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HomeMy WebLinkAboutStaff Report 2505-4737CITY OF PALO ALTO CITY COUNCIL Monday, June 16, 2025 Council Chambers & Hybrid 5:30 PM     Agenda Item     8.Adoption of Memoranda of Agreement with International Association of Fire Fighters (IAFF) Local 1319, Fire Chiefs Association (FCA), and Utilities Managers and Professionals Association of Palo Alto (UMPAPA) for Terms Ending June 30, 2028, and Adoption of the Updated Management and Professional Compensation Plan and Corresponding Salary Schedules; CEQA Status – Not a Project Supplemental Report added, Public Comment City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Human Resources Meeting Date: June 16, 2025 Report #:2505-4737 TITLE Adoption of Memoranda of Agreement with International Association of Fire Fighters (IAFF) Local 1319, Fire Chiefs Association (FCA), and Utilities Managers and Professionals Association of Palo Alto (UMPAPA) for Terms Ending June 30, 2028, and Adoption of the Updated Management and Professional Compensation Plan and Corresponding Salary Schedules; CEQA Status – Not a Project RECOMMENDATION Staff recommend that the City Council: 1) Adopt the Memoranda of Agreement (MOAs), and all associated salary schedules, between the City of Palo Alto and the: a. International Association of Fire Fighters (IAFF) Local 1319; b. Fire Chiefs Association (FCA); c. Utilities Managers and Professionals Association of Palo Alto (UMPAPA); and 2) Adopt the updated Management and Professional Compensation Plan covering unrepresented employees and the associated salary schedules, effective the first full pay period following Council adoption through June 30, 2028 BACKGROUND As a public agency under California law, the City of Palo Alto must meet and confer in good faith with recognized employee organizations on matters relating to wages, hours, and terms and conditions of employment. Following thoughtful and thorough negotiations, City representatives reached tentative agreement with IAFF, FCA, and UMPAPA. IAFF, FCA, and UMPAPA have ratified the tentative agreement. An updated compensation plan has been developed for the City’s unrepresented management and professional employees. These agreements align with the City's labor strategy to emphasize recruitment and maintaining competitive salaries to attract top talent; to continue improving employee retention and reduce turnover, and to foster a positive work environment to continue being an Employer of Choice. Each agreement builds upon key themes of equity, competitiveness, and operational sustainability as well as focusing on fiscal responsibility. The current agreements expire on June 30, 2025. ANALYSIS These agreements reflect a coordinated effort to standardize core elements across bargaining groups and the City’s unrepresented workforce, supporting long-term financial planning and operational consistency. General wage increases and health care contribution adjustments are applied uniformly; each agreement also includes tailored adjustments—such as market-based or certification-related compensation—that address the distinct needs of each group. These targeted adjustments are intended to strengthen the City's ability to attract and retain talent in competitive labor markets and will be detailed in the subsequent sections. Additionally, language updates across the agreements improve clarity, align with current practices, and support operational efficiency. Common Elements Across All Agreements and Compensation Plan: • Term: July 1, 2025 – June 30, 2028 (3-year term) • Cost of Living Adjustments (COLA): ο FY 2026: 3% ο FY 2027: 3% ο FY 2028: 3% • Medical Contributions: ο July 2025: alignment with SEIU (all units will be on one flat rate) ο Jan 2026: None ο Jan 2027: 4% increase in flat-rate contributions ο Jan 2028: 4% increase in flat-rate contributions • Market-Based or Certification-Based Enhancements (Unit Specific) IAFF – International Association of Fire Fighters, Local 1319 Unit Description: The International Association of Fire Fighters represents front-line fire personnel including Firefighters, Apparatus Operators, Fire Captains, and Inspection. This unit is comprised of 96 full time equivalent “FTE” and is responsible for daily fire suppression and prevention activities. This agreement supports continuity of emergency response services and sustainable staffing enhancements creating a pathway for future Council direction around use of single role classifications and promotes long-term retention of trained public safety professionals through introduction of an education-based incentive program. Summary of Specifics: • Market-based Adjustments ο FY 2026: None ο FY 2027: 0.75% ο FY 2028: 0.75% • Education Incentive ο FY 2026: None ο FY 2027: Tier 1: 2.5% ο FY 2028: Tier 2: 5% FCA – Fire Chiefs’ Association Unit Description: The Fire Chiefs’ Association represents Fire Battalion Chiefs “BC” who oversee, manage, and supervise day to day operations of the fire department. This unit is comprised of four FTE: three shift BCs and one training BC. The City has at least one Battalion Chief on duty at all times. This agreement ensures equity and alignment between our BC classifications and the line staff who they supervise. Considering fiscal constraints in the FY 2026 budget process, FCA and City representatives collaborated to develop cost-savings through deferred compensation without roll-up and to move the majority of market-based adjustments to later years of the agreement. Summary of Specifics: • Market-based Adjustments ο FY 2026: 1.5% ο FY 2027: None ο FY 2028: 2% • Deferred Compensation ο FY 2026: Increase to $300/month (previously $220/month) ο FY 2027: Increase to $600/month ο FY 2028: Remain at $600/month UMPAPA – Utilities Managers and Professionals Association of Palo Alto Unit Description: Represents managers, engineers, and professionals across Utilities Operations, including Electric, Water, Gas, Wastewater, and Fiber. The unit is comprised of 54 FTE. The agreement provides targeted adjustments for positions key to completing large-scale projects, such as grid modernization, in an effort to promote, attract, and retain staff in hard- to-fill technical and regulatory roles. Summary of Specifics: • 6% strategic market adjustment for Electrical Engineering positions (Principal, Manager) • 4% strategic market adjustment for WGW Engineering positions (Principal, Manager) • Market adjustment of 0.7% for the Administrative job family Management and Professional Compensation Plan (Unrepresented) Group Description: The Management and Professional Compensation Plan covers managers and professionals not represented by a labor union. The group is comprised of 247.75 FTE. These employees span department directors, division managers, supervisors and analysts from all city departments. This compensation reinforces internal equity and consistency with represented counterparts and ensures a minimum salary differential between managerial/supervisory classifications and the represented classifications they supervise. Summary of Specifics: • Targeted compaction-based increases to the salary range to ensure differential from supervised classifications for: Senior Technologist, Chief Transportation Official, Public Safety Communications Manager, and Manager Solid Waste. Adjustments to the range do not necessarily result in a corresponding salary increase to the incumbents in the position unless to address a current compaction issue. Any individual adjustments will be done at the discretion of the City Manager in alignment with the Management and Professional Compensation Plan. • $500 increase in Management excess benefit (from $2,500/year to $3,000/year) • Creation of the Principal Transportation Engineer Classification to improve the management oversight of the transportation engineering work. The salary of this new position will be 7% above the Senior Engineer. The Table of Organization will be amended to add a 1.00 FTE Principal Transportation Engineer position and eliminate a 1.00 Senior Engineer position as part of the FY 2026 Budget Adoption (Staff Report # 2503-4250) also scheduled for the June 16, 2025 City Council meeting. FISCAL/RESOURCE IMPACT Adoption of the MOAs for IAFF, FCA, and UMPAPA and the updated Management and Professionals compensation plan will result in estimated cost increases of $14.5 million in the General Fund and $22.4 million across all funds over the three-year term, ending June 30, 2028. The first-year contract costs are incorporated into the FY 2026 budget, scheduled for adoption on June 16, 2025 (Staff Report # 2503-4250). Costs for years two and three of the contracts were included in the General Fund long-range financial forecast and financial forecasts for the City‘s various utilities; however, final estimates may vary based on actual staffing levels, classification changes, and health plan enrollment. STAKEHOLDER ENGAGEMENT All MOAs and compensation plans were ratified by the respective bargaining units and reviewed by internal stakeholders. Following Council adoption, documents will be publicly posted. ENVIRONMENTAL REVIEW The proposed Council action is not a project under the California Environmental Quality Act (CEQA), as it involves organizational and administrative activities. (CEQA Guidelines, Section 15378(b)(2)) ATTACHMENTS Attachment A: MOA – IAFF Local 1319 Attachment B: MOA – FCA Attachment C: MOA – UMPAPA Attachment D: Management & Professional Compensation Plan Attachment E: IAFF Local 1319 Salary Schedule Attachment F: FCA Salary Schedule Attachment G: UMPAPA Salary Schedule Attachment H: Management and Professional Salary Schedule APPROVED BY: Sandra Blanch, Human Resources Director 1 MEMORANDUM OF AGREEMENT Between CITY OF PALO ALTO and I.A.F.F. LOCAL 1319 January 30, 2023 uly 1, 2025 – June 30, 20285 2 PREAMBLE __________________________________________________________ 7 ARTICLE I - RECOGNITION _____________________________________________ 7 Section 1. Recognition. ______________________________________________________ 7 ARTICLE II - NO DISCRIMINATION _______________________________________ 7 Section 1. No Discrimination. __________________________________________________ 7 Section 2. Free Choice. ______________________________________________________ 7 Section 3. Human Relations Committee. _________________________________________ 7 ARTICLE III - PAYROLL DEDUCTIONS ____________________________________ 7 Section 1. Payroll Deductions and Written Authorization. ____________________________ 8 Section 2. Certification of Union Membership _____________________________________ 8 Section 3. Indemnification ____________________________________________________ 8 ARTICLE IV - UNION ACTIVITIES ________________________________________ 8 Section 1. On-Duty Time. _____________________________________________________ 8 Section 2. Interoffice Mail, Bulletin Boards, and E-Mail. ______________________________ 8 Section 3. Use of Meeting Places. ______________________________________________ 9 ARTICLE V - NO STRIKES ______________________________________________ 9 Section 1. No Strikes. ________________________________________________________ 9 ARTICLE VI - PROBATIONARY PERIOD __________________________________ 9 Section 2. Part of Testing Process. _____________________________________________ 9 Section 3. Suspension or Termination. __________________________________________ 9 ARTICLE VII - SALARY PROVISIONS ____________________________________ 10 Section 1. Base Wage Rates. ________________________________________________ 10 Section 2. Out-of-Class Compensation. _________________________________________ 11 Section 3. Salary Steps _____________________________________________________ 11 Section 4. Pay for Court Appearance. __________________________________________ 12 Section 4. Classifications ____________________________________________________ 13 ARTICLE VIII - PAY DIFFERENTIALS ____________________________________ 13 f. Paramedic Differential. _________________________________________________ 14 Section 2. Emergency Medical Technician Certification. _________________________ 14 Section 3. Bilingual Pay _____________________________________________________ 14 Section 4. Special Operations Assignment (Haz Mat) _____________________________ 15 Section 5. Fire Investigator Differential. ________________________________________ 15 Section 6. Education Incentive _____________________________________________ 15 ARTICLE IX - HOLIDAYS ______________________________________________ 16 Section 1. Named Holidays. __________________________________________________ 16 Section 2. Conditions. ______________________________________________________ 17 3 ARTICLE X - OVERTIME COMPENSATION _______________________________ 18 Section 1. Compensation. ___________________________________________________ 18 ARTICLE XI - APPARATUS STAFFING ___________________________________ 18 ARTICLE XII - WORK ASSIGNMENTS AND TRANSFERS ____________________ 18 Section 1. Shipouts. _______________________________________________________ 19 Section 2. Vacation Relief Positions. ___________________________________________ 19 Section 3. Transfer Requests. ________________________________________________ 19 Section 4. Special Assignments. ______________________________________________ 20 Section 5. Continuous Hourly Service. __________________________________________ 20 ARTICLE XIII - TRAINING COORDINATION _______________________________ 20 Section 1.Coordination ______________________________________________________ 20 ARTICLE XIV - PROMOTION ___________________________________________ 21 Section 1. Promotion Step Level. ______________________________________________ 21 Section 2. Promotion Process Information. ______________________________________ 21 ARTICLE XV - REDUCTION IN FORCE ___________________________________ 21 Section 1. Order of Reduction. ________________________________________________ 21 ARTICLE XVI - SELECTIVE CALL BACK WITH REGARD TO RESIDENCY ______ 21 Section 1. In Case of Emergency ______________________________________________ 21 ARTICLE XVII - HEALTH BENEFITS _____________________________________ 22 Section 1. Maintenance of Levels _____________________________________________ 22 Section 2. Vision Care ______________________________________________________ 22 Section 3. PEMHCA Health Plan. _____________________________________________ 22 ARTICLE XVIII - DENTAL BENEFITS _____________________________________ 25 Section 1. Level of Benefits. __________________________________________________ 25 Section 2. Premiums. _______________________________________________________ 25 ARTICLE XIX - LIFE INSURANCE _______________________________________ 25 ARTICLE XX - RETIREMENT BENEFITS __________________________________ 26 Section 1. PERS Retirement Formula. __________________________________________ 26 Section 2. PERS Member Contribution. ________________________________________ 27 Section 3. Additional Employee PERS contributions _______________________________ 27 Section 4. Option 2 Death Benefit. _____________________________________________ 27 Section 5. Military Service Credit. _____________________________________________ 28 Section 6. 1959 Survivor Benefit. _____________________________________________ 28 Section 7. Employer Contributions to 457 Plan ___________________________________ 28 ARTICLE XXI - RETIREMENT MEDICAL PLAN_____________________________ 28 Section 1. Retiree medical coverage for Unit employees hired before January 1, 2004: ____ 28 4 Section 2. 20-Year Vesting for Retiree Medical Coverage for Unit Employees Hired On Or After January 1, 2004: ____________________________________________________ 28 ARTICLE XXII - DEPENDENT CARE ASSISTANCE PROGRAM (DCAP) ________ 29 Section 1. DCAP. __________________________________________________________ 29 ARTICLE XXIII - VACATION ACCRUAL __________________________________ 29 Section 1. Accrual Rate. _____________________________________________________ 29 Section 2. Unused At Termination. _____________________________________________ 30 Section 3. Limits. __________________________________________________________ 30 ARTICLE XXIV - USE OF VACATION ____________________________________ 30 Section 1. Maximum Number of Slots __________________________________________ 30 Section 2. Approvals. _______________________________________________________ 30 Section 3. Vacation Pay. ____________________________________________________ 30 Section 4. Illness on Vacation. ________________________________________________ 30 Section 5. When to be Taken. ________________________________________________ 30 Section 6. Limitation on Use. _________________________________________________ 31 Section 7. Waiting Period. ___________________________________________________ 31 Section 8. Double Compensation Prohibited. _____________________________________ 31 Section 9. Cash out Option. __________________________________________________ 31 ARTICLE XXV - SICK LEAVE ___________________________________________ 31 Section 1. Statement of Policy. _______________________________________________ 31 Section 2. Eligibility ________________________________________________________ 31 Section 3. Accrual. _________________________________________________________ 31 Section 4. Accumulation. ____________________________________________________ 31 Section 5. Use. ____________________________________________________________ 31 Section 6. Depletion of Sick Leave Benefits. _____________________________________ 32 Section 7. Forfeiture Upon Termination. ________________________________________ 32 Section 8. Payment for Accumulated Sick Leave. _________________________________ 32 Section 9. Personal Business Leave Chargeable to Sick Leave. ______________________ 32 Section 10. Return to Work or Continue Work With Limited Duty. _____________________ 33 ARTICLE XXVI - SUBPOENAS __________________________________________ 33 ARTICLE XXVII - WORKERS' COMPENSATION ____________________________ 33 Section 1. Status Reporting While on Disability. __________________________________ 33 ARTICLE XXVIII - PHYSICAL FITNESS MEDICAL EXAMINATIONS ____________ 33 ARTICLE XXIX- LEAVES OF ABSENCE WITHOUT PAY _____________________ 33 Section 1. Disability. ________________________________________________________ 33 Section 2. Other Leaves. ____________________________________________________ 34 5 Section 3. Accrued Vacation Credits. ___________________________________________ 34 Section 4. Approval of Department Head ________________________________________ 34 Section 5. Approval by City Manager. __________________________________________ 34 Section 6. Absence Without Leave. ____________________________________________ 34 Section 7. Leave of Absence; Death Outside the Immediate Family. __________________ 34 Section 8. Military Leave of Absence ___________________________________________ 34 Section 9. Use of paid accruals while on leave. ___________________________________ 34 ARTICLE XXX - LEAVES OF ABSENCE WITH PAY _________________________ 34 Section 1. City Manager Granted Leaves. _______________________________________ 34 Section 2. Council Granted Leave. _____________________________________________ 34 Section 3. Employee's Time Off to Vote. ________________________________________ 35 Section 4. Leaves of Absence; Death in Immediate Family. _________________________ 35 Section 5. Jury Duty; Leave of Absence. ________________________________________ 35 ARTICLE XXXI – VOLUNTEER LEAVE PROGRAM _________________________ 35 ARTICLE XXXII- TUITION REIMBURSEMENT _____________________________ 37 Section 1. Options. _________________________________________________________ 37 ARTICLE XXXIII - PER DIEM TRAVEL EXPENSES__________________________ 37 Section 1. City Business. ____________________________________________________ 37 ARTICLE XXXIV - HOUSE FUND ITEMS __________________________________ 37 Section 1. Station House Fund. _______________________________________________ 37 Section 2. Non-Food House Items _____________________________________________ 37 ARTICLE XXXV- PARKING ____________________________________________ 37 Section 1. Entitlements. _____________________________________________________ 37 ARTICLE XXXVI- GRIEVANCES ________________________________________ 37 Step II ___________________________________________________________________ 38 Step III __________________________________________________________________ 38 Step IV __________________________________________________________________ 39 ARTICLE XXXVII- SAFETY COMMITTEE _________________________________ 40 Section 1. Committee _______________________________________________________ 40 ARTICLE XXXVIII – MISCELLANEOUS ___________________________________ 40 Section 1. Section 1. Uniforms. _______________________________________________ 40 Section 2. Removal of Disciplinary Actions. ______________________________________ 40 ARTICLE XXXIX - FULL UNDERSTANDING _______________________________ 40 Section 1. Full and Entire Understanding ________________________________________ 40 Section 2. Fair Labor Standards Act. ___________________________________________ 41 Section 3. Severability. ______________________________________________________ 41 6 Section 4. Good Faith. ______________________________________________________ 41 Section 5. Merit System Rules and Regulations. __________________________________ 41 Section 6. Station Consolidation or Relocation ___________________________________ 41 Section 7. Meet and Confer. __________________________________________________ 41 ARTICLE XL – 48/96 Work Schedule ____________________________________ 41 ARTICLE XLI – FUTURE SERVICE DELIVERY MODELS _____________________ 41 ARTICLE XLII - DURATION ____________________________________________ 41 7 MEMORANDUM OF AGREEMENT CITY OF PAL0 ALTO and I.A.F.F. LOCAL 1319 January 30, 2023 - June 30, 2025 PREAMBLE This Memorandum of Agreement between the City of Palo Alto, hereinafter referred to as the "City", and Local 1319, International Association of Fire Fighters, hereinafter referred as the "Union", has been prepared and entered into in accordance with Title I, Division 4, Chapter 10, Sections 3500-3510 of the California Government Code and Chapter 12 of the City of Palo Alto Merit System Rules and Regulations. ARTICLE I - RECOGNITION Section 1. Recognition. The City recognizes the Union as the exclusive representative of an employee group consisting solely of the classifications of Fire Apparatus Operator, Fire Fighter, Fire Captain, Fire Captain (forty-hour assignment), Fire Inspector Sworn and Non-Sworn, Hazardous Materials Specialist, and Hazmat Inspector, who are regularly employed by the City and others as amended into the representation unit from time to time under existing law and the Merit System Rules and Regulations. ARTICLE II - NO DISCRIMINATION Section 1. No Discrimination. The Union and the City hereby agree that there shall be no discrimination because of race, color, age, disability, sex, national origin, sexual orientation, political or religious affiliation under this Agreement. There shall be no discrimination in employment conditions or treatment of employees on the basis of membership or non-membership in the Union, or participation in the lawful activities of the Union. Section 2. Free Choice. The Union and the City hereby agree to protect the rights of all employees to exercise their free choice to join the Union and to abide by the express provisions of applicable State and local laws. Section 3. Human Relations Committee. A Human Relations Committee will include up to five members appointed by the Union executive board and at least two members of management with representation from the Fire and Human Resources Departments. The committee may make recommendations to management regarding recruitment outreach, equal employment opportunity and career development programs. ARTICLE III - PAYROLL DEDUCTIONS 8 Section 1. Payroll Deductions and Written Authorization. The City shall deduct Union membership dues assessments and insurances authorized by the Union. This will be accomplished by payroll deduction from the bi-weekly pay of member employees. The dues deduction must be authorized in writing by the employee on a Union authorization card. The Union will be the custodian of records for individual employee membership and dues deduction forms. The Union will maintain authorizations for dues deduction, signed by the individual from whose salary or wages the deduction or reduction is to be made. The City will direct employee requests to cancel or change deductions to the Union. The City shall remit the deducted dues to the Union as soon as possible after deduction. Section 2. Certification of Union Membership. The Union agrees to provide the City an initial certified list of members and statement that the Union has and will maintain written authorizations signed by the individuals from whose wages the Union dues deductions are to be made. From that point forward the Union will update the list whenever there are changes. Section 3. Indemnification. The Union shall indemnify and hold the City harmless against any liability arising from any claims, demands, or other action relating to this article. The Union shall comply with all statutory and legal requirements with respect to this article. ARTICLE IV - UNION ACTIVITIES Section 1. On-Duty Time. Local 1319 officers may use a reasonable amount of on- duty time to attend to Union business specifically related to representation of employees so long as: a. Staffing is available b. Operations are not interrupted c. Advance approval is obtained from the Battalion Chief or Operations Chief Section 2. Interoffice Mail, Bulletin Boards, and E-Mail. The Union shall have access to interoffice mail and existing bulletin boards in unit employee work areas for the purpose of posting, transmitting, or distributing notice or announcements including notices of social events, recreational events, Union membership meetings, result of elections and reports of minutes of Union meetings. Any other material must have prior approval of the Operations Chief or Fire Chief. Action on approval will be taken within 24 hours of submission. The Union may send e-mail messages only for the purposes set forth above. The I.T. Division will maintain the IAFF list. The Union access to e-mail is based on the following conditions: a. E-Mails to the IAFF list will be copied to the Fire Chief or Operations Chief at distribution. 9 b. E-Mails to the IAFF list will only be sent by the Executive Board Members. Section 3. Use of Meeting Places. The Union shall have the right to reserve City meeting and conference rooms for use during non-working hours or as subject to Battalion Chief approval. Such meeting places will be made available in conformity with City regulations and subject to the limitations of prior commitment. ARTICLE V - NO STRIKES Section 1. No Strikes. The Union, its representatives, or members, shall not engage in or cause, instigate, encourage, sanction, or condone a strike, withholding of services, leave of absence abuse, work stoppage or work slowdown of any kind against the City of Palo Alto or its citizens by employees covered under this Agreement. No employee shall refuse to cross any picket line in the conduct of Fire Department business, nor shall the Union, its representatives or members discriminate in any way toward anyone who refuses to participate in a strike, or any of the job actions cited above. ARTICLE VI - PROBATIONARY PERIOD Section 1. Tentative and Subject to Probationary Period. All original appointments to regular or part-time municipal service positions shall be tentative and subject to a probationary period. TWith the exception of the Fire Inspector (Non-Sworn) classification, this probationary period shall include the fire training academies and an additional fourteen (14) to sixteen (16) months after completion of the academies (including in-house academy), excluding time off for extended leaves of absence. The probationary period will end at the sooner of 16 months or the completion of all probationary testing, inclusive of driver II certification. All original appointments to Fire Inspector (Sworn or Non-Sworn) classifications shall serve a twelve (12) month probationary period, commencing with the first day of employment in the classification. Promotion from a non-sworn to a sworn position will be subject to the applicable Probationary Period. Section 2. Part of Testing Process. The probationary period shall be regarded as part of the testing process and shall be utilized for closely observing all aspects of the employee's qualifications, for ensuring the effective adjustment of a new employee to the position and for rejecting any probationary employee who, in the opinion of management, is not suitable to attain permanent status. Section 3. Suspension or Termination. During the probationary period a new employee may be suspended or terminated at any time by the appointing authority without cause and without right of appeal or to submit a grievance. Said employee shall not have the right to proceed to arbitration on the issue of arbitrability or on the issue of its constitutional or discovery rights, nor those of any employee by reason of the 10 foregoing. The Union shall not be a party to any lawsuit relating to the termination of a probationary employee. ARTICLE VII - SALARY PROVISIONS Section 1. Base Wage Rates. a. The base wage rates of bargaining unit classifications will be as set forth in Appendix A of this MOA. b. General Salary Increase Effective the first full pay period following July 1, 2025, the salary ranges of all represented classifications will be increased by three percent (3%). Effective the first full pay period following July 1, 2026, the salary ranges of all represented classifications will be increased by three half percent (3%) Effective the first full pay period following July 1, 2027, the salary ranges of all represented classifications will be increased by three percent (3%). c. Market Increase: Effective the first full pay period following July 1, 2026, the salary ranges of all represented classifications will be increased by three-fourths of one percent (0.75%). Effective the first full pay period following July 1, 2027, the salary ranges of all represented classifications will be increased by three-fourths of one percent (0.75%). Market Increase: Effective the first full pay period including the adoption of the MOA, the salary ranges of all represented classifications will receive a market adjustment of five percent (5.0%).Addition of Salary Step: Effective the first full pay period including adoption of this MOA by City Council, the City will implement a new step 6 (5% above Step 5) following the same percentage difference as steps 1-5. Any employee who is already at Step 5 on the date the City Council adopts the MOA will move to Step 6 effective the first full pay period following City Council adoption of the MOA. Any employee in the Firefighter classification who is already at Step 4 on the date the City Council adopts the MOA whichever is later will move to Step 5 effective the first full pay period following City Council adoption of the MOA. The employees moved to Step 5 pursuant to this paragraph will move to Step 6 upon one year of service at Step 5 so long as they receive a satisfactory 11 performance evaluation. General Salary Increase: Effective the first full pay period following July 1, 2023, the salary ranges of all represented classifications will be increased by four percent (4.0%).General Salary Increase: Effective the first full pay period following July 1, 2024, the salary ranges of all represented classifications will be increased by four percent (4.0%).Market Adjustment Part 2: Effective the first full pay period following January 1, 2025, the salary ranges of all represented classifications will receive a market adjustment of two percent (2.0%). Total Compensation and Survey Database Management and the Union have agreed to a compensation survey database structure. Survey Cities include: Alameda, Berkeley, Fremont, Hayward, Menlo Park Fire District, Milpitas, Mountain View, Redwood City, Pleasanton, San Jose, San Mateo, San Ramon Fire District, Santa Clara, Santa Clara County and South San Francisco. Compensation Criteria includes: top step salary, maximum longevity, maximum education, uniform allowance, EMT differential, Hazmat differential, deferred compensation, employee pick up of employer pension costs (Negative EPMC), and maximum City paid benefits (medical, dental, vision, life insurance, LTD, and EAP). The database is intended to provide one source of information concerning how the compensation paid to employees in bargaining unit job classifications compares to that paid by other employers. Section 2. Out-of-Class Compensation. All represented employees who are assigned work in a higher classification for longer than four (4) continuous hours will be compensated at a higher pay rate for all hours worked during the out-of-class assignment. This provision applies as follows: Fire Fighter, Apparatus Operator, Captain or Inspector working in a higher classification: Step to step. Representation unit classification working as a Battalion Chief, 10% above 6th-Step Captain, but not to exceed 93% ofof the salary range of the Battalion Chief control point. Representation unit classification working in any other management position, within the range of the management position. In accordance with Government Code 20480, an employee assigned to work in an “out-of-class appointment” may not exceed 960 hours worked in the appointment within a fiscal year if the employee is appointed to an upgraded position or higher classification that is vacant during recruitment for a permanent appointment. This limitation does not apply to a position that is temporarily available due to a leave of absence. Section 3. Salary Steps 12 Employees in the Firefighter Rank initially appointed to the first step of the salary range of their classification shall be entitled to a merit increase to step two in the pay range upon successful completion of six (6) months of service, so long as they receive a satisfactory performance evaluation. The date of such increase shall be the first full pay period following the evaluation date. Employees may be appointed to any step in the salary schedule for their classification as recommended by the Fire Chief and approved by the City Manager. Employees appointed to the second step and above are eligible to receive a merit increase the first full pay period following successful completion of twelve (12) months of actual service, so long as they receive a satisfactory performance evaluation. Employees in the Fire Inspector (Non-Sworn) classification shall be entitled to a step increase in the pay range upon successful completion of twelve (12) months of service, so long as they receive a satisfactory performance evaluation. The date of such increase shall be the first full pay period following the evaluation date. Each twelve (12) months of actual service after the evaluation date, each employee receiving a satisfactory performance evaluation shall receive a merit step increase to the next higher step (effective the first full pay period following the evaluation date) until the top step of the pay range for the job class has been reached. An employee shall not receive a merit increase beyond the maximum steps established for the job classification. Section 4. Pay for Court Appearance. Sworn Fire personnel appearing in court for the People shall be compensated as follows: Period Rate Minimum a. Appearance on scheduled day off Time and one-half at 40-hour rate 4 hours b. Any or all court time during scheduled shift Straight time during shift at 56-hour rate None c. Appearance on scheduled Time and one-half at 2 hours work day but not during scheduled shift 40-hour rate (2 hour minimum, may not run into shift time) The employee shall remit all fees received for such appearances to the City within thirty 13 days from the termination of his/her services. Compensation for mileage or subsistence allowance shall not be considered as a fee and shall be retained by the employee. Section 4. Classifications. The sworn Haz Mat Inspector and positionsworn Fire Inspector classification will be paid at the same level as the Fire Inspector (603Fourt-hour Fire Captain). One Fire Captain position will be assigned to a Fire Captain (Forty-hour Assignment) with the pay set at 5% above the Fire Captain. ARTICLE VIII - PAY DIFFERENTIALS Sworn Unit employees are eligible for the following pay differentials. Notwithstanding any provision of this agreement, eligible employees can receive up to two differentials in addition to the EMT and Paramedic Certification pay. total differential pay shall not exceed seventeen and a half percent (17.5%).Non-Sworn Fire Inspectors will not be eligible for the listed pay differentials. Section 1. Paramedic Assignment a. Section 1. Limit of Eligibility. The City reserves the right to limit eligibility for the Paramedic Program to the Fire Fighter classification. The City may, at its discretion, add other classifications within the represented bargaining unit to meet the need of program changes. Differentials for other classifications will be as provided in Article VIII, Section 1this Article. b. Section 2. Additional Candidate Training. As the Program progresses, Management will assess the need for training additional Paramedic candidates. It is Management's intention to provide for such additional training as necessary for Program continuity. c. Section 3. Incentives. Paramedics will receive a one-time cash payment of $500 for each biennial recertification. This provision applies only to active incumbents of authorized paramedic positions who remain in the paramedic assignment for at least one additional year after recertification. The one year requirement after recertification does not apply to those paramedics who may leave the program 14 because of work- related injury or illness, or promotion, nor does it apply when a paramedic is asked by management to recertify in order to voluntarily extend their paramedic service to meet special departmental needs for a period of less than one year. d. Section 4. Proctoring. Paramedic proctoring assignments will be made by the Chief from among qualified volunteers. Payment of $600 will be made to the primary proctoring paramedic at the conclusion of each proctoring assignment. The Chief or his or hertheir designee will maintain a list of qualified proctors from among volunteers. Personnel will be selected by the Fire Chief or his or her designee from the list to serve as paramedic proctors. If a conflict arises between the City and the Union regarding the Proctor Program, either side may suspend the program at the annual renewal period and shall remain suspended until a resolution or agreement is reached. e. Section 5. Field Training Stipend. Employees assigned to provide field training for new paramedic accreditation will receive a $300 stipend to train a new paramedic or EMT to successful completion of paramedic accreditation. This assignment is at the discretion of the Chief or their designee. e.f. Paramedic Differential. Paramedics who have completed the required training and have been accredited in accordance with the program and possess their paramedic license, will receive a 14% differential in addition to their base salary effective beginning with the date of assignment to rotational Paramedic duty. The Paramedic salary differential will terminate with the cessation of assignment to rotational Paramedic duty. The base salary for Captain classification (including Hazmat Inspector and Fire Inspector) base salary will be increased 1% in alignment with this differential increase.. Section 24. Emergency Medical Technician DifferentialCertification. The former 3% EMT differential pay was rolled into base pay constituting the City’s incentive payment for EMT skills. All employees hired into sworn positions must maintain a current EMT certification as a condition of employment. Employees, including Paramedics, shall receive a three percent (3%) differential in addition to their base salary for the EMT certification. The EMT differential will be provided the first pay period following graduation from an entry level academy or on date of hire where an academy is not required. In the event an employee’s EMT certification expires, the employee will be taken off the line and placed in an unpaid status until the employee can submit proof of EMT recertification. Section 3. Bilingual Pay Employees who have successfully demonstrated proficiency in any of the approved 15 languages shall receive a 5% premium in addition to their base salary. a. Approved Languages: Spanish, Chinese (Mandarin and Cantonese), Japanese, Tagalog, Korean, Vietnamese, Russian, American Sign Language, and such other languages as determined by management. b. Proficiency Requirements The City shall develop and provide a method of testing for proficiency in the above listed languages. The City will pay for the first test in any approved language however subsequent testing will be at the employee’s own expense. An employee must pass the proficiency test to maintain the bilingual pay. The Fire Chief shall have the authority to require employees receiving bilingual pay to re-certify with the Human Resources Department as necessary and reasonable. c. Arbitratability The City’s substantive evaluation of an employee’s knowledge of and skills in a designated second language shall not be subject to the grievance procedure or review by an arbitrator. Section 4. Special Operations Differential Assignment (formerly Haz Mat) A maximum of eighteen positions who are both members of the Special Operations group and assigned the Special Operations, inclusive of Technical Rescue and Hazardous Materials certified personnel, team will receive a 5% differential in addition to their base salary. The differential does not apply to minimum staffing replacements. Section 5. Fire Investigator Differential. A maximum of five six (65) Fire inspector personnel including Haz Mat Inspectors who have been trained as Fire investigators and who are regularly assigned to fire investigation duties by the Chief will receive a 5% differential in addition to their base salary. The Chief reserves the right to determine who is regularly assigned to such duties. Section 6. Education Incentive Employees who have successfully achieved the education and training required for the Career Development program will receive either: Tier 1: 2.5% differential in addition to base salary OR Tier 2: 5% differential in addition to base salary 16 a. Tier 1: An employee shall be eligible for Tier 1 incentive upon completion of 300 hours of Fire Chief approved job-related coursework. 1. Tier 1 will begin the first full pay period including July 1, 2026. 2. Employees must successfully pass probation in order to become eligible. b. Tier 2: An employee shall be eligible for tier 2 incentive upon completion of 600 hours of Fire Chief approved job-related coursework. 1. Tier 2 will begin the first full pay period including July 1, 2027. 2. Employees must successfully obtain step 4 of the salary schedule in order to become eligible. c. Conditions of Job-related coursework 1. An Associate’s degree from an accredited college or university in public safety field shall count toward 150 hours of job related coursework. A Bachelor’s degree or higher accredited college or university shall count toward 300 hours of job related coursework. 2. Job related coursework completed to hold EMT or Paramedic licensure in this Article will not be eligible to count toward Tier 1 or Tier 2 required job-related coursework. 3. On duty City provided job-related classes will not be eligible. 4. Under no circumstances may duplicative coursework be submitted. d. All education and training completed under this Program must be actively utilized in the course of the employee’s assigned duties. e. A minimum of 32 hours of Fire Chief approved job-related coursework is required every other calendar year in order to maintain the education incentive. f. The employee is responsible for submitting appropriate official transcripts, certificates, and proof of course completion demonstrating completion of all qualifying components. No incentive shall be granted without verified documentation. g. Incentive pay shall begin the first full pay period after approval by the Fire Chief or designee of require documentation. h. The Fire Chief or designee, shall make final determinations regarding course approval, applicability of training, and eligibility for incentive payment. A joint labor-management committee shall meet as needed to discuss the program. ARTICLE IX - HOLIDAYS Section 1. Named Holidays. Holiday pay is compensation for employees who are normally required to work on an approved holiday because they work in positions that require scheduling staff without regard to holidays. The following holidays are recognized as municipal holidays for pay purposes, and regular, employees shall have these days off with pay, except as otherwise provided in these rules: 17 January 1 Veterans’ Day, November 11 Third Monday in January Thanksgiving Day Third Monday in February Day after Thanksgiving Day Last Monday in May December 25 July 4th Either December 24, or December 31 as provided below First Monday in September Second Monday in October Floating Holiday: In addition to the paid holidays listed above, employees shall be excused with pay for one full work shift as a day of reflection (floating holiday) per calendar year. Eligible employees may use the floating holiday on any day mutually agreed by the employee and their supervisor for a Day of Reflection, including: Juneteenth Freedom Day (June 19) or Cesar Chavez/Dolores Huerta Day (March 31). Day of Reflection not used by the end of the fiscal year will be deemed forfeited and have no cash value. 161.5 hours are paid annually to an employee at a rate of 6.21 hours each pay period. Shift personnel shall receive pay in lieu of taking paid leave for accrued holidays. Such paid hours are in addition to the normal biweekly base pay. Shift personnel will be paid 6.21 hours of in lieu of holiday pay each pay period. Hours are prorated and accrued based on hours actually worked. Accrued Holiday balances will be automatically paid off in the months of June and December. Section 2. Conditions. a. Personnel assigned to a 40-hour work schedule will receive paid holidays in accordance with Sections 517 and 518 of the Merit System Rules and Regulations. b. Personnel assigned to a 40-hour work schedule will receive floating days off with pay in each of the following months: August, September, March, April, and June. The following conditions will hold: (1) Management will designate the schedule of the paid day off under this section at least thirty days in advance. (2) If, in conformance with this section, Management is unable to schedule a day off in the month indicated for reasons of shift operations, work scheduling or any other reason, the day will be added to the employee's 18 vacation accrual. (3) If an employee fails to take a day off as scheduled by Management under this section, the day off so scheduled will be forfeited. ARTICLE X - OVERTIME COMPENSATION Section 1. Compensation. Shift personnel assigned to overtime relief duty in addition to their regular 56-hour shift schedule shall receive overtime compensation at a rate of one and one-half times the employee's basic 56-hour rate, or out-of-class rate if such applies, for all hours of the relief duty shift. Required off-duty training, excluding remedial training, will be compensated at the rate of one and one-half times the basic 40-hour rate or as otherwise agreed. If an opportunity was provided to allow for the required training to be on duty, but the employee was unable to attend, the training scheduled for off duty will not be eligible for the 40-hour rate. Emergency callback will be compensated at a rate of one and one- half times the basic 40-hour rate to a maximum of 8 hours, and at a rate of one and one-half times the basic 56-hour rate for those hours in excess of 8 hours. Overtime duty assignments will first be made from the voluntary overtime list. If such assignments cannot be filled from the voluntary overtime list, the vacant position will be filled by moving up on-shift personnel through out-of class assignment. Any remaining vacancy will then be filled by overtime duty assignment made in reverse order of hire date seniority according to specialty and qualifications required to be assigned. The overtime duty assignment seniority list will be adjusted annually on October 31. ARTICLE XI - APPARATUS STAFFING Engine, truck and combination rescue companies shall be deployed for emergency services purposes at the level of one Fire Captain, one Fire Apparatus Operator and one Fire Fighter. Truck companies have the option of deploying at the level of two Fire Apparatus Operators instead of one Fire Apparatus Operator and one Firefighter. This option shall be determined by seniority. Paramedic ambulance staffing shall be two personnel; the City will dispatch personnel on Emergency Medical Service calls such that a minimum of 1 licensed paramedic responds. The Foothill Fire Station #8, when activated by the Fire Chief, shall be staffed with a minimum of one Fire Apparatus Operator and one Fire Fighter. City may dispatch a two-person apparatus (ex: squad or quick response vehicle) with a minimum of 1 paramedic. ARTICLE XII - WORK ASSIGNMENTS AND TRANSFERS It is the intent of the Palo Alto Fire Administration and Local 1319 that work assignments and transfers will reflect the best interests of the Fire Department and the City. The Fire 19 Department will maintain a constant state of readiness to defend against fire and other disasters. It is therefore imperative that all Fire Department divisions assign personnel in the best manner to respond to the needs of the City and the Department. It is also acknowledged that the Fire Chief is responsible to make and/or approve the work assignments or transfers of Fire Department personnel. The Fire Chief or designee will maintain a three year station and shift assignment, seniority-based bid system covering the following classifications within Fire Operations on a rotational basis: Fire Captain, Apparatus Operator and Fire Fighter. The Fire Chief, or his designee, shall initiate personnel assignments and transfers to balance platoon or division strength, fill permanent or temporary vacancies and provide required training to individual personnel. Such assignments will be based on seniority, except where career development, training, special assignments, skills and documented performance issues are specifically identified in writing, management may make assignments based on such issues. For purposes of this article, seniority shall be computed from the date of entry into the current classification. Section 1. Shipouts. When possible, least senior Fire Fighters will be given short term or shipout relief duty. In order to maintain training continuity, shipouts of probationary personnel will be subject to the approval of the Fire Chief or their designee. Section 2. Vacation Relief Positions. In order that platoon strengths can be balanced more quickly and to reduce the need for excess overtime, two positions will be designated for vacation relief. These positions will be the lowest two on the Department seniority list who have completed their probationary period. a. The vacation relief persons will be assigned to one station when not on relief assignment. b. Relief assignment can be made to any Station or shift where a shortage of personnel will cause unnecessary overtime. c. Shortages may be caused by vacation, sick leave, disability or any leave of absence that causes a shift to be short of personnel while another has a surplus. d. Shift transfers will be made so as not to cause the relief person to work more than the prescribed number of hours in the prescribed period. e. Relief assignments will be made and hours will be coordinated by the Battalion Chief's office. Section 3. Transfer Requests. Non-probationary fire personnel may submit transfer requests to their immediate supervisor to be forwarded to the appropriate chief officer. Providing that Departmental needs are satisfied, such transfers will be administered using first a mutually agreeable exchange, secondly seniority. 20 The transfer requests shall remain on file during the year and may be granted when a vacancy occurs, providing the requesting employee possesses the experience and performance ability required to fill the vacancy. Section 4. Special Assignments. Management reserves the right to assign personnel to career development opportunities, special projects, seminars, programs and selected educational and/or training courses, based on Fire Department needs and the performance of the employee. Section 5. Continuous Hourly Service. Continuous hours of service in excess of 96 hours are subject to approval by the Fire Chief or designee. Approval may be granted up to 120 hours when an employee has not been engaged in a greater than usual level of activity or is not fatigued. ARTICLE XIII - TRAINING COORDINATION Section 1.Coordination. Three shift employees per platoon may be assigned to assist the Training Officer in the coordination, preparation and scheduling of the training program. It is agreed that volunteers will first be sought for such assignment, and further agreed that the details of this section shall be established by mutual agreement between the Fire Chief and the Union. ARTICLE XIV - PARAMEDIC ASSIGNMENT Section 1. Limit of Eligibility. The City reserves the right to limit eligibility for the Paramedic Program to the Fire Fighter classification. The City may, at its discretion, add other classifications within the represented bargaining unit to meet the need of program changes. Differentials for other classifications will be as provided in Article VIII, Section 1. Section 2. Additional Candidate Training. As the Program progresses, Management will assess the need for training additional Paramedic candidates. It is Management's intention to provide for such additional training as necessary for Program continuity. Section 3. Incentives. Paramedics will receive a one-time cash payment of $500 for each biennial recertification. This provision applies only to active incumbents of authorized paramedic positions who remain in the paramedic assignment for at least one additional year after recertification. The one year requirement after recertification does not apply to those paramedics who may leave the program because of work- related injury or illness, or promotion, nor does it apply when a paramedic is asked by management to recertify in order to voluntarily extend their paramedic service to meet 21 special departmental needs for a period of less than one year. Section 4. Proctoring. Paramedic proctoring assignments will be made by the Chief from among qualified volunteers. Payment of $600 will be made to the primary proctoring paramedic at the conclusion of each proctoring assignment. The Chief or his or her designee will maintain a list of qualified proctors from among volunteers. Personnel will be selected by the Fire Chief or his or her designee from the list to serve as paramedic proctors. If a conflict arises between the City and the Union regarding the Proctor Program, either side may suspend the program at the annual renewal period and shall remain suspended until a resolution or agreement is reached. Section 5. Field Training Stipend. Employees assigned to provide field training for new paramedic accreditation will receive a $300 stipend to train a new paramedic or EMT to successful completion of paramedic accreditation. This assignment is at the discretion of the Chief or their designee. ARTICLE XIV - PROMOTION Section 1. Promotion Step Level. All regular promotions from classifications within the representation unit to the classification of Fire Captain will be made at the sixth step on the salary range. Section 2. Promotion Process Information. For promotions to positions within the representation unit, promotion process information will be available in the Human Resources Department office at the time of posting. Information will include applications, minimum qualifications, study material reference information, if appropriate, and information on passing scores. Any changes in an established testing process must be submitted in writing to the Union for review and input no fewer than 60 days prior to the beginning of the process. ARTICLE XVI - REDUCTION IN FORCE Section 1. Order of Reduction. If the work force is reduced (reduction in force) within a represented classification, unit employees having the shortest length of service with the Fire Department will be laid off first so long as employees retained are fully qualified, trained and capable of performing remaining work. ARTICLE XVII - SELECTIVE CALL BACK WITH REGARD TO RESIDENCY Section 1. In Case of Emergency Management may use selective call back with regard to residency in cases of emergency. 22 ARTICLE XVIII - HEALTH BENEFITS Section 1. Maintenance of Levels Except as otherwise set forth herein, the City will maintain the present level of benefits on all City-sponsored medical programs. Section 2. Vision Care a) Level of Benefits: The City offers vision care coverage for employees and dependents.The City provides a base vision plan for all eligible employees and dependents. Additionally, eligible employees will have the option to enroll in a vision “buy-up” plan. Coverage is equivalent to $20 Deductible Plan A under the Vision Service Plan, with monthly premiums paid by the employer. Dependents include domestic partners, as defined under Article XX Section 3(b). a)b) Premiums: The City shall pay all premium payments on behalf of employees and dependents who are eligible and enrolled in coverage under the base vision plan. Employees will be responsible for premium payments required to enroll in the “buy up” vision plan. Section 3. PEMHCA Health Plan. a. ACTIVE EMPLOYEES: During the term of this contract, the maximum City contribution towards medical premiums for eligible full time employees per employee category shall be up to a maximum of the following for any plan: Effective July 1, 2025, the City will increase its maximum contribution to the following: Medical Category Premium Total Maximum City Contribution (inclusive of PEMHCA contribution*) effective July 1, 2025 Employee Only Employee plus one Employee Family $943.00 $1,885.00 $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% 23 Medical Category Premium Total Maximum City Contribution (inclusive of PEMHCA contribution*) effective January 1, 2027 Employee Only Employee plus one Employee Family $962.00 $1,942.00 $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 Contribution (inclusive of PEMHCA contribution*) effective January 1, 2028 Employee Only Employee plus one Employee Family $1,000.00 $2,020.00 $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. * Any increases to the PEMHCA minimum during the term of this contract will result in a corresponding decrease to the amount of the additional City contribution, so that the total maximum City contribution never exceeds the Total Maximum City Contribution described above. If the State of California or federal government requires the City to participate and contribute toward coverage under any medical plan outside of PEMHCA including but not limited to the Affordable Care Act, the City’s total liability for enrolled employees and retirees and their eligible family members shall not exceed what the City would have paid toward PEMHCA coverage in the absence of such state or federal plan. The parties will meet and confer over the impact of such change on matters within the scope of representation before implementing any change. b. Flexible Compensation: Effective the first pay period including Council adoption of the MOUJanuary 28, 24 2023, in lieu of additional increases to the City’s medical premiums, hourly wages for all bargaining unit classifications will werebe increased by $100 per month ($1200 per year). Employees can utilize this cash payment for any purpose, including to cover health insurance premiums or contribute to flexible spending accounts/457 deferred compensation plans. Effective the first full pay period of January 2024, hourly wages for all bargaining unit classifications will were be increased by an additional $100 per month. c. Active employee domestic partners whose domestic partnership is registered with the State of California may add their domestic partner as a dependent to their elected health plan coverage if the domestic partner is registered with the Secretary of State. Active employee domestic partners whose domestic partnership is not registered with the State but who meet the requirements of the City of Palo Alto Declaration of Domestic Partnership, and are registered with the Human Resources Department, will be eligible for reimbursement of the actual monthly premium cost of an individual health plan, not to exceed 90% of the average monthly premium cost of individual coverage under the PEMHCA health plans in 2016. Effective with the first pay period including January 1, 2017, a stipend of two hundred eighty four ($284) per month toward the cost of an individual health plan will be provided. Evidence of premium payment will be required with request for reimbursement. d. Alternate Medical Benefit Program. If a regular employee and/or the employee’s dependent(s) are eligible for and elect to receive medical insurance through any non-City of Palo Alto sponsored or association medical plan, the employee may choose to waive his/her right to the City of Palo Alto’s medical insurance coverage and receive cash payments in the amount of two hundred and eighty four dollars ($284) for each month City coverage is waived. Examples of waivers eligible for this payment are: • Employee waives all applicable City medical coverage; or • Employee is eligible to enroll his or her spouse or domestic partner and waives medical coverage for the spouse or domestic partner; or • Employee has additional eligible dependents and waives family-level medical coverage. Participation must result in a health insurance cost savings to the City and payments per employee shall not exceed a total of two hundred eighty four dollars ($284) per month. To participate in the program the employee and dependents must be eligible for coverage under PEMHCA medical plans, complete a waiver of medical coverage form, and provide proof of eligible alternative medical coverage. 25 Payments will be made in the employee’s paycheck beginning the first month following the employee’s completion of the waiver form. Payments are subject to state and federal taxes and are not considered earnings under PERS law. Employees are responsible for notifying the City of any change in status affecting eligibility for this program (for example, life changes affecting dependent’s eligibility for medical coverage through the employee) and will be responsible for repayment of amounts paid by the City contrary to the terms of this program due to the employee’s failure to notify the City of a change in status. e. Dual Coverage. When a City employee is married to another City employee each shall be covered only once (as an individual or as a spouse of the other City employee, but not both) and dependent children, if any, shall be covered only by one spouse. ARTICLE XVIIIIX - DENTAL BENEFITS Section 1. Level of Benefits. The City will maintain the present level of benefits on the City- sponsored dental program. The City provides a base dental plan for all eligible employees and dependents. Additionally, eligible employees will have the option to enroll in a dental “buy-up” plan. Maximum benefits per calendar year shall be $2,000. Section 2. Premiums. The City shall pay all premium payments or equivalent self- insured program charges on behalf of employees and dependents who are eligible and enrolled for coverage under the existing base dental plan. Dependents will include domestic partners, as defined under Article XX, Section 3(b). Employees will be responsible for premium payments required to enroll in the “buy up” dental plan. Section 3. Orthodontia Benefit Maximum. The City will provide a 50% of reasonable charges, $2,000 lifetime maximum orthodontic benefit for representation unit employees and their dependents. ARTICLE XIX - LIFE INSURANCE Section 1. Premiums. The City currently pays the following amounts of premium on behalf of Fire personnel: Per Pay Period Per Month (Approx.) Basic Life Insurance and Basic ADD $.085 $ .185 (per $1,000 of coverage) 26 The City will provide employees with Basic and Supplemental life insurance plans. The basic life insurance provided by the City shall equalThe City shall pay the premium for basic life insurance coverage equal to one times the employee’s base monthly salary multiplied by twelve.annual salary. Employees will have the option of enrolling in supplemental life insurance by paying the premiums required to enroll in the plan. ARTICLE XXI - RETIREMENT BENEFITS Section 1. PERS Retirement Formula. Safety Pension Group A: 3%@50 Safety Retirement The City will continue the present benefits under the Public Employees' Retirement System (PERS) "3 percent at 50 (3%@50)" formula for employees hired before the effective date of the “3 percent at 55” (3%@55) formula for new hires as described herein. The final year compensation for employees hired under the 3% at 50 formula will continue to be “Single highest year” or the highest average annual compensation earnable by the member during one (1) year of employment immediately preceding retirement or the one-year period otherwise designated by the member (Government Code section 20042). Safety Pension Group B: 3%@55 Safety Retirement Effective December 7, 2012, the City amended its contract with CalPERS to provide employees hired on or after that date who are not “new members” of CalPERS, as defined in the Public Employees’ Pension Reform Act (often referred to as “classic” CalPERS members) with the CalPERS retirement formula three percent of final salary at age 55 (“3%@55”), with the final salary determination for such employees of “3 highest consecutive years” based on the highest average annual compensation earnable by the member during three (3) consecutive years of employment immediately preceding retirement or the three-year period otherwise designated by the member (Government Code section 20037). Safety Pension Group C: 2.7% at Age 57 Safety Retirement Employees hired on or after January 1, 2013 meeting the definition of “new member” under the Public Employees’ Pension Reform Act (Gov’t. Code s. 7522 et seq.) shall be subject to all of the provisions of that law, including but not limited to the two point seven percent at age 57 (2.7%@57) retirement formula with a three year final compensation period. Miscellaneous Pension Formulas: a. Miscellaneous Pension Group A: 2.7% at 55. The City provides retirement benefits under the California Public Employees Retirement System at the level of 2.7% at age 55 for employees hired before July 17, 2010, with a one year final compensation period. b. Miscellaneous Pension Group B: 2% at 60:For miscellaneous employees hired 27 on or after July 17, 2010, and before January 1, 2013, and employees hired on or after January 1, 2013 who are not “new members” of CalPERS as defined in the Public Employees’ Pension Reform Act (often referred to as “Classic” CalPERS members)the City offers the CalPERS retirement formula two percent (2.0%) of final salary at age sixty (60), with a one (1) year final compensation period. a.c. Miscellaneous Pension Group C: 2% at 62. Employees hired on or after January 1, 2013 meeting the definition of “new member” under the Public Employees’ Pension Reform Act (Gov’t. Code s. 7522 et seq.) shall be subject to all of the provisions of that law, including but not limited to the two percent at age 62 (2%@62) retirement formula with a three (3) year final compensation period. Section 2. PERS Member Contribution. a. Employees in all represented classes in Pension Groups A and B described above will make the 9% PERS member contributions by payroll deduction. b. Employees in all represented classes in Pension Group C described above shall pay the employee contribution required by the Public Employees’ Pension Reform Act, currently calculated at fifty percent (50%) of the normal cost. c. When employees pay their PERS Member Contribution pursuant to section 3a and 3b above, the City will provide for member contributions to be made as allowed under provisions of IRS Code Section 414(h)(2). Section 3. Additional Employee PERS contributions In addition to the PERS member contribution as required under section 2. a, b and c above, all employees in pension groups a, b and c shall contribute the additional following contributions: a. In addition to the Member Contribution required per CalPERS 20516 contract amendment all employees regardless of pension formula in this unit shall pay 3% towards the Employer share of Pension. b. Effective the first full pay period following July 1, 2020, all employees regardless of pension formula in this unit shall, in addition to the Member Contribution required, pay an additional 1% towards the employer share of Pension for a total of 4%. Section 4. Option 2 Death Benefit. The City provides the Pre-Retirement Option Settlement 2 Death Benefit. The Pre-Retirement Optional Settlement 2 Death Benefit provides the spouse of a deceased member, who was eligible to retire for service at the time of death, with an alternate option to the lump sum Basic Death Benefit whereby the 28 surviving spouse can elect a monthly allowance equal to the amount the member would receive if he/she had retired from service on the date of death and elected Optional Settlement 2 (the highest monthly allowance a member can leave a spouse). Section 5. Military Service Credit. The City will provide the Public Employees’ Retirement System benefit known as “Section 20930.3, Military Service Credit as Public Service.” Section 6. 1959 Survivor Benefit. The City will continue to provide the basic level of 1959 PERS Survivor Benefit to eligible employees in accordance with Government Code section 21571. Section 7. Employer Contributions to 457 Plan Effective the first full pay period following July 1, 2020, the City will contribute the equivalent of 1% of the employee’s pensionable salary into the 457 plan. Eligibility: a. Employees must be enrolled in an eligible City sponsored 457 plan b. Employees who reach the maximum as defined by the IRS will not receive additional contributions c. Employee must be making PERS contributions ARTICLE XXII - RETIREMENT MEDICAL PLAN Section 1. Retiree medical coverage for Unit employees hired before January 1, 2004: Monthly City-paid premium contributions for a retiree-selected PEMHCA optional plan will be made in accordance with the Public Employees' Medical and Hospital Care Act Resolution for employees that retire on or before December 31, 2006. Effective January 1, 2007 for an employee retiring on or after that date the City will pay up to the monthly medical premium for the 2nd most expensive plan offered to IAFF employees among the existing array of plans. However, the City contribution for an employee hired before January 1, 2004 who retires on or after December 1, 2011 shall be the same contribution amount it makes for active City employees. Effective upon ratification and adoption of this AgreementStarting June 1, 2016 through August 31, 2016, the City shall provided active unit employees who were hired before January 1, 2004 with a one-time opportunity to opt-in to retiree health benefits provided under California Government Code section 22893. Eligible employees who wish to exercise this option shall inform the People, Strategy, and Operations department of their election in writing no later than 90 days following the ratification and adoption of this Agreement. Section 2. 