or members discriminate in any way toward anyone who refuses to participate in a strike, or any of the job actions cited above. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 10 Packet Pg. 114 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028 3 Section 6. Probationary Period (a) The probationary period for new employees entering the classifications of Police Academy Trainee or Police Officer shall end 12 months following the successful completion of Police Academy training. The probationary period for lateral entry positions, where Police Academy training is waived, shall be 12 months. In the event a probationary employee is absent for a period exceeding one-hundred and twenty (120) hours during the probationary period, probation will be extended by an equivalent number of duty hours. (b) 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. (c) During the probationary period a new employee may be terminated at any time by the appointing authority without cause. The existence of cause for termination shall not be arbitrable. Probationary employees shall not be terminated for reasons that violate Section 2. No Discrimination, of this Agreement, or for reasons that are unconstitutional or unlawful. (d) Probationary Period for New Supervisors (1) The probationary period for newly promoted Agents and Sergeants shall end 12 months from the effective date of the promotion, excluding time off due to any unscheduled absence or leave. (2) 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 newly promoted employee to the position and for rejecting any newly promoted probationary employee who in the opinion of management is not suitable to attain permanent status in the newly promoted rank. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 11 Packet Pg. 115 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028 4 (3) During the 12 month promotional probationary period the newly promoted employee shall be evaluated by his/her direct supervisor on a quarterly basis. (4) Any on-going and/or significant perceived deficiencies in the probationary employee’s work performance or supervisory aptitude shall be promptly communicated to the employee. When appropriate, the employee shall be provided with additional training and given opportunities to demonstrate their performance in response to the training. Such perceived deficiencies, any related training, and performance improvement or lack of response to training shall be documented by the employee’s supervisor and recorded in the employee’s quarterly evaluation for the quarter(s) in which the matter was addressed. (5) During the promotional probationary period, a newly promoted employee may be demoted to their previous rank at any time by the appointing authority if the employee demonstrates a lack of suitability for the newly promoted position. The demotion shall be based upon deficiencies in the performance or aptitude that have been addressed and documented as outlined in subsection (5). The existence of cause for demotion shall not be arbitrable. Promotional probationary employees shall; not be demoted for reasons that violate Section 2 of the Memorandum of Agreement, No Discrimination; or for reasons that are unconstitutional or unlawful. (6) In the event that management elects to demote an employee during his or her probationary period, pursuant to subsection (6), the affected employee may request a hearing with the Chief of Police. The hearing shall be held promptly and prior to the intended effective date of demotion, so as to afford the employee with a meaningful and timely opportunity to respond to the stated reason(s) for demotion. Section 7. Salary Provisions (a) Market Adjustment: Effective the first full pay period following City Council Adoption, salary ranges of all bargaining unit classifications will be increased by three percent (3%), and a 0.75% market adjustment for a total increase of 3.75%, which is sufficient to bring them to the top quartile of market median as determined by the City’s market study. (b) General Salary Increase: Effective the first full pay period including July 1, 2026, salary ranges of all represented classifications will be increased by threepercent (3.0%) and a 0.5% market adjustment for a total increase of 3.5%. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 12 Packet Pg. 116 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028 5 (c) General Salary Increase. Effective the first full pay period folllowing July 1, 2027 salary ranges of all represented classifications will be increased by three percent (3.0%) and 0.5% market adjustment for a total increase of 3.5%. (d) Flexible Compensation: Effective the first full pay period following City Council Adoption of the successor MOA in 2023, and in lieu of an increase to the City contribution towards medical premiums, each represented classification had their monthly income increased by $100. (e) Flexible Compensation: Effective the first full pay period following January 1, 2024, and in lieu of an increase to the City contribution towards medical premiums, each represented classification had their monthly income increased by an additional $100 (total of $200). (f) Total Compensation and Survey Database. Management and the Union have agreed to a compensation survey database structure. Survey Cities include: Alameda, Berkeley, Concord, Fremont, Hayward, Milpitas, Mountain View, Redwood City, San Leandro, San Mateo, Santa Clara, and Walnut Creek. Compensation Criteria includes: top step salary, maximum longevity, maximum education/POST, uniform allowance, holiday pay, deferred compensation, employee pick up of employer pension costs (Negative EPMC), and maximum City paid benefits (such as a review of 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. (g) Salary Steps & Ranges (Eligibility) New officers attending the basic police academy will be compensated at the “Police Trainee” level. Academy Graduates and Lateral Officers with less than two years experience will be compensated at the “Police Officer” “Step 1” Level or higher. FTO Completion: Officers become eligible for the first step increase after they complete the Field Training Program and have been with the department for a year from the academy graduation (Laterals a year from hire date). For employees hired on or after July 1, 2018, the pay increase for this completion is one step on the salary schedule (approximate 5% increase), no higher than Step 4. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 13 Packet Pg. 117 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028 6 First Class Exam: Officers become eligible to take the exam any time after they have successfully completed the Field Training Program. However, the pay increase will not take effect until one year from the date of the first step increase, as stated in the above paragraph. (Lateral officers’ pay increase may be effective one year from the date of hire) For employees hired on or after July 1, 2018, the pay increase for First Class is one step on the salary schedule (approximate 5% increase), no higher than Step 5. Effective upon ratification of this Agreement by the City Council, upon promotion to Agent or Sergeant, employees will be eligible for a step increase after one (1) year from the date of promotion so long as they receive a satisfactory performance evaluation. Each twelve (12) months of actual service after the evaluation date, each employee receiving a satisfactory performance evaluation shall receive a merit increase to the next higher step until the top step of the pay range for the job class has been reached. (h) POST Certificate/Incentives Basic Post: Officers become eligible upon completion of their probationary period. The certificate must be obtained within 18 months of hire date. (No Salary Increase) Intermediate POST: Employees that qualify for the Intermediate POST certificate will be compensated at the corresponding salary schedule (e.g., “Police Officer/Inter”), effective the first full pay period after the employee provides proof of submission of the required paperwork to POST (approximate 5% increase). Advanced POST: Employees that qualify for the Advanced POST certificate will be compensated at the corresponding salary schedule (e.g., “Police Officer/Adv”), effective the first full pay period after the employee provides proof of submission of the required paperwork to POST (approximate 2.5% increase). Effective the pay period including July 1, 2026, Advanced POST shall be increased an additional 2.5% for a total of five percent (5%) of base pay. Employees are responsible for contacting Personnel & Training in order to arrange taking tests and application for POST certificates. (i) Special assignment premium pay Effective with the pay period including July 1, 2001, biweekly premium pay for Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 14 Packet Pg. 118 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028 7 employees assigned to the indicated specialties will be as follows: Field Training Premium: 5% of base pay per pay period. Applies to management-assigned Officers and Agents and Traffic Team members during each pay period in which they provide training to police recruits, Community Service Officers or Level II reserve officers who are working on their Level I certificate. Applies to management-assigned FTO Sergeants during each pay period in which they supervise assigned FTO Officers or Agents who are actively training police recruits, Community Service Officers or Level II reserve officers who are working on their Level I certificate. Traffic Premium: 5% of base pay per pay period. Officers, Agents and Sergeants who management assigns to routinely and consistently operate or patrol on a motorcycle. K-9 Program Premium: 5% of base pay per pay period. Effective January 1, 2008, K-9 Officers/Agents shall receive 5% of base pay per pay period to compensate for the time spent by the K-9 Officer/Agent outside regularly scheduled work hours to feed, groom, house, exercise, attend to the medical and dental needs of and otherwise maintain the dog. Detective Premium: 5% of base pay per pay period. Effective upon ratification of this Agreement, Officers, Agents, and Sergeants who management assigns to the Investigation Services Division. Bilingual Premium: 5% of base pay per pay period. Applies to representation unit employees certified by management as proficient in other languages as outlined below. (i) Approved Languages Spanish, Chinese (Mandarin and Cantonese), Japanese, Tagalog, Korean, Vietnamese, Russian, American Sign Language, and such other languages as determined by management. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 15 Packet Pg. 119 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028 8 (ii) Proficiency Requirements Officers, Agents, and Sergeants who pass a basic “first responder” proficiency test administered by a professional linguist will be eligible for bilingual pay. This proficiency test will be a one time test to ensure the candidate has the ability to verbally communicate (with the exception of American Sign Language) as a first responder in the selected Language. First responder proficiency will include, but is not limited to, the ability to take basic crime and accident reports; issue a citation and explain the court process; complete a field interview card; give directions; give a Miranda admonition; and generally be able to communicate with a non-English speaking person in need of basic police services. Study material will be provided by the City to all employees to assist in test preparation. (iii) Testing Process In order to best accommodate the wide range of languages, proficiency testing will be conducted by professional linguists outside the Police Department that have been agreed upon by the Association and Management. A basic first responder proficiency exam has been developed based upon the needs of the organization. The City will pay for the initial test for each employee. Employees who do not pass the initial test may retest as many times as necessary. However, subsequent tests will be at the employee’s expense. Section 8. Night Shift Differential (a) Night shift differential shall be paid at the rate of 5% to all FSD personnel for all hours worked between 6:00 p.m. and 8:00 a.m. (b) All employees covered under Section 23(d) working a regular shift between 7:00 a.m. and 7:00 p.m. shall receive 5% night shift premium for hours worked between 7:00 p.m. and 7:00 a.m. Vacation and administrative leave pay for employees who regularly work night shifts shall include appropriate night shift premiums, relating to night shift hours regularly worked. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 16 Packet Pg. 120 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028 9 Shift adjustment hours for employees who regularly work the 4-11 work schedule shall include the appropriate night shift premium based on the percentage of usual night shift hours worked to regular hours. Section 9. Paid Holidays (a) All represented employees on leave of absence without pay shall not receive in-lieu holiday accrual during such leave, or any compensation for holidays occurring during such leave. (b) Employees shall not receive paid holidays, but in lieu thereof shall receive 3.846 hours straight time pay each pay period that they are in paid status, to a maximum payment of one hundred (100) hours per year. Holiday hours will be pro-rated for employees in paid status a portion of a pay period. Hours under this provision will be paid each pay period while in a paid status. Employees working non-field services assignments shall be eligible to use accrued paid leave time balances for any of the following recognized City holidays subject to management scheduling approval: January 1 Third Monday in January Third Monday in February Last Monday in May July 4 First Monday in September Second Monday in October November 11 Thanksgiving Day Day after Thanksgiving Day December 25 Either December 24 or December 31, A Day of Reflection in recognition of a day of the employee’s choosing, including Juneteenth Freedom Day (June 19) or Cesar Chavez/Dolores Huerta Day (March 31) Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 17 Packet Pg. 121 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028 10 Section 10. Working Out of Class Pay Officers, Agents and Sergeants working out of class for a period of four or more consecutiveshifts) shall be compensated with the following premium pay; Officers and Agents working as an Acting Sergeant: 7% of base pay for all shifts Sergeants working as an Acting Lieutenant: 10% of base pay for all shifts Agents, and Sergeants fulfilling the role of an Acting Sergeant and/or Acting Lieutenant for individual shifts and/or a number of hours within a shift, shall not receive additional compensation. Periodically working in this capacity shall be deemed a basic duty within an employee’s job description. 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 11. Retention/Career Incentive Program (Special Compensation) (a) Retention/Career Incentive Program On July 1, 2007 the City will initiate a Retention/Career Incentive Program. It is recognized that hiring, training, and retaining qualified law enforcement personnel is becoming increasingly difficult, time consuming, and very expensive. This program is designed to provide greater incentives for hiring new employees, retaining long-term employees, and attracting quality lateral candidates from other law enforcement agencies. This program will provide special compensation in the form of premium pay at various levels as employees reach different career milestones. Both parties acknowledge that in the 2007 negotiations, the cost of the program was partially offset through salary and/or benefit reductions agreed to elsewhere in this Memorandum of Agreement. All employees with more than 10 years of service shall receive special compensation in the form of retention pay at 3% of straight time base pay. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 18 Packet Pg. 122 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028 11 All employees with more than 15 years service shall receive special compensation in the form of retention pay at 6% of straight time base pay. Maximum under this provision is 6%. As an incentive to recruit and hire lateral law enforcement personnel from other agencies, the following shall apply. At the Chiefs discretion, up to 5 years of full time law enforcement service may be counted towards the years of service outlined above. Special Compensation/Retention Pay outlined in the Retention/Career Incentive Program shall be deemed PERSable for the purpose of income and retirement however will not be a factor when calculating “MOU” (non-FLSA) overtime compensation. Section 12. Dependent Care Assistance Program and Medical Flexible Spending Accounts. The City will provide a Dependent Care Assistance Program (DCAP) and Medical Flexible Spending Account (FSA) for employees according to the provisions of the Federal Economic Recovery Act of 1981, Code Sections 125 and 129. With the exception of matters within the City’s sole control (e.g., establishment of the FSA), all matters related to the FSA shall be excluded from the MOA grievance procedure. Disputes regarding the administration of the plan shall be subject to the dispute resolution procedure provided by the plan document. The FSA will be available to representation unit employees effective January 1, 2019, and remain in effect subject to a reasonable minimum participation level and availability of third-party administrative services at a reasonable cost. Section 13. Court Pay Sworn Police Personnel appearing in court or in an administrative forum in the course and scope of their normal duties will be compensated according to the following: Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 19 Packet Pg. 123 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028 12 (b) During scheduled shift or immediately preceding or following a shift Time and one-half for period before or after scheduled scheduled work day by employees of Team #3 scheduled work day by employees of Team #4 or appearances Section 14. Health Plans (a) PEMHCA Health Plan The first full pay period including Council adoption, the City will increase the maximum City contribution towards medical premiums for eligible full time employees per employee category to the following for any plan: Medical Category Premium Total Maximum City Contirbution (inclusive of PEMHCA contribution*) effective first full pay period following Employee Only $943.00 Employee plus one $1,885.00 Employee Family $2,444.00 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 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 20 Packet Pg. 124 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028 13 Medical Category Premium Total Maximum City Contirbution (inclusive of PEMHCA contribution*) Employee Only $962.00 Employee plus one $1,942.00 Employee Family $2,566.00 Effective January 1, 2028, the City will increase its maximum contribution to medical premiums by four percent (4%). Medical Category Premium Total Maximum City Contirbution (inclusive of PEMHCA contribution*) Employee Only $1,000.00 Employee plus one $2,020.00 Employee Family $2,669.00 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. *PEMHCA minimum changes annually. 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 amount listed in the “Total Maximum City Contribution” columns 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) Vision Care Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 21 Packet Pg. 125 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028 14 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. 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. c) Dependents will include domestic partners, as defined under Section 14 (c). (c) Active Employee Domestic Partners 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 partnership 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 a stipend of two hundred eighty four dollars ($284.00) per month toward the cost of an individual health plan. Evidence of premium payment will be required with request for stipend. (d) 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 medical plan, the Employee may choose to waive his/her right to the City of Palo Alto’s medical insurance and receive cash payments in the amount of two hundred 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. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 22 Packet Pg. 126 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028 15 Participation must result in a health insurance cost savings to the City and payments per employee shall not exceed a total of two hundred eighty four dollars ($284.00) per month. To participate in the program the employee and dependents must be eligible for coverage under PEMHCA medical plans, complete a waiver of medical coverage form, and provide proof of eligible alternative medical coverage. 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 by only one spouse Section 15. Dental Benefits (a) Level of Benefits: The City will maintain the present level of benefits on the City-sponsored dental program for current employees and their dependents (base dental 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. Employees will be responsible for premium payments required to enroll in the “buy-up” dental plan. (c) Dependents will include domestic partner, as defined under Section 14 (c). Section 16. Life Insurance Benefits The City will offer employees Basic and Supplemental life insurance plans. The City shall enroll all employees and pay the premium for a Basic life insurance plan equal to the employee’s annual salary. Employees will have the option of enrolling in a Supplemental life insurance plan and will be responsible for paying the premiums required to enroll in the plan. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 23 Packet Pg. 127 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028 16 Section 17. Effective date of Coverage for New Employees For newly hired regular employees coverage begins on the first day of the month following date of hire for the health plan, dental plan, vision care plan, and life insurance plans if these benefits are elected. Section 18. Retirement Benefits (a) Safety Pension Group A: “3% at 50” Safety Retirement The City will continue the present benefits under the Public Employees’ Retirement System (PERS) “3 percent at 50” (3% @ 50) Retirement Formula per California Government Code §21362.2 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 the “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 20042). Current employees continued to be covered under Government Code 20692, Employer Paid Member Contribution, to the extent there is a City paid member contribution in the final year. (b) Safety Pension Group B: 3% at 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% at 55), with the final salary determination for such employees of “three 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). This new tier also eliminated Section 20692, Employer Paid Member Contribution. (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. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 24 Packet Pg. 128 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028 17 (d) Employee Share of PERS Contribution Employees in all sworn represented classes in Pension Groups A and B described above will make a 12% PERS member contributions by payroll deduction. Employees in all sworn 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, plus an additional 3%. Trainees will pay the same employee contribution as miscellaneous members while attending Basic Academy (see section (g) below). The City will continue to provide for member contributions to be made as allowed under the provisions of IRS Code §414(h)(2). (e) Additional Employee PERS Contributions • Effective the first full pay period following July 1, 2019 or as soon as administratively possible, all employees regardless of pension formula in this unit shall contribute an additional 0.5% to the Employer share of pension for a total of 3.5% contribution toward the Employer share of pension. (Total Employee contribution will be 12.5% for Classic; 50% of Normal Cost plus 3.5% for PEPRA.) • Additional contributions will coincide with the City amending its contract with CalPERS to reflect these changes. However, should CalPERS delay or the Association fail to approve the CalPERS amendment required to incorporate the additional 0.5% contribution, the City may implement the additional 0.5% effective July 1, 2019 without a contract amendment., and additional employee PERS contributions under CalPERS 20516 will be provided on a pre-tax basis to the extent allowable by law. (f) 457 Deferred Compensation Plan Effective the first full pay period following ratification and approval, all employees who are classified as “New Members” by PERS or “Group C’ by the MOA will receive $150 per month contributed into their 457 deferred compensation plan. Eligible employees must have an active 457 plan in order to receive City contirbutions. 1959 Survivor Benefit Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 25 Packet Pg. 129 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028 18 The City will continue to provide the basic level (Level 1) of 1959 Survivor Benefit to eligible employees in accordance with California Government Code §21571. (g) Military Service Credit The City’s contract with the Public Employees' Retirement System provides for Section 20930.3, Military Service Credit as Public Service. (h) Retirement Privileges All retired employees and spouses of deceased employees shall have residential privileges at City libraries, refuse disposal area, golf course, and swimming pools. (i) PERS Status While in Basic Academy. While an employee is attending Basic Academy, he or she shall participate in the City’s PERS Miscellaneous Employee retirement plan with the same employee and employer contribution rates as applies to Miscellaneous City employees represented by SEIU (classified unit). When the employee successfully completes Basic Academy and is sworn in by the Police Chief, he or she shall prospectively participate in the PERS Safety Employee retirement plan. Section 19. Retirement Medical Plan (a) Retiree Medical Coverage - Employees hired before January 1, 2006 who have not voluntarily elected to participate in the Retirement Healthcare Benefits provided in Government Code section 22893: 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 who retire on or before December 31, 2007. Effective March 1, 2009, for an employee retiring on or after that date, the City will pay up to the monthly medical premium for the second most expensive plan among the existing array of plans during the Agreement term. Effective April 1, 2015, for an employee retiring on or after that date, the City contribution shall be the same contribution amount it makes for active City employees. The parties mutually agree that the benefits provided in this paragraph for employees retiring on or after April 1, 2015 will fluctuate from time to time based on the City’s contributions to health care for active employees. Accordingly, Association members Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 26 Packet Pg. 130 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028 19 who retire on or after April 1, 2015 and have not elected to participate in the Retirement Healthcare Benefits provided in Government Code section 22893, do not maintain a vested interest in any particular contribution by the City above the amount required under the PEMHCA. (b) Retiree Medical Coverage - Employees who voluntarily elect to participate in Government Code section 22893, and all Employees hired on or after January 1. 2006: The CalPERS vesting schedule set forth in California Government Code § 22893 will apply to all Association members hired on or after January 1, 2006, and employees hired prior to January 1, 2006 who voluntarily elect to participate in the Retirement Healthcare Benefits provided in Government Code § 22893. Under this law, an employee is eligible for 50% of the specified employer health premium contribution after ten (10) years of service credit, provided at least five (5) of those years were performed with the City of Palo Alto. After ten (10) years of service credit, each additional year of service credit will increase 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. However, the maximum contribution for family members will be 90% of the specified employer contribution. Notwithstanding any other term of this section, the City of Palo Alto's health premium contribution for employees hired on or after January 1, 2006, and employees who voluntarily elect to participate in Retirement Healthcare Benefits provided by Government Code § 22893, will be the minimum contribution set by CalPERS under California Government Code § 22893 based on a weighted average of available health plan premiums. Section 20. Psychological Counseling Program The psychological counseling program currently in effect shall be continued. The program shall provide 24-hour emergency counseling by independent professional consultants. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 27 Packet Pg. 131 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028 20 Section 21. Uniforms (a) The City will supply complete uniforms to all sworn personnel. All uniform items are the property of the City. One complete uniform consists of: (1) three pair of trousers, (2) three short-sleeved shirts with patches and zippers if desired, (3) three long-sleeved shirts with patches and zippers if desired, (4) three cotton or two synthetic fiber turtleneck shirts, (5) hat, (6) duty jacket with patches, (7) necktie, and (8) rain gear. 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 $42.31 per pay period. (b) At the time of initial employment, every sworn employee will be issued one complete uniform. Uniform items will be replaced on an as-needed basis subject to verification by management. (c) The City shall provide uniform cleaning for sworn representation unit personnel. (d) Personnel are accountable for all uniform items issued to them. If a particular item is lost or damaged due to employee negligence, the employee will be required to reimburse the City for value of the item(s) lost or damaged. (e) The City shall reimburse employees for the full cost of job-related safety boots up to $400 per fiscal year. The City will make the reimbursement only upon proof that the previous boots have become unserviceable due to wear or damage and upon verification of such purchase by the employee. (Job-related safety boots shall mean well-constructed, high topped boots that provide full ankle and foot support, which are selected from list agreed to by Management and the Association.) All Department-provided safety boots shall be purchased through this program. Employees are responsible for the full cost of any low-top, black shoes that are worn with the uniform. Section 22. Work Schedule (a) Field Services Division 4/11 Schedule The patrol schedule will have two sides, “A-Side” and “B-Side.” There will be ten patrol teams each supervised by a Sergeant or Acting Sergeant under the management of Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 28 Packet Pg. 132 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028 21 patrol lieutenants. Five Patrol teams will work an “A” schedule and five Patrol teams will work a “B” schedule. Patrol officers, agents, and sergeants will report for duty promptly at the designated times for each team. Patrol team schedules are as follows. Patrol Division Team Schedules A-Side B-Side Team 1A 0500 to 1600 Team 1B 0500 to 1600 Team 2A 0700 to 1800 Team 2B 0700 to 1800 Team 3A 1400 to 0100 Team 3B 1400 to 0100 Team 4A 1800 to 0500 Team 4B 1800 to 0500 Team 5A 2000 to 0700 Team 5B 2000 to 0700 Team’s 2A, 3A, and 4A are designated as field training teams. (1) 4/11 Work Schedule The work schedule will be based on an eight (8) day cycle with each employee working four (4) consecutive days on and having four (4) consecutive days off. The eight (8) day cycle will advance the employee’s workdays and days off within the calendar week one day every cycle. The overall cycle repeats itself every eight (8) weeks. Over the course of a year (26 pay periods) each employee works 182 eleven (11) hour regular patrol shifts totaling 2002 hours, 78-hours short of the required fulltime equivalent work year of 2080 hours. In the Patrol Division and with the approval of the Patrol Captain, a maximum of two (2) paired “fixed days” schedules (4 Employees) may be established, at the employees’ request. The regularly scheduled hours of work for such a position must cover the days off of the position with which it is paired. For example, one position could have Sunday, Monday, Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 29 Packet Pg. 133 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028 22 and Tuesday off while the other could have Thursday, Friday, and Saturday off. It shall be the responsibility of employees interested in a paired fixed day schedule to identify another employee who is willing to participate in the paired arrangement. If either employee or the Department desires to terminate a paired schedule once it is in effect, the employee or Department, as applicable, must give the other affected parties to the arrangement at least one (1) full pay period advance written notice. Resumption of the employees’ participation in the normal rotation shall begin on the first day of the second full pay period following the date notice is delivered to the other parties. Employees on a fixed schedule will be required to attend the designated CPT (Continued Professional Training) training days either on their regularly scheduled workday or on a day off. If they attend training on their regularly scheduled day off, they will be compensated by receiving an adjusted day off within the same pay period. Employees requesting a schedule different from the rotating 4/11 must submit their request in writing prior to the team selection process. The requests will only be considered on an extreme hardship basis The following hours and minimum staffing levels will be observed on both sides of the Patrol Division. During team overlaps, the combined staffing levels of the teams will serve to meet minimum staffing levels. 0700-2400 hours 1 Lieutenant/Sergeant Watch Commander 1 Sergeant/Agent Supervisor 6 Officers/Agents 0001-0300hours 1 Lieutenant/Sergeant Watch Commander 1 Sergeant/Agent Supervisor 5 Officers/Agents 0300- 0700 hours 1 Sergeant Supervisor 5 Officers/Agents Under routine circumstances, personnel will be able to receive time off as long as minimum staffing numbers remain available for duty. Management may deny time off to maintain staffing greater than the minimum numbers outlined above. It’s anticipated this will only occur in special situations where greater staffing is needed. (2) Designated CPT Training Days within the 4/11 Schedule: Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 30 Packet Pg. 134 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028 23 The 4/11 Schedule will have designated CPT training days and flexible training hours to make up the seventy-eight (78) hours necessary to complete a full work year. A training bank will be created for each employee on the 4/11 Schedule to track and monitor the use and balance of the 78-hours. The training bank and its use are outlined in the next section. For CPT training days which require employees to travel outside the City of Palo Alto, an additional two (2) hours of training bank time will be made available to account for all travel time related to attendance at training. The Division Captain may authorize additional time on a case-by-case basis. Management will determine the number of designated CPT training days and stagger them throughout the year in order to avoid overtime insofar as possible. Designated CPT training days will be scheduled prior to the beginning of each shift year. Unless otherwise determined by the Department, there will be five (5) designated CPT training days each year. These training days will vary in duration but will in most cases be approximately eight (8) to ten (10) hours in duration. The exact number of designated CPT training days, their duration in hours, and the remaining flexible training bank time will be determined prior to shift change and vacation selection. If it’s anticipated that the number of training days will vary in any given year, Management will notify and, on request, meet with PAPOA to consider any concerns the Association may have. Patrol personnel will not be permitted to take vacation on any one of these pre-designated CPT training days. The Division Captain may authorize an exception based on compelling circumstances. The course content and training provided on the designated CPT training days can vary from year to year to meet current and changing training needs. It will be the responsibility of the Personnel and Training Division to schedule and coordinate the training on designated CPT training days. Training days may be scheduled during daytime and/or nighttime hours to accommodate training needs. Sworn employees not on the 4/11 Schedule will be required to attend designated C.P.T. training days. Each of the training days will be broken into two (2) single day sessions for Patrol (A side and B side). It is anticipated that approximately fifty percent (50%) of the non-4/11 employees will attend one (1) of the two (2) days during each of the training cycles. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 31 Packet Pg. 135 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028 24 If the nature and/or complexity of the training does not allow for a larger groups, multiple sessions can be scheduled on additional training days. (3) Flexible Training Hours This schedule results in seventy-eight (78) hours that will be made up during the year through designated CPT training days and flexible training time. It is anticipated that approximately fifty (50) hours will be set aside each year for designated CPT training days (exact number to be determined each year). Once the hours set aside for designated CPT training days is established, the remaining hours shall be used for flexible training as follows. Employees on the 4/11 Schedule attending training on a day off or outside their normal shift shall use their available Flexible Training Bank hours (Non-CPT Hours) prior to using overtime. All Flexible Training Bank hours must be used prior to earning overtime. The only limitation on the use of these training hours is that no employee can exceed the one hundred seventy-one (171) hour FLSA limit in any twenty-eight (28) day cycle. The combination of regular work shifts, designated CPT training days, and flexible training time cannot exceed one hundred seventy-one (171) hours in any FLSA Cycle. Any hours worked over one hundred seventy-one (171) in a twenty-eight (28) day cycle are considered premiums hours and must therefore be paid at the overtime rate. The following is a list of some of the forms of training that could use hours from the bank; SWAT DRO Range Masters Quarterly Shoots FTO Meetings K-9 Sergeant’s meetings FTO School 11550 School Radar School Supervisor school All other Training If an employee doesn’t use his or her flexible training hours during the year, he or she will be required to make up the difference by either working extra shifts, partial shifts or by using vacation, compensatory time off, and/or holiday time from one of their banks at the end of each fiscal year. The Watch Commander and Supervisor will work with employees to schedule extra shifts or use vacation, holiday or compensatory time off balances. These hours are hours the employee is being compensated for during the normal twenty-six (26) pay periods. The employee must work the hours on a straight time basis or use vacation, holidays or compensatory time off for the compensation received throughout the year. (4) Other Training (not covered by the flexible training bank) Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 32 Packet Pg. 136 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028 25 The 4/11 Schedule significantly impacts designated CPT training days, shift training, and to some extent training compensated under the flexible training hours. The following guidelines should be followed when attending training not covered by the flexible training hours. All training bank hours, adjusted time off associated with training, and/or overtime associated to training shall be approved in advance by the employee’s watch commander or supervisor. training on a day off. of hours at training or adjustment for one patrol shift. Adjustments will be documented in the City timekeeping system. training on a day on. timekeeping system. but less than a week. off one patrol shift. Adjustments will be documented in the City timekeeping system training on a day off. in training. Adjustments will be documented in the City training on day on. the training and be expected to work the remainder of their shift. Adjustments will be documented in the City timekeeping system. day (week) training session that doesn’t exceed forty-four (44) hours. employee is in their twenty- employee will be adjusted off the patrol schedule when attending four or five day training sessions. The employee will be adjusted from four (4) eleven (11) hour shifts as Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 33 Packet Pg. 137 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028 26 adjusted days will be as close to the days the employee attended training as possible. Employees will not receive overtime under this situation unless the total time training exceeds forty-four (44) hours. Adjustments will be noted in (5) Assignments of Sworn Personnel on the 4/11 Schedule Each year assignments are made for management staff for the coming fiscal year. Subsequent to those assignments, officers, agents, and sergeants apply for specialty positions. At the conclusion of those specialty selections, the Patrol Team Selection process begins. Each year, the following process will be used for patrol team selection. Field Services Division Shift Assignment Process: Field Services sergeants, agents, and officers will select their work team based on the following criteria. a. Sergeants, in order of seniority, shall select one of the ten patrol teams. Sergeants may select any open team with the exception of those teams designated as Field Training teams. FTO Sergeants, in order of seniority, will select one of the designated FTO teams. b. Field Training Officers/Agents, in order of seniority, shall select one of the slots open and designated as FTO slots on one of the three FTO teams. The following teams have been pre-designated as training teams: Team 2A, Team 3A, and Team 4A. c. K-9 Officers/Agents – K-9 officers/agents will generally select one of the night shift teams: Teams 4 and 5. Selections will be based on rank and seniority. Only one K-9 will be allowed per team and K-9’s will be evenly split between the two sides Any exception to these assignments must be requested and approved by the Field Services Coordinator prior to the start of the selection process. d. Agents, in order of seniority, shall select any of the open agent’s slots remaining on any of the patrol teams. A minimum of three (3) agents will be assigned to the A- Side and a minimum of three (3) agents will be assigned to the B-Side. If a greater number of agents are assigned to patrol, management will evenly designate agent’s Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 34 Packet Pg. 138 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028 27 slots insofar as possible to as many of the patrol teams as possible with the goal being to have one agent on each patrol team. e. Officers, in order of seniority, shall select any remaining slot available on any of the patrol teams. f. Probationary Officers - May be assigned to teams at the discretion of the Field Services Division Coordinator. These assignments will be made based on the developmental needs of the new employee, the staffing needs of the organization, and in a manner that minimizes the loss of prime bidding slots for more senior officers/ agents. Additional Team Selection Guidelines Prior to the selection process, management shall determine the number of agents, and officers assigned to each team. Additionally, management will determine which teams are available for selection by K-9 Officers/Agents. Field Training Officers/Agents, Field Training Sergeants, and probationary employees shall be subject to administrative assignment. In the spring of each year, all employees participating in the patrol team selection process will receive a schedule identifying available slots, the process for team selection, and a date and time for the employee to make their selection Team Selection Reservations – Once Officers/Agents/Sergeants select a team, they will be guaranteed that team even if they are unable to work that team at the start of the shift year due to special assignment, internship, leave of absence, disability, illness etc. Officers, Agents and Sergeants may not remain in the same time slot for more then two consecutive years. Team change request will be considered with the approval of management. Any request for an anticipated change to the assignment of sworn personnel shall be routed to the Field Services Division Coordinator prior to the selection process. (6) Vacation Selection Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 35 Packet Pg. 139 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028 28 Concurrent Vacation Authorization – Officers and Agents Patrol Division – Four (4) slots are authorized on the A-Side and four (4) slots are authorized on the B-Side. It is anticipated that this would equate to two (2) slots on night shift (Teams 3, 4, and 5) and two (2) slots on day shift (Teams 1, and 2) for each side. Any exceptions to these rules may be made by the Field Services Division Coordinator based on special circumstances. Concurrent Vacation Authorization - Sergeants Patrol Division – Two (2) slots are authorized in patrol on the A-Side and two (2) slots are authorized in patrol on the B-Side. It is anticipated that this would equate to one (1) slot on the night shift (Teams 3, 4, and 5) and one (1) slot on the dayshift (Teams 1 and 2) for each side. Exceptions to allow two (2) sergeants vacation at the same time for special circumstances may be made by the shift lieutenant. Other exceptions to this rule may be made by the Field Services Division Coordinator. a. The A-side and B-side will have separate vacation signups. It’s also anticipated that the dayshift and nightshift will have separate signups. For agents and above, selection will be based on rank and time in rank. Personnel having the greatest tenure in rank will have priority. For officers, selection will be based on seniority. If seniority is equal, low badge number shall have priority. b. Sergeants will have a separate signup sheet from agents and officers. During the initial sign up sergeants will have two guaranteed slots per side, one (1) on day shift and one (1) on night shift. Agents/officers will have four (4) guaranteed slots per side, two (2) on day shift and two (2) on night shift. Vacation Selection Process: Vacation selection will occur within a few weeks of the team selection process each spring. Selections will take place on two days, one day for the A-Side and one day for the B-Side. Sergeant, agents, and officers will be given time slots to come in, call in, or may submit in advance written instructions on choice for vacation weeks. The selections will be made based on rank and seniority. Both sides agree to monitor the outcome of the process and enter into a mutual agreement to continue or discontinue the process. (7) Time Keeping and Payroll Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 36 Packet Pg. 140 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028 29 All employees working under the 4/11 schedule will work eleven (11) hours a day, four (4) consecutive days a week. These eleven (11) hours will be entered in the timekeeping system on the day they are worked and/or prior to pay period payroll deadlines. Employees attending one (1) of the designated CPT training days will enter the hours of training on a “training timesheet” and enter the time in the timekeeping system. Employees using hours from their flexible training bank shall complete a “training timesheet” and enter the time in the timekeeping system. Employees working the 4/11 Schedule will not receive overtime compensation for hours worked under the following conditions. • Hours worked as part of a regular 11-hour work day. • Hours worked on a designated CPT training days. • Hours associated to training where hours from the flexible training bank could be used. • Non-Mandatory training where adjustments from the patrol schedule are possible. Overtime shall be paid for “Mandatory” training once training bank hours have been exhausted. Overtime shall be paid for “Mandatory” meetings that fall outside the specialty exemption listed below. Participation in department specialties including training, meetings, and other activities is not considered a mandatory activity when it comes to overtime compensation. Wherever possible, employees participating in department specialties and other non-mandatory activities will be adjusted off the patrol schedule for these activities. Schedule adjustments will occur as close to the activity outside the employee’s normal work schedule as possible and within the same FLSA Cycle. Schedule adjustments for personnel working nights: All personnel attending a full day of training on a work day will be adjusted off the patrol schedule for their work shift that day. In addition to being adjusted off any shift that starts on the day the training occurs, employees working Teams 3, 4, and 5 the night before the training will be adjusted off the night before as follows. If the training is all day starting in the morning hours, these adjustments will apply. Team 3: Adjusted off at 2200 hours. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 37 Packet Pg. 141 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028 30 Teams 4 & 5: Adjusted off the entire shift. If a night shift employee is scheduled for a full day of “Mandatory” training on the morning of his or her first day off, the same adjustments listed above will apply. In addition to the necessary adjustment, employees will receive compensation for the training hours through the use of training bank hours. When training bank hours are exhausted, the employee will receive overtime. The time keeping system entries: Each employee must enter his or her time in the timekeeping system that accurately reflects the hours he or she works. When schedule adjustments are made, overtime is worked, or training bank time is used, employees must make appropriate notes in the comment section of the timekeeping system. Supervisors and timekeepers may complete the timekeeping system entries when employees are unavailable due to illness or other situations and employees will thereafter verify the timekeeping entry is accurate upon their return to work. Managers and supervisor will approve time entries made in the time keeping system. Managers and supervisors will pay special attention to the use of training bank time and overtime. Time entries should be reviewed for regular hours and training hours that may exceed the FLSA guideline of 171 hours in a 28 day cycle. With the 4-day on 4-day off rotation, employees will work either 66 or 88 hours in each pay period. The timekeeping system will shift adjust the appropriate number of hours into (+14) and out of (-8) the employees bi-weekly totals so each employee receives compensation for 80 hours. Regardless of the number of hours worked under the FLSA exemption, an employee will be compensated for 80 regular hours every bi-weekly payroll cycle. These shift adjusted hours (-8 or +14) will be added to or taken away from the timecard at the appropriate day/night shift differential rates for each employee. As an example, if an employee’s normal shift is paid at 75 percent day rate and 25 percent night rate, all hours shift-adjusted on to or off the timecard will be adjusted using the same approximate ratio of 75/25 percent for day/night rates. If an employee leaves city service while on the 4/11 schedule, staff and payroll shall perform the training bank reconciliation of the number of hours the employee is over or under the normal forty (40) hour workweek rate since the beginning of the current one (1) year (twenty-six [26] pay period) 4/11 cycle. If the employee has worked more hours than the forty (40) hour a week average, he or she shall be compensated for those hours at the regular rate. If the employee is under the forty (40) hour a week average, the hours will be Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 38 Packet Pg. 142 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028 31 taken from the employee’s vacation, holiday, or comp time bank and/or deducted at the regular rate from the employee’s last check. If an employee’s assignment changes from the 4/11 schedule or to the 4/11 schedule, his or her over/under rate will be calculated the same as above. Time off, extra shifts worked, and/or the adjustment of holiday, vacation, and/or comp. time banks will be used to resolve any differences between actual hours worked and the forty (40) hour weekly average. Daylight Savings Time/Pacific Standard Time Changes – Personnel on Team 4 and Team 5 will follow these guidelines when working either the spring forward or fall back. Individuals working in the spring who would lose an hour of work due to the change to Daylight Savings Time will report for duty one (1) hour early and work an eleven (11) hour shift at straight time. Individuals working in the fall will work one (1) additional hour (for a total shift of twelve (12) hours) due to the change to Pacific Standard Time. Such employees will put in for one (1) hour of overtime. Nothing in this section prevents an employee from leaving early or using time off to offset the time when staffing allows and approved by the Supervisor or Watch Commander. (8) Maximum Hours Worked - Turn Around Time Sergeants, agents, and officers may work up to a maximum number of 16 hours in a 24- hour period. Any work beyond 16 hours must be approved by a watch commander or member of management and only under exigent circumstances. Any time an employee works 16 hours or more, they must receive an 8-hour break before returning to duty. If the 8-hour break runs into the employees next shift, those hours are considered adjusted hours off. Sergeants, agents, and officers shall not exceed a maximum of one hundred forty (140) hours in a 14 day pay period. Any work beyond one hundred forty (140) hours must be approved by the employee’s Lieutenant and Captain, and should rarely occur only under extreme situations. Sergeants and Lieutenants authorizing overtime in excess of the daily limit (16-hours) and/or the bi-weekly limit (140 hours) shall send a short email to their Lieutenant and Captain explaining the reason for the excess work. It is the employee’s responsibility to monitor their hours and notify the supervisor and/or watch commander of their hours worked when approaching the daily or bi-weekly limits or Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 39 Packet Pg. 143 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028 32 being requested to work overtime. (9) Shift Exchanges Sergeants, agents, and officers may exchange work shifts with another employee of the same rank. Agents and officers may be interchangeable if simply filling the role of an officer on the schedule. Personnel must submit a shift exchange request form to their supervisor and lieutenant. Shift exchanges require a lieutenant’s approval except when short notice makes that impossible. Shift exchanges can only occur for entire shifts, Shift exchange request forms must contain the pay back date for the second half of the shift exchange. Both halves of the exchange must occur in the same 28-day FLSA Cycle (refer to Yearly 4/11 patrol Schedule for FLSA Cycles). Once an employee agrees to an exchange shift, he or she is responsible for that shift. If he or she fails to show up for the shift and/or is sick, the time will be deducted from his or her applicable leave balance to the extent the employee qualifies for such deduction under the applicable leave policy. Failure to show up for a shift may also result in disciplinary action. (10) On-duty workout period and sign up: When staffing allows and with supervisory approval, employees may workout on-duty for a period of up to one (1) hour. The hour shall include the work out, a shower, and dressing time. Specific guidelines and conditions are outlined in the Wellness Program Policy. (11) Upon written request of either party, Section 22(a) of this MOU will reopen and the parties will meet and confer over the issue of the patrol work schedule. Any changes will be by mutual agreement of the City and the Association. (b) Traffic Team Sworn members of the Traffic Team shall work a ten-hour (10) day, four (4) day workweek schedule. Traffic Team officers/agents may be assigned as part of minimum staffing at the discretion of management. Effective July 1, 2008, the Take Home Motor Program will be discontinued. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 40 Packet Pg. 144 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028 33 On a one time basis, employees assigned to motors who are in paid status the first full pay period after Council adoption of this MOU, will receive one time non PERSable stipend representing 2.5% of base salary of the employee’s classification minus applicable state and federal taxes. (c) Special Operation Sergeant/Crime Suppression Team The Special Operations Sergeant and team members shall generally work a ten (10) hour day, four (4) day workweek schedule. Given the nature of the team’s assignment, it is anticipated and expected that their schedules should be flexible and adapt to organizational needs. (d) ISD and Other Sworn Classifications All sworn personnel assigned to ISD, Staff Assistant, Personnel and Training and Community Policing shall work a ten (10) hour day, four-day work week schedule. (1) Work Schedule The ten hours shall generally be worked between the hours of 0700 and 1900, with specific schedules subject to approval by appropriate supervisors. The ten (10) -hour work schedule shall be worked within a period of ten hours, with a working lunch period not to exceed thirty (30) minutes. As an alternative, with Management approval, the ten-hour work schedule may be worked within eleven hours, with a one (1) hour unpaid lunch break. Changing alternatives will require prior approval by Management. (2) Work Week For ISD personnel, one-half of the Division will work Monday through Thursday, while the other half will work Tuesday through Friday. All other sworn personnel covered under Section 23 (b) & (c) will also work either Monday through Thursday, or Tuesday through Friday. (3) Late Detective Shift Two detectives will be assigned on a rotational basis to the late shift from 1200 to 2200 to provide evening coverage. Assignment to the late detective shift, where possible, will be by advanced sign up with each detective selecting two weeks each quarter according to a protocol determined by seniority, needs of the division and needs of the employee. Generally, there will be one detective from each half of the division working the late detective shift during each week. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 41 Packet Pg. 145 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028 34 (e) Forty-hour Training Schedule For all sworn employees who attend training that is four (4) or five (5) days in duration (a week), their schedules will be adjusted from the normal work week. Employees will not receive overtime during scheduled training as described here unless it exceeds their normal forty (40) or forty-four (44) hour workweek. Schedule adjustments will be documented in the notes section when making the timekeeping system entries. Section 23. Overtime Pay and Compensatory Time Off (a) Overtime pay shall be provided at the rate of time and one-half of the employee's regular rate, including night shift differential, working out of classification pay, and specialty assignment premium pay as defined under Section 7, 8 and 10. (b) Compensatory time off, which is approved by management in-lieu of overtime payment on a staffing available basis, will be taken at the rate of 1-1/2 hours for every hour of credited overtime. In the event compensatory time off is used as the method of compensating for overtime, the time off will be taken prior to the end of the quarter in which it is earned except as provided herein. All compensatory time balances over 80 hours shall be paid at the end of each quarter (i.e., employee to carry over 80 hours). During the final calendar year quarter only, employees have the option to: (1) Employees who have vacation accrual balances of less than two times their annual accrual rate, less 80 hours, may request in writing prior to the payroll deadline to convert up to 80 hours of unused compensatory time to vacation per calendar year, to be transferred in the first pay period of the calendar year. (2) Employees may cash out their entire compensatory balance but must make this request before payroll deadline. (3) Employees may elect to have their compensatory time cashout transferred to an employee’s deferred compensation plan, but must make this request before payroll’s deadline. (c) Employees called out to perform work, attend meetings or required training shall be compensated for at least three hours pay for each occurrence at the appropriate overtime rate. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 42 Packet Pg. 146 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028 35 Section 24. Overtime Sign-Up (a) Planned Overtime Planned overtime includes patrol staffing, special events, traffic control functions or any other overtime needs which can be identified prior to the 20th day of the preceding month. On or about the 20th of each month, watch commanders will post a list of dates/shifts requiring overtime for the next month. Officers, Agents, and Sergeants will be given a reasonable period of time to sign up for the available overtime assignments. On or about the 25th of the month, planned overtime will be filled from the sign up list using the rotational overtime call out list. Agents may place themselves on the sign up list for supervisor overtime, however will only be considered if no sergeant requests the shift. Overtime that isn’t filled during the planned overtime process may be filled at management’s discretion. Employees assigned to a fixed work schedule such as ISD, P&T, and Staff Assistant may adjust their work schedule with their manager’s approval in order to work a planned patrol overtime assignment. This schedule adjustment must be completed within the same work week as the planned overtime assignment. Schedule adjustments will normally be approved unless there is a conflict with a previously scheduled activity within the work unit or the schedule adjustment would be disruptive to the operation of the unit. Employees bidding for planned overtime requiring a shift adjustment must make a notation next to the assignment indicating a shift adjustment would be necessary. Only one overtime shift requiring a shift adjustment can be worked per work week. (b) Unplanned Overtime. Unplanned overtime is overtime that wasn’t identified prior to the 20th of the preceding month. Unplanned overtime will be filled by the following procedures. 1) The Watch Commander or Supervisor may request an employee extend their shift or come in early. If a volunteer cannot be identified to hold over or come in early, the rotational overtime list will be used. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 43 Packet Pg. 147 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028 36 2) Employees interested in working unplanned overtime will be placed on a rotational overtime list in order of seniority. When an overtime shift is available, a manager or supervisor will call the next person on the list. If that person declines the opportunity, is not available, is already working, or takes the overtime, he/she will be placed at the bottom of the list. The lists will be continually updated in order to rotate the names. There will be separate lists for sergeants and officers/agents for unplanned overtime. A separate supervisory list will be maintained for agents interested in working supervisory overtime. Agents will be offered supervisory overtime positions only if no sergeants have accepted the opportunity. 3) If the watch commander or supervisor is unable to fill overtime through any of these procedures, he or she may order an individual to extend their shift, come in early, or come in on a day off. A log on those required to work mandatory overtime will be kept in the overtime book. Mandatory overtime should be rotated in order of reverse seniority. c) Overtime Minimum. With regard to both planned and unplanned patrol team overtime, there is no minimum number of hours. Planned overtime postings and unplanned overtime will be offered for the actual number of hours needed. If small blocks of overtime aren’t filled by on-duty personnel adding them to an existing shift, managers may apply a 6-hour minimum to a shift for personnel coming in on a day off. (d) These overtime procedures may be reviewed and/or modified at the mutual agreement of both management and PAPOA. Section 25. Jury Duty No employee shall be required to work a combination of jury duty and work time to exceed 12 hours during a 24-hour period. The period shall commence at the required time of appearance for jury duty. Jury duty is defined as the time between required time of appearance and dismissal. Work time excused as a result of jury duty will be compensated at the regular rate of pay. Section 26. Vacation Accrual Vacation will be accrued when an employee is in pay status and will be credited on a bi-weekly basis. Such accrual and credit shall 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: Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 44 Packet Pg. 148 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028 37 (a) Less than four (4) years - For employees completing less than four years continuous service; (8) Shifts vacation leave per year. (b) Four, but less than nine years - For employees completing four, but not more than nine (9) years continuous service; 12 Shifts vacation leave per year. (c) Nine (9), but less than fourteen (14) years - For employees completing nine (9), but not more than fourteen (14) years continuous service; (16) Shifts vacation per year. (d) Fourteen (14), but less than nineteen (19) years - For employees completing fourteen (14), but not more than nineteen (19) years continuous service; (18) Shifts vacation leave per year. (e) Nineteen (19) or more years - For employees completing nineteen (19) or more years continuous service; (20) Shifts vacation leave per year. Example: An employee with less than four (4) years working a 4/10 Schedule will receive eight (8) Shifts or eighty (80) hours of vacation. The same employee working the 4/11 Schedule will receive eight (8) Shifts or eighty-eight (88) hours of vacation. At the time of the initial appointment, or to address an identified retention issue, the City may credit an employe for prior experience with a POST 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 27. Use of Vacation (a) When to be taken. The time at which an employee may use his/her accrued vacation leave and the amount to be taken at any one time shall be determined by the department head with particular regard for the needs of the City, but insofar as possible, considering the wishes of the employee. (b) Limitation on use. Employees may not use more than their annual rate of accrual in any calendar year period, provided, however, that a department head my grant exceptions to this limitation. (c) Waiting period. Employees shall complete six months continuous service before using accrued vacation leave. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 45 Packet Pg. 149 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028 38 (d) Double compensation prohibited. Employees shall not work for the City during their vacation. (e) Vacation splitting. It is the intention of the City that vacation be taken in units of one week; however, with the approval of the department head, an employee may use one week of his/her accrued vacation in any calendar year in units of less than one work week, but in no instance in units of less than one-half of the normal workday or shift. Requests for exception to this procedure must be approved by the City Manager. (f) Vacation Cashout. Once each calendar year an employee may cash out eight or more hours of vacation accrual in excess of 80 hours to a maximum of 120 hours, provided that the employee has taken at least 80 hours as vacation in the previous 12 months. 1. Effective for the 2012 tax year and each subsequent year, to be eligible to cash out vacation, employees must pre-elect the number of vacation hours they will cash out during the following calendar year, up to the maximum of 120 hours, prior to the start of that calendar year. The election will apply only to vacation hours accrued in the next tax year and eligible for cash out. 2. 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 provided by the City. 3. Employees who do not pre-designate or decline a cash out amount by the annual deadline established by the City 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. 4. Employees who pre-designate cash out amounts may request a cash out at any time in the designated tax year by submitting a cash out form to payroll. Payroll will complete the cash out upon request, provided the requested cash out amount has accrued and is consistent with the amount the employee predesignated. 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. 5. For employees who have not requested payment of the elected cash out amount by November 1 of each year, Payroll will automatically cash out the pre-designated amount in a paycheck issued on or after the payroll date including November 1. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 46 Packet Pg. 150 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028 39 Section 28. Vacation Pay at Termination Employees leaving the municipal service with accrued vacation leave shall be paid the amounts of accrued vacation to the date of termination. Payments for accrued vacation shall be at the employee's current rate of pay. Section 29. 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 30. Effect of Extended Military Leave An employee who interrupts his service because of an extended military leave shall be compensated for accrued vacation at the time the leave becomes effective. Section 31. Sick Leave (a) Statement of Policy. Sick leave shall be allowed and used only in case of actual personal sickness or disability, medical or dental treatment, or as authorized in Subsection 33 (e), personal business chargeable to sick leave. Sick leave may be used for illness in the immediate family (spouse, child, parent, parent-in-law, brother, sister, registered domestic partner, or close relative residing in the household of the employee). (b) Eligibility. Regular and part-time employees shall be eligible to accrue and use sick leave. (c) Accrual. Sick leave shall be accrued bi-weekly provided the employee has been in a pay status for 50 percent or more of a bi-weekly pay period. Sick leave shall be accrued at the rate of 3.7 hours per bi-weekly pay period. (d) Accumulation. Accrued sick leave may be accumulated without limit, except as provided in Section 31(h). (e) Use. Sick leave may be used as needed and approved, to the point of depletion, at which time the employee will no longer receive pay for sick leave. A new employee may, if necessary, use up to forty-eight hours or shift equivalent of sick leave at any time during the Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 47 Packet Pg. 151 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028 40 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 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 one hour after 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 if there is reasonable evidence that sick leave abuse has occurred. Sick leave shall not be granted unless such report or advance accounting has been made, provided, however, that the department head may grant exception to this policy where the circumstances warrant. Documentation may also be required if there is a reasonable basis to believe that the employee may not be medically fit to return to work. (f) Depletion of Sick Leave Benefits. Upon depletion of sick leave or the beginning of the period to be covered by payments under the long-term disability group insurance coverage, whichever comes first, an employee may be granted a medical leave of absence without pay for a period not exceeding sixty days. If the employee is unable to return to work at the end of this period, he/she must request further medical leave which will be subject to the approval of the City Manager. If further leave is granted, the employee must notify the City of intent to return to work every thirty days. If further leave is not granted, the employee's service with the City shall be considered terminated. (g) Forfeiture Upon Termination. Employees leaving the municipal service shall forfeit all accumulated sick leave, except as otherwise provided by law and Subsection 32(h). 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. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 48 Packet Pg. 152 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028 41 (h) Payment for Accumulated Sick Leave. Employees hired before August 1, 1986 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. For all employees entering the service of the City prior to March 2, 1983, full sick leave accrual will be paid in the event of termination due to disability. For all employees hired after August 1, 1986, sick leave accrual accumulation shall be limited to 1,000 hours with no payoff provision for unused balance at termination. (i) Sick Leave Re-opener. Upon written request of either party, the parties agree to meet to confer over the issue of sick leave incentive, including but not limited to: (1) sick leave payout for employees hired after August 1, 1986 and (2) converting to a paid time off policy in lieu of both vacation and sick leave. Any changes will be by mutual agreement of the City and the Association. (j) Personal Business Leave Chargeable to Sick Leave. Up to 2 Shifts (20-Hours for 4/10 employees and 22-Hours for 4/11 employees) per year of personal business leave may be chargeable to sick leave. Time off under this provision is subject to management scheduling approval. (k) Return to Work or Continue Work With Limited/Alternative Duty. In cases of non-work-related injury, illness or pregnancy, an employee, upon approval of the department head, City Risk Manager and the employee's doctor, may elect to return to work or continue work with doctor-approved limited or alternative duty. Approval for such limited/alternative 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 locations and may be subject to the reasonable availability of limited duty assignments. The City doctor may be consulted in determining work limitations. Any assignment to a limited/alternative duty will be on a temporary basis. The provisions of this section are not intended to create any permanent light/alternative duty assignments. Any assignment to a limited/alternative assignment shall not displace any other employee without consent of all parties, including the Association. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 49 Packet Pg. 153 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028 42 Section 32. Leaves of Absence Without Pay (a) Disability. Leaves of absence without pay may be granted in cases of disability not covered by sick leave. Pregnancy will be considered as any other disability. Leaves of absence for disability are subject to physicians' verification including diagnosis and medical work restriction. (b) Other leaves. Leaves of absence without pay 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. (c) 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. (d) 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. (e) 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. (f) 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. (g) 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 34 (b), (c) , (d) and (e). (h) Military leave of absence. State and federal law shall govern the granting of military leaves of absence and the rights of employees returning from such absence. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 50 Packet Pg. 154 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028 43 Section 33. Leave of Absence With Pay The City Manager may grant a regular employee under his/her control a leave of absence with pay for a period not exceeding thirty calendar days for reasons he/she deems adequate and in the best interest of the City. The City Council may grant a regular employee a leave of absence with pay for a period not to exceed one year for reasons the Council considers adequate and in the best interest of the City. (a) Subpoenas; leave of absence. Regular employees who are subpoenaed to appear as witnesses in behalf of the State of California or any of its agencies may be granted leaves of absence with pay from their assigned duties until released. The employee shall remit all fees received for such appearances to the City within thirty days from the termination of his or her services. Compensation for mileage or subsistence allowance shall not be considered as a fee and shall be retained by the employee. (b) Employee's time off to vote. 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. (c) Leave of absence; death in immediate family. Leave of absence with pay of three days shall be granted an employee by the head of his or 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, step-son, son-in-law daughter, step-daughter, daughter-in-law, father, step-father, father-in-law, mother, step-mother, mother-in-law, brother, step-brother, brother-in-law, sister, step-sister, sister-in-law, grandmother, grandmother-in-law, grandfather, grandfather-in-law, grandchildren, aunt, uncle, niece, nephew, 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 three days shall be subject to the approval of the City Manager. Approval of additional leave will be based on the circumstances of each request with consideration given to the employee’s need for additional time off. (d) Jury duty; leave of absence. Employees required to report for jury duty shall be granted a leave of absence with pay from their assigned duties until released by the court, provided the employee remits to the City all fees received for such duties other than mileage or subsistence allowances within thirty days from the termination of his/her jury service. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 51 Packet Pg. 155 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028 44 Section 34. Reduction in Force In the event of reductions in force, they shall be accomplished wherever possible through attrition. If the work force is reduced within the bargaining unit for reasons of change in duties or organization, abolition of position, shortage of work or funds, or completion of work, employees with the shortest length of service will be laid off first so long as employees retained are fully qualified, trained and capable of performing remaining work. Length of service for the purpose of this article will be based on total City service in a regular classification or classifications. Employees laid off due to the above reasons will be given written notice at least thirty days prior to the reduction in force. A copy of such notice will be given to the Association. Section 35. Agents The number of Agent positions shall be governed by the August 12, 1981, Arbitration Award. Section 36. Commute Incentives and Parking in Civic Center Garage Commute Incentives-- Represented employees who qualify may voluntarily elect one of the following commute incentives: Public Transit. The City will provide monthly Commuter Checks worth the value of: $40 for employees traveling three or more zones on Caltrain; $40 for employees using the Dumbarton Express, BART, the ACE train, or a commuter highway vehicle; $35 for employees traveling less than three zones on Caltrain; $35 for employees using VTA and other buses. These vouchers may be used toward the purchase of a monthly transit pass. Carpool. The City will provide carpool vouchers worth the value of $30 per month to each eligible employee in a carpool with two or more people. These vouchers may be used at designated service stations toward the purchase of fuel and other vehicle-related expenses. Vanpool Program. The City will provide Commuter Checks worth the value up to $60 to each employee voluntarily participating in the Vanpool Program. These vouchers may be used toward payment of the monthly cost. Employees must fulfill the basic requirements of the Employee Commute Alternatives Program to qualify. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 52 Packet Pg. 156 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028 45 Bicycle. The City will provide bicycle vouchers worth the value of $20 per month to eligible employees who ride a bicycle to work. These vouchers may be used at designated bicycle shops for related bicycle equipment and expenses. Walk. The City will provide walker vouchers worth the value of $20 per month to eligible employees who walk to work. These vouchers may be used at designated stores for expenses related to walking such as footwear and related accessories. Parking in the Civic Center Garage--Employees assigned to Civic Center and adjacent work locations will be provided with a Civic Center Garage parking permit. New employees hired after June 30, 1994 may initially receive a parking permit for another downtown lot, subject to the availability of space at the Civic Center Garage. Section 37. Disciplinary Action and Unsatisfactory Work or Conduct (a) Except as provided in Section 6 (Probationary Period) of this agreement, no employee shall be disciplined without just cause. For the purpose of this section, "discipline" shall be deemed to include discharge, demotion, reduction in salary, written reprimand, disciplinary probation and suspension. Discipline shall be deemed not to include verbal reprimands or reductions in force. (b) Non-probationary employees whose work or conduct is unsatisfactory but not sufficiently deficient to warrant discipline, demotion, or discharge will be given a written notification of unsatisfactory work or conduct and an opportunity to improve. Failure to correct deficiencies and improve to meet standards may result in discipline, demotion or discharge. (c) Notice of disciplinary action must be in writing and served on the employee in person or by registered mail prior to the disciplinary action becoming effective. However, in extreme situations where there is reasonable cause, the employee may be removed from duty immediately with pay pending such disciplinary action. The notice must be filed on a timely basis with the Human Resources Department and included in the employee's personnel file. The notice of disciplinary action shall include: (1) Statement of the nature of the disciplinary action; (2) Effective date of the action; (3) Statement of the cause thereof; Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 53 Packet Pg. 157 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028 46 (4) Statement in ordinary and concise language of the art or the omissions upon which the causes are based; (5) Copies of any documents or other items of evidence upon which the disciplinary action was fully or in part based; (6) Statement advising the employee of his/her right to appeal from such action, and the right to Association representation. (d) If the disciplinary action consists of suspension, any suspension time previously given shall be credited to the final disciplinary action. (e) Subject to state law requirements, employees may request that disciplinary actions be sealed according to the following schedule: (1) Written reprimands with no recurrence after one (1) year. (2) Disciplinary probation after three (3) years from the implementation of such probation, if no other disciplinary action has occurred during that period. (3) Suspensions less than three (3) days without recurrence, after two (2) years. (4) Suspensions more than three (3) days but less than six (6) days, after three (3) years. (5) Suspensions of six (6) days or more, after five (5) years. For the purpose of these sections, the time starts from the time of action following the Skelly process (day discipline is imposed). Written requests for the sealing of disciplinary actions should be directed to the Personnel and Training Coordinator. Sealing shall include all memos, letters, correspondence, complaint forms, and any other material pertaining to the disciplinary action that has been placed in the employee's personnel file. Sealing shall not include the sealing of any material related to criminal offenses for which the employee was charged except in concurrence with the sealing or expungement of criminal Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 54 Packet Pg. 158 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028 47 charges by a court of competent jurisdiction or in the event of a complete exoneration of the employee by the judicial system. The City Human Resources Department shall be notified in all cases where sealing of disciplinary action is taken. Human Resources Department copies of the disciplinary actions will be disposed of in a manner consistent with the Police Department's action. The sealed action shall not be held to discriminate against the employee in any subsequent disciplinary action, or in the event of promotion, merit step raise, transfer, request for educational leave, modification of duties, vacation selection, application for other employment, or against any other action the employee may take for his or her personal improvement. Once sealed, the file shall not be opened unless the employee requests such unsealing and then only for examination by the person or persons whom the employee specifies or at the discretion of the Chief of Police, who in the absence of a demonstrable emergency shall notify the employee a minimum of 48 hours before the opening of the sealed file and the reason for opening. In the event the employee cannot be notified in advance, notification must be made on the employee's first duty day after the sealed file is opened. Section 38. Grievance Procedure (a) The City and the Association recognize that early settlement of grievances is essential to sound employee-employer relations. The parties seek to establish a mutually satisfactory method for the settlement of employee grievances, or Association grievances, as provided for below. In presenting a grievance, the aggrieved and/or his or her representative is assured freedom from restraint, interference, coercion, discrimination or reprisal. (b) Definition. A Grievance is: (1) An unresolved complaint or dispute regarding the application or interpretation of Departmental rules, regulations, policies, and procedures, relating to terms conditions of employment, wages or fringe benefits; or this Memorandum of Agreement, . (2) An appeal from a disciplinary action of any kind against an employee covered by this Memorandum of Agreement. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 55 Packet Pg. 159 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028 48 (c) Access to the Grievance Procedure. Except as provided in Section 6, Probationary Period, all employees represented by the Association may file and process a grievance. Such aggrieved employees may be represented by the Association or may represent themselves in preparing and presenting their grievance at any level of review. The Association may file a grievance when an Association right not directly related to an individual employee becomes subject to dispute. (d) Conduct of Grievance Procedure. (1) The time limits specified in this Article may be extended by mutual agreement in writing of the aggrieved employee or the Association and the reviewer concerned. (2) Should a decision not be rendered within a stipulated time limit, the aggrieved employee may immediately appeal to the next step. (3) The grievance may be considered settled if the decision of any step is not appealed within the specified time limit. (4) If appropriate, the aggrieved employee or the Association and Management may mutually agree to waive any step of the grievance procedure. (5) Written grievances shall be submitted on forms provided by the City or on forms which are mutually agreeable to the City and the Association. (6) 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. Step I. The aggrieved employee will first attempt to resolve the grievance through informal discussions with his or her immediate supervisor by the end of the tenth working day following the discovery of or the incident upon which the grievance is based. Every attempt will be made to settle the issue at this level. (Note: For purposes of time limits, the working days are considered to be Monday through Friday, exclusive of City holidays.) Step II. If the grievance is not resolved through the informal discussion, the employee will reduce the grievance to writing and submit copies to the division head or equivalent level Management employee as designated by Management as appropriate within ten working days of the discussion with the immediate supervisor. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 56 Packet Pg. 160 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028 49 The division head or equivalent level Management employee shall have ten working days from the receipt of a written grievance to review the matter and prepare a written statement. Step III. If the grievance is not resolved at Step II, the aggrieved employee may appeal to his or her department head in writing within ten working days of the receipt of the division head's response. The department head shall have ten working days from the receipt of a written grievance to review the matter and convey his or her decision by written statement. Step IV. 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 grievance arbitration. 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 ten working days of receipt of the Step III response. If the aggrieved employee elects final and binding resolution by the City Manager, the City Manager will choose the methods he or she considers appropriate to review and settle the grievance. The City Manager shall render a written decision to all parties directly involved within ten working days after receiving the employee's appeal. If the aggrieved employee elects final and binding arbitration in accordance with this provision, the parties shall mutually select an arbitrator. In the event the parties cannot agree on an arbitrator, they shall mutually request a panel of five arbitrators from the California State Conciliation Service or from the American Arbitration Association if either party objects to the State Conciliation Service, and select an arbitrator by the alternate strike method. The arbitrator shall have jurisdiction and authority only to interpret, apply, or determine compliance with the provisions of this Memorandum of Agreement and such Merit System Rules, regulations, policies, procedures, City ordinances, resolutions relating to terms or conditions of employment, wages or fringe benefits, as may hereafter be in effect in the City insofar as may be necessary to the determination of grievances appealed to the arbitrator. The arbitrator shall be without power to make any decision: (1) Regarding matters of interest. (2) Contrary to, or inconsistent with or modifying in any way, the terms of this Memorandum of Agreement. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 57 Packet Pg. 161 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028 50 (3) Granting any wage increases or decreases. The arbitrator shall be without authority to require the City to delegate or relinquish any powers which by State law or City Charter the City cannot delegate or relinquish. Where either party seeks arbitration and the other party claims the matter is not subject to the arbitration provisions of this Memorandum of Agreement, the issue of arbitrability shall first be decided by the arbitrator using the standards and criteria set forth in this section and without regard to the merits of the grievance. If the issue is held to be arbitrable, the arbitration proceedings will be recessed for up to five working days during which the parties shall attempt to resolve the grievance. If no resolution is reached, the arbitrator will resume the hearing and hear and resolve the issue on the merits. Copies of the arbitrator's decision shall be submitted to the City, the aggrieved employee and the Union. All direct costs emanating from the arbitration procedure shall be shared equally by the City and the aggrieved employee or the Association. Section 39. Bulletin Boards and Telephones The Association shall have access to existing bulletin boards in Unit employee work areas and to the City e-mail and voice mail systems for the purpose of posting notices or announcements including notices of social events, recreational events, membership meetings, results of elections and reports on minutes of Association meetings. Any other material must have prior approval of the Police Chief. Action on approval will be taken within 24 hours of submission. Emails sent for Association business shall be copied to the Human Resources Director at distribution. City telephones may be used for Association business so long as there is no disruption of work and all toll or message unit calls are charged to the Association credit card. Section 40. Access to Association Representatives Representatives of the Association are authorized access to City work locations for the purpose of conducting business within the scope of representation, provided that no disruption of work is involved and the business transacted is other than recruiting of members or collecting of dues, and the representative must notify the Human Resources Department office prior to entering the work location. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 58 Packet Pg. 162 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028 51 Section 41. Meeting Places The Association shall have the right to reserve City meeting and conference rooms for use during non-working hours. Such meeting places will be made available in conformity with City's regulations and subject to the limitations of prior commitment. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 59 Packet Pg. 163 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028 52 Section 42. Voluntary Leave Program: (a) The City of Palo Alto has established a Peace Officer Voluntary Leave Program to provide members of the Palo Alto Peace Officers’ Association, Incorporated (hereafter referred to as “PAPOA”) the opportunity to donate their accrued vacation time to assist fellow members of PAPOA 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 Police Officer 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 4. In whole hour increments of at least (4) hours, with 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) or Family Medical Leave Act (FMLA), the employee will be eligible for continuation of medical and other available benefits during that 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. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 60 Packet Pg. 164 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028 53 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. PAPOA 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). (b) The City reserves the right to modify or terminate this program at any time. (c) 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. (d) Nothing in this section precludes an Association member from utilizing or participating in the City’s Voluntary Employee Leave Sharing Program. Section 43. Utilization of Reserves for Field Services Division Events (a) Management will determine staffing levels for each event. (b) Events for which the department receives reimbursement will be staffed by regular officers, except that in the event a sufficient number of regular officers are unavailable, reserve officers may be used. (c) Reserves may be used for the May Day Parade, Stanford University or NFL football games, park patrol, Black and White Ball, and supplemental patrol staffing in excess of levels set forth in the Field Services Staffing Levels general order. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 61 Packet Pg. 165 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028 54 (d) Events, for which the department does not receive reimbursement, may be staffed in the ratio of two reserve officers to one regular officer. Reserves may be used in any situation where an insufficient number of regular officers are available. (e) Staffing for the University Avenue Street Fair will consist of no less than a 1:1 ratio of regular officers to reserve officers. Section 44. Overtime Meals for Investigative Services Division Effective July 1, 1996, for ISD personnel who are working authorized investigative overtime extending for a period either four hours after the conclusion of their normal work shift, or four hours prior to the beginning of the normal work shift, shall be entitled to reimbursement for the appropriate meal at the City per diem rate. The meal reimbursement shall also apply for any authorized investigative overtime on a weekend or holiday in excess of four hours. Section 45. Hiring Incentives Qualified lateral officers, who have a current basic or higher POST certificate, hired during the term of this agreement may upon City Manager approval: (a) Accrue vacation leave at a beginning rate equal to the rate they were earning at their previous employer, subject to a maximum of 160 hours per year with progression to higher accrual rates as provided in Section 27, Vacation Accrual; and (b) Begin their employment with the City with a sick leave balance not to exceed 96 hours. (c) Receive a hiring incentive. Any future hiring incentive program will be discussed with the Association prior to implementation and the Department will reasonably consider any recommendations from the Association regarding internal referral programs to be utilized in conjunction with that program. (d) Laterals returning to the Palo Alto Police Department must have been separated from the City for a minimum of 2 years to be eligible for this incentive program. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 62 Packet Pg. 166 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028 55 (e) Based on years of service, level of experience, and educational achievement, experienced lateral officers may receive a starting salary at any appropriate level within the “Police Officer” classification as deemed appropriate by the City Manager on recommendation of the Chief of Police. Section 46. Full Understanding (a) The Memorandum of Agreement contains the full and entire understanding of the parties regarding the matters set forth herein. (b) 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. (c) 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. (d) 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 Supreme Court or U. S. Supreme Court ruling, such invalidation of such part or portion of this Memorandum of Agreement shall not invalidate the remaining portions hereof, and they shall remain in full force and effect, insofar as such remaining portions are severable. (e) Prior Agreements & Side Letters: Upon Implementation of this agreement, all prior agreements and side letters become null and void. In any instance where internal department polices and/or practices are in conflict with this agreement, this agreement shall take precedence. (f) 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. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 63 Packet Pg. 167 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028 56 Section 47. Printed Agreement The City will provide copies of the Memorandum of Agreement resulting from these negotiations in booklet form to all represented employees. Section 48. Duration Except as expressly and specifically provided otherwise herein for the retroactive application of a specific provision(s), this Memorandum of Agreement shall become effective upon ratification by both parties hereto and remain in effect through June 30, 2028. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 64 Packet Pg. 168 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028 57 EXECUTED: FOR: FOR: PALO ALTO PEACE OFFICERS' CITY OF PALO ALTO ASSOCIATION Peter Hoffmann, Rains Lucia Stern, PC Allyson Hauck, Counsel Joshua Waldorph Ann-Marie Manley, Human Resources Technician Yolanda Franco-Clausen Sandra Blanch, Human Resources Director Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 65 Packet Pg. 169 of 627 Palo Alto Peace Officers' Association Memorandum of Agreement July 1, 2025 – June 30, 2028April 10, 2023-June 30, 2025 Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 66 Packet Pg. 170 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028April 10, 2023– June 30, 2025 ii TABLE OF CONTENTS PREAMBLE 1 Section 1. Recognition 1 Section 2. No Discrimination 1 Section 3. Association Security 2 Section 4. Payroll Deduction 2 Section 5. No Strikes 2 Section 6. Probationary Period 3 Section 7. Salary Provisions 4 Section 8. Night Shift Differential 9 Section 9. Paid Holidays 9 Section 10. Working Out of Class Pay 10 Section 11. Retention/Career Incentive Program (Special Compensation) 11 Section 12. Dependent Care Assistance Program 11 Section 13. Court Pay 12 Section 14. Health Plans 13 Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 67 Packet Pg. 171 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028April 10, 2023– June 30, 2025 iii Section 15. Dental Benefits 16 Section 16. Life Insurance Benefits 16 Section 17. Effective date of Coverage for New Employees 16 Section 18. Retirement Benefits 17 Section 19. Retirement Medical Plan 19 Section 20. Psychological Counseling Program 20 Section 21. Uniforms 21 Section 22. Work Schedule 21 Section 23. Overtime Pay and Compensatory Time Off 35 Section 24. Overtime Sign-Up 36 Section 25. Jury Duty 37 Section 26. Vacation Accrual 37 Section 27. Use of Vacation 38 Section 28. Vacation Pay at Termination 40 Section 29. Vacation Benefits for Deceased Employees 40 Section 30. Effect of Extended Military Leave 40 Section 31. Sick Leave 40 Section 32. Leaves of Absence Without Pay 43 Section 33. Leave of Absence With Pay 44 Section 34. Reduction in Force 45 Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 68 Packet Pg. 172 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028April 10, 2023– June 30, 2025 iv Section 35. Agents 45 Section 36. Commute Incentives and Parking in Civic Center Garage 45 Section 37. Disciplinary Action and Unsatisfactory Work or Conduct 46 Section 38. Grievance Procedure 48 Section 39. Bulletin Boards and Telephones 51 Section 40. Access to Association Representatives 51 Section 41. Meeting Places 52 Section 42. Voluntary Leave Program: 53 Section 43. Utilization of Reserves for Field Services Division Events 54 Section 44. Overtime Meals for Investigative Services Division 55 Section 45. Hiring Incentives 55 Section 46. Full Understanding 56 Section 47. Printed Agreement 57 Section 48. Duration 57 Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 69 Packet Pg. 173 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028April 10, 2023 – June 30, 2025 1 MEMORANDUM OF AGREEMENT CITY OF PALO ALTO and PALO ALTO PEACE OFFICERS' ASSOCIATION April 10, 2022 - June 30, 2025July 1, 2025 – June 30, 2028 PREAMBLE This Memorandum of Agreement is pursuant to and subject to Sections 3500-3510 of the Government Code of the State of California, the Charter of the City of Palo Alto, and the City of Palo Alto Merit System Rules and Regulations. (This Memorandum of Agreement made and entered into at Palo Alto, California, by and between the City of Palo Alto, a municipal corporation (hereinafter referred to as "City") and the Palo Alto Peace Officers' Association, Incorporated, a California corporation (hereinafter referred to as "Association"), is intended to define agreements reached during the meet and confer process concerning wages, hours, working conditions, and other terms and conditions of employment for the represented group of employees. Section 1. Recognition The City recognizes the Association as the exclusive representative of an employee group consisting solely of Police Officer Trainees, Police Officers, Police Agents, and Police Sergeants who are regularly employed by the City and others who might be amended into the representation unit from time to time under existing law and the Merit System Rules and Regulations. Section 2. No Discrimination (a) The Association and the City hereby agree that there shall be no discrimination because of race, color, age, disability, sex, sexual orientation, national origin, political or religious affiliation, or any other protected classification as provided by applicable local, state or federal law. 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. (b) 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. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 70 Packet Pg. 174 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028April 10, 2023 – June 30, 2025 2 Section 3. Association Security (a) When a person is hired in any of the covered job classifications, the City shall notify that person that the Association is the recognized bargaining representative for the employee in said Unit and give the employee a current copy of the Memorandum of Agreement. (b) If there is no disruption of work, members of the Association Board of Directors may use a reasonable amount of on-duty time without loss of pay to attend to Association business specifically related to representation of employees. Such release time must be cleared in advance by the appropriate division manager who is a member of management. For purposes of this section, representation shall include: (i) Meetings with represented employees or management related to a grievance or disciplinary action, including investigation and preparation time. (ii) A meeting with management related to benefits, working conditions or other terms and conditions of employment. Section 4. Payroll Deduction The City shall deduct Association membership dues and any other mutually agreed upon payroll deduction from the bi-weekly pay of member employees. The dues deduction must be authorized in writing by the employee on an authorization card acceptable to the City and the Association. The City shall remit the deducted dues to the Association as soon as possible after deduction. Section 5. No Strikes The Association, its representatives, or members, shall not engage in or cause, instigate, encourage, sanction, or condone a strike, withholding of services, concerted abuse of leave of absence provisions, work stoppage or work slowdown of any kind. No employee shall refuse to cross any picket line in the conduct of Police Department business, nor shall the Association, its representatives, or members discriminate in any way toward anyone who refuses to participate in a strike, or any of the job actions cited above. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 71 Packet Pg. 175 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028April 10, 2023 – June 30, 2025 3 Section 6. Probationary Period (a) The probationary period for new employees entering the classifications of Police Academy Trainee or Police Officer shall end 12 months following the successful completion of Police Academy training. The probationary period for lateral entry positions, where Police Academy training is waived, shall be 12 months. In the event a probationary employee is absent for a period exceeding one-hundred and twenty (120) hours during the probationary period, probation will be extended by an equivalent number of duty hours. (b) 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. (c) During the probationary period a new employee may be terminated at any time by the appointing authority without cause. The existence of cause for termination shall not be arbitrable. Probationary employees shall not be terminated for reasons that violate Section 2. No Discrimination, of this Agreement, or for reasons that are unconstitutional or unlawful. (d) Probationary Period for New Supervisors (1) The probationary period for newly promoted Agents and Sergeants shall end 12 months from the effective date of the promotion, excluding time off due to any unscheduled absence or leave. (2) 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 newly promoted employee to the position and for rejecting any newly promoted probationary employee who in the opinion of management is not suitable to attain permanent status in the newly promoted rank. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 72 Packet Pg. 176 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028April 10, 2023 – June 30, 2025 4 (3) During the 12 month promotional probationary period the newly promoted employee shall be evaluated by his/her direct supervisor on a quarterly basis. (4) Any on-going and/or significant perceived deficiencies in the probationary employee’s work performance or supervisory aptitude shall be promptly communicated to the employee. When appropriate, the employee shall be provided with additional training and given opportunities to demonstrate their performance in response to the training. Such perceived deficiencies, any related training, and performance improvement or lack of response to training shall be documented by the employee’s supervisor and recorded in the employee’s quarterly evaluation for the quarter(s) in which the matter was addressed. (5) During the promotional probationary period, a newly promoted employee may be demoted to their previous rank at any time by the appointing authority if the employee demonstrates a lack of suitability for the newly promoted position. The demotion shall be based upon deficiencies in the performance or aptitude that have been addressed and documented as outlined in subsection (5). The existence of cause for demotion shall not be arbitrable. Promotional probationary employees shall; not be demoted for reasons that violate Section 2 of the Memorandum of Agreement, No Discrimination; or for reasons that are unconstitutional or unlawful. (6) In the event that management elects to demote an employee during his or her probationary period, pursuant to subsection (6), the affected employee may request a hearing with the Chief of Police. The hearing shall be held promptly and prior to the intended effective date of demotion, so as to afford the employee with a meaningful and timely opportunity to respond to the stated reason(s) for demotion. Section 7. Salary Provisions (a) Market Adjustment: Effective the first full pay period including City Council Adoption, salary ranges of all bargaining unit classifications will be increased by three percent (3%) five percent (5.0%), and a 0.75% market adjustment for a total increase of 3.75%, which is sufficient to bring them to the top quartile of market median as determined by the City’s market study. (b) General Salary Increase: Effective the first full pay period following July 1, 20263, salary ranges of all represented classifications will be increased by threefour percent (34.0%) Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 73 Packet Pg. 177 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028April 10, 2023 – June 30, 2025 5 and a 0.5% market adjustment for a total increase of 3.5%. (c) General Salary Increase. Effective the first full pay period folllowing July 1, 20274 salary ranges of all represented classifications will be increased by threefour percent (34.0%.) and 0.5% market adjustment for a total increase of 3.5%. (d) Flexible Compensation: Effective the first full pay period following City Council Adoption of the successor MOA in 2023, and in lieu of an increase to the City contribution towards medical premiums, each represented classification had will have their monthly income increased by $100. (e) Flexible Compensation: Effective the first full pay period following January 1, 2024, and in lieu of an increase to the City contribution towards medical premiums, each represented classification had will have their monthly income increased by an additional $100 (total of $200). (f) Total Compensation and Survey Database. Management and the Union have agreed to a compensation survey database structure. Survey Cities include: Alameda, Berkeley, Concord, Fremont, Hayward, Milpitas, Mountain View, Redwood City, San Leandro, San Mateo, Santa Clara, Vallejo, and Walnut Creek. Compensation Criteria includes: top step salary, maximum longevity, maximum education/POST, uniform allowance, holiday pay, deferred compensation, employee pick up of employer pension costs (Negative EPMC), and maximum City paid benefits (such as a review of 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. (g) Salary Steps & Ranges (Eligibility) New officers attending the basic police academy will be compensated at the “Police Trainee” level. Academy Graduates and Lateral Officers with less than two years experience will be compensated at the “Police Officer” “Step 1” Level or higher. FTO CompletionJr. First Class Exam: Officers become eligible for the first step increase to take the exam anytime after they complete the Field Training Program. However, the pay increase will not become effective until they have successfully completed the test and have been with the department for a year from the academy graduation (Laterals a Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 74 Packet Pg. 178 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028April 10, 2023 – June 30, 2025 6 year from hire date). For employees hired prior to July 1, 2018, the pay increase for Jr. First Class is compensated at the “Police Officer” “Step 4” level (Approximate 5% Increase). For employees hired on or after July 1, 2018, the pay increase for this completion Jr. First Class is one step on the salary schedule (approximate 5% increase), no higher than Step 4. First Class Exam: Officers become eligible to take the exam any time after they have successfully completed the Field Training ProgramJr. First Class Exam. However, the pay increase will not take effect until one year from the date of the first step merit increase, as stated in the above paragraph for the Jr. First Class exam. (Lateral officers’ pay increase may be effective one year from the date of hire) For employees hired prior to July 1, 2018, the pay increase for First Class is compensated at the “Police Officer” “Step 5” Level (Approximate 5% Increase). For employees hired on or after July 1, 2018, the pay increase for First Class is one step on the salary schedule (approximate 5% increase), no higher than Step 5. Effective the first full pay period following adoption of this MOA by City Council, the City will Implement a new step 6 following the same percentage difference as steps 1-5. Employees with one (1) year or more of service with the City of Palo Alto at Step 5 will be moved to Step 6. Effective upon ratification of this Agreement by the City Council, upon promotion to Agent or Sergeant, employees will be eligible for a step increase after one (1) year from the date of promotion so long as they receive a satisfactory performance evaluation. Each twelve (12) months of actual service after the evaluation date, each employee receiving a satisfactory performance evaluation shall receive a merit increase to the next higher step until the top step of the pay range for the job class has been reached. (h) POST Certificate/Incentives Basic Post: Officers become eligible upon completion of their probationary period. The certificate must be obtained within 18 months of hire date. (No Salary Increase) Intermediate POST: Employees that qualify for the Intermediate POST certificate will be compensated at the corresponding salary schedule (e.g., “Police Officer/Inter”), effective the first full pay period after the employee provides proof of submission of the required paperwork to POST (approximate 5% increase). Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 75 Packet Pg. 179 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028April 10, 2023 – June 30, 2025 7 Advanced POST: Employees that qualify for the Advanced POST certificate will be compensated at the corresponding salary schedule (e.g., “Police Officer/Adv”), effective the first full pay period after the employee provides proof of submission of the required paperwork to POST (approximate 2.5% increase). Effective the pay period including July 1, 2026, Advanced POST shall be increased an additional 2.5% for a total of five percent (5%) of base pay. Employees are responsible for contacting Personnel & Training in order to arrange taking tests and application for POST certificates. (i) Special assignment premium pay Effective with the pay period including July 1, 2001, biweekly premium pay for employees assigned to the indicated specialties will be as follows: Field Training Premium: 5% of base pay per pay period. Applies to management-assigned Officers and Agents and Traffic Team members during each pay period in which they provide training to police recruits, Community Service Officers or Level II reserve officers who are working on their Level I certificate. Applies to management-assigned FTO Sergeants during each pay period in which they supervise assigned FTO Officers or Agents who are actively training police recruits, Community Service Officers or Level II reserve officers who are working on their Level I certificate. The parties agree that, for the period beginning the first full pay period following the City Council adoption of the agreement and ending the last full pay period in June 2025, Officers, Agents and Traffic Team members who management designates as Field Training Officers and Sergeants designated as FTO Sergeants will Receive the 5% FTO premium for all pay periods, without regard to whether they are assigned a police recruit during that pay period. The Parties also agree to revisit this section to determine whether to continue this program prior to June 30, 2025. Traffic Premium: 5% of base pay per pay period. Officers, Agents and Sergeants who management assigns to routinely and consistently operate or patrol on a motorcycle. K-9 Program Premium: 5% of base pay per pay period. Effective January 1, 2008, K-9 Officers/Agents shall receive 5% of base pay per pay Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 76 Packet Pg. 180 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028April 10, 2023 – June 30, 2025 8 period to compensate for the time spent by the K-9 Officer/Agent outside regularly scheduled work hours to feed, groom, house, exercise, attend to the medical and dental needs of and otherwise maintain the dog. Detective Premium: 5% of base pay per pay period. Effective upon ratification of this Agreement, Officers, Agents, and Sergeants who management assigns to the Investigation Services Division. Bilingual Premium: 5% of base pay per pay period. Applies to representation unit employees certified by management as proficient in other languages as outlined below. (i) Approved Languages Spanish, Chinese (Mandarin and Cantonese), Japanese, Tagalog, Korean, Vietnamese, Russian, American Sign Language, and such other languages as determined by management. (ii) Proficiency Requirements Officers, Agents, and Sergeants who pass a basic “first responder” proficiency test administered by a professional linguist will be eligible for bilingual pay. This proficiency test will be a one time test to ensure the candidate has the ability to verbally communicate (with the exception of American Sign Language) as a first responder in the selected Language. First responder proficiency will include, but is not limited to, the ability to take basic crime and accident reports; issue a citation and explain the court process; complete a field interview card; give directions; give a Miranda admonition; and generally be able to communicate with a non-English speaking person in need of basic police services. Study material will be provided by the City to all employees to assist in test preparation. (iii) Testing Process In order to best accommodate the wide range of languages, proficiency testing will Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 77 Packet Pg. 181 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028April 10, 2023 – June 30, 2025 9 be conducted by professional linguists outside the Police Department that have been agreed upon by the Association and Management. A basic first responder proficiency exam has been developed based upon the needs of the organization. The City will pay for the initial test for each employee. Employees who do not pass the initial test may retest as many times as necessary. However, subsequent tests will be at the employee’s expense. Section 8. Night Shift Differential (a) Night shift differential shall be paid at the rate of 5% to all FSD personnel for all hours worked between 6:00 p.m. and 8:00 a.m. (b) All employees covered under Section 23(d) working a regular shift between 7:00 a.m. and 7:00 p.m. shall receive 5% night shift premium for hours worked between 7:00 p.m. and 7:00 a.m. Vacation and administrative leave pay for employees who regularly work night shifts shall include appropriate night shift premiums, relating to night shift hours regularly worked. Shift adjustment hours for employees who regularly work the 4-11 work schedule shall include the appropriate night shift premium based on the percentage of usual night shift hours worked to regular hours. Section 9. Paid Holidays (a) All represented employees on leave of absence without pay shall not receive in-lieu holiday accrual during such leave, or any compensation for holidays occurring during such leave. (b) Employees shall not receive paid holidays, but in lieu thereof shall receive 3.462 hours straight time pay each full pay period that they are in paid status, to a maximum payment of ninety (90) hours per year. Effective the first full pay period following City Council adoption of the MOU in 2023, this amount shall be increased to 3.846 hours straight time pay each pay period that they are in paid status, to a maximum payment of one hundred (100) hours per year. Holiday hours will be pro-rated for employees in paid status a portion of a pay period. Hours under this provision will be paid each pay period while in a paid status. Employees working non-field services assignments shall be eligible to use accrued Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 78 Packet Pg. 182 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028April 10, 2023 – June 30, 2025 10 paid leave time balances for any of the following recognized City holidays subject to management scheduling approval: January 1 Third Monday in January Third Monday in February Last Monday in May July 4 First Monday in September Second Monday in October November 11 Thanksgiving Day Day after Thanksgiving Day December 25 Either December 24 or December 31, A Day of Reflection in recognition of a day of the employee’s choosing, including Juneteenth Freedom Day (June 19) or Cesar Chavez/Dolores Huerta Day (March 31) Section 10. Working Out of Class Pay Officers, Agents and Sergeants working out of class for a period of four or more consecutiveshifts) shall be compensated with the following premium pay; Officers and Agents working as an Acting Sergeant: 7% of base pay for all shifts Sergeants working as an Acting Lieutenant: 10% of base pay for all shifts Agents, and Sergeants fulfilling the role of an Acting Sergeant and/or Acting Lieutenant for individual shifts and/or a number of hours within a shift, shall not receive additional compensation. Periodically working in this capacity shall be deemed a basic duty within an employee’s job description. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 79 Packet Pg. 183 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028April 10, 2023 – June 30, 2025 11 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 11. Retention/Career Incentive Program (Special Compensation) (a) Retention/Career Incentive Program On July 1, 2007 the City will initiate a Retention/Career Incentive Program. It is recognized that hiring, training, and retaining qualified law enforcement personnel is becoming increasingly difficult, time consuming, and very expensive. This program is designed to provide greater incentives for hiring new employees, retaining long-term employees, and attracting quality lateral candidates from other law enforcement agencies. This program will provide special compensation in the form of premium pay at various levels as employees reach different career milestones. Both parties acknowledge that in the 2007 negotiations, the cost of the program was partially offset through salary and/or benefit reductions agreed to elsewhere in this Memorandum of Agreement. All employees with more than 10 years of service shall receive special compensation in the form of retention pay at 3% of straight time base pay. All employees with more than 15 years service shall receive special compensation in the form of retention pay at 6% of straight time base pay. Maximum under this provision is 6%. As an incentive to recruit and hire lateral law enforcement personnel from other agencies, the following shall apply. At the Chiefs discretion, up to 5 years of full time law enforcement service may be counted towards the years of service outlined above. Special Compensation/Retention Pay outlined in the Retention/Career Incentive Program shall be deemed PERSable for the purpose of income and retirement however will not be a factor when calculating “MOU” (non-FLSA) overtime compensation. Section 12. Dependent Care Assistance Program and Medical Flexible Spending Accounts. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 80 Packet Pg. 184 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028April 10, 2023 – June 30, 2025 12 The City will provide a Dependent Care Assistance Program (DCAP) and Medical Flexible Spending Account (FSA) for employees according to the provisions of the Federal Economic Recovery Act of 1981, Code Sections 125 and 129. With the exception of matters within the City’s sole control (e.g., establishment of the FSA), all matters related to the FSA shall be excluded from the MOA grievance procedure. Disputes regarding the administration of the plan shall be subject to the dispute resolution procedure provided by the plan document. The FSA will be available to representation unit employees effective January 1, 2019, and remain in effect subject to a reasonable minimum participation level and availability of third-party administrative services at a reasonable cost. Section 13. Court Pay Sworn Police Personnel appearing in court or in an administrative forum in the course and scope of their normal duties will be compensated according to the following: or immediately preceding or following a shift Time and one-half for period before or after scheduled scheduled work day by employees of Team #3 scheduled work day by employees of Team #4 or appearances Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 81 Packet Pg. 185 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028April 10, 2023 – June 30, 2025 13 Section 14. Health Plans (a) PEMHCA Health Plan The first full pay period including Council adoption, the City will increase During the term of this contract, the maximum City contribution towards medical premiums for eligible full time employees per employee category to shall be up to a maximum of the following for any plan: Medical Category Premium Premium Category (inclusive of PEMHCA contribution*) effective first full pay period following ratification and approval:month Employee Only $943.00871 Employee plus one $1,885.001742 Employee Family $2,444.002260 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 Category Premium Total Maximum City Contirbution (inclusive of PEMHCA contribution*) Employee Only $962.00 Employee plus one $1,942.00 Employee Family $2,566.00 Effective January 1, 2028, the City will increase its maximum contribution to medical premiums by four percent (4%). Medical Category Premium Total Maximum City Contirbution (inclusive of PEMHCA contribution*) Employee Only $1,000.00 Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 82 Packet Pg. 186 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028April 10, 2023 – June 30, 2025 14 Employee plus one $2,020.00 Employee Family $2,669.00 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. *PEMHCA minimum changes annually. 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 amount listed in the “Total Maximum City Contribution” columns 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) 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. 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. c) The City will offer vision care coverage for employees and dependents. Coverage is equivalent to $20 deductible Plan A under the Vision Service Plan, with monthly premiums paid by the employer. Dependents will include domestic partners, as defined under Section 14 (c). (c) Active Employee Domestic Partners Active employee domestic partners whose domestic partnership is registered with the State Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 83 Packet Pg. 187 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028April 10, 2023 – June 30, 2025 15 of California 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. 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 a stipend of two hundred eighty four dollars ($284.00) per month toward the cost of an individual health plan. Evidence of premium payment will be required with request for stipend. (d) 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 medical plan, the Employee may choose to waive his/her right to the City of Palo Alto’s medical insurance and receive cash payments in the amount of two hundred 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 ($284.00) per month. To participate in the program the employee and dependents must be eligible for coverage under PEMHCA medical plans, complete a waiver of medical coverage form, and provide proof of eligible alternative medical coverage. 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. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 84 Packet Pg. 188 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028April 10, 2023 – June 30, 2025 16 (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 by only one spouse Section 15. Dental Benefits (a) Level of Benefits: The City will maintain the present level of benefits on the City-sponsored dental program for current employees and their dependents (base dental plan)., except that the maximum benefits per calendar year shall be $2,000 effective in 1988. Dental Coverage shall include composite (tooth colored) fillings for all teeth. (b) The City provides a 50% of reasonable charges, $2,000 lifetime maximum orthodontic benefit for representation unit employees and their dependents. (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. Employees will be responsible for premium payments required to enroll in the “buy-up” dental plan. (c) Dependents will include domestic partner, as defined under Section 14 (c). (d) Dental implants in conjunction with one or more missing natural teeth, and removal of dental implants will be covered as a Major Dental Service at 50% usual, customary and reasonable (UCR). Section 16. Life Insurance Benefits The City will offer employees Basic and Supplemental life insurance plans. The City shall enroll all employees and pay the premium for a Basic life insurance plan equal to the employee’s annual salary. Employees will have the option of enrolling in a Supplemental life insurance plan and will be responsible for paying the premiums required to enroll in the plan. The City agrees to continue the basic life insurance plan as currently in effect for the term of this Memorandum of Agreement. Section 17. Effective date of Coverage for New Employees Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 85 Packet Pg. 189 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028April 10, 2023 – June 30, 2025 17 For newly hired regular employees coverage begins on the first day of the month following date of hire for the health plan, dental plan, vision care plan, and life insurance plans if these benefits are elected. Section 18. Retirement Benefits (a) Safety Pension Group A: “3% at 50” Safety Retirement The City will continue the present benefits under the Public Employees’ Retirement System (PERS) “3 percent at 50” (3% @ 50) Retirement Formula per California Government Code §21362.2 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 the “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 20042). Current employees continued to be covered under Government Code 20692, Employer Paid Member Contribution, to the extent there is a City paid member contribution in the final year. (b) Safety Pension Group B: 3% at 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% at 55), with the final salary determination for such employees of “three 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). This new tier also eliminated Section 20692, Employer Paid Member Contribution. (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) Employee Share of PERS Contribution Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 86 Packet Pg. 190 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028April 10, 2023 – June 30, 2025 18 Employees in all sworn represented classes in Pension Groups A and B described above will make a 12% PERS member contributions by payroll deduction. Employees in all sworn 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, plus an additional 3%. Trainees will pay the same employee contribution as miscellaneous members while attending Basic Academy (see section (g) below). The City will continue to provide for member contributions to be made as allowed under the provisions of IRS Code §414(h)(2). (e) Additional Employee PERS Contributions • Effective the first full pay period following July 1, 2019 or as soon as administratively possible, all employees regardless of pension formula in this unit shall contribute an additional 0.5% to the Employer share of pension for a total of 3.5% contribution toward the Employer share of pension. (Total Employee contribution will be 12.5% for Classic; 50% of Normal Cost plus 3.5% for PEPRA.) • Additional contributions will coincide with the City amending its contract with CalPERS to reflect these changes. However, should CalPERS delay or the Association fail to approve the CalPERS amendment required to incorporate the additional 0.5% contribution, the City may implement the additional 0.5% effective July 1, 2019 without a contract amendment., and additional employee PERS contributions under CalPERS 20516 will be provided on a pre-tax basis to the extent allowable by law. (f) 457 Deferred Compensation Plan Effective the first full pay period following ratification and approval, July 1, 2019 all employees who are classified as “New Members” by PERS or “Group C’ by the MOA will receive $15050 per month contributed into their 457 deferred compensation plan. Eligible employees must have an active 457 plan in order to receive City contirbutions. 1959 Survivor Benefit Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 87 Packet Pg. 191 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028April 10, 2023 – June 30, 2025 19 The City will continue to provide the basic level (Level 1) of 1959 Survivor Benefit to eligible employees in accordance with California Government Code §21571. (g) Military Service Credit The City’s contract with the Public Employees' Retirement System provides for Section 20930.3, Military Service Credit as Public Service. (h) Retirement Privileges All retired employees and spouses of deceased employees shall have residential privileges at City libraries, refuse disposal area, golf course, and swimming pools. (i) PERS Status While in Basic Academy. While an employee is attending Basic Academy, he or she shall participate in the City’s PERS Miscellaneous Employee retirement plan with the same employee and employer contribution rates as applies to Miscellaneous City employees represented by SEIU (classified unit). When the employee successfully completes Basic Academy and is sworn in by the Police Chief, he or she shall prospectively participate in the PERS Safety Employee retirement plan. Section 19. Retirement Medical Plan (a) Retiree Medical Coverage - Employees hired before January 1, 2006 who have not voluntarily elected to participate in the Retirement Healthcare Benefits provided in Government Code section 22893: 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 who retire on or before December 31, 2007. Effective March 1, 2009, for an employee retiring on or after that date, the City will pay up to the monthly medical premium for the second most expensive plan among the existing array of plans during the Agreement term. Effective April 1, 2015, for an employee retiring on or after that date, the City contribution shall be the same contribution amount it makes for active City employees. The parties mutually agree that the benefits provided in this paragraph for employees retiring on or after April 1, 2015 will fluctuate from time to time based on the City’s contributions to health care for active employees. Accordingly, Association members who retire on or after April 1, 2015 and have not elected to participate in the Retirement Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 88 Packet Pg. 192 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028April 10, 2023 – June 30, 2025 20 Healthcare Benefits provided in Government Code section 22893, do not maintain a vested interest in any particular contribution by the City above the amount required under the PEMHCA. (b) Retiree Medical Coverage - Employees who voluntarily elect to participate in Government Code section 22893, and all Employees hired on or after January 1. 2006: The CalPERS vesting schedule set forth in California Government Code § 22893 will apply to all Association members hired on or after January 1, 2006, and employees hired prior to January 1, 2006 who voluntarily elect to participate in the Retirement Healthcare Benefits provided in Government Code § 22893. Under this law, an employee is eligible for 50% of the specified employer health premium contribution after ten (10) years of service credit, provided at least five (5) of those years were performed with the City of Palo Alto. After ten (10) years of service credit, each additional year of service credit will increase 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. However, the maximum contribution for family members will be 90% of the specified employer contribution. Notwithstanding any other term of this section, the City of Palo Alto's health premium contribution for employees hired on or after January 1, 2006, and employees who voluntarily elect to participate in Retirement Healthcare Benefits provided by Government Code § 22893, will be the minimum contribution set by CalPERS under California Government Code § 22893 based on a weighted average of available health plan premiums. Section 20. Psychological Counseling Program The psychological counseling program currently in effect shall be continued. The program shall provide 24-hour emergency counseling by independent professional consultants. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 89 Packet Pg. 193 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028April 10, 2023 – June 30, 2025 21 Section 21. Uniforms (a) The City will supply complete uniforms to all sworn personnel. All uniform items are the property of the City. One complete uniform consists of: (1) three pair of trousers, (2) three short-sleeved shirts with patches and zippers if desired, (3) three long-sleeved shirts with patches and zippers if desired, (4) three cotton or two synthetic fiber turtleneck shirts, (5) hat, (6) duty jacket with patches, (7) necktie, and (8) rain gear. 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 $42.31 per pay period. (b) At the time of initial employment, every sworn employee will be issued one complete uniform. Uniform items will be replaced on an as-needed basis subject to verification by management. (c) The City shall provide uniform cleaning for sworn representation unit personnel. (d) Personnel are accountable for all uniform items issued to them. If a particular item is lost or damaged due to employee negligence, the employee will be required to reimburse the City for value of the item(s) lost or damaged. (e) The City shall reimburse employees for the full cost of job-related safety boots up to $400 per fiscal year. The City will make the reimbursement only upon proof that the previous boots have become unserviceable due to wear or damage and upon verification of such purchase by the employee. (Job-related safety boots shall mean well-constructed, high topped boots that provide full ankle and foot support, which are selected from list agreed to by Management and the Association.) All Department-provided safety boots shall be purchased through this program. Employees are responsible for the full cost of any low-top, black shoes that are worn with the uniform. Section 22. Work Schedule (a) Field Services Division 4/11 Schedule The patrol schedule will have two sides, “A-Side” and “B-Side.” There will be ten patrol teams each supervised by a Sergeant or Acting Sergeant under the management of Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 90 Packet Pg. 194 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028April 10, 2023 – June 30, 2025 22 patrol lieutenants. Five Patrol teams will work an “A” schedule and five Patrol teams will work a “B” schedule. Patrol officers, agents, and sergeants will report for duty promptly at the designated times for each team. Patrol team schedules are as follows. Patrol Division Team Schedules A-Side B-Side Team 1A 0500 to 1600 Team 1B 0500 to 1600 Team 2A 0700 to 1800 Team 2B 0700 to 1800 Team 3A 1400 to 0100 Team 3B 1400 to 0100 Team 4A 1800 to 0500 Team 4B 1800 to 0500 Team 5A 2000 to 0700 Team 5B 2000 to 0700 Team’s 2A, 3A, and 4A are designated as field training teams. (1) 4/11 Work Schedule The work schedule will be based on an eight (8) day cycle with each employee working four (4) consecutive days on and having four (4) consecutive days off. The eight (8) day cycle will advance the employee’s workdays and days off within the calendar week one day every cycle. The overall cycle repeats itself every eight (8) weeks. Over the course of a year (26 pay periods) each employee works 182 eleven (11) hour regular patrol shifts totaling 2002 hours, 78-hours short of the required fulltime equivalent work year of 2080 hours. In the Patrol Division and with the approval of the Patrol Captain, a maximum of two (2) paired “fixed days” schedules (4 Employees) may be established, at the employees’ request. The regularly scheduled hours of work for such a position must cover the days off of the position with which it is paired. For example, one position could have Sunday, Monday, Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 91 Packet Pg. 195 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028April 10, 2023 – June 30, 2025 23 and Tuesday off while the other could have Thursday, Friday, and Saturday off. It shall be the responsibility of employees interested in a paired fixed day schedule to identify another employee who is willing to participate in the paired arrangement. If either employee or the Department desires to terminate a paired schedule once it is in effect, the employee or Department, as applicable, must give the other affected parties to the arrangement at least one (1) full pay period advance written notice. Resumption of the employees’ participation in the normal rotation shall begin on the first day of the second full pay period following the date notice is delivered to the other parties. Employees on a fixed schedule will be required to attend the designated CPT (Continued Professional Training) training days either on their regularly scheduled workday or on a day off. If they attend training on their regularly scheduled day off, they will be compensated by receiving an adjusted day off within the same pay period. Employees requesting a schedule different from the rotating 4/11 must submit their request in writing prior to the team selection process. The requests will only be considered on an extreme hardship basis The following hours and minimum staffing levels will be observed on both sides of the Patrol Division. During team overlaps, the combined staffing levels of the teams will serve to meet minimum staffing levels. 0700-2400 hours 1 Lieutenant/Sergeant Watch Commander 1 Sergeant/Agent Supervisor 6 Officers/Agents 0001-0300hours 1 Lieutenant/Sergeant Watch Commander 1 Sergeant/Agent Supervisor 5 Officers/Agents 0300- 0700 hours 1 Sergeant Supervisor 5 Officers/Agents Under routine circumstances, personnel will be able to receive time off as long as minimum staffing numbers remain available for duty. Management may deny time off to maintain staffing greater than the minimum numbers outlined above. It’s anticipated this will only occur in special situations where greater staffing is needed. (2) Designated CPT Training Days within the 4/11 Schedule: Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 92 Packet Pg. 196 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028April 10, 2023 – June 30, 2025 24 The 4/11 Schedule will have designated CPT training days and flexible training hours to make up the seventy-eight (78) hours necessary to complete a full work year. A training bank will be created for each employee on the 4/11 Schedule to track and monitor the use and balance of the 78-hours. The training bank and its use are outlined in the next section. For CPT training days which require employees to travel outside the City of Palo Alto, an additional two (2) hours of training bank time will be made available to account for all travel time related to attendance at training. The Division Captain may authorize additional time on a case-by-case basis. Management will determine the number of designated CPT training days and stagger them throughout the year in order to avoid overtime insofar as possible. Designated CPT training days will be scheduled prior to the beginning of each shift year. Unless otherwise determined by the Department, there will be five (5) designated CPT training days each year. These training days will vary in duration but will in most cases be approximately eight (8) to ten (10) hours in duration. The exact number of designated CPT training days, their duration in hours, and the remaining flexible training bank time will be determined prior to shift change and vacation selection. If it’s anticipated that the number of training days will vary in any given year, Management will notify and, on request, meet with PAPOA to consider any concerns the Association may have. Patrol personnel will not be permitted to take vacation on any one of these pre-designated CPT training days. The Division Captain may authorize an exception based on compelling circumstances. The course content and training provided on the designated CPT training days can vary from year to year to meet current and changing training needs. It will be the responsibility of the Personnel and Training Division to schedule and coordinate the training on designated CPT training days. Training days may be scheduled during daytime and/or nighttime hours to accommodate training needs. Sworn employees not on the 4/11 Schedule will be required to attend designated C.P.T. training days. Each of the training days will be broken into two (2) single day sessions for Patrol (A side and B side). It is anticipated that approximately fifty percent (50%) of the non-4/11 employees will attend one (1) of the two (2) days during each of the training cycles. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 93 Packet Pg. 197 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028April 10, 2023 – June 30, 2025 25 If the nature and/or complexity of the training does not allow for a larger groups, multiple sessions can be scheduled on additional training days. (3) Flexible Training Hours This schedule results in seventy-eight (78) hours that will be made up during the year through designated CPT training days and flexible training time. It is anticipated that approximately fifty (50) hours will be set aside each year for designated CPT training days (exact number to be determined each year). Once the hours set aside for designated CPT training days is established, the remaining hours shall be used for flexible training as follows. Employees on the 4/11 Schedule attending training on a day off or outside their normal shift shall use their available Flexible Training Bank hours (Non-CPT Hours) prior to using overtime. All Flexible Training Bank hours must be used prior to earning overtime. The only limitation on the use of these training hours is that no employee can exceed the one hundred seventy-one (171) hour FLSA limit in any twenty-eight (28) day cycle. The combination of regular work shifts, designated CPT training days, and flexible training time cannot exceed one hundred seventy-one (171) hours in any FLSA Cycle. Any hours worked over one hundred seventy-one (171) in a twenty-eight (28) day cycle are considered premiums hours and must therefore be paid at the overtime rate. The following is a list of some of the forms of training that could use hours from the bank; SWAT DRO Range Masters Quarterly Shoots FTO Meetings K-9 Sergeant’s meetings FTO School 11550 School Radar School Supervisor school All other Training If an employee doesn’t use his or her flexible training hours during the year, he or she will be required to make up the difference by either working extra shifts, partial shifts or by using vacation, compensatory time off, and/or holiday time from one of their banks at the end of each fiscal year. The Watch Commander and Supervisor will work with employees to schedule extra shifts or use vacation, holiday or compensatory time off balances. These hours are hours the employee is being compensated for during the normal twenty-six (26) pay periods. The employee must work the hours on a straight time basis or use vacation, holidays or compensatory time off for the compensation received throughout the year. (4) Other Training (not covered by the flexible training bank) Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 94 Packet Pg. 198 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028April 10, 2023 – June 30, 2025 26 The 4/11 Schedule significantly impacts designated CPT training days, shift training, and to some extent training compensated under the flexible training hours. The following guidelines should be followed when attending training not covered by the flexible training hours. All training bank hours, adjusted time off associated with training, and/or overtime associated to training shall be approved in advance by the employee’s watch commander or supervisor. training on a day off. of hours at training or adjustment for one patrol shift. Adjustments will be documented in the City timekeeping system. training on a day on. timekeeping system. but less than a week. off one patrol shift. Adjustments will be documented in the City timekeeping system training on a day off. in training. Adjustments will be documented in the City training on day on. the training and be expected to work the remainder of their shift. Adjustments will be documented in the City timekeeping system. day (week) training session that doesn’t exceed forty-four (44) hours. employee is in their twenty- employee will be adjusted off the patrol schedule when attending four or five day training sessions. The employee will be adjusted from four (4) eleven (11) hour shifts as Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 95 Packet Pg. 199 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028April 10, 2023 – June 30, 2025 27 adjusted days will be as close to the days the employee attended training as possible. Employees will not receive overtime under this situation unless the total time training exceeds forty-four (44) hours. Adjustments will be noted in (5) Assignments of Sworn Personnel on the 4/11 Schedule Each year assignments are made for management staff for the coming fiscal year. Subsequent to those assignments, officers, agents, and sergeants apply for specialty positions. At the conclusion of those specialty selections, the Patrol Team Selection process begins. Each year, the following process will be used for patrol team selection. Field Services Division Shift Assignment Process: Field Services sergeants, agents, and officers will select their work team based on the following criteria. a. Sergeants, in order of seniority, shall select one of the ten patrol teams. Sergeants may select any open team with the exception of those teams designated as Field Training teams. FTO Sergeants, in order of seniority, will select one of the designated FTO teams. b. Field Training Officers/Agents, in order of seniority, shall select one of the slots open and designated as FTO slots on one of the three FTO teams. The following teams have been pre-designated as training teams: Team 2A, Team 3A, and Team 4A. c. K-9 Officers/Agents – K-9 officers/agents will generally select one of the night shift teams: Teams 4 and 5. Selections will be based on rank and seniority. Only one K-9 will be allowed per team and K-9’s will be evenly split between the two sides Any exception to these assignments must be requested and approved by the Field Services Coordinator prior to the start of the selection process. d. Agents, in order of seniority, shall select any of the open agent’s slots remaining on any of the patrol teams. A minimum of three (3) agents will be assigned to the A- Side and a minimum of three (3) agents will be assigned to the B-Side. If a greater number of agents are assigned to patrol, management will evenly designate agent’s Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 96 Packet Pg. 200 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028April 10, 2023 – June 30, 2025 28 slots insofar as possible to as many of the patrol teams as possible with the goal being to have one agent on each patrol team. e. Officers, in order of seniority, shall select any remaining slot available on any of the patrol teams. f. Probationary Officers - May be assigned to teams at the discretion of the Field Services Division Coordinator. These assignments will be made based on the developmental needs of the new employee, the staffing needs of the organization, and in a manner that minimizes the loss of prime bidding slots for more senior officers/ agents. Additional Team Selection Guidelines Prior to the selection process, management shall determine the number of agents, and officers assigned to each team. Additionally, management will determine which teams are available for selection by K-9 Officers/Agents. Field Training Officers/Agents, Field Training Sergeants, and probationary employees shall be subject to administrative assignment. In the spring of each year, all employees participating in the patrol team selection process will receive a schedule identifying available slots, the process for team selection, and a date and time for the employee to make their selection Team Selection Reservations – Once Officers/Agents/Sergeants select a team, they will be guaranteed that team even if they are unable to work that team at the start of the shift year due to special assignment, internship, leave of absence, disability, illness etc. Officers, Agents and Sergeants may not remain in the same time slot for more then two consecutive years. Team change request will be considered with the approval of management. Any request for an anticipated change to the assignment of sworn personnel shall be routed to the Field Services Division Coordinator prior to the selection process. (6) Vacation Selection Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 97 Packet Pg. 201 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028April 10, 2023 – June 30, 2025 29 Concurrent Vacation Authorization – Officers and Agents Patrol Division – Four (4) slots are authorized on the A-Side and four (4) slots are authorized on the B-Side. It is anticipated that this would equate to two (2) slots on night shift (Teams 3, 4, and 5) and two (2) slots on day shift (Teams 1, and 2) for each side. Any exceptions to these rules may be made by the Field Services Division Coordinator based on special circumstances. Concurrent Vacation Authorization - Sergeants Patrol Division – Two (2) slots are authorized in patrol on the A-Side and two (2) slots are authorized in patrol on the B-Side. It is anticipated that this would equate to one (1) slot on the night shift (Teams 3, 4, and 5) and one (1) slot on the dayshift (Teams 1 and 2) for each side. Exceptions to allow two (2) sergeants vacation at the same time for special circumstances may be made by the shift lieutenant. Other exceptions to this rule may be made by the Field Services Division Coordinator. a. The A-side and B-side will have separate vacation signups. It’s also anticipated that the dayshift and nightshift will have separate signups. For agents and above, selection will be based on rank and time in rank. Personnel having the greatest tenure in rank will have priority. For officers, selection will be based on seniority. If seniority is equal, low badge number shall have priority. b. Sergeants will have a separate signup sheet from agents and officers. During the initial sign up sergeants will have two guaranteed slots per side, one (1) on day shift and one (1) on night shift. Agents/officers will have four (4) guaranteed slots per side, two (2) on day shift and two (2) on night shift. Vacation Selection Process: Vacation selection will occur within a few weeks of the team selection process each spring. Selections will take place on two days, one day for the A-Side and one day for the B-Side. Sergeant, agents, and officers will be given time slots to come in, call in, or may submit in advance written instructions on choice for vacation weeks. The selections will be made based on rank and seniority. Both sides agree to monitor the outcome of the process and enter into a mutual agreement to continue or discontinue the process. (7) Time Keeping and Payroll Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 98 Packet Pg. 202 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028April 10, 2023 – June 30, 2025 30 All employees working under the 4/11 schedule will work eleven (11) hours a day, four (4) consecutive days a week. These eleven (11) hours will be entered in the timekeeping system on the day they are worked and/or prior to pay period payroll deadlines. Employees attending one (1) of the designated CPT training days will enter the hours of training on a “training timesheet” and enter the time in the timekeeping system. Employees using hours from their flexible training bank shall complete a “training timesheet” and enter the time in the timekeeping system. Employees working the 4/11 Schedule will not receive overtime compensation for hours worked under the following conditions. • Hours worked as part of a regular 11-hour work day. • Hours worked on a designated CPT training days. • Hours associated to training where hours from the flexible training bank could be used. • Non-Mandatory training where adjustments from the patrol schedule are possible. Overtime shall be paid for “Mandatory” training once training bank hours have been exhausted. Overtime shall be paid for “Mandatory” meetings that fall outside the specialty exemption listed below. Participation in department specialties including training, meetings, and other activities is not considered a mandatory activity when it comes to overtime compensation. Wherever possible, employees participating in department specialties and other non-mandatory activities will be adjusted off the patrol schedule for these activities. Schedule adjustments will occur as close to the activity outside the employee’s normal work schedule as possible and within the same FLSA Cycle. Schedule adjustments for personnel working nights: All personnel attending a full day of training on a work day will be adjusted off the patrol schedule for their work shift that day. In addition to being adjusted off any shift that starts on the day the training occurs, employees working Teams 3, 4, and 5 the night before the training will be adjusted off the night before as follows. If the training is all day starting in the morning hours, these adjustments will apply. Team 3: Adjusted off at 2200 hours. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 99 Packet Pg. 203 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028April 10, 2023 – June 30, 2025 31 Teams 4 & 5: Adjusted off the entire shift. If a night shift employee is scheduled for a full day of “Mandatory” training on the morning of his or her first day off, the same adjustments listed above will apply. In addition to the necessary adjustment, employees will receive compensation for the training hours through the use of training bank hours. When training bank hours are exhausted, the employee will receive overtime. The time keeping system entries: Each employee must enter his or her time in the timekeeping system that accurately reflects the hours he or she works. When schedule adjustments are made, overtime is worked, or training bank time is used, employees must make appropriate notes in the comment section of the timekeeping system. Supervisors and timekeepers may complete the timekeeping system entries when employees are unavailable due to illness or other situations and employees will thereafter verify the timekeeping entry is accurate upon their return to work. Managers and supervisor will approve time entries made in the time keeping system. Managers and supervisors will pay special attention to the use of training bank time and overtime. Time entries should be reviewed for regular hours and training hours that may exceed the FLSA guideline of 171 hours in a 28 day cycle. With the 4-day on 4-day off rotation, employees will work either 66 or 88 hours in each pay period. The timekeeping system will shift adjust the appropriate number of hours into (+14) and out of (-8) the employees bi-weekly totals so each employee receives compensation for 80 hours. Regardless of the number of hours worked under the FLSA exemption, an employee will be compensated for 80 regular hours every bi-weekly payroll cycle. These shift adjusted hours (-8 or +14) will be added to or taken away from the timecard at the appropriate day/night shift differential rates for each employee. As an example, if an employee’s normal shift is paid at 75 percent day rate and 25 percent night rate, all hours shift-adjusted on to or off the timecard will be adjusted using the same approximate ratio of 75/25 percent for day/night rates. If an employee leaves city service while on the 4/11 schedule, staff and payroll shall perform the training bank reconciliation of the number of hours the employee is over or under the normal forty (40) hour workweek rate since the beginning of the current one (1) year (twenty-six [26] pay period) 4/11 cycle. If the employee has worked more hours than the forty (40) hour a week average, he or she shall be compensated for those hours at the regular rate. If the employee is under the forty (40) hour a week average, the hours will be Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 100 Packet Pg. 204 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028April 10, 2023 – June 30, 2025 32 taken from the employee’s vacation, holiday, or comp time bank and/or deducted at the regular rate from the employee’s last check. If an employee’s assignment changes from the 4/11 schedule or to the 4/11 schedule, his or her over/under rate will be calculated the same as above. Time off, extra shifts worked, and/or the adjustment of holiday, vacation, and/or comp. time banks will be used to resolve any differences between actual hours worked and the forty (40) hour weekly average. Daylight Savings Time/Pacific Standard Time Changes – Personnel on Team 4 and Team 5 will follow these guidelines when working either the spring forward or fall back. Individuals working in the spring who would lose an hour of work due to the change to Daylight Savings Time will report for duty one (1) hour early and work an eleven (11) hour shift at straight time. Individuals working in the fall will work one (1) additional hour (for a total shift of twelve (12) hours) due to the change to Pacific Standard Time. Such employees will put in for one (1) hour of overtime. Nothing in this section prevents an employee from leaving early or using time off to offset the time when staffing allows and approved by the Supervisor or Watch Commander. (8) Maximum Hours Worked - Turn Around Time Sergeants, agents, and officers may work up to a maximum number of 16 hours in a 24- hour period. Any work beyond 16 hours must be approved by a watch commander or member of management and only under exigent circumstances. Any time an employee works 16 hours or more, they must receive an 8-hour break before returning to duty. If the 8-hour break runs into the employees next shift, those hours are considered adjusted hours off. Sergeants, agents, and officers shall not exceed a maximum of one hundred forty (140) hours in a 14 day pay period. Any work beyond one hundred forty (140) hours must be approved by the employee’s Lieutenant and Captain, and should rarely occur only under extreme situations. Sergeants and Lieutenants authorizing overtime in excess of the daily limit (16-hours) and/or the bi-weekly limit (140 hours) shall send a short email to their Lieutenant and Captain explaining the reason for the excess work. It is the employee’s responsibility to monitor their hours and notify the supervisor and/or watch commander of their hours worked when approaching the daily or bi-weekly limits or Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 101 Packet Pg. 205 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028April 10, 2023 – June 30, 2025 33 being requested to work overtime. (9) Shift Exchanges Sergeants, agents, and officers may exchange work shifts with another employee of the same rank. Agents and officers may be interchangeable if simply filling the role of an officer on the schedule. Personnel must submit a shift exchange request form to their supervisor and lieutenant. Shift exchanges require a lieutenant’s approval except when short notice makes that impossible. Shift exchanges can only occur for entire shifts, Shift exchange request forms must contain the pay back date for the second half of the shift exchange. Both halves of the exchange must occur in the same 28-day FLSA Cycle (refer to Yearly 4/11 patrol Schedule for FLSA Cycles). Once an employee agrees to an exchange shift, he or she is responsible for that shift. If he or she fails to show up for the shift and/or is sick, the time will be deducted from his or her applicable leave balance to the extent the employee qualifies for such deduction under the applicable leave policy. Failure to show up for a shift may also result in disciplinary action. (10) On-duty workout period and sign up: When staffing allows and with supervisory approval, employees may workout on-duty for a period of up to one (1) hour. The hour shall include the work out, a shower, and dressing time. Specific guidelines and conditions are outlined in the Wellness Program Policy. (11) Upon written request of either party, Section 22(a) of this MOU will reopen and the parties will meet and confer over the issue of the patrol work schedule. Any changes will be by mutual agreement of the City and the Association. (b) Traffic Team Sworn members of the Traffic Team shall work a ten-hour (10) day, four (4) day workweek schedule. Traffic Team officers/agents may be assigned as part of minimum staffing at the discretion of management. Effective July 1, 2008, the Take Home Motor Program will be discontinued. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 102 Packet Pg. 206 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028April 10, 2023 – June 30, 2025 34 On a one time basis, employees assigned to motors who are in paid status the first full pay period after Council adoption of this MOU, will receive one time non PERSable stipend representing 2.5% of base salary of the employee’s classification minus applicable state and federal taxes. (c) Special Operation Sergeant/Crime Suppression Team The Special Operations Sergeant and team members shall generally work a ten (10) hour day, four (4) day workweek schedule. Given the nature of the team’s assignment, it is anticipated and expected that their schedules should be flexible and adapt to organizational needs. (d) ISD and Other Sworn Classifications All sworn personnel assigned to ISD, Staff Assistant, Personnel and Training and Community Policing shall work a ten (10) hour day, four-day work week schedule. (1) Work Schedule The ten hours shall generally be worked between the hours of 0700 and 1900, with specific schedules subject to approval by appropriate supervisors. The ten (10) -hour work schedule shall be worked within a period of ten hours, with a working lunch period not to exceed thirty (30) minutes. As an alternative, with Management approval, the ten-hour work schedule may be worked within eleven hours, with a one (1) hour unpaid lunch break. Changing alternatives will require prior approval by Management. (2) Work Week For ISD personnel, one-half of the Division will work Monday through Thursday, while the other half will work Tuesday through Friday. All other sworn personnel covered under Section 23 (b) & (c) will also work either Monday through Thursday, or Tuesday through Friday. (3) Late Detective Shift Two detectives will be assigned on a rotational basis to the late shift from 1200 to 2200 to provide evening coverage. Assignment to the late detective shift, where possible, will be by advanced sign up with each detective selecting two weeks each quarter according to a protocol determined by seniority, needs of the division and needs of the employee. Generally, there will be one detective from each half of the division working the late detective shift during each week. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 103 Packet Pg. 207 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028April 10, 2023 – June 30, 2025 35 (e) Forty-hour Training Schedule For all sworn employees who attend training that is four (4) or five (5) days in duration (a week), their schedules will be adjusted from the normal work week. Employees will not receive overtime during scheduled training as described here unless it exceeds their normal forty (40) or forty-four (44) hour workweek. Schedule adjustments will be documented in the notes section when making the timekeeping system entries. Section 23. Overtime Pay and Compensatory Time Off (a) Overtime pay shall be provided at the rate of time and one-half of the employee's regular rate, including night shift differential, working out of classification pay, and specialty assignment premium pay as defined under Section 7, 8 and 10. (b) Compensatory time off, which is approved by management in-lieu of overtime payment on a staffing available basis, will be taken at the rate of 1-1/2 hours for every hour of credited overtime. In the event compensatory time off is used as the method of compensating for overtime, the time off will be taken prior to the end of the quarter in which it is earned except as provided herein. All compensatory time balances over 80 hours shall be paid at the end of each quarter (i.e., employee to carry over 80 hours). During the final calendar year quarter only, employees have the option to: (1) Employees who have vacation accrual balances of less than two times their annual accrual rate, less 80 hours, may request in writing prior to the payroll deadline to convert up to 80 hours of unused compensatory time to vacation per calendar year, to be transferred in the first pay period of the calendar year. (2) Employees may cash out their entire compensatory balance but must make this request before payroll deadline. (3) Employees may elect to have their compensatory time cashout transferred to an employee’s deferred compensation plan, but must make this request before payroll’s deadline. (c) Employees called out to perform work, attend meetings or required training shall be compensated for at least three hours pay for each occurrence at the appropriate overtime rate. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 104 Packet Pg. 208 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028April 10, 2023 – June 30, 2025 36 Section 24. Overtime Sign-Up (a) Planned Overtime Planned overtime includes patrol staffing, special events, traffic control functions or any other overtime needs which can be identified prior to the 20th day of the preceding month. On or about the 20th of each month, watch commanders will post a list of dates/shifts requiring overtime for the next month. Officers, Agents, and Sergeants will be given a reasonable period of time to sign up for the available overtime assignments. On or about the 25th of the month, planned overtime will be filled from the sign up list using the rotational overtime call out list. Agents may place themselves on the sign up list for supervisor overtime, however will only be considered if no sergeant requests the shift. Overtime that isn’t filled during the planned overtime process may be filled at management’s discretion. Employees assigned to a fixed work schedule such as ISD, P&T, and Staff Assistant may adjust their work schedule with their manager’s approval in order to work a planned patrol overtime assignment. This schedule adjustment must be completed within the same work week as the planned overtime assignment. Schedule adjustments will normally be approved unless there is a conflict with a previously scheduled activity within the work unit or the schedule adjustment would be disruptive to the operation of the unit. Employees bidding for planned overtime requiring a shift adjustment must make a notation next to the assignment indicating a shift adjustment would be necessary. Only one overtime shift requiring a shift adjustment can be worked per work week. (b) Unplanned Overtime. Unplanned overtime is overtime that wasn’t identified prior to the 20th of the preceding month. Unplanned overtime will be filled by the following procedures. 1) The Watch Commander or Supervisor may request an employee extend their shift or come in early. If a volunteer cannot be identified to hold over or come in early, the rotational overtime list will be used. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 105 Packet Pg. 209 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028April 10, 2023 – June 30, 2025 37 2) Employees interested in working unplanned overtime will be placed on a rotational overtime list in order of seniority. When an overtime shift is available, a manager or supervisor will call the next person on the list. If that person declines the opportunity, is not available, is already working, or takes the overtime, he/she will be placed at the bottom of the list. The lists will be continually updated in order to rotate the names. There will be separate lists for sergeants and officers/agents for unplanned overtime. A separate supervisory list will be maintained for agents interested in working supervisory overtime. Agents will be offered supervisory overtime positions only if no sergeants have accepted the opportunity. 3) If the watch commander or supervisor is unable to fill overtime through any of these procedures, he or she may order an individual to extend their shift, come in early, or come in on a day off. A log on those required to work mandatory overtime will be kept in the overtime book. Mandatory overtime should be rotated in order of reverse seniority. c) Overtime Minimum. With regard to both planned and unplanned patrol team overtime, there is no minimum number of hours. Planned overtime postings and unplanned overtime will be offered for the actual number of hours needed. If small blocks of overtime aren’t filled by on-duty personnel adding them to an existing shift, managers may apply a 6-hour minimum to a shift for personnel coming in on a day off. (d) These overtime procedures may be reviewed and/or modified at the mutual agreement of both management and PAPOA. Section 25. Jury Duty No employee shall be required to work a combination of jury duty and work time to exceed 12 hours during a 24-hour period. The period shall commence at the required time of appearance for jury duty. Jury duty is defined as the time between required time of appearance and dismissal. Work time excused as a result of jury duty will be compensated at the regular rate of pay. Section 26. Vacation Accrual Vacation will be accrued when an employee is in pay status and will be credited on a bi-weekly basis. Such accrual and credit shall 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: Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 106 Packet Pg. 210 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028April 10, 2023 – June 30, 2025 38 (a) Less than four (4) years - For employees completing less than four years continuous service; (8) Shifts vacation leave per year. (b) Four, but less than nine years - For employees completing four, but not more than nine (9) years continuous service; 12 Shifts vacation leave per year. (c) Nine (9), but less than fourteen (14) years - For employees completing nine (9), but not more than fourteen (14) years continuous service; (16) Shifts vacation per year. (d) Fourteen (14), but less than nineteen (19) years - For employees completing fourteen (14), but not more than nineteen (19) years continuous service; (18) Shifts vacation leave per year. (e) Nineteen (19) or more years - For employees completing nineteen (19) or more years continuous service; (20) Shifts vacation leave per year. Example: An employee with less than four (4) years working a 4/10 Schedule will receive eight (8) Shifts or eighty (80) hours of vacation. The same employee working the 4/11 Schedule will receive eight (8) Shifts or eighty-eight (88) hours of vacation. At the time of the initial appointment, or to address an identified retention issue, the City may credit an employe for prior experience with a POST 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 27. Use of Vacation (a) When to be taken. The time at which an employee may use his/her accrued vacation leave and the amount to be taken at any one time shall be determined by the department head with particular regard for the needs of the City, but insofar as possible, considering the wishes of the employee. (b) Limitation on use. Employees may not use more than their annual rate of accrual in any calendar year period, provided, however, that a department head my grant exceptions to this limitation. (c) Waiting period. Employees shall complete six months continuous service before using accrued vacation leave. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 107 Packet Pg. 211 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028April 10, 2023 – June 30, 2025 39 (d) Double compensation prohibited. Employees shall not work for the City during their vacation. (e) Vacation splitting. It is the intention of the City that vacation be taken in units of one week; however, with the approval of the department head, an employee may use one week of his/her accrued vacation in any calendar year in units of less than one work week, but in no instance in units of less than one-half of the normal workday or shift. Requests for exception to this procedure must be approved by the City Manager. (f) Vacation Cashout. Once each calendar year an employee may cash out eight or more hours of vacation accrual in excess of 80 hours to a maximum of 120 hours, provided that the employee has taken at least 80 hours as vacation in the previous 12 months. 1. Effective for the 2012 tax year and each subsequent year, to be eligible to cash out vacation, employees must pre-elect the number of vacation hours they will cash out during the following calendar year, up to the maximum of 120 hours, prior to the start of that calendar year. The election will apply only to vacation hours accrued in the next tax year and eligible for cash out. 2. 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 provided by the City. 3. Employees who do not pre-designate or decline a cash out amount by the annual deadline established by the City 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. 4. Employees who pre-designate cash out amounts may request a cash out at any time in the designated tax year by submitting a cash out form to payroll. Payroll will complete the cash out upon request, provided the requested cash out amount has accrued and is consistent with the amount the employee predesignated. 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. 5. For employees who have not requested payment of the elected cash out amount by November 1 of each year, Payroll will automatically cash out the pre-designated amount in a paycheck issued on or after the payroll date including November 1. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 108 Packet Pg. 212 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028April 10, 2023 – June 30, 2025 40 Section 28. Vacation Pay at Termination Employees leaving the municipal service with accrued vacation leave shall be paid the amounts of accrued vacation to the date of termination. Payments for accrued vacation shall be at the employee's current rate of pay. Section 29. 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 30. Effect of Extended Military Leave An employee who interrupts his service because of an extended military leave shall be compensated for accrued vacation at the time the leave becomes effective. Section 31. Sick Leave (a) Statement of Policy. Sick leave shall be allowed and used only in case of actual personal sickness or disability, medical or dental treatment, or as authorized in Subsection 33 (e), personal business chargeable to sick leave. SUp to 8 days sick leave per year may be used for illness in the immediate family (spouse, child, parent, parent-in-law, brother, sister, registered domestic partner, or close relative residing in the household of the employee). (b) Eligibility. Regular and part-time employees shall be eligible to accrue and use sick leave. (c) Accrual. Sick leave shall be accrued bi-weekly provided the employee has been in a pay status for 50 percent or more of a bi-weekly pay period. Sick leave shall be accrued at the rate of 3.7 hours per bi-weekly pay period. (d) Accumulation. Accrued sick leave may be accumulated without limit, except as provided in Section 31(h). (e) Use. Sick leave may be used as needed and approved, to the point of depletion, at which time the employee will no longer receive pay for sick leave. A new employee may, if necessary, use up to forty-eight hours or shift equivalent of sick leave at any time during the Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 109 Packet Pg. 213 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028April 10, 2023 – June 30, 2025 41 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 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 one hour after 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 if there is reasonable evidence that sick leave abuse has occurred. Sick leave shall not be granted unless such report or advance accounting has been made, provided, however, that the department head may grant exception to this policy where the circumstances warrant. Documentation may also be required if there is a reasonable basis to believe that the employee may not be medically fit to return to work. (f) Depletion of Sick Leave Benefits. Upon depletion of sick leave or the beginning of the period to be covered by payments under the long-term disability group insurance coverage, whichever comes first, an employee may be granted a medical leave of absence without pay for a period not exceeding sixty days. If the employee is unable to return to work at the end of this period, he/she must request further medical leave which will be subject to the approval of the City Manager. If further leave is granted, the employee must notify the City of intent to return to work every thirty days. If further leave is not granted, the employee's service with the City shall be considered terminated. (g) Forfeiture Upon Termination. Employees leaving the municipal service shall forfeit all accumulated sick leave, except as otherwise provided by law and Subsection 32(h). 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. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 110 Packet Pg. 214 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028April 10, 2023 – June 30, 2025 42 (h) Payment for Accumulated Sick Leave. Employees hired before August 1, 1986 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. For all employees entering the service of the City prior to March 2, 1983, full sick leave accrual will be paid in the event of termination due to disability. For all employees hired after August 1, 1986, sick leave accrual accumulation shall be limited to 1,000 hours with no payoff provision for unused balance at termination. (i) Sick Leave Re-opener. Upon written request of either party, the parties agree to meet to confer over the issue of sick leave incentive, including but not limited to: (1) sick leave payout for employees hired after August 1, 1986 and (2) converting to a paid time off policy in lieu of both vacation and sick leave. Any changes will be by mutual agreement of the City and the Association. (j) Personal Business Leave Chargeable to Sick Leave. Up to 2 Shifts (20-Hours for 4/10 employees and 22-Hours for 4/11 employees) per year of personal business leave may be chargeable to sick leave. Time off under this provision is subject to management scheduling approval. (k) Return to Work or Continue Work With Limited/Alternative Duty. In cases of non-work-related injury, illness or pregnancy, an employee, upon approval of the department head, City Risk Manager and the employee's doctor, may elect to return to work or continue work with doctor-approved limited or alternative duty. Approval for such limited/alternative 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 locations and may be subject to the reasonable availability of limited duty assignments. The City doctor may be consulted in determining work limitations. Any assignment to a limited/alternative duty will be on a temporary basis. The provisions of this section are not intended to create any permanent light/alternative duty assignments. Any assignment to a limited/alternative assignment shall not displace any other employee without consent of all parties, including the Association. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 111 Packet Pg. 215 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028April 10, 2023 – June 30, 2025 43 Section 32. Leaves of Absence Without Pay (a) Disability. Leaves of absence without pay may be granted in cases of disability not covered by sick leave. Pregnancy will be considered as any other disability. Leaves of absence for disability are subject to physicians' verification including diagnosis and medical work restriction. (b) Other leaves. Leaves of absence without pay 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. (c) 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. (d) 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. (e) 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. (f) 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. (g) 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 34 (b), (c) , (d) and (e). (h) Military leave of absence. State and federal law shall govern the granting of military leaves of absence and the rights of employees returning from such absence. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 112 Packet Pg. 216 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028April 10, 2023 – June 30, 2025 44 Section 33. Leave of Absence With Pay The City Manager may grant a regular employee under his/her control a leave of absence with pay for a period not exceeding thirty calendar days for reasons he/she deems adequate and in the best interest of the City. The City Council may grant a regular employee a leave of absence with pay for a period not to exceed one year for reasons the Council considers adequate and in the best interest of the City. (a) Subpoenas; leave of absence. Regular employees who are subpoenaed to appear as witnesses in behalf of the State of California or any of its agencies may be granted leaves of absence with pay from their assigned duties until released. The employee shall remit all fees received for such appearances to the City within thirty days from the termination of his or her services. Compensation for mileage or subsistence allowance shall not be considered as a fee and shall be retained by the employee. (b) Employee's time off to vote. 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. (c) Leave of absence; death in immediate family. Leave of absence with pay of three days shall be granted an employee by the head of his or 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, step-son, son-in-law daughter, step-daughter, daughter-in-law, father, step-father, father-in-law, mother, step-mother, mother-in-law, brother, step-brother, brother-in-law, sister, step-sister, sister-in-law, grandmother, grandmother-in-law, grandfather, grandfather-in-law, grandchildren, aunt, uncle, niece, nephew, 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 three days shall be subject to the approval of the City Manager. Approval of additional leave will be based on the circumstances of each request with consideration given to the employee’s need for additional time off. (d) Jury duty; leave of absence. Employees required to report for jury duty shall be granted a leave of absence with pay from their assigned duties until released by the court, provided the employee remits to the City all fees received for such duties other than mileage or subsistence allowances within thirty days from the termination of his/her jury service. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 113 Packet Pg. 217 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028April 10, 2023 – June 30, 2025 45 Section 34. Reduction in Force In the event of reductions in force, they shall be accomplished wherever possible through attrition. If the work force is reduced within the bargaining unit for reasons of change in duties or organization, abolition of position, shortage of work or funds, or completion of work, employees with the shortest length of service will be laid off first so long as employees retained are fully qualified, trained and capable of performing remaining work. Length of service for the purpose of this article will be based on total City service in a regular classification or classifications. Employees laid off due to the above reasons will be given written notice at least thirty days prior to the reduction in force. A copy of such notice will be given to the Association. Section 35. Agents The number of Agent positions shall be governed by the August 12, 1981, Arbitration Award. Section 36. Commute Incentives and Parking in Civic Center Garage Commute Incentives-- Represented employees who qualify may voluntarily elect one of the following commute incentives: Public Transit. The City will provide monthly Commuter Checks worth the value of: $40 for employees traveling three or more zones on Caltrain; $40 for employees using the Dumbarton Express, BART, the ACE train, or a commuter highway vehicle; $35 for employees traveling less than three zones on Caltrain; $35 for employees using VTA and other buses. These vouchers may be used toward the purchase of a monthly transit pass. Carpool. The City will provide carpool vouchers worth the value of $30 per month to each eligible employee in a carpool with two or more people. These vouchers may be used at designated service stations toward the purchase of fuel and other vehicle-related expenses. Vanpool Program. The City will provide Commuter Checks worth the value up to $60 to each employee voluntarily participating in the Vanpool Program. These vouchers may be used toward payment of the monthly cost. Employees must fulfill the basic requirements of the Employee Commute Alternatives Program to qualify. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 114 Packet Pg. 218 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028April 10, 2023 – June 30, 2025 46 Bicycle. The City will provide bicycle vouchers worth the value of $20 per month to eligible employees who ride a bicycle to work. These vouchers may be used at designated bicycle shops for related bicycle equipment and expenses. Walk. The City will provide walker vouchers worth the value of $20 per month to eligible employees who walk to work. These vouchers may be used at designated stores for expenses related to walking such as footwear and related accessories. Parking in the Civic Center Garage--Employees assigned to Civic Center and adjacent work locations will be provided with a Civic Center Garage parking permit. New employees hired after June 30, 1994 may initially receive a parking permit for another downtown lot, subject to the availability of space at the Civic Center Garage. Section 37. Disciplinary Action and Unsatisfactory Work or Conduct (a) Except as provided in Section 6 (Probationary Period) of this agreement, no employee shall be disciplined without just cause. For the purpose of this section, "discipline" shall be deemed to include discharge, demotion, reduction in salary, written reprimand, disciplinary probation and suspension. Discipline shall be deemed not to include verbal reprimands or reductions in force. (b) Non-probationary employees whose work or conduct is unsatisfactory but not sufficiently deficient to warrant discipline, demotion, or discharge will be given a written notification of unsatisfactory work or conduct and an opportunity to improve. Failure to correct deficiencies and improve to meet standards may result in discipline, demotion or discharge. (c) Notice of disciplinary action must be in writing and served on the employee in person or by registered mail prior to the disciplinary action becoming effective. However, in extreme situations where there is reasonable cause, the employee may be removed from duty immediately with pay pending such disciplinary action. The notice must be filed on a timely basis with the Human Resources Department and included in the employee's personnel file. The notice of disciplinary action shall include: (1) Statement of the nature of the disciplinary action; (2) Effective date of the action; (3) Statement of the cause thereof; Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 115 Packet Pg. 219 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028April 10, 2023 – June 30, 2025 47 (4) Statement in ordinary and concise language of the art or the omissions upon which the causes are based; (5) Copies of any documents or other items of evidence upon which the disciplinary action was fully or in part based; (6) Statement advising the employee of his/her right to appeal from such action, and the right to Association representation. (d) If the disciplinary action consists of suspension, any suspension time previously given shall be credited to the final disciplinary action. (e) Subject to state law requirements, employees may request that disciplinary actions be sealed according to the following schedule: (1) Written reprimands with no recurrence after one (1) year. (2) Disciplinary probation after three (3) years from the implementation of such probation, if no other disciplinary action has occurred during that period. (3) Suspensions less than three (3) days without recurrence, after two (2) years. (4) Suspensions more than three (3) days but less than six (6) days, after three (3) years. (5) Suspensions of six (6) days or more, after five (5) years. For the purpose of these sections, the time starts from the time of action following the Skelly process (day discipline is imposed). Written requests for the sealing of disciplinary actions should be directed to the Personnel and Training Coordinator. Sealing shall include all memos, letters, correspondence, complaint forms, and any other material pertaining to the disciplinary action that has been placed in the employee's personnel file. Sealing shall not include the sealing of any material related to criminal offenses for which the employee was charged except in concurrence with the sealing or expungement of criminal Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 116 Packet Pg. 220 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028April 10, 2023 – June 30, 2025 48 charges by a court of competent jurisdiction or in the event of a complete exoneration of the employee by the judicial system. The City Human Resources Department shall be notified in all cases where sealing of disciplinary action is taken. Human Resources Department copies of the disciplinary actions will be disposed of in a manner consistent with the Police Department's action. The sealed action shall not be held to discriminate against the employee in any subsequent disciplinary action, or in the event of promotion, merit step raise, transfer, request for educational leave, modification of duties, vacation selection, application for other employment, or against any other action the employee may take for his or her personal improvement. Once sealed, the file shall not be opened unless the employee requests such unsealing and then only for examination by the person or persons whom the employee specifies or at the discretion of the Chief of Police, who in the absence of a demonstrable emergency shall notify the employee a minimum of 48 hours before the opening of the sealed file and the reason for opening. In the event the employee cannot be notified in advance, notification must be made on the employee's first duty day after the sealed file is opened. Section 38. Grievance Procedure (a) The City and the Association recognize that early settlement of grievances is essential to sound employee-employer relations. The parties seek to establish a mutually satisfactory method for the settlement of employee grievances, or Association grievances, as provided for below. In presenting a grievance, the aggrieved and/or his or her representative is assured freedom from restraint, interference, coercion, discrimination or reprisal. (b) Definition. A Grievance is: (1) An unresolved complaint or dispute regarding the application or interpretation of Departmental rules, regulations, policies, and procedures, relating to terms conditions of employment, wages or fringe benefits; or this Memorandum of Agreement, . (2) An appeal from a disciplinary action of any kind against an employee covered by this Memorandum of Agreement. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 117 Packet Pg. 221 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028April 10, 2023 – June 30, 2025 49 (c) Access to the Grievance Procedure. Except as provided in Section 6, Probationary Period, all employees represented by the Association may file and process a grievance. Such aggrieved employees may be represented by the Association or may represent themselves in preparing and presenting their grievance at any level of review. The Association may file a grievance when an Association right not directly related to an individual employee becomes subject to dispute. (d) Conduct of Grievance Procedure. (1) The time limits specified in this Article may be extended by mutual agreement in writing of the aggrieved employee or the Association and the reviewer concerned. (2) Should a decision not be rendered within a stipulated time limit, the aggrieved employee may immediately appeal to the next step. (3) The grievance may be considered settled if the decision of any step is not appealed within the specified time limit. (4) If appropriate, the aggrieved employee or the Association and Management may mutually agree to waive any step of the grievance procedure. (5) Written grievances shall be submitted on forms provided by the City or on forms which are mutually agreeable to the City and the Association. (6) 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. Step I. The aggrieved employee will first attempt to resolve the grievance through informal discussions with his or her immediate supervisor by the end of the tenth working day following the discovery of or the incident upon which the grievance is based. Every attempt will be made to settle the issue at this level. (Note: For purposes of time limits, the working days are considered to be Monday through Friday, exclusive of City holidays.) Step II. If the grievance is not resolved through the informal discussion, the employee will reduce the grievance to writing and submit copies to the division head or equivalent level Management employee as designated by Management as appropriate within ten working days of the discussion with the immediate supervisor. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 118 Packet Pg. 222 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028April 10, 2023 – June 30, 2025 50 The division head or equivalent level Management employee shall have ten working days from the receipt of a written grievance to review the matter and prepare a written statement. Step III. If the grievance is not resolved at Step II, the aggrieved employee may appeal to his or her department head in writing within ten working days of the receipt of the division head's response. The department head shall have ten working days from the receipt of a written grievance to review the matter and convey his or her decision by written statement. Step IV. 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 grievance arbitration. 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 ten working days of receipt of the Step III response. If the aggrieved employee elects final and binding resolution by the City Manager, the City Manager will choose the methods he or she considers appropriate to review and settle the grievance. The City Manager shall render a written decision to all parties directly involved within ten working days after receiving the employee's appeal. If the aggrieved employee elects final and binding arbitration in accordance with this provision, the parties shall mutually select an arbitrator. In the event the parties cannot agree on an arbitrator, they shall mutually request a panel of five arbitrators from the California State Conciliation Service or from the American Arbitration Association if either party objects to the State Conciliation Service, and select an arbitrator by the alternate strike method. The arbitrator shall have jurisdiction and authority only to interpret, apply, or determine compliance with the provisions of this Memorandum of Agreement and such Merit System Rules, regulations, policies, procedures, City ordinances, resolutions relating to terms or conditions of employment, wages or fringe benefits, as may hereafter be in effect in the City insofar as may be necessary to the determination of grievances appealed to the arbitrator. The arbitrator shall be without power to make any decision: (1) Regarding matters of interest. (2) Contrary to, or inconsistent with or modifying in any way, the terms of this Memorandum of Agreement. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 119 Packet Pg. 223 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028April 10, 2023 – June 30, 2025 51 (3) Granting any wage increases or decreases. The arbitrator shall be without authority to require the City to delegate or relinquish any powers which by State law or City Charter the City cannot delegate or relinquish. Where either party seeks arbitration and the other party claims the matter is not subject to the arbitration provisions of this Memorandum of Agreement, the issue of arbitrability shall first be decided by the arbitrator using the standards and criteria set forth in this section and without regard to the merits of the grievance. If the issue is held to be arbitrable, the arbitration proceedings will be recessed for up to five working days during which the parties shall attempt to resolve the grievance. If no resolution is reached, the arbitrator will resume the hearing and hear and resolve the issue on the merits. Copies of the arbitrator's decision shall be submitted to the City, the aggrieved employee and the Union. All direct costs emanating from the arbitration procedure shall be shared equally by the City and the aggrieved employee or the Association. Section 39. Bulletin Boards and Telephones The Association shall have access to existing bulletin boards in Unit employee work areas and to the City e-mail and voice mail systems for the purpose of posting notices or announcements including notices of social events, recreational events, membership meetings, results of elections and reports on minutes of Association meetings. Any other material must have prior approval of the Police Chief. Action on approval will be taken within 24 hours of submission. Emails sent for Association business shall be copied to the Human Resources Director at distribution. City telephones may be used for Association business so long as there is no disruption of work and all toll or message unit calls are charged to the Association credit card. Section 40. Access to Association Representatives Representatives of the Association are authorized access to City work locations for the purpose of conducting business within the scope of representation, provided that no disruption of work is involved and the business transacted is other than recruiting of members or collecting of dues, and the representative must notify the Human Resources Department office prior to entering the work location. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 120 Packet Pg. 224 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028April 10, 2023 – June 30, 2025 52 Section 41. Meeting Places The Association shall have the right to reserve City meeting and conference rooms for use during non-working hours. Such meeting places will be made available in conformity with City's regulations and subject to the limitations of prior commitment. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 121 Packet Pg. 225 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028April 10, 2023 – June 30, 2025 53 Section 42. Voluntary Leave Program: (a) The City of Palo Alto has established a Peace Officer Voluntary Leave Program to provide members of the Palo Alto Peace Officers’ Association, Incorporated (hereafter referred to as “PAPOA”) the opportunity to donate their accrued vacation time to assist fellow members of PAPOA 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 Police Officer 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 4. In whole hour increments of at least (4) hours, with 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) or Family Medical Leave Act (FMLA), the employee will be eligible for continuation of medical and other available benefits during that 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. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 122 Packet Pg. 226 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028April 10, 2023 – June 30, 2025 54 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. PAPOA 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). (b) The City reserves the right to modify or terminate this program at any time. (c) 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. (d) Nothing in this section precludes an Association member from utilizing or participating in the City’s Voluntary Employee Leave Sharing Program. Section 43. Utilization of Reserves for Field Services Division Events (a) Management will determine staffing levels for each event. (b) Events for which the department receives reimbursement will be staffed by regular officers, except that in the event a sufficient number of regular officers are unavailable, reserve officers may be used. (c) Reserves may be used for the May Day Parade, Stanford University or NFL football games, park patrol, Black and White Ball, and supplemental patrol staffing in excess of levels set forth in the Field Services Staffing Levels general order. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 123 Packet Pg. 227 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028April 10, 2023 – June 30, 2025 55 (d) Events, for which the department does not receive reimbursement, may be staffed in the ratio of two reserve officers to one regular officer. Reserves may be used in any situation where an insufficient number of regular officers are available. (e) Staffing for the University Avenue Street Fair will consist of no less than a 1:1 ratio of regular officers to reserve officers. Section 44. Overtime Meals for Investigative Services Division Effective July 1, 1996, for ISD personnel who are working authorized investigative overtime extending for a period either four hours after the conclusion of their normal work shift, or four hours prior to the beginning of the normal work shift, shall be entitled to reimbursement for the appropriate meal at the City per diem rate. The meal reimbursement shall also apply for any authorized investigative overtime on a weekend or holiday in excess of four hours. Section 45. Hiring Incentives Qualified lateral officers, who have a current basic or higher POST certificate, hired during the term of this agreement may upon City Manager approval: (a) Accrue vacation leave at a beginning rate equal to the rate they were earning at their previous employer, subject to a maximum of 160 hours per year with progression to higher accrual rates as provided in Section 27, Vacation Accrual; and (b) Begin their employment with the City with a sick leave balance not to exceed 96 hours. (c) Receive a hiring incentive. Any future hiring incentive program will be discussed with the Association prior to implementation and the Department will reasonably consider any recommendations from the Association regarding internal referral programs to be utilized in conjunction with that program. (d) Laterals returning to the Palo Alto Police Department must have been separated from the City for a minimum of 2 years to be eligible for this incentive program. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 124 Packet Pg. 228 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028April 10, 2023 – June 30, 2025 56 (e) Based on years of service, level of experience, and educational achievement, experienced lateral officers may receive a starting salary at any appropriate level within the “Police Officer” classification as deemed appropriate by the City Manager on recommendation of the Chief of Police. Section 46. Full Understanding (a) The Memorandum of Agreement contains the full and entire understanding of the parties regarding the matters set forth herein. (b) 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. (c) 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. (d) 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 Supreme Court or U. S. Supreme Court ruling, such invalidation of such part or portion of this Memorandum of Agreement shall not invalidate the remaining portions hereof, and they shall remain in full force and effect, insofar as such remaining portions are severable. (e) Prior Agreements & Side Letters: Upon Implementation of this agreement, all prior agreements and side letters become null and void. In any instance where internal department polices and/or practices are in conflict with this agreement, this agreement shall take precedence. (f) 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. Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 125 Packet Pg. 229 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028April 10, 2023 – June 30, 2025 57 Section 47. Printed Agreement The City will provide copies of the Memorandum of Agreement resulting from these negotiations in booklet form to all represented employees. Section 48. Duration Except as expressly and specifically provided otherwise herein for the retroactive application of a specific provision(s), this Memorandum of Agreement shall become effective upon ratification by both parties hereto and remain in effect through June 30, 20285. EXECUTED: FOR: FOR: PALO ALTO PEACE OFFICERS' CITY OF PALO ALTO ASSOCIATION Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 126 Packet Pg. 230 of 627 City of Palo Alto and PAPOA July 1, 2025 – June 30, 2028April 10, 2023 – June 30, 2025 58 Peter Hoffmann, Rains Lucia Stern, PC Allyson Hauck, Counsel Joshua Waldorph Ann-Marie Manley, Human Resources Technician Yolanda Franco-Clausen Sandra Blanch, Human Resources Director Item 5 Attachment A - MOA - PAPOA Item 5: Staff Report Pg. 127 Packet Pg. 231 of 627 Step Rate Monthly Annual Step Rate Monthly Annual Step Rate Monthly Annual 1 $67.26 1 $69.63 1 $72.07 2 $70.80 2 $73.29 2 $75.86 3 $74.53 3 $77.15 3 $79.85 4 $78.45 4 $81.21 4 $84.05 5 $82.58 5 $85.48 5 $88.47 6 $86.93 15,067.87$ 180,814.40$ 6 $89.98 15,596.53$ 187,158.40$ 6 $93.13 16,142.53$ 193,710.40$ 1 $70.63 1 $73.12 1 $75.68 2 $74.34 2 $76.96 2 $79.66 3 $78.26 3 $81.01 3 $83.85 4 $82.38 4 $85.28 4 $88.26 5 $86.71 5 $89.76 5 $92.90 6 $91.28 15,821.87$ 189,862.40$ 6 $94.48 16,376.53$ 196,518.40$ 6 $97.79 16,950.27$ 203,403.20$ 1 $72.31 1 $76.60 1 $79.28 2 $76.11 2 $80.62 2 $83.45 3 $80.12 3 $84.87 3 $87.84 4 $84.34 4 $89.34 4 $92.46 5 $88.78 5 $94.03 5 $97.32 6 $93.45 16,198.00$ 194,376.00$ 6 $98.98 17,156.53$ 205,878.40$ 6 $102.45 17,758.00$ 213,096.00$ 1 $70.63 1 $73.12 1 $75.68 2 $74.34 2 $76.96 2 $79.66 3 $78.26 3 $81.01 3 $83.85 4 $82.38 4 $85.28 4 $88.26 5 $86.71 5 $89.76 5 $92.90 6 $91.28 15,821.87$ 189,862.40$ 6 $94.48 16,376.53$ 196,518.40$ 6 $97.79 16,950.27$ 203,403.20$ 1 $74.00 1 $76.61 1 $79.29 2 $77.88 2 $80.63 2 $83.46 3 $81.99 3 $84.87 3 $87.85 4 $86.31 4 $89.35 4 $92.47 5 $90.84 5 $94.04 5 $97.33 6 $95.63 16,575.87$ 198,910.40$ 6 $98.98 17,156.53$ 205,878.40$ 6 $102.45 17,758.00$ 213,096.00$ 1 $75.68 1 $80.09 1 $82.89 2 $79.65 2 $84.29 2 $87.25 3 $83.85 3 $88.73 3 $91.84 4 $88.27 4 $93.41 4 $96.67 5 $92.91 5 $98.31 5 $101.75 6 $97.80 16,952.00$ 203,424.00$ 6 $103.48 17,936.53$ 215,238.40$ 6 $107.11 18,565.73$ 222,788.80$ 611 Non‐exempt Police Agent Palo Alto Peace Officers' Association (PAPOA) Salary Schedule Job Code FLSA Job Title 613 Non‐exempt Police Agent/Adv 612 Non‐exempt Police Agent/Inter 615 Non‐exempt Police Agent/Inter‐Bilingual 614 Non‐exempt Police Agent‐Bilingual 616 Non‐exempt Police Agent/Adv‐Bilingual Effective 08/09/2025 (3.75% Increase)Effective First Full Pay Period Following July 1, 2027 (7/10/2027 ‐ 3.5% Increase) Effective First Full Pay Period Following July 1, 2026 (7/11/2026 ‐ 3.5% Increase) Item 5Attachment B - SalarySchedule - PAPOA Item 5: Staff Report Pg. 128 Packet Pg. 232 of 627 Step Rate Monthly Annual Step Rate Monthly Annual Step Rate Monthly Annual 1 $62.43 1 $64.61 1 $66.88 2 $65.72 2 $68.01 2 $70.40 3 $69.18 3 $71.59 3 $74.11 4 $72.82 4 $75.36 4 $78.01 5 $76.65 5 $79.33 5 $82.12 6 $80.68 13,984.53$ 167,814.40$ 6 $83.51 14,475.07$ 173,700.80$ 6 $86.44 14,982.93$ 179,795.20$ 1 $65.56 1 $67.85 1 $70.23 2 $69.01 2 $71.42 2 $73.92 3 $72.64 3 $75.17 3 $77.82 4 $76.47 4 $79.13 4 $81.92 5 $80.49 5 $83.30 5 $86.23 6 $84.72 14,684.80$ 176,217.60$ 6 $87.69 15,199.60$ 182,395.20$ 6 $90.77 15,733.47$ 188,801.60$ 1 $68.69 1 $71.09 1 $73.58 2 $72.30 2 $74.83 2 $77.44 3 $76.10 3 $78.75 3 $81.53 4 $80.12 4 $82.90 4 $85.83 5 $84.33 5 $87.27 5 $90.34 6 $88.76 15,385.07$ 184,620.80$ 6 $91.87 15,924.13$ 191,089.60$ 6 $95.10 16,484.00$ 197,808.00$ 1 $65.56 1 $67.85 1 $70.23 2 $69.01 2 $71.42 2 $73.92 3 $72.64 3 $75.17 3 $77.82 4 $76.47 4 $79.13 4 $81.92 5 $80.49 5 $83.30 5 $86.23 6 $84.72 14,684.80$ 176,217.60$ 6 $87.69 15,199.60$ 182,395.20$ 6 $90.77 15,733.47$ 188,801.60$ 1 $67.12 1 $71.08 1 $73.57 2 $70.65 2 $74.82 2 $77.44 3 $74.37 3 $78.75 3 $81.53 4 $78.29 4 $82.90 4 $85.82 5 $82.40 5 $87.27 5 $90.34 6 $86.74 15,034.93$ 180,419.20$ 6 $91.87 15,924.13$ 191,089.60$ 6 $95.09 16,482.27$ 197,787.20$ 1 $70.25 1 $74.32 1 $76.92 2 $73.94 2 $78.23 2 $80.96 3 $77.83 3 $82.33 3 $85.24 4 $81.94 4 $86.67 4 $89.73 5 $86.24 5 $91.24 5 $94.45 6 $90.78 15,735.20$ 188,822.40$ 6 $96.05 16,648.67$ 199,784.00$ 6 $99.42 17,232.80$ 206,793.60$ 621 Non‐exempt Police Officer Palo Alto Peace Officers' Association (PAPOA) Salary Schedule Job Code FLSA Job Title 619 Non‐exempt Police Officer‐Inter‐Bilingual 618 Non‐exempt Police Officer‐Bilingual 623 Non‐exempt Police Officer‐Adv 622 Non‐exempt Police Officer‐Inter 624 Non‐exempt Police Officer‐Adv‐Bilingual Effective 08/09/2025 (3.75% Increase)Effective First Full Pay Period Following July 1, 2026 (7/11/2026 ‐ 3.5% Increase) Effective First Full Pay Period Following July 1, 2027 (7/10/2027 ‐ 3.5% Increase) Item 5Attachment B - SalarySchedule - PAPOA Item 5: Staff Report Pg. 129 Packet Pg. 233 of 627 Step Rate Monthly Annual Step Rate Monthly Annual Step Rate Monthly Annual 1 $75.33 1 $77.95 1 $80.69 2 $79.29 2 $82.05 2 $84.94 3 $83.46 3 $86.37 3 $89.41 4 $87.85 4 $90.92 4 $94.12 5 $92.47 5 $95.71 5 $99.07 6 $97.34 16,872.27$ 202,467.20$ 6 $100.75 17,463.33$ 209,560.00$ 6 $104.28 18,075.20$ 216,902.40$ 1 $79.10 1 $81.85 1 $84.73 2 $83.26 2 $86.16 2 $89.19 3 $87.64 3 $90.69 3 $93.89 4 $92.25 4 $95.47 4 $98.83 5 $97.10 5 $100.50 5 $104.03 6 $102.21 17,716.40$ 212,596.80$ 6 $105.79 18,336.93$ 220,043.20$ 6 $109.50 18,980.00$ 227,760.00$ 1 $80.98 1 $85.75 1 $88.76 2 $85.24 2 $90.26 2 $93.44 3 $89.72 3 $95.01 3 $98.36 4 $94.44 4 $100.02 4 $103.54 5 $99.41 5 $105.29 5 $108.98 6 $104.65 18,139.33$ 217,672.00$ 6 $110.83 19,210.53$ 230,526.40$ 6 $114.71 19,883.07$ 238,596.80$ 1 $82.87 1 $85.75 1 $88.77 2 $87.23 2 $90.27 2 $93.44 3 $91.82 3 $95.01 3 $98.37 4 $96.65 4 $100.02 4 $103.54 5 $101.73 5 $105.29 5 $108.99 6 $107.08 18,560.53$ 222,726.40$ 6 $110.83 19,210.53$ 230,526.40$ 6 $114.72 19,884.80$ 238,617.60$ 1 $84.75 1 $89.65 1 $92.80 2 $89.21 2 $94.37 2 $97.69 3 $93.90 3 $99.33 3 $102.84 4 $98.84 4 $104.57 4 $108.25 5 $104.04 5 $110.08 5 $113.94 6 $109.52 18,983.47$ 227,801.60$ 6 $115.87 20,084.13$ 241,009.60$ 6 $119.93 20,787.87$ 249,454.40$ 1 $79.10 1 $81.85 1 $84.73 2 $83.26 2 $86.16 2 $89.19 3 $87.64 3 $90.69 3 $93.89 4 $92.25 4 $95.47 4 $98.83 5 $97.10 5 $100.50 5 $104.03 6 $102.21 17,716.40$ 212,596.80$ 6 $105.79 18,336.93$ 220,043.20$ 6 $109.50 18,980.00$ 227,760.00$ 631 Non‐exempt Police Sergeant Palo Alto Peace Officers' Association (PAPOA) Salary Schedule Job Code FLSA Job Title 633 Non‐exempt Police Sgt/Adv 632 Non‐exempt Police Sgt/Inter 629 Non‐exempt Police Sgt/Adv‐Bilingual 628 Non‐exempt Police Sgt/Inter‐Bilingual Effective 08/09/2025 (3.75% Increase)Effective First Full Pay Period Following July 1, 2026 (7/11/2026 ‐ 3.5% Increase) Effective First Full Pay Period Following July 1, 2027 (7/10/2027 ‐ 3.5% Increase) 626 Non‐exempt Police Sergeant‐Bilingual Item 5Attachment B - SalarySchedule - PAPOA Item 5: Staff Report Pg. 130 Packet Pg. 234 of 627 Step Rate Monthly Annual Step Rate Monthly Annual Step Rate Monthly Annual 1 $59.76 1 $61.86 1 $64.03 2 $59.76 2 $61.86 2 $64.03 3 $59.76 3 $61.86 3 $64.03 4 $59.76 4 $61.86 4 $64.03 5 $59.76 5 $61.86 5 $64.03 6 $59.76 10,358.40$ 124,300.80$ 6 $61.86 10,722.40$ 128,668.80$ 6 $64.03 11,098.53$ 133,182.40$ 1 $62.75 1 $64.96 1 $67.24 2 $62.75 2 $64.96 2 $67.24 3 $62.75 3 $64.96 3 $67.24 4 $62.75 4 $64.96 4 $67.24 5 62.75 5 64.96 5 67.24 6 $62.75 10,876.67$ 130,520.00$ 6 $64.96 11,259.73$ 135,116.80$ 6 $67.24 11,654.93$ 139,859.20$ 1 $62.43 1 $64.61 1 $66.88 2 $65.72 2 $68.01 2 $70.40 3 $69.18 3 $71.59 3 $74.11 4 $72.82 4 $75.36 4 $78.01 5 $76.65 5 $79.33 5 $82.12 6 $80.68 13,984.53$ 167,814.40$ 6 $83.51 14,475.07$ 173,700.80$ 6 $86.44 14,982.93$ 179,795.20$ 1 $65.56 1 $67.85 1 $70.23 2 $69.01 2 $71.42 2 $73.92 3 $72.64 3 $75.17 3 $77.82 4 $76.47 4 $79.13 4 $81.92 5 $80.49 5 $83.30 5 $86.23 6 $84.72 14,684.80$ 176,217.60$ 6 $87.69 15,199.60$ 182,395.20$ 6 $90.77 15,733.47$ 188,801.60$ 627 Non‐exempt Police Off Training 625 Non‐exempt Police Off Training‐Bilingual 617 Non‐exempt Police Trainee‐Bilingual 620 Non‐exempt Police Trainee Effective First Full Pay Period Following July 1, 2026 (7/11/2026 ‐ 3.5% Increase) Effective First Full Pay Period Following July 1, 2027 (7/10/2027 ‐ 3.5% Increase)Effective 08/09/2025 (3.75% Increase) Palo Alto Peace Officers' Association (PAPOA) Salary Schedule Job Code FLSA Job Title Item 5Attachment B - SalarySchedule - PAPOA Item 5: Staff Report Pg. 131 Packet Pg. 235 of 627 Memorandum of Agreement City of Palo Alto and Item 5 Attachment C - MOA - PMA Item 5: Staff Report Pg. 132 Packet Pg. 236 of 627 City of Palo Alto and PAPMA July 1, 2025 – June 30, 2028 Page 2 of 24 TABLE OF CONTENTS ARTICLE I – PREAMBLE ................................................................................................................... 4 Section 1 – Recognition. .................................................................................................................... 4 Section 2 – Non-Discrimination. ........................................................................................................ 4 ARTICLE II – COMPENSATION ........................................................................................................ 4 Section 3 – Salary. .............................................................................................................................. 4 Section 4 – Working Out of Class Pay. .............................................................................................. 5 Section 5 – Night Shift Differential. .................................................................................................. 5 ARTICLE III – HEALTH CARE BENEFITS ....................................................................................... 5 Section 6 – Active Employee Health Plans. ....................................................................................... 5 Section 7 – Dental Benefits. ............................................................................................................... 7 Section 8 – Vision Care. .................................................................................................................... 7 Section 9 – Basic Life Insurance. ...................................................................................................... 7 Section 10 – Supplemental Life And AD&D Insurance. ................................................................... 7 Section 11 – Effective date of Coverage for New Employees. .......................................................... 7 ARTICLE IV – OTHER BENEFITS ..................................................................................................... 8 Section 12 – Holiday Compensation. ................................................................................................ 8 Section 13 – Vacation. ....................................................................................................................... 8 Section 14 – Long Term Disability. ................................................................................................... 9 Section 15 – Dependent Care Assistance Program. .......................................................................... 9 Section 16 – Medical Flexible Spending Program. ............................................................................ 9 Section 17 – Employee Assistance Plan. ............................................................................................ 9 Section 18 – Commute Incentives and Parking. ............................................................................... 10 Reopener. .......................................................................................................................................... 10 ARTICLE V –RETIREMENT ............................................................................................................. 10 Section 19 – Retirement Benefits. .................................................................................................... 10 Section 20 – Retirement Medical Plan. ........................................................................................... 11 Section 21 – ICMA - Retirement Health Savings Plan. .................................................................. 12 Section 22 – Deferred Compensation Program. .............................................................................. 12 ARTICLE VI – MANAGEMENT BENEFIT PROGRAM ................................................................. 12 Section 23 – Professional Development Reimbursement. ............................................................... 12 Section 24 – Physical Examinations. .............................................................................................. 13 Item 5 Attachment C - MOA - PMA Item 5: Staff Report Pg. 133 Packet Pg. 237 of 627 City of Palo Alto and PAPMA July 1, 2025 – June 30, 2028 Page 3 of 24 Section 25 – Excess Benefit. ............................................................................................................ 13 Section 26 – Management Annual Leave. ....................................................................................... 15 ARTICLE VII – OPERATIONAL ISSUES ....................................................................................... 15 Section 27 – Management Assignments. ......................................................................................... 15 Section 28 – Basic Work Schedules. ............................................................................................... 15 Section 29 – On Duty Workouts. ..................................................................................................... 15 Section 30 – Take Home Emergency Response Vehicles. ............................................................... 16 Section 31 – Modified Duty Assignments. ...................................................................................... 