HomeMy WebLinkAboutStaff Report 2608-6620CITY OF PALO ALTO
CITY COUNCIL
Special Meeting
Wednesday, September 09, 2026
Council Chambers & Hybrid
5:00 PM
Agenda Item
10.Adoption of Side Letter Between the City of Palo Alto and Utilities Management and
Professional Association of Palo Alto for a Hiring Incentive; CEQA Status - Not a Project.
City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Human Resources
Meeting Date: September 9, 2026
Report #:2608-6620
TITLE
Adoption of Side Letter Between the City of Palo Alto and Utilities Management and
Professional Association of Palo Alto for a Hiring Incentive; CEQA Status - Not a Project.
RECOMMENDATION
Staff recommends that Council adopt the side letter of agreement (Attachment A) between the
City of Palo Alto and Utilities Management and Professional Association of Palo Alto (UMPAPA)
which authorizes Council Appointed Officers to authorize a hiring incentive for critical
personnel vacancies.
BACKGROUND
The City's recruitment and labor strategies emphasize the successful recruitment of top-quality
employees and maintaining competitive salaries to continue being an Employer of Choice.
Effective recruiting involves understanding the job market, industry trends, and adapting to
current conditions by implementing strategic initiatives to successfully hire for specialized
positions. These strategies also result in continuing to improve employee retention and
decrease in turnover.
Utilities Department leadership and Human Resources (HR) recruitment reviewed classifications
represented by UMPAPA that are difficult to fill. In such recruitments, a hiring incentive may be
needed to finalize an employment offer. The proposed incentive structure authorizes the City
Manager to provide a hiring incentive for critical personnel vacancies. This recruitment strategy
aligns with the hiring incentive in the Management and Professional Compensation Plan
approved in June 2025 and similar to the hiring incentive approved by City Council in June 2026
for the Palo Alto Police Officers Association.
ANALYSIS
The City has experienced recruitment challenges in filling certain critical positions within the
Utilities Management group. Currently, the primary financial incentive available to attract
qualified candidates is placement at a higher point within the established salary range.
A one-time hiring incentive would provide the City with an additional recruitment tool and
greater flexibility in structuring a competitive total compensation package for selected
candidates. The availability of a one-time incentive at the time of hire may also reduce the need
to place candidates near the top of the salary range, thereby potentially slowing the growth of
the City’s ongoing salary and related benefit costs. The proposed hiring incentive program is
intended to address recruitment challenges associated with difficult-to-fill positions while
maintaining a financially sustainable approach to employee compensation. Similar to the other
incentive programs, the hiring incentive is not to exceed 5% of the authorized position, eligible
recruitments are to be determined by the Human Resources and Utilities Departments, with
approval of award to be authorized of the City Manager.
FISCAL/RESOURCE IMPACT
STAKEHOLDER ENGAGEMENT
ENVIRONMENTAL REVIEW
ATTACHMENTS
APPROVED BY:
!"#$%$& ' (')%#$%$"/,0+1-.2345,//0/6--./72-8+19:;+4;-+:6<=>9494?@-./9:,-2/3AB:5,//-+-./1+;/6-2E/FHIJKLMNOOHLJPQRSTTLKQUVWXYXIPZHUL[QXZLULJ\LJKQJPL]QTHUKULPLKXMOQUVHJJQM]XKXJKLQLPZLJPZQNVVHKLXPLHJ_`LULJ\LJKQJPL]QVWIVPaQTIJRQRPZUHI\ZRQOXUPWQJPVXMXUYVX]LJ/3:5,//-+:<<-./:c+E/;:65d:5/-+4,-2D;/eff+1:683dc3/gd/6->/0+,:6<d0+16-C./6-./8D+00/6D/-./2,6/h-,+d6<+13dDD/33+,c:,5:26265i62+6F *+,-./72-8F jjj ,k263l7.:2, m<n.2k:<:l72-8>:6:5/,
"#
$ % &
'