20-Year Vesting for Retiree Medical Coverage for Unit Employees 29 Hired On Or After January 1, 2004: The retiree health benefit provided in California Government Code section 22893 shall apply to all employees hired on or after January 1, 2004. Under this law, an employee is eligible to receive Fifty (50) percent of benefit after ten (10) years; each additional service credit year after Ten (10) years will increase employer credit by Five (5%) percent until Twenty (20) years is reached at which time employee is eligible for One Hundred (100%) percent of annuitant-only coverage and Ninety (90%) percent of the additional premium for dependents. ARTICLE XXIIV - DEPENDENT CARE ASSISTANCE PROGRAM (DCAP) Section 1. DCAP. The City will provide a dependent care assistance program for employees subject to the provisions of applicable law. The program will remain in effect subject to a reasonable minimum participation level and availability of third party administrative services at a reasonable cost. Disputes regarding the administration of the plan shall be subject to the dispute resolution procedure provided by the plan document. Section 2. HCFSA. The City will provide healthcare flexible spending program for employees subject to the provision of applicable law. Disputes regarding the administration of the plan shall be subject to the dispute resolution procedure provided by the plan document. The HCFSA program will be available to employees effective January l, 2026, and remain in effect subject to a reasonable minimum participation level and availability of third-party administrative services at a reasonable cost. ARTICLE XXIIIV - VACATION ACCRUAL Section 1. Accrual Rate. All eligible fire suppression persons shall accrue vacation at the following rate for continuous service performed in a pay status. Non-shift representation unit employees shall accrue the 40-hour equivalent--one shift equals sixteen hours. a. For employees completing less than four years continuous service, the accrual rate shall be five duty shifts per year. b. For employees completing four but not more than nine years continuous service, the accrual rate shall be eight duty shifts per year. c. For employees completing nine but not more than 14 years continuous service, the accrual rate shall be 10 duty shifts per year. d. For employees completing 14 but less than 19 years continuous service, the accrual rate shall be 11 duty shifts per year. e. For employees completing 19 or more years continuous service, the accrual rate shall be 12 duty shifts per year. 30 At the time of initial appointment to the City, the City may credit an employee for prior years of public service in a city, county, special district, state or federal government agency, up to a maximum of four (4) years of service. The City Manager or designee shall identify the number of years for which the employee will receive credit (up to the four (4) year maximum). Section 2. Unused At Termination. Represented employees who fail to use all vacation as accrued may continue the accrual balance and be entitled to all accrued but unused vacation upon termination, except as limited below. Section 3. Limits. Vacation accrual balances shall be limited to three times the annual accrual rate. Accrual credit beyond this limit shall not be recognized or compensated, except that for employees of record as of January 1, 1984 who have vacation excess on a one-time basis shall be set aside (banked) to be subsequently used as vacation or paid at termination. No additions may be made to the bank. The bank is established only to facilitate changeover from unlimited to three times annual accrual rate limitation on vacation accrual as herein provided. ARTICLE XXIV - USE OF VACATION Section 1. Maximum Number of Slots. The maximum number of vacation scheduling slots for representation unit suppression employees is four (4) per platoon on a year- round basis. During the term of the contract, parties agree to meet to discuss the impact of the number of vacation slots per day on daily staffing. Section 2. Approvals. Vacation scheduling must be approved by the Battalion Chief or Fire Chief. The minimum is twelve (12) hours or more for suppression employees. Advance vacation schedules for suppression shall begin either at 8:00 a.m. or 8:00 p.m. Section 3. Vacation Pay. Vacation pay shall be made available in advance of regular pay day provided that employee requests such advance in writing to the Finance Department at least two weeks prior to his/her vacation date. The employee's supervisor must verify vacation date on the request. Section 4. Illness on Vacation. When an employee becomes ill while on vacation and such illness can be supported by a statement from an accredited physician or the employee is hospitalized for any period, the employee shall have the period of illness charged against sick leave and not against vacation leave. Section 5. When to be Taken. The time at which an employee may use accrued vacation leave and the amount to be taken at any one time shall be determined by the Chief with particular regard for the needs of the City, but insofar as possible, considering 31 the wishes of the employee. Section 6. Limitation on Use. Employees may not use more than three times their annual rate of accrual in any calendar year period provided, however, that the Chief may grant exceptions to this limitation. Section 7. Waiting Period. Employees shall complete six months continuous service before using accrued vacation leave. Section 8. Double Compensation Prohibited. Employees shall not work for the City during their vacation. Section 9. Cash out Option. Once each calendar year an employee may cash out eight (8) or more hours of vacation accrual in excess of eighty (80) hours to a maximum of one hundred twenty (120) hours; PROVIDED, that the employee has taken eighty (80) hours of vacation off with pay in the previous twelve (12) months. ARTICLE XXVI - SICK LEAVE Section 1. Statement of Policy. Sick leave shall be allowed and used only in case of actual personal sickness or disability, medical or dental treatment, or as authorized in Section 9. Up to six (6) days (72 shift hours for suppression personnel) Ssick leave per year may be used for illness in the immediate family (wife, husband, child, parent, parent- in-law, brother, sister, registered domestic partner, or close relative residing in the household of the employee.) Section 2. Eligibility. Regular employees shall be eligible to accrue and use sick leave. Section 3. Accrual. Sick leave shall be accrued bi-weekly, provided the employee has been in a pay status for 50 percent or more of a bi-weekly pay period. Sick leave shall be accrued at the rate of six shifts per year. Section 4. Accumulation. Accumulated sick leave may be accrued without limit, except as provided in Section 8 below. Section 5. Use. Sick leave may be used as needed and approved, to the point of depletion, at which time the employee will no longer receive pay for sick leave. A new employee may, if necessary, use up to forty-eight (48) hours or shift equivalent of sick leave at any time during the first six months of employment. Any negative balances generated by such utilization will be charged against future accrual or deducted from final paycheck in the event of termination. An employee who has been disabled for 60 consecutive days and who is otherwise eligible both for payment under the long-term disability group insurance coverage and accrued sick leave benefits may, at his/her option, choose either to receive the long- 32 term disability benefits or to utilize the remainder of his/her accrued sick leave prior to applying for long-term disability benefits. Sick leave will not be granted for illness occurring during any leave of absence other than sick leave, unless the employee can demonstrate that it was necessary to come under the care of a doctor while on such other leave of absence. When an employee finds it necessary to be absent for any reason, he/she should cause the facts to be reported to the department within 60 minutes prior to his/her regular starting time on the first working day of absence, and shall regularly report on, or account in advance for each work day thereafter unless hospitalized or otherwise indisposed. Such reports may be subject to written documentation. Sick leave shall not be granted unless such report or advance accounting has been made, provided, however, that the department head may grant exception to this policy where the circumstances warrant. Section 6. Depletion of Sick Leave Benefits. Upon depletion of sick leave or the beginning of the period to be covered by payments under long-term disability group insurance coverage, whichever comes first, an employee may be granted a medical leave of absence without pay for a period not exceeding sixty days. If the employee is unable to return to work at the end of this period, he/she must request further medical leave which will be subject to the approval of the City Manager. If further leave is granted, the employee must notify the City of intent to return to work every thirty days. If further leave is not granted, the employee's service with the City shall be considered terminated. Section 7. Forfeiture Upon Termination. Employees leaving the municipal service shall forfeit all accumulated sick leave, except as otherwise provided by law and Section 8. In the event that notice of resignation is given, sick leave may be used only through the day which was designated as the final day of work by such notice. Section 8. Payment for Accumulated Sick Leave. Eligible employees (those hired before December 31, 1983) who leave the municipal service in good standing, or who die while employed in good standing by the City, and who have fifteen or more years of continuous service, shall receive compensation for unused sick leave hours in a sum equal to two and one-half percent of their unused sick leave hours multiplied by their years of continuous service and their basic hourly rate of pay at termination. Full sick leave accrual will be paid in the event of termination due to disability. For new employees hired after December 31, 1983, sick leave accrual accumulation will be limited to 1,000 hours with no payoff provisions for unused balance at termination for any reason. Section 9. Personal Business Leave Chargeable to Sick Leave. It is agreed between the parties that all shift personnel represented by the Union shall have the right to charge up to forty-eight (48) hours personal business leave per year to sick leave, and that all non-shift personnel shall have the right to charge up to twenty (20) hours personal 33 business leave per year to sick leave. Such personal business leave shall be allowed only on a staffing available basis and where the provisions of the minimum staffing agreement are not affected. "Staffing available" means at or above minimum staffing levels as defined in Article XII. Section 10. Return to Work or Continue Work With Limited Duty. In cases of non- work-related injury, illness or pregnancy an employee, upon approval of the Fire Chief and the City Safety Officer, may return to work or continue work with doctor-approved limited duty. Approval for such limited duty shall be based upon department ability to provide work consistent with medical limitations and the length of time of the limitations. Shift employees must be willing to accept any non-shift limited duty schedule work location and may be subject to the reasonable availability of limited duty assignments. The City doctor may be consulted in determining work limitations. ARTICLE XXVII - SUBPOENAS Employees required to answer subpoenas as a witness for the City of Palo Alto or for a plaintiff where the City of Palo Alto is a defendant shall not lose pay or benefits for work time lost to answer depositions or to appear in court. ARTICLE XXVIII - WORKERS' COMPENSATION Section 1. Status Reporting While on Disability. Persons on disability will be required to appear or otherwise report at regular two-week intervals to the Fire Chief or designate to discuss his/her status of medical treatment therapy and physical condition. This section is not meant to unreasonably restrict employee's activities so long as such activities are cleared by the treating physician, treating program or alternative treatment program is maintained and employee is available for full or restricted duty as soon as medical clearance can be received. ARTICLE XXVIIIX - PHYSICAL FITNESS MEDICAL EXAMINATIONS Physical fitness medical examinations for all represented employees may include chest x-rays every three years unless otherwise directed by a physician, eye examination and hearing examination. ARTICLE XXIX- LEAVES OF ABSENCE WITHOUT PAY Section 1. Disability. Leaves of absence without pay may be granted in cases of disability not covered by sick leave. Pregnancy will be considered as any other disability. Leaves of absence for disability are subject to physician's verification including diagnosis and medical work restriction. 34 Section 2. Other Leaves. Leaves of absence without pay may be granted in cases of personal emergency or when such absences would not be contrary to the best interest of the City. Non-disability prenatal and/or postpartum leave is available under this provision, but such leave shall not begin more than six months prenatal nor extend more than six months postpartum. Section 3. Accrued Vacation Credits. During unpaid leaves of absence for disability or other reasons, the employee may elect to use accrued vacation credits. Requests for leaves without pay shall not be unreasonably denied. In order to avoid misunderstandings, all leaves without pay must be in writing to be effective. Section 4. Approval of Department Head. Leave of absence without pay for one week or less may be granted by the department head, depending on the merit of the individual case. Section 5. Approval by City Manager. Leave of absence without pay in excess of one week's duration may be granted by the City Manager on the merit of the case, but such leave shall not exceed twelve months' duration. Section 6. Absence Without Leave. Unauthorized leave of absence shall be considered to be without pay, and reductions in the employee's pay shall be made accordingly. Unauthorized leave of absence may result in termination of employment. Section 7. Leave of Absence; Death Outside the Immediate Family. Leave without pay may be granted a regular employee by his/her department head in the event of death to family members other than one of the immediate family, such leave to be granted in accordance with Section 2 and Section 4. Section 8. Military Leave of Absence. State law shall govern the granting of military leaves of absence and the rights of employees returning from such absence. Section 9. Use of paid accruals while on leave. During unpaid leaves of absence for disability or other reasons, the employee may elect and the City may require the employee to use accrued vacation paid leave credits in a manner consistent with state and federal law. Requests for leaves without pay shall not be unreasonably denied. In order to avoid misunderstandings, all leaves without pay must be in writing to be effective. ARTICLE XXXI - LEAVES OF ABSENCE WITH PAY Section 1. City Manager Granted Leaves. The City Manager may grant a regular employee under his control a leave of absence with pay for a period not exceeding thirty calendar days for reasons he deems adequate and in the best interest of the City. Section 2. Council Granted Leave. The City Council may grant a regular employee a leave of absence with pay for a period not to exceed one year for reasons the Council 35 considers adequate and in the best interest of the City. Section 3. Employee's Time Off to Vote. Time off with pay to vote at any general or direct primary election shall be granted as provided in the State of California Elections Code, and notice that an employee desires such time off shall be given in accordance with the provisions of said Code. Section 4. Leaves of Absence; Death in Immediate Family. Leave of absence with pay of one shift with provision for approval of one additional shift for travel outside the area may be granted an employee by the Chief in the event of death in the employee's immediate family, which is defined for purposes of this section as wife, husband, son, son-in-law, daughter, daughter-in-law, father, mother, brother, brother-in-law, sister, sister-in-law, mother-in-law, father-in-law, grandfather, grandfather-in-law, grandmother, grandmother-in-law, uncle, aunt, registered domestic partner, or a close relative residing in the household of the employee. Such leave shall be at full pay and shall not be charged against the employee's accrued vacation or sick leave. Requests for leave in excess of two shifts shall be subject to the approval of the City Manager. Section 5. Jury Duty; Leave of Absence. Employees required to report for jury duty shall be granted a leave of absence with pay from their assigned duties until released by the court, provided the employee remits to the City all fees received for such duties other than mileage or subsistence allowances within thirty days from the termination of his or her jury service. ARTICLE XXXII – VOLUNTEER LEAVE PROGRAM The City of Palo Alto has established a Firefighter Voluntary Leave Program to provide members of Local 1319 International Association of Fire Fighters (IAFF) employees the opportunity to donate their accrued vacation time to assist fellow members of IAFF either due to: (a) an employee’s own verifiable non-industrial catastrophic illness or injury (as defined herein) or (b) in order to care for a member of the employee’s immediate family (spouse, child, parent or registered domestic partner suffering from a verifiable catastrophic illness or injury) and have exhausted or will presently exhaust all of their paid leave. In order to be eligible to receive donated leave, an employee must have a catastrophic illness or injury or an employee’s immediate family member must have a catastrophic illness or injury that requires the employee to provide full-time care for this family member. Care will be taken to emphasize the voluntary nature of the plan and to insure confidentiality of employee participants and medical conditions (where applicable). A Firefighter Voluntary Leave Sharing Program has been established to accept donations of vacation in accordance with the Program’s guidelines. All donations shall be: 1. Voluntary 36 2. Irrevocable 3. Confidential, unless disclosure is required by law 4. In whole hour increments of at least four (4) hours, with the hours donated being converted to donee hours based on the donee’s salary rate (so that there will be no cost to the City due to salary differential). 5. The employee shall be required to exhaust all other types of leave to request donated leave 6. It is understood that employees seeking or receiving leave under this program will apply for long-term disability benefits for which they may be eligible 7. Where any of the period during which an employee receives donated leave is designated as family leave under the California Family Rights Act (CFRA/Family Medical Leave Act (FMLA), the employee will be eligible for continuation of medical and other available benefits during that the family leave period (for up to 12 weeks), in accordance with the requirements of those laws. If the employee receiving donated leave is not eligible for CFRA/FMLA benefit continuation, or after the employee has exhausted the available CFRA/FMLA leave period, the employee will need to pay the premiums for continued medical and other available benefits if the employee chooses to continue such coverages through the City 8. If the donation request is based on the need for an employee to care for an immediate family member, as defined above, the family member must require full-time care by the employee. Certification of this requirement by a health care professional is required 9. The maximum donated time a donee may receive is 12 months (if available). 10. Applications to donate leave or receive leave under this Program are made to the Human Resources Department 11. This is a pilot program and is subject to cancellation by either party IAFF members interested in donating leave or in applying to receive donated leave shall complete forms provided by the Human Resources Department. If an applicant for leave is found to meet the criteria set forth herein, Human Resources will determine the availability of and (as applicable) allocation of donated paid leave. Payroll will be notified in writing of the number of hours to be deducted from each donating employee’s vacation balance and transferred to the donee employee(s). The City reserves the right to modify or terminate this program at any time. Catastrophic Illness or Injury (also referred to as “medical emergency” in Revenue Ruling 90-29 and Sections 801(c) and 812 of the Merit Rules and Regulations): A non- occupational medical condition of an employee that will require the prolonged absence of the employee from duty and which will result in a substantial loss of income to the employee because the employee will have exhausted all paid leave available apart from the Voluntary Employee Leave sharing Program. Non-disability postpartum leave as referenced in Merit Rule 801(b) shall not be considered a catastrophic illness or injury under this Policy. 37 ARTICLE XXXIII- TUITION REIMBURSEMENT Section 1. Options. Effective July 1, 2004 the tuition reimbursement program was amended to provide each employee the option of receiving the $1,000 as taxable cash or as a contribution to deferred compensation. The tuition reimbursement program will be eliminated effective July 1, 2012 with no further payouts starting in FY 12-13 and on-going. ARTICLE XXXIIIV - PER DIEM TRAVEL EXPENSES Section 1. City Business. Unless other mutually agreeable arrangements are made, representation unit employees who are required to travel away from the City on City business will receive travel expenses, according to City policies which are currently in effect. ARTICLE XXXIV - HOUSE FUND ITEMS Section 1. Station House Fund. The station house fund per year, per shift employee shall be $100.00. Section 2. Non-Food House Items. The City agrees to furnish and maintain each fire station with non-food house fund items: TV purchase and repair. Kitchen cooking utensils, small kitchen appliances and other specific items to be determined by mutual agreement of the parties will be purchased from the station house fund. The Fire Fighters agree to maintain the voter registration program. ARTICLE XXXVI - PARKING Section 1. Entitlements. Employees in represented classes assigned to Civic Center or adjacent work locations shall be entitled to free parking in the Civic Center Garage, or a commute incentive which will be subject to meet and confer. Employees hired after July 1, 1994, may initially receive a parking permit for another downtown lot, subject to availability of space at the Civic Center Garage. Light duty employees assigned to the Civic Center will receive Civic Center parking temporary permits for the duration of the light duty assignment. ARTICLE XXXVII- GRIEVANCES The City and the Union agree to establish a grievance procedure as follows: 1. Definition: A grievance is any complaint or dispute regarding the application of interpretation of this Memorandum of Understanding, Department rules, 38 regulations, policies or procedures relating to wages, hours or other terms and conditions of employment. 2. Any non-probationary employee represented by the Union may file and process a grievance. Such aggrieved employees may be represented by the Union or may represent themselves in preparing and presenting their grievance at any level of review. The Union may file a grievance when a Union right not directly related to an individual employee becomes subject to dispute. 3. Any retroactivity on monetary grievances shall be limited to the date of occurrence, except in no case will retroactivity be granted prior to three months before the grievance was filed in writing. 4. Written grievances shall be submitted on forms provided by the City or on forms which are mutually agreeable to the City and the Union. The Union shall deliver a copy of a written grievance to the Human Resources Department Director on the same date that it is first filed with another City representative under the provisions of the below grievance procedure. 5. The time limits specified in this section may be extended by mutual agreement in writing of the aggrieved employee or Union and the reviewer concerned. Should a decision not be rendered within a stipulated time limit, the aggrieved employee may immediately appeal to the next step. The grievance will be considered settled if the decision of any step is not appealed within the specified time limit. 6. If a grievance is related to a promotional process to positions within the representation unit, Step I shall be directed to the Deputy Fire Chief (or Fire Marshal for FPB positions). 7. Step I. The aggrieved employee will first attempt to resolve the grievance through informal discussions with the immediate supervisor by the end of the tenth business day following the discovery of the incident upon which the grievance is based. Every attempt will be made to settle the issue at this level. Step II. If the grievance is not resolved through informal discussion, it may be submitted in writing to the Battalion Chief (Deputy Fire Chief for Captain grievances) within ten business days of the informal discussion. The Battalion Chief/Assistant Fire Chief will have ten business days from receipt of the grievance to review the matter and prepare a written response. If the grievance is denied, the response shall contain the reasons therefore. Step III. If the grievance is not resolved in Step II, it may be submitted in writing to the Fire Chief within ten business days of receipt of the Battalion Chief's/ Deputy Fire Chief's written response. The Fire Chief will have ten business days from receipt of the grievance to review the matter and prepare a written response. If the grievance is denied, the response shall contain the reasons therefore. 39 Step IV. If the grievance is not resolved in Step III, the aggrieved employee may submit the grievance to the City Manager for final determination or to binding grievance arbitration. All Step IV appeals must be filed in writing at the Human Resources Department Office within ten business days of receipt of the Fire Chief's response under Step III. All hearings before the City Manager shall be pursuant to the rules and regulations set forth in the City of Palo Alto Merit Rules and Regulations. Hearings before an arbitrator will be as set forth below. In the event the aggrieved employee decides to proceed to arbitration, he/she shall select jointly with the Director of Human Resources an arbitrator. If the parties are unable to agree on an arbitrator, they shall jointly request a panel of five qualified and experienced arbitrators from the State Conciliation Service. Upon receipt of the list of arbitrators, the names shall be alternately struck until one name remains who shall serve as arbitrator. The arbitrator shall be jointly contacted by the parties. The arbitrator shall have jurisdiction and authority only to interpret, apply, or determine compliance with the provisions of the Memorandum of Agreement and such Merit System rules, regulations, policies, procedures, City ordinances or regulations relating to terms or conditions of employment, wages or fringe benefits, as may hereafter be in effect in the City insofar as may be necessary to the determination of grievances appealed to the arbitrator. The arbitrator shall be without power to make any decision: a. Regarding matters of interest. b. Contrary to, or inconsistent with or modifying in any way, the terms of this Memorandum of Agreement. c. Granting any wage increases or decreases. d. Granting pay or benefits for any period of time prior to the execution date of this Memorandum of Agreement. Where either party seeks arbitration and the other party claims the matter is not subject to the arbitration provisions of the Memorandum of Agreement, the issue of arbitrability shall first be decided by the arbitrator using the standards and criteria set forth in this Memorandum of Agreement. The arbitrator shall be without authority to require the City to delegate or relinquish any powers which by State law or City Charter the City cannot delegate or relinquish. Copies of the arbitrator's decision shall be submitted to the City and the aggrieved employee. All direct costs emanating from the arbitration procedure shall be shared equally by the City and the aggrieved employee or the Union. It is further agreed that the provisions of this section shall be incorporated as part of Chapter 11 of the City of Palo Alto Merit System Rules and Regulations. Existing procedures set forth in Chapter 11, to the extent they are inconsistent with the provisions contained herein, are superseded. 40 ARTICLE XXXVIII- SAFETY COMMITTEE Section 1. Committee A Safety Committee comprised of four representation unit members appointed by the Union, and at least two members of Management, will continue to meet. The Committee may make safety recommendations to the Fire Chief regarding equipment, vehicles and apparatus and may review all accidents involving represented personnel. Management shall inform the Safety Committee of all accidents involving injuries to represented personnel. ARTICLE XXXVIIIX – MISCELLANEOUS Section 1. Section 1. Uniforms. The value of the purchase, rental and/or maintenance of the required uniforms shall be reported as special compensation to the extent legally permissible, pursuant to Title 2 CCR, Section 571(a)(5) as Uniform Allowance. Based upon existing uniform standards and the City’s cost experience, the value of this benefit shall be reported as $15.31 per pay period. The City will supply complete uniforms as described in Fire Department Policy 1031. The City will issue four T-shirts to each uniformed employee each July These T-shirts are for use on duty only and will be maintained by the employee. Section 2. Removal of Disciplinary Actions. Records of disciplinary actions shall be removed from the personnel file of a representation unit employee upon written request by the employee after a period of three years, or sooner if mutually agreed by the Fire Chief and the employee. If the disciplinary action involved violations of the City’s anti- harassment policy, state/federal harassment or discrimination laws, or if there have been subsequent violations of the same policy during the three-year period, the Fire Chief may deny the request for removal. In such cases, the employee may request a review meeting with the Fire Chief or designee, Union President or designee, and Human Resources. The final decision following this review meeting is final and not subject to any grievance or appeal rights. ARTICLE XXXIXL - FULL UNDERSTANDING Section 1. Full and Entire Understanding. The Memorandum of Agreement contains the full and entire understanding of the parties regarding the matters set forth herein. 41 Section 2. Fair Labor Standards Act. Compensatory time off with Management approval may be used as an alternative to overtime compensation only within the 27- day work period within which the overtime is worked. Section 3. Severability. Should any of the provisions herein contained be rendered or declared invalid by reason of any existing State or Federal legislation or by reason of State or U.S. Supreme Court ruling, such invalidation of such part or portion of this Memorandum of Agreement shall not invalidate the remaining portions hereof, and they shall remain in full force and effect, insofar as such remaining portions are severable. Section 4. Good Faith. It is the intent of the parties that ordinances, resolutions, rules and regulations enacted pursuant to this Memorandum of Understanding be administered and observed in good faith. Section 5. Merit System Rules and Regulations. During the term of this Memorandum of Agreement, Management may propose certain changes in the City Merit System Rules and Regulations. With regard to such changes which pertain to the representation unit, the parties agree to review, and upon request, meet and confer regarding the changes. Section 6. Station Consolidation or Relocation . During the term of this agreement, at management request, the parties agree to meet and confer with regard to issues pertaining to fire station consolidation or relocation. Section 7. Meet and Confer. Nothing in this agreement shall preclude the parties from mutually agreeing to meet and confer on any subject within the scope of representation during the term of this agreement. ARTICLE XLI – 48/96 Work Schedule The regular schedule for 56 hour personnel will be under a “48/96” model. With the adoption of this “48/96” schedule the parties agreed to revise Fire Department policy 205.6 typical workday and 1009.8.1 Reporting for Duty- Holidays. ARTICLE XLII – FUTURE SERVICE DELIVERY MODELS Effective upon request of the City, the parties will meet and confer in good faith regarding the service delivery model of current inspection services and transport during the term of this Agreement. ARTICLE XLIII - DURATION This Memorandum of Agreement shall become effective upon ratification by both 42 parties hereto and remain in effect through June 30, 20285. 38 EXECUTED: FOR: FOR: INTERNATIONAL ASSOCIATION CITY OF PALO ALTO FIRE FIGHTERS __ __ _____ __ __ ___ __________ __________ 39 1 MEMORANDUM OF AGREEMENT Between CITY OF PALO ALTO and I.A.F.F. LOCAL 1319 July 1, 2025 – June 30, 2028 2 PREAMBLE __________________________________________________________ 7 ARTICLE I - RECOGNITION _____________________________________________ 7 Section 1. Recognition. ______________________________________________________ 7 ARTICLE II - NO DISCRIMINATION _______________________________________ 7 Section 1. No Discrimination. __________________________________________________ 7 Section 2. Free Choice. ______________________________________________________ 7 Section 3. Human Relations Committee. _________________________________________ 7 ARTICLE III - PAYROLL DEDUCTIONS ____________________________________ 7 Section 1. Payroll Deductions and Written Authorization. ____________________________ 8 Section 2. Certification of Union Membership _____________________________________ 8 Section 3. Indemnification ____________________________________________________ 8 ARTICLE IV - UNION ACTIVITIES ________________________________________ 8 Section 1. On-Duty Time. _____________________________________________________ 8 Section 2. Interoffice Mail, Bulletin Boards, and E-Mail. ______________________________ 8 Section 3. Use of Meeting Places. ______________________________________________ 9 ARTICLE V - NO STRIKES ______________________________________________ 9 Section 1. No Strikes. ________________________________________________________ 9 ARTICLE VI - PROBATIONARY PERIOD __________________________________ 9 Section 2. Part of Testing Process. _____________________________________________ 9 Section 3. Suspension or Termination. __________________________________________ 9 ARTICLE VII - SALARY PROVISIONS ____________________________________ 10 Section 1. Base Wage Rates. ________________________________________________ 10 Section 2. Out-of-Class Compensation. _________________________________________ 11 Section 3. Salary Steps _____________________________________________________ 11 Section 4. Pay for Court Appearance. __________________________________________ 12 Section 4. Classifications ____________________________________________________ 12 ARTICLE VIII - PAY DIFFERENTIALS ____________________________________ 12 f. Paramedic Differential. _________________________________________________ 13 Section 2. Emergency Medical Technician Certification. _________________________ 14 Section 3. Bilingual Pay _____________________________________________________ 14 Section 4. Special Operations Assignment (Haz Mat) _____________________________ 14 Section 5. Fire Investigator Differential. ________________________________________ 14 Section 6. Education Incentive _____________________________________________ 15 ARTICLE IX - HOLIDAYS ______________________________________________ 16 Section 1. Named Holidays. __________________________________________________ 16 Section 2. Conditions. ______________________________________________________ 16 3 ARTICLE X - OVERTIME COMPENSATION _______________________________ 17 Section 1. Compensation. ___________________________________________________ 17 ARTICLE XI - APPARATUS STAFFING ___________________________________ 17 ARTICLE XII - WORK ASSIGNMENTS AND TRANSFERS ____________________ 18 Section 1. Shipouts. _______________________________________________________ 18 Section 2. Vacation Relief Positions. ___________________________________________ 18 Section 3. Transfer Requests. ________________________________________________ 19 Section 4. Special Assignments. ______________________________________________ 19 Section 5. Continuous Hourly Service. __________________________________________ 19 ARTICLE XIII - TRAINING COORDINATION _______________________________ 19 Section 1.Coordination ______________________________________________________ 19 ARTICLE XIV - PROMOTION ___________________________________________ 19 Section 1. Promotion Step Level. ______________________________________________ 19 Section 2. Promotion Process Information. ______________________________________ 19 ARTICLE XV - REDUCTION IN FORCE ___________________________________ 20 Section 1. Order of Reduction. ________________________________________________ 20 ARTICLE XVI - SELECTIVE CALL BACK WITH REGARD TO RESIDENCY ______ 20 Section 1. In Case of Emergency ______________________________________________ 20 ARTICLE XVII - HEALTH BENEFITS _____________________________________ 20 Section 1. Maintenance of Levels _____________________________________________ 20 Section 2. Vision Care ______________________________________________________ 20 Section 3. PEMHCA Health Plan. _____________________________________________ 20 ARTICLE XVIII - DENTAL BENEFITS _____________________________________ 23 Section 1. Level of Benefits. __________________________________________________ 23 Section 2. Premiums. _______________________________________________________ 23 ARTICLE XIX - LIFE INSURANCE _______________________________________ 24 ARTICLE XX - RETIREMENT BENEFITS __________________________________ 24 Section 1. PERS Retirement Formula. __________________________________________ 24 Section 2. PERS Member Contribution. ________________________________________ 25 Section 3. Additional Employee PERS contributions _______________________________ 25 Section 4. Option 2 Death Benefit. _____________________________________________ 26 Section 5. Military Service Credit. _____________________________________________ 26 Section 6. 1959 Survivor Benefit. _____________________________________________ 26 Section 7. Employer Contributions to 457 Plan ___________________________________ 26 ARTICLE XXI - RETIREMENT MEDICAL PLAN_____________________________ 26 Section 1. Retiree medical coverage for Unit employees hired before January 1, 2004: ____ 26 4 Section 2. 20-Year Vesting for Retiree Medical Coverage for Unit Employees Hired On Or After January 1, 2004: ____________________________________________________ 26 ARTICLE XXII - DEPENDENT CARE ASSISTANCE PROGRAM (DCAP) ________ 27 Section 1. DCAP. __________________________________________________________ 27 ARTICLE XXIII - VACATION ACCRUAL __________________________________ 27 Section 1. Accrual Rate. _____________________________________________________ 27 Section 2. Unused At Termination. _____________________________________________ 28 Section 3. Limits. __________________________________________________________ 28 ARTICLE XXIV - USE OF VACATION ____________________________________ 28 Section 1. Maximum Number of Slots __________________________________________ 28 Section 2. Approvals. _______________________________________________________ 28 Section 3. Vacation Pay. ____________________________________________________ 28 Section 4. Illness on Vacation. ________________________________________________ 28 Section 5. When to be Taken. ________________________________________________ 28 Section 6. Limitation on Use. _________________________________________________ 29 Section 7. Waiting Period. ___________________________________________________ 29 Section 8. Double Compensation Prohibited. _____________________________________ 29 Section 9. Cash out Option. __________________________________________________ 29 ARTICLE XXV - SICK LEAVE ___________________________________________ 29 Section 1. Statement of Policy. _______________________________________________ 29 Section 2. Eligibility ________________________________________________________ 29 Section 3. Accrual. _________________________________________________________ 29 Section 4. Accumulation. ____________________________________________________ 29 Section 5. Use. ____________________________________________________________ 29 Section 6. Depletion of Sick Leave Benefits. _____________________________________ 30 Section 7. Forfeiture Upon Termination. ________________________________________ 30 Section 8. Payment for Accumulated Sick Leave. _________________________________ 30 Section 9. Personal Business Leave Chargeable to Sick Leave. ______________________ 30 Section 10. Return to Work or Continue Work With Limited Duty. _____________________ 31 ARTICLE XXVI - SUBPOENAS __________________________________________ 31 ARTICLE XXVII - WORKERS' COMPENSATION ____________________________ 31 Section 1. Status Reporting While on Disability. __________________________________ 31 ARTICLE XXVIII - PHYSICAL FITNESS MEDICAL EXAMINATIONS ____________ 31 ARTICLE XXIX- LEAVES OF ABSENCE WITHOUT PAY _____________________ 31 Section 1. Disability. ________________________________________________________ 31 Section 2. Other Leaves. ____________________________________________________ 32 5 Section 3. Accrued Vacation Credits. ___________________________________________ 32 Section 4. Approval of Department Head ________________________________________ 32 Section 5. Approval by City Manager. __________________________________________ 32 Section 6. Absence Without Leave. ____________________________________________ 32 Section 7. Leave of Absence; Death Outside the Immediate Family. __________________ 32 Section 8. Military Leave of Absence ___________________________________________ 32 Section 9. Use of paid accruals while on leave. ___________________________________ 32 ARTICLE XXX - LEAVES OF ABSENCE WITH PAY _________________________ 32 Section 1. City Manager Granted Leaves. _______________________________________ 32 Section 2. Council Granted Leave. _____________________________________________ 32 Section 3. Employee's Time Off to Vote. ________________________________________ 33 Section 4. Leaves of Absence; Death in Immediate Family. _________________________ 33 Section 5. Jury Duty; Leave of Absence. ________________________________________ 33 ARTICLE XXXI – VOLUNTEER LEAVE PROGRAM _________________________ 33 ARTICLE XXXII- TUITION REIMBURSEMENT _____________________________ 34 Section 1. Options. _________________________________________________________ 35 ARTICLE XXXIII - PER DIEM TRAVEL EXPENSES__________________________ 35 Section 1. City Business. ____________________________________________________ 35 ARTICLE XXXIV - HOUSE FUND ITEMS __________________________________ 35 Section 1. Station House Fund. _______________________________________________ 35 Section 2. Non-Food House Items _____________________________________________ 35 ARTICLE XXXV- PARKING ____________________________________________ 35 Section 1. Entitlements. _____________________________________________________ 35 ARTICLE XXXVI- GRIEVANCES ________________________________________ 35 Step II ___________________________________________________________________ 36 Step III __________________________________________________________________ 36 Step IV __________________________________________________________________ 36 ARTICLE XXXVII- SAFETY COMMITTEE _________________________________ 38 Section 1. Committee _______________________________________________________ 38 ARTICLE XXXVIII – MISCELLANEOUS ___________________________________ 38 Section 1. Section 1. Uniforms. _______________________________________________ 38 Section 2. Removal of Disciplinary Actions. ______________________________________ 38 ARTICLE XXXIX - FULL UNDERSTANDING _______________________________ 38 Section 1. Full and Entire Understanding ________________________________________ 38 Section 2. Fair Labor Standards Act. ___________________________________________ 39 Section 3. Severability. ______________________________________________________ 39 6 Section 4. Good Faith. ______________________________________________________ 39 Section 5. Merit System Rules and Regulations. __________________________________ 39 Section 6. Station Consolidation or Relocation ___________________________________ 39 Section 7. Meet and Confer. __________________________________________________ 39 ARTICLE XL – 48/96 Work Schedule ____________________________________ 39 ARTICLE XLI – FUTURE SERVICE DELIVERY MODELS _____________________ 39 ARTICLE XLII - DURATION ____________________________________________ 39 7 MEMORANDUM OF AGREEMENT CITY OF PAL0 ALTO and I.A.F.F. LOCAL 1319 January 30, 2023 - June 30, 2025 PREAMBLE This Memorandum of Agreement between the City of Palo Alto, hereinafter referred to as the "City", and Local 1319, International Association of Fire Fighters, hereinafter referred as the "Union", has been prepared and entered into in accordance with Title I, Division 4, Chapter 10, Sections 3500-3510 of the California Government Code and Chapter 12 of the City of Palo Alto Merit System Rules and Regulations. ARTICLE I - RECOGNITION Section 1. Recognition. The City recognizes the Union as the exclusive representative of an employee group consisting solely of the classifications of Fire Apparatus Operator, Fire Fighter, Fire Captain, Fire Captain (forty-hour assignment), Fire Inspector Sworn and Non-Sworn, , and Hazmat Inspector, who are regularly employed by the City and others as amended into the representation unit from time to time under existing law and the Merit System Rules and Regulations. ARTICLE II - NO DISCRIMINATION Section 1. No Discrimination. The Union and the City hereby agree that there shall be no discrimination because of race, color, age, disability, sex, national origin, sexual orientation, political or religious affiliation under this Agreement. There shall be no discrimination in employment conditions or treatment of employees on the basis of membership or non-membership in the Union, or participation in the lawful activities of the Union. Section 2. Free Choice. The Union and the City hereby agree to protect the rights of all employees to exercise their free choice to join the Union and to abide by the express provisions of applicable State and local laws. Section 3. Human Relations Committee. A Human Relations Committee will include up to five members appointed by the Union executive board and at least two members of management with representation from the Fire and Human Resources Departments. The committee may make recommendations to management regarding recruitment outreach, equal employment opportunity and career development programs. ARTICLE III - PAYROLL DEDUCTIONS 8 Section 1. Payroll Deductions and Written Authorization. The City shall deduct Union membership dues assessments and insurances authorized by the Union. This will be accomplished by payroll deduction from the bi-weekly pay of member employees. The dues deduction must be authorized in writing by the employee on a Union authorization card. The Union will be the custodian of records for individual employee membership and dues deduction forms. The Union will maintain authorizations for dues deduction, signed by the individual from whose salary or wages the deduction or reduction is to be made. The City will direct employee requests to cancel or change deductions to the Union. The City shall remit the deducted dues to the Union as soon as possible after deduction. Section 2. Certification of Union Membership. The Union agrees to provide the City an initial certified list of members and statement that the Union has and will maintain written authorizations signed by the individuals from whose wages the Union dues deductions are to be made. From that point forward the Union will update the list whenever there are changes. Section 3. Indemnification. The Union shall indemnify and hold the City harmless against any liability arising from any claims, demands, or other action relating to this article. The Union shall comply with all statutory and legal requirements with respect to this article. ARTICLE IV - UNION ACTIVITIES Section 1. On-Duty Time. Local 1319 officers may use a reasonable amount of on- duty time to attend to Union business specifically related to representation of employees so long as: a. Staffing is available b. Operations are not interrupted c. Advance approval is obtained from the Battalion Chief or Operations Chief Section 2. Interoffice Mail, Bulletin Boards, and E-Mail. The Union shall have access to interoffice mail and existing bulletin boards in unit employee work areas for the purpose of posting, transmitting, or distributing notice or announcements including notices of social events, recreational events, Union membership meetings, result of elections and reports of minutes of Union meetings. Any other material must have prior approval of the Operations Chief or Fire Chief. Action on approval will be taken within 24 hours of submission. The Union may send e-mail messages only for the purposes set forth above. The I.T. Division will maintain the IAFF list. The Union access to e-mail is based on the following conditions: a. E-Mails to the IAFF list will be copied to the Fire Chief or Operations Chief at distribution. 9 b. E-Mails to the IAFF list will only be sent by the Executive Board Members. Section 3. Use of Meeting Places. The Union shall have the right to reserve City meeting and conference rooms for use during non-working hours or as subject to Battalion Chief approval. Such meeting places will be made available in conformity with City regulations and subject to the limitations of prior commitment. ARTICLE V - NO STRIKES Section 1. No Strikes. The Union, its representatives, or members, shall not engage in or cause, instigate, encourage, sanction, or condone a strike, withholding of services, leave of absence abuse, work stoppage or work slowdown of any kind against the City of Palo Alto or its citizens by employees covered under this Agreement. No employee shall refuse to cross any picket line in the conduct of Fire Department business, nor shall the Union, its representatives or members discriminate in any way toward anyone who refuses to participate in a strike, or any of the job actions cited above. ARTICLE VI - PROBATIONARY PERIOD Section 1. Tentative and Subject to Probationary Period. All original appointments to regular or part-time municipal service positions shall be tentative and subject to a probationary period. With the exception of the Fire Inspector (Non-Sworn) classification, this probationary period shall include the fire training academies and an additional fourteen (14) to sixteen (16) months after completion of the academies (including in-house academy), excluding time off for extended leaves of absence. The probationary period will end at the sooner of 16 months or the completion of all probationary testing, inclusive of driver II certification. All original appointments to Fire Inspector (Sworn or Non-Sworn) classifications shall serve a twelve (12) month probationary period, commencing with the first day of employment in the classification. Promotion from a non-sworn to a sworn position will be subject to the applicable Probationary Period. Section 2. Part of Testing Process. The probationary period shall be regarded as part of the testing process and shall be utilized for closely observing all aspects of the employee's qualifications, for ensuring the effective adjustment of a new employee to the position and for rejecting any probationary employee who, in the opinion of management, is not suitable to attain permanent status. Section 3. Suspension or Termination. During the probationary period a new employee may be suspended or terminated at any time by the appointing authority without cause and without right of appeal or to submit a grievance. Said employee shall not have the right to proceed to arbitration on the issue of arbitrability or on the issue of its constitutional or discovery rights, nor those of any employee by reason of the 10 foregoing. The Union shall not be a party to any lawsuit relating to the termination of a probationary employee. ARTICLE VII - SALARY PROVISIONS Section 1. Base Wage Rates. a. The base wage rates of bargaining unit classifications will be as set forth in Appendix A of this MOA. b. General Salary Increase Effective the first full pay period following July 1, 2025, the salary ranges of all represented classifications will be increased by three percent (3%). Effective the first full pay period following July 1, 2026, the salary ranges of all represented classifications will be increased by three half percent (3%) Effective the first full pay period following July 1, 2027, the salary ranges of all represented classifications will be increased by three percent (3%). c. Market Increase: Effective the first full pay period following July 1, 2026, the salary ranges of all represented classifications will be increased by three-fourths of one percent (0.75%). Effective the first full pay period following July 1, 2027, the salary ranges of all represented classifications will be increased by three-fourths of one percent (0.75%). Total Compensation and Survey Database Management and the Union have agreed to a compensation survey database structure. Survey Cities include: Alameda, Berkeley, Fremont, Hayward, Menlo Park Fire District, Milpitas, Mountain View, Redwood City, Pleasanton, San Jose, San Mateo, San Ramon Fire District, Santa Clara, Santa Clara County and South San Francisco. Compensation Criteria includes: top step salary, maximum longevity, maximum education, uniform allowance, EMT differential, Hazmat differential, deferred compensation, employee pick up of employer pension costs (Negative EPMC), and maximum City paid benefits (medical, dental, vision, life insurance, LTD, and EAP). The database is intended to provide one source of information concerning how the compensation paid to employees in bargaining unit job classifications compares to that 11 paid by other employers. Section 2. Out-of-Class Compensation. All represented employees who are assigned work in a higher classification for longer than four (4) continuous hours will be compensated at a higher pay rate for all hours worked during the out-of-class assignment. This provision applies as follows: Fire Fighter, Apparatus Operator, Captain or Inspector working in a higher classification: Step to step. Representation unit classification working as a Battalion Chief, 10% above 6th-Step Captain, but not to exceed of the salary range of the Battalion Chief. Representation unit classification working in any other management position, within the range of the management position. In accordance with Government Code 20480, an employee assigned to work in an “out- of-class appointment” may not exceed 960 hours worked in the appointment within a fiscal year if the employee is appointed to an upgraded position or higher classification that is vacant during recruitment for a permanent appointment. This limitation does not apply to a position that is temporarily available due to a leave of absence. Section 3. Salary Steps Employees in the Firefighter Rank initially appointed to the first step of the salary range of their classification shall be entitled to a merit increase to step two in the pay range upon successful completion of six (6) months of service, so long as they receive a satisfactory performance evaluation. The date of such increase shall be the first full pay period following the evaluation date. Employees may be appointed to any step in the salary schedule for their classification as recommended by the Fire Chief and approved by the City Manager. Employees appointed to the second step and above are eligible to receive a merit increase the first full pay period following successful completion of twelve (12) months of actual service, so long as they receive a satisfactory performance evaluation. Employees in the Fire Inspector (Non-Sworn) classification shall be entitled to a step increase in the pay range upon successful completion of twelve (12) months of service, so long as they receive a satisfactory performance evaluation. The date of such increase shall be the first full pay period following the evaluation date. Each twelve (12) months of actual service after the evaluation date, each employee receiving a satisfactory performance evaluation shall receive a step increase to the next higher step (effective the first full pay period following the evaluation date) until the top step of the pay range for the job class has been reached. An employee shall not receive a merit increase beyond the maximum steps established for the job classification. 12 Section 4. Pay for Court Appearance. Sworn Fire personnel appearing in court for the People shall be compensated as follows: Period Rate Minimum a. Appearance on scheduled day off Time and one-half at 40-hour rate 4 hours b. Any or all court time during scheduled shift Straight time during shift at 56-hour rate None c. Appearance on scheduled Time and one-half at 2 hours work day but not during scheduled shift 40-hour rate (2 hour minimum, may not run into shift time) The employee shall remit all fees received for such appearances to the City within thirty days from the termination of his/her services. Compensation for mileage or subsistence allowance shall not be considered as a fee and shall be retained by the employee. Section 4. Classifications. The sworn Haz Mat Inspector and sworn Fire Inspector classification will be paid at the same level as the Fourt-hour Fire Captain. One Fire Captain position will be assigned to a Fire Captain (Forty-hour Assignment) with the pay set at 5% above the Fire Captain. ARTICLE VIII - PAY DIFFERENTIALS Sworn Unit employees are eligible for the following pay differentials. Notwithstanding any provision of this agreement, eligible employees can receive up to two differentials in addition to the EMT and Paramedic Certification pay. Non-Sworn Fire Inspectors will not be eligible for the listed pay differentials. Section 1. Paramedic Assignment 13 a. Limit of Eligibility. The City reserves the right to limit eligibility for the Paramedic Program to the Fire Fighter classification. The City may, at its discretion, add other classifications within the represented bargaining unit to meet the need of program changes. Differentials for other classifications will be as provided in this Article. b. Additional Candidate Training. As the Program progresses, Management will assess the need for training additional Paramedic candidates. It is Management's intention to provide for such additional training as necessary for Program continuity. c. Section 3. Incentives. Paramedics will receive a one-time cash payment of $500 for each biennial recertification. This provision applies only to active incumbents of authorized paramedic positions who remain in the paramedic assignment for at least one additional year after recertification. The one year requirement after recertification does not apply to those paramedics who may leave the program because of work- related injury or illness, or promotion, nor does it apply when a paramedic is asked by management to recertify in order to voluntarily extend their paramedic service to meet special departmental needs for a period of less than one year. d. Proctoring. Paramedic proctoring assignments will be made by the Chief from among qualified volunteers. Payment of $600 will be made to the primary proctoring paramedic at the conclusion of each proctoring assignment. The Chief or their designee will maintain a list of qualified proctors from among volunteers. Personnel will be selected by the Fire Chief or his or her designee from the list to serve as paramedic proctors. If a conflict arises between the City and the Union regarding the Proctor Program, either side may suspend the program at the annual renewal period and shall remain suspended until a resolution or agreement is reached. e. Field Training Stipend. Employees assigned to provide field training for new paramedic accreditation will receive a $300 stipend to train a new paramedic or EMT to successful completion of paramedic accreditation. This assignment is at the discretion of the Chief or their designee. f. Paramedic Differential. Paramedics who have completed the required training and have been accredited in accordance with the program and possess their paramedic license, will receive a 14% differential in addition to their base salary effective beginning with the date of assignment to Paramedic duty. The Paramedic salary differential will terminate with the cessation of assignment to Paramedic duty. 14 Section 2. Emergency Medical Technician Certification. All employees hired into sworn positions must maintain a current EMT certification as a condition of employment. Employees, including Paramedics, shall receive a three percent (3%) differential in addition to their base salary for the EMT certification. The EMT differential will be provided the first pay period following graduation from an entry level academy or on date of hire where an academy is not required. In the event an employee’s EMT certification expires, the employee will be taken off the line and placed in an unpaid status until the employee can submit proof of EMT recertification. Section 3. Bilingual Pay Employees who have successfully demonstrated proficiency in any of the approved languages shall receive a 5% premium in addition to their base salary. a. Approved Languages: Spanish, Chinese (Mandarin and Cantonese), Japanese, Tagalog, Korean, Vietnamese, Russian, American Sign Language, and such other languages as determined by management. b. Proficiency Requirements The City shall develop and provide a method of testing for proficiency in the above listed languages. The City will pay for the first test in any approved language however subsequent testing will be at the employee’s own expense. An employee must pass the proficiency test to maintain the bilingual pay. The Fire Chief shall have the authority to require employees receiving bilingual pay to re-certify with the Human Resources Department as necessary and reasonable. c. Arbitratability The City’s substantive evaluation of an employee’s knowledge of and skills in a designated second language shall not be subject to the grievance procedure or review by an arbitrator. Section 4. Special Operations Assignment (Haz Mat) A maximum of eighteen positions who are both members of the Special Operations group and assigned the Special Operations, inclusive of Technical Rescue and Hazardous Materials certified personnel, team will receive a 5% differential in addition to their base salary. The differential does not apply to minimum staffing replacements. Section 5. Fire Investigator Differential. 15 A maximum of six (6) Fire inspector personnel including Haz Mat Inspectors who have been trained as Fire investigators and who are regularly assigned to fire investigation duties by the Chief will receive a 5% differential in addition to their base salary. The Chief reserves the right to determine who is regularly assigned to such duties. Section 6. Education Incentive Employees who have successfully achieved the education and training required for the Career Development program will receive either: Tier 1: 2.5% differential in addition to base salary OR Tier 2: 5% differential in addition to base salary a. Tier 1: An employee shall be eligible for Tier 1 incentive upon completion of 300 hours of Fire Chief approved job-related coursework. 1. Tier 1 will begin the first full pay period including July 1, 2026. 2. Employees must successfully pass probation in order to become eligible. b. Tier 2: An employee shall be eligible for tier 2 incentive upon completion of 600 hours of Fire Chief approved job-related coursework. 1. Tier 2 will begin the first full pay period including July 1, 2027. 2. Employees must successfully obtain step 4 of the salary schedule in order to become eligible. c. Conditions of Job-related coursework 1. An Associate’s degree from an accredited college or university in public safety field shall count toward 150 hours of job related coursework. A Bachelor’s degree or higher accredited college or university shall count toward 300 hours of job related coursework. 2. Job related coursework completed to hold EMT or Paramedic licensure in this Article will not be eligible to count toward Tier 1 or Tier 2 required job-related coursework. 3. On duty City provided job-related classes will not be eligible. 4. Under no circumstances may duplicative coursework be submitted. d. All education and training completed under this Program must be actively utilized in the course of the employee’s assigned duties. e. A minimum of 32 hours of Fire Chief approved job-related coursework is required every other calendar year in order to maintain the education incentive. f. The employee is responsible for submitting appropriate official transcripts, certificates, and proof of course completion demonstrating completion of all qualifying components. No incentive shall be granted without verified documentation. g. Incentive pay shall begin the first full pay period after approval by the Fire Chief or designee of require documentation. h. The Fire Chief or designee, shall make final determinations regarding course approval, applicability of training, and eligibility for incentive payment. A joint labor-management committee shall meet as needed to discuss the program. 16 ARTICLE IX - HOLIDAYS Section 1. Named Holidays. Holiday pay is compensation for employees who are normally required to work on an approved holiday because they work in positions that require scheduling staff without regard to holidays. The following holidays are recognized as municipal holidays for pay purposes, and regular, employees shall have these days off with pay, except as otherwise provided in these rules: January 1 Veterans’ Day, November 11 Third Monday in January Thanksgiving Day Third Monday in February Day after Thanksgiving Day Last Monday in May December 25 July 4th Either December 24, or December 31 as provided below First Monday in September Second Monday in October Floating Holiday: In addition to the paid holidays listed above, employees shall be excused with pay for one full work shift as a day of reflection (floating holiday) per calendar year. Eligible employees may use the floating holiday on any day mutually agreed by the employee and their supervisor for a Day of Reflection, including: Juneteenth Freedom Day (June 19) or Cesar Chavez/Dolores Huerta Day (March 31). Day of Reflection not used by the end of the fiscal year will be deemed forfeited and have no cash value. 161.5 hours are paid annually to an employee at a rate of 6.21 hours each pay period. Shift personnel shall receive pay in lieu of taking paid leave for accrued holidays. Such paid hours are in addition to the normal biweekly base pay. Shift personnel will be paid 6.21 hours of in lieu of holiday pay each pay period. Hours are prorated and accrued based on hours actually worked. Accrued Holiday balances will be automatically paid off in the months of June and December. Section 2. Conditions. a. Personnel assigned to a 40-hour work schedule will receive paid holidays in accordance with Sections 517 and 518 of the Merit System Rules and Regulations. b. Personnel assigned to a 40-hour work schedule will receive floating days off with pay in each of the following months: August, September, March, April, and June. The following conditions will hold: 17 (1) Management will designate the schedule of the paid day off under this section at least thirty days in advance. (2) If, in conformance with this section, Management is unable to schedule a day off in the month indicated for reasons of shift operations, work scheduling or any other reason, the day will be added to the employee's vacation accrual. (3) If an employee fails to take a day off as scheduled by Management under this section, the day off so scheduled will be forfeited. ARTICLE X - OVERTIME COMPENSATION Section 1. Compensation. Shift personnel assigned to overtime relief duty in addition to their regular 56-hour shift schedule shall receive overtime compensation at a rate of one and one-half times the employee's basic 56-hour rate, or out-of-class rate if such applies, for all hours of the relief duty shift. Required off-duty training, excluding remedial training, will be compensated at the rate of one and one-half times the basic 40-hour rate or as otherwise agreed. If an opportunity was provided to allow for the required training to be on duty, but the employee was unable to attend, the training scheduled for off duty will not be eligible for the 40-hour rate. Emergency callback will be compensated at a rate of one and one- half times the basic 40-hour rate to a maximum of 8 hours, and at a rate of one and one-half times the basic 56-hour rate for those hours in excess of 8 hours. Overtime duty assignments will first be made from the voluntary overtime list. If such assignments cannot be filled from the voluntary overtime list, the vacant position will be filled by moving up on-shift personnel through out-of class assignment. Any remaining vacancy will then be filled by overtime duty assignment made in reverse order of hire date seniority according to specialty and qualifications required to be assigned. The overtime duty assignment seniority list will be adjusted annually on October 31. ARTICLE XI - APPARATUS STAFFING Engine, truck and combination rescue companies shall be deployed for emergency services purposes at the level of one Fire Captain, one Fire Apparatus Operator and one Fire Fighter. Truck companies have the option of deploying at the level of two Fire Apparatus Operators instead of one Fire Apparatus Operator and one Firefighter. This option shall be determined by seniority. Paramedic ambulance staffing shall be two personnel; the City will dispatch personnel on Emergency Medical Service calls such that a minimum of 1 licensed paramedic responds. The Foothill Fire Station #8, when activated by the Fire Chief, shall be staffed with a minimum of one Fire Apparatus Operator and one Fire Fighter. City may dispatch a two-person apparatus (ex: squad or quick response vehicle) with a minimum of 1 paramedic. 18 ARTICLE XII - WORK ASSIGNMENTS AND TRANSFERS It is the intent of the Palo Alto Fire Administration and Local 1319 that work assignments and transfers will reflect the best interests of the Fire Department and the City. The Fire Department will maintain a constant state of readiness to defend against fire and other disasters. It is therefore imperative that all Fire Department divisions assign personnel in the best manner to respond to the needs of the City and the Department. It is also acknowledged that the Fire Chief is responsible to make and/or approve the work assignments or transfers of Fire Department personnel. The Fire Chief or designee will maintain a three year station and shift assignment, seniority-based bid system covering the following classifications within Fire Operations on a rotational basis: Fire Captain, Apparatus Operator and Fire Fighter. The Fire Chief, or his designee, shall initiate personnel assignments and transfers to balance platoon or division strength, fill permanent or temporary vacancies and provide required training to individual personnel. Such assignments will be based on seniority, except where career development, training, special assignments, skills and documented performance issues are specifically identified in writing, management may make assignments based on such issues. For purposes of this article, seniority shall be computed from the date of entry into the current classification. Section 1. Shipouts. When possible, least senior Fire Fighters will be given short term or shipout relief duty. In order to maintain training continuity, shipouts of probationary personnel will be subject to the approval of the Fire Chief or their designee. Section 2. Vacation Relief Positions. In order that platoon strengths can be balanced more quickly and to reduce the need for excess overtime, two positions will be designated for vacation relief. These positions will be the lowest two on the Department seniority list who have completed their probationary period. a. The vacation relief persons will be assigned to one station when not on relief assignment. b. Relief assignment can be made to any Station or shift where a shortage of personnel will cause unnecessary overtime. c. Shortages may be caused by vacation, sick leave, disability or any leave of absence that causes a shift to be short of personnel while another has a surplus. d. Shift transfers will be made so as not to cause the relief person to work more than the prescribed number of hours in the prescribed period. e. Relief assignments will be made and hours will be coordinated by the Battalion 19 Chief's office. Section 3. Transfer Requests. Non-probationary fire personnel may submit transfer requests to their immediate supervisor to be forwarded to the appropriate chief officer. Providing that Departmental needs are satisfied, such transfers will be administered using first a mutually agreeable exchange, secondly seniority. The transfer requests shall remain on file during the year and may be granted when a vacancy occurs, providing the requesting employee possesses the experience and performance ability required to fill the vacancy. Section 4. Special Assignments. Management reserves the right to assign personnel to career development opportunities, special projects, seminars, programs and selected educational and/or training courses, based on Fire Department needs and the performance of the employee. Section 5. Continuous Hourly Service. Continuous hours of service in excess of 96 hours are subject to approval by the Fire Chief or designee. Approval may be granted up to 120 hours when an employee has not been engaged in a greater than usual level of activity or is not fatigued. ARTICLE XIII - TRAINING COORDINATION Section 1.Coordination. Three shift employees per platoon may be assigned to assist the Training Officer in the coordination, preparation and scheduling of the training program. It is agreed that volunteers will first be sought for such assignment, and further agreed that the details of this section shall be established by mutual agreement between the Fire Chief and the Union. ARTICLE XIV - PROMOTION Section 1. Promotion Step Level. All regular promotions from classifications within the representation unit to the classification of Fire Captain will be made at the sixth step on the salary range. Section 2. Promotion Process Information. For promotions to positions within the representation unit, promotion process information will be available in the Human Resources Department office at the time of posting. Information will include applications, 20 minimum qualifications, study material reference information, if appropriate, and information on passing scores. Any changes in an established testing process must be submitted in writing to the Union for review and input no fewer than 60 days prior to the beginning of the process. ARTICLE XV - REDUCTION IN FORCE Section 1. Order of Reduction. If the work force is reduced (reduction in force) within a represented classification, unit employees having the shortest length of service with the Fire Department will be laid off first so long as employees retained are fully qualified, trained and capable of performing remaining work. ARTICLE XVI - SELECTIVE CALL BACK WITH REGARD TO RESIDENCY Section 1. In Case of Emergency Management may use selective call back with regard to residency in cases of emergency. ARTICLE XVII - HEALTH BENEFITS Section 1. Maintenance of Levels Except as otherwise set forth herein, the City will maintain the present level of benefits on all City-sponsored medical programs. Section 2. Vision Care a) Level of Benefits: The City provides a base vision plan for all eligible employees and dependents. Additionally, eligible employees will have the option to enroll in a vision “buy-up” plan. Dependents include domestic partners, as defined under Article XX Section 3(b). b) Premiums: The City shall pay all premium payments on behalf of employees and dependents who are eligible and enrolled in coverage under the base vision plan. Employees will be responsible for premium payments required to enroll in the “buy up” vision plan. Section 3. PEMHCA Health Plan. a. ACTIVE EMPLOYEES: During the term of this contract, the maximum City contribution towards medical premiums for eligible full time employees per employee category shall be up to a maximum of the following for any plan: Effective July 1, 2025, the City will increase its maximum contribution to the following: 21 Medical Category Premium Total Maximum City Contribution (inclusive of PEMHCA contribution*) effective July 1, 2025 Employee Only Employee plus one Employee Family $943.00 $1,885.00 $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% Medical Category Premium Total Maximum City Contribution (inclusive of PEMHCA contribution*) effective January 1, 2027 Employee Only Employee plus one Employee Family $962.00 $1,942.00 $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 Contribution (inclusive of PEMHCA contribution*) effective January 1, 2028 Employee Only Employee plus one Employee Family $1,000.00 $2,020.00 $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. 