16 Section 32 – Meal Allowance. ........................................................................................................ 16 Section 33 – Uniforms. ..................................................................................................................... 16 ARTICLE VIII – ASSOCIATION AGREEMENTS ........................................................................... 17 Section 34 – Association Security. .................................................................................................. 17 Section 35 – Association Representative Access to Work Locations. ............................................. 17 Section 36 – Release Time. .............................................................................................................. 17 Section 37 – Use of City Facilities for Association Business. ......................................................... 17 Section 38 – Payroll Deduction. ....................................................................................................... 17 ARTICLE IX – LEAVE PROGRAMS ................................................................................................ 18 Section 39 – Sick Leave. .................................................................................................................. 18 Section 40 – Voluntary Catastrophic Leave Program. ..................................................................... 19 Section 41 – Leave of Absence With Pay. ...................................................................................... 19 Section 42 – Leave of Absence Without Pay. .................................................................................. 20 ARTICLE X – EMPLOYEE/EMPLOYER RELATIONS .................................................................. 21 Section 43 – Probationary Period. .................................................................................................... 21 Section 44 – Disciplinary Action and Unsatisfactory Work or Conduct. ........................................ 22 Section 45 – Grievance Procedure. .................................................................................................. 22 Section 46 – No Strikes. ................................................................................................................... 24 Section 47 – Reduction in Workforce. ............................................................................................ 24 ARTICLE XI – LOOKING FORWARD ............................................................................................. 24 Section 48 – Full Understanding. ..................................................................................................... 24 Section 49 – Legal Compliance/Severability. .................................................................................. 24 Section 50 – Duration. ...................................................................................................................... 24 APPENDIX A-1 .................................................................................... Error! Bookmark not defined. Item 5 Attachment C - MOA - PMA Item 5: Staff Report Pg. 134 Packet Pg. 238 of 627 City of Palo Alto and PAPMA July 1, 2025 – June 30, 2028 Page 4 of 24 2023 - 2025 MEMORANDUM OF AGREEMENT City of Palo Alto and Palo Alto Police Managers' Association ARTICLE I – PREAMBLE This Memorandum of Agreement is pursuant to and subject to Sections 3500-3510 of the Government Code of the State of California, the Charter of the City of Palo Alto, and the City of Palo Alto Merit System Rules and Regulations. This Memorandum of Agreement made and entered into at Palo Alto, California, by and between the City of Palo Alto, a municipal corporation (hereinafter referred to as "City") and the Palo Alto Police Managers' Association (hereinafter referred to as "Association"), is intended to define agreements reached during the meet and confer process concerning wages, hours, working conditions, and other terms and conditions of employment for the represented group of employees. Section 1 – Recognition. On October 29, 2009, the City of Palo Alto certified the Palo Alto Police Managers' Association (Association) as a bargaining unit within the City. The City recognizes the Association as the exclusive representative of an employee group consisting solely of Police Lieutenants and Police Captains who are regularly employed by the City and others who might be amended into the representation unit from time to time under existing law and the Merit System Rules and Regulations. Section 2 – Non-Discrimination. The City and the Association agree that there shall be no discrimination of any kind because of age (over 40), race, creed, color, religion national origin, ancestry), veterans status, physical or mental disability, marital status, sexual orientation, sex (sexual, gender based or gender identity, pregnancy/childbirth), medical condition (cancer related and genetic characteristics), or on any other basis prohibited by applicable federal and State law against any employee or applicant for employment. The Association shall cooperate with the City, to the extent required by federal and State laws and regulations, in furthering the objective of Equal Employment Opportunities, as defined by Federal and State regulations. ARTICLE II – COMPENSATION Section 3 – Salary a)General Salary Increase: Effective the first full pay period including the adoption of the MOA, the salary ranges of all represented classifications will be increased by three percent (3%). b)Market Adjustment: Effective the first full pay period following the adoption of the MOA, salary ranges of all bargaining unit classifications will be increased by one percent (1.0%). Item 5 Attachment C - MOA - PMA Item 5: Staff Report Pg. 135 Packet Pg. 239 of 627 City of Palo Alto and PAPMA July 1, 2025 – June 30, 2028 Page 5 of 24 c)General Salary Increase: Effective the first full pay period following July 1, 2026, salary ranges of all represented classifications will be increased by three percent (3.0%). d)Market Adjustment: Effective the first full pay period following July 1, 2026, the salary ranges of all represented classifications will be increased by one percent (1%). e)General Salary Increase: Effective the first full pay period following July 1, 2027, salary ranges of all represented classifications will be increased by three percent (3.0%). f)Market Adjustment: Effective the first full pay period following July 1, 2027, the salary ranges of all represented classifications will be increased by one percent (1%). g)Flexible Compensation: Effective January 1, 2023, and in lieu of an increase to the City contribution towards medical premiums, each represented classification will have their monthly income increased by $100. h)Flexible Compensation: Effective the first full pay period following January 1, 2024, and in lieu of an increase to the City contribution towards medical premiums, each represented classification will have their monthly income increased by an additional $100 (Total of $200). Section 4 – Working Out of Class Pay. Lieutenants or Captains fulfilling the role of an acting captain, assistant chief, or chief for individual shifts and/or a number of hours within a shift, shall not receive additional compensation. Periodically working in this capacity shall be deemed a basic duty within an employee's job description. Lieutenants and Captains working out of class for a period of four or more consecutive shifts shall be compensated at the start of the pay period with premium pay determined by the Chief of Police or their designee up to 10% of base pay. In accordance with Government Code 20480, an employee assigned to work in an out-of-class appointment may not exceed 960 hours worked in the appointment within a fiscal year if the employee is appointed to an upgraded position or higher classification that is vacant during recruitment for a permanent appointment. This limitation does not apply to a position that is temporarily available due to a leave of absence. Section 5 – Night Shift Differential. Night shift differential shall be paid at the rate of 5% to all personnel for all hours worked between 6:00 p.m. and 8:00 a.m. ARTICLE III – HEALTH CARE BENEFITS Section 6 – Active Employee Health Plans. The maximum City contribution towards medical premiums for eligible full-time employees per employee category shall the following for any plan: Item 5 Attachment C - MOA - PMA Item 5: Staff Report Pg. 136 Packet Pg. 240 of 627 City of Palo Alto and PAPMA July 1, 2025 – June 30, 2028 Page 6 of 24 Medical Premium Category Contribution* Total Maximum City Contribution (inclusive of PEMHCA contribution) effective the first full pay period including Council Adoption Employee Only $151.00 $943 Employee plus one $151.00 $1,885 Employee Family $151.00 $2,444 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 Employee Only $151.00 $962 Employee plus one $151.00 $1,942 Employee Family $151.00 $2,566 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 Employee Only $151.00 $1,000 Employee plus one $151.00 $2,020 Employee Family $151.00 $2,669 *Total City contribution includes both PEMHCA minimum contributions pursuant to Government Code section 22892 and an additional City contribution necessary to pay the cost of medical premiums up to the amount listed in the "Total maximum City contribution" columns above. Item 5 Attachment C - MOA - PMA Item 5: Staff Report Pg. 137 Packet Pg. 241 of 627 City of Palo Alto and PAPMA July 1, 2025 – June 30, 2028 Page 7 of 24 Section 7 – Dental Benefits. a) The City will maintain the present level of benefits on the City-sponsored dental program for current employees and their dependents, except that the maximum benefits per calendar year shall be $2,000 effective in 1988. Dental Coverage shall include composite (tooth colored) fillings for all teeth. Effective July 1, 2007, the City will provide 50% of reasonable charges, $2,000 lifetime maximum orthodontic benefit for representation unit employees and their dependents. b) Dependents will include domestic partners, as defined in the Active Employee Domestic Partners Section below. c) During the term of the agreement, the City and the Union will work together to review benefit provisions of the City's self-funded dental program. The purpose of this review is to contain benefit cost increases. Joint recommendations will be prepared for discussion during successor agreement negotiations. d) Dental implants in conjunction with one or more missing natural teeth, and removal of dental implants will be covered as a Major Dental Service at 50% usual, customary and reasonable (UCR). Section 8 – Vision Care. The City will offer vision care coverage for employees and dependents. Coverage is equivalent to $20 deductible Plan A under the Vision Service Plan, with monthly premiums paid by the employer. Dependents will include domestic partners, as defined in the Active Employee Domestic Partners Section below. Section 9 – Basic Life Insurance. The City shall provide a basic group term life insurance with Accidental Death and Dismemberment (AD&D) coverage, in an amount equal to the employee's annual basic pay (rounded to the next highest $1,000) at no-cost to the employee. AD&D pays an additional amount equal to the employee's annual basic pay (rounded to the next highest $1,000). Section 10 – Supplemental Life And AD&D Insurance. An employee may, at their cost, purchase additional life insurance and additional AD&D coverage equal to one-or two-times his or her annual salary. The maximum amount of life insurance available to the employee is up to $325,000 and the maximum amount of AD&D coverage available is up to $325,000. Section 11 – Effective date of Coverage for New Employees. For newly hired regular employees coverage begins on the first day of the month following date of hire for the health plan, dental plan, vision care plan, and life insurance plans if these benefits are elected. Item 5 Attachment C - MOA - PMA Item 5: Staff Report Pg. 138 Packet Pg. 242 of 627 City of Palo Alto and PAPMA July 1, 2025 – June 30, 2028 Page 8 of 24 ARTICLE IV – OTHER BENEFITS Section 12 – Holiday Compensation. Police Managers will receive the twelve (12) paid City holidays outlined in the City of Palo Alto Merit Rules. Floating Holiday – Days of Historical Significance. Employees will be provided one floating holiday each calendar year in acknowledgement of days of historical significance. The employee with prior approval from their supervisor can use this floating holiday at any time during the year. This holiday has no cash value and will expire if unused. Section 13 – Vacation. a)Vacation Accrual. Vacation will be accrued when an employee is in pay status and will be credited on a bi-weekly basis. Total vacation accrual at any one time may not exceed three times the annual rate of accrual. Each eligible employee shall accrue vacation at the following rate for continuous service performed in pay status: 1.Less than nine (9) years - For employees completing less than nine (9) years continuous service; one hundred twenty (120) hours vacation leave per year. The City Manager may adjust the annual vacation accrual of employees hired on or after July 1, 2001 to provide up to forty (40) additional hours (i.e. to a maximum annual accrual of one hundred sixty (160) hours) for service with a prior employer. 2.Nine (9), but less than fourteen (14) years - For employees completing nine (9), but not more than fourteen (14) years continuous service; one hundred sixty (160) hours vacation leave per year. 3.Fourteen (14), but less than nineteen (19) years - For employees completing fourteen (14), but not more than nineteen (19) years continuous service; one hundred eighty (180) hours vacation leave per year. 4.Nineteen (19) or more years - For employees completing nineteen (19) or more years continuous service; two hundred (200) hours vacation leave per year. b)Vacation Use. Vacation use by police managers will be subject to approval by the Chief of Police or their designee. All reasonable efforts will be made to approve vacation requests while maintaining appropriate oversight of public safety operations. c)Vacation Cashout. Once each calendar year an employee may cash out eight (8) or more hours of vacation accrual in excess of eighty (80) hours from a minimum of eight (8) hours to a maximum of one hundred (120) Item 5 Attachment C - MOA - PMA Item 5: Staff Report Pg. 139 Packet Pg. 243 of 627 City of Palo Alto and PAPMA July 1, 2025 – June 30, 2028 Page 9 of 24 hours, provided that the employee has taken at least eighty (80) hours of vacation in the previous twelve (12) months. Effective for the 2012 tax year and each subsequent year, employees must pre-elect an irrevocable number of vacation hours they will cash out during the upcoming year, up to a maximum of one hundred twenty (120) hours, prior to the start of the calendar year. Employees who do not pre- designate or elect to cash out hours will be deemed to have waived the right to cash out any vacation leave in the following year. Employees who pre-designate cash out amounts may request a cash out at any time in the designated tax year by submitting a cash out form to payroll. For employees who have not requested payment of pre-designated cash out amounts by November 1 of each year, Payroll will automatically cash out the pre-designated amount in a paycheck issued on or after November 1. d) Vacation Pay at Termination. Employees leaving the municipal service with accrued vacation leave shall be paid the amounts of accrued vacation to the date of termination. Payments for accrued vacation shall be at the employee's current rate of pay. e) Vacation Benefits for Deceased Employees. An employee who is eligible for vacation leave and who dies while in the municipal service shall have the amount of any accrued vacation paid to the employee's estate within thirty days. This proration will be computed at the last basic rate of pay. Section 14 – Long Term Disability. The City shall provide long term disability (LTD) insurance with a benefit of 2/3 monthly salary, up to a maximum benefit of $10,000 per month. The City shall pay the premium for the first $6,000 of base monthly salary. For employees whose base monthly salary exceeds $6,000, the employee shall pay the cost of the required premium based upon their monthly salary between $6,000 and $15,000. Section 15 – Dependent Care Assistance Program. The City will provide a Dependent Care Assistance Program for employees according to the provisions of the Federal Economic Recovery Act of 1981, Code Sections 125 and 129. The program will be available to representation unit employees beginning with pay period number 1 of 1992, and remain in effect subject to a reasonable minimum participation level and availability of third-party administrative services at a reasonable cost. Section 16 – Medical Flexible Spending Program. The City will provide a Medical Flexible Spending Program for Association members allowing them to use pre-tax deferrals for reimbursement of excess or uncovered medical, dental and vision expenses. The plan will follow existing plan guidelines and conform to all applicable laws and regulations. Section 17 – Employee Assistance Plan. The Employee Assistance Plan (EAP) provides employees with confidential personal counseling, work and family related issues, eldercare, substance abuse, etc. Item 5 Attachment C - MOA - PMA Item 5: Staff Report Pg. 140 Packet Pg. 244 of 627 City of Palo Alto and PAPMA July 1, 2025 – June 30, 2028 Page 10 of 24 Section 18 – Commute Incentives and Parking. 1. Civic Center Parking. Employees assigned to Civic Center and adjacent work locations. The City will provide a Civic Center Garage parking permit. Employees hired after June 30, 1994 may initially receive a parking permit for another downtown lot, subject to the availability of space at the Civic Center Garage. 2. Alternative Commute Incentives: Employees who qualify may voluntarily elect one commute incentives, including but not limited to the following options, for those using an eligible commute alternative on 60% or more of their scheduled work days per month: a. Public Transit and Vanpool. The City provides tax-free commute incentives up to the current IRS limit, as may be amended from time to time, (currently $125/month) are available through the Commuter Check Direct (CCD) website for employees using Bay Area public transportation or riding in a registered vanpool at least 60% of their scheduled work days. Administration of the Commuter Check benefit shall be subject to the rules and regulations of the third- party administrator. b. Go Pass. The Go Pass program will offer civic center and other downtown-based employees a Caltrans Go Pass that allows unlimited rides on Caltrain in all zones seven days per week, to any City of Palo Alto employee. c. Bicycle. The City will provide employees with a tax-free incentive of $20 per month to eligible employees who ride a bicycle to work. d. Carpool. The City will provide with a taxable incentive of $30 per month to each eligible employee in a carpool with two or more licensed drivers. e. Walk. The City will provide employees with a taxable incentive of $20 per month to eligible employees who walk to work. Reopener. It is the City's interest to reduce single occupancy vehicle trips to the extent possible in order to address current challenges. During the term of this agreement, upon written request by the City, the parties shall meet and confer through the impasse process if necessary on changes to the City's commute incentive and parking program adopted by the City Council. ARTICLE V –RETIREMENT Section 19 – Retirement Benefits. A. "3%@50" Safety Retirement (Employees hired on or before December 7, 2012) For employees hired by the City of Palo Alto on or before December 7, 2012, the California Public Employees' Retirement System (CalPERS) retirement formula benefit known as the "3 percent at 50 (3%@50)," per California Government Code section 21362.2, shall continue in effect with the final salary determination for such employees of the "single highest one (1) year period" per California Government Code section 20042. All unit members in the 3% @ 50 safety retirement plan shall pay the full 9% CalPERS member contribution. This contribution is pre-tax to the extent allowable by law. Item 5 Attachment C - MOA - PMA Item 5: Staff Report Pg. 141 Packet Pg. 245 of 627 City of Palo Alto and PAPMA July 1, 2025 – June 30, 2028 Page 11 of 24 B. Second Tier "3% at 55" Safety Retirement ("Classic" Employees) For those employees hired on or after December 8, 2012 through December 31, 2012 or are classic members as defined by CalPERS, the CalPERS retirement formula benefit known as the "3 percent at 55 (3%@55)," per Government Code section 21363.1, with the final salary determination for such employees of the "three (3) highest consecutive years" based on the highest average annual compensation earnable by the member during three (3) consecutive years of employment immediately preceding retirement or the three-year period otherwise designated by the member per Government Code section 20037. All unit members in the second tier shall pay the full 9% CalPERS member contribution. This contribution is pre-tax to the extent allowable by law. C. Third Tier "2.7% at 57” Safety Retirement (“New” PEPRA Employees) For those employees hired on or after January 1, 2013, the CalPERS retirement formula benefit known as "2.7 percent at 57 (2.7% at 57)," with the final salary determination for such employees of the "three (3) highest consecutive years." The initial contribution rate will be at least 50% of the normal cost rate at retirement as determined by CalPERS. This contribution is pre-tax to the extent allowable by law. D. Additional Employee PERS Contributions Effective the pay period that includes June 30, 2017, all employees regardless of pension formula in this unit shall, in addition to the Member Contribution required, pay 3% towards the Employer share of Pension. Effective the pay period that includes June 30, 2021, all employees regardless of pension formula in this unit shall, in addition to the Member Contribution required, pay an additional 1% towards the Employer share of Pension for a total of 4%. Such contributions under CalPERS 20516 will be provided on a pre-tax basis to the extent allowable by law. Section 20 – Retirement Medical Plan. A. Retiree Medical Coverage for Unit Employees Hired Before January 1, 2004: Monthly City-paid premium contributions for a retiree-selected PEMHCA optional plan will be made in accordance with the Public Employees' Medical and Hospital Care Act Resolution for employees hired before January 1, 2004 as outlined below. For employees who retire before June 1, 2012, the City will pay up to the monthly medical premium for the 2nd most expensive plan offered to PMA employees among the existing array of plans. For employees who retire on or after June 1, 2012, The City contribution towards retiree medical shall be the same contribution amount it makes for active City employees. Effective upon ratification and adoption of this Agreement (Scheduled for January 11, 2016), the City shall provide active unit employees who were hired before January 1, 2004 with a one-time opportunity to opt-in to retiree health benefits provided under California Government Code section 22893. Eligible employees who wish to exercise this option shall inform the Human Resources Item 5 Attachment C - MOA - PMA Item 5: Staff Report Pg. 142 Packet Pg. 246 of 627 City of Palo Alto and PAPMA July 1, 2025 – June 30, 2028 Page 12 of 24 department of their election in writing no later than 90 days following the ratification and adoption of this Agreement. B. 20-Year Vesting Schedule for Retiree Medical Coverage for Unit Employees Hired on or After January 1, 2004 and employees who chose to opt-in to retiree health benefits provided under California Government Code section 22893 as outlined above: The retiree health benefit provided in California Government Code section 22893 shall apply to all employees hired on or after January I, 2004 and employees who opt-in as outlined above. Under this law, an employee is eligible to receive Fifty (50) percent of benefit after ten (10) years; each additional service credit year after Ten (10) years will increase employer credit by Five (5%) percent until Twenty (20) years is reached at which time employee is eligible for One Hundred (100%) percent of annuitant-only coverage and Ninety (90%) percent of the additional premium for dependents. Section 21 – ICMA - Retirement Health Savings Plan. The City provides an ICMA retirement health savings plan for Association members. The ICMA retirement health savings plan is subject to applicable IRS rules and plan guidelines as well as any other applicable laws. Each Association member shall make a pre-tax contribution to the plan as follows: 1. Each member shall contribute 1% of their base salary bi-weekly into the plan. 2. Failure by each member to contribute will deem the health savings plan out of compliance with IRS and plan guidelines. 3. The administrative fee shall be paid by the Association member. The manner and amount of contributions may be periodically modified by agreement of both parties. Section 22 – Deferred Compensation Program. The City will provide a Deferred Compensation Program for employees according to the provisions of the plans and applicable IRS guidelines. Effective July 1 2026, the City will contribute $250 monthly to the 457 plan of each represented employee. Effective July 1 2027, the City will contribute a total of $400 monthly to the 457 plan of each represented employee. ARTICLE VI – MANAGEMENT BENEFIT PROGRAM Section 23 – Professional Development Reimbursement. The purpose of this program is to provide employees with resources to improve and supplement their job and professional skills. Reimbursement for authorized self-improvement activities may be granted to each Association employee up to a maximum of five hundred dollars ($500) per fiscal year. A departmental training fund of one thousand dollars per employee ($1,000) will be established for subject matter, leadership or other training that the Department Director identifies as a need for employees within that Department. Item 5 Attachment C - MOA - PMA Item 5: Staff Report Pg. 143 Packet Pg. 247 of 627 City of Palo Alto and PAPMA July 1, 2025 – June 30, 2028 Page 13 of 24 The following items are eligible for reimbursement: a) Civic and professional association memberships b) Conference participation and travel expenses, which must occur within the compensation plan period. c) Educational programs, books and videos, and tuition reimbursement designed to maintain or improve the employee's skills in performing their job or future job opportunities, should support the City's mission or be necessary to meet the educational requirements for qualification for employment. Permissible educational expenses are refresher courses, courses dealing with current developments, academic or vocational courses, as well as the travel expenses associated with the courses as defined by the City's travel expense report from the Policy & Procedures Manual Section 1-02 ASD. d) Professional and trade journal subscriptions not to exceed 12 months. Approval will be at discretion of department head and signature is required on reimbursement form. Amounts under this professional development program will be pro-rated in the first year of employment or promotion. Section 24 – Physical Examinations. All management and professional employees are eligible to receive an annual physical examination as follows: a) Use the periodic health exam benefit as provided under the PERS Health Plan option you have selected. Each of the PERS Health Plans provides for a periodic physical examination. The examination must be performed by your primary care physician – unless they refer you to another physician. b) The types of tests and the frequency of the tests cannot exceed AMA guidelines. The guidelines are a suggested minimum based on research studies concerning preventative care. The judgment of your physician is the final determinant for your care. c) Any additional necessary asymptomatic tests that are required by your physician that are not covered by your health plan will be reimbursed by the City. Any symptomatic tests will be covered under your PERS Health Plan. The Reimbursement for Periodic Physical Exam Form is available on the Human Resources Intranet site. This benefit will not be pro-rated. Section 25 – Excess Benefit. This benefit is designed to meet the requirements of Section 125 of the Internal Revenue Code. Every calendar year, each employee will be provided with $3,000 annually that they can designate among the following options: a) Medical Flexible Spending Account (Medical FSA). Provides reimbursement for excess medical/dental/vision, or expenses that are incurred by employees and their dependents which are not covered or reimbursed by any other source, including existing City-sponsored plans. This includes prescribed medications and co-payments as well as over-the-counter drugs, including: antacids, allergy medicines, pain relievers and cold medicines. However, nonprescription dietary supplements (e.g. vitamins, etc.) toiletries (e.g. Item 5 Attachment C - MOA - PMA Item 5: Staff Report Pg. 144 Packet Pg. 248 of 627 City of Palo Alto and PAPMA July 1, 2025 – June 30, 2028 Page 14 of 24 toothpaste), cosmetics (e.g. face cream), and items used for cosmetic purposes (e.g. Rogaine) are not acceptable. b) Dependent Care Flexible Spending Account (Dependent Care FSA). Provides reimbursement for qualified dependent care expenses under the City's Dependent Care Assistance Program (DCAP), subject to the following limits: Dependent care expenses will be reimbursed only to the extent that the amount of such expenses reimbursed under this Management Benefit Program, when added to the amount (if any) of annual dependent care expenses that the participant has elected under the City's Flexible Benefits Plan, do not exceed the maximum permitted under the DCAP. 1) The annual amount submitted for reimbursement cannot exceed the income of the lower-paid spouse. 2) The expenses must be employment-related expenses for the care of one or more dependents who are under 13 years of age and entitled to a dependent deduction under Internal Revenue Code section 151 (e) or a dependent who is physically or mentally incapable of caring for himself or herself. 3) The payments cannot be made to a child under 19 years of age or to a person claimed as a dependent. 4) If the services are provided by a dependent care center, the center must comply with all state and local laws and must provide care for more than six individuals (other than a resident of the facility). 5) Dependent care expenses not submitted under this section are eligible under the City Dependent Care Assistance Plan (DCAP). However, the maximum amount reimbursed under DCAP will be reduced by any amount reimbursed under the Excess Benefit Plan. c) Non-taxable Professional Development Spending Account. Provides reimbursement for Non-Taxable professional development expenses (e.g., job-related training and education, seminars, training manuals, etc.) to the extent they are not paid or reimbursed under any other plan of the City. d) Gym or Health Club Memberships. Provides reimbursement for annual or monthly memberships, including personal trainers. Reimbursement of this expense is taxable to the employee. e) Deferred Compensation. The $3,000 excess benefit provided in this section made on a one-time contribution basis on election by the employee towards the employee's City-sponsored 457 Deferred Compensation plan with either ICMA-RC or the Hartford. Amounts designated by employees to either the Medical FSA, Dependent Care FSA, or Professional Development options are done so on a "use -it-or-lose-it" basis. This means that any amounts designated and not used by the end of the calendar year (or end of the extended grace period for the medical FSA) will be forfeited by the employee and returned to the plan. Item 5 Attachment C - MOA - PMA Item 5: Staff Report Pg. 145 Packet Pg. 249 of 627 City of Palo Alto and PAPMA July 1, 2025 – June 30, 2028 Page 15 of 24 Specified amounts under this benefit will be applied on a pro-rata basis for employees who are part- time or who are in a management or professional pay status for less than the full fiscal year. Such benefits will be pro-rated in the first year of employment (based on hire date) but will not be pro- rated upon separation of employment. Section 26 – Management Annual Leave. At the beginning of each calendar year regular management employees will be credited with eighty (80) hours of management annual leave. This leave is granted in recognition of the extra hours management employees work over their regular schedule. This leave may be taken as paid time off, added to vacation accrual (subject to vacation accrual limitations), taken as cash or taken as deferred compensation. When time off is taken under this provision, 10-hour shift workers will receive one shift off for each 8 hours charged; 24-hour shift workers will receive one-half shift off for each 8 hours charged. Entitlement under this provision will be reduced on a prorated basis for part-time status, or according to the number of months in paid status during the fiscal year; employees who have used more than the pro-rated share at the time they leave City service shall be required to repay the balance or have it deducted from their final check. Unused balances as of the end of the calendar year will be paid in cash unless a different option as indicated above is elected by the employee. Section 27 - POST Certificate/Incentive Management POST Certification: Employees that qualify for the Management POST certificate will receive a four percent (4%) increase to base pay effective the first full pay period after the employee provides proof of submission of the required paperwork to POST. Employees become eligible for Management POST certificate pay one (1) year after promotion or appointment to a represented classification. ARTICLE VII – OPERATIONAL ISSUES Section 28 – Management Assignments. The Chief of Police or their designee shall have the authority to make management assignments at their discretion. Where possible, these assignments should take into account the needs of the organization, development of the employee and individual employee desires. Section 29 – Basic Work Schedules. Generally, police managers will be expected to work flexible schedules and reasonably adjust their hours to oversee their employee groups, manage 24/7 law enforcement operations, perform routine work, complete daily assignments, and occasionally attend meetings or other events outside their normal work shifts. Basic work schedules will be the 4/10 schedule. Section 30 – On Duty Workouts. Police managers who complete the yearly Wellness Program requirements may participate in an on-duty workout for a reasonable period as determined by the Chief, as long as it does not interfere with the performance of the employee's job duties, for which the employee will remain accountable. Applicable guidelines and conditions are outlined in the Department's Wellness Program Policy which the City may change from time to time. Item 5 Attachment C - MOA - PMA Item 5: Staff Report Pg. 146 Packet Pg. 250 of 627 City of Palo Alto and PAPMA July 1, 2025 – June 30, 2028 Page 16 of 24 Section 31 – Take Home Emergency Response Vehicles. Subject to approval by the City Manager and the Police Chief, Police Captains will continue the current take home emergency response vehicle program which allows for the immediate and emergent response to public safety incidents involving the City. The specific use and restrictions for driving these vehicles shall adhere to the guidelines outlined in the then current version of City Policy and Procedure 4-01. Section 32 – Modified Duty Assignments. In cases of non-work-related injury, illness or pregnancy, an employee, upon approval of the department head, City Risk Manager and the employee's doctor, may return to work or continue work with doctor-approved limited or alternative duty pursuant to Policy & Procedure 2-04. Approval for reasonable accommodation such as limited/alternative duty shall be based upon department ability to provide work consistent with medical limitations and the length of time of the limitations. The City doctor may be consulted in determining work limitations. Any assignment to a limited/alternative duty will be on a temporary basis. Section 33 – Meal Allowance. Police managers attending night meetings will be eligible for meal re- imbursement under the guidelines set forth in the then current version of City Policy and Procedure No. 1-02. Section 34 – Uniforms. a) The City will supply complete uniforms to all sworn personnel. All uniform items are the property of the City. One complete uniform consists of: (I) three pair of trousers, (2) three short-sleeved shirts with patches and zippers if desired, (3) three long-sleeved shirts with patches and zippers if desired, (4) three cotton or two synthetic fiber turtleneck shirts, (5) hat, (6) duty jacket with patches, (7) dress jacket with patches, (8) necktie, and (9) rain gear. b) At the time of initial employment, every sworn employee will be issued one complete uniform. Uniform items will be replaced on an as-needed basis subject to verification by management. c) The City shall provide uniform cleaning for sworn representation unit personnel. d) Personnel are accountable for all uniform items issued to them. If a particular item is lost or damaged due to employee negligence, the employee will be required to reimburse the City for value of the item(s) lost or damaged. e) The City shall reimburse employees for the full cost of job-related boots upon verification of such purchase by the employees. The City will make the reimbursement only upon proof that the previous boots have become unserviceable due to wear or damage. (Job-related boots shall mean well-constructed, high topped boots that provide full ankle and foot support, which are selected from list agreed to by Management and the Association.) Employees are responsible for the full cost of any low-top, black shoes that are worn with the uniform. Item 5 Attachment C - MOA - PMA Item 5: Staff Report Pg. 147 Packet Pg. 251 of 627 City of Palo Alto and PAPMA July 1, 2025 – June 30, 2028 Page 17 of 24 ARTICLE VIII – ASSOCIATION AGREEMENTS Section 35 – Association Security. a) When a person is hired in any of the covered job classifications, the City shall notify that person that the Association is the recognized bargaining representative for the employee in said Unit and give the employee a current copy of the Memorandum of Agreement. b) If there is no disruption of work, members of the Association Board of Directors may use a reasonable amount of on-duty time without loss of pay to meet with Management specifically related to representation of employees. Such release time must be cleared in advance by the Chief (or their Designee) who is a member of management. For purposes of this section, representation shall include: (i) Meetings with represented employees or management related to a grievance or disciplinary action, including investigation and preparation time. (ii) A meeting with management related to benefits, working conditions or other terms and conditions of employment. Section 36 – Association Representative Access to Work Locations. Employee and non-employee representatives of the Association will be granted access to City work locations to conduct business related to the administration or negotiation of the parties' Memorandum of Understanding, as long as advance arrangements for such visits have been made with the affected department manager and no disruption of work occurs. Advance arrangement shall normally include not less than one hour's notice in the case of an employee Association representative, two hours in the case of non- employee Association representatives. Non-employee representatives must also notify the Human Resources Department Manager (or designee) of the time, date and location of the representative's intended visit. Section 37 – Release Time. The Association President or their designee in the representation unit may use a reasonable amount of time without loss of pay for matters related to the bargaining process, labor relations, and administration of the MOA, violations of the MOA, grievances, disciplinary issues, and training for association members. Release time shall normally be approved in advance by the department head and must not detract from the performance of the representative's City job duties, for which they will remain accountable. Section 38 – Use of City Facilities for Association Business. Any use of City facilities shall be governed by the then current version of City Policy and Procedure No. 4-07. Section 39 – Payroll Deduction. The City shall deduct Association membership dues and any other mutually agreed upon payroll deduction from the bi-weekly pay of member employees. The dues deduction must be authorized in writing by the employee on an authorization card acceptable to the City and the Association. The City shall remit the deducted dues to the Association as soon as possible after deduction. Item 5 Attachment C - MOA - PMA Item 5: Staff Report Pg. 148 Packet Pg. 252 of 627 City of Palo Alto and PAPMA July 1, 2025 – June 30, 2028 Page 18 of 24 ARTICLE IX – LEAVE PROGRAMS Section 40 – Sick Leave. a) Statement of Policy. Sick leave shall be allowed and used only in case of actual personal sickness or disability, medical or dental treatment, or as authorized in Subsection (i), personal business chargeable to sick leave. Sick leave may be used for illness in the immediate family (spouse, child, parent, parent-in-law, brother, sister, registered domestic partner, or close relative residing in the household of the employee). b) Eligibility. Regular and part-time employees shall be eligible to accrue and use sick leave. c) Accrual. Sick leave shall be accrued bi-weekly provided the employee has been in a pay status for 50 percent or more of a bi-weekly pay period. Sick leave shall be accrued at the rate of 3.7 hours per bi-weekly pay period. d) Accumulation. Sick leave accrual accumulation shall be limited to 1,000 hours with no payoff provision for unused balance at termination. e) Use. Sick leave may be used as needed and approved, to the point of depletion, at which time the employee will no longer receive pay for sick leave. A new employee may, if necessary, use up to forty-eight hours or shift equivalent of sick leave at any time during the first six months of employment. Any negative balances generated by such utilization will be charged against future accrual or deducted from final paycheck in the event of termination. An employee who has been disabled for 60 consecutive days and who is otherwise eligible both for payment under the long-term disability group insurance coverage and accrued sick leave benefits may, at their option, choose either to receive the long-term disability benefits or to utilize the remainder of their accrued sick leave prior to applying for long-term disability benefits. Sick leave will not be granted for illness occurring during any leave of absence other than sick leave, unless the employee can demonstrate that it was necessary to come under the care of a doctor while on such other leave of absence. When an employee finds it necessary to be absent for any reason, they should contact the Department as soon as possible, but no later than the start of the scheduled shift on the first working day of absence, and shall regularly report by the start of each subsequent shift unless hospitalized. Such reports may be subject to written documentation if there is reasonable evidence that sick leave abuse has occurred. Sick leave shall not be granted unless such report or advance accounting has been made, provided, however, that the department head may grant exception to this policy where the circumstances warrant. Item 5 Attachment C - MOA - PMA Item 5: Staff Report Pg. 149 Packet Pg. 253 of 627 City of Palo Alto and PAPMA July 1, 2025 – June 30, 2028 Page 19 of 24 Documentation may also be required if there is a reasonable basis to believe that the employee may not be medically fit to return to work. f) Depletion of Sick Leave Benefits. Upon depletion of sick leave or the beginning of the period to be covered by payments under the long-term disability group insurance coverage, whichever comes first, an employee may be granted a medical leave of absence without pay for a period not exceeding sixty days. If the employee is unable to return to work at the end of this period, they must request further medical leave which will be subject to the approval of the City Manager. If further leave is granted, the employee must notify the City of intent to return to work every thirty days. If further leave is not granted, the employee's service with the City shall be considered terminated. g) Forfeiture Upon Termination. Employees leaving the municipal service shall forfeit all accumulated sick leave, except as otherwise provided by law. In the event that notice of resignation is given, sick leave may be used only through the day which was designated as the final day of work by such notice. h) Personal Business Leave Chargeable to Sick Leave. Employees may use up to thirty (30) hours of sick leave per calendar year for personal business. The scheduling of such leave is subject to the approval of the appropriate level of management. Section 41 – Voluntary Catastrophic Leave Program. If permitted by agreement between the City and the Palo Alto Police Officers' Association (P.O.A.) members of the Palo Alto Police Managers' Association representation unit may participate in the "Voluntary Leave Program" applicable to the P.O.A. representation unit to assist in maintaining the pay of an employee who is eligible by virtue of a qualifying catastrophic medical condition. Such participation, when authorized by City- P.O.A. agreement, shall be allowed only as long as the donors remain anonymous (unless disclosure is required by law). Otherwise, said program shall be governed by the conditions and restrictions set forth in the City-P.O.A. Memorandum of Agreement. Section 42 – Leave of Absence With Pay. The City Manager may grant a regular employee under their control a leave of absence with pay for a period not exceeding thirty calendar days for reasons they deem adequate and in the best interest of the City. The City Council may grant a regular employee a leave of absence with pay for a period not to exceed one year for reasons the Council considers adequate and in the best interest of the City. a) Subpoenas: leave of absence. Regular employees who are subpoenaed in their capacity as a City employee to appear as witnesses on behalf of the State of California or any of its agencies may be granted leaves of absence with pay from their assigned duties until released. The employee shall remit all fees received for such appearances to the City within thirty days from the termination of their service as a witness. Compensation for mileage or subsistence allowance shall not be considered as a fee and shall be retained by the employee. b) Employee's time off to vote. Item 5 Attachment C - MOA - PMA Item 5: Staff Report Pg. 150 Packet Pg. 254 of 627 City of Palo Alto and PAPMA July 1, 2025 – June 30, 2028 Page 20 of 24 Pursuant to Elections Code section 14000, when the employee is unable to vote outside of the employee's work hours, up to two (2) hours' time off with pay to vote at any general or direct primary election shall be granted at the beginning or end of the employee's scheduled shift, whichever allows the most free time for voting and the least time off from the regular working shift. Such time off with pay to vote shall only be granted if the employee provides at least two working days' notice that time off for voting is desired, unless the nature of the employee's schedule prevents the employee from anticipating the need for time off to vote. c) Leave of absence; death in family. Leave of absence with pay of three (3) days may be granted to an employee by the head of their department in the event of death in the employee’s family. For purposes of this section, family is defined as: wife husband son son-in-law daughter daughter-in-law father mother brother brother-in-law sister sister-in-law mother-in-law father-in-law step-father step-mother step-sister step-brother grandfather grandfather-in-law grandmother grandmother-in-law uncle aunt niece nephew registered domestic partner close relative residing in the household of the employee Such leave shall be at full pay and shall not be charged against the employee's accrued vacation or sick leave. Employees may supplement paid bereavement leave with accrued leave (including vacation or sick leave) or unpaid leave to reach a total of five (5) workdays of time off per incident of bereavement. Requests for leave in excess of five (5) days shall be subject to the approval of the City Manager. Approval of additional leave will be based on the circumstances of each request with consideration given to the employee's need for additional time off. d) Jury duty: leave of absence. Employees required to report for jury duty shall be granted a leave of absence with pay from their assigned duties until released by the court, provided the employee remits to the City all fees received for such duties other than mileage or subsistence allowances within thirty days from the termination of their jury service. Section 43 – Leave of Absence Without Pay. a) Disability. Leaves of absence without pay may be granted in cases of disability not covered by sick leave. Pregnancy will be considered as any other disability. Leaves of absence for disability are subject to physicians' verification including diagnosis and medical work restriction. b) Other leaves. Item 5 Attachment C - MOA - PMA Item 5: Staff Report Pg. 151 Packet Pg. 255 of 627 City of Palo Alto and PAPMA July 1, 2025 – June 30, 2028 Page 21 of 24 Leaves of absence without pay is at the discretion and approval of management. Unauthorized leave of absence/job abandonment may result in disciplinary action up to and including termination of employment. During unpaid leaves of absence for disability or other reasons, the employee may elect and the City may require the employee to use accrued paid vacation and sick leave in a manner consistent with state and federal law. All leaves without pay must be approved in advance and in writing by the department to be effective. c) Approval of department head. Leave of absence without pay for one week or less may be granted by the department head, depending on the merit of the individual case. d) Approval by City Manager. Leave of absence without pay in excess of one week's duration may be granted by the City Manager on the merit of the case, but such leave shall not exceed twelve months' duration. e) Absence without leave. Unauthorized leave of absence shall be considered to be without pay, and reductions in the employee's pay shall be made accordingly. Unauthorized leave of absence may result in termination of employment. f) Leave of absence; death outside the immediate family. Leave without pay may be granted a regular employee by their department head in the event of death to family members other than one of the immediate family, such leave to be granted in accordance with Subsections (b), (c), (d) and (e). g) Military leave of absence. State and federal law shall govern the granting of military leaves of absence and the rights of employees returning from such absence. ARTICLE X – EMPLOYEE/EMPLOYER RELATIONS Section 44 – Probationary Period. a) All original appointments to full-time or part-time regular municipal service positions shall be tentative and subject to a probationary period of twelve months for management employees b) The probationary period shall be regarded as part of the testing process and shall be utilized for closely observing the employees work, for securing the effective adjustment of a new employee to their position, and for rejecting any probationary employee whose performance does not meet the acceptable standards of work. c) A report of performance of each probationary employee shall be made by the department head and shown to the probationary employee on or before expiration of the probationary period. d) During the probationary period a new employee may be suspended, demoted or terminated at any time by the appointing authority without cause and without right of appeal or to submit a grievance. Item 5 Attachment C - MOA - PMA Item 5: Staff Report Pg. 152 Packet Pg. 256 of 627 City of Palo Alto and PAPMA July 1, 2025 – June 30, 2028 Page 22 of 24 Section 45 – Disciplinary Action and Unsatisfactory Work or Conduct. Disciplinary action shall be governed by the City’s Merit Rules and Regulation, Palo Alto Police Department Policy 340 on Conduct, the Palo Alto Police Department Internal Affairs and Complaint Investigations Guidelines, and the Police Officer Procedural Bill of Rights Act. Section 46 – Grievance Procedure. a) The City and the Association recognize that early settlement of grievances is essential to sound employee-employer relations. The parties seek to establish a mutually satisfactory method for the settlement of employee grievances, or Association grievances, as provided for below. In presenting a grievance, the aggrieved and/or their representative is assured freedom from restraint, interference, coercion, discrimination or reprisal. b) Definition. A Grievance is: 1. An unresolved complaint or dispute regarding the application or interpretation of this Memorandum of Agreement 2. An appeal from a disciplinary action of any kind against an employee covered by this Memorandum of Agreement. c) Access to the Grievance Procedure. Except as otherwise provided in the Memorandum of Agreement for probationary employees, all employees represented by the Association may file and process a grievance. Such aggrieved employees may be represented by the Association or may represent themselves in preparing and presenting their grievance at any level of review. The Association may file a grievance when an Association right under this Memorandum of Agreement not directly related to an individual employee becomes subject to dispute. d) Conduct of Grievance Procedure. 1. The time limits specified in this Article may be extended by written mutual agreement of the aggrieved employee or the Association and the reviewer concerned. 2. If a decision is not rendered within a stipulated time limit, the aggrieved employee may immediately appeal to the next step. 3. The grievance will be considered settled if the decision at any step is not appealed within the specified time limit. 4. The aggrieved employee or the Association and Human Resources Director may mutually agree in writing to waive any step of the grievance procedure. 5. Written grievances shall be submitted on forms provided by the City or on forms that are mutually agreeable to the City and the Association. 6. Any retroactive monetary arbitrator award or settlement by mutual agreement shall not extend more than ninety (90) days before the date that the grievance was filed in writing at Step 2 below. Item 5 Attachment C - MOA - PMA Item 5: Staff Report Pg. 153 Packet Pg. 257 of 627 City of Palo Alto and PAPMA July 1, 2025 – June 30, 2028 Page 23 of 24 The following steps shall apply: Step I. The aggrieved employee will first attempt to resolve the grievance through informal discussions with their immediate supervisor by the end of the tenth working day following the discovery of or the incident upon which the grievance is based. Every attempt will be made to settle the issue at this level. (Note: For purposes of time limits, the working days are considered to be Monday through Friday, exclusive of City holidays.) Appeals of disciplinary action should be processed through the procedures outlined in Step 2-3 of the Grievance Procedure. Step II. If the grievance is not resolved through the informal discussion, the employee will reduce the grievance to writing and submit copies to the department head or their designee within ten (10) working days of the discussion with the immediate supervisor. The department head or their designee shall have ten (10) working days from the receipt of a written grievance to review the matter and prepare a written statement. Step III. If the grievance is not resolved at Step II, the aggrieved employee may choose between final and binding resolution of the grievance through appeal to the City Manager or through appeal to final and binding grievance arbitration. For the term of this Memorandum of Agreement, appeals to final and binding arbitration may be processed only with Association approval. All Step III appeals must be filed in writing at the Human Resources Department Office within ten (10) working days of receipt of the Step II appeal. If the aggrieved employee elects final and binding resolution by the City Manager, the City Manager will choose the methods they consider appropriate to review and settle the grievance. The City Manager shall render a written decision to all parties directly involved within ten working days after receiving the employee's appeal. If the aggrieved employee elects final and binding arbitration in accordance with this provision, the parties shall mutually select an arbitrator. In the event the parties cannot agree on an arbitrator, they shall mutually request a panel of five arbitrators from the California State Conciliation Service or from the American Arbitration Association if either party objects to the State Conciliation Service, and select an arbitrator by the alternate strike method. The arbitrator shall have jurisdiction and authority only to interpret, apply, or determine compliance with the provisions of this Memorandum of Agreement and such Merit System Rules, regulations, policies, procedures, City ordinances, resolutions relating to terms or conditions of employment, wages or fringe benefits, as may hereafter be in effect in the City insofar as may be necessary to the determination of grievances appealed to the arbitrator. The arbitrator shall be without power to make any decision: 1) Regarding matters of interest. 2) Contrary to, or inconsistent with or modifying in any way, the terms of this Memorandum of Agreement. Item 5 Attachment C - MOA - PMA Item 5: Staff Report Pg. 154 Packet Pg. 258 of 627 City of Palo Alto and PAPMA July 1, 2025 – June 30, 2028 Page 24 of 24 3) Granting any wage increases or decreases. The arbitrator shall be without authority to require the City to delegate or relinquish any powers which by State law or City Charter the City cannot delegate or relinquish. If either party seeks arbitration and the other party claims the matter is not subject to the arbitration provisions of this Memorandum of Agreement, the issue of arbitrability shall first be decided by the arbitrator using the standards and criteria set forth in this section and without regard to the merits of the grievance. If the issue is held to be arbitrable, the arbitration proceedings will be recessed for up to five working days during which the parties shall attempt to resolve the grievance. If no resolution is reached, the arbitrator will resume the hearing and hear and resolve the issue on the merits. Copies of the arbitrator's decision shall be submitted to the City, the aggrieved employee and the Association. All direct costs emanating from the arbitration procedure shall be shared equally by the City and the aggrieved employee or the Association. Section 47 – No Strikes. The Association, its representatives, or members, shall not engage in or cause, instigate, encourage, sanction, or condone a strike, withholding of services, concerted abuse of leave of absence provisions, work stoppage or work slowdown of any kind. No employee shall refuse to cross any picket line in the conduct of Police Department business, nor shall the Association, its representatives, or members discriminate in any way toward anyone who refuses to participate in a strike, or any of the job actions cited above. Section 48 – Reduction in Workforce. In the event of reductions in force, they shall be accomplished wherever possible through attrition. If the work force is reduced in the Association, the City will give an employee impacted by a potential layoff 30 days' notice prior to any reduction in force. ARTICLE XI – LOOKING FORWARD Section 49 – Full Understanding. This Memorandum of Agreement contains the full and entire understanding of the parties regarding the matters set forth herein. The parties agree that they shall each carry out their responsibilities under the MOA in good faith. Section 50 – Legal Compliance/Severability. If any provision herein contained is rendered or declared invalid by reason of existing State or Federal legislation or by reason of State Supreme Court or U.S. Supreme Court ruling, such invalidation of such part or portion of this Memorandum of Agreement shall not invalidate the remaining portions hereof, and they shall remain in full force and effect, insofar as such remaining portions are severable. Section 51 – Duration. The term of this Agreement shall become effective upon ratification and adoption by both parties and shall expire on June 30, 2028. Item 5 Attachment C - MOA - PMA Item 5: Staff Report Pg. 155 Packet Pg. 259 of 627 Memorandum of Agreement City of Palo Alto and July 1, 2025 – June 30, 2028 Item 5 Attachment C - MOA - PMA Item 5: Staff Report Pg. 156 Packet Pg. 260 of 627 City of Palo Alto and PAPMA July 1, 2025 – June 30, 2028 Page 2 of 25 TABLE OF CONTENTS ARTICLE I – PREAMBLE ................................................................................................................... 4 Section 1 – Recognition. .................................................................................................................... 4 Section 2 – Non-Discrimination. ........................................................................................................ 4 ARTICLE II – COMPENSATION ........................................................................................................ 4 Section 3 – Salary. .............................................................................................................................. 4 Section 4 – Working Out of Class Pay. .............................................................................................. 5 Section 5 – Night Shift Differential. .................................................................................................. 5 ARTICLE III – HEALTH CARE BENEFITS ....................................................................................... 6 Section 6 – Active Employee Health Plans. ....................................................................................... 6 Section 7 – Dental Benefits. ............................................................................................................... 7 Section 8 – Vision Care. .................................................................................................................... 7 Section 9 – Basic Life Insurance. ...................................................................................................... 7 Section 10 – Supplemental Life And AD&D Insurance. ................................................................... 8 Section 11 – Effective date of Coverage for New Employees. .......................................................... 8 ARTICLE IV – OTHER BENEFITS ..................................................................................................... 8 Section 12 – Holiday Compensation. ................................................................................................ 8 Section 13 – Vacation. ....................................................................................................................... 8 Section 14 – Long Term Disability. ................................................................................................... 9 Section 15 – Dependent Care Assistance Program. .......................................................................... 9 Section 16 – Medical Flexible Spending Program. .......................................................................... 10 Section 17 – Employee Assistance Plan. .......................................................................................... 10 Section 18 – Commute Incentives and Parking. ............................................................................... 10 Reopener. .......................................................................................................................................... 10 ARTICLE V –RETIREMENT ............................................................................................................. 11 Section 19 – Retirement Benefits. ................................................................................................... 11 Section 20 – Retirement Medical Plan. ........................................................................................... 11 Section 21 – ICMA - Retirement Health Savings Plan. .................................................................. 12 Section 22 – Deferred Compensation Program. .............................................................................. 12 ARTICLE VI – MANAGEMENT BENEFIT PROGRAM ................................................................. 13 Section 23 – Professional Development Reimbursement. ............................................................... 13 Section 24 – Physical Examinations. .............................................................................................. 13 Item 5 Attachment C - MOA - PMA Item 5: Staff Report Pg. 157 Packet Pg. 261 of 627 City of Palo Alto and PAPMA July 1, 2025 – June 30, 2028 Page 3 of 25 Section 25 – Excess Benefit. ............................................................................................................ 14 Section 26 – Management Annual Leave. ....................................................................................... 15 ARTICLE VII – OPERATIONAL ISSUES ....................................................................................... 15 Section 27 – Management Assignments. ......................................................................................... 15 Section 28 – Basic Work Schedules. ............................................................................................... 15 Section 29 – On Duty Workouts. ..................................................................................................... 16 Section 30 – Take Home Emergency Response Vehicles. ............................................................... 16 Section 31 – Modified Duty Assignments. ...................................................................................... 16 Section 32 – Meal Allowance. ........................................................................................................ 16 Section 33 – Uniforms. ..................................................................................................................... 16 ARTICLE VIII – ASSOCIATION AGREEMENTS ........................................................................... 17 Section 34 – Association Security. .................................................................................................. 17 Section 35 – Association Representative Access to Work Locations. ............................................. 17 Section 36 – Release Time. .............................................................................................................. 17 Section 37 – Use of City Facilities for Association Business. ......................................................... 17 Section 38 – Payroll Deduction. ....................................................................................................... 18 ARTICLE IX – LEAVE PROGRAMS ................................................................................................ 18 Section 39 – Sick Leave. .................................................................................................................. 18 Section 40 – Voluntary Catastrophic Leave Program. ..................................................................... 19 Section 41 – Leave of Absence With Pay. ...................................................................................... 19 Section 42 – Leave of Absence Without Pay. .................................................................................. 21 ARTICLE X – EMPLOYEE/EMPLOYER RELATIONS .................................................................. 21 Section 43 – Probationary Period. .................................................................................................... 21 Section 44 – Disciplinary Action and Unsatisfactory Work or Conduct. ........................................ 22 Section 45 – Grievance Procedure. .................................................................................................. 22 Section 46 – No Strikes. ................................................................................................................... 24 Section 47 – Reduction in Workforce. ............................................................................................ 24 ARTICLE XI – LOOKING FORWARD ............................................................................................. 24 Section 48 – Full Understanding. ..................................................................................................... 24 Section 49 – Legal Compliance/Severability. .................................................................................. 24 Section 50 – Duration. ...................................................................................................................... 25 APPENDIX A-1 .................................................................................... Error! Bookmark not defined. Item 5 Attachment C - MOA - PMA Item 5: Staff Report Pg. 158 Packet Pg. 262 of 627 City of Palo Alto and PAPMA July 1, 2025 – June 30, 2028 Page 4 of 25 2023 - 2025 MEMORANDUM OF AGREEMENT City of Palo Alto and Palo Alto Police Managers' Association ARTICLE I – PREAMBLE This Memorandum of Agreement is pursuant to and subject to Sections 3500-3510 of the Government Code of the State of California, the Charter of the City of Palo Alto, and the City of Palo Alto Merit System Rules and Regulations. This Memorandum of Agreement made and entered into at Palo Alto, California, by and between the City of Palo Alto, a municipal corporation (hereinafter referred to as "City") and the Palo Alto Police Managers' Association (hereinafter referred to as "Association"), is intended to define agreements reached during the meet and confer process concerning wages, hours, working conditions, and other terms and conditions of employment for the represented group of employees. Section 1 – Recognition. On October 29, 2009, the City of Palo Alto certified the Palo Alto Police Managers' Association (Association) as a bargaining unit within the City. The City recognizes the Association as the exclusive representative of an employee group consisting solely of Police Lieutenants and Police Captains who are regularly employed by the City and others who might be amended into the representation unit from time to time under existing law and the Merit System Rules and Regulations. Section 2 – Non-Discrimination. The City and the Union Association agree that there shall be no discrimination of any kind because of age (over 40), race, creed, color, religion national origin, ancestry), veterans status, physical or mental disability, marital status, sexual orientation, sex (sexual, gender based or gender identity, pregnancy/childbirth), medical condition (cancer related and genetic characteristics), or on any other basis prohibited by applicable federal and State law against any employee or applicant for employment. The Association shall cooperate with the City, to the extent required by federal and State laws and regulations, in furthering the objective of Equal Employment Opportunities, as defined by Federal and State regulations. ARTICLE II – COMPENSATION Section 3 – Salary a)General Salary Increase: Effective the first full pay period including the adoption of the MOA, the salary ranges of all represented classifications will be increased by three percent (3%). b)Market Adjustment: Effective the first full pay period including following City Council Adoption the adoption of the MOA, salary ranges of all bargaining unit classifications will Item 5 Attachment C - MOA - PMA Item 5: Staff Report Pg. 159 Packet Pg. 263 of 627 City of Palo Alto and PAPMA July 1, 2025 – June 30, 2028 Page 5 of 25 be increased by five one percent (15.0%), which is sufficient to bring them to the top quartile of market median as determined by the City’s market study. c)General Salary Increase: Effective the first full pay period following July 1, 2023 2026, salary ranges of all represented classifications will be increased by four three percent (3.04.0%). d)Market Adjustment: Effective the first full pay period following July 1, 2026, the salary ranges of all represented classifications will be increased by one percent (1%). e)General Salary Increase: Effective the first full pay period following July 1, 2024 2027, salary ranges of all represented classifications will be increased by four three percent (3.04.0%). f)Market Adjustment: Effective the first full pay period following July 1, 2027, the salary ranges of all represented classifications will be increased by one percent (1%). g)Flexible Compensation: Effective January 1, 2023 the first full pay period following City Council Adoption, and in lieu of an increase to the City contribution towards medical premiums, each represented classification will have had their monthly income increased by $100. h)Flexible Compensation: Effective the first full pay period following January 1, 2024, and in lieu of an increase to the City contribution towards medical premiums, each represented classification will have had their monthly income increased by an additional $100 (Total of $200). Section 4 – Working Out of Class Pay. Lieutenants or Captains fulfilling the role of an acting captain, assistant chief, or chief for individual shifts and/or a number of hours within a shift, shall not receive additional compensation. Periodically working in this capacity shall be deemed a basic duty within an employee's job description. Lieutenants and Captains working out of class for a period of four or more consecutive shifts shall be compensated at the start of the pay period with premium pay determined by the Chief of Police or his/her their designee up to 10% of base pay. In accordance with Government Code 20480, an employee assigned to work in an out-of-class appointment may not exceed 960 hours worked in the appointment within a fiscal year if the employee is appointed to an upgraded position or higher classification that is vacant during recruitment for a permanent appointment. This limitation does not apply to a position that is temporarily available due to a leave of absence. Section 5 – Night Shift Differential. Night shift differential shall be paid at the rate of 5% to all personnel for all hours worked between 6:00 p.m. and 8:00 a.m. Item 5 Attachment C - MOA - PMA Item 5: Staff Report Pg. 160 Packet Pg. 264 of 627 City of Palo Alto and PAPMA July 1, 2025 – June 30, 2028 Page 6 of 25 ARTICLE III – HEALTH CARE BENEFITS Section 6 – Active Employee Health Plans. The maximum City contribution towards medical premiums for eligible full-time employees per employee category shall be up to a maximum of the following for any plan: Medical Premium Category Contribution* Total Maximum City Contribution (inclusive of PEMHCA contribution) effective First month the first full pay period including City Council Adoption Employee Only $151.00 $871 $943 Employee plus one $151.00 $1,742 $1885 Employee Family $151.00 $2,260 $2444 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 Employee Only $151.00 $962 Employee plus one $151.00 $1942 Employee Family $151.00 $2566 Item 5 Attachment C - MOA - PMA Item 5: Staff Report Pg. 161 Packet Pg. 265 of 627 City of Palo Alto and PAPMA July 1, 2025 – June 30, 2028 Page 7 of 25 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 Employee Only $151.00 $1000 Employee plus one $151.00 $2020 Employee Family $151.00 $2669 *Total City contribution includes both PEMHCA minimum contributions pursuant to Government Code section 22892 and an additional City contribution necessary to pay the cost of medical premiums up to the amount listed in the "Total maximum City contribution" columns above. Section 7 – Dental Benefits. a) The City will maintain the present level of benefits on the City-sponsored dental program for current employees and their dependents, except that the maximum benefits per calendar year shall be $2,000 effective in 1988. Dental Coverage shall include composite (tooth colored) fillings for all teeth. Effective July 1, 2007, the City will provide 50% of reasonable charges, $2,000 lifetime maximum orthodontic benefit for representation unit employees and their dependents. b) Dependents will include domestic partners, as defined in the Active Employee Domestic Partners Section below. c) During the term of the agreement, the City and the Union will work together to review benefit provisions of the City's self-funded dental program. The purpose of this review is to contain benefit cost increases. Joint recommendations will be prepared for discussion during successor agreement negotiations. d) Dental implants in conjunction with one or more missing natural teeth, and removal of dental implants will be covered as a Major Dental Service at 50% usual, customary and reasonable (UCR). Section 8 – Vision Care. The City will offer vision care coverage for employees and dependents. Coverage is equivalent to $20 deductible Plan A under the Vision Service Plan, with monthly premiums paid by the employer. Dependents will include domestic partners, as defined in the Active Employee Domestic Partners Section below. Section 9 – Basic Life Insurance. The City shall provide a basic group term life insurance with Accidental Death and Dismemberment (AD&D) coverage, in an amount equal to the employee's Item 5 Attachment C - MOA - PMA Item 5: Staff Report Pg. 162 Packet Pg. 266 of 627 City of Palo Alto and PAPMA July 1, 2025 – June 30, 2028 Page 8 of 25 annual basic pay (rounded to the next highest $1,000) at no-cost to the employee. AD&D pays an additional amount equal to the employee's annual basic pay (rounded to the next highest $1,000). Section 10 – Supplemental Life And AD&D Insurance. An employee may, at his/her their cost, purchase additional life insurance and additional AD&D coverage equal to one-or two-times his or her annual salary. The maximum amount of life insurance available to the employee is up to $325,000 and the maximum amount of AD&D coverage available is up to $325,000. Section 11 – Effective date of Coverage for New Employees. For newly hired regular employees coverage begins on the first day of the month following date of hire for the health plan, dental plan, vision care plan, and life insurance plans if these benefits are elected. ARTICLE IV – OTHER BENEFITS Section 12 – Holiday Compensation. Police Managers will receive the twelve (12) paid City holidays outlined in the City of Palo Alto Merit Rules. Floating Holiday – Days of Historical Significance. Employees will be provided one floating holiday each calendar year in acknowledgement of days of historical significance. The employee with prior approval from their supervisor can use this floating holiday at any time during the year. This holiday has no cash value and will expire if unused. Section 13 – Vacation. a) Vacation Accrual. Vacation will be accrued when an employee is in pay status and will be credited on a bi-weekly basis. Total vacation accrual at any one time may not exceed three times the annual rate of accrual. Each eligible employee shall accrue vacation at the following rate for continuous service performed in pay status: 1. Less than nine (9) years - For employees completing less than nine (9) years continuous service; one hundred twenty (120) hours vacation leave per year. The City Manager may adjust the annual vacation accrual of employees hired on or after July 1, 2001 to provide up to forty (40) additional hours (i.e. to a maximum annual accrual of one hundred sixty (160) hours) for service with a prior employer. 2. Nine (9), but less than fourteen (14) years - For employees completing nine (9), but not more than fourteen (14) years continuous service; one hundred sixty (160) hours vacation leave per year. 3. Fourteen (14), but less than nineteen (19) years - For employees completing fourteen (14), but not more than nineteen (19) years continuous service; one hundred eighty (180) hours vacation leave per year. Item 5 Attachment C - MOA - PMA Item 5: Staff Report Pg. 163 Packet Pg. 267 of 627 City of Palo Alto and PAPMA July 1, 2025 – June 30, 2028 Page 9 of 25 4. Nineteen (19) or more years - For employees completing nineteen (19) or more years continuous service; two hundred (200) hours vacation leave per year. b) Vacation Use. Vacation use by police managers will be subject to approval by the Chief of Police or his/her their designee. All reasonable efforts will be made to approve vacation requests while maintaining appropriate oversight of public safety operations. Employees shall complete six months continuous service before using accrued vacation leave. c) Vacation Cashout. Once each calendar year an employee may cash out eight (8) or more hours of vacation accrual in excess of eighty (80) hours from a minimum of eight (8) hours to a maximum of one hundred (120) hours, provided that the employee has taken at least eighty (80) hours of vacation in the previous twelve (12) months. Effective for the 2012 tax year and each subsequent year, employees must pre-elect an irrevocable number of vacation hours they will cash out during the upcoming year, up to a maximum of one hundred twenty (120) hours, prior to the start of the calendar year. Employees who do not pre- designate or elect to cash out hours will be deemed to have waived the right to cash out any vacation leave in the following year. Employees who pre-designate cash out amounts may request a cash out at any time in the designated tax year by submitting a cash out form to payroll. For employees who have not requested payment of pre-designated cash out amounts by November 1 of each year, Payroll will automatically cash out the pre-designated amount in a paycheck issued on or after November 1. d) Vacation Pay at Termination. Employees leaving the municipal service with accrued vacation leave shall be paid the amounts of accrued vacation to the date of termination. Payments for accrued vacation shall be at the employee's current rate of pay. e) Vacation Benefits for Deceased Employees. An employee who is eligible for vacation leave and who dies while in the municipal service shall have the amount of any accrued vacation paid to the employee's estate within thirty days. This proration will be computed at the last basic rate of pay. Section 14 – Long Term Disability. The City shall provide long term disability (LTD) insurance with a benefit of 2/3 monthly salary, up to a maximum benefit of $10,000 per month. The City shall pay the premium for the first $6,000 of base monthly salary. For employees whose base monthly salary exceeds $6,000, the employee shall pay the cost of the required premium based upon their monthly salary between $6,000 and $15,000. Section 15 – Dependent Care Assistance Program. The City will provide a Dependent Care Assistance Program for employees according to the provisions of the Federal Economic Recovery Act Item 5 Attachment C - MOA - PMA Item 5: Staff Report Pg. 164 Packet Pg. 268 of 627 City of Palo Alto and PAPMA July 1, 2025 – June 30, 2028 Page 10 of 25 of 1981, Code Sections 125 and 129. The program will be available to representation unit employees beginning with pay period number 1 of 1992, and remain in effect subject to a reasonable minimum participation level and availability of third-party administrative services at a reasonable cost. Section 16 – Medical Flexible Spending Program. The City will provide a Medical Flexible Spending Program for Association members allowing them to use pre-tax deferrals for reimbursement of excess or uncovered medical, dental and vision expenses. The plan will follow existing plan guidelines and conform to all applicable laws and regulations. Section 17 – Employee Assistance Plan. The Employee Assistance Plan (EAP) provides employees with confidential personal counseling, work and family related issues, eldercare, substance abuse, etc. Section 18 – Commute Incentives and Parking. 1. Civic Center Parking. Employees assigned to Civic Center and adjacent work locations. The City will provide a Civic Center Garage parking permit. Employees hired after June 30, 1994 may initially receive a parking permit for another downtown lot, subject to the availability of space at the Civic Center Garage. 2. Alternative Commute Incentives: Employees who qualify may voluntarily elect one commute incentives, including but not limited to the following options, for those using an eligible commute alternative on 60% or more of their scheduled work days per month: a. Public Transit and Vanpool. The City provides tax-free commute incentives up to the current IRS limit, as may be amended from time to time, (currently $125/month) are available through the Commuter Check Direct (CCD) website for employees using Bay Area public transportation or riding in a registered vanpool at least 60% of their scheduled work days. Administration of the Commuter Check benefit shall be subject to the rules and regulations of the third- party administrator. b. Go Pass. The Go Pass program will offer civic center and other downtown-based employees a Caltrans Go Pass that allows unlimited rides on Caltrain in all zones seven days per week, to any City of Palo Alto employee. c. Bicycle. The City will provide employees with a tax-free incentive of $20 per month to eligible employees who ride a bicycle to work. d. Carpool. The City will provide with a taxable incentive of $30 per month to each eligible employee in a carpool with two or more licensed drivers. e. Walk. The City will provide employees with a taxable incentive of $20 per month to eligible employees who walk to work. Reopener. It is the City's interest to reduce single occupancy vehicle trips to the extent possible in order to address current challenges. During the term of this agreement, upon written request by the City, the parties shall meet and confer through the impasse process if necessary on changes to the City's commute incentive and parking program adopted by the City Council. Item 5 Attachment C - MOA - PMA Item 5: Staff Report Pg. 165 Packet Pg. 269 of 627 City of Palo Alto and PAPMA July 1, 2025 – June 30, 2028 Page 11 of 25 ARTICLE V –RETIREMENT Section 19 – Retirement Benefits. A. "3%@50" Safety Retirement (Employees hired on or before December 7, 2012) For employees hired by the City of Palo Alto on or before December 7, 2012, the California Public Employees' Retirement System (CalPERS) retirement formula benefit known as the "3 percent at 50 (3%@50)," per California Government Code section 21362.2, shall continue in effect with the final salary determination for such employees of the "single highest one (1) year period" per California Government Code section 20042. All unit members in the 3% @ 50 safety retirement plan shall pay the full 9% CalPERS member contribution. This contribution is pre-tax to the extent allowable by law. B. Second Tier "3% at 55" Safety Retirement ("Classic" Employees) For those employees hired on or after December 8, 2012 through December 31, 2012 or are classic members as defined by CalPERS, the CalPERS retirement formula benefit known as the "3 percent at 55 (3%@55)," per Government Code section 21363.1, with the final salary determination for such employees of the "three (3) highest consecutive years" based on the highest average annual compensation earnable by the member during three (3) consecutive years of employment immediately preceding retirement or the three-year period otherwise designated by the member per Government Code section 20037. All unit members in the second tier shall pay the full 9% CalPERS member contribution. This contribution is pre-tax to the extent allowable by law. C. Third Tier "2.7% at 57” Safety Retirement (“New” PEPRA Employees) For those employees hired on or after January 1, 2013, the CalPERS retirement formula benefit known as "2.7 percent at 57 (2.7% at 57)," with the final salary determination for such employees of the "three (3) highest consecutive years." The initial contribution rate will be at least 50% of the normal cost rate at retirement as determined by CalPERS. This contribution is pre-tax to the extent allowable by law. D. Additional Employee PERS Contributions Effective the pay period that includes June 30, 2017, all employees regardless of pension formula in this unit shall, in addition to the Member Contribution required, pay a3% towards the Employer share of Pension. Effective the pay period that includes June 30, 2021, all employees regardless of pension formula in this unit shall, in addition to the Member Contribution required, pay an additional 1% towards the Employer share of Pension for a total of 4%. Such contributions under CalPERS 20516 will be provided on a pre-tax basis to the extent allowable by law. Section 20 – Retirement Medical Plan. A. Retiree Medical Coverage for Unit Employees Hired Before January 1, 2004: Monthly City-paid premium contributions for a retiree-selected PEMHCA optional plan will be made in accordance with the Public Employees' Medical and Hospital Care Act Resolution for employees hired before January 1, 2004 as outlined below. Item 5 Attachment C - MOA - PMA Item 5: Staff Report Pg. 166 Packet Pg. 270 of 627 City of Palo Alto and PAPMA July 1, 2025 – June 30, 2028 Page 12 of 25 For employees who retire before June 1, 2012, the City will pay up to the monthly medical premium for the 2nd most expensive plan offered to PMA employees among the existing array of plans. For employees who retire on or after June 1, 2012, The City contribution towards retiree medical shall be the same contribution amount it makes for active City employees. Effective upon ratification and adoption of this Agreement (Scheduled for January 11, 2016), the City shall provide active unit employees who were hired before January 1, 2004 with a one-time opportunity to opt-in to retiree health benefits provided under California Government Code section 22893. Eligible employees who wish to exercise this option shall inform the People, Strategy, and Operations department of their election in writing no later than 90 days following the ratification and adoption of this Agreement. B. 20-Year Vesting Schedule for Retiree Medical Coverage for Unit Employees Hired on or After January 1, 2004 and employees who chose to opt-in to retiree health benefits provided under California Government Code section 22893 as outlined above: The retiree health benefit provided in California Government Code section 22893 shall apply to all employees hired on or after January I, 2004 and employees who opt-in as outlined above. Under this law, an employee is eligible to receive Fifty (50) percent of benefit after ten (10) years; each additional service credit year after Ten (10) years will increase employer credit by Five (5%) percent until Twenty (20) years is reached at which time employee is eligible for One Hundred (100%) percent of annuitant-only coverage and Ninety (90%) percent of the additional premium for dependents. Section 21 – ICMA - Retirement Health Savings Plan. The City provides an ICMA retirement health savings plan for Association members. The ICMA retirement health savings plan is subject to applicable IRS rules and plan guidelines as well as any other applicable laws. Each Association member shall make a pre-tax contribution to the plan as follows: 1. Each member shall contribute 1% of their base salary bi-weekly into the plan. 2. Failure by each member to contribute will deem the health savings plan out of compliance with IRS and plan guidelines. 3. The administrative fee shall be paid by the Association member. The manner and amount of contributions may be periodically modified by agreement of both parties. Section 22 – Deferred Compensation Program. The City will provide a Deferred Compensation Program for employees according to the provisions of the plans and applicable IRS guidelines. Effective July 1, 2026, the City will contribute $250 monthly to the 457 plan of each represented employee. Effective July 1, 2027, the City will contribute a total of $400 monthly to the 457 plan of each represented employee. Item 5 Attachment C - MOA - PMA Item 5: Staff Report Pg. 167 Packet Pg. 271 of 627 City of Palo Alto and PAPMA July 1, 2025 – June 30, 2028 Page 13 of 25 ARTICLE VI – MANAGEMENT BENEFIT PROGRAM Section 23 – Professional Development Reimbursement. The purpose of this program is to provide employees with resources to improve and supplement their job and professional skills. Reimbursement for authorized self-improvement activities may be granted to each Association employee up to a maximum of five hundred dollars ($500) per fiscal year. A departmental training fund of one thousand dollars per employee ($1,000) will be established for subject matter, leadership or other training that the Department Director identifies as a need for employees within that Department. The following items are eligible for reimbursement: a) Civic and professional association memberships b) Conference participation and travel expenses, which must occur within the compensation plan period. c) Educational programs, books and videos, and tuition reimbursement designed to maintain or improve the employee's skills in performing his/her their job or future job opportunities, should support the City's mission or be necessary to meet the educational requirements for qualification for employment. Permissible educational expenses are refresher courses, courses dealing with current developments, academic or vocational courses, as well as the travel expenses associated with the courses as defined by the City's travel expense report from the Policy & Procedures Manual Section 1-02 ASD. d) Professional and trade journal subscriptions not to exceed 12 months. Approval will be at discretion of department head and signature is required on reimbursement form. Amounts under this professional development program will be pro-rated in the first year of employment or promotion. Section 24 – Physical Examinations. All management and professional employees are eligible to receive an annual physical examination as follows: a) Use the periodic health exam benefit as provided under the PERS Health Plan option you have selected. Each of the PERS Health Plans provides for a periodic physical examination. The examination must be performed by your primary care physician – unless he/she they refers you to another physician. b) The types of tests and the frequency of the tests cannot exceed AMA guidelines. The guidelines are a suggested minimum based on research studies concerning preventative care. The judgment of your physician is the final determinant for your care. c) Any additional necessary asymptomatic tests that are required by your physician that are not covered by your health plan will be reimbursed by the City. Any symptomatic tests will be covered under your PERS Health Plan. The Reimbursement for Periodic Physical Exam Form is available on the Human Resources Intranet site. This benefit will not be pro-rated. Item 5 Attachment C - MOA - PMA Item 5: Staff Report Pg. 168 Packet Pg. 272 of 627 City of Palo Alto and PAPMA July 1, 2025 – June 30, 2028 Page 14 of 25 Section 25 – Excess Benefit. This benefit is designed to meet the requirements of Section 125 of the Internal Revenue Code. Every calendar year, each employee will be provided with $2,500 3,000 annually that they can designate among the following options: a) Medical Flexible Spending Account (Medical FSA). Provides reimbursement for excess medical/dental/vision, or expenses that are incurred by employees and their dependents which are not covered or reimbursed by any other source, including existing City-sponsored plans. This includes prescribed medications and co-payments as well as over-the-counter drugs, including: antacids, allergy medicines, pain relievers and cold medicines. However, nonprescription dietary supplements (e.g. vitamins, etc.) toiletries (e.g. toothpaste), cosmetics (e.g. face cream), and items used for cosmetic purposes (e.g. Rogaine) are not acceptable. b) Dependent Care Flexible Spending Account (Dependent Care FSA). Provides reimbursement for qualified dependent care expenses under the City's Dependent Care Assistance Program (DCAP), subject to the following limits: Dependent care expenses will be reimbursed only to the extent that the amount of such expenses reimbursed under this Management Benefit Program, when added to the amount (if any) of annual dependent care expenses that the participant has elected under the City's Flexible Benefits Plan, do not exceed the maximum permitted under the DCAP. 1) The annual amount submitted for reimbursement cannot exceed the income of the lower-paid spouse. 2) The expenses must be employment-related expenses for the care of one or more dependents who are under 13 years of age and entitled to a dependent deduction under Internal Revenue Code section 151 (e) or a dependent who is physically or mentally incapable of caring for himself or herself. 3) The payments cannot be made to a child under 19 years of age or to a person claimed as a dependent. 4) If the services are provided by a dependent care center, the center must comply with all state and local laws and must provide care for more than six individuals (other than a resident of the facility). 5) Dependent care expenses not submitted under this section are eligible under the City Dependent Care Assistance Plan (DCAP). However, the maximum amount reimbursed under DCAP will be reduced by any amount reimbursed under the Excess Benefit Plan. c) Non-taxable Professional Development Spending Account. Provides reimbursement for Non-Taxable professional development expenses (e.g., job-related training and education, seminars, training manuals, etc.) to the extent they are not paid or reimbursed under any other plan of the City. d) Gym or Health Club Memberships. Provides reimbursement for annual or monthly memberships, including personal trainers. Reimbursement of this expense is taxable to the employee. Item 5 Attachment C - MOA - PMA Item 5: Staff Report Pg. 169 Packet Pg. 273 of 627 City of Palo Alto and PAPMA July 1, 2025 – June 30, 2028 Page 15 of 25 e) Deferred Compensation. The $2,500 3,000 excess benefit provided in this section made on a one-time contribution basis on election by the employee towards the employee's City-sponsored 457 Deferred Compensation plan with either ICMA-RC or the Hartford. Amounts designated by employees to either the Medical FSA, Dependent Care FSA, or Professional Development options are done so on a "use -it-or-lose-it" basis. This means that any amounts designated and not used by the end of the calendar year (or end of the extended grace period for the medical FSA) will be forfeited by the employee and returned to the plan. Specified amounts under this benefit will be applied on a pro-rata basis for employees who are part- time or who are in a management or professional pay status for less than the full fiscal year. Such benefits will be pro-rated in the first year of employment (based on hire date) but will not be pro- rated upon separation of employment. Section 26 – Management Annual Leave. At the beginning of each calendar year regular management employees will be credited with eighty (80) hours of management annual leave. This leave is granted in recognition of the extra hours management employees work over their regular schedule. This leave may be taken as paid time off, added to vacation accrual (subject to vacation accrual limitations), taken as cash or taken as deferred compensation. When time off is taken under this provision, 10-hour shift workers will receive one shift off for each 8 hours charged; 24-hour shift workers will receive one-half shift off for each 8 hours charged. Entitlement under this provision will be reduced on a prorated basis for part-time status, or according to the number of months in paid status during the fiscal year; employees who have used more than the pro-rated share at the time they leave City service shall be required to repay the balance or have it deducted from their final check. Unused balances as of the end of the calendar year will be paid in cash unless a different option as indicated above is elected by the employee. Section 27 - POST Certificate/Incentive Management POST Certification: Employees that qualify for the Management POST certificate will receive a four percent (4%) increase to base pay effective the first full pay period after the employee provides proof of submission of the required paperwork to POST. Employees become eligible for Management POST certificate pay one (1) year after promotion or appointment to a represented classification. ARTICLE VII – OPERATIONAL ISSUES Section 28 – Management Assignments. The Chief of Police or his/her their designee shall have the authority to make management assignments at his/her their discretion. Where possible, these assignments should take into account the needs of the organization, development of the employee and individual employee desires. Section 29 – Basic Work Schedules. Generally, police managers will be expected to work flexible schedules and reasonably adjust their hours to oversee their employee groups, manage 24/7 law enforcement operations, perform routine work, complete daily assignments, and occasionally Item 5 Attachment C - MOA - PMA Item 5: Staff Report Pg. 170 Packet Pg. 274 of 627 City of Palo Alto and PAPMA July 1, 2025 – June 30, 2028 Page 16 of 25 attend meetings or other events outside their normal work shifts. Basic work schedules will be the 4/10 schedule. Section 30 – On Duty Workouts. Police managers who complete the yearly Wellness Program requirements may participate in an on-duty workout for a reasonable period as determined by the Chief, as long as it does not interfere with the performance of the employee's job duties, for which the employee will remain accountable. Applicable guidelines and conditions are outlined in the Department's Wellness Program Policy which the City may change from time to time. Section 31 – Take Home Emergency Response Vehicles. Subject to approval by the City Manager and the Police Chief, Police Captains will continue the current take home emergency response vehicle program which allows for the immediate and emergent response to public safety incidents involving the City. The specific use and restrictions for driving these vehicles shall adhere to the guidelines outlined in the then current version of City Policy and Procedure 4-01. Section 32 – Modified Duty Assignments. In cases of non-work-related injury, illness or pregnancy, an employee, upon approval of the department head, City Risk Manager and the employee's doctor, may return to work or continue work with doctor-approved limited or alternative duty pursuant to Policy & Procedure 2-04. Approval for reasonable accommodation such as limited/alternative duty shall be based upon department ability to provide work consistent with medical limitations and the length of time of the limitations. The City doctor may be consulted in determining work limitations. Any assignment to a limited/alternative duty will be on a temporary basis. Section 33 – Meal Allowance. Police managers attending night meetings will be eligible for meal re- imbursement under the guidelines set forth in the then current version of City Policy and Procedure No. 1-02. Section 34 – Uniforms. a) The City will supply complete uniforms to all sworn personnel. All uniform items are the property of the City. One complete uniform consists of: (I) three pair of trousers, (2) three short-sleeved shirts with patches and zippers if desired, (3) three long-sleeved shirts with patches and zippers if desired, (4) three cotton or two synthetic fiber turtleneck shirts, (5) hat, (6) duty jacket with patches, (7) dress jacket with patches, (8) necktie, and (9) rain gear. b) At the time of initial employment, every sworn employee will be issued one complete uniform. Uniform items will be replaced on an as-needed basis subject to verification by management. c) The City shall provide uniform cleaning for sworn representation unit personnel. d) Personnel are accountable for all uniform items issued to them. If a particular item is lost or damaged due to employee negligence, the employee will be required to reimburse the City for value of the item(s) lost or damaged. e) The City shall reimburse employees for the full cost of job-related boots upon verification of such purchase by the employees. The City will make the reimbursement only upon proof that the previous boots have become unserviceable due to wear or Item 5 Attachment C - MOA - PMA Item 5: Staff Report Pg. 171 Packet Pg. 275 of 627 City of Palo Alto and PAPMA July 1, 2025 – June 30, 2028 Page 17 of 25 damage. (Job-related boots shall mean well-constructed, high topped boots that provide full ankle and foot support, which are selected from list agreed to by Management and the Association.) Employees are responsible for the full cost of any low-top, black shoes that are worn with the uniform. ARTICLE VIII – ASSOCIATION AGREEMENTS Section 35 – Association Security. a) When a person is hired in any of the covered job classifications, the City shall notify that person that the Association is the recognized bargaining representative for the employee in said Unit and give the employee a current copy of the Memorandum of Agreement. b) If there is no disruption of work, members of the Association Board of Directors may use a reasonable amount of on-duty time without loss of pay to meet with Management specifically related to representation of employees. Such release time must be cleared in advance by the Chief (or his/her their Designee) who is a member of management. For purposes of this section, representation shall include: (i) Meetings with represented employees or management related to a grievance or disciplinary action, including investigation and preparation time. (ii) A meeting with management related to benefits, working conditions or other terms and conditions of employment. Section 36 – Association Representative Access to Work Locations. Employee and non-employee representatives of the Association will be granted access to City work locations to conduct business related to the administration or negotiation of the parties' Memorandum of Understanding, as long as advance arrangements for such visits have been made with the affected department manager and no disruption of work occurs. Advance arrangement shall normally include not less than one hour's notice in the case of an employee Association representative, two hours in the case of non- employee Association representatives. Non-employee representatives must also notify the Human Resources Department Manager (or designee) of the time, date and location of the representative's intended visit. Section 37 – Release Time. The Association President or his/her their designee in the representation unit may use a reasonable amount of time without loss of pay for matters related to the bargaining process, labor relations, and administration of the MOA, violations of the MOA, grievances, disciplinary issues, and training for association members. Release time shall normally be approved in advance by the department head and must not detract from the performance of the representative's City job duties, for which he/she they will remain accountable. Section 38 – Use of City Facilities for Association Business. Any use of City facilities shall be governed by the then current version of City Policy and Procedure No. 4-07. Item 5 Attachment C - MOA - PMA Item 5: Staff Report Pg. 172 Packet Pg. 276 of 627 City of Palo Alto and PAPMA July 1, 2025 – June 30, 2028 Page 18 of 25 Section 39 – Payroll Deduction. The City shall deduct Association membership dues and any other mutually agreed upon payroll deduction from the bi-weekly pay of member employees. The dues deduction must be authorized in writing by the employee on an authorization card acceptable to the City and the Association. The City shall remit the deducted dues to the Association as soon as possible after deduction. ARTICLE IX – LEAVE PROGRAMS Section 40 – Sick Leave. a) Statement of Policy. Sick leave shall be allowed and used only in case of actual personal sickness or disability, medical or dental treatment, or as authorized in Subsection (i), personal business chargeable to sick leave. Up to 8 days sSick leave per year may be used for illness in the immediate family (spouse, child, parent, parent-in-law, brother, sister, registered domestic partner, or close relative residing in the household of the employee). b) Eligibility. Regular and part-time employees shall be eligible to accrue and use sick leave. c) Accrual. Sick leave shall be accrued bi-weekly provided the employee has been in a pay status for 50 percent or more of a bi-weekly pay period. Sick leave shall be accrued at the rate of 3.7 hours per bi-weekly pay period. d) Accumulation. Sick leave accrual accumulation shall be limited to 1,000 hours with no payoff provision for unused balance at termination. e) Use. Sick leave may be used as needed and approved, to the point of depletion, at which time the employee will no longer receive pay for sick leave. A new employee may, if necessary, use up to forty-eight hours or shift equivalent of sick leave at any time during the first six months of employment. Any negative balances generated by such utilization will be charged against future accrual or deducted from final paycheck in the event of termination. An employee who has been disabled for 60 consecutive days and who is otherwise eligible both for payment under the long-term disability group insurance coverage and accrued sick leave benefits may, at his/her their option, choose either to receive the long-term disability benefits or to utilize the remainder of his/her their accrued sick leave prior to applying for long-term disability benefits. Sick leave will not be granted for illness occurring during any leave of absence other than sick leave, unless the employee can demonstrate that it was necessary to come under the care of a doctor while on such other leave of absence. When an employee finds it necessary to be absent for any reason, he/she they should contact the Department as soon as possible, but no later than the start of the scheduled shift on the first Item 5 Attachment C - MOA - PMA Item 5: Staff Report Pg. 173 Packet Pg. 277 of 627 City of Palo Alto and PAPMA July 1, 2025 – June 30, 2028 Page 19 of 25 working day of absence, and shall regularly report by the start of each subsequent shift unless hospitalized. Such reports may be subject to written documentation if there is reasonable evidence that sick leave abuse has occurred. Sick leave shall not be granted unless such report or advance accounting has been made, provided, however, that the department head may grant exception to this policy where the circumstances warrant. Documentation may also be required if there is a reasonable basis to believe that the employee may not be medically fit to return to work. f) Depletion of Sick Leave Benefits. Upon depletion of sick leave or the beginning of the period to be covered by payments under the long-term disability group insurance coverage, whichever comes first, an employee may be granted a medical leave of absence without pay for a period not exceeding sixty days. If the employee is unable to return to work at the end of this period, he/she they must request further medical leave which will be subject to the approval of the City Manager. If further leave is granted, the employee must notify the City of intent to return to work every thirty days. If further leave is not granted, the employee's service with the City shall be considered terminated. g) Forfeiture Upon Termination. Employees leaving the municipal service shall forfeit all accumulated sick leave, except as otherwise provided by law. In the event that notice of resignation is given, sick leave may be used only through the day which was designated as the final day of work by such notice. h) Personal Business Leave Chargeable to Sick Leave. Employees may use up to twenty (20) thirty (30) hours of sick leave per calendar year for personal business. The scheduling of such leave is subject to the approval of the appropriate level of management. Section 41 – Voluntary Catastrophic Leave Program. If permitted by agreement between the City and the Palo Alto Police Officers' Association (P.O.A.) members of the Palo Alto Police Managers' Association representation unit may participate in the "Voluntary Leave Program" applicable to the P.O.A. representation unit to assist in maintaining the pay of an employee who is eligible by virtue of a qualifying catastrophic medical condition. Such participation, when authorized by City- P.O.A. agreement, shall be allowed only as long as the donors remain anonymous (unless disclosure is required by law). Otherwise, said program shall be governed by the conditions and restrictions set forth in the City-P.O.A. Memorandum of Agreement. Section 42 – Leave of Absence With Pay. The City Manager may grant a regular employee under his/her their control a leave of absence with pay for a period not exceeding thirty calendar days for reasons he/she they deems adequate and in the best interest of the City. The City Council may grant a regular employee a leave of absence with pay for a period not to exceed one year for reasons the Council considers adequate and in the best interest of the City. a) Subpoenas: leave of absence. Item 5 Attachment C - MOA - PMA Item 5: Staff Report Pg. 174 Packet Pg. 278 of 627 City of Palo Alto and PAPMA July 1, 2025 – June 30, 2028 Page 20 of 25 Regular employees who are subpoenaed in their capacity as a City employee to appear as witnesses on behalf of the State of California or any of its agencies may be granted leaves of absence with pay from their assigned duties until released. The employee shall remit all fees received for such appearances to the City within thirty days from the termination of his/her their services as a witness. Compensation for mileage or subsistence allowance shall not be considered as a fee and shall be retained by the employee. b) Employee's time off to vote. Pursuant to Elections Code section 14000, when the employee is unable to vote outside of the employee's work hours, up to two (2) hours' time off with pay to vote at any general or direct primary election shall be granted at the beginning or end of the employee's scheduled shift, whichever allows the most free time for voting and the least time off from the regular working shift. Such time off with pay to vote shall only be granted if the employee provides at least two working days' notice that time off for voting is desired, unless the nature of the employee's schedule prevents the employee from anticipating the need for time off to vote. c) Leave of absence; death in family. Leave of absence with pay of three (3) days may be granted to an employee by the head of his/her their department in the event of death in the employee’s family, but shall not exceed a total of six (6) paid work days per calendar year. For purposes of this section, family is defined as: wife husband son son-in-law daughter daughter-in-law father mother brother brother-in-law sister sister-in-law mother-in-law father-in-law step-father step-mother step-sister step-brother grandfather grandfather-in-law grandmother grandmother-in-law uncle aunt niece nephew registered domestic partner close relative residing in the household of the employee Such leave shall be at full pay and shall not be charged against the employee's accrued vacation or sick leave. Employees may supplement paid bereavement leave with accrued leave (including vacation or sick leave) or unpaid leave to reach a total of five (5) workdays of time off per incident of bereavement. Requests for leave in excess of three (3) five (5) days shall be subject to the approval of the City Manager. Approval of additional leave will be based on the circumstances of each request with consideration given to the employee's need for additional time off. d) Jury duty: leave of absence. Employees required to report for jury duty shall be granted a leave of absence with pay from their assigned duties until released by the court, provided the employee remits to the City all fees received for such duties other than mileage or subsistence allowances within thirty days from the termination of his/her their jury service. Item 5 Attachment C - MOA - PMA Item 5: Staff Report Pg. 175 Packet Pg. 279 of 627 City of Palo Alto and PAPMA July 1, 2025 – June 30, 2028 Page 21 of 25 Section 43 – Leave of Absence Without Pay. a) Disability. Leaves of absence without pay may be granted in cases of disability not covered by sick leave. Pregnancy will be considered as any other disability. Leaves of absence for disability are subject to physicians' verification including diagnosis and medical work restriction. b) Other leaves. Leaves of absence without pay is at the discretion and approval of management. Unauthorized leave of absence/job abandonment may result in disciplinary action up to and including termination of employment. During unpaid leaves of absence for disability or other reasons, the employee may elect and the City may require the employee to use accrued paid vacation and sick leave in a manner consistent with state and federal law. All leaves without pay must be approved in advance and in writing by the department to be effective. c) Approval of department head. Leave of absence without pay for one week or less may be granted by the department head, depending on the merit of the individual case. d) Approval by City Manager. Leave of absence without pay in excess of one week's duration may be granted by the City Manager on the merit of the case, but such leave shall not exceed twelve months' duration. e) Absence without leave. Unauthorized leave of absence shall be considered to be without pay, and reductions in the employee's pay shall be made accordingly. Unauthorized leave of absence may result in termination of employment. f) Leave of absence; death outside the immediate family. Leave without pay may be granted a regular employee by his/her their department head in the event of death to family members other than one of the immediate family, such leave to be granted in accordance with Subsections (b), (c), (d) and (e). g) Military leave of absence. State and federal law shall govern the granting of military leaves of absence and the rights of employees returning from such absence. ARTICLE X – EMPLOYEE/EMPLOYER RELATIONS Section 44 – Probationary Period. a) All original appointments to full-time or part-time regular municipal service positions shall be tentative and subject to a probationary period of twelve months for management employees Item 5 Attachment C - MOA - PMA Item 5: Staff Report Pg. 176 Packet Pg. 280 of 627 City of Palo Alto and PAPMA July 1, 2025 – June 30, 2028 Page 22 of 25 b) The probationary period shall be regarded as part of the testing process and shall be utilized for closely observing the employees work, for securing the effective adjustment of a new employee to his/her their position, and for rejecting any probationary employee whose performance does not meet the acceptable standards of work. c) A report of performance of each probationary employee shall be made by the department head and shown to the probationary employee on or before expiration of the probationary period. d) During the probationary period a new employee may be suspended, demoted or terminated at any time by the appointing authority without cause and without right of appeal or to submit a grievance. Section 45 – Disciplinary Action and Unsatisfactory Work or Conduct. Disciplinary action shall be governed by the City’s Merit Rules and Regulation, Palo Alto Police Department Policy 340 on Conduct, the Palo Alto Police Department Internal Affairs and Complaint Investigations Guidelines, and the Police Officer Procedural Bill of Rights Act. Section 46 – Grievance Procedure. a) The City and the Association recognize that early settlement of grievances is essential to sound employee-employer relations. The parties seek to establish a mutually satisfactory method for the settlement of employee grievances, or Association grievances, as provided for below. In presenting a grievance, the aggrieved and/or his/her their representative is assured freedom from restraint, interference, coercion, discrimination or reprisal. b) Definition. A Grievance is: 1. An unresolved complaint or dispute regarding the application or interpretation of this Memorandum of Agreement 2. An appeal from a disciplinary action of any kind against an employee covered by this Memorandum of Agreement. c) Access to the Grievance Procedure. Except as otherwise provided in the Memorandum of Agreement for probationary employees, all employees represented by the Association may file and process a grievance. Such aggrieved employees may be represented by the Association or may represent themselves in preparing and presenting their grievance at any level of review. The Association may file a grievance when an Association right under this Memorandum of Agreement not directly related to an individual employee becomes subject to dispute. d) Conduct of Grievance Procedure. 