22 * Any increases to the PEMHCA minimum during the term of this contract will result in a corresponding decrease to the amount of the additional City contribution, so that the total maximum City contribution never exceeds the Total Maximum City Contribution described above. If the State of California or federal government requires the City to participate and contribute toward coverage under any medical plan outside of PEMHCA including but not limited to the Affordable Care Act, the City’s total liability for enrolled employees and retirees and their eligible family members shall not exceed what the City would have paid toward PEMHCA coverage in the absence of such state or federal plan. The parties will meet and confer over the impact of such change on matters within the scope of representation before implementing any change. b. Flexible Compensation: Effective January 28, 2023, in lieu of additional increases to the City’s medical premiums, hourly wages for all bargaining unit classifications were increased by $100 per month ($1200 per year). Employees can utilize this cash payment for any purpose, including to cover health insurance premiums or contribute to flexible spending accounts/457 deferred compensation plans. Effective the first full pay period of January 2024, hourly wages for all bargaining unit classifications were increased by an additional $100 per month. c. Active employee domestic partners whose domestic partnership is registered with the State of California may add their domestic partner as a dependent to their elected health plan coverage if the domestic partner is registered with the Secretary of State. Active employee domestic partners whose domestic partnership is not registered with the State but who meet the requirements of the City of Palo Alto Declaration of Domestic Partnership, and are registered with the Human Resources Department, will be eligible for reimbursement of the actual monthly premium cost of an individual health plan, not to exceed 90% of the average monthly premium cost of individual coverage under the PEMHCA health plans in 2016. Effective with the first pay period including January 1, 2017, a stipend of two hundred eighty four ($284) per month toward the cost of an individual health plan will be provided. Evidence of premium payment will be required with request for reimbursement. d. Alternate Medical Benefit Program. If a regular employee and/or the employee’s dependent(s) are eligible for and elect to receive medical insurance through any non-City of Palo Alto sponsored or association medical plan, the employee may choose to waive his/her right to the City of Palo Alto’s medical insurance coverage and receive cash payments in the amount of two hundred and eighty four dollars ($284) for each month City coverage is waived. 23 Examples of waivers eligible for this payment are: • Employee waives all applicable City medical coverage; or • Employee is eligible to enroll his or her spouse or domestic partner and waives medical coverage for the spouse or domestic partner; or • Employee has additional eligible dependents and waives family-level medical coverage. Participation must result in a health insurance cost savings to the City and payments per employee shall not exceed a total of two hundred eighty four dollars ($284) per month. To participate in the program the employee and dependents must be eligible for coverage under PEMHCA medical plans, complete a waiver of medical coverage form, and provide proof of eligible alternative medical coverage. Payments will be made in the employee’s paycheck beginning the first month following the employee’s completion of the waiver form. Payments are subject to state and federal taxes and are not considered earnings under PERS law. Employees are responsible for notifying the City of any change in status affecting eligibility for this program (for example, life changes affecting dependent’s eligibility for medical coverage through the employee) and will be responsible for repayment of amounts paid by the City contrary to the terms of this program due to the employee’s failure to notify the City of a change in status. e. Dual Coverage. When a City employee is married to another City employee each shall be covered only once (as an individual or as a spouse of the other City employee, but not both) and dependent children, if any, shall be covered only by one spouse. ARTICLE XVIII - DENTAL BENEFITS Section 1. Level of Benefits. The City will maintain the present level of benefits on the City- sponsored dental program. The City provides a base dental plan for all eligible employees and dependents. Additionally, eligible employees will have the option to enroll in a dental “buy-up” plan. Section 2. Premiums. The City shall pay all premium payments on behalf of employees and dependents who are eligible and enrolled for coverage under the base dental plan. Dependents will include domestic partners, as defined under Article XX, Section 3(b). Employees will be responsible for premium payments required to enroll in the “buy up” dental plan. 24 ARTICLE XIX - LIFE INSURANCE Section 1. Premiums. The City will provide employees with Basic and Supplemental life insurance plans. The City shall pay the premium for basic life insurance coverage equal to one times the employee’s annual salary. Employees will have the option of enrolling in supplemental life insurance by paying the premiums required to enroll in the plan. ARTICLE XX - RETIREMENT BENEFITS Section 1. PERS Retirement Formula. Safety Pension Group A: 3%@50 Safety Retirement The City will continue the present benefits under the Public Employees' Retirement System (PERS) "3 percent at 50 (3%@50)" formula for employees hired before the effective date of the “3 percent at 55” (3%@55) formula for new hires as described herein. The final year compensation for employees hired under the 3% at 50 formula will continue to be “Single highest year” or the highest average annual compensation earnable by the member during one (1) year of employment immediately preceding retirement or the one-year period otherwise designated by the member (Government Code section 20042). Safety Pension Group B: 3%@55 Safety Retirement Effective December 7, 2012, the City amended its contract with CalPERS to provide employees hired on or after that date who are not “new members” of CalPERS, as defined in the Public Employees’ Pension Reform Act (often referred to as “classic” CalPERS members) with the CalPERS retirement formula three percent of final salary at age 55 (“3%@55”), with the final salary determination for such employees of “3 highest consecutive years” based on the highest average annual compensation earnable by the member during three (3) consecutive years of employment immediately preceding retirement or the three-year period otherwise designated by the member (Government Code section 20037). Safety Pension Group C: 2.7% at Age 57 Safety Retirement Employees hired on or after January 1, 2013 meeting the definition of “new member” under the Public Employees’ Pension Reform Act (Gov’t. Code s. 7522 et seq.) shall be subject to all of the provisions of that law, including but not limited to the two point seven percent at age 57 (2.7%@57) retirement formula with a three year final compensation period. Miscellaneous Pension Formulas: a. Miscellaneous Pension Group A: 2.7% at 55. The City provides retirement 25 benefits under the California Public Employees Retirement System at the level of 2.7% at age 55 for employees hired before July 17, 2010, with a one year final compensation period. b. Miscellaneous Pension Group B: 2% at 60:For miscellaneous employees hired on or after July 17, 2010, and before January 1, 2013, and employees hired on or after January 1, 2013 who are not “new members” of CalPERS as defined in the Public Employees’ Pension Reform Act (often referred to as “Classic” CalPERS members)the City offers the CalPERS retirement formula two percent (2.0%) of final salary at age sixty (60), with a one (1) year final compensation period. c. Miscellaneous Pension Group C: 2% at 62. Employees hired on or after January 1, 2013 meeting the definition of “new member” under the Public Employees’ Pension Reform Act (Gov’t. Code s. 7522 et seq.) shall be subject to all of the provisions of that law, including but not limited to the two percent at age 62 (2%@62) retirement formula with a three (3) year final compensation period. Section 2. PERS Member Contribution. a. Employees in all represented classes in Pension Groups A and B described above will make the 9% PERS member contributions by payroll deduction. b. Employees in all represented classes in Pension Group C described above shall pay the employee contribution required by the Public Employees’ Pension Reform Act, currently calculated at fifty percent (50%) of the normal cost. c. When employees pay their PERS Member Contribution pursuant to section 3a and 3b above, the City will provide for member contributions to be made as allowed under provisions of IRS Code Section 414(h)(2). Section 3. Additional Employee PERS contributions In addition to the PERS member contribution as required under section 2. a, b and c above, all employees in pension groups a, b and c shall contribute the additional following contributions: a. In addition to the Member Contribution required per CalPERS 20516 contract amendment all employees regardless of pension formula in this unit shall pay 3% towards the Employer share of Pension. b. Effective the first full pay period following July 1, 2020, all employees regardless of pension formula in this unit shall, in addition to the Member Contribution required, pay an additional 1% towards the employer share of Pension for a total of 4%. 26 Section 4. Option 2 Death Benefit. The City provides the Pre-Retirement Option Settlement 2 Death Benefit. The Pre-Retirement Optional Settlement 2 Death Benefit provides the spouse of a deceased member, who was eligible to retire for service at the time of death, with an alternate option to the lump sum Basic Death Benefit whereby the surviving spouse can elect a monthly allowance equal to the amount the member would receive if he/she had retired from service on the date of death and elected Optional Settlement 2 (the highest monthly allowance a member can leave a spouse). Section 5. Military Service Credit. The City will provide the Public Employees’ Retirement System benefit known as “Section 20930.3, Military Service Credit as Public Service.” Section 6. 1959 Survivor Benefit. The City will continue to provide the basic level of 1959 PERS Survivor Benefit to eligible employees in accordance with Government Code section 21571. Section 7. Employer Contributions to 457 Plan Effective the first full pay period following July 1, 2020, the City will contribute the equivalent of 1% of the employee’s pensionable salary into the 457 plan. Eligibility: a. Employees must be enrolled in an eligible City sponsored 457 plan b. Employees who reach the maximum as defined by the IRS will not receive additional contributions c. Employee must be making PERS contributions ARTICLE XXI - RETIREMENT MEDICAL PLAN Section 1. Retiree medical coverage for Unit employees hired before January 1, 2004: Monthly City-paid premium contributions for a retiree-selected PEMHCA optional plan will be made in accordance with the Public Employees' Medical and Hospital Care Act Resolution for employees that retire on or before December 31, 2006. Effective January 1, 2007 for an employee retiring on or after that date the City will pay up to the monthly medical premium for the 2nd most expensive plan offered to IAFF employees among the existing array of plans. However, the City contribution for an employee hired before January 1, 2004 who retires on or after December 1, 2011 shall be the same contribution amount it makes for active City employees. Starting June 1, 2016 through August 31, 2016, the City provided active unit employees who were hired before January 1, 2004 with a one-time opportunity to opt-in to retiree health benefits provided under California Government Code section 22893. Section 2. 20-Year Vesting for Retiree Medical Coverage for Unit Employees 27 Hired On Or After January 1, 2004: The retiree health benefit provided in California Government Code section 22893 shall apply to all employees hired on or after January 1, 2004. Under this law, an employee is eligible to receive Fifty (50) percent of benefit after ten (10) years; each additional service credit year after Ten (10) years will increase employer credit by Five (5%) percent until Twenty (20) years is reached at which time employee is eligible for One Hundred (100%) percent of annuitant-only coverage and Ninety (90%) percent of the additional premium for dependents. ARTICLE XXII - DEPENDENT CARE ASSISTANCE PROGRAM (DCAP) Section 1. DCAP. The City will provide a dependent care assistance program for employees subject to the provisions of applicable law. The program will remain in effect subject to a reasonable minimum participation level and availability of third party administrative services at a reasonable cost. Disputes regarding the administration of the plan shall be subject to the dispute resolution procedure provided by the plan document. Section 2. HCFSA. The City will provide healthcare flexible spending program for employees subject to the provision of applicable law. Disputes regarding the administration of the plan shall be subject to the dispute resolution procedure provided by the plan document. The HCFSA program will be available to employees effective January l, 2026, and remain in effect subject to a reasonable minimum participation level and availability of third-party administrative services at a reasonable cost. ARTICLE XXIII - VACATION ACCRUAL Section 1. Accrual Rate. All eligible fire suppression persons shall accrue vacation at the following rate for continuous service performed in a pay status. Non-shift representation unit employees shall accrue the 40-hour equivalent--one shift equals sixteen hours. a. For employees completing less than four years continuous service, the accrual rate shall be five duty shifts per year. b. For employees completing four but not more than nine years continuous service, the accrual rate shall be eight duty shifts per year. c. For employees completing nine but not more than 14 years continuous service, the accrual rate shall be 10 duty shifts per year. d. For employees completing 14 but less than 19 years continuous service, the accrual rate shall be 11 duty shifts per year. e. For employees completing 19 or more years continuous service, the accrual rate shall be 12 duty shifts per year. 28 At the time of initial appointment to the City, the City may credit an employee for prior years of public service in a city, county, special district, state or federal government agency, up to a maximum of four (4) years of service. The City Manager or designee shall identify the number of years for which the employee will receive credit (up to the four (4) year maximum). Section 2. Unused At Termination. Represented employees who fail to use all vacation as accrued may continue the accrual balance and be entitled to all accrued but unused vacation upon termination, except as limited below. Section 3. Limits. Vacation accrual balances shall be limited to three times the annual accrual rate. Accrual credit beyond this limit shall not be recognized or compensated, except that for employees of record as of January 1, 1984 who have vacation excess on a one-time basis shall be set aside (banked) to be subsequently used as vacation or paid at termination. No additions may be made to the bank. The bank is established only to facilitate changeover from unlimited to three times annual accrual rate limitation on vacation accrual as herein provided. ARTICLE XXIV - USE OF VACATION Section 1. Maximum Number of Slots. The maximum number of vacation scheduling slots for representation unit suppression employees is four (4) per platoon on a year- round basis. During the term of the contract, parties agree to meet to discuss the impact of the number of vacation slots per day on daily staffing. Section 2. Approvals. Vacation scheduling must be approved by the Battalion Chief or Fire Chief. The minimum is twelve (12) hours or more for suppression employees. Advance vacation schedules for suppression shall begin either at 8:00 a.m. or 8:00 p.m. Section 3. Vacation Pay. Vacation pay shall be made available in advance of regular pay day provided that employee requests such advance in writing to the Finance Department at least two weeks prior to his/her vacation date. The employee's supervisor must verify vacation date on the request. Section 4. Illness on Vacation. When an employee becomes ill while on vacation and such illness can be supported by a statement from an accredited physician or the employee is hospitalized for any period, the employee shall have the period of illness charged against sick leave and not against vacation leave. Section 5. When to be Taken. The time at which an employee may use accrued vacation leave and the amount to be taken at any one time shall be determined by the Chief with particular regard for the needs of the City, but insofar as possible, considering 29 the wishes of the employee. Section 6. Limitation on Use. Employees may not use more than three times their annual rate of accrual in any calendar year period provided, however, that the Chief may grant exceptions to this limitation. Section 7. Waiting Period. Employees shall complete six months continuous service before using accrued vacation leave. Section 8. Double Compensation Prohibited. Employees shall not work for the City during their vacation. Section 9. Cash out Option. Once each calendar year an employee may cash out eight (8) or more hours of vacation accrual in excess of eighty (80) hours to a maximum of one hundred twenty (120) hours; PROVIDED, that the employee has taken eighty (80) hours of vacation off with pay in the previous twelve (12) months. ARTICLE XXV - SICK LEAVE Section 1. Statement of Policy. Sick leave shall be allowed and used only in case of actual personal sickness or disability, medical or dental treatment, or as authorized in Section 9. Sick leave may be used for illness in the immediate family (wife, husband, child, parent, parent-in-law, brother, sister, registered domestic partner, or close relative residing in the household of the employee.) Section 2. Eligibility. Regular employees shall be eligible to accrue and use sick leave. Section 3. Accrual. Sick leave shall be accrued bi-weekly, provided the employee has been in a pay status for 50 percent or more of a bi-weekly pay period. Sick leave shall be accrued at the rate of six shifts per year. Section 4. Accumulation. Accumulated sick leave may be accrued without limit, except as provided in Section 8 below. Section 5. Use. Sick leave may be used as needed and approved, to the point of depletion, at which time the employee will no longer receive pay for sick leave. A new employee may, if necessary, use up to forty-eight (48) hours or shift equivalent of sick leave at any time during the first six months of employment. Any negative balances generated by such utilization will be charged against future accrual or deducted from final paycheck in the event of termination. An employee who has been disabled for 60 consecutive days and who is otherwise eligible both for payment under the long-term disability group insurance coverage and accrued sick leave benefits may, at his/her option, choose either to receive the long- term disability benefits or to utilize the remainder of his/her accrued sick leave prior to 30 applying for long-term disability benefits. Sick leave will not be granted for illness occurring during any leave of absence other than sick leave, unless the employee can demonstrate that it was necessary to come under the care of a doctor while on such other leave of absence. When an employee finds it necessary to be absent for any reason, he/she should cause the facts to be reported to the department within 60 minutes prior to his/her regular starting time on the first working day of absence, and shall regularly report on, or account in advance for each work day thereafter unless hospitalized or otherwise indisposed. Such reports may be subject to written documentation. Sick leave shall not be granted unless such report or advance accounting has been made, provided, however, that the department head may grant exception to this policy where the circumstances warrant. Section 6. Depletion of Sick Leave Benefits. Upon depletion of sick leave or the beginning of the period to be covered by payments under long-term disability group insurance coverage, whichever comes first, an employee may be granted a medical leave of absence without pay for a period not exceeding sixty days. If the employee is unable to return to work at the end of this period, he/she must request further medical leave which will be subject to the approval of the City Manager. If further leave is granted, the employee must notify the City of intent to return to work every thirty days. If further leave is not granted, the employee's service with the City shall be considered terminated. Section 7. Forfeiture Upon Termination. Employees leaving the municipal service shall forfeit all accumulated sick leave, except as otherwise provided by law and Section 8. In the event that notice of resignation is given, sick leave may be used only through the day which was designated as the final day of work by such notice. Section 8. Payment for Accumulated Sick Leave. Eligible employees (those hired before December 31, 1983) who leave the municipal service in good standing, or who die while employed in good standing by the City, and who have fifteen or more years of continuous service, shall receive compensation for unused sick leave hours in a sum equal to two and one-half percent of their unused sick leave hours multiplied by their years of continuous service and their basic hourly rate of pay at termination. Full sick leave accrual will be paid in the event of termination due to disability. For new employees hired after December 31, 1983, sick leave accrual accumulation will be limited to 1,000 hours with no payoff provisions for unused balance at termination for any reason. Section 9. Personal Business Leave Chargeable to Sick Leave. It is agreed between the parties that all shift personnel represented by the Union shall have the right to charge up to forty-eight (48) hours personal business leave per year to sick leave, and that all non-shift personnel shall have the right to charge up to twenty (20) hours personal business leave per year to sick leave. Such personal business leave shall be allowed 31 only on a staffing available basis and where the provisions of the minimum staffing agreement are not affected. "Staffing available" means at or above minimum staffing levels as defined in Article XII. Section 10. Return to Work or Continue Work With Limited Duty. In cases of non- work-related injury, illness or pregnancy an employee, upon approval of the Fire Chief and the City Safety Officer, may return to work or continue work with doctor-approved limited duty. Approval for such limited duty shall be based upon department ability to provide work consistent with medical limitations and the length of time of the limitations. Shift employees must be willing to accept any non-shift limited duty schedule work location and may be subject to the reasonable availability of limited duty assignments. The City doctor may be consulted in determining work limitations. ARTICLE XXVI - SUBPOENAS Employees required to answer subpoenas as a witness for the City of Palo Alto or for a plaintiff where the City of Palo Alto is a defendant shall not lose pay or benefits for work time lost to answer depositions or to appear in court. ARTICLE XXVII - WORKERS' COMPENSATION Section 1. Status Reporting While on Disability. Persons on disability will be required to appear or otherwise report at regular two-week intervals to the Fire Chief or designate to discuss his/her status of medical treatment therapy and physical condition. This section is not meant to unreasonably restrict employee's activities so long as such activities are cleared by the treating physician, treating program or alternative treatment program is maintained and employee is available for full or restricted duty as soon as medical clearance can be received. ARTICLE XXVIII - PHYSICAL FITNESS MEDICAL EXAMINATIONS Physical fitness medical examinations for all represented employees may include chest x-rays every three years unless otherwise directed by a physician, eye examination and hearing examination. ARTICLE XXIX- LEAVES OF ABSENCE WITHOUT PAY Section 1. Disability. Leaves of absence without pay may be granted in cases of disability not covered by sick leave. Pregnancy will be considered as any other disability. Leaves of absence for disability are subject to physician's verification including diagnosis and medical work restriction. 32 Section 2. Other Leaves. Leaves of absence without pay may be granted in cases of personal emergency or when such absences would not be contrary to the best interest of the City. Non-disability prenatal and/or postpartum leave is available under this provision, but such leave shall not begin more than six months prenatal nor extend more than six months postpartum. Section 3. Accrued Vacation Credits. During unpaid leaves of absence for disability or other reasons, the employee may elect to use accrued vacation credits. Requests for leaves without pay shall not be unreasonably denied. In order to avoid misunderstandings, all leaves without pay must be in writing to be effective. Section 4. Approval of Department Head. Leave of absence without pay for one week or less may be granted by the department head, depending on the merit of the individual case. Section 5. Approval by City Manager. Leave of absence without pay in excess of one week's duration may be granted by the City Manager on the merit of the case, but such leave shall not exceed twelve months' duration. Section 6. Absence Without Leave. Unauthorized leave of absence shall be considered to be without pay, and reductions in the employee's pay shall be made accordingly. Unauthorized leave of absence may result in termination of employment. Section 7. Leave of Absence; Death Outside the Immediate Family. Leave without pay may be granted a regular employee by his/her department head in the event of death to family members other than one of the immediate family, such leave to be granted in accordance with Section 2 and Section 4. Section 8. Military Leave of Absence. State law shall govern the granting of military leaves of absence and the rights of employees returning from such absence. Section 9. Use of paid accruals while on leave. During unpaid leaves of absence for disability or other reasons, the employee may elect and the City may require the employee to use accrued vacation paid leave credits in a manner consistent with state and federal law. Requests for leaves without pay shall not be unreasonably denied. In order to avoid misunderstandings, all leaves without pay must be in writing to be effective. ARTICLE XXX - LEAVES OF ABSENCE WITH PAY Section 1. City Manager Granted Leaves. The City Manager may grant a regular employee under his control a leave of absence with pay for a period not exceeding thirty calendar days for reasons he deems adequate and in the best interest of the City. Section 2. Council Granted Leave. The City Council may grant a regular employee a leave of absence with pay for a period not to exceed one year for reasons the Council considers adequate and in the best interest of the City. 33 Section 3. Employee's Time Off to Vote. Time off with pay to vote at any general or direct primary election shall be granted as provided in the State of California Elections Code, and notice that an employee desires such time off shall be given in accordance with the provisions of said Code. Section 4. Leaves of Absence; Death in Immediate Family. Leave of absence with pay of one shift with provision for approval of one additional shift for travel outside the area may be granted an employee by the Chief in the event of death in the employee's immediate family, which is defined for purposes of this section as wife, husband, son, son-in-law, daughter, daughter-in-law, father, mother, brother, brother-in-law, sister, sister-in-law, mother-in-law, father-in-law, grandfather, grandfather-in-law, grandmother, grandmother-in-law, uncle, aunt, registered domestic partner, or a close relative residing in the household of the employee. Such leave shall be at full pay and shall not be charged against the employee's accrued vacation or sick leave. Requests for leave in excess of two shifts shall be subject to the approval of the City Manager. Section 5. Jury Duty; Leave of Absence. Employees required to report for jury duty shall be granted a leave of absence with pay from their assigned duties until released by the court, provided the employee remits to the City all fees received for such duties other than mileage or subsistence allowances within thirty days from the termination of his or her jury service. ARTICLE XXXI – VOLUNTEER LEAVE PROGRAM The City of Palo Alto has established a Firefighter Voluntary Leave Program to provide members of Local 1319 International Association of Fire Fighters (IAFF) employees the opportunity to donate their accrued vacation time to assist fellow members of IAFF either due to: (a) an employee’s own verifiable non-industrial catastrophic illness or injury (as defined herein) or (b) in order to care for a member of the employee’s immediate family (spouse, child, parent or registered domestic partner suffering from a verifiable catastrophic illness or injury) and have exhausted or will presently exhaust all of their paid leave. In order to be eligible to receive donated leave, an employee must have a catastrophic illness or injury or an employee’s immediate family member must have a catastrophic illness or injury that requires the employee to provide full-time care for this family member. Care will be taken to emphasize the voluntary nature of the plan and to insure confidentiality of employee participants and medical conditions (where applicable). A Firefighter Voluntary Leave Sharing Program has been established to accept donations of vacation in accordance with the Program’s guidelines. All donations shall be: 1. Voluntary 2. Irrevocable 3. Confidential, unless disclosure is required by law 34 4. In whole hour increments of at least four (4) hours, with the hours donated being converted to donee hours based on the donee’s salary rate (so that there will be no cost to the City due to salary differential). 5. The employee shall be required to exhaust all other types of leave to request donated leave 6. It is understood that employees seeking or receiving leave under this program will apply for long-term disability benefits for which they may be eligible 7. Where any of the period during which an employee receives donated leave is designated as family leave under the California Family Rights Act (CFRA/Family Medical Leave Act (FMLA), the employee will be eligible for continuation of medical and other available benefits during that the family leave period (for up to 12 weeks), in accordance with the requirements of those laws. If the employee receiving donated leave is not eligible for CFRA/FMLA benefit continuation, or after the employee has exhausted the available CFRA/FMLA leave period, the employee will need to pay the premiums for continued medical and other available benefits if the employee chooses to continue such coverages through the City 8. If the donation request is based on the need for an employee to care for an immediate family member, as defined above, the family member must require full-time care by the employee. Certification of this requirement by a health care professional is required 9. The maximum donated time a donee may receive is 12 months (if available). 10. Applications to donate leave or receive leave under this Program are made to the Human Resources Department 11. This is a pilot program and is subject to cancellation by either party IAFF members interested in donating leave or in applying to receive donated leave shall complete forms provided by the Human Resources Department. If an applicant for leave is found to meet the criteria set forth herein, Human Resources will determine the availability of and (as applicable) allocation of donated paid leave. Payroll will be notified in writing of the number of hours to be deducted from each donating employee’s vacation balance and transferred to the donee employee(s). The City reserves the right to modify or terminate this program at any time. Catastrophic Illness or Injury (also referred to as “medical emergency” in Revenue Ruling 90-29 and Sections 801(c) and 812 of the Merit Rules and Regulations): A non- occupational medical condition of an employee that will require the prolonged absence of the employee from duty and which will result in a substantial loss of income to the employee because the employee will have exhausted all paid leave available apart from the Voluntary Employee Leave sharing Program. Non-disability postpartum leave as referenced in Merit Rule 801(b) shall not be considered a catastrophic illness or injury under this Policy. ARTICLE XXXII- TUITION REIMBURSEMENT 35 Section 1. Options. Effective July 1, 2004 the tuition reimbursement program was amended to provide each employee the option of receiving the $1,000 as taxable cash or as a contribution to deferred compensation. The tuition reimbursement program will be eliminated effective July 1, 2012 with no further payouts starting in FY 12-13 and on-going. ARTICLE XXXIII - PER DIEM TRAVEL EXPENSES Section 1. City Business. Unless other mutually agreeable arrangements are made, representation unit employees who are required to travel away from the City on City business will receive travel expenses, according to City policies which are currently in effect. ARTICLE XXXIV - HOUSE FUND ITEMS Section 1. Station House Fund. The station house fund per year, per shift employee shall be $100.00. Section 2. Non-Food House Items. The City agrees to furnish and maintain each fire station with non-food house fund items: TV purchase and repair. Kitchen cooking utensils, small kitchen appliances and other specific items to be determined by mutual agreement of the parties will be purchased from the station house fund. The Fire Fighters agree to maintain the voter registration program. ARTICLE XXXV- PARKING Section 1. Entitlements. Employees in represented classes assigned to Civic Center or adjacent work locations shall be entitled to free parking in the Civic Center Garage, or a commute incentive which will be subject to meet and confer. Employees hired after July 1, 1994, may initially receive a parking permit for another downtown lot, subject to availability of space at the Civic Center Garage. Light duty employees assigned to the Civic Center will receive Civic Center parking temporary permits for the duration of the light duty assignment. ARTICLE XXXVI- GRIEVANCES The City and the Union agree to establish a grievance procedure as follows: 1. Definition: A grievance is any complaint or dispute regarding the application of interpretation of this Memorandum of Understanding, Department rules, regulations, policies or procedures relating to wages, hours or other terms and 36 conditions of employment. 2. Any non-probationary employee represented by the Union may file and process a grievance. Such aggrieved employees may be represented by the Union or may represent themselves in preparing and presenting their grievance at any level of review. The Union may file a grievance when a Union right not directly related to an individual employee becomes subject to dispute. 3. Any retroactivity on monetary grievances shall be limited to the date of occurrence, except in no case will retroactivity be granted prior to three months before the grievance was filed in writing. 4. Written grievances shall be submitted on forms provided by the City or on forms which are mutually agreeable to the City and the Union. The Union shall deliver a copy of a written grievance to the Human Resources Department Director on the same date that it is first filed with another City representative under the provisions of the below grievance procedure. 5. The time limits specified in this section may be extended by mutual agreement in writing of the aggrieved employee or Union and the reviewer concerned. Should a decision not be rendered within a stipulated time limit, the aggrieved employee may immediately appeal to the next step. The grievance will be considered settled if the decision of any step is not appealed within the specified time limit. 6. If a grievance is related to a promotional process to positions within the representation unit, Step I shall be directed to the Deputy Fire Chief (or Fire Marshal for FPB positions). 7. Step I. The aggrieved employee will first attempt to resolve the grievance through informal discussions with the immediate supervisor by the end of the tenth business day following the discovery of the incident upon which the grievance is based. Every attempt will be made to settle the issue at this level. Step II. If the grievance is not resolved through informal discussion, it may be submitted in writing to the Battalion Chief (Deputy Fire Chief for Captain grievances) within ten business days of the informal discussion. The Battalion Chief/Assistant Fire Chief will have ten business days from receipt of the grievance to review the matter and prepare a written response. If the grievance is denied, the response shall contain the reasons therefore. Step III. If the grievance is not resolved in Step II, it may be submitted in writing to the Fire Chief within ten business days of receipt of the Battalion Chief's/ Deputy Fire Chief's written response. The Fire Chief will have ten business days from receipt of the grievance to review the matter and prepare a written response. If the grievance is denied, the response shall contain the reasons therefore. Step IV. If the grievance is not resolved in Step III, the aggrieved employee may 37 submit the grievance to the City Manager for final determination or to binding grievance arbitration. All Step IV appeals must be filed in writing at the Human Resources Department Office within ten business days of receipt of the Fire Chief's response under Step III. All hearings before the City Manager shall be pursuant to the rules and regulations set forth in the City of Palo Alto Merit Rules and Regulations. Hearings before an arbitrator will be as set forth below. In the event the aggrieved employee decides to proceed to arbitration, he/she shall select jointly with the Director of Human Resources an arbitrator. If the parties are unable to agree on an arbitrator, they shall jointly request a panel of five qualified and experienced arbitrators from the State Conciliation Service. Upon receipt of the list of arbitrators, the names shall be alternately struck until one name remains who shall serve as arbitrator. The arbitrator shall be jointly contacted by the parties. The arbitrator shall have jurisdiction and authority only to interpret, apply, or determine compliance with the provisions of the Memorandum of Agreement and such Merit System rules, regulations, policies, procedures, City ordinances or regulations relating to terms or conditions of employment, wages or fringe benefits, as may hereafter be in effect in the City insofar as may be necessary to the determination of grievances appealed to the arbitrator. The arbitrator shall be without power to make any decision: a. Regarding matters of interest. b. Contrary to, or inconsistent with or modifying in any way, the terms of this Memorandum of Agreement. c. Granting any wage increases or decreases. d. Granting pay or benefits for any period of time prior to the execution date of this Memorandum of Agreement. Where either party seeks arbitration and the other party claims the matter is not subject to the arbitration provisions of the Memorandum of Agreement, the issue of arbitrability shall first be decided by the arbitrator using the standards and criteria set forth in this Memorandum of Agreement. The arbitrator shall be without authority to require the City to delegate or relinquish any powers which by State law or City Charter the City cannot delegate or relinquish. Copies of the arbitrator's decision shall be submitted to the City and the aggrieved employee. All direct costs emanating from the arbitration procedure shall be shared equally by the City and the aggrieved employee or the Union. It is further agreed that the provisions of this section shall be incorporated as part of Chapter 11 of the City of Palo Alto Merit System Rules and Regulations. Existing procedures set forth in Chapter 11, to the extent they are inconsistent with the provisions contained herein, are superseded. 38 ARTICLE XXXVII- SAFETY COMMITTEE Section 1. Committee A Safety Committee comprised of four representation unit members appointed by the Union, and at least two members of Management, will continue to meet. The Committee may make safety recommendations to the Fire Chief regarding equipment, vehicles and apparatus and may review all accidents involving represented personnel. Management shall inform the Safety Committee of all accidents involving injuries to represented personnel. ARTICLE XXXVIII – MISCELLANEOUS Section 1. Section 1. Uniforms. The value of the purchase, rental and/or maintenance of the required uniforms shall be reported as special compensation to the extent legally permissible, pursuant to Title 2 CCR, Section 571(a)(5) as Uniform Allowance. Based upon existing uniform standards and the City’s cost experience, the value of this benefit shall be reported as $15.31 per pay period. The City will supply complete uniforms as described in Fire Department Policy 1031. The City will issue four T-shirts to each uniformed employee each July These T-shirts are for use on duty only and will be maintained by the employee. Section 2. Removal of Disciplinary Actions. Records of disciplinary actions shall be removed from the personnel file of a representation unit employee upon written request by the employee after a period of three years, or sooner if mutually agreed by the Fire Chief and the employee. If the disciplinary action involved violations of the City’s anti-harassment policy, state/federal harassment or discrimination laws, or if there have been subsequent violations of the same policy during the three-year period, the Fire Chief may deny the request for removal. In such cases, the employee may request a review meeting with the Fire Chief or designee, Union President or designee, and Human Resources. The final decision following this review meeting is final and not subject to any grievance or appeal rights. ARTICLE XXXIX - FULL UNDERSTANDING Section 1. Full and Entire Understanding. The Memorandum of Agreement contains the full and entire understanding of the parties regarding the matters set forth herein. 39 Section 2. Fair Labor Standards Act. Compensatory time off with Management approval may be used as an alternative to overtime compensation only within the 27- day work period within which the overtime is worked. Section 3. Severability. Should any of the provisions herein contained be rendered or declared invalid by reason of any existing State or Federal legislation or by reason of State or U.S. Supreme Court ruling, such invalidation of such part or portion of this Memorandum of Agreement shall not invalidate the remaining portions hereof, and they shall remain in full force and effect, insofar as such remaining portions are severable. Section 4. Good Faith. It is the intent of the parties that ordinances, resolutions, rules and regulations enacted pursuant to this Memorandum of Understanding be administered and observed in good faith. Section 5. Merit System Rules and Regulations. During the term of this Memorandum of Agreement, Management may propose certain changes in the City Merit System Rules and Regulations. With regard to such changes which pertain to the representation unit, the parties agree to review, and upon request, meet and confer regarding the changes. Section 6. Station Consolidation or Relocation . During the term of this agreement, at management request, the parties agree to meet and confer with regard to issues pertaining to fire station consolidation or relocation. Section 7. Meet and Confer. Nothing in this agreement shall preclude the parties from mutually agreeing to meet and confer on any subject within the scope of representation during the term of this agreement. ARTICLE XL – 48/96 Work Schedule The regular schedule for 56 hour personnel will be under a “48/96” model. With the adoption of this “48/96” schedule the parties agreed to revise Fire Department policy 205.6 typical workday and 1009.8.1 Reporting for Duty- Holidays. ARTICLE XLI – FUTURE SERVICE DELIVERY MODELS Effective upon request of the City, the parties will meet and confer in good faith regarding the service delivery model of current inspection services and transport during the term of this Agreement. ARTICLE XLII - DURATION This Memorandum of Agreement shall become effective upon ratification by both parties hereto and remain in effect through June 30, 2028. 38 EXECUTED: FOR: FOR: INTERNATIONAL ASSOCIATION CITY OF PALO ALTO FIRE FIGHTERS __ __ _____ __ __ ___ __________ __________ 39 Memorandum of Agreement City of Palo Alto and Palo Alto Fire Chiefs’ Association July 1, 2025 – June 30, 2028 1 MEMORANDUM OF AGREEMENT Table of Contents PREAMBLE ____________________________________________________________________________________ 4 ARTICLE I - RECOGNITION _______________________________________________________________________ 4 SECTION 1. ___________________________________________________________________________________ 4 ARTICLE II - NO DISCRIMINATION _________________________________________________________________ 4 SECTION 1. ___________________________________________________________________________________ 4 SECTION 2 ___________________________________________________________________________________ 4 ARTICLE III - PAYROLL DEDUCTIONS _______________________________________________________________ 4 SECTION 1 ___________________________________________________________________________________ 4 SECTION 2. CERTIFICATION OF UNION MEMBERSHIP _______________________________________________________ 5 SECTION 3. INDEMNIFICATION ______________________________________________________________________ 5 ARTICLE IV - NO STRIKES ________________________________________________________________________ 5 SECTION 1 ___________________________________________________________________________________ 5 ARTICLE V - SALARY PROVISIONS _________________________________________________________________ 5 SECTION 1. SALARY RANGE ADJUSTMENTS. _____________________________________________________________ 5 SECTION 2. EMT DIFFERENTIAL _____________________________________________________________________ 6 SECTION 3. 40-HOUR WORK WEEK ASSIGNMENT DIFFERENTIAL _______________________________________________ 6 SECTION 4. OUT OF COUNTY STRIKE TEAM PAY. _________________________________________________________ 6 ARTICLE VI – HOLIDAYS _________________________________________________________________________ 7 SECTION 1. NAMED HOLIDAYS. _____________________________________________________________________ 7 SECTION 2. DAY OF REFLECTION _____________________________________________________________________ 7 SECTION 3. 56-HOUR WORK WEEK ASSIGNMENTS. _______________________________________________________ 7 SECTION 4. 40-HOUR WORK WEEK ASSIGNMENTS. _______________________________________________________ 8 ARTICLE VII - VACATION ACCRUAL _________________________________________________________________ 8 SECTION 1. ___________________________________________________________________________________ 8 SECTION 2. 56-HOUR WORKWEEK ASSIGNMENTS ________________________________________________________ 8 SECTION 3. 40-HOUR WORKWEEK ASSIGNMENTS. ________________________________________________________ 8 ARTICLE VIII - VACATION CASH OUT _______________________________________________________________ 9 SECTION 1. LIMITATION ON USE. ____________________________________________________________________ 9 SECTION 2. CASH OUT OPTION. _____________________________________________________________________ 9 ARTICLE IX - MANAGEMENT ANNUAL LEAVE _______________________________________________________ 10 SECTION 1 __________________________________________________________________________________ 10 ARTICLE X - OTHER PAID LEAVES _________________________________________________________________ 10 SECTION 1. CITY MANAGER GRANTED LEAVES __________________________________________________________ 10 SECTION 2. COUNCIL GRANTED LEAVE _______________________________________________________________ 10 SECTION 3. EMPLOYEE'S TIME OFF TO VOTE ___________________________________________________________ 10 SECTION 4. LEAVES OF ABSENCE; DEATH IN IMMEDIATE FAMILY ______________________________________________ 11 2 SECTION 5. JURY DUTY; LEAVE OF ABSENCE ____________________________________________________________ 11 SECTION 6. SUBPOENAS _________________________________________________________________________ 11 ARTICLE XI - OTHER LEAVE PROVISIONS ___________________________________________________________ 12 SECTION 1. DISABILITY. __________________________________________________________________________ 12 SECTION 2. OTHER UNPAID LEAVES. _________________________________________________________________ 12 SECTION 3. ACCRUED VACATION CREDITS. _____________________________________________________________ 12 SECTION 4. APPROVAL OF DEPARTMENT HEAD. _________________________________________________________ 12 SECTION 5. APPROVAL BY CITY MANAGER _____________________________________________________________ 12 SECTION 6. ABSENCE WITHOUT LEAVE. _______________________________________________________________ 12 SECTION 7. LEAVE OF ABSENCE; DEATH OUTSIDE THE IMMEDIATE FAMILY. _______________________________________ 12 SECTION 8. MILITARY LEAVE OF ABSENCE. _____________________________________________________________ 12 ARTICLE XII - VOLUNTARY CATASTROPHIC LEAVE PROGRAM _________________________________________ 12 SECTION 1. __________________________________________________________________________________ 12 SECTION 2. __________________________________________________________________________________ 12 SECTION 3. __________________________________________________________________________________ 13 SECTION 4. __________________________________________________________________________________ 13 SECTION 5. __________________________________________________________________________________ 13 SECTION 6. __________________________________________________________________________________ 14 ARTICLE XIII - ADDITIONAL COMPENSATION FOR BC CLASSIFICATIONS _________________________________ 14 ARTICLE XIV - EXCESS BENEFIT REIMBURSEMENT ___________________________________________________ 15 SECTION 1. __________________________________________________________________________________ 15 ARTICLE XV - PHYSICAL EXAMS __________________________________________________________________ 16 ARTICLE XVI - BENEFIT PROGRAMS _______________________________________________________________ 16 SECTION 1. HEALTH PLAN - ACTIVE EMPLOYEES ______________________________________________________ 16 SECTION 2. DUAL COVERAGE. _____________________________________________________________________ 18 SECTION 3 DENTAL BENEFITS ______________________________________________________________________ 18 SECTION 4. VISION CARE. ________________________________________________________________________ 18 SECTION 5. EMPLOYEE ASSISTANCE PLAN _____________________________________________________________ 18 ARTICLE XVII – RETIREMENT MEDICAL PLAN _______________________________________________________ 19 SECTION 1. RETIREE MEDICAL COVERAGE FOR UNIT EMPLOYEES HIRED BEFORE JANUARY 1, 2004: ______________________ 19 SECTION 2. 20-YEAR VESTING FOR RETIREE MEDICAL COVERAGE FOR UNIT EMPLOYEES HIRED ON OR AFTER JANUARY 1, 2004: _ 19 ARTICLE XIII – BASIC LIFE INSURANCE _____________________________________________________________ 19 ARTICLE XIX– SUPPLEMENTAL LIFE INSURANCE _____________________________________________________ 19 ARTICLE XX– LONG TERM DISABILITY INSURANCE ___________________________________________________ 19 ARTICLE XXI - EFFECTIVE DATE OF BENEFIT COVERAGE FOR NEW EMPLOYEES ____________________________ 20 ARTICLE XXII-WORKERS’ COMPENSATION _________________________________________________________ 20 ARTICLE XXIII- RETIREMENT PENSION PLANS _______________________________________________________ 20 SECTION 1. SAFETY PERS RETIREMENT FORMULA. _______________________________________________________ 20 SECTION 2. STATUS DETERMINATION ________________________________________________________________ 21 SECTION 3. EMPLOYER CONTRIBUTIONS TO 457 PLAN _____________________________________________________ 21 ARTICLE XXIV - MISCELLANEOUS EMPLOYMENT-RELATED EXPENSES ___________________________________ 22 SECTION 1. STATION HOUSE FUND. _________________________________________________________________ 22 3 SECTION 2. NON-FOOD HOUSE ITEMS _______________________________________________________________ 22 SECTION 3. PER DIEM TRAVEL EXPENSES FOR CITY BUSINESS ________________________________________________ 22 SECTION 4. PARKING ___________________________________________________________________________ 22 SECTION 5. UNIFORM. __________________________________________________________________________ 22 ARTICLE XXV – WORK ASSIGNMENTS _____________________________________________________________ 22 SECTION 1. __________________________________________________________________________________ 22 SECTION 2. WORKING OUT OF CLASSIFICATION __________________________________________________________ 22 ARTICLE XXVI - FULL UNDERSTANDING ____________________________________________________________ 23 SECTION 1 __________________________________________________________________________________ 23 SECTION 2. SEVERABILITY. ________________________________________________________________________ 23 SECTION 3. __________________________________________________________________________________ 23 SECTION 4. __________________________________________________________________________________ 23 SECTION 5. __________________________________________________________________________________ 23 ARTICLE XXVII - DURATION _____________________________________________________________________ 23 ARTICLE XXVIII- 48/96 WORK SCHEDULE __________________________________________________________ 23 APPENDIX A__________________________________________________________________________________ 25 4 CITY OF PALO ALTO AND PALO ALTO FIRE CHIEFS’ ASSOCIATION PREAMBLE This Memorandum of Agreement between the City of Palo Alto, hereinafter referred to as the "City", and the Palo Alto Fire Chiefs’ Association, hereinafter referred as the "Association", has been prepared and entered into in accordance with Title I, Division 4, Chapter 10, Sections 3500-3510 of the California Government Code and Chapter 12 of the City of Palo Alto Merit System Rules and Regulations. ARTICLE I - RECOGNITION Section 1. The City recognizes the Association as the exclusive representative of an employee group consisting solely of the classifications of Battalion Chief 56-hour workweek, and Battalion Chief 40-hour workweek who are regularly employed by the City. ARTICLE II - NO DISCRIMINATION Section 1. The Association and the City hereby agree that there shall be no discrimination because of race, color, age, disability, sex, national origin, sexual orientation, political or religious affiliation or any other basis recognized by federal, state or local law under this Agreement. There shall be no discrimination in employment conditions or treatment of employees on the basis of membership or non-membership in the Association, or participation in the lawful activities of the Association. Section 2. The Association and the City hereby agree to protect the rights of all employees to exercise their free choice to join the Association and to abide by the express provisions of applicable State and local laws. ARTICLE III - PAYROLL DEDUCTIONS Section 1. The City shall deduct Association membership dues assessments and insurances authorized by the Association. This will be accomplished by payroll deductions from the bi- weekly pay of member employees. The dues deduction must be authorized in writing by the employee on an authorization card. The Association will be the custodian of records for individual employee membership and dues deduction forms. The Association will maintain all authorizations for dues deduction, signed by the individual from whose salary or wages the deduction or reduction is to be made. The City 5 will direct employee requests to cancel or change deductions to the Association. The City shall remit the deducted dues to the Association as soon as possible after deduction. Section 2. Certification of Association Membership. The Association agrees to provide the City a certified list of members and statement that the Association has and will maintain written authorizations signed by the individuals from whose wages the Association dues deductions are to be made. The Association will update the list whenever there are changes. Section 3. Indemnification. The Association shall indemnify and hold the City harmless against any liability arising from any claims, demands, or other action relating to this article. The Association shall comply with all statutory and legal requirements with respect to this article. ARTICLE IV - NO STRIKES Section 1. The Association, its representatives, or members, shall not engage in or cause, instigate, encourage, sanction, or condone a strike, withholding of services, leave of absence abuse, work stoppage or work slowdown of any kind against the City of Palo Alto or its citizens by employees covered under this Agreement. No employee shall refuse to cross any picket line in the conduct of Fire Department business, nor shall the Association, its representatives or members discriminate in any way toward anyone who refuses to participate in a strike, or any of the job actions cited above. ARTICLE V - SALARY PROVISIONS Section 1. Salary Range Adjustments. The base wage rates of the bargaining unit classifications will be set forth in Appendix A of this MOA. a) General Salary Increase: Effective the first full pay period following the later of July 1, 2025 or the adoption of the MOA, the salary ranges of all represented classifications will be increased by three percent (3.0%). b) Market Adjustment: Effective the first full pay period following the later of July 1, 2025 or the adoption of the MOA, the salary ranges of all represented classifications will be increased by one and one half percent (1.5%). The 40hr training Battalion Chief position will be increased by an additional half percent (0.5%). 6 c) General Salary Increase: Effective the first full pay period following July 1, 2026, the salary ranges of all represented classifications will be increased by three percent (3.0%). d) Market Adjustment: Effective the first full pay period following July 1, 2027, the salary ranges of all represented classifications will receive a market adjustment of two percent (2.0%). e) General Salary Increase: Effective the first full pay period following July 1, 2027, the salary ranges of all represented classifications will be increased by three percent (3.0%). f) Total Compensation and Survey Database: Management and the Union have agreed to a compensation survey database structure. Survey Cities include: Alameda, Berkeley, Fremont, Hayward, Menlo Park Fire District, Milpitas, Mountain View, Redwood City, Pleasanton, San Jose, San Mateo, San Ramon Fire District, Santa Clara, Santa Clara County and South San Francisco. Compensation Criteria includes: top step salary, maximum longevity, maximum education, uniform allowance, EMT differential, Hazmat differential, deferred compensation, employee pick up of employer pension costs (Negative EPMC), and maximum City paid benefits (medical, dental, vision, life insurance, LTD, and EAP). The database is intended to provide one source of information concerning how the compensation paid to employees in bargaining unit job classifications compares to that paid by other employers. Section 2. EMT Differential. The former EMT differential of 3.0% was rolled into base pay. This one time conversion to base pay, shall constitute the City’s incentive payment for EMT skills. This conversion was cost neutral to the City. Section 3. 40-hour Work Week Assignment Differential. Employees assigned to a 40-hour workweek schedule will be paid a differential of five percent (5%) of base salary in-lieu of holiday pay differential which 56-hour shift Battalion Chiefs receive. Section 4. Out of County Strike Team Pay. A Battalion Chief sent on out of County strike team duty will receive the following compensation only if the City is reimbursed from the state or federal government for the labor costs incurred by the City. Compensation to the employee will not exceed the rate for which the City is reimbursed by the State of California or other external entity, excluding reimbursements for other labor costs (e.g. workers compensation, administrative expense, etc.). A Battalion Chief on their regular duty shift deployed on an out of County strike team will be eligible for compensation at their normal hourly rate (1.0 hourly rate), assuming a regular 56 hour schedule. 7 A Battalion Chief on non-regular duty shift days deployed on an out of County strike team will be eligible for compensation at a rate of 1.5 of their normal hourly rate. For 40 hour Battalion Chiefs deployed on an out of County strike team, any out of County strike team compensation will be calculated at a 56 hour Battalion Chief Schedule hourly rate. Payment for out of county strike team duty will be calculated based on the number of twenty-four hour shifts worked and prorated for any partial shifts. A Personnel Action Form will be completed in a timely manner to process this payment. The amount of the payment will be calculated in a manner described above. If the City is not reimbursed, no payment is due to the employee. If the City is reimbursed in part, a prorated payment will be calculated based on the reimbursement rate. As outlined above, compensation to the employee will not exceed the rate for which the City is reimbursed by the State of California or other external entity. ARTICLE VI – HOLIDAYS Section 1. Named Holidays. Holiday pay is compensation for employees who are normally required to work on an approved holiday because they work in positions that require scheduling staff without regard to holidays. The following holidays are recognized as municipal holidays for pay purposes. Regular, employees shall have these days off with pay, except as otherwise provided in these rules: January 1 Veterans’ Day, November 11 Third Monday in January Thanksgiving Day Third Monday in February Day after Thanksgiving Day Last Monday in May December 25 July 4 Either December 24, or December 31 First Monday in September Second Monday in October Section 2. Day of Reflection. In addition to the paid holidays listed above, employees shall be excused with pay for one full work shift as a day of reflection (floating holiday) per calendar year, Employees may use the floating holiday on any day mutually agreed by the employee and their supervisor for a Day of Reflection, including: Juneteenth Freedom Day (June 19) or Cesar Chavez/Dolores Huerta Day (March 31). Day of Reflection not used by the end of the calendar year will be forfeited and have no cash value. Section 3. 56-Hour Work Week Assignments. Shift personnel shall receive pay in lieu of taking paid leave for accrued holidays. One hundred sixty one and one half (161.5) hours are paid annually to an employee at a rate of 6.21 hours each pay period. Such paid hours will be paid 6.21 hours of in lieu of holiday pay each pay period. Hours are prorated and accrue based on hours worked. 8 Section 4. 40-Hour Work Week Assignments. Employees assigned to a 40-hour workweek schedule receive paid holidays in accordance with Sections 517 and 518 of the Merit System Rules and Regulations. ARTICLE VII - VACATION ACCRUAL Section 1. Vacation is accrued when an employee is in a pay status and is credited on a bi-weekly basis. Such accrual balance and credit may not exceed three times the annual rate of accrual. Accrual rates by work week assignments are indicated in Section 2 and Section 3 below. Section 2. 56-Hour Workweek Assignments. Employees assigned to a 56-hour workweek schedule (24- hour shift) accrue vacation at the following rates: a) For employees having completed less than four (4) years continuous service, the accrual rate shall be five (5) duty shifts per year. b) For employees having completed four (4), but less than nine (9) years continuous service, the accrual rate shall be eight (8) duty shifts per year. c) For employees having completed nine (9), but less than fourteen (14) years continuous service, the accrual rate shall be ten (10) duty shifts per year. d) For employees having completed fourteen (14), but less than nineteen (19) years continuous service, the accrual rate shall be eleven (11) duty shifts per year. e) For employees having completed nineteen (19) or more years continuous service, the accrual rate shall be twelve (12) duty shifts per year. Section 3. 40-Hour Workweek Assignments. Personnel assigned to a 40-hour workweek schedule accrue vacation at the following rates: a) For employees having completed less than four (4) years continuous service, the accrual rate shall be eighty (80) hours per year. b) For employees having completed four (4), but less than nine (9) years continuous service, the accrual rate shall be one-hundred twenty (120) hours per year. c) For employees having completed nine (9), but less than fourteen (14) years continuous service, the accrual rate shall be one-hundred sixty (160) hours per year. d) For employees having completed fourteen (14), but less than nineteen (19) years continuous service, the accrual rate shall be one-hundred eighty (180) hours vacation leave per year. 9 e) For employees having completed nineteen (19) or more years continuous service, the accrual rate shall be two- hundred (200) hours vacation leave per year. ARTICLE VIII - VACATION CASH OUT Section 1. Limitation on Use. Employees may not use more than three times their annual rate of accrual in any calendar year period provided, however, that the Chief may grant exceptions to this limitation. Section 2. Cash out Option. a) Once each calendar year, employees are eligible to cash out vacation accrual balances in excess of 80 hours. An employee may cash out a minimum of eight (8) hours to a maximum of 120 hours of accrued vacation provided employee has taken 80 vacation hours in the previous 12 months and has followed the election procedures set forth in this section. b) Employee must elect the number of vacation hours they will cash-out during the next calendar year, up to the maximum of 120 hours. For the 2012 calendar vacation year, employees will make their election for vacation hours to cash out no later than November 1, 2012. The election will apply only to vacation hours that are accrued in the next calendar year and that are eligible for cash-out. c) The election to cash-out vacation hours in each designated year will be irrevocable. This means that employees who elect to cash-out vacation hours must cash-out the number of accrued hours pre-designates on the election form. d) Employees who do not elect a cash-out amount by November of the prior calendar year will be deemed to have waived the right to cash out any leave in the following tax year and will not be eligible to cash-out vacation hours in the next tax year. e) Employees who elect cash-out amount may request a cash-out at any time in the designated tax year by submitting a cash-out form to payroll. Payroll will complete the cash-out form upon request, provided the requested cash-out amount has accrued and is consistent with the amount the employee pre-designated. If the full amount of hours designated for cash-out is not available at the time of cash-out, the maximum available will be paid. For employees who have not requested cash-out of the elected amount by November 1 of year, Payroll will automatically cash- out the elected amount in a paycheck issued on or after the payroll date including November 1. 10 ARTICLE IX - MANAGEMENT ANNUAL LEAVE Section 1. Forty (40) hour non-shift employees not eligible for overtime shall be credited at the beginning of each calendar year with eighty (80) hours of annual leave. Fifty-six (56) hour shift employees shall be credited one hundred and twelve (112) hours of annual leave. Such leave may be taken as paid time off, added to vacation accrual (subject to vacation accrual limitations), taken as cash, or taken as deferred compensation. Entitlement under this provision will be reduced on a prorated basis for part-time status, or according to the number of months in paid status during the calendar year. At the end of the calendar year, unused management annual leave will be paid in cash, unless a different option as indicated above is elected by the employee. ARTICLE X - OTHER PAID LEAVES Section 1. City Manager Granted Leaves. The City Manager may grant a regular employee under his control a leave of absence with pay for a period not exceeding thirty calendar days for reasons he deems adequate and in the best interest of the City. Section 2. Council Granted Leave. The City Council may grant a regular employee a leave of absence with pay for a period not to exceed one year for reasons the Council considers adequate and in the best interest of the City. Section 3. Employee's Time Off to Vote. Time off with pay to vote at any general or direct primary election shall be granted as provided in the State of California Elections Code, and notice that an employee desires such time off shall be given in accordance with the provisions of said Code. 11 Section 4. Leaves of Absence; Death in Immediate Family. Leave of absence with pay may be granted an employee by the Chief in the event of death in the employee's immediate family, which is defined for purposes of this section as: wife husband son son-in-law daughter daughter-in-law father mother brother brother-in-law sister sister-in-law mother-in-law father-in-law step-father step-mother step-sister step-brother grandfather grandfather-in-law grandmother grandmother-in-law uncle aunt niece nephew registered domestic partner close relative residing in the household of the employee 56 hour shift employees may receive one shift with provision for approval of one additional shift for travel outside the area. Such leave shall be at full pay and shall not be charged against the employee's accrued vacation or sick leave. Shift employees may supplement paid bereavement leave with accrued leave (including vacation or sick leave) or unpaid leave to reach 48 hours of consecutive time off per incident of bereavement. Requests for leave in excess of two shifts shall be subject to the approval of the City Manager. Employees assigned to a 40-hour work week may be granted by the Chief three (3) days of leave with pay in the event of death in the employee’s immediate family. Non-shift employees may supplement paid bereavement leave with accrued leave (including vacation or sick leave) or unpaid leave to reach a total of five (5) workdays of time off per incident of bereavement. Section 5. Jury Duty; Leave of Absence. Employees required to report for jury duty shall be granted a leave of absence with pay from their assigned duties until released by the court, provided the employee remits to the City all fees received for such duties other than mileage or subsistence allowances within thirty days from the termination of his or her jury service. Section 6. Subpoenas. Employees required to answer subpoenas as a witness for the City of Palo Alto or for a plaintiff where the City of Palo Alto is a defendant shall not lose pay or benefits for work time lost to answer depositions or to appear in court. Section 7. Personal Business. Employees may use up to thirty (30) hours of sick leave per calendar year for personal business. The scheduling of such leave is subject to the approval of the appropriate level of management. 12 ARTICLE XI - OTHER LEAVE PROVISIONS Section 1. Disability. Leaves of absence without pay may be granted in cases of disability not covered by sick leave. Pregnancy will be considered as any other disability. Leaves of absence for disability are subject to physician's verification including diagnosis and medical work restriction. Section 2. Other Unpaid Leaves. Leaves of absence without pay may be granted in cases of personal emergency or when such absences would not be contrary to the best interest of the City. Requests for leaves without pay shall not be unreasonably denied. Approval of leave without pay must be in writing to be effective. Non-disability prenatal and/or postpartum leave is available under this provision, but such leave shall not begin more than six months prenatal nor extend more than six months postpartum. Section 3. Accrued Vacation Credits. During unpaid leaves of absence for disability or other reasons, the employee may elect to use accrued vacation credits. Section 4. Approval of Department Head. Leave of absence without pay for one week or less may be granted by the department head, depending on the merit of the individual case. Section 5. Approval by City Manager. Leave of absence without pay in excess of one (1) week may be granted by the City Manager on the merit of the case, but such leave shall not exceed twelve (12) months. Section 6. Absence Without Leave. Unauthorized leave of absence shall be without pay, and reductions in the employee's pay shall be made accordingly. Unauthorized leave of absence may result in discipline, including termination of employment. Section 7. Leave of Absence; Death Outside the Immediate Family. Leave without pay may be granted a regular employee by their department head in the event of a death outside the immediate family, such leave to be granted in accordance with Section 2 and Section 4. Section 8. Military Leave of Absence. Applicable law shall govern the granting of military leaves of absence and the rights of employees returning from such absence. ARTICLE XII - VOLUNTARY CATASTROPHIC LEAVE PROGRAM Section 1. The City of Palo Alto has established a Firefighter Voluntary Leave Program to provide FCA employees the opportunity to donate their accrued vacation time to assist fellow members of FCA either due to: (a) an employee’s own verifiable non-industrial catastrophic illness or injury (as defined herein) or (b) in order to care for a member of the employee’s immediate family (spouse, child, parent or registered domestic partner suffering from a verifiable catastrophic illness or injury) and have exhausted or will presently exhaust all of their paid leave. Section 2. In order to be eligible to receive donated leave, an employee must have a catastrophic 13 illness or injury or an employee’s immediate family member must have a catastrophic illness or injury that requires the employee to provide full-time care for this family member. Care will be taken to emphasize the voluntary nature of the plan and to insure confidentiality of employee participants and medical conditions (where applicable). Section 3. A Firefighter Voluntary Leave Sharing Program has been established to accept donations of vacation in accordance with the Program’s guidelines. All donations shall be: a) Voluntary b) Irrevocable c) Confidential, unless disclosure is required by law d) In whole hour increments of at least four (4) hours, with the hours donated being converted to donee hours based on the donee’s salary rate (so that there will be no cost to the City due to salary differential). e) The employee shall be required to exhaust all other types of leave to request donated leave f) It is understood that employees seeking or receiving leave under this program will apply for long- term disability benefits for which they may be eligible g) Where any of the period during which an employee receives donated leave is designated as family leave under the California Family Rights Act (CFRA/Family Medical Leave Act (FMLA), the employee will be eligible for continuation of medical and other available benefits during that the family leave period (for up to 12 weeks), in accordance with the requirements of those laws. If the employee receiving donated leave is not eligible for CFRA/FMLA benefit continuation, or after the employee has exhausted the available CFRA/FMLA leave period, the employee will need to pay the premiums for continued medical and other available benefits if the employee chooses to continue such coverage through the City h) If the donation request is based on the need for an employee to care for an immediate family member, as defined above, the family member must require full-time care by the employee. Certification of this requirement by a health care professional is required i) The maximum donated time a donee may receive is 12 months (if available). j) Applications to donate leave or receive leave under this Program are made to the Human Resources Department k) The tax treatment of donation or receipt of vacation under this section is governed by the IRS and not the City. Section 4. FCA members interested in donating leave or in applying to receive donated leave shall complete forms provided by the Human Resources Department. If an applicant for leave is found to meet the criteria set forth herein, Human Resources will determine the availability of and (as applicable) allocation of donated paid leave. Payroll will be notified in writing of the number of hours to be deducted from each donating employee’s vacation balance and transferred to the donee employee(s). Section 5. The City reserves the right to modify or terminate this program at any time. 14 Section 6. Catastrophic Illness or Injury (also referred to as “medical emergency” in Revenue Ruling 90-29 and Sections 801(c) and 812 of the Merit Rules and Regulations): A non-occupational medical condition of an employee that will require the prolonged absence of the employee from duty and which will result in a substantial loss of income to the employee because the employee will have exhausted all paid leave available apart from the Voluntary Employee Leave sharing Program. Non-disability postpartum leave as referenced in Merit Rule 801(b) shall not be considered a catastrophic illness or injury under this Policy. ARTICLE XIII - ADDITIONAL COMPENSATION FOR BC CLASSIFICATIONS POTENTIAL BATTALION CHIEF EXTRA SHIFT COVERAGE Battalion Chiefs who back fill for an operations shift (or shifts) for a 56-hour work week Battalion Chief will be provided additional compensation for the extra shift coverage, provided that the extra shift requires working hours beyond regularly scheduled hours. Extra Shift Coverage Eligibility • Extra shift coverage pay applies to the level of Battalion Chief only and is not intended as compensation for Battalion Chiefs to backfill a lower classification. • A minimum of eight (8) continuous hours of the extra shift coverage must be worked to be eligible for compensation. After the minimum of eight (8) continuous hours is met, the Battalion Chief will be paid for the entire shift worked. Extra Shift Coverage Pay Rate • Compensation for the extra shift coverage by a 56-hour or 40-hour Battalion Chief will be paid at one and one-half times (1.5x) the 56-hour straight-time rate of the Battalion Chief performing the back fill. First Rights of Refusal • Battalion Chiefs shall be provided first rights of refusal for the extra shift coverage. If no Battalion Chiefs are available to back fill the extra coverage shift, the shift will be assigned to fire personnel at a lower classification in accordance with the standard protocols of the department. Extra Shift Coverage Pay Not PERSable • All pay under this extra shift coverage provision will be reported to CALPERS by the City of Palo Alto in a manner that excludes such pay from PERSable income. As such, the extra shift coverage pay is not subject to CALPERS contributions by the employer or employee and is not included as a factor in the employee’s final compensation for pension purposes. Fire Chief Discretion • In accordance with management rights provisions, the Fire Chief maintains discretion to approve, modify or disapprove extra shift coverage assignments. 15 FLSA Exempt Status • Nothing in the extra shift coverage provision is intended to impact the FLSA-exempt status of Battalion Chiefs. Battalion Chiefs remain FLSA-exempt and are therefore not eligible for overtime pay or compensatory time. ARTICLE XIV - EXCESS BENEFIT REIMBURSEMENT Section 1. The benefit provided by this Article is designed to meet the requirements of Section 125 of the Internal Revenue Code. Every calendar year, each employee will be provided with $2,500 that they can designate among the following options: a) Medical Flexible Spending Account (Medical FSA). Provides reimbursement for excess medical/dental/vision, or expenses that are incurred by employees and their dependents which are not covered or reimbursed by any other source, including existing City-sponsored plans. This includes prescribed medications and co-payments as specified in applicable federal law. b) Dependent Care Flexible Spending Account (Dependent Care FSA). Provides reimbursement for qualified dependent care expenses under the City's Dependent Care Assistance Program (DCAP), subject to the limits specified in applicable federal law. 1) Dependent care expenses not reimbursed under this section may be eligible for reimbursement under the City Voluntary Dependent Care FSA program. However, the maximum amount reimbursed under the Voluntary Dependent Care FSA program will be reduced by any amount reimbursed under the Excess Benefit Plan. c) Professional Development Employees may use these funds for professional development purposes on a taxable basis to the extent such expenses (e.g., job-related training and education, seminars, training manuals, etc.) are not paid or reimbursed under any other plan of the City. d) Deferred Compensation. Provides a one-time contribution to the employee’s City-sponsored I.R.C. § 457 Deferred Compensation plan with either ICMA-RE or Mass Mutual, subject to the contribution limitations of applicable law. Amounts designated by employees to either the Medical FSA, Dependent Care FSA, or Professional Development options are done so on a “use –it-or-lose-it” basis. This means that any amounts designated and not used by the end of the calendar year (or end of the extended grace period for the medical FSA) will be forfeited by the employee and returned to the plan. Specified amounts under this benefit will be applied on a pro-rata basis for employees who are part-time or who are in FCA pay status for less than the full fiscal year. Such benefits 16 will be pro-rated in the first year of employment (based on hire date) but will not be pro-rated upon separation of employment. ARTICLE XV - PHYSICAL EXAMS Physical fitness medical examinations for all represented employees will be provided in accordance with the Fire Department Physical Fitness Program General Order. ARTICLE XVI - BENEFIT PROGRAMS Section 1. Health Plan - ACTIVE EMPLOYEES: During the term of this contract, the maximum City contribution towards medical premiums for eligible full time employees per employee category shall be the following for any plan: Medical Premium Category PEMHCA Contribution* Total Maximum City Contribution (inclusive of PEMHCA contribution) effective July 1, 2025 Employee Only $151.00 $943 Employee plus one $151.00 $1885 Employee Family $151.00 $2444 Effective January 1, 2027, the City will increase its maximum contribution to medical premiums by the following percentages: • Employee only: 2% • Employee plus one: 3% • Employee family: 5% Medical Premium Category PEMHCA Contribution* Total Maximum City Contribution (inclusive of PEMHCA contribution) effective January 1, 2027 Employee Only $151.00 $962 Employee plus one $151.00 $1942 Employee Family $151.00 $2566 17 Effective January 1, 2028, the City will increase its maximum contribution to medical premiums by 4%. Medical Premium Category PEMHCA Contribution* Total Maximum City Contribution (inclusive of PEMHCA contribution) effective January 1, 2028 Employee Only $151.00 $1000 Employee plus one $151.00 $2020 Employee Family $151.00 $2669 *Any increases to the PEMHCA minimum during the term of this contract will result in a corresponding decrease to the amount of the additional City contribution, so that the total maximum City contribution never exceeds the Total Maximum City Contribution described above. The City’s total maximum contribution towards medical premiums for eligible part time employees shall be prorated based on the number of hours per week the part-time employee is assigned to work. If the State of California or federal government requires the City to participate and contribute toward coverage under any medical plan outside of PEMHCA including but not limited to the Affordable Care Act, the City’s total liability for enrolled employees and retirees and their eligible family members shall not exceed what the City would have paid toward PEMHCA coverage in the absence of such state or federal plan. The parties will meet and confer over the impact of such change on matters within the scope of representation before implementing any change. a. Active employee domestic partners whose domestic partnership is registered with the State of California may add their domestic partner as a dependent to their elected health plan coverage if the domestic partner is registered with the Secretary of State. Active employee domestic partners whose domestic partnership is not registered with the State but who meet the requirements of the City of Palo Alto Declaration of Domestic Partnership, and are registered with the Human Resources Department, will be eligible for reimbursement of the actual monthly premium cost of an individual health plan, not to exceed 90% of the average monthly premium cost of individual coverage under the PEMHCA health plans in 2016. Effective with the first pay period including January 1, 2017, a stipend of two hundred eighty four ($284) per month toward the cost of an individual health plan will be provided. Evidence of premium payment will be required with request for reimbursement. Flexible Compensaiton: Effective the first pay period following Council adoption of the MOU, in lieu of additional increases to the City’s medical premiums, hourly wages for all bargaining unit classifications will be increased by $100 per month ($1,200 per year). Employees can utilize this cash payment for any purpose, including to cover health insurance premiums or contribute to flexible spending accounts/457 deferred compensation plans. Effective the first full pay period of 18 January 2024, hourly wages for all bargaining unit classifications will be increased by an additional $100 per month. Section 2. Dual Coverage. When a City employee is married to another City employee each shall be covered only once (as an individual or as a spouse of the other City employee, but not both) and dependent children, if any, shall be covered only by one spouse. Section 3 Dental Benefits a. Level of Benefits: The City will maintain the present level of benefits on the City- sponsored dental program. The City provides a base dental plan for all eligible employees and dependents. Eligible employees may enroll in a dental buy-up plan. b. Premiums: The City shall pay all premium payments on behalf of employees and dependents who are eligible and enrolled for coverage under the base dental plan. Section 4. Vision Care. a) Level of Benefits: The City provides a base vision plan for all eligible employees and dependents. Eligible employees may enroll in a vision buy-up plan. b) Premiums: The City shall pay all premium payments on behalf of employees and dependents who are eligible and enrolled in coverage under the base vision plan. Employees are responsible for premium payments required to enroll in the buy-up vision plan. Section 5. Employee Assistance Plan. The Employee Assistance Plan (EAP) provides employees with confidential personal counseling, work and family related issues, eldercare, substance abuse, etc. In addition, EAP programs provide a valuable tool for supervisors to refer troubled employees to professional outside help. This service staffed by experienced clinicians is available to employees and their dependents by calling a toll-free phone line 24 hours a day, seven days a week. Guidance is also available online. Section 6. Alternative Medical Benefit Program. If a regular employee and/or the employee’s dependent(s) are eligible for and elect to receive medical insurance through any other non-City of Palo Alto employer sponsored or association- sponsored group medical plan, the employee may choose to waive his/her right to the City of Palo Alto’s medical plan insurance and receive cash payments in the amount of two hundred eighty-four dollars ($284) for each month City coverage is waived. 19 ARTICLE XVII – RETIREMENT MEDICAL PLAN Section 1. Retiree medical coverage for Unit employees hired before January 1, 2004: Monthly City-paid premium contributions for a retiree-selected PEMHCA optional plan will be made in accordance with the Public Employees' Medical and Hospital Care Act Resolution for employees that retire on or before December 31, 2006. Effective January 1, 2007 for an employee retiring on or after that date the City will pay up to the monthly medical premium for the 2nd most expensive plan offered to FCA employees among the existing array of plans. However, the City contribution for an employee hired before January 1, 2004 who retires on or after December 1, 2011 shall be the same contribution amount it makes for active City employees. Section 2. 20-Year Vesting for Retiree Medical Coverage for Unit Employees Hired On Or After January 1, 2004: The retiree health benefit provided in California Government Code section 22893 shall apply to all employees hired on or after January 1, 2004. Under this law, an employee is eligible to receive Fifty (50) percent of benefit after ten (10) years; each additional service credit year after Ten (10) years will increase employer credit by Five (5%) percent until Twenty (20) years is reached at which time employee is eligible for One Hundred (100%) percent of annuitant-only coverage and Ninety (90%) percent of the additional premium for dependents. ARTICLE XIII – BASIC LIFE INSURANCE The City shall provide a basic life and AD & D insurance plan in an amount equal to the employee's annual base compensation (rounded to the next highest $1,000). ARTICLE XIX– SUPPLEMENTAL LIFE INSURANCE An employee may, at his/her cost, purchase additional life insurance and additional AD&D coverage. The total amount of life insurance available to the employee is $325,000 and the total amount of AD&D coverage available is $325,000. ARTICLE XX– LONG TERM DISABILITY INSURANCE Employees may elect to enroll in the City’s Long Term Disability Insurance program. 20 ARTICLE XXI - EFFECTIVE DATE OF BENEFIT COVERAGE FOR NEW EMPLOYEES For newly-hired regular employees coverage begins on the first day of the month following date of hire for the health plan, dental plan, vision care plan, life insurance and long term disability plans if these benefits are elected. ARTICLE XXII-WORKERS’ COMPENSATION Persons on disability will be required to appear or otherwise report at regular two-week intervals to the Fire Chief or designate to discuss his/her status and ability to return to full or restricted work status. This section is not meant to unreasonably restrict employee's activities so long as such activities are cleared by the treating physician, treating program or alternative treatment program is maintained and employee is available for full or restricted duty as soon as medical clearance can be received. ARTICLE XXIII- RETIREMENT PENSION PLANS Section 1. Safety PERS Retirement Formula. a. Safety Pension Group A: 3%@50 Safety Retirement: The City will continue the present benefits under the Public Employees' Retirement System (PERS) "3 percent at 50 (3%@50)" formula for employees hired before the effective date of the “3 percent at Section 2. 55” (3%@55) formula for new hires as described herein. The final year compensation for employees hired under the 3% at 50 formula will continue to be “Single highest year” or the highest average annual compensation earnable by the member during one (1) year of employment immediately preceding retirement or the one-year period otherwise designated by the member (Government Code section 20042). b. Safety Pension Group B: 3%@55 Safety Retirement: Effective December 7, 2012, the City amended its contract with CalPERS to provide employees hired on or after that date who are not “new members” of CalPERS, as defined in the Public Employees’ Pension Reform Act (after referred to as “classic” CalPERS members) with the CalPERS retirement formula three percent of final salary at age 55 (“3%@55”), with the final salary determination for such employees of “3 highest consecutive years” based on the highest average annual compensation earnable by the member during three (3) consecutive years of employment immediately preceding retirement or the three-year period otherwise designated by the member (Government Code section 20037). c. Safety Pension Group C: 2.7% at Age 57 Safety Retirement: Employees hired on or after January 1, 2013 meeting the definition of “new member” under the Public Employees’ Pension Reform Act (Gov’t. Code s. 7522 et seq.) shall be subject to all of the provisions of that law, including but not limited to the two point seven percent at age 57 (2.7%@57) retirement formula with a three year final compensation period. d. Safety PERS Member Contribution. 21 1. Employees in all classifications in Pension Groups A and B described above shall pay a total of 9% towards the PERS member contributions by payroll deduction. 2. Employees in all represented classes in Pension Group C described above shall pay the employee contribution required by the Public Employees’ Pension Reform Act, currently calculated at fifty percent (50%) of the normal cost. 3. When employees pay their PERS Member Contribution pursuant to section 2a and 2b above, the City will provide for member contributions to be made as allowed under provisions of IRS Code Section 414(h)(2). e. Additional Employee PERS contributions: In addition to the PERS member contribution as required under section 2d 1, 2 and 3 above, all employees in pension groups a, b and c shall contribute the additional following contributions: 1. All employees regardless of pension formula in this unit shall, in addition to the Member Contribution required, shall pay an additional 3% towards the Employer share of Pension regardless of pension formula through a CalPERS 20516 contract amendment. 2. Effective the first full pay period following July 1, 2020, all employees regardless of pension formula in this unit shall, in addition to the Member Contribution required, pay an additional 1% towards the Employer share of Pension for a total of 4%. Section 2. Status Determination. An employee’s membership in and designation as Safety for CalPERS pension plan purposes shall be determined based on applicable California law. Section 3. Employer Contributions to 457 Plan Effective the later of July 1, 2025 or the adoption of the MOA, the City will contribute $300 monthly to the 457 plan of each represented employee. Effective July 1, 2026 the City will contribute $600 monthly to the 457 plan of each represented employee. Eligibility: 1. Employees must be enrolled in an eligible City sponsored 457 plan 2. Employees who reach the maximum as defined by the IRS will not receive additional contributions 3. Employee must be making PERS contributions 22 ARTICLE XXIV - MISCELLANEOUS EMPLOYMENT-RELATED EXPENSES Section 1. Station House Fund. The Station House Fund per year per shift employee shall be $100.00. Section 2. Non-Food House Items. The City agrees to furnish and maintain each fire station with the following non-food house fund items: TV purchase and repair. Kitchen cooking utensils, small kitchen appliances and other specific items to be determined by mutual agreement of the parties will be purchased from the Station House Fund. Section 3. Per Diem Travel Expenses For City Business. Unless other mutually agreeable arrangements are made, representation unit employees who are required to travel away from the City on City business will receive travel expenses, according to City policies which are currently in effect. Section 4. Parking. Employees in represented classes assigned to Civic Center or adjacent work locations shall be entitled to free parking in the Civic Center Garage, or a commute incentive which will be subject to meet and confer. Employees hired after July 1, 1994 may initially receive a parking permit for another downtown lot subject to availability of space at the Civic Center garage. Light duty employees assigned to the Civic Center will receive Civic Center parking temporary permits for the duration of the light duty assignment. Section 5. Uniform. The value of the purchase, rental and/or maintenance of the required uniforms shall be reported as special compensation to the extent legally permissible, pursuant to Title 2 CCR, Section 571(a)(5) as Uniform Allowance. Based upon existing uniform standards and the City’s cost experience, the value of this benefit shall be reported as $15.31 per pay period. The City will supply complete uniforms as described in Fire Department Policy 1031. ARTICLE XXV – WORK ASSIGNMENTS Section 1. Selection of and assignment to Training Battalion Chief (40-hour workweek) shall be based upon seniority, except where operational needs are determined by the Fire Chief or designee, the Fire Chief or designee reserves the right to assign personnel based on Fire Department needs. For purposes of this article, seniority shall be calculated from date of entry into the Battalion Chief classification. Section 2. Working out of Classification. Where employees, on a temporary basis, are assigned to perform all significant duties of a higher classification, for a period of one week or more, the Fire Chief may authorize payment within the range of the higher classification for the specified time frame. Working above classification will not exceed six months, unless renewed at the discretion of the Fire Chief. Working above classification pay is not to exceed 10% more than the employee’s current salary and shall be documented on a Personnel Action Form, with a description of the additional duties in the higher classification to be performed and an end date. Employees assigned to work out of classification will receive out of class pay beginning the first day of the assignment. 23 ARTICLE XXVI - FULL UNDERSTANDING Section 1. The Memorandum of Agreement contains the full and entire understanding of the parties regarding the matters set forth herein. Section 2. Severability. If any of the provision herein contained be rendered or declared invalid by reason of any State or Federal legislation, or by ruling of any court of competent jurisdiction, such invalidation of such part or portion of this Memorandum of Agreement shall not invalidate the remaining portions hereof, and they shall remain in full force and effect, insofar as such remaining portions are severable. Section 3. It is the intent of the parties that ordinances, resolutions, rules and regulations enacted pursuant to this Memorandum of Agreement be administered and observed in good faith. Section 4. Nothing in this Memorandum of Agreement shall preclude the parties from mutually agreeing to meet and confer on any subject with the scope of representation during the term of this agreement. Section 5. Merit System Rules and Regulations During the term of this Memorandum of Agreement, Management may propose certain changes in the City Merit System Rules and Regulations. With regard to such changes which pertain to the representation unit, the parties agree to review, and upon request, meet and confer regarding the changes. ARTICLE XXVII - DURATION This Memorandum of Agreement shall become effective upon signing by the parties hereto, except that those provisions herein that have specific effective dates shall take effect on those dates regardless of signing date, once this Memorandum of Agreement is signed by the parties hereto. This Memorandum of Agreement shall expire June 30, 2028. ARTICLE XXVIII- 48/96 WORK SCHEDULE The regular schedule for 56 hour personnel will be under a “48/96” model. With the adoption of this “48/96” schedule the parties agreed to revise Fire department policy 205.6 typical workday and 1009.8.1 reporting for Duty-Holidays. 24 EXECUTED: FOR: FOR: FIRE CHIEFS ASSOCIATION CITY OF PALO ALTO APPENDIX A [Salary Schedule Attachment B] Memorandum of Agreement City of Palo Alto and Palo Alto Fire Chiefs’ Association July 1, 2025 – June 30, 2028 1 MEMORANDUM OF AGREEMENT Table of Contents PREAMBLE ____________________________________________________________________________________ 4 ARTICLE I - RECOGNITION _______________________________________________________________________ 4 SECTION 1. ___________________________________________________________________________________ 4 ARTICLE II - NO DISCRIMINATION _________________________________________________________________ 4 SECTION 1. ___________________________________________________________________________________ 4 SECTION 2 ___________________________________________________________________________________ 4 ARTICLE III - PAYROLL DEDUCTIONS _______________________________________________________________ 4 SECTION 1 ___________________________________________________________________________________ 4 SECTION 2. CERTIFICATION OF UNION MEMBERSHIP _______________________________________________________ 5 SECTION 3. INDEMNIFICATION ______________________________________________________________________ 5 ARTICLE IV - NO STRIKES ________________________________________________________________________ 5 SECTION 1 ___________________________________________________________________________________ 5 ARTICLE V - SALARY PROVISIONS _________________________________________________________________ 5 SECTION 1. SALARY RANGE ADJUSTMENTS. _____________________________________________________________ 5 SECTION 2. EMT DIFFERENTIAL _____________________________________________________________________ 6 SECTION 3. 40-HOUR WORK WEEK ASSIGNMENT DIFFERENTIAL _______________________________________________ 6 SECTION 4. OUT OF COUNTY STRIKE TEAM PAY. _________________________________________________________ 6 ARTICLE VI – HOLIDAYS _________________________________________________________________________ 7 SECTION 1. NAMED HOLIDAYS. _____________________________________________________________________ 7 SECTION 2. DAY OF REFLECTION _____________________________________________________________________ 7 SECTION 3. 56-HOUR WORK WEEK ASSIGNMENTS. _______________________________________________________ 7 SECTION 4. 40-HOUR WORK WEEK ASSIGNMENTS. _______________________________________________________ 8 ARTICLE VII - VACATION ACCRUAL _________________________________________________________________ 8 SECTION 1. ___________________________________________________________________________________ 8 SECTION 2. 56-HOUR WORKWEEK ASSIGNMENTS ________________________________________________________ 8 SECTION 3. 40-HOUR WORKWEEK ASSIGNMENTS. ________________________________________________________ 8 ARTICLE VIII - VACATION CASH OUT _______________________________________________________________ 9 SECTION 1. LIMITATION ON USE. ____________________________________________________________________ 9 SECTION 2. CASH OUT OPTION. _____________________________________________________________________ 9 ARTICLE IX - MANAGEMENT ANNUAL LEAVE _______________________________________________________ 10 SECTION 1 __________________________________________________________________________________ 10 ARTICLE X - OTHER PAID LEAVES _________________________________________________________________ 10 SECTION 1. CITY MANAGER GRANTED LEAVES __________________________________________________________ 10 SECTION 2. COUNCIL GRANTED LEAVE _______________________________________________________________ 10 SECTION 3. EMPLOYEE'S TIME OFF TO VOTE ___________________________________________________________ 10 SECTION 4. LEAVES OF ABSENCE; DEATH IN IMMEDIATE FAMILY ______________________________________________ 11 2 SECTION 5. JURY DUTY; LEAVE OF ABSENCE ____________________________________________________________ 11 SECTION 6. SUBPOENAS _________________________________________________________________________ 11 ARTICLE XI - OTHER LEAVE PROVISIONS ___________________________________________________________ 12 SECTION 1. DISABILITY. __________________________________________________________________________ 12 SECTION 2. OTHER UNPAID LEAVES. _________________________________________________________________ 12 SECTION 3. ACCRUED VACATION CREDITS. _____________________________________________________________ 12 SECTION 4. APPROVAL OF DEPARTMENT HEAD. _________________________________________________________ 12 SECTION 5. APPROVAL BY CITY MANAGER _____________________________________________________________ 12 SECTION 6. ABSENCE WITHOUT LEAVE. _______________________________________________________________ 12 SECTION 7. LEAVE OF ABSENCE; DEATH OUTSIDE THE IMMEDIATE FAMILY. _______________________________________ 12 SECTION 8. MILITARY LEAVE OF ABSENCE. _____________________________________________________________ 12 ARTICLE XII - VOLUNTARY CATASTROPHIC LEAVE PROGRAM _________________________________________ 12 SECTION 1. __________________________________________________________________________________ 12 SECTION 2. __________________________________________________________________________________ 13 SECTION 3. __________________________________________________________________________________ 13 SECTION 4. __________________________________________________________________________________ 13 SECTION 5. __________________________________________________________________________________ 14 SECTION 6. __________________________________________________________________________________ 14 ARTICLE XIII - ADDITIONAL COMPENSATION FOR BC CLASSIFICATIONS _________________________________ 14 ARTICLE XIV - EXCESS BENEFIT REIMBURSEMENT ___________________________________________________ 15 SECTION 1. __________________________________________________________________________________ 15 ARTICLE XV - PHYSICAL EXAMS __________________________________________________________________ 16 ARTICLE XVI - BENEFIT PROGRAMS _______________________________________________________________ 16 SECTION 1. HEALTH PLAN - ACTIVE EMPLOYEES ______________________________________________________ 16 SECTION 2. DUAL COVERAGE. _____________________________________________________________________ 18 SECTION 3 DENTAL BENEFITS ______________________________________________________________________ 18 SECTION 4. VISION CARE. ________________________________________________________________________ 18 SECTION 5. EMPLOYEE ASSISTANCE PLAN _____________________________________________________________ 19 ARTICLE XVII – RETIREMENT MEDICAL PLAN _______________________________________________________ 19 SECTION 1. RETIREE MEDICAL COVERAGE FOR UNIT EMPLOYEES HIRED BEFORE JANUARY 1, 2004: ______________________ 19 SECTION 2. 20-YEAR VESTING FOR RETIREE MEDICAL COVERAGE FOR UNIT EMPLOYEES HIRED ON OR AFTER JANUARY 1, 2004: _ 19 ARTICLE XIII – BASIC LIFE INSURANCE _____________________________________________________________ 20 ARTICLE XIX– SUPPLEMENTAL LIFE INSURANCE _____________________________________________________ 20 ARTICLE XX– LONG TERM DISABILITY INSURANCE ___________________________________________________ 20 ARTICLE XXI - EFFECTIVE DATE OF BENEFIT COVERAGE FOR NEW EMPLOYEES ____________________________ 20 ARTICLE XXII-WORKERS’ COMPENSATION _________________________________________________________ 20 ARTICLE XXIII- RETIREMENT PENSION PLANS _______________________________________________________ 20 SECTION 1. SAFETY PERS RETIREMENT FORMULA. _______________________________________________________ 20 SECTION 2. STATUS DETERMINATION ________________________________________________________________ 22 SECTION 3. EMPLOYER CONTRIBUTIONS TO 457 PLAN _____________________________________________________ 22 ARTICLE XXIV - MISCELLANEOUS EMPLOYMENT-RELATED EXPENSES ___________________________________ 22 SECTION 1. STATION HOUSE FUND. _________________________________________________________________ 22 3 SECTION 2. NON-FOOD HOUSE ITEMS _______________________________________________________________ 22 SECTION 3. PER DIEM TRAVEL EXPENSES FOR CITY BUSINESS ________________________________________________ 22 SECTION 4. PARKING ___________________________________________________________________________ 22 SECTION 5. UNIFORM. __________________________________________________________________________ 22 ARTICLE XXV – WORK ASSIGNMENTS _____________________________________________________________ 23 SECTION 1. __________________________________________________________________________________ 23 SECTION 2. WORKING OUT OF CLASSIFICATION __________________________________________________________ 23 ARTICLE XXVI - FULL UNDERSTANDING ____________________________________________________________ 23 SECTION 1 __________________________________________________________________________________ 23 SECTION 2. SEVERABILITY. ________________________________________________________________________ 23 SECTION 3. __________________________________________________________________________________ 23 SECTION 4. __________________________________________________________________________________ 23 SECTION 5. __________________________________________________________________________________ 23 ARTICLE XXVII - DURATION _____________________________________________________________________ 24 ARTICLE XXVIII- 48/96 WORK SCHEDULE __________________________________________________________ 24 APPENDIX A__________________________________________________________________________________ 26 4 CITY OF PALO ALTO AND PALO ALTO FIRE CHIEFS’ ASSOCIATION PREAMBLE This Memorandum of Agreement between the City of Palo Alto, hereinafter referred to as the "City", and the Palo Alto Fire Chiefs’ Association, hereinafter referred as the "Association", has been prepared and entered into in accordance with Title I, Division 4, Chapter 10, Sections 3500-3510 of the California Government Code and Chapter 12 of the City of Palo Alto Merit System Rules and Regulations. ARTICLE I - RECOGNITION Section 1. The City recognizes the Association as the exclusive representative of an employee group consisting solely of the classifications of Battalion Chief 56-hour workweek, and Battalion Chief 40-hour workweek who are regularly employed by the City. ARTICLE II - NO DISCRIMINATION Section 1. The Association and the City hereby agree that there shall be no discrimination because of race, color, age, disability, sex, national origin, sexual orientation, political or religious affiliation or any other basis recognized by federal, state or local law under this Agreement. There shall be no discrimination in employment conditions or treatment of employees on the basis of membership or nonmembership in the Association, or participation in the lawful activities of the Association. Section 2. The Association and the City hereby agree to protect the rights of all employees to exercise their free choice to join the Association and to abide by the express provisions of applicable State and local laws. ARTICLE III - PAYROLL DEDUCTIONS Section 1. The City shall deduct Union Association membership dues assessments and insurances authorized by the Union Association. This will be accomplished by payroll deductions from the bi-weekly pay of member employees. The dues deduction must be authorized in writing by the employee on an Union authorization card. The Union Association will be the custodian of records for individual employee membership and dues deduction forms. The Union Association will maintain all authorizations for dues deduction, signed by the individual from whose salary or wages the deduction or reduction is to 5 be made. The City will direct employee requests to cancel or change deductions to the Association. The City shall remit the deducted dues to the Association as soon as possible after deduction. Section 2. Certification of Union Association Membership. The Union Association agrees to provide the City an initial certified list of members and statement that the Association has and will maintain written authorizations signed by the individuals from whose wages the Union Association dues deductions are to be made. From that point forward the Union Association will update the list whenever there are changes. Section 3. Indemnification. The Union Association shall indemnify and hold the City harmless against any liability arising from any claims, demands, or other action relating to this article. The Union Association shall comply with all statutory and legal requirements with respect to this article. ARTICLE IV - NO STRIKES Section 1. The Association, its representatives, or members, shall not engage in or cause, instigate, encourage, sanction, or condone a strike, withholding of services, leave of absence abuse, work stoppage or work slowdown of any kind against the City of Palo Alto or its citizens by employees covered under this Agreement. No employee shall refuse to cross any picket line in the conduct of Fire Department business, nor shall the Association, its representatives or members discriminate in any way toward anyone who refuses to participate in a strike, or any of the job actions cited above. ARTICLE V - SALARY PROVISIONS Section 1. Salary Range Adjustments. The base wage rates of the bargaining unit classifications will be set forth in Appendix A of this MOA. a) General Salary Increase: Effective the first full pay period following the later of July 1, 2025 or the adoption of the MOA, the salary ranges of all represented classifications will be increased by three percent (3.0%). b) Market Adjustment: Effective the first full pay period including following the later of July 1, 2025 or the adoption of the MOA, the salary ranges of all represented classifications will be increased by one and one half percent (1.5%). The 40hr training Battalion Chief position will be increased by an 6 additional half percent (0.5%). receive a market adjustment of ten percent (10.0%) and an equity adjustment of one percent (1.0%) for a total of eleven (11%). c) General Salary Increase: Effective the first full pay period following July 1, 2026 2023, the salary ranges of all represented classifications will be increased by four three percent (4 3.0%). d) Market Adjustment part 2: Effective the first full pay period following January July 1, 2027 2024, the salary ranges of all represented classifications will receive a market adjustment of two percent (2.0%). e) General Salary Increase: Effective the first full pay period following July 1, 2027 2024, the salary ranges of all represented classifications will be increased by four three percent (4 3.0%). f) Total Compensation and Survey Database: Management and the Union have agreed to a compensation survey database structure. Survey Cities include: Alameda, Berkeley, Fremont, Hayward, Menlo Park Fire District, Milpitas, Mountain View, Redwood City, Pleasanton, San Jose, San Mateo, San Ramon Fire District, Santa Clara, Santa Clara County and South San Francisco. Compensation Criteria includes: top step salary, maximum longevity, maximum education, uniform allowance, EMT differential, Hazmat differential, deferred compensation, employee pick up of employer pension costs (Negative EPMC), and maximum City paid benefits (medical, dental, vision, life insurance, LTD, and EAP). The database is intended to provide one source of information concerning how the compensation paid to employees in bargaining unit job classifications compares to that paid by other employers. Section 2. EMT Differential. The former EMT differential of 3.0% was rolled into base pay. This one time conversion to base pay, shall constitute the City’s incentive payment for EMT skills. This conversion was cost neutral to the City. Section 3. 40-hour Work Week Assignment Differential. Employees assigned to a 40-hour workweek schedule will be paid a differential of five percent (5%) of base salary in-lieu of holiday pay differential which 56-hour shift Battalion Chiefs receive. Section 4. Out of County Strike Team Pay. A Battalion Chief sent on out of County strike team duty will receive the following compensation only if the City is reimbursed from the state or federal government for the labor costs incurred by the City. Compensation to the employee will not exceed the rate for which the City is reimbursed by the State of California or other external entity, excluding reimbursements for other labor costs (e.g. workers compensation, administrative expense, etc.). A Battalion Chief on their regular duty shift deployed on an out of County strike team will be 7 eligible for compensation at their normal hourly rate (1.0 hourly rate), assuming a regular 56 hour schedule. A Battalion Chief on non-regular duty shift days deployed on an out of County strike team will be eligible for compensation at a rate of 1.5 of their normal hourly rate. For 40 hour Battalion Chiefs deployed on an out of County strike team, any out of County strike team compensation will be calculated at a 56 hour Battalion Chief Schedule hourly rate. Payment for out of county strike team duty will be calculated based on the number of twenty- four hour shifts worked and prorated for any partial shifts. A Personnel Action Form will be completed in a timely manner to process this payment. The amount of the payment will be calculated in a manner described above. If the City is not reimbursed, no payment is due to the employee. If the City is reimbursed in part, a prorated payment will be calculated based on the reimbursement rate. As outlined above, compensation to the employee will not exceed the rate for which the City is reimbursed by the State of California or other external entity. ARTICLE VI – HOLIDAYS Section 1. Named Holidays. Holiday pay is compensation for employees who are normally required to work on an approved holiday because they work in positions that require scheduling staff without regard to holidays. The following holidays are recognized as municipal holidays for pay purposes., and rRegular, employees shall have these days off with pay, except as otherwise provided in these rules: January 1 Veterans’ Day, November 11 Third Monday in January Thanksgiving Day Third Monday in February Day after Thanksgiving Day Last Monday in May December 25 July 4th Either December 24, or December 31 as provided below First Monday in September Second Monday in October Section 2. Day of Reflection. In addition to the paid holidays listed above, employees shall be excused with pay for one full work shift as a day of reflection (floating holiday) per calendar year, Employees may use the floating holiday on any day mutually agreed by the employee and their supervisor for a Day of Reflection, including: Juneteenth Freedom Day (June 19) or Cesar Chavez/Dolores Huerta Day (March 31). Day of Reflection not used by the end of the calendar year will be deemed forfeited and have no cash value. Section 3. 56-Hour Work Week Assignments. Shift personnel shall receive pay in lieu of taking paid leave for accrued holidays. One hundred sixty one and one half (161.5) hours are 8 paid annually to an employee at a rate of 6.21 hours each pay period. Shift personnel shall receive pay in lieu of taking paid leave for accrued holidays. Such paid hours will be paid 6.21 hours of in lieu of holiday pay each pay period. Hours are prorated and accrued based on hours actually worked. Section 4. 40-Hour Work Week Assignments. Employees assigned to a 40-hour workweek schedule will receive paid holidays in accordance with Sections 517 and 518 of the Merit System Rules and Regulations. ARTICLE VII - VACATION ACCRUAL Section 1. Vacation will be is accrued when an employee is in a pay status and will be is credited on a bi-weekly basis. Such accrual balance and credit may not exceed three times the annual rate of accrual. Accrual rates are by work week assignments as are indicated in Section 1 2 and Section 2 3 below. Section 2. 56-Hour Workweek Assignments. Employees assigned to a 56-hour workweek schedule (24- hour shift) will accrue vacation at the following rates: for continuous service performed in a pay status. a) For employees completing having completed less than four (4) years continuous service, the accrual rate shall be five (5) duty shifts per year. b) For employees completing having completed four (4), but less than nine (9) years continuous service, the accrual rate shall be eight (8) duty shifts per year. c) For employees completing having completed nine (9), but less than fourteen (14) years continuous service, the accrual rate shall be ten (10) duty shifts per year. d) For employees completing having completed fourteen (14), but less than nineteen (19) years continuous service, the accrual rate shall be eleven (11) duty shifts per year. e) For employees completing having completed nineteen (19) or more years continuous service, the accrual rate shall be twelve (12) duty shifts per year. Section 3. 40-Hour Workweek Assignments. Personnel assigned to a 40-hour workweek schedule will accrue vacation at the following rates: for continuous service performed in a pay status. a) For employees completing having completed less than four (4) years continuous service, the accrual rate shall be eighty (80) hours per year. b) For employees completing having completed four (4), but less than nine (9) years continuous service, the accrual rate shall be one-hundred twenty (120) hours per year. 9 c) For employees completing having completed nine (9), but less than fourteen (14) years continuous service, the accrual rate shall be one-hundred sixty (160) hours per year. d) For employees completing having completed fourteen (14), but less than nineteen (19) years continuous service, the accrual rate shall be one-hundred eighty (180) hours vacation leave per year. e) For employees completing having completed nineteen (19) or more years continuous service, the accrual rate shall be two- hundred (200) hours vacation leave per year. ARTICLE VIII - VACATION CASH OUT Section 1. Limitation on Use. Employees may not use more than three times their annual rate of accrual in any calendar year period provided, however, that the Chief may grant exceptions to this limitation. Section 2. Cash out Option. a) Once each calendar year, employees are eligible to cash out vacation accrual balances in excess of 80 hours. An employee may cash out a minimum of eight (8) hours to a maximum of 120 hours of accrued vacation provided employee has taken 80 vacation hours in the previous 12 months and has followed the election procedures set forth in this section. b) Employee must elect the number of vacation hours they will cash-out during the next calendar year, up to the maximum of 120 hours. For the 2012 calendar vacation year, employees will make their election for vacation hours to cash out no later than November 1, 2012. The election will apply only to vacation hours that are accrued in the next calendar year and that are eligible for cash-out. c) The election to cash-out vacation hours in each designated year will be irrevocable. This means that employees who elect to cash-out vacation hours must cash-out the number of accrued hours pre-designates on the election form. d) Employees who do not elect a cash-out amount by November of the prior calendar year will be deemed to have waived the right to cash out any leave in the following tax year and will not be eligible to cash-out vacation hours in the next tax year. e) Employees who elect cash-out amount may request a cash-out at any time in the designated tax year by submitting a cash-out form to payroll. Payroll will complete the cash-out form upon request, provided the requested cash-out amount has accrued and is 10 consistent with the amount the employee pre-designated. If the full amount of hours designated for cash-out is not available at the time of cash-out, the maximum available will be paid. For employees who have not requested cash-out of the elected amount by November 1 of year, Payroll will automatically cash- out the elected amount in a paycheck issued on or after the payroll date including November 1. ARTICLE IX - MANAGEMENT ANNUAL LEAVE Section 1. Forty (40) hour and fifty-six (56) hour workweek non-shift employees not eligible for overtime shall be credited at the beginning of each calendar year with eighty (80) hours of annual leave. Fifty-six (56) hour shift employees shall be credited (one hundred and twelve (112) hours of annual leave. for 56- hour assignments) which Such leave may be taken as paid time off, added to vacation accrual (subject to vacation accrual limitations), taken as cash, or taken as deferred compensation. Entitlement under this provision will be reduced on a prorated basis for part-time status, or according to the number of months in paid status during the calendar year. Unused balances as of At the end of the calendar year, unused management annual leave will be paid in cash, unless a different option as indicated above is elected by the employee. The Management Annual Leave accrual will be changed to an annual accrual rather than fiscal year. Effective July 1, 2012, employees will be credited with forty (40) hours of management annual leave to be used by December 31, 2012 or automatically will be cashed out. Effective January 1, 2012, and every January 1 thereafter, employees will be credited with eighty (80) hours of management annual leave (one hundred and twelve (112) for 56- hour assignments) to be used by December 31st or automatically will be cashed out. ARTICLE X - OTHER PAID LEAVES Section 1. City Manager Granted Leaves. The City Manager may grant a regular employee under his control a leave of absence with pay for a period not exceeding thirty calendar days for reasons he deems adequate and in the best interest of the City. Section 2. Council Granted Leave. The City Council may grant a regular employee a leave of absence with pay for a period not to exceed one year for reasons the Council considers adequate and in the best interest of the City. Section 3. Employee's Time Off to Vote. Time off with pay to vote at any general or direct 11 primary election shall be granted as provided in the State of California Elections Code, and notice that an employee desires such time off shall be given in accordance with the provisions of said Code. Section 4. Leaves of Absence; Death in Immediate Family. Leave of absence with pay of one shift for 56-hour shift employees with provision for approval of one additional shift for travel outside the area may be granted an employee by the Chief in the event of death in the employee's immediate family, which is defined for purposes of this section as: wife husband son son-in-law daughter daughter-in-law father mother brother brother-in-law sister sister-in-law mother-in-law father-in-law step-father step-mother step-sister step-brother grandfather grandfather-in-law grandmother grandmother-in-law uncle aunt niece nephew registered domestic partner close relative residing in the household of the employee 56 hour shift employees may receive one shift with provision for approval of one additional shift for travel outside the area. Such leave shall be at full pay and shall not be charged against the employee's accrued vacation or sick leave. Shift employees may supplement paid bereavement leave with accrued leave (including vacation or sick leave) or unpaid leave to reach 48 hours of consecutive time off per incident of bereavement. Requests for leave in excess of two shifts shall be subject to the approval of the City Manager. Employees assigned to a 40-hour work week are eligible for leave of absence may be granted by the Chief with pay for three (3) days of leave with pay in the event of death in the employee’s immediate family which is defined above. Non-shift employees may supplement paid bereavement leave with accrued leave (including vacation or sick leave) or unpaid leave to reach a total of five (5) workdays of time off per incident of bereavement. Section 5. Jury Duty; Leave of Absence. Employees required to report for jury duty shall be granted a leave of absence with pay from their assigned duties until released by the court, provided the employee remits to the City all fees received for such duties other than mileage or subsistence allowances within thirty days from the termination of his or her jury service. Section 6. Subpoenas. Employees required to answer subpoenas as a witness for the City of Palo Alto or for a plaintiff where the City of Palo Alto is a defendant shall not lose pay or benefits for work time lost to answer depositions or to appear in court. Section 7. Personal Business. Employees may use up to thirty (30) hours of sick leave per calendar year for personal business. The scheduling of such leave is subject to the approval of 12 the appropriate level of management. ARTICLE XI - OTHER LEAVE PROVISIONS Section 1. Disability. Leaves of absence without pay may be granted in cases of disability not covered by sick leave. Pregnancy will be considered as any other disability. Leaves of absence for disability are subject to physician's verification including diagnosis and medical work restriction. Section 2. Other Unpaid Leaves. Leaves of absence without pay may be granted in cases of personal emergency or when such absences would not be contrary to the best interest of the City. Requests for leaves without pay shall not be unreasonably denied. Approval of leave without pay must be in writing to be effective. Non-disability prenatal and/or postpartum leave is available under this provision, but such leave shall not begin more than six months prenatal nor extend more than six months postpartum. Section 3. Accrued Vacation Credits. During unpaid leaves of absence for disability or other reasons, the employee may elect to use accrued vacation credits. Requests for leaves without pay shall not be unreasonably denied. In order to avoid misunderstandings, all leaves without pay must be in writing to be effective. Section 4. Approval of Department Head. Leave of absence without pay for one week or less may be granted by the department head, depending on the merit of the individual case. Section 5. Approval by City Manager. Leave of absence without pay in excess of one week's duration may be granted by the City Manager on the merit of the case, but such leave shall not exceed twelve (12) months' duration. Section 6. Absence Without Leave. Unauthorized leave of absence shall be considered to be without pay, and reductions in the employee's pay shall be made accordingly. Unauthorized leave of absence may result in discipline, including termination of employment. Section 7. Leave of Absence; Death Outside the Immediate Family. Leave without pay may be granted a regular employee by his/her their department head in the event of a death outside to family members other than one of the immediate family, such leave to be granted in accordance with Section 2 and Section 4. Section 8. Military Leave of Absence. State Applicable law shall govern the granting of military leaves of absence and the rights of employees returning from such absence. ARTICLE XII - VOLUNTARY CATASTROPHIC LEAVE PROGRAM Section 1. The City of Palo Alto has established a Firefighter Voluntary Leave Program to 13 provide FCA employees the opportunity to donate their accrued vacation time to assist fellow members of FCA either due to: (a) an employee’s own verifiable non-industrial catastrophic illness or injury (as defined herein) or (b) in order to care for a member of the employee’s immediate family (spouse, child, parent or registered domestic partner suffering from a verifiable catastrophic illness or injury) and have exhausted or will presently exhaust all of their paid leave. Section 2. In order to be eligible to receive donated leave, an employee must have a catastrophic illness or injury or an employee’s immediate family member must have a catastrophic illness or injury that requires the employee to provide full-time care for this family member. Care will be taken to emphasize the voluntary nature of the plan and to insure confidentiality of employee participants and medical conditions (where applicable). Section 3. A Firefighter Voluntary Leave Sharing Program has been established to accept donations of vacation in accordance with the Program’s guidelines. All donations shall be: a) Voluntary b) Irrevocable c) Confidential, unless disclosure is required by law d) In whole hour increments of at least four (4) hours, with the hours donated being converted to donee hours based on the donee’s salary rate (so that there will be no cost to the City due to salary differential). e) The employee shall be required to exhaust all other types of leave to request donated leave f) It is understood that employees seeking or receiving leave under this program will apply for long- term disability benefits for which they may be eligible g) Where any of the period during which an employee receives donated leave is designated as family leave under the California Family Rights Act (CFRA/Family Medical Leave Act (FMLA), the employee will be eligible for continuation of medical and other available benefits during that the family leave period (for up to 12 weeks), in accordance with the requirements of those laws. If the employee receiving donated leave is not eligible for CFRA/FMLA benefit continuation, or after the employee has exhausted the available CFRA/FMLA leave period, the employee will need to pay the premiums for continued medical and other available benefits if the employee chooses to continue such coverage through the City h) If the donation request is based on the need for an employee to care for an immediate family member, as defined above, the family member must require full-time care by the employee. Certification of this requirement by a health care professional is required i) The maximum donated time a donee may receive is 12 months (if available). j) Applications to donate leave or receive leave under this Program are made to the Human Resources Department k) The tax treatment of donation or receipt of vacation under this section is governed by the IRS and not the City. Section 4. FCA members interested in donating leave or in applying to receive donated leave shall complete forms provided by the Human Resources Department. If an applicant for leave is found 14 to meet the criteria set forth herein, Human Resources will determine the availability of and (as applicable) allocation of donated paid leave. Payroll will be notified in writing of the number of hours to be deducted from each donating employee’s vacation balance and transferred to the donee employee(s). Section 5. The City reserves the right to modify or terminate this program at any time. Section 6. Catastrophic Illness or Injury (also referred to as “medical emergency” in Revenue Ruling 90-29 and Sections 801(c) and 812 of the Merit Rules and Regulations): A non-occupational medical condition of an employee that will require the prolonged absence of the employee from duty and which will result in a substantial loss of income to the employee because the employee will have exhausted all paid leave available apart from the Voluntary Employee Leave sharing Program. Non-disability postpartum leave as referenced in Merit Rule 801(b) shall not be considered a catastrophic illness or injury under this Policy. ARTICLE XIII - ADDITIONAL COMPENSATION FOR BC CLASSIFICATIONS POTENTIAL BATTALION CHIEF EXTRA SHIFT COVERAGE Battalion Chiefs who back fill for an operations shift (or shifts) for a 56-hour work week Battalion Chief will be provided additional compensation for the extra shift coverage, provided that the extra shift requires working hours beyond regularly scheduled hours. Extra Shift Coverage Eligibility • Extra shift coverage pay applies to the level of Battalion Chief only and is not intended as compensation for Battalion Chiefs to backfill a lower classification. • A minimum of eight (8) continuous hours of the extra shift coverage must be worked to be eligible for compensation. After the minimum of eight (8) continuous hours is met, the Battalion Chief will be paid for the entire shift worked. Extra Shift Coverage Pay Rate • Compensation for the extra shift coverage by a 56-hour or 40-hour Battalion Chief will be paid at one and one-half times (1.5x) the 56-hour straight-time rate of the Battalion Chief performing the back fill. First Rights of Refusal • Battalion Chiefs shall be provided first rights of refusal for the extra shift coverage. If no Battalion Chiefs are available to back fill the extra coverage shift, the shift will be assigned to fire personnel at a lower classification in accordance with the standard protocols of the department. Extra Shift Coverage Pay Not PERSable • All pay under this extra shift coverage provision will be reported to CALPERS by the City of Palo Alto in a manner that excludes such pay from PERSable income. As such, the extra shift coverage pay is not subject to CALPERS contributions by the 15 employer or employee and is not included as a factor in the employee’s final compensation for pension purposes. Fire Chief Discretion • In accordance with management rights provisions, the Fire Chief maintains discretion to approve, modify or disapprove extra shift coverage assignments. FLSA Exempt Status • Nothing in the extra shift coverage provision is intended to impact the FLSA-exempt status of Battalion Chiefs. Battalion Chiefs remain FLSA-exempt and are therefore not eligible for overtime pay or compensatory time. ARTICLE XIV - EXCESS BENEFIT REIMBURSEMENT Section 1. The benefit provided by this Article is designed to meet the requirements of Section 125 of the Internal Revenue Code. Every calendar year, each employee will be provided with $2,500 that they can designate among the following options: a) Medical Flexible Spending Account (Medical FSA). Provides reimbursement for excess medical/dental/vision, or expenses that are incurred by employees and their dependents which are not covered or reimbursed by any other source, including existing City-sponsored plans. This includes prescribed medications and co-payments as specified in applicable federal law. b) Dependent Care Flexible Spending Account (Dependent Care FSA). Provides reimbursement for qualified dependent care expenses under the City's Dependent Care Assistance Program (DCAP), subject to the limits specified in applicable federal law. 1) Dependent care expenses not reimbursed under this section may be eligible for reimbursement under the City Voluntary Dependent Care FSA program. However, the maximum amount reimbursed under the Voluntary Dependent Care FSA program will be reduced by any amount reimbursed under the Excess Benefit Plan. c) Professional Development Employees may use these funds for professional development purposes on a taxable basis to the extent such expenses (e.g., job-related training and education, seminars, training manuals, etc.) are not paid or reimbursed under any other plan of the City. d) Deferred Compensation. Provides a one-time contribution to the employee’s City-sponsored I.R.C. § 457 Deferred Compensation plan with either ICMA-RE or Mass Mutual, subject to the contribution limitations of applicable law. Amounts designated by employees to either the Medical FSA, Dependent Care FSA, or 16 Professional Development options are done so on a “use –it-or-lose-it” basis. This means that any amounts designated and not used by the end of the calendar year (or end of the extended grace period for the medical FSA) will be forfeited by the employee and returned to the plan. Specified amounts under this benefit will be applied on a pro-rata basis for employees who are part-time or who are in FCA pay status for less than the full fiscal year. Such benefits will be pro-rated in the first year of employment (based on hire date) but will not be pro- rated upon separation of employment. ARTICLE XV - PHYSICAL EXAMS Physical fitness medical examinations for all represented employees will be provided in accordance with the Fire Department Physical Fitness Program General Order. ARTICLE XVI - BENEFIT PROGRAMS Section 1. Health Plan - ACTIVE EMPLOYEES: During the term of this contract, the maximum City contribution towards medical premiums for eligible full time employees per employee category shall be up to a maximum of the following for any plan: Medical Premium Category PEMHCA Contribution* Total Maximum City Contribution (inclusive of PEMHCA contribution) effective January July 1, 2025 2023 Employee Only $151.00 $943 871 Employee plus one $151.00 $1885 1,742 Employee Family $151.00 $2444 2,260 Effective January 1, 2027, the City will increase its maximum contribution to medical premiums by the following percentages: • Employee only: 2% • Employee plus one: 3% • Employee family: 5% 17 Medical Premium Category PEMHCA Contribution* Total Maximum City Contribution (inclusive of PEMHCA contribution) effective January 1, 2027 Employee Only $151.00 $962 Employee plus one $151.00 $1942 Employee Family $151.00 $2566 Effective January 1, 2028, the City will increase its maximum contribution to medical premiums by 4%. Medical Premium Category PEMHCA Contribution* Total Maximum City Contribution (inclusive of PEMHCA contribution) effective January 1, 2028 Employee Only $151.00 $1000 Employee plus one $151.00 $2020 Employee Family $151.00 $2669 The City’s total maximum contribution towards medical premiums for eligible part time employees shall be prorated based on the number of hours per week the part-time employee is assigned to work. *Any increases to the PEMHCA minimum during the term of this contract will result in a corresponding decrease to the amount of the additional City contribution, so that the total maximum City contribution never exceeds the Total Maximum City Contribution described above. If the State of California or federal government requires the City to participate and contribute toward coverage under any medical plan outside of PEMHCA including but not limited to the Affordable Care Act, the City’s total liability for enrolled employees and retirees and their eligible family members shall not exceed what the City would have paid toward PEMHCA coverage in the absence of such state or federal plan. The parties will meet and confer over the impact of such change on matters within the scope of representation before implementing any change. a. Active employee domestic partners whose domestic partnership is registered with the State of California may add their domestic partner as a dependent to their elected health plan coverage if the domestic partner is registered with the Secretary of State. Active employee domestic partners whose domestic partnership is not registered with the State but who meet the requirements of the City of Palo Alto Declaration of Domestic Partnership, and are registered with the Human Resources Department, will be eligible for reimbursement of the actual monthly premium cost of an individual health plan, not to exceed 90% of the average monthly premium cost of individual coverage under the 18 PEMHCA health plans in 2016. Effective with the first pay period including January 1, 2017, a stipend of two hundred eighty four ($284) per month toward the cost of an individual health plan will be provided. Evidence of premium payment will be required with request for reimbursement. Flexible Compensaiton: Effective the first pay period following Council adoption of the MOU, in lieu of additional increases to the City’s medical premiums, hourly wages for all bargaining unit classifications will be increased by $100 per month ($1,200 per year). Employees can utilize this cash payment for any purpose, including to cover health insurance premiums or contribute to flexible spending accounts/457 deferred compensation plans. Effective the first full pay period of January 2024, hourly wages for all bargaining unit classifications will be increased by an additional $100 per month. Section 2. Dual Coverage. When a City employee is married to another City employee each shall be covered only once (as an individual or as a spouse of the other City employee, but not both) and dependent children, if any, shall be covered only by one spouse. Section 3 Dental Benefits a. Level of Benefits: The City will maintain the present level of benefits on the City- sponsored dental program. Maximum benefits per calendar year shall be $2,000. The City provides a base dental plan for all eligible employees and dependents. Eligible employees may enroll in a dental buy-up plan. b. Premiums: The City shall pay all premium payments or equivalent self-insured program charges on behalf of employees and dependents who are eligible and enrolled for coverage under the base existing dental plan. Dependents will include domestic partners, as defined under Article XVII Section 3. c. Orthodontia Benefit Maximum. The City will provide a 50% of reasonable charges, $2,000 lifetime maximum orthodontic benefit for representation unit employees and their dependents. Section 4. Vision Care. The City offers vision care coverage for employees and dependents. Coverage is equivalent to $20 Deductible Plan A under the Vision Service Plan, with monthly premiums paid by the employer. Dependents include domestic partners, as defined under Article XVII Section 1. a) Level of Benefits: The City provides a base vision plan for all eligible employees and dependents. Eligible employees may enroll in a vision buy-up plan. b) Premiums: The City shall pay all premium payments on behalf of employees and dependents who are eligible and enrolled in coverage under the base vision plan. Employees are responsible for premium payments required to enroll in the buy-up vision plan. 19 Section 5. Employee Assistance Plan. The Employee Assistance Plan (EAP) provides employees with confidential personal counseling, work and family related issues, eldercare, substance abuse, etc. In addition, EAP programs provide a valuable tool for supervisors to refer troubled employees to professional outside help. This service staffed by experienced clinicians is available to employees and their dependents by calling a toll-free phone line 24 hours a day, seven days a week. Guidance is also available online. Section 6. Alternative Medical Benefit Program. If a regular employee and/or the employee’s dependent(s) are eligible for and elect to receive medical insurance through any other non-City of Palo Alto employer sponsored or association-sponsored group medical plan, the employee may choose to waive his/her right to the City of Palo Alto’s medical plan insurance and receive cash payments in the amount of two hundred eighty-four dollars ($284) for each month City coverage is waived. ARTICLE XVII – RETIREMENT MEDICAL PLAN Section 1. Retiree medical coverage for Unit employees hired before January 1, 2004: Monthly City-paid premium contributions for a retiree-selected PEMHCA optional plan will be made in accordance with the Public Employees' Medical and Hospital Care Act Resolution for employees that retire on or before December 31, 2006. Effective January 1, 2007 for an employee retiring on or after that date the City will pay up to the monthly medical premium for the 2nd most expensive plan offered to FCA employees among the existing array of plans. However, the City contribution for an employee hired before January 1, 2004 who retires on or after December 1, 2011 shall be the same contribution amount it makes for active City employees. Effective upon ratification and adoption of this Agreement, the City shall provide active unit employees who were hired before January 1, 2004 with a one-time opportunity to opt-in to retiree health benefits provided under California Government Code section 22893. Eligible employees who wish to exercise this option shall inform the Human Resources Department of their election in writing no later than 90 days following the ratification and adoption of this Agreement. Section 2. 20-Year Vesting for Retiree Medical Coverage for Unit Employees Hired On Or After January 1, 2004: The retiree health benefit provided in California Government Code section 22893 shall apply to all employees hired on or after January 1, 2004. Under this law, an employee is eligible to receive Fifty (50) percent of benefit after ten (10) years; each additional service credit year after Ten (10) years will increase employer credit by Five (5%) percent until Twenty (20) years is reached at which time employee is eligible for One Hundred (100%) percent of annuitant-only coverage and Ninety (90%) percent of the additional premium for dependents. 20 ARTICLE XIII – BASIC LIFE INSURANCE The City shall provide a basic life and AD & D insurance plan in an amount equal to the employee's annual base compensation (rounded to the next highest $1,000). ARTICLE XIX– SUPPLEMENTAL LIFE INSURANCE An employee may, at his/her cost, purchase additional life insurance and additional AD&D coverage. The total amount of life insurance available to the employee is $325,000 and the total amount of AD&D coverage available is $325,000. ARTICLE XX– LONG TERM DISABILITY INSURANCE In lieu of providing long-term disability insurance program to eligible employees, the City shall add $40.00 per month to the base salary of eligible employees. This $40.00 per month shall not be calculated into the labor market salary comparison. Employees may elect to enroll in the City’s Long Term Disability Insurance program. ARTICLE XXI - EFFECTIVE DATE OF BENEFIT COVERAGE FOR NEW EMPLOYEES For newly-hired regular employees coverage begins on the first day of the month following date of hire for the health plan, dental plan, vision care plan, life insurance and long term disability plans if these benefits are elected. ARTICLE XXII-WORKERS’ COMPENSATION Persons on disability will be required to appear or otherwise report at regular two-week intervals to the Fire Chief or designate to discuss his/her status and ability to return to full or restricted work status. This section is not meant to unreasonably restrict employee's activities so long as such activities are cleared by the treating physician, treating program or alternative treatment program is maintained and employee is available for full or restricted duty as soon as medical clearance can be received. ARTICLE XXIII- RETIREMENT PENSION PLANS Section 1. Safety PERS Retirement Formula. a. Safety Pension Group A: 3%@50 Safety Retirement: The City will continue the present benefits under the Public Employees' Retirement System (PERS) "3 percent at 50 (3%@50)" formula for employees hired before the effective date of the “3 percent at 21 Section 2. 