1. The time limits specified in this Article may be extended by written mutual agreement of the aggrieved employee or the Association and the reviewer concerned. 2. If a decision is not rendered within a stipulated time limit, the aggrieved employee may immediately appeal to the next step. 3. The grievance will be considered settled if the decision at any step is not appealed within the specified time limit. Item 5 Attachment C - MOA - PMA Item 5: Staff Report Pg. 177 Packet Pg. 281 of 627 City of Palo Alto and PAPMA July 1, 2025 – June 30, 2028 Page 23 of 25 4. The aggrieved employee or the Association and Human Resources Director may mutually agree in writing to waive any step of the grievance procedure. 5. Written grievances shall be submitted on forms provided by the City or on forms that are mutually agreeable to the City and the Association. 6. Any retroactive monetary arbitrator award or settlement by mutual agreement shall not extend more than ninety (90) days before the date that the grievance was filed in writing at Step 2 below. The following steps shall apply: Step I. The aggrieved employee will first attempt to resolve the grievance through informal discussions with his/her their immediate supervisor by the end of the tenth working day following the discovery of or the incident upon which the grievance is based. Every attempt will be made to settle the issue at this level. (Note: For purposes of time limits, the working days are considered to be Monday through Friday, exclusive of City holidays.) Appeals of disciplinary action should be processed through the procedures outlined in Step 2-3 of the Grievance Procedure. Step II. If the grievance is not resolved through the informal discussion, the employee will reduce the grievance to writing and submit copies to the department head or his/her their designee within ten (10) working days of the discussion with the immediate supervisor. The department head or his/her their designee shall have ten (10) working days from the receipt of a written grievance to review the matter and prepare a written statement. Step III. If the grievance is not resolved at Step II, the aggrieved employee may choose between final and binding resolution of the grievance through appeal to the City Manager or through appeal to final and binding grievance arbitration. For the term of this Memorandum of Agreement, appeals to final and binding arbitration may be processed only with Association approval. All Step III appeals must be filed in writing at the Human Resources Department Office within ten (10) working days of receipt of the Step II appeal. If the aggrieved employee elects final and binding resolution by the City Manager, the City Manager will choose the methods he/she they considers appropriate to review and settle the grievance. The City Manager shall render a written decision to all parties directly involved within ten working days after receiving the employee's appeal. If the aggrieved employee elects final and binding arbitration in accordance with this provision, the parties shall mutually select an arbitrator. In the event the parties cannot agree on an arbitrator, they shall mutually request a panel of five arbitrators from the California State Conciliation Service or from the American Arbitration Association if either party objects to the State Conciliation Service, and select an arbitrator by the alternate strike method. The arbitrator shall have jurisdiction and authority only to interpret, apply, or determine compliance with the provisions of this Memorandum of Agreement and such Merit System Rules, regulations, Item 5 Attachment C - MOA - PMA Item 5: Staff Report Pg. 178 Packet Pg. 282 of 627 City of Palo Alto and PAPMA July 1, 2025 – June 30, 2028 Page 24 of 25 policies, procedures, City ordinances, resolutions relating to terms or conditions of employment, wages or fringe benefits, as may hereafter be in effect in the City insofar as may be necessary to the determination of grievances appealed to the arbitrator. The arbitrator shall be without power to make any decision: 1) Regarding matters of interest. 2) Contrary to, or inconsistent with or modifying in any way, the terms of this Memorandum of Agreement. 3) Granting any wage increases or decreases. The arbitrator shall be without authority to require the City to delegate or relinquish any powers which by State law or City Charter the City cannot delegate or relinquish. If either party seeks arbitration and the other party claims the matter is not subject to the arbitration provisions of this Memorandum of Agreement, the issue of arbitrability shall first be decided by the arbitrator using the standards and criteria set forth in this section and without regard to the merits of the grievance. If the issue is held to be arbitrable, the arbitration proceedings will be recessed for up to five working days during which the parties shall attempt to resolve the grievance. If no resolution is reached, the arbitrator will resume the hearing and hear and resolve the issue on the merits. Copies of the arbitrator's decision shall be submitted to the City, the aggrieved employee and the Association. All direct costs emanating from the arbitration procedure shall be shared equally by the City and the aggrieved employee or the Association. Section 47 – No Strikes. The Association, its representatives, or members, shall not engage in or cause, instigate, encourage, sanction, or condone a strike, withholding of services, concerted abuse of leave of absence provisions, work stoppage or work slowdown of any kind. No employee shall refuse to cross any picket line in the conduct of Police Department business, nor shall the Association, its representatives, or members discriminate in any way toward anyone who refuses to participate in a strike, or any of the job actions cited above. Section 48 – Reduction in Workforce. In the event of reductions in force, they shall be accomplished wherever possible through attrition. If the work force is reduced in the Association, the City will give an employee impacted by a potential layoff 30 days' notice prior to any reduction in force. ARTICLE XI – LOOKING FORWARD Section 49 – Full Understanding. This Memorandum of Agreement contains the full and entire understanding of the parties regarding the matters set forth herein. The parties agree that they shall each carry out their responsibilities under the MOA in good faith. Section 50 – Legal Compliance/Severability. If any provision herein contained is rendered or declared invalid by reason of existing State or Federal legislation or by reason of State Supreme Court or U.S. Supreme Court ruling, such invalidation of such part or portion of this Memorandum of Item 5 Attachment C - MOA - PMA Item 5: Staff Report Pg. 179 Packet Pg. 283 of 627 City of Palo Alto and PAPMA July 1, 2025 – June 30, 2028 Page 25 of 25 Agreement shall not invalidate the remaining portions hereof, and they shall remain in full force and effect, insofar as such remaining portions are severable. Section 51 – Duration. The term of this Agreement shall become effective upon ratification and adoption by both parties and shall expire on June 30, 2025 2028. Item 5 Attachment C - MOA - PMA Item 5: Staff Report Pg. 180 Packet Pg. 284 of 627 Job Code FLSA Classification Grade Code Min Hourly Rate Mid Hourly Rate Max Hourly Rate Approx Max Monthly Salary Approx Max Annual Salary 147 Exempt Police Captain‐Adv 023 $ 99.56 $ 124.45 $ 149.34 $ 25,886 $ 310,627 149 Exempt Police Liet‐Adv 086 $ 89.07 $ 111.33 $ 133.60 $ 23,157 $ 277,888 Job Code FLSA Classification Grade Code Min Hourly Rate Mid Hourly Rate Max Hourly Rate Approx Max Monthly Salary Approx Max Annual Salary 147 Exempt Police Captain‐Adv 023 $ 103.55 $ 129.43 $ 155.32 $ 26,922 $ 323,066 149 Exempt Police Liet‐Adv 086 $ 92.64 $ 115.79 $ 138.95 $ 24,085 $ 289,016 Job Code FLSA Classification Grade Code Min Hourly Rate Mid Hourly Rate Max Hourly Rate Approx Max Monthly Salary Approx Max Annual Salary 147 Exempt Police Captain‐Adv 023 $ 107.69 $ 134.61 $ 161.54 $ 28,000 $ 336,003 149 Exempt Police Liet‐Adv 086 $ 96.35 $ 120.43 $ 144.52 $ 25,050 $ 300,602 Effective 08/09/2025 (4% Increase) Effective First Full Pay Period Following July 1, 2026 (7/11/2026 ‐ 4% Increase) Effective First Full Pay Period Following July 1, 2027 (7/10/2027 ‐ 4% Increase) Palo Alto Police Managers' Association (PAPMA) Salary Schedule Item 5Attachment D - SalarySchedule - PMA Item 5: Staff Report Pg. 181 Packet Pg. 285 of 627 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Administrative Services Meeting Date: August 11, 2025 Report #:2507-4970 TITLE Adoption of a Resolution Establishing Fiscal Year 2026 Property Tax Levy for General Obligation Bonds (Measure N Libraries)) RECOMMENDATION Staff recommends that the City Council approve a resolution approving the establishment of the Fiscal Year 2026 property tax levy of $7.45 per $100,000 in Assessed Value for the secured and utility tax roll and $7.61 per $100,000 in AV for the unsecured tax roll for the City of Palo Alto's Measure N General Obligation Bond Library Bonds. EXECUTIVE SUMMARY In 2008, Palo Alto voters passed Measure N which gave the City authority to issue a maximum amount of $76 million of General Obligation bonds (the "Bonds") for capital improvements (libraries). Annually, a property tax levy sufficient to pay debt service on the Bonds must be approved by the City Council and submitted to the County of Santa Clara for collection with the property taxes. BACKGROUND On November 4, 2008, City voters passed Measure N which gave the City authority to issue a maximum amount of $76 million of General Obligation bonds (the "Bonds") for capital improvements to the Mitchell Park, Downtown, and Rinconada (formerly Main) libraries and to construct the Mitchell Park community center. The City successfully sold the Bonds in two series to provide $76 million in funds for the design and construction costs. Both Standard and Poor's and Moody's awarded their highest credit ratings, Triple A, to both series of Bonds which was affirmed by Standard and Poor’s in May 2022 and Moody’s in December 2024. On March 1, 2016, Council approved the decommissioning of the Library Bond Oversight Committee and accepted a financial report showing approximately $3.0 million in project Item 6 Item 6 Staff Report Item 6: Staff Report Pg. 1 Packet Pg. 286 of 627 savings (CMR: 6632). 1In addition, bond premium of $3.1 million could be used to redeem and/or defease bonds. On June 6, 2016, Council authorized the use of $6.1 million of the Series 2010A & 2013A General Obligation (Measure N) Bonds to defease and/or retire a portion of outstanding bonds and to pay associated redemption costs (CMR: 6993)2. To maximize savings to property owners the longest bonds were paid off; total savings of $11 million were realized which includes $4.9 million in interest savings over time. Of the $11 million, $5.4 million will be saved through FY 2040 while $5.6 million will be saved from FY 2041 through FY 2044. 3. The Series 2010A was refinanced as a tax-exempt bonds and Series 2013A was partially refinanced as taxable bonds. The tax reform bill passed by Congress and signed into law on December 22, 2017 prohibits the issuance of tax-exempt advance refunding bonds during the (ten-year) call protection period. The call protection period had passed on the Series 2010A Bonds, but it had not passed for the Series 2013A Bonds. The portions of the Series 2013A bonds or $2.1 million in principal, that had realized savings were refinance. In total, net present value savings of $4.5 million or 10.6 percent were realized. The cash savings is $6.4 million and average annual debt service savings over 18 years is $356 thousand. There are three General Obligation Bonds outstanding; the portion of the tax-exempt Series 2013A bonds that were not refinanced, the tax-exempt Series 2022A bonds that refinanced the Series 2010A bonds, and the taxable Series 2022B bonds that partially refinanced the Series 2013A bonds. Standard and Poor's affirmed their highest credit ratings, Triple A, to both the issuer or City of Palo Alto’s General Fund credit rating and the long-term rating on the City’s General Obligation Bonds outstanding in May 2022. ANALYSIS 1 City Council, March 21, 2016, CMR 6632: https://www.cityofpaloalto.org/files/assets/public/agendas-minutes- reports/reports/city-manager-reports-cmrs/year-archive/2016/6632-mini-packet.pdf 2 City Council, June 6, 2016, CMR 6993: https://www.cityofpaloalto.org/files/assets/public/agendas-minutes- reports/reports/city-manager-reports-cmrs/year-archive/2016/6993.pdf 3 City Council, May 2, 2022, CMR 13438: https://www.cityofpaloalto.org/files/assets/public/agendas-minutes- reports/agendas-minutes/city-council-agendas-minutes/2022/20220502/20220502pccsmamended-linked.pdf Item 6 Item 6 Staff Report Item 6: Staff Report Pg. 2 Packet Pg. 287 of 627 The assessment rate for FY 2026 is decreasing for both the secured and unsecured property taxes. The rate decreases are attributable to the rise in the Secured AV for properties throughout Palo Alto by 5.0 percent, an increase of $2.5 billion. In addition, the rise in AV during FY 2025, due to property sales and new construction, resulted in excess collections which further reduced the FY 2026 annual assessment. FISCAL/RESOURCE IMPACT STAKEHOLDER ENGAGEMENT ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: Item 6 Item 6 Staff Report Item 6: Staff Report Pg. 3 Packet Pg. 288 of 627 Attachment A Not Yet Approved 1 Resolution No. Resolution of the Council of the City of Palo Alto Establishing Fiscal Year 2026 Property Tax Levy of $7.45 Per $100,000 of Secured and $7.61 Per $100,000 of Unsecured Assessed Valuations for the City’s General Obligation Bond Indebtedness (Measure N Library Projects) R E C I T A L S A. At the City of Palo Alto’s (“City”) general election held on November 4, 2008, more than two‐thirds of voters approved Measure N, authorizing the issuance of general obligation bonds in the amount not to exceed $76,000,000 (the “Authorization”) to fund construction of a new Mitchell Park Library and Community center and renovation and improvements to Downtown and Main libraries. B. Pursuant to the Authorization, the City issued two series (Series 2010A and 2013A) of general obligation bonds in June 2010 and June 2013 that yielded $75.8 million for project needs. In June 2022, the Series 2010A was refinanced with a tax‐exempt Series 2022A and the Series 2013A was partially refinanced with a taxable Series 2022B. As a result, there are three general obligation bonds series outstanding, the Series 2013A portion that wasn’t refinanced and the refinanced Series 2022A and 2022B bonds. C. The City is obligated to levy ad valorem taxes on all property within the City subject to taxation by the City, without limitation on rate or amount (except with respect to certain personal property which is taxed at limited rates), for the payment of the debt service on the Bonds. D. The City is obligated to direct the County of Santa Clara to collect such ad valorem taxes in such amounts and at such times as is necessary to ensure the timely payment of debt service on the Bonds. E. The amount of the annual ad valorem tax levied by the City to repay the Bonds is determined by the relationship between the assessed valuation of taxable property in the City and the amount of debt service due on the bonds. The Council of the City of Palo Alto RESOLVES as follows: SECTION 1. Pursuant to the Authorization, an ad valorem property tax is hereby established to be levied on all land and improvements in the City of Palo Alto during Fiscal Year 2025 in the amount of $0.00745 per $100 in assessed value for the secured and utility tax roll and $0.00761 per $100 in assessed value for the unsecured tax roll based Item 6 Attachment A - Resolution Establishing FY 2024-25 Property Tax Levy Item 6: Staff Report Pg. 4 Packet Pg. 289 of 627 Attachment A Not Yet Approved 2 on the calculations set forth in the attached Exhibit "A". SECTION 2. The City’s Director of Administrative Services shall cause a certified copy of this Resolution to be delivered to the Auditor of the County of Santa Clara for entry in the assessment book of the respective sums in dollars and cents, to be paid as established by this Resolution. SECTION 3. The Council finds that this is not a project under the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk Mayor APPROVED AS TO FORM: APPROVED: Assistant City Attorney City Manager Director of Administrative Services Item 6 Attachment A - Resolution Establishing FY 2024-25 Property Tax Levy Item 6: Staff Report Pg. 5 Packet Pg. 290 of 627 A) Assessed Valuations (AV 1 ) 2025-26 Taxable Secured Assessed Valuation (AV) 51,809,035,097$ 2 ) 2025-26 Taxable Unsecured A 2,365,273,961 3 ) Less: Estimated Delinquenc 0.00% - 4 ) Net Taxable Unsecured AV 2,365,273,961$ 5 ) Total Assessed Valuation (AV 54,174,309,05$ B) Tax Levy Requiremen 5 ) 2026 Calendar Year Debt Service Payments 2013 (Tax-Exempt) GO Bonds - February 1,2026 211,425.00$ 2013 (Tax-Exempt) GO Bonds - August 1, 2026 211,425.00 422,850.00 6 ) 2022A (Tax-Exempt) GO Bonds - February 1,2026 762,625.00$ 7 ) 2022A (Tax-Exempt) GO Bonds - August 1, 2026 2,282,625.00 3,045,250.00 8 ) 2022B (Taxable) GO Bonds - February 1,2026 32,300.00$ 9 ) 2022B (Taxable) GO Bonds - August 1, 2026 552,300.00 584,600.00 10 ) Total Calendar Year 2026 Debt Service Payments 4,052,700.00 11 ) Excess Funds on Hand Applied Toward Debt Service (25,000.00) 12 ) Sub-total 4,027,700.00 13 ) Santa Clara County Administration Fee (0.25% of Principal & Interest) 10,069.25 14 )Total 2025-26 Annual Debt Service Requirement 4,037,769.25 ecure an nsecure ax a e 15 )2025-26 Unsecured Tax Rate per $100 of Unsecured AV (Prior Year's Secured Tax Rate) 0.00761$ 16 )2025-26 Unsecured Tax Rate per $100,000 of Unsecured AV 7.61$ 17 ) 2025-26 Estimated Revenue from Unsecured AV (line 4 divide by 100 times by line 15) 179,997.35$ 18 ) 2025-26 Estimated Revenue from Secured AV (line 14 minus line 17 3,857,771.9 19 ) Total 2025-26 Annual Debt Service Requirement 4,037,769.25$ 20 )2025-26 Secured Tax Rate per $100 of Secured AV (line 18 divided by line 1 times 100) 0.00745$ 21 )2025-26 Secured Tax Rate per $100,000 of Secured AV (line 18 divided by line 1 times 100,000) 7.45$ Exhibit City of Palo Alto General Obligation (GO) Bonds, Election of 2008, Series 2013, 2022A and 2022B Tax Rate Calculation Based on 2025-26 Assessed Values Item 6 Attachment B - Exhibit A - General Obligation Bonds, Election of 2008, Series 2013 2022A, & 2022B Tax Rate Calculation Based on 2024-25 Assessed Values Item 6: Staff Report Pg. 6 Packet Pg. 291 of 627 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Transportation Meeting Date: August 11, 2025 Report #:2505-4723 TITLE Adopt a Resolution to Modify Evergreen Park-Mayfield Residential Preferential Parking Program Employee Permit Allotment and Zone Revisions and Create New Two-Hour Parking Areas Adjacent to El Camino Real; CEQA Status: Exempt pursuant to CEQA Guidelines Sections 15061(b)(3) and 15301. RECOMMENDATION Staff recommends that the City Council: Adopt a resolution to increase the allotment of employee permits from 50 to 65 and redraw Zones A-D to better distribute employee permit parking. The resolution also expands 2-hour parking zones on four streets perpendicular to El Camino Real. Approving these changes to the Evergreen Park-Mayfield (EPM) Residential Preferential Parking (RPP) district will better accommodate changed employee needs while continuing to appropriately distribute impacts of employee parking in line with RPP goals. EXECUTIVE SUMMARY In 2021, Council approved changes to the EPM RPP in order to encourage use of expanded parking supply in the California Avenue business district. In 2024, Council made further modifications to the EPM RPP program to account for the repurposing of parking lanes along El Camino Real, which eliminated on-street parking in Zone G. Employee parking permits from Zone G were therefore allocated to Zones A through D in the EPM neighborhood. Based on observations of on-street parking demand and parking permit sales for the EPM neighborhood, staff recommends further adjustments to Zones A-D in order to create more even on-street availability throughout the neighborhood. In order to better account for parking displacement, staff also recommends increasing the total number of employee permits across the EPM zones from 50 to 65 and expanding 2-hour parking to certain streets perpendicular to El Camino Real. Item 7 Item 7 Staff Report Item 7: Staff Report Pg. 1 Packet Pg. 292 of 627 BACKGROUND On December 15, 2014, Council established a Citywide Residential Preferential Parking (RPP) Ordinance, to reduce parking impacts in residential neighborhoods while also accommodating some non-residential parking demands.1 Based on this ordinance, an RPP was established for the Evergreen Park / Mayfield (EPM) neighborhood including accommodation of a number of employee permits within various zones shown in Figure 1. Figure 1: Evergreen Park - Mayfield Existing Parking Zones Over the past decade, various adjustments have been made to the RPP program as discussed below and summarized in Table 1. Table 1: RPP Program Adjustments Date Action December 15, 2014 Residential Preferential Parking (RPP) Ordinance adopted February 23, 2016 RPP eligibility criteria adjusted 1Ordinance #5294 https://www.cityofpaloalto.org/civicax/filebank/documents/46201 Item 7 Item 7 Staff Report Item 7: Staff Report Pg. 2 Packet Pg. 293 of 627 June 17, 2017 RPP parameters adjusted April 6, 2020 RPP suspended during COVID state of emergency November 2020 Sherman garage completed November 9, 2020 EPM RPP employee parking transitioned to California Ave district November 1, 2021 Pricing adjustment to encourage employee parking in Sherman garage June 2024 Caltrans commences construction on El Camino Real June 18, 2024 August 12, 2024 Transition of Zone G (El Camino Real) employee permits to Zones A - D In November 2020, the City completed construction of a new parking garage at 350 Sherman Avenue which expanded parking supply in the California Avenue parking district through construction of 627 motor vehicle parking spaces (317 net new vehicle spaces) as well as 50 bicycle parking spaces.3 In response to this expanded parking supply, Council approved adjustments to the Evergreen Park-Mayfield RPP program, which transitioned employee permits from the EPM area (Zones A - F) to the California Avenue Business District on November 9, 2020.4 Employee permits were also accommodated in Zone G, along El Camino Real (ECR) also known as State Route 82. On November 1, 2021, Council approved permit pricing changes to set garage and lot permit prices at 75% of employee permit prices for the EPM on-street parking and to focus employee permit availability to Zone G only. Zone G availability was set to 40 permits, with up to 10 more available with the approval of the Direction of the Office of Transportation. This change effectively encouraged district employees to utilize parking spaces in the new garage and increased the availability of on-street spaces for visitors and residents, while still accommodating ECR businesses’ demand for employee parking opportunities. In 2024, the State of California Department of Transportation (Caltrans) commenced construction to rehabilitate and enhance safety along El Camino Real, including roadway repaving, ADA compliant pedestrian push buttons, high visibility crossings and repurposing parking lanes to create protected bikeways in Palo Alto, Los Altos and Mountain View. This work displaced approximately 130 on-street parking spaces on both sides of El Camino including all spaces previously designated as Zone G. To account for this change, on June 18, 2024, and August 12, 2024, Council authorized adjustment of the RPP program to reallocate Zone G employee permit holders to Zones A-D of the EPM neighborhood. Staff recommended 3 SR#11161 https://www.paloalto.gov/files/assets/public/v/1/agendas-minutes-reports/reports/city-manager- reports-cmrs/year-archive/2020-2/id-11716.pdf?t=49950.84 4 https://www.cityofpaloalto.org/gov/depts/trn/parking/residents/evergreen_park_mayfield.asp Item 7 Item 7 Staff Report Item 7: Staff Report Pg. 3 Packet Pg. 294 of 627 allocation of 50 employee permits to Zones A-D based on the following rough estimates of demand: 7 10 to Zone A; 10 to Zone B; 15 to Zone C; and 15 to Zone D. ANALYSIS Reassignment of areas further from El Camino Real to an expanded Zone D; Reassignment of a portion of Park Blvd from Zone B to Zone A; Reduction in the number of employee permits in Zone A; Reassignment of select block segments immediately adjacent to ECR to provide 2 hour commercial parking Increase in the number of employee permits in A-D to 65 total. 7 SR#2407-3203 https://cityofpaloalto.primegov.com/api/compilemeetingattachmenthistory/historyattachment/?historyId=f831f6 4c-80c0-41f8-bedf-9b0d74aced0e Item 7 Item 7 Staff Report Item 7: Staff Report Pg. 4 Packet Pg. 295 of 627 Figure 2: Recommended Evergreen Park - Mayfield Parking Zones (Note the expansion of Zones D and A, and the removal of short block segments adjacent to El Camino Real added as 2-Hour Commercial Zones.) FISCAL/RESOURCE IMPACT Item 7 Item 7 Staff Report Item 7: Staff Report Pg. 5 Packet Pg. 296 of 627 STAKEHOLDER ENGAGEMENT ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: Item 7 Item 7 Staff Report Item 7: Staff Report Pg. 6 Packet Pg. 297 of 627 *NOT YET APPROVED* 1 139_20250731_ts24 Resolution No. ____ Resolution of the Council of the City of Palo Alto Amending and Restating Resolution 10185, Continuing the Evergreen Park-Mayfield Residential Preferential Parking District (RPP) Program to Increase the Number of Employee Permits, Amending the Zones, and Creating 2-Hour Parking Adjacent to El Camino Real R E C I T A L S A. California Vehicle Code Section 22507 authorizes the establishment, by city council action, of permit parking programs in residential neighborhoods for residents and other categories of parkers. B. On December 15, 2014, the Council adopted Ordinance No. 5294, adding Chapter 10.50 to Title 10 (Vehicles and Traffic) of the Palo Alto Municipal Code, which established the city-wide procedures for (RPP) Districts in the city. C. On May 9, 2016, the City Council directed City staff to implement a Residential Preferential Parking program in the Evergreen Park-Mayfield area. D. In July 2016, a stakeholders’ group comprised of Evergreen Park residents and business interests met two times and made its recommendations to the City on the particular rules to be applied to the Evergreen Park-Mayfield RPP District. E. On December 14, 2016, the Planning and Transportation Commission held a public hearing to consider the proposed Evergreen Park-Mayfield residential preferential parking program. F. On January 23, 2017, the Council adopted Resolution No. 9663, which established the Evergreen Park-Mayfield Residential Preferential Parking Program pilot and rescinded existing parking restrictions that conflicted with the restrictions established by this RPP district. G. In October and November 2017, the City conducted a parking occupancy study in the Evergreen Park-Mayfield Residential Preferential Parking Program District and met with residents and stakeholders to receive program feedback. The study found occupancies below 60% in Employee Parking Zones A and B, with areas of higher occupancy closer to businesses. In addition, some businesses were unable to receive Employee Parking Permits under the current limits. H. It is the goal of the City to reduce the impacts of non-resident overflow parking from the commercial areas on the surrounding neighborhoods. Item 7 Attachment A - Resolution of the Council of the City of Palo Alto Amending and Restating Resolution 10185 Item 7: Staff Report Pg. 7 Packet Pg. 298 of 627 *NOT YET APPROVED* 2 139_20250731_ts24 I. On February 5, 2018, the Council adopted Resolution 9739, which continued the Evergreen Park-Mayfield Residential Preferential Parking Program as an ongoing program with modifications to address issues identified in the pilot. J. On November 1, 2021, the City Council adopted Resolution 9997 to eliminate employee parking permits in certain zones, allow the use of virtual permits, and update outdated procedures. K. On August 12, 2024, the City Council adopted Resolution 10185 to remove El Camino Real from this RPP district due to Caltrans’ elimination of parking spaces on El Camino Real upon the installation of bike lanes. L. The City Council now desires to continue amend and restate Resolution 10185 to increase the number of employee permits available, to amend the zone map, and add 2-hour commercial parking to certain streets perpendicular to El Camino Real. NOW, THEREFORE, the Council of the City of Palo Alto RESOLVES, as follows: SECTION 1. Findings. The criteria set forth in Section 10.50.030 of the Palo Alto Municipal Code for designating a Residential Preferential Permit Zone have been met as follows: A. That non-resident vehicles do, or may, substantially interfere with the use of on-street or alley parking spaces by neighborhood residents in that based on observation there are few available parking spaces available midday, while the streets are relatively unoccupied at midnight thus demonstrating the parking intrusion is largely by nonresidents. B. That the interference by the non-resident vehicles occurs at regular and frequent intervals, either daily or weekly, in that the parking intrusion is most severe during daytime hours during the regular workweek. C. That the non-resident vehicles parked in the area of the District create traffic congestion, noise, or other disruption (including shortage of parking spaces for residents and their visitors) that disrupts neighborhood life in that based on information from residents and other city departments the vehicle congestion is interfering with regular activities. D. Other alternative parking strategies are not feasible or practical in that the City has implemented a series of alternative parking strategies in the past and concurrently and there is still a shortage of parking available. SECTION 2. Definitions. A. “Dwelling Unit” shall have the same meaning as it is defined in Palo Alto Municipal Code Section 10.50.020. Item 7 Attachment A - Resolution of the Council of the City of Palo Alto Amending and Restating Resolution 10185 Item 7: Staff Report Pg. 8 Packet Pg. 299 of 627 *NOT YET APPROVED* 3 139_20250731_ts24 B. “Evergreen Park-Mayfield Residential Preferential Parking Program District” or “District” shall be that area as shown in Exhibit A to this Resolution. C. “Parking Zones” shall be those areas within the District as shown in Exhibit A to this Resolution. SECTION 3. Parking Restrictions within the District. A. Two-hour Parking Limit and No Re-parking. In the areas within the District listed in Table 1, no person shall park a vehicle adjacent to any curb for more than two hours. Re- parking a vehicle more than two hours after initially parking on the same day in the same Parking Zone is prohibited. These restrictions shall be in effect Monday through Friday from 8:00 AM to 6:00 PM, except holidays as defined in Palo Alto Municipal Code Section 2.08.100. Vehicles properly displaying a valid Parking Permit as described in Section 4 of this Resolution are exempt from these restrictions. TABLE 1 STREET BLOCKS extending from El Camino Real to the B. Exempt vehicles. Vehicles exempt from parking restrictions as described in Palo Alto Municipal Code Section 10.50.070(d) are exempt from the restrictions in this section. Item 7 Attachment A - Resolution of the Council of the City of Palo Alto Amending and Restating Resolution 10185 Item 7: Staff Report Pg. 9 Packet Pg. 300 of 627 *NOT YET APPROVED* 4 139_20250731_ts24 SECTION 4. Parking Permits. A. Employee Parking Permits. The City may issue Employee Parking Permits for use by employees working in the District. Employee Parking Permits shall be subject to the following regulations: a. Duration. Employee Parking Permits shall be available in the form of monthly and/or six-month permits (as determined by the Chief Transportation Official). b. Form of Permit. The City may issue Employee Parking Permits in any form it deems practicable. c. Commuting Only. Employee Parking Permits are valid only when used by employees who are working within the District on the day the permit is used. d. Zones. Employee Parking Permits shall be specific to one of the Parking Zones as specified in Exhibit A and shall entitle the permit holder to park only in the Parking Zone designated on the Employee Parking Permit. e. Maximum Number of Permits Issued. A maximum of 50 Employee Parking Permits shall be granted at any given time to employees who work within the Evergreen Park-Mayfield Residential Preferential Parking District. An additional 15 Employee Parking Permits shall be held in reserve, and may be released for sale, in whole or in part, upon approval of the Chief Transportation Official, in accordance with this subsection e. f. Daily Employee Parking Permits. Daily Employee Parking Permits shall not be issued beginning January 1, 2022. B. Resident Parking Permits. The City may issue Resident Parking Permits to residents of dwelling units within the District. Resident Parking Permits shall be subject to the following regulations: a. Duration. Resident Parking Permits shall be available in the form of annual permits and one-day permits. b. Form of Permit. The City may issue Resident Parking Permits in any form it deems practicable, including stickers, hangtags, and/or virtual permits. c. Zones. Resident Parking Permits shall not be restricted to a specific Parking Zone. Resident Parking Permits shall be valid only in the areas listed in Table 1. d. Maximum Number of Permits per Dwelling Unit. Each dwelling unit within the District shall be limited to five Annual Resident Parking Permits at any given time. These permits may be used by residents or guests within the District. Item 7 Attachment A - Resolution of the Council of the City of Palo Alto Amending and Restating Resolution 10185 Item 7: Staff Report Pg. 10 Packet Pg. 301 of 627 *NOT YET APPROVED* 5 139_20250731_ts24 e. Daily Resident Parking Permits. Each dwelling unit shall be limited to 50 Daily Resident Parking Permits annually. These permits may be in the form of scratcher hangtags, an online issuance system, or such other form as the City determines. Physical permits will state the date through which it is valid. SECTION 5. Parking Permit Fees. The fee for Parking Permits in the District shall be set by the City’s Municipal Fee Schedule. SECTION 6. Other Parking Restrictions. A. Section 2 of Resolution 4051 is repealed and replaced with the restrictions in this Resolution. B. 2 Hour Parking (Existing). The 2 Hour Commercial Area parking restrictions as identified in Exhibit A shall remain in effect. C. 2 Hour Parking (New). This Resolution establishes new 2 Hour Commercial Area parking restrictions along portions of streets that are perpendicular to El Camino Real as described in Table 2 below. In these areas, no person shall park a vehicle adjacent to any curb for more than two hours. Re-parking a vehicle more than two hours after initially parking on the same day is prohibited. These restrictions shall be in effect Monday through Friday from 8:00 AM to 5:00 PM, except holidays as defined in Palo Alto Municipal Code Section 2.08.100. RPP permits are not valid in these areas. Table 2 Street Portion of Street Subject to 2-Hour Parking Real to the second driveway on each D. Conflicting Restrictions. In the event the City should, at a later time, discover conflicting parking restrictions within the District that conflict with the restrictions of this resolution, but are not expressly rescinded, the RPP restrictions of this resolution shall control. However, existing parking restrictions indicated by painted curbs and implemented pursuant to Vehicle Code section 21458 are not superseded by this Resolution and remain in effect. Item 7 Attachment A - Resolution of the Council of the City of Palo Alto Amending and Restating Resolution 10185 Item 7: Staff Report Pg. 11 Packet Pg. 302 of 627 *NOT YET APPROVED* 6 139_20250731_ts24 SECTION 7. Supersede. To the extent any of the provisions of this Resolution are inconsistent with the regulations set forth in Resolution 10185, this Resolution shall control. SECTION 8. CEQA. This Resolution is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of Title 14 of the California Code of Regulations since it can be seen with certainty that there is no possibility the adoption and implementation of this resolution may have a significant effect on the environment and Section 15301 in that this proposed resolution will have a minor impact on existing facilities. SECTION 9. Effective Date. This Resolution shall take effect upon adoption. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: __________________________ __________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: _______________________ ___________________________ Assistant City Attorney City Manager ___________________________ Chief Transportation Official Item 7 Attachment A - Resolution of the Council of the City of Palo Alto Amending and Restating Resolution 10185 Item 7: Staff Report Pg. 12 Packet Pg. 303 of 627 *NOT YET APPROVED* 7 139_20250731_ts24 Exhibit A Item 7 Attachment A - Resolution of the Council of the City of Palo Alto Amending and Restating Resolution 10185 Item 7: Staff Report Pg. 13 Packet Pg. 304 of 627 City Council Staff Report From: City Manager City Clerk Report Type: CONSENT CALENDAR Lead Department: City Clerk Meeting Date: August 11, 2025 Report #:2505-4677 TITLE Adopt a Council Chambers Use Policy as recommended by the Policy and Services Committee and Adopt an Ordinance Adding Use of Council Chambers Fees to the FY 2026 Municipal Fee Schedule; CEQA status -Not a project RECOMMENDATION The Policy and Services Committee recommends that the City Council adopt the attached Council Chambers Use Policy. In addition, staff recommends that the City Council adopt an ordinance to add fees to the FY 2026 Municipal Fee Schedule for the Use of Council Chambers. EXECUTIVE SUMMARY The proposed Council Chambers Use Policy establishes clear guidelines for the use of the Council Chambers, Community Meeting Room, and Flexible Meeting Room. It ensures these spaces are used primarily for official City and government-related functions, sets clear request procedures, and reserves City resources by minimizing liability and operational risks. This policy also includes a Priority 3 category for organizations with City co-sponsorship and adopts fees to help offset potential costs to the City. BACKGROUND On May 13, 2025, staff presented a draft Council Chambers Use Policy to the Policy and Services Committee to address requests from local community-serving organizations and government agencies to use the Chambers for meetings and events. A formal policy will facilitate consistency and transparency in evaluating requests for use. The proposed policy prioritizes official City and government-related functions and provides community access where the City is a co-sponsor. It aims to establish clear and consistent guidelines for reserving and using the Council Chambers, Community Meeting Room and Flexible Meeting Room. Policy and Services Committee recommended the inclusion of organizations co-sponsored by the City as Priority 3 users, along with recommended fees and requirements to safeguard City resources, staff time, and facility conditions. Item 8 Item 8 Staff Report Item 8: Staff Report Pg. 1 Packet Pg. 305 of 627 ANALYSIS The recommended policy reflects the input provided by the Policy and Services Committee and is informed by the best practices previously established by the City. It ensures that the Council Chambers continue to serve its primary function as a space for official government use, while also providing a structure and equitable process for allowing limited use by City co-sponsored events. The Council Chambers, the Community Meeting Room, and Flexible Meeting Room are civic assets intended primarily for official government use, including meetings of the City Council, its Committees, Boards, and Commissions, and City staff. The new policy also allows limited access for other governmental agencies and organizations co-sponsored by the City in accordance with the City’s Co-Sponsorship Policy1 to host public events, under specific conditions. This policy establishes clear eligibility criteria, conditions of use, and request procedures. It also protects the City from liability and provides a consistent, transparent process for non-City users. To preserve the facilities’ primary role in supporting City governance while allowing for limited external use, the policy outlines three (3) tiers of priority: Priority 1: City Council; meetings of Council Committees, Boards, and Commissions; official use by City departments; and legislative bodies where a Councilmember has a seat. Priority 2: Meetings and events hosted by other government agencies. These uses are secondary to official City functions. Priority 3: Meetings and events organized by organizations that have obtained formal City co-sponsorship. These events must be free and open to the public. No solicitation is permitted, and all conditions of co-sponsorship must be followed. Use Limitations and Conditions The Council Chambers remain a dedicated space for official City use and must always be available for emergency or special City Council meetings. All external users must acknowledge that reservations are subject to last-minute cancellation if required for City businesses. The following areas are not available for public use: Kitchen facilities, City Council Conference Room, and City media and A/V production spaces (except under approved conditions with staff available to monitor). Request Procedures All requests for use must be submitted to the City Clerk’s Office no later than 30 days before the event/meeting date and no earlier than 6 months in advance. An Agreement of Use is required for all Priority 2 and Priority 3 users. Final scheduling decisions rest with the City Clerk, 1 Co-Sponsorship Policy, 2016; https://www.paloalto.gov/files/assets/public/v/1/community-services/facility- rentals/reservations-community-centers-fields/city-of-palo-alto-co-sponsorship-policy-final.pdf Item 8 Item 8 Staff Report Item 8: Staff Report Pg. 2 Packet Pg. 306 of 627 who ensures alignment with the City’s operational priorities. If an organizer must cancel their event, written notice must be provided at least 10 days in advance. Cancellations submitted less than 7 days prior will result in forfeiture of the deposit to cover administrative costs. Deposit and Fee Structure Security and Risk Management FISCAL/RESOURCE IMPACT Item 8 Item 8 Staff Report Item 8: Staff Report Pg. 3 Packet Pg. 307 of 627 and work overtime to ensure the facility is in acceptable condition and secured at the end of the event. While the exclusion of kitchen facilities and event equipment limits excessive wear, ongoing maintenance of the space will still be required. The impact on cleaning, utilities, and general janitorial upkeep will depend on the frequency of use. This policy does not include a rental fee for use of the spaces, but recommends a $49 per hour/staff fee when additional staff support is needed. For events requiring A/V system use, a separate IT support fee of $100 per hour applies. The application of the fees will be at the City Clerk’s discretion. The administrative workload will include evaluating requests, scheduling, coordinating logistics with the requester, policy enforcement, depositing refunds, and staff presence when needed. Attachment C amends the FY 2026 municipal fee ordinance to include these fees as part of the schedule. STAKEHOLDER ENGAGEMENT 3. ATTACHMENTS APPROVED BY: 3 May 13, 2025 Policy and Services Committee Meeting, Item 4; link: https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=16098 Item 8 Item 8 Staff Report Item 8: Staff Report Pg. 4 Packet Pg. 308 of 627 Council Chambers Use Policy Page 1 of 5 Revision Date: 5/24/24 City of Palo Alto, Office of the City Clerk – 250 Hamilton Av. (Seventh Floor), Palo Alto, CA 94301 – (650) 329-2571 CITY CLERK’S OFFICE PROCEDURES Council Chambers Use Policy Section 1. OVERVIEW • Purpose • Authority • Use • Requests • Liability/Insurance • Fees • Accommodations • User Responsibilities Section 2. AUTHORITY Palo Alto Municipal Code Sections 2.04.120 through 2.04.150 govern the use of Council Chambers, including the enforcement of decorum during Council meetings, the permitted consumption of food and beverages, and the authorized personnel in the council and staff areas during Council meetings. Further, Palo Alto Municipal Code Section 2.08.075 requires council appointed officers to be responsible for the care and safekeeping of all city-owned property used by or in the custody of the department and to take steps as necessary to ensure that the use or condition of said property does not incur legal liability or loss for the city or its officers and employees. Finally, Palo Alto Municipal Code Section 2.08.110 requires the City Clerk to perform such other duties as the council may require. Section 3. PURPOSE To preserve the functions that City Hall is designed to serve, provide for the orderly use of City facilities, and coordinate multiple users, this policy establishes procedures, requirements, and user responsibilities for the use of the City Council Chambers, including the Community Meeting Room, and Flex Room. Council Chambers is not available for general use by the public. Council Chambers are primarily for official City business but may be available, from time to time, to other government agencies, and organizations receiving Item 8 Attachment A - Council Chambers Use Policy Item 8: Staff Report Pg. 5 Packet Pg. 309 of 627 Council Chambers Use Policy Page 2 of 5 Revision Date: 5/24/24 City of Palo Alto, Office of the City Clerk – 250 Hamilton Av. (Seventh Floor), Palo Alto, CA 94301 – (650) 329-2571 City support in accordance with the City’s Co-Sponsorship Policy, as may be amended. The Council Chambers may only be used in accordance with the Municipal Code and this Policy. Section 4. USE Use of Council Chambers is prioritized as follows: • Priority 1: Public meetings of bodies on which the City Council sit, Council Committees, Boards and Commissions, and use by City staff. • Priority 2: Meetings or Events organized by other government agencies. • Priority 3: City sponsored events and meetings of organizations sponsored by the City in accordance with the City Co-Sponsorship Policy. Events must be free and open to the public. A refundable security deposit in an amount determined by the City Clerk is required. City staff will be present to assist with facility use but will not perform event-related tasks. Events that occur outside of regular City Hall hours may require additional City staffing, at the event organizer’s cost. Security may be required, and the user must hire a licensed, insured security firm approved by the City and provide proof of the event security plan. Section 5. REQUESTS The City Clerk will establish the dates and times in which requests will be accepted. All requests to use the Council Chambers must be submitted in writing to the City Clerk’s Office at City.Clerk@palotalto.gov, including the City Co-Sponsorship application, and an IRS 501(c)(3) status letter, if applicable. The City Clerk will determine whether the applicant meets standards for co- sponsorship status and what benefit level is applicable. This decision made be appealed in accordance with the City Co-Sponsorship Policy. • Use times must account for both set-up and clean-up. • Requests may be submitted up to six (6) months in advance but no later than 30 days prior to the event. • The City reserves the right to cancel requests on short notice where necessary to accommodate emergency or special City meetings or other urgent City business. If the City cancels a request, City staff will attempt to help reschedule. • Cancelations must be submitted in writing at least 10 days prior before the event; cancelations with less than seven days’ notice will result in forfeiture of the security deposit. In no event will the City be liable for any cancellation. Item 8 Attachment A - Council Chambers Use Policy Item 8: Staff Report Pg. 6 Packet Pg. 310 of 627 Council Chambers Use Policy Page 3 of 5 Revision Date: 5/24/24 City of Palo Alto, Office of the City Clerk – 250 Hamilton Av. (Seventh Floor), Palo Alto, CA 94301 – (650) 329-2571 Section 6. LIABILITY/INSURANCE General liability insurance is required for events with 100 or more participants. Proof of coverage must be submitted 14 days before the event; failure to do so will result in cancellation of the request and forfeiture of the deposit. Insurance Requirements: 1. Minimum coverage of $1,000,000 for bodily injury and property damage is required. 2. Include “The City of Palo Alto, its Council members, officers, agents, and “employees” as additional insureds. 3. List the following as the Certificate Holder: o City of Palo Alto 250 Hamilton Avenue Palo Alto, CA 94301 4. Send the Certificate of Insurance to city.clerk@paloalto.gov or mail it to the Office of the City Clerk at the address above. The requirements above apply to security providers, and any other vendor hired by User. Users of the City Council Chambers will be required to submit a signed Facility Use Application with the City Clerk and be subject to its terms. Section 7. FEES Deposit A refundable security deposit of $250 is required for all Priority 2 and 3 requests and is due at the time the request is made to the City Clerk. An assessment of the facility will be conducted within 24 hours after the event and the applicant will be informed of the condition. The security deposit will be refunded after 14 days via check. Refunds of the security deposit may be fully or partially withheld for any of the following reasons: • Damages to the facility • Missing or Damages to equipment • Additional Janitorial Services needed • Additional staff time needed Attendant Fee It is at the discretion of the City Clerk to determine if requests for facility use will require City staff to be present during the event. An hourly attendant fee and/or an overtime fee per staff member may be applied for events that are after hours or during the holidays. This determination will be based on the size, nature, and/or complexity of the event. The amount of the fee will be established by City Council resolution and is non-refundable. Technology Support Fee It is at the discretion of the City Clerk to determine if technology support is required to be approved for the Item 8 Attachment A - Council Chambers Use Policy Item 8: Staff Report Pg. 7 Packet Pg. 311 of 627 Council Chambers Use Policy Page 4 of 5 Revision Date: 5/24/24 City of Palo Alto, Office of the City Clerk – 250 Hamilton Av. (Seventh Floor), Palo Alto, CA 94301 – (650) 329-2571 usage of the Audio and Visual equipment. City staff will be present primarily to supervise the use of the equipment. The amount of the fee will be established by City Council resolution and is non-refundable. Section 8. ACCOMMODATIONS The Council Chambers has a maximum occupancy of 281 and requests must not exceed this limit. Seating is in a theater style, and no additional chairs or tables will be provided. Users are welcome to bring their own event supplies. IT/AV system is available. Use must be requested at booking to ensure staff availability. Users are encouraged to schedule a walkthrough with City staff prior to their event time. Special accommodations needed for guests will be under the sole responsibility of the user. The following are not permitted in Council Chambers: • Consuming food and beverages (PAMC 2.04.140) • Open flames • Pets (excepting service animals) • Smoking and the use of electronic smoking devices inside and within 25 feet of entrances (PAMC 9.14.020) • Any type of drug use The City Clerk may establish additional rules and regulations for the use of the Council Chambers, as may be needed. Section 9. USER RESPONSIBILITIES 9.1 Conduct The user is responsible for all accidents, injuries, damages, and repair costs during their use of the Council Chambers. Access is limited to reserved times and all participants must leave by the scheduled end time. The user must ensure all participants follow City rules, maintain safety, and prevent misconduct or damage. The user or authorized representative must be present during the event and will be the direct contact. Facility use is limited to the Council Chambers, Community Meeting Room, and Flex Conference Room only. Use of Council Conference Room and Media Space is restricted. No one may block entrances, exits, or aisles or create safety hazards. 9.2 Noise Event noise must not exceed 15 dB above ambient levels when measured 25 feet from the Council Chambers (PAMC 9.10.050). Noise must not disrupt City business. Loud noise must end by 11:00 p.m. on Friday and Saturdays and by 9:00 p.m., Sunday through Thursday. 9.3 Decorations & Clean-Up Item 8 Attachment A - Council Chambers Use Policy Item 8: Staff Report Pg. 8 Packet Pg. 312 of 627 Council Chambers Use Policy Page 5 of 5 Revision Date: 5/24/24 City of Palo Alto, Office of the City Clerk – 250 Hamilton Av. (Seventh Floor), Palo Alto, CA 94301 – (650) 329-2571 Storage is not allowed before or after the event. Set-up begins at the designated start time and the space must be cleared by the end time. Only painter’s tape may be used for decorations; all other adhesives and fasteners are prohibited. Users must restore the facility to its original condition, remove all items and trash, and handle cleanup without City staff assistance. The City is not responsible for any items left behind and any cleanup costs or damages will be deducted from the deposit and/or billed to the user. 9.4 Event Shutdown The City reserves the right to terminate any event that becomes disorderly, disruptive, or otherwise violates the Municipal Code, this Policy, the rules established by the City Clerk, or that poses an imminent threat to public health or safety Item 8 Attachment A - Council Chambers Use Policy Item 8: Staff Report Pg. 9 Packet Pg. 313 of 627 Address Last Name First Name Email Address Phone Number City, State, Zip Code Name and Description of Event Expected Attendance: Address Email Address Phone Number Organization Name City, State, Zip Code 501(c)3 Non-Profit: IRS Non-Profit Number: Responsible Person Day of Event If Yes, list Department Name & Contact: List of AV Equipment Needed * Cell # No Yes Applicant's Signature:Date: Terms of Agreement On behalf of the organization and myself, I have read and understand the facility use agreement. I agree to inform persons participating in this proposed activity of the terms and conditions of this agreement, and agree to comply with the conditions set forth herein. I understand that I am responsible for the actions and behavior of my guests, and I assume responsibility for any damages or extra fees that might be incurred due to my guests’ actions or behavior. I further agree to hold harmless and indemnify the City of Palo Alto, its officials, officers, employees and agent for any liability, loss or damage due to personal injury, death or property damage caused by or resulting from activities permitted by this use agreement, excepting that which is caused solely by the negligence, recklessness or willful misconduct of the City, its officials, officers, employees or agent. I have also read and reviewed the conditions on the back of this form. Council Chambers Use Request and Use Agreement Questions? Email city.clerk@paloalto.gov Event Co-Sponsored by City of Palo Alto Use Date Start Time EndTime No Yes *Users are encouraged to bring their own audio/visual equipment. City-owned A/V equipment may not be used without prior authorization and proper supervision. Users may be charged a fee if City staff is needed to operate the A/V system, including speakers, microphones, cameras, etc. Required ConfirmedInsurance OFFICE USE ONLY Required ConfirmedSecurity Approved DeniedApplication Item 8 Attachment B - Council Chambers Use Request and Use Agreement Item 8: Staff Report Pg. 10 Packet Pg. 314 of 627 Conditions: The Council Chambers Use Policy, as may be amended, is incorporated herein by reference and made part of this Facility Use Agreement as if fully set forth herein. All capacity limits must be adhered to and are set by the Fire Marshal. USE Use of Council Chambers is prioritized as follows: • Priority 1: Public meetings of bodies on which the City Council sit, Council Committees, Boards and Commissions, and use by City staff. • Priority 2: Meetings or Events organized by other government agencies. • Priority 3: City sponsored events and meetings of organizations sponsored by the City in accordance with the City Co-Sponsorship Policy. Events must be free and open to the public. A refundable security deposit in an amount determined by the City Clerk is required. City staff will be present to assist with facility use but will not perform event- related tasks. Events that occur outside of regular City Hall hours may require additional City staffing, at the event organizer’s cost. Security may be required, and the user must hire a licensed, insured security firm approved by the City and provide proof of the event security plan. REQUESTS The City Clerk will establish the dates and times in which requests will be accepted. All requests to use the Council Chambers must be submitted in writing to the City Clerk’s Office at City.Clerk@palotalto.gov, including the City Co- Sponsorship application, and an IRS 501(c)(3) status letter, if applicable. The City Clerk will determine whether the applicant meets standards for co‐ sponsorship status and what benefit level is applicable. This decision made be appealed in accordance with the City Co-Sponsorship Policy. • Use times must account for both set-up and clean-up. • Requests may be submitted up to six (6) months in advance but no later than 30 days prior to the event. • The City reserves the right to cancel requests on short notice where necessary to accommodate emergency or special City meetings or other urgent City business. If the City cancels a request, City staff will attempt to help reschedule. • Cancelations must be submitted in writing at least 10 days prior before the event; cancelations with less than seven days’ notice will result in forfeiture of the security deposit. In no event will the City be liable for any cancellation. LIABILITY/INSURANCE General liability insurance is required for events with 100 or more participants. Proof of coverage must be submitted 14 days before the event; failure to do so will result in cancellation of the request and forfeiture of the deposit. Insurance Requirements: 1.Minimum coverage of $1,000,000 for bodily injury and property damage is required. 2.Include “The City of Palo Alto, its Council members, officers, agents, and “employees” as additional insureds. 3.List the following as the Certificate Holder: oCity of Palo Alto 250 Hamilton Avenue Palo Alto, CA 94301 4.Send the Certificate of Insurance to city.clerk@paloalto.gov or mail it to the Office of the City Clerk at the address above. The requirements above apply to security providers, and any other vendor hired by User. Users of the City Council Chambers will be required to submit a signed Facility Use Application with the City Clerk and be subject to its terms. FEES Deposit A refundable security deposit of $250 is required for all Priority 2 and 3 requests and is due at the time the request is made to the City Clerk. An assessment of the facility will be conducted within 24 hours after the event and the applicant will be informed of the condition. The security deposit will be refunded after 14 days via check. Refunds of the security deposit may be fully or partially withheld for any of the following reasons: · Damages to the facility · Missing or Damages to equipment · Additional Janitorial Services needed · Additional staff time needed Attendant Fee It is at the discretion of the City Clerk to determine if requests for facility use will require City staff to be present during the event. An hourly attendant fee and/or an overtime fee per staff member may be applied for events that are after hours or during the holidays. This determination will be based on the size, nature, and/or complexity of the event. The amount of the fee will be established by City Council resolution and is non-refundable. Technology Support Fee It is at the discretion of the City Clerk to determine if technology support is required to be approved for the usage of the Audio and Visual equipment. City staff will be present primarily to supervise the use of the equipment. The fee amount of the fee will be established by City Council resolution and is non-refundable. Special accommodations needed for guests will be under the sole responsibility of the user. The following are not permitted in Council Chambers: • Consuming food and beverages (PAMC 2.04.140) • Open flames • Pets (excepting service animals) • Smoking and the use of electronic smoking devices inside and within 25 feet of entrances (PAMC 9.14.020) • Any type of drug use The City Clerk may establish additional rules and regulations for the use of the Council Chambers, as may be needed. Conduct The user is responsible for all accidents, injuries, damages, and repair costs during their use of the Council Chambers. Access is limited to reserved times and all participants must leave by the scheduled end time. The user must ensure all participants follow City rules, maintain safety, and prevent misconduct or damage. The user or authorized representative must be present during the event and will be the direct contact. Facility use is limited to the Council Chambers, Community Meeting Room, and Flex Conference Room only. Use of Council Conference Room and Media Space is restricted. No one may block entrances, exits, or aisles or create safety hazards. Noise: Event noise must not exceed 15 dB above ambient levels when measured 25 feet from the Council Chambers (PAMC 9.10.050). Noise must not disrupt City business. Loud noise must end by 11:00 p.m. on Friday and Saturdays and by 9:00 p.m., Sunday through Thursday. Decorations: Storage is not allowed before or after the event. Set-up begins at the designated start time and the space must be cleared by the end time. Only painter’s tape may be used for decorations; all other adhesives and fasteners are prohibited. Users must restore the facility to its original condition, remove all items and trash, and handle cleanup without City staff assistance. The City is not responsible for any items left behind and any cleanup costs or damages will be deducted from the deposit and/or billed to the user. Event Shutdown: The City reserves the right to terminate any event that becomes disorderly, disruptive, or otherwise violates the Municipal Code, this Policy, the rules established by the City Clerk, or that poses an imminent threat to public health or safety Item 8 Attachment B - Council Chambers Use Request and Use Agreement Item 8: Staff Report Pg. 11 Packet Pg. 315 of 627 *NOT YET APPROVED* 1 0012_20250723_mv30 Ordinance No. _____ Ordinance of the Council of the City of Palo Alto Amending the Fiscal Year 2026 Municipal Fee Schedule to Add New Fees for the Use of the Council Chambers The Council of the City of Palo Alto ORDAINS as follows: SECTION 1. Findings and Declarations. The City Council finds and declares as follows: A.The City adopted a Council Chamber Use Policy to establish clear guidelines for the use of the Council Chambers, Community Meeting Room, and Flexible Meeting Room (“Council Chambers”). The City will assess a Refundable Cleaning and Damage Deposit of $250.00. B.In addition, users of the Council Chambers may require staff assistance. If so, a $49 attendant fee and a technology assistance fee of $100 per hour per staff member will be charged. C.The fees in this ordinance will help offset the reasonable cost of using City staff. SECTION 2. The Council of the City of Palo Alto amends the Fiscal Year 2026 Municipal Fee Schedule by adopting the new fees for the Use of Council Chambers as set forth in Exhibit “A” and incorporated here by reference. SECTION 3. The fee in this Ordinance is for a specific government service provided directly to the payor that is not provided to those not charged and which does not exceed the reasonable costs to the local government of providing the service or product. Pursuant to Art. XIII C, Section 1(e)(2) of the California Constitution, this fee is not a tax. SECTION 4. The Council finds that this ordinance is not a “project” under CEQA because it has no potential for resulting in either a direct or reasonable foreseeable indirect change in the environment. // // // // // // Item 8 Attachment C - Ordinance Amending the FY 2026 Muni Fee Schedule to Add New Fee Item 8: Staff Report Pg. 12 Packet Pg. 316 of 627 *NOT YET APPROVED* 2 0012_20250723_mv30 SECTION 5. This ordinance shall be effective upon adoption as an amendment to the City’s FY26 budget. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ Assistant City Attorney City Manager ____________________________ City Clerk ____________________________ Director of Administrative Services Item 8 Attachment C - Ordinance Amending the FY 2026 Muni Fee Schedule to Add New Fee Item 8: Staff Report Pg. 13 Packet Pg. 317 of 627 *NOT YET APPROVED* 3 0012_20250723_mv30 Attachment A Fiscal Year 2026 Municipal Fee Schedule City Clerk Fees Item 8 Attachment C - Ordinance Amending the FY 2026 Muni Fee Schedule to Add New Fee Item 8: Staff Report Pg. 14 Packet Pg. 318 of 627 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Planning and Development Services Meeting Date: August 11, 2025 Report #:2505-4688 TITLE Approval of Five (5) On-Call Consulting Contracts to Provide Long Term Planning Policy Development support for the Planning and Development Services over a Five-Year Term, as needed: 1) Aaron Welch Planning, 2) Ascent Environmental, Inc. 3) Lexington Planning LLC, 4) PlaceWorks, Inc., 5) Raimi & Associates Inc. in an amount not to exceed $2,000,000; CEQA Status: Not a Project. RECOMMENDATION Staff recommends that the City Council approve and authorize the City Manager or their designee to execute Contract No. C25193458, C25193458A – C25193458D (Attachments A-E) for consulting services in an amount not to exceed $2,000,000 through June 2030. The firms will provide on-call support associated with long-range planning. The use of the contracts must be consistent with the funding available in the adopted budget(s). The contracts are: 1. C25193458 - Aaron Welch Planning 2. C25193458A - Ascent Environmental, Inc. 3. C25193458B - Lexington Planning LLC 4. C25193458C - PlaceWorks, Inc. 5. C25193458D - Raimi & Associates, Inc. EXECUTIVE SUMMARY The Planning and Development Services (PDS) Department engages consulting firms to expand technical planning capacity to support the delivery of long-range planning initiatives. Through a competitive request for proposal (RFP) process, five firms have been selected to assist for areas, such as project management, community engagement, policy research, technical analysis, and document preparation. Staff recommends City Council approval of five contracts with a combined not to exceed amount of $2,000,000 over a five-year term. The use of these contracts will be subject to available funding within the annually adopted budget. Concurrently, the City Manager is leading an interdepartmental initiative to review and improve the City’s practices where needed in the management of consultant contracts. Outcomes from Item 9 Item 9 Staff Report Item 9: Staff Report Pg. 1 Packet Pg. 319 of 627 that effort will be incorporated into the management of these consultant services throughout the term of these contracts. BACKGROUND Solicitation Process City staff issued a Request for Proposals (RFP) on December 27, 2024, for the provision of planning on-call services. Item 9 Item 9 Staff Report Item 9: Staff Report Pg. 2 Packet Pg. 320 of 627 The proposals were evaluated, and 32 proposals were determined to be responsive to the criteria identified in the RFP. An evaluation committee consisting of PDS managers convened to evaluate the proposals that met the RFP criteria. Five firms were selected for long-range planning on-call support. ANALYSIS Process for Selecting On-Call Consultant Item 9 Item 9 Staff Report Item 9: Staff Report Pg. 3 Packet Pg. 321 of 627 d. Timeline of Service Delivery 4. Selection of Consultant: After a consultant is selected, the firm will be notified, and a task order will be issued finalizing the scope of work, budget, and schedule for delivery. These task orders will be issued in accordance with the terms of the master agreement. Task orders will be reviewed and signed off by the Department Director or designee to ensure an additional check and balance. This internal process will allow the Department to be effective in managing concurrent initiatives while leveraging the capabilities and technical expertise of on-call consultants. FISCAL/RESOURCE IMPACT Use of consultants for specific assistance is an efficient and effective use of resources, allowing the Department to quickly access needed technical skills and advance complex projects. For the Long-Range Planning program, fees collected from permits for Comprehensive Plan Implementation assist with offsetting a portion of State mandated work, such as the Housing Element. Additionally, staff actively monitor and apply for grants to help offset the cost of this work when available. Other discretionary projects as assigned by Council are funded by the General Fund through the annual budget development process and varies year to year. The budget for these contracts is included in the PDS Department’s adopted budget. The use of consultants for planning work is contingent on (1) approved contracts with capacity to support the required scope, and (2) availability of funding in the Department’s approved budget. Staff is not requesting a budget increase. No work will be assigned to consultants under these contracts unless there is sufficient operating budget to cover the costs. STAKEHOLDER ENGAGEMENT Professional planners and managers in the PDS Department participated in the development of this recommendation. ENVIRONMENTAL REVIEW Approval of these contracts is not a project under the California Environmental Quality Act (CEQA); therefore, no environmental review is required. ATTACHMENTS Attachment A: C25193458 - Aaron Welch Planning Attachment B: C25193458A - Ascent Environmental, Inc. Attachment C: C25193458B - Lexington Planning LLC Attachment D: C25193458C - PlaceWorks, Inc. Attachment E: C25193458D - Raimi & Associates, Inc. APPROVED BY: Jonathan Lait, Planning and Development Services Director Item 9 Item 9 Staff Report Item 9: Staff Report Pg. 4 Packet Pg. 322 of 627 Professional Services Rev. Jan 29, 2024 Page 1 of 21 CITY OF PALO ALTO CONTRACT NO. C25193458 AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN THE CITY OF PALO ALTO AND AARON WELCH PLANNING This Agreement for Professional Services (this “Agreement”) is entered into as of the 1st day of July, 2025 (the “Effective Date”), by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and AARON WELCH PLANNING, a sole proprietor, located at 1226 Rose Street Berkeley, CA 94702 (“CONSULTANT”). The following recitals are a substantive portion of this Agreement and are fully incorporated herein by this reference: RECITALS A. CITY intends to provide on-call urban planning support (the “Project”) and desires to engage a consultant to provide services in connection with the Project (the “Services”, as detailed more fully in Exhibit A). B. CONSULTANT represents that it, its employees and subconsultants, if any, possess the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services. C. CITY, in reliance on these representations, desires to engage CONSULTANT to provide the Services as more fully described in Exhibit A, entitled “SCOPE OF SERVICES”. NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this Agreement, the parties agree as follows: SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in Exhibit A in accordance with the terms and conditions contained in this Agreement. The performance of all Services shall be to the reasonable satisfaction of CITY. Optional On-Call Provision (This provision only applies if checked and only applies to on-call agreements.) CITY may elect to, but is not required to, authorize on-call Services up to the maximum compensation amount set forth in Section 4 (Not to Exceed Compensation). CONSULTANT shall provide on-call Services only by advanced, written authorization from CITY as detailed in this Section. On-call Services, if any, shall be authorized by CITY, as needed, with a Task Order assigned and approved by CITY’s Project Manager, as identified in Section 13 (Project Management). Each Task Order shall be in substantially the same form as Exhibit A-1 entitled “PROFESSIONAL SERVICES TASK ORDER”. Each Task Order shall contain a specific scope of services, schedule of performance and maximum compensation amount, in accordance with the provisions of this Agreement. Compensation for on-call Services shall be specified by CITY in the Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit C, the hourly rates set forth in Exhibit C-1, or a negotiated lump sum. Docusign Envelope ID: 7526E0F8-B048-484C-B12F-1E5DB3D10EA7 Item 9 Attachment A - C25193458 - Aaron Welch Planning Item 9: Staff Report Pg. 5 Packet Pg. 323 of 627 Professional Services Rev. Jan 29, 2024 Page 2 of 21 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 due to CONSULTANT for all Task Orders issued under this Agreement shall not exceed the amount of compensation set forth in Section 4. CONSULTANT shall only be compensated for on-call Services performed under an authorized Task Order and only up to the maximum compensation amount set forth in Section 4. Performance of and payment for any on-call Services are subject to all requirements and restrictions in this Agreement. SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through June 30, 2030, unless terminated earlier pursuant to Section 19 (Termination) of this Agreement. SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit B, entitled “SCHEDULE OF PERFORMANCE”. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT. CITY’s agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of CONSULTANT. SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit “A” , is in an aggregate amount that shall not exceed Two Million ($2,000,000.00) over the Term across a total of five (5) consultant agreements (C25193458, C25193458A to C25193458D), of which this is one. The five (5) contracts will be administered by the CITY’s PLANNING & DEVELOPMENT SERVICES to ensure the total aggregate of compensation paid over the Term does not exceed the amounts set forth herein. CONSULTANT acknowledges and agrees that the CITY is hiring five (5) consultants, including CONSULTANT, none of whom will be guaranteed or assured of any specific quantity of work to be performed. If the work is performed by any one or more consultants, including CONSULTANT, CITY will ensure that total compensation to all five (5) consultants including CONSULTANT, will not exceed in aggregate, across all five (5) agreements, and will not exceed in aggregate Two Million ($2,000,000.00). CONSULTANT agrees to complete all Services described in Exhibit A, including reimbursable expenses, are subject to a Maximum Total Compensation “NOT TO EXCEED” amount of Two Million ($2,000,000.00) during the term of the agreement. The applicable rates and schedule of payment are set out at Exhibit “C-1”, entitled “SCHEDULE OF RATES,” which is attached to and made a part of this Agreement. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. Docusign Envelope ID: 7526E0F8-B048-484C-B12F-1E5DB3D10EA7 Item 9 Attachment A - C25193458 - Aaron Welch Planning Item 9: Staff Report Pg. 6 Packet Pg. 324 of 627 Professional Services Rev. Jan 29, 2024 Page 3 of 21 Additional Services, if any, shall be authorized in accordance with and subject to the provisions of Exhibit “C”. CONSULTANT shall not receive any compensation for Additional Services performed without the prior written authorization of CITY. Additional Services shall mean any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described at Exhibit “A”. SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the Services performed and the applicable charges (including, if applicable, an identification of personnel who performed the Services, hours worked, hourly rates, and reimbursable expenses), based upon Exhibit C or, as applicable, CONSULTANT’s schedule of rates set forth in Exhibit C-1. If applicable, the invoice shall also describe the percentage of completion of each task. The information in CONSULTANT’s invoices shall be subject to verification by CITY. CONSULTANT shall send all invoices to CITY’s Project Manager via email at the following address: PCEContracts@paloalto.gov. CITY will generally process and pay invoices within thirty (30) days of receipt of an acceptable invoice. SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All Services shall be performed by CONSULTANT or under CONSULTANT’s supervision. CONSULTANT represents that it, its employees and subcontractors, if any, possess the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. 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 approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY. Docusign Envelope ID: 7526E0F8-B048-484C-B12F-1E5DB3D10EA7 Item 9 Attachment A - C25193458 - Aaron Welch Planning Item 9: Staff Report Pg. 7 Packet Pg. 325 of 627 Professional Services Rev. Jan 29, 2024 Page 4 of 21 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. Subcontracts Authorized: Notwithstanding Section 11 (Assignment) above, CITY agrees that subcontractors may be used to complete the Services with prior approval, documented in writing, including Scope of Services, cost, and schedule of performances. The use of subcontractors cannot increase compensation pursuant to Section 4 of this Agreement. CONSULTANT shall be responsible for directing the work of any subcontractors and for any compensation due to subcontractors. CITY assumes no responsibility whatsoever concerning compensation of subcontractors. CONSULTANT shall be fully responsible to CITY for all acts and omissions of subcontractors. CONSULTANT shall change or add subcontractors only with the prior written approval of the City Manager or designee. SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Aaron Welch, Phone: 510-495-7242, Email: aaronwelchplanning@gmail.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 Docusign Envelope ID: 7526E0F8-B048-484C-B12F-1E5DB3D10EA7 Item 9 Attachment A - C25193458 - Aaron Welch Planning Item 9: Staff Report Pg. 8 Packet Pg. 326 of 627 Professional Services Rev. Jan 29, 2024 Page 5 of 21 remove CONSULTANT personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Services or a threat to the safety of persons or property. CITY’s Project Manager is Jennifer Armer, Planning & Development Services Department, , 250 Hamilton Avenue Palo Alto, CA, 94301, Telephone: 650-329-2191. CITY’s Project Manager will be CONSULTANT’s point of contact with respect to performance, progress and execution of the Services. CITY may designate an alternate Project Manager from time to time. SECTION 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. Docusign Envelope ID: 7526E0F8-B048-484C-B12F-1E5DB3D10EA7 Item 9 Attachment A - C25193458 - Aaron Welch Planning Item 9: Staff Report Pg. 9 Packet Pg. 327 of 627 Professional Services Rev. Jan 29, 2024 Page 6 of 21 16.3. The acceptance of CONSULTANT’s Services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement. SECTION 17. WAIVERS. No waiver of a condition or nonperformance of an obligation under this Agreement is effective unless it is in writing in accordance with Section 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. SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES. 19.1. The City Manager may suspend the performance of the Services, in whole Docusign Envelope ID: 7526E0F8-B048-484C-B12F-1E5DB3D10EA7 Item 9 Attachment A - C25193458 - Aaron Welch Planning Item 9: Staff Report Pg. 10 Packet Pg. 328 of 627 Professional Services Rev. Jan 29, 2024 Page 7 of 21 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. 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 Docusign Envelope ID: 7526E0F8-B048-484C-B12F-1E5DB3D10EA7 Item 9 Attachment A - C25193458 - Aaron Welch Planning Item 9: Staff Report Pg. 11 Packet Pg. 329 of 627 Professional Services Rev. Jan 29, 2024 Page 8 of 21 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 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 Docusign Envelope ID: 7526E0F8-B048-484C-B12F-1E5DB3D10EA7 Item 9 Attachment A - C25193458 - Aaron Welch Planning Item 9: Staff Report Pg. 12 Packet Pg. 330 of 627 Professional Services Rev. Jan 29, 2024 Page 9 of 21 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 (3) is for a public works alteration, demolition, repair, or maintenance project of $15,000 or less, per California Labor Code Sections 1782(d)(1), 1725.5(f) and 1773.3(j). SECTION 27. CLAIMS PROCEDURE FOR “9204 PUBLIC WORKS PROJECTS”. For purposes of this Section 27, a “9204 Public Works Project” means the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind. (Cal. Pub. Cont. Code § 9204.) Per California Public Contract Code Section 9204, for Public Works Projects, certain claims procedures shall apply, as set forth in Docusign Envelope ID: 7526E0F8-B048-484C-B12F-1E5DB3D10EA7 Item 9 Attachment A - C25193458 - Aaron Welch Planning Item 9: Staff Report Pg. 13 Packet Pg. 331 of 627 Professional Services Rev. Jan 29, 2024 Page 10 of 21 Exhibit F, entitled “Claims for Public Contract Code Section 9204 Public Works Projects”. This Project is not a 9204 Public Works Project. SECTION 28. CONFIDENTIAL INFORMATION. 28.1. In the performance of this Agreement, CONSULTANT may have access to CITY’s Confidential Information (defined below). CONSULTANT will hold Confidential Information in strict confidence, not disclose it to any third party, and will use it only for the performance of its obligations to CITY under this Agreement and for no other purpose. CONSULTANT will maintain reasonable and appropriate administrative, technical and physical safeguards to ensure the security, confidentiality and integrity of the Confidential Information. Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to its employees, agents and subcontractors, if any, to the extent they have a need to know in order to perform CONSULTANT’s obligations to CITY under this 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. 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 Docusign Envelope ID: 7526E0F8-B048-484C-B12F-1E5DB3D10EA7 Item 9 Attachment A - C25193458 - Aaron Welch Planning Item 9: Staff Report Pg. 14 Packet Pg. 332 of 627 Professional Services Rev. Jan 29, 2024 Page 11 of 21 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 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. Docusign Envelope ID: 7526E0F8-B048-484C-B12F-1E5DB3D10EA7 Item 9 Attachment A - C25193458 - Aaron Welch Planning Item 9: Staff Report Pg. 15 Packet Pg. 333 of 627 Professional Services Rev. Jan 29, 2024 Page 12 of 21 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: 7526E0F8-B048-484C-B12F-1E5DB3D10EA7 Item 9 Attachment A - C25193458 - Aaron Welch Planning Item 9: Staff Report Pg. 16 Packet Pg. 334 of 627 Professional Services Rev. Jan 29, 2024 Page 13 of 21 CONTRACT No. C25193458 SIGNATURE PAGE IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement as of the date first above written. CITY OF PALO ALTO ____________________________ City Manager APPROVED AS TO FORM: __________________________ City Attorney or designee AARON WELCH PLANNING Officer 1 By: Name: Aaron Welch Title: Principal aaronwelchplanning@gmail.com Docusign Envelope ID: 7526E0F8-B048-484C-B12F-1E5DB3D10EA7 Item 9 Attachment A - C25193458 - Aaron Welch Planning Item 9: Staff Report Pg. 17 Packet Pg. 335 of 627 Professional Services Rev. Jan 29, 2024 Page 14 of 21 EXHIBIT A SCOPE OF SERVICES CONSULTANT shall 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 shall at all times retain responsibility for public contracting, including with respect to any subsequent phase of this project. CONSULTANT’s participation in the planning, discussions, or drawing of project plans or specifications shall be limited to conceptual, preliminary, or initial plans or specifications. CONSULTANT shall cooperate with CITY to ensure that all bidders for a subsequent contract on any subsequent phase of this project have access to the same information, including all conceptual, preliminary, or initial plans or specifications prepared by CONSULTANT pursuant to this Scope of Services. CONSULTANT shall ensure that all contract staff assigned to work under this scope shall complete and file a Form 700, Statement of Economic Interests, which can be found at http://www.fppc.ca.gov/Form700.html. This requirement is consistent with the CITY’s Conflict of Interest Code and the California Political Reform Act. CITY will issue TASK ORDERs related to the following services. CITY acknowledges that due to the on-call nature of this contract, that CONSULTANT may not be able complete all noted activities. Activities are listed to give CITY and CONSULTANT broad ability to cover all aspects of CITY needs either directly through CONSULTANT or indirectly through SUBCONTRACTORS. CITY may, at its discretion and with prior written authorization, request the CONSULTANT or SUBCONTRACTORS to perform related planning, community development services and additional services that fall within the general scope of the other planning-related contracts issued under this procurement. Such services will be coordinated and authorized in writing by the CITY and may include related tasks necessary to ensure continuity of planning operations or project delivery. CONSULTANT will write well-organized reports regarding complex planning issues, professionally facilitate meetings, attend, and give presentations at meetings with applicants, consultants, and the public as needed, including public hearings. CONSULTANT will make professional presentations to the Council, City Commissions, and Boards. CONSULTANT will coordinate with CITY staff, departments, consultants, and outside agencies during project reviews and processing and respond to public inquiries. CONSULTANT will work independently, follow direction, seek clarification prior to completion of work assignment, analyze quantitative data and qualitative information, and think creatively and critically. CONSULTANT will provide the following activities (as applicable): 1. Provide project management support for long-range planning and policy development and implementation initiatives. 2. Prepare staff reports, presentations, and supporting materials for City Council, Planning and Transportation Commission, Architectural Review Board, and other public/community meetings. Docusign Envelope ID: 7526E0F8-B048-484C-B12F-1E5DB3D10EA7 Item 9 Attachment A - C25193458 - Aaron Welch Planning Item 9: Staff Report Pg. 18 Packet Pg. 336 of 627 Professional Services Rev. Jan 29, 2024 Page 15 of 21 3. Present at public hearings, workshops, and community engagement meetings. 4. Draft and support adoption of planning documents, including Comprehensive Plan amendments, Zoning Code updates, area plans, and other long-range planning studies. 5. Conduct research, policy analysis, technical studies, and assist with the implementation of State laws and regional planning initiatives. 6. Prepare ordinances, resolutions, and related implementation tools in support of long-range planning policies. 7. Prepare environmental analysis and determinations for projects, as necessary, in conformance with the California Environmental Quality Act (CEQA) and National Environmental Quality Act (NEPA). 8. Provide specialized support in urban design, visual/spatial analysis, and renter protection policies. 9. Assist with the preparation of annexation applications and support items related to the Local Agency Formation Commission (LAFCO). 10. Additional related tasks or projects, as assigned. Docusign Envelope ID: 7526E0F8-B048-484C-B12F-1E5DB3D10EA7 Item 9 Attachment A - C25193458 - Aaron Welch Planning Item 9: Staff Report Pg. 19 Packet Pg. 337 of 627 Professional Services Rev. Jan 29, 2024 Page 16 of 21 EXHIBIT A-1 PROFESSIONAL SERVICES TASK ORDER CONSULTANT shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 are incorporated into this Task Order by this reference. CONSULTANT shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below. CONTRACT NO. OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE) 1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE): 1B. TASK ORDER NO.: 2. CONSULTANT NAME: 3. PERIOD OF PERFORMANCE: START: COMPLETION: 4 TOTAL TASK ORDER PRICE: $__________________ BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT $_______________ 5. BUDGET CODE_______________ COST CENTER________________ COST ELEMENT______________ WBS/CIP__________ PHASE__________ 6. CITY PROJECT MANAGER’S NAME & DEPARTMENT:_____________________________________ 7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A) MUST INCLUDE: SERVICES AND DELIVERABLES TO BE PROVIDED SCHEDULE OF PERFORMANCE MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable) REIMBURSABLE EXPENSES, if any (with “not to exceed” amount) 8. ATTACHMENTS: A: Task Order Scope of Services B (if any): _____________________________ I hereby authorize the performance of the work described in this Task Order. APPROVED: CITY OF PALO ALTO BY:____________________________________ Name __________________________________ Title___________________________________ Date ___________________________________ I hereby acknowledge receipt and acceptance of this Task Order and warrant that I have authority to sign on behalf of Consultant. APPROVED: COMPANY NAME: ______________________ BY:____________________________________ Name __________________________________ Title___________________________________ Date ___________________________________ Docusign Envelope ID: 7526E0F8-B048-484C-B12F-1E5DB3D10EA7 Item 9 Attachment A - C25193458 - Aaron Welch Planning Item 9: Staff Report Pg. 20 Packet Pg. 338 of 627 Professional Services Rev. Jan 29, 2024 Page 17 of 21 EXHIBIT B SCHEDULE OF PERFORMANCE Optional Schedule of Performance Provision for On-Call or Additional Services Agreements. (This provision only applies if checked and only applies to on-call agreements per Section 1 or agreements with Additional Services per Section 4.) The schedule of performance shall be as provided in the approved Task Order, as detailed in Section 1 (Scope of Services) in the case of on-call Services, or as detailed in Section 4 in the case of Additional Services, provided in all cases that the schedule of performance shall fall within the term as provided in Section 2 (Term) of this Agreement. Docusign Envelope ID: 7526E0F8-B048-484C-B12F-1E5DB3D10EA7 Item 9 Attachment A - C25193458 - Aaron Welch Planning Item 9: Staff Report Pg. 21 Packet Pg. 339 of 627 Professional Services Rev. Jan 29, 2024 Page 18 of 21 EXHIBIT C COMPENSATION CITY agrees to compensate CONSULTANT for the Services performed in accordance with the terms and conditions of this Agreement, including Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4 of the Agreement), based on the hourly rate schedule attached as Exhibit C-1. The compensation to be paid to CONSULTANT under this Agreement for all Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4), shall not exceed the amount(s) stated in Section 4 of this Agreement. CONSULTANT agrees to complete all Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4), within this/these amount(s). Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth in this Agreement shall be at no cost to the CITY. REIMBURSABLE EXPENSES CONSULTANT’S ordinary business expenses, such as administrative, overhead, administrative support time/overtime, information systems, software and hardware, photocopying, telecommunications (telephone, internet), in-house printing, insurance and other ordinary business expenses, are included within the scope of payment for Services and are not reimbursable expenses hereunder. Reimbursable expenses, if any are specified as reimbursable under this section, will be reimbursed at actual cost. The expenses (by type, e.g. travel) for which CONSULTANT will be reimbursed are: A. Travel outside the San Francisco Bay Area, including transportation and meals, if specified as reimbursable, will be reimbursed at actual cost subject to the City of Palo Alto’s policy for reimbursement of travel and meal expenses. B. Long distance telephone service charges, cellular phone service charges, facsimile transmission and postage charges, if specified as reimbursable, will be reimbursed at actual cost. All requests for reimbursement of expenses, if any are specified as reimbursable under this section, shall be accompanied by appropriate backup documentation and information. Docusign Envelope ID: 7526E0F8-B048-484C-B12F-1E5DB3D10EA7 Item 9 Attachment A - C25193458 - Aaron Welch Planning Item 9: Staff Report Pg. 22 Packet Pg. 340 of 627 Professional Services Rev. Jan 29, 2024 Page 19 of 21 EXHIBIT C-1 SCHEDULE OF RATES CONSULTANT’s schedule of rates for Additional Services per Section 4 is as follows: CITY and CONSULTANT may at any time mutually agree to add new position titles, rates, and adjust listed rates so long as the changes do not increase the not to exceed compensation amount as specified in Section 4 of the Agreement. Rates are likely to adjust each January 1st of each year up to and not to exceed 3-5% increase or no greater the CPI. Title Hourly Rate ($) Principal Planner 250 Senior Planner 175 Associate Planner 125 Docusign Envelope ID: 7526E0F8-B048-484C-B12F-1E5DB3D10EA7 Item 9 Attachment A - C25193458 - Aaron Welch Planning Item 9: Staff Report Pg. 23 Packet Pg. 341 of 627 Professional Services Rev. Jan 29, 2024 Page 20 of 21 EXHIBIT D INSURANCE REQUIREMENTS CONSULTANTS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS AS SPECIFIED HEREIN. REQUIRED TYPE OF COVERAGE REQUIREMENT MINIMUM LIMITS EACH OCCURRENCE AGGREGATE YES YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY STATUTORY STATUTORY YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED. $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONSULTANT, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONSULTANT AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONSULTANT’S AGREEMENT TO INDEMNIFY CITY. II. THE CONSULTANT MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE AT THE FOLLOWING EMAIL: PURCHASINGSUPPORT@CITYOFPALOALTO.ORG III. ENDORSEMENT PROVISIONS WITH RESPECT TO THE INSURANCE AFFORDED TO ADDITIONAL INSUREDS: A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. Docusign Envelope ID: 7526E0F8-B048-484C-B12F-1E5DB3D10EA7 Item 9 Attachment A - C25193458 - Aaron Welch Planning Item 9: Staff Report Pg. 24 Packet Pg. 342 of 627 Professional Services Rev. Jan 29, 2024 Page 21 of 21 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 SENT TO THE FOLLOWING EMAIL: PURCHASINGSUPPORT@CITYOFPALOALTO.ORG Docusign Envelope ID: 7526E0F8-B048-484C-B12F-1E5DB3D10EA7 Item 9 Attachment A - C25193458 - Aaron Welch Planning Item 9: Staff Report Pg. 25 Packet Pg. 343 of 627 Professional Services Rev. Jan 29, 2024 Page 1 of 21 CITY OF PALO ALTO CONTRACT NO. C25193458A AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN THE CITY OF PALO ALTO AND ASCENT ENVIRONMENTAL, INC. This Agreement for Professional Services (this “Agreement”) is entered into as of the 1st day of July, 2025 (the “Effective Date”), by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and ASCENT ENVIRONMENTAL, INC., a California Corporation, located at 455 Capitol Mall, Suite 300 Sacramento, CA 95814 (“CONSULTANT”). The following recitals are a substantive portion of this Agreement and are fully incorporated herein by this reference: RECITALS A. CITY intends to provide on-call urban planning support (the “Project”) and desires to engage a consultant to provide services in connection with the Project (the “Services”, as detailed more fully in Exhibit A). B. CONSULTANT represents that it, its employees and subconsultants, if any, possess the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services. C. CITY, in reliance on these representations, desires to engage CONSULTANT to provide the Services as more fully described in Exhibit A, entitled “SCOPE OF SERVICES”. NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this Agreement, the parties agree as follows: SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in Exhibit A in accordance with the terms and conditions contained in this Agreement. The performance of all Services shall be to the reasonable satisfaction of CITY. Optional On-Call Provision (This provision only applies if checked and only applies to on-call agreements.) CITY may elect to, but is not required to, authorize on-call Services up to the maximum compensation amount set forth in Section 4 (Not to Exceed Compensation). CONSULTANT shall provide on-call Services only by advanced, written authorization from CITY as detailed in this Section. On-call Services, if any, shall be authorized by CITY, as needed, with a Task Order assigned and approved by CITY’s Project Manager, as identified in Section 13 (Project Management). Each Task Order shall be in substantially the same form as Exhibit A-1 entitled “PROFESSIONAL SERVICES TASK ORDER”. Each Task Order shall contain a specific scope of services, schedule of performance and maximum compensation amount, in accordance with the provisions of this Agreement. Compensation for on-call Services shall be specified by CITY in the Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit C, the hourly rates set Docusign Envelope ID: 78677455-3FA3-4FEE-9214-913AE8967817 Item 9 Attachment B - C25193458A - Ascent Environmental, Inc. Item 9: Staff Report Pg. 26 Packet Pg. 344 of 627 Professional Services Rev. Jan 29, 2024 Page 2 of 21 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 due to CONSULTANT for all Task Orders issued under this Agreement shall not exceed the amount of compensation set forth in Section 4. CONSULTANT shall only be compensated for on-call Services performed under an authorized Task Order and only up to the maximum compensation amount set forth in Section 4. Performance of and payment for any on-call Services are subject to all requirements and restrictions in this Agreement. SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through June 30, 2030, unless terminated earlier pursuant to Section 19 (Termination) of this Agreement. SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit B, entitled “SCHEDULE OF PERFORMANCE”. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT. CITY’s agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of CONSULTANT. SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit “A” , is in an aggregate amount that shall not exceed Two Million ($2,000,000.00) over the Term across a total of five (5) consultant agreements (C25193458, C25193458A to C25193458D), of which this is one. The five (5) contracts will be administered by the CITY’s PLANNING & DEVELOPMENT SERVICES to ensure the total aggregate of compensation paid over the Term does not exceed the amounts set forth herein. CONSULTANT acknowledges and agrees that the CITY is hiring five (5) consultants, including CONSULTANT, none of whom will be guaranteed or assured of any specific quantity of work to be performed. If the work is performed by any one or more consultants, including CONSULTANT, CITY will ensure that total compensation to all five (5) consultants including CONSULTANT, will not exceed in aggregate, across all five (5) agreements, and will not exceed in aggregate Two Million ($2,000,000.00). CONSULTANT agrees to complete all Services described in Exhibit A, including reimbursable expenses, are subject to a Maximum Total Compensation “NOT TO EXCEED” amount of Two Million ($2,000,000.00) during the term of the agreement. The applicable rates and schedule of payment are set out at Exhibit “C-1”, entitled “SCHEDULE OF RATES,” which is attached to and made a part of this Agreement. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. Docusign Envelope ID: 78677455-3FA3-4FEE-9214-913AE8967817 Item 9 Attachment B - C25193458A - Ascent Environmental, Inc. Item 9: Staff Report Pg. 27 Packet Pg. 345 of 627 Professional Services Rev. Jan 29, 2024 Page 3 of 21 Additional Services, if any, shall be authorized in accordance with and subject to the provisions of Exhibit “C”. CONSULTANT shall not receive any compensation for Additional Services performed without the prior written authorization of CITY. Additional Services shall mean any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described at Exhibit “A”. SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the Services performed and the applicable charges (including, if applicable, an identification of personnel who performed the Services, hours worked, hourly rates, and reimbursable expenses), based upon Exhibit C or, as applicable, CONSULTANT’s schedule of rates set forth in Exhibit C-1. If applicable, the invoice shall also describe the percentage of completion of each task. The information in CONSULTANT’s invoices shall be subject to verification by CITY. CONSULTANT shall send all invoices to CITY’s Project Manager via email at the following address: PCEContracts@paloalto.gov. CITY will generally process and pay invoices within thirty (30) days of receipt of an acceptable invoice. SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All Services shall be performed by CONSULTANT or under CONSULTANT’s supervision. CONSULTANT represents that it, its employees and subcontractors, if any, possess the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. 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 approved recommendations, and revise the design to meet the Project budget, at no additional cost Docusign Envelope ID: 78677455-3FA3-4FEE-9214-913AE8967817 Item 9 Attachment B - C25193458A - Ascent Environmental, Inc. Item 9: Staff Report Pg. 28 Packet Pg. 346 of 627 Professional Services Rev. Jan 29, 2024 Page 4 of 21 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. Subcontracts Authorized: Notwithstanding Section 11 (Assignment) above, CITY agrees that subcontractors may be used to complete the Services with prior approval, documented in writing, including Scope of Services, cost, and schedule of performances. The use of subcontractors cannot increase compensation pursuant to Section 4 of this Agreement. CONSULTANT shall be responsible for directing the work of any subcontractors and for any compensation due to subcontractors. CITY assumes no responsibility whatsoever concerning compensation of subcontractors. CONSULTANT shall be fully responsible to CITY for all acts and omissions of subcontractors. CONSULTANT shall change or add subcontractors only with the prior written approval of the City Manager or designee. SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Gary Jakobs, Phone: 916-930-3182, Email: gary.jakobs@ascent.inc as the CONSULTANT’s Project Manager to have supervisory responsibility for the performance, progress, and execution of the Services and represent CONSULTANT during the day-to-day performance of the Services. If circumstances cause the substitution of the CONSULTANT’s Project Manager or any other of CONSULTANT’s key personnel for any reason, the appointment of a substitute Project Manager and the assignment of any key new or replacement personnel will be subject to the prior written approval of the CITY’s Docusign Envelope ID: 78677455-3FA3-4FEE-9214-913AE8967817 Item 9 Attachment B - C25193458A - Ascent Environmental, Inc. Item 9: Staff Report Pg. 29 Packet Pg. 347 of 627 Professional Services Rev. Jan 29, 2024 Page 5 of 21 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. CITY’s Project Manager is Jennifer Armer, Planning & Development Services Department, , 250 Hamilton Avenue Palo Alto, CA, 94301, Telephone: 650-329-2191. CITY’s Project Manager will be CONSULTANT’s point of contact with respect to performance, progress and execution of the Services. CITY may designate an alternate Project Manager from time to time. SECTION 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 relating to the negligence, recklessness, or willful misconduct in the 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 Docusign Envelope ID: 78677455-3FA3-4FEE-9214-913AE8967817 Item 9 Attachment B - C25193458A - Ascent Environmental, Inc. Item 9: Staff Report Pg. 30 Packet Pg. 348 of 627 Professional Services Rev. Jan 29, 2024 Page 6 of 21 officers, employees, agents or contractors under this Agreement. 