55” (3%@55) formula for new hires as described herein. The final year compensation for employees hired under the 3% at 50 formula will continue to be “Single highest year” or the highest average annual compensation earnable by the member during one (1) year of employment immediately preceding retirement or the one-year period otherwise designated by the member (Government Code section 20042). b. Safety Pension Group B: 3%@55 Safety Retirement: Effective December 7, 2012, the City amended its contract with CalPERS to provide employees hired on or after that date who are not “new members” of CalPERS, as defined in the Public Employees’ Pension Reform Act (after referred to as “classic” CalPERS members) with the CalPERS retirement formula three percent of final salary at age 55 (“3%@55”), with the final salary determination for such employees of “3 highest consecutive years” based on the highest average annual compensation earnable by the member during three (3) consecutive years of employment immediately preceding retirement or the three-year period otherwise designated by the member (Government Code section 20037). c. Safety Pension Group C: 2.7% at Age 57 Safety Retirement: Employees hired on or after January 1, 2013 meeting the definition of “new member” under the Public Employees’ Pension Reform Act (Gov’t. Code s. 7522 et seq.) shall be subject to all of the provisions of that law, including but not limited to the two point seven percent at age 57 (2.7%@57) retirement formula with a three year final compensation period. d. Safety PERS Member Contribution. 1. Employees in all classifications in Pension Groups A and B described above shall pay a total of 9% towards the PERS member contributions by payroll deduction. 2. Employees in all represented classes in Pension Group C described above shall pay the employee contribution required by the Public Employees’ Pension Reform Act, currently calculated at fifty percent (50%) of the normal cost. 3. When employees pay their PERS Member Contribution pursuant to section 2a and 2b above, the City will provide for member contributions to be made as allowed under provisions of IRS Code Section 414(h)(2). e. Additional Employee PERS contributions: In addition to the PERS member contribution as required under section 2d 1, 2 and 3 above, all employees in pension groups a, b and c shall contribute the additional following contributions: 1. All employees regardless of pension formula in this unit shall, in addition to the Member Contribution required, shall pay an additional 3% towards the Employer share of Pension regardless of pension formula through a CalPERS 20516 contract amendment. 2. Effective the first full pay period following July 1, 2020, all employees regardless of pension formula in this unit shall, in addition to the Member Contribution required, 22 pay an additional 1% towards the Employer share of Pension for a total of 4%. Section 2. Status Determination. An employee’s membership in and designation as Safety for CalPERS pension plan purposes shall be determined based on applicable California law. Section 3. Employer Contributions to 457 Plan Effective the later of July 1, 2025 or the adoption of the MOA first full pay period following July 1, 2020, the City will contribute $300 monthly the equivalent of 1% of the employee’s pensionable salary into the to the 457 plan of each represented employee. Effective July 1, 2026 the City will contribute $600 monthly to the 457 plan of each represented employee. Eligibility: 1. Employees must be enrolled in an eligible City sponsored 457 plan 2. Employees who reach the maximum as defined by the IRS will not receive additional contributions 3. Employee must be making PERS contributions ARTICLE XXIV - MISCELLANEOUS EMPLOYMENT-RELATED EXPENSES Section 1. Station House Fund. The Station House Fund per year per shift employee shall be $100.00. Section 2. Non-Food House Items. The City agrees to furnish and maintain each fire station with the following non-food house fund items: TV purchase and repair. Kitchen cooking utensils, small kitchen appliances and other specific items to be determined by mutual agreement of the parties will be purchased from the Station House Fund. Section 3. Per Diem Travel Expenses For City Business. Unless other mutually agreeable arrangements are made, representation unit employees who are required to travel away from the City on City business will receive travel expenses, according to City policies which are currently in effect. Section 4. Parking. Employees in represented classes assigned to Civic Center or adjacent work locations shall be entitled to free parking in the Civic Center Garage, or a commute incentive which will be subject to meet and confer. Employees hired after July 1, 1994 may initially receive a parking permit for another downtown lot subject to availability of space at the Civic Center garage. Light duty employees assigned to the Civic Center will receive Civic Center parking temporary permits for the duration of the light duty assignment. Section 5. Uniform. The value of the purchase, rental and/or maintenance of the required uniforms shall be reported as special compensation to the extent legally permissible, pursuant to 23 Title 2 CCR, Section 571(a)(5) as Uniform Allowance. Based upon existing uniform standards and the City’s cost experience, the value of this benefit shall be reported as $15.31 per pay period. The City will supply complete uniforms as described in Fire Department Policy 1031. ARTICLE XXV – WORK ASSIGNMENTS Section 1. Selection of and assignment to Training Battalion Chief (40-hour workweek) shall be based upon seniority, except where operational needs are determined by the Fire Chief or designee, the Fire Chief or designee reserves the right to assign personnel based on Fire Department needs. For purposes of this article, seniority shall be calculated from date of entry into the Battalion Chief classification. Section 2. Working out of Classification. Where employees, on a temporary basis, are assigned to perform all significant duties of a higher classification, for a period of one week or more, the Fire Chief may authorize payment within the range of the higher classification for the specified time frame. Working above classification will not exceed six months, unless renewed at the discretion of the Fire Chief. Working above classification pay is not to exceed 10% more than the employee’s current salary and shall be documented on a Personnel Action Form, with a description of the additional duties in the higher classification to be performed and an end date. Employees assigned to work out of classification will receive out of class pay beginning the first day of the assignment. ARTICLE XXVI - FULL UNDERSTANDING Section 1. The Memorandum of Agreement contains the full and entire understanding of the parties regarding the matters set forth herein. Section 2. Severability. If any of the provision herein contained be rendered or declared invalid by reason of any State or Federal legislation, or by ruling of any court of competent jurisdiction, such invalidation of such part or portion of this Memorandum of Agreement shall not invalidate the remaining portions hereof, and they shall remain in full force and effect, insofar as such remaining portions are severable. Section 3. It is the intent of the parties that ordinances, resolutions, rules and regulations enacted pursuant to this Memorandum of Agreement be administered and observed in good faith. Section 4. Nothing in this Memorandum of Agreement shall preclude the parties from mutually agreeing to meet and confer on any subject with the scope of representation during the term of this agreement. Section 5. Merit System Rules and Regulations During the term of this Memorandum of 24 Agreement, Management may propose certain changes in the City Merit System Rules and Regulations. With regard to such changes which pertain to the representation unit, the parties agree to review, and upon request, meet and confer regarding the changes. ARTICLE XXVII - DURATION This Memorandum of Agreement shall become effective upon signing by the parties hereto, except that those provisions herein that have specific effective dates shall take effect on those dates regardless of signing date, once this Memorandum of Agreement is signed by the parties hereto. This Memorandum of Agreement shall expire June 30, 2028 2025. ARTICLE XXVIII- 48/96 WORK SCHEDULE The regular schedule for 56 hour personnel will be under a “48/96” model. With the adoption of this “48/96” schedule the parties agreed to revise Fire department policy 205.6 typical workday and 1009.8.1 reporting for Duty-Holidays. 25 EXECUTED: FOR: FOR: FIRE CHIEFS ASSOCIATION CITY OF PALO ALTO APPENDIX A [Salary Schedule Attachment B] Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 1 CITY OF PALO ALTO Memorandum of Agreement City of Palo Alto and Utilities Management and Professional Association of Palo Alto Effective dates: July 1, 2025 – June 30, 2028 Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 2 Table of Contents PREAMBLE .................................................................................................................................. 4 ARTICLE I – RECOGNITION .................................................................................................. 4 ARTICLE II – NO DISCRIMINATION .................................................................................... 4 ARTICLE III – PAYROLL DUES DEDUCTION .................................................................... 4 ARTICLE IV – WORK STOPPAGE AND LOCKOUTS ........................................................ 4 ARTICLE V – CITY RIGHT TO MANAGE ............................................................................ 4 ARTICLE VI – Compensation .................................................................................................... 5 Section 1 – Job Families and Salary Schedule ............................................................................ 5 Section 2 – Base Salary Increases ............................................................................................... 5 Section 3 – Market Based Adjustments ...................................................................................... 6 Section 4. Working Above Classification ................................................................................... 7 Section 5. Engineers in Responsible Charge .............................................................................. 7 Section 6. Standby Compensation .............................................................................................. 7 Section 7. Utility Cost Efficiency Incentive Pilot Program ........................................................ 7 ARTICLE VII – HEALTH BENEFITS ..................................................................................... 7 Section 1 – Group Insurance ....................................................................................................... 7 Article VIII – Deferred Compensation Match ......................................................................... 12 ARTICLE IX – LEAVES ........................................................................................................... 12 Section 1 – Sick Leave .............................................................................................................. 12 Section 2 – Management Annual Leave ................................................................................... 13 Section 3 – Vacation ................................................................................................................. 13 Section 4 – Bereavement .......................................................................................................... 14 Section 5 – All Other Leaves .................................................................................................... 14 Section 6 – Vacation Benefits for Deceased Employees .......................................................... 14 Section 7 – Voluntary Leave Program ...................................................................................... 14 ARTICLE X – WORKERS’ COMPENSATION .................................................................... 15 Section 1 – Employees unable to work due to occupational injury, illness or disease ............. 15 Section 2 – Temporary Disability ............................................................................................. 15 ARTICLE XI – RETIREMENT PENSION ............................................................................. 15 ARTICLE XII – MISCELLANEOUS ...................................................................................... 17 Section 1 – Reimbursement for Relocation Expense ................................................................ 17 Section 2 – Meal allowance ...................................................................................................... 17 Section 3 – Reduction in Workforce...................................................................................... 17 Section 4 - Contracting Out ...................................................................................................... 17 Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 3 Section 5- Association Security ................................................................................................ 18 Section 6- Notification to the Association ................................................................................ 18 Section 7- Association Representative Access to Work Locations .......................................... 18 Section 8- Release Time ........................................................................................................... 18 Section 9- Personnel Files ......................................................................................................... 18 ARTICLE XIII – GRIEVANCE PROCEDURE ..................................................................... 18 Section 1 - General Provisions .................................................................................................. 18 Section 2 – Definitions.............................................................................................................. 18 Section 3 - Conduct of Grievance Procedure ............................................................................ 19 Section 4 - Grievance and Appeal Procedure ........................................................................... 19 ARTICLE XIV – FULL UNDERSTANDING ......................................................................... 21 Section 1 – Full Understanding................................................................................................. 21 Section 2 – Severability ............................................................................................................ 21 Section 3 – Good Faith ............................................................................................................. 21 Section 4 – Mid-Contract Negotiations .................................................................................... 21 Section 5 – Merit System .......................................................................................................... 21 ARTICLE XV-DURATION ...................................................................................................... 21 Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 4 PREAMBLE This memorandum of Agreement between the City of Palo Alto, hereinafter referred to as the “City”, and the Utilities Management and Professional Association of Palo Alto (UMPAPA), hereinafter referred to as the “Association” or “UMPAPA”, has been prepared and entered into in accordance with Title I, Division 4, Sections Chapter 10, 3500-3510 of the California government Code and Chapter 12 of the City of Palo Alto Merit System Rules and Regulations. ARTICLE I – RECOGNITION The City recognizes the Association as the exclusive representative of employees occupying positions in the bargaining unit certified by the City in accordance with the decision of Arbitrator Kagel dated April 13, 2011. ARTICLE II – NO DISCRIMINATION The Association and the City hereby agree that there shall be no discrimination because of race, color, age, handicap, sex, national origin, sexual or gender orientation, political or religious affiliation under this Agreement. There shall be no discrimination in employment conditions or treatment of employees on the basis of membership or non-membership in the Association, or participation in the lawful activities of the Association. ARTICLE III – PAYROLL DUES DEDUCTION The City shall deduct Association member dues, and any other mutually agreed upon payroll deduction from the bi-weekly pay of bargaining unit employees. The dues deduction must be authorized in writing by the employee on an authorization form acceptable to the City and to the Association. City shall remit the deducted dues to the Association as soon as possible after deduction. ARTICLE IV – WORK STOPPAGE AND LOCKOUTS The Association, its representatives or members shall not engage in, or cause, instigate, encourage, sanction or condone a work stoppage or sympathy work stoppage, withholding of services, leave of absence abuse or work slowdown of any kind against the City of Palo Alto or its citizens by its members during the term of this MOA. No Association member shall refuse to cross any picket line in the conduct of the Utility business, nor shall the Association, its representatives or members discriminate in any way towards anyone who refuses to participate in a work stoppage or any of the job actions cited above. The City agrees that it will not lock out Association members. ARTICLE V – CITY RIGHT TO MANAGE The City retains and reserves, without limitation, all powers, rights, authority, duties, and responsibilities to manage the City as stated in the City Merit Rules, Chapter 12, Section 1207(d). Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 5 Nothing in this Agreement is to be interpreted as constituting a waiver of the City’s rights and responsibilities to manage the City and create and maintain programs and services that reflect its public's wishes. The intent of this MOA is to establish wages, working hours, and conditions of employment with the Association. ARTICLE VI – Compensation Section 1 – Job Families and Salary Schedule Effective the first full pay period following adoption of this Memorandum by Council, all salaries of covered classifications shall be as listed in Appendix A. Appendix A shall clearly outline benchmark classifications for future total compensation surveys and for the purposes of internal alignment of the Association job families and career paths. The parties agree to continue a jointly-staffed benchmark committee. All recommendations or research conducted by the committee will be included in the next bargaining process. Section 2 – Base Salary Increases a) General Salary Increase: Effective the first full pay period following the later of July 1, 2025 or the adoption of the MOA 2023, salary ranges and salaries of all represented classifications will be increased by three four percent (4 3.0%). b) Market Adjustment: Effective the first full pay period following the later of July 1, 2025 or the adoption of the MOA, salary ranges and salaries of all classifications in the Manager, Utilities Strategic Business Services (Admin) job family will be increased by seven tenths of a percent (0.7%). Effective the first full pay period following the later of July 1, 2025 or the adoption of the MOA the following classifications will receive targeted market adjustments in the amount of six percent (6.0%): • Principal Electrical Engineer • Manager, Electrical Engineering Effective the first full pay period following the later of July 1, 2025 or the adoption of the MOA the following classifications will receive targeted market adjustments in the amount of four percent (4.0%): • Principal WGW Engineer • Manager, WGW Engineering Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 6 c) General Salary Increase: Effective the first full pay period following July 1, 2026 2024 salary ranges and salaries of all represented classifications will be increased by three four percent (4 3.0%). d) General Salary Increase: Effective the first full pay period following July 1, 2027 salary ranges and salaries of all represented classifications will be increased by three percent (3.0%). e) Effective July 2023 the first pay period following Council adoption of the MOU, and in lieu of additional increases to the City’s medical premiums, hourly wages for all bargaining unit classifications will be increased by $100 per month ($1200 per year). Employees can utilize this cash payment for any purpose, including to cover health insurance premiums or contribute to flexible spending accounts/457 deferred compensation plans. f) Effective the first pay period of January 2024, all classifications will receive an additional one hundred dollars ($100) monthly flexible compensation payment built into base hourly rate of pay. Section 3 – Market Based Adjustments Within the Term of this Agreement, the City will conduct a total compensation study of UMPAPA Benchmarked positions based on the following agencies: Alameda Anaheim Burbank East Bay MUD Long Beach Mountain View Pacific Gas and Electric Redwood City Roseville Sacramento MUD San Jose Santa Clara Silicon Valley Clean Energy Sunnyvale The City’s total compensation study will include a geographic adjustment for agencies which are outside of the immediate region. Those agencies receiving a geographic adjustment are: Anaheim, Burbank, Long Beach, Sacramento MUD and Roseville. For the purposes of recruiting and retaining employees within the Utility market place, the parties will add to the survey universe data from Pacific Gas and Electric (PG&E) Bay Area region where data can be found. For the term of this agreement, where PG&E data cannot be verified or acquired the parties agree to include an above-median comparator for the purposes of calculating benchmarks. The City’s survey is intended to provide a single source of information regarding compensation paid to bargaining unit employees and its comparison to compensation paid by other entities. The survey data does not obligate the City or the Association to propose or agree to any market-based adjustments. The next total compensation study will be started 180 days prior to expiration of this agreement. Effective the first full pay period following the adoption of the MOA, salary ranges identified classifications will be increased in an amount sufficient to bring them to market as determined by the City’s market study. Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 7 Section 4. Working Above Classification Where covered employees, on a temporary basis, are assigned to perform all significant duties of a higher classification for a period of one pay period or more, the City Manager or designee may authorize payment within the range of the higher classification for the specified time frame. Working above classification will not exceed six months, unless renewed at the discretion of the City Manager or designee. On expiration of that timeframe, working above classification pay will cease and the employee will return to their former pay level. Working above classification pay is not to exceed 10% more than the employee’s current salary and shall be documented on a Personnel Action Form, with a description of the additional duties in the higher classification to be performed and an end date. Any disputes with the application of this provision shall be subject to Chapter 11 of the City’s Merit Rules. Section 5. Engineers in Responsible Charge Principal Engineers designated as engineers in responsible charge shall receive working above classification pay as defined in Section 4 above. Section 6. Standby Compensation Utility Operations Supervisors in WGW or Electric who are assigned to standby duty shall be compensated at the daily rate of two (2) hours at their base hourly salary on days the employee is assigned to be on standby duty. Section 7. Utility Cost Efficiency Incentive Pilot Program During the term of this agreement, the parties will meet in an attempt to develop a pilot for a Utility Cost Efficiency Incentive bonus program. The Pilot Program will be implemented only upon mutual agreement of the City and UMPAPA but will have the following general parameters: 1. The Parties must agree on measurable objectives/criteria focused on curbing controllable costs associated with rate increases, 2. If the agreed-upon on “measurable objectives/criteria” are met during the Pilot Program, the City would provide a onetime non-pensionable bonus in an amount agreed to by the parties. All covered employees who are active at the time of payment will be eligible if the objectives/criteria are met. 3. The Pilot Program will begin and end on dates mutually agreed by the parties. However, the pilot program will end with expiration of the current MOA between the parties unless the parties agree in writing to an extension of the program. The parties agree to continue the pilot program and its incentive pays for the term of the agreement. ARTICLE VII – HEALTH BENEFITS Section 1 – Group Insurance Except as otherwise set forth herein, the City will maintain the present level of benefits on all City- sponsored medical programs. a) Effective Date of Coverage For newly-hired regular employees coverage begins on the first day of the month following submission of new hire forms date of hire for the health plan, dental plan, vision care plan, long term disability and life insurance plans if these benefits are elected. Effective on the first of the calendar month falling sixty (60) Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 8 days after adoption of this MOA, City health premium contributions (medical, dental and vision) are will be prorated for part-time employees based on the number of hours per week the part-time employee is assigned to work. Until that time, part-time employees will remain subject to the practice in effect at adoption of this MOA. b) Active Employee Health Coverage During the term of this MOA, the maximum City contribution towards medical premiums for eligible full time employees per employee category shall be up to a maximum of the following for any plan: Medical Premium Category Total Maximum City Contribution (inclusive of PEMHCA contribution*) Effective the later of July Jan 1, 2025 2021 or the adoption of the MOA. EE only $943 871 EE plus one $1885 1742 EE plus family $2444 2260 Effective January 1, 2027, the City will increase its maximum contribution to medical premiums by the following percentages: • Employee only: 2% • Employee plus one: 3% • Employee family: 5% Medical Premium Category Total Maximum City Contribution (inclusive of PEMHCA contribution*) Effective January 1, 2027 or the adoption of the MOA. EE only $962 EE plus one $1942 EE plus family $2566 Effective January 1, 2028, the City will increase its maximum contribution to medical premiums by four percent (4%). Medical Premium Category Total Maximum City Contribution (inclusive of PEMHCA contribution*) Effective January 1, 2028 or the adoption of the MOA. EE only $1000 EE plus one $2020 EE plus family $2669 *For the duration of this MOA if the PEHMCA Minimum charges increase they will be included in the City’s maximum contribution and will not result in an increase to the City’s maximum contribution rates. Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 9 c) Coverage for Domestic Partners. 1. Domestic Partnership Registered with the California Secretary of State: Employees may add their domestic partner as a dependent to their elected health plan coverage if the domestic partnership is registered with the Secretary of State. 2. Domestic Partner Not Registered with the California Secretary of State:; Domestic partners who meet the requirements of the City of Palo Alto Declaration of Domestic Partnership, and are registered with the Human Resources Department, will be eligible for a stipend of two hundred and eighty four dollars ($284) per month toward the cost of an individual health plan. Evidence of premium payment will be required with request for reimbursement. d) Alternative Medical Benefit Program If a regular employee and/or the employee’s dependent(s) are eligible for medical insurance through another employer-sponsored or association medical plan, the employee may opt for alternative medical insurance coverage through the other employer-sponsored or association plan and waives his/her their right to the City of Palo Alto’s medical insurance coverage for same individuals. Employees waiving City coverage may receive a stipend of $284 per month. e) Retiree Health Plan a. Employees Hired Prior to January 1, 2004 Monthly City-paid premium contributions for a retiree-selected health plan through the CalPERS Health Benefits Program will be made as provided under the Public Employees' Medical and Hospital Care Act. The City's contribution for an employee hired before January 1, 2004 and whose retirement date is on or after May 1, 2011 shall be the same contribution amount it makes from time to time for active City employees. b. Post - 1/1/04 Hires Government Code section 22893 applies to those Unit members hired after January I, 2004, and provides that, upon retirement from the City an employee is eligible for 50% of the specified employer health premium contribution after ten (10) years of service credit, provided at least five of those years were performed at the City of Palo Alto. After ten years of service credit, each additional service credit year increases the employer contribution percentage by 5% until, at twenty (20) years' service credit; the employee will be eligible upon retirement for 100% of the specified employer contribution and 90% of the contribution for their dependent coverage. The City of Palo Alto's health premium contribution for eligible post - 1/1/04 hires shall be the minimum contribution set by PERS under section Government Code section 22893. For employees hired prior to January 1, 2004 who wish to opt in to Government code section 22893, the City provided a 90 calendar day period, in which employees hired prior to January 1, 2004 will have the opportunity to opt in to Government code section 22893. For a 90 day period following adoption of this agreement by Council, the City will offer a one-time opt in to Government code section 22893 for employees hired prior to 12/1/2013. Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 10 f) Dental Plan 1. The City shall pay covered plan charges on behalf of all eligible employees and dependents. Dependents include eligible domestic partners as defined in Section 1 subsection c of this Article VII, Health Benefits. 2. The City provides a base dental plan for all eligible employees and dependents. Eligible employees may enroll in a dental buy-up plan. The City shall pay all premium payments on behalf of employees and dependents who are eligible and enrolled for coverage under the base dental plan. 2. The City’s Dental Plan provides the following: a. Maximum Benefits per Calendar Year- $2,000 per person b. Lifetime Maximum for Orthodontics- The City will pay up to $2,000.00 for orthodontia coverage (not included in annual dental maximum) c. Major Dental Services 50% UCR* d. Orthodontics 50% UCR* e. Basic Benefits (All other covered services) i) First Calendar Year of Eligibility 70% UCR* ii) Subsequent Calendar Years 70%-100% iii) *Usual, Customary, and Reasonable iv) For each dental plan member, the percentage of coverage for basic benefits will begin at 70% for the first calendar year of coverage and increase by 10% (up to a maximum of 100%) effective the first day of the next calendar year as long as the member utilizes the plan at least once during the current year. Per the Delta Dental contract effective October 1, 2005, if the member does not use the plan during the current year, the percentage of coverage for the next calendar year shall remain unchanged from the current year. v) If a dental plan member loses coverage under the plan, the applicable percentage of coverage for basic benefits provided during any future period of coverage will commence at 70% as if the dental plan member was a new enrollee. Examples of when a member might lose coverage under the plan include: • Employee goes on an unpaid leave of absence and elects not to pay the required dental premiums for his/her family’s coverage during the leave. • Employee elects to drop one or more covered dependents from the plan during an open enrollment period so that they might be covered on a spouse’s non-City of Palo Alto dental plan. Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 11 g) Vision Care 1. Level of Benefits: The City provides a base vision plan for all eligible employees and dependents. Eligible employees may enroll in a vision buy-up plan. 2. Premiums: The City shall pay all premium payments on behalf of employees and dependents who are eligible and enrolled in coverage under the base vision plan. Employees are responsible for premium payments required to enroll in the buy-up vision plan. 3. The City shall provide vision care coverage for employee and dependents. Coverage is administered by Vision Service Plan (VSP). The plan will provide an exam every 12 months; lenses every 24 months; frames every 24 months, all subject to a twenty dollar ($20) co- payment as defined in the Vision Services Benefits Plan A schedule. 3. Dependents include eligible domestic partners as defined in Section 1, Subsection c of this Article VII, Health Benefits. h) No dual coverage for dental and vision benefits. When a City employee is married to or has a registered domestic partner with the California Secretary of State with another City employee, each shall only be covered once. (as an individual or as a spouse of the other City employees, but not both) and dependent children, if any, shall be covered by only one spouse. i) Basic Life Insurance The City shall provide a basic group term life insurance with Accidental Death and Dismemberment (AD&D) coverage, in an amount equal to the employee's annual basic pay (rounded to the next highest $1,000) at no-cost to the employee. AD&D pays an additional amount equal to the employee’s annual basic pay (rounded to the next highest $1,000). j) Supplemental Life And AD&D Insurance An employee may, at his/her their cost, purchase additional life insurance and additional AD&D coverage equal to one- or two-times his or her annual salary. The maximum amount of life insurance available to the employee is up to $325,000 and the maximum amount of AD&D coverage available is up to $325,000. k) Long Term Disability Insurance The City shall provide long term disability (LTD) insurance with a benefit of 2/3 monthly salary, up to a maximum benefit of ten thousand dollars ($10,000) per month. The LTD plan will have a waiting period of sixty days, as provided by the applicable carrier agreement. The City shall pay the premium for the first six thousand dollars ($6,000) of base monthly salary. For employees whose base monthly salary exceeds six thousand dollars ($6,000), the employee shall pay the cost of the required premium based upon their monthly salary between six thousand dollars ($6,000) and fifteen thousand dollars ($15,000). Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 12 l) Employee Assistance Plan The Employee Assistance Plan (EAP) provides employees with confidential personal counseling, work and family related issues, eldercare, substance abuse, etc. In addition, EAP programs provide a valuable tool for supervisors to refer troubled employees to professional outside help. This service staffed by experienced clinicians is available to employees and their dependents by calling a toll-free phone line twenty-four (24) hours a day, seven days a week. Guidance is also available online. Article VIII – Deferred Compensation Match Effective January 1, 2019 tThe City will match employee contributions into their City-approved 457 plans up to a maximum of $4000. No combination of Employee and Employer funds can exceed the IRS limits for City approved 457 plans. The table below is for illustrative purposes only: Employee Contribution Employer Matching Contribution $1,000 $2,500 $1,000 $2,500 $4,000 $4,000 $11,000 $4,000 ARTICLE IX – LEAVES Section 1 – Sick Leave a) Sick leave shall be accrued bi-weekly provided the employee has been in a pay status for 50 percent or more of a bi-weekly pay period. Sick leave shall be accrued at the rate of 3.7 hours per bi-weekly pay period for those employees working a forty-hour duty schedule. Those assigned work schedules, which are greater or lesser than forty hours will accrue sick leave at the ratio of their work schedule to forty hours. b) Employees may use up to twenty thirty (30) hours of sick leave per calendar year for personal business. The scheduling of such leave is subject to the approval of the appropriate level of Management. c) Employees leaving the municipal service shall forfeit all accumulated sick leave, except as otherwise provided by law and by Section 609 of the Merit Rules and Regulations. In the event that notice of resignation is given, sick leave may be used only through the day which was designated as the final day of work by such notice. d) Employees that were hired before December 1, 1983 and who leave the municipal service in good standing, or who die while employed in good standing by the city, and who have fifteen or more years of continuous service shall receive compensation for unused sick leave hours in a sum equal to two and one-half percent of their unused sick leave hours multiplied by their years of continuous service and their basic hourly rate of pay at termination. Full sick leave accrual will be paid in the event of termination due to disability. See Merit System Rules and Regulations, Chapter 6, Section 609. e) Up to nine days of sSick leave per calendar year may be used for illness in the immediate family, including a registered domestic partner or other individuals required by law. Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 13 f) Employees eligible, as specified above if hired before December 1, 1983, to be compensated for sick leave may annually convert sick leave hours in excess of 600 to cash or deferred compensation, according to the formula set forth above, up to a maximum of $2,000 per fiscal year. Section 2 – Management Annual Leave At the beginning of each calendar year designated exempt employees will be credited with 80 hours of management annual leave. This leave is granted in recognition of the extra hours exempt employees work over their regular schedule. This leave may be taken as paid time off, added to vacation accrual (subject to vacation accrual limitations), taken as cash or taken as deferred compensation. When time off is taken under this provision, 10-hour shift workers will receive one shift off for each 8 hours charged. Entitlement under this provision will be reduced on a prorated basis for part-time status, or according to the number of months in paid status during the fiscal year; employees who have used more than the pro-rated share at the time they leave City service shall be required to repay the balance or have it deducted from their final check. Unused balances as of the end of the calendar year will be paid in cash unless a different option as indicated above is elected by the employee. Section 3 – Vacation Vacation will be is accrued when an employee is in pay status and will be credited on a bi-weekly basis. Total vacation accrual at any one time may not exceed three times the annual rate of accrual. Each eligible employee shall accrue vacation at the following rate for continuous service performed in pay status: a) Less than nine years. For employees completing less than nine years continuous service: 120 hours vacation leave per year; provided that: The City manager is authorized to adjust the annual vacation accrual of employees hired on or after July 1, 2001, to provide up to 40 additional hours (i.e., to a maximum annual accrual of 160 hours) for service with a prior employer. b) Nine, but less than fourteen years. For employees completing nine, but not more than fourteen years continuous service; 160 hours vacation per year. c) Fourteen, but less than nineteen years. For employees completing fourteen, but not more than nineteen years continuous service; 180 hours vacation leave per year. d) Nineteen or more years. For employees completing nineteen or more years continuous service; 200 hours vacation leave per year. e) Employees are eligible to cash out vacation accrual balances in excess of 80 hours. An employee may cash out a minimum of eight (8) hours to a maximum of 120 hours of accrued vacation provided the employee has taken 80 vacation hours in the previous 12 months and has followed the election procedures set forth in this section. Employees must elect the number of vacation hours they will cash-out during the next calendar year, up to the maximum of 120 hours. The election will apply only to vacation hours that are accrued in the next calendar year and that are eligible for cash-out. Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 14 The election to cash-out vacation hours in each designated year will be irrevocable. This means that employees who elect to cash-out vacation hours must cash-out the number of accrued hours pre- designated on the election form. Employees who do not elect a cash-out amount by December 31 of the prior calendar year will be deemed to have waived the right to cash out any leave in the following tax year and will not be eligible to cash-out vacation hours in the next tax year. Employees who elect cash-out amounts may request a cash-out at any time in the designated tax year by submitting a cash-out form to payroll. Payroll will complete the cash-out upon request, provided the requested cash-out amount has accrued and is consistent with the amount the employee pre-designated. If the full amount of hours designated for cash-out is not available at the time of cash-out request, the maximum available will be paid. For employees who have not requested cash-out of the elected amount by November 1 of each year, Payroll will automatically cash-out the elected amount, or the maximum available amount, in a paycheck issued on or after the payroll date including November 1. Section 4 – Bereavement Leave of absence with pay of three (3) days may be granted to an employee by the head of their his/her department in the event of death in the employee’s immediate family, which is defined for purposes of this section as: wife husband son son-in-law daughter daughter-in-law father mother brother brother-in-law sister adopted child sister-in-law mother-in-law father-in-law step-father step-mother step-sister step-brother grandfather grandfather-in-law grandmother grandmother-in-law uncle aunt niece nephew registered domestic partner close relative residing in the household of the employee Such leave shall be at full pay and shall not be charged against the employee’s accrued vacation or sick leave. Employees may supplement paid bereavement leave with accrued leave (including vacation or sick leave) or unpaid leave to reach a total of five (5) workdays of time off per incident of bereavement. Requests for leave in excess of three five (5) days shall be subject to the approval of the City Manager or their designee. a Council-Appointed Officer for employees under his/her control. Section 5 – All Other Leaves For all other leaves of absence refer to Chapters 5 and 8 of the City’s Merit Rules and Regulations. Section 6 – Vacation Benefits for Deceased Employees An employee who is eligible for vacation leave and who dies while in the municipal service shall have the amount of any accrued vacation paid to the employee's estate within thirty days. This proration will be computed at the last basic rate of pay. Section 7 – Voluntary Leave Program If permitted by agreement between the City and the Association, members of the Association may participate in the "Voluntary Leave Program" to assist in maintaining the pay of an employee who is Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 15 eligible by virtue of a qualifying catastrophic medical condition. Such participation, when authorized by City- Association agreement, shall be allowed only as long as the donors remain anonymous (unless disclosure is required by law). Section 8 Floating Holiday – Days of Historical Significance Employees will be provided one floating holiday each calendar year in acknowledgement of days of historical significance. The employee with prior approval from their supervisor can use this floating holiday at any time during the year. This holiday has no cash value and will expire if unused. ARTICLE X – WORKERS’ COMPENSATION Section 1 – Employees unable to work due to occupational injury, illness or disease Employees unable to work due to occupational injury, illness or disease will be required to report to management to discuss his/her their status and ability to return to work on restricted or unrestricted duty, subject to the limitations imposed by applicable law. This requirement is not meant to unreasonably restrict employee’s activities while off work due to such incapacity as long as such activities are cleared by the treating physician, treating program or alternative treatment program and the employee is available for restricted or unrestricted duty as soon as medical clearance can be received. Section 2 – Temporary Disability While temporarily disabled, employees shall be entitled to use accrued sick leave for the first three (3) days following the date of injury and thereafter shall be paid full base salary for a period not to exceed fifty-seven (57) calendar days (including Saturdays, Sundays and Holidays), unless hospitalized, in which case employees shall be paid full base salary for a period not to exceed sixty (60) days from date of injury. For any temporary disability continuing beyond the time limits set forth above, employees shall be paid two-thirds (66.66%) of their full base salary at the time of injury for the duration of such temporary disability in conformance with State law. During the period of temporary disability, an employee’s eligibility for health, dental, life, LTD, or other insured program will continue with City contributions at the same rate as for active employees and vacation and sick leave benefits shall continue to accrue. In case of temporary disability beyond the time limits set forth above, sick leave and vacation benefits shall not be accrued. ARTICLE XI – RETIREMENT PENSION a) Employees hired before July 17, 2010 1. Retirement formula. Effective pay period inclusive of 1/6/07, the City’s Public Employees’ Retirement System (PERS) benefits changed to the 2.7%@ 55 formula for non-safety members (from 2% @55). 2. Employee contributions. Employees under the 2.7%@55 retirement formula will pay the full eight percent (8%) employee contribution. 3. Final compensation. Final compensation for purposes of retirement shall be as set forth in the City’s contract with CalPERS, including, when applicable, the Government Code Section 20692 Optional Benefit. Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 16 b) Employees hired on or after July 17, 2010. 1. Retirement formula. For miscellaneous employees hired on or after July 17, 2010, or on or after January 1, 2013 who are not subject to the pension formula in the Public Employees’ Pension Reform Act (PEPRA), the City offers the CalPERS retirement formula two percent (2.0%) of final salary at age sixty (60). 2. Employee contributions. Employees under the 2%@60 retirement formula will pay the full seven percent (7%) employee contribution. 3. Final compensation. Final compensation for purposes of retirement shall be as set forth in the City’s contract with CalPERS, including, when applicable, the Government Code Section 20692 Optional Benefit or as required by law. c) New Employees hired on or after January 1, 2013 Employees hired on or after January 1, 2013 who are “new members” as defined by the California Public Employees’ Pension Reform Act (PEPRA), will be subject to the terms of that statute including but not limited to the following provisions: 1. Retirement formula. Effective for employees hired on or after January 1, 2013, the PEPRA requires the City to provide new employees, as defined in that law, the CalPERS retirement formula two percent of final salary at age 62 (2%@62). 2. Employee contributions. Employees under the 2%@62 formula shall pay at least 50 percent of the total normal cost or the same contribution rate as “similarly situated” employees, whichever is higher. 3. Final compensation. Final compensation for employees under the 2%@62 benefit shall be as set forth in PEPRA, including calculation based on the average of three highest consecutive years and a cap on pensionable compensation (currently $136,440) based on IRS limits for employers that do not participate in social security. d) Effective as soon as administratively feasible but no sooner than the first full pay period of March 2019, bargaining unit employees shall contribute 1% of their salary toward the employer cost of retirement. Pensions Group Pension Formula Employee Contribution Contribution to Employer Side Total Contribution from Employees Group A 2.7@ 55 8% 1% 9% Group B & C 2@60 7% 1% 8% Group D 2@62 50% of the normal Cost (Currently 6.25%) 1% Will fluctuate (Currently 7.25%) Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 17 e) Employee CalPERS contributions tax deferred. Employee CalPERS contributions shall be made on a tax deferred basis, in accordance with Section 414(h)(2) of the Internal Revenue Code. All provisions of this subsection are subject to and conditioned upon compliance with IRS regulations. ARTICLE XII – MISCELLANEOUS Section 1 – Reimbursement for Relocation Expense The City of Palo Alto, in rare instances, may, provide a Basic Relocation Benefits Package for new employees, upon the approval of the City Manager or designated subordinate. In addition, the provision of “Optional Benefits”, or portions thereof, may be extended for exceptional circumstances and only by approval of the City Manager or designee. The details of the Relocation Expense program are specified in the City’s Relocation Expense policy. Section 2 – Meal allowance Employees assigned to attend night meetings or who travel for business purposes are eligible to receive reimbursement as described by City policy. This provision covers only receipted meals actually taken and submitted for reimbursement. Section 3 – Reduction in Workforce The City will make every effort to provide written notice of its intent to lay off employees in this unit and will meet with Association upon request to discuss alternatives to layoff. Section 4 - Contracting Out a. As provided in subsection b, the City shall provide notice of any planned action(s) that would result in the layoff of one or more Association bargaining unit members and where either of the following apply: 1. The planned City action(s) is to contract out work historically and exclusively performed by Association bargaining unit members; 2. The planned City action is to substantially increase the scope or amount of work historically but not exclusively performed by Association bargaining unit members (e.g. work shared with other City employees outside the Association bargaining unit or contractors). b. The City shall deliver written notice to the Association at least thirty (30) days before it implements any action(s) described in subsection a. Within seven (7) days after it receives such notice, the Association may deliver to the City’s Chief People Officer a written request to meet and discuss the effects of the City action(s). After the City’s receipt of such request, the parties will promptly meet and undertake discussions. The discussions will conclude no later than the thirtieth (30th) day following the Association’s receipt of the City’s notice of the planned action(s), as described above. Thereafter, the City may implement the action(s) without further discussion as originally planned or as modified as a result of such discussions. If the Association does not deliver timely notice of its desire to meet and discuss the effects of the action(s) identified in the City’s notice, the City may proceed with the planned action(s). c. The City retains its right to determine the methods, means, and personnel by which services are carried out at its sole discretion in circumstances no covered by subsection a above. Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 18 Section 5- Association Security a) When a person is hired in any of the covered job classifications, the City shall notify that person that the Association is the recognized bargaining representative for the employee in said Association and give the employee a current copy of the Memorandum of Agreement. b) Members of the Association Board may use a reasonable amount of on-duty time without loss of pay to meet with the City specifically related to representation of employees. For purposes of this section, representation shall include: (i) Meetings with represented employees or the City related to a grievance or disciplinary action, including investigation and preparation time. (ii) Any meeting with the City related to benefits, working conditions or other terms and conditions of employment. Section 6- Notification to the Association The Association shall be informed in advance in writing by the City before any proposed changes not covered by this Memorandum of Agreement are made in benefits, working conditions, or other terms and conditions of employment which require meet and confer or meet and consult process. Section 7- Association Representative Access to Work Locations Employee and nonemployee representatives of the Association will be granted access to City work locations to conduct business related to the administration or negotiation of the parties' Memorandum of Agreement, as long as advance arrangements for such visits have been made with the affected department manager and no disruption of work occurs. Section 8- Release Time The Association Chair, Vice-Chair or his/her their designee in the representation unit may use a reasonable amount of time without loss of pay for matters related to the bargaining process, labor relations, and administration of the MOA, violations of the MOA, grievances, disciplinary Section 9- Personnel Files Records of all disciplinary actions shall be kept in the central personnel file. Employees shall be entitled to sign and date any all action forms in their personnel files. Employees are entitled to review their personnel files upon written request or to authorize, in writing, review by their Association representatives. An employee shall be allowed, copies of materials in their an employee's personnel file. ARTICLE XIII – GRIEVANCE PROCEDURE Section 1 - General Provisions The City and the Association recognize that early settlement of grievances is essential to sound employee-employer relations. The parties seek to establish a mutually satisfactory method for the settlement of Association grievances as provided for below. In presenting a grievance the aggrieved and/or his/her their representative is assured freedom from restraint, interference, coercion, discrimination or reprisal. Section 2 – Definitions Grievance means an unresolved complaint or dispute regarding the interpretation or application of this Memorandum of Agreement, excluding however those provisions of this MOA which specifically provide that the decision of any City official shall be final, the interpretation or application of those provisions Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 19 not being subject to the grievance. Section 3 - Conduct of Grievance Procedure a) An aggrieved employee may be represented by the Association or may represent himself/herself themselves in preparing and presenting a grievance at any level of review. No grievance settlement may be made in violation of an existing merit rule or memorandum of agreement. b) An employee and the representative steward, if any, may use a reasonable amount of work time so long as there is no disruption of work, in conferring about and presenting a grievance. Requests for release time to prepare grievances shall be made in advance and approved by the immediate supervisor. c) The time limits specified in this Article may be extended by mutual agreement in writing of the aggrieved employee or the Association and the reviewer concerned. d) Should a decision not be rendered within a stipulated time limit, the grievant may immediately appeal to the next step. e) The grievance shall be considered settled if the decision of any step is not appealed within the specified time limit. f) Grievances shall be made in writing and submitted on forms provided by the City. The written grievance shall contain clear, factual and concise language, including: (1) the name of the grievant; (2) a statement of the facts upon which the grievance is based, including relevant dates, times and places; (3) specific provisions of this Agreement the grievant alleges has been violated; (4) a summary of any steps taken toward resolution; and (5) the action the grievant believes will resolve the grievance. g) Any retroactivity on monetary grievances shall be limited to the date of occurrence, except in no case will retroactivity be granted prior to three months before the grievance was filed in writing. h) For purposes of time limits, “working days” are considered to be Monday through Friday, exclusive of City holidays. i) If a mutually agreed solution is reached during any step of this grievance procedure, the agreement shall be placed in writing and signed by the City and the grievant or Association. j) Upon request of either party, meetings to discuss the grievance shall be held at any step in the grievance procedure. Section 4 - Grievance and Appeal Procedure Step I. Informal Discussion Within fifteen (15) working days after the incident or discovery of the incident on which the grievance is based the aggrieved employee shall present the grievance action to his/her their immediate supervisor and attempt to resolve the grievance through informal discussions. Every attempt will be made to settle the issue at this level. Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 20 Step II. Formal Grievance If the grievance is not resolved through the informal discussion in Step 1 the employee will reduce the grievance to writing and submit copies to the Department head or his/her their designee within fifteen (15) working days of the discussion with the immediate. The Department Head or designee shall have fifteen (15) working days from the receipt of a written grievance to review the matter and prepare a written statement. Step III. Human Resources Director If the grievance is not resolved and/or the aggrieved employee is not satisfied with the Step II decision, the grievant may appeal to the Human Resource Director or his/her their designee in writing within fifteen (15) working days of the receipt of the Department Head's response. The written appeal to the Human Resources level shall include a copy of the original grievance, the Department Head’s decision at Step II, and a clear statement of the reasons for appeal. Within fifteen (15) working days, after receiving the written appeal, the Human Resource Director shall review the matter and prepare a written statement. If a mutually agreed solution is reached during this process the agreement shall be placed in writing and signed. Step IV. City Manager /Arbitration If the grievance is not resolved at Step III, the aggrieved employee may choose between final and binding resolution of the grievance through appeal to the City Manager or through appeal to final and binding arbitration. For the term of this Memorandum of Agreement, appeals to final and binding arbitration may be processed only with Association approval. All Step IV appeals must be filed in writing at the Human Resources Department Office within fifteen (15) working days of receipt of the Human Resource Director’s decision at Step 3. If the grievant or appellant elects final and binding resolution by the City Manager, the City Manager will choose the methods he or she they considers appropriate to review and settle the grievance. The City Manager shall render a written decision to all parties directly involved within fifteen (15) working days after receiving the grievant/appellant’s appeal. If the grievant/appellant elects final and binding arbitration in accordance with this provision, the parties shall mutually select an arbitrator. In the event the parties cannot agree on an arbitrator, they shall mutually request a panel of five arbitrators from the California State Conciliation Service or from the American Arbitration Association if either party objects to the State Conciliation Service, and select an arbitrator by the alternate strike method. The arbitrator shall have jurisdiction and authority only to interpret, apply, or determine compliance with the provisions of this Memorandum of Agreement. The arbitrator shall be without power to make any decision contrary to, or inconsistent with or modifying in any way, the terms of this Memorandum Of Agreement. The arbitrator shall be without authority to require the City to delegate or relinquish any powers which by State law or City Charter the City cannot delegate or relinquish. Copies of the arbitrator's decision shall be submitted to the City, the aggrieved employee and the Association. All direct costs emanating from the arbitration procedure shall be paid in full by the party in which the decision was found against. ARTICLE XIV – PERFORMANCE EVALUATIONS Performance evaluations for represented employees shall be conducted in accordance with processes defined in the City’s Management and Professional Compensation Plan. Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 21 ARTICLE XIV XV – FULL UNDERSTANDING Section 1 – Full Understanding The Memorandum of Agreement contains the full and entire understanding of the parties regarding the matters set forth herein. Section 2 – Severability If, at the conclusion of any applicable appeals, any provision of this Memorandum of Agreement is ultimately held invalid and unenforceable by a decision of the relevant Court or Administrative Agency of competent jurisdiction such holding shall apply only to the provision(s) of this Memorandum of Agreement specified in the decision. Such decision shall not invalidate any other portion of this Memorandum of Understanding, and the unaffected provisions shall remain in full force and effect. The Parties agree that within ten (10) days after the date of such decision, they shall meet and confer in an effort to negotiate a substitute for the invalidated provision(s). Section 3 – Good Faith Ordinances, resolutions, rules and regulations enacted pursuant to this Memorandum of Agreement that regulate matters within the scope of representation shall, to the extent they are within the scope of representation, be administered in good faith. Section 4 – Mid-Contract Negotiations Subjects within the scope of representation that are not covered by this Memorandum of Agreement remain subject to the duty to meet and confer in good faith on timely notice and request. Neither party is obligated to meet and confer over matters within the scope of representation covered by this Memorandum of Agreement, except for purposes of negotiating over the terms of a successor to this Memorandum of Agreement. Section 5 – Merit System Merit System Rules and Regulations, during the term of this Memorandum of Agreement, Management may propose certain changes in the City Merit System Rules and Regulations. With regard to such changes which pertain to the representation unit, the parties agree to review, and upon request, meet and confer regarding the changes. ARTICLE XVI - DURATION This Memorandum of Agreement shall become effective once the Memorandum of Agreement is signed by the parties hereto and adopted by the City Council. This Memorandum of Agreement shall remain in effect through June 30, 2028 2025. At the request of either party negotiation of a successor agreement shall commence, however they should begin no sooner than 6 months prior to expiration of this agreement and no later than 3 months prior to the expiration of this agreement. Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 22 For the City: For the Association: __ ______ Ed Shikada, City Manager Aaron Perkins, Principal WGW Engineer __ ______ Sandra Blanch, Human Resources Director Jim Pachikara, Principal Electrical Engineer __ Tori Anthony, Manager Employee Relations Dave Yuan, Utilities Strategic Business Manager __ Ben Farnsworth, Sr HR Administrator Kevin Enderby, Principal Business Analyst __ _______________________________________ Sandhya Uthup, HR Representative Abel Silva, Supervisor WGW Operations _______________________________________ Alan Davis, UMPAPA Outside Counsel Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 23 Appendix A Benchmark Classifications and Salary Schedule Division Classifications in Job Family Resource Planning Assistant Director, Utilities Resource Management Senior Resource Planner Manager, Utilities Program Services Electric & Fiber Utilities Assistant Director, Electric and Fiber Optic Utilities Manager, Engineering, Electric and Fiber Utilities Manager, Operations - Electric and Fiber Utilities Manager, Utilities Compliance Principal Engineer, Electric and Fiber Utilities Operations Supervisor, Electric and Fiber Utilities Supervising Project Engineer, Electric and Fiber Utilities Manager, Fiber Optic Utility Utilities Safety Officer Water, Gas Wastewater Utilities Assistant Director, Water-Gas-Wastewater (WGW) Utilities Manager, Engineering, WGW Utilities Manager, Operations - WGW Utilities Principal Engineer, WGW Utilities Operations Supervisor, Water-Gas-Wastewater (WGW) Utilities Supervising Project Engineer, WGW Utilities Customer Support Assistant Director, Utilities Customer Support Services Manager, Utilities Credit & Collection Manager, Utilities Customer Service Admin Manager, Utilities Strategic Business Services Utilities Principal Business Analyst Utilities Management Analyst Manager, Utilities Public Communications Utilities Senior Business Analyst Utilities Senior Management Analyst Utilities Administrative Assistant *Benchmark Classifications in Bold Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 24 Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 1 CITY OF PALO ALTO Memorandum of Agreement City of Palo Alto and Utilities Management and Professional Association of Palo Alto Effective dates: July 1, 2025 – June 30, 2028 Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 2 Table of Contents PREAMBLE .................................................................................................................................. 4 ARTICLE I – RECOGNITION .................................................................................................. 4 ARTICLE II – NO DISCRIMINATION .................................................................................... 4 ARTICLE III – PAYROLL DUES DEDUCTION .................................................................... 4 ARTICLE IV – WORK STOPPAGE AND LOCKOUTS ........................................................ 4 ARTICLE V – CITY RIGHT TO MANAGE ............................................................................ 4 ARTICLE VI – Compensation .................................................................................................... 5 Section 1 – Job Families and Salary Schedule ............................................................................ 5 Section 2 – Base Salary Increases ............................................................................................... 5 Section 3 – Market Based Adjustments ...................................................................................... 6 Section 4. Working Above Classification ................................................................................... 6 Section 5. Engineers in Responsible Charge .............................................................................. 7 Section 6. Standby Compensation .............................................................................................. 7 Section 7. Utility Cost Efficiency Incentive Pilot Program ........................................................ 7 ARTICLE VII – HEALTH BENEFITS ..................................................................................... 7 Section 1 – Group Insurance ....................................................................................................... 7 Article VIII – Deferred Compensation Match ......................................................................... 10 ARTICLE IX – LEAVES ........................................................................................................... 11 Section 1 – Sick Leave .............................................................................................................. 11 Section 2 – Management Annual Leave ................................................................................... 11 Section 3 – Vacation ................................................................................................................. 12 Section 4 – Bereavement .......................................................................................................... 12 Section 5 – All Other Leaves .................................................................................................... 13 Section 6 – Vacation Benefits for Deceased Employees .......................................................... 13 Section 7 – Voluntary Leave Program ...................................................................................... 13 ARTICLE X – WORKERS’ COMPENSATION .................................................................... 13 Section 1 – Employees unable to work due to occupational injury, illness or disease ............. 13 Section 2 – Temporary Disability ............................................................................................. 14 ARTICLE XI – RETIREMENT PENSION ............................................................................. 14 ARTICLE XII – MISCELLANEOUS ...................................................................................... 15 Section 1 – Reimbursement for Relocation Expense ................................................................ 15 Section 2 – Meal allowance ...................................................................................................... 15 Section 3 – Reduction in Workforce...................................................................................... 15 Section 4 - Contracting Out ...................................................................................................... 16 Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 3 Section 5- Association Security ................................................................................................ 16 Section 6- Notification to the Association ................................................................................ 16 Section 7- Association Representative Access to Work Locations .......................................... 17 Section 8- Release Time ........................................................................................................... 17 Section 9- Personnel Files ......................................................................................................... 17 ARTICLE XIII – GRIEVANCE PROCEDURE ..................................................................... 17 Section 1 - General Provisions .................................................................................................. 17 Section 2 – Definitions.............................................................................................................. 17 Section 3 - Conduct of Grievance Procedure ............................................................................ 17 Section 4 - Grievance and Appeal Procedure ........................................................................... 18 ARTICLE XIV – FULL UNDERSTANDING ......................................................................... 19 Section 1 – Full Understanding................................................................................................. 19 Section 2 – Severability ............................................................................................................ 19 Section 3 – Good Faith ............................................................................................................. 19 Section 4 – Mid-Contract Negotiations .................................................................................... 20 Section 5 – Merit System .......................................................................................................... 20 ARTICLE XV-DURATION ...................................................................................................... 20 Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 4 PREAMBLE This memorandum of Agreement between the City of Palo Alto, hereinafter referred to as the “City”, and the Utilities Management and Professional Association of Palo Alto (UMPAPA), hereinafter referred to as the “Association” or “UMPAPA”, has been prepared and entered into in accordance with Title I, Division 4, Sections Chapter 10, 3500-3510 of the California government Code and Chapter 12 of the City of Palo Alto Merit System Rules and Regulations. ARTICLE I – RECOGNITION The City recognizes the Association as the exclusive representative of employees occupying positions in the bargaining unit certified by the City in accordance with the decision of Arbitrator Kagel dated April 13, 2011. ARTICLE II – NO DISCRIMINATION The Association and the City hereby agree that there shall be no discrimination because of race, color, age, handicap, sex, national origin, sexual or gender orientation, political or religious affiliation under this Agreement. There shall be no discrimination in employment conditions or treatment of employees on the basis of membership or non-membership in the Association, or participation in the lawful activities of the Association. ARTICLE III – PAYROLL DUES DEDUCTION The City shall deduct Association member dues, and any other mutually agreed upon payroll deduction from the bi-weekly pay of bargaining unit employees. The dues deduction must be authorized in writing by the employee on an authorization form acceptable to the City and to the Association. City shall remit the deducted dues to the Association as soon as possible after deduction. ARTICLE IV – WORK STOPPAGE AND LOCKOUTS The Association, its representatives or members shall not engage in, cause, instigate, encourage, sanction or condone a work stoppage or sympathy work stoppage, withholding of services, leave of absence abuse or work slowdown of any kind against the City of Palo Alto or its citizens by its members during the term of this MOA. No Association member shall refuse to cross any picket line in the conduct of the Utility business, nor shall the Association, its representatives or members discriminate in any way towards anyone who refuses to participate in a work stoppage or any of the job actions cited above. The City agrees that it will not lock out Association members. ARTICLE V – CITY RIGHT TO MANAGE The City retains and reserves, without limitation, all powers, rights, authority, duties, and responsibilities to manage the City as stated in the City Merit Rules, Chapter 12, Section 1207(d). Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 5 Nothing in this Agreement is to be interpreted as constituting a waiver of the City’s rights and responsibilities to manage the City and create and maintain programs and services that reflect its public's wishes. The intent of this MOA is to establish wages, working hours, and conditions of employment with the Association. ARTICLE VI – Compensation Section 1 – Job Families and Salary Schedule Effective the first full pay period following adoption of this Memorandum by Council, all salaries of covered classifications shall be as listed in Appendix A. Appendix A shall clearly outline benchmark classifications for future total compensation surveys and for the purposes of internal alignment of the Association job families and career paths. The parties agree to continue a jointly-staffed benchmark committee. All recommendations or research conducted by the committee will be included in the next bargaining process. Section 2 – Base Salary Increases a) General Salary Increase: Effective the first full pay period following the later of July 1, 2025 or the adoption of the MOA, salary ranges and salaries of all represented classifications will be increased by three percent (3.0%). b) Market Adjustment: Effective the first full pay period following the later of July 1, 2025 or the adoption of the MOA, salary ranges and salaries of all classifications in the Manager, Utilities Strategic Business Services (Admin) job family will be increased by seven tenths of a percent (0.7%). Effective the first full pay period following the later of July 1, 2025 or the adoption of the MOA the following classifications will receive targeted market adjustments in the amount of six percent (6.0%): • Principal Electrical Engineer • Manager, Electrical Engineering Effective the first full pay period following the later of July 1, 2025 or the adoption of the MOA the following classifications will receive targeted market adjustments in the amount of four percent (4.0%): • Principal WGW Engineer • Manager, WGW Engineering c) General Salary Increase: Effective the first full pay period following July 1, 2026 salary ranges and salaries of all represented classifications will be increased by three percent (3.0%). Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 6 d) General Salary Increase: Effective the first full pay period following July 1, 2027 salary ranges and salaries of all represented classifications will be increased by three percent (3.0%). e) Effective July 2023, and in lieu of additional increases to the City’s medical premiums, hourly wages for all bargaining unit classifications will be increased by $100 per month ($1200 per year). Employees can utilize this cash payment for any purpose, including to cover health insurance premiums or contribute to flexible spending accounts/457 deferred compensation plans. f) Effective the first pay period of January 2024, all classifications will receive an additional one hundred dollars ($100) monthly flexible compensation payment built into base hourly rate of pay. Section 3 – Market Based Adjustments Within the Term of this Agreement, the City will conduct a total compensation study of UMPAPA Benchmarked positions based on the following agencies: Alameda Anaheim Burbank East Bay MUD Long Beach Mountain View Pacific Gas and Electric Redwood City Roseville Sacramento MUD San Jose Santa Clara Silicon Valley Clean Energy Sunnyvale The City’s total compensation study will include a geographic adjustment for agencies which are outside of the immediate region. Those agencies receiving a geographic adjustment are: Anaheim, Burbank, Long Beach, Sacramento MUD and Roseville. For the purposes of recruiting and retaining employees within the Utility market place, the parties will add to the survey universe data from Pacific Gas and Electric (PG&E) Bay Area region where data can be found. For the term of this agreement, where PG&E data cannot be verified or acquired the parties agree to include an above-median comparator for the purposes of calculating benchmarks. The City’s survey is intended to provide a single source of information regarding compensation paid to bargaining unit employees and its comparison to compensation paid by other entities. The survey data does not obligate the City or the Association to propose or agree to any market-based adjustments. The next total compensation study will be started 180 days prior to expiration of this agreement. Effective the first full pay period following the adoption of the MOA, salary ranges identified classifications will be increased in an amount sufficient to bring them to market as determined by the City’s market study. Section 4. Working Above Classification Where covered employees, on a temporary basis, are assigned to perform all significant duties of a higher classification for a period of one pay period or more, the City Manager or designee may authorize payment within the range of the higher classification for the specified time frame. Working above classification will not exceed six months, unless renewed at the discretion of the City Manager or designee. On expiration of that timeframe, working above classification pay will cease and the employee will return to their former Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 7 pay level. Working above classification pay is not to exceed 10% more than the employee’s current salary and shall be documented on a Personnel Action Form, with a description of the additional duties in the higher classification to be performed and an end date. Any disputes with the application of this provision shall be subject to Chapter 11 of the City’s Merit Rules. Section 5. Engineers in Responsible Charge Principal Engineers designated as engineers in responsible charge shall receive working above classification pay as defined in Section 4 above. Section 6. Standby Compensation Utility Operations Supervisors in WGW or Electric who are assigned to standby duty shall be compensated at the daily rate of two (2) hours at their base hourly salary on days the employee is assigned to be on standby duty. Section 7. Utility Cost Efficiency Incentive Pilot Program The parties agree to continue the pilot program and its incentive pays for the term of the agreement. ARTICLE VII – HEALTH BENEFITS Section 1 – Group Insurance Except as otherwise set forth herein, the City will maintain the present level of benefits on all City- sponsored medical programs. a) Effective Date of Coverage For newly-hired regular employees coverage begins on the first day of the month following submission of new hire forms for the health plan, dental plan, vision care plan, long term disability and life insurance plans if these benefits are elected. City health premium contributions (medical, dental and vision) are prorated for part-time employees based on the number of hours per week the part-time employee is assigned to work. b) Active Employee Health Coverage During the term of this MOA, the maximum City contribution towards medical premiums for eligible full time employees per employee category shall be the following for any plan: Medical Premium Category Total Maximum City Contribution (inclusive of PEMHCA contribution*) Effective the later of July 1, 2025 or the adoption of the MOA. EE only $943 EE plus one $1885 EE plus family $2444 Effective January 1, 2027, the City will increase its maximum contribution to medical premiums by the Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 8 following percentages: • Employee only: 2% • Employee plus one: 3% • Employee family: 5% Medical Premium Category Total Maximum City Contribution (inclusive of PEMHCA contribution*) Effective January 1, 2027 or the adoption of the MOA. EE only $962 EE plus one $1942 EE plus family $2566 Effective January 1, 2028, the City will increase its maximum contribution to medical premiums by four percent (4%). Medical Premium Category Total Maximum City Contribution (inclusive of PEMHCA contribution*) Effective January 1, 2028 or the adoption of the MOA. EE only $1000 EE plus one $2020 EE plus family $2669 *For the duration of this MOA if the PEHMCA Minimum charges increase they will be included in the City’s maximum contribution and will not result in an increase to the City’s maximum contribution rates. c) Coverage for Domestic Partners. 1. Domestic Partnership Registered with the California Secretary of State: Employees may add their domestic partner as a dependent to their elected health plan coverage if the domestic partnership is registered with the Secretary of State. 2. Domestic Partner Not Registered with the California Secretary of State: Domestic partners who meet the requirements of the City of Palo Alto Declaration of Domestic Partnership, and are registered with the Human Resources Department, will be eligible for a stipend of two hundred and eighty four dollars ($284) per month toward the cost of an individual health plan. Evidence of premium payment will be required with request for reimbursement. d) Alternative Medical Benefit Program If a regular employee and/or the employee’s dependent(s) are eligible for medical insurance through another employer-sponsored or association medical plan, the employee may opt for alternative medical insurance coverage through the other employer-sponsored or association plan and waives their right to the City of Palo Alto’s medical insurance coverage for same individuals. Employees waiving City coverage may receive a stipend of $284 per month Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 9 e) Retiree Health Plan a. Employees Hired Prior to January 1, 2004 Monthly City-paid premium contributions for a retiree-selected health plan through the CalPERS Health Benefits Program will be made as provided under the Public Employees' Medical and Hospital Care Act. The City's contribution for an employee hired before January 1, 2004 and whose retirement date is on or after May 1, 2011 shall be the same contribution amount it makes from time to time for active City employees. b. Post - 1/1/04 Hires Government Code section 22893 applies to those Unit members hired after January I, 2004, and provides that, upon retirement from the City an employee is eligible for 50% of the specified employer health premium contribution after ten (10) years of service credit, provided at least five of those years were performed at the City of Palo Alto. After ten years of service credit, each additional service credit year increases the employer contribution percentage by 5% until, at twenty (20) years' service credit; the employee will be eligible upon retirement for 100% of the specified employer contribution and 90% of the contribution for their dependent coverage. The City of Palo Alto's health premium contribution for eligible post - 1/1/04 hires shall be the minimum contribution set by PERS under section Government Code section 22893. For employees hired prior to January 1, 2004 who wish to opt in to Government code section 22893, the City provided a 90 calendar day period, in which employees hired prior to January 1, 2004 will have the opportunity to opt in to Government code section 22893. For a 90 day period following adoption of this agreement by Council, the City will offer a one-time opt in to Government code section 22893 for employees hired prior to 12/1/2013. f) Dental Plan 1. The City shall pay covered plan charges on behalf of all eligible employees and dependents. Dependents include eligible domestic partners as defined in Section 1 subsection c of this Article VII, Health Benefits. 2. The City provides a base dental plan for all eligible employees and dependents. Eligible employees may enroll in a dental buy-up plan. The City shall pay all premium payments on behalf of employees and dependents who are eligible and enrolled for coverage under the base dental plan. g) Vision Care 1. Level of Benefits: The City provides a base vision plan for all eligible employees and dependents. Eligible employees may enroll in a vision buy-up plan. 2. Premiums: The City shall pay all premium payments on behalf of employees and dependents who are eligible and enrolled in coverage under the base vision plan. Employees are responsible for premium payments required to enroll in the buy-up vision plan. 2. Dependents include eligible domestic partners as defined in Section 1, Subsection c of this Article VII, Health Benefits. Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 10 h) No dual coverage for dental and vision benefits. When a City employee is married to or has a registered domestic partner with the California Secretary of State with another City employee, each shall only be covered once. (as an individual or as a spouse of the other City employees, but not both) and dependent children, if any, shall be covered by only one spouse. i) Basic Life Insurance The City shall provide a basic group term life insurance with Accidental Death and Dismemberment (AD&D) coverage, in an amount equal to the employee's annual basic pay (rounded to the next highest $1,000) at no-cost to the employee. AD&D pays an additional amount equal to the employee’s annual basic pay (rounded to the next highest $1,000). j) Supplemental Life And AD&D Insurance An employee may, at their cost, purchase additional life insurance and additional AD&D coverage equal to one- or two-times his or her annual salary. The maximum amount of life insurance available to the employee is up to $325,000 and the maximum amount of AD&D coverage available is up to $325,000. k) Long Term Disability Insurance The City shall provide long term disability (LTD) insurance with a benefit of 2/3 monthly salary, up to a maximum benefit of ten thousand dollars ($10,000) per month. The LTD plan will have a waiting period of sixty days, as provided by the applicable carrier agreement. The City shall pay the premium for the first six thousand dollars ($6,000) of base monthly salary. For employees whose base monthly salary exceeds six thousand dollars ($6,000), the employee shall pay the cost of the required premium based upon their monthly salary between six thousand dollars ($6,000) and fifteen thousand dollars ($15,000). l) Employee Assistance Plan The Employee Assistance Plan (EAP) provides employees with confidential personal counseling, work and family related issues, eldercare, substance abuse, etc. In addition, EAP programs provide a valuable tool for supervisors to refer troubled employees to professional outside help. This service staffed by experienced clinicians is available to employees and their dependents by calling a toll-free phone line twenty-four (24) hours a day, seven days a week. Guidance is also available online. Article VIII – Deferred Compensation Match The City will match employee contributions into their City-approved 457 plans up to a maximum of $4000. No combination of Employee and Employer funds can exceed the IRS limits for City approved 457 plans. The table below is for illustrative purposes only: Employee Contribution Employer Matching Contribution $1,000 $2,500 $1,000 $2,500 Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 11 $4,000 $4,000 $11,000 $4,000 ARTICLE IX – LEAVES Section 1 – Sick Leave a) Sick leave shall be accrued bi-weekly provided the employee has been in a pay status for 50 percent or more of a bi-weekly pay period. Sick leave shall be accrued at the rate of 3.7 hours per bi-weekly pay period for those employees working a forty-hour duty schedule. Those assigned work schedules, which are greater or lesser than forty hours will accrue sick leave at the ratio of their work schedule to forty hours. b) Employees may use up to thirty (30) hours of sick leave per calendar year for personal business. The scheduling of such leave is subject to the approval of the appropriate level of Management. c) Employees leaving the municipal service shall forfeit all accumulated sick leave, except as otherwise provided by law and by Section 609 of the Merit Rules and Regulations. In the event that notice of resignation is given, sick leave may be used only through the day which was designated as the final day of work by such notice. d) Employees that were hired before December 1, 1983 and who leave the municipal service in good standing, or who die while employed in good standing by the city, and who have fifteen or more years of continuous service shall receive compensation for unused sick leave hours in a sum equal to two and one-half percent of their unused sick leave hours multiplied by their years of continuous service and their basic hourly rate of pay at termination. Full sick leave accrual will be paid in the event of termination due to disability. See Merit System Rules and Regulations, Chapter 6, Section 609. e) Sick leave may be used for illness in the immediate family, including a registered domestic partner or other individuals required by law. f) Employees eligible, as specified above if hired before December 1, 1983, to be compensated for sick leave may annually convert sick leave hours in excess of 600 to cash or deferred compensation, according to the formula set forth above, up to a maximum of $2,000 per fiscal year. Section 2 – Management Annual Leave At the beginning of each calendar year designated exempt employees will be credited with 80 hours of management annual leave. This leave is granted in recognition of the extra hours exempt employees work over their regular schedule. This leave may be taken as paid time off, added to vacation accrual (subject to vacation accrual limitations), taken as cash or taken as deferred compensation. When time off is taken under this provision, 10-hour shift workers will receive one shift off for each 8 hours charged. Entitlement under this provision will be reduced on a prorated basis for part-time status, or according to the number of months in paid status during the fiscal year; employees who have used more than the pro-rated share at the time they leave City service shall be required to repay the balance or have it deducted from their final check. Unused balances as of the end of the calendar year will be paid in cash unless a different option as indicated above is elected by the employee. Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 12 Section 3 – Vacation Vacation is accrued when an employee is in pay status and is credited on a bi-weekly basis. Total vacation accrual at any one time may not exceed three times the annual rate of accrual. Each eligible employee shall accrue vacation at the following rate for continuous service performed in pay status: a) Less than nine years. For employees completing less than nine years continuous service: 120 hours vacation leave per year; provided that: The City manager is authorized to adjust the annual vacation accrual of employees hired on or after July 1, 2001, to provide up to 40 additional hours (i.e., to a maximum annual accrual of 160 hours) for service with a prior employer. b) Nine, but less than fourteen years. For employees completing nine, but not more than fourteen years continuous service; 160 hours vacation per year. c) Fourteen, but less than nineteen years. For employees completing fourteen, but not more than nineteen years continuous service; 180 hours vacation leave per year. d) Nineteen or more years. For employees completing nineteen or more years continuous service; 200 hours vacation leave per year. e) Employees are eligible to cash out vacation accrual balances in excess of 80 hours. An employee may cash out a minimum of eight (8) hours to a maximum of 120 hours of accrued vacation provided the employee has taken 80 vacation hours in the previous 12 months and has followed the election procedures set forth in this section. Employees must elect the number of vacation hours they will cash-out during the next calendar year, up to the maximum of 120 hours. The election will apply only to vacation hours that are accrued in the next calendar year and that are eligible for cash-out. The election to cash-out vacation hours in each designated year will be irrevocable. This means that employees who elect to cash-out vacation hours must cash-out the number of accrued hours pre- designated on the election form. Employees who do not elect a cash-out amount by December 31 of the prior calendar year will be deemed to have waived the right to cash out any leave in the following tax year and will not be eligible to cash-out vacation hours in the next tax year. Employees who elect cash-out amounts may request a cash-out at any time in the designated tax year by submitting a cash-out form to payroll. Payroll will complete the cash-out upon request, provided the requested cash-out amount has accrued and is consistent with the amount the employee pre-designated. If the full amount of hours designated for cash-out is not available at the time of cash-out request, the maximum available will be paid. For employees who have not requested cash-out of the elected amount by November 1 of each year, Payroll will automatically cash-out the elected amount, or the maximum available amount, in a paycheck issued on or after the payroll date including November 1. Section 4 – Bereavement Leave of absence with pay of three (3) days may be granted to an employee by the head of their department in the event of death in the employee’s family, which is defined for purposes of this section as: Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 13 wife husband son son-in-law daughter daughter-in-law father mother brother brother-in-law sister adopted child sister-in-law mother-in-law father-in-law step-father step-mother step-sister step-brother grandfather grandfather-in-law grandmother grandmother-in-law uncle aunt niece nephew registered domestic partner close relative residing in the household of the employee Such leave shall be at full pay and shall not be charged against the employee’s accrued vacation or sick leave. Employees may supplement paid bereavement leave with accrued leave (including vacation or sick leave) or unpaid leave to reach a total of five (5) workdays of time off per incident of bereavement. Requests for leave in excess of five (5) days shall be subject to the approval of the City Manager or their designee. Section 5 – All Other Leaves For all other leaves of absence refer to Chapters 5 and 8 of the City’s Merit Rules and Regulations. Section 6 – Vacation Benefits for Deceased Employees An employee who is eligible for vacation leave and who dies while in the municipal service shall have the amount of any accrued vacation paid to the employee's estate within thirty days. This proration will be computed at the last basic rate of pay. Section 7 – Voluntary Leave Program If permitted by agreement between the City and the Association, members of the Association may participate in the "Voluntary Leave Program" to assist in maintaining the pay of an employee who is eligible by virtue of a qualifying catastrophic medical condition. Such participation, when authorized by City- Association agreement, shall be allowed only as long as the donors remain anonymous (unless disclosure is required by law). Section 8 Floating Holiday – Days of Historical Significance Employees will be provided one floating holiday each calendar year in acknowledgement of days of historical significance. The employee with prior approval from their supervisor can use this floating holiday at any time during the year. This holiday has no cash value and will expire if unused. ARTICLE X – WORKERS’ COMPENSATION Section 1 – Employees unable to work due to occupational injury, illness or disease Employees unable to work due to occupational injury, illness or disease will be required to report to management to discuss their status and ability to return to work on restricted or unrestricted duty, subject to the limitations imposed by applicable law. This requirement is not meant to unreasonably restrict employee’s activities while off work due to such incapacity as long as such activities are cleared by the treating physician, treating program or alternative treatment program and the employee is available for restricted or unrestricted duty as soon as medical clearance can be received. Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 14 Section 2 – Temporary Disability While temporarily disabled, employees shall be entitled to use accrued sick leave for the first three (3) days following the date of injury and thereafter shall be paid full base salary for a period not to exceed fifty-seven (57) calendar days (including Saturdays, Sundays and Holidays), unless hospitalized, in which case employees shall be paid full base salary for a period not to exceed sixty (60) days from date of injury. For any temporary disability continuing beyond the time limits set forth above, employees shall be paid two-thirds (66.66%) of their full base salary at the time of injury for the duration of such temporary disability in conformance with State law. During the period of temporary disability, an employee’s eligibility for health, dental, life, LTD, or other insured program will continue with City contributions at the same rate as for active employees and vacation and sick leave benefits shall continue to accrue. In case of temporary disability beyond the time limits set forth above, sick leave and vacation benefits shall not be accrued. ARTICLE XI – RETIREMENT PENSION a) Employees hired before July 17, 2010 1. Retirement formula. Effective pay period inclusive of 1/6/07, the City’s Public Employees’ Retirement System (PERS) benefits changed to the 2.7%@ 55 formula for non-safety members (from 2% @55). 2. Employee contributions. Employees under the 2.7%@55 retirement formula will pay the full eight percent (8%) employee contribution. 3. Final compensation. Final compensation for purposes of retirement shall be as set forth in the City’s contract with CalPERS, including, when applicable, the Government Code Section 20692 Optional Benefit. b) Employees hired on or after July 17, 2010. 1. Retirement formula. For miscellaneous employees hired on or after July 17, 2010, or on or after January 1, 2013 who are not subject to the pension formula in the Public Employees’ Pension Reform Act (PEPRA), the City offers the CalPERS retirement formula two percent (2.0%) of final salary at age sixty (60). 2. Employee contributions. Employees under the 2%@60 retirement formula will pay the full seven percent (7%) employee contribution. 3. Final compensation. Final compensation for purposes of retirement shall be as set forth in the City’s contract with CalPERS, including, when applicable, the Government Code Section 20692 Optional Benefit or as required by law. c) New Employees hired on or after January 1, 2013 Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 15 Employees hired on or after January 1, 2013 who are “new members” as defined by the California Public Employees’ Pension Reform Act (PEPRA), will be subject to the terms of that statute including but not limited to the following provisions: 1. Retirement formula. Effective for employees hired on or after January 1, 2013, the PEPRA requires the City to provide new employees, as defined in that law, the CalPERS retirement formula two percent of final salary at age 62 (2%@62). 2. Employee contributions. Employees under the 2%@62 formula shall pay at least 50 percent of the total normal cost or the same contribution rate as “similarly situated” employees, whichever is higher. 3. Final compensation. Final compensation for employees under the 2%@62 benefit shall be as set forth in PEPRA, including calculation based on the average of three highest consecutive years and a cap on pensionable compensation (currently $136,440) based on IRS limits for employers that do not participate in social security. d) Effective as soon as administratively feasible but no sooner than the first full pay period of March 2019, bargaining unit employees shall contribute 1% of their salary toward the employer cost of retirement. Pensions Group Pension Formula Employee Contribution Contribution to Employer Side Total Contribution from Employees Group A 2.7@ 55 8% 1% 9% Group B & C 2@60 7% 1% 8% Group D 2@62 50% of the normal Cost (Currently 6.25%) 1% Will fluctuate (Currently 7.25%) e) Employee CalPERS contributions tax deferred. Employee CalPERS contributions shall be made on a tax deferred basis, in accordance with Section 414(h)(2) of the Internal Revenue Code. All provisions of this subsection are subject to and conditioned upon compliance with IRS regulations. ARTICLE XII – MISCELLANEOUS Section 1 – Reimbursement for Relocation Expense The City of Palo Alto, in rare instances, may, provide a Basic Relocation Benefits Package for new employees, upon the approval of the City Manager or designated subordinate. In addition, the provision of “Optional Benefits”, or portions thereof, may be extended for exceptional circumstances and only by approval of the City Manager or designee. The details of the Relocation Expense program are specified in the City’s Relocation Expense policy. Section 2 – Meal allowance Employees assigned to attend night meetings or who travel for business purposes are eligible to receive reimbursement as described by City policy. This provision covers only receipted meals actually taken and submitted for reimbursement. Section 3 – Reduction in Workforce Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 16 The City will make every effort to provide written notice of its intent to lay off employees in this unit and will meet with Association upon request to discuss alternatives to layoff. Section 4 - Contracting Out a. As provided in subsection b, the City shall provide notice of any planned action(s) that would result in the layoff of one or more Association bargaining unit members and where either of the following apply: 1. The planned City action(s) is to contract out work historically and exclusively performed by Association bargaining unit members; 2. The planned City action is to substantially increase the scope or amount of work historically but not exclusively performed by Association bargaining unit members (e.g. work shared with other City employees outside the Association bargaining unit or contractors). b. The City shall deliver written notice to the Association at least thirty (30) days before it implements any action(s) described in subsection a. Within seven (7) days after it receives such notice, the Association may deliver to the City’s Chief People Officer a written request to meet and discuss the effects of the City action(s). After the City’s receipt of such request, the parties will promptly meet and undertake discussions. The discussions will conclude no later than the thirtieth (30th) day following the Association’s receipt of the City’s notice of the planned action(s), as described above. Thereafter, the City may implement the action(s) without further discussion as originally planned or as modified as a result of such discussions. If the Association does not deliver timely notice of its desire to meet and discuss the effects of the action(s) identified in the City’s notice, the City may proceed with the planned action(s). c. The City retains its right to determine the methods, means, and personnel by which services are carried out at its sole discretion in circumstances no covered by subsection a above. Section 5- Association Security a) When a person is hired in any of the covered job classifications, the City shall notify that person that the Association is the recognized bargaining representative for the employee in said Association and give the employee a current copy of the Memorandum of Agreement. b) Members of the Association Board may use a reasonable amount of on-duty time without loss of pay to meet with the City specifically related to representation of employees. For purposes of this section, representation shall include: (i) Meetings with represented employees or the City related to a grievance or disciplinary action, including investigation and preparation time. (ii) Any meeting with the City related to benefits, working conditions or other terms and conditions of employment. Section 6- Notification to the Association The Association shall be informed in advance in writing by the City before any proposed changes not covered by this Memorandum of Agreement are made in benefits, working conditions, or other terms and conditions of employment which require meet and confer or meet and consult process. Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 17 Section 7- Association Representative Access to Work Locations Employee and nonemployee representatives of the Association will be granted access to City work locations to conduct business related to the administration or negotiation of the parties' Memorandum of Agreement, as long as advance arrangements for such visits have been made with the affected department manager and no disruption of work occurs. Section 8- Release Time The Association Chair, Vice-Chair or their designee in the representation unit may use a reasonable amount of time without loss of pay for matters related to the bargaining process, labor relations, and administration of the MOA, violations of the MOA, grievances, disciplinary Section 9- Personnel Files Records of all disciplinary actions shall be kept in the central personnel file. Employees shall be entitled to sign and date any action forms in their personnel files. Employees are entitled to review their personnel files upon written request or to authorize, in writing, review by their Association representatives. An employee shall be allowed, copies of materials in their personnel file. ARTICLE XIII – GRIEVANCE PROCEDURE Section 1 - General Provisions The City and the Association recognize that early settlement of grievances is essential to sound employee-employer relations. The parties seek to establish a mutually satisfactory method for the settlement of Association grievances as provided for below. In presenting a grievance the aggrieved and/or their representative is assured freedom from restraint, interference, coercion, discrimination or reprisal. Section 2 – Definitions Grievance means an unresolved complaint or dispute regarding the interpretation or application of this Memorandum of Agreement, excluding however those provisions of this MOA which specifically provide that the decision of any City official shall be final, the interpretation or application of those provisions not being subject to the grievance. Section 3 - Conduct of Grievance Procedure a) An aggrieved employee may be represented by the Association or may represent themselves in preparing and presenting a grievance at any level of review. No grievance settlement may be made in violation of an existing merit rule or memorandum of agreement. b) An employee and the representative steward, if any, may use a reasonable amount of work time so long as there is no disruption of work, in conferring about and presenting a grievance. Requests for release time to prepare grievances shall be made in advance and approved by the immediate supervisor. c) The time limits specified in this Article may be extended by mutual agreement in writing of the aggrieved employee or the Association and the reviewer concerned. d) Should a decision not be rendered within a stipulated time limit, the grievant may immediately appeal to the next step. Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 18 e) The grievance shall be considered settled if the decision of any step is not appealed within the specified time limit. f) Grievances shall be made in writing and submitted on forms provided by the City. The written grievance shall contain clear, factual and concise language, including: (1) the name of the grievant; (2) a statement of the facts upon which the grievance is based, including relevant dates, times and places; (3) specific provisions of this Agreement the grievant alleges has been violated; (4) a summary of any steps taken toward resolution; and (5) the action the grievant believes will resolve the grievance. g) Any retroactivity on monetary grievances shall be limited to the date of occurrence, except in no case will retroactivity be granted prior to three months before the grievance was filed in writing. h) For purposes of time limits, “working days” are considered to be Monday through Friday, exclusive of City holidays. i) If a mutually agreed solution is reached during any step of this grievance procedure, the agreement shall be placed in writing and signed by the City and the grievant or Association. j) Upon request of either party, meetings to discuss the grievance shall be held at any step in the grievance procedure. Section 4 - Grievance and Appeal Procedure Step I. Informal Discussion Within fifteen (15) working days after the incident or discovery of the incident on which the grievance is based the aggrieved employee shall present the grievance action to their immediate supervisor and attempt to resolve the grievance through informal discussions. Every attempt will be made to settle the issue at this level. Step II. Formal Grievance If the grievance is not resolved through the informal discussion in Step 1 the employee will reduce the grievance to writing and submit copies to the Department head or their designee within fifteen (15) working days of the discussion with the immediate. The Department Head or designee shall have fifteen (15) working days from the receipt of a written grievance to review the matter and prepare a written statement. Step III. Human Resources Director If the grievance is not resolved and/or the aggrieved employee is not satisfied with the Step II decision, the grievant may appeal to the Human Resource Director or their designee in writing within fifteen (15) working days of the receipt of the Department Head's response. The written appeal to the Human Resources level shall include a copy of the original grievance, the Department Head’s decision at Step II, and a clear statement of the reasons for appeal. Within fifteen (15) working days, after receiving the written appeal, the Human Resource Director shall review the matter and prepare a written statement. If a mutually agreed solution is reached during this process the agreement shall be placed in writing and signed. Step IV. City Manager /Arbitration Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 19 If the grievance is not resolved at Step III, the aggrieved employee may choose between final and binding resolution of the grievance through appeal to the City Manager or through appeal to final and binding arbitration. For the term of this Memorandum of Agreement, appeals to final and binding arbitration may be processed only with Association approval. All Step IV appeals must be filed in writing at the Human Resources Department Office within fifteen (15) working days of receipt of the Human Resource Director’s decision at Step 3. If the grievant or appellant elects final and binding resolution by the City Manager, the City Manager will choose the methods they consider appropriate to review and settle the grievance. The City Manager shall render a written decision to all parties directly involved within fifteen (15) working days after receiving the grievant/appellant’s appeal. If the grievant/appellant elects final and binding arbitration in accordance with this provision, the parties shall mutually select an arbitrator. In the event the parties cannot agree on an arbitrator, they shall mutually request a panel of five arbitrators from the California State Conciliation Service or from the American Arbitration Association if either party objects to the State Conciliation Service, and select an arbitrator by the alternate strike method. The arbitrator shall have jurisdiction and authority only to interpret, apply, or determine compliance with the provisions of this Memorandum of Agreement. The arbitrator shall be without power to make any decision contrary to, or inconsistent with or modifying in any way, the terms of this Memorandum Of Agreement. The arbitrator shall be without authority to require the City to delegate or relinquish any powers which by State law or City Charter the City cannot delegate or relinquish. Copies of the arbitrator's decision shall be submitted to the City, the aggrieved employee and the Association. All direct costs emanating from the arbitration procedure shall be paid in full by the party in which the decision was found against. ARTICLE XIV – PERFORMANCE EVALUATIONS Performance evaluations for represented employees shall be conducted in accordance with processes defined in the City’s Management and Professional Compensation Plan. ARTICLE XV – FULL UNDERSTANDING Section 1 – Full Understanding The Memorandum of Agreement contains the full and entire understanding of the parties regarding the matters set forth herein. Section 2 – Severability If, at the conclusion of any applicable appeals, any provision of this Memorandum of Agreement is ultimately held invalid and unenforceable by a decision of the relevant Court or Administrative Agency of competent jurisdiction such holding shall apply only to the provision(s) of this Memorandum of Agreement specified in the decision. Such decision shall not invalidate any other portion of this Memorandum of Understanding, and the unaffected provisions shall remain in full force and effect. The Parties agree that within ten (10) days after the date of such decision, they shall meet and confer in an effort to negotiate a substitute for the invalidated provision(s). Section 3 – Good Faith Ordinances, resolutions, rules and regulations enacted pursuant to this Memorandum of Agreement that regulate matters within the scope of representation shall, to the extent they are within the scope of representation, be administered in good faith. Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 20 Section 4 – Mid-Contract Negotiations Subjects within the scope of representation that are not covered by this Memorandum of Agreement remain subject to the duty to meet and confer in good faith on timely notice and request. Neither party is obligated to meet and confer over matters within the scope of representation covered by this Memorandum of Agreement, except for purposes of negotiating over the terms of a successor to this Memorandum of Agreement. Section 5 – Merit System Merit System Rules and Regulations, during the term of this Memorandum of Agreement, Management may propose certain changes in the City Merit System Rules and Regulations. With regard to such changes which pertain to the representation unit, the parties agree to review, and upon request, meet and confer regarding the changes. ARTICLE XVI - DURATION This Memorandum of Agreement shall become effective once the Memorandum of Agreement is signed by the parties hereto and adopted by the City Council. This Memorandum of Agreement shall remain in effect through June 30, 2028. At the request of either party negotiation of a successor agreement shall commence, however they should begin no sooner than 6 months prior to expiration of this agreement and no later than 3 months prior to the expiration of this agreement. For the City: For the Association: __ ______ Ed Shikada, City Manager Aaron Perkins, Principal WGW Engineer __ ______ Sandra Blanch, Human Resources Director Jim Pachikara, Principal Electrical Engineer __ Tori Anthony, Manager Employee Relations Dave Yuan, Utilities Strategic Business Manager __ Ben Farnsworth, Sr HR Administrator Kevin Enderby, Principal Business Analyst __ _______________________________________ Sandhya Uthup, HR Representative Abel Silva, Supervisor WGW Operations _______________________________________ Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 21 Alan Davis, UMPAPA Outside Counsel Appendix A Benchmark Classifications and Salary Schedule Division Classifications in Job Family Resource Planning Assistant Director, Utilities Resource Management Senior Resource Planner Manager, Utilities Program Services Electric & Fiber Utilities Assistant Director, Electric and Fiber Optic Utilities Manager, Engineering, Electric and Fiber Utilities Manager, Operations - Electric and Fiber Utilities Manager, Utilities Compliance Principal Engineer, Electric and Fiber Utilities Operations Supervisor, Electric and Fiber Utilities Supervising Project Engineer, Electric and Fiber Utilities Manager, Fiber Optic Utility Utilities Safety Officer Water, Gas Wastewater Utilities Assistant Director, Water-Gas-Wastewater (WGW) Utilities Manager, Engineering, WGW Utilities Manager, Operations - WGW Utilities Principal Engineer, WGW Utilities Operations Supervisor, Water-Gas-Wastewater (WGW) Utilities Supervising Project Engineer, WGW Utilities Customer Support Assistant Director, Utilities Customer Support Services Manager, Utilities Credit & Collection Manager, Utilities Customer Service Admin Manager, Utilities Strategic Business Services Utilities Principal Business Analyst Utilities Management Analyst Manager, Utilities Public Communications Utilities Senior Business Analyst Utilities Senior Management Analyst Utilities Administrative Assistant *Benchmark Classifications in Bold Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 22 Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 23 COMPENSATION PLAN FOR Management and Professional Personnel And Council Appointees Effective December 31, 2022 through June 30, 2025July 1, 2025, except where specifically noted. 2 SECTION I. COMPENSATION ................................................................................................................ 4 A. MANAGEMENT AND PROFESSIONAL COMPENSATION POLICY ............................................ 4 B. BASIC PLAN ELEMENTS .......................................................................................................... 4 C. General Salary Increases ........................................................................................................ 5 D. Annual Performance Review and Merit Increases ................................................................ 6 E. Classification Compensation Review: .................................................................................... 7 SECTION II. SPECIAL COMPENSATION............................................................................................... 8 A. OVERTIME .............................................................................................................................. 8 B. Holiday ................................................................................................................................. 24 F. IN LIEU HOLIDAY PAY ............................................................................................................. 9 D. WORKING ABOVE CLASSIFICATION PAY ...................................................................................... 9 G. CALL OUT PAY ........................................................................................................................ 9 H. NIGHT SHIFT PREMIUM ....................................................................................................... 10 I. UNIFORM PURCHASE PLAN - SWORN POLICE, FIRE PERSONNEL, and OPEN SPACE PERSONNEL .................................................................................................................................... 10 J. SAFETY DIFFERENTIALS ........................................................................................................ 10 SECTION III. BENEFIT PROGRAMS ................................................................................................ 11 A. HEALTH PLAN ....................................................................................................................... 11 B. Employee Assistance Program ............................................................................................. 18 C. Excess Benefit ...................................................................................................................... 19 D. Professional Development ................................................................................................... 22 E. COMMUTE INCENTIVES and PARKING ..................................................................................... F. MEAL ALLOWANCE .............................................................................................................. 23 IV. LEAVES .......................................................................................................................................... 23 A. Sick Leave ............................................................................................................................. 23 B. Management Annual Leave ................................................................................................. 24 C. Vacation ............................................................................................................................... 26 D. Bereavement ........................................................................................................................ 27 V. RETIREMENT .................................................................................................................................. 28 E. Miscellaneous Pension Formulas: ........................................................................................ 28 F. Safety Pension Formulas: ..................................................................................................... 28 G. Employee PERS Share. ......................................................................................................... 29 H. Employer Share .................................................................................................................... 29 2 I. AT-WILL STATUS ....................................................................................................................... 30 J. HIRING PROVISIONS ............................................................................................................. 32 K. GRIEVANCES REGARDING COUNCIL APPOINTED OFFICERS ................................................ 33 L. MERIT RULES ........................................................................................................................ 33 Attachment B .................................................................................................................................................. 34 At-Will Positions Management and Professional Unit ................................................................................... 34 1 COMPENSATION PLAN FOR THE CITY OF PALO ALTO Management and Professional Personnel As used in this Plan, the term “Management and Professional” refers to all employees, including Confidential employees, previously classified as “Management and Confidential” by the City. This group will hereafter be identified as “Management and Professional” personnel.the employees within classifications listed in the Management and Professional Salary Schedule. SECTION I. COMPENSATION This section applies to all management and professional employees and does not include Council Members or Council-appointed officers. Each Council-appointed officer shall be the responsible decision-maker under this Plan for those employees in departments under his/hertheir control. A. MANAGEMENT AND PROFESSIONAL COMPENSATION POLICY The City's policy for management and professional compensation is to establish and maintain a general structure based on marketplace norms and internal job alignment with broad compensation grades and ranges. Structures and ranges will beare reviewed and updated as necessary based on marketplace survey data, internal relationships, and City financial conditions. Individual compensation adjustments will be considered by the Council-appointed officer based on (1) performance factors including achievement of predetermined objectives; (2) pay structure adjustments; and (3) City financial conditions. B. BASIC PLAN ELEMENTS 1. Structure. The compensation plan includes separate multi-grade structures for both management and professional employees. Each grade will have a salary range with a mid-point which is 20% above the minimum, and 20% below the maximum of the range. All management and professional positions classifications will beare assigned an appropriate pay grade range based on salary survey data and internal relationships. Actual salary within the range for individual employees is determined by experience and performance. 2. Compensation Adjustment Authorization. Council-appointed officers are authorized to pay salaries in accordance with this plan to non- Council-appointed management and professional employees within the City Council authorized salary schedule. 1 The Council-appointed officers are authorized to establish such administrative rules as are necessary to implement the Management and Professional Salary Plan subject to the limitations of the approved compensation adjustment authorization and the approved salary schedule. The City Manager may propose as part of the budget process for Council approval of a compensation adjustment based on (1) competitive market data, (2) changes in internal position relationships, (3) the City's ability to pay, and (4) a recommendation received from the Chief People Officer. Council-appointed officers are authorized to pay salaries in accordance with this plan to non-Council-appointed management and professional employees in an amount not to exceed the aggregate of approved management and professional positions in the Table of Organization for the applicable fiscal year. C. Effective the first pay period following Council adoption of this plan all classifications will receive market-based increases as outlined in the salary schedule. Each Council Appointed Officer will determine the method by which the market adjustment is applied to current employees within their authority. D. Effective the first full pay period following July 1, 2023, all classifications will receive a four percent (4%) salary increase. Effective the first full pay period following July 1, 2024, all classifications will receive a four percent (4%) salary increase. E. Effective the first pay period following Council adoption of this plan all classifications will receive a one hundred dollar ($100) monthly flexible compensation payment built into the base hourly rate of pay. Employees can utilize this cash payment to cover insurance premiums or contribute to Flexible spending accounts/457 deferred compensation plans. C. GENERAL SALARY INCREASES As part of the budget process and subject to for Council approval, of the City Manager may propose a compensation adjustment based on (1) competitive market data, (2) changes in internal position relationships, (3) the City's ability to pay, and (4) a recommendation received from the Human Resources Director. Effective the first full pay period following July 1, 2025, salary ranges and salaries of all classifications will be increased by three percent (3.0%). Effective the first full pay period following July 1, 2026, salary ranges and salaries of all classifications will be increased by three percent (3.0%). Effective the first full pay period following July 1, 2027, salary ranges and salaries of all 1 classifications will be increased by three percent (3.0%). Effective the first pay period of January 2024, all classifications will received an additional one two hundred dollars ($2100) monthly flexible compensation payment built into base hourly rate of pay. a) Base Compensation. Compensation for management and professional employees includes bi-weekly base salary and is paid on a continuing basis. On a fiscal year basis, the bi-weekly base salary must fall within pay grade limits of no less than 20% below the mid-point and no more than 20% above the mid-point. D. ANNUAL PERFORMANCE REVIEW AND MERIT INCREASES Base Individual base salary merit increases are earned and authorized in accordance with administrative practices based upon growth within the position, and performance, and which must meet or exceed position standards defined through the performance planning and appraisal process described in subsection b below, the salary structure and the City’s ability to payfinancial conditions. Merit pay adjustments are at the discretion of the Council- Appointed Officers and are at an amounts are set on an annual basis during the fiscal year budget process. Annually, performance appraisals will be conducted after the conclusion of the fiscal year for all employees who have been with the City for over one year. Employees in their first year as a Management and Professional employee with the City will receive their performance appraisal after 12 months. These appraisals will review the performance over the prior fiscal year and provide goals and expectations for the new fiscal year. Performance plans are jointly prepared by the employee and supervisor with the concurrence of the department head or Council-appointed officer. The performance plans shall contain measurable objectives which place special emphasis on position description duties or specific assignments. Progress toward meeting objectives shall be monitored periodically. Management/professional employees who have received an overall rating of "Meets", “Higher” or "Exceeds" expectationsof “meets expectations” or above on their annual review and who have not been on a performance improvement plan during the preceding fiscal year will be eligible for a Meritn adjustment increase to base compensation, if applicable for that year. Recommended ratings will be provided to Department Heads, the Human Resources Department, and the appropriate Council- Appointed Officer for final review. Nothing herein shall preclude an employee's manager from awarding recommending a mid- point adjustment increase to an employee on a performance plan at a later date should employee's performance improve. 1 E. CLASSIFICATION COMPENSATION REVIEW The City Classifications will be periodically surveyed classifications to determine their competitive market placement. The results of a total compensation study may indicate that a pay range be adjusted, or that no change takes place. Such adjustments may only affect the salary administration framework. No individual salaries will be automatically changed because of structural adjustments. A department director may request that Human Resources reevaluate a classification(s) in their department based on significant and permanent changes in job content. In doing so the director will supply needed information and will provide a position description questionnaire as requested. The Human Resources director or designee will respond to such requests within their discretion. Individual employees are not eligible to request a classification compensation review. Performance Planning and Appraisal. Performance appraisals will be conducted at the end of each fiscal year during the months of July through September 30 each year prior to determining individual employee fixed compensation. This process includes both review of previous performance plan and preparation of the performance plan for the next planning period (usually the fiscal year). Performance plans are jointly prepared by the employee and supervisor with the concurrence of the department head or Council-appointed officer. The performance plans shall contain measurable objectives which place special emphasis on position description duties or specific assignments. Progress toward meeting objectives shall be monitored periodically. The performance appraisals should be implemented in a manner that will achieve the following objectives: Define the employee’s job duties and expected level of performance for the next review period to ensure that both the employee and supervisor have a clear understanding of the employee’s role and responsibilities; Evaluate and document past performance to serve as a basis for establishing and obtaining future performance standards/objectives; Facilitate two-way communication and understanding between the employee and his or her supervisor; Counsel and encourage employees to work toward a learning development plan and realize their full potential; Establish future work plan objectives. Work plans should include job related projects or special goals related to regular job duties when applicable. At the conclusion of the fiscal year (or review period), supervisors shall make a final determination of the overall performance rating. Recommendations shall be forwarded to department heads and to the Chief People Officer or appropriate Council appointed officer who will then determine individual fixed adjustments according to the provisions of the compensation plan. Each department will ensure that metrics 1 tie to the performance appraisal. The performance planning and appraisal process should be completed by September 30. MANAGEMENT AND PROFESSIONAL COMPENSATION ADJUSTMENT AUTHORIZATION Council-appointed officers are authorized to pay salaries in accordance with this plan to non- Council-appointed management and professional employees in an amount not to exceed the aggregate of approved management and professional positions in the Table of Organization for the applicable fiscal year. Individual management and professional compensation authorized by a Council-appointed officer under the Management and Professional Compensation Plan may not be less than 20% below nor more than 20% above the mid-point for the individual position grades authorized in Salary Schedule attached. The Council-appointed officers are authorized to establish such administrative rules as are necessary to implement the Management and Professional Salary Plan subject to the limitations of the approved compensation adjustment authorization and the approved grade and mid-point structure. NNotwithstanding any other provision of this Compensation Plan, in the event a downward adjustment of a position grade assignment indicates a reduction in the established salary of an individual employee, the Council-appointed officer may, if circumstances warrant, continue the salary for such employee in an amount in excess of the revised grade limit for a reasonable period of time. Such interim salary rates shall be defined as "Y-rates." Employees in “Y-rated” positions shall not be eligible for any increase to base salary unless and until the amount of the “Y-rated” salary is equal to or less than the published pay rates. Employees assigned to work above class duties shall not be eligible for “Y-rated” pay on conclusion of a work above class assignment. SECTION II. SPECIAL COMPENSATION This section applies to all eligible regular management and professional positions including Council- Appointed Officers as applicable and including Council Members where indicated. Eligibility shall be in conformance with the Merit Rules and Regulations, and Administrative DirectivesPersonnel Policies and Administrative guidance issued by the City Manager for the purposes of clarification and interpretation. F. A. OVERTIME Compensation for overtime work shall be in conformance with the Merit Rules and Regulations and 1 Policies and Procedures. G. Floating Holiday – Days of Historical Significance Employees will beare provided one floating holiday each calendar year in acknowledgement of days of historical significance. The employee wWith prior approval from their supervisor, employees can use this floating holiday at any time during the year. This holiday has no cash value and will expire if unused. H. IN LIEU HOLIDAY PAY Employees who work a schedule where a regular day off falls on a holiday will be paid for the hours they would have normally worked on that day. If the holiday falls on a non-workday for an exempt employee, the employee may, with supervisory approval, take another day off within the pay period or the following pay period. I.F. WORKING ABOVE CLASSIFICATION PAY Where management and professional employees, on a temporary basis, are assigned to perform all significant duties of a higher classification for a period of one month or more, the City Manager may authorize payment within the range of the higher classification for the specified time frame. All qualified and interested employees within a work group should be considered for the working above classification opportunity whenever feasible. Working above classification will not exceed six months, unless renewed at the discretion of the City Manager. On expiration of that timeframe, working above classification pay will cease and the employee will return to his or hertheir former pay level. Working above classification pay is not to exceed 10% more than the employee’s current salary and shall be documented on a Personnel Action Form, with a description of the additional duties in the higher classification to be performed and an end date. J.G. STAND-BY PAY Employees eligible for overtime may be entitled to stand-by pay, approved by the City Manager on a case by case basis, in extreme circumstances involving unavailability of non-management staff. Compensation is as follows: Monday through Friday $40 per day Saturday, Sunday, Holidays $58 per day K.H. CALL OUT PAY Effective pay period beginning February 26, 2011, Exempt management and professional 1 classifications will be compensated for Call Out as outlined below with Management approval (and will not be eligible for overtime pay). Call Out applies when: (1) an employee previously left City premises, (2) is called back to the work location outside of regularly scheduled working hours, and (3) the Call Back is for an emergency arising out of situations involving real or potential loss of service, property or personal danger. Employees called back will be expected to respond directly to the location of the problem. Compensation is per Call Out as reported on timecard and will be paid as follows: Monday through Friday: $140 per day Saturday and Sunday: $200 per day L.I. NIGHT SHIFT PREMIUM Night shift differential shall be paid at the rate of five percent (5%) to regular full-time employees who are regularly assigned to shift work between 6:00 p.m. and 8:00 a.m., or to employees who are temporarily assigned to work a full shift between 6:00 p.m. and 8:00 a.m. M.J. UNIFORM PURCHASE PLAN - SWORN POLICE, FIRE PERSONNEL, and OPEN SPACE PERSONNEL Uniforms, including cleaning, will be provided with replacement provisions on an as-needed basis in conformance with department policy. N.K. SAFETY DIFFERENTIALS 1. Police Department - Personnel Development Program Pursuant to administrative rules governing eligibility and qualification, one of the following differentials, whichever is higher, may be granted to sworn police personnel: A. P.O.S.T. Intermediate Certificate: five percent (5%) above base salary B. P.O.S.T. Advanced Certificate: seven and a half (7 ½%) above base salary 2. Fire Department - EMT Differential Pursuant to administrative rules governing eligibility and qualification, the following differential may be granted to sworn Fire personnel: A. EMT Differential: three percent (3%) above base salary 1 SECTION III. BENEFIT PROGRAMS This section applies to all eligible regular management and professional positions including Council- Appointed Officers as applicable and including Council Members for Section III A – I as applicable. Eligibility shall be in conformance with the Merit Rules and Regulations, Personnel Policies and Administrative guidance issued by the City Manager for the purposes of clarification and interpretation. A. MEDICAL 1. GROUP INSURANCE 2. 3.1. Effective Date of Coverage for New Employees For newly hired regular employees coverage begins on the first day of the month following date of hire for the health plan, dental plan, vision care plan, long term disability and life insurance plans if these benefits are elected. Dual coverage. When a City employee is married to or has a registered domestic partner with the California Secretary of State with another City employee, each shall be covered only once (as an individual or as a spouse of the other City employee, but not both) and dependent children, if any, shall be covered by only one spouse. 4.2. Active Employee Health Plan a) During the term of this compensation plan, the maximum City contribution towards medical premiums for eligible full-time employees per category shall be up to a maximum of the following for any plan: Medical Premium Category (Coverage Level) Maximum City Contribution Effective January 1, 2020July 1, 2025 Single (EE only) $871943 2- Party (EE +1) $17421,885 Family (EE + 2 or more) $22602,444 Effective January 1, 2027, the City will increase its maximum contribution to medical premiums by the following percentages: 1 • Employee only: 2% • Employee plus one: 3% • Employee family: 5% Medical Premium Category Total Maximum City Contribution (inclusive of PEMHCA contribution*) effective January 1, 2027 Employee only Employee plus one Employee family $962 $1,942 $2,566 *The PEMHCA minimum changes per statutory determination. Any increases to the PEMHCA minimum during the term of this plan will result in a corresponding decrease to the amount of the additional City contribution, so that the total maximum City contribution never exceeds the amount listed in the “Total Maximum City Contribution” columns above. The City’s total maximum contribution towards medical premiums for eligible part time employees shall be prorated based on the number of hours per week the part-time employee is assigned to work. b) Coverage For Domestic Partners 1) Domestic Partnership Registered with the California Secretary of State: Employees may add their domestic partner as a dependent to their elected health plan coverage if the domestic partnership is registered with the Secretary of State and will be eligible for the Alternative Medical Benefit Program in paragraph 3 below. 2) Domestic Partnership Not Registered with the California Secretary of State: Domestic partners who meet the requirements of the City of Palo Alto Declaration of Domestic Partnership, and are registered with the People Strategy and OperationsHuman Resources Department, will be eligible for a stipend of up to two hundred and eighty four dollars ($284.00) per month toward the cost of an individual health plan. Evidence of premium payment will be required with request for reimbursement. c) Alternative Medical Benefit Program If a regular employee and/or the employee’s dependent(s) are eligible for and elect to receive medical insurance through another non-City of Palo Alto employer-sponsored or association medical plan, the employee may choose to waive his/hertheir right to the City of Palo Alto’s medical insurance and receive cash payments in the amount of $284.00. Council Members are 1 not eligible for the Alternative Medical Benefit Program. Examples of waivers eligible for this payment are: • Employee waives all applicable City medical coverage; or • Employee is eligible to enroll his or her spouse or register his or her domestic partner with the California Secretary of State and waives medical coverage for the spouse or domestic partner; or • Employee has additional eligible dependents and waives family-level medical coverage. Participation must result in a health insurance cost savings to the City and payments per employee shall not exceed a total of two hundred eighty four dollars ($284.00) per month. To participate in the program the employee and dependents must be eligible for coverage under PEMHCA medical plans, complete a waiver of medical coverage form, and provide proof of eligible alternative medical coverage. When a City employee is married to or has a registered domestic partner with the California Secretary of State with another City employee, each shall only be eligible once (as an individual or as a spouse of the other City employee, but not both) and not eligible for a waiver. Payments will be made in the employee’s paycheck beginning the first month following the employee’s completion of the waiver form. Payments are subject to state and federal taxes and are not considered earnings under PERS law. Employees are responsible for notifying the City of any change in status affecting eligibility for this program (for example, life changes affecting dependent’s eligibility for medical coverage through the employee) and will be responsible for repayment of amounts paid by the City contrary to the terms of this program due to the 1 employee’s failure to notify the City of a change in status. Employees are required to annually submit waiver forms in order to continue to receive these payments. Failure to submit annual waiver may result in loss of this alternative medical benefit. B. RETIREE HEALTH PLAN a) Employees Hired Prior to January 1, 2004 Monthly City-paid premium contributions for a retiree-selected health plan through the CalPERS Health Benefits Program will be made as provided under the Public Employees” Medical and Hospital Care Act. The City’s monthly employer contribution for each employee retiring on or after January 1, 2007 and prior to March 31, 2011 shall be the amount necessary to pay for the cost of his or her enrollment in a health benefits plan up to the monthly premium for the second most expensive plan offered to management and professional personnel during the contract term (among the existing array of plans.) The City’s contribution for an employee hired before January 1, 2004 who retires on or after March 30, 2011 shall be the same contribution amount it makes from time to time for active City employees. b) Employees Hired Post after January 1, 2004 – 1/1/04 Hires For those Management and professional employees hired after January 1, 2004, the PERS law vesting schedule set forth in Government Code section 22893 will apply. Under that law, an employee is eligible for 50% of the specified employer health premium contribution after ten (10) years of service credit, provided at least five (5) of those years were performed at the City of Palo Alto. After ten (10) years of service credit, each additional service credit year increases the employer contribution percentage by 5% until, at 20 years’ service credit, the employee will be eligible upon retirement for 100% of the specified employer contribution and 90% of their dependent coverage. The City of Palo Alto’s health premium contribution for eligible post – 1/1/04 hiresemployees shall be the minimum contribution set by PERS under section 22893 based on a weighted average of available health plan premiums. c) On July 6, 2016 the Effective upon ratification and adoption of this compensation plan, the City shall provided active Management employees who were hired before January 1, 2004 with a one-time opportunity to opt-in to retiree health benefits provided under California Government Code section 22893. Eligible employees who wish to exercise this option shall inform the Human Resources department of their election in writing no later than 90 days following the ratification and adoption of this compensation plan. C. DENTAL PLAN 1. a) The City will maintain the present level of benefits on the City-sponsored dental program. The City provides a base dental plan for all eligible employees and dependents. Additionally, eligible employees will have the option to enroll in a dental 1 “buy-up” plan. a)b) The City shall pay all premium payments on behalf of employees and dependents who are eligible and enrolled for coverage under the base dental plan. Dependents will include domestic partners. Employees will be responsible for premium payments required to enroll in the “buy up” dental plan. The City’s Dental Plan provides the following: Maximum Benefits per Calendar Year- $2,000 per person Lifetime Maximum for Orthodontics- The City will pay up to $2,000.00 for orthodontia coverage (not included in annual dental maximum) Major Dental Services 50% UCR* Orthodontics 50% UCR* Basic Benefits (All other covered services) First Calendar Year of Eligibility 70% UCR* Subsequent Calendar Years 70%-100% *Usual, Customary, and Reasonable Composite (tooth covered) fillings for posterior teeth For each dental plan member, the percentage of coverage for basic benefits will begin at 70% for the first calendar year of coverage and increase by 10% (up to a maximum of 100%) effective the first day of the next calendar year as long as the member utilizes the plan at least once during the current year. Per the Delta Dental contract effective October 1, 2005, if the member does not utilize the plan during the current year, the percentage of coverage for the next calendar year shall remain unchanged from the current year. If a dental plan member ever loses coverage under the plan, the applicable percentage of coverage for basic benefits provided during any future period of coverage will commence at 70% as if the dental plan member was a new enrollee. Examples of when a member might lose coverage under the plan would include: Employee goes on an unpaid leave of absence and elects not to pay the required dental premiums for his/her family’s coverage during the leave. Employee elects to drop one or more covered dependents from the plan during an open enrollment period so that they might be covered on a spouse’s non- City of Palo Alto dental plan. The City shall pay covered plan charges on behalf of all eligible employees and dependents. (Domestic partners who are either registered with the Secretary of State or who meet the requirements of the City of Palo Alto Declaration of Domestic Partnership, and are registered with the Human Resources Department are considered dependents under the plan.) Benefits for regular part-time employees hired or assigned to a part- time schedule will be prorated in accordance with his/her percentage of a full- time work schedule. The City’s Dental Plan provides the following: 1 Maximum Benefits per Calendar Year- $2,000 per person Lifetime Maximum for Orthodontics- The City will pay up to $2,000.00 for orthodontia coverage (not included in annual dental maximum) Major Dental Services 50% UCR* Orthodontics 50% UCR* Basic Benefits (All other covered services) First Calendar Year of Eligibility 70% UCR* Subsequent Calendar Years 70%-100% *Usual, Customary, and Reasonable Composite (tooth covered) fillings for posterior teeth For each dental plan member, the percentage of coverage for basic benefits will begin at 70% for the first calendar year of coverage and increase by 10% (up to a maximum of 100%) effective the first day of the next calendar year as long as the member utilizes the plan at least once during the current year. Per the Delta Dental contract effective October 1, 2005, if the member does not utilize the plan during the current year, the percentage of coverage for the next calendar year shall remain unchanged from the current year. If a dental plan member ever loses coverage under the plan, the applicable percentage of coverage for basic benefits provided during any future period of coverage will commence at 70% as if the dental plan member was a new enrollee. Examples of when a member might lose coverage under the plan would include: Employee goes on an unpaid leave of absence and elects not to pay the required dental premiums for his/her family’s coverage during the leave. Employee elects to drop one or more covered dependents from the plan during an open enrollment period so that they might be covered on a spouse’s non- City of Palo Alto dental plan. C.D. Basic LIFE INSURANCE a) Basic Life Insurance The City shall provide a basic group term life insurance with Accidental Death and Dismemberment (AD&D) coverage, in an amount equal to the employee's annual basic pay (rounded to the next highest $1,000) at no-cost to the employee. AD&D pays an additional amount equal to the employee’s annual basic pay (rounded to the next highest $1,000). a)b) Supplemental Life And AD&D Insurance An employee may, at his/hertheir cost, purchase additional voluntary life insurance and additional voluntary AD&D coverage equal to one- or two-times his or hertheir annual salary. The maximum amount of life insurance available to the employee is up to $325500,000 and the maximum amount of AD&D coverage available is up to $325500,000. 