16.3. The acceptance of CONSULTANT’s Services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement. SECTION 17. WAIVERS. No waiver of a condition or nonperformance of an obligation under this Agreement is effective unless it is in writing in accordance with Section 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. SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES. Docusign Envelope ID: 78677455-3FA3-4FEE-9214-913AE8967817 Item 9 Attachment B - C25193458A - Ascent Environmental, Inc. Item 9: Staff Report Pg. 31 Packet Pg. 349 of 627 Professional Services Rev. Jan 29, 2024 Page 7 of 21 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. CONSULTANT shall provide written notice to CITY of any change of address. Docusign Envelope ID: 78677455-3FA3-4FEE-9214-913AE8967817 Item 9 Attachment B - C25193458A - Ascent Environmental, Inc. Item 9: Staff Report Pg. 32 Packet Pg. 350 of 627 Professional Services Rev. Jan 29, 2024 Page 8 of 21 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 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: Docusign Envelope ID: 78677455-3FA3-4FEE-9214-913AE8967817 Item 9 Attachment B - C25193458A - Ascent Environmental, Inc. Item 9: Staff Report Pg. 33 Packet Pg. 351 of 627 Professional Services Rev. Jan 29, 2024 Page 9 of 21 (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 (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, Docusign Envelope ID: 78677455-3FA3-4FEE-9214-913AE8967817 Item 9 Attachment B - C25193458A - Ascent Environmental, Inc. Item 9: Staff Report Pg. 34 Packet Pg. 352 of 627 Professional Services Rev. Jan 29, 2024 Page 10 of 21 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 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. 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, Docusign Envelope ID: 78677455-3FA3-4FEE-9214-913AE8967817 Item 9 Attachment B - C25193458A - Ascent Environmental, Inc. Item 9: Staff Report Pg. 35 Packet Pg. 353 of 627 Professional Services Rev. Jan 29, 2024 Page 11 of 21 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 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. Docusign Envelope ID: 78677455-3FA3-4FEE-9214-913AE8967817 Item 9 Attachment B - C25193458A - Ascent Environmental, Inc. Item 9: Staff Report Pg. 36 Packet Pg. 354 of 627 Professional Services Rev. Jan 29, 2024 Page 12 of 21 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: 78677455-3FA3-4FEE-9214-913AE8967817 Item 9 Attachment B - C25193458A - Ascent Environmental, Inc. Item 9: Staff Report Pg. 37 Packet Pg. 355 of 627 Professional Services Rev. Jan 29, 2024 Page 13 of 21 CONTRACT No. C25193458A 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 ASCENT ENVIRONMENTAL, INC. Officer 1 By: Name: Gary Jakobs Title: President gary.jakobs@ascent.inc Officer 2 (Required for Corp. or LLC) By: Name: Honey Walters Title: Secretary honey.walters@ascent.inc Docusign Envelope ID: 78677455-3FA3-4FEE-9214-913AE8967817 Item 9 Attachment B - C25193458A - Ascent Environmental, Inc. Item 9: Staff Report Pg. 38 Packet Pg. 356 of 627 Professional Services Rev. Jan 29, 2024 Page 14 of 21 EXHIBIT A SCOPE OF SERVICES CONSULTANT shall 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 shall at all times retain responsibility for public contracting, including with respect to any subsequent phase of this project. CONSULTANT’s participation in the planning, discussions, or drawing of project plans or specifications shall be limited to conceptual, preliminary, or initial plans or specifications. CONSULTANT shall cooperate with CITY to ensure that all bidders for a subsequent contract on any subsequent phase of this project have access to the same information, including all conceptual, preliminary, or initial plans or specifications prepared by CONSULTANT pursuant to this Scope of Services. CONSULTANT shall ensure that all contract staff assigned to work under this scope shall complete and file a Form 700, Statement of Economic Interests, which can be found at http://www.fppc.ca.gov/Form700.html. This requirement is consistent with the CITY’s Conflict of Interest Code and the California Political Reform Act. CITY will issue TASK ORDERs related to the following services. CITY acknowledges that due to the on-call nature of this contract, that CONSULTANT may not be able complete all noted activities. Activities are listed to give CITY and CONSULTANT broad ability to cover all aspects of CITY needs either directly through CONSULTANT or indirectly through SUBCONTRACTORS. CITY may, at its discretion and with prior written authorization, request the CONSULTANT or SUBCONTRACTORS to perform related planning, community development services and additional services that fall within the general scope of the other planning-related contracts issued under this procurement. Such services will be coordinated and authorized in writing by the CITY and may include related tasks necessary to ensure continuity of planning operations or project delivery. CONSULTANT will write well-organized reports regarding complex planning issues, professionally facilitate meetings, attend, and give presentations at meetings with applicants, consultants, and the public as needed, including public hearings. CONSULTANT will make professional presentations to the Council, City Commissions, and Boards. CONSULTANT will coordinate with CITY staff, departments, consultants, and outside agencies during project reviews and processing and respond to public inquiries. CONSULTANT will work independently, follow direction, seek clarification prior to completion of work assignment, analyze quantitative data and qualitative information, and think creatively and critically. CONSULTANT will provide the following activities (as applicable): 1. Provide project management support for long-range planning and policy development and implementation initiatives. 2. Prepare staff reports, presentations, and supporting materials for City Council, Planning and Transportation Commission, Architectural Review Board, and other public/community meetings. Docusign Envelope ID: 78677455-3FA3-4FEE-9214-913AE8967817 Item 9 Attachment B - C25193458A - Ascent Environmental, Inc. Item 9: Staff Report Pg. 39 Packet Pg. 357 of 627 Professional Services Rev. Jan 29, 2024 Page 15 of 21 3. Present at public hearings, workshops, and community engagement meetings. 4. Draft and support adoption of planning documents, including Comprehensive Plan amendments, Zoning Code updates, area plans, and other long-range planning studies. 5. Conduct research, policy analysis, technical studies, and assist with the implementation of State laws and regional planning initiatives. 6. Prepare ordinances, resolutions, and related implementation tools in support of long-range planning policies. 7. Prepare environmental analysis and determinations for projects, as necessary, in conformance with the California Environmental Quality Act (CEQA) and National Environmental Quality Act (NEPA). 8. Provide specialized support in urban design, visual/spatial analysis, and renter protection policies. 9. Assist with the preparation of annexation applications and support items related to the Local Agency Formation Commission (LAFCO). 10. Additional related tasks or projects, as assigned. Docusign Envelope ID: 78677455-3FA3-4FEE-9214-913AE8967817 Item 9 Attachment B - C25193458A - Ascent Environmental, Inc. Item 9: Staff Report Pg. 40 Packet Pg. 358 of 627 Professional Services Rev. Jan 29, 2024 Page 16 of 21 EXHIBIT A-1 PROFESSIONAL SERVICES TASK ORDER CONSULTANT shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 are incorporated into this Task Order by this reference. CONSULTANT shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below. CONTRACT NO. OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE) 1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE): 1B. TASK ORDER NO.: 2. CONSULTANT NAME: 3. PERIOD OF PERFORMANCE: START: COMPLETION: 4 TOTAL TASK ORDER PRICE: $__________________ BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT $_______________ 5. BUDGET CODE_______________ COST CENTER________________ COST ELEMENT______________ WBS/CIP__________ PHASE__________ 6. CITY PROJECT MANAGER’S NAME & DEPARTMENT:_____________________________________ 7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A) MUST INCLUDE: SERVICES AND DELIVERABLES TO BE PROVIDED SCHEDULE OF PERFORMANCE MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable) REIMBURSABLE EXPENSES, if any (with “not to exceed” amount) 8. ATTACHMENTS: A: Task Order Scope of Services B (if any): _____________________________ I hereby authorize the performance of the work described in this Task Order. APPROVED: CITY OF PALO ALTO BY:____________________________________ Name __________________________________ Title___________________________________ Date ___________________________________ I hereby acknowledge receipt and acceptance of this Task Order and warrant that I have authority to sign on behalf of Consultant. APPROVED: COMPANY NAME: ______________________ BY:____________________________________ Name __________________________________ Title___________________________________ Date ___________________________________ Docusign Envelope ID: 78677455-3FA3-4FEE-9214-913AE8967817 Item 9 Attachment B - C25193458A - Ascent Environmental, Inc. Item 9: Staff Report Pg. 41 Packet Pg. 359 of 627 Professional Services Rev. Jan 29, 2024 Page 17 of 21 EXHIBIT B SCHEDULE OF PERFORMANCE Optional Schedule of Performance Provision for On-Call or Additional Services Agreements. (This provision only applies if checked and only applies to on-call agreements per Section 1 or agreements with Additional Services per Section 4.) The schedule of performance shall be as provided in the approved Task Order, as detailed in Section 1 (Scope of Services) in the case of on-call Services, or as detailed in Section 4 in the case of Additional Services, provided in all cases that the schedule of performance shall fall within the term as provided in Section 2 (Term) of this Agreement. Docusign Envelope ID: 78677455-3FA3-4FEE-9214-913AE8967817 Item 9 Attachment B - C25193458A - Ascent Environmental, Inc. Item 9: Staff Report Pg. 42 Packet Pg. 360 of 627 Professional Services Rev. Jan 29, 2024 Page 18 of 21 EXHIBIT C COMPENSATION CITY agrees to compensate CONSULTANT for the Services performed in accordance with the terms and conditions of this Agreement, including Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4 of the Agreement), based on the hourly rate schedule attached as Exhibit C-1. The compensation to be paid to CONSULTANT under this Agreement for all Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4), shall not exceed the amount(s) stated in Section 4 of this Agreement. CONSULTANT agrees to complete all Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4), within this/these amount(s). Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth in this Agreement shall be at no cost to the CITY. REIMBURSABLE EXPENSES CONSULTANT’S ordinary business expenses, such as administrative, overhead, administrative support time/overtime, information systems, software and hardware, photocopying, telecommunications (telephone, internet), in-house printing, insurance and other ordinary business expenses, are included within the scope of payment for Services and are not reimbursable expenses hereunder. Reimbursable expenses, if any are specified as reimbursable under this section, will be reimbursed at actual cost. The expenses (by type, e.g. travel) for which CONSULTANT will be reimbursed are: A. Travel outside the San Francisco Bay Area, including transportation and meals, if specified as reimbursable, will be reimbursed at actual cost subject to the City of Palo Alto’s policy for reimbursement of travel and meal expenses. B. Long distance telephone service charges, cellular phone service charges, facsimile transmission and postage charges, if specified as reimbursable, will be reimbursed at actual cost. All requests for reimbursement of expenses, if any are specified as reimbursable under this section, shall be accompanied by appropriate backup documentation and information. Docusign Envelope ID: 78677455-3FA3-4FEE-9214-913AE8967817 Item 9 Attachment B - C25193458A - Ascent Environmental, Inc. Item 9: Staff Report Pg. 43 Packet Pg. 361 of 627 Professional Services Rev. Jan 29, 2024 Page 19 of 21 EXHIBIT C-1 SCHEDULE OF RATES CONSULTANT’s schedule of rates for Additional Services per Section 4 is as follows: CITY and CONSULTANT may at any time mutually agree to add new position titles, rates, and adjust listed rates so long as the changes do not increase the not to exceed compensation amount as specified in Section 4 of the Agreement. Rates likely to adjust each January 1st of each year up to and not to exceed 3-5% increase or no greater the CPI. Title Hourly Rate Range ($) Principal 260 – 435 Senior Environmental Planner 180 – 285 Environmental Planner 105 – 250 Environmental Services Intern 90 – 100 Senior Natural Resources Planner 235 – 330 Senior Biologist/Regulatory-Permitting Specialist 90 – 260 Natural Resources Planner 140 – 250 Biologist/Regulatory-Permitting Specialist 150 – 200 Director of Cultural Resources Services 200 – 270 Architectural Historian 150 – 240 Archaeological Specialist 160 – 210 Director of Air Quality/Greenhouse Gas/Noise Services 260 – 365 Senior Air Quality/Greenhouse Gas/Noise Services Analyst 170 – 305 Air Quality/Greenhouse Gas/Noise Services Analyst 150 – 215 Director of Planning 235 – 365 Senior Designer 180 – 290 Senior Planner 180 – 240 Designer 150 – 215 Planner 105 – 150 Senior GIS Specialist 150 – 250 GIS Specialist 140 – 200 Director of Graphics/Production 160 – 295 Graphics/Production Specialist 130 – 170 Project Accountant 130 – 205 Contract Specialist 135 – 170 Docusign Envelope ID: 78677455-3FA3-4FEE-9214-913AE8967817 Item 9 Attachment B - C25193458A - Ascent Environmental, Inc. Item 9: Staff Report Pg. 44 Packet Pg. 362 of 627 Professional Services Rev. Jan 29, 2024 Page 20 of 21 EXHIBIT D INSURANCE REQUIREMENTS CONSULTANTS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS AS SPECIFIED HEREIN. REQUIRED TYPE OF COVERAGE REQUIREMENT MINIMUM LIMITS EACH OCCURRENCE AGGREGATE YES YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY STATUTORY STATUTORY YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED. $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONSULTANT, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONSULTANT AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONSULTANT’S AGREEMENT TO INDEMNIFY CITY. II. THE CONSULTANT MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE AT THE FOLLOWING EMAIL: PURCHASINGSUPPORT@CITYOFPALOALTO.ORG III. ENDORSEMENT PROVISIONS WITH RESPECT TO THE INSURANCE AFFORDED TO ADDITIONAL INSUREDS: A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE Docusign Envelope ID: 78677455-3FA3-4FEE-9214-913AE8967817 Item 9 Attachment B - C25193458A - Ascent Environmental, Inc. Item 9: Staff Report Pg. 45 Packet Pg. 363 of 627 Professional Services Rev. Jan 29, 2024 Page 21 of 21 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 SENT TO THE FOLLOWING EMAIL: PURCHASINGSUPPORT@CITYOFPALOALTO.ORG Docusign Envelope ID: 78677455-3FA3-4FEE-9214-913AE8967817 Item 9 Attachment B - C25193458A - Ascent Environmental, Inc. Item 9: Staff Report Pg. 46 Packet Pg. 364 of 627 Professional Services Rev. Jan 29, 2024 Page 1 of 21 CITY OF PALO ALTO CONTRACT NO. C25193458B AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN THE CITY OF PALO ALTO AND LEXINGTON PLANNING LLC This Agreement for Professional Services (this “Agreement”) is entered into as of the 1st day of July, 2025 (the “Effective Date”), by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and LEXINGTON PLANNING LLC, a Vermont Limited Liability Company, located at P.O. Box 832 Middlebury, VT 05753 (“CONSULTANT”). The following recitals are a substantive portion of this Agreement and are fully incorporated herein by this reference: RECITALS A. CITY intends to provide on-call urban planning support (the “Project”) and desires to engage a consultant to provide services in connection with the Project (the “Services”, as detailed more fully in Exhibit A). B. CONSULTANT represents that it, its employees and subconsultants, if any, possess the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services. C. CITY, in reliance on these representations, desires to engage CONSULTANT to provide the Services as more fully described in Exhibit A, entitled “SCOPE OF SERVICES”. NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this Agreement, the parties agree as follows: SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in Exhibit A in accordance with the terms and conditions contained in this Agreement. The performance of all Services shall be to the reasonable satisfaction of CITY. Optional On-Call Provision (This provision only applies if checked and only applies to on-call agreements.) CITY may elect to, but is not required to, authorize on-call Services up to the maximum compensation amount set forth in Section 4 (Not to Exceed Compensation). CONSULTANT shall provide on-call Services only by advanced, written authorization from CITY as detailed in this Section. On-call Services, if any, shall be authorized by CITY, as needed, with a Task Order assigned and approved by CITY’s Project Manager, as identified in Section 13 (Project Management). Each Task Order shall be in substantially the same form as Exhibit A-1 entitled “PROFESSIONAL SERVICES TASK ORDER”. Each Task Order shall contain a specific scope of services, schedule of performance and maximum compensation amount, in accordance with the provisions of this Agreement. Compensation for on-call Services shall be specified by CITY in the Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit C, the hourly rates set forth in Exhibit C-1, or a negotiated lump sum. Docusign Envelope ID: 32C38A76-8C75-48C8-B918-C2BA3CCCD947 Item 9 Attachment C - C25193458B - Lexington Planning LLC Item 9: Staff Report Pg. 47 Packet Pg. 365 of 627 Professional Services Rev. Jan 29, 2024 Page 2 of 21 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 due to CONSULTANT for all Task Orders issued under this Agreement shall not exceed the amount of compensation set forth in Section 4. CONSULTANT shall only be compensated for on-call Services performed under an authorized Task Order and only up to the maximum compensation amount set forth in Section 4. Performance of and payment for any on-call Services are subject to all requirements and restrictions in this Agreement. SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through June 30, 2030, unless terminated earlier pursuant to Section 19 (Termination) of this Agreement. SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit B, entitled “SCHEDULE OF PERFORMANCE”. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT. CITY’s agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of CONSULTANT. SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit “A” , is in an aggregate amount that shall not exceed Two Million ($2,000,000.00) over the Term across a total of five (5) consultant agreements (C25193458, C25193458A to C25193458D), of which this is one. The five (5) contracts will be administered by the CITY’s PLANNING & DEVELOPMENT SERVICES to ensure the total aggregate of compensation paid over the Term does not exceed the amounts set forth herein. CONSULTANT acknowledges and agrees that the CITY is hiring five (5) consultants, including CONSULTANT, none of whom will be guaranteed or assured of any specific quantity of work to be performed. If the work is performed by any one or more consultants, including CONSULTANT, CITY will ensure that total compensation to all five (5) consultants including CONSULTANT, will not exceed in aggregate, across all five (5) agreements, and will not exceed in aggregate Two Million ($2,000,000.00). CONSULTANT agrees to complete all Services described in Exhibit A, including reimbursable expenses, are subject to a Maximum Total Compensation “NOT TO EXCEED” amount of Two Million ($2,000,000.00) during the term of the agreement. The applicable rates and schedule of payment are set out at Exhibit “C-1”, entitled “SCHEDULE OF RATES,” which is attached to and made a part of this Agreement. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. Docusign Envelope ID: 32C38A76-8C75-48C8-B918-C2BA3CCCD947 Item 9 Attachment C - C25193458B - Lexington Planning LLC Item 9: Staff Report Pg. 48 Packet Pg. 366 of 627 Professional Services Rev. Jan 29, 2024 Page 3 of 21 Additional Services, if any, shall be authorized in accordance with and subject to the provisions of Exhibit “C”. CONSULTANT shall not receive any compensation for Additional Services performed without the prior written authorization of CITY. Additional Services shall mean any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described at Exhibit “A”. SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the Services performed and the applicable charges (including, if applicable, an identification of personnel who performed the Services, hours worked, hourly rates, and reimbursable expenses), based upon Exhibit C or, as applicable, CONSULTANT’s schedule of rates set forth in Exhibit C-1. If applicable, the invoice shall also describe the percentage of completion of each task. The information in CONSULTANT’s invoices shall be subject to verification by CITY. CONSULTANT shall send all invoices to CITY’s Project Manager via email at the following address: PCEContracts@paloalto.gov. CITY will generally process and pay invoices within thirty (30) days of receipt of an acceptable invoice. SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All Services shall be performed by CONSULTANT or under CONSULTANT’s supervision. CONSULTANT represents that it, its employees and subcontractors, if any, possess the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. 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 approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY. Docusign Envelope ID: 32C38A76-8C75-48C8-B918-C2BA3CCCD947 Item 9 Attachment C - C25193458B - Lexington Planning LLC Item 9: Staff Report Pg. 49 Packet Pg. 367 of 627 Professional Services Rev. Jan 29, 2024 Page 4 of 21 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. Subcontracts Authorized: Notwithstanding Section 11 (Assignment) above, CITY agrees that subcontractors may be used to complete the Services with prior approval, documented in writing, including Scope of Services, cost, and schedule of performances. The use of subcontractors cannot increase compensation pursuant to Section 4 of this Agreement. CONSULTANT shall be responsible for directing the work of any subcontractors and for any compensation due to subcontractors. CITY assumes no responsibility whatsoever concerning compensation of subcontractors. CONSULTANT shall be fully responsible to CITY for all acts and omissions of subcontractors. CONSULTANT shall change or add subcontractors only with the prior written approval of the City Manager or designee. SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Jean Eisberg, Phone: 415-516-4479, Email: jean@lexingtonplanning.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 Docusign Envelope ID: 32C38A76-8C75-48C8-B918-C2BA3CCCD947 Item 9 Attachment C - C25193458B - Lexington Planning LLC Item 9: Staff Report Pg. 50 Packet Pg. 368 of 627 Professional Services Rev. Jan 29, 2024 Page 5 of 21 personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Services or a threat to the safety of persons or property. CITY’s Project Manager is Jennifer Armer, Planning & Development Services Department, , 250 Hamilton Avenue Palo Alto, CA, 94301, Telephone: 650-329-2191. CITY’s Project Manager will be CONSULTANT’s point of contact with respect to performance, progress and execution of the Services. CITY may designate an alternate Project Manager from time to time. SECTION 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 relating to the negligence, recklessness, or willful misconduct in the 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. Docusign Envelope ID: 32C38A76-8C75-48C8-B918-C2BA3CCCD947 Item 9 Attachment C - C25193458B - Lexington Planning LLC Item 9: Staff Report Pg. 51 Packet Pg. 369 of 627 Professional Services Rev. Jan 29, 2024 Page 6 of 21 16.3. The acceptance of CONSULTANT’s Services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement. SECTION 17. WAIVERS. No waiver of a condition or nonperformance of an obligation under this Agreement is effective unless it is in writing in accordance with Section 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. SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES. Docusign Envelope ID: 32C38A76-8C75-48C8-B918-C2BA3CCCD947 Item 9 Attachment C - C25193458B - Lexington Planning LLC Item 9: Staff Report Pg. 52 Packet Pg. 370 of 627 Professional Services Rev. Jan 29, 2024 Page 7 of 21 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. CONSULTANT shall provide written notice to CITY of any change of address. SECTION 21. CONFLICT OF INTEREST. Docusign Envelope ID: 32C38A76-8C75-48C8-B918-C2BA3CCCD947 Item 9 Attachment C - C25193458B - Lexington Planning LLC Item 9: Staff Report Pg. 53 Packet Pg. 371 of 627 Professional Services Rev. Jan 29, 2024 Page 8 of 21 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 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, Docusign Envelope ID: 32C38A76-8C75-48C8-B918-C2BA3CCCD947 Item 9 Attachment C - C25193458B - Lexington Planning LLC Item 9: Staff Report Pg. 54 Packet Pg. 372 of 627 Professional Services Rev. Jan 29, 2024 Page 9 of 21 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 (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 Docusign Envelope ID: 32C38A76-8C75-48C8-B918-C2BA3CCCD947 Item 9 Attachment C - C25193458B - Lexington Planning LLC Item 9: Staff Report Pg. 55 Packet Pg. 373 of 627 Professional Services Rev. Jan 29, 2024 Page 10 of 21 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 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. 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 Docusign Envelope ID: 32C38A76-8C75-48C8-B918-C2BA3CCCD947 Item 9 Attachment C - C25193458B - Lexington Planning LLC Item 9: Staff Report Pg. 56 Packet Pg. 374 of 627 Professional Services Rev. Jan 29, 2024 Page 11 of 21 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 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. Docusign Envelope ID: 32C38A76-8C75-48C8-B918-C2BA3CCCD947 Item 9 Attachment C - C25193458B - Lexington Planning LLC Item 9: Staff Report Pg. 57 Packet Pg. 375 of 627 Professional Services Rev. Jan 29, 2024 Page 12 of 21 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: 32C38A76-8C75-48C8-B918-C2BA3CCCD947 Item 9 Attachment C - C25193458B - Lexington Planning LLC Item 9: Staff Report Pg. 58 Packet Pg. 376 of 627 Professional Services Rev. Jan 29, 2024 Page 13 of 21 CONTRACT No. C25193458B 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 LEXINGTON PLANNING LLC Officer 1 By: Name: Jean Eisberg Title: Manager jean@lexingtonplanning.com Docusign Envelope ID: 32C38A76-8C75-48C8-B918-C2BA3CCCD947 Item 9 Attachment C - C25193458B - Lexington Planning LLC Item 9: Staff Report Pg. 59 Packet Pg. 377 of 627 Professional Services Rev. Jan 29, 2024 Page 14 of 21 EXHIBIT A SCOPE OF SERVICES CONSULTANT shall 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 shall at all times retain responsibility for public contracting, including with respect to any subsequent phase of this project. CONSULTANT’s participation in the planning, discussions, or drawing of project plans or specifications shall be limited to conceptual, preliminary, or initial plans or specifications. CONSULTANT shall cooperate with CITY to ensure that all bidders for a subsequent contract on any subsequent phase of this project have access to the same information, including all conceptual, preliminary, or initial plans or specifications prepared by CONSULTANT pursuant to this Scope of Services. CONSULTANT shall ensure that all contract staff assigned to work under this scope shall complete and file a Form 700, Statement of Economic Interests, which can be found at http://www.fppc.ca.gov/Form700.html. This requirement is consistent with the CITY’s Conflict of Interest Code and the California Political Reform Act. CITY will issue TASK ORDERs related to the following services. CITY acknowledges that due to the on-call nature of this contract, that CONSULTANT may not be able complete all noted activities. Activities are listed to give CITY and CONSULTANT broad ability to cover all aspects of CITY needs either directly through CONSULTANT or indirectly through SUBCONTRACTORS. CITY may, at its discretion and with prior written authorization, request the CONSULTANT or SUBCONTRACTORS to perform related planning, community development services and additional services that fall within the general scope of the other planning-related contracts issued under this procurement. Such services will be coordinated and authorized in writing by the CITY and may include related tasks necessary to ensure continuity of planning operations or project delivery. CONSULTANT will write well-organized reports regarding complex planning issues, professionally facilitate meetings, attend, and give presentations at meetings with applicants, consultants, and the public as needed, including public hearings. CONSULTANT will make professional presentations to the Council, City Commissions, and Boards. CONSULTANT will coordinate with CITY staff, departments, consultants, and outside agencies during project reviews and processing and respond to public inquiries. CONSULTANT will work independently, follow direction, seek clarification prior to completion of work assignment, analyze quantitative data and qualitative information, and think creatively and critically. CONSULTANT will provide the following activities (as applicable): 1. Provide project management support for long-range planning and policy development and implementation initiatives. 2. Prepare staff reports, presentations, and supporting materials for City Council, Planning and Transportation Commission, Architectural Review Board, and other public/community meetings. Docusign Envelope ID: 32C38A76-8C75-48C8-B918-C2BA3CCCD947 Item 9 Attachment C - C25193458B - Lexington Planning LLC Item 9: Staff Report Pg. 60 Packet Pg. 378 of 627 Professional Services Rev. Jan 29, 2024 Page 15 of 21 3. Present at public hearings, workshops, and community engagement meetings. 4. Draft and support adoption of planning documents, including Comprehensive Plan amendments, Zoning Code updates, area plans, and other long-range planning studies. 5. Conduct research, policy analysis, technical studies, and assist with the implementation of State laws and regional planning initiatives. 6. Prepare ordinances, resolutions, and related implementation tools in support of long-range planning policies. 7. Prepare environmental analysis and determinations for projects, as necessary, in conformance with the California Environmental Quality Act (CEQA) and National Environmental Quality Act (NEPA). 8. Provide specialized support in urban design, visual/spatial analysis, and renter protection policies. 9. Assist with the preparation of annexation applications and support items related to the Local Agency Formation Commission (LAFCO). 10. Additional related tasks or projects, as assigned. Docusign Envelope ID: 32C38A76-8C75-48C8-B918-C2BA3CCCD947 Item 9 Attachment C - C25193458B - Lexington Planning LLC Item 9: Staff Report Pg. 61 Packet Pg. 379 of 627 Professional Services Rev. Jan 29, 2024 Page 16 of 21 EXHIBIT A-1 PROFESSIONAL SERVICES TASK ORDER CONSULTANT shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 are incorporated into this Task Order by this reference. CONSULTANT shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below. CONTRACT NO. OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE) 1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE): 1B. TASK ORDER NO.: 2. CONSULTANT NAME: 3. PERIOD OF PERFORMANCE: START: COMPLETION: 4 TOTAL TASK ORDER PRICE: $__________________ BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT $_______________ 5. BUDGET CODE_______________ COST CENTER________________ COST ELEMENT______________ WBS/CIP__________ PHASE__________ 6. CITY PROJECT MANAGER’S NAME & DEPARTMENT:_____________________________________ 7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A) MUST INCLUDE: SERVICES AND DELIVERABLES TO BE PROVIDED SCHEDULE OF PERFORMANCE MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable) REIMBURSABLE EXPENSES, if any (with “not to exceed” amount) 8. ATTACHMENTS: A: Task Order Scope of Services B (if any): _____________________________ I hereby authorize the performance of the work described in this Task Order. APPROVED: CITY OF PALO ALTO BY:____________________________________ Name __________________________________ Title___________________________________ Date ___________________________________ I hereby acknowledge receipt and acceptance of this Task Order and warrant that I have authority to sign on behalf of Consultant. APPROVED: COMPANY NAME: ______________________ BY:____________________________________ Name __________________________________ Title___________________________________ Date ___________________________________ Docusign Envelope ID: 32C38A76-8C75-48C8-B918-C2BA3CCCD947 Item 9 Attachment C - C25193458B - Lexington Planning LLC Item 9: Staff Report Pg. 62 Packet Pg. 380 of 627 Professional Services Rev. Jan 29, 2024 Page 17 of 21 EXHIBIT B SCHEDULE OF PERFORMANCE Optional Schedule of Performance Provision for On-Call or Additional Services Agreements. (This provision only applies if checked and only applies to on-call agreements per Section 1 or agreements with Additional Services per Section 4.) The schedule of performance shall be as provided in the approved Task Order, as detailed in Section 1 (Scope of Services) in the case of on-call Services, or as detailed in Section 4 in the case of Additional Services, provided in all cases that the schedule of performance shall fall within the term as provided in Section 2 (Term) of this Agreement. Docusign Envelope ID: 32C38A76-8C75-48C8-B918-C2BA3CCCD947 Item 9 Attachment C - C25193458B - Lexington Planning LLC Item 9: Staff Report Pg. 63 Packet Pg. 381 of 627 Professional Services Rev. Jan 29, 2024 Page 18 of 21 EXHIBIT C COMPENSATION CITY agrees to compensate CONSULTANT for the Services performed in accordance with the terms and conditions of this Agreement, including Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4 of the Agreement), based on the hourly rate schedule attached as Exhibit C-1. The compensation to be paid to CONSULTANT under this Agreement for all Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4), shall not exceed the amount(s) stated in Section 4 of this Agreement. CONSULTANT agrees to complete all Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4), within this/these amount(s). Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth in this Agreement shall be at no cost to the CITY. REIMBURSABLE EXPENSES CONSULTANT’S ordinary business expenses, such as administrative, overhead, administrative support time/overtime, information systems, software and hardware, photocopying, telecommunications (telephone, internet), in-house printing, insurance and other ordinary business expenses, are included within the scope of payment for Services and are not reimbursable expenses hereunder. Reimbursable expenses, if any are specified as reimbursable under this section, will be reimbursed at actual cost. The expenses (by type, e.g. travel) for which CONSULTANT will be reimbursed are: A. Travel outside the San Francisco Bay Area, including transportation and meals, if specified as reimbursable, will be reimbursed at actual cost subject to the City of Palo Alto’s policy for reimbursement of travel and meal expenses. B. Long distance telephone service charges, cellular phone service charges, facsimile transmission and postage charges, if specified as reimbursable, will be reimbursed at actual cost. All requests for reimbursement of expenses, if any are specified as reimbursable under this section, shall be accompanied by appropriate backup documentation and information. Docusign Envelope ID: 32C38A76-8C75-48C8-B918-C2BA3CCCD947 Item 9 Attachment C - C25193458B - Lexington Planning LLC Item 9: Staff Report Pg. 64 Packet Pg. 382 of 627 Professional Services Rev. Jan 29, 2024 Page 19 of 21 EXHIBIT C-1 SCHEDULE OF RATES CONSULTANT’s schedule of rates for Additional Services per Section 4 is as follows: CITY and CONSULTANT may at any time mutually agree to add new position titles, rates, and adjust listed rates so long as the changes do not increase the not to exceed compensation amount as specified in Section 4 of the Agreement. Rates are likely to adjust each January 1st of each year up to and not to exceed 3-5% increase or no greater the CPI. Title Hourly Rate ($) Principal 185 Docusign Envelope ID: 32C38A76-8C75-48C8-B918-C2BA3CCCD947 Item 9 Attachment C - C25193458B - Lexington Planning LLC Item 9: Staff Report Pg. 65 Packet Pg. 383 of 627 Professional Services Rev. Jan 29, 2024 Page 20 of 21 EXHIBIT D INSURANCE REQUIREMENTS CONSULTANTS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS AS SPECIFIED HEREIN. REQUIRED TYPE OF COVERAGE REQUIREMENT MINIMUM LIMITS EACH OCCURRENCE AGGREGATE YES YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY STATUTORY STATUTORY YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED. $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONSULTANT, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONSULTANT AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONSULTANT’S AGREEMENT TO INDEMNIFY CITY. II. THE CONSULTANT MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE AT THE FOLLOWING EMAIL: PURCHASINGSUPPORT@CITYOFPALOALTO.ORG III. ENDORSEMENT PROVISIONS WITH RESPECT TO THE INSURANCE AFFORDED TO ADDITIONAL INSUREDS: A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. Docusign Envelope ID: 32C38A76-8C75-48C8-B918-C2BA3CCCD947 Item 9 Attachment C - C25193458B - Lexington Planning LLC Item 9: Staff Report Pg. 66 Packet Pg. 384 of 627 Professional Services Rev. Jan 29, 2024 Page 21 of 21 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 SENT TO THE FOLLOWING EMAIL: PURCHASINGSUPPORT@CITYOFPALOALTO.ORG Docusign Envelope ID: 32C38A76-8C75-48C8-B918-C2BA3CCCD947 Item 9 Attachment C - C25193458B - Lexington Planning LLC Item 9: Staff Report Pg. 67 Packet Pg. 385 of 627 Professional Services Rev. Jan 29, 2024 Page 1 of 21 CITY OF PALO ALTO CONTRACT NO. C25193458C AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN THE CITY OF PALO ALTO AND PLACEWORKS, INC. This Agreement for Professional Services (this “Agreement”) is entered into as of the 1st day of July, 2025 (the “Effective Date”), by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and PLACEWORKS, INC., a California Corporation, located at 3 MacArthur Place, Suite 1100 Santa Ana, CA 92707 (“CONSULTANT”). The following recitals are a substantive portion of this Agreement and are fully incorporated herein by this reference: RECITALS A. CITY intends to provide on-call urban planning support (the “Project”) and desires to engage a consultant to provide services in connection with the Project (the “Services”, as detailed more fully in Exhibit A). B. CONSULTANT represents that it, its employees and subconsultants, if any, possess the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services. C. CITY, in reliance on these representations, desires to engage CONSULTANT to provide the Services as more fully described in Exhibit A, entitled “SCOPE OF SERVICES”. NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this Agreement, the parties agree as follows: SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in Exhibit A in accordance with the terms and conditions contained in this Agreement. The performance of all Services shall be to the reasonable satisfaction of CITY. Optional On-Call Provision (This provision only applies if checked and only applies to on-call agreements.) CITY may elect to, but is not required to, authorize on-call Services up to the maximum compensation amount set forth in Section 4 (Not to Exceed Compensation). CONSULTANT shall provide on-call Services only by advanced, written authorization from CITY as detailed in this Section. On-call Services, if any, shall be authorized by CITY, as needed, with a Task Order assigned and approved by CITY’s Project Manager, as identified in Section 13 (Project Management). Each Task Order shall be in substantially the same form as Exhibit A-1 entitled “PROFESSIONAL SERVICES TASK ORDER”. Each Task Order shall contain a specific scope of services, schedule of performance and maximum compensation amount, in accordance with the provisions of this Agreement. Compensation for on-call Services shall be specified by CITY in the Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit C, the hourly rates set forth in Exhibit C-1, or a negotiated lump sum. Docusign Envelope ID: 0050CA60-C5F2-4ECA-8504-68CAF239926C Item 9 Attachment D - C25193458C - PlaceWorks, Inc Item 9: Staff Report Pg. 68 Packet Pg. 386 of 627 Professional Services Rev. Jan 29, 2024 Page 2 of 21 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 due to CONSULTANT for all Task Orders issued under this Agreement shall not exceed the amount of compensation set forth in Section 4. CONSULTANT shall only be compensated for on-call Services performed under an authorized Task Order and only up to the maximum compensation amount set forth in Section 4. Performance of and payment for any on-call Services are subject to all requirements and restrictions in this Agreement. SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through June 30, 2030, unless terminated earlier pursuant to Section 19 (Termination) of this Agreement. SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit B, entitled “SCHEDULE OF PERFORMANCE”. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT. CITY’s agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of CONSULTANT. SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit “A” , is in an aggregate amount that shall not exceed Two Million ($2,000,000.00) over the Term across a total of five (5) consultant agreements (C25193458, C25193458A to C25193458D), of which this is one. The five (5) contracts will be administered by the CITY’s PLANNING & DEVELOPMENT SERVICES to ensure the total aggregate of compensation paid over the Term does not exceed the amounts set forth herein. CONSULTANT acknowledges and agrees that the CITY is hiring five (5) consultants, including CONSULTANT, none of whom will be guaranteed or assured of any specific quantity of work to be performed. If the work is performed by any one or more consultants, including CONSULTANT, CITY will ensure that total compensation to all five (5) consultants including CONSULTANT, will not exceed in aggregate, across all five (5) agreements, and will not exceed in aggregate Two Million ($2,000,000.00). CONSULTANT agrees to complete all Services described in Exhibit A, including reimbursable expenses, are subject to a Maximum Total Compensation “NOT TO EXCEED” amount of Two Million ($2,000,000.00) during the term of the agreement. The applicable rates and schedule of payment are set out at Exhibit “C-1”, entitled “SCHEDULE OF RATES,” which is attached to and made a part of this Agreement. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. Docusign Envelope ID: 0050CA60-C5F2-4ECA-8504-68CAF239926C Item 9 Attachment D - C25193458C - PlaceWorks, Inc Item 9: Staff Report Pg. 69 Packet Pg. 387 of 627 Professional Services Rev. Jan 29, 2024 Page 3 of 21 Additional Services, if any, shall be authorized in accordance with and subject to the provisions of Exhibit “C”. CONSULTANT shall not receive any compensation for Additional Services performed without the prior written authorization of CITY. Additional Services shall mean any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described at Exhibit “A”. SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the Services performed and the applicable charges (including, if applicable, an identification of personnel who performed the Services, hours worked, hourly rates, and reimbursable expenses), based upon Exhibit C or, as applicable, CONSULTANT’s schedule of rates set forth in Exhibit C-1. If applicable, the invoice shall also describe the percentage of completion of each task. The information in CONSULTANT’s invoices shall be subject to verification by CITY. CONSULTANT shall send all invoices to CITY’s Project Manager via email at the following address: PCEContracts@paloalto.gov. CITY will generally process and pay invoices within thirty (30) days of receipt of an acceptable invoice. SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All Services shall be performed by CONSULTANT or under CONSULTANT’s supervision. CONSULTANT represents that it, its employees and subcontractors, if any, possess the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. 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 approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY. Docusign Envelope ID: 0050CA60-C5F2-4ECA-8504-68CAF239926C Item 9 Attachment D - C25193458C - PlaceWorks, Inc Item 9: Staff Report Pg. 70 Packet Pg. 388 of 627 Professional Services Rev. Jan 29, 2024 Page 4 of 21 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. Subcontracts Authorized: Notwithstanding Section 11 (Assignment) above, CITY agrees that subcontractors may be used to complete the Services with prior approval, documented in writing, including Scope of Services, cost, and schedule of performances. The use of subcontractors cannot increase compensation pursuant to Section 4 of this Agreement. CONSULTANT shall be responsible for directing the work of any subcontractors and for any compensation due to subcontractors. CITY assumes no responsibility whatsoever concerning compensation of subcontractors. CONSULTANT shall be fully responsible to CITY for all acts and omissions of subcontractors. CONSULTANT shall change or add subcontractors only with the prior written approval of the City Manager or designee. SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Randal W. Jackson, Email: rjackson@placeworks.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 Docusign Envelope ID: 0050CA60-C5F2-4ECA-8504-68CAF239926C Item 9 Attachment D - C25193458C - PlaceWorks, Inc Item 9: Staff Report Pg. 71 Packet Pg. 389 of 627 Professional Services Rev. Jan 29, 2024 Page 5 of 21 personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Services or a threat to the safety of persons or property. CITY’s Project Manager is Jennifer Armer, Planning & Development Services Department, , 250 Hamilton Avenue Palo Alto, CA, 94301, Telephone: 650-329-2191. CITY’s Project Manager will be CONSULTANT’s point of contact with respect to performance, progress and execution of the Services. CITY may designate an alternate Project Manager from time to time. SECTION 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 reasonable attorney’s fees, experts fees, court costs and disbursements (“Claims”) to the extent, arising out of or in any manner related to negligent 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. Docusign Envelope ID: 0050CA60-C5F2-4ECA-8504-68CAF239926C Item 9 Attachment D - C25193458C - PlaceWorks, Inc Item 9: Staff Report Pg. 72 Packet Pg. 390 of 627 Professional Services Rev. Jan 29, 2024 Page 6 of 21 16.3. The acceptance of CONSULTANT’s Services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement. SECTION 17. WAIVERS. No waiver of a condition or nonperformance of an obligation under this Agreement is effective unless it is in writing in accordance with Section 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. SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES. 19.1. The City Manager may suspend the performance of the Services, in whole Docusign Envelope ID: 0050CA60-C5F2-4ECA-8504-68CAF239926C Item 9 Attachment D - C25193458C - PlaceWorks, Inc Item 9: Staff Report Pg. 73 Packet Pg. 391 of 627 Professional Services Rev. Jan 29, 2024 Page 7 of 21 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. 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 Docusign Envelope ID: 0050CA60-C5F2-4ECA-8504-68CAF239926C Item 9 Attachment D - C25193458C - PlaceWorks, Inc Item 9: Staff Report Pg. 74 Packet Pg. 392 of 627 Professional Services Rev. Jan 29, 2024 Page 8 of 21 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 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 Docusign Envelope ID: 0050CA60-C5F2-4ECA-8504-68CAF239926C Item 9 Attachment D - C25193458C - PlaceWorks, Inc Item 9: Staff Report Pg. 75 Packet Pg. 393 of 627 Professional Services Rev. Jan 29, 2024 Page 9 of 21 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 (3) is for a public works alteration, demolition, repair, or maintenance project of $15,000 or less, per California Labor Code Sections 1782(d)(1), 1725.5(f) and 1773.3(j). SECTION 27. CLAIMS PROCEDURE FOR “9204 PUBLIC WORKS PROJECTS”. For purposes of this Section 27, a “9204 Public Works Project” means the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind. (Cal. Pub. Cont. Code § 9204.) Per California Public Contract Code Section 9204, for Public Works Projects, certain claims procedures shall apply, as set forth in Docusign Envelope ID: 0050CA60-C5F2-4ECA-8504-68CAF239926C Item 9 Attachment D - C25193458C - PlaceWorks, Inc Item 9: Staff Report Pg. 76 Packet Pg. 394 of 627 Professional Services Rev. Jan 29, 2024 Page 10 of 21 Exhibit F, entitled “Claims for Public Contract Code Section 9204 Public Works Projects”. This Project is not a 9204 Public Works Project. SECTION 28. CONFIDENTIAL INFORMATION. 28.1. In the performance of this Agreement, CONSULTANT may have access to CITY’s Confidential Information (defined below). CONSULTANT will hold Confidential Information in strict confidence, not disclose it to any third party, and will use it only for the performance of its obligations to CITY under this Agreement and for no other purpose. CONSULTANT will maintain reasonable and appropriate administrative, technical and physical safeguards to ensure the security, confidentiality and integrity of the Confidential Information. Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to its employees, agents and subcontractors, if any, to the extent they have a need to know in order to perform CONSULTANT’s obligations to CITY under this 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. 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 Docusign Envelope ID: 0050CA60-C5F2-4ECA-8504-68CAF239926C Item 9 Attachment D - C25193458C - PlaceWorks, Inc Item 9: Staff Report Pg. 77 Packet Pg. 395 of 627 Professional Services Rev. Jan 29, 2024 Page 11 of 21 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 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. Docusign Envelope ID: 0050CA60-C5F2-4ECA-8504-68CAF239926C Item 9 Attachment D - C25193458C - PlaceWorks, Inc Item 9: Staff Report Pg. 78 Packet Pg. 396 of 627 Professional Services Rev. Jan 29, 2024 Page 12 of 21 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: 0050CA60-C5F2-4ECA-8504-68CAF239926C Item 9 Attachment D - C25193458C - PlaceWorks, Inc Item 9: Staff Report Pg. 79 Packet Pg. 397 of 627 Professional Services Rev. Jan 29, 2024 Page 13 of 21 CONTRACT No. C25193458C 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 PLACEWORKS, INC. Officer 1 By: Name: Randal W. Jackson Title: President rjackson@placeworks.com Officer 2 (Required for Corp. or LLC) By: Name: Kara L Kosel Title: CFO kkosel@placeworks.com Docusign Envelope ID: 0050CA60-C5F2-4ECA-8504-68CAF239926C Item 9 Attachment D - C25193458C - PlaceWorks, Inc Item 9: Staff Report Pg. 80 Packet Pg. 398 of 627 Professional Services Rev. Jan 29, 2024 Page 14 of 21 EXHIBIT A SCOPE OF SERVICES CONSULTANT shall 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 shall at all times retain responsibility for public contracting, including with respect to any subsequent phase of this project. CONSULTANT’s participation in the planning, discussions, or drawing of project plans or specifications shall be limited to conceptual, preliminary, or initial plans or specifications. CONSULTANT shall cooperate with CITY to ensure that all bidders for a subsequent contract on any subsequent phase of this project have access to the same information, including all conceptual, preliminary, or initial plans or specifications prepared by CONSULTANT pursuant to this Scope of Services. CONSULTANT shall ensure that all contract staff assigned to work under this scope shall complete and file a Form 700, Statement of Economic Interests, which can be found at http://www.fppc.ca.gov/Form700.html. This requirement is consistent with the CITY’s Conflict of Interest Code and the California Political Reform Act. CITY will issue TASK ORDERs related to the following services. CITY acknowledges that due to the on-call nature of this contract, that CONSULTANT may not be able complete all noted activities. Activities are listed to give CITY and CONSULTANT broad ability to cover all aspects of CITY needs either directly through CONSULTANT or indirectly through SUBCONTRACTORS. CITY may, at its discretion and with prior written authorization, request the CONSULTANT or SUBCONTRACTORS to perform related planning, community development services and additional services that fall within the general scope of the other planning-related contracts issued under this procurement. Such services will be coordinated and authorized in writing by the CITY and may include related tasks necessary to ensure continuity of planning operations or project delivery. CONSULTANT will write well-organized reports regarding complex planning issues, professionally facilitate meetings, attend, and give presentations at meetings with applicants, consultants, and the public as needed, including public hearings. CONSULTANT will make professional presentations to the Council, City Commissions, and Boards. CONSULTANT will coordinate with CITY staff, departments, consultants, and outside agencies during project reviews and processing and respond to public inquiries. CONSULTANT will work independently, follow direction, seek clarification prior to completion of work assignment, analyze quantitative data and qualitative information, and think creatively and critically. CONSULTANT will provide the following activities (as applicable): 1. Provide project management support for long-range planning and policy development and implementation initiatives. 2. Prepare staff reports, presentations, and supporting materials for City Council, Planning and Transportation Commission, Architectural Review Board, and other public/community meetings. Docusign Envelope ID: 0050CA60-C5F2-4ECA-8504-68CAF239926C Item 9 Attachment D - C25193458C - PlaceWorks, Inc Item 9: Staff Report Pg. 81 Packet Pg. 399 of 627 Professional Services Rev. Jan 29, 2024 Page 15 of 21 3. Present at public hearings, workshops, and community engagement meetings. 4. Draft and support adoption of planning documents, including Comprehensive Plan amendments, Zoning Code updates, area plans, and other long-range planning studies. 5. Conduct research, policy analysis, technical studies, and assist with the implementation of State laws and regional planning initiatives. 6. Prepare ordinances, resolutions, and related implementation tools in support of long-range planning policies. 7. Prepare environmental analysis and determinations for projects, as necessary, in conformance with the California Environmental Quality Act (CEQA) and National Environmental Quality Act (NEPA). 8. Provide specialized support in urban design, visual/spatial analysis, and renter protection policies. 9. Assist with the preparation of annexation applications and support items related to the Local Agency Formation Commission (LAFCO). 10. Additional related tasks or projects, as assigned. Docusign Envelope ID: 0050CA60-C5F2-4ECA-8504-68CAF239926C Item 9 Attachment D - C25193458C - PlaceWorks, Inc Item 9: Staff Report Pg. 82 Packet Pg. 400 of 627 Professional Services Rev. Jan 29, 2024 Page 16 of 21 EXHIBIT A-1 PROFESSIONAL SERVICES TASK ORDER CONSULTANT shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 are incorporated into this Task Order by this reference. CONSULTANT shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below. CONTRACT NO. OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE) 1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE): 1B. TASK ORDER NO.: 2. CONSULTANT NAME: 3. PERIOD OF PERFORMANCE: START: COMPLETION: 4 TOTAL TASK ORDER PRICE: $__________________ BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT $_______________ 5. BUDGET CODE_______________ COST CENTER________________ COST ELEMENT______________ WBS/CIP__________ PHASE__________ 6. CITY PROJECT MANAGER’S NAME & DEPARTMENT:_____________________________________ 7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A) MUST INCLUDE: SERVICES AND DELIVERABLES TO BE PROVIDED SCHEDULE OF PERFORMANCE MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable) REIMBURSABLE EXPENSES, if any (with “not to exceed” amount) 8. ATTACHMENTS: A: Task Order Scope of Services B (if any): _____________________________ I hereby authorize the performance of the work described in this Task Order. APPROVED: CITY OF PALO ALTO BY:____________________________________ Name __________________________________ Title___________________________________ Date ___________________________________ I hereby acknowledge receipt and acceptance of this Task Order and warrant that I have authority to sign on behalf of Consultant. APPROVED: COMPANY NAME: ______________________ BY:____________________________________ Name __________________________________ Title___________________________________ Date ___________________________________ Docusign Envelope ID: 0050CA60-C5F2-4ECA-8504-68CAF239926C Item 9 Attachment D - C25193458C - PlaceWorks, Inc Item 9: Staff Report Pg. 83 Packet Pg. 401 of 627 Professional Services Rev. Jan 29, 2024 Page 17 of 21 EXHIBIT B SCHEDULE OF PERFORMANCE Optional Schedule of Performance Provision for On-Call or Additional Services Agreements. (This provision only applies if checked and only applies to on-call agreements per Section 1 or agreements with Additional Services per Section 4.) The schedule of performance shall be as provided in the approved Task Order, as detailed in Section 1 (Scope of Services) in the case of on-call Services, or as detailed in Section 4 in the case of Additional Services, provided in all cases that the schedule of performance shall fall within the term as provided in Section 2 (Term) of this Agreement. Docusign Envelope ID: 0050CA60-C5F2-4ECA-8504-68CAF239926C Item 9 Attachment D - C25193458C - PlaceWorks, Inc Item 9: Staff Report Pg. 84 Packet Pg. 402 of 627 Professional Services Rev. Jan 29, 2024 Page 18 of 21 EXHIBIT C COMPENSATION CITY agrees to compensate CONSULTANT for the Services performed in accordance with the terms and conditions of this Agreement, including Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4 of the Agreement), based on the hourly rate schedule attached as Exhibit C-1. The compensation to be paid to CONSULTANT under this Agreement for all Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4), shall not exceed the amount(s) stated in Section 4 of this Agreement. CONSULTANT agrees to complete all Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4), within this/these amount(s). Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth in this Agreement shall be at no cost to the CITY. REIMBURSABLE EXPENSES CONSULTANT’S ordinary business expenses, such as administrative, overhead, administrative support time/overtime, information systems, software and hardware, photocopying, telecommunications (telephone, internet), in-house printing, insurance and other ordinary business expenses, are included within the scope of payment for Services and are not reimbursable expenses hereunder. Reimbursable expenses, if any are specified as reimbursable under this section, will be reimbursed at actual cost. The expenses (by type, e.g. travel) for which CONSULTANT will be reimbursed are: A. Travel outside the San Francisco Bay Area, including transportation and meals, if specified as reimbursable, will be reimbursed at actual cost subject to the City of Palo Alto’s policy for reimbursement of travel and meal expenses. B. Long distance telephone service charges, cellular phone service charges, facsimile transmission and postage charges, if specified as reimbursable, will be reimbursed at actual cost. All requests for reimbursement of expenses, if any are specified as reimbursable under this section, shall be accompanied by appropriate backup documentation and information. Docusign Envelope ID: 0050CA60-C5F2-4ECA-8504-68CAF239926C Item 9 Attachment D - C25193458C - PlaceWorks, Inc Item 9: Staff Report Pg. 85 Packet Pg. 403 of 627 Professional Services Rev. Jan 29, 2024 Page 19 of 21 EXHIBIT C-1 SCHEDULE OF RATES CONSULTANT’s schedule of rates for Additional Services per Section 4 is as follows: CITY and CONSULTANT may at any time mutually agree to add new position titles, rates, and adjust listed rates so long as the changes do not increase the not to exceed compensation amount as specified in Section 4 of the Agreement. Rates likely to adjust each January 1st of each year up to and not to exceed 3-5% increase or no greater the CPI. Title Hourly Rate Range ($) Principal 210 – 345 Associate Principal 195 – 285 Senior Associate II 170 – 270 Senior Associate I 160 – 235 Associate II 135 – 200 Associate I 125 – 185 Project Planner 105 – 175 Planner 90 – 155 Graphics Specialist 90 – 165 Administrator 135 – 245 Clerical/Word Processing/Technical Editor 45 – 170 Intern 80 – 125 Docusign Envelope ID: 0050CA60-C5F2-4ECA-8504-68CAF239926C Item 9 Attachment D - C25193458C - PlaceWorks, Inc Item 9: Staff Report Pg. 86 Packet Pg. 404 of 627 Professional Services Rev. Jan 29, 2024 Page 20 of 21 EXHIBIT D INSURANCE REQUIREMENTS CONSULTANTS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS AS SPECIFIED HEREIN. REQUIRED TYPE OF COVERAGE REQUIREMENT MINIMUM LIMITS EACH OCCURRENCE AGGREGATE YES YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY STATUTORY STATUTORY YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED. $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONSULTANT, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONSULTANT AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONSULTANT’S AGREEMENT TO INDEMNIFY CITY. II. THE CONSULTANT MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE AT THE FOLLOWING EMAIL: PURCHASINGSUPPORT@CITYOFPALOALTO.ORG III. ENDORSEMENT PROVISIONS WITH RESPECT TO THE INSURANCE AFFORDED TO ADDITIONAL INSUREDS: A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. Docusign Envelope ID: 0050CA60-C5F2-4ECA-8504-68CAF239926C Item 9 Attachment D - C25193458C - PlaceWorks, Inc Item 9: Staff Report Pg. 87 Packet Pg. 405 of 627 Professional Services Rev. Jan 29, 2024 Page 21 of 21 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 SENT TO THE FOLLOWING EMAIL: PURCHASINGSUPPORT@CITYOFPALOALTO.ORG Docusign Envelope ID: 0050CA60-C5F2-4ECA-8504-68CAF239926C Item 9 Attachment D - C25193458C - PlaceWorks, Inc Item 9: Staff Report Pg. 88 Packet Pg. 406 of 627 Professional Services Rev. Jan 29, 2024 Page 1 of 21 CITY OF PALO ALTO CONTRACT NO. C25193458D AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN THE CITY OF PALO ALTO AND RAIMI & ASSOCIATES, INC. This Agreement for Professional Services (this “Agreement”) is entered into as of the 1st day of July, 2025 (the “Effective Date”), by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and RAIMI & ASSOCIATES, INC., a California Corporation, located at 1900 Addison St, Ste 200 Berkeley, CA 94704 (“CONSULTANT”). The following recitals are a substantive portion of this Agreement and are fully incorporated herein by this reference: RECITALS A. CITY intends to provide on-call urban planning support (the “Project”) and desires to engage a consultant to provide services in connection with the Project (the “Services”, as detailed more fully in Exhibit A). B. CONSULTANT represents that it, its employees and subconsultants, if any, possess the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services. C. CITY, in reliance on these representations, desires to engage CONSULTANT to provide the Services as more fully described in Exhibit A, entitled “SCOPE OF SERVICES”. NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this Agreement, the parties agree as follows: SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in Exhibit A in accordance with the terms and conditions contained in this Agreement. The performance of all Services shall be to the reasonable satisfaction of CITY. Optional On-Call Provision (This provision only applies if checked and only applies to on-call agreements.) CITY may elect to, but is not required to, authorize on-call Services up to the maximum compensation amount set forth in Section 4 (Not to Exceed Compensation). CONSULTANT shall provide on-call Services only by advanced, written authorization from CITY as detailed in this Section. On-call Services, if any, shall be authorized by CITY, as needed, with a Task Order assigned and approved by CITY’s Project Manager, as identified in Section 13 (Project Management). Each Task Order shall be in substantially the same form as Exhibit A-1 entitled “PROFESSIONAL SERVICES TASK ORDER”. Each Task Order shall contain a specific scope of services, schedule of performance and maximum compensation amount, in accordance with the provisions of this Agreement. Compensation for on-call Services shall be specified by CITY in the Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit C, the hourly rates set forth in Exhibit C-1, or a negotiated lump sum. Docusign Envelope ID: 14257218-E510-424D-AF48-57A29430870E Item 9 Attachment E - C25193458D - Raimi & Associates, Inc. Item 9: Staff Report Pg. 89 Packet Pg. 407 of 627 Professional Services Rev. Jan 29, 2024 Page 2 of 21 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 due to CONSULTANT for all Task Orders issued under this Agreement shall not exceed the amount of compensation set forth in Section 4. CONSULTANT shall only be compensated for on-call Services performed under an authorized Task Order and only up to the maximum compensation amount set forth in Section 4. Performance of and payment for any on-call Services are subject to all requirements and restrictions in this Agreement. SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through June 30, 2030, unless terminated earlier pursuant to Section 19 (Termination) of this Agreement. SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit B, entitled “SCHEDULE OF PERFORMANCE”. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT. CITY’s agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of CONSULTANT. SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit “A” , is in an aggregate amount that shall not exceed Two Million ($2,000,000.00) over the Term across a total of five (5) consultant agreements (C25193458, C25193458A to C25193458D), of which this is one. The five (5) contracts will be administered by the CITY’s PLANNING & DEVELOPMENT SERVICES to ensure the total aggregate of compensation paid over the Term does not exceed the amounts set forth herein. CONSULTANT acknowledges and agrees that the CITY is hiring five (5) consultants, including CONSULTANT, none of whom will be guaranteed or assured of any specific quantity of work to be performed. If the work is performed by any one or more consultants, including CONSULTANT, CITY will ensure that total compensation to all five (5) consultants including CONSULTANT, will not exceed in aggregate, across all five (5) agreements, and will not exceed in aggregate Two Million ($2,000,000.00). CONSULTANT agrees to complete all Services described in Exhibit A, including reimbursable expenses, are subject to a Maximum Total Compensation “NOT TO EXCEED” amount of Two Million ($2,000,000.00) during the term of the agreement. The applicable rates and schedule of payment are set out at Exhibit “C-1”, entitled “SCHEDULE OF RATES,” which is attached to and made a part of this Agreement. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. Docusign Envelope ID: 14257218-E510-424D-AF48-57A29430870E Item 9 Attachment E - C25193458D - Raimi & Associates, Inc. Item 9: Staff Report Pg. 90 Packet Pg. 408 of 627 Professional Services Rev. Jan 29, 2024 Page 3 of 21 Additional Services, if any, shall be authorized in accordance with and subject to the provisions of Exhibit “C”. CONSULTANT shall not receive any compensation for Additional Services performed without the prior written authorization of CITY. Additional Services shall mean any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described at Exhibit “A”. SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the Services performed and the applicable charges (including, if applicable, an identification of personnel who performed the Services, hours worked, hourly rates, and reimbursable expenses), based upon Exhibit C or, as applicable, CONSULTANT’s schedule of rates set forth in Exhibit C-1. If applicable, the invoice shall also describe the percentage of completion of each task. The information in CONSULTANT’s invoices shall be subject to verification by CITY. CONSULTANT shall send all invoices to CITY’s Project Manager via email at the following address: PCEContracts@paloalto.gov. CITY will generally process and pay invoices within thirty (30) days of receipt of an acceptable invoice. SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All Services shall be performed by CONSULTANT or under CONSULTANT’s supervision. CONSULTANT represents that it, its employees and subcontractors, if any, possess the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. 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 approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY. Docusign Envelope ID: 14257218-E510-424D-AF48-57A29430870E Item 9 Attachment E - C25193458D - Raimi & Associates, Inc. Item 9: Staff Report Pg. 91 Packet Pg. 409 of 627 Professional Services Rev. Jan 29, 2024 Page 4 of 21 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. Subcontracts Authorized: Notwithstanding Section 11 (Assignment) above, CITY agrees that subcontractors may be used to complete the Services with prior approval, documented in writing, including Scope of Services, cost, and schedule of performances. The use of subcontractors cannot increase compensation pursuant to Section 4 of this Agreement. CONSULTANT shall be responsible for directing the work of any subcontractors and for any compensation due to subcontractors. CITY assumes no responsibility whatsoever concerning compensation of subcontractors. CONSULTANT shall be fully responsible to CITY for all acts and omissions of subcontractors. CONSULTANT shall change or add subcontractors only with the prior written approval of the City Manager or designee. SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Matt Raimi, Phone: 510-200-0520, Email: matt@raimiassociates.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 Docusign Envelope ID: 14257218-E510-424D-AF48-57A29430870E Item 9 Attachment E - C25193458D - Raimi & Associates, Inc. Item 9: Staff Report Pg. 92 Packet Pg. 410 of 627 Professional Services Rev. Jan 29, 2024 Page 5 of 21 personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Services or a threat to the safety of persons or property. CITY’s Project Manager is Jennifer Armer, Planning & Development Services Department, , 250 Hamilton Avenue Palo Alto, CA, 94301, Telephone: 650-329-2191. CITY’s Project Manager will be CONSULTANT’s point of contact with respect to performance, progress and execution of the Services. CITY may designate an alternate Project Manager from time to time. SECTION 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 errors, omissions, or negligent 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. Docusign Envelope ID: 14257218-E510-424D-AF48-57A29430870E Item 9 Attachment E - C25193458D - Raimi & Associates, Inc. Item 9: Staff Report Pg. 93 Packet Pg. 411 of 627 Professional Services Rev. Jan 29, 2024 Page 6 of 21 16.3. The acceptance of CONSULTANT’s Services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement. SECTION 17. WAIVERS. No waiver of a condition or nonperformance of an obligation under this Agreement is effective unless it is in writing in accordance with Section 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. SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES. 19.1. The City Manager may suspend the performance of the Services, in whole Docusign Envelope ID: 14257218-E510-424D-AF48-57A29430870E Item 9 Attachment E - C25193458D - Raimi & Associates, Inc. Item 9: Staff Report Pg. 94 Packet Pg. 412 of 627 Professional Services Rev. Jan 29, 2024 Page 7 of 21 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. 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 Docusign Envelope ID: 14257218-E510-424D-AF48-57A29430870E Item 9 Attachment E - C25193458D - Raimi & Associates, Inc. Item 9: Staff Report Pg. 95 Packet Pg. 413 of 627 Professional Services Rev. Jan 29, 2024 Page 8 of 21 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 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 Docusign Envelope ID: 14257218-E510-424D-AF48-57A29430870E Item 9 Attachment E - C25193458D - Raimi & Associates, Inc. Item 9: Staff Report Pg. 96 Packet Pg. 414 of 627 Professional Services Rev. Jan 29, 2024 Page 9 of 21 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 (3) is for a public works alteration, demolition, repair, or maintenance project of $15,000 or less, per California Labor Code Sections 1782(d)(1), 1725.5(f) and 1773.3(j). SECTION 27. CLAIMS PROCEDURE FOR “9204 PUBLIC WORKS PROJECTS”. For purposes of this Section 27, a “9204 Public Works Project” means the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind. (Cal. Pub. Cont. Code § 9204.) Per California Public Contract Code Section 9204, for Public Works Projects, certain claims procedures shall apply, as set forth in Docusign Envelope ID: 14257218-E510-424D-AF48-57A29430870E Item 9 Attachment E - C25193458D - Raimi & Associates, Inc. Item 9: Staff Report Pg. 97 Packet Pg. 415 of 627 Professional Services Rev. Jan 29, 2024 Page 10 of 21 Exhibit F, entitled “Claims for Public Contract Code Section 9204 Public Works Projects”. This Project is not a 9204 Public Works Project. SECTION 28. CONFIDENTIAL INFORMATION. 28.1. In the performance of this Agreement, CONSULTANT may have access to CITY’s Confidential Information (defined below). CONSULTANT will hold Confidential Information in strict confidence, not disclose it to any third party, and will use it only for the performance of its obligations to CITY under this Agreement and for no other purpose. CONSULTANT will maintain reasonable and appropriate administrative, technical and physical safeguards to ensure the security, confidentiality and integrity of the Confidential Information. Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to its employees, agents and subcontractors, if any, to the extent they have a need to know in order to perform CONSULTANT’s obligations to CITY under this 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. 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 Docusign Envelope ID: 14257218-E510-424D-AF48-57A29430870E Item 9 Attachment E - C25193458D - Raimi & Associates, Inc. Item 9: Staff Report Pg. 98 Packet Pg. 416 of 627 Professional Services Rev. Jan 29, 2024 Page 11 of 21 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 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. Docusign Envelope ID: 14257218-E510-424D-AF48-57A29430870E Item 9 Attachment E - C25193458D - Raimi & Associates, Inc. Item 9: Staff Report Pg. 99 Packet Pg. 417 of 627 Professional Services Rev. Jan 29, 2024 Page 12 of 21 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: 14257218-E510-424D-AF48-57A29430870E Item 9 Attachment E - C25193458D - Raimi & Associates, Inc. Item 9: Staff Report Pg. 100 Packet Pg. 418 of 627 Professional Services Rev. Jan 29, 2024 Page 13 of 21 CONTRACT No. C25193458D 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 RAIMI & ASSOCIATES, INC. Officer 1 By: Name: Matt Raimi Title: CEO matt@raimiassociates.com Officer 2 (Required for Corp. or LLC) By: Name: Simran Malhotra Title: Principal simran@raimiassociates.com Docusign Envelope ID: 14257218-E510-424D-AF48-57A29430870E Item 9 Attachment E - C25193458D - Raimi & Associates, Inc. Item 9: Staff Report Pg. 101 Packet Pg. 419 of 627 Professional Services Rev. Jan 29, 2024 Page 14 of 21 EXHIBIT A SCOPE OF SERVICES CONSULTANT shall 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 shall at all times retain responsibility for public contracting, including with respect to any subsequent phase of this project. CONSULTANT’s participation in the planning, discussions, or drawing of project plans or specifications shall be limited to conceptual, preliminary, or initial plans or specifications. CONSULTANT shall cooperate with CITY to ensure that all bidders for a subsequent contract on any subsequent phase of this project have access to the same information, including all conceptual, preliminary, or initial plans or specifications prepared by CONSULTANT pursuant to this Scope of Services. CONSULTANT shall ensure that all contract staff assigned to work under this scope shall complete and file a Form 700, Statement of Economic Interests, which can be found at http://www.fppc.ca.gov/Form700.html. This requirement is consistent with the CITY’s Conflict of Interest Code and the California Political Reform Act. CITY will issue TASK ORDERs related to the following services. CITY acknowledges that due to the on-call nature of this contract, that CONSULTANT may not be able complete all noted activities. Activities are listed to give CITY and CONSULTANT broad ability to cover all aspects of CITY needs either directly through CONSULTANT or indirectly through SUBCONTRACTORS. CITY may, at its discretion and with prior written authorization, request the CONSULTANT or SUBCONTRACTORS to perform related planning, community development services and additional services that fall within the general scope of the other planning-related contracts issued under this procurement. Such services will be coordinated and authorized in writing by the CITY and may include related tasks necessary to ensure continuity of planning operations or project delivery. CONSULTANT will write well-organized reports regarding complex planning issues, professionally facilitate meetings, attend, and give presentations at meetings with applicants, consultants, and the public as needed, including public hearings. CONSULTANT will make professional presentations to the Council, City Commissions, and Boards. CONSULTANT will coordinate with CITY staff, departments, consultants, and outside agencies during project reviews and processing and respond to public inquiries. CONSULTANT will work independently, follow direction, seek clarification prior to completion of work assignment, analyze quantitative data and qualitative information, and think creatively and critically. CONSULTANT will provide the following activities (as applicable): 1. Provide project management support for long-range planning and policy development and implementation initiatives. 2. Prepare staff reports, presentations, and supporting materials for City Council, Planning and Transportation Commission, Architectural Review Board, and other public/community meetings. Docusign Envelope ID: 14257218-E510-424D-AF48-57A29430870E Item 9 Attachment E - C25193458D - Raimi & Associates, Inc. Item 9: Staff Report Pg. 102 Packet Pg. 420 of 627 Professional Services Rev. Jan 29, 2024 Page 15 of 21 3. Present at public hearings, workshops, and community engagement meetings. 4. Draft and support adoption of planning documents, including Comprehensive Plan amendments, Zoning Code updates, area plans, and other long-range planning studies. 5. Conduct research, policy analysis, technical studies, and assist with the implementation of State laws and regional planning initiatives. 6. Prepare ordinances, resolutions, and related implementation tools in support of long-range planning policies. 7. Prepare environmental analysis and determinations for projects, as necessary, in conformance with the California Environmental Quality Act (CEQA) and National Environmental Quality Act (NEPA). 8. Provide specialized support in urban design, visual/spatial analysis, and renter protection policies. 9. Assist with the preparation of annexation applications and support items related to the Local Agency Formation Commission (LAFCO). 10. Additional related tasks or projects, as assigned. Docusign Envelope ID: 14257218-E510-424D-AF48-57A29430870E Item 9 Attachment E - C25193458D - Raimi & Associates, Inc. Item 9: Staff Report Pg. 103 Packet Pg. 421 of 627 Professional Services Rev. Jan 29, 2024 Page 16 of 21 EXHIBIT A-1 PROFESSIONAL SERVICES TASK ORDER CONSULTANT shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 are incorporated into this Task Order by this reference. CONSULTANT shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below. CONTRACT NO. OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE) 1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE): 1B. TASK ORDER NO.: 2. CONSULTANT NAME: 3. PERIOD OF PERFORMANCE: START: COMPLETION: 4 TOTAL TASK ORDER PRICE: $__________________ BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT $_______________ 5. BUDGET CODE_______________ COST CENTER________________ COST ELEMENT______________ WBS/CIP__________ PHASE__________ 6. CITY PROJECT MANAGER’S NAME & DEPARTMENT:_____________________________________ 7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A) MUST INCLUDE: SERVICES AND DELIVERABLES TO BE PROVIDED SCHEDULE OF PERFORMANCE MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable) REIMBURSABLE EXPENSES, if any (with “not to exceed” amount) 8. ATTACHMENTS: A: Task Order Scope of Services B (if any): _____________________________ I hereby authorize the performance of the work described in this Task Order. APPROVED: CITY OF PALO ALTO BY:____________________________________ Name __________________________________ Title___________________________________ Date ___________________________________ I hereby acknowledge receipt and acceptance of this Task Order and warrant that I have authority to sign on behalf of Consultant. APPROVED: COMPANY NAME: ______________________ BY:____________________________________ Name __________________________________ Title___________________________________ Date ___________________________________ Docusign Envelope ID: 14257218-E510-424D-AF48-57A29430870E Item 9 Attachment E - C25193458D - Raimi & Associates, Inc. Item 9: Staff Report Pg. 104 Packet Pg. 422 of 627 Professional Services Rev. Jan 29, 2024 Page 17 of 21 EXHIBIT B SCHEDULE OF PERFORMANCE Optional Schedule of Performance Provision for On-Call or Additional Services Agreements. (This provision only applies if checked and only applies to on-call agreements per Section 1 or agreements with Additional Services per Section 4.) The schedule of performance shall be as provided in the approved Task Order, as detailed in Section 1 (Scope of Services) in the case of on-call Services, or as detailed in Section 4 in the case of Additional Services, provided in all cases that the schedule of performance shall fall within the term as provided in Section 2 (Term) of this Agreement. Docusign Envelope ID: 14257218-E510-424D-AF48-57A29430870E Item 9 Attachment E - C25193458D - Raimi & Associates, Inc. Item 9: Staff Report Pg. 105 Packet Pg. 423 of 627 Professional Services Rev. Jan 29, 2024 Page 18 of 21 EXHIBIT C COMPENSATION CITY agrees to compensate CONSULTANT for the Services performed in accordance with the terms and conditions of this Agreement, including Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4 of the Agreement), based on the hourly rate schedule attached as Exhibit C-1. The compensation to be paid to CONSULTANT under this Agreement for all Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4), shall not exceed the amount(s) stated in Section 4 of this Agreement. CONSULTANT agrees to complete all Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4), within this/these amount(s). Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth in this Agreement shall be at no cost to the CITY. REIMBURSABLE EXPENSES CONSULTANT’S ordinary business expenses, such as administrative, overhead, administrative support time/overtime, information systems, software and hardware, photocopying, telecommunications (telephone, internet), in-house printing, insurance and other ordinary business expenses, are included within the scope of payment for Services and are not reimbursable expenses hereunder. Reimbursable expenses, if any are specified as reimbursable under this section, will be reimbursed at actual cost. The expenses (by type, e.g. travel) for which CONSULTANT will be reimbursed are: A. Travel outside the San Francisco Bay Area, including transportation and meals, if specified as reimbursable, will be reimbursed at actual cost subject to the City of Palo Alto’s policy for reimbursement of travel and meal expenses. B. Long distance telephone service charges, cellular phone service charges, facsimile transmission and postage charges, if specified as reimbursable, will be reimbursed at actual cost. All requests for reimbursement of expenses, if any are specified as reimbursable under this section, shall be accompanied by appropriate backup documentation and information. Docusign Envelope ID: 14257218-E510-424D-AF48-57A29430870E Item 9 Attachment E - C25193458D - Raimi & Associates, Inc. Item 9: Staff Report Pg. 106 Packet Pg. 424 of 627 Professional Services Rev. Jan 29, 2024 Page 19 of 21 EXHIBIT C-1 SCHEDULE OF RATES CONSULTANT’s schedule of rates for Additional Services per Section 4 is as follows: CITY and CONSULTANT may at any time mutually agree to add new position titles, rates, and adjust listed rates so long as the changes do not increase the not to exceed compensation amount as specified in Section 4 of the Agreement. Rates likely to adjust each January 1st of each year up to and not to exceed 3-5% increase or no greater the CPI. Title Hourly Rate ($) Senior Principal/Principal 285 Associate Principal 250 Senior Associate 225 Intermediate Associate 215 Associate 200 Senior Planner/Designer/Researcher II 190 Senior Planner/Designer/Researcher I 180 Intermediate Planner/Designer II 170 Intermediate Planner/Designer I 160 Planner/Designer/Researcher II 140 Planner/Designer/Researcher I 125 Finance Director 175 Account Manager 125 Intern 75 Docusign Envelope ID: 14257218-E510-424D-AF48-57A29430870E Item 9 Attachment E - C25193458D - Raimi & Associates, Inc. Item 9: Staff Report Pg. 107 Packet Pg. 425 of 627 Professional Services Rev. Jan 29, 2024 Page 20 of 21 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 (if any), HIRED, NON-OWNED BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONSULTANT, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONSULTANT AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. CONSULTANT’S COMMERICAL GENERAL LIABILITY POLICY SHALL INCLUDE A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONSULTANT’S AGREEMENT TO INDEMNIFY CITY AS DEFINED AS AN INSURED AGREEMENT UNDER SAID POLICY. II. THE CONSULTANT MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE AT THE FOLLOWING EMAIL: PURCHASINGSUPPORT@CITYOFPALOALTO.ORG III. ENDORSEMENT PROVISIONS WITH RESPECT TO THE INSURANCE AFFORDED TO ADDITIONAL INSUREDS: A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. Docusign Envelope ID: 14257218-E510-424D-AF48-57A29430870E Item 9 Attachment E - C25193458D - Raimi & Associates, Inc. Item 9: Staff Report Pg. 108 Packet Pg. 426 of 627 Professional Services Rev. Jan 29, 2024 Page 21 of 21 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 SENT TO THE FOLLOWING EMAIL: PURCHASINGSUPPORT@CITYOFPALOALTO.ORG Docusign Envelope ID: 14257218-E510-424D-AF48-57A29430870E Item 9 Attachment E - C25193458D - Raimi & Associates, Inc. Item 9: Staff Report Pg. 109 Packet Pg. 427 of 627 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Public Works Meeting Date: August 11, 2025 Report #:2505-4733 TITLE Approval of Increase of Construction Contingency for Contract No. C24189237 with SAK Construction, LCC in the amount of $1,800,000, Funded by the Wastewater Treatment Enterprise Fund for the Joint Intercepting Sewer Rehabilitation (Phase 1) Project (WQ 24000), and Approval of a Budget Amendment in the Wastewater Treatment Fund; CEQA Status - Exempt under CEQA Guidelines Section 15301 (Repairs to Existing Facilities) RECOMMENDATION Staff recommends that the City Council: 1. Approve an increase of construction contingency for Contract No. C24189237 with SAK Construction, LCC in an amount not to exceed $1,800,000 for a total contract contingency amount not to exceed $2,534,770; and 2. Approve an amendment to the Fiscal Year 2026 Adopted Capital Budget Appropriation for the Wastewater Treatment Fund (requires a 2/3 majority vote) by: a. Increasing the Joint Intercepting Sewer Rehabilitation (Phase 1) project (WQ-24000) appropriation by $700,000; and b. Decreasing the Wastewater Treatment Fund balance by $700,000. EXECUTIVE SUMMARY The Joint Intercepting Sewer Rehabilitation (Phase 1) Project will install a structural liner in a critical 72-inch sewer pipeline that conveys over half the influent flow to the Regional Water Quality Control Plant (RWQCP). The City awarded a $8.1 million construction contract to SAK Construction, LLC in December 2023, including a 10% construction contingency. During construction, significant unforeseen site conditions, contractor schedule and sequencing challenges, and necessary design clarifications required change orders that have nearly exhausted the original contingency. While the main pipe rehabilitation work is complete, further work including bypass rerouting, manhole modifications, and structural evaluation of a major junction structure necessitates an Item 10 Item 10 Staff Report Item 10: Staff Report Pg. 1 Packet Pg. 428 of 627 increase to the construction contingency. Staff recommends increasing the contingency by $1,800,000. If the contingency is fully utilized, the total contract not-to-exceed amount would be $9,882,470. Cost-sharing among RWQCP partner agencies will be reconciled based on final expenditures. BACKGROUND The Joint Intercepting Sewer Rehabilitation (Phase 1) Project rehabilitates 2,364 linear feet of deteriorated 72-inch diameter concrete sewer pipe using cured-in-place pipe (CIPP) lining, addressing extensive corrosion in a critical section of the Joint Intercepting Sewer (JIS) system leading to the RWQCP. This section of the JIS conveys most of the wastewater flow from Mountain View, Los Altos, Los Altos Hills, and Palo Alto to the RWQCP. There are other sewers leading to the RWQCP, but these are maintained by the Utilities Department, Stanford University, and the East Palo Alto Sanitary District and not included in the scope of this Project. City Council awarded the design contract for the Project to Jacobs Engineering Group, Inc. on May 16, 2022, and the design was completed in August 2023.1 On December 11, 2023, City Council approved a funding agreement with partners, a construction contract with SAK Construction, LLC (SAK) for a base amount of $7,347,700 and a 10% contingency of $734,770, for a total not-to-exceed amount of $8,082,470, as well as an amendment to the construction management services contract with Tanner Pacific, Inc.2 Construction began in winter 2024 but encountered delays due to unforeseen site conditions, including difficult access and obstructions not visible during pre-construction investigations, as well as contractor schedule and sequencing challenges. These delays pushed field construction activities into the 2025 dry season. On June 9, 2025, Council approved amendments to related contracts for Jacobs Engineering Group, Inc., Tanner Pacific, Inc., and Carollo Engineers, Inc. to support continued engineering and construction management services through the extended schedule.3 ANALYSIS While the primary pipe rehabilitation (CIPP lining) was successfully completed, during the initial phases of construction, there were project delays due to unforeseen site conditions, as well as 1 City Council, May 16 2022; Consent Item #7; SR #14164, https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=81838 2 City Council, December 11, 2023; Consent Item #2; SR #2308-1879, https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=82522 3 City Council, June 9, 2025; Consent Item #11; SR #2504-4519, https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=83447 Item 10 Item 10 Staff Report Item 10: Staff Report Pg. 2 Packet Pg. 429 of 627 contractor schedule and sequencing challenges. These delays pushed field construction activities into the 2025 dry season. Additional unforeseen work became necessary, including: Excavation and backfill to construct pump pads at two additional locations Landfill cap material import and placement after landfill waste discovered during excavations Replacement of a manhole base deemed structurally unsuitable Modifications to existing manholes to accommodate liner transitions Addressing complications with the bypass pumping system due to higher-than- anticipated flow variability. Isolation and structural evaluation of a critical junction box (JB-0), which was previously inaccessible Additional temporary bypass rerouting to enable safe inspection of JB-0 and repair FISCAL/RESOURCE IMPACT Item 10 Item 10 Staff Report Item 10: Staff Report Pg. 3 Packet Pg. 430 of 627 project (WQ-24000) by $700,000 (there is currently $1.1 million available in the project), from $12.4 million to $13.1 million. STAKEHOLDER ENGAGEMENT Item 10 Item 10 Staff Report Item 10: Staff Report Pg. 4 Packet Pg. 431 of 627 Project notices and updates have been shared with the Parks and Recreation Commission and through City newsletters, with staff responding to public inquiries and keeping stakeholders informed throughout key milestones. On February 25, 2025, staff briefed the Parks and Recreation Commission (PRC) on construction progress and on Byxbee Park Western Trail Temporary Closure from 3/30/2025 to 11/30/2025 for the Sewer Pipe Rehabilitation.7 On July 22, 2025, staff provided an update to the PRC during the Departmental Report. ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: 7 Parks and Recreation Commission, February 25, 2025; Agenda Item #3; SR# 2502-4115, https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=16875 Item 10 Item 10 Staff Report Item 10: Staff Report Pg. 5 Packet Pg. 432 of 627 Le g e n d ±Condition Assessment Figure Exp o r t e d : 7 / 2 9 / 2 0 2 0 B y : k b r a d l e y U s i n g : \ \ w o o d a r d c u r r a n . n e t \ s h a r e d \ P r o j e c t s \ R M C \ S J \ 0 3 8 - 0 1 4 P a l o A l t o R W Q C P P r o g r a m M a n a g e m e n t \ B . P r o g r a m M a n a g e m e n t \ 7 . O t h e r P r o j e c t s \ 7 2 I n c h C o n d A s s e m t \ C A \ M a p s \ P a l o A l t o _ 7 2 I n c h . m x d Project #: 0038014.01Map Created: July 202000.1 0.20.05 Miles Third Party GIS Disclaim er: This m ap is for reference and graphical purposes only and should not be relied upon by third parties for any legal decisions. Any reliance upon the m ap or data contained herein shall be at the users’ sole risk . Data Sources: !Manholes and Structures Future Phase 1 REGIONAL WATER QUALITYCONTROL PLANT REGIONAL WATER QUALITY CONTROL PLANT FLOWFLOW FIGURE 7: RECOMMENDED PROJECT PRIORITIZATION 21 Palo AltoTrunk Sewer Trunk Sewer Interceptor Attachment A: SITE MAP This Project Item 10 Attachment A - Site Map Showing the Pipe Alignment and Project Phases Item 10: Staff Report Pg. 6 Packet Pg. 433 of 627 Attachment B ‐ Partner Agencies Cost Share Summary for Construction Phase Agency Fixed Cost Share % Estimated Cost at Time of Construction Award in December 2023 Estimated Cost in June 2025 Current Estimated Cost City of Mountain View 62.50% $4,398,734 $4,808,985 $4,808,985 City of Palo Alto 18.24% $1,283,727 $1,403,454 $1,403,454 City of Los Altos 15.00% $1,055,696 $1,154,156 $1,154,156 Town of Los Altos Hills 4.26% $299,818 $327,780 $327,780 Subtotal: 100.00% $7,037,975 $7,694,376 $7,694,376 Agency Estimated Cost Share %* Estimated Cost at Time of Construction Award in December 2023 Estimated Cost in June 2025 Current Estimated Cost** City of Mountain View 39.31% $760,885 $799,365 $1,507,000 City of Palo Alto 36.66% $663,379 $745,477 $1,405,000 City of Los Altos 10.14% $206,393 $206,196 $389,000 Town of Los Altos Hills 1.98% $38,699 $40,263 $76,000 East Palo Alto Sanitary District 5.56% $104,904 $113,062 $213,000 Stanford University 6.35% $122,736 $129,127 $243,000 Subtotal: 100.00% $1,896,996 $2,033,489 $3,833,000 ** Includes additional contingency of $1.8 M Agency Overall Project Cost Share % Estimated Total Cost at Time of Construction Award in December 2023 Estimated Total Cost in June 2025 Current Estimated Total Cost City of Mountain View 54.79% $5,159,619 $5,608,349 $6,316,000 City of Palo Alto 24.36% $1,947,106 $2,148,931 $2,809,000 City of Los Altos 13.39% $1,262,089 $1,360,352 $1,543,000 Town of Los Altos Hills 3.50% $338,516 $368,043 $404,000 East Palo Alto Sanitary District 1.85% $104,904 $113,062 $213,000 Stanford University 2.11% $122,736 $129,127 $243,000 Total, Not‐to‐Exceed: 100.00% $8,934,970 $9,727,865 $11,528,000 * Estimate only based on FY2025 cost share (actual cost share will be determined after project completion based on wastewater flows and strength contributed by each partner in 2024, 2025, and 2026). Table B‐2: Cost for Bypass Pumping during Construction inside The Plant Table B‐1: Project Costs during Construction (Less Bypass Pumping Inside The Plant) Table B‐3: Not‐to‐Exceed Cost for Partners during Construction (Sum of Table B‐1 and B‐2) Item 10Attachment B - PartnerAgencies Cost ShareSummary Item 10: Staff Report Pg. 7 Packet Pg. 434 of 627 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: IT Department Meeting Date: August 11, 2025 Report #:2506-4836 TITLE Approval of Amendment No. 1 to Contract No. C22182051 with EPI-USE Labs LLC to Increase the Compensation by $939,675 for the City’s AWS Cloud and SAP Basis Support Services and Extending the Term by 12 months to December 31, 2026; CEQA status - exempt under 15061(b)(3).; RECOMMENDATION Staff recommends that the City Council approve and authorize the City Manager or designee to execute Amendment No. 1 to Contract No. C22182051 with EPI-USE Labs LLC (Attachment A) to extend the term of the contract by 12 months to December 31, 2026 and adds $854,250 for base services and $85,425 for additional services, for a new total not-to-exceed amount of $3,153,815, for the City’s AWS Cloud and SAP Basis Services over a total term of 4.5 years. EXECUTIVE SUMMARY Staff recommend amending the City’s contract with EPI-USE Labs LLC to extend the term by 12 months to December 31, 2026. This amendment supports the City’s ongoing operations in the Amazon Web Services (AWS) cloud environment and SAP system management. The City is simultaneously preparing for the sunset of the current SAP version in 2027. The contract allows for continued hosting, networking, technical SAP Basis services, and as-needed support via task orders. The services will be delivered by EPI-USE Labs LLC, a vendor originally selected through a Request for Proposals (RFP) process completed in June 2022. BACKGROUND In May 2021, the City issued an RFP to procure cloud hosting and AWS support services. The selection criteria emphasized vendor ability to support SAP in the AWS environment, staff expertise across domains (infrastructure, networking, security, SAP Basis), pricing breakdowns, and long-term cost considerations including AWS discounts. Item 11 Item 11 Staff Report Item 11: Staff Report Pg. 1 Packet Pg. 435 of 627 EPI-USE Labs LLC was selected based on their technical expertise, customer references, and competitive pricing. The original three-and-a-half-year contract, approved by City Council on June 20, 2022 (CMR ID #139941), was for an amount not to exceed $2,214,140—covering basic services and contingency funding for additional services through task orders. ANALYSIS AWS account and infrastructure management, Cloud hosting and network operations support, Ongoing SAP Basis administration (monitoring, performance tuning, patching, etc.), On-demand, ad-hoc technical/functional support via City-issued task orders. FISCAL/RESOURCE IMPACT STAKEHOLDER ENGAGEMENT 1 Archived June 20, 2022 City Council Staff Report: https://www.paloalto.gov/City-Hall/City-Council/Council- Agendas-Minutes Item 11 Item 11 Staff Report Item 11: Staff Report Pg. 2 Packet Pg. 436 of 627 ENVIRONMENTAL REVIEW The approval of this contract amendment is exempt from review under the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15061(c)(3). ATTACHMENTS Attachment A: EPI-USE Labs Contract, C22182051 Amendment No. 1 APPROVED BY: Darren Numoto, Chief Information Officer Item 11 Item 11 Staff Report Item 11: Staff Report Pg. 3 Packet Pg. 437 of 627 Vers.: Aug. 5, 2019 Page 1 of 44 AMENDMENT NO.1 TO CONTRACT NO. C22182051 BETWEEN THE CITY OF PALO ALTO AND EPI-USE LABS, LLC This Amendment No.1 (this “Amendment”) to Contract No. C22182051 (the “Contract” as defined below) is entered into as of August 1, 2025 by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and EPI-USE LABS, LLC, a Wyoming limited liability company, located at 1155 Perimeter Center West, Ste 1100, Atlanta, GA 30338 (“CONSULTANT”). CITY and CONTRACTOR are referred to collectively as the “Parties” in this Amendment. R E C I T A L S A. The Contract (as defined below) was entered into by and between the Parties hereto for the provision of Hosting Services in AWS (Amazon Web Services) Cloud and SAP Basis Support Services for the CITY’s ERP system, as detailed therein. B. The Parties now wish to amend the Contract in order to extend the term for a 1- year extension, changing the expiration term date of this Amendment from December 31, 2025 to December 31, 2026; and increase compensation by $939,675, changing a total not to exceed amount from $2,214,140 to $3,153,815. NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the Parties agree: SECTION 1. Definitions. The following definitions shall apply to this Amendment: a. Contract. The term “Contract” shall mean Contract No. C22182051 between CONSULTANT and CITY, dated June 21, 2022. b. Other Terms. Capitalized terms used and not defined in this Amendment shall have the meanings assigned to such terms in the Contract. SECTION 2. Section 2. “TERM” of the Contract is hereby amended to read as follows: “The term of this Agreement shall be from the date of its full execution through December 31, 2026, unless terminated earlier pursuant to Section 19 (Termination) of this Agreement. SECTION 3. Section 4. “NOT TO EXCEED COMPENSATION” of the Contract is hereby amended to read as follows: “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 Docusign Envelope ID: ED1CBE7F-8D59-424C-ABDD-289D79D7B4A3 Item 11 Attachment A - EPI-USE Labs Contract, C22182051 Amendment No. 1 Item 11: Staff Report Pg. 4 Packet Pg. 438 of 627 Vers.: Aug. 5, 2019 Page 2 of 44 Two Million Eight Hundred Sixty Eight Thousand Three Hundred Ninety Dollars ($2,868,390.00). 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 Two Hundred Eighty Five Thousand Dollars ($285,425.00) 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 Three Million One Hundred Fifty Three Thousand Eight Hundred Fifteen Dollars ($3,153,815.00), 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 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 4. Section 19. “TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES” of the Contract is hereby amended to read as follows: Docusign Envelope ID: ED1CBE7F-8D59-424C-ABDD-289D79D7B4A3 Item 11 Attachment A - EPI-USE Labs Contract, C22182051 Amendment No. 1 Item 11: Staff Report Pg. 5 Packet Pg. 439 of 627 Vers.: Aug. 5, 2019 Page 3 of 44 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 thirty (30) 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 (Intellectual Property; Data), 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 (Intellectual Property; Data). 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 5. The following exhibit(s) to the Contract is/are hereby amended or added, as indicated below, to read as set forth in the attachment(s) to this Amendment, which is/are hereby incorporated in full into this Amendment and into the Contract by this reference: a. Exhibit “A” entitled “SCOPE OF SERVICES”, AMENDED, REPLACES PREVIOUS. b. Exhibit “B” entitled “SCHEDULE OF PERFORMANCE”, AMENDED, REPLACES PREVIOUS. c. Exhibit “C” entitled “COMPENSATION”, AMENDED, REPLACES PREVIOUS. SECTION 6. Legal Effect. Except as modified by this Amendment, all other provisions of the Contract, including any exhibits thereto, shall remain in full force and effect. Docusign Envelope ID: ED1CBE7F-8D59-424C-ABDD-289D79D7B4A3 Item 11 Attachment A - EPI-USE Labs Contract, C22182051 Amendment No. 1 Item 11: Staff Report Pg. 6 Packet Pg. 440 of 627 Vers.: Aug. 5, 2019 Page 4 of 44 SECTION 7. Incorporation of Recitals. The recitals set forth above are terms of this Amendment and are fully incorporated herein by this reference. (SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.) Docusign Envelope ID: ED1CBE7F-8D59-424C-ABDD-289D79D7B4A3 Item 11 Attachment A - EPI-USE Labs Contract, C22182051 Amendment No. 1 Item 11: Staff Report Pg. 7 Packet Pg. 441 of 627 Vers.: Aug. 5, 2019 Page 5 of 44 SIGNATURES OF THE PARTIES IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed this Amendment effective as of the date first above written. CITY OF PALO ALTO City Manager) APPROVED AS TO FORM: City Attorney or Designee (Contract over $25k) EPI-USE LABS, LLC Officer 1 By: Name: Title: Officer 2 (Required for Corp. or LLC) By: Name: Title: Attachments: ▪ EXHIBIT A – SCOPE OF SERVICES, AMENDMENT NO.1 (AMENDED, REPLACES PREVIOUS) ▪ EXHIBIT B – SCHEDULE OF PERFORMANCE, AMENDMENT NO.1 (AMENDED, REPLACES PREVIOUS) ▪ EXHIBIT C – COMPENSATION, AMENDMENT NO.1 (AMENDED, REPLACES PREVIOUS) Docusign Envelope ID: ED1CBE7F-8D59-424C-ABDD-289D79D7B4A3 VP Services, Americas Lyall Hinton Kevin Mukheibir Global TechOps Lead Item 11 Attachment A - EPI-USE Labs Contract, C22182051 Amendment No. 1 Item 11: Staff Report Pg. 8 Packet Pg. 442 of 627 Vers.: Aug. 5, 2019 Page 6 of 44 EXHIBIT A SCOPE OF SERVICES, AMENDMENT NO.1 (AMENDED, REPLACES PREVIOUS) The CONSULTANT will provide Hosting Services in AWS Cloud and SAP Basis Support Services for the City’s ERP system, including the Services detailed below in this Exhibit A, entitled “SCOPE OF SERVICES.” SCOPE OF SERVICES – OVERVIEW This scope of services overview summarizes at a high level the Services to be provided, broken out into Tasks 1-5, which carry over to Exhibit B (Schedule of Performance) and Exhibit C (Compensation). Following this overview, the scope of services is provided in greater detail. A. (TASK 1) Transfer to CONSULTANT the CITY’s existing Amazon Web Services (AWS) hosting account in AWS cloud, Amendment No.1 (Completed) CONSULTANT will transfer to CONSULTANT the CITY’s existing Amazon Web Services (AWS) hosting account for the CITY’s ERP system including but not limited to the following activities: (1) Perform account transfer process in AWS cloud to CONSULTANT from CITY’s current third-party provider to enable the CONSULTANT to assume hosting and management and other services as detailed in this Agreement. B. (TASK 2) Maintain account with AWS for hosting City’s infrastructure CONSULTANT will maintain the CITY’s account with AWS for hosting the CITY’s ERP system, including but not limited to the following account activities: (1) Pay annual hosting fees to AWS for maintaining City’s infrastructure. C. (TASK 3) Perform hosting and networking maintenance services CONSULTANT will provide hosting and maintenance services including but not limited to the following: (1) Ensure uptime and security of all SAP related servers. (2) Offer Operating System support (SUSE Linux and Windows) on an as needed basis. (3) Offer Networking support on an as needed basis (e.g. opening of firewall ports, etc.). (4) Share AWS pricing details (including AWS billing invoices per month) for all hosted AWS services and help City realize any pricing discounts as and when offered by AWS. (5) Share Cloudwatch report on a monthly basis and latest resource consumption. (6) Share AWS hosting bill on a monthly basis. (7) Manage and configure firewall in AWS for Direct Connect and Internet access from AWS. (8) Manage and configure Site to Site and Client to Site VPN for AWS access. (9) Ensure designated City staff members have full read access to the AWS administrator console for auditing and troubleshooting purposes. (10) Help with Security Penetration testing services as and when requested. Docusign Envelope ID: ED1CBE7F-8D59-424C-ABDD-289D79D7B4A3 Item 11 Attachment A - EPI-USE Labs Contract, C22182051 Amendment No. 1 Item 11: Staff Report Pg. 9 Packet Pg. 443 of 627 Vers.: Aug. 5, 2019 Page 7 of 44 (11) Provide documentation and cross-training to City’s Operations staff as requested. D. (TASK 4) Perform SAP Basis Services CONSULTANT will provide SAP Basis Services including but not limited to the following: (1) Ensure all SAP systems are available in AWS cloud and performing as per SLA. (2) Perform backups regularly [Server level and Database level]. (3) Restore servers and/or databases when necessary [All SAP servers are running on HANA database; one interface application servers are running on MySQL]. (4) Apply SAP Kernel patches as necessary [Once a quarter or six months]. (5) Apply Database patches as necessary [Once a year or so]. (6) Apply SAP HR legal patches and other required support packs/stacks as necessary [Usually once a year]. (7) Monitor SAP applications and resources using SAP Solution Manager [Solution Manager is already configured]. (8) Help with performance tuning of SAP application and/or databases. (9) Provide documentation and cross-training to City’s Basis staff as requested. (10) Provide access to City’s Basis staff at OS and Database level as needed basis and consider them as an extension to your own Basis team. (11) Share resumes of all potential Basis resources that support City’s SAP environment. E. (TASK 5 – Additional Services) Perform ad-hoc services on as needed requests that are not covered in the Scope of Services. These services constitute Additional Services under Section 4 (Not to Exceed Compensation) of this Agreement, implemented pursuant to City- approved Task Order as detailed in Section 4. Examples of such Additional Services include without limitation: (1) Perform ad-hoc (Additional Services per Section 4) hosting and networking services such as enabling additional AWS services, building new application and/or database servers that are not included in the Scope of Services. (2) Perform ad-hoc (Additional Services per Section 4) Basis services such as installation and configuration of new SAP applications and SAP HANA databases that are not included in the Scope of Services. (3) Perform other ad hoc (Additional Services per Section 4) services that are not included in the Scope of Services as may be requested by CITY. (4) Any Managed Services specifically requested by the City of Palo Alto outside normal business hours (except for P1 incidents and in-scope Managed Services production system work). (THIS SCOPE OF SERVICES IS CONTINUED ON THE NEXT PAGE.) Docusign Envelope ID: ED1CBE7F-8D59-424C-ABDD-289D79D7B4A3 Item 11 Attachment A - EPI-USE Labs Contract, C22182051 Amendment No. 1 Item 11: Staff Report Pg. 10 Packet Pg. 444 of 627 Vers.: Aug. 5, 2019 Page 8 of 44 SCOPE OF SERVICES – IN DETAIL 1. Key Contacts CONSULTANT’s Key Contacts for this Agreement are as follows below. Day-to-day communications regarding implementation of the Agreement are to be directed to the appropriate Key Contact, as detailed in Section 13 (Project Management) of the Agreement. Account Manager: Lyall Hinton Americas Services +1 415 343 5368 lyall@labs.epiuse.com Basis Service Delivery Manager: Arno Groenewald Service Delivery Manager +1 404 528 4347 arnog@labs.epiuse.com AWS (Cloud) Service Delivery Manager: Sethu Manuel Service Delivery Manager +91 949 682 4501 sethu.manuel@epiuse.com Address: 2002 Summit Blvd, #300 Atlanta, Georgia 30319 2. Managed Services Overview The purpose of this Scope of Services is to communicate the objectives, deliverables, and activities to carry out this Scope of Services for the provision of AWS Cloud and SAP Basis Support Services (also referred to herein as the “Managed Services”) for the City’s SAP systems, as defined in Section 14 (Intellectual Property; Data) of this Agreement. The City SAP landscape is used to deliver business critical functions, and it is pivotal that these systems remain reliable and accurate. The Managed Services delivery model is core in supporting such services, which include: • Cloud services (AWS), which include platform and infrastructure services. • Security services providing network and application security protocols to secure and protect valuable personal and City-specific information. Docusign Envelope ID: ED1CBE7F-8D59-424C-ABDD-289D79D7B4A3 Item 11 Attachment A - EPI-USE Labs Contract, C22182051 Amendment No. 1 Item 11: Staff Report Pg. 11 Packet Pg. 445 of 627 Vers.: Aug. 5, 2019 Page 9 of 44 • Basis services with specialized SAP platform maintenance services. By using EPI-USE developed IP and products, the automated software applications provide the Managed Services team with the ability to proactively monitor, alert and resolve issues before they can cause delays to business-critical functions. The service delivery framework is made possible with a variety of tasks occurring during a calendar year ranging from daily, weekly, monthly, quarterly, bi-annually, and annual activities. A mixture of run-the- services, proactive support, advisory services, and a centralized ticketing environment ensures this continuity can be achieved. These activities form part of the overall Managed Services solution provided to the City. To highlight a few: • 24/7 support, as remote services. • Daily checks, monitoring, alerts, proactive maintenance and housekeeping. • Incident management. • Service level agreement (SLA) tracking. • Operating system, database and SAP system support packs and patching. • System refreshes to non-production systems; and • Client Central for document repository. To carry out this service, EPI-USE Labs will have the responsibility to determine and manage all qualified and skilled resources used to provide the solution as a service to the City. EPI-USE shall provide the City with Managed Services as outlined in this Scope of Services. On completion of a transition and onboarding period, EPI-USE will commence with the Managed Services offering. Figure 1:EPI-USE Labs Managed Services Scope of Services for the City 3. Operating Model EPI-USE Managed Services Application Managed Services Basis Managed Services Security Managed Services AWS Managed Services Continuous Improvement Upgrades Patches Monitor SLA Resolve Advisory Self-Service EPI-USE IP (Process, Product, People) as a Foundation Technical Managed Services Docusign Envelope ID: ED1CBE7F-8D59-424C-ABDD-289D79D7B4A3 Item 11 Attachment A - EPI-USE Labs Contract, C22182051 Amendment No. 1 Item 11: Staff Report Pg. 12 Packet Pg. 446 of 627 Vers.: Aug. 5, 2019 Page 10 of 44 The EPI-USE Managed Services offering provides basis and platform solution coverage across the SAP areas as depicted in Figure 1. The operating model centers around allocating a dedicated single point of contact (SPOC – Service Delivery Managers) per area (Cloud and Basis) to ensure continuity in communication and solution delivery standards. The team structure will consist of a variety of lead functions to manage architecture, risk, basis, and platform streams. Additionally, the team has been structured in an agile manner, ensuring the required delivery capability is readily available through peak periods. To ensure continuity with minimal impact, the Managed Services team members will be selected from the large pool of EPI-USE Labs consultants who will become familiar with the City processes and systems. Some of the main priorities of the Managed Services model will be on monitoring, housekeeping and incident management, governed by Service Level Agreements (SLAs). Incidents, changes, and requests will be raised by CITY with EPI-USE Labs via the EPI-USE ticketing system, Client Central. The EPI-USE Support team will assess incidents quickly and recommend approaches to incident resolution or propose changes to the system. Standby and after-hours support will be provided for production system emergencies and tasks that cannot be executed during normal business hours. An outline of Roles and Responsibilities is outlined in Addendum B, as some activities will be carried out by the City’s internal basis team as detailed therein. Furthermore, SAP basis administration on the Sandbox will be carried out by the City’s internal team, while at the same time, EPI-USE Labs will encourage knowledge transfer activities to the City’s internal Basis team. 3.1 Service Operating hours Normal service operating hours relating to normal business hours is detailed below. This excludes US federal holidays. Monday to Friday: 08:00 to 17:00 US Pacific Time 3.2 Governance The governance structure for EPI-USE’s service delivery will include all stakeholders from EPI-USE and City’s IT department (or other staff as needed) in the service delivery model, along with an escalation process, which will be part of the Managed Services engagement itself. Monthly service review meetings (also referred to as steering committee meetings) will be held to monitor and share information about service delivery, for example, about performance, tickets, incidents, and the status of responses to incidents. The three escalation levels are as follows: • Level 1 – Service Manager (also referred to as Service Delivery Manager) • Level 2 – Account Executive; and • Level 3 – Executive Sponsor. Docusign Envelope ID: ED1CBE7F-8D59-424C-ABDD-289D79D7B4A3 Item 11 Attachment A - EPI-USE Labs Contract, C22182051 Amendment No. 1 Item 11: Staff Report Pg. 13 Packet Pg. 447 of 627 Vers.: Aug. 5, 2019 Page 11 of 44 The Service Delivery Manager will resolve most escalations as that role encompasses an overview of all the activities for the City under this Agreement. Issues the Service Delivery Manager cannot resolve will be referred up the escalation structure for resolution at a higher level. The Service Delivery Manager will be the owner of the monthly service reviews and sit on the steering committee for monthly service reviews. Any additional scope (also referred to herein as Additional Services per Section 4 of this Agreement) items to this Agreement will be outlined and a way forward will be discussed in these meetings, to be implemented in accordance with the provisions of this Agreement, for example, pursuant to a Task Order per Section 4 or a contract amendment per Section 29.4. 3.2.1 Governance and Review reporting The following reports will be provided at the monthly service review meeting, or when required: • Platform performance metrics. • End-user response times and trends. • Network statistics. • CPU performance. • System uptime. • Incident SLA reports. • Total number of tickets handled (both AWS- and SAP-related) • Storage and usage. • Backup/DR reporting; and • AV reporting. 3.3 Service Levels (or “Service Level Agreements” or “SLAs”) EPI-USE will adhere to the Service Levels detailed below, providing timely resolution of incidents and technical issues, and ensuring that the City’s SAP enterprise resource planning (ERP) system continues to deliver efficient services to the City’ business units. A Service Level may also be referred to herein as a “Service Level Agreement” or “SLA”. Figure 2:Service Levels (SLA) Px Definition Response time after Notification Provide Solution Time Target Resolution Time Escalation Path Docusign Envelope ID: ED1CBE7F-8D59-424C-ABDD-289D79D7B4A3 Item 11 Attachment A - EPI-USE Labs Contract, C22182051 Amendment No. 1 Item 11: Staff Report Pg. 14 Packet Pg. 448 of 627 Vers.: Aug. 5, 2019 Page 12 of 44 P1 Emergency: • Entire organization is affected. • Core business process cannot be carried out. • Security violation. 1 hour 4 hours 1 day Resolution > 1 day Escalation path: Email to Service Manager (1st), Account Executive (2nd). P2 Critical: • Multiple users or departments are directly affected. • Incident has serious impact on critical tasks and no workaround is available. • Customer affected. 4 hours 1 day 3 days Resolution > 2 days Escalation path: Email to Service Manager (1st), Account Executive (2nd). P3 High: • System cannot function as designed or installed. • Small group of users are directly affected. • Compliance timeline is affected. 1 day 3 days Requires resource estimation, City's approval, prioritization, and scheduling P4 Medium: • Small number of users are affected. • Isolated incident. • Degraded performance and/or is difficult to use. 5 days 2-3 weeks Requires resource estimation, City's approval, prioritization, and scheduling P5 Low: • User requests general information, service, or consultation. • Cosmetic enhancements. • Report enhancements. 5 days 4-6 weeks Requires resource estimation, City's approval, prioritization and scheduling Docusign Envelope ID: ED1CBE7F-8D59-424C-ABDD-289D79D7B4A3 Item 11 Attachment A - EPI-USE Labs Contract, C22182051 Amendment No. 1 Item 11: Staff Report Pg. 15 Packet Pg. 449 of 627 Vers.: Aug. 5, 2019 Page 13 of 44 * P2-P5 tickets are subject to core business working hours and exclude out-of-hours, weekends, and public holidays, unless by mutual agreement. 3.3.1 System Availability Service Levels System availability is defined as the availability of any SAP Service. EPI-USE Labs considers a system available, if it can operate the system within the bounds of the services EPI-USE Labs provides. Table 1: System Availability System availability (uptime) Landscape Uptime* Production 99.5% Non-Production 99.0% *Measurement of uptime excludes maintenance windows and other planned downtimes. System Availability percentage is calculated as follows: System Availability Percentage = Total Minutes in the Month −Downtime Total Minutes in the Month ∗100 System Availability (“SA”) determines the minimum system uptime commitment. Downtime excludes Total Minutes in the Month attributable to: • Scheduled downtime during a regular maintenance window. • Any other scheduled downtime, which the City has been notified of at least five business working days prior to such scheduled downtime; or • Unavailability caused by factors outside of the Supplier’s reasonable control, such as unpredictable and unforeseeable events that could not have been avoided, even if reasonable care had been exercised. Regular Maintenance EPI-USE Labs would preferably like to set a weekly maintenance window for system and infrastructure. During this time, the City should not expect system uptime (downtimes are not SLA relevant) and should not schedule any jobs or processes. The window can be pre-agreed on prior to contract start. All maintenance downtimes (regular or irregular) will be pre-arranged and pre- approved via the change process. Recommended maintenance window: Weekly, Saturday: 14:00 to 20:00 PST. (TBD) Docusign Envelope ID: ED1CBE7F-8D59-424C-ABDD-289D79D7B4A3 Item 11 Attachment A - EPI-USE Labs Contract, C22182051 Amendment No. 1 Item 11: Staff Report Pg. 16 Packet Pg. 450 of 627 Vers.: Aug. 5, 2019 Page 14 of 44 Irregular Maintenance It is possible that certain intensive maintenance activities may not be possible to achieve within the regular maintenance window. In the case of a longer than regular outage, the supplier will provide five days’ advance notice and work with the City to find a time window that is most suitable for the City users. Maintenance exceptions While EPI-USE will endeavor to accommodate occasional requests for exceptions to these maintenance windows, EPI-USE cannot guarantee that exceptions can be accommodated. The shared nature of many data center facilities dictates certain maintenance requirements. In the case of urgent hardware replacement or security fixes that could otherwise negatively impact the City, as well as the ability of EPI-USE Labs to meet SLA commitments to the City, such changes to maintenance schedules may not always be possible. EPI-USE will consult with the City in the event of these exceptions. 3.3.2 Disaster Recovery Service Levels A disaster recovery service is applicable to all the production virtual machines. Networking is designed to have a fast recovery time, but in the event of a physical network connectivity failure, the recovery of the production virtual machines can be a manual process. EPI-USE will recover the virtual machines, from replicated backups from the disaster recovery data center. The service levels below are based on the backup and recovery of the SAP systems in the event of a disaster. Table 2: Disaster Recovery RTO and RPO Disaster Recovery Scope Time RTO Production servers 24 hours RPO Production servers 24 Hours The recovery time objective (RTO) is the time it will take to recover to the recovery point objective (RPO). The RPO is the point in the past to which the supplier will recover the system. 3.3.3 Backup Frequency and Retention Levels Backups are broken down into three sections: • Virtual machine. • File level; and • Database. Below is a summary of the retention policy. Table 3: Backup and Retention Docusign Envelope ID: ED1CBE7F-8D59-424C-ABDD-289D79D7B4A3 Item 11 Attachment A - EPI-USE Labs Contract, C22182051 Amendment No. 1 Item 11: Staff Report Pg. 17 Packet Pg. 451 of 627 Vers.: Aug. 5, 2019 Page 15 of 44 Backup and Retention policy Object Frequency Level Landscape Retention Period Virtual machine (with Database) Daily Full All 30 days Virtual machine (with Database) Monthly Full All 12 months Virtual machine (with Database) Yearly Full All 3 years (contract period) Database backups require the use of the database integration agent that is provided with the backup environment. EPI-USE Labs utilizes a snapshot of the virtual machine, complete with database, which will be taken and retained. 3.4 Managed Services - SAP Systems Inventory EPI-USE Labs will provide the SAP Service platform in AWS utilizing a virtualized environment as specified below: • Primary data center location: AWS US-WEST (Oregon) • The supported City SAP Landscape servers in scope, which will form part of the Managed Services component, are listed in Addendum A: Managed Services SAP Systems Inventory. • Database: HANA; and • Operating System: Linux, Windows. Connectivity: The hosted landscape will be accessible over an encrypted point-to-point IPSec terminating on the City’s vWAN hub in AWS and from there into the City environment. 4. Platform (AWS) Managed Services Scope EPI-USE will deliver a flexible Cloud Managed Service to help the City get the most out of the AWS platform, containing costs and managing complexity. EPI-USE will be the single provider and administrator to help reduce subscription spend and increase the operational efficiency and effectiveness of the SAP landscape in the cloud. 4.1 Maintain account with AWS EPI-USE will maintain the AWS account for the City’s AWS infrastructure. EPI-USE will also take care of paying the AWS fees on an annual or monthly basis and charge these fees back to the City at AWS Docusign Envelope ID: ED1CBE7F-8D59-424C-ABDD-289D79D7B4A3 Item 11 Attachment A - EPI-USE Labs Contract, C22182051 Amendment No. 1 Item 11: Staff Report Pg. 18 Packet Pg. 452 of 627 Vers.: Aug. 5, 2019 Page 16 of 44 list prices. The exact AWS fees payable will only be available after EPI-USE reviews the services and associated costs in the City’s AWS account. EPI-USE will conduct a Well-Architected Review that includes a full assessment of the City’s AWS spend. 4.2 AWS Platform Support Services The AWS platform administration will include: • Subscription and tenancy administration. • Resource group administration. • Networking services administration. • Virtual machine administration. • Storage administration. • Connectivity administration from AWS to the City network edge; • Platform, connectivity, monitoring and alerting • Security configuration and administration; and • Backup and disaster recovery administration. 4.3 Operating System Support Services The service supporting operating systems administration will include: • Monitoring the operating system. • Improving system performance • Operating system administration • Capacity planning and monitoring • Operating system patch management • Antivirus management • Backup and restore management • Disaster recovery workload management and testing; and • General fault and configuration of operating system. 4.4 Deliverables and Frequency Table 4 refers to the summary deliverable and frequency of platform services. Table 4: Platform as a Service Service Area Deliverable Frequency Docusign Envelope ID: ED1CBE7F-8D59-424C-ABDD-289D79D7B4A3 Item 11 Attachment A - EPI-USE Labs Contract, C22182051 Amendment No. 1 Item 11: Staff Report Pg. 19 Packet Pg. 453 of 627 Vers.: Aug. 5, 2019 Page 17 of 44 Cloud Services (Platform) Service desk (Client Central) Daily Incident management Daily Change management (formal change approval) Weekly Request management (small change with no approval) Daily Problem management (RCA) Daily Service level management Monthly Event management Daily Platform Housekeeping and monitoring Daily Governance reporting: Performance metrics. End-user response times and trends. Network statistics. CPU performance. Backup compliance. AV compliance. Vulnerability scanning (Quarterly). Penetration testing (Annually). Monthly 4.5 EPI-USE’s AWS Access There are two operating modes within AWS Organizations: Consolidated Billing and All Features. All Features will be enabled. The City’s usage and invoices are made available to EPI-USE, and EPI- USE will have full control over what the City’s End Customer Accounts can do in accordance with this Agreement including but not limited to Exhibit G (Addendum – Supplemental Terms – AWS Solution Provider Program for End Customers). Additionally, through AWS Single Sign-On integration with AWS Organizations, EPI-USE will also have access to Client Content. EPI-USE will provide access to their Program Management Account to the City and will work with the City to use only IAM to access the Program Management Account. Further, EPI-USE may choose to restrict its access to the Program Management Account via its root user credentials, by working with the City to implement multi-factor authentication and giving City sole control over one of the factors required for authentication. To access a copy of the AWS Organizations user guide, visit Docusign Envelope ID: ED1CBE7F-8D59-424C-ABDD-289D79D7B4A3 Item 11 Attachment A - EPI-USE Labs Contract, C22182051 Amendment No. 1 Item 11: Staff Report Pg. 20 Packet Pg. 454 of 627 Vers.: Aug. 5, 2019 Page 18 of 44 https://docs.aws.amazon.com/organizations/latest/userguide/orgs_introduction.html (or any successor or related location designated by AWS, as may be updated by AWS from time to time). 4.6 AWS Support In managing the City’s AWS account, EPI-USE will register the City for the support type the City has selected below and will include the City as a named support contact. The City’s named support contact person will be determined during the onboarding process, and, as needed thereafter, may be changed by written notice to EPI-USE from the City’s Project Manager or Chief Information Officer. The City hereby selects the continued use of AWS Business Support for the performance of this Agreement. Signing this Agreement provides written confirmation of this selection. 4.7 [RESERVED] 5. Security Managed Services Scope EPI-USE Labs will maintain ISO 27001 certification and on an annual basis an SSAE16-SOC 2 report, or their equivalent can be made available to the City on request. EPI-USE will handle the City data according to its information classification and handling standards. The City information is classified as Confidential and appropriate information handling, human resources and technical security measures are in place to reduce the risk of accidental or malicious information disclosure. EPI-USE have adopted the ISO 27001 information security framework, which governs all aspects of information security. EPI- USE have been certified as ISO 27001 compliant by external, accredited auditors. 5.1 Data and Security EPI-USE Labs uses reasonable security technologies in providing the services. EPI-USE Labs will implement technical and organizational measures to secure personal data processed in the services, in accordance with applicable data protection laws. The City is responsible for the City data and entering it into the SAP cloud systems. EPI-USE will be connecting to the City’s AWS environment in two ways and both these processes are transparent as they are logged in detail. • SSM method through AWS web console. With this method, the complete access is logged by AWS itself and city will have access to these log entries from the AWS console. • Through Openvpn, managed by EPI-USE. The Openvpn server logs these entries in great detail, which may be accessed through the Openvpn server admin web panel. Both services provide the City with complete access to the log records of connected users. Docusign Envelope ID: ED1CBE7F-8D59-424C-ABDD-289D79D7B4A3 Item 11 Attachment A - EPI-USE Labs Contract, C22182051 Amendment No. 1 Item 11: Staff Report Pg. 21 Packet Pg. 455 of 627 Vers.: Aug. 5, 2019 Page 19 of 44 Security responsibilities – Table 5 specifies which of the parties are responsible for the various security areas. Table 5: Security Responsibilities Security Area EPI-USE Responsible City Responsible Firewall on AWS platform X Intrusion Detection System on AWS platform X Virtual Private Connection on AWS platform X Virtual Private Connection at the City site X Virtual Private Connection on end user devices X Access Control and User Management on Operating System X Access Control and User Management on Database X Application Access Control and User Management on SAP X Patch Management on Operating System X Infrastructure/Database Access Control and User Management X Internal Vulnerability Scanning X Manage AWS Security Services (Security Hub, Guardduty, Inspector etc..) X 6. Basis Managed Services Scope EPI-USE Labs will be responsible for SAP Basis Managed Services for the SAP landscape. The following services are included. 6.1 Daily Checks and Housekeeping The purpose is to check and maintain to be proactive should any incident or requests arise. Housekeeping will constitute preventative proactive management and various automation activities will be carried out where applicable. EPI-USE Labs will enable the City to have visibility of critical systems with the use of EPI-USE Labs software or 3rd party software, if required. EPI-USE Labs will carry out these tasks once either daily, weekly, or monthly and the check sheets/reports will be made Docusign Envelope ID: ED1CBE7F-8D59-424C-ABDD-289D79D7B4A3 Item 11 Attachment A - EPI-USE Labs Contract, C22182051 Amendment No. 1 Item 11: Staff Report Pg. 22 Packet Pg. 456 of 627 Vers.: Aug. 5, 2019 Page 20 of 44 available to the City on the Client Central Workspace. Where possible, these tasks will be carried out automatically with the use of EPI-USE Labs or 3rd party software. 6.2 Monitoring and Alerts EPI-USE Labs will monitor all hosted systems and alert on critical events, using EPI-USE Labs and/or third-party software. A critical event is defined as: • SAP production outage which influences critical business functions. For critical events, EPI-USE will be alerted (via a paging system to the standby team) of the defined critical event, triggering an automated P1 incident entry in Client Central. This in turn will, initiate the P1 incident response procedure. The P1 response procedure in client central will add the applicable the City system owners (Defined in Client Central) as watchers to the ticket, which will in turn send an email to all watchers every time new information is added or changed to this P1 ticket. Response times and resolution times will adhere to the defined SLA times. A contact list will be generated for contacting business unit owners (including a backup resource). This will be used to drive any communication via Client Central tickets that would arise during an outage or serious issue. 6.3 SAP Basis Landscape Advisory EPI-USE will provide SAP landscape advisory services on an ongoing basis. These recommendations will be discussed in the monthly review meetings. This advisory service will pertain to SAP performance enhancements and short, medium, and long-term SAP landscape roadmap guidance. The following are: • Advice on end of SAP support on SAP versions. • Advice on target SAP versions available. • Advice on target SAP kernel. • Advice on target enhancement pack. • Advice on latest database version. • Advice on capacity planning. • Proactive Basis process and setup improvements • Large HANA database tables in production; and • HANA Database sizes/growth. Docusign Envelope ID: ED1CBE7F-8D59-424C-ABDD-289D79D7B4A3 Item 11 Attachment A - EPI-USE Labs Contract, C22182051 Amendment No. 1 Item 11: Staff Report Pg. 23 Packet Pg. 457 of 627 Vers.: Aug. 5, 2019 Page 21 of 44 6.4 Support Pack updates This function is deemed part-and-parcel of the SAP Basis managed services. EPI-USE Labs will apply the following: • Database patches annually • SAP Kernel updates bi-annually • Security patches, where deemed necessary and as required • SAP service packs annually • SAP HR legal patches annually • SAP Notes on request Major software (OS, DB, Application) release upgrades e.g. a full release upgrade and EHPs are excluded from the scope of work and will be handled as separate projects. Functional and application testing will not form part of the scope of these upgrades and is limited to the technical application. 6.5 System Refreshes (as-needed, upon request) EPI-USE will help launch the CITY’s separately contracted-for Libelle system refresh tool once per quarter, as a part of the support services. Once launched, the City staff will complete the system refresh operation. SAP system client copies, using the standard SAP tools, are included under the support services. To implement any additions to this Scope of Services, a Task Order for Additional Services pursuant to Section 4 (Not to Exceed Compensation) will be used. As detailed in Section 13 (Addendum C: Change Request Form) below, a Change Request Form (shown in Addendum C) may only be used pursuant to Section 4 (Not to Exceed Compensation) of this Agreement, regarding Additional Services, as an Attachment A (Scope of Work) to an approved Task Order as detailed in Section 4. 6.6 Deliverables and Frequency Table 6 refers to the summary deliverable and frequency of Basis Managed Services. Table 6: Basis as a Service Deliverables Service Area Deliverable Frequency Basis Services Service desk (Client Central) Daily Incident management Daily Change management (formal change approval) Weekly Docusign Envelope ID: ED1CBE7F-8D59-424C-ABDD-289D79D7B4A3 Item 11 Attachment A - EPI-USE Labs Contract, C22182051 Amendment No. 1 Item 11: Staff Report Pg. 24 Packet Pg. 458 of 627 Vers.: Aug. 5, 2019 Page 22 of 44 Request management (small change with no approval) Daily Problem management (RCA) Daily Service level management Monthly Event management Daily Patches Annual Basis Housekeeping and monitoring Daily Governance reporting: System uptime. Incident SLA reports. Performance metrics. Storage and usage. Monthly 6.7 Excluded from Scope The following tasks are specifically excluded from the Scope of Services of this Agreement and, if desired, would need to be implemented via a Task Order as Additional Services pursuant to Section 4 (Not to Exceed Amount), or via contract amendment pursuant to Section 29.4, of this Agreement: • Major SAP NetWeaver release upgrades. • User access management, SAP Authorizations and Roles. • Although the technical transport management function is part of the responsibility of EPI-USE Labs, the change management process and approval of changes will remain the responsibility of the City. • End user device support is excluded (e.g., printers, desktops, SAP GUI) • Additional SAP NetWeaver application implementations and the support of these environments after implementation. • All other services outside the current SAP landscape. 6.8 General Assumptions • Business days are Mondays to Fridays excluding federal holidays • Business hours are between 8AM and 5PM (PST) • Support is offered during business hours, except for P1 Incidents, which are, supported 24/7 Docusign Envelope ID: ED1CBE7F-8D59-424C-ABDD-289D79D7B4A3 Item 11 Attachment A - EPI-USE Labs Contract, C22182051 Amendment No. 1 Item 11: Staff Report Pg. 25 Packet Pg. 459 of 627 Vers.: Aug. 5, 2019 Page 23 of 44 • Measurement of service levels is suspended for the time that an incident is under the responsibility of the City or any third party or EPI-USE Labs • EPI-USE Labs will assign a Service Delivery Manager to the City who will be responsible for all support- related issues • If standby is required for P2 to P4 incidents outside of business hours, the City can request this before the time • After-hours work should be limited to 10 (ten) hours per month, excluding work for P1 incident • All requests for after-hours support must be submitted 48 hours in advance. These requests must be directed to the applicable Service Delivery Manager • All service requests must be submitted in ticket form, regardless of verbal or email agreements. SLA’s are measured based on tickets only. 7. On-boarding, Transfer and Transitioning, Amendment No.1 (Completed) The transition and handover phase will be critical to the success of our support service. The onboarding process starts with the handover between the EPI-USE team and the City team of the existing SAP systems, AWS platform and AWS account. This phase should commence in the month prior to the actual ongoing Managed Services engagement commencing. Service transition will be crucial to ensuring that EPI-USE has a good understanding of: • City’s latest system platform, landscape, and configuration • to transfer the existing AWS Account and billing responsibility to EPI-USE • the organization and how it operates • the internal support team’s skills and capabilities • other vendors that provide support (EPI-USE will require information) • any outstanding and open tickets. By assessing these elements of the current support service, EPI-USE will be better placed to advise on service management processes, transition steps, and knowledge transfer requirements as part of the transition phase. Transition activities will include the review of documentation, facilitated workshops with the City, and system familiarization. The transition phase consists of three main areas: Assessment (information gathering), Design and Setup, and Handover, as further detailed below. Assessment (information gathering) During this phase, EPI-USE will spend time reviewing: • all documentation (including but not limited to functional, technical, and business process documentation) • the platform, landscape setup and configuration Docusign Envelope ID: ED1CBE7F-8D59-424C-ABDD-289D79D7B4A3 Item 11 Attachment A - EPI-USE Labs Contract, C22182051 Amendment No. 1 Item 11: Staff Report Pg. 26 Packet Pg. 460 of 627 Vers.: Aug. 5, 2019 Page 24 of 44 • to transfer the existing AWS Account, and this will entail: o EPI-USE have root access to the AWS account o The AWS account has been un-linked from the incumbent outgoing provider’s AWS Master Payer account (if applicable) o EPI-USE’s payment method has been updated in the account o An AWS support plan has been agreed for the AWS account • the current status of outstanding incidents and service requests • skills of the internal support and IT teams • current support procedures (incident management, change management). Design and Setup Given sufficient information, EPI-USE will start designing the support service to be delivered from the start of the contract including: • Adjusting the support methodology and processes to fit the City’s requirements. This will be done in collaboration with the City. • Aligning with the City’s incident and change management processes and introducing and knowledge transfer of Client Central. • Discussing and designing a skills’ matrix and recommending a knowledge transfer plan. • Assessing the gap – if any – in levels of documentation required (for business processes, configuration, and system landscape) and agreeing to an approach to fill this gap. • Agreeing on an approach to handover from the incumbent outgoing provider, ensuring that all outstanding incidents and service requests are addressed. Handover Handover to EPI-USE Labs is the last transition phase. EPI-USE will start to take on some elements of the support contract while allowing the outgoing supplier to close existing incidents and service requests. Normally, EPI-USE would recommend a period of joint operation when EPI-USE takes responsibility for the resolution of new issues. This transition period with the incumbent outgoing provider can be up to two weeks. The Design and Setup phase normally ensures that the responsibilities for all parties are clearly agreed and that all parties, including the incumbent outgoing provider, are in agreement with the approach. This is important to ensure continuity of service for the City. The three-stage process is applied in conjunction with the fundamental principle of People, Process and Technology, which forms the foundation for successful service management. In order to transition smoothly from the City’s incumbent outgoing provider to EPI-USE, all three key areas need to be carefully considered as part of the transition planning. 8. Ad-hoc Services (as needed, upon request) Perform ad-hoc services on as-needed requests that are not covered in the Scope of Services. These services constitute Additional Services under Section 4 (Not to Exceed Compensation) of this Docusign Envelope ID: ED1CBE7F-8D59-424C-ABDD-289D79D7B4A3 Item 11 Attachment A - EPI-USE Labs Contract, C22182051 Amendment No. 1 Item 11: Staff Report Pg. 27 Packet Pg. 461 of 627 Vers.: Aug. 5, 2019 Page 25 of 44 Agreement, implemented pursuant to City-approved Task Order as detailed in Section 4. Examples of such Additional Services include without limitation: (1) Perform ad-hoc (Additional Services per Section 4) hosting and networking services such as enabling additional AWS services, building new application and/or database servers that are not included in the Scope of Services. (2) Perform ad-hoc (Additional Services per Section 4) Basis services such as installation and configuration of new SAP applications and SAP HANA databases that are not included in the Scope of Services. (3) Perform other ad hoc (Additional Services per Section 4) services that are not included in the Scope of Services as may be requested by CITY. (4) Any Managed Services specifically requested by the City of Palo Alto outside normal business hours (except for P1 incidents and in-scope Managed Services production system work). 9. Client Central Service Desk Client Central will be utilized as a service desk for the Managed Services support, with Client Central user and role management included. Further to the service desk (ticketing) offering, a knowledge base and downloads area will be allocated in the workspace for various shared documents and artefacts for e.g., platform information, technical documents, functional documents, how-to, solution suggestions, recorded video trainings and suggestions. 9.1 Service Desk Ticketing Standard features included: • Ticket feature to record all incidents, changes or activity with the date and time of change as well as the person responsible for the change. • Attachments can be added to each ticket. This is stored on the ticket itself (unless removed) and is separate from the downloads mentioned above. • The ticket records and displays the response and resolution time on the ticket, in relation to the defined SLA. • Buttons are used to drive the workflow on a ticket and change it from one state to another, e.g., in progress, awaiting info or completed. They can be configured to require a comment or to simply progress the workflow. Buttons can be colored as required to highlight the purpose of the button (e.g., green for approval). • States in a workflow have the following qualities: o The name can be defined as required. o The color can be used to better show the purpose of the status (e.g., green for approved). o The status can either be open (SLA is counting), waiting (SLA is paused, someone is waiting for feedback) or closed (the SLA has been stopped and ticket has been resolved). Docusign Envelope ID: ED1CBE7F-8D59-424C-ABDD-289D79D7B4A3 Item 11 Attachment A - EPI-USE Labs Contract, C22182051 Amendment No. 1 Item 11: Staff Report Pg. 28 Packet Pg. 462 of 627 Vers.: Aug. 5, 2019 Page 26 of 44 • Tickets can be linked to each other to quickly navigate between relevant tickets. • Tickets can be filtered based on any of the fields in the ticket, assignee, status, SLA compliance, date updated, and status. This helps to easily find and report on individual tickets. • Big scale reporting can also be done on any of the above-mentioned factors. City can use the information to build graphs in Client Central to display specific data visually. • Custom filters can be built so that reports can be saved and reused as required 9.2 Ticket Type and Description • Incidents: Incidents happening in the landscape that interrupts daily operation. Typically logged by the City’s users. • Change request: Scheduled changes, usually preceded by a Service request. A single change request documents the changes made (as specified in a service request) per individual landscape tier as the date and time of each change is different. This results in one Service request and multiple change requests connected to it. • Service requests: non-incidents (typically) logged by Business to implement/change something in the landscape. • Problem ticket: mainly used for keeping track of RCA investigations. Also used to keep track of performance/service improvement mini projects. Typically, all P1 Incidents require an associated Problem ticket, but multiple Incidents can be linked to the same Problem ticket. • Events: Tickets logged by the Managed Services team to communicate proactive monitoring incidents. This is usually connected to monitoring tool alerts or monitoring/daily health checks performed by the Managed Services. • Internal KB: Requests for Knowledge base article creation on a certain subject. • Patch: Pro-Active patches/alerts (typically from 3rd party vendors like SAP, OS vendors, etc.) • Define-your-own wherein City can define its own ticket type/description. 9.3 Knowledge Base Area The Knowledge base consists of documents of a word-type format that can be created by and shared with authorized users. They can also be added to tickets as required by pasting the article link on the ticket. The structure can be configured by creating nested directories if required. City can search for a knowledge base article by using the search bar. The search bar works with a wildcard search technique to search for matching content in all articles, or City can search for tags that were added to the article during the article creation. 9.4 Downloads Area Downloads is a dedicated document repository for business relevant documents that can be uploaded to, downloaded from, and shared with authorized users. Docusign Envelope ID: ED1CBE7F-8D59-424C-ABDD-289D79D7B4A3 Item 11 Attachment A - EPI-USE Labs Contract, C22182051 Amendment No. 1 Item 11: Staff Report Pg. 29 Packet Pg. 463 of 627 Vers.: Aug. 5, 2019 Page 27 of 44 The structure can be configured by creating nested directories if required. City can search for a file by using the search bar based on the file name or description. 10. Costing and Fees Costing and fees for this Agreement shall be as detailed elsewhere in this Agreement including but not limited to Section 4 (Not to Exceed Compensation) and Exhibit C (Compensation). 10.1 AWS Fees Estimated AWS fees are provided in Exhibit C (Compensation) of this Agreement, however, as noted in said Exhibit C, AWS consumption will be invoiced based on actual AWS spend and using AWS’s actual published list prices. AWS fees will be invoiced separately from the Managed Services fees and billed on a monthly basis. Reserved Instance and Savings Plan purchases will be reviewed on an as-needed basis and these purchases are required to be approved by the City pursuant to a Task Order as Additional Services under Section 4 (Not to Exceed Compensation), or as a contract amendment pursuant to Section 29.4, of this Agreement. Depending on the commitment period these purchases will be paid by the City all upfront or amortized over the duration of the remaining Agreement term, pursuant to a Task Order as Additional Services under Section 4, or as a contract amendment pursuant to Section 29.4, of this Agreement. Notwithstanding any information received to date; any additional clarifications which may have been provided, or the outcome of any discovery workshops conducted, EPI-USE has calculated its AWS pricing based purely on its current understanding of the City’s requirements. The City therefore acknowledges that, except for items which may arise solely because of EPI-USE’s actions during the engagement, EPI-USE shall be entitled to recover AWS fees for those items which would not have been known at the outset of the engagement, and which increases the AWS spend budget. Any changes outside of the AWS spend budget stated in this Agreement, shall be approved in writing by the City pursuant to a Task Order as Additional Services under Section 4 (Not to Exceed Compensation), or as a contract amendment pursuant to Section 29.4, of this Agreement. If the City exceeds the usage limits applicable to the AWS Service subscription, the City agrees to pay for the fees and charges for such over-usage pursuant to a Task Order as Additional Services under Section 4 (Not to Exceed Compensation), or as a contract amendment pursuant to Section 29.4, of this Agreement. For any extension of a subscription term within the term of this Agreement or the provision of a Service upgrade, the then-current AWS price will apply. At the beginning of each new subscription term within the term of this Agreement, EPI-USE may, in consultation with the City, increase AWS fees to reflect increased AWS costs imposed by AWS. Not raising fees is not a waiver of EPI-USE’s right to do so if AWS raises its fees. EPI-USE will notify the City as soon as practicable of any changes in AWS fees by e-mail. Failure by the City to pay the fees when due and payable, if not timely cured by City after notice of the failure from Consultant, may result in suspension of access to, or rights to use the Services. Docusign Envelope ID: ED1CBE7F-8D59-424C-ABDD-289D79D7B4A3 Item 11 Attachment A - EPI-USE Labs Contract, C22182051 Amendment No. 1 Item 11: Staff Report Pg. 30 Packet Pg. 464 of 627 Vers.: Aug. 5, 2019 Page 28 of 44 11. Addendum A: Managed Services Systems Inventory The AWS infrastructure services inventory to be included on the AWS managed services: Table 7: AWS services inventory Service Configuration summary S3 Standard 50 TB per month PRD Amazon FSx for Windows File Server Desired storage capacity (1 TB) STG Amazon Virtual Private Cloud (VPC) Number of Site-to-Site VPN Connections (10) QAS Amazon Elastic File System (EFS) Data stored in Standard storage (5 TB per month) DEV Amazon S3 Glacier (Glacier API only) S3 Glacier storage (10 TB per month) SBX Amazon EC2 (r5.large) Quantity - 12 Operating system (Linux), Storage for each EC2 instance (General Purpose SSD (gp2)), Storage amount (500 GB) PRD Amazon EC2 (r5.xlarge) Quantity - 8 Operating system (Linux), Storage for each EC2 instance (General Purpose SSD (gp2)), Storage amount (500 GB) STG Amazon EC2 (x1.16xlarge) Quantity - 3 Operating system (Linux), Storage for each EC2 instance (General Purpose SSD (gp2)), Storage amount (4000 GB) QAS Amazon EC2 (t2.small) Quantity - 2 Operating system (Linux), Storage for each EC2 instance (General Purpose SSD (gp2)), Storage amount (500 GB) DEV Amazon EC2 (t2.xlarge) Quantity - 1 Operating system (Windows), Storage for each EC2 instance (General Purpose SSD (gp2)), Storage amount (500 GB) PRD Docusign Envelope ID: ED1CBE7F-8D59-424C-ABDD-289D79D7B4A3 Item 11 Attachment A - EPI-USE Labs Contract, C22182051 Amendment No. 1 Item 11: Staff Report Pg. 31 Packet Pg. 465 of 627 Vers.: Aug. 5, 2019 Page 29 of 44 Amazon EC2 (m5.large) Quantity - 1 Operating system (Linux), Storage for each EC2 instance (General Purpose SSD (gp2)), Storage amount (500 GB) STG Amazon EC2 (m4.2xlarge) Quantity - 1 Operating system (Linux), Storage for each EC2 instance (General Purpose SSD (gp2)), Storage amount (500 GB) QAS Amazon EC2 (r5a.large) Quantity - 4 Operating system (Linux), Storage for each EC2 instance (General Purpose SSD (gp2)), Storage amount (150 GB) DEV Amazon EC2 (r5.2xlarge) Quantity - 1 Operating system (Linux), Storage for each EC2 instance (General Purpose SSD (gp2)), Storage amount (500 GB) PRD Amazon EC2 (t2.xlarge) Quantity - 1 Operating system (Linux), Storage for each EC2 instance (General Purpose SSD (gp2)), Storage amount (500 GB) STG The corresponding SAP systems relevant within the scope of Managed Services: Table 8: SAP System inventory City SAP systems System type Version Tier Database Operating system ECC EHP 8 PRD HANA Suse Linux ECC EHP 8 STG HANA Suse Linux ECC EHP 8 QAS HANA Suse Linux ECC EHP 8 DEV HANA Suse Linux ECC EHP 8 SBX HANA Suse Linux BW 7.5, SP16 PRD HANA Suse Linux BW 7.5, SP16 STG HANA Suse Linux BW 7.5, SP16 QAS HANA Suse Linux BW 7.5, SP16 DEV HANA Suse Linux CRM 7.0, EHP4 PRD HANA Suse Linux CRM 7.0, EHP4 STG HANA Suse Linux CRM 7.0, EHP4 QAS HANA Suse Linux Docusign Envelope ID: ED1CBE7F-8D59-424C-ABDD-289D79D7B4A3 Item 11 Attachment A - EPI-USE Labs Contract, C22182051 Amendment No. 1 Item 11: Staff Report Pg. 32 Packet Pg. 466 of 627 Vers.: Aug. 5, 2019 Page 30 of 44 CRM 7.0, EHP4 DEV HANA Suse Linux Gateway PRD HANA Suse Linux Gateway STG HANA Suse Linux Gateway QAS HANA Suse Linux Gateway DEV HANA Suse Linux ESS/ MSS Portal PRD HANA Suse Linux ESS/ MSS Portal STG HANA Suse Linux ESS/ MSS Portal QAS HANA Suse Linux ESS/ MSS Portal DEV HANA Suse Linux Solution Manager PRD HANA Suse Linux NWDI DEV HANA Suse Linux BSI Taxfactory/Jump Server PRD HANA Suse Linux Open VPM Server PRD Suse Linux SAP Router PRD Windows SAP AD PRD Windows Fiori Frontend PRD HANA Suse Linux Fiori Frontend STG HANA Suse Linux Fiori Frontend QAS HANA Suse Linux Fiori Frontend DEV HANA Suse Linux HANA DB Server PRD HANA Suse Linux HANA DB Server QAS STG HANA Suse Linux HANA DB Server DEV HANA Suse Linux Docusign Envelope ID: ED1CBE7F-8D59-424C-ABDD-289D79D7B4A3 Item 11 Attachment A - EPI-USE Labs Contract, C22182051 Amendment No. 1 Item 11: Staff Report Pg. 33 Packet Pg. 467 of 627 Vers.: Aug. 5, 2019 Page 31 of 44 12. Addendum B: City and EPI-USE Labs Responsibilities The following table will define the high-level responsibilities of the parties in a RACI format. Table 9: RACI Table ID Service R – Responsible, A - Accountable, C – Communicated, I – Informed, P- Participate Frequency EPI- USE CoPA 1 Service Management 1.1 Account Management 1.1.1 Governance meetings Monthly RAC RAC 1.1.2 Platform capacity planning (usage-based) Ongoing R CI 1.1.3 Platform capacity planning (future project- based) Quarterly R CI 1.1.4 Provide SLA and usage reports and performance metrics Monthly RA CI 1.2 Service Request Management 1.2.1 Log service requests in Client Central Ongoing CI RA 1.2.2 Review, approve service requests Ongoing RA RA 1.3 Incident Management 1.3.1 Daily support desk operations Ongoing RA RA 1.3.2 Review, approve, resolve, escalate incidents Ongoing RA RA 1.3.3 Confirm resolved incidents/solutions Ongoing RA RA 1.3.4 Create incidents/solutions Ongoing RA RA 1.4 SAP Online Support Service 1.4.1 Create OSS users Ongoing CI RA 1.4.2 Assign OSS permissions Ongoing CI RA 1.4.3 Manage developer keys Ongoing CI RA 1.4.4 Manage object keys Ongoing CI RA 1.4.5 Support management of S-User ID Ongoing CI RA Docusign Envelope ID: ED1CBE7F-8D59-424C-ABDD-289D79D7B4A3 Item 11 Attachment A - EPI-USE Labs Contract, C22182051 Amendment No. 1 Item 11: Staff Report Pg. 34 Packet Pg. 468 of 627 Vers.: Aug. 5, 2019 Page 32 of 44 1.4.6 Monitor remote support connection to OSS Ongoing CI RA 1.4.7 Open/close SAP remote support connections Ongoing CI RA 2 Infrastructure 2.1 Data Center Management 2.1.1 Infrastructure (AWS) all support Ongoing RA CI 2.1.2 AWS tenancy administration Ongoing RA CI 2.2 Network Management 2.2.1 Proactively monitor data center networks and utilization Ongoing RA CI 2.2.2 Change data center network configuration Ongoing RA CI 2.2.3 All network maintenance Ongoing RA CI 2.3 Storage Management 2.3.1 Proactively monitor storage performance & capacity Ongoing RA CI 2.3.1 Manage data files, file systems and disks Ongoing RA CI 2.3.1 Scale storage capacity (additional) Request RA CI 2.4 Operating System 2.4.1 Create/maintain OS users Ongoing RA CI 2.4.2 Monitor for/report security incidents Ongoing RA CI 2.4.3 Configure/change OS parameters Ongoing RA CI 2.4.4 Monitor/remediate OS, logs, file systems Ongoing RA CI 2.4.5 Interact with vendor to remediate OS issues Ongoing RA CI 2.4.6 Proactively monitor swap and paging Ongoing RA CI 2.4.7 Proactively monitor memory usage Ongoing RA CI 2.4.8 Manage OS patches Ongoing RA CI 2.4.9 Perform OS upgrades Ongoing Project CI 2.5 System Startup/Shutdown Docusign Envelope ID: ED1CBE7F-8D59-424C-ABDD-289D79D7B4A3 Item 11 Attachment A - EPI-USE Labs Contract, C22182051 Amendment No. 1 Item 11: Staff Report Pg. 35 Packet Pg. 469 of 627 Vers.: Aug. 5, 2019 Page 33 of 44 2.5.1 Scheduled OS/hardware system startup & shutdown Request RA CI 2.5.2 Shutdown/restart OS/hardware after failure/maintenance Ongoing RA CI 2.6 Backup/Restore 2.6.1 Perform periodic file system and database backups Ongoing RA CI 2.6.2 Requests for ad-hoc backups Ongoing RA CI 2.6.3 Monitor backup processes Ongoing RA CI 2.6.4 Perform periodic backup/restore testing; include result in the relevant report Biannual RA CI 2.6.5 Perform restore and recovery of file systems/databases/tables after failure Ongoing RA CI 2.6.6 Perform restore and recovery of file systems/databases/tables upon request Ongoing RA CI 2.6.7 Perform verification of restored systems Ongoing RA CI 2.6.8 Perform functional verification Ongoing RA CI 2.7 Integration 2.7.1 Configure integration with customer directory service Ongoing RA CI 2.7.2 Integration with SAP Cloud (Network connections and VPN) Ongoing RA CI 2.8 SFTP Service 2.8.1 Provide file sharing on hosted systems Request RA CI 2.8.2 User and access management to hosted systems Request RA CI 2.8.3 Create/maintain shared folders Request RA CI 2.8.4 Implement and maintain antivirus software on servers Ongoing RA CI 2.8.5 Antivirus software licenses Ongoing RA CI 2.8.6 Backup data on shared folders Ongoing RA CI Docusign Envelope ID: ED1CBE7F-8D59-424C-ABDD-289D79D7B4A3 Item 11 Attachment A - EPI-USE Labs Contract, C22182051 Amendment No. 1 Item 11: Staff Report Pg. 36 Packet Pg. 470 of 627 Vers.: Aug. 5, 2019 Page 34 of 44 2.8.7 Restore data on shared folders Request RA CI 3 Database Management 3.1 SAP HANA 3.1.1 Proactively monitor database health and resource usage Ongoing RA CI 3.1.2 Monitor table growth to prevent operational issues Ongoing RA CI 3.1.3 Partition/rebalance tables due to uneven growth Ongoing RA CI 3.1.4 Plan and perform file system extensions Ongoing RA CI 3.1.5 Perform HANA housekeeping (manage logs, traces, free up resources) Ongoing RA CI 3.1.6 Maintain HANA configuration parameters based on best practices Ongoing RA CI 3.1.7 Start/stop database Request RA CI 3.1.8 Add hardware for scale-out configuration Request RA CI 3.1.9 Update/patch database Ongoing RA CI 3.1.10 Configure HANA Transports Management Request RA CI 3.1.11 Implement /maintain additional SAP tools (in HANA context delivered by SAP) Request RA CI 3.1.12 Analyze and optimize expensive SQL statements for improved performance Request RA CI 3.1.13 System troubleshooting to resolve issues and return HANA to normal operation Ongoing RA CI 3.1.14 Create/maintain HANA Studio users Request RA CI 3.1.15 Management of database users Ongoing RA CI 3.1.16 Backups Ongoing RA CI 3.1.17 Recover database after technical issues Ongoing RA CI 4 Basic Operations 4.1 Monitoring Docusign Envelope ID: ED1CBE7F-8D59-424C-ABDD-289D79D7B4A3 Item 11 Attachment A - EPI-USE Labs Contract, C22182051 Amendment No. 1 Item 11: Staff Report Pg. 37 Packet Pg. 471 of 627 Vers.: Aug. 5, 2019 Page 35 of 44 4.1.1 Configuration of basis monitoring tools Ongoing RA CI 4.1.2 Monitoring of alert consoles for different tools Ongoing RA CI 4.1.3 Logging of performance events Ongoing RA CI 4.1.4 Respond to events according to notification and escalation procedures Ongoing RA CI 4.1.5 Identification, installation, and activation of monitoring tools Ongoing RA CI 4.2 SAP Upgrades & Enhancement Packs 4.2.1 SAP Major release upgrades Request Project CI 4.2.2 SAP Enhancement Pack upgrades Request Project CI 4.2.3 Upgrade database Request RA CI 4.2.4 Perform functional changes and developments Request CI RA 4.2.5 Testing of upgraded system and functionality Request CI RA 4.3 SAP Support Packs 4.3.1 Apply SAP kernel upgrades Biannual RA CI 4.3.2 Apply SAP patches Annual RA CI 4.3.3 Apply SAP Notes Request RA RA 4.3.4 Post-support pack testing Request CI RA 4.4 SAP Security Management 4.4.1 Create/maintain/review/audit roles, profiles, authorizations Ongoing CI RA 4.4.2 Create/maintain/lock/unlock users, assign roles Ongoing CI RA 4.4.3 Maintain users/roles/profiles in client 000 Ongoing RA CI 4.4.4 Provide customer access to client 000 Request RA CI 4.4.5 Monitor and share information about security fixes published by SAP Ongoing RA RA 4.5 Client Copies & Refreshes (excludes repository, to non-production targets) Maximum quarterly Docusign Envelope ID: ED1CBE7F-8D59-424C-ABDD-289D79D7B4A3 Item 11 Attachment A - EPI-USE Labs Contract, C22182051 Amendment No. 1 Item 11: Staff Report Pg. 38 Packet Pg. 472 of 627 Vers.: Aug. 5, 2019 Page 36 of 44 4.5.1 Perform copy/refresh Request CI RA 4.5.2 Perform technical post-processing Request CI RA 4.5.3 Perform validation of copied/refreshed system Request CI RA 4.6 System Copies (to non-production) 4.6.1 Perform system copy Request CI RA 4.6.2 Perform technical post-processing Request CI RA 4.6.3 Perform validation of installed system Request RA CI 4.7 Change Control 4.7.1 Application development, customizing, configuration, maintenance, support Ongoing CI RA 4.7.2 Planning change requests Ongoing CI RA 4.7.3 Apply SAP notes for applications Ongoing CI RA 4.7.4 Apply SAP security notes Ongoing RA RA 4.8 Printer Management 4.8.1 Create, change, lock, unlock, maintain printers within SAP Request CI RA 4.8.2 Printers within SAP, configured on the OS (due to security constraints) Request RA CI 4.8.3 Analyze printing and spool issues Request CI RA 4.8.4 Spool system housekeeping Ongoing CI RA 4.8.5 Design and implement print forms Request CI RA 4.8.6 Troubleshoot issues with printer hardware Request CI RA 4.9 Desktop Support 4.9.1 SAPGUI support Request CI RA 4.9.2 SAP SSO support Ongoing CI RA 4.9.3 Desktop and front-end user support Request CI RA 4.10 Additional Proactive Services 4.10.1 Analyze SAP EarlyWatch Alert reports and consider technical recommendations Ongoing RA CI Docusign Envelope ID: ED1CBE7F-8D59-424C-ABDD-289D79D7B4A3 Item 11 Attachment A - EPI-USE Labs Contract, C22182051 Amendment No. 1 Item 11: Staff Report Pg. 39 Packet Pg. 473 of 627 Vers.: Aug. 5, 2019 Page 37 of 44 4.10.2 Implement data archiving strategy and processes Request CI RA 4.10.3 Monitor and maintain data archiving systems Ongoing CI RA 4.11 System Installations / Migrations 4.11.1 Install new systems / migrate from on premise to cloud Request Project CIP 4.11.2 Technical configuration of all installed/migrated systems Request Project CIP 4.11.3 Integration of new/migrated systems to cloud operations environment Request Project CIP 4.11.4 Integrate all hosted systems with customer Solution Manager in cloud Request Project CIP 4.12 Disaster Recovery 4.12.1 Implement disaster recovery setup according to architecture blueprint Request RA CIP 4.12.2 Develop plan for disaster recovery (data center and system infrastructure only) Request RA CIP 4.12.3 Manage and monitor disaster recovery architecture and replication Ongoing RA CIP 4.12.4 Develop plan for disaster recovery of applications and connectivity to cloud Request RA CIP 4.12.5 Test disaster recovery system (data center and system infrastructure only) Quarterly RA CIP 4.12.6 Execute full disaster recovery failover test Annually RA CIP 4.12.7 Technical and connectivity testing for disaster recovery failover Annually RA CIP 4.12.8 Application testing for disaster recovery failover Annually RA CI 4.13 Management of Local Area Network 4.13.1 Provide and maintain network at sites Ongoing CI RA 5 NetWeaver ABAP Operations 5.1 General Operations Docusign Envelope ID: ED1CBE7F-8D59-424C-ABDD-289D79D7B4A3 Item 11 Attachment A - EPI-USE Labs Contract, C22182051 Amendment No. 1 Item 11: Staff Report Pg. 40 Packet Pg. 474 of 627 Vers.: Aug. 5, 2019 Page 38 of 44 5.1.1 Proactive availability monitoring of SAP instances Ongoing RA CI 5.1.2 Troubleshooting SAP instances Ongoing RA CI 5.1.3 Analyze systems logs and fix technical failures Ongoing RA CI 5.1.4 Proactive monitoring of SAP processes Ongoing RA CI 5.1.5 Analyze update terminations and take appropriate action Ongoing RA CI 5.1.6 Clean up terminated updates Ongoing RA CI 5.1.7 Analyze lock entries and take appropriate action Ongoing RA CI 5.1.8 Proactively monitor ABAP short dumps Ongoing RA CI 5.1.9 Troubleshoot performance issues (excludes ABAP and application issues) Ongoing RA CI 5.1.10 Maintain SAP system profile parameters Ongoing RA CI 5.1.11 Implement/update tools for SAP support service readiness Ongoing RA RA 5.1.12 Management of web service runtime Ongoing CI RA 5.1.13 Configure RFC connections to SAP and non- SAP systems Ongoing CI RA 5.2 Interface Administration 5.2.1 Create/execute/monitor/troubleshoot batch input sessions Ongoing RA CI 5.2.2 Configure/monitor/troubleshoot interfaces and related (IDOCS, scripts etc.) basis configuration Ongoing RA CI 5.3 Job Scheduling 5.3.1 Schedule and monitor standard housekeeping jobs Ongoing RA CI 5.3.2 Schedule/monitor/change application batch jobs Request CI RA 5.4 Change Control Docusign Envelope ID: ED1CBE7F-8D59-424C-ABDD-289D79D7B4A3 Item 11 Attachment A - EPI-USE Labs Contract, C22182051 Amendment No. 1 Item 11: Staff Report Pg. 41 Packet Pg. 475 of 627 Vers.: Aug. 5, 2019 Page 39 of 44 5.4.1 Configure and maintain SAP Transport Management System and routes Request RA CI 5.4.2 Release tasks and transport requests Ongoing CI RA 5.4.3 Import transport requests Request CI RA 5.4.4 Troubleshooting SAP Transport Management System Ongoing RA CI 5.4.5 Address functional transport issues Ongoing CI RA 5.4.7 Testing of completed transport requests Ongoing CI RA 6.0 Sandbox Basis administration Ongoing RA P 6.1 Knowledge transfer to City basis on Sandbox Ongoing R P 13. Addendum C: Change Request Form The Change Request Form provided below may only be used pursuant to Section 4 (Not to Exceed Compensation) of this Agreement, regarding Additional Services, as an Attachment A (Scope of Work) to an approved Task Order as detailed in Section 4. The Change Request Form, by itself, is not permitted to be used separate from a Task Order as detailed under Section 4 and any use of a Change Request Form that is separate from and not part of an approved Task Order as detailed under Section 4 shall be void and without effect. Agreement ref: Originator: Client name: City of Palo Alto Change request date: Title of change: Reason for change: Include an outline of the reason for the change and the impact of not implementing it. Attach written change request. Description of change: Include full details of the change including any specifications, areas of the Services impacted. Docusign Envelope ID: ED1CBE7F-8D59-424C-ABDD-289D79D7B4A3 Item 11 Attachment A - EPI-USE Labs Contract, C22182051 Amendment No. 1 Item 11: Staff Report Pg. 42 Packet Pg. 476 of 627 Vers.: Aug. 5, 2019 Page 40 of 44 Impact on charges: Include full details of any charges, if any, for the change, and any revision to the charges. Impact on agreement: Describe the resulting updates to the Clauses and Schedules to the Agreement. Implementation schedule: Assumptions / additional information: Provide any assumptions made at the time of the change and any relevant supporting information. 14. [RESERVED] 15. [RESERVED] Docusign Envelope ID: ED1CBE7F-8D59-424C-ABDD-289D79D7B4A3 Item 11 Attachment A - EPI-USE Labs Contract, C22182051 Amendment No. 1 Item 11: Staff Report Pg. 43 Packet Pg. 477 of 627 Vers.: Aug. 5, 2019 Page 41 of 44 EXHIBIT B SCHEDULE OF PERFORMANCE, AMENDMENT NO.1 (AMENDED, REPLACES PREVIOUS) 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. Exhibit A (Scope of Services) also contains deliverable and frequency information for the provision of Services under this Agreement. Milestones Completion Number of Days/Weeks (as specified below) from NTP 1. Task 1: Transfer existing AWS hosting account in AWS cloud Completed 2. Task 2: Maintain account with AWS for hosting City’s infrastructure Annual ongoing 3. Task 3: Perform hosting and networking maintenance services Annual ongoing 4. Task 4: Perform SAP Basis Services Annual ongoing 5. Task 5: Perform ad-hoc services on as needed requests that are not covered in the Scope of Services. These services constitute Additional Services under Section 4 (Not to Exceed Compensation) of this Agreement, implemented pursuant to City-approved Task Order as detailed in Section 4. As-needed basis with the performance schedule as provided in the approved Task Order, as noted in the checkbox below. 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: ED1CBE7F-8D59-424C-ABDD-289D79D7B4A3 Item 11 Attachment A - EPI-USE Labs Contract, C22182051 Amendment No. 1 Item 11: Staff Report Pg. 44 Packet Pg. 478 of 627 Vers.: Aug. 5, 2019 Page 42 of 44 EXHIBIT C COMPENSATION, AMENDMENT NO.1 (AMENDED, REPLACES PREVIOUS) 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. (CONTINUED ON THE NEXT PAGE.) Docusign Envelope ID: ED1CBE7F-8D59-424C-ABDD-289D79D7B4A3 Item 11 Attachment A - EPI-USE Labs Contract, C22182051 Amendment No. 1 Item 11: Staff Report Pg. 45 Packet Pg. 479 of 627 Vers.: Aug. 5, 2019 Page 43 of 44 BUDGET SCHEDULE TASK AMENDMENT NO.1 CONTRACT YEAR 1 (PAID in FULL) CONTRAC T YEAR 2 (PAID in FULL) CONTRACT YEAR 3 (PAID in FULL) CONTRACT YEAR 4 (Effective August 1, 2025 – December 31, 2026) SUBTOTALS Task 1 (Transfer existing AWS hosting account in AWS cloud) $4,500 (Paid) -- -- -- $4,500 (Paid) Task 2 (Maintain account with AWS for hosting City’s infrastructure. Task 2 costs include estimated AWS costs. If actual AWS costs are lower than estimated, Consultant will charge City the lower costs. If actual AWS costs are higher, City may apply Additional Services funds to cover the overage per Section 4, or the parties will amend the Agreement per Section 29.4 for City to add funds to cover the overage.) $192,000 (Paid) $144,000 (Annual) -- $144,000 (Annual) -- $144,000 (Annual) -- $204,000 (17 Months) $192,000 (One-time Paid) $636,000 (Annual fees) Task 3 (Perform hosting and networking maintenance services) $86,400 (Annual) $86,400 (Annual) $86,400 (Annual) $122,400 (17 Months) $381,600 (Annual fees) Task 4 (Perform SAP Basis Services) $8,640 (Paid) $372,600 (Annual) -- $372,600 (Annual) -- $372,600 (Annual) -- $527,850 (17 Months) $8,640 (Paid) $1,645,650 (Annual fees) Subtotals for Services (Tasks 1-4) $808,140 $603,000 $603,000 $854,250 $2,868,390 Docusign Envelope ID: ED1CBE7F-8D59-424C-ABDD-289D79D7B4A3 Item 11 Attachment A - EPI-USE Labs Contract, C22182051 Amendment No. 1 Item 11: Staff Report Pg. 46 Packet Pg. 480 of 627 Vers.: Aug. 5, 2019 Page 44 of 44 Reimbursable Expenses (if any) $0 $0 $0 $0 $0 Subtotals for Services and Reimbursable Expenses (if any) $808,140 $603,000 $603,000 $854,250 $2,868,390 Task 5 (Additional Services) (Perform ad-hoc services on as- needed requests that are not covered in the Scope of Services. These services constitute Additional Services, Amendment No.1 under Section 4 (Not to Exceed Compensation) of this Agreement, implemented pursuant to City- approved Task Order as detailed in Section 4.) As needed, per Task Order, per Section 4 of this Agreement, Not to Exceed Amount at Far Right Across All Contract Years As needed, per Task Order, per Section 4 of this Agreement, Not to Exceed Amount at Far Right Across All Contract Years As needed, per Task Order, per Section 4 of this Agreement, Not to Exceed Amount at Far Right Across All Contract Years As needed, per Task Order, per Section 4 of this Agreement, Not to Exceed Amount at Far Right Across All Contract Years $200,000 (Years 1-3) $85,425 (Year 4) Amendment No. 1, Up to Year 4 Maximum Total Compensation $808,140* $603,000* $603,000* $854,250* $3,153,815 *Maximum Total Compensation Amounts per each contract year in the table above do not include the cost of Additional Services that may be approved by City per Section 4 (Not to Exceed Compensation); the cumulative amount of which across all contract years shall not exceed the maximum amount for Additional Services in this Agreement. REIMBURSABLE EXPENSES CONSULTANT’S ordinary business expenses, such as administrative, overhead, administrative support time/overtime, information systems, software and hardware, photocopying, telecommunications (telephone, internet), in-house printing, insurance and other ordinary business expenses, are included within the scope of payment for Services and are not reimbursable expenses hereunder. Reimbursable expenses, if any are specified as reimbursable under this section, will be reimbursed at actual cost. The expenses (by type, e.g. travel) for which CONSULTANT will be reimbursed are: NONE Docusign Envelope ID: ED1CBE7F-8D59-424C-ABDD-289D79D7B4A3 Item 11 Attachment A - EPI-USE Labs Contract, C22182051 Amendment No. 1 Item 11: Staff Report Pg. 47 Packet Pg. 481 of 627 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Community Services Meeting Date: August 11, 2025 Report #:2505-4734 TITLE Approval of Amendment #1 to Contract C23184669A With LifeMoves to Extend the Contract by Two Years Through July 1, 2025 – June 30, 2027 in the Amount of $512,377 for a Total Contract Value Not To Exceed $972,377 for the Provision of Homeless Outreach Service; and Amend the FY 2026 Budget in the General Fund and the Permanent Local Housing Allocation (PLHA) Grant Fund; CEQA Status – Not A Project. RECOMMENDATION Staff recommends that the City Council: 1. Approve and authorize the City Manager or their designee to execute Amendment #1 to Contract No. C23184669A (Attachment A) with LifeMoves to continue outreach services to the unhoused for an additional two years in an amount not to exceed $512,377. This amendment results in a revised total contract not-to-exceed amount of $972,377 over four years; and 2. Amend the Fiscal Year 2026 Budget Appropriation (requires a 2/3 approval) for: a) General Fund by: i) Increasing the Community Services Department Contract Services expense appropriation by $25,000; and ii) Increasing the Community Services Other Revenue (from Stanford University) estimate by $25,000 b) Permanent Local Housing Allocation (PLHA) Grant Fund by: i) Increasing the Community Services Department Contract Services expense appropriation by $162,201; ii) Decreasing the Ending Fund Balance by $162,201 EXECUTIVE SUMMARY This report recommends extending the City’s contract with LifeMoves to continue providing homeless outreach and engagement services for an additional two years, through June 30, 2027. Originally launched as a pilot program from July 1, 2023, to June 30, 2025, the initiative Item 12 Item 12 Staff Report Item 12: Staff Report Pg. 1 Packet Pg. 482 of 627 has delivered consistent, effective street outreach to unhoused individuals in Palo Alto, including services on Stanford University land under a revenue-sharing agreement. BACKGROUND Item 12 Item 12 Staff Report Item 12: Staff Report Pg. 2 Packet Pg. 483 of 627 transition into the Homekey Palo Alto interim shelter upon its opening (as outlined in the updated Scope of Services). ANALYSIS FISCAL/RESOURCE IMPACT Item 12 Item 12 Staff Report Item 12: Staff Report Pg. 3 Packet Pg. 484 of 627 Year 1 $251,301: $226,301 from PLHA entitlement funding (reflecting remaining allocations from entitlement years 2019, 2020, and 2021, which have already been received), and$25,000 from Stanford University (anticipated). Year 2 $261,076: $236,261 from PLHA entitlement funding (reflecting projected allocations from entitlement years 2022 and 2023), and $25,000 from Stanford University (anticipated). It is important to note that additional PLHA funding from entitlement year 2024 is expected to be released prior to the start of Year 2 of the contract. However, the award amount is not yet known and is therefore not included in this funding estimate. On December 18, 2023, the City Council recognized $592,368 in grant revenue from the PLHA grant for street outreach, and allocated $387,368 to the ending fund balance, as only a portion was needed in FY2024. 1 In FY2025, $209,000 was used from this fund for LifeMoves services, leaving approximately $178,000 for future needs. This amount, in addition to interest earned, is available in the PLHA ending fund balance for FY2026, or approximately $181,000. Additionally, prior year contract savings of $64,100 has been carried forward and will be used for year 1 of this extended agreement. This leaves approximately $19,000 left for future uses in the PLHA fund. PLHA grant funding is available to support the current contract extension. Continuation of services beyond 2026 will be contingent upon an evaluation of service performance, community impact and need, and the availability of grant or alternative City funding. STAKEHOLDER ENGAGEMENT A report on Housing and Homelessness in Palo Alto—including an overview of current initiatives and a gap analysis—was presented to the City Council on February 10, 2025. During the meeting, members of the public had the opportunity to provide input during oral communications. As a follow-up to Council direction at that meeting, the Council Policy and Services Committee will be discussing options to address homelessness impacts at a Special Meeting on August 25, at 6:00 pm. ENVIRONMENTAL REVIEW Approval of this contract is not a project under the California Environmental Quality Act (CEQA) per CEQA Guidelines 15061(b)(3). ATTACHMENTS Attachment A: Amendment 1 LifeMoves Contract C23184669A Attachment B: Stanford University Revenue Agreement Pledge APPROVED BY: Kristen O'Kane, Community Services Director 1 City Council, December 18, 2023; Agenda Item #17; SR#2311-2216; Item 12 Item 12 Staff Report Item 12: Staff Report Pg. 4 Packet Pg. 485 of 627 AMENDMENT NO. 1 TO CONTRACT NO. C23184669A BETWEEN THE CITY OF PALO ALTO AND LIFEMOVES This Amendment No. 1 (this “Amendment”) to Contract No. C23184669A (the “Contract” as defined below) is entered into as of May 28, 2025, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and LIFEMOVES, a California non-profit corporation, located at 2550 Great America Way, Suite 201, Santa Clara, CA 95054 (“CONSULTANT”). CITY and CONSULTANT are referred to collectively as the “Parties” in this Amendment. R E C I T A L S A. The Contract (as defined below) was entered into by and between the Parties hereto for the provision of a range of services to meet and engage unhoused individuals where they are, including outreach services, welfare checks, , services assessments for local and county wide serve and service coordination, in connection with the Project (the “Services”, as detailed more fully in Exhibit A). B. The Parties now wish to amend the Contract in order to extend the term from June 30, 2025, through June 30, 2027. The Parties also wish to amend the scope of services and increase the contract value by Five Hundred Twelve Thousand, Three Hundred Seventy-Seven Dollars ($512,377) for Fiscal Years 26 (starting July 1, 2025) & 27 (starting July 1, 2026), to a new total not-to-exceed compensation amount of Nine Hundred Seventy-Two Thousand Three Hundred Seventy-Seven Dollars ($972,377), as detailed therein. . NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the Parties agree: SECTION 1. Definitions. The following definitions shall apply to this Amendment: a. Contract. The term “Contract” shall mean Contract No. C23184669A between CONSULTANT and CITY, dated June 19, 2023. b. Other Terms. Capitalized terms used and not defined in this Amendment shall have the meanings assigned to such terms in the Contract. SECTION 2. Section 2 “TERM” of the Contract is hereby amended to read as follows: The term of this Agreement shall be from the date of its full execution through June 30, 2027, unless terminated earlier pursuant to Section 19 (Termination) of this Agreement. // // // Docusign Envelope ID: 2A0D33C1-7AF9-4A5A-A5E0-0CBC93FC78A4 Item 12 Attachment A - Amendment 1 LifeMoves Contract C23184669A Item 12: Staff Report Pg. 5 Packet Pg. 486 of 627 SECTION 3. Section 4 “NOT TO EXCEED COMPENSATION” of the Contract is hereby amended to read as follows: 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 Nine Hundred Seventy-Two Thousand Three Hundred Seventy-Seven Dollars ($972,377). 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. SECTION 4. The following exhibit(s) to the Contract is/are hereby amended or added, as indicated below, to read as set forth in the attachment(s) to this Amendment, which is/are hereby incorporated in full into this Amendment and into the Contract by this reference: a. Exhibit “A” entitled “SCOPE OF SERVICES FY2026-2027, AMENDMENT NO. 1”, AMENDED, REPLACES PREVIOUS. b. Exhibit “C” entitled “COMPENSATION, AMENDMENT NO. 1”, AMENDED, REPLACES PREVIOUS. SECTION 5. Legal Effect. Except as modified by this Amendment, all other provisions of the Contract, including any exhibits thereto, shall remain in full force and effect. SECTION 6. Incorporation of Recitals. The recitals set forth above are terms of this Amendment and are fully incorporated herein by this reference. (SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.) Docusign Envelope ID: 2A0D33C1-7AF9-4A5A-A5E0-0CBC93FC78A4 Item 12 Attachment A - Amendment 1 LifeMoves Contract C23184669A Item 12: Staff Report Pg. 6 Packet Pg. 487 of 627 SIGNATURES OF THE PARTIES IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed this Amendment effective as of the date first above written. CITY OF PALO ALTO City Manager APPROVED AS TO FORM: City Attorney or designee LIFEMOVES Officer 1 By: Name: Title: Attachments: EXHIBIT A: SCOPE OF SERVICES, AMENDMENT NO. 1 (AMENDED, REPLACES PREVIOUS) EXHIBIT C: COMPENSATION, AMENDMENT NO. 1 (AMENDED, REPLACES PREVIOUS) Docusign Envelope ID: 2A0D33C1-7AF9-4A5A-A5E0-0CBC93FC78A4 Aubrey Merriman, Chief Executive Officer AUBREY MERRIMAN Item 12 Attachment A - Amendment 1 LifeMoves Contract C23184669A Item 12: Staff Report Pg. 7 Packet Pg. 488 of 627 EXHIBIT “A” SCOPE OF SERVICES, AMENDMENT NO. 1 (AMENDED, REPLACES PREVIOUS) Through the City of Palo Alto Homeless Outreach Services program, the City seeks to support, expand, and enhance existing City of Palo Alto (“Palo Alto” or “City”) homeless outreach efforts with additional tools and innovative strategies to effectively engage with unsheltered individuals in Palo Alto. The Palo Alto Homeless Outreach Services team will be staffed by two full-time outreach workers who are dedicated to this program. The outreach workers will be engaging with unsheltered Palo Alto residents 40 hours per week, with a regular work schedule to be determined after assessing the optimal window of time to meet with those unhoused local residents. LifeMoves will provide additional staff support should a member of the Palo Alto Homeless Outreach Services team be absent for a significant length of time. A Homeless Outreach Team (HOT) director will supervise the outreach workers and coordinate outreach efforts in Palo Alto. Scope of Work/Tasks Consultant will: Provide Supervision: Assign a Palo Alto Outreach director (0.1 FTE) to ensure the delivery of high-quality services and provide oversight for the two outreach workers assigned to this program. Provide Outreach Services: Hire or assign at least two (2.0 FTE) outreach workers to the Palo Alto Homeless Outreach Team (PA HOT). At least one outreach worker will be bilingual, with an ability to speak Spanish and English. For those who are unsheltered, LifeMoves outreach workers will: • Provide customized outreach and engagement services in the field, building upon current best practices and protocols used by the LifeMoves Palo Alto Outreach program within the County of San Mateo and other LifeMoves outreach programs; o Street Outreach - Proactively seek out and develop relationships through repeated contacts with unhoused individuals throughout the community, while maintaining a regular presence within the community. The outreach workers will seek to engage with local, unsheltered individuals living on the streets, in areas not meant for human habitation or in vehicles (personal and recreational vehicles). o Frequent locations that include Palo Alto retail settings, public transportation hubs, civic facilities, public parking garages and lots, isolated spaces, parks and spaces open to the public for recreation and reflection, areas where vehicularly housed individuals gather, and other locales that are not meant for human habitation. Outreach is conducted primarily in the field where clients live and spend time; o Connect individuals to healthcare, transportation services, or services addressing other basic needs; o Offer supplies or other items to assist clients with basic needs and build trust; o Connect individuals to the Coordinated Assessment System (CAS) and assist them in completing VI- SPDAT assessments, as needed; Docusign Envelope ID: 2A0D33C1-7AF9-4A5A-A5E0-0CBC93FC78A4 Item 12 Attachment A - Amendment 1 LifeMoves Contract C23184669A Item 12: Staff Report Pg. 8 Packet Pg. 489 of 627 o Seamlessly transfer clients requesting case management and housing assistance to colleagues at LifeMoves programs or sites, including the Opportunity Services Center, or other local agencies, and; o Execute additional outreach and assistance during inclement weather and other emergencies. o Proactively identify and connect with unhoused Palo Alto residents with the goal of moving them to interim supportive housing and permanent housing; and o Engage in a coordinated and focused effort to maximize the number of unhoused Palo Altans assessed and ready to enter the Homekey Palo Alto interim shelter at its opening, including regularly and closely partnering with other area service providers. For concerned residents, local partners, and the retail community, LifeMoves outreach workers will: • Offer timely response and technical expertise to support public safety for all community members, including service and medical providers, law enforcement, City or County officials, stakeholders, or other community members; o Provide rapid acknowledgement to requests for contact and support to unsheltered homeless individuals or households in Palo Alto. Staff will respond within one business day, Monday – Friday; o Locate and support individuals who are on a list for the City of Palo Alto, or who are the subject of rapid response inquiries in the City; o Offer intervention techniques to community stakeholders on best practices for interacting with unhoused individuals in crisis; o Build rapport and develop positive relationships with business owners, local partners, law enforcement, residents living near to locations where unsheltered individuals congregate or spend significant time, and civic collaborators (including representatives of Stanford University) concerned about homelessness in the community; o Establish a trusted presence as a LifeMoves ambassador within Palo Alto, including wearing LifeMoves-branded attire and associated credentials; o Participate in regular accountability meetings, forge additional connections with other stakeholders, and share trends and lessons learned in the community; o Proactively identify and connect with unhoused Palo Alto residents with the goal of moving them to stable housing; and o Participate in regular accountability meetings, forge additional connections with other stakeholders, such as facilitating the “Monday Morning Huddle” with other local homeless service providers and share trends and lessons learned in the community. Reporting Requisites and Deliverables: • Maintain a comprehensive log of outreach activities and contacts, including types of interactions, locations, identified needs/issues, and services, connections, and resources provided • Collect and document data as required and assist in compiling statistical data in Housing Management Informational Systems (HMIS) and the organization’s client database • Submit detailed outreach reports to the City. Specific items to be tracked will be determined between the City and Provider Docusign Envelope ID: 2A0D33C1-7AF9-4A5A-A5E0-0CBC93FC78A4 Item 12 Attachment A - Amendment 1 LifeMoves Contract C23184669A Item 12: Staff Report Pg. 9 Packet Pg. 490 of 627 • LifeMoves (Provider) will provide a quarterly activity report to demonstrate progress toward meeting Scope of Program Services within 30 days of agreed upon deadlines (dates to be determined once contract established). Each report will include information from the previous three months as well as other requested information from the City of Palo Alto. The narratives will include language around collaboration with other providers, and outreach to community members or business community. • The Q4 report will focus on the preceding three months but also provide data on contracted services for the entire fiscal year. Reports will be prepared in the format agreed upon by the City and LifeMoves (Provider). o Meet at least quarterly with the contract manager to review outreach reports and service provisions Docusign Envelope ID: 2A0D33C1-7AF9-4A5A-A5E0-0CBC93FC78A4 Item 12 Attachment A - Amendment 1 LifeMoves Contract C23184669A Item 12: Staff Report Pg. 10 Packet Pg. 491 of 627 Vers.: Aug. 5, 2019 Page 7 of 10 Objectives and Metrics: During the term of the Agreement, Consultant will report on the following objectives: Metric Contract Period (July 1, 2025 - June 30, 2027 engagement services, including case management health services case managers food, showers, and clothing. Additional Outcomes: Outreach workers will refer clients to the appropriate agencies for services and may provide case management services as time allows. Outcomes, including clients’ acceptance of case management services, enrollment into an interim housing program, and exits to permanent housing will be recorded by the agency providing services; in the case of LifeMoves, through the LifeMoves proprietary database and HMIS, and for other agencies, through requests for information and HMIS. Every effort will be made to report on the following outcomes, but the outcomes are not quantified here because they do not fall under the scope of work of the outreach workers funded through this contract. Docusign Envelope ID: 2A0D33C1-7AF9-4A5A-A5E0-0CBC93FC78A4 Item 12 Attachment A - Amendment 1 LifeMoves Contract C23184669A Item 12: Staff Report Pg. 11 Packet Pg. 492 of 627 Vers.: Aug. 5, 2019 Page 8 of 10 Outcomes 1 Number of unduplicated clients who move into emergency shelter 2 Number of unduplicated clients who move into interim housing 3 Number of unduplicated clients who move into permanent housing 4 Number of clients connected to housing vouchers via CAS assessment Docusign Envelope ID: 2A0D33C1-7AF9-4A5A-A5E0-0CBC93FC78A4 Item 12 Attachment A - Amendment 1 LifeMoves Contract C23184669A Item 12: Staff Report Pg. 12 Packet Pg. 493 of 627 Vers.: Aug. 5, 2019 Page 9 of 10 EXHIBIT “C” COMPENSATION, AMENDMENT NO. 1 (AMENDED, REPLACES PREVIOUS) 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. 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. CONTRACT OVERVIEW (FY24 –27) Fiscal Year Original Contract Value Amended Contract Value Total $ 460,000.00 $ 512,377.00 NTE: $ 972,377.00 BUDGET SCHEDULE (FY26-27) TASK NOT TO EXCEED AMOUNT 512, 377 0 Total for Services and Reimbursable Expenses $ 512,377 Docusign Envelope ID: 2A0D33C1-7AF9-4A5A-A5E0-0CBC93FC78A4 Item 12 Attachment A - Amendment 1 LifeMoves Contract C23184669A Item 12: Staff Report Pg. 13 Packet Pg. 494 of 627 Vers.: Aug. 5, 2019 Page 10 of 10 Maximum Total Compensation (FY26-27)$ 512,377 REIMBURSABLE EXPENSES CONSULTANT’S ordinary business expenses, such as administrative, overhead, administrative support time/overtime, information systems, software and hardware, photocopying, telecommunications (telephone, internet), in-house printing, insurance and other ordinary business expenses, are included within the scope of payment for Services and are not reimbursable expenses hereunder. Reimbursable expenses, if any are specified as reimbursable under this section, will be reimbursed at actual cost. The expenses (by type, e.g. travel) for which CONSULTANT will be reimbursed are: NONE up to the not-to-exceed amount of: $0.00. All requests for reimbursement of expenses, if any are specified as reimbursable under this section, shall be accompanied by appropriate backup documentation and information. Docusign Envelope ID: 2A0D33C1-7AF9-4A5A-A5E0-0CBC93FC78A4 Item 12 Attachment A - Amendment 1 LifeMoves Contract C23184669A Item 12: Staff Report Pg. 14 Packet Pg. 495 of 627 Item 12 Attachment B - Stanford University Revenue Agreement Pledge Item 12: Staff Report Pg. 15 Packet Pg. 496 of 627 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Planning and Development Services Meeting Date: August 11, 2025 Report #:2506-4848 TITLE QUASI-JUDICIAL. 3150 El Camino Real [24PLN-00231]: Approval of a Vesting Tentative Map to Merge Five Parcels Together to Create One 111,030-Square-Foot Parcel to Facilitate Construction of 368 New Residential Rental Units. CEQA Status: Streamlined CEQA Review in Accordance with Section 15183. Zoning District: CS (Service Commercial). RECOMMENDATION Staff recommends the City Council take the following actions: 1. Find the project consistent with the CEQA Guidelines section 15183 analysis previously approved by the Director of Planning and Development Services (Attachment C); and 2. Approve the Record of Land Use Action (RLUA) in Attachment B, approving the Vesting Tentative Map based on findings and subject to conditions of approval. EXECUTIVE SUMMARY The applicant requests approval of a Vesting Tentative Map to merge five parcels to create one 111,030-square-foot parcel located at 3128 and 3150-3160 El Camino Real. Through a separate, Streamlined Housing Development Review Process, the applicant proposed, and the Director of Planning and Development Services approved, construction of a 368-unit residential apartment project. The development application included 74 units provided at below market rate and made affordable to low-income households (50%-80% of Area Median Income). The Vesting Tentative Map also includes necessary utility easements in accordance with the City of Palo Alto Municipal Code and City of Palo Alto Utilities standards, which would be formally accepted by the City as part of the Final Map process. A location map is included in Attachment A. The proposed Vesting Tentative Map is linked in Attachment C. BACKGROUND On August 27, 2024, Acclaim Properties filed a Vesting Tentative Map application concurrently with a Streamlined Housing Development Review application. In accordance with the Vesting Item 13 Item 13 Staff Report Item 13: Staff Report Pg. 1 Packet Pg. 497 of 627 Tentative Map Palo Alto Municipal Code (PAMC) Sections 21.13, approval of the map application was deferred until all other entitlements were approved. For this application the associated entitlements for the planned improvements were approved on July 11, 2025, following a study session with the Architectural Review Board on November 7, 2024,1 and completion of the environmental analysis. 2 Commissioner Hechtman also identified three minor inconsistencies in the Draft Record of Land Use Action, which have been corrected. ANALYSIS 1 Link to the November 7, 2024 ARB Staff Report: https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=13926 Video: https://www.youtube.com/watch?v=GXNKd9VWddc 2 Link to the September 19, 2024 ARB Staff Report: https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=13926 Video: https://www.youtube.com/watch?v=GXNKd9VWddc Item 13 Item 13 Staff Report Item 13: Staff Report Pg. 2 Packet Pg. 498 of 627 North Ventura neighborhood across El Camino Real. Palo Alto Square is comprised of two 10- story towers with four two-story structures, while the adjacent Parmani Hotel and Clocktower Square Office Park properties are comprised of two-story structures. Across El Camino Real is a variety of one- and two-story personal service businesses (private gyms). A five-story affordable housing project has been approved across El Camino Real at 3001/3017 El Camino Real but has not yet been constructed. City-wide, the character of El Camino Real is continuing to transition from commercial uses to multi-family residential and mixed uses and continues to be an appropriate location to place high density housing. 5 Housing Element 5 The Palo Alto Comprehensive Plan is available online: bit.ly/PACompPlan2030 Item 13 Item 13 Staff Report Item 13: Staff Report Pg. 3 Packet Pg. 499 of 627 inclusionary below market rate units on site, consistent with the City’s goals of providing housing, and particularly providing below market rate units. The difference in the number of units identified in the Housing Element and the units proposed in this project does not result in a Housing Element capacity below the required RHNA, therefore, re-designation of another Housing Inventory Site to accommodate this difference is not required. The proposed project and relevant discussion and findings herein reflect the Vesting Tentative Map. The Director previously approved the proposed site improvements associated with this lot merger as part of a streamlined housing development review application. The map also includes dedication of relevant public utility easements associated with the new site improvements. 7 FISCAL/RESOURCE IMPACT STAKEHOLDER ENGAGEMENT 7 The Palo Alto Zoning Code is available online: bit.ly/PAZoningCode Item 13 Item 13 Staff Report Item 13: Staff Report Pg. 4 Packet Pg. 500 of 627 least ten days in advance of the hearing. Notice of a public hearing for this project was published in the Daily Post and postcard mailing occurred on July 25, 2025, which is 10 days in advance of the meeting. ENVIRONMENTAL REVIEW Item 13 Item 13 Staff Report Item 13: Staff Report Pg. 5 Packet Pg. 501 of 627 environmental regulations of the City. Specifically, the proposed Vesting Tentative Map has been reviewed under a streamlined CEQA review in accordance with CEQA Guidelines Section 15183. A link to the exemption documentation is available in Attachment C. ATTACHMENTS APPROVED BY: Item 13 Item 13 Staff Report Item 13: Staff Report Pg. 6 Packet Pg. 502 of 627 4 50 50 NO_SPECIAL_SETBACK_FOR_MIXEDUSE_HOTEL_USES_3200_ECR_PAMC20_08_20 1B 1C 1A 1 2A BLDG 5 BLDG 4 BLDG 6 705.1' 1133.4' 199.7' 199.7' 50.0' 199.7' 50.0' 199.7' 50.0' 199.7' 50.0' 50.0' 150.0' 50.0' 150.0' 49.9' 150.0' 49.9' 150.0' 149.8' 150.0' 10.0' 93.6' 55.0' 21.0'28.8' 75.0' 60.0'93.6' 52.0' 144.3' 58.1' 68.3' 590.8' 705.1' 276.0' 100.0' 242.1' 29.5' 54.7' 26.3' 119.7' 50.0'119.7' 50.0' 119.7' 115.7'119.7' 115.7' 139.5' 50.0' 139.5' 50.0' 139.6' 50.0' 139.6' 50.0' 119.7' 50.0'119.7' 50.0' 119.7' 50.0'119.7' 50.0' 119.7' 50.0'119.7' 50.0' 119.7' 50.0'119.7' 50.0' 66.9' 200.0' 66.9' 200.0' 115.6'134.7' 5 50.0'119.7' 134.7' 50.0'134.7' 50.0' 134.7' 50.0'134.7' 50.0' 134.7' 50.0' 134.7' 50.0' 134.7' 50.0' 134.7' 50.0' 134.7' 50.0' 134.7' 50.0' 134.7' 50.0' 134.7' 50.0' 134.7' 134.7' 50.0'134.7' 50.0' 50.0' 150.0' 50.0' 150.0' 119.7' 65.7'119.7' 65.6' 119.7' 50.0'119.7' 50.0' 119.7' 50.0'119.7' 50.0' 50.0'119.7' 50.0'119.7' 119.7' 50.0'119.7' 50.0' 119.7' 50.0'119.7' 50.0' 50.0'119.7' 50.0' 119.7'50.0'119.7' 50.0' 119.7' 119.7' 50.0'119.7' 50.0' 119.7' 50.0'119.7' 50.0' 119.7' 50.0'119.7' 50.0' 119.7' 50.0'119.7' 50.0' 119.7' 50.0'119.7' 50.0' 47.9' 150.0' 47.9' 150.0' 95.7' 150.0' 95.7' 150.0' 95.7' 150.0' 95.7' 150.0' 49.8' 200.0' 72.6' 200.0' 72.6' 115.6'134.7'115.7'134.7'115.6'134.7'115.6'134.7'115.6'134.7'115.7'134.7' ' 193.1' 274.7' 317.0' 216.1'375.4' 208.0' 214.6' 259.4' 51.4' 214.6' 33 213.9' 310.8' 166.7' 365.7' 157.4' 50.4' 41.6' 706.6' 498.2' 526.6' 375.4'216.1' 148.7' 51.0' 51.0' 148.7' 200.0' 200.0' 200.0' 200.0' 150.0' 150.0' 99.8' 99.8' 199.7' 165.4 85.1 34.6 150.0' 50.0' 100.0' 50.0' 149.7'149.7' 149.7' 115.7' 100.0'50.0' 85.1 199.7' 151.5' 275.2' 14.4' 108.7' 108.7' 52.8'52.8' 98.8' 67.2' 166.4'166.4' 30.0' 30.0'18.0' 18.0' 275.2' 185.2' 190.0' 275.0' 275.0' 275.0'275.0' 275.0' 119.5' 119.5'119.5' 119.5'119.5' 119.5'119.5' 119.5'119.5' 119.5' 50.0' 50.0' 50.0' 50.0' 50.0' 50.0' 50.0' 50.0' 50.0' 50.0' 50.0' 50.0' 250.0' 20.0' 20.0' 78.5'78.5' 7.4' 113.8' 62.6'75.0' 28.8' 113.6'113.6' 113.6'113.6' 113.8' 47.4' 47.4' .4' 47.4' 47.4' 150.0' 69.3' 199.9' 50.0'65.2' 149.0' 150.0' 149.0' 150.0' 164.9 199.7 134.7' 200.0' 200.0' 109.85' 458.75' 239.70' 150.05' 129.85' 308.64' 129.85' 102.65'129.85' 102.56 129.85' 205.99' 129.85' 206.05'478.7' 109.8' 150.0' 21.8' 109.8' 19.8' 2904 425 455 2805 2825 3239 411 630 660 611 607 3111- 3159 336 340 370 380 360 3225 435 460 32953265 3255 572 582 592 604 31703160 3150 3300 602 450 3128 3200 420 412 461 451 431 421 411 405 399 429 440 435 425 3200 3250 375 365 385 395 3017 441 3201 3225 430 420 440 450 460 470 461 2875 411 421 431 471 470 456 450 440 441 451 461 430 2999 29512905 3001 6408 412 0 700 850 600 620 431A 420 LAEL CAMINO REAL HANSEN WAY EL CAMINO R HANSEN WAY SEN WAY ACACIA AVENUE PORTAGE AVENUE OLIVE AVENUEPEPPER AVENUE EET PAGE MILL R EL CAMINO REALEL CAMINO REAL EL CAMINO REALEL CAMINO REAL CN 4637 RM- R-1 CS CS RP CS(D) CPI This map is a product of theCity of Palo Alto GIS This document is a graphic representation only of best available sources. Legend Highlighted Features Special Setback FrontagesParkSchoolabcBuilding Roof Outline Underlying Lot Line abc EasementabcLot DimensionsZone DistrictsabcZone District Labels City Jurisdictional Limits:Palo Alto City BoundaryTree 0' 148' 3150 El Camino RealCITY OF PALO ALTOINCORPORATED CALIFORNIA P a l o A l t oT h e C i t y o f APRIL 16 1894 The City of Palo Alto assumes no responsibility for any errors. ©1989 to 2016 City of Palo Altogsauls, 2024-10-04 07:45:59 (\\cc-maps\Encompass\Admin\Personal\Planning.mdb) Item 13 Attachment A - Location Map Item 13: Staff Report Pg. 7 Packet Pg. 503 of 627 1 0160169_KB2_20250225_AY16 ACTION NO. 2025-__ At its meeting on _________, 2025, the City Council of the City of Palo Alto (“City Council”) approved the Vesting Tentative Map to merge five existing parcels to create one resulting parcel for a 368-unit apartment building, making the following findings, determinations and declarations: SECTION 1. Background. A. On August 27, 2024, Acclaim Properties submitted a subdivision map application for a Vesting Tentative Map to merge five parcels into one resulting parcel for 3150 El Camino Real (“The Project”). The project site is comprised of five existing lots: APN No. 148-20-079, approximately 8,250 square feet, an undeveloped parcel; APN No. 148-20-080, approximately 4,950 square feet, an undeveloped parcel; APN No. 148-20-035, approximately 52,250 square feet, developed with a commercial eating and drinking use; APN No. 148-20-054, approximately 27,225 square feet, developed with a commercial eating and drinking use; APN No. 148-20-055, approximately 18,425 square feet, developed with a commercial eating and drinking use. Uses abutting the site include a ten-story office building to the north, a two-story hotel to the west, various one and two-story commercial uses to the east across El Camino Real, and a two-story hotel to the south. B. Following staff review, the Planning and Transportation Commission reviewed the project and recommended approval on May 14, 2025, subject to conditions of approval. C. On ___________, 2025 the City Council held a public meeting in accordance with the City Council’s policies and procedures and approved the project subject to conditions of approval. SECTION 2. Environmental Review. The City, as the lead agency for the Project, has determined the project is eligible for a Streamlined review for consistency with the Comprehensive Plan and Comprehensive Plan EIR in accordance with California Environmental Quality Act (CEQA) Guidelines section 15183. Documentation to support the streamlined review is available as part of the public record on file with the Planning and Development Services Division. SECTION 3. Vesting Tentative Map Findings. A legislative body of a city shall deny approval of a Subdivision Map, if it makes any of the following findings (California Government Code Section 66474). The City Council cannot make these findings for the following reasons: Item 13 Attachment B - Draft Record of Land Use Action Item 13: Staff Report Pg. 8 Packet Pg. 504 of 627 2 0160169_KB2_20250225_AY16 1.That the proposed map is not consistent with applicable general and specific plans as specified in Section 65451: There is no adopted specific plan for this project site. The site is consistent with the Comprehensive Plan as described below. 2.That the design or improvement of the proposed subdivision is not consistent with applicable general and specific plans: There is no adopted specific plan for this project site. The proposed Vesting Tentative Map and related improvements is consistent with the Comprehensive Plan in that it facilitates housing development on a site designated for multi-family use within the urban services area, consistent with Goal 2 of the Housing Element and Goal L1.2 of the Land Use Element. The project does not replace existing housing. The project includes 74 units that will be offered at a rate affordable to low-income households at 50%-80% area median income (AMI). The project improves the city’s jobs housing imbalance, consistent with the Transportation Element’s goals and policies. 3. That the site is not physically suitable for the type of development: The Project site is suitable for multi-family residential development in that it’s identified as a Housing Inventory Site in the Housing Element and is located within the City’s El Camino Real Focus Area, an area identified for high density housing within the City. The proposed parcel meets the minimum code requirements for the CS zone district with respect to lot area, width, and depth. The proposed number of apartment units created on the resulting parcel complies with the applicable densities set forth in the land use element and zoning code, consistent with the focus area standards. 4.That the site is not physically suitable for the proposed density of development: The proposed improvements include a total of 368 multi-family residential units and results in 144 dwelling units (DU) per acre across the resulting parcel. There is no maximum density for projects on El Camino Real and the improvements are consistent with the floor area and height allowances for the site as set forth in the zoning. The improvements also fall within the identified unit capacity of the site set forth in the adopted Housing Element. Therefore, it is physically suitable for the parcel. 5. That the design of the subdivision or the proposed improvements are likely to cause substantial environmental damage or substantially and avoidably injure fish or wildlife or their habitat: The project is located within the built environment that does not contain quality habitat for fish or other wildlife on the site or within the vicinity of the site. The nearest stream is a portion of Adobe Creek approximately 1,000 feet southeast from the project site. The adopted Palo Alto Item 13 Attachment B - Draft Record of Land Use Action Item 13: Staff Report Pg. 9 Packet Pg. 505 of 627 3 0160169_KB2_20250225_AY16 2030 Comprehensive Plan includes Map N-1, which identified sensitive animal and plant species within the Palo Alto quadrangle, a large geographic area that includes the urban portions along the bay and within the foothills, based on information in the California natural Diversity Database (CNDDB). Based on this map, and the urban nature of the site, the subject property does not contain any habitat for endangered, rare, or threatened species and has not historically supported any of these species. 6. That the design of the subdivision or type of improvements is likely to cause serious public health problems: 7. That the design of the subdivision or the type of improvements will conflict with easements, acquired by the public at large, for access through or use of, property within the proposed subdivision. In this connection, the governing body may approve a map if it finds that alternate easements, for access or for use, will be provided, and that these will be substantially equivalent to ones previously acquired by the public. This subsection shall apply only to easements of record or to easements established by judgment of a court of competent jurisdiction and no authority is hereby granted to a legislative body to determine that the public at large has acquired easements for access through or use of property within the proposed subdivision. Item 13 Attachment B - Draft Record of Land Use Action Item 13: Staff Report Pg. 10 Packet Pg. 506 of 627 4 0160169_KB2_20250225_AY16 Vesting Tentative Map approval, the subdivider shall cause the subdivision or any part thereof to be surveyed, and a Final Map, as specified in Chapter 21.08, to be prepared in conformance with the Vesting Tentative Map as conditionally approved, and in compliance with the provisions of the Subdivision Map Act and PAMC Title 21 and submitted to the City Engineer (PAMC Section 21.16.010[a]). Planning Public Works Engineering Item 13 Attachment B - Draft Record of Land Use Action Item 13: Staff Report Pg. 11 Packet Pg. 507 of 627 5 0160169_KB2_20250225_AY16 revision of the document titled “Overview and Guidelines for the Review of Subdivision Projects”. Particularly Section II (items 5 through 12) and Section V (items A through C). https://www.cityofpaloalto.org/files/assets/public/planning-amp-development- services/file-migration/current-planning/forms-and-guidelines/overview-and- guidelines-for-the-review-of-subdivision-projects.pdf 7. SUBDIVISION IMPROVEMENT AGREEMENT: The applicant shall execute a Subdivision Improvement Agreement and provide improvement securities (Bonds) for all proposed public improvements. THE AGREEMENT SHALL BE EXECUTED PRIOR TO MAP RECORDATION OR ISSUANCE OF ANY PERMITS FOR CONSTRUCTION, ONSITE AND OFFSITE. ADVISORY -- The applicant shall provide a detailed itemized stamped and signed engineer's estimate for all off-site public improvements which will be reviewed to determine the security amount. 8. FINAL MAP: This project is subject to, and contingent upon the approval of a tentative map and recordation of a Final Map. The submittal, approval and recordation of the Map shall be in accordance with the provisions of the California Subdivision Map Act and Palo Alto Municipal Code Title 21 Subdivision requirements. All existing and proposed property lines, easements, dedications shown on the tentative map are subject to City’s technical review and staff approval during the map process prior to issuance of any construction permits. 9. MAP THIRD-PARTY REVIEW: The City contracts with a third-party surveyor that will review and provide approval of the map’s technical correctness as the City Surveyor, as permitted by the Subdivision Map Act. The Public Works Department will forward a Scope & Fee Letter from the third-party surveyor and the applicant will be responsible for payment of the fee’s indicated therein, which is based on the complexity of the map. 10. STREETWORK PERMIT: The applicant shall obtain a Streetwork Permit from the Department of Public Works for all public improvements. 11. GRADING AND EXCAVATION PERMIT: A Grading Permit is required per PAMC Chapter 16.28. The permit application and all applicable documents (see Section H of application) shall be submitted to Public Works Engineering. Add the following note: “THIS GRADING PERMIT WILL ONLY AUTHORIZE GENERAL GRADING AND INSTALLATION OF THE STORM DRAIN SYSTEM. OTHER BUILDING AND UTILITY IMPROVEMENTS ARE SHOWN FOR REFERENCE INFORMATION ONLY AND ARE SUBJECT TO SEPARATE BUILDING PERMIT APPROVAL.” 12. ROUGH GRADING: provide a Rough Grading Plan for the work proposed as part of the Grading and Excavation Permit application. The Rough Grading Plans shall including the following: pad elevation, elevator pit elevation, ground monitoring wells, limits of over excavation, stockpile area of material, overall earthwork volumes (cut and fill), temporary shoring for any existing facilities, ramps for access, crane locations (if any), Item 13 Attachment B - Draft Record of Land Use Action Item 13: Staff Report Pg. 12 Packet Pg. 508 of 627 6 0160169_KB2_20250225_AY16 tree protection measures, etc. 13. CIVIL ENGINEER CERTIFICATION: Upon completion of the rough grading work and at the final completion of the work, applicant shall provide an as-graded grading plan prepared by the civil engineer that includes original ground surface elevations, as-graded ground surface elevations, lot drainage patterns and locations and elevations of all surface and subsurface drainage facilities. The civil engineer shall certify that the work was done in accordance with the final approved grading plan. 14. SOILS ENGINEER CERTIFICATION: Upon completion of the rough grading work and at the final completion of the work, applicant shall provide a soil grading report prepared by the soils engineer, including locations and elevation of field density tests, summaries of field and laboratory tests and other substantiating data, and comments on any changes made during grading and their effect on the recommendations made in the soils engineering investigation report. The soils engineer shall certify as to the adequacy of the site for the intended use. 15. SHORING & TIEBACKS: Provide a shoring plan showing the existing utilities (if needed), to clearly indicate how the new structures will be constructed while protecting the existing utilities (if any). If tiebacks are proposed they shall not extend onto adjacent private property, existing easements or into the City’s right-of-way without having first obtained written permission from the private property owners and/or an encroachment permit from Public Works. 16. HYDRAULICS AND HYDROLOGY REPORT: This report compares the site’s pre-project and post-project conditions. Include a description of the existing site and how the proposed project works in terms of drainage. The report shall include calculations per the Santa Clara County Drainage Manual (2007) comparing 10-year versus 100-year storms (6 duration). 17. DIRECT CONNECTIONS TO STORM DRAIN SYSTEM: If the project proposes to replace and/or add connections to the City maintained storm drain system, then the applicant may be responsible for improvements to the system. These improvements may include, but not limited to, upsizing the storm drain facility, replacing or adding City standard catch basins, pipes and manholes. THIS MAY INCLUDE REPLACING BRICK AND MORTAR MANHOLES. The extent of required improvements will be at the public works staff discretion and shall be consistent with Storm Drain Master Plan and Public Works Construction Standards. Any work on the city's storm drain systems requires permits and inspection by Public Works inspectors. 18. CCTV OF STORM DRAIN SYSTEM: Post construction the applicant may be required to provide CCTV inspection of the City’s storm drain facilities to verify that any lines were not broken, cracked or damaged during construction. The video shall be high resolution and done by professional who is familiar with the process and meticulous. A CCTV Item 13 Attachment B - Draft Record of Land Use Action Item 13: Staff Report Pg. 13 Packet Pg. 509 of 627 7 0160169_KB2_20250225_AY16 inspection video is required for new storm drain connection (s) to verify proper connections were made into the City’s system and that no construction material was left behind. Videos of storm drain system may also be required where construction occurred less than 5-ft from the city’s storm drain system. Videos shall be provided from structure to structure, such as manhole to manhole. Contractor may want to conduct their own inspection in advance of construction to verify the existing pipe integrity. If existing damages are located, they shall be reported to Public Works inspectors prior to the start of construction. If not reported, the contractor may be responsible to restore the pipe segment as determined by Public Works prior to final. 19. GEOTECHNICAL ENGINEER STATEMENT: The grading plans shall include the following statement signed and sealed by the Geotechnical Engineer of Record: “THIS PLAN HAS BEEN REVIEWED AND FOUND TO BE IN GENERAL CONFORMANCE WITH THE INTENT AND PURPOSE OF THE GEOTECHNICAL REPORT”. 20. CONSTRUCTION DEWATERING: This project may require a dewatering permit during construction due to the groundwater level relative to the depth of excavation. 21. SWPPP: This proposed development will disturb more than one acre of land. Accordingly, the applicant shall apply for coverage under the State Water Resources Control Board’s (SWRCB) NPDES general permit for storm water discharge associated with construction activity. A Notice of Intent (NOI) shall be filed for this project with the SWRCB in order to obtain coverage under the permit. The General Permit requires the applicant to prepare and implement a Storm Water Pollution Prevention Plan (SWPPP). The applicant is required to submit two copies of the NOI and the draft SWPPP to the Public Works Department for review and approval prior to issuance of the building permit. The SWPPP should include both permanent, post-development project design features and temporary measures employed during construction. 22. ENCROACHMENT PERMIT: Prior to any work in the public right-of-way, the applicant shall obtain an encroachment permit from the Public Works Department for any work that encroaches onto the City right-of-way. 23. LOGISTICS PLAN: A construction logistics plan shall be provided addressing all impacts to the public including, at a minimum: work hours, noticing of affected businesses, bus stop relocations, construction signage, dust control, noise control, storm water pollution prevention, job trailer, contractors’ parking, truck routes, staging, concrete pours, crane lifts, scaffolding, materials storage, pedestrian safety, and traffic control. All truck routes shall conform to the City of Palo Alto’s Trucks and Truck Route Ordinance, Chapter 10.48, and the route map. NOTE: Some items/tasks on the logistics plan may require an encroachment permit. 24. STORMWATER POLLUTION PREVENTION: All improvement plan sets shall include the “Pollution Prevention – It’s Part of the Plan” sheet. Item 13 Attachment B - Draft Record of Land Use Action Item 13: Staff Report Pg. 14 Packet Pg. 510 of 627 8 0160169_KB2_20250225_AY16 25. C.3 THIRD-PARTY CERTIFICATION: Applicant shall provide certification from a qualified third-party reviewer that the proposed permanent storm water pollution prevention measures comply with the requirements of Provision C.3 and Palo Alto Municipal Code Chapter 16.11. 26. Submit the following: a. Provide a stamped and signed C.3 data form (April 2024 version) from SCVURPPP. https://scvurppp.org/2024/09/19/provision-c-3-data-form-2024/ b. Final stamped and signed letter confirming which documents were reviewed and that the project complies with Provision C.3 and PAMC 16.11. 27. C.3 STORMWATER AGREEMENT: The applicant shall enter into a Stormwater Maintenance Agreement with the City to guarantee the ongoing maintenance of the permanent storm water pollution prevention measures. The City will inspect the treatment measures yearly and charge an inspection fee. The agreement shall be executed by the applicant team prior to building permit final. 28. C.3 FINAL THIRD PARTY CERTIFICATION PRIOR TO OCCUPANCY: Within 45 days of the installation of the required storm water treatment measures and prior to the issuance of an occupancy permit for the building, the third-party reviewer shall submit to the City a certification verifying that all the permanent storm water pollution prevention measures were installed in accordance with the approved plans. 29. OUTSIDE AGENCY APPROVAL: A portion of the proposed work is within Caltrans right-of- way. Evidence of encroachment permit approval shall be submitted prior to issuance of City permits. 