1 Employee may, at their cost, purchase voluntary spousal and child life insurance. D. LONG TERM DISABILITY INSURANCE The City shall provide long term disability (LTD) insurance with a benefit of 2/3 monthly salary, up to a maximum benefit of $10,000 per month. The City shall pay the premium for the first $6,000 of base monthly salary. For employees whose base monthly salary exceeds $6,000, the employee shall pay the cost of the required premium based upon their monthly salary between $6,000 and $15,000. a) For employees whose base monthly salary exceeds $6,000 and who have no eligible dependents covered under the City’s medical, dental or vision plans, the City will pay up to $17.50 per month towards the employee’s cost for LTD coverage. E. DEPENDENT CARE ASSISTANCE PROGRAM (DCAP) AND HEALTHCARE FLEXIBLE SPENDING ACCOUNT (HCFSA) The City shall continue to provide a Dependent Care Assistance Program (DCAP) and Medical Flexible Spending Accounts (FSA) for employees as permissible under Section 125 of the Internal Revenue Code. Calendar year limits are set by the IRS. a) DCAP: The City will provide a dependent care assistance program for employees subject to the provisions of applicable law. The program will remain in effect subject to a reasonable minimum participation level and availability of third party administrative services at a reasonable cost. Disputes regarding the administration of the plan shall be subject to the dispute resolution procedure provided by the plan document. b) HCFSA: The City will provide healthcare flexible spending program for employees subject to the provision of applicable law. Disputes regarding the administration of the plan shall be subject to the dispute resolution procedure provided by the plan document. E.F. VISION CARE a) The City provides a base vision plan for all eligible employees and dependents. Additionally, eligible employees will have the option to enroll in a vision “buy-up” plan. The City shall pay all premium payments on behalf of employees and dependents who are eligible and enrolled in coverage under the base vision plan. Employees will be responsible for premium payments required to enroll in the “buy up” vision plan. Coverage is equivalent to $20 Deductible Plan A under the Vision Service Plan, with monthly premiums paid by the employer. Dependents include domestic partners.The City shall provide vision care coverage for employee and dependents. Coverage is administered by Vision Service Plan (VSP). The plan provides an exam every 12 months; lenses every 24 months; frames every 24 months, all 1 subject to a $20 co-payment as defined in the Vision Services Benefits Plan A schedule. a) Benefits for regular part-time employees will be prorated as follows: b) Employees hired after January 1, 2004, who will work less than full time, will receive prorated premium costs for vision benefits in accordance with his/her their percentage of a full-time work schedule. Vision benefits for regular part-time employees hired or assigned to a part-time schedule will be prorated in accordance with his/hertheir percentage of a full- time work schedule. Effective July 1, 1996, dependents include eligible domestic partners who are either registered with the Secretary of State. F. 9. DEFERRED COMPENSATION G. The City will continue to provide a 457 Deferred Compensation Plan for employees to make pre or post tax contributions. G.H. 10. EMPLOYEE ASSISTANCE PLANEMPLOYEE ASSISTANCE PROGRAM The Employee Assistance Plan (EAP) provides employees with confidential personal counseling, work and family related issues, eldercare, substance abuse, etc. In addition, EAP programs provide a valuable tool for supervisors to refer troubled employees to professional outside help. This service staffed by experienced clinicians is available to employees and their dependents by calling a toll-free phone line 24 hours a day, seven days a week. Guidance is also available online. H.I.COMMUTE INCENTIVES and PARKING 1. Civic Center Parking. Employees assigned to Civic Center and adjacent work locations. The City will provide a Civic Center Garage parking permit. Employees hired after June 30, 1994 may initially receive a parking permit for another downtown lot, subject to the availability of space at the Civic Center Garage. 2. Alternative Commute Incentives: Employees who qualify may voluntarily elect one commute incentives, including but not limited to the following options, for those using an eligible 1 commute alternative on 60% or more of their scheduled work days per month: a) Public Transit, Parking and Vanpool. The City provides tax-free commute incentives up to the current IRS limit, as may be amended from time to time., (currently $125/month) are available through the Commuter Check Direct (CCD) website for employees using Bay Area public transportation or riding in a registered vanpool at least 60% of their scheduled work days. .Administration of the Commuter Checkthis benefit shall be subject to the rules and regulations of the third- party administrator. b) Go Pass. The Go Pass program will offer civic center and other downtown-based employees a Caltrans Go Pass that allows unlimited rides on Caltrain in all zones seven days per week, to any City of Palo Alto employee. c) Bicycle. The City will provide employees with a tax-free incentive of $20 per month to eligible employees who ride a bicycle to work. d) Carpool. The City will provide with a taxable incentive of $30 per month to each eligible employee in a carpool with two or more licensed drivers. e) Walk. The City will provide employees with a taxable incentive of $20 per month to eligible employees who walk to work. J. LONG TERM DISABILITY INSURANCE 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. I.K. 11. EXCESS BENEFIT This benefit is designed to meet the requirements of Section 125 of the Internal Revenue Code, with exception of Gym or Health Club Membership. Effective January 1, 2026, Eevery calendar year, each employee will be provided with $3,000 2,500 that they can designate among the following options, subject to caps pursuant to IRS regulations: a) Medical Flexible Spending Account (Medical FSA). Provides reimbursement for excess medical/dental/vision, or expenses that are incurred by employees and their dependents, subject to the provision of applicable law. which are not covered or reimbursed by any other source, including existing City-sponsored plans. This includes prescribed medications and copayments. However, nonprescription dietary supplements (e.g. vitamins, etc.) toiletries (e.g. toothpaste), cosmetics (e.g. face 1 cream), and items used for cosmetic purposes (e.g. Rogaine) are not acceptable. Dependent Care Flexible Spending Account (Dependent Care FSA). Provides reimbursement for qualified dependent care expenses under the City's Dependent Care Assistance Program (DCAP), subject to the provision of applicable law. subject to the following limits: Dependent care expenses will be reimbursed only to the extent that the amount of such expenses reimbursed under this Management Benefit Program, when added to the amount (if any) of annual dependent care expenses that the participant has elected under the City's Flexible Benefits Plan, do not exceed the maximum permitted under the DCAP. b) b) c) The annual amount submitted for reimbursement cannot exceed the income of the lower-paid spouse. d) e) The expenses must be employment-related expenses for the care of one or more dependents who are under 13 years of age and entitled to a dependent deduction under Internal Revenue Code section 151(e) or a dependent who is physically or mentally incapable of caring for himself or herself. f) g) The payments cannot be made to a child under 19 years of age or to a person claimed as a dependent. 21 h) If the services are provided by a dependent care center, the center must comply with all state and local laws and must provide care for more than six i) (6) individuals (other than a resident of the facility). j) k) Dependent care expenses not submitted under this section are eligible under the City Dependent Care Assistance Plan (DCAP). However, the maximum amount reimbursed under DCAP will be reduced by any amount reimbursed under the Excess Benefit Plan. l)c) Non-taxable Professional Development Spending Account. Provides reimbursement for Non-Taxable professional development expenses (e.g., job-related training and education, seminars, training manuals, etc.) to the extent they are not paid or reimbursed under any other plan of the City. m)d) Gym or Health Club memberships. Provides reimbursement for annual or monthly memberships, including personal trainers. Reimbursement of this expense is taxable to the employee. e) Deferred Compensation. Provides a one-time contribution to the employee’s City- sponsored 457 Deferred Compensation plan. with either ICMA-RC or Mass Mutual. Amounts designated by employees to either the Medical FSA, Dependent Care FSA, or Professional Development options are done so on a “use–it-or-lose-it” basis. This means that any amounts designated and not used by the end of the calendar year (or end of the extended grace period for the medical FSA) will be forfeited by the employee and returned to the plan. Specified amounts under this benefit will be applied on a pro-rated basis for employees who are part-time or who are in a management or professional pay status for less than the full fiscal year. Such benefits will be pro-rated in the first year of employment (based on hire date) but will not be pro-rated upon separation of employment. J. SAFETY DIFFERENTIALS 1. Police Department - Personnel Development Program Pursuant to administrative rules governing eligibility and qualification, one of the following differentials, whichever is higher, may be granted to sworn police personnel: A. P.O.S.T. Intermediate Certificate: five percent (5%) above base salary C. P.O.S.T. Advanced Certificate: seven and a half (7 ½%) above base salary 2. Fire Department - EMT Differential Pursuant to administrative rules governing eligibility and qualification, the following differential may be granted to sworn Fire personnel: 22 A. EMT Differential: three percent (3%) above base salary K.L. MANAGEMENT and PROFESSIONAL BENEFIT PROGRAMPROFESSIONAL DEVELOPMENT Management and professional employees are eligible for Sections 1, 2, and 3of the Management Benefit Program below. City Council Members are not eligible for benefits under Section 1 and 2 below. The purpose of this program is to provide employees with resources to improve and supplement their job and professional skills. Reimbursement for authorized self- improvement activities may be granted each management and professional employee up to a maximum of five hundred dollars ($500) per fiscal year. A departmental training fund of one thousand dollars per employee ($1,000) will be established for subject matter, leadership or other training that the Department Director identifies as a need for employees within that Department. The following items are eligible for reimbursement: a) Civic and professional association memberships b) Conference participation and travel expenses, which must occur within the compensation plan period. c) Educational programs, books and videos, and tuition reimbursement designed to maintain or improve the employee's skills in performing his or hertheir job or future job opportunities, should support the City’s mission or be necessary to meet the educational requirements for qualification for employment. Permissible educational expenses are refresher courses, courses dealing with current developments, academic or vocational courses, as well as the travel expenses associated with the courses as defined by the City’s travel expense report from the Policy & Procedures Manual Section 1-02 ASD. 23 d) Professional and trade journal subscriptions not to exceed 12 months. Approval will beis at the discretion of department head and signature is required on reimbursement form. Amounts under this professional development program will be pro-rated in the first year of employment or promotion into a position covered by this Compensation Plan L.M. MEAL ALLOWANCE Management and professional employees assigned to attend night meetings are eligible to receive reimbursement for up to $2038.00 per dinner, or as otherwise defined in Policy 1- 66/ASD. This provision covers only receipted meals actually taken and submitted for reimbursement. IV. LEAVES A. This section applies to all management and professional employees and does not include Council Members or Council-appointed officers. B.A. SICK LEAVE a) Sick leave shall be accrued bi-weekly provided the employee has been in a pay status for 50% or more of a bi-weekly pay period. Sick leave shall be accrued at the rate of 3.7 hours per bi-weekly pay period for those employees working a 40-hour duty schedule. Those assigned work schedules which are greater or lesser than 40 hours will accrue sick leave at the ratio of their work schedule to 40 hours. 24 b) Employees may use up to thirty (30) 20 hours of sick leave per calendar year for personal business. The scheduling of such leave is subject to the approval of the appropriate level of Management. c) Employees leaving the municipal service shall forfeit all accumulated sick leave, except as otherwise provided by law and or by Section 609 of the Merit Rules and Regulations. In the event that notice of resignation is given, sick leave may be used only through the day which was designated as the final day of work by such notice. d) Employees that were hired before December 1, 1983 and who leave the municipal service in good standing, or who die while employed in good standing by the city, and who have 15 or more years of continuous service shall receive compensation for unused sick leave hours in a sum equal to two and one-half percent (2½%) of their unused sick leave hours multiplied by their years of continuous service and their basic hourly rate of pay at termination. Full sick leave accrual will be paid in the event of termination due to disability. See Merit System Rules and Regulations, Chapter 6, Section 609. e)d) Up to nine (9) days of sSick leave per calendar year may be used for illness in the immediate family, including a registered domestic partner or other individuals required by applicable law. f) Management and Professional employees eligible, as specified above if hired before December 1, 1983, to be compensated for sick leave may annually convert sick leave hours in excess of 600 to cash or deferred compensation, according to the formula set forth above, up to a maximum of $2,000 per fiscal year. g)e) In accordance with the City Merit Rules and Regulations, a new employee may, if necessary, use up to 48 hours or shift equivalent of sick leave at any time during the first six (6) months of employment. B. HOLIDAY The following holidays are recognized as municipal holidays for pay purposes, and regular, employees shall have these days off with pay, except as otherwise provided in these rules: January 1 Veterans' Day, November 11 Third Monday in January Thanksgiving Day Third Monday in February Day after Thanksgiving Day Last Monday in May December 25 July 4th Either December 24, or December 31 as provided below First Monday in September Second Monday in October 25 Employees shall be excused with pay for the full work shift on either December 24 or December 31, provided that City facilities remain open with reduced staffing levels as determined by the various departments. Neither day shall be considered a holiday for purposes of premium pay. Employees who are not excused pursuant to this provision shall have one shift of vacation credit added to their accrual. In the event that any of the aforementioned days, except December 24 or December 31, fall on a Sunday, the following Monday shall be considered a holiday. In the event that any of the aforementioned days falls on a Saturday, the preceding Friday shall be considered a holiday for pay purposes. If December 24 and 31 fall on Sunday, the preceding Friday will be designated for purposes of excused time off. Exceptions to this provision may be authorized by the City Manager to conform to various memoranda of understanding. B. IN LIEU HOLIDAY PAY Employees who work a schedule where a regular day off falls on a holiday will be paid for the hours they would have normally worked on that day. If the holiday falls on a non-workday for an exempt employee, the employee may, with supervisory approval, take another day off within the pay period or the following pay period. C. MANAGEMENT ANNUAL LEAVE a) Exempt Employees Regular management and professional exempt employees will be credited with 80 hours of annual leave. This leave is granted in recognition of the extra hours Management and Professional employees work over their regular schedule. This leave may be taken as paid time off, added to vacation accrual (subject to vacation accrual limitations), taken as cash, or taken as deferred compensation. When time off is taken under this provision, 10-hour shift workers will receive one shift off for each 8 hours charged; 24-hour shift workers will receive one-half (½) shift off for each 8 hours charged. 26 In 2012, the City transitioned this benefit from a fiscal to calendar year basis for administrative purposes. Beginning in 2013 and each calendar year thereafter, employees will be credited with 80 hours of management annual leave. Entitlement under this provision will be reduced on a prorated basis for part-time status, or according to the number of months in paid status during the year; employees who have used more than the pro-rated share at the time they leave City service shall be required to repay the balance or have it deducted from their final check. Unused balances as of the end of the year will be paid in cash unless a different option as indicated above is elected by the employee. Council appointed Officers can, at their discretion, award additional management annual leave to employees. Award of additional leave is intended to acknowledge and recognize excellent performance and/or longevity in alignment with the annual merit cycle. D. VACATION Vacation will beis accrued when an employee is in pay status and will beis credited on a bi- weekly basis. Total vacation accrual at any one time may not exceed three (3) times the annual rate of accrual. Each eligible employee shall accrue vacation at the following rate for continuous service performed in pay status: a) Less than nine (9) years. For employees completing less than nine (9) years continuous service: 120 hours vacation leave per year; provided that: i. The City Manager is authorized to adjust department head annual vacation accrual to provide for a maximum of 160 hours for those hired between July 1, 1996 and June 30, 2001; and ii. The City manager is authorized to adjust the annual vacation accrual of employees hired on or after July 1, 2001, to provide up to 40 additional hours (i.e., to a maximum annual accrual of 160 hours) for service with a prior employer. b) Nine (9), but less than fourteen (14) years. For employees completing nine (9), but not more than fourteen (14) years continuous service; 160 hours vacation per year. c) Fourteen (14), but less than nineteen (19) years. For employees completing fourteen (14), but not more than nineteen (19) years continuous service; 180 hours vacation leave per year. d) Nineteen (19) or more years. For employees completing nineteen (19) or more years 27 continuous service; 200 hours vacation leave per year. e) Employees are eligible to cash out vacation accrual balances in excess of eighty (80) hours. An employee may cash out a minimum of eight (8) hours to a maximum of one hundred twenty (120) hours of accrued vacation provided the employee has taken eighty (80) vacation hours in the previous twelve (12) months and has followed the election procedures set forth in this section. Employees must elect the number of vacation hours they will cash-out during the next calendar year, up to the maximum of one hundred twenty (120) hours. For the 2012 following calendar vacation year, employees will make their election for vacation hours to cash out during the annual Benefit Open Enrollment period. no later than November 1, 2012. The election will apply only to vacation hours that are accrued in the next calendar year and that are eligible for cash-out. The election to cash-out vacation hours in each designated year will be irrevocable. This means that employees who elect to cash-out vacation hours must cash-out the number of accrued hours pre-designates on the election form. Employees who do not elect a cash-out amount during the annual Benefit Open Enrollment periodby November 1 of the prior calendar year will be deemed to have waived the right to cash out any leave in the following tax year. and will not be eligible to cash-out vacation hours in the next tax year Employees who elect cash-out amounts may request a cash-out at any time in the designated tax year by submitting a cash-out form to payroll. Payroll will complete the cash-out upon request, provided the requested cash-out amount has accrued and is consistent with the amount the employee pre-designated. If the full amount of hours designated for cash-out is not available at the time of cash-out request, the maximum available will be paid. For employees who have not requested cash-out of the elected amount by November 1 of each year, Payroll will automatically cash-out the elected amount in a paycheck issued on or after the payroll date including November 1. E. Bereavement Leave of absence with pay of three (3) days may be granted an employee by the head of his/hertheir department in the event of death in the employee’s immediate family, which is 28 defined for purposes of this section as wife, husband, son, son-in-law, step-son, daughter, daughter-in-law, step-daughter, mother, mother-in-law, father, father-in-law, brother, brother-in-law, sister, sister-in-law, grandmother, grandmother-in-law, grandfather, grandfather-in-law, grandchild, aunt, uncle, niece, nephew, registered domestic partner, or a close relative residing in the household of employee. Such leave shall be at full pay and shall not be charged against the employee’s accrued vacation or sick leave. Employees may supplement paid bereavement leave with accrued leave (including vacation or sick leave) or unpaid leave to reach a total of five (5) workdays of time off per incident of bereavement. Requests for leave in excess of three five (5) days shall be subject to the approval of a Council- Appointed Officer for employees under his/hertheir control. Use of accrued leave credits during leaves of absence. During unpaid leaves of absence for disability or other reasons, the employee may elect and the City may require the employee to use accrued paid vacation and sick leave in a manner consistent with state and federal law. Requests for leaves without pay shall not be unreasonably denied. In order to avoid misunderstandings, all leaves without pay must be in writing to be effective. V. RETIREMENT PENSION A. MISCELLANEOUS PENSION FORMULAS: a) Miscellaneous Pension Group A: 2.7% at 55. The City provides retirement benefits under the California Public Employees Retirement System at the level of 2.7% at age 55 for employees hired before July 17, 2010, with a one year final compensation period. b) Miscellaneous Pension Group B: 2% at 60.: For miscellaneous employees hired on or after July 17, 2010, and before January 1, 2013, and employees hired on or after January 1, 2013 who are not “new members” of CalPERS as defined in the Public Employees’ Pension Reform Act (often referred to as “Classic” CalPERS members)the City offers the CalPERS retirement formula two percent (2.0%) of final salary at age sixty (60), with a one (1) year final compensation period. c) Miscellaneous Pension Group C: 2% at 62. Employees hired on or after January 1, 2013 meeting the definition of “new member” under the Public Employees’ Pension Reform Act (Gov’t. Code s. 7522 et seq.) shall be subject to all of the provisions of that law, including but not limited to the two percent at age 62 (2%@62) retirement formula with a three (3) year final compensation period. B. SAFETY PENSION FORMULAS: a) Safety Pension Group A: 3% at 50. For Safety members, the City currently offers the CalPERS "3% at 50" full formula (Section 21362.2) benefit, with a one (1) year final 29 compensation period. b) Safety Pension Group B: 3% at 55. Local Fire Safety members newly hired after 6/08/12June 8, 2012 will be placed in the 3%@55 formula. As soon as administratively possible, the City intends to modify the Local Police Safety formula for new hires to 3%@55 formula. c) Safety Pension Group C: New employees hired on or after January 1, 2013 who are “new members” as defined by the California Public Employees’ Pension Reform Act (PEPRA), will be subject to the terms of that statute, with a three (3) year final compensation period. C. EMPLOYEE PERS SHARE. a) Miscellaneous Employee Shares: a) • Employees in Miscellaneous Pension Group A shall pay the full eight percent (8%) employee contribution. • • Employees in Miscellaneous Pension Group B shall pay the full seven percent (7%) employee contribution. • • Employees in Miscellaneous Pension Group C shall pay the employee contribution required by the Public Employees Pension Reform Act, calculated at fifty percent (50%) of the normal cost. b) Safety Employee Shares:. a. Employees in Safety Pension Group A shall pay the full nine percent (9%) PERS employee contribution. b. Employees in Safety Pension Group B shall pay the full eight percent (9%) PERS employee contribution. a. Employees in Safety Pension Group C shall pay the employee contribution required by the Public Employees Pension Reform Act, calculated at fifty percent (50%) of the normal cost. b. b) Employees under the 2%@62 benefit shall pay at least 50 percent of the total normal cost or the same contribution rate as “similarly situated” employees, whichever is higher. a.c. D. EMPLOYER SHARE a) Miscellaneous (Non-Safety) Management and Professional: As soon as administratively possible, but no sooner than pay period including July 1, 2017 each Miscellaneous (non-Safety) Management and Professional employee shall pay one- half percent (0.5%) of their salary toward the employer cost of retirement in accordance with 30 Section 20516 of the California Government Code. Effective the first full pay period including July 1, 2018, each Miscellaneous (non-Safety) Management and Professional employee shall pay an additional one-half percent (0.5%) of their salary toward the employer cost of retirement in accordance with Section 20516 of the California Government Code. This will result in Miscellaneous (non-Safety) Management and Professional employees paying a total of one (1) percent of the employer share in addition to their employee contribution. b) Safety Management: As soon as administratively possible, but no sooner than pay period including July 1, 2017 each Safety Management employee shall pay one and one-half percent (1.5%) of their salary toward the employer cost of retirement in accordance with Section 20516 of the California Government Code. Effective the first full pay period including July 1, 2018, each Safety Management employee shall pay an additional one and one-half percent (1.5%) of their salary toward the employer cost of retirement in accordance with Section 20516 of the California Government Code. This will result in Safety Management employees paying a total of three (3) percent of the employer share in addition to their employee contribution. 1. Final Compensation. Final compensation for purposes of retirement shall be as set forth in the City’s contract with CalPERS, including, when applicable, the Government Code Section 20692: Optional Benefit, except as may otherwise be required by PEPRA. 2. Employee PERS contributions shall be made on a tax deferred basis, in accordance with Section 414(h)(2) of the Internal Revenue Code. All provisions of this subsection are subject to and conditioned upon compliance with IRS regulations. Final compensation for employees under the 2%@62 benefit shall be as set forth in PEPRA, including calculation based on the average of three highest consecutive years and a cap on pensionable compensation based on IRS limits for employers that do not participate in social security. E. AT-WILL STATUS Certain Management and Professional Positions are designated as having “at-will” employment status. Employees hired into “at-will” positions shall have no constitutionally protected property or 31 other interest in their employment with the City. Notwithstanding any provision in the Merit System Rules and Regulations or any other City rule, policy or procedure, at-will employees have no right to continued employment or pre-or post-disciplinary due process and work at the will and pleasure of the hiring authority (City Council, City Manager or Council-Appointed Officer). Work for an at-will employee may be eliminated and/or the employee may be terminated, or asked to resign, at any time, with or without cause, upon notice to that employee, and the employee may resign at any time upon written notice to the hiring authority. a) At-will Management & Professional positions. Department heads hired after July 1, 2004 and prior to the date of adoption of this plan were hired as at-will employees whose terms of employment are specified by an employment contract that includes a severance package. Effective on the date of adoption of this planJuly 1, 2012, new employees hired or promoted to department head, assistant department director, and all other positions listed on Attachment B shall be at-will employees. At-will employees will be eligible for, and shall receive, all regular benefits (i.e., health insurance, PERS contribution to the extent paid by City, etc.) and vacation, sick leave, and management leave as are generally provided to management employees and described in this compensation plan, as amended from time to time. At-will employees who are terminated or asked to resign shall, upon execution of a release of all claims against the 32 City, be eligible for a severance payment equivalent to four (4) weeks of salary and benefits, increasing after completion of the first full year of service by one (1) week for every completed year of service, up to a maximum of 12 weeks. For example, an at-will employee who has completed six (6) years of service would be eligible to receive ten (10) weeks of severance (4 weeks plus 1 week for each year of service). No severance shall be paid if the employee is terminated for serious misconduct involving abuse of his or hertheir office or position, including but not limited to waste, fraud, violation of the law under color of authority, misappropriation of public resources, violence, harassment or discrimination. If the employee is later convicted of a crime involving such abuse of his or hertheir position the employee shall fully reimburse the City as set forth in Government Code section 53243.3. b) Provisional employees. The City has created a program for Provisional employment when funding is available. The program’s purpose is to create limited duration senior management level work for the City Manager’s Office or as designated by the City Manager. A Provisional Employee will be an “at will” employee whose term of employment shall be no more than two (2) years. A Provisional Employee shall be exempt and not eligible to earn overtime. A Provisional Employee will receive limited benefits as specified in an Employment Agreement. Sections I and II of this Compensation Plan shall not apply to Provisional Employees, except as specified by the City Manager. c) Management and Legal Fellows. The City has created programs for Management Fellows and Legal Fellows when funding is available. The programs’ purpose is to create limited duration entry level positions for management graduates and lawyers. Fellows will be “at will” employees whose term of employment shall be no more than two (2) years. Fellows shall be PERS exempt to the extent allowed by law, but may receive vacation, sick leave, health care benefits and other limited benefits, as determined by the City Manager or City Attorney. Sections I and II of this Plan shall not apply to Management and Legal Fellows, except as specified by the City Manager or City Attorney. F. HIRING PROVISIONS a) Reimbursement For Relocation Expense Policy Statement The City of Palo Alto, in rare instances, may provide a Basic Relocation Benefits Package for new management and professional employees, upon the approval of the City Manager or designated subordinate. In addition, the provision of “Optional Benefits” or portions thereof, may be extended for exceptional circumstances and only the approval of the City Manager or designee, or for Council-appointed officers, the City Council. 33 The details of the Relocation Expense program are specified in the City’s Relocation Expense policy and all relocation reimbursements shall be subject to the provisions of that policy. b) Hiring Incentive Council Appointed Officers may authorize a hiring incentive for critical Management and Professional personnel vacancies. Hiring incentives must be funded through department salary savings. G. GRIEVANCES REGARDING COUNCIL APPOINTED OFFICERS Notwithstanding the grievance procedures provided in Chapter 11 of the City of Palo Alto’s Merit System Rules and Regulations, any Management and Professional employee who is supervised by a Council Appointed Officer and has a grievance against that Council Appointed Officer or regarding the conduct of that Council Appointed Officer shall, following an attempt to resolve the grievance pursuant to Step One (informal discussion), summarize the grievance regarding the Council Appointed Officer in writing and submit it to the Director of Human Resources for review and resolution using the methods he/shethey considers appropriate. H. MERIT RULES The City will include members of the Management/Professional Compensation Committee in discussions regarding revision of the Merit Rules and Regulations. 34 Attachment B At-Will Positions Management and Professional Unit The intent of this provision under the Management/Professional Compensation Plan is to designate classifications at the department head, assistant director, deputy director, division manager and senior professional levels as at-will. The applicable Council Appointed Officer may designate newly created positions at those levels not included on this list as at-will. Existing classifications that shall be at-will include but are not limited to: Department Heads- All departments Assistant Directors- All departments Deputy Directors- All departments Division Managers - All departments Administrative Services Director, Administrative Services/Chief Financial Officer Director, Office of Management & Budget Assistant Director, Administrative Services Division Managers such as: Budget Manager; Finance Manager; Chief Procurement Officer; Manager, Real Property; Treasury Manager; Principal Analyst; Revenue Collections Manager City Attorney Chief Assistant City Attorney Assistant City Attorney Deputy City Attorney Legal Fellow City Clerk Assistant City Clerk Deputy City Clerk City Manager Assistant City Manager Chief Operating Officer Deputy City Manager Assistant to the City Manager Assistant to City Manager Chief Communications Officer Communications Manager 35 Chief Transportation Official Manager Economic Development Management Fellow Community Services Director, Community Services Assistant Director, Community Services Manager, Community Services Manager, Community Services Program Senior Human Resources Director of Human Resources/Chief People Officer Assistant Director, Human Resources Human Resources Manager Senior Administrator Human Resources IT Director, IT/Chief Information Officer Manager, Information Technology Library Director, Libraries Assistant Director, Library Services Division Head, Collection & Technical Services Manager, Library Services Planning & Development Services Director, Planning & Development Services Assistant Director, Planning & Development Services Planning Manager Division Manager, Chief Planning Official Development Services Director Chief Building Official Assistant Building Official Planning Manager Public Safety Chief of Police/Director of Public Safety Fire Chief /Assistant Public Safety Director Assistant Police Chief 36 Emergency Services Director Deputy Director – Technical Services Division (police department) Deputy Fire Chief Public Works Director, Public Works/City Engineer Assistant Director, Public Works – Environmental Services Assistant Director, Public Works – Public Services Assistant Director, Public Works – Engineering Manager, Airport Manager, Fleet Water Quality Control Plant Manager Utilities Director, Utilities Chief Operating Officer COMPENSATION PLAN FOR Management and Professional Personnel And Council Appointees Effective July 1, 2025, except where specifically noted. 2 SECTION I. COMPENSATION ................................................................................................................ 4 A. MANAGEMENT AND PROFESSIONAL COMPENSATION POLICY ............................................ 4 B. BASIC PLAN ELEMENTS .......................................................................................................... 4 C. GENERAL SALARY INCREASES ................................................................................................ 4 D. ANNUAL PERFORMANCE REVIEW AND MERIT INCREASES ................................................... 5 E. CLASSIFICATION COMPENSATION REVIEW ........................................................................... 6 SECTION II. SPECIAL COMPENSATION............................................................................................... 6 A. OVERTIME .............................................................................................................................. 6 B. WORKING ABOVE CLASSIFICATION PAY ................................................................................ 6 C. STAND-BY PAY ........................................................................................................................ 7 D. CALL OUT PAY ........................................................................................................................ 7 E. NIGHT SHIFT PREMIUM ......................................................................................................... 7 F. UNIFORM PURCHASE PLAN - SWORN POLICE, FIRE PERSONNEL, and OPEN SPACE PERSONNEL ...................................................................................................................................... 7 G. SAFETY DIFFERENTIALS .......................................................................................................... 8 SECTION III. BENEFIT PROGRAMS .................................................................................................. 8 A. MEDICAL ................................................................................................................................. 8 B. RETIREE HEALTH PLAN ......................................................................................................... 11 C. DENTAL ................................................................................................................................. 11 C. LIFE INSURANCE ................................................................................................................... 12 D. DEPENDENT CARE ASSISTANCE PROGRAM (DCAP) AND HEALTHCARE FLEXIBLE SPENDING ACCOUNT (HCFSA) ......................................................................................................................... 12 E. VISION .................................................................................................................................. 12 F. DEFERRED COMPENSATION ................................................................................................ 13 G. EMPLOYEE ASSISTANCE PROGRAM ..................................................................................... 13 H. COMMUTE INCENTIVES and PARKING ................................................................................. 13 I. LONG TERM DISABILITY INSURANCE ................................................................................... 14 J. EXCESS BENEFIT ................................................................................................................... 14 K. PROFESSIONAL DEVELOPMENT ........................................................................................... 15 L. MEAL ALLOWANCE .............................................................................................................. 16 IV. LEAVES .......................................................................................................................................... 16 A. SICK LEAVE ........................................................................................................................... 16 B. HOLIDAY ............................................................................................................................... 16 2 C. IN LIEU HOLIDAY PAY ........................................................................................................... 17 D. MANAGEMENT ANNUAL LEAVE ........................................................................................... 17 E. VACATION ............................................................................................................................ 18 F. BEREAVEMENT ..................................................................................................................... 19 V. RETIREMENT .................................................................................................................................. 19 A. MISCELLANEOUS PENSION FORMULAS: .............................................................................. 19 B. SAFETY PENSION FORMULAS: .............................................................................................. 20 C. EMPLOYEE PERS SHARE. ...................................................................................................... 20 D. EMPLOYER SHARE ................................................................................................................ 21 E. AT-WILL STATUS ................................................................................................................... 21 F. HIRING PROVISIONS ............................................................................................................. 23 G. GRIEVANCES REGARDING COUNCIL APPOINTED OFFICERS ................................................ 23 Attachment B .................................................................................................................................................. 24 4 COMPENSATION PLAN FOR THE CITY OF PALO ALTO Management and Professional Personnel As used in this Plan, the term “Management and Professional” refers to employees within classifications listed in the Management and Professional Salary Schedule. SECTION I. COMPENSATION This section applies to all management and professional employees and does not include Council Members or Council-appointed officers. Each Council-appointed officer shall be the responsible decision-maker under this Plan for those employees in departments under their control. A. MANAGEMENT AND PROFESSIONAL COMPENSATION POLICY The City's policy for management and professional compensation is to establish and maintain a general structure based on marketplace norms and internal job alignment with broad compensation grades and ranges. Structures and ranges are reviewed and updated as necessary based on marketplace survey data, internal relationships, and City financial conditions. Individual compensation adjustments will be considered by the Council-appointed officer based on (1) performance factors including achievement of predetermined objectives; (2) pay structure adjustments; and (3) City financial conditions. B. BASIC PLAN ELEMENTS 1. Structure. All management and professional classifications are assigned an appropriate pay range based on salary survey data and internal relationships. Actual salary within the range for individual employees is determined by experience and performance. 2. Compensation Adjustment Authorization. Council-appointed officers are authorized to pay salaries in accordance with this plan to non- Council-appointed management and professional employees within the City Council authorized salary schedule. The Council-appointed officers are authorized to establish such administrative rules as are necessary to implement the Management and Professional Salary Plan subject to the limitations of the approved compensation adjustment authorization and the approved salary schedule. C. GENERAL SALARY INCREASES 5 As part of the budget process and subject to Council approval, the City Manager may propose a compensation adjustment based on (1) competitive market data, (2) changes in internal position relationships, (3) the City's ability to pay, and (4) a recommendation received from the Human Resources Director. Effective the first full pay period following July 1, 2025, salary ranges and salaries of all classifications will be increased by three percent (3.0%). Effective the first full pay period following July 1, 2026, salary ranges and salaries of all classifications will be increased by three percent (3.0%). Effective the first full pay period following July 1, 2027, salary ranges and salaries of all classifications will be increased by three percent (3.0%). Effective the first pay period of January 2024, all classifications received two hundred dollars ($200) monthly flexible compensation payment built into base hourly rate of pay. D. ANNUAL PERFORMANCE REVIEW AND MERIT INCREASES Individual base salary merit increases are earned and authorized in accordance with administrative practices based upon growth within the position, performance, and the City’s financial conditions. Merit pay adjustments are at the discretion of the Council-Appointed Officers and at amounts set on an annual basis during the fiscal year budget process. Annually, performance appraisals will be conducted after the conclusion of the fiscal year for all employees who have been with the City for over one year. Employees in their first year as a Management and Professional employee with the City will receive their performance appraisal after 12 months. These appraisals review performance over the prior fiscal year and provide goals and expectations for the new fiscal year. Performance plans are jointly prepared by the employee and supervisor with the concurrence of the department head or Council-appointed officer. Progress toward meeting objectives shall be monitored periodically. Management/professional employees who have received an overall rating of “meets expectations” or above on their annual review and who have not been on a performance improvement plan during the preceding fiscal year will be eligible for a Merit increase to base compensation, if applicable for that year. Recommended ratings will be provided to Department Heads, the Human Resources Department, and the appropriate Council-Appointed Officer for final review. Nothing herein shall preclude an employee's manager from recommending a mid-point adjustment increase to an employee on a performance plan at a later date should employee's performance improve. 6 E. CLASSIFICATION COMPENSATION REVIEW The City will periodically survey classifications to determine their competitive market placement. The results of a total compensation study may indicate that a pay range be adjusted, or that no change takes place. Such adjustments may only affect the salary administration framework. No individual salaries will be automatically changed because of structural adjustments. A department director may request that Human Resources reevaluate a classification(s) in their department based on significant and permanent changes in job content. In doing so the director will supply needed information and will provide a position description questionnaire as requested. The Human Resources director or designee will respond to such requests within their discretion. Individual employees are not eligible to request a classification compensation review. Notwithstanding any other provision of this Compensation Plan, in the event a downward adjustment of a position grade assignment indicates a reduction in the established salary of an individual employee, the Council-appointed officer may, if circumstances warrant, continue the salary for such employee in an amount in excess of the revised grade limit for a reasonable period of time. Such interim salary rates shall be defined as "Y-rates." Employees in “Y-rated” positions shall not be eligible for any increase to base salary unless and until the amount of the “Y-rated” salary is equal to or less than the published pay rates. Employees assigned to work above class duties shall not be eligible for “Y-rated” pay on conclusion of a work above class assignment. SECTION II. SPECIAL COMPENSATION This section applies to all eligible regular management and professional positions including Council- Appointed Officers as applicable. Eligibility shall be in conformance with the Merit Rules and Regulations, Personnel Policies and Administrative guidance issued by the City Manager for the purposes of clarification and interpretation. A. OVERTIME Compensation for overtime work shall be in conformance with the Merit Rules and Regulations and Policies and Procedures. B. WORKING ABOVE CLASSIFICATION PAY Where employees, on a temporary basis, are assigned to perform all significant duties of a higher classification for a period of one month or more, the City Manager may authorize payment within the range of the higher classification for the specified time frame. All qualified and interested employees within a work group should be considered for the working above classification 7 opportunity whenever feasible. Working above classification will not exceed six months, unless renewed at the discretion of the City Manager. On expiration of that timeframe, working above classification pay will cease and the employee will return to their former pay level. Working above classification pay is not to exceed 10% more than the employee’s current salary and shall be documented on a Personnel Action Form, with a description of the additional duties in the higher classification to be performed and an end date. C. STAND-BY PAY Employees eligible for overtime may be entitled to stand-by pay, approved by the City Manager on a case by case basis, in extreme circumstances involving unavailability of non-management staff. Compensation is as follows: Monday through Friday $40 per day Saturday, Sunday, Holidays $58 per day D. CALL OUT PAY Effective pay period beginning February 26, 2011, Exempt management and professional classifications will be compensated for Call Out as outlined below with Management approval (and will not be eligible for overtime pay). Call Out applies when: (1) an employee previously left City premises, (2) is called back to the work location outside of regularly scheduled working hours, and (3) the Call Back is for an emergency arising out of situations involving real or potential loss of service, property or personal danger. Employees called back will be expected to respond directly to the location of the problem. Compensation is per Call Out as reported on timecard and will be paid as follows: Monday through Friday: $140 per day Saturday and Sunday: $200 per day E. NIGHT SHIFT PREMIUM Night shift differential shall be paid at the rate of five percent (5%) to regular full-time employees who are regularly assigned to shift work between 6:00 p.m. and 8:00 a.m., or to employees who are temporarily assigned to work a full shift between 6:00 p.m. and 8:00 a.m. F. UNIFORM PURCHASE PLAN - SWORN POLICE, FIRE PERSONNEL, and OPEN SPACE PERSONNEL Uniforms, including cleaning, will be provided with replacement provisions on an as-needed basis in conformance with department policy. 8 G. SAFETY DIFFERENTIALS 1. Police Department - Personnel Development Program Pursuant to administrative rules governing eligibility and qualification, one of the following differentials, whichever is higher, may be granted to sworn police personnel: A. P.O.S.T. Intermediate Certificate: five percent (5%) above base salary B. P.O.S.T. Advanced Certificate: seven and a half (7 ½%) above base salary 2. Fire Department - EMT Differential Pursuant to administrative rules governing eligibility and qualification, the following differential may be granted to sworn Fire personnel: A. EMT Differential: three percent (3%) above base salary SECTION III. BENEFIT PROGRAMS This section applies to all eligible regular management and professional positions including Council- Appointed Officers as applicable and including Council Members for Section III A – I as applicable. Eligibility shall be in conformance with the Merit Rules and Regulations, Personnel Policies and Administrative guidance issued by the City Manager for the purposes of clarification and interpretation. A. MEDICAL 1. Effective Date of Coverage for New Employees For newly hired regular employees coverage begins on the first day of the month following date of hire for the health plan, dental plan, vision care plan, long term disability and life insurance plans if these benefits are elected. Dual coverage. When a City employee is married to or has a registered domestic partner with the California Secretary of State with another City employee, each shall be covered only once (as an individual or as a spouse of the other City employee, but not both) and dependent children, if any, shall be covered by only one spouse. 2. Active Employee Health Plan a) During the term of this compensation plan, the maximum City contribution towards medical 9 premiums for eligible full-time employees per category shall be up to a maximum of the following for any plan: Medical Premium Category (Coverage Level) Maximum City Contribution Effective July 1, 2025 Single (EE only) $943 2- Party (EE +1) $1,885 Family (EE + 2 or more) $2,444 Effective January 1, 2027, the City will increase its maximum contribution to medical premiums by the following percentages: • Employee only: 2% • Employee plus one: 3% • Employee family: 5% Medical Premium Category Total Maximum City Contribution (inclusive of PEMHCA contribution*) effective January 1, 2027 Employee only Employee plus one Employee family $962 $1,942 $2,566 *The PEMHCA minimum changes per statutory determination. Any increases to the PEMHCA minimum during the term of this plan will result in a corresponding decrease to the amount of the additional City contribution, so that the total maximum City contribution never exceeds the amount listed in the “Maximum City Contribution” columns above. The City’s total maximum contribution towards medical premiums for eligible part time employees shall be prorated based on the number of hours per week the part-time employee is assigned to work. b) Coverage For Domestic Partners 1) Domestic Partnership Registered with the California Secretary of State: Employees may add their domestic partner as a dependent to their elected health plan coverage if the domestic partnership is registered with the Secretary of State and will be eligible for the Alternative Medical Benefit Program in paragraph 3 below. 2) Domestic Partnership Not Registered with the California Secretary of State: Domestic partners who meet the requirements of the City of Palo Alto Declaration of Domestic 10 Partnership, and are registered with the Human Resources Department, will be eligible for a stipend of up to two hundred and eighty four dollars ($284.00) per month toward the cost of an individual health plan. Evidence of premium payment will be required with request for reimbursement. c) Alternative Medical Benefit Program If a regular employee and/or the employee’s dependent(s) are eligible for and elect to receive medical insurance through another non-City of Palo Alto employer-sponsored or association medical plan, the employee may choose to waive their right to the City of Palo Alto’s medical insurance and receive cash payments in the amount of $284.00. Council Members are not eligible for the Alternative Medical Benefit Program. Examples of waivers eligible for this payment are: • Employee waives all applicable City medical coverage; or • Employee is eligible to enroll his or her spouse or register his or her domestic partner with the California Secretary of State and waives medical coverage for the spouse or domestic partner; or • Employee has additional eligible dependents and waives family-level medical coverage. Participation must result in a health insurance cost savings to the City and payments per employee shall not exceed a total of two hundred eighty four dollars ($284.00) per month. To participate in the program the employee and dependents must be eligible for coverage under PEMHCA medical plans, complete a waiver of medical coverage form, and provide proof of eligible alternative medical coverage. When a City employee is married to or has a registered domestic partner with the California Secretary of State with another City employee, each shall only be eligible once (as an individual or as a spouse of the other City employee, but not both) and not eligible for a waiver. Payments will be made in the employee’s paycheck beginning the first month following the employee’s completion of the waiver form. Payments are subject to state and federal taxes and are not considered earnings under PERS law. Employees are responsible for notifying the City of any change in status affecting eligibility for this program (for example, life changes affecting dependent’s eligibility for medical coverage through the employee) and will be responsible for repayment of amounts paid by the City contrary to the terms of this program due to the 11 employee’s failure to notify the City of a change in status. Employees are required to annually submit waiver forms in order to continue to receive these payments. Failure to submit annual waiver may result in loss of this alternative medical benefit. B. RETIREE HEALTH PLAN a) Employees Hired Prior to January 1, 2004 Monthly City-paid premium contributions for a retiree-selected health plan through the CalPERS Health Benefits Program will be made as provided under the Public Employees” Medical and Hospital Care Act. The City’s monthly employer contribution for each employee retiring on or after January 1, 2007 and prior to March 31, 2011 shall be the amount necessary to pay for the cost of his or her enrollment in a health benefits plan up to the monthly premium for the second most expensive plan offered to management and professional personnel during the contract term (among the existing array of plans.) The City’s contribution for an employee hired before January 1, 2004 who retires on or after March 30, 2011 shall be the same contribution amount it makes from time to time for active City employees. b) Employees Hired after January 1, 2004 For employees hired after January 1, 2004, the PERS law vesting schedule set forth in Government Code section 22893 will apply. Under that law, an employee is eligible for 50% of the specified employer health premium contribution after ten (10) years of service credit, provided at least five (5) of those years were performed at the City of Palo Alto. After ten (10) years of service credit, each additional service credit year increases the employer contribution percentage by 5% until, at 20 years’ service credit, the employee will be eligible upon retirement for 100% of the specified employer contribution and 90% of their dependent coverage. The City of Palo Alto’s health premium contribution for eligible employees shall be the minimum contribution set by PERS under section 22893 based on a weighted average of available health plan premiums. c) On July 6, 2016 the City provided active employees who were hired before January 1, 2004 with a one-time opportunity to opt-in to retiree health benefits provided under California Government Code section 22893. C. DENTAL a) The City will maintain the present level of benefits on the City-sponsored dental program. The City provides a base dental plan for all eligible employees and dependents. Additionally, eligible employees will have the option to enroll in a dental “buy-up” plan. b) The City shall pay all premium payments on behalf of employees and dependents who are eligible and enrolled for coverage under the base dental plan. Dependents will 12 include domestic partners. Employees will be responsible for premium payments required to enroll in the “buy up” dental plan. C. LIFE INSURANCE a) Basic Life Insurance The City shall provide a basic group term life insurance with Accidental Death and Dismemberment (AD&D) coverage, in an amount equal to the employee's annual basic pay (rounded to the next highest $1,000) at no-cost to the employee. AD&D pays an additional amount equal to the employee’s annual basic pay (rounded to the next highest $1,000). b) Supplemental Life And AD&D Insurance An employee may, at their cost, purchase voluntary life insurance and voluntary AD&D coverage equal to one- or two-times their annual salary. The maximum amount of life insurance available to the employee is up to $500,000 and the maximum amount of AD&D coverage available is up to $500,000. Employee may, at their cost, purchase voluntary spousal and child life insurance. D. DEPENDENT CARE ASSISTANCE PROGRAM (DCAP) AND HEALTHCARE FLEXIBLE SPENDING ACCOUNT (HCFSA) The City shall continue to provide a Dependent Care Assistance Program (DCAP) and Medical Flexible Spending Accounts (FSA) for employees as permissible under Section 125 of the Internal Revenue Code. Calendar year limits are set by the IRS. a) DCAP: The City will provide a dependent care assistance program for employees subject to the provisions of applicable law. Disputes regarding the administration of the plan shall be subject to the dispute resolution procedure provided by the plan document. b) HCFSA: The City will provide healthcare flexible spending program for employees subject to the provision of applicable law. Disputes regarding the administration of the plan shall be subject to the dispute resolution procedure provided by the plan document. E. VISION a) The City provides a base vision plan for all eligible employees and dependents. Additionally, eligible employees will have the option to enroll in a vision “buy-up” plan. The City shall pay all premium payments on behalf of employees and dependents who are eligible and enrolled in coverage under the base vision plan. Employees will be responsible for premium payments required to enroll in the “buy up” vision plan. Dependents include domestic partners. 13 b) Benefits for regular part-time employees will be prorated as follows: Employees hired after January 1, 2004, who will work less than full time, will receive prorated premium costs for vision benefits in accordance with their percentage of a full-time work schedule. Vision benefits for regular part-time employees hired or assigned to a part-time schedule will be prorated in accordance with their percentage of a full- time work schedule. F. DEFERRED COMPENSATION The City will continue to provide a 457 Deferred Compensation Plan for employees to make pre or post tax contributions. G. EMPLOYEE ASSISTANCE PROGRAM The Employee Assistance Plan (EAP) provides employees with confidential personal counseling, work and family related issues, eldercare, substance abuse, etc. In addition, EAP programs provide a valuable tool for supervisors to refer troubled employees to professional outside help. This service staffed by experienced clinicians is available to employees and their dependents by calling a toll-free phone line 24 hours a day, seven days a week. Guidance is also available online. H. COMMUTE INCENTIVES and PARKING a. Civic Center Parking. Employees assigned to Civic Center and adjacent work locations. The City will provide a Civic Center Garage parking permit. Employees hired after June 30, 1994 may initially receive a parking permit for another downtown lot, subject to the availability of space at the Civic Center Garage. b. Alternative Commute Incentives: Employees who qualify may voluntarily elect commute incentives, including but not limited to the following options, for those using an eligible commute alternative on 60% or more of their scheduled work days per month: a) Public Transit, Parking and Vanpool. The City provides tax-free commute incentives up to the current IRS limit, as may be amended from time to time. Administration of this benefit shall be subject to the rules and regulations of the third- party administrator. 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. 14 d) Carpool. The City will provide with a taxable incentive of $30 per month to each eligible employee in a carpool with two or more licensed drivers. e) Walk. The City will provide employees with a taxable incentive of $20 per month to eligible employees who walk to work. I. LONG TERM DISABILITY INSURANCE 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. J. EXCESS BENEFIT This benefit is designed to meet the requirements of Section 125 of the Internal Revenue Code, with exception of Gym or Health Club Membership. Effective January 1, 2026, every calendar year, each employee will be provided with $3,000 that they can designate among the following options, subject to caps pursuant to IRS regulations: a) Medical Flexible Spending Account (Medical FSA). Provides reimbursement for excess medical/dental/vision, or expenses that are incurred by employees and their dependents, subject to the provision of applicable law. b) Dependent Care Flexible Spending Account (Dependent Care FSA). Provides reimbursement for qualified dependent care expenses under the City's Dependent Care Assistance Program (DCAP), subject to the provision of applicable law. c) Non-taxable Professional Development Spending Account. Provides reimbursement for Non-Taxable professional development expenses (e.g., job-related training and education, seminars, training manuals, etc.) to the extent they are not paid or reimbursed under any other plan of the City. d) Gym or Health Club memberships. Provides reimbursement for annual or monthly memberships, including personal trainers. Reimbursement of this expense is taxable to the employee. e) Deferred Compensation. Provides a one-time contribution to the employee’s City- sponsored 457 Deferred Compensation plan. Amounts designated by employees to either the Medical FSA, Dependent Care FSA, or Professional Development options are done so on a “use–it-or-lose-it” basis. This means that any amounts designated and not used by the end of the calendar year (or end of the 15 extended grace period for the medical FSA) will be forfeited by the employee and returned to the plan. Specified amounts under this benefit will be applied on a pro-rated basis for employees who are part-time or who are in a management or professional pay status for less than the full fiscal year. Such benefits will be pro-rated in the first year of employment (based on hire date) but will not be pro-rated upon separation of employment. K. PROFESSIONAL DEVELOPMENT The purpose of this program is to provide employees with resources to improve and supplement their job and professional skills. Reimbursement for authorized self- improvement activities may be granted each management and professional employee up to a maximum of five hundred dollars ($500) per fiscal year. A departmental training fund of one thousand dollars per employee ($1,000) will be established for subject matter, leadership or other training that the Department Director identifies as a need for employees within that Department. The following items are eligible for reimbursement: a) Civic and professional association memberships b) Conference participation and travel expenses, which must occur within the compensation plan period. c) Educational programs, books and videos, and tuition reimbursement designed to maintain or improve the employee's skills in performing their job or future job opportunities, should support the City’s mission or be necessary to meet the educational requirements for qualification for employment. Permissible educational expenses are refresher courses, courses dealing with current developments, academic or vocational courses, as well as the travel expenses associated with the courses as defined by the City’s travel expense report from the Policy & Procedures Manual Section 1-02 ASD. d) Professional and trade journal subscriptions not to exceed 12 months. Approval is at the discretion of department head and signature is required on reimbursement form. Amounts under this professional development program will be pro-rated in the first year of employment or promotion into a position covered by this Compensation Plan 16 L. MEAL ALLOWANCE Management and professional employees assigned to attend night meetings are eligible to receive reimbursement for up to $38.00 per dinner, or as otherwise defined in Policy 1-66/ASD. This provision covers only receipted meals actually taken and submitted for reimbursement. IV. LEAVES This section applies to all management and professional employees and does not include Council Members or Council-appointed officers. A. SICK LEAVE a) Sick leave shall be accrued bi-weekly provided the employee has been in a pay status for 50% or more of a bi-weekly pay period. Sick leave shall be accrued at the rate of 3.7 hours per bi-weekly pay period for those employees working a 40-hour duty schedule. Those assigned work schedules which are greater or lesser than 40 hours will accrue sick leave at the ratio of their work schedule to 40 hours. b) Employees may use up to thirty (30) hours of sick leave per calendar year for personal business. The scheduling of such leave is subject to the approval of the appropriate level of Management. c) Employees leaving the municipal service shall forfeit all accumulated sick leave, except as otherwise provided by law or by Section 609 of the Merit Rules and Regulations. In the event that notice of resignation is given, sick leave may be used only through the day which was designated as the final day of work by such notice. d) Sick leave may be used for illness in the immediate family, including a registered domestic partner or other individuals required by applicable law. e) In accordance with the City Merit Rules and Regulations, a new employee may, if necessary, use up to 48 hours or shift equivalent of sick leave at any time during the first six (6) months of employment. B. HOLIDAY The following holidays are recognized as municipal holidays for pay purposes, and regular, employees shall have these days off with pay, except as otherwise provided in these rules: January 1 Veterans' Day, November 11 Third Monday in January Thanksgiving Day 17 Third Monday in February Day after Thanksgiving Day Last Monday in May December 25 July 4th Either December 24, or December 31 as provided below First Monday in September Second Monday in October Employees shall be excused with pay for the full work shift on either December 24 or December 31, provided that City facilities remain open with reduced staffing levels as determined by the various departments. Neither day shall be considered a holiday for purposes of premium pay. Employees who are not excused pursuant to this provision shall have one shift of vacation credit added to their accrual. In the event that any of the aforementioned days, except December 24 or December 31, fall on a Sunday, the following Monday shall be considered a holiday. In the event that any of the aforementioned days falls on a Saturday, the preceding Friday shall be considered a holiday for pay purposes. If December 24 and 31 fall on Sunday, the preceding Friday will be designated for purposes of excused time off. Exceptions to this provision may be authorized by the City Manager to conform to various memoranda of understanding. C. IN LIEU HOLIDAY PAY Employees who work a schedule where a regular day off falls on a holiday will be paid for the hours they would have normally worked on that day. If the holiday falls on a non-workday for an exempt employee, the employee may, with supervisory approval, take another day off within the pay period or the following pay period. D. MANAGEMENT ANNUAL LEAVE a) Exempt Employees Regular management and professional exempt employees will be credited with 80 hours of annual leave. This leave is granted in recognition of the extra hours Management and Professional employees work over their regular schedule. This leave may be taken as paid time off, added to vacation accrual (subject to vacation accrual limitations), taken as cash, or taken as deferred compensation. When time off is taken under this provision, 10-hour shift workers will receive one shift off for each 8 hours charged; 24-hour shift workers will receive one-half (½) shift off for each 8 hours charged. Entitlement under this provision will be reduced on a prorated basis for part-time status, or according to the number of months in paid status during the year; employees who have used more than the pro-rated share at the time they leave City service shall be required to repay the balance or have it deducted from their final check. Unused balances as of the end of the year will be paid in cash unless a different option as indicated above is elected by the employee. 