30. PRIOR TO PUBLIC WORKS FINAL/ACCEPTANCE (STORM DRAIN LOGO): The applicant is required to paint “No Dumping/Flows to Matadero Creek” in blue on a white background adjacent to all onsite storm drain inlets. The name of the creek to which the proposed development drains can be obtained from Public Works Engineering. Stencils of the logo are available from the Public Works Environmental Compliance Division, which may be contacted at (650) 329-2598. Include the instruction to paint the logos on the construction grading and drainage plan. SECTION 7. Term of Approval. Vesting Tentative Map. All conditions of approval of the Vesting Tentative Map shall be fulfilled prior to approval of a Final Map (PAMC Section 21.16.010[c]). Unless a Final Map is filed, and all conditions of approval are fulfilled within a two-year period from the date of Vesting Tentative Map approval, the Vesting Tentative Map shall expire and all proceedings shall terminate. A request for an extension of time may be granted by the city council after recommendation of the planning commission, after the written extension request of the subdivider is submitted, prior to the expiration of the Vesting Tentative Map approval, or Item 13 Attachment B - Draft Record of Land Use Action Item 13: Staff Report Pg. 15 Packet Pg. 511 of 627 9 0160169_KB2_20250225_AY16 any previous extension granted. Such extension(s) shall be subject to the maximum limitations set forth in the Subdivision Map Act. Item 13 Attachment B - Draft Record of Land Use Action Item 13: Staff Report Pg. 16 Packet Pg. 512 of 627 If you need assistance reviewing the above documents, please contact the Project Planner or call the Planner-on-Duty at 650-617-3117 or email planner@cityofpaloalto.org Project Plans In order to reduce paper consumption, a limited number of hard copy project plans are provided to Councilmembers for their review. The same plans are available to the public, at all hours of the day, via the following online resources. Directions to review Project plans and environmental documents online: 1. Go to: bit.ly/PApendingprojects 2. Scroll down to find “3150 El Camino Real” and click the address link 3. On this project-specific webpage you will find a link to the project plans and other important information Direct Link to Project Webpage: https://www.cityofpaloalto.org/Departments/Planning-Development-Services/Current- Planning/Projects/3150-El-Camino-Real Item 13 Attachment C - Link to Project Plans and CEQA Analysis Item 13: Staff Report Pg. 17 Packet Pg. 513 of 627 City Council Staff Report From: City Clerk Report Type: CONSENT CALENDAR Lead Department: City Clerk Meeting Date: August 11, 2025 Report #:2505-4752 TITLE FIRST READING: Adoption of an Ordinance to align chair and vice chair selection language for the Parks and Recreation Commission (Palo Alto Municipal Code Ch. 2.25) and the Architectural Review Board (Palo Alto Municipal Code Ch. 2.21) with the City’s other Boards, Commissions, and Committees (BCCs); and Adoption of a Resolution doing the same for the Storm Water Management Oversight Committee – CEQA Status: Not a Project RECOMMENDATION Staff recommends that the City Council adopt an ordinance standardizing the chair and vice chair selection language for the Parks and Recreation Commission (PRC) and Architectural Review Board (ARB) and adopt a resolution doing the same for the Storm Water Management Oversight Committee (SWMOC). The updated language will be: “The Commission shall elect a chairperson and a vice chairperson from its membership who shall serve in such capacity for one year each, or until a successor is elected, unless his or her term as a member of the Commission sooner expires.” BACKGROUND Per the BCC Handbook, each body will annually select a chair and vice chair to preside over meetings1. The chair is responsible for applying parliamentary procedures to facilitate structured and productive meetings. The chair ensures that the BCC completes its annual work plan, promotes civility and decorum, and ensures that all members are heard in a fair and safe manner. Most BCCs have language in the PAMC specifying that a chair and vice chair are selected each year and will serve for one year or until a successor is elected. PRC, ARB, and SWMOC currently diverge from the other BCCs with regard to their selection of a chair and vice chair. PRC is the only commission that must select a chair at a specific meeting. It must select a chair “each year at the first regular meeting of the Parks and Recreation 1 City Boards, Commissions, and Committees Handbook: https://www.cityofpaloalto.org/files/assets/public/v/4/city-clerk/board-and-commission-handbook.pdf Item 14 Item 14 Staff Report Item 14: Staff Report Pg. 1 Packet Pg. 514 of 627 Commission…3” ARB and SWMOC have a standing practice of selecting a chair and vice chair each year, but their respective PAMC chapter and resolution do not have language on the topic. ANALYSIS Staff recommends aligning the chair and vice chair selection language for PRC, ARB, and SWMOC with the following language: “The Commission shall elect a chairperson and a vice chairperson from its membership who shall serve in such capacity for one year each, or until a successor is elected, unless his or her term as a member of the Commission sooner expires.” This recommended action will bring consistency to BCC’s chair selection language and timing and provide the Commission with additional flexibility. Staff recommends standardizing the chair selection process across all BCCs so expectations and practices are uniform. On January 13, 2025, City Council adopted an ordinance4 that moved the appointment of Public Art Commission, Human Relations Commission, and Parks and Recreation Commission members to November 1 of each year. This change requires PRC commissioners to vote on a chair in January after just one or two meetings with the new membership. Removing the timing requirement would give new and incumbent commissioners an opportunity to get acquainted before selecting a chair. PRC staff currently agendizes the chair selection at the January meeting, regardless of other potentially time-sensitive agenda items or the bandwidth of the commission. FISCAL/RESOURCE IMPACT There are no fiscal impacts associated with this action. STAKEHOLDER ENGAGEMENT Staff in the City Clerk’s Office collaborated on the proposed ordinance with staff in the Community Services Department, Planning and Development Services Department, and PRC members. ENVIRONMENTAL REVIEW This action is not a project under section 15378(b)(5) of the California Environmental Quality Act Guidelines (administrative activities that will not result in direct or indirect physical change in the environment). 3 Palo Alto Municipal Code Section 2.25.040 https://codelibrary.amlegal.com/codes/paloalto/latest/paloalto_ca/0- 0-0-61408 4 City Council, January 13, 2025; Agenda Item #8; Staff Report #2409-3480 https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=83198 Item 14 Item 14 Staff Report Item 14: Staff Report Pg. 2 Packet Pg. 515 of 627 ATTACHMENTS APPROVED BY: Item 14 Item 14 Staff Report Item 14: Staff Report Pg. 3 Packet Pg. 516 of 627 *NOT YET APPROVED* 137_20250721_ts24 1 Ordinance No. _____ Ordinance of the Council of the City of Palo Alto Amending Chapter 2.21 (Architectural Review Board) and Chapter 2.25 (Parks and Recreation Commission) of the Palo Alto Municipal Code to Amend Procedures for Electing a Chair and Vice Chair The Council of the City of Palo Alto ORDAINS as follows: SECTION 1. Findings and Declarations. The City Council finds and declares as follows: A. The City has an Architectural Review Board (ARB) and a Parks and Recreation Commission (PRC) as established by ordinance. B. The City Council now desires to amend the Palo Alto Municipal Code through this ordinance to codify existing practice that the ARB elect a chair and vice chair from its membership. C. The City Council also desires to amend the procedure for electing a chairperson of the PRC to eliminate the requirement that the commission elect a chairperson at the first regular meeting of the PRC. This is consistent with other boards and commissions of the City. SECTION 2. New section 2.21.020 (Officers) is hereby added to Chapter 2.21 (Architectural Review Board) of Title 2 (Administrative Code) to read as follows: 2.21.020 Officers. The Board shall elect a chairperson and a vice chairperson from its membership who shall serve in such capacity for one year each, or until a successor is elected, unless his or her term as a member of the Board sooner expires. SECTION 3. Section 2.25.040 (Officers) of Chapter 2.25 (Parks and Recreation Commission) of Title 2 (Administrative Code) is hereby amended to read as follows (deleted text in strikethrough, new text in underline): 2.25.040 Officers. Each year, at the first regular meeting of the parks and recreation commission, the commission shall nominate and elect one of its members as the chairperson. The chairperson shall hold office for one year and until his or her successor is elected, unless his or her term as a member of the commission expires earlier. The Commission shall elect a chairperson and a vice chairperson from its membership who shall serve in such capacity for one year each, or until a successor is elected, unless his or her term as a member of the Commission sooner expires. Item 14 Attachment A - Ordinance of the Council of the City of Palo Alto Amending Chapter 2.21 (Architectural Review Board) and Chapter 2.25 (Parks and Recreation Commission) of the Palo Alto Municipal Code to Amend Procedures for Electing a Chair and Vice Chair Item 14: Staff Report Pg. 4 Packet Pg. 517 of 627 *NOT YET APPROVED* 137_20250721_ts24 2 SECTION 4. Severability. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the Ordinance would be subsequently declared invalid or unconstitutional. SECTION 5. Environmental Review This ordinance is categorically exempt under CEQA regulation 15320 because it is a change in the organization of a local government agency that does not affect the geographical area in which previously existing powers are exercised. SECTION 6. Effective Date This Ordinance shall be effective 31 days after adoption. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: NOT PARTICIPATING: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ Assistant City Attorney City Manager ____________________________ Director, Planning and Development Services ____________________________ Director, Community Services Department Item 14 Attachment A - Ordinance of the Council of the City of Palo Alto Amending Chapter 2.21 (Architectural Review Board) and Chapter 2.25 (Parks and Recreation Commission) of the Palo Alto Municipal Code to Amend Procedures for Electing a Chair and Vice Chair Item 14: Staff Report Pg. 5 Packet Pg. 518 of 627 *NOT YET APPROVED* 1 138_20250721_ts24 Resolution No. ____ Resolution of the Council of the City of Palo Alto Amending and Restating Resolution 10200 for the Storm Water Management Oversight Committee to Elect a Chairperson and Vice Chairperson R E C I T A L S A. On November 14, 2005, the City Council adopted Resolution No. 8573, establishing the Storm Drain Oversight Committee to review the proposed operating and capital budget of the Storm Drainage Fund and the year-end financial report documenting the expenditures of the Storm Drainage Fund in the previous fiscal year. B. On August 29, 2016, the City Council adopted Resolution No. 9624, calling a Mail Ballot Election in connection with the City’s proposed Storm Water Management Fee. C. On October 24, 2016, the City Council adopted Resolution No. 9635, proposing a Storm Water Management Fee to replace the Storm Drainage Fee, calling a Public Hearing for October 24, 2016 with respect to such Fee and adopting Procedures relating to the conduct of a Protest Hearing and Mail Ballot Election. D. On May 1, 2017, the City Council adopted Resolution 9677, which replaced the Storm Drain Oversight Committee with the Storm Water Management Oversight Committee. E. On June 21, 2021, the City Council adopted Resolution 9969, which imposed term limits on members of the Storm Water Management Oversight Committee by amending and restating Resolution 9677. The City Council also moved the recruitment period to March from the past practice of May appointments. F. On December 2, 2024, the City Council adopted Resolution 10200 to move the recruitment period to November to coincide with other boards and commissions with the same recruitment period. Existing terms will be extended to October 31. Going forward, terms begin on November 1. G. The City Council now intends to require the election of a chairperson and vice chairperson by adding new Section 2.5 to the existing provisions. This is consistent with existing practice and other boards and commissions of the City. NOW, THEREFORE, the Council of the City of Palo Alto RESOLVES as follows: SECTION 1. The Storm Drain Oversight Committee is decommissioned effective May 31, 2017. Item 14 Attachment B - Resolution of the Council of the City of Palo Alto Amending and Restating Resolution 10200 for the Storm Water Management Oversight Committee Item 14: Staff Report Pg. 6 Packet Pg. 519 of 627 *NOT YET APPROVED* 2 138_20250721_ts24 SECTION 2. Committee Established. The City of Palo Alto Storm Water Management Oversight Committee is hereby created to review proposed storm water management capital improvements and operating programs to be funded from the Storm Water Management Fees and to monitor expenditures of the fund. SECTION 2.5. Chairperson and Vice Chairperson. The Committee shall elect a chairperson and a vice chairperson from its membership who shall serve in such capacity for one year each, or until a successor is elected, unless his or her term as a member of the Committee sooner expires. SECTION 3. Committee Membership and Appointment. The Committee shall consist of seven members who are selected and appointed by the City Council for a term of four years. Committee members shall serve without compensation. Each Committee member shall be a resident of Palo Alto, an employee of a business located in Palo Alto or an owner of real property within the City. No member shall be a council member, officer or employee of the City. Effective January 1, 2022, terms of office due to expire on May 31 of each year shall be extended to expire on March 14 of the following year, and thereafter terms of office shall commence on March 15. Effective January 1, 2025, terms of office due to expire on March 14 of each year shall be extended to expire on October 31 of the same year, and thereafter terms of office shall commence on November 1. SECTION 4. Term limits. Effective January 1, 2022, no person may serve more than two consecutive terms of office as a member of the Committee. (a) For the purposes of this section, a member will be considered to have served a term of office if he or she serves more than two years within one term. (b) A member’s service that began on or before January 1, 2022 shall count under the provisions of this section only for those members who served for at least one day on the Committee between January 1, 2021 and January 1, 2022. Notwithstanding the previous sentence, members on Committee as of January 1, 2022 shall be permitted to complete their term. (c) A member who has served two consecutive terms of office may remain as a member of the Committee for up to six months past the end of the term if no replacement is appointed or until a replacement is appointed, whichever comes first. (d) A member who has served two consecutive terms of office shall not be appointed to the Committee within one year of the last date of service. SECTION 5. Committee Duties. The Committee shall discharge its oversight duties by: (a) Meeting at least once a year to review the proposed operating and capital budgets of the Storm Water Management Fund for the next fiscal year. The Committee shall prepare a report documenting its findings with respect to the proposed budget and submit the report to the Finance Committee of the City Council prior to June 30th each year. Item 14 Attachment B - Resolution of the Council of the City of Palo Alto Amending and Restating Resolution 10200 for the Storm Water Management Oversight Committee Item 14: Staff Report Pg. 7 Packet Pg. 520 of 627 *NOT YET APPROVED* 3 138_20250721_ts24 (b) Meeting at least once a year to review the year-end financial report documenting the expenditures of the Storm Water Management Fund in the previous fiscal year. The Committee shall prepare a report documenting its findings with respect to the expenditures and submit the report to the City Council prior to May 31st each year. SECTION 6. Meeting Procedures. The Committee shall conduct open public meetings, duly noticed in accordance with the Ralph M. Brown Act. The Committee may establish rules and procedures governing the conduct of its meetings. SECTION 7. The City Clerk is directed to place advertisements announcing Committee vacancies in a newspaper of general circulation in the City, two times within a two week period. SECTION 8. This resolution supersedes Resolution 10200. SECTION 9. This resolution shall be effective upon adoption. SECTION 10. This amendment to Resolution 10200 is categorically exempt under CEQA regulation 15320 because it is a change in the organization of a local government agency that does not affect the geographical area in which previously existing powers are exercised. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ___________________________________ ____________________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ___________________________________ ____________________________________ Assistant City Attorney City Manager ____________________________________ Director of Public Works Item 14 Attachment B - Resolution of the Council of the City of Palo Alto Amending and Restating Resolution 10200 for the Storm Water Management Oversight Committee Item 14: Staff Report Pg. 8 Packet Pg. 521 of 627 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Planning and Development Services Meeting Date: August 11, 2025 Report #:2506-4820 TITLE FIRST READING: Adoption of an Ordinance Adding PAMC Chapter 16.15 to Restate Procedures for Expedited Permitting of Electric Vehicle Charging Systems to Comply with State Law. CEQA Status: Exempt under CEQA Guidelines Section 15061(b)(3). RECOMMENDATION Staff recommends that the City Council adopt the attached ordinance restating procedures for expedited permitting of electric vehicle charging systems to comply with Government Code Section 65850.7 and to restore provisions previously adopted under Ordinance No. 5415, including new findings related to the public health and safety impact of tree protection standards. BACKGROUND Government Code Section 65850.7, enacted by Assembly Bill 1236 (2015), requires local agencies to adopt an ordinance that provides an expedited, streamlined permitting process for electric vehicle charging systems (EVCS). In 2021, Assembly Bill 970 added mandatory timelines for processing these applications. Together, these laws establish the parameters for local review, limit discretionary actions, and require that cities publish objective checklists for applicants. The City of Palo Alto complied with these mandates in 2017 by adopting Ordinance No. 5415, which added Section 16.14.440 to the Palo Alto Municipal Code. However, the provisions adopted by that ordinance were inadvertently removed during a subsequent amendment to Chapter 16.14. The proposed ordinance corrects that administrative error by reinstating the required permitting procedures in a new standalone chapter—Chapter 16.15. Although the ordinance text was removed from the Code, the City has continued to review and process EVCS applications consistent with the requirements of state law. Item 15 Item 15 Staff Report Item 15: Staff Report Pg. 1 Packet Pg. 522 of 627 The ordinance also includes updated findings to support the application of the City’s tree protection standards during EVCS permit review. These findings are intended to establish that such standards qualify as objective public health and safety measures under Government Code Section 65850.7. ANALYSIS Inclusion of Findings Related to Tree Protection Standards The ordinance includes findings to establish that the City’s tree protection standards may be applied during EVCS permit review without exceeding the limits of state law. These findings are based on documented public health and safety effects associated with the loss of urban canopy and the failure of damaged trees. Mitigation of tree removal through canopy replacement or payment of an in-lieu fee; and Compliance with the City’s adopted standards for construction within a Tree Protection Zone (TPZ), which include trenching by hand or air-spade and protective fencing requirements to prevent root damage and tree destabilization. Item 15 Item 15 Staff Report Item 15: Staff Report Pg. 2 Packet Pg. 523 of 627 Works Specifications and applied consistently to all construction activity involving a Tree Protection Zone (TPZ), including limits on root disturbance and mandatory fencing setbacks. FISCAL/RESOURCE IMPACT STAKEHOLDER ENGAGEMENT ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: Item 15 Item 15 Staff Report Item 15: Staff Report Pg. 3 Packet Pg. 524 of 627 *Not Yet Approved* 1 0290175_20250611_ms29 Ordinance No. ____ Ordinance of the Council of the City of Palo Alto Restating Procedures for Expedited Permitting Processing for Electric Vehicle Charging Systems The City Council of the City of Palo Alto ORDAINS as follows: SECTION 1. Findings and Declarations. A. The State of California and the City of Palo Alto have consistently promoted and encouraged the use of fuel-efficient electric vehicles. B. The State of California recently adopted Assembly Bill 1236, which requires local agencies to adopt an ordinance that creates an expedited and streamlined permitting process for electric vehicle charging systems. C. Creation of an expedited, streamlined permitting process for electric vehicle charging stations would facilitate convenient charging of electric vehicles and help reduce the City’s reliance on environmentally damaging fossil fuels. D. On June 27, 2017, the City Council adopted Ordinance 5415, creating an expedited permitting process for Electric Vehicle Charging Stations as Section 16.14.440 of the Palo Alto Municipal Code. E. The provisions adopted by Ordinance 5415 were inadvertently omitted from subsequent ordinances amending Chapter 16.14 of the Palo Alto Municipal Code. The City Council now wishes to correct this omission by re-codifying the provisions adopted by Ordinance 5415 in their own chapter of the Palo Alto Municipal Code. F. Urban tree canopy has a quantifiable impact on public health and safety. Near- surface temperatures in cities generally significantly exceed those in surrounding rural areas (the “urban heat island” effect). See A.J. Arnfield. Two decades of urban climate research: A review of turbulence, exchanges of energy and water, and the urban heat island. International Journal of Climatology, 23 (2003), pp. 1-26. G. Heat exposure has been associated with adverse health outcomes, including higher rates of all-cause and cardiovascular mortality and emergency hospitalizations, across a range of study designs, and covering geographical regions worldwide. Bobb JF, Peng RD, Bell ML, Dominici F. 2014. Heat-related mortality and adaptation to heat in the United States. Environ Health Perspect 122:811–816; https://doi.org/10.1289/ehp.1307392. In the United States, extreme heat is by far the most common cause of weather-related fatalities, accounting for 207 fatalities in 2023 alone. National Weather Service Weather Related Fatality and Injury Statistics, Available at: https://www.weather.gov/hazstat/. Item 15 Attachment A - Ordinance Expedited Permitting Process for Electric Vehicle Charging Stations Item 15: Staff Report Pg. 4 Packet Pg. 525 of 627 *Not Yet Approved* 2 0290175_20250611_ms29 H. Climate change is anticipated to greatly exacerbate the public health impacts of urban heat. One 2014 analysis found that an increase in average temperatures by 5°F (central climate projection) would lead to an additional 1,907 deaths per summer across 105 U.S. cities studied, which would exceed the total number of severe weather fatalities that occurred across the United States in 2012 by more than a factor of three. Bobb et al., 2014. I. A significant and growing body of research has shown that a change in the level of urban tree canopy can have a quantifiable impact on the urban temperatures. A study of 27 U.S. cities analyzed the effects of a decrease in urban canopy over a ten-year period, and concluded that full reforestation would cause average daily maximum summer air temperatures to decline by an estimated average 1.7 °C (1.4–2.0 °C) across cities. Kroeger, T., McDonald, R. I., Boucher, T., Zhang, P. & Wang, L. Where the people are: Current trends and future potential targeted investments in urban trees for PM10 and temperature mitigation in 27 U.S. cities. Landsc. Urban Plan. 177, 227–240 (2018). J. Because the cooling effects of trees can be highly localized, a change in canopy cover can affect the temperature of the immediate surroundings at levels that far exceed city- level average change. A meta-analysis of studies on the cooling effects of street trees found that cooling intensity varies from 0.4° C (0.7° F) to 3.0° C (5.4° F) depending on the site and the time of day. McDonald, R.I., et al., Planting Healthy Air: A global analysis of the role of urban trees in addressing particulate matter pollution and extreme heat. 2016, The Nature Conservancy: Arlington, VA., www.nature.org/healthyair. K. This cooling effect quantifiably reduces heat-related morbidity and mortality. One study of 97 U.S. cities estimated that urban tree cover saves 245-346 lives annually and helps avoid more than 50,000 doctor’s visits due to heat annually. McDonald, R. I., Kroeger, T., Zhang, P. & Hamel, P. The value of US urban tree cover for reducing heat-related health impacts and electricity consumption. Ecosystems 23, 137–150 (2019). L. Analysis of extreme heat events in Toronto, Canada found that the number of heat-related ambulance calls was negatively correlated to canopy cover (Spearman Rank rho = −0.094, p = 0.029) and positively correlated to hard surface cover (Spearman Rank rho = 0.150, p < 0.001). Graham D.A., Vanos J.K., Kenny N.A., Brown R.D. The relationship between neighbourhood tree canopy cover and heat-related ambulance calls during extreme heat events in Toronto, Canada. Urban For. Urban Green. 2016;20:180–186. doi: 10.1016/j.ufug.2016.08.005. M. One study quantified the average difference in urban tree coverage between majority white and majority person-of-color (POC) neighborhoods, and concluded that greater urban tree canopy in majority white neighborhoods helps avoid 632 ± 100 deaths, while the less robust tree canopy in majority POC neighborhoods helped avoid only 442 ± 97 deaths annually. McDonald, R.I., Biswas, T., Chakraborty, T.C. et al. Current inequality and future potential of US Item 15 Attachment A - Ordinance Expedited Permitting Process for Electric Vehicle Charging Stations Item 15: Staff Report Pg. 5 Packet Pg. 526 of 627 *Not Yet Approved* 3 0290175_20250611_ms29 urban tree cover for reducing heat-related health impacts. npj Urban Sustain 4, 18 (2024). https://doi.org/10.1038/s42949-024-00150-3. N. In another key study, researchers concluded that increased vegetative cover could help offset projected increases in heat-related mortality for heat wave conditions in 2050 by 40 to 99% across three U.S. metropolitan regions. Stone B., Vargo J., Liu P., Habeeb D., DeLucia A., Trail M., Hu Y., Russell A. Avoided heat-related mortality through climate adaptation strategies in three US cities. PLoS ONE. 2014;9:e100852. doi: 10.1371/journal.pone.0100852. O. As extreme heat becomes increasingly common due to climate change, a project that reduces the City’s urban canopy by requiring the removal of a tree would have a specific adverse impact upon the public health or safety by reducing resistance to heat-related morbidity and mortality. P. Palo Alto requires the negative impact of tree removal to be mitigated through canopy replacement or payment of an in-lieu fee. The City’s mitigation standards reflect best practices in the Urban Forestry field. When installing an electric vehicle charging station would require removal of a tree, compliance with these mitigation measures is necessary to avoid a net reduction in urban tree canopy and the associated specific, adverse impact on the public health or safety. Q. Like a reduction in tree canopy, tree failure can cause significant adverse impacts on public safety. An analysis of wind-related tree failures in the United States found those failures caused 407 deaths from 1995 to 2007 at an average of 31 deaths per year (1 in 9.7 million). Schmidlin, T.W. 2009. Human fatalities from wind-related tree failures in the United States, 1995–2007. Natural Hazards 50:13–25. R. Construction activity in a tree’s root zone has a quantifiable impact on the risk of tree failure. Trees adjacent to construction have been found to be nearly twice as likely to die as those not exposed to development and redevelopment activities. Koeser, A., R. Hauer, K. Norris, and R. Krouse. 2013. Factors influencing long-term street tree survival in Milwaukee, WI, USA. Urban Forestry & Urban Greening 12:562–568. S. Site inspections of fallen urban trees frequently reveal root damage and evidence of trenching or other construction near the trunk of the tree. In one analysis of fallen urban trees, 58% showed evidence of site or trenching works within four meters of trunk. Moore, G.M. 2014. Wind-Thrown Trees: Storms or Management? Arboriculture & Urban Forestry. 40:53-69. T. Research indicates that enforcement of construction and excavation standards within a tree protection zone (TPZ) is an important way to minimize the public safety risk of tree falls. Steenberg, J.W.N., P.J. Robinson, and P.N. Duinker. 2018. A spatio temporal analysis of the relationship between housing renovation, socioeconomic status, and urban forest ecosystems. Environment and Planning B: Urban Analytics and City Science. Item 15 Attachment A - Ordinance Expedited Permitting Process for Electric Vehicle Charging Stations Item 15: Staff Report Pg. 6 Packet Pg. 527 of 627 *Not Yet Approved* 4 0290175_20250611_ms29 U. Palo Alto has adopted TPZ excavation standards that reflect industry-wide best practices to minimize damage to a tree’s root system. When installing an electric vehicle charging station would require trenching or construction activity in a tree protection zone, compliance with these standards is necessary to avoid a specific, adverse impact on the public health or safety. SECTION 2. Chapter 16.15 (Expedited Permitting Process for Electric Vehicle Charging Stations) of the Palo Alto Municipal Code is hereby added to read: 16.15.010. Expedited Permitting Process for Electric Vehicle Charging Stations (a) Definitions (1) “Electric vehicle charging station” or “charging station” means any level of electric vehicle supply equipment station that is designed and built in compliance with Article 625 of the California Electrical Code, as it reads on the effective date of this Chapter, and delivers electricity from a source outside an electric vehicle into a plug-in electric vehicle. (2) “Specific, adverse impact” means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified, and written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete. (3) “Electronic submittal” means the utilization of one or more of the following: i. Electronic mail or email. ii. The internet. iii. Facsimile. (b) Expedited Permitting Process. Consistent with Government Code Section 65850.7, the Chief Building Official shall implement an expedited, streamlined permitting process for electric vehicle charging stations, and adopt a checklist of all requirements with which electric vehicle charging stations shall comply with in order to be eligible for expedited review. The expedited, streamlined permitting process and checklist may refer to the recommendations contained in the most current version of the “Electric Vehicle Charging Station Permitting Guidebook” published by the Governor’s Office of Business and Economic Development. The City’s adopted checklist shall be published on the City’s website. (c) Permit Application Processing (1) Prior to submitting an application for processing, the applicant shall verify that the installation of an electric vehicle charging station will not have specific, adverse impact to public health and safety and building occupants. Item 15 Attachment A - Ordinance Expedited Permitting Process for Electric Vehicle Charging Stations Item 15: Staff Report Pg. 7 Packet Pg. 528 of 627 *Not Yet Approved* 5 0290175_20250611_ms29 Verification by the applicant includes but is not limited to: electrical system capacity and loads; electrical system wiring, bonding and overcurrent protection; building infrastructure affected by charging station equipment and associated conduits; areas of charging station equipment and vehicle parking. (2) A permit application that satisfies the information requirements in the City’s adopted checklist shall be deemed complete and be promptly processed. Upon confirmation by the Chief Building Official or designee that the permit application and supporting documents meets the requirements of the City adopted checklist, and is consistent with all applicable laws and health and safety standards, the Chief Building Official or designee shall, consistent with Government Code Section 65850.7, approve the application and issue all necessary permits. Such approval does not authorize an applicant to energize or utilize the electric vehicle charging station until approval is granted by the City. If the Chief Building Official or designee determines that the permit application is incomplete, he or she shall issue a written correction notice to the applicant, detailing all deficiencies in the application and any additional information required to be eligible for expedited permit issuance. (3) The Chief Building Official or designee shall not condition the approval for any electric vehicle charging station permit on the approval of such a system by an association, as that term is defined by Civil Code Section 4080. (4) Permit applications under this section may be submitted electronically, including electronic signatures on all forms, applications, and other documentation. (d) Technical Review. It is the intent of this section to encourage the installation of electric vehicle charging stations by removing obstacles to permitting for charging stations so long as the action does not supersede the Chief Building Official’s authority to address higher priority life-safety situations. If the Chief Building Official or designee makes a finding based on substantial evidence that the electric vehicle charging station could have a specific adverse impact upon the public health or safety, as defined in this section, the City may require the applicant to apply for a use permit. SECTION 3. Severability. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or Item 15 Attachment A - Ordinance Expedited Permitting Process for Electric Vehicle Charging Stations Item 15: Staff Report Pg. 8 Packet Pg. 529 of 627 *Not Yet Approved* 6 0290175_20250611_ms29 unconstitutional without regard to whether any portion of the Ordinance would be subsequently declared invalid or unconstitutional. SECTION 4. CEQA. The City Council finds that this Ordinance falls under the California Environmental Quality Act (CEQA) exemption found in Title 14 California Code of Regulations Section 15061(b)(3) because it can be seen with certainty that there is no possibility it will have a significant negative effect on the environment. SECTION 5. Effective Date. This ordinance shall be effective on the thirty-first date after the date of its adoption. INTRODUCED: PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST: APPROVED: ______________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ City Attorney or Designee City Manager ____________________________ Director of Planning and Development Services Item 15 Attachment A - Ordinance Expedited Permitting Process for Electric Vehicle Charging Stations Item 15: Staff Report Pg. 9 Packet Pg. 530 of 627 City Council Staff Report From: City Manager Report Type: ACTION ITEMS Lead Department: Fire Meeting Date: August 11, 2025 Report #:2503-4437 TITLE PUBLIC HEARING: Consideration of Objections for Weed Abatement Assessments; and Adoption of Resolution Confirming the Weed Abatement Report and Ordering Abatement Costs to be a Special Assessment on the Properties Specified in the Report; CEQA status - categorically exempt. RECOMMENDATION Staff recommends Council: 1) Hold a public hearing to hear and consider objections from affected property owners of proposed assessments related to completed weed abatement work, and 2) Adopt a resolution confirming the report and ordering abatement costs to be a special assessment on the properties specified in the report (Attachment A) EXECUTIVE SUMMARY The Santa Clara County Department of Agriculture and Environmental Management and the City of Palo Alto work together to protect our community from fire. One of the purposes of the Weed Abatement Program is to prevent fire hazards posed by vegetative overgrowth and the accumulation of combustible materials. Adoption of the resolution will result in the total of $12,735.97 imposed as liens on the properties listed in the attachment for the cost of weed abatement work performed. BACKGROUND The Weed Abatement Division of Santa Clara County Agriculture and Environmental Management administers the contract for weed abatement within the City of Palo Alto, in accordance with an agreement established on April 18, 1977, between the City and County. On December 2, 2024, in accordance with Palo Alto Municipal Code Chapter 8.08, the City Council declared weeds to be a nuisance and ordered that the nuisance be abated. A public hearing was held on February 10, 2025, to consider objections to the proposed destruction or removal of the weeds. Item 16 Item 16 Staff Report Item 16: Staff Report Pg. 1 Packet Pg. 531 of 627 Property owners were notified in the first week of January 2025 that weeds were to be abated by April 30, 2025, either by the owners or by the County. If the property owners chose to have the County abate the weeds, the abatement charges would be levied against the respective properties as an assessment by the County Assessor. Once the above steps had been taken, the County Weed Abatement Division instructed its contractor to abate weeds on City and private properties within Palo Alto. The County then informs the property owners of the costs for destroying and removing the weeds. The City Clerk has published the required notice of this hearing in the Palo Alto Daily Post. The cost report by the County Weed Abatement Division has been posted on the City Hall Plaza bulletin board for at least ten (10) days prior to this hearing. ANALYSIS FISCAL/RESOURCE IMPACT STAKEHOLDER ENGAGEMENT ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: Geoffrey Blackshire, Fire Chief Item 16 Item 16 Staff Report Item 16: Staff Report Pg. 2 Packet Pg. 532 of 627 NOT YET APPROVED Attachment A Resolution No. Resolution Confirming Weed Abatement Report and Ordering Cost of Abatement to be a Special Assessment on the Respective Properties Described Therein R E C I T A L S A. The Council of the City of Palo Alto has heretofore declared weeds growing on certain properties within the City to be a public nuisance by Resolution No. 10201, dated December 2, 2024, and B. The Council on February 10th, 2025, held a public hearing for objections to the proposed destruction and removal of weeds at the properties indicated in the County’s list for weed abatement. C. The Fire Chief, through his Administrator, the Weed Abatement Division of Santa Clara County Department of Agriculture and Environmental Management, has caused the weeds to be abated on the properties described in the County’s list for weed abatement; and D. The Fire Chief, through his Administrator, the Weed Abatement Division of Santa Clara County Department of Agriculture and Environmental Management, has filed his report and assessment list for weed abatement as provided by law and a hearing has been duly set and noticed, for objections to said report and assessment list and for confirmation; and E. The Council has duly considered the report and assessment list and any objections thereto. NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as follows: SECTION 1. The report and assessment list is in all respects complete and correct and is hereby confirmed. The amounts of the cost for abating the nuisance are confirmed and those remaining unpaid, as shown on Exhibit “A” attached hereto and incorporated herein, shall constitute special assessments against the respective parcels of land and are a lien on the property for the amount of the respective assessment. SECTION 2. All written or oral protests or objections to said report and assessment list are overruled or denied. 027072525 1 Item 16 Attachment A - Resolution Confirming 2025 Weed Abatement Program Assessment Report Item 16: Staff Report Pg. 3 Packet Pg. 533 of 627 NOT YET APPROVED Attachment A SECTION 3. The unpaid assessments shown on Exhibit “A” shall be entered upon the 2025- 2026 tax roll against the parcels of land and shall be collected at the same time and in the same manner as general City taxes, subject to the same interest and penalties, and subject to the same procedure and sale in case of delinquency. All laws and ordinances applicable to the levy, collection, and enforcement of City taxes are hereby made applicable to this special assessment. SECTION 4. Santa Clara County has determined the weed abatement program to be categorically exempt from CEQA pursuant to CEQA Guidelines Section 15308. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk Mayor APPROVED AS TO FORM: APPROVED: Assistant City Attorney City Manager Fire Chief Director of Administrative Services 027072525 2 Item 16 Attachment A - Resolution Confirming 2025 Weed Abatement Program Assessment Report Item 16: Staff Report Pg. 4 Packet Pg. 534 of 627 2025 WEED ABATEMENT PROGRAM CITY OF PALO ALTO Exhibit A 1 1605 Edgewood 003-12-002 Miao, Nina Yanti 931 Clara Dr PALO ALTO 94303-4002 $1,920.47 2 782 Greer 003-41-065 Deng, Jingjing And Jiang , Lijun 20653 Cheryl Dr CUPERTINO 95014 $105.00 3 1071 Embarcadero 003-42-055 Kothary, Nishita N And Shah , Niraj 1071 Embarcadero Rd PALO ALTO 94303-3149 $105.00 4 2385 St Francis 003-48-021 Zadik, Yair And Linda 2385 St Francis Dr PALO ALTO 94303-3136 $105.00 5 2075 Louis 003-50-021 Keller, Jeffrey R 2075 Louis Rd PALO ALTO 94303-3452 $201.00 6 742 Southampton 003-59-041 Agrawal, Parag And Agarwala , 1725 Newell Rd PALO ALTO 94303-2951 $105.00 7 260 Byron 120-02-030 Liveright, Michael 260 Byron St PALO ALTO 94301-1307 $201.00 8 655 Embarcadero 120-08-023 L S & Co Partnership 555 Byron St Unit 105 PALO ALTO 94301-1303 $201.00 9 733 Ramona 120-27-063 Koda, Ross K Trustee P O Box 156 SOUTH DOS PALOS 93665 $105.00 10 2220 Bryant 124-14-024 L S & Co. 555 Byron St Unit 105 PALO ALTO 94301 $201.00 11 1001 Colorado 127-04-091 Tsunoda Roland T 1001 Colorado Ave PALO ALTO 94303-3806 $201.00 12 4102 Sutherland 127-16-005 Yurchenco, James R 4102 Sutherland Dr PALO ALTO 94303-4730 $105.00 13 3189 Louis 127-24-031 Kato, Takashi And Ayano 3189 Louis Rd PALO ALTO 94303-3955 $105.00 14 Middlefield 127-33-064 E & R Inv Properties Llc Et Al Po Box 500 BURLINGAME 94011 $105.00 15 924 Colorado 127-40-006 Lin Stanley B And Jean Lai Trustee 1037 High St PALO ALTO 94301-2425 $105.00 16 464 Colorado 132-08-115 Tanphaichitr, Saksiri M And Bellers , 464 Colorado Ave PALO ALTO 94306-2414 $105.00 17 454 Colorado 132-08-118 Ramchandran, Asish And Kavitha 2657 Kipling St PALO ALTO 94306 $105.00 18 2689 Bryant 132-13-055 Chou, Lynn H L Po Box 60416 PALO ALTO 94306 $201.00 19 3166 Kipling 132-15-002 Pao, Joy J And Ke , Shian-ren 67 Orchard Hills St ATHERTON 94027 $105.00 Report Date: 7/9/2025 (List Sorted by APN) Page 1 Item 16 Attachment A - Resolution Confirming 2025 Weed Abatement Program Assessment Report Item 16: Staff Report Pg. 5 Packet Pg. 535 of 627 2025 WEED ABATEMENT PROGRAM CITY OF PALO ALTO Exhibit A 20 354 El Verano 132-16-088 Zhou, Zheng Trustee 354 El Verano Ave PALO ALTO 94306-2952 $105.00 21 3120 Cowper 132-20-155 Valentine, Mary E 3120 Cowper St PALO ALTO 94306-3001 $105.00 22 339 El Verano 132-21-022 Mizote, Harumi Trustee 339 El Verano Ave PALO ALTO 94306-2940 $1,536.50 23 309 El Verano 132-21-023 Zhang, Qianli And Qiu , Yunfeng 309 El Verano Ave PALO ALTO 94306-2940 $105.00 24 3271 Bryant 132-21-027 Conlin, Charlene M Trustee 25210 Jake St VENETA 97487 $105.00 25 3535 Bryant 132-22-034 Darden, Ruthie L Trustee 3535 Bryant St PALO ALTO 94306-4263 $105.00 26 3358 Bryant 132-22-070 Beeson, Donald H Trustee Po Box 60458 PALO ALTO 94306 $201.00 27 3541 Bryant 132-23-033 Kaposhilin, Nicholas Trustee 936 N California Ave PALO ALTO 94303-3405 $105.00 28 84 Roosevelt 132-23-055 Leung, John Ka Yu And Joanna Kong Po Box 5358 SAN MATEO 94402-0358 $105.00 29 34 Roosevelt 132-29-061 Lyons, Charles P Trustee & Et Al 34 Roosevelt Cir PALO ALTO 94306-4216 $105.00 30 18 Roosevelt 132-29-069 Bernstein, Amir D Trustee 18 Roosevelt Cir PALO ALTO 94306 $105.00 31 3830 Carlson 132-30-058 Cheng, Jing 4521 Campus Dr Unit 363 IRVINE 92612 $105.00 32 Birch 132-33-060 At&t Comms Of Calif Inc 1090 E Duane Ave SUNNYVALE 94085 $201.00 33 3561 Park 132-34-052 Mahal, Jaswinder 180 Park Sharon Dr SAN JOSE 95136-2535 $105.00 34 451 Wilton 132-35-025 Song, Zhiqiang And Chen , Weiwei 451 Wilton Ave PALO ALTO 94306-2859 $105.00 35 365 Wilton 132-35-033 Tong, Peter And Pao , Chung Chian 18444 Forest Crossing Ct OLNEY 20832 $105.00 36 421 Fernando 132-39-037 Williger, Edward M P O Box 20089 STANFORD 94309-0089 $201.00 37 3585 El Camino Real 132-40-058 2060 Birch Llc 42840 Christy St Unit 209 FREMONT 94538 $105.00 38 3545 El Camino Real 132-40-063 South East Travel Service (usa) Co 3545 El Camino Real PALO ALTO 94306 $105.00 Report Date: 7/9/2025 (List Sorted by APN) Page 2 Item 16 Attachment A - Resolution Confirming 2025 Weed Abatement Program Assessment Report Item 16: Staff Report Pg. 6 Packet Pg. 536 of 627 2025 WEED ABATEMENT PROGRAM CITY OF PALO ALTO Exhibit A 39 3130 Ramona 132-48-033 Ding, Zhimin And Zhu , Xinyi 3130 Ramona St PALO ALTO 94306-2922 $105.00 40 2740 Byron 132-55-020 Rv Constructions.com Llc 2791 Cowper St PALO ALTO 94306-2448 $105.00 41 613 Stanford 137-01-059 Baumann, John R Trustee 613 Stanford Ave PALO ALTO 94306-1412 $201.00 42 2150 Yale 137-01-134 Liang, Ke 33206 Falcon Dr FREMONT 94555 $105.00 43 2175 Oberlin 137-03-036 Yu, Shuping And Dai , Xiaojie 2175 Oberlin St PALO ALTO 94306-1340 $105.00 44 2153 Oberlin 137-03-037 Mendelowitz, Louis I 2153 Oberlin St PALO ALTO 94306-1318 $105.00 45 3700 El Camino Real 137-11-078 Kss Investment Llc 1380 Miravalle Ave LOS ALTOS 94024-5744 $105.00 46 788 Los Robles 137-13-112 Bloomquist, Lynda L Trustee 788 Los Robles Av PALO ALTO 94306-3159 $201.00 47 883 Ilima 137-14-054 Xie Xinmin And Li Xiaosu Trustee 2633 Martinez Drive BURLINGAME 94010 $105.00 48 4025 Orme 137-20-044 Zhu Jay Jiabi Trustee & Et Al 827 Richardson Ct PALO ALTO 94303-4152 $105.00 49 4146 El Camino Real 137-24-034 Juan, Chung-chiung And Su Chen 6 Atherton Oaks Ln ATHERTON 94027 $201.00 50 3460 Hillview 142-16-059 Stanford Real Estate 415 Broadway, 3rd Redwood City 94063 $105.00 51 1072 Arastradero 142-16-061 Stanford Real Estate 415 Broadway, 3rd Redwood City 94063 $105.00 52 3495 Deer Creek 142-16-062 Stanford Real Estate 415 Broadway, 3rd Redwood City 94063 $201.00 53 Deer Creek 142-16-064 Stanford Real Estate 415 Broadway, 3rd Redwood City 94063 $105.00 54 3500 Deer Creek 142-16-066 Stanford Real Estate 415 Broadway, 3rd Redwood City 94063 $201.00 55 4208 Ruthelma 148-02-002 Shiu, Boon W And Choi , Keehyun 4208 Ruthelma Ave PALO ALTO 94306-4109 $105.00 56 4236 Darlington 148-03-044 Wang, Youxiang And Li , Zhengqi 4236 Darlington Ct PALO ALTO 94306-4129 $105.00 57 4201 Park 148-03-060 Bordia, Anupam And Surbhi 4201 Park Blvd PALO ALTO 94306-4144 $105.00 Report Date: 7/9/2025 (List Sorted by APN) Page 3 Item 16 Attachment A - Resolution Confirming 2025 Weed Abatement Program Assessment Report Item 16: Staff Report Pg. 7 Packet Pg. 537 of 627 2025 WEED ABATEMENT PROGRAM CITY OF PALO ALTO Exhibit A 58 4338 Silva 148-12-013 Karupasamy, Karthikeyan Trustee & 444 Del Medio Ave MOUNTAIN VIEW 94040-1161 $105.00 59 4346 Silva 148-12-014 Jiang, Wei And Han , Qiuxia Trustee 4346 Silva Ave PALO ALTO 94306-4421 $105.00 60 4350 Silva 148-12-016 Hu, Zhe And Ma , Yinglan 591 Sierra Ave MOUNTAIN VIEW 94041-2144 $105.00 61 4179 Oak Hill 175-01-025 Bachrach, Sylvia Rashmi Trustee & 12 Star Way MOUNTAIN VIEW 94040 $201.00 62 4243 Manuela 175-02-053 Weakland, Alan Trustee & Et Al 515 S Flower St Floor 25 LOS ANGELES 90071 $105.00 63 4100 Old Adboe 175-20-074 Yamarashi Iruka Llc 333 W Santa Clara St Ste 700 SAN JOSE 95113 $105.00 64 4103 Old Trace 175-20-078 Smithwick, Alton D And Ursula L 803 Russell Ln MILPITAS 95035 $105.00 65 890 Mockingbird 175-20-082 Joshi, Vivek Trustee & Et Al 890 Mockingbird Ln PALO ALTO 94306-3719 $105.00 66 4186 Old Adobe 175-20-092 Waters, Christopher J Trustee & Et 609 Arboleda Dr LOS ALTOS 94024 $201.00 67 3000 Alexis 182-35-035 Palo Alto Hills Golf And Country 3000 Alexis Dr PALO ALTO 94304-1303 $105.00 68 3130 Alexis 182-43-024 Von Clemm, Peter F And Jennifer J 3130 Alexis Dr PALO ALTO 94304-1305 $105.00 69 966 Laurel Glen 182-43-038 Jacobsen, Ruth E Trustee 966 Laurel Glen Dr PALO ALTO 94304-1322 $201.00 70 951 Laurel Glen 182-49-004 Bogerty, Sharon D 951 Laurel Glen Dr PALO ALTO 94304-1323 $105.00 71 930 Laurel Glen 182-54-006 Yeh Knoll Holding Inc A Barbados Ice House St CENTRAL HONG KONG $201.00 72 931 Laurel Glen 182-54-012 Sheth, Beerud Trustee & Et Al 931 Laurel Glen Dr PALO ALTO 94304-1323 $201.00 73 Laurel Glen 182-54-013 Ngai, Kenneth S Trustee & Et Al 3121 Bandera Dr PALO ALTO 94304-1341 $105.00 TOTAL $12,735.97 Report Date: 7/9/2025 (List Sorted by APN) Page 4 Item 16 Attachment A - Resolution Confirming 2025 Weed Abatement Program Assessment Report Item 16: Staff Report Pg. 8 Packet Pg. 538 of 627 Attachment C City of Palo Alto Weed Abatement The City of Palo Alto contracts with the Santa Clara County Department of Agriculture and Environmental Management (SCCDAEM) to remove and destroy weeds in its efforts to mitigate potential fire hazards (as defined in Palo Alto Municipal Code Chapter 8.08). The entire weed abatement program is coordinated by the SCCDAEM. Abatement proceedings must follow a legally established course. This is and annual process with weed abatement occurring in late Spring. City of Palo Alto involvement is limited to the following 3 steps for City Council: 1) (Nov-Dec) City of Palo Alto declares Weeds a Nuisance to allow for County abatement and sets a later date (Jan-Feb) for a public hearing to review the Annual Commencement Report (list of “nuisance” parcels). 2) (Jan-Feb) Public Hearing to review the Annual Commencement Report and approve the County abatement proceedings. At this public hearing, property owners may appear and object to the proposed weed destruction or removal. After the hearing and consideration of any objections, the Council may sustain or overrule any or all objections. Upon adoption of the resolution confirming the weed abatement commencement report and ordering weed nuisances abated, the County will be asked to perform the abatement work to destroy and remove any weeds. 3) (July/August) Public Hearing to approve the invoices for the abatement work performed by the SCCDAEM. The Santa Clara County Weed Abatement Program The Santa Clara County Department of Agriculture and Environmental Management and the City of Palo Alto work together to protect our community from fire. The purpose of the Weed Abatement Program is to prevent fire hazards posed by vegetative overgrowth and the accumulation of combustible materials. Typically, a property is placed on the program list by a County Weed Abatement Inspector who identifies a potential fire hazard on the property. The Palo Alto Fire Department (PAFD) & Code Enforcement also report addresses of concern and forward (verified) complaints from residents to the SCCDAEM. Residents can report addresses of concern to POAFD, code enforcement, or directly to the County Weed Abatement Program. Santa Clara County program staff annually inspect “nuisance” parcels at the beginning of the fire season, which is typically April 30th for CPA parcels. The Weed Abatement program is entirely funded from fees charged to residents. All parcels on the list will be charged a basic inspection fee. If the parcel is not in compliance at the time of inspection, the property owner will be charged an additional failed inspection fee, and they will receive a final courtesy notice as a reminder to abate their weeds within 2 weeks. If the weeds are not abated by the property owner, the work will be completed by the County contractor. The property owner will pay the contractor’s fees plus a County administrative fee. All fees will be included in their property tax bill. Properties that meet and maintain the minimum fire safety standards will only be charged for the annual fee. These properties will be removed from the list after three years of compliance. Item 16 Attachment B - Weed Abatement Summary and Timeline Item 16: Staff Report Pg. 9 Packet Pg. 539 of 627 6 4 5 0 City Council Staff Report From: City Manager Report Type: ACTION ITEMS Lead Department: Utilities Meeting Date: August 11, 2025 Report #:2501-4081 TITLE Approval of Resolutions Amending the Amended and Restated Water Supply Agreement Between the City and County of San Francisco and Wholesale Customers in Alameda County, San Mateo County and Santa Clara County and the Updated Tier 2 Drought Response Implementation Plan; CEQA Status: Not a Project and Categorically Exempt under CEQA Guidelines Sec. 15307, 15308 RECOMMENDATION Staff recommends City Council approval of two resolutions (1) amending the Amended and Restated Water Supply Agreement between the City and County of San Francisco and Wholesale Customers in Alameda County, San Mateo County and Santa Clara County (Attachment A) and (2) approving the updated the Tier 2 Drought Response Implementation Plan (Attachment B) EXECUTIVE SUMMARY Approval of the two recommended resolutions will result in: 1. A revised Water Supply Agreement (WSA) that modifies the minimum purchase requirements and the drought allocation plan between the City of County of San Francisco and the wholesale customers (Tier 1) an includes various administrative adjustments. 2. A revised drought response implementation plan among the wholesale customers (Tier 2). This is a final step in a multi-year negotiation process including coordination and collaboration with the 26 wholesale customers including neighboring jurisdictions such as Mountain View, Sunnyvale, and Santa Clara and reflects a package deal of terms. Overall, the amendments are minor in cost and operational impact, with some potential benefits to Palo Alto in drought scenarios. Item 17 Item 17 Staff Report Item 17: Staff Report Pg. 1 Packet Pg. 540 of 627 6 4 5 0 Minimum Purchase Quantities1 (MPQs): Adjustments to MPQs for four wholesale customers will result in a modest increase in water rates—estimated at $0.007 to $0.04 per ccf (0.13%–0.72%)—shared across all wholesale and SFPUC retail customers. This change addresses excess costs currently borne by some agencies, notably Mountain View. Tier 1 Water Shortage Allocation Plan: The updated Tier 1 plan poses no risk to Palo Alto and may provide benefits. If Palo Alto exceeds its drought allocation but overall wholesale usage remains below limits, it will avoid excess use fees. General WSA Updates: Administrative in nature, these changes have no financial or resource impact. Revised Tier 2 Drought plan slightly increases water cutbacks for Palo Alto during droughts (e.g., from 16% to 18% for a 20% system-wide reduction), and aligns with the City’s existing Water Shortage Contingency Plan and will not alter customer restrictions. Resolution Amending the Amended WSA The proposed amendments to the WSA aim to adjust the minimum purchase requirements and improve the Tier 1 Water Shortage Allocation Plan for the Wholesale Customers of the RWS, in response to evolving water use patterns and regional needs. Resolution Approving Updated the Tier 2 Drought Response Implementation Plan The updated Tier 2 Plan refines how water from the RWS is allocated among Wholesale Customers during droughts, maintaining key features of the existing plan while introducing important updates to improve equity, resilience, and flexibility. The new Tier 2 formula uses a structured, sequential approach to distribute available water taking into account minimum and maximum cutback percentages, residential indoor use, non- residential indoor use, and seasonal demand. Any remaining water is allocated to move each wholesale customer toward a “Target Allocation” that reflects both historical use and their Individual Supply Guarantee (ISG), while staying within the cutback bounds. While the resulting changes are relatively minor for Palo Alto, they represent significant financial and operational benefits for other BAWSCA agencies, and as such are high priorities among these agencies. Notably, unanimous approval by all 26 BAWSCA agencies is required for the changes to become effective. The Utilities Advisory Commission discussed this topic at its June meeting and did not make a recommendation. BACKGROUND Water Supply Agreement History 1 Section 3.07.C of the Amended and Restated Water Supply Agreement (Attachment D) explains that it is a requirement for Alameda County Water District, and the cities of Milpitas, Mountain View and Sunnyvale to purchase a minimum annual quantity of water from San Francisco (Minimum Purchase Quantity or MPQ as set out in Attachment E of the Amended and Restated Water Supply Agreement). Item 17 Item 17 Staff Report Item 17: Staff Report Pg. 2 Packet Pg. 541 of 627 6 4 5 0 In June 2009, the City of Palo Alto entered into a Water Supply Agreement with the City and County of San Francisco (San Francisco) and Wholesale Customers in Alameda County, San Mateo County and Santa Clara County (2009 WSA). The 2009 WSA establishes the terms by which the twenty-six Wholesale Customers purchase water from the RWS, including how water is allocated between SFPUC’s retail customers and the Wholesale Customers (Tier 1 Plan). The 2009 WSA builds upon the 1984 "Settlement Agreement and Master Water Sales Contract between the City and County of San Francisco and Certain Suburban Purchasers in San Mateo County, Santa Clara County and Alameda County." 3 appointing BAWSCA as its authorized representative in discussions and negotiations with San Francisco to amend the Agreement to address issues arising from implementation of the Agreement. The resolution also states this appointment continues unless and until revoked by the City Council. In 2019, the City of Palo Alto approved the 2018 Amended and Restated WSA (2018 WSA), at which time the Wholesale Customers expressed a collective interest in working together to develop a process for the expedited and permanent transfer of minimum annual purchase quantities. The Wholesale Customers directed BAWSCA to facilitate negotiation of a new WSA amendment to provide a procedure for expedited and permanent transfers of minimum annual purchase quantities in a manner that safeguards the financial and water supply interests of Wholesale Customers not participating in such transfers. This amendment was memorialized in the 2021 Amended and Restated WSA (2021 WSA). Tier 2 Plan History and Negotiations and Development of Minimum Purchase Quantity Reset Proposal 3 Resolution 9791 https://www.paloalto.gov/files/assets/public/v/1/city-clerk/resolutions/reso- 9791.pdf?t=53184.44 Item 17 Item 17 Staff Report Item 17: Staff Report Pg. 3 Packet Pg. 542 of 627 6 4 5 0 The WSA authorizes the Wholesale Customers to adopt a methodology for allocating the water collectively available from the RWS among the twenty-six Wholesale Customers during system- wide shortages caused by drought (the Tier 2 Plan). San Francisco is not a party to the Tier 2 Plan. The existing Tier 2 Plan was adopted in 2011 and was originally set to expire in 2018. In 2018, the California State Legislature passed two bills to implement a long-term framework for water use efficiency, commonly referred to as, “Making Water Conservation a California Way of Life.” These bills were anticipated to impact urban water use, and the extent of those impacts to the Wholesale Customers was unknown at the time. As such, the WMR instructed BAWSCA to hold off on initiating an update to the existing Tier 2 Plan. In 2018, and every year since, the BAWSCA Board of Directors (BAWSCA Board) has extended the term of the exiting Tier 2 Plan by one year. In 2024, the BAWSCA Board extended the term of the existing Tier 2 Plan through the end of 2025 and specified that the existing Tier 2 Plan will be superseded by an updated Tier 2 Plan once unanimously adopted by the twenty-six Wholesale Customers. Item 17 Item 17 Staff Report Item 17: Staff Report Pg. 4 Packet Pg. 543 of 627 6 4 5 0 Customers, and BAWSCA held multiple meetings to identify amendments that would address challenges related to the Minimum Purchase Requirements. Once the SFPUC and the Original Minimum Purchase Customers finalized their recommended amendments to the Minimum Purchase Requirements, the Original Minimum Purchase Customers presented the proposals to the broader Wholesale Customers’ group to secure their support. Negotiations among the Wholesale Customers were concluded in Fall 2024. Tier 1 Tier 2 Figure 1: Illustration of Tier 1 and Tier 2 Plans ANALYSIS Amendments to the Water Supply Agreement Minimum Purchase Requirements Item 17 Item 17 Staff Report Item 17: Staff Report Pg. 5 Packet Pg. 544 of 627 6 4 5 0 in alternative water supplies. The Minimum Purchase Customers are well-positioned to develop their own local, drought-resilient supplies, which would reduce the regional dry-year supply gap, improving reliability of the RWS for all users. These amendments may reduce a perceived existing disincentive to improve efficiency and develop alternative supplies. Item 17 Item 17 Staff Report Item 17: Staff Report Pg. 6 Packet Pg. 545 of 627 6 4 5 0 the difference between its metered water purchases and its Minimum Purchase Requirement. If collective purchases are more than the sum of minimum annual purchase quantities, payments to the SFPUC for an Original Minimum Purchase Customer(s) who did not meet its Minimum Purchase Requirement will not be required. If collective purchases are less than the sum of minimum annual purchase quantities, payments to the SFPUC for an Original Minimum Purchase Customer(s) who did not meet its Minimum Purchase Requirement will be proportionate to its share of total under usage. Tier 1 Water Shortage Allocation Plan The Tier 1 Water Shortage Allocation Plan (“Tier 1 Plan” included as Attachment H of the WSA) is the method and process for allocating water from the RWS between San Francisco retail customers and the Wholesale Customers collectively during system-wide shortages caused by drought of 20% or less. Section 3.11.C.3 of the WSA provides that the SFPUC will honor allocations of water among the Wholesale Customers (“Tier 2 Allocations”) provided by BAWSCA or if unanimously agreed to by all Wholesale Customers. The Tier 1 and Tier 2 Plans were implemented for the first time during the 2021 to 2023 drought. During the 2014 to 2017 drought, the Tier 1 and Tier 2 Plans were superseded by state-wide mandates from the Governor. During Tier 2 Plan negotiations, BAWSCA, the SFPUC, and the Wholesale Customers agreed to update the Tier 1 Plan to add a new “Tier 1 Family Plan.” When the SFPUC declares a shortage emergency, it determines whether voluntary or mandatory rationing is required. At the end of the 12-month drought period, each Wholesale Customer’s purchases from the RWS are compared to their annual drought allocation. Excess use charges are only applied during mandatory rationing periods. The new Tier 1 Family Plan ensures that excess use charges are only applied when the collective Wholesale Customer usage exceeds the Tier 1 allocation. If this occurs, excess use charges will be proportionally applied to agencies that exceeded their individual Tier 2 Allocations. For example, if the twenty-six Wholesale Customers collectively exceed the Tier 1 allocation by 2 MGD, and only two agencies exceed their Tier 2 Allocations by 3 MGD each, then these two agencies will share the excess use charges proportionally. General Updates to the WSA Sections 2.03, 3.09, 9.07, and Attachment A, Definitions of “Imputed Sales” and “Level of Service Goals and Objectives” have been updated with current cross references, dates and corrections. Updated Tier 2 Drought Response Implementation Plan The updated Tier 2 Plan maintains many of the key elements of the existing Tier 2 Plan, such as a rolling base period that captures service area growth over time and inclusion of Individual Supply Guarantee (ISG), but it also provides necessary updates to ensure a minimum supply of RWS water for base/indoor use for the portion of each service area where RWS is delivered. Item 17 Item 17 Staff Report Item 17: Staff Report Pg. 7 Packet Pg. 546 of 627 6 4 5 0 Tier 2 Plan Update Process Between January 2022 and June 2024, BAWSCA facilitated negotiations between the Wholesale Customers through a series of meetings, workshops, and workgroups to update the Tier 2 Plan. The Wholesale Customers began by reviewing the prior Plan and other shortage allocation plans throughout the state, then discussed and agreed upon policy principles for a revised Tier 2 Plan. BAWSCA, with support from a technical consultant team, introduced potential elements of a formula to align with the agreed upon policy principles. In monthly workshops, the Wholesale Customers discussed these options and provided feedback on which elements should be included, along with suggested refinements. These workshops, and the discussions, suggestions, and comments expressed by the Wholesale Customers during this process, provided the primary forum through which the updated Tier 2 Plan was developed. Tier 2 Plan Policy Principles The Wholesale Customers collectively developed four policy principles to guide the development and performance of the updated Tier 2 Plan. These policy principles are outlined below. Policy Principle #1 - Provide sufficient water for the basic health and safety needs of customers. Policy Principle #2 - Minimize economic and other adverse impacts of water shortages on customers and the BAWSCA region. Policy Principle #3 - Provide predictability of drought allocations through consistent and predetermined rules for calculation, while allowing for flexibility to respond to unforeseen circumstances. Policy Principle #4 - Recognize benefits of, and avoid disincentives for, water use efficiency and development of alternative water supply projects. Tier 2 Plan Allocation Formula The updated Tier 2 Plan establishes a sequential allocation formula to determine how the available water from the RWS will be allocated among the individual Wholesale Customers. The allocation formula can generally be described as follows: The Minimum and Maximum Cutback establish the upper and lower bounds for each Wholesale Customer’s final allocation. The Minimum Cutback is equal to 1/3 of the Overall Average Wholesale Customer Reduction, but no less than 5%. The Maximum Cutback is equal to 1.5 times the Overall Average Wholesale Customer Reduction. Item 17 Item 17 Staff Report Item 17: Staff Report Pg. 8 Packet Pg. 547 of 627 6 4 5 0 Each Wholesale Customer is allocated water on a residential per capita basis based on the State Indoor Water Use Efficiency Standard5 and the portion of each Wholesale Customer’s water demand met by the RWS. Each Wholesale Customer is allocated water based on its estimated non-residential indoor use by applying a cutback factor equal to half of the Overall Average Wholesale Customer Reduction to each Wholesale Customer’s estimated non-residential indoor demand, also known as Base Period purchase, from the RWS. Each Wholesale Customer is allocated water based on its estimated seasonal purchases from the RWS. Remaining water is allocated to bring each Wholesale Customer’s final allocation as close to its “Target Allocation” as possible, while ensuring that each Wholesale Customer’s final allocation is between the Minimum and Maximum Cutback bounds. The Target Allocation is based on a weighted share of (1) the Wholesale Customer’s Base Period purchases from the RWS and (2) its ISG. Tier 2 Plan Term The term of the updated Tier 2 Plan is coordinated with the term of the WSA to avoid simultaneous renegotiation of these related agreements. FISCAL/RESOURCE IMPACT Amendments to the Water Supply Agreement Minimum Purchase Requirements The amendments to the WSA regarding the MPQs will have a small impact on the cost of water for all Wholesale Customers and SFPUC’s retail customers. Some of the four MPQ agencies are currently paying for water they are unable to use due to decreased demands and investments in alternative supplies. This is particularly true for Palo Alto’s neighbor, Mountain View, which has paid more than $11 million in penalties over the past several years. Because the RWS revenue requirement must be recovered through water rates, reducing the MPRs for the four customers is estimated to cost all Wholesale Customers and SFPUC’s retail customers an additional $0.007-$0.04 per ccf (hundred cubic feet). This is approximately a 0.13%-0.72% water rate increase. Tier 1 Water Shortage Allocation Plan The amendments to the WSA regarding the Tier 1 Plan modification will have no adverse impact on Palo Alto. However, the amendments do have potential benefits. If Palo Alto were to 5 SB 1157 (Hertzberg), signed into law in September 2022, established the standard for efficient indoor residential water use be 47 gallons per capita per day, lowering to 42 GPCD in 2030. Item 17 Item 17 Staff Report Item 17: Staff Report Pg. 9 Packet Pg. 548 of 627 6 4 5 0 exceed its water allocation during a drought, but the Wholesale Customers collectively use less than the total wholesale allocation, Palo Alto will not be charged excess use fees. General Updates to the WSA Updated Tier 2 Drought Response Implementation Plan STAKEHOLDER ENGAGEMENT 7. 7 Resolution 25-0074 https://sfpuc.sharefile.com/share/view/s126c89893d1642f4b023bfb290442f85 Item 17 Item 17 Staff Report Item 17: Staff Report Pg. 10 Packet Pg. 549 of 627 6 4 5 0 alternative water supply planning. These Commissioners mentioned an upcoming BAWSCA Policy Committee meeting. Other Commissioners questioned whether and what additional information would be available next month and noted that staff was not working on preparing anything. The discussion was too far-reaching to summarize in full, the video can be seen here9 with the UAC discussion starting at about 1:37. Ultimately the Commissioners voted on two motions. The first motion to recommend Council approve these resolutions failed 3 (Scharff, Mauter, and Croft in favor): 3 (Tucher, Gupta, Metz against) with Commissioner Phillips absent. A second motion for the item to be continued to the next month also failed 2 (Gupta and Tucher in favor): 4 (Scharff, Mauter, Metz, and Croft against), with Commissioner Phillips absent. ENVIRONMENTAL REVIEW ALTERNATIVE ACTIONS ATTACHMENTS 9 UAC June 4, 2025 Meeting, UAC Discussion started at about 1:37 https://www.youtube.com/watch?v=agZwObaclBo Item 17 Item 17 Staff Report Item 17: Staff Report Pg. 11 Packet Pg. 550 of 627 6 4 5 0 Attachment B: Resolution Approving the Updated Tier 2 Drought Allocation Implementation Plan APPROVED BY: Item 17 Item 17 Staff Report Item 17: Staff Report Pg. 12 Packet Pg. 551 of 627 NOT YET APPROVED Resolution Amending the Water Supply Agreement 1 6056955; 21502307.7 RESOLUTION NO. _______ Resolution of the Council of the City of Palo Alto Approving an Amendment to the Amended and Restated Water Supply Agreement Between the City and County Of San Francisco And Wholesale Customers in Alameda County, San Mateo County, And Santa Clara County R E C I T A L S A.Water supply agencies in Alameda, San Mateo, and Santa Clara Counties have purchased water from the City and County of San Francisco (San Francisco) for many years; and B.The San Francisco Public Utilities Commission (SFPUC) operates the Regional Water System, which delivers water to communities in Alameda, San Mateo, and Santa Clara Counties, as well as to customers within San Francisco (collectively, “the Parties”); and C.The Parties entered into the “Settlement Agreement and Master Water Sales Contract between the City and County of San Francisco and Certain Suburban Purchasers in San Mateo County, Santa Clara County and Alameda County” in 1984 (1984 Settlement Agreement and Master Water Sales Contract); and D.In April 2003, water supply agencies in Alameda, San Mateo and Santa Clara Counties (collectively referred to as the Wholesale Customers) established the Bay Area Water Supply and Conservation Agency (BAWSCA), as authorized by Water Code Sections 81300 et seq.; and E.Upon expiration of the 1984 Settlement Agreement and Master Water Sales Contract, the Parties entered into the “Water Supply Agreement between San Francisco and Wholesale Customers in Alameda County, San Mateo County, and Santa Clara County” (Water Supply Agreement or WSA) on July 1, 2009, authorized by SFPUC Resolution No. 09-0069, dated April 28, 2009; and F.In 2017, the Wholesale Customers directed BAWSCA to act as its authorized representative in discussions and negotiations with San Francisco to amend the Water Supply Item 17 Attachment A - Resolution Amending the Amended and Restated Water Supply Agreement Item 17: Staff Report Pg. 13 Packet Pg. 552 of 627 NOT YET APPROVED Resolution Amending the Water Supply Agreement 2 6056955; 21502307.7 Agreement to address a number of substantive issues and these negotiations resulted in the Parties' adoption of the Amended and Restated Water Supply Agreement in 2018 authorized by SFPUC Resolution No. 18-0212, dated December 11, 2018; and G. On March 4, 2019 this Council, by Resolution No. 9821 approved the Amended and Restated Water Supply Agreement (2018 WSA); and H. Pursuant to WSA Section 3.07, four Wholesale Customers (Alameda County Water District and the Cities of Milpitas, Mountain View, and Sunnyvale, collectively, the “Original Minimum Purchase Customers”) may purchase water from sources other than the SFPUC, but they are each obligated to purchase a specific minimum annual quantity of water from the SFPUC, referred to as a “Minimum Purchase Requirement;” and I. Historically, if a Minimum Purchase Customer does not meet its Minimum Purchase Requirement in a particular fiscal year, it must pay the SFPUC for the difference between its metered water purchases during the fiscal year and its minimum annual purchase quantity set forth in WSA Attachment E; and J. Some Original Minimum Purchase Customers pay the SFPUC for water that is not delivered due to either insufficient potable demand within their service area or conservation efforts during drought rationing; and K. As part of the 2018 negotiations, the Wholesale Customers and the SFPUC resolved to work promptly to identify a resolution to this as part of a future contract amendment; and L. In 2019, the Wholesale Customers directed BAWSCA to draft a proposed amendment to the 2018 WSA to provide a procedure for expedited and permanent transfers of minimum annual purchase quantities that safeguards the financial and water supply interests of Wholesale Customers not participating in such transfers and these negotiations resulted in the Parties' adoption of the Amended and Restated Water Supply Agreement in 2021, authorized by SFPUC Resolution No. 21-009, dated January 26, 2021; and Item 17 Attachment A - Resolution Amending the Amended and Restated Water Supply Agreement Item 17: Staff Report Pg. 14 Packet Pg. 553 of 627 NOT YET APPROVED Resolution Amending the Water Supply Agreement 3 6056955; 21502307.7 M. On April 4, 2022 this Council by Resolution No. 10024 approved the Amended and Restated Water Supply Agreement (2021 WSA); and N. The 2021 WSA provided a significant, but incomplete solution to address the Original Minimum Purchase Customer’s concerns with the minimum purchase quantities through a transfer process; and O. 2021 WSA Section 3.11.C. provides that the SFPUC may reduce the amount of water available to the Wholesale Customers in response to a drought; and P. 2021 WSA Section 3.11.C. provides that the Tier 1 Shortage Plan (Attachment H to the WSA) will be used, during system-wide shortages of 20% or less, to allocate water from the Regional Water System between Retail and Wholesale Customers; and Q. 2021 WSA Section 3.11.C. further provides that the SFPUC will honor allocations of water among the Wholesale Customers (Tier 2 Allocations) unanimously agreed to by all Wholesale Customers or provided by BAWSCA; and R. In 2021, the SFPUC and BAWSCA implemented the Tier 1 and Tier 2 Plans for the first time; and S. Throughout 2022 and 2024, the Wholesale Customers convened at least once per month, most often for half-day in-person workshops, to negotiate an update to the method for sharing water made available from the SFPUC during shortages caused by drought (Tier 2 Plan); and T. Each Wholesale Customer appointed a lead negotiator to represent the interests of its agency in the negotiations; and U. During the Tier 2 Plan negotiations, the Original Minimum Purchase Customers renewed discussions among the Wholesale Customers to identify a comprehensive and final solution to concerns about the minimum purchase quantities; and Item 17 Attachment A - Resolution Amending the Amended and Restated Water Supply Agreement Item 17: Staff Report Pg. 15 Packet Pg. 554 of 627 NOT YET APPROVED Resolution Amending the Water Supply Agreement 4 6056955; 21502307.7 V. During the Tier 2 Plan negotiations, the Wholesale Customers identified, and the SFPUC agreed to, changes to the Tier 1 Plan that would facilitate agreement on the updated Tier 2 Plan; and W. In June 2023, following several years of discussions regarding the Minimum Purchase Requirements, the SFPUC proposed amending the 2021 WSA to reset the existing minimum annual purchase quantities to align with current water consumption trends, while protecting investment in the RWS; and X. In 2024, the SFPUC, the Original Minimum Purchase Customers, and BAWSCA held multiple meetings to identify amendments that would address challenges related to the Minimum Purchase Requirements; and Y. Once the SFPUC and the Original Minimum Purchase Customers discussed amendments to the Minimum Purchase Requirements, the Original Minimum Purchase Customers presented proposals to the broader Wholesale Customer group to secure their support; and Z. In 2024, the Wholesale Customers came to a final agreement on a package that includes an updated Tier 2 Plan, amendments to the minimum purchase quantity requirements, and amendments to the Tier 1 Plan; and AA. With its Alternative Water Supply Program, the SFPUC is in the early stages of planning for projects to support the Wholesale and Retail Customers' ability to respond to climate change and address future water supply challenges and vulnerabilities, such as regulatory changes, earthquakes, disasters, emergencies, and increases in population and employment; and BB. The Original Minimum Purchase Customers are particularly well-suited to develop local, drought resilient supplies, which improve the reliability of the San Francisco Regional Water System (RWS) for all users; and Item 17 Attachment A - Resolution Amending the Amended and Restated Water Supply Agreement Item 17: Staff Report Pg. 16 Packet Pg. 555 of 627 NOT YET APPROVED Resolution Amending the Water Supply Agreement 5 6056955; 21502307.7 CC. Under 2021 WSA Section 3.06.D, the Parties agree that they will diligently apply their best efforts to use both surface water and groundwater sources located within their respective service areas and available recycled water to the maximum feasible extent, taking into account the environmental impacts, the public health effects, and the effects on supply reliability of such use, as well as the cost of developing such sources; and DD. Each Wholesale Customer recognizes the importance of local water supplies in improving regional water supply reliability and commits to develop and use available local water supplies within their service areas, consistent with Section 3.06.D of the WSA; and EE. The City of Mountain View approved a Recycled Water Feasibility Study Update Draft Report on March 22, 2022 with seven staff recommendations, including: (1) working with the City of Palo Alto and the Santa Clara Valley Water District on the first phase of an advanced water purification system to improve recycled water quality, (2) planning and siting a recycled water storage reservoir in the City of Mountain View’s North Bayshore Area to improve system performance and reliability, and (3) building-out the recycled water distribution system to serve all of North Bayshore and a portion of NASA Ames; and FF. The City of Sunnyvale approved an updated Recycled Water Master Plan on September 24, 2024 and directed staff to look into expanding the recycled water system, which currently includes 22 miles of recycled water pipelines, two recycled water pump stations, and a recycled water storage tank with a 2.5-million-gallon capacity; and GG. The City of Milpitas continues to promote the use of recycled water to existing and new customers along the recycled water pipeline within the city, and has committed to developing local groundwater supplies to help meet projected long term water demand; and HH. Since 1995, the Alameda County Water District has invested over $300 million in water supply reliability initiatives to enhance local water supplies and reduce its dependence on imported supplies, including water conservation, conjunctive use groundwater management, brackish groundwater desalination, and groundwater banking; and Item 17 Attachment A - Resolution Amending the Amended and Restated Water Supply Agreement Item 17: Staff Report Pg. 17 Packet Pg. 556 of 627 NOT YET APPROVED Resolution Amending the Water Supply Agreement 6 6056955; 21502307.7 II.As of January 2025, the SFPUC has budgeted $298.3 million over the next ten years to fund water supply projects; and JJ. The Parties now desire to approve an amendment to the 2021 WSA to reduce the minimum annual purchase quantities to 80% of average purchases from the most recent four (4) non-drought years and establish a continuing, periodic review of the minimum annual purchase quantities on a 10-year schedule; and KK. The amendment will also establish a Rebound Year minimum annual purchase quantity calculation for the first year following a waiver of the Minimum Purchase Requirements; and LL. The amendment further provides that Imputed Sales will not apply to an Original Minimum Purchase Customer that does not meet its individual Minimum Purchase Requirements if the collective SFPUC purchases from all Original Minimum Purchase Customers are equal to or greater than the total collective minimum annual purchase quantity; and MM.The Parties also desire to adopt an amendment to the Tier 1 Plan to provide that excess use charges will not apply to Wholesale Customers that exceed their individual annual shortage allocation if the Wholesale Customers’ collective SFPUC purchases are less than the total Tier 1 allocation; and NN. The amendment further provides that if the collective Wholesale Customers’ SFPUC purchases exceed total Tier 1 allocation, excess use charges will be applied to each Wholesale Customer that exceeded its individual annual allocation, proportional to the collective Wholesale Customer's overuse of the total Tier 1 allocation; and OO. The Parties also desire to adopt an amendment to the 2021 WSA to include the following substantive modifications: a)update references in Section 2.03.C regarding BAWSCA’s authority to amend attachments; Item 17 Attachment A - Resolution Amending the Amended and Restated Water Supply Agreement Item 17: Staff Report Pg. 18 Packet Pg. 557 of 627 NOT YET APPROVED Resolution Amending the Water Supply Agreement 7 6056955; 21502307.7 b)extend the timing of the completion of the WSIP to reflect the currently adopted program completion date (Section 3.09); c)correct a reference to a SFPUC resolution number in Section 9.07; d) update “Imputed Sales” definition in Attachment A to reference Attachment E; e)update “Level of Service Goals and Objectives” definition in Attachment A to reflect updated and expanded Level of Service Goals and Objectives adopted by the SFPUC in November 2023; and PP. The SFPUC approved these amendments and authorized the execution of a 2025 Amended and Restated Water Supply Agreement incorporating these amendments on May 13, 2025 pursuant to SFPUC Resolution No. 25-0074; and QQ. The amendment considered now is not a "project" for the purposes of CEQA as it involves an administrative activity that does not result in a direct change to the environment (see 14 CCR Section 15378(b)(5)), and would not result in a direct or reasonably foreseeable indirect physical change in the environment (see 14 CCR Section 15060(c)(2)); and The Council of the City of Palo Alto does hereby RESOLVE as follows: Section 1. The Council approves the revisions included in the attached Exhibit A, approves those revisions to be incorporated into a revised WSA titled the "2025 Amended and Restated Water Supply Agreement Between the City and County of San Francisco Wholesale Customers in Alameda County, San Mateo County, and Santa Clara County" dated as of 2025 (2025 Amended and Restated Water Supply Agreement). // // // // Item 17 Attachment A - Resolution Amending the Amended and Restated Water Supply Agreement Item 17: Staff Report Pg. 19 Packet Pg. 558 of 627 NOT YET APPROVED Resolution Amending the Water Supply Agreement 8 6056955; 21502307.7 Section 2. The City Manager is authorized and directed to execute the 2025 Amended and Restated Water Supply Agreement, when final execution copies are prepared and distributed by BAWSCA. INTRODUCED AND PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST: City Clerk Mayor APPROVED AS TO FORM: APPROVED: Assistant City Attorney City Manager Director of Utilities Director of Administrative Services Attachment: Exhibit A: Redline and clean excerpts showing changes to Sections 2.03, 3.07, 3.09, 9.07, Attachment A, Attachment E and Attachment H of the Amended and Restated Water Supply Agreement. Item 17 Attachment A - Resolution Amending the Amended and Restated Water Supply Agreement Item 17: Staff Report Pg. 20 Packet Pg. 559 of 627 NOT YET APPROVED Resolution Approving Tier 2 Drought Response Implementation Plan 1 6056956 21488606.4 RESOLUTION NO. ________ Resolution of the Council of the City of Palo Alto Approving Tier 2 Drought Response Implementation Plan Pursuant to Section 3.11.C of the Amended and Restated Water Supply Agreement R E C I T A L S A. The City of Palo Alto is one of twenty-six (26) agencies in San Mateo, Santa Clara and Alameda Counties (Wholesale Customers) which purchase water from the City and County of San Francisco (San Francisco) pursuant to a Water Supply Agreement entered into in 2009, and recently amended in 2018, 2021 and 2025 (the Agreement or WSA). Collectively these 26 agencies are referred to in the Agreement as Wholesale Customers; and B. Section 3.11 of the Agreement addresses situations when insufficient water is available in the San Francisco Regional Water System (RWS) to meet the full demands of all users. Section 3.11.C provides that during periods of water shortage caused by drought, the San Francisco Public Utilities Commission (SFPUC) will allocate available water between its retail customers and the Wholesale Customers collectively, in accordance with a schedule contained in the Water Shortage Allocation Plan set forth in Attachment H to the Agreement (Tier 1 Plan); and C. Section 3.11.C authorizes the Wholesale Customers to adopt a Drought Allocation Plan, including a methodology for allocating the available water among the individual Wholesale Customers (Tier 2 Plan). The WSA also commits the SFPUC to honor allocations of water unanimously agreed to by all Wholesale Customers or, if unanimous agreement cannot be achieved, water allocations that have been adopted by the Board of Directors of the Bay Area Water Supply and Conservation Agency (BAWSCA). The Agreement also provides that the SFPUC can allocate water supplies as necessary during a water shortage emergency if no agreed upon plan for water allocation has been adopted by the 26 Wholesale Customers or the BAWSCA Board of Directors; and D. Commencing in January 2022, representatives appointed by the managers of each of the Wholesale Customers began meeting monthly to develop a set of principles to serve as guidelines for an equitable allocation methodology, and to develop formulas and procedures, in order to implement those principles. These discussions, and supporting technical analyses, have been conducted with the assistance of BAWSCA; and E. The Tier 2 Plan, attached to this resolution as Exhibit A, has been endorsed by all of the Wholesale Customer representatives who participated in the formulation process and they have each recommended that it be formally adopted by the governing body of their respective agencies; and F. The Tier 2 Plan allocates the collective Wholesale Customer share of RWS supply made available by the SFPUC among each of the 26 Wholesale Customers through December 31, 2034 and is coordinated with the term of the Agreement, and extension and renewal terms. Item 17 Attachment B - Resolution Approving the Updated Tier 2 Drought Allocation Implementation Plan Item 17: Staff Report Pg. 21 Packet Pg. 560 of 627 NOT YET APPROVED Resolution Approving Tier 2 Drought Response Implementation Plan 2 6056956 21488606.4 The Council of the City of Palo Alto does hereby RESOLVE as follows: Section 1. The Tier 2 Drought Response Implementation Plan, as attached as Exhibit A (Tier 2 Plan), is approved. Section 2. This approval is conditioned upon all of the other twenty-five Wholesale Customers approving the Tier 2 Plan, such approvals being evidenced through adoption of similar resolutions or, in the case of private-sector organizations, by other equivalently binding written commitments signed by an executive officer acting within the scope of delegated authority, and all such approvals occurring on or before December 31, 2025. Section 3. If such resolutions or binding commitments are not adopted by that date, this resolution will automatically expire and be of no further effect after December 31, 2025, unless it has been extended prior thereto by further action of this [Council, Board, etc.]. Section 4. The Council finds that adoption of this resolution is categorically exempt from the California Environmental Quality Act as an action taken by a regulatory agency for the protection of natural resources (CEQA Guidelines Section 15307), and an as action taken by a regulatory agency for protection of the environment (CEQA Guidelines Section 15308). INTRODUCED AND PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST: City Clerk Mayor APPROVED AS TO FORM: APPROVED: Assistant City Attorney City Manager Director of Utilities Director of Administrative Services Attachment: Exhibit A. Tier 2 Drought Response Plan and Example Tier 2 Plan Excel-Based Model Item 17 Attachment B - Resolution Approving the Updated Tier 2 Drought Allocation Implementation Plan Item 17: Staff Report Pg. 22 Packet Pg. 561 of 627 1 Redline Comparing 2021 Amended and Restated Water Supply Agreement and 2025 Proposed Amendments: Section 3.07 21706153.3 3.07. Restrictions on Purchases of Water from Others; Minimum Annual Purchases A. Each Wholesale Customer (except for Alameda County Water District and the cities of Milpitas, Mountain View and Sunnyvale) agrees that it will not contract for, purchase or receive, with or without compensation, directly or indirectly, from any person, corporation, governmental agency or other entity, any water for delivery or use within its service area without the prior written consent of San Francisco. B. The prohibition in subsection A does not apply to: 1. recycled water; 2. water necessary on an emergency and temporary basis, provided that the Wholesale Customer promptly gives San Francisco notice of the nature of the emergency, the amount of water that has been or is to be purchased, and the expected duration of the emergency; or 3.water in excess of a Wholesale Customer’s Individual Supply Guarantee. C.Minimum Annual Purchase Quantities. Alameda County Water District and the cities of Milpitas, Mountain View and Sunnyvale may purchase water from sources other than San Francisco, provided that San Francisco shall require that each purchase a minimum annual quantity of water from San Francisco. These Minimum Annual Purchase Quantities are set out in Attachment E and shall also be included in the Individual Water Sales Contracts between San Francisco and each of these four Wholesale Customers (collectively referred to as the Original Minimum Purchase Customers). Pursuant to Section 3.04, certain Wholesale Customers may also be required to purchase Temporary Modified Minimum Annual Purchase Quantities, set out in Attachment E-1, from San Francisco. Attachment E will be updated pursuant to Section 3.04 to reflect any reduction in existing Minimum Annual Purchase Quantities and any addition of new Minimum Annual Purchase Quantities when Temporary Modified Minimum Annual Purchase Quantities expire and are removed from Attachment E-1; Individual Water Sales Contracts between San Francisco and any Wholesale Customers who are participants in a transfer under Section 3.04 will similarly be amended, as necessary. 1. Annual Notice. After the end of each fiscal year, the SFPUC will send a written notice to each Wholesale Customer that is subject to the minimum annual purchase requirements of this section with a Minimum Annual Purchase Quantity, or a Temporary Modified Minimum Annual Purchase Quantity with a copy to BAWSCA. The notice will include: (1 Item 17 Attachment C - Redlines of the Water Supply Agreement Amendments Item 17: Staff Report Pg. 23 Packet Pg. 562 of 627 2 Redline Comparing 2021 Amended and Restated Water Supply Agreement and 2025 Proposed Amendments: Section 3.07 21706153.3 (a) the quantity of water delivered to theeach of those Wholesale CustomerCustomers individually and all of the Original Minimum Purchase Customers collectively during the previous fiscal year; ( 2 (b) each Wholesale Customer’s individual Minimum Annual Purchase Quantity or Temporary Modified Minimum Annual Purchase Quantity (as adjusted for a Rebound Year, if applicable, under Section 3.07.C.2); ) whether or not the Wholesale Customer met its minimum annual purchase requirement under this section; (3 (c) whether or not each Wholesale Customer met its individual Minimum Annual Purchase Quantity or Temporary Modified Minimum Annual Purchase Quantity (as adjusted for a Rebound Year, if applicable); (d) whether or not the Original Minimum Purchase Customers collectively purchased a volume of water from San Francisco that is equal to or greater than the sum of their four Minimum Annual Purchase Quantities (as adjusted for a Rebound Year, if applicable); (e) any Imputed Sales charged to the Wholesale Customer;Customers; and (4 (f) the status of any Temporary Modified Minimum Annual Purchase QuantityQuantities of the Wholesale Customer, if applicable. Customers. C.2. Waiver and Rebound Year. The minimum annual purchase requirements set out in Attachments E and E-1 will be waived during a Drought or other period of water shortage if the water San Francisco makes available to these Wholesale Customers is less than itstheir Minimum Annual Purchase QuantityQuantities or Temporary Modified Minimum Annual Purchase Quantities, and may be waived during a state of emergency declared by the Governor of California that impacts water supply use or deliveries from the Regional Water System. Once the waiver is no longer in effect, each of the minimum annual purchase requirements set out in Attachments E and E-1 shall be temporarily set, for one full fiscal year (referred to as the Rebound Year), to the midpoint between (1) the Wholesale Customer’s actual San Francisco purchases for the final year in which the waiver was in effect, up to a maximum of the Customer’s Minimum Annual Purchase Quantity or Temporary Modified Minimum Annual Purchase Quantity, and (2) the Wholesale Customer’s Minimum Annual Purchase Quantity or Temporary Modified Minimum Annual Purchase Quantity set out in Attachment E or Attachment E-1, as applicable. Any fiscal year in which a Wholesale Customer meets its Rebound Year-adjusted Temporary Modified Minimum Item 17 Attachment C - Redlines of the Water Supply Agreement Amendments Item 17: Staff Report Pg. 24 Packet Pg. 563 of 627 3 Redline Comparing 2021 Amended and Restated Water Supply Agreement and 2025 Proposed Amendments: Section 3.07 21706153.3 Annual Purchase Quantity, but not its standard Temporary Modified Minimum Annual Purchase Quantity, will not count as a fiscal year in which the Wholesale Customer has met or exceeded its Temporary Modified Minimum Purchase Quantity for the purposes of Section 3.04.C(4)(a). D. Minimum Annual Purchase Quantity Reset. As shown on Attachment E, in Fiscal Year 2025-26, the Parties reset the then-existing Minimum Annual Purchase Quantities of the Original Minimum Purchase Customers to 80% of the average San Francisco purchases of each Customer over the four most recent non-drought years preceding Fiscal Year 2024-25, effective for Fiscal Year 2024-25. If the Parties extend the Term of this Agreement beyond June 30, 2034 pursuant to Section 2.02, the Parties will review the Minimum Annual Purchase Quantities of the Original Minimum Purchase Customers again ten years after the Fiscal Year 2025-26 reset. If the Original Minimum Purchase Customers, or San Francisco, want to propose a reset of the Minimum Annual Purchase Quantities for Fiscal Year 2035-36, they will provide written notice on or before June 30, 2034. The Parties will meet and confer promptly to evaluate written reset proposals. By November 30, 2035, if the Parties have come to an agreement, the SFPUC will calculate the revised Minimum Annual Purchase Quantities based on the agreed upon methodology and provide written notice to the Original Minimum Purchase Customers and BAWSCA. The Original Minimum Purchase Customers will have at least 15 business days to review and meet and confer with the SFPUC with any questions or concerns before the revised quantities are finalized. If the Parties are unable to come to an agreement, the then-existing Minimum Annual Purchase Quantities will remain unchanged. Any changes to the Minimum Annual Purchase Quantities under this Section 3.07.D will be reflected in a revised Attachment E approved with the written concurrence of San Francisco and BAWSCA in accordance with Section 2.03.C. The Parties intend to include a continuing, periodic review of the Minimum Annual Purchase Quantities on a ten-year schedule in the successor to this Agreement. E. Collective Minimum Annual Purchase Quantities Considered Before Application of Imputed Sales. Imputed Sales will not apply to any of the individual Original Minimum Purchase Customers in a particular fiscal year if those Customers have collectively purchased a volume of water from San Francisco that is equal to or greater than the sum of their four Minimum Annual Purchase Quantities shown in Attachment E (or adjusted for a Rebound Year pursuant to Section 3.07.C.2, if applicable). If the Original Minimum Purchase Customers do not collectively purchase that sum, any Original Minimum Purchase Customer that has not met its standard or Rebound Year-adjusted Minimum Annual Purchase Quantity will be responsible for Imputed Sales proportional to its share of the difference between that sum and the Original Minimum Purchase Customers’ total purchases from San Francisco. Examples of this calculation are contained in Item 17 Attachment C - Redlines of the Water Supply Agreement Amendments Item 17: Staff Report Pg. 25 Packet Pg. 564 of 627 4 Redline Comparing 2021 Amended and Restated Water Supply Agreement and 2025 Proposed Amendments: Section 3.07 21706153.3 Attachment E-3. Item 17 Attachment C - Redlines of the Water Supply Agreement Amendments Item 17: Staff Report Pg. 26 Packet Pg. 565 of 627 21702335.2 Redline Comparing 2021 Amended and Restated Water Supply Agreement and 2025 Proposed Amendments: Sections 2.03, 3.09, and 9.07, and Attachment A Definitions 2.03. Amendments. C.Amendments to Attachments. The following attachments may be amended with the written concurrence of San Francisco and BAWSCA on behalf of the Wholesale Customers: Attachment Name C Individual Supply Guarantees (amendments reflecting Section 3.04 transfers only) E Minimum Annual Purchase Quantities (amendments reflecting Section 3.04 transfers and Section 3.07 resets only) E-1 Temporary Modified Minimum Annual Purchase Quantities G Water Quality Notification and Communications Plan (as may be amended) J Water Use Measurement and Tabulation L-1 Identification of WSIP Projects as Regional/Retail N-1 Balancing Account/Rate Setting Calculation Table N-2 Wholesale Revenue Requirement Schedules N-3 Schedule of Projected Water Sales, Wholesale Revenue Requirement and Wholesale Rates P Management Representation Letter R Classification of Existing System Assets (subject to Section 5.11) Amendments to these attachments shall be approved on behalf of San Francisco by the Commission and on behalf of BAWSCA by its Board of Directors, unless the Commission by resolution delegates such authority to the General Manager of the SFPUC or the Board of Directors by resolution delegates such authority to the General Manager/CEO of BAWSCA. Item 17 Attachment C - Redlines of the Water Supply Agreement Amendments Item 17: Staff Report Pg. 27 Packet Pg. 566 of 627 21702335.2 3.09. Completion of WSIP San Francisco will complete construction of the physical facilities in the WSIP by DecemberJune 30, 20212032. The SFPUC agrees to provide for full public review and comment by local and state interests of any proposed changes that delay previously adopted project completion dates or that delete projects. The SFPUC shall meet and consult with BAWSCA before proposing to the Commission any changes in the scope of WSIP projects which reduce their capacity or ability to achieve adopted Level of Service Goals and Objectives. The SFPUC retains discretion to determine whether to approve the physical facilities in the WSIP until after it completes the CEQA process as set forth in Section 4.07. 9.07. City of Brisbane, Guadalupe Valley Municipal Improvement District, Town of Hillsborough A. The parties acknowledge that San Francisco has heretofore provided certain quantities of water to the City of Brisbane (“Brisbane”), Guadalupe Valley Municipal Improvement District (“Guadalupe”) and the Town of Hillsborough (“Hillsborough”) at specified rates or without charge pursuant to obligations arising out of agreements between the predecessors of San Francisco and these parties, which agreements are referred to in judicial orders, resolutions of the SFPUC and/or the 1960 contracts between San Francisco and Brisbane, Guadalupe and Hillsborough. The parties intend to continue those arrangements and accordingly agree as follows: 1. Nothing in this Agreement is intended to alter, amend or modify the terms of SFPUC Resolution No. 74-06530053 or the indenture of July 18, 1908 between the Guadalupe Development Company and the Spring Valley Water Company. 2. Nothing in this Agreement is intended to alter, amend or modify the Findings of Fact and Conclusions of Law and Judgment dated May 25, 1961 in that certain action entitled City and County of San Francisco v. Town of Hillsborough in the Superior Court of the State of California in and for the County of Marin, No. 23282, as modified by the Satisfaction of Judgment filed October 23, 1961 and the Compromise and Release between Hillsborough and San Francisco dated August 22, 1961. The rights and obligations of Hillsborough under these documents shall continue as therein set forth. 3. Nothing in this Agreement is intended to affect or prejudice any claims, rights or remedies of Guadalupe or of Crocker Estate Company, a corporation, or of Crocker Redline Comparing 2021 Amended and Restated Water Supply Agreement and 2025 Proposed Amendments: Sections 2.03, 3.09, and 9.07, and Attachment A Definitions Item 17 Attachment C - Redlines of the Water Supply Agreement Amendments Item 17: Staff Report Pg. 28 Packet Pg. 567 of 627 21702335.2 Land Company, a corporation, or of San Francisco, or of their successors and assigns, respectively, with respect to or arising out of that certain deed dated May 22, 1884, from Charles Crocker to Spring Valley Water Works, a corporation, recorded on May 24, 1884, in Book 37 of Deeds at page 356, Records of San Mateo County, California, as amended by that certain Deed of Exchange of Easements in Real Property and Agreement for Trade in Connection Therewith, dated July 29, 1954, recorded on August 4, 1954, in Book 2628, at page 298, Official Records of said San Mateo County, or with respect to or arising out of that certain action involving the validity or enforceability of certain provisions of said deed entitled City and County of San Francisco v. Crocker Estate Company, in the Superior Court of the State of California in and for the County of Marin, No. 23281. Attachment A - Definitions “Imputed Sales” apply when a Wholesale Customer does not meet the minimum annual purchase requirements of Section 3.07.C, as shown on Attachment E and Attachment E-1, except in fiscal years in which a waiver of these requirements is in effect. Imputed Sales are calculated as the difference between (1) a Wholesale Customer’s metered water purchases during a fiscal year, from July 1 to June 30, and (2) the larger of (a) or (b) as follows: (a) the Wholesale Customer’s Minimum Annual Purchase Quantity, as specified in Attachment E and may be adjusted pursuant to Section 3.07.C.2, or (b) the Wholesale Customer’s Temporary Modified Minimum Annual Purchase Quantity, as specified in Attachment E-1. and may be adjusted pursuant to Section 3.07.C.2. If a Wholesale Customer has more than one Temporary Modified Minimum Annual Purchase Quantity, the largest quantity is used for calculating Imputed Sales. Imputed Sales are considered wholesale water usage for the purposes of calculating the Proportional Annual Use, and any fees charged for Imputed Sales are considered wholesale revenues. “Level of Service Goals and Objectives” refers to the “Phased WSIP Goals and Objectives” adopted by the Commission in Resolution No. 08-0200 dated October 30, 2008 as part of the approval of the WSIP, as updated and expanded by the "2023 Amended and Updated Water Enterprise Level of Service Goals and Objectives," adopted by the Commission in Resolution No. 23-0210 dated November 28, 2023, and any amendments that may be adopted by the Commission. Redline Comparing 2021 Amended and Restated Water Supply Agreement and 2025 Proposed Amendments: Sections 2.03, 3.09, and 9.07, and Attachment A Definitions Item 17 Attachment C - Redlines of the Water Supply Agreement Amendments Item 17: Staff Report Pg. 29 Packet Pg. 568 of 627 21715759.2 ATTACHMENT E MINIMUM ANNUAL PURCHASE QUANTITIES (Section 3.07.C) AGENCY MINIMUM ANNUAL PURCHASE QUANTITY (IN MGD)1 Alameda County Water District 7.6486.682 City of Milpitas 5.3414.371 City of Mountain View 8.9306.047 City of Sunnyvale 8.9307.412 1 In Fiscal Year (FY) 2025-26, the then-existing Minimum Annual Purchase Quantities for Alameda County Water District and the Cities of Milpitas, Mountain View, and Sunnyvale were reset to 80% of each of those four customers’ average San Francisco purchases over the four non-drought years preceding FY 2024-25 (FY 2017-18, FY 2018-19, FY 2019-20, and FY 2020-21), effective FY 2024-25. Prior to this reset, from the effective date of this Agreement (July 1, 2009) through FY 2023-24, those four customers had the following Minimum Annual Purchase Quantities: 1. Alameda County Water District: 7.648 MGD 2. City of Milpitas: 5.341 MGD 3. City of Mountain View: 8.930 MGD 4. City of Sunnyvale: 8.930 MGD Redline Comparing 2021 Amended and Restated Water Supply Agreement and 2025 Proposed Amendment Attachment E Item 17 Attachment C - Redlines of the Water Supply Agreement Amendments Item 17: Staff Report Pg. 30 Packet Pg. 569 of 627 Redline Comparing 2021 Amended and Restated Water Supply Agreement and 2025 Proposed Amendments 1 21606945.9 ATTACHMENT H WATER SHORTAGE ALLOCATION PLAN This Interim Water Shortage Allocation Plan (“Plan"), also known as the Tier 1 Shortage Plan, describes the method for allocating water between the San Francisco Public Utilities Commission (“SFPUC"), on the one hand, and the Wholesale Customers collectively, on the other, during shortages caused by drought. The Plan also implements a method for allocating water among the individual Wholesale Customers, known as the Tier 2 Drought Response Implementation Plan (“Tier 2 Plan”), which has separately been adopted by the Wholesale Customers and does not include the SFPUC. The Plan includes provisions for transfers, banking, and excess use charges. The Plan applies only when the SFPUC determines that a system-wide water shortage due to drought exists, and all references to “shortages” and “water shortages” are to be so understood. This Plan was initially adopted pursuant to Section 7.03(a) of the 1984 Settlement Agreement and Master Water Sales Contract and has been incorporated and updated to correspond to the terminology used in the June 2009 Water Supply Agreement between the City and County of San Francisco and Wholesale Customers in Alameda County, San Mateo County and Santa Clara County (“Agreement”), as amended and restated from time to time. SECTION 1. SHORTAGE CONDITIONS 1.1. Projected Available SFPUC Water Supply. The SFPUC shall make an annual determination as to whether or not a shortage condition exists. The determination of projected available water supply shall consider, among other things, stored water, projected runoff, water acquired by the SFPUC from non- SFPUC sources, inactive storage, reservoir losses, allowance for carryover storage, and water bank balances, if any, described in Section 3. 1.2 Projected SFPUC Customer Purchases. The SFPUC will utilize purchase data, including volumes of water purchased by the Wholesale Customers and by Retail Customers (as those terms are used in the Agreement) in the year immediately prior to the drought, along with other available relevant information, as a basis for determining projected system-wide water purchases from the SFPUC for the upcoming year.Supply Year (defined as the period from July 1 through June 30). 1.3. Shortage Conditions. The SFPUC will compare the projected available water supply (Section 1.1) with projected system-wide water purchases (Section 1.2). A shortage condition exists if the SFPUC determines that the projected available water supply is less than projected system-wide water purchases in the upcoming Supply Year (defined as the period from July 1 through June 30).. When a shortage condition exists, SFPUC will determine whether voluntary or mandatory actions will be required to reduce purchases of SFPUC water to required levels. 1.3.1 Voluntary Response. If the SFPUC determines that voluntary actions will be sufficient to accomplish the necessary reduction in water use throughout its service area, the SFPUC and the Wholesale Customers will make good faith efforts to reduce their water purchases to stay within their annual shortageTier 1 and Tier 2 allocations as applicable (see Section 2 of this Attachment H) and associated monthly water use budgets. The SFPUC will not impose excess use charges during periods of voluntary rationing, but may suspend the prospective accumulation of water bank credits, or impose a ceiling on further accumulation of bank credits, consistent with Section 3.2.1 of this Plan. 1.3.2 Mandatory Response. If the SFPUC determines that mandatory actions will be required to accomplish the necessary reduction in water use in the SFPUC service area, the SFPUC may implement excess use charges as set forth in Section 4 of this Plan. Item 17 Attachment C - Redlines of the Water Supply Agreement Amendments Item 17: Staff Report Pg. 31 Packet Pg. 570 of 627 Redline Comparing 2021 Amended and Restated Water Supply Agreement and 2025 Proposed Amendments 2 21606945.9 1.4. Period of Shortage. A shortage period commences when the SFPUC determines that a water shortage exists, as set forth in a declaration of water shortage emergency issued by the SFPUC pursuant to California Water Code Sections 350 et seq. Termination of the water shortage emergency will be declared by resolution of the SFPUC. SECTION 2. SHORTAGE ALLOCATIONS 2.1. Annual Tier 1 Allocations between the SFPUC and the Wholesale Customers. The annual water supply available during shortages will be allocated between the SFPUC and the collective Wholesale Customers as follows: Level of System Wide Reduction in Water Use Required Share of Available Water SFPUC Share Wholesale Customers Share 5% or less 6% through 10% 11% through 15% 16% through 20% 35.5% 36.0% 37.0% 37.5% 64.5% 64.0% 63.0% 62.5% This Plan refers to the SFPUC’s and Wholesale Customers’ respective shares of available water so established as the SFPUC’s and Wholesale Customers’ Tier 1 allocations. The water allocated to the SFPUC shall correspond to the total allocation for all Retail Customers. In the event that the SFPUC share of the available water supply in the above table results in Retail Customers having a positive allocation (i.e., a supply of additional water rather than a required percentage reduction in water use), the SFPUC’s percentage share of the available water supply in the table shall be reduced to eliminate any positive allocation to Retail Customers, with a corresponding increase in the percentage share of the available water supply allocated to the Wholesale Customers. For any level of required reduction in system-wide water use during shortages, the SFPUC shall require Retail Customers to conserve a minimum of 5%, with any resulting reallocated supply credited to storage for inclusion in calculation of projected available water SFPUC water supply in a subsequent year (Section 1.1). The parties agree to reevaluate the percentages of the available water supply allocated to Retail and Wholesale Customers by May 1, 2028. 