18 Council appointed Officers can, at their discretion, award additional management annual leave to employees. Award of additional leave is intended to acknowledge and recognize excellent performance and/or longevity in alignment with the annual merit cycle. E. VACATION Vacation is accrued when an employee is in pay status and is credited on a bi- weekly basis. Total vacation accrual may not exceed three (3) times the annual rate of accrual. Each eligible employee shall accrue vacation at the following rate for continuous service performed in pay status: a) Less than nine (9) years. For employees completing less than nine (9) years continuous service: 120 hours vacation leave per year; provided that: i. The City Manager is authorized to adjust department head annual vacation accrual to provide for a maximum of 160 hours for those hired between July 1, 1996 and June 30, 2001; and ii. The City manager is authorized to adjust the annual vacation accrual of employees hired on or after July 1, 2001, to provide up to 40 additional hours (i.e., to a maximum annual accrual of 160 hours) for service with a prior employer. b) Nine (9), but less than fourteen (14) years. For employees completing nine (9), but not more than fourteen (14) years continuous service; 160 hours vacation per year. c) Fourteen (14), but less than nineteen (19) years. For employees completing fourteen (14), but not more than nineteen (19) years continuous service; 180 hours vacation leave per year. d) Nineteen (19) or more years. For employees completing nineteen (19) or more years continuous service; 200 hours vacation leave per year. e) Employees are eligible to cash out vacation accrual balances in excess of eighty (80) hours. An employee may cash out a minimum of eight (8) hours to a maximum of one hundred twenty (120) hours of accrued vacation provided the employee has taken eighty (80) vacation hours in the previous twelve (12) months and has followed the election procedures set forth in this section. Employees must elect the number of vacation hours they will cash-out during the next calendar year, up to the maximum of one hundred twenty (120) hours. For the following calendar year, employees will make their election for vacation hours to cash out during the annual Benefit Open Enrollment period. The election will apply only to vacation hours accrued in the next calendar year and that are eligible for cash-out. 19 The election to cash-out vacation hours in each designated year will be irrevocable. This means that employees who elect to cash-out vacation hours must cash-out the number of accrued hours pre-designates on the election form. Employees who do not elect a cash-out amount during the annual Benefit Open Enrollment period of the prior calendar year waive the right to cash out any leave in the following tax year. Employees who elect cash-out amounts may request a cash-out at any time in the designated tax year by submitting a cash-out form to payroll. Payroll will complete the cash-out upon request, provided the requested cash-out amount has accrued and is consistent with the amount the employee pre-designated. If the full amount of hours designated for cash-out is not available at the time of cash-out request, the maximum available will be paid. For employees who have not requested cash-out of the elected amount by November 1 of each year, Payroll will automatically cash-out the elected amount in a paycheck issued on or after the payroll date including November 1. F. BEREAVEMENT Leave of absence with pay of three (3) days may be granted an employee by the head of their department in the event of death in the employee’s family, which is defined for purposes of this section as wife, husband, son, son-in-law, step-son, daughter, daughter-in- law, step-daughter, mother, mother-in-law, father, father-in-law, brother, brother-in-law, sister, sister-in-law, grandmother, grandmother-in-law, grandfather, grandfather-in-law, grandchild, aunt, uncle, niece, nephew, registered domestic partner, or a close relative residing in the household of employee. Such leave shall be at full pay and shall not be charged against the employee’s accrued vacation or sick leave. Employees may supplement paid bereavement leave with accrued leave (including vacation or sick leave) or unpaid leave to reach a total of five (5) workdays of time off per incident of bereavement. Requests for leave in excess of five (5) days shall be subject to the approval of a Council-Appointed Officer for employees under their control. Use of accrued leave credits during leaves of absence. During unpaid leaves of absence for disability or other reasons, the employee may elect and the City may require the employee to use accrued paid vacation and sick leave in a manner consistent with state and federal law. Requests for leaves without pay shall not be unreasonably denied. In order to avoid misunderstandings, all leaves without pay must be in writing to be effective. V. RETIREMENT A. MISCELLANEOUS PENSION FORMULAS: a) Miscellaneous Pension Group A: 2.7% at 55. The City provides retirement benefits under 20 the California Public Employees Retirement System at the level of 2.7% at age 55 for employees hired before July 17, 2010, with a one year final compensation period. b) Miscellaneous Pension Group B: 2% at 60. For miscellaneous employees hired on or after July 17, 2010, and before January 1, 2013, and employees hired on or after January 1, 2013 who are not “new members” of CalPERS as defined in the Public Employees’ Pension Reform Act (often referred to as “Classic” CalPERS members)the City offers the CalPERS retirement formula two percent (2.0%) of final salary at age sixty (60), with a one (1) year final compensation period. c) Miscellaneous Pension Group C: 2% at 62. Employees hired on or after January 1, 2013 meeting the definition of “new member” under the Public Employees’ Pension Reform Act (Gov’t. Code s. 7522 et seq.) shall be subject to all of the provisions of that law, including but not limited to the two percent at age 62 (2%@62) retirement formula with a three (3) year final compensation period. B. SAFETY PENSION FORMULAS: a) Safety Pension Group A: 3% at 50. For Safety members, the City currently offers the CalPERS "3% at 50" full formula (Section 21362.2) benefit, with a one (1) year final compensation period. b) Safety Pension Group B: 3% at 55. Local Fire Safety members newly hired after June 8, 2012 will be placed in the 3%@55 formula. As soon as administratively possible, the City intends to modify the Local Police Safety formula for new hires to 3%@55 formula. c) Safety Pension Group C: New employees hired on or after January 1, 2013 who are “new members” as defined by the California Public Employees’ Pension Reform Act (PEPRA), will be subject to the terms of that statute, with a three (3) year final compensation period. C. EMPLOYEE PERS SHARE. a) Miscellaneous Employee Shares: • Employees in Miscellaneous Pension Group A shall pay the full eight percent (8%) employee contribution. • Employees in Miscellaneous Pension Group B shall pay the full seven percent (7%) employee contribution. • Employees in Miscellaneous Pension Group C shall pay the employee contribution required by the Public Employees Pension Reform Act, calculated at fifty percent (50%) of the normal cost. b) Safety Employee Shares: a. Employees in Safety Pension Group A shall pay the full nine percent (9%) PERS employee contribution. 21 b. Employees in Safety Pension Group B shall pay the full eight percent (9%) PERS employee contribution. c. Employees in Safety Pension Group C shall pay the employee contribution required by the Public Employees Pension Reform Act, calculated at fifty percent (50%) of the normal cost. D. EMPLOYER SHARE a) Miscellaneous (Non-Safety) Management and Professional: As soon as administratively possible, but no sooner than pay period including July 1, 2017 each Miscellaneous (non-Safety) Management and Professional employee shall pay one- half percent (0.5%) of their salary toward the employer cost of retirement in accordance with Section 20516 of the California Government Code. Effective the first full pay period including July 1, 2018, each Miscellaneous (non-Safety) Management and Professional employee shall pay an additional one-half percent (0.5%) of their salary toward the employer cost of retirement in accordance with Section 20516 of the California Government Code. This will result in Miscellaneous (non-Safety) Management and Professional employees paying a total of one (1) percent of the employer share in addition to their employee contribution. b) Safety Management: As soon as administratively possible, but no sooner than pay period including July 1, 2017 each Safety Management employee shall pay one and one-half percent (1.5%) of their salary toward the employer cost of retirement in accordance with Section 20516 of the California Government Code. Effective the first full pay period including July 1, 2018, each Safety Management employee shall pay an additional one and one-half percent (1.5%) of their salary toward the employer cost of retirement in accordance with Section 20516 of the California Government Code. This will result in Safety Management employees paying a total of three (3) percent of the employer share in addition to their employee contribution. E. AT-WILL STATUS Certain Management and Professional Positions are designated as having “at-will” employment status. Employees hired into “at-will” positions shall have no constitutionally protected property or other interest in their employment with the City. Notwithstanding any provision in the Merit System Rules and Regulations or any other City rule, policy or procedure, at-will employees have no right to continued employment or pre-or post-disciplinary due process and work at the will and pleasure of 22 the hiring authority (City Council, City Manager or Council-Appointed Officer). Work for an at-will employee may be eliminated and/or the employee may be terminated, or asked to resign, at any time, with or without cause, upon notice to that employee, and the employee may resign at any time upon written notice to the hiring authority. a) At-will Management & Professional positions. Department heads hired after July 1, 2004 and prior to the date of adoption of this plan were hired as at-will employees whose terms of employment are specified by an employment contract that includes a severance package. Effective July 1, 2012, new employees hired or promoted to department head, assistant department director, and all other positions listed on Attachment B shall be at-will employees. At-will employees who are terminated or asked to resign shall, upon execution of a release of all claims against the City, be eligible for a severance payment equivalent to four (4) weeks of salary and benefits, increasing after completion of the first full year of service by one (1) week for every completed year of service, up to a maximum of 12 weeks. For example, an at-will employee who has completed six (6) years of service would be eligible to receive ten (10) weeks of severance (4 weeks plus 1 week for each year of service). No severance shall be paid if the employee is terminated for serious misconduct involving abuse of their office or position, including but not limited to waste, fraud, violation of the law under color of authority, misappropriation of public resources, violence, harassment or discrimination. If the employee is later convicted of a crime involving such abuse of their position the employee shall fully reimburse the City as set forth in Government Code section 53243.3. b) Provisional employees. The City has created a program for Provisional employment when funding is available. The program’s purpose is to create limited duration senior management level work for the City Manager’s Office or as designated by the City Manager. A Provisional Employee will be an “at will” employee whose term of employment shall be no more than two (2) years. A Provisional Employee shall be exempt and not eligible to earn overtime. A Provisional Employee will receive limited benefits as specified in an Employment Agreement. c) Management and Legal Fellows. The City has created programs for Management Fellows and Legal Fellows when funding is available. The programs’ purpose is to create limited duration entry level positions for management graduates and lawyers. Fellows will be “at will” employees whose term of employment shall be no more than two (2) years. Fellows shall be PERS exempt to the extent allowed by law, but may receive vacation, sick leave, health care benefits and other limited benefits, as determined by the City Manager or City Attorney. Sections I and II of this Plan shall not apply to Management and Legal Fellows, except as specified by the City Manager 23 or City Attorney. F. HIRING PROVISIONS a) Reimbursement For Relocation Expense The City of Palo Alto, in rare instances, may provide a Basic Relocation Benefits Package for new management and professional employees, upon the approval of the City Manager or designated subordinate. In addition, the provision of “Optional Benefits” or portions thereof, may be extended for exceptional circumstances and only the approval of the City Manager or designee, or for Council-appointed officers, the City Council. The details of the Relocation Expense program are specified in the City’s Relocation Expense policy and all relocation reimbursements shall be subject to the provisions of that policy. b) Hiring Incentive Council Appointed Officers may authorize a hiring incentive for critical Management and Professional personnel vacancies. Hiring incentives must be funded through department salary savings. G. GRIEVANCES REGARDING COUNCIL APPOINTED OFFICERS Notwithstanding the grievance procedures provided in Chapter 11 of the City of Palo Alto’s Merit System Rules and Regulations, any Management and Professional employee who is supervised by a Council Appointed Officer and has a grievance against that Council Appointed Officer or regarding the conduct of that Council Appointed Officer shall, following an attempt to resolve the grievance pursuant to Step One (informal discussion), summarize the grievance regarding the Council Appointed Officer in writing and submit it to the Director of Human Resources for review and resolution using the methods they consider appropriate. 24 Attachment B At-Will Positions Management and Professional Unit The intent of this provision under the Management/Professional Compensation Plan is to designate classifications at the department head, assistant director, deputy director, division manager and senior professional levels as at-will. The applicable Council Appointed Officer may designate newly created positions at those levels not included on this list as at-will. Existing classifications that shall be at-will include but are not limited to: Department Heads- All departments Assistant Directors- All departments Deputy Directors- All departments Division Managers - All departments Administrative Services Director, Administrative Services/Chief Financial Officer Director, Office of Management & Budget Assistant Director, Administrative Services Division Managers such as: Budget Manager; Finance Manager; Chief Procurement Officer; Manager, Real Property; Treasury Manager; Principal Analyst; Revenue Collections Manager City Attorney Chief Assistant City Attorney Assistant City Attorney Deputy City Attorney Legal Fellow City Clerk Assistant City Clerk Deputy City Clerk City Manager Assistant City Manager Chief Operating Officer Deputy City Manager Assistant to the City Manager Assistant to City Manager Chief Communications Officer Communications Manager 25 Chief Transportation Official Manager Economic Development Management Fellow Community Services Director, Community Services Assistant Director, Community Services Manager, Community Services Manager, Community Services Program Senior Human Resources Director of Human Resources/Chief People Officer Assistant Director, Human Resources Human Resources Manager Senior Administrator Human Resources IT Director, IT/Chief Information Officer Manager, Information Technology Library Director, Libraries Assistant Director, Library Services Division Head, Collection & Technical Services Manager, Library Services Planning & Development Services Director, Planning & Development Services Assistant Director, Planning & Development Services Planning Manager Division Manager, Chief Planning Official Development Services Director Chief Building Official Assistant Building Official Planning Manager Public Safety Chief of Police/Director of Public Safety Fire Chief /Assistant Public Safety Director Assistant Police Chief 26 Emergency Services Director Deputy Director – Technical Services Division (police department) Deputy Fire Chief Public Works Director, Public Works/City Engineer Assistant Director, Public Works – Environmental Services Assistant Director, Public Works – Public Services Assistant Director, Public Works – Engineering Manager, Airport Manager, Fleet Water Quality Control Plant Manager Utilities Director, Utilities Chief Operating Officer International Association of Fire Fighters Salary Schedule Effective First Full Pay Period Following July 1, 2025 (7/12/2025) Effective First Full Pay Period Effective First Full Pay Period Following July 1, 2027 (7/10/2027) Following July 1, 2026 (7/11/2026)FLSA SH/NS Job TitleJob Code 3% Increase 3.75% Increase 3.75% Increase Step Rate Monthly Annual Step Rate Monthly Annual Step Rate Monthly Annual 1 2 3 4 5 6 1 2 3 4 5 6 1 2 3 4 5 6 1 2 3 4 5 6 1 2 3 4 5 6 1 2 3 4 5 6 1 2 3 4 5 6 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 46.46 48.91 51.48 54.19 57.04 60.04 55.51 58.43 61.50 64.74 68.15 71.74 58.26 61.33 64.56 67.96 71.54 75.30 43.49 45.78 48.19 50.73 53.40 56.21 65.02 68.44 72.04 75.83 79.82 84.02 77.72 81.81 86.12 90.65 95.42 100.44 81.61 85.91 90.43 95.19 100.20 105.47 1 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 48.21 50.75 53.42 56.23 59.19 62.30 57.60 60.63 63.82 67.18 70.72 74.44 60.45 63.63 66.98 70.51 74.22 78.13 45.13 47.50 50.00 52.63 55.40 58.32 67.46 71.01 74.75 78.68 82.82 87.18 80.64 84.88 89.35 94.05 99.00 104.21 84.67 89.13 93.82 98.76 103.96 109.43 1 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 50.02 52.65 55.42 58.34 61.41 64.64 59.76 62.91 66.22 69.71 73.38 77.24 62.73 66.03 69.50 73.16 77.01 81.06 46.83 49.29 51.88 54.61 57.48 60.51 69.99 73.67 77.55 81.63 85.93 90.45 83.66 88.06 92.69 97.57 102.71 108.12 87.86 92.48 97.35 102.47 107.86 113.54 2 3 2 3601 602 603 604 634 635 636 Non‐exempt SH SH SH SH NS NS NS FIRE APPARATUS OP 4 5 4 5 $ $ 14,569.71 17,408.91 $ $ 174,836.48 208,906.88 6 1 $ $ 15,118.13 18,064.11 $ $ 181,417.60 216,769.28 6 1 $ $ 15,685.97 18,743.57 $ $ 188,231.68 224,922.88 2 3 2 3Non‐exempt FIRE CAPTAIN 4 5 4 5 6 1 2 6 1 2 3 4 3 4Non‐exempt Non‐exempt Non‐exempt Non‐exempt Non‐exempt FIRE INSPECTOR FIRE FIGHTER 5 6 5 6$ $ $ 18,272.80 13,640.29 14,563.47 $ $ $ 219,273.60 163,683.52 174,761.60 $ $ $ 18,959.55 14,152.32 15,111.20 $ $ $ 227,514.56 169,827.84 181,334.40 $ $ $ 19,670.56 14,683.76 15,678.00 $ $ $ 236,046.72 176,205.12 188,136.00 1 2 1 2 3 4 3 4 5 6 5 6 1 2 1 2 3 4 3 4FIRE APPARATUS OP 5 6 5 6 1 2 1 2 3 4 3 4FIRE CAPTAIN 5 6 5 6 $ $$ $ 17,409.60 18,281.47 $ $ 208,915.20 219,377.60 $$ $ 18,063.07 18,967.87 $ $ 216,756.80 227,614.40 $$ $ 18,740.80 19,680.27 $ $ 224,889.60 236,163.20 $ $ $ $ 1 2 $ $ $ $ 1 2 $ $ $3 4 3 4FIRE INSPECTOR $ $5 6 $5 6 $ $$$ Effective First Full Pay Period Following July 1, 2025 (7/12/2025) Effective First Full Pay Period Following July 1, 2026 (7/11/2026) Effective First Full Pay Period Following July 1, 2027 (7/10/2027)FLSA SH/NS Job TitleJob Code 3% Increase 3.75% Increase 3.75% Increase Step Rate Monthly Annual Step Rate Monthly Annual Step Rate Monthly Annual 1 2 3 $ $ $ 60.88 64.08 67.45 1 $ $ $ 63.17 66.49 69.99 1 $ $ $ 65.55 69.00 72.63 2 2 3 4 3 4637 663 Non‐exempt Non‐exempt NS NS FIRE FIGHTER 4 5 6 1 2 3 4 5 1 $ $ $ $ $ $ $ $ $ 71.00 74.74 78.67 69.18 72.82 76.65 80.68 84.93 81.61 $ $ $ $ $ $ $ $ $ 73.67 77.55 81.63 71.76 75.54 79.52 83.71 88.12 84.67 $ $ $ $ $ $ $ $ $ 76.45 80.47 84.70 74.47 78.39 82.52 86.86 91.43 87.86 5 6 1 2 3 4 5 6 1 2 3 4 $ $ 13,636.13 14,721.20 $ $ 163,633.60 176,654.40 $ $ 14,149.20 15,274.13 $ $ 169,790.40 183,289.60 $ $ 14,681.33 15,847.87 $ $ 176,176.00 190,174.40 Fire Inspector (Non‐Sworn) 5 1 5 1 2 3 4 5 6 1 2 3 4 $ $ $ 85.91 90.43 95.19 100.20 105.47 81.61 85.91 90.43 95.19 2 3 4 5 6 $ $ $ 89.13 93.82 98.76 103.96 109.43 84.67 89.13 93.82 98.76 2 3 4 5 6 $ $ 92.48 97.35642 646 Non‐exempt NS NS 40‐HR TRAINING CAPTAIN $102.47 107.86 113.54 87.86 $$$ $$$18,281.47 $219,377.60 $$18,967.87 $227,614.40 $19,680.27 $236,163.20 $1 2 $1 2 $ $ $ $ $ $ $ $ $ 92.48 3 4 5 3 4 5 97.35 Non‐exempt HAZ MAT INSPECTOR $102.47 5 6 $100.20 105.47 $103.96 109.43 $ $ 107.86 113.54$18,281.47 $219,377.60 6 $18,967.87 $227,614.40 6 $19,680.27 $236,163.20$$ Palo Alto Fire Chiefs' Association (PAFCA) Salary Schedule Non-Shift Job Code Effective 07/12/2025 (4.5% Increase for Shift, 5% Increase for Non-Shift) Classifications Battalion Chief 40-hour workweek Grade Codes Hourly Rate Approx Monthly Salary Approx. Annual Salary 018 28 $136.17 $139.85 $139.85 $23,603 $24,241 $24,241 $283,234 $290,888 $290,888 015 Battalion Chief EMT 40-hour workweek 28E 28E2019Battalion Chief EMT, Training 40-hour workweek Shift Job Code Classifications Grade Codes Approx Monthly Salary Approx. Annual Salary 116 016 Battalion Chief 56-hour workweek 030 $92.68 $95.15 $22,491 $23,090 $269,885 $277,077Battalion Chief EMT 56-hour workweek 030E Non-Shift Job Code 018 Effective 7/11/2026 (3% Increase) Classifications Grade Codes Hourly Rate Approx Monthly Salary Approx. Annual Salary Battalion Chief 40-hour workweek 28 $140.26 $24,312 $291,741 015 Battalion Chief EMT 40-hour workweek 28E 28E $144.05 $144.05 $24,969 $24,969 $299,624 $299,6242019Battalion Chief EMT, Training 40-hour workweek Shift Job Code 116 Classifications Grade Codes Approx Monthly Salary Approx. Annual Salary Battalion Chief 56-hour workweek 030 $95.47 $98.01 $23,168 $278,009 016 Battalion Chief EMT 56-hour workweek 030E $23,784 $285,406 Non-Shift Job Code 018 Effective 7/10/2027 (5% Increase) Classifications Grade Codes Hourly Rate Approx Monthly Salary Approx. Annual Salary Battalion Chief 40-hour workweek 28 $147.28 $25,529 $306,343 015 Battalion Chief EMT 40-hour workweek 28E 28E $151.26 $151.26 $26,219 $26,219 $314,621 $314,6212019Battalion Chief EMT, Training 40-hour workweek Shift Job Code 116 Classifications Grade Codes Approx Monthly Salary Approx. Annual Salary Battalion Chief 56-hour workweek 030 $100.25 $102.92 $24,328 $291,928 016 Battalion Chief EMT 56-hour workweek 030E $24,976 $299,704 City of Palo Alto Utilities Management and Professional Association of Palo Alto (UMPAPA) Salary Schedule Effective 7/12/2025 Grade Codes Min Hourly Rate Max Hourly Rate Approx Max Monthly SalaryJob Code Classifications Approx. Max Annual Salary 2076 Utilities Administrative Assistant 0700 0230 $41.46 $55.28 $9,582 $114,983 $299,8741002 Assistant Director, Utilites Customer Support Services $108.13 $144.17 $24,990 6 Assistant Director, Electric and Fiber Utilities Utilities 0190 $117.94 $157.24 $27,255 $327,060 1003 Assistant Director, WGW Utilities 0190 0200 0380 0231 $113.89 $111.21 $72.36 $151.85 $148.28 $96.47 $26,321 $25,702 $16,722 $25,345 $315,848 $308,423 $200,658 $304,138 65 84 Assistant Director, Utilities Resource Management Manager, Utilities Public Communications 129 Engineering Manager, Electric and Fiber Utilities $109.67 $146.22 Engineering Manager, Water, Gas & Wastewater (WGW) Utilities120 0231 $103.99 $138.64 $24,031 $288,372 2025 Manager, Utilities Strategic Business Services 0240 0360 0270 0360 0270 0350 0350 0330 0340 0291 0291 0350 0271 $98.35 $82.76 $99.05 $82.76 $92.91 $76.72 $79.42 $77.96 $67.94 $95.52 $90.58 $66.18 $85.12 $131.13 $110.34 $132.06 $110.34 $123.87 $102.28 $105.89 $103.93 $90.58 $22,730 $19,126 $22,891 $19,126 $21,471 $17,729 $18,355 $18,015 $15,701 $22,076 $20,934 $15,294 $19,672 $272,751 $229,508 $274,685 $229,508 $257,650 $212,743 $220,252 $216,175 $188,407 $264,909 $251,202 $183,519 $236,060 179 185 Manager, Utilities Customer Service Operations Manager, Electric and Fiber Utilities 1114 Manager, Utilities Credit & Collection 156 150 48 Operations Manager, WGW Utilities Manager, Utilities Program Services Manager, Fiber Optic Utility 2020 Utilities Principal Business Analyst 13 Utilities Senior Business Analyst 188 Principal Engineer, Electric and Fiber Utilities $127.36 $120.77 $88.23 2187 Principal Engineer, WGW Utilities 2014 Utilities Senior Management Analyst 25 27 28 Senior Planner, Utilities Resources $113.49 Supervising Project Engineer, Electric and Fiber Utilities Supervising Project Engineer, WGW Utilities 0341 $81.33 $108.43 $18,795 $225,535 0341 0291 0680 0680 0390 $78.55 $90.26 $80.92 $89.03 $70.27 $104.74 $120.35 $107.89 $118.69 $93.69 $18,155 $20,861 $18,701 $20,573 $16,240 $217,860 $250,328 $224,412 $246,876 $194,876 1011 Manager, Utilities Compliance 114 Operations Supervisor, WGW Utilities 1113 Operations Supervisor, Electric and Fiber Utilities 2017 Utilities Safety Officer City of Palo Alto Utilities Management and Professional Association of Palo Alto (UMPAPA) Salary Schedule Effective 7/11/2026 (3% Increase) Grade Codes Max Hourly Rate Approx Max Monthly Salary Approx. Max Annual SalaryJob Code Classifications Min Hourly Rate 2076 Utilities Administrative Assistant 0700 0230 0190 0190 0200 0380 0231 $42.71 $111.38 $121.48 $117.31 $114.55 $74.54 $56.94 $148.50 $161.96 $156.41 $152.73 $99.37 $9,870 $25,740 $28,074 $27,112 $26,474 $17,225 $26,106 $118,436 $308,880 $336,877 $325,333 $317,679 $206,690 $313,269 1002 Assistant Director, Utilites Customer Support Services 6 Assistant Director, Electric and Fiber Utilities Utilities 1003 Assistant Director, WGW Utilities 65 84 Assistant Director, Utilities Resource Management Manager, Utilities Public Communications 129 Engineering Manager, Electric and Fiber Utilities $112.97 $150.61 Engineering Manager, Water, Gas & Wastewater (WGW) Utilities120 0231 $107.11 $142.80 $24,752 $297,024 2025 Manager, Utilities Strategic Business Services 0240 0360 0270 0360 0270 0350 0350 0330 0340 0291 0291 0350 0271 0341 0341 0291 0680 0680 0390 $101.31 $85.25 $102.03 $85.25 $95.70 $79.03 $81.81 $80.30 $69.98 $98.39 $93.30 $68.17 $87.68 $83.77 $80.91 $92.97 $83.35 $91.71 $72.38 $135.07 $113.66 $136.03 $113.66 $127.59 $105.35 $109.07 $107.05 $93.30 $23,413 $19,702 $23,579 $19,702 $22,116 $18,261 $18,906 $18,556 $16,172 $22,740 $21,563 $15,753 $20,263 $19,360 $18,701 $21,489 $19,263 $21,192 $16,729 $280,946 $236,413 $282,943 $236,413 $265,388 $219,128 $226,866 $222,664 $194,064 $272,876 $258,752 $189,031 $243,152 $232,316 $224,412 $257,858 $231,151 $254,301 $200,741 179 185 Manager, Utilities Customer Service Operations Manager, Electric and Fiber Utilities 1114 Manager, Utilities Credit & Collection 156 150 48 Operations Manager, WGW Utilities Manager, Utilities Program Services Manager, Fiber Optic Utility 2020 Utilities Principal Business Analyst 13 Utilities Senior Business Analyst 188 Principal Engineer, Electric and Fiber Utilities $131.19 $124.40 $90.88 2187 Principal Engineer, WGW Utilities 2014 Utilities Senior Management Analyst 25 27 28 Senior Planner, Utilities Resources $116.90 $111.69 $107.89 $123.97 $111.13 $122.26 $96.51 Supervising Project Engineer, Electric and Fiber Utilities Supervising Project Engineer, WGW Utilities 1011 Manager, Utilities Compliance 114 Operations Supervisor, WGW Utilities 1113 Operations Supervisor, Electric and Fiber Utilities 2017 Utilities Safety Officer City of Palo Alto Utilities Management and Professional Association of Palo Alto (UMPAPA) Salary Schedule Effective 7/10/2027 (3% Increase) Grade CodesJob Code Classifications Min Hourly Rate Max Hourly Rate Approx Max Monthly Salary Approx. Max Annual Salary 2076 Utilities Administrative Assistant 0700 0230 0190 0190 0200 0380 0231 $44.00 $114.73 $125.13 $120.83 $117.99 $76.78 $58.65 $152.96 $166.82 $161.11 $157.32 $102.36 $155.13 $10,166 $26,514 $28,916 $27,926 $27,269 $17,743 $26,890 $121,992 $318,157 $346,986 $335,109 $327,226 $212,909 $322,671 1002 Assistant Director, Utilites Customer Support Services 6 Assistant Director, Electric and Fiber Utilities Utilities 1003 Assistant Director, WGW Utilities 65 84 Assistant Director, Utilities Resource Management Manager, Utilities Public Communications 129 Engineering Manager, Electric and Fiber Utilities $116.36 Engineering Manager, Water, Gas & Wastewater (WGW) Utilities120 0231 $110.33 $147.09 $25,496 $305,948 2025 Manager, Utilities Strategic Business Services 0240 0360 0270 0360 0270 0350 0350 0330 0340 0291 0291 0350 0271 0341 0341 0291 0680 0680 0390 $104.35 $87.81 $105.10 $87.81 $98.58 $81.41 $84.27 $82.71 $72.08 $101.35 $96.10 $70.22 $90.32 $86.29 $83.34 $95.76 $85.86 $94.47 $74.56 $139.13 $117.07 $140.12 $117.07 $131.42 $108.52 $112.35 $110.27 $96.10 $24,116 $20,293 $24,288 $20,293 $22,780 $18,811 $19,474 $19,114 $16,658 $23,423 $22,211 $16,226 $20,872 $19,942 $19,263 $22,133 $19,842 $21,828 $17,232 $289,391 $243,506 $291,450 $243,506 $273,354 $225,722 $233,688 $229,362 $199,888 $281,071 $266,532 $194,709 $250,453 $239,304 $231,151 $265,596 $238,098 $261,935 $206,773 179 185 Manager, Utilities Customer Service Operations Manager, Electric and Fiber Utilities 1114 Manager, Utilities Credit & Collection 156 150 48 Operations Manager, WGW Utilities Manager, Utilities Program Services Manager, Fiber Optic Utility 2020 Utilities Principal Business Analyst 13 Utilities Senior Business Analyst 188 Principal Engineer, Electric and Fiber Utilities $135.13 $128.14 $93.61 2187 Principal Engineer, WGW Utilities 2014 Utilities Senior Management Analyst 25 27 28 Senior Planner, Utilities Resources $120.41 $115.05 $111.13 $127.69 $114.47 $125.93 $99.41 Supervising Project Engineer, Electric and Fiber Utilities Supervising Project Engineer, WGW Utilities 1011 Manager, Utilities Compliance 114 Operations Supervisor, WGW Utilities 1113 Operations Supervisor, Electric and Fiber Utilities 2017 Utilities Safety Officer City of Palo Alto Management, Professional and Confidential Salary Schedule Effective 7/12/2025 (3% Increase) Hourly Rate Approx. Annual Salary MidJob Code FLSA Status Classifications Grade Codes Min Mid Max Min Max 190 76 Non-Exempt Accountant 690P 750P 405M 100A 165A 630M 20E $45.65 $36.60 $66.04 $107.89 $82.92 $50.40 $107.62 $89.40 $85.62 $82.81 $85.62 $77.36 $87.07 $86.07 $94.93 $80.84 $50.08 $71.28 $69.91 $84.45 $82.36 $75.58 $64.63 $87.41 $44.36 $47.96 $56.21 $45.80 $98.24 $65.16 $39.60 $85.48 $80.68 $102.31 $103.98 $98.90 $57.06 $45.75 $68.48 $54.90 $94,952 $76,128 $118,689 $95,160 $142,439 $114,192 $206,045 $336,628 $258,690 $157,248 $335,775 $278,928 $267,135 $258,378 $267,135 $241,364 $271,648 $268,528 $296,192 $252,200 $156,250 $222,373 $218,109 $263,495 $256,943 $235,810 $201,636 $272,730 $138,383 $149,615 $175,386 $142,896 $306,488 $203,279 $123,532 $266,698 $251,701 $319,197 $324,418 $308,568 Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exampt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Administrative Assistant 115 132 108 109 107 73 Assistant Chief Building Official Assistant Chief of Police $82.55 $99.06 $137,364 $224,412 $172,474 $104,832 $223,850 $185,952 $178,090 $172,245 $178,090 $160,909 $181,106 $179,026 $197,455 $168,148 $104,167 $148,263 $145,413 $175,656 $171,309 $157,207 $134,431 $181,813 $92,269 $171,704 $280,509 $215,572 $131,040 $279,802 $232,440 $222,602 $215,301 $222,602 $201,136 $226,367 $223,767 $246,813 $210,164 $130,208 $185,308 $181,751 $219,565 $214,116 $196,498 $168,023 $227,261 $115,316 $124,676 $146,141 $119,080 $255,404 $169,396 $102,940 $222,248 $209,748 $265,991 $270,338 $257,130 $134.86 $103.64 $63.00 $161.84 $124.37 $75.60 Assistant City Attorney Assistant City Clerk Assistant City Manager $134.52 $111.75 $107.02 $103.51 $107.02 $96.70 $161.43 $134.10 $128.43 $124.22 $128.43 $116.04 $130.60 $129.10 $142.40 $121.25 $75.12 Assistant Director Administrative Services Assistant Director Community Services Assistant Director Human Resources Assistant Director Information Technology Assistant Director Library Services Assistant Director Planning & Community Environment Assistant Director Public Works Assistant Director Sustainability & Climate Action Assistant Fire Marshal 120A 150A 155A 150A 160A 130A 140A TBD 126 1007 2032 2001 10 $108.83 $107.58 $118.66 $101.04 $62.60 143 2034 2035 168 102 30 TBD Assistant Fleet Manager 585M 240D 390M 290M 135A 220D 235D 140A 660P 615M 585P 675M 125A 375M 720M 115A 200D 110A 50E Assistant Manager WQCP $89.09 $106.91 $104.86 $126.68 $123.53 $113.37 $96.94 Assistant to the City Manager Chief Building Official $87.38 118 2008 112 95 $105.56 $102.94 $94.47 Chief Communications Officer Chief Planning Official Chief Procurement Officer $80.78 82 Chief Transportation Official Claims Investigator $109.26 $55.44 $131.12 $66.5396 24 Communication Specialist $59.94 $71.93 $99,757 89 Contracts Administrator $70.26 $84.32 $116,917 $95,264186 191 11 Non-Exempt Coordinator Library Circulation $57.25 $68.70 Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Fire Marshal $122.79 $81.44 $147.35 $97.73 $204,340 $135,533 $82,368 Deputy City Attorney 71 Deputy City Clerk $49.49 $59.39 55 Deputy City Manager $106.85 $100.84 $127.88 $129.97 $123.62 $128.22 $121.01 $153.46 $155.97 $148.35 $177,799 $167,815 $212,805 $216,279 $205,712 195 20 Deputy Director Technical Services Division Deputy Fire Chief 81 Director Administrative Services/Chief Financial Officer Director Community Services72 45E City of Palo Alto Management, Professional and Confidential Salary Schedule Effective 7/12/2025 (3% Increase) Hourly Rate Approx. Annual Salary MidJob Code FLSA Status Classifications Grade Codes Min Mid Max Min Max 1012 133 128 131 2028 2005 49 Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Director Development Services 145A 55E $86.94 $99.15 $108.25 $92.64 $78.08 $78.08 $89.40 $104.24 $105.57 $130.72 $67.66 $70.32 $75.58 $41.28 $117.60 $57.89 $38.65 $55.16 $48.56 $50.08 $36.60 $68.31 $78.34 $72.45 $55.48 $51.61 $55.41 $62.55 $72.15 $61.80 $68.31 $67.20 $59.35 $71.67 $108.67 $123.93 $135.31 $115.79 $97.60 $97.60 $111.75 $130.30 $131.96 $163.39 $84.57 $87.89 $94.47 $51.59 $147.00 $72.36 $48.31 $68.94 $60.70 $62.60 $45.75 $85.38 $97.92 $90.56 $69.34 $64.51 $69.26 $78.18 $90.18 $77.25 $85.38 $83.99 $74.18 $89.58 $130.41 $148.72 $162.38 $138.95 $117.12 $117.12 $134.10 $156.36 $158.36 $196.07 $101.49 $105.47 $113.37 $61.91 $180,836 $206,232 $225,160 $192,692 $162,407 $162,407 $185,952 $216,820 $219,586 $271,898 $140,733 $146,266 $157,207 $85,863 $226,034 $257,775 $281,445 $240,844 $203,008 $203,008 $232,440 $271,024 $274,477 $339,852 $175,906 $182,812 $196,498 $107,308 $305,760 $150,509 $100,485 $143,396 $126,256 $130,208 $95,160 $271,253 $309,338 $337,751 $289,016 $243,610 $243,610 $278,928 $325,229 $329,389 $407,826 $211,100 $219,378 $235,810 $128,773 $366,912 $180,628 $120,599 $172,079 $151,508 $156,250 $114,192 $213,117 $244,421 $226,055 $173,077 $161,034 $172,890 $195,146 $225,098 $192,816 $213,117 $209,644 $185,162 $223,600 Director Human Resources/Chief People Officer Director Information Technology/Chief Information Officer Director Libraries 25E 60E Director of Emergency Medical Services Director Office of Emergency Services Director Office of Management and Budget Director Planning & Community Environment Director Public Works/City Engineer Director Utilities 215D 215D 120A 40E134 135 121 2002 172 2031 1005 139 163 101 90 30E 10E Division Head Library Services Division Manager Open Space, Parks & Golf Division Manager Planning 260D 245D 220D 705M 35E Executive Assistant to the City Manager Fire Chief $176.40 $86.84 $244,608 $120,412 $80,392 Hearing Officer 480M 735P 510M 755P 585M 750P 235D 210D 360M 525M 630M 585M 495M 220D 450M 235D 419M 445M 223D Human Resources Representative Landscape Architect Park Planner Legal Fellow $57.98 $82.73 $114,733 $101,005 $104,167 $76,128 2015 171 401 79 $72.84 Management Analyst $75.12 Management Fellow $54.90 Manager Accounting $102.46 $117.51 $108.68 $83.21 $142,085 $162,948 $150,696 $115,399 $107,349 $115,253 $130,104 $150,072 $128,544 $142,085 $139,776 $123,448 $149,074 $177,591 $203,674 $188,365 $144,228 $134,181 $144,061 $162,615 $187,575 $160,680 $177,591 $174,700 $154,295 $186,327 2007 2023 38 Manager Airport Manager Budget Manager Communications 154 169 1013 63 Manager Community Services Manager Community Services Sr Program Manager Development Center Manager Economic Development Manager Employee Benefits Manager Employee Relations & Training Manager Environmental Control Program Manager Facilities $77.42 $83.12 $93.82 $108.22 $92.7044 45 $102.46 $100.79 $89.02 93 1116 2030 Manager Finance $107.50 City of Palo Alto Management, Professional and Confidential Salary Schedule Effective 7/12/2025 (3% Increase) Hourly Rate Approx. Annual Salary MidJob Code FLSA Status Classifications Grade Codes Min Mid Max Min Max 127 2018 32 Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Manager Fleet 255D 540M 230D 230D 495M 565M 469M 345M 415M 235D 235D 250D 330M 235D 436M 205D 330M 525M 750P 585M 15E $59.94 $58.15 $69.83 $66.07 $56.51 $54.72 $55.37 $72.56 $66.35 $64.63 $68.31 $60.77 $72.37 $66.62 $61.64 $80.39 $72.37 $53.83 $36.60 $50.08 $121.39 $107.07 $68.82 $80.06 $55.81 $68.55 $56.56 $58.65 $50.08 $60.41 $59.98 $77.06 $58.48 $52.68 $58.43 $74.92 $72.68 $87.28 $82.58 $70.63 $68.40 $69.21 $90.70 $82.93 $80.78 $85.38 $75.96 $90.46 $83.27 $77.04 $100.48 $90.46 $67.28 $45.75 $62.60 $151.73 $133.83 $86.02 $100.07 $69.76 $85.68 $70.70 $73.31 $62.60 $75.51 $74.97 $96.32 $73.09 $65.85 $73.03 $89.91 $87.22 $104.74 $99.10 $84.76 $82.08 $83.06 $108.84 $99.52 $96.94 $102.46 $91.16 $108.56 $99.93 $92.45 $120.58 $108.56 $80.74 $54.90 $75.12 $182.08 $160.60 $103.23 $120.08 $83.72 $102.82 $84.84 $87.98 $75.12 $90.62 $89.97 $115.59 $87.71 $79.02 $87.64 $124,676 $120,952 $145,247 $137,426 $117,541 $113,818 $115,170 $150,925 $138,008 $134,431 $142,085 $126,402 $150,530 $138,570 $128,212 $167,212 $150,530 $111,967 $76,128 $155,834 $151,175 $181,543 $171,767 $146,911 $142,272 $143,957 $188,656 $172,495 $168,023 $177,591 $157,997 $188,157 $173,202 $160,244 $208,999 $188,157 $139,943 $95,160 $187,013 $181,418 $217,860 $206,128 $176,301 $170,727 $172,765 $226,388 $207,002 $201,636 $213,117 $189,613 $225,805 $207,855 $192,296 $250,807 $225,805 $167,940 $114,192 $156,250 $378,727 $334,048 $214,719 $249,760 $174,138 $213,866 $176,468 $182,999 $156,250 $188,490 $187,138 $240,428 $182,437 $164,362 $182,292 Manager Human Services Manager Information Technology Manager Information Technology Security Manager Laboratory Services Manager Library Services Manager Maintenance Operations Manager Transportation Planning Manager Planning 2006 158 78 92 26 51 103 454 2011 160 57 Manager Real Property Manager Recruitment Division Manager Revenue Collections Manager Solid Waste Manager Treasury, Debt & Investments Manager Urban Forestry86 178 39 Manager Water Quality Control Plant Manager Watershed Protection Office of Emergency Services Coordinator Performance Auditor I 1008 2024 100 148 2021 2016 TBD 2029 2003 2009 2012 166 117 2013 187 106 157 14 Performance Auditor II $104,167 $252,492 $222,706 $143,146 $166,525 $116,085 $142,584 $117,645 $121,992 $104,167 $125,653 $124,759 $160,285 $121,639 $109,575 $121,535 $130,208 $315,599 $278,367 $178,922 $208,146 $145,101 $178,215 $147,056 $152,485 $130,208 $157,061 $155,938 $200,346 $152,028 $136,968 $151,903 Police Chief Chief Assistant City Attorney Principal Business Analyst Principal Transportation Engineer Principal Planner 101A 310M TBD 469M 360M 570M 495M 585M 525M 420M 300M 450M 545M 465M Principal Management Analyst Project Manager Public Safety Communications Manager Public Safety Program Manager Senior Accountant Senior Business Analyst - M Senior Engineer Senior Executive Assistant Senior Human Resources Administrator Senior Management Analyst City of Palo Alto Management, Professional and Confidential Salary Schedule Effective 7/12/2025 (3% Increase) Hourly Rate Approx. Annual Salary MidJob Code FLSA Status Classifications Grade Codes Min Mid Max Min Max 130 444 Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Senior Performance Auditor 510M TBD $55.16 $66.35 $77.06 $66.35 $52.56 $62.65 $62.65 $45.98 $48.98 $52.56 $55.44 $44.36 $53.83 $114.46 $68.94 $82.93 $96.32 $82.93 $65.69 $78.31 $78.31 $57.47 $61.22 $65.69 $69.30 $55.44 $67.28 $143.07 $82.73 $99.52 $115.59 $99.52 $78.83 $93.98 $93.98 $68.97 $73.47 $78.83 $83.16 $66.53 $80.74 $171.69 $114,733 $138,008 $160,285 $138,008 $109,325 $130,312 $130,312 $95,639 $143,396 $172,495 $200,346 $172,495 $136,636 $162,885 $162,885 $119,538 $127,338 $136,636 $144,144 $115,316 $139,943 $297,586 $172,079 $207,002 $240,428 $207,002 $163,967 $195,479 $195,479 $143,458 $152,818 $163,967 $172,973 $138,383 $167,940 $357,116 Senior Program Manager 53 Senior Project Manager 300M 420M 540M 480M 480M 675M 600M 540M TBD 33 Senior Technologist 155 Superintendent Animal Services Superintendent Community Services Superintendent Recreation 83 1117 2022 161 Supervising Librarian Supervisor Facilities Management Supervisor Inspection and Surveying Supervisor of Code Enforcement Supervisor Warehouse $101,879 $109,325 $115,316 $92,269 113 327 146 660M 525M 60E 181 Supervisor Water Quality Control Operations Utilities Chief Operating Officer $111,967 $238,0772027 Confidential 905 Non-Exempt Human Resources Technician Non-Exempt Legal Secretary-Confidential 830C 820C 800C 810C $32.48 $33.28 $39.35 $36.60 $40.60 $41.60 $49.18 $45.75 $48.72 $49.92 $59.02 $54.90 $67,559 $69,223 $81,848 $76,128 $84,448 $86,528 $102,295 $95,160 $101,338 $103,834 $122,762 $114,192 903 67 Exempt Exempt Secretary to City Attorney 1004 Senior Legal Secretary - Confidential City of Palo Alto Management, Professional and Confidential Salary Schedule Effective 7/11/2026 (3% Increase) Hourly Rate Approx. Annual Salary MidJob Code FLSA Status Classifications Grade Codes Min Mid Max Min Max 190 76 Non-Exempt Accountant 690P 750P 405M 100A 165A 630M 20E $47.03 $37.71 $68.03 $111.13 $85.40 $51.92 $110.85 $92.09 $88.20 $85.30 $88.20 $79.69 $89.68 $88.65 $97.78 $83.27 $51.59 $73.42 $72.01 $86.99 $84.83 $77.85 $66.57 $90.04 $45.69 $49.40 $57.90 $47.18 $101.19 $67.12 $40.79 $88.05 $83.10 $105.38 $107.10 $101.87 $58.78 $47.13 $70.54 $56.56 $97,823 $78,437 $122,263 $98,031 $146,724 $117,645 $212,244 $346,736 $266,448 $161,970 $345,863 $287,332 $275,164 $266,136 $275,164 $248,644 $279,802 $276,599 $305,074 $259,792 $160,951 $229,071 $224,682 $271,399 $264,660 $242,903 $207,709 $280,904 $142,564 $154,108 $180,648 $147,202 $315,703 $209,394 $127,255 $274,727 $259,272 $328,786 $334,152 $317,824 Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exampt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Administrative Assistant 115 132 108 109 107 73 Assistant Chief Building Official Assistant Chief of Police $85.03 $102.04 $166.70 $128.10 $77.87 $141,503 $231,151 $177,632 $107,994 $230,568 $191,548 $183,456 $177,424 $183,456 $165,756 $186,535 $184,392 $203,383 $173,202 $107,308 $152,714 $149,781 $180,940 $176,447 $161,928 $138,466 $187,284 $95,036 $176,863 $288,933 $222,040 $134,972 $288,205 $239,429 $229,300 $221,770 $229,300 $207,189 $233,168 $230,485 $254,218 $216,487 $134,119 $190,882 $187,221 $226,159 $220,543 $202,405 $173,077 $234,084 $118,789 $128,420 $150,530 $122,658 $263,079 $174,492 $106,039 $228,925 $216,050 $273,978 $278,450 $264,847 $138.91 $106.75 $64.89 Assistant City Attorney Assistant City Clerk Assistant City Manager $138.56 $115.11 $110.24 $106.62 $110.24 $99.61 $166.28 $138.14 $132.29 $127.95 $132.29 $119.54 $134.52 $132.98 $146.67 $124.90 $77.38 Assistant Director Administrative Services Assistant Director Community Services Assistant Director Human Resources Assistant Director Information Technology Assistant Director Library Services Assistant Director Planning & Community Environment Assistant Director Public Works Assistant Director Sustainability & Climate Action Assistant Fire Marshal 120A 150A 155A 150A 160A 130A 140A TBD 126 1007 2032 2001 10 $112.10 $110.81 $122.22 $104.08 $64.48 143 2034 2035 168 102 30 TBD Assistant Fleet Manager 585M 240D 390M 290M 135A 220D 235D 140A 660P 615M 585P 675M 125A 375M 720M 115A 200D 110A 50E Assistant Manager WQCP $91.77 $110.13 $108.02 $130.48 $127.24 $116.78 $99.86 Assistant to the City Manager Chief Building Official $90.01 118 2008 112 95 $108.73 $106.03 $97.31 Chief Communications Officer Chief Planning Official Chief Procurement Officer $83.21 82 Chief Transportation Official Claims Investigator $112.54 $57.11 $135.05 $68.5496 24 Communication Specialist $61.74 $74.09 $102,752 $120,432 $98,135 89 Contracts Administrator $72.37 $86.85 186 191 11 Non-Exempt Coordinator Library Circulation $58.97 $70.77 Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Fire Marshal $126.48 $83.89 $151.78 $100.67 $61.18 $210,476 $139,610 $84,844 Deputy City Attorney 71 Deputy City Clerk $50.98 55 Deputy City Manager $110.06 $103.87 $131.72 $133.87 $127.33 $132.08 $124.65 $158.07 $160.65 $152.80 $183,144 $172,848 $219,191 $222,768 $211,890 195 20 Deputy Director Technical Services Division Deputy Fire Chief 81 Director Administrative Services/Chief Financial Officer Director Community Services72 45E City of Palo Alto Management, Professional and Confidential Salary Schedule Effective 7/11/2026 (3% Increase) Hourly Rate Approx. Annual Salary MidJob Code FLSA Status Classifications Grade Codes Min Mid Max Min Max 1012 133 128 131 2028 2005 49 Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Director Development Services 145A 55E $89.56 $102.12 $111.50 $95.42 $80.43 $80.43 $92.09 $107.37 $108.74 $134.64 $69.69 $72.43 $77.85 $42.52 $121.13 $59.64 $39.81 $56.81 $50.03 $51.59 $37.71 $70.36 $80.69 $74.63 $57.15 $53.16 $57.08 $64.43 $74.32 $63.66 $70.36 $69.21 $61.13 $73.82 $111.94 $127.65 $139.37 $119.27 $100.53 $100.53 $115.11 $134.21 $135.92 $168.30 $87.11 $90.53 $97.31 $53.14 $151.41 $74.54 $49.76 $71.01 $62.53 $64.48 $47.13 $87.95 $100.86 $93.28 $71.43 $66.45 $71.34 $80.53 $92.89 $79.57 $87.95 $86.51 $76.41 $92.27 $134.33 $153.18 $167.25 $143.13 $120.64 $120.64 $138.14 $161.06 $163.11 $201.96 $104.54 $108.64 $116.78 $63.77 $186,285 $212,410 $231,920 $198,474 $167,295 $167,295 $191,548 $223,330 $226,180 $280,052 $144,956 $150,655 $161,928 $88,442 $232,836 $265,512 $289,890 $248,082 $209,103 $209,103 $239,429 $279,157 $282,714 $350,064 $181,189 $188,303 $202,405 $110,532 $314,933 $155,044 $103,501 $147,701 $130,063 $134,119 $98,031 $279,407 $318,615 $347,880 $297,711 $250,932 $250,932 $287,332 $335,005 $339,269 $420,077 $217,444 $225,972 $242,903 $132,642 $377,936 $186,056 $124,218 $177,258 $156,084 $160,951 $117,645 $219,524 $251,764 $232,836 $178,298 $165,860 $178,069 $201,012 $231,858 $198,620 $219,524 $215,946 $190,736 $230,319 Director Human Resources/Chief People Officer Director Information Technology/Chief Information Officer Director Libraries 25E 60E Director of Emergency Medical Services Director Office of Emergency Services Director Office of Management and Budget Director Planning & Community Environment Director Public Works/City Engineer Director Utilities 215D 215D 120A 40E134 135 121 2002 172 2031 1005 139 163 101 90 30E 10E Division Head Library Services Division Manager Open Space, Parks & Golf Division Manager Planning 260D 245D 220D 705M 35E Executive Assistant to the City Manager Fire Chief $181.70 $89.45 $251,951 $124,052 $82,805 Hearing Officer 480M 735P 510M 755P 585M 750P 235D 210D 360M 525M 630M 585M 495M 220D 450M 235D 419M 445M 223D Human Resources Representative Landscape Architect Park Planner Legal Fellow $59.72 $85.22 $118,165 $104,063 $107,308 $78,437 2015 171 401 79 $75.04 Management Analyst $77.38 Management Fellow $56.56 Manager Accounting $105.54 $121.04 $111.94 $85.72 $146,349 $167,836 $155,231 $118,872 $110,573 $118,727 $134,015 $154,586 $132,413 $146,349 $143,957 $127,151 $153,546 $182,936 $209,789 $194,023 $148,575 $138,216 $148,388 $167,503 $193,212 $165,506 $182,936 $179,941 $158,933 $191,922 2007 2023 38 Manager Airport Manager Budget Manager Communications 154 169 1013 63 Manager Community Services Manager Community Services Sr Program Manager Development Center Manager Economic Development Manager Employee Benefits Manager Employee Relations & Training Manager Environmental Control Program Manager Facilities $79.74 $85.61 $96.64 $111.47 $95.4944 45 $105.54 $103.82 $91.70 93 1116 2030 Manager Finance $110.73 City of Palo Alto Management, Professional and Confidential Salary Schedule Effective 7/11/2026 (3% Increase) Hourly Rate Approx. Annual Salary MidJob Code FLSA Status Classifications Grade Codes Min Mid Max Min Max 127 2018 32 Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Manager Fleet 255D 540M 230D 230D 495M 565M 469M 345M 415M 235D 235D 250D 330M 235D 436M 205D 330M 525M 750P 585M 15E $61.74 $59.90 $71.92 $68.05 $58.20 $56.37 $57.04 $74.75 $68.34 $66.57 $70.36 $62.60 $74.55 $68.62 $63.49 $82.80 $74.55 $55.44 $37.71 $51.59 $125.04 $110.28 $70.89 $82.47 $57.49 $70.61 $58.27 $60.41 $51.59 $62.23 $61.78 $79.37 $60.24 $54.27 $60.19 $77.17 $74.87 $89.90 $85.06 $72.75 $70.46 $71.29 $93.43 $85.42 $83.21 $87.95 $78.24 $93.18 $85.77 $79.36 $103.50 $93.18 $69.30 $47.13 $64.48 $156.29 $137.85 $88.61 $103.08 $71.86 $88.26 $72.83 $75.51 $64.48 $77.78 $77.22 $99.21 $75.29 $67.83 $75.23 $92.61 $89.85 $107.88 $102.08 $87.30 $84.56 $85.55 $112.12 $102.51 $99.86 $105.54 $93.89 $111.82 $102.93 $95.24 $124.20 $111.82 $83.16 $56.56 $77.38 $187.55 $165.42 $106.34 $123.70 $86.24 $105.92 $87.40 $90.62 $77.38 $93.34 $92.67 $119.06 $90.35 $81.40 $90.28 $128,420 $124,592 $149,594 $141,544 $121,056 $117,250 $118,644 $155,480 $142,148 $138,466 $146,349 $130,208 $155,064 $142,730 $132,060 $172,224 $155,064 $115,316 $78,437 $160,514 $155,730 $186,992 $176,925 $151,320 $146,557 $148,284 $194,335 $177,674 $173,077 $182,936 $162,740 $193,815 $178,402 $165,069 $215,280 $193,815 $144,144 $98,031 $192,629 $186,888 $224,391 $212,327 $181,584 $175,885 $177,944 $233,210 $213,221 $207,709 $219,524 $195,292 $232,586 $214,095 $198,100 $258,336 $232,586 $172,973 $117,645 $160,951 $390,104 $344,074 $221,188 $257,296 $179,380 $220,314 $181,792 $188,490 $160,951 $194,148 $192,754 $247,645 $187,928 $169,312 $187,783 Manager Human Services Manager Information Technology Manager Information Technology Security Manager Laboratory Services Manager Library Services Manager Maintenance Operations Manager Transportation Planning Manager Planning 2006 158 78 92 26 51 103 454 2011 160 57 Manager Real Property Manager Recruitment Division Manager Revenue Collections Manager Solid Waste Manager Treasury, Debt & Investments Manager Urban Forestry86 178 39 Manager Water Quality Control Plant Manager Watershed Protection Office of Emergency Services Coordinator Performance Auditor I 1008 2024 100 148 2021 2016 TBD 2029 2003 2009 2012 166 117 2013 187 106 157 14 Performance Auditor II $107,308 $260,084 $229,383 $147,452 $171,538 $119,580 $146,869 $121,202 $125,653 $107,308 $129,439 $128,503 $165,090 $125,300 $112,882 $125,196 $134,119 $325,084 $286,728 $184,309 $214,407 $149,469 $183,581 $151,487 $157,061 $134,119 $161,783 $160,618 $206,357 $156,604 $141,087 $156,479 Police Chief Chief Assistant City Attorney Principal Business Analyst Principal Transportation Engineer Principal Planner 101A 310M TBD 469M 360M 570M 495M 585M 525M 420M 300M 450M 545M 465M Principal Management Analyst Project Manager Public Safety Communications Manager Public Safety Program Manager Senior Accountant Senior Business Analyst - M Senior Engineer Senior Executive Assistant Senior Human Resources Administrator Senior Management Analyst City of Palo Alto Management, Professional and Confidential Salary Schedule Effective 7/11/2026 (3% Increase) Hourly Rate Approx. Annual Salary MidJob Code FLSA Status Classifications Grade Codes Min Mid Max Min Max 130 444 Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Senior Performance Auditor 510M TBD $56.81 $68.34 $79.37 $68.34 $54.14 $64.53 $64.53 $47.36 $50.45 $54.14 $57.11 $45.69 $55.44 $117.90 $71.01 $85.42 $99.21 $85.42 $67.67 $80.66 $80.66 $59.20 $63.06 $67.67 $71.38 $57.11 $69.30 $147.37 $85.22 $102.51 $119.06 $102.51 $81.21 $96.80 $96.80 $71.04 $75.68 $81.21 $85.66 $68.54 $83.16 $176.85 $118,165 $142,148 $165,090 $142,148 $112,612 $134,223 $134,223 $98,509 $147,701 $177,674 $206,357 $177,674 $140,754 $167,773 $167,773 $123,136 $131,165 $140,754 $148,471 $118,789 $144,144 $306,530 $177,258 $213,221 $247,645 $213,221 $168,917 $201,344 $201,344 $147,764 $157,415 $168,917 $178,173 $142,564 $172,973 $367,848 Senior Program Manager 53 Senior Project Manager 300M 420M 540M 480M 480M 675M 600M 540M TBD 33 Senior Technologist 155 Superintendent Animal Services Superintendent Community Services Superintendent Recreation 83 1117 2022 161 Supervising Librarian Supervisor Facilities Management Supervisor Inspection and Surveying Supervisor of Code Enforcement Supervisor Warehouse $104,936 $112,612 $118,789 $95,036 113 327 146 660M 525M 60E 181 Supervisor Water Quality Control Operations Utilities Chief Operating Officer $115,316 $245,2322027 Confidential 905 Non-Exempt Human Resources Technician Non-Exempt Legal Secretary-Confidential 830C 820C 800C 810C $33.46 $34.28 $40.53 $37.71 $41.82 $42.85 $50.66 $47.13 $50.19 $51.42 $60.80 $56.56 $69,597 $71,303 $84,303 $78,437 $86,986 $89,128 $105,373 $98,031 $104,396 $106,954 $126,464 $117,645 903 67 Exempt Exempt Secretary to City Attorney 1004 Senior Legal Secretary - Confidential City of Palo Alto Management, Professional and Confidential Salary Schedule Effective 7/10/2027 (3% Increase) Hourly Rate Approx. Annual Salary MidJob Code FLSA Status Classifications Grade Codes Min Mid Max Min Max 190 76 Non-Exempt Accountant 690P 750P 405M 100A 165A 630M 20E $48.44 $38.84 $70.08 $114.47 $87.97 $53.48 $114.18 $94.86 $90.84 $87.86 $90.84 $82.08 $92.38 $91.32 $100.72 $85.77 $53.14 $75.63 $74.18 $89.60 $87.38 $80.19 $68.57 $92.74 $47.07 $50.88 $59.64 $48.60 $104.23 $69.13 $42.01 $90.70 $85.60 $108.55 $110.32 $104.92 $60.55 $48.55 $72.66 $58.26 $100,756 $80,788 $125,944 $100,984 $182,188 $297,607 $228,717 $139,028 $296,858 $246,626 $236,184 $228,426 $236,184 $213,408 $240,178 $237,412 $261,852 $222,997 $138,154 $196,623 $192,858 $232,960 $227,178 $208,479 $178,277 $241,114 $122,367 $132,288 $155,064 $126,340 $270,983 $179,733 $109,221 $235,810 $222,540 $282,215 $286,812 $272,792 $151,133 $121,181 $218,629 $357,136 $274,477 $166,837 $356,242 $295,964 $283,421 $274,124 $283,421 $256,090 $288,226 $284,898 $314,226 $267,613 $165,797 $235,956 $231,442 $279,552 $272,626 $250,183 $213,949 $289,349 $146,848 $158,746 $186,077 $151,612 $325,188 $215,696 $131,082 $282,984 $267,052 $338,666 $344,178 $327,351 Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exampt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Administrative Assistant 115 132 108 109 107 73 Assistant Chief Building Official Assistant Chief of Police $87.59 $105.11 $171.70 $131.96 $80.21 $145,767 $238,098 $182,978 $111,239 $237,495 $197,309 $188,948 $182,749 $188,948 $170,727 $192,151 $189,946 $209,498 $178,402 $110,532 $157,311 $154,295 $186,368 $181,751 $166,796 $142,626 $192,900 $97,906 $143.08 $109.96 $66.84 Assistant City Attorney Assistant City Clerk Assistant City Manager $142.72 $118.57 $113.55 $109.82 $113.55 $102.60 $115.47 $114.14 $125.89 $107.21 $66.42 $171.27 $142.29 $136.26 $131.79 $136.26 $123.12 $138.57 $136.97 $151.07 $128.66 $79.71 Assistant Director Administrative Services Assistant Director Community Services Assistant Director Human Resources Assistant Director Information Technology Assistant Director Library Services Assistant Director Planning & Community Environment Assistant Director Public Works Assistant Director Sustainability & Climate Action Assistant Fire Marshal 120A 150A 155A 150A 160A 130A 140A TBD 126 1007 2032 2001 10 143 2034 2035 168 102 30 TBD Assistant Fleet Manager 585M 240D 390M 290M 135A 220D 235D 140A 660P 615M 585P 675M 125A 375M 720M 115A 200D 110A 50E Assistant Manager WQCP $94.53 $113.44 $111.27 $134.40 $131.07 $120.28 $102.86 $139.11 $70.60 Assistant to the City Manager Chief Building Official $92.72 118 2008 112 95 $112.00 $109.22 $100.23 $85.71 Chief Communications Officer Chief Planning Official Chief Procurement Officer 82 Chief Transportation Official Claims Investigator $115.92 $58.8396 24 Communication Specialist $63.60 $76.32 $105,831 $124,052 $101,088 $216,799 $143,791 $87,381 89 Contracts Administrator $74.55 $89.46 186 191 11 Non-Exempt Coordinator Library Circulation $60.74 $72.89 Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Fire Marshal $130.28 $86.41 $156.34 $103.70 $63.02 Deputy City Attorney 71 Deputy City Clerk $52.51 55 Deputy City Manager $113.37 $106.99 $135.68 $137.89 $131.15 $136.05 $128.39 $162.82 $165.47 $157.38 $188,656 $178,048 $225,784 $229,466 $218,234 195 20 Deputy Director Technical Services Division Deputy Fire Chief 81 Director Administrative Services/Chief Financial Officer Director Community Services72 45E City of Palo Alto Management, Professional and Confidential Salary Schedule Effective 7/10/2027 (3% Increase) Hourly Rate Approx. Annual Salary MidJob Code FLSA Status Classifications Grade Codes Min Mid Max Min Max 1012 133 128 131 2028 2005 49 Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Director Development Services 145A 55E $92.24 $105.19 $114.85 $98.28 $82.84 $82.84 $94.86 $110.60 $112.00 $138.68 $71.79 $74.60 $80.19 $43.80 $124.77 $61.43 $41.01 $58.52 $51.53 $53.14 $38.84 $72.48 $83.12 $76.87 $58.87 $54.76 $58.80 $66.36 $76.55 $65.57 $72.48 $71.29 $62.97 $76.04 $115.30 $131.48 $143.56 $122.85 $103.55 $103.55 $118.57 $138.24 $140.00 $173.35 $89.73 $93.25 $100.23 $54.74 $155.96 $76.78 $51.26 $73.15 $64.41 $66.42 $48.55 $90.59 $103.89 $96.08 $73.58 $68.45 $73.49 $82.95 $95.68 $81.96 $90.59 $89.11 $78.71 $95.04 $138.36 $157.78 $172.28 $147.42 $124.26 $124.26 $142.29 $165.89 $168.00 $208.02 $107.68 $111.90 $120.28 $65.69 $191,860 $218,796 $238,888 $204,423 $172,308 $172,308 $197,309 $230,048 $232,960 $288,455 $149,324 $155,168 $166,796 $91,104 $239,824 $273,479 $298,605 $255,528 $215,384 $215,384 $246,626 $287,540 $291,200 $360,568 $186,639 $193,960 $208,479 $113,860 $324,397 $159,703 $106,621 $152,152 $133,973 $138,154 $100,984 $188,428 $216,092 $199,847 $153,047 $142,376 $152,860 $172,536 $199,015 $170,477 $188,428 $185,349 $163,717 $197,684 $287,789 $328,183 $358,343 $306,634 $258,461 $258,461 $295,964 $345,052 $349,440 $432,682 $223,975 $232,752 $250,183 $136,636 $389,293 $191,652 $127,962 $182,583 $160,784 $165,797 $121,181 $226,117 $259,314 $239,824 $183,664 $170,852 $183,436 $207,044 $238,826 $204,589 $226,117 $222,436 $196,477 $237,224 Director Human Resources/Chief People Officer Director Information Technology/Chief Information Officer Director Libraries 25E 60E Director of Emergency Medical Services Director Office of Emergency Services Director Office of Management and Budget Director Planning & Community Environment Director Public Works/City Engineer Director Utilities 215D 215D 120A 40E134 135 121 2002 172 2031 1005 139 163 101 90 30E 10E Division Head Library Services Division Manager Open Space, Parks & Golf Division Manager Planning 260D 245D 220D 705M 35E Executive Assistant to the City Manager Fire Chief $187.16 $92.14 $259,522 $127,775 $85,301 Hearing Officer 480M 735P 510M 755P 585M 750P 235D 210D 360M 525M 630M 585M 495M 220D 450M 235D 419M 445M 223D Human Resources Representative Landscape Architect Park Planner Legal Fellow $61.52 $87.78 $121,722 $107,183 $110,532 $80,788 2015 171 401 79 $77.30 Management Analyst $79.71 Management Fellow $58.26 Manager Accounting $108.71 $124.67 $115.30 $88.30 $150,759 $172,890 $159,890 $122,450 $113,901 $122,304 $138,029 $159,224 $136,386 $150,759 $148,284 $130,978 $158,164 2007 2023 38 Manager Airport Manager Budget Manager Communications 154 169 1013 63 Manager Community Services Manager Community Services Sr Program Manager Development Center Manager Economic Development Manager Employee Benefits Manager Employee Relations & Training Manager Environmental Control Program Manager Facilities $82.14 $88.19 $99.54 $114.82 $98.3644 45 $108.71 $106.94 $94.46 93 1116 2030 Manager Finance $114.05 City of Palo Alto Management, Professional and Confidential Salary Schedule Effective 7/10/2027 (3% Increase) Hourly Rate Approx. Annual Salary MidJob Code FLSA Status Classifications Grade Codes Min Mid Max Min Max 127 2018 32 Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Manager Fleet 255D 540M 230D 230D 495M 565M 469M 345M 415M 235D 235D 250D 330M 235D 436M 205D 330M 525M 750P 585M 15E $63.60 $61.70 $74.08 $70.10 $59.96 $58.07 $58.75 $77.00 $70.40 $68.57 $72.48 $64.48 $76.79 $70.68 $65.40 $85.29 $76.79 $57.11 $38.84 $53.14 $128.79 $113.60 $73.02 $84.95 $59.22 $72.73 $60.02 $62.23 $53.14 $64.10 $63.64 $81.76 $62.04 $55.90 $62.00 $79.49 $77.12 $92.60 $87.62 $74.94 $72.58 $73.43 $96.24 $87.99 $85.71 $90.59 $80.59 $95.98 $88.35 $81.75 $106.61 $95.98 $71.38 $48.55 $66.42 $160.98 $141.99 $91.27 $106.18 $74.02 $90.91 $75.02 $77.78 $66.42 $80.12 $79.54 $102.19 $77.55 $69.87 $77.49 $95.39 $92.55 $111.12 $105.15 $89.93 $87.10 $88.12 $115.49 $105.59 $102.86 $108.71 $96.71 $115.18 $106.02 $98.10 $127.94 $115.18 $85.66 $58.26 $79.71 $193.18 $170.39 $109.53 $127.42 $88.83 $109.10 $90.03 $93.34 $79.71 $96.15 $95.45 $122.63 $93.06 $83.85 $92.99 $132,288 $128,336 $154,087 $145,808 $124,717 $120,786 $122,200 $160,160 $146,432 $142,626 $150,759 $134,119 $159,724 $147,015 $136,032 $177,404 $159,724 $118,789 $80,788 $165,340 $160,410 $192,608 $182,250 $155,876 $150,967 $152,735 $200,180 $183,020 $178,277 $188,428 $167,628 $199,639 $183,768 $170,040 $221,749 $199,639 $148,471 $100,984 $138,154 $334,839 $295,340 $189,842 $220,855 $153,962 $189,093 $156,042 $161,783 $138,154 $166,650 $165,444 $212,556 $161,304 $145,330 $161,180 $198,412 $192,504 $231,130 $218,712 $187,055 $181,168 $183,290 $240,220 $219,628 $213,949 $226,117 $201,157 $239,575 $220,522 $204,048 $266,116 $239,575 $178,173 $121,181 $165,797 $401,815 $354,412 $227,823 $265,034 $184,767 $226,928 $187,263 $194,148 $165,797 $199,992 $198,536 $255,071 $193,565 $174,408 $193,420 Manager Human Services Manager Information Technology Manager Information Technology Security Manager Laboratory Services Manager Library Services Manager Maintenance Operations Manager Transportation Planning Manager Planning 2006 158 78 92 26 51 103 454 2011 160 57 Manager Real Property Manager Recruitment Division Manager Revenue Collections Manager Solid Waste Manager Treasury, Debt & Investments Manager Urban Forestry86 178 39 Manager Water Quality Control Plant Manager Watershed Protection Office of Emergency Services Coordinator Performance Auditor I 1008 2024 100 148 2021 2016 TBD 2029 2003 2009 2012 166 117 2013 187 106 157 14 Performance Auditor II $110,532 $267,884 $236,288 $151,882 $176,696 $123,178 $151,279 $124,842 $129,439 $110,532 $133,328 $132,372 $170,061 $129,044 $116,272 $128,960 Police Chief Chief Assistant City Attorney Principal Business Analyst Principal Transportation Engineer Principal Planner 101A 310M TBD 469M 360M 570M 495M 585M 525M 420M 300M 450M 545M 465M Principal Management Analyst Project Manager Public Safety Communications Manager Public Safety Program Manager Senior Accountant Senior Business Analyst - M Senior Engineer Senior Executive Assistant Senior Human Resources Administrator Senior Management Analyst City of Palo Alto Management, Professional and Confidential Salary Schedule Effective 7/10/2027 (3% Increase) Hourly Rate Approx. Annual Salary MidJob Code FLSA Status Classifications Grade Codes Min Mid Max Min Max 130 444 Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Senior Performance Auditor 510M TBD $58.52 $70.40 $81.76 $70.40 $55.77 $66.47 $66.47 $48.79 $51.97 $55.77 $58.83 $47.07 $57.11 $121.44 $73.15 $87.99 $102.19 $87.99 $69.71 $83.08 $83.08 $60.98 $64.96 $69.71 $73.53 $58.83 $71.38 $151.80 $87.78 $105.59 $122.63 $105.59 $83.66 $99.70 $99.70 $73.18 $77.96 $83.66 $88.24 $70.60 $85.66 $182.16 $121,722 $146,432 $170,061 $146,432 $116,002 $138,258 $138,258 $101,484 $108,098 $116,002 $122,367 $97,906 $152,152 $183,020 $212,556 $183,020 $144,997 $172,807 $172,807 $126,839 $135,117 $144,997 $152,943 $122,367 $148,471 $315,744 $182,583 $219,628 $255,071 $219,628 $174,013 $207,376 $207,376 $152,215 $162,157 $174,013 $183,540 $146,848 $178,173 $378,893 Senior Program Manager 53 Senior Project Manager 300M 420M 540M 480M 480M 675M 600M 540M TBD 33 Senior Technologist 155 Superintendent Animal Services Superintendent Community Services Superintendent Recreation 83 1117 2022 161 Supervising Librarian Supervisor Facilities Management Supervisor Inspection and Surveying Supervisor of Code Enforcement Supervisor Warehouse 113 327 146 660M 525M 60E 181 Supervisor Water Quality Control Operations Utilities Chief Operating Officer $118,789 $252,5962027 Confidential 905 Non-Exempt Human Resources Technician Non-Exempt Legal Secretary-Confidential 830C 820C 800C 810C $34.47 $35.32 $41.75 $38.84 $43.08 $44.14 $52.18 $48.55 $51.70 $52.97 $62.62 $58.26 $71,698 $73,466 $86,840 $80,788 $89,607 $91,812 $108,535 $100,984 $107,536 $110,178 $130,250 $121,181 903 67 Exempt Exempt Secretary to City Attorney 1004 Senior Legal Secretary - Confidential From:jfleming@right-thing.net To:Council, City Cc:Clerk, City; Lait, Jonathan; Ed@EdLauing.com; Vicki@VickiforCouncil.com; pat@patburt.org; Lu, George; Julie@JulieforPaloAlto.com; Reckdahl, Keith; gstone22@gmail.com Subject:Regarding Jonathan Lait Date:Thursday, June 12, 2025 9:13:33 PM Attachments:Email_#_and_%_of_utility_poles_IN_ROW_within_Residential_Zoning_Districts_distance_to_bldg_structures_analysis.pdf CAUTION: This email originated from outside of the organization. Be cautiousof opening attachments and clicking on links. ! Dear Mayor Lauing, Vice Mayor Veenker and Councilmembers Burt, Lu, Lythcott- Haims, Reckdahl, and Stone: This coming Monday, you will be considering raises for City department heads. I am writing to ask you to not only not approve a raise for Planning Director Jonathan Lait, but to consider whether Mr. Lait’s employment with the City of Palo Alto should be terminated. Why? Because in addressing you at Council meetings, he has repeatedly and unambiguously been untruthful. Although you know me from the cell tower issue, this letter is not about cell towers. It is about a city employee who does not tell the truth when asked direct questions by Council. More specifically, Mr. Lait has over and over, on the public record, madefalse statements to City Council, to the Planning & Transportation Commission (PTC) and to the Architectural Review Board (ARB). By “false statements,” I do not mean that Mr. Lait has misspoken about minor points. I mean that he has been repeatedly untruthful when Council, the PTC or the ARB has asked him questions central to core issues, and in doing so given answers that completely misled the panel he was speaking to. I will give you three examples: 1. At the December 16, 2019, City Council meeting, Council asked Mr. Lait how many City poles were available for use as a cell tower at distances greater than the 20 feet from a residence City Staff recommended Council approve, but less than the 100 feet from a residence residents sought. (At issue was whether Council needed to allow cell towers be located as close as 20 feet to a residence in order to comply with the provisions of the 1996 Telecom Act.) This message could be suspicious Similar name as someone you've contacted. This is their first mail to some recipients. Mark Safe Report Powered by Mimecast In response, Mr. Lait said he only had information for the number of poles at 20 feet and 100 feet. This, to be direct, was a bold faced lie. Attached is a memo obtained through a Public Records request. As youcan see, the memo was sent to Mr. Lait by the Planning Department’s Roland Rivera and it includes data on a minimum 35-foot setback from residences—data that Mr. Lait specifically said he didn’t have, data that showed there were more than enough poles available at 35 feet toaccommodate all cell tower applications. As you can also see, the memo was sent at 5:34 on December 16, 2019— i.e., well before Council took up the cell tower issue later that evening. As a result of Mr. Lait’s denying he had the data they sought, a frustrated Council voted to approve the 20-foot setback Staff recommended. This is not be the only time Mr. Lait was asked, on the public record, for the same information, and not the only time he falsely asserted that the data he was hiding did not exist. Specifically he was asked for it: On December 13, 2020, by the Planning & Transportation Commission as it considered revisions to the wireless ordinance; On November 21, 2021, by City Council, the Planning & Transportation Commission, and the Architectural Review Board, meeting in a joint study session to consider revisions to the wireless ordinance; and On January 12, 2022, by the Planning & Transportation Commission, once again considering revisions to the wireless ordinance. On each occasion, Mr. Lait falsely stated that he only had information for 20 feet and 100 feet. In short, Mr. Lait has, over a period of years, looked you and other City officials in the eye and told you he didn’t have information he in fact did have, presumably to support an agenda of his own. 2. At the October 24, 2024, City Council meeting, Vice Mayor Vicki Veenker asked Mr. Lait if any standards for cell tower siting and design existed other than those expressed in the so-called “objective standards” Resolution passed on December 16th, 2019. (At issue was whether, if Council were to overturn the Resolution, Palo Alto would still have guidelines in place for cell towers.) In response, Mr. Lait said “No.” That was unequivocally not true. And at your recent May 19th Council meeting, United Neighbors provided you with documentation that it was not true—documentation in the form of a Staff Report prepared for an ARB meeting prior to passage of the “objective standards” Resolution that included a written list of Palo Alto’s standards for cell towers. 3. At a February 4, 2019, City Council meeting, Director Lait told Council that he had bypassed the step of sending the University South cell tower application to the Architectural Review Board and approved it without consulting them because of “shot clock” pressure. (At issue was whether Mr. Lait had a good reason for ignoring the procedure called for by Palo Alto’s wireless ordinance when he eliminated ARB review and a public hearing for this application.) What Mr. Lait said was not true. The telecom company’s lawyer who was in attendance when Mr. Lait made this assertion stood up and said Crown Castle wished to state, for the record, that Mr. Lait had refused their offer to stop the shot clock for 30 days in order to make time for an ArchitecturalReview Board public hearing. Because cell towers are the only issue I follow closely, I can only document Mr. Lait’s years-long pattern of deceiving City Council, the PTC and the ARB when it comes tothis issue. But given his indifference to telling the truth, I hope you will consider investigating whether he has told you material falsehoods regarding other issues. More importantly, I hope you will consider terminating Mr. Lait’s employment. His lieshave wasted a great deal of everyone’s time and manipulated Council, the ARB and the PTC into making suboptimal decisions for Palo Alto. If you do not terminate Jonathan Lait’s employment, please consider making him takean oath at the start of every Council meeting to tell the truth, the whole truth and nothing but the truth. Sincerely, Jeanne Fleming Jeanne Fleming, PhDJFleming@Right-Thing.net 650-325-5151 From:Rivera, Roland To:Atkinson, Rebecca; Lait, JonathanSubject:# and % of utility poles IN ROW within Residential Zoning Districts distance to bldg structures analysis Date:Monday, December 16, 2019 5:34:49 PM Here you go… # of Utility Poles in ROW within Residential Districts that are WITHIN % of Utility Poles in ROWwithin Residential Districts that are WITHIN 20 ft of building structures 223 8% 35 ft of building structures 1,898 71% 100 ft of building structures 2,572 96% Total # of Utility Poles IN ROW within Residential Districts 2,682 Let me know if you have any questions. Roland