2.2 Annual Tier 2 Allocations among the Wholesale Customers. The annual water supply allocated to the Wholesale Customers collectively during system wide shortages of 20 percent or less (i.e., the Wholesale Customers’ Tier 1 allocation) will be apportioned among them based on a methodology, known as the Tier 2 Plan, that has been separately adopted by all of the Wholesale Customers, and not the SFPUC, as described in Section 3.11(C) of the Agreement. In any year for which the methodology must be applied, the Bay Area Water Supply and Conservation Agency (“BAWSCA”) will calculate each Wholesale Customer’s individual percentage share of the amount of water allocated to the Wholesale Customers collectively pursuant to Section 2.1. Following the declaration or reconfirmation of a water shortage emergency by the SFPUC, BAWSCA will deliver to the SFPUC General Manager a list, signed by the President of BAWSCA’s Board of Directors and its General Manager, showing each Wholesale Customer together with its percentage share and stating that the list has been prepared in accordance with the methodology adopted by the Wholesale Customers. The SFPUC shall allocate water to each Wholesale Customer, as specified in the list. The shortage allocations so established (known as Tier 2 Item 17 Attachment C - Redlines of the Water Supply Agreement Amendments Item 17: Staff Report Pg. 32 Packet Pg. 571 of 627 Redline Comparing 2021 Amended and Restated Water Supply Agreement and 2025 Proposed Amendments 3 21606945.9 allocations) may be transferred as provided in Section 2.5 of this Plan. If BAWSCA or all Wholesale Customers do not provide the SFPUC with individual allocations, the SFPUC may make a final allocation decision after first meeting and discussing allocations with BAWSCA and the Wholesale Customers. The Tier 2 Plan methodology adopted by the Wholesale Customers utilizes the rolling average of each individual Wholesale Customer’s purchases from the SFPUC during the three immediately preceding Supply Years. The SFPUC agrees to provide BAWSCA by November 1 of each year a list showing the amount of water purchased by each Wholesale Customer during the immediately preceding Supply Year. The list will be prepared using Customer Service Bureau report MGT440 (or comparable official record in use at the time), adjusted as required for any reporting errors or omissions, and will be transmitted by the SFPUC General Manager or his designee. 2.3. Limited Applicability of Plan to System Wide Shortages Greater Than Twenty Percent. The Tier 1 allocations of water between the SFPUC and the Wholesale Customers collectively, provided for in Section 2.1, apply only to shortages of 20 percent or less. The SFPUC and Wholesale Customers recognize the possibility of a drought occurring which could create system-wide shortages greater than 20 percent despite actions taken by the SFPUC aimed at reducing the probability and severity of water shortages in the SFPUC service area. If the SFPUC determines that a system wide water shortage greater than 20 percent exists, the SFPUC and the Wholesale Customers agree to meet within 10 days and discuss whether a change is required to the allocation set forth in Section 2.1 in order to mitigate undue hardships that might otherwise be experienced by individual Wholesale Customers or Retail Customers. Following these discussions, the Tier 1 water allocations set forth in Section 2.1 of this Plan, or a modified version thereof, may be adopted by mutual written consent of the SFPUC and the Wholesale Customers. If the SFPUC and Wholesale Customers meet and cannot agree on an appropriate Tier 1 allocation within 30 days of the SFPUC’s determination of water shortage greater than 20 percent, then (1) the provisions of Section 3.11(C) of the Agreement will apply, unless (2) all of the Wholesale Customers direct in writing that a Tier 2 allocation methodology agreed to by them be used to apportion the water to be made available to the Wholesale Customers collectively, in lieu of the provisions of Section 3.11(C). The provisions of this Plan relating to transfers (in Section 2.5), banking (in Section 3), and excess use charges (in Section 4) shall continue to apply during system-wide shortages greater than 20 percent. 2.4. Monthly Water Budgets. Within 10 days after adopting a declaration of water shortage emergency, the SFPUC will determine the amount of Tier 1 water allocated to the Wholesale Customers collectively pursuant to Section 2.1. The SFPUC General Manager, using the Tier 2 allocation percentages shown on the list delivered by BAWSCA pursuant to Section 2.2, will calculate each Wholesale Customer’s individual annual Tier 2 allocation. The SFPUC General Manager, or his designee, will then provide each Wholesale Customer with a proposed schedule of monthly water budgets based on the pattern of monthly water purchases during the Supply Year immediately preceding the declaration of shortage (the “Default Schedule”). Each Wholesale Customer may, within two weeks of receiving its Default Schedule, provide the SFPUC with an alternative monthly water budget that reschedules its annual Tier 2 shortage allocation over the course of the succeeding Supply Year. If a Wholesale Customer does not deliver an alternative monthly water budget to the SFPUC within two weeks of its receipt of the Default Schedule, then its monthly budget for the ensuing Supply Year shall be the Default Schedule proposed by the SFPUC. Monthly Wholesale Customer water budgets will be derived from annual Tier 2 allocations for purposes of accounting for excess use. Monthly Wholesale Customer water budgets shall be adjusted during the year to account for transfers of shortage allocation under Section 2.5 and transfers of banked water under Section 3.4. Item 17 Attachment C - Redlines of the Water Supply Agreement Amendments Item 17: Staff Report Pg. 33 Packet Pg. 572 of 627 Redline Comparing 2021 Amended and Restated Water Supply Agreement and 2025 Proposed Amendments 4 21606945.9 2.5. Transfers of Shortage Allocations. Voluntary transfers of shortage allocations between the SFPUC and any Wholesale Customers, and between any Wholesale Customers, will be permitted using the same procedure as that for transfers of banked water set forth in Section 3.4. The SFPUC and BAWSCA shall be notified of each transfer. Transfers of shortage allocations shall be deemed to be an emergency transfer and shall become effective on the third business day after notice of the transfer has been delivered to the SFPUC. Transfers of shortage allocations shall be in compliance with Section 3.05 of the Agreement. The transferring parties will meet with the SFPUC, if requested, to discuss any effect the transfer may have on its operations. SECTION 3. SHORTAGE WATER BANKING 3.1. Water Bank Accounts. The SFPUC shall create a water bank account for itself and each Wholesale Customer during shortages in conjunction with its resale customer billing process. Bank accounts will account for amounts of water that are either saved or used in excess of the shortage allocation for each agency; the accounts are not used for tracking billings and payments. When a shortage period is in effect (as defined in Section 1.4), the following provisions for bank credits, debits, and transfers shall be in force. A statement of bank balance for each Wholesale Customer will be included with the SFPUC’s monthly water bills. 3.2. Bank Account Credits. Each month, monthly purchases will be compared to the monthly budget for that month. Any unused shortage allocation by an agency will be credited to that agency’s water bank account. Credits will accumulate during the entire shortage period, subject to potential restrictions imposed pursuant to Section 3.2.1. Credits remaining at the end of the shortage period will be zeroed out; no financial or other credit shall be granted for banked water. 3.2.1. Maximum Balances. The SFPUC may suspend the prospective accumulation of credits in all accounts. Alternatively, the SFPUC may impose a ceiling on further accumulation of credits in water bank balances based on a uniform ratio of the bank balance to the annual water allocation. In making a decision to suspend the prospective accumulation of water bank credits, the SFPUC shall consider the available water supply as set forth in Section 1.1 of this Plan and other reasonable, relevant factors. 3.3. Account Debits. Each month, monthly purchases will be compared to the budget for that month. Purchases in excess of monthly budgets will be debited against an agency’s water bank account. Bank debits remaining at the end of the fiscal year will be subject to excess use charges (see Section 4). 3.4. Transfers of Banked Water. In addition to the transfers of shortage allocations provided for in Section 2.5, voluntary transfers of banked water will also be permitted between the SFPUC and any Wholesale Customer, and among the Wholesale Customers. The volume of transferred water will be credited to the transferee’s water bank account and debited against the transferor’s water bank account. The transferring parties must notify the SFPUC and BAWSCA of each transfer in writing (so that adjustments can be made to bank accounts), and will meet with the SFPUC, if requested, to discuss any affect the transfer may have on SFPUC operations. Transfers of banked water shall be deemed to be an emergency transfer and shall become effective on the third business day after notice of the transfer has been delivered to the SFPUC. If the SFPUC incurs extraordinary costs in implementing transfers, it will give written notice to the transferring parties within ten (10) business days after receipt of notice of the transfer. Extraordinary costs means additional costs directly attributable to accommodating transfers and which are not incurred in non-drought years nor simply as a result of the shortage condition itself. Extraordinary costs shall be calculated in accordance with the procedures in the Agreement and shall be subject to the disclosure and auditing requirements in the Agreement. In the case of transfers between Wholesale Customers, such extraordinary costs shall be considered to be expenses chargeable solely to individual Wholesale Customers and shall be borne equally by the parties to the transfer. In the case of Item 17 Attachment C - Redlines of the Water Supply Agreement Amendments Item 17: Staff Report Pg. 34 Packet Pg. 573 of 627 Redline Comparing 2021 Amended and Restated Water Supply Agreement and 2025 Proposed Amendments 5 21606945.9 transfers between the SFPUC and a Wholesale Customer, the SFPUC’s share of any extraordinary transfer costs shall not be added to the Wholesale Revenue Requirement. 3.4.1. Transfer Limitations. The agency transferring banked water will be allowed to transfer no more than the accumulated balance in its bank. Transfers of estimated prospective banked credits and the “overdrafting” of accounts shall not be permitted. The price of transfer water originally derived from the SFPUC system is to be determined by the transferring parties and is not specified herein. Transfers of banked water shall be in compliance with Section 3.05 of the Agreement. SECTION 4. WHOLESALE EXCESS USE CHARGES 4.1. Amount of Excess Use Charges. Monthly excess use charges shall be determined by the SFPUC at the time of the declared water shortage consistent with the calendar in Section 6 and in accordance with Section 6.03 of the Agreement. The excess use charges will be in the form of multipliers applied to the rate in effect at the time the excess use occurs. The same excess use charge multipliers shall apply to the Wholesale Customers and all Retail Customers. The excess use charge multipliers apply only to the charges for water delivered at the rate in effect at the time the excess use occurred. 4.2 Monitoring Suburban Water Use. During periods of voluntary rationing, water usage greater than a customer’s allocation (as determined in Section 2) will be indicated on each SFPUC monthly water bill. During periods of mandatory rationing, monthly and cumulative water usage greater than a Wholesale Customer’s shortage allocation and the associated excess use charges will be indicated on each SFPUC monthly water bill. 4.3. Suburban Excess Use Charge Payments. An annual reconciliation will be made of monthly excess use charges according to the calendar in Section 6. Annual excess use charges will be calculated by comparing total annual purchases for each Wholesale Customer with its annual shortage allocation (as adjusted for transfers of shortage allocations and banked water, if any). Excess use charge payments by those Wholesale Customers with net excess use will be paid according to the calendar in Section 6. The SFPUC may dedicate excess use charges paid by Wholesale Customers toward the purchase of water from the State Drought Water Bank or other willing sellers in order to provide additional water to the Wholesale Customers. Excess use charges paid by the Wholesale Customers constitute Wholesale Customer revenue and shall be included within the SFPUC's annual Wholesale Revenue Requirement calculation. 4.4. Tier 1 Family Plan. During periods of mandatory rationing, the SFPUC will not assess excess use charges on any of the Wholesale Customers if the Wholesale Customers’ collective cumulative purchases over the course of the Supply Year are less than the Wholesale Customers’ Tier 1 allocation, as set forth in Section 2.1. If the Wholesale Customers’ collective cumulative purchases exceed the Wholesale Customers’ Tier 1 allocation, the SFPUC shall assess excess use charges on each individual Wholesale Customer that exceeded its individual Tier 2 allocation (established in accordance with Section 2.2) over the course of the Supply Year in proportion to each individual Wholesale Customer’s share of the collective Wholesale Customers’ purchases that exceeded the Wholesale Customers’ Tier 1 allocation. SECTION 5. GENERAL PROVISIONS GOVERNING WATER SHORTAGE ALLOCATION PLAN 5.1. Construction of Terms. This Plan is for the sole benefit of the parties and shall not be construed as granting rights to any person other than the parties or imposing obligations on a party to any person other than another party. Item 17 Attachment C - Redlines of the Water Supply Agreement Amendments Item 17: Staff Report Pg. 35 Packet Pg. 574 of 627 Redline Comparing 2021 Amended and Restated Water Supply Agreement and 2025 Proposed Amendments 6 21606945.9 5.2. Governing Law. This Plan is made under and shall be governed by the laws of the State of California. 5.3. Effect on Agreement. This Plan describes the method for allocating water between the SFPUC and the collective Wholesale Customers during system-wide water shortages of 20 percent or less. This Plan also provides for the SFPUC to allocate water among the Wholesale Customers in accordance with directions provided by the Wholesale Customers through BAWSCA under Section 2.2, and to implement a program by which such allocations may be voluntarily transferred among the Wholesale Customers. The provisions of this Plan are intended to implement Section 3.11(C) of the Agreement and do not affect, change or modify any other section, term or condition of the Agreement. 5.4. Inapplicability of Plan to Allocation of SFPUC System Water During Non-Shortage Periods. The SFPUC’s agreement in this Plan to a respective share of SFPUC system water during years of shortage shall not be construed to provide a basis for the allocation of water between the SFPUC and the Wholesale Customers when no water shortage emergency exists. 5.5. Termination. This Plan shall expire at the end of the Term of the Agreement... The SFPUC and the Wholesale Customers can mutually agree to revise or terminate this Plan prior to that date due to changes in the water delivery capability of the SFPUC system, the acquisition of new water supplies, and other factors affecting the availability of water from the SFPUC system during times of shortage. SECTION 5. ALLOCATION CALENDAR 6.1. Annual Schedule. The annual schedule for the shortage allocation process is shown below. This schedule may be changed by the SFPUC to facilitate implementation. 6.1.1 In All Years Target Dates 1.SFPUC delivers list of annual purchases by each Wholesale Customer during the immediately preceding Supply Year November 1 2.SFPUC meets with the Wholesale Customers and presents water supply forecast for the following Supply Year February 3.SFPUC issues initial estimate of available water supply February 1 4.SFPUC announces potential first year of drought (if applicable)February 1 5.SFPUC and Wholesale Customers meet upon request to exchange information concerning water availability and projected system- wide purchases February 1-May 31 6.SFPUC issues revised estimate of available water supply, and confirms continued potential shortage conditions, if applicable March 1 7.SFPUC issues final estimate of available water supply April 15th or sooner if adequate snow course measurement data is available to form a robust estimate on available water supply for the coming year. 8.SFPUC determines amount of water available to Wholesale Customers collectively April 15th or sooner if adequate snow course measurement data is available to form a robust estimate on available water Item 17 Attachment C - Redlines of the Water Supply Agreement Amendments Item 17: Staff Report Pg. 36 Packet Pg. 575 of 627 Redline Comparing 2021 Amended and Restated Water Supply Agreement and 2025 Proposed Amendments 7 21606945.9 supply for the coming year. In Drought Years Target Dates 9.SFPUC formally declares the existence of water shortage emergency (or end of water shortage emergency, if applicable) under Water Code Sections 350 et. seq. April 15-30 10.SFPUC declares the need for a voluntary or mandatory response April 15-30 11.BAWSCA submits calculation to SFPUC of individual Wholesale Customers’ percentage shares of water allocated to Wholesale Customers collectively April 15- 30 12.SFPUC determines individual shortage allocations, based on BAWSCA’s submittal of individual agency percentage shares to SFPUC, and monthly water budgets (Default Schedule) April 25—May 10 13.Wholesale Customers submit alternative monthly water budgets (optional) May 8-May 24 14.Final drought shortage allocations are issued for the Supply Year beginning July 1 through June 30 June 1 15.Monthly water budgets become effective July 1 16.Excess use charges indicated on monthly Suburban bills August 1 (of the beginning year) through June 30 (of the succeeding year) 17.Excess use charges paid by Wholesale Customers for prior year August of the succeeding year Item 17 Attachment C - Redlines of the Water Supply Agreement Amendments Item 17: Staff Report Pg. 37 Packet Pg. 576 of 627 1 21645394.9 3.07. Restrictions on Purchases of Water from Others; Minimum Annual Purchases A.Each Wholesale Customer (except for Alameda County Water District and the cities of Milpitas, Mountain View and Sunnyvale) agrees that it will not contract for, purchase or receive, with or without compensation, directly or indirectly, from any person, corporation, governmental agency or other entity, any water for delivery or use within its service area without the prior written consent of San Francisco. B.The prohibition in subsection A does not apply to: 1. recycled water; 2.water necessary on an emergency and temporary basis, provided that the Wholesale Customer promptly gives San Francisco notice of the nature of the emergency, the amount of water that has been or is to be purchased, and the expected duration of the emergency; or 3.water in excess of a Wholesale Customer’s Individual Supply Guarantee. C.Minimum Annual Purchase Quantities. Alameda County Water District and the cities of Milpitas, Mountain View and Sunnyvale may purchase water from sources other than San Francisco, provided that San Francisco shall require that each purchase a minimum annual quantity of water from San Francisco. These Minimum Annual Purchase Quantities are set out in Attachment E and shall also be included in the Individual Water Sales Contracts between San Francisco and each of these four Wholesale Customers (collectively referred to as the Original Minimum Purchase Customers). Pursuant to Section 3.04, certain Wholesale Customers may also be required to purchase Temporary Modified Minimum Annual Purchase Quantities, set out in Attachment E-1, from San Francisco. Attachment E will be updated pursuant to Section 3.04 to reflect any reduction in existing Minimum Annual Purchase Quantities and any addition of new Minimum Annual Purchase Quantities when Temporary Modified Minimum Annual Purchase Quantities expire and are removed from Attachment E-1; Individual Water Sales Contracts between San Francisco and any Wholesale Customers who are participants in a transfer under Section 3.04 will similarly be amended, as necessary. 1.Annual Notice. After the end of each fiscal year, the SFPUC will send a written notice to each Wholesale Customer with a Minimum Annual Purchase Quantity, or a Temporary Modified Minimum Annual Purchase Quantity with a copy to BAWSCA. The notice will include: Item 17 Attachment D - CLEAN Water Supply Agreement Amendments Item 17: Staff Report Pg. 38 Packet Pg. 577 of 627 2 21645394.9 (a) the quantity of water delivered to each of those Wholesale Customers individually and all of the Original Minimum Purchase Customers collectively during the previous fiscal year; (b) each Wholesale Customer’s individual Minimum Annual Purchase Quantity or Temporary Modified Minimum Annual Purchase Quantity (as adjusted for a Rebound Year, if applicable, under Section 3.07.C.2); (c) whether or not each Wholesale Customer met its individual Minimum Annual Purchase Quantity or Temporary Modified Minimum Annual Purchase Quantity (as adjusted for a Rebound Year, if applicable); (d) whether or not the Original Minimum Purchase Customers collectively purchased a volume of water from San Francisco that is equal to or greater than the sum of their four Minimum Annual Purchase Quantities (as adjusted for a Rebound Year, if applicable); (e) any Imputed Sales charged to the Wholesale Customers; and (f) the status of any Temporary Modified Minimum Annual Purchase Quantities of the Wholesale Customers. 2.Waiver and Rebound Year. The minimum annual purchase requirements set out in Attachments E and E-1 will be waived during a Drought or other period of water shortage if the water San Francisco makes available to these Wholesale Customers is less than their Minimum Annual Purchase Quantities or Temporary Modified Minimum Annual Purchase Quantities, and may be waived during a state of emergency declared by the Governor of California that impacts water supply use or deliveries from the Regional Water System. Once the waiver is no longer in effect, each of the minimum annual purchase requirements set out in Attachments E and E-1 shall be temporarily set, for one full fiscal year (referred to as the Rebound Year), to the midpoint between (1) the Wholesale Customer’s actual San Francisco purchases for the final year in which the waiver was in effect, up to a maximum of the Customer’s Minimum Annual Purchase Quantity or Temporary Modified Minimum Annual Purchase Quantity, and (2) the Wholesale Customer’s Minimum Annual Purchase Quantity or Temporary Modified Minimum Annual Purchase Quantity set out in Attachment E or Attachment E-1, as applicable. Any fiscal year in which a Wholesale Customer meets its Rebound Year-adjusted Temporary Modified Minimum Annual Purchase Quantity, but not its standard Temporary Modified Minimum Annual Purchase Quantity, will not count as a fiscal year in which the Wholesale Customer has met or exceeded its Temporary Modified Minimum Purchase Quantity for the purposes of Section 3.04.C(4)(a). D.Minimum Annual Purchase Quantity Reset. As shown on Attachment E, in Fiscal Item 17 Attachment D - CLEAN Water Supply Agreement Amendments Item 17: Staff Report Pg. 39 Packet Pg. 578 of 627 3 21645394.9 Year 2025-26, the Parties reset the then-existing Minimum Annual Purchase Quantities of the Original Minimum Purchase Customers to 80% of the average San Francisco purchases of each Customer over the four most recent non-drought years preceding Fiscal Year 2024-25, effective for Fiscal Year 2024-25. If the Parties extend the Term of this Agreement beyond June 30, 2034 pursuant to Section 2.02, the Parties will review the Minimum Annual Purchase Quantities of the Original Minimum Purchase Customers again ten years after the Fiscal Year 2025-26 reset. If the Original Minimum Purchase Customers, or San Francisco, want to propose a reset of the Minimum Annual Purchase Quantities for Fiscal Year 2035-36, they will provide written notice on or before June 30, 2034. The Parties will meet and confer promptly to evaluate written reset proposals. By November 30, 2035, if the Parties have come to an agreement, the SFPUC will calculate the revised Minimum Annual Purchase Quantities based on the agreed upon methodology and provide written notice to the Original Minimum Purchase Customers and BAWSCA. The Original Minimum Purchase Customers will have at least 15 business days to review and meet and confer with the SFPUC with any questions or concerns before the revised quantities are finalized. If the Parties are unable to come to an agreement, the then-existing Minimum Annual Purchase Quantities will remain unchanged. Any changes to the Minimum Annual Purchase Quantities under this Section 3.07.D will be reflected in a revised Attachment E approved with the written concurrence of San Francisco and BAWSCA in accordance with Section 2.03.C. The Parties intend to include a continuing, periodic review of the Minimum Annual Purchase Quantities on a ten-year schedule in the successor to this Agreement. E.Collective Minimum Annual Purchase Quantities Considered Before Application of Imputed Sales. Imputed Sales will not apply to any of the individual Original Minimum Purchase Customers in a particular fiscal year if those Customers have collectively purchased a volume of water from San Francisco that is equal to or greater than the sum of their four Minimum Annual Purchase Quantities shown in Attachment E (or adjusted for a Rebound Year pursuant to Section 3.07.C.2, if applicable). If the Original Minimum Purchase Customers do not collectively purchase that sum, any Original Minimum Purchase Customer that has not met its standard or Rebound Year-adjusted Minimum Annual Purchase Quantity will be responsible for Imputed Sales proportional to its share of the difference between that sum and the Original Minimum Purchase Customers’ total purchases from San Francisco. Examples of this calculation are contained in Attachment E-3. Item 17 Attachment D - CLEAN Water Supply Agreement Amendments Item 17: Staff Report Pg. 40 Packet Pg. 579 of 627 21428629.4 Proposed 2025 Amended and Restated Water Supply Agreement: Sections 2.03, 3.09, and 9.07, and Attachment A Definitions. 2.03. Amendments. C.Amendments to Attachments. The following attachments may be amended with the written concurrence of San Francisco and BAWSCA on behalf of the Wholesale Customers: Attachment Name C Individual Supply Guarantees (amendments reflecting Section 3.04 transfers only) E Minimum Annual Purchase Quantities (amendments reflecting Section 3.04 transfers and Section 3.07 resets only) E-1 Temporary Modified Minimum Annual Purchase Quantities G Water Quality Notification and Communications Plan (as may be amended) J Water Use Measurement and Tabulation L-1 Identification of WSIP Projects as Regional/Retail N-1 Balancing Account/Rate Setting Calculation Table N-2 Wholesale Revenue Requirement Schedules N-3 Schedule of Projected Water Sales, Wholesale Revenue Requirement and Wholesale Rates P Management Representation Letter R Classification of Existing System Assets (subject to Section 5.11) Amendments to these attachments shall be approved on behalf of San Francisco by the Commission and on behalf of BAWSCA by its Board of Directors, unless the Commission by resolution delegates such authority to the General Manager of the SFPUC or the Board of Directors by resolution delegates such authority to the General Manager/CEO of BAWSCA. Item 17 Attachment D - CLEAN Water Supply Agreement Amendments Item 17: Staff Report Pg. 41 Packet Pg. 580 of 627 21428629.4 3.09. Completion of WSIP San Francisco will complete construction of the physical facilities in the WSIP by June 30, 2032. The SFPUC agrees to provide for full public review and comment by local and state interests of any proposed changes that delay previously adopted project completion dates or that delete projects. The SFPUC shall meet and consult with BAWSCA before proposing to the Commission any changes in the scope of WSIP projects which reduce their capacity or ability to achieve adopted Level of Service Goals and Objectives. The SFPUC retains discretion to determine whether to approve the physical facilities in the WSIP until after it completes the CEQA process as set forth in Section 4.07. 9.07. City of Brisbane, Guadalupe Valley Municipal Improvement District, Town of Hillsborough A.The parties acknowledge that San Francisco has heretofore provided certain quantities of water to the City of Brisbane (“Brisbane”), Guadalupe Valley Municipal Improvement District (“Guadalupe”) and the Town of Hillsborough (“Hillsborough”) at specified rates or without charge pursuant to obligations arising out of agreements between the predecessors of San Francisco and these parties, which agreements are referred to in judicial orders, resolutions of the SFPUC and/or the 1960 contracts between San Francisco and Brisbane, Guadalupe and Hillsborough. The parties intend to continue those arrangements and accordingly agree as follows: 1.Nothing in this Agreement is intended to alter, amend or modify the terms of SFPUC Resolution No. 74-0053 or the indenture of July 18, 1908 between the Guadalupe Development Company and the Spring Valley Water Company. 2.Nothing in this Agreement is intended to alter, amend or modify the Findings of Fact and Conclusions of Law and Judgment dated May 25, 1961 in that certain action entitled City and County of San Francisco v. Town of Hillsborough in the Superior Court of the State of California in and for the County of Marin, No. 23282, as modified by the Satisfaction of Judgment filed October 23, 1961 and the Compromise and Release between Hillsborough and San Francisco dated August 22, 1961. The rights and obligations of Hillsborough under these documents shall continue as therein set forth. 3.Nothing in this Agreement is intended to affect or prejudice any claims, rights or remedies of Guadalupe or of Crocker Estate Company, a corporation, or of Crocker Item 17 Attachment D - CLEAN Water Supply Agreement Amendments Item 17: Staff Report Pg. 42 Packet Pg. 581 of 627 21428629.4 Land Company, a corporation, or of San Francisco, or of their successors and assigns, respectively, with respect to or arising out of that certain deed dated May 22, 1884, from Charles Crocker to Spring Valley Water Works, a corporation, recorded on May 24, 1884, in Book 37 of Deeds at page 356, Records of San Mateo County, California, as amended by that certain Deed of Exchange of Easements in Real Property and Agreement for Trade in Connection Therewith, dated July 29, 1954, recorded on August 4, 1954, in Book 2628, at page 298, Official Records of said San Mateo County, or with respect to or arising out of that certain action involving the validity or enforceability of certain provisions of said deed entitled City and County of San Francisco v. Crocker Estate Company, in the Superior Court of the State of California in and for the County of Marin, No. 23281. Attachment A - Definitions “Imputed Sales” apply when a Wholesale Customer does not meet the minimum annual purchase requirements of Section 3.07.C, as shown on Attachment E and Attachment E-1, except in fiscal years in which a waiver of these requirements is in effect. Imputed Sales are calculated as the difference between (1) a Wholesale Customer’s metered water purchases during a fiscal year, from July 1 to June 30, and (2) the larger of (a) or (b) as follows: (a) the Wholesale Customer’s Minimum Annual Purchase Quantity, as specified in Attachment E and may be adjusted pursuant to Section 3.07.C.2, or (b) the Wholesale Customer’s Temporary Modified Minimum Annual Purchase Quantity, as specified in Attachment E-1 and may be adjusted pursuant to Section 3.07.C.2. If a Wholesale Customer has more than one Temporary Modified Minimum Annual Purchase Quantity, the largest quantity is used for calculating Imputed Sales. Imputed Sales are considered wholesale water usage for the purposes of calculating the Proportional Annual Use, and any fees charged for Imputed Sales are considered wholesale revenues. “Level of Service Goals and Objectives” refers to the “Phased WSIP Goals and Objectives” adopted by the Commission in Resolution No. 08-0200 dated October 30, 2008 as part of the approval of the WSIP, as updated and expanded by the "2023 Amended and Updated Water Enterprise Level of Service Goals and Objectives," adopted by the Commission in Resolution No. 23-0210 dated November 28, 2023, and any amendments that may be adopted by the Commission. Item 17 Attachment D - CLEAN Water Supply Agreement Amendments Item 17: Staff Report Pg. 43 Packet Pg. 582 of 627 21464591.6 ATTACHMENT E MINIMUM ANNUAL PURCHASE QUANTITIES (Section 3.07.C) AGENCY MINIMUM ANNUAL PURCHASE QUANTITY (IN MGD)1 Alameda County Water District 6.682 City of Milpitas 4.371 City of Mountain View 6.047 City of Sunnyvale 7.412 1 In Fiscal Year (FY) 2025-26, the then-existing Minimum Annual Purchase Quantities for Alameda County Water District and the Cities of Milpitas, Mountain View, and Sunnyvale were reset to 80% of each of those four customers’ average San Francisco purchases over the four non-drought years preceding FY 2024-25 (FY 2017-18, FY 2018-19, FY 2019-20, and FY 2020-21), effective FY 2024-25. Prior to this reset, from the effective date of this Agreement (July 1, 2009) through FY 2023-24, those four customers had the following Minimum Annual Purchase Quantities: 1. Alameda County Water District: 7.648 MGD 2. City of Milpitas: 5.341 MGD 3. City of Mountain View: 8.930 MGD 4. City of Sunnyvale: 8.930 MGD Item 17 Attachment D - CLEAN Water Supply Agreement Amendments Item 17: Staff Report Pg. 44 Packet Pg. 583 of 627 21464584.11 ATTACHMENT E-3 Item 17 Attachment D - CLEAN Water Supply Agreement Amendments Item 17: Staff Report Pg. 45 Packet Pg. 584 of 627 21464584.11 ATTACHMENT E-3 Illustrations of Imputed Sales Considering Collective Regional Water System Use by Original Minimum Purchase Customers Compared to Sum of Minimum Annual Purchase Quantities Pursuant to Section 3.07.E Scenario 1: Collective Purchases Equal to or Greater Than Sum of MAPQs1 (No Imputed Sales)2 Line #Wholesale Custome A B C D E = (D[LINE #] / D5) × (B5 - A5) MAPQ RWS3 Use (mgd) RWS Over MAPQ (mgd) RWS Under MAPQ (mgd) Proportion of Use Under Total MAPQ (mgd) 1 Alameda County Water District 6.682 7.682 1.00 N/A 2 City of Milpitas 4.371 3.871 -0.50 N/A 3 City of Mountain View 6.047 5.047 -1.00 N/A 4 City of Sunnyvale 7.412 7.912 0.50 N/A 5 Total 24.512 24.512 1.50 -1.50 N/A Scenario 2: Collective Purchases Less Than Sum of MAPQs (by 1.0 mgd) (Imputed Sales)4 Line #Wholesale Custome A B C D E = (D[LINE #] / D5) × (B5 - A5) MAPQ RWS Use (mgd) RWS Over MAPQ (mgd) RWS Under MAPQ (mgd) Proportion of Use Under Total MAPQ (mgd) 1 Alameda County Water District 6.682 7.182 0.50 N/A 2 City of Milpitas 4.371 3.871 -0.50 -0.25 3 City of Mountain View 6.047 4.547 -1.50 -0.75 4 City of Sunnyvale 7.412 7.912 0.50 N/A 5 Total 24.512 23.512 1.00 -2.00 -1.0 1 Minimum Annual Purchase Quantity (MAPQ) 2 In Scenario 1, the Original Minimum Purchase Customers’ collective purchases from San Francisco in a particular fiscal year (Line 5B) are equal to the sum of their Minimum Annual Purchase Quantities (Line 5A). Therefore, no Imputed Sales are applied to individual Original Minimum Purchase Customers that purchased less than their individual Minimum Annual Purchase Quantities (in this scenario, Milpitas and Mountain View). 3 Regional Water System (RWS) 4 In Scenario 2, the Original Minimum Purchase Customers’ collective purchases from San Francisco in a particular fiscal year (Line 5B) are 1.0 mgd less than the sum of their Minimum Annual Purchase Quantities (Line 5A). Therefore, Imputed Sales are applied proportionally to any individual Original Minimum Purchase Customer that purchased less than its individual Minimum Annual Purchase Quantity (in this scenario, Milpitas and Mountain View), so that customer is responsible for its share of the difference between the sum of all Minimum Annual Purchase Quantities (Line 5A) and the collective amount of RWS use (Line 5B). In this scenario, Mountain View is responsible for 75% and Milpitas is responsible for 25% of the 1.0 mgd difference between Line 5A and Line 5B. Item 17 Attachment D - CLEAN Water Supply Agreement Amendments Item 17: Staff Report Pg. 46 Packet Pg. 585 of 627 21464584.11 Scenario 3: Collective Purchases Equal to or Greater Than Sum of MAPQs with Rebound Yea -Adjusted MAPQs (No Imputed Sales)5 Line # Wholesale Custome A B C = A - ((A[LINE #] - B[LINE #]) / 2) D E F G = (F[LINE #] / F5) × (D5 - C5) MAPQ RWS Use in Waiver’s Final Yea Rebound Year-Adjusted MAPQ RWS Use (mgd) RWS Over Rebound Year- Adjusted MAPQ (mgd) RWS Under Rebound Year- Adjusted MAPQ (mgd) Proportion of Use Under Total Rebound Year-Adjusted MAPQ (mgd) 1 Alameda County Water District 6.682 5.682 6.182 7.512 1.33 N/A 2 City of Milpitas 4.371 3.371 3.871 3.591 -0.28 N/A 3 City of Mountain View 6.047 5.047 5.547 4.847 -0.70 N/A 4 City of Sunnyvale 7.412 6.412 6.912 7.782 0.87 N/A 5 Total 24.512 20.512 22.512 23.732 2.20 -0.98 N/A 5 In Scenario 3, the Original Minimum Purchase Customers’ collective purchases from San Francisco in a particular fiscal year (Line 5D) are greater than the sum of their Rebound Year-adjusted Minimum Annual Purchase Quantities that are currently in effect pursuant to Section 3.07.C.2 (Line 5C). Therefore, no Imputed Sales are applied to individual Original Minimum Purchase Customers that purchased less than their individual Rebound Year-adjusted Minimum Annual Purchase Quantities (in this scenario, Milpitas and Mountain View). Item 17Attachment D - CLEANWater Supply AgreementAmendments Item 17: Staff Report Pg. 47 Packet Pg. 586 of 627 1 21606945.9 ATTACHMENT H WATER SHORTAGE ALLOCATION PLAN This Water Shortage Allocation Plan (“Plan”), also known as the Tier 1 Shortage Plan, describes the method for allocating water between the San Francisco Public Utilities Commission (“SFPUC”), on the one hand, and the Wholesale Customers collectively, on the other, during shortages caused by drought. The Plan also implements a method for allocating water among the individual Wholesale Customers, known as the Tier 2 Drought Response Implementation Plan (“Tier 2 Plan”), which has separately been adopted by the Wholesale Customers and does not include the SFPUC. The Plan includes provisions for transfers, banking, and excess use charges. The Plan applies only when the SFPUC determines that a system-wide water shortage due to drought exists, and all references to “shortages” and “water shortages” are to be so understood. This Plan was initially adopted pursuant to Section 7.03(a) of the 1984 Settlement Agreement and Master Water Sales Contract and has been incorporated and updated to correspond to the terminology used in the 2009 Water Supply Agreement between the City and County of San Francisco and Wholesale Customers in Alameda County, San Mateo County and Santa Clara County (“Agreement”), as amended and restated from time to time. SECTION 1. SHORTAGE CONDITIONS 1.1. Projected Available SFPUC Water Supply. The SFPUC shall make an annual determination as to whether or not a shortage condition exists. The determination of projected available water supply shall consider, among other things, stored water, projected runoff, water acquired by the SFPUC from non- SFPUC sources, inactive storage, reservoir losses, allowance for carryover storage, and water bank balances, if any, described in Section 3. 1.2 Projected SFPUC Customer Purchases. The SFPUC will utilize purchase data, including volumes of water purchased by the Wholesale Customers and by Retail Customers (as those terms are used in the Agreement) in the year immediately prior to the drought, along with other available relevant information, as a basis for determining projected system-wide water purchases from the SFPUC for the upcoming Supply Year (defined as the period from July 1 through June 30). 1.3. Shortage Conditions. The SFPUC will compare the projected available water supply (Section 1.1) with projected system-wide water purchases (Section 1.2). A shortage condition exists if the SFPUC determines that the projected available water supply is less than projected system-wide water purchases in the upcoming Supply Year. When a shortage condition exists, SFPUC will determine whether voluntary or mandatory actions will be required to reduce purchases of SFPUC water to required levels. 1.3.1 Voluntary Response. If the SFPUC determines that voluntary actions will be sufficient to accomplish the necessary reduction in water use throughout its service area, the SFPUC and the Wholesale Customers will make good faith efforts to reduce their water purchases to stay within their annual Tier 1 and Tier 2 allocations as applicable (see Section 2 of this Attachment H) and associated monthly water use budgets. The SFPUC will not impose excess use charges during periods of voluntary rationing, but may suspend the prospective accumulation of water bank credits, or impose a ceiling on further accumulation of bank credits, consistent with Section 3.2.1 of this Plan. 1.3.2 Mandatory Response. If the SFPUC determines that mandatory actions will be required to accomplish the necessary reduction in water use in the SFPUC service area, the SFPUC may implement excess use charges as set forth in Section 4 of this Plan. 1.4. Period of Shortage. A shortage period commences when the SFPUC determines that a water shortage exists, as set forth in a declaration of water shortage emergency issued by the SFPUC pursuant to Item 17 Attachment D - CLEAN Water Supply Agreement Amendments Item 17: Staff Report Pg. 48 Packet Pg. 587 of 627 2 21606945.9 California Water Code Sections 350 et seq. Termination of the water shortage emergency will be declared by resolution of the SFPUC. SECTION 2. SHORTAGE ALLOCATIONS 2.1. Annual Tier 1 Allocations between the SFPUC and the Wholesale Customers. The annual water supply available during shortages will be allocated between the SFPUC and the collective Wholesale Customers as follows: Level of System Wide Reduction in Water Use Required Share of Available Water SFPUC Share Wholesale Customers Share 5% or less 6% through 10% 11% through 15% 16% through 20% 35.5% 36.0% 37.0% 37.5% 64.5% 64.0% 63.0% 62.5% This Plan refers to the SFPUC’s and Wholesale Customers’ respective shares of available water so established as the SFPUC’s and Wholesale Customers’ Tier 1 allocations. The water allocated to the SFPUC shall correspond to the total allocation for all Retail Customers. In the event that the SFPUC share of the available water supply in the above table results in Retail Customers having a positive allocation (i.e., a supply of additional water rather than a required percentage reduction in water use), the SFPUC’s percentage share of the available water supply in the table shall be reduced to eliminate any positive allocation to Retail Customers, with a corresponding increase in the percentage share of the available water supply allocated to the Wholesale Customers. For any level of required reduction in system-wide water use during shortages, the SFPUC shall require Retail Customers to conserve a minimum of 5%, with any resulting reallocated supply credited to storage for inclusion in calculation of projected available water SFPUC water supply in a subsequent year (Section 1.1). The parties agree to reevaluate the percentages of the available water supply allocated to Retail and Wholesale Customers by May 1, 2028. 2.2 Annual Tier 2 Allocations among the Wholesale Customers. The annual water supply allocated to the Wholesale Customers collectively during system wide shortages of 20 percent or less (i.e., the Wholesale Customers’ Tier 1 allocation) will be apportioned among them based on a methodology, known as the Tier 2 Plan, that has been separately adopted by all of the Wholesale Customers, and not the SFPUC, as described in Section 3.11(C) of the Agreement. In any year for which the methodology must be applied, the Bay Area Water Supply and Conservation Agency (“BAWSCA”) will calculate each Wholesale Customer’s individual percentage share of the amount of water allocated to the Wholesale Customers collectively pursuant to Section 2.1. Following the declaration or reconfirmation of a water shortage emergency by the SFPUC, BAWSCA will deliver to the SFPUC General Manager a list, signed by the President of BAWSCA’s Board of Directors and its General Manager, showing each Wholesale Customer together with its percentage share and stating that the list has been prepared in accordance with the methodology adopted by the Wholesale Customers. The SFPUC shall allocate water to each Wholesale Customer, as specified in the list. The shortage allocations so established (known as Tier 2 allocations) may be transferred as provided in Section 2.5 of this Plan. If BAWSCA or all Wholesale Customers do not provide the SFPUC with individual allocations, the SFPUC may make a final allocation decision after first meeting and discussing allocations with BAWSCA and the Wholesale Customers. Item 17 Attachment D - CLEAN Water Supply Agreement Amendments Item 17: Staff Report Pg. 49 Packet Pg. 588 of 627 3 21606945.9 The Tier 2 Plan methodology adopted by the Wholesale Customers utilizes the rolling average of each individual Wholesale Customer’s purchases from the SFPUC during the three immediately preceding Supply Years. The SFPUC agrees to provide BAWSCA by November 1 of each year a list showing the amount of water purchased by each Wholesale Customer during the immediately preceding Supply Year. The list will be prepared using Customer Service Bureau report MGT440 (or comparable official record in use at the time), adjusted as required for any reporting errors or omissions, and will be transmitted by the SFPUC General Manager or his designee. 2.3. Limited Applicability of Plan to System Wide Shortages Greater Than Twenty Percent. The Tier 1 allocations of water between the SFPUC and the Wholesale Customers collectively, provided for in Section 2.1, apply only to shortages of 20 percent or less. The SFPUC and Wholesale Customers recognize the possibility of a drought occurring which could create system-wide shortages greater than 20 percent despite actions taken by the SFPUC aimed at reducing the probability and severity of water shortages in the SFPUC service area. If the SFPUC determines that a system wide water shortage greater than 20 percent exists, the SFPUC and the Wholesale Customers agree to meet within 10 days and discuss whether a change is required to the allocation set forth in Section 2.1 in order to mitigate undue hardships that might otherwise be experienced by individual Wholesale Customers or Retail Customers. Following these discussions, the Tier 1 allocations set forth in Section 2.1 of this Plan, or a modified version thereof, may be adopted by mutual written consent of the SFPUC and the Wholesale Customers. If the SFPUC and Wholesale Customers meet and cannot agree on an appropriate Tier 1 allocation within 30 days of the SFPUC’s determination of water shortage greater than 20 percent, then (1) the provisions of Section 3.11(C) of the Agreement will apply, unless (2) all of the Wholesale Customers direct in writing that a Tier 2 allocation methodology agreed to by them be used to apportion the water to be made available to the Wholesale Customers collectively, in lieu of the provisions of Section 3.11(C). The provisions of this Plan relating to transfers (in Section 2.5), banking (in Section 3), and excess use charges (in Section 4) shall continue to apply during system-wide shortages greater than 20 percent. 2.4. Monthly Water Budgets. Within 10 days after adopting a declaration of water shortage emergency, the SFPUC will determine the amount of Tier 1 water allocated to the Wholesale Customers collectively pursuant to Section 2.1. The SFPUC General Manager, using the Tier 2 allocation percentages shown on the list delivered by BAWSCA pursuant to Section 2.2, will calculate each Wholesale Customer’s individual annual Tier 2 allocation. The SFPUC General Manager, or his designee, will then provide each Wholesale Customer with a proposed schedule of monthly water budgets based on the pattern of monthly water purchases during the Supply Year immediately preceding the declaration of shortage (the “Default Schedule”). Each Wholesale Customer may, within two weeks of receiving its Default Schedule, provide the SFPUC with an alternative monthly water budget that reschedules its annual Tier 2 allocation over the course of the succeeding Supply Year. If a Wholesale Customer does not deliver an alternative monthly water budget to the SFPUC within two weeks of its receipt of the Default Schedule, then its monthly budget for the ensuing Supply Year shall be the Default Schedule proposed by the SFPUC. Monthly Wholesale Customer water budgets will be derived from annual Tier 2 allocations for purposes of accounting for excess use. Monthly Wholesale Customer water budgets shall be adjusted during the year to account for transfers of shortage allocation under Section 2.5 and transfers of banked water under Section 3.4. 2.5. Transfers of Shortage Allocations. Voluntary transfers of shortage allocations between the SFPUC and any Wholesale Customers, and between any Wholesale Customers, will be permitted using the same procedure as that for transfers of banked water set forth in Section 3.4. The SFPUC and BAWSCA shall be notified of each transfer. Transfers of shortage allocations shall be deemed to be an emergency transfer and shall become effective on the third business day after notice of the transfer has been delivered to the SFPUC. Transfers of shortage allocations shall be in compliance with Section 3.05 of the Item 17 Attachment D - CLEAN Water Supply Agreement Amendments Item 17: Staff Report Pg. 50 Packet Pg. 589 of 627 4 21606945.9 Agreement. The transferring parties will meet with the SFPUC, if requested, to discuss any effect the transfer may have on its operations. SECTION 3. SHORTAGE WATER BANKING 3.1. Water Bank Accounts. The SFPUC shall create a water bank account for itself and each Wholesale Customer during shortages in conjunction with its resale customer billing process. Bank accounts will account for amounts of water that are either saved or used in excess of the shortage allocation for each agency; the accounts are not used for tracking billings and payments. When a shortage period is in effect (as defined in Section 1.4), the following provisions for bank credits, debits, and transfers shall be in force. A statement of bank balance for each Wholesale Customer will be included with the SFPUC’s monthly water bills. 3.2. Bank Account Credits. Each month, monthly purchases will be compared to the monthly budget for that month. Any unused shortage allocation by an agency will be credited to that agency’s water bank account. Credits will accumulate during the entire shortage period, subject to potential restrictions imposed pursuant to Section 3.2.1. Credits remaining at the end of the shortage period will be zeroed out; no financial or other credit shall be granted for banked water. 3.2.1. Maximum Balances. The SFPUC may suspend the prospective accumulation of credits in all accounts. Alternatively, the SFPUC may impose a ceiling on further accumulation of credits in water bank balances based on a uniform ratio of the bank balance to the annual water allocation. In making a decision to suspend the prospective accumulation of water bank credits, the SFPUC shall consider the available water supply as set forth in Section 1.1 of this Plan and other reasonable, relevant factors. 3.3. Account Debits. Each month, monthly purchases will be compared to the budget for that month. Purchases in excess of monthly budgets will be debited against an agency’s water bank account. Bank debits remaining at the end of the fiscal year will be subject to excess use charges (see Section 4). 3.4. Transfers of Banked Water. In addition to the transfers of shortage allocations provided for in Section 2.5, voluntary transfers of banked water will also be permitted between the SFPUC and any Wholesale Customer, and among the Wholesale Customers. The volume of transferred water will be credited to the transferee’s water bank account and debited against the transferor’s water bank account. The transferring parties must notify the SFPUC and BAWSCA of each transfer in writing (so that adjustments can be made to bank accounts), and will meet with the SFPUC, if requested, to discuss any affect the transfer may have on SFPUC operations. Transfers of banked water shall be deemed to be an emergency transfer and shall become effective on the third business day after notice of the transfer has been delivered to the SFPUC. If the SFPUC incurs extraordinary costs in implementing transfers, it will give written notice to the transferring parties within ten (10) business days after receipt of notice of the transfer. Extraordinary costs means additional costs directly attributable to accommodating transfers and which are not incurred in non-drought years nor simply as a result of the shortage condition itself. Extraordinary costs shall be calculated in accordance with the procedures in the Agreement and shall be subject to the disclosure and auditing requirements in the Agreement. In the case of transfers between Wholesale Customers, such extraordinary costs shall be considered to be expenses chargeable solely to individual Wholesale Customers and shall be borne equally by the parties to the transfer. In the case of transfers between the SFPUC and a Wholesale Customer, the SFPUC’s share of any extraordinary transfer costs shall not be added to the Wholesale Revenue Requirement. 3.4.1. Transfer Limitations. The agency transferring banked water will be allowed to transfer no more than the accumulated balance in its bank. Transfers of estimated prospective banked credits and the “overdrafting” of accounts shall not be permitted. The price of transfer water originally derived from the SFPUC system is to be determined by the transferring parties and is not specified herein. Transfers of banked water shall be in compliance with Section 3.05 of the Agreement. Item 17 Attachment D - CLEAN Water Supply Agreement Amendments Item 17: Staff Report Pg. 51 Packet Pg. 590 of 627 5 21606945.9 SECTION 4. WHOLESALE EXCESS USE CHARGES 4.1. Amount of Excess Use Charges. Monthly excess use charges shall be determined by the SFPUC at the time of the declared water shortage consistent with the calendar in Section 6 and in accordance with Section 6.03 of the Agreement. The excess use charges will be in the form of multipliers applied to the rate in effect at the time the excess use occurs. The same excess use charge multipliers shall apply to the Wholesale Customers and all Retail Customers. The excess use charge multipliers apply only to the charges for water delivered at the rate in effect at the time the excess use occurred. 4.2 Monitoring Suburban Water Use. During periods of voluntary rationing, water usage greater than a customer’s allocation (as determined in Section 2) will be indicated on each SFPUC monthly water bill. During periods of mandatory rationing, monthly and cumulative water usage greater than a Wholesale Customer’s shortage allocation and the associated excess use charges will be indicated on each SFPUC monthly water bill. 4.3. Suburban Excess Use Charge Payments. An annual reconciliation will be made of monthly excess use charges according to the calendar in Section 6. Annual excess use charges will be calculated by comparing total annual purchases for each Wholesale Customer with its annual shortage allocation (as adjusted for transfers of shortage allocations and banked water, if any). Excess use charge payments by those Wholesale Customers with net excess use will be paid according to the calendar in Section 6. The SFPUC may dedicate excess use charges paid by Wholesale Customers toward the purchase of water from the State Drought Water Bank or other willing sellers in order to provide additional water to the Wholesale Customers. Excess use charges paid by the Wholesale Customers constitute Wholesale Customer revenue and shall be included within the SFPUC's annual Wholesale Revenue Requirement calculation. 4.4. Tier 1 Family Plan. During periods of mandatory rationing, the SFPUC will not assess excess use charges on any of the Wholesale Customers if the Wholesale Customers’ collective cumulative purchases over the course of the Supply Year are less than the Wholesale Customers’ Tier 1 allocation, as set forth in Section 2.1. If the Wholesale Customers’ collective cumulative purchases exceed the Wholesale Customers’ Tier 1 allocation, the SFPUC shall assess excess use charges on each individual Wholesale Customer that exceeded its individual Tier 2 allocation (established in accordance with Section 2.2) over the course of the Supply Year in proportion to each individual Wholesale Customer’s share of the collective Wholesale Customers’ purchases that exceeded the Wholesale Customers’ Tier 1 allocation. SECTION 5. GENERAL PROVISIONS GOVERNING WATER SHORTAGE ALLOCATION PLAN 5.1. Construction of Terms. This Plan is for the sole benefit of the parties and shall not be construed as granting rights to any person other than the parties or imposing obligations on a party to any person other than another party. 5.2. Governing Law. This Plan is made under and shall be governed by the laws of the State of California. 5.3. Effect on Agreement. This Plan describes the method for allocating water between the SFPUC and the collective Wholesale Customers during system-wide water shortages of 20 percent or less. This Plan also provides for the SFPUC to allocate water among the Wholesale Customers in accordance with directions provided by the Wholesale Customers through BAWSCA under Section 2.2, and to implement a program by which such allocations may be voluntarily transferred among the Wholesale Customers. The provisions of this Plan are intended to implement Section 3.11(C) of the Agreement and do not affect, change or modify any other section, term or condition of the Agreement. Item 17 Attachment D - CLEAN Water Supply Agreement Amendments Item 17: Staff Report Pg. 52 Packet Pg. 591 of 627 6 21606945.9 5.4. Inapplicability of Plan to Allocation of SFPUC System Water During Non-Shortage Periods. The SFPUC’s agreement in this Plan to a respective share of SFPUC system water during years of shortage shall not be construed to provide a basis for the allocation of water between the SFPUC and the Wholesale Customers when no water shortage emergency exists. 5.5. Termination. This Plan shall expire at the end of the Term of the Agreement. The SFPUC and the Wholesale Customers can mutually agree to revise or terminate this Plan prior to that date due to changes in the water delivery capability of the SFPUC system, the acquisition of new water supplies, and other factors affecting the availability of water from the SFPUC system during times of shortage. SECTION 6. ALLOCATION CALENDAR 6.1. Annual Schedule. The annual schedule for the shortage allocation process is shown below. This schedule may be changed by the SFPUC to facilitate implementation. 6.1.1 In All Years Target Dates 1. SFPUC delivers list of annual purchases by each Wholesale Customer during the immediately preceding Supply Year November 1 2. SFPUC meets with the Wholesale Customers and presents water supply forecast for the following Supply Year February 3. SFPUC issues initial estimate of available water supply February 1 4. SFPUC announces potential first year of drought (if applicable) February 1 5. SFPUC and Wholesale Customers meet upon request to exchange information concerning water availability and projected system- wide purchases February 1-May 31 6. SFPUC issues revised estimate of available water supply, and confirms continued potential shortage conditions, if applicable March 1 7. SFPUC issues final estimate of available water supply April 15th or sooner if adequate snow course measurement data is available to form a robust estimate on available water supply for the coming year. 8. SFPUC determines amount of water available to Wholesale Customers collectively April 15th or sooner if adequate snow course measurement data is available to form a robust estimate on available water supply for the coming year. In Drought Years Target Dates 9. SFPUC formally declares the existence of water shortage emergency (or end of water shortage emergency, if applicable) under Water Code Sections 350 et. seq. April 15-30 10. SFPUC declares the need for a voluntary or mandatory response April 15-30 11. BAWSCA submits calculation to SFPUC of individual Wholesale Customers’ percentage shares of water allocated to Wholesale Customers collectively April 15- 30 Item 17 Attachment D - CLEAN Water Supply Agreement Amendments Item 17: Staff Report Pg. 53 Packet Pg. 592 of 627 7 21606945.9 12. SFPUC determines individual shortage allocations, based on BAWSCA’s submittal of individual agency percentage shares to SFPUC, and monthly water budgets (Default Schedule) April 25—May 10 13. Wholesale Customers submit alternative monthly water budgets (optional) May 8-May 24 14. Final drought shortage allocations are issued for the Supply Year beginning July 1 through June 30 June 1 15. Monthly water budgets become effective July 1 16. Excess use charges indicated on monthly Suburban bills August 1 (of the beginning year) through June 30 (of the succeeding year) 17. Excess use charges paid by Wholesale Customers for prior year August of the succeeding year Item 17 Attachment D - CLEAN Water Supply Agreement Amendments Item 17: Staff Report Pg. 54 Packet Pg. 593 of 627 City Council Staff Report From: City Manager Report Type: INFORMATION REPORTS Lead Department: City Manager Meeting Date: August 11, 2025 Report #:2507-4979 TITLE City Council Summer Recess Report RECOMMENDATION Informational report only. EXECUTIVE SUMMARY This informational report provides a brief update on notable activities and work throughout the City Council’s July recess. BACKGROUND The annual Summer Recess Report shares updates, organized by department, on activities accomplished during the City Council recess. This report is not an exhaustive list of staff activities. The updates are to inform the City Council and public about items completed since the last City Council meeting of the fiscal year and other efforts underway. ANALYSIS Administrative Services Department End of Fiscal Year and New Fiscal Year Activities Staff focused on transitioning into the next fiscal year. Closing FY 2025 is underway. The annual inventory of both warehouses, the Municipal Services Center and Regional Water Quality Control Plant, are complete. The Office of Management and Budget published the FY 2026 Municipal Fee Schedule and both the FY 2026 Adopted Operating and Capital Budget books. Recruitment & Employee Recognition Item A Item A Staff Report Item A: Staff Report Pg. 1 Packet Pg. 594 of 627 A key department recruitment for the role of Finance Manager was completed with new staff starting mid-July. An ASD Employee Recognition event was held, awarding six employees with 5- and 10-year service certificates. Procurement Real Estate Roth Building CalPERS Update 5.8% for the period ending June 30, 2023 (impact in FY 2026) 9.3% for the period ending June 30, 2024 (impact in FY 2027) 11.6% for the period ending June 30, 2025 (impact in FY 2028) City Manager’s Office Palo Alto Homekey Progress Item A Item A Staff Report Item A: Staff Report Pg. 2 Packet Pg. 595 of 627 Homekey Palo Alto made steady progress with initial modular unit setting in late June, followed by other construction tasks such as stair and decking installation through the summer. The project team is estimating construction completion by early 2026, following impacts with construction delays, navigating unique challenges associated with modular construction. A strategic shift in modular production from a planned facility in Tracy, CA to subcontractor VBC’s main manufacturing factory in Berwick, PA was made to prioritize quality. This adjustment, while slowing progress, resulted in enhanced quality. Staff worked closely with the California Department of Housing and Community Development (HCD) to minimize impacts related to state timing regulations on funding. Point-in-Time (PIT) Count In late June, the County released preliminary data (City-specific data is expected later this summer) from the January 2025 point-in-time (PIT) count of people experiencing homelessness. The PIT count provides a snapshot of the number of people experiencing homelessness, as observed by volunteers, on a particular day. Preliminary numbers show an 8.2% overall increase of individuals experiencing homelessness in Santa Clara County, rising to approximately 10,711 people. The total number of unsheltered people experiencing homelessness remained relatively steady, with an increase of 71 people, about 1% change. In contrast, the sheltered population saw a notable rise, with over 700 more individuals counted in emergency shelters and temporary housing compared to the 2023 count. This preliminary data is not surprising--- although countywide advancement continues in both housing people and homelessness prevention1, more people are entering homelessness than exiting. Oversized Vehicles Discussion Planned for Policy and Services Committee in August. Annual Community Survey Community Services Department Summer Camps 1 Between the January 2023 and January 2025 count, more than 8,000 people were housed. There was a net increase of 364 shelter beds, and 2,500 households were reached annually by the Homelessness Prevention System. Item A Item A Staff Report Item A: Staff Report Pg. 3 Packet Pg. 596 of 627 This summer, Community Services offered a total of 323 camps. There are 3,889 campers enrolled out of 5,576 available spots, with 2,640 on waitlists for various camps. Total revenue as of July 21: $1,805,454. Summer Camp 2025 season ends August 8. The highest demand camps this year include Zoo Camp, The Art of European Baking & What's for Brunch?, Two- Week Theatre Academy, Ceramics for Kids, and a newly introduced Woodworking Outdoor Camp. Recreation th of July Chili Cook Off was held showcasing community connection and chili tasting. Nine teams, four returning and five new, competed for several prizes including People’s Choice, Best Vegetarian Chili, Best Decorations, and Most Spirit; the Palo Alto Firefighters took the top prize. Judges voted for first, second, and third place awards. Staff and volunteers gave out about 2,000 chili stamp cards and over 1,000 attendees voted for their favorite chili in the People’s Choice category, a 50% increase of people who voted last year. Human Services Public Art Program Toward the Then and There, on King Plaza. A community celebration was held on June 26 featuring a live DJ and drag performances. The sculpture features images and audio clips of community members who participated in the project. The sculpture is expected to remain in place into 2026. The next artist residency launched with Kiana Honarmand, who is focusing on Black, Indigenous, and People of Color (BIPOC) and immigrant members of the community. Cubberley Artist Studio Program Item A Item A Staff Report Item A: Staff Report Pg. 4 Packet Pg. 597 of 627 Palo Alto Art Center The Art Center’s summer camps welcomed 638 campers, generating $226,645 in revenue, with 81 Counselors in Training and 14 Lead Counselors in Training. is this year’s summer exhibition and launches the year-long Centering: Clay and Community initiative celebrating the Art Center’s role as a resource for ceramic art and education. This juried exhibition features several Art Center teaching artists and current and former students. The Art Center also has eight interns and fellows supporting camps and other programs from colleges throughout the country. The Association of Clay and Glass Artists brought the Clay and Glass Festival to the Art Center for another successful celebration on July 12 and 13, drawing well over 10,000 people. The Capital Improvement Project to enhance the Center’s ceramic facility was completed, enhancing safety and access to kilns for both the adult studio program and the kids and teens program. This project involved the creation of newly accessible weatherproofing structures for the electric kilns along with equipment to support these programs. The Art Center’s Studio Program Director Fanny Retsek and Studio Technician Rick Stoner are both retiring after a collective 30-plus years of service to the City of Palo Alto. Fanny Retsek oversaw the Adult Studio Program for ten years, helping to expand class offerings (now every single day of the week) and staffing capacity for the studios. Rick Stoner contributed more than two decades to the Art Center in his role to support studio facilities, staffing evening classes and helping to keep our kilns running. The Summer Hot Dog Series produced Dragons Love Tacos and the upcoming Hansel & Gretel. The sold-out productions served more than 6,000 community members, and each production included a Magical Series Spectrum Friendly and ASL-Interpreted performances. In July, the theatre started rehearsals for the third Summer Hot Dog production, Honk Jr., with performances beginning in September. The Children’s Theatre formed an agreement with the Palo Alto Unified School District to bring Joy of Singing and Joy of Musical Theatre classes to all twelve elementary schools during the 2025-2026 school year. This program will serve an estimated 2,717 students and will be part of a sequential performing arts education program. The Teen Arts Council closed out the school year with WaveFest, an outdoor music and art festival for teens, held in Mitchell Park on June 6. This year’s festival included teen bands, dance companies, student vendors and clubs, local community groups, plus Palo Alto’s Teen Item A Item A Staff Report Item A: Staff Report Pg. 5 Packet Pg. 598 of 627 Library Advisory Board (TLAB) and Art Center Teen Leadership. More than 250 teens attended the event. Palo Alto Junior Museum & Zoo (JMZ) Therapeutic Recreation & Accessibility Item A Item A Staff Report Item A: Staff Report Pg. 6 Packet Pg. 599 of 627 Staff supported 17 accommodation requests for summer camp participants, helping ensure inclusive access and participation across CSD programs. Open Space Parks Cubberley Community Center Project Public Art Commission – June 19 Parks and Recreation Commission – June 24 Planning and Transportation Commission – July 9 (with Concordia) Architectural Review Board – July 17 (with Concordia) Item A Item A Staff Report Item A: Staff Report Pg. 7 Packet Pg. 600 of 627 Staff are actively collecting feedback from key stakeholders on the Strategic Activation Plan for the Cubberley site, which included a dedicated session with Cubberley tenants. The revised Activation Plan will be reviewed by the City Council Cubberley Ad Hoc Committee on August 5. Human Resources Department Library Department Office of Transportation Item A Item A Staff Report Item A: Staff Report Pg. 8 Packet Pg. 601 of 627 Safety improvements at specific intersections will be evaluated throughout the year. Office of Transportation staff are prioritizing crossing locations for potential changes and enforcement emphasis, with evaluation based on locations with injury collision history along pedestrian and bicycle corridors included in the newly adopted Safe Streets for All Action Plan. The Palo Alto Police Department is handling enforcement as community reports are shared with education as the primary focus and warning citations issued initially. Drivers can play a major role by yielding to pedestrians and parking at least 20 feet from the approach side of an intersection. Learn more and report issues here. Caltrans El Camino Real Pavement Rehabilitation & ADA Improvements sr82pave@dot.ca.gov. Quiet Zones Palo Alto Avenue Crossing The City’s Public Works Department awarded a construction contract to install necessary improvements for implementing a Quiet Zone at the Palo Alto Avenue crossing. Once construction is complete, staff will coordinate with Caltrain and the Federal Railroad Administration to issue the notice of implementation and officially activate the Quiet Zone. The construction schedule is being finalized. Churchill Avenue, Meadow Drive, and Charleston Road Crossings Staff will present the study findings and proposed Quiet Zone alternatives to the Rail Committee for review and to receive directions on next steps in September. Rail Grade Separation Office of Emergency Services Item A Item A Staff Report Item A: Staff Report Pg. 9 Packet Pg. 602 of 627 Wildfire Table-Top Exercise OES staff co-hosted a wildfire table-top exercise with Utilities on June 25 focused on water services. Participants included members of the water, gas, wastewater, electric, and administrative divisions who discussed their response in a wildfire scenario. This event also included an overview of the LA fires by Pasadena Water executive manager. The Mobile Emergency Operation Center (MEOC) command vehicle was deployed to support the Stanford Department of Public Safety for the Major League Soccer game on June 28 held at Stanford Stadium. This was the third MEOC deployment in support of stadium events in June 2025. In June, the 2025 Community Wildfire Protection Plan / Foothills Fire Management Plan was published to the City’s website. The Plan identifies risks, assesses vulnerabilities, and in the long-term is key to breaking the cycle of disaster damage, reconstruction, and repeated damage. th of July Safety Watch The City lead the 4th of July Safety Watch, an annual event involving public safety agencies such as CAL FIRE, California Highway Patrol, open space rangers, and Emergency Services Volunteers. The goals of the event are to coordinate resources and facilitate readiness in case of a wildland fire, major crime, or other significant safety event during the Independence Day holiday. Palo Alto OES is the lead agency for the Safety Watch. Planning & Development Services Department On June 12, Santa Clara County released a Notice of Preparation (NOP) for a Subsequent Environmental Impact Report (SEIR) for Lehigh Permanente Quarry’s proposed 2023 Reclamation Plan Amendment. After the public comment period ended on July 14, the County proceeded to prepare the SEIR. City staff is in communication with the County regarding the environmental review and the 2023 Major Reclamation Plan Amendment entitlement processing, given that the two western parcels of the quarry lie within City limits and are zoned as Open Space (OS). The City held a second Community Workshop for the Downtown Housing Plan on June 18. Approximately 25 attendees participated in the interactive group exercise and provided valuable input on areas to consider for greater or lesser change within the project area. The Item A Item A Staff Report Item A: Staff Report Pg. 10 Packet Pg. 603 of 627 project’s Citizen’s Advisory Committee also held a meeting on July 1 to discuss feedback received at the workshops and next steps. The project team is refining the feasibility analysis prepared as a part of the assessment. The findings will be presented to the City Council with preliminary recommendations anticipated in fall 2025. 400 Mitchell Lane review by Planning & Transportation Commission (PTC) Mountain View Multi-Family Development Standards 3150 El Camino Real Major ARB Application Approved San Antonio Road Area Plan Community Advisory Group (CAG) Formation 762 San Antonio Road Going to the Architectural Review Board Item A Item A Staff Report Item A: Staff Report Pg. 11 Packet Pg. 604 of 627 On August 7, the ARB is scheduled to conduct their first review of a Builder’s Remedy proposal for 197 housing units (20% deed restricted to below-market rates) in a seven-story building. 20% of the units will be deed restricted to below-market rates. Police Department Recruitment National Night Out Coffee with A Cop the Police Department hosted a Coffee with Cop event, in conjunction with Gregorys Coffee at Stanford Shopping Center. Dozens of community members stopped in to chat with officers and enjoy the warm weather. Rivian Patrol Vehicle Public Works Services Department Newell Road Bridge, Fire Station #4 and Hamilton Avenue System Upgrade Project Updates 445 Bryant HVAC Replacement and Space Renovation Item A Item A Staff Report Item A: Staff Report Pg. 12 Packet Pg. 605 of 627 Phase 1 interior space renovations. The construction contract for Phase 1 is being finalized, with construction anticipated to be completed by the end of October 2025. Palo Alto Airport Hosts Fully Electric Aircraft in Partnership with H55 Regional Water Quality Control Plant (RWQCP) Joint Interceptor Sewer Rehabilitation Project Local Advanced Water Purification System Zero Waste City Facility Audit Project Item A Item A Staff Report Item A: Staff Report Pg. 13 Packet Pg. 606 of 627 Utilities Department Electric Grid Modernization Project Update The electric grid modernization project pilot phase is complete. Now, 908 homes are served with upgraded facilities that include the replacement of 70 wood utility poles, 106 new transformers, and 22,650 feet of new low-voltage wire. The cost to complete the pilot area was just over $10 million with contracted labor being the largest cost. Based on lessons learned from the pilot, staff are reassessing the next phase of the project to determine how to reduce construction costs, increase capacity at substations, and build in areas where there is higher interest in home electrification. Advanced Metering Infrastructure (AMI) Utilities, Office of Emergency Services, and Police staff are coordinating to add a new AMI base station on the rooftop of City Hall to enhance connectivity and transmission of AMI meter data for downtown businesses, Stanford campus, and the Oak Creek apartments. After the new base station is installed, Utilities can convert approximately 3,000 electric meters. Staff are finalizing the voluntary residential electric time-of-use rate and developing the January 1, 2026 implementation plan. The time-of-use rate can reduce demand on the electrical grid during peak times and lead to lower electric bills if customers shift usage to off-peak hours. H.R. 1 Bill Cuts to Clean Energy Incentives H.R. 1 was signed into law on July 4, bringing with it significant cuts to clean energy and decarbonization incentives. Staff are working with the American Public Power Association (APPA), Northern California Power Agency (NCPA) and the California Municipal Utilities Association (CMUA) to understand its impacts as it relates to customer support for clean energy programs and utility-scale implications of increased costs for energy procurement and energy production development. H.R. 1 rapidly phases out or ends federal tax credits for residential and commercial energy efficiency, renewable energy projects, home improvements, and electric vehicles. The City will likely see increased energy prices within the next few years as less generation is slated to come online, and new energy projects will be more expensive. In July, staff began public outreach to utilities customers sharing incentives details before they are set to expire. Upcoming Residential Customer Satisfaction Surveys The California Municipal Utilities Association (CMUA) is conducting a statewide utility customer satisfaction survey in July and August. The survey fields responses from municipal and investor- owned utilities customers across the state, followed by an “oversample” survey of Palo Alto residents to gain greater insight into specific areas of interest for Palo Alto. This semi-annual survey allows the utilities department to measure satisfaction with and perspectives on Item A Item A Staff Report Item A: Staff Report Pg. 14 Packet Pg. 607 of 627 customer service, reliability, safety, rates, communication, and customer programs. Results will be provided to the Utilities Advisory Commission and City Council in fall 2025. Municipal Service Center (MSC) Open House Annual Consumer Confidence Report FISCAL/RESOURCE IMPACT STAKEHOLDER ENGAGEMENT o Home page o Content search landing page o Utilities Department o Careers o Register for Activities & Classes o Meeting Agendas & Minutes o Palo Alto Children’s Theatre o Creek Monitor & Camera o Enjoy! Online o Palo Alto Art Center Item A Item A Staff Report Item A: Staff Report Pg. 15 Packet Pg. 608 of 627 -Celebrate Safely, Leave the Fireworks to the Professionals -Act Fast to Save on a Heat Pump Water Heater -Fire Preparedness in Palo Alto: Safety Tips for You & Your Pets -Improving Cubberley Together: What We Heard & What’s Next -Climate Action Blog: Be Cool this Summer & Switch from Gas to Electric -Progress on Key Community Projects – July 2025 -Summer Adventures Continue in August ENVIRONMENTAL REVIEW This report is for informational purposes only with no action required by the Council and is therefore not a project subject to CEQA review. ATTACHMENTS No attachments. APPROVED BY: Ed Shikada, City Manager Item A Item A Staff Report Item A: Staff Report Pg. 16 Packet Pg. 609 of 627 City Council Staff Report Report Type: INFORMATION REPORTS Lead Department: Administrative Services Meeting Date: August 11, 2025 Report #:2412-3893 TITLE City of Palo Alto Monthly Investment Activity Report for May 2025 (Unaudited) ATTACHMENTS Attachment A - May 2025 Monthly Investment Activity Report APPROVED BY: Lauren Lai, Administrative Services Director Item B Item B Staff Report Item B: Staff Report Pg. 1 Packet Pg. 610 of 627 CITY OF PALO ALTO MONTHLY INVESTMENT ACTIVITY REPORT May 2025 (Unaudited) TO: Honorable City Council Report Posted at the City’s Website: www.cityofpaloalto.org/investmentreporting Above Link on Council Agenda of August 4, 2025 ______________________________________________________________________ The City’s Investment Policy1 (Policy) and California Government Code Section 53607 requires that a report of transactions (investments, reinvestment, sold, and exchanged securities) be made available to the Council on a monthly basis. The attached list of transactions (Attachment A) also includes, though not required by the Policy or the government code, security maturities and cash movement activity in the City’s two liquid operating cash pool accounts (Local Agency Investment Fund or LAIF and Fidelity accounts). Liquid cash are available on a daily basis but are invested by the two entities in a range of securities (e.g., treasuries, federal agencies, commercial paper, corporate bonds, time deposits, loans, and certificate of deposits/bank notes). This reporting requirement is separate and distinct from the quarterly investment report submitted under California Government Code Section 53646 that includes portfolio composition, a detailed list of all securities, performance compared to the Policy, overall compliance with the Policy, and the City’s ability to meet expenditure requirements over the next six months. Prepared by: _______________________ Tarun Narayan Mgr. Treasury, Debt & Investments ________________ Date Approved by: _______________________ Christine Paras Asst. Director ASD _________________ Date ______________________ Lauren Lai Chief Financial Officer _________________ Date 1 https://www.cityofpaloalto.org/files/assets/public/v/1/administrative‐services/investment‐policies/adopted‐investment‐policy‐1‐39‐asd.pdf Docusign Envelope ID: BD1BBA03-41B6-4333-9B8D-93B80E53B903 6/10/2025 6/10/2025 6/11/2025 Item B Attachment A - May 2025 Monthly Investment Activity Report Item B: Staff Report Pg. 2 Packet Pg. 611 of 627 City of Palo Alto Activity Report City of Palo Alto Administration Svcs. Dept. 250 Hamilton Ave., 4th FloorPalo Alto, CA 94301 (650)329-2362Sorted By Safekeeper May 1, 2025 - May 31, 2025 Current Rate Transaction Date BalanceBeginning Balance Ending Par Value Percent of Portfolio Par Value CUSIP Investment # Issuer Purchases or Deposits Redemptions or Withdrawals Safekeeper: U.S. Bank Negotiable Certificates of Deposits Mountain America FD Credit Uni2719 NCD 0.004.850 05/09/2025 249,000.0062384RAR7 Lafayette Federal Credit Union2879 NCD 0.003.100 05/27/2025 249,000.0050625LBG7 Huntington National Bank2891 NCD 0.004.800 05/05/2025 249,000.00446438SB0 MI Bank2960 NCD 0.004.750 05/01/2025 249,000.0059319LAS4 Intracoastal Bank2995 NCD 0.005.000 05/06/2025 249,000.0046117YAC2 1,245,000.0030,565,000.00 29,320,000.00Subtotal and Balance 0.00 Corporate Medium Term Bonds Apple, Inc.3129 MTN 550,000.003.350 05/01/2025 0.00037833CJ7 0.0031,300,000.00 31,850,000.00Subtotal and Balance 550,000.00 Federal Agency Bonds Federal National Mortgage Asso3056 Call 0.005.100 05/10/2025 1,500,000.003135GAWG2 Federal Home Loan Bank3128 1,660,000.004.375 05/01/2025 0.003130AV5P3 1,500,000.00205,649,000.00 205,809,000.00Subtotal and Balance 1,660,000.00 Treasury Securities (Notes) 4,500,000.00 4,500,000.00Subtotal and Balance Municipal Bonds University of California2077 MUN 0.003.050 05/15/2025 1,500,000.0091412GQG3 University of California2095 MUN 0.003.050 05/15/2025 1,000,000.0091412GQG3 San Diego Cnty Wtr Authority2600 MUN 0.000.743 05/01/2025 210,000.00797412DM2 State of Wisconsin 22822 MUN 0.005.700 05/01/2025 305,000.00977100AC0 San Diego Cnty Wtr Authority3024 MUN 0.000.743 05/01/2025 745,000.00797412DM2 3,760,000.00247,273,741.43 243,513,741.43Subtotal and Balance 0.00 Supranationals (World Bank) Bonds Intl Bk Recon & Development3130 IBRD 2,000,000.005.170 05/01/2025 0.0045906M5H0 0.0068,884,000.00 70,884,000.00Subtotal and Balance 2,000,000.00 4,210,000.00 6,505,000.00588,171,741.43 585,876,741.4389.792%Safekeeper Subtotal Portfolio CPA AP Run Date: 06/10/2025 - 05:22 DA (PRF_DA) 7.3.11 Report Ver. 7.3.11 Attachment ADocusign Envelope ID: BD1BBA03-41B6-4333-9B8D-93B80E53B903 Item B Attachment A - May 2025 Monthly Investment Activity Report Item B: Staff Report Pg. 3 Packet Pg. 612 of 627 Current Rate Transaction Date BalanceBeginning Balance Ending Par Value Page 2 Percent of Portfolio Par Value May 1, 2025 - May 31, 2025 Activity Report City of Palo Alto CUSIP Investment #Issuer Purchases or Deposits Redemptions or Withdrawals Safekeeper: Not applicable - Cash/Managed Pool Accounts LAIF & Fidelity Cash Accounts Fidelity Investments158 42,900.324.190 1,500,000.00SYS158 Local Agency Investment Fund159 14,200,000.004.270 11,650,000.00SYS159 13,150,000.0065,514,837.61 66,607,737.93Subtotal and Balance 14,242,900.32 14,242,900.32 13,150,000.0065,514,837.61 66,607,737.9310.208%Safekeeper Subtotal 653,686,579.04 652,484,479.36Total19,655,000.0018,452,900.32100.000% Portfolio CPA AP Run Date: 06/10/2025 - 05:22 DA (PRF_DA) 7.3.11 Report Ver. 7.3.11 Docusign Envelope ID: BD1BBA03-41B6-4333-9B8D-93B80E53B903 Item B Attachment A - May 2025 Monthly Investment Activity Report Item B: Staff Report Pg. 4 Packet Pg. 613 of 627 City Council Staff Report Report Type: INFORMATION REPORTS Lead Department: Administrative Services Meeting Date: August 11, 2025 Report #:2412-3894 TITLE City of Palo Alto Monthly Investment Activity Report June 2025 (Unaudited) ATTACHMENTS Attachment A: June 2025 Monthly Investment Activity Report APPROVED BY: Lauren Lai, Administrative Services Director Item C Item C Staff Report Item C: Staff Report Pg. 1 Packet Pg. 614 of 627 CITY OF PALO ALTO MONTHLY INVESTMENT ACTIVITY REPORT June 2025 (Unaudited) TO: Honorable City Council Report Posted at the City’s Website: www.cityofpaloalto.org/investmentreporting Above Link on Council Agenda of August 4, 2025 ______________________________________________________________________ The City’s Investment Policy1 (Policy) and California Government Code Section 53607 requires that a report of transactions (investments, reinvestment, sold, and exchanged securities) be made available to the Council on a monthly basis. The attached list of transactions (Attachment A) also includes, though not required by the Policy or the government code, security maturities and cash movement activity in the City’s two liquid operating cash pool accounts (Local Agency Investment Fund or LAIF and Fidelity accounts). Liquid cash are available on a daily basis but are invested by the two entities in a range of securities (e.g., treasuries, federal agencies, commercial paper, corporate bonds, time deposits, loans, and certificate of deposits/bank notes). This reporting requirement is separate and distinct from the quarterly investment report submitted under California Government Code Section 53646 that includes portfolio composition, a detailed list of all securities, performance compared to the Policy, overall compliance with the Policy, and the City’s ability to meet expenditure requirements over the next six months. Prepared by: _______________________ Tarun Narayan Mgr. Treasury, Debt & Investments ________________ Date Approved by: _______________________ Christine Paras Asst. Director ASD _________________ Date ______________________ Lauren Lai Chief Financial Officer _________________ Date 1 https://www.cityofpaloalto.org/files/assets/public/v/1/administrative‐services/investment‐policies/adopted‐investment‐policy‐1‐39‐asd.pdf Docusign Envelope ID: ECA0D5F2-29BA-4930-AB5E-7F8CE3FBB940 7/5/2025 7/7/2025 7/8/2025 Attachment A Item C Attachment A - June 2025 Monthly Investment Activity Report Item C: Staff Report Pg. 2 Packet Pg. 615 of 627 City of Palo Alto Activity Report City of Palo Alto Administration Svcs. Dept. 250 Hamilton Ave., 4th FloorPalo Alto, CA 94301 (650)329-2362Sorted By Safekeeper June 1, 2025 - June 30, 2025 Current Rate Transaction Date BalanceBeginning Balance Ending Par Value Percent of Portfolio Par Value CUSIP Investment # Issuer Purchases or Deposits Redemptions or Withdrawals Safekeeper: U.S. Bank Negotiable Certificates of Deposits Texas Exchange Bank2346 NCD 0.001.000 06/13/2025 249,000.0088241THJ2 Malaga Bank FSB2402 NCD 0.000.400 11/04/2020 249,000.0056102AAQ9 First Source Bank2754 NCD 0.005.050 06/16/2025 249,000.0033646CNJ9 Anderson Bros Bank2997 NCD 0.005.100 06/09/2025 249,000.00033537BC4 Evolve Federal Cr Union Bank3000 NCD 0.005.100 06/16/2025 249,000.0030053QAA3 1,245,000.0029,320,000.00 28,075,000.00Subtotal and Balance 0.00 Corporate Medium Term Bonds 31,850,000.00 31,850,000.00Subtotal and Balance Federal Agency Bonds 205,809,000.00 205,809,000.00Subtotal and Balance Treasury Securities (Notes) 4,500,000.00 4,500,000.00Subtotal and Balance Municipal Bonds City & County of San Francisco1509 MUN 0.005.450 06/15/2025 1,000,000.00797646NC6 City & County of San Francisco1711 MUN 0.002.290 06/15/2025 2,105,000.00797646T48 City & County of San Francisco1839 MUN 0.002.290 06/15/2025 230,000.00797646T48 Santa Cruz County Capital Fin.1907 MUN 0.002.750 06/02/2025 465,000.0080181PCU9 State of Oregon1974 MUN 0.005.892 06/03/2025 118,016.3268607LXQ5 Alameda County Joint Pws Auth.2005 MUN 0.003.365 06/02/2025 505,000.00010831DS1 State of Oregon2015 MUN 0.005.892 06/03/2025 105,019.8568607LXQ5 City of Pacifica2138 MUN 0.002.563 06/02/2025 1,015,000.0069511AAS3 State of Oregon2230 MUN 0.005.892 06/03/2025 116,863.4068607LXQ5 State of Oregon2266 MUN 0.005.892 06/03/2025 236,032.6368607LXQ5 State of Oregon2679 MUN 0.005.892 06/03/2025 236,032.6868607LXQ5 City & County of San Francisco2864 MUN 0.006.000 06/15/2025 1,000,000.0079773KKQ6 State of Oregon2977 MUN 0.005.892 06/03/2025 236,137.4468607LXQ5 7,368,102.32243,513,741.43 236,145,639.11Subtotal and Balance 0.00 Portfolio CPA AP Run Date: 07/05/2025 - 13:02 DA (PRF_DA) 7.3.11 Report Ver. 7.3.11 Attachment ADocusign Envelope ID: ECA0D5F2-29BA-4930-AB5E-7F8CE3FBB940 Attachment A Item C Attachment A - June 2025 Monthly Investment Activity Report Item C: Staff Report Pg. 3 Packet Pg. 616 of 627 Current Rate Transaction Date BalanceBeginning Balance Ending Par Value Page 2 Percent of Portfolio Par Value June 1, 2025 - June 30, 2025 Activity Report City of Palo Alto CUSIP Investment # Issuer Purchases or Deposits Redemptions or Withdrawals Safekeeper: U.S. Bank Supranationals (World Bank) Bonds 70,884,000.00 70,884,000.00Subtotal and Balance 0.00 8,613,102.32585,876,741.43 577,263,639.1187.200%Safekeeper Subtotal Safekeeper: Not applicable - Cash/Managed Pool Accounts LAIF & Fidelity Cash Accounts Fidelity Investments158 41,580.064.190 0.00SYS158 Local Agency Investment Fund159 30,090,000.004.270 12,000,000.00SYS159 12,000,000.0066,607,737.93 84,739,317.99Subtotal and Balance 30,131,580.06 30,131,580.06 12,000,000.0066,607,737.93 84,739,317.9912.800%Safekeeper Subtotal 652,484,479.36 662,002,957.10Total20,613,102.3230,131,580.06100.000% Portfolio CPA AP Run Date: 07/05/2025 - 13:02 DA (PRF_DA) 7.3.11 Report Ver. 7.3.11 Docusign Envelope ID: ECA0D5F2-29BA-4930-AB5E-7F8CE3FBB940 Attachment A Item C Attachment A - June 2025 Monthly Investment Activity Report Item C: Staff Report Pg. 4 Packet Pg. 617 of 627 City Council Staff Report From: City Manager Report Type: INFORMATION REPORTS Lead Department: Public Works Meeting Date: August 11, 2025 Report #:2507-4917 TITLE Fiscal Year 2025 Annual Evaluation Report for the Santa Clara County Multi-Jurisdictional Program for Public Information on Flood Preparedness and Awareness, and the Resulting Community Rating System Flood Insurance Discounts RECOMMENDATION This is an informational report and no Council action is required. BACKGROUND The CRS is a voluntary program under the Federal Emergency Management Agency’s (FEMA) National Flood Insurance Program that allows communities to earn flood insurance premium discounts for their residents and businesses. Communities earn CRS credit points for activities that promote flood risk reduction practices and encourage residents and businesses to purchase flood insurance. CRS Class Ratings are assigned at 500-point increments, and each improvement in Class Rating nets an additional 5% flood insurance premium discount. The CRS Class Ratings range from 1 to 10, with 10 being the lowest rating and 1 being the highest. The City of Palo Alto has participated in the CRS program since 1990 and has been rated as a Class 6 community since 2017, affording residents and businesses a 20% or 10% (outside of Special Flood Hazard Area, or SFHA) discount on their flood insurance premiums. The CRS rating was due to a significant effort on flood awareness and floodplain management by the City. Neighboring cities have earned similar ratings per FEMA’s CRS eligible community list as of April 1, 2025: East Palo Alto – 8, Los Altos – 7, Menlo Park – 8, Mountain View – 7, Sunnyvale – 7. The CRS Coordinator’s Manual includes the option to implement a regional Program for Public Information (PPI). Under the PPI, a community or group of communities work together to create and deliver customized and consistent flood risk reduction outreach messages. By disseminating these messages each community earns points that can improve their CRS rating. The number of CRS credit points earned depends on how extensive the implemented program is within each community’s boundaries. City of Palo Alto has earned up to 80 points for its PPI Item D Item D Staff Report Item D: Staff Report Pg. 1 Packet Pg. 618 of 627 efforts. City of Palo Alto residents and businesses pay $3.04 million (per FEMA data as of May 31, 2025) for flood insurance premiums per year. The total savings from the 20% insurance discount achieved by the City on behalf of its residents due to its CRS participation is approximately $607,230 per year (per FEMA data as of May 31, 2025). Without CRS, the residents and businesses would have paid $3.6 million. Palo Alto participates in the Santa Clara County Multi- Jurisdictional program to enhance the effectiveness of the flood risk messages to residents, reduce flood risks, and to maintain or improve the City’s CRS rating of 6. As required by the terms of the PPI, the regional PPI committee must convene annually to evaluate whether the flood risk reduction messages are still appropriate and adjust them as needed. A report to FEMA must be submitted annually describing the PPI implementation. The annual report is transmitted to the council of each participating agency to provide updates on the various flood preparedness and awareness outreach programs that the Santa Clara County Multi-Jurisdictional PPI has undertaken for the past year. ANALYSIS 1 The report highlights the elements of the flood safety outreach programs implemented by the eleven Santa Clara County communities (Cupertino, Gilroy, Los Altos, Milpitas, Morgan Hill, Mountain View, Palo Alto, San Jose, Santa Clara, Santa Clara County, and Sunnyvale) that participate with the Santa Clara Valley Water District (Valley Water) in CRS. Valley Water, along with representatives from each of the participating communities, developed the original 2015 PPI and the associated annual report. The committee meets annually to evaluate and approve the PPI. The attached 2025 report was created based on meetings that occurred on March 26, 2025 and May 14, 2025. The final version of the 2025 PPI was presented to and approved by Valley Water’s Board of Directors on June 20, 2025. The worksheet on Appendix A of Attachment A lists the outreach projects, implementing agencies, and the messages associated with each of the projects; similarly, Appendix B of Attachment A lists the non-credited CRS outreach projects. Every year, participating communities must present the PPI plan to the legislative bodies to continue receiving CRS credit. The 2024 Santa Clara County Multi-Jurisdictional PPI was 1 Santa Clara County Multi-Jurisdictional Program for Public Information Annual Report; June 20, 2025 Item D Item D Staff Report Item D: Staff Report Pg. 2 Packet Pg. 619 of 627 presented to Council on August 5, 2024.3 Staff will continue to provide information to Council on the Santa Clara County Multi-Jurisdictional PPI on a yearly basis after the end of each Fiscal Year to achieve the maximum number of CRS credit points and associated flood insurance premium discounts for the community. FISCAL/RESOURCE IMPACT The review and approval of this informational report has no impact on the City’s budget. Maintaining this rating and participation in this program saves the Palo Alto community 20% on flood insurance costs. STAKEHOLDER ENGAGEMENT The program was discussed and prepared by representative staff from the eleven participating communities. ENVIRONMENTAL REVIEW This is an informational report and not subject to the California Environmental Quality Act (CEQA). APPROVED BY: Brad Eggleston, Director Public Works/City Engineer 3 City Council, August 5, 2024; Agenda Item #12; SR#2407-3201 https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=82954 Item D Item D Staff Report Item D: Staff Report Pg. 3 Packet Pg. 620 of 627 Item No. 13. Page 1 of 1 City Council Supplemental Report From: Jonathan Lait, Planning and Development Services Director Meeting Date: August 11, 2025 Item Number: 13 Report #:2508-5044 TITLE QUASI-JUDICIAL. 3150 El Camino Real [24PLN-00231]: Approval of a Vesting Tentative Map to Merge Five Parcels Together to Create One 111,030-Square-Foot Parcel to Facilitate Construction of 368 New Residential Rental Units. CEQA Status: Streamlined CEQA Review in Accordance with Section 15183. Zoning District: CS (Service Commercial). RECOMMENDATION Approve the Record of Land Use Action (RLUA) in Attachment A, approving the Vesting Tentative Map based on findings and subject to conditions of approval. BACKGROUND The attached, amended Record of Land Use Action (RLUA) has been modified to reflect that the proposed vesting tentative map is associated with an approved Streamlined Housing Development Review project. It has been revised to eliminate duplicative conditions of approval that are already set forth in the Streamlined Housing Development Review application, whose inclusion in this approval would be a potential source of confusion. The remaining conditions of approval in the attached RLUA are limited to those that are required to be completed prior to Final Map approval. ATTACHMENTS Attachment A: Revised Record of Land Use Action APPROVED BY: Jonathan Lait, Planning and Development Services Director Item 13 Item 13 Supplemental Report Item 13: Staff Report Pg. 1 Packet Pg. 621 of 627 1 0160169_KB2_20250225_AY16 ACTION NO. 2025-__ At its meeting on _________, 2025, the City Council of the City of Palo Alto (“City Council”) approved the Vesting Tentative Map to merge five existing parcels to create one resulting parcel for a 368-unit apartment building, making the following findings, determinations and declarations: SECTION 1. Background. A. On August 27, 2024, Acclaim Properties submitted a subdivision map application for a Vesting Tentative Map to merge five parcels into one resulting parcel for 3150 El Camino Real (“The Project”). The project site is comprised of five existing lots: APN No. 148-20-079, approximately 8,250 square feet, an undeveloped parcel; APN No. 148-20-080, approximately 4,950 square feet, an undeveloped parcel; APN No. 148-20-035, approximately 52,250 square feet, developed with a commercial eating and drinking use; APN No. 148-20-054, approximately 27,225 square feet, developed with a commercial eating and drinking use; APN No. 148-20-055, approximately 18,425 square feet, developed with a commercial eating and drinking use. Uses abutting the site include a ten-story office building to the north, a two-story hotel to the west, various one and two-story commercial uses to the east across El Camino Real, and a two-story hotel to the south. B. Following staff review, the Planning and Transportation Commission reviewed the project and recommended approval on May 14, 2025, subject to conditions of approval. C. Acclaim Properties also submitted a related Major Architectural Review application, which the Director of Planning and Development Services approved on July 7, 2025 pursuant to the City’s Streamlined Housing Development Review process, to permit a 368-unit multi-family apartment building, 74 of which would be provided at a rate affordable to low income tenants (50-80% AMI). D. On ___________, 2025 the City Council held a public meeting in accordance with the City Council’s policies and procedures and approved the project subject to conditions of approval. SECTION 2. Environmental Review. The City, as the lead agency for the Project, has determined the Project is eligible for a Streamlined review for consistency with the Comprehensive Plan and Comprehensive Plan EIR in accordance with California Environmental Quality Act (CEQA) Guidelines section 15183. Documentation to support the streamlined review is available as part of the public record on file with the Planning and Development Services Division. Item 13 Supplemental Attachment A - Revised Record of Land Use Action Item 13: Staff Report Pg. 2 Packet Pg. 622 of 627 2 0160169_KB2_20250225_AY16 SECTION 3. Vesting Tentative Map Findings. A legislative body of a city shall deny approval of a Subdivision Map, if it makes any of the following findings (California Government Code Section 66474). The City Council cannot make these findings for the following reasons: 1.That the proposed map is not consistent with applicable general and specific plans as specified in Section 65451: There is no adopted specific plan for this project site. The site is consistent with the Comprehensive Plan as described below. 2.That the design or improvement of the proposed subdivision is not consistent with applicable general and specific plans: There is no adopted specific plan for this Project site. The proposed Vesting Tentative Map and related improvements is consistent with the Comprehensive Plan in that it facilitates housing development on a site designated for multi-family use within the urban services area, consistent with Goal 2 of the Housing Element and Goal L1.2 of the Land Use Element. The Project does not replace existing housing. The Project includes 74 units that will be offered at a rate affordable to low-income households at 50%-80% area median income (AMI). The Project improves the city’s jobs housing imbalance, consistent with the Transportation Element’s goals and policies. 3. That the site is not physically suitable for the type of development: The Project site is suitable for multi-family residential development in that it’s identified as a Housing Inventory Site in the Housing Element and is located within the City’s El Camino Real Focus Area, an area identified for high density housing within the City. The proposed parcel meets the minimum code requirements for the CS zone district with respect to lot area, width, and depth. The proposed number of apartment units created on the resulting parcel complies with the applicable densities set forth in the land use element and zoning code, consistent with the focus area standards. 4.That the site is not physically suitable for the proposed density of development: The proposed improvements include a total of 368 multi-family residential units and results in 144 dwelling units (DU) per acre across the resulting parcel. There is no maximum density for projects on El Camino Real and the improvements are consistent with the floor area and height allowances for the site as set forth in the zoning. The improvements also fall within the identified unit capacity of the site set forth in the adopted Housing Element. Therefore, it is physically suitable for the parcel. 5. That the design of the subdivision or the proposed improvements are likely to cause substantial environmental damage or substantially and avoidably injure fish or wildlife or their habitat: Item 13 Supplemental Attachment A - Revised Record of Land Use Action Item 13: Staff Report Pg. 3 Packet Pg. 623 of 627 3 0160169_KB2_20250225_AY16 The Project is located within the built environment that does not contain quality habitat for fish or other wildlife on the site or within the vicinity of the site. The nearest stream is a portion of Adobe Creek approximately 1,000 feet southeast from the project site. The adopted Palo Alto 2030 Comprehensive Plan includes Map N-1, which identified sensitive animal and plant species within the Palo Alto quadrangle, a large geographic area that includes the urban portions along the bay and within the foothills, based on information in the California natural Diversity Database (CNDDB). Based on this map, and the urban nature of the site, the subject property does not contain any habitat for endangered, rare, or threatened species and has not historically supported any of these species. 6. That the design of the subdivision or type of improvements is likely to cause serious public health problems: The subdivision of this parcel and associated improvements would not have the potential to result in serious health problems. The proposed multi-family use would not include use or storage of hazardous materials and the use is located within the urban environment adjacent to other commercial uses. The site is not located on a hazardous waste site pursuant to government code 65962.5. 7. That the design of the subdivision or the type of improvements will conflict with easements, acquired by the public at large, for access through or use of, property within the proposed subdivision. In this connection, the governing body may approve a map if it finds that alternate easements, for access or for use, will be provided, and that these will be substantially equivalent to ones previously acquired by the public. This subsection shall apply only to easements of record or to easements established by judgment of a court of competent jurisdiction and no authority is hereby granted to a legislative body to determine that the public at large has acquired easements for access through or use of property within the proposed subdivision. There are no public access easements over the property currently. Therefore, the design of the subdivision will not conflict with any public easements for access through, or use of, the property. New public utility easements will be provided to existing and proposed electrical utilities as part of this subdivision map as required in accordance with City of Palo Alto Utilities standards. New public access easements will be provided to provide the 12-foot effective sidewalk width along El Camino Real, consistent with approved plans and policies. SECTION 4. Vesting Tentative Map Approval Granted. Vesting Tentative Map Approval is filed and processed in accordance to PAMC Section 21.13.020 and granted by the City Council under PAMC Sections 21.12 and 21.20 and the California Government Code Section 66474, subject to the conditions of approval in Section 6 of this Record of Land Use Action. SECTION 5. Final Map. The Final Map submitted for review and approval by the City Council shall be in substantial conformance with the Vesting Tentative Map prepared by CBG titled Item 13 Supplemental Attachment A - Revised Record of Land Use Action Item 13: Staff Report Pg. 4 Packet Pg. 624 of 627 4 0160169_KB2_20250225_AY16 “VESTING TENTATIVE PARCEL MAP FOR LOT MERGER” consisting of five pages, dated April 16, 2025 and submitted April 17, 2025, except as modified to incorporate the conditions of approval in Section 6. A copy of the Vesting Tentative Map is on file in the Department of Planning and Development Services, Current Planning Division. Prior to the expiration of the Vesting Tentative Map approval, the subdivider shall cause the subdivision or any part thereof to be surveyed, and a Final Map, as specified in Chapter 21.08, to be prepared in conformance with the Vesting Tentative Map as conditionally approved, and in compliance with the provisions of the Subdivision Map Act and PAMC Title 21 and submitted to the City Engineer (PAMC Section 21.16.010[a]). Planning Public Works Engineering Item 13 Supplemental Attachment A - Revised Record of Land Use Action Item 13: Staff Report Pg. 5 Packet Pg. 625 of 627 5 0160169_KB2_20250225_AY16 Services/Forms-and-Permits 6. OVERVIEW AND GUIDELINES FOR THE REVIEW OF SUBDIVISION PROJECTS: Developer shall familiarize themselves with the guidelines described in the November 2007 revision of the document titled “Overview and Guidelines for the Review of Subdivision Projects”. Particularly Section II (items 5 through 12) and Section V (items A through C). https://www.cityofpaloalto.org/files/assets/public/planning-amp-development- services/file-migration/current-planning/forms-and-guidelines/overview-and- guidelines-for-the-review-of-subdivision-projects.pdf 7. SUBDIVISION IMPROVEMENT AGREEMENT: The applicant shall execute a Subdivision Improvement Agreement and provide improvement securities (Bonds) for all proposed public improvements. THE AGREEMENT SHALL BE EXECUTED PRIOR TO MAP RECORDATION OR ISSUANCE OF ANY PERMITS FOR CONSTRUCTION, ONSITE AND OFFSITE. ADVISORY -- The applicant shall provide a detailed itemized stamped and signed engineer's estimate for all off-site public improvements which will be reviewed to determine the security amount. 8. FINAL MAP: This project is subject to, and contingent upon the approval of a tentative map and recordation of a Final Map. The submittal, approval and recordation of the Map shall be in accordance with the provisions of the California Subdivision Map Act and Palo Alto Municipal Code Title 21 Subdivision requirements. All existing and proposed property lines, easements, dedications shown on the tentative map are subject to City’s technical review and staff approval during the map process prior to issuance of any construction permits. 9. MAP THIRD-PARTY REVIEW: The City contracts with a third-party surveyor that will review and provide approval of the map’s technical correctness as the City Surveyor, as permitted by the Subdivision Map Act. The Public Works Department will forward a Scope & Fee Letter from the third-party surveyor and the applicant will be responsible for payment of the fee’s indicated therein, which is based on the complexity of the map. SECTION 7. Term of Approval. Vesting Tentative Map. All conditions of approval of the Vesting Tentative Map shall be fulfilled prior to approval of a Final Map (PAMC Section 21.16.010[c]). Unless a Final Map is filed, and all conditions of approval are fulfilled within a two-year period from the date of Vesting Tentative Map approval, the Vesting Tentative Map shall expire and all proceedings shall terminate. A request for an extension of time may be granted by the city council after recommendation of the planning commission, after the written extension request of the subdivider is submitted, prior to the expiration of the Vesting Tentative Map approval, or any previous extension granted. Such extension(s) shall be subject to the maximum limitations set forth in the Subdivision Map Act. // Item 13 Supplemental Attachment A - Revised Record of Land Use Action Item 13: Staff Report Pg. 6 Packet Pg. 626 of 627 7 0160169_KB2_20250225_AY16 // // // INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: APPROVED: _________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED AS TO CONTENT: ___________________________ ___________________________ Assistant City Attorney City Manager ___________________________ Director of Planning and Development Services PLANS AND DRAWINGS REFERENCED: Those plans prepared by TALUS titled “VESTING TENTATIVE PARCEL MAP FOR LOT MERGER – 3150 EL CAMINO REAL (24PLN-00231)” consisting of five pages, dated April 16, 2025 and submitted April 17, 2025. Item 13 Supplemental Attachment A - Revised Record of Land Use Action Item 13: Staff Report Pg. 7 Packet Pg. 627 of 627