Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
2016-05-04 Utilities Advisory Commission Agenda Packet
NOTICE IS POSTED IN ACCORDANCE WITH GOVERNMENT CODE SECTION 54954.2(a) OR 54956 I. ROLL CALL II.ORAL COMMUNICATIONS Members of the public are invited to address the Commission on any subject not on the agenda. A reasonable time restriction may be imposed at the discretion of the Chair. State law generally precludes the UAC from discussing or acting upon any topic initially presented during oral communication. III.APPROVAL OF THE MINUTES Approval of the Minutes of the Utilities Advisory Commission Special Meeting held on April 12, 2016 IV. AGENDA REVIEW AND REVISIONS V. REPORTS FROM COMMISSIONER MEETINGS/EVENTS VI. DIRECTOR OF UTILITIES REPORT VII. COMMISSIONER COMMENTS VIII. UNFINISHED BUSINESS None. IX. NEW BUSINESS 1.Staff Recommendation that the Utilities Advisory Commission Recommend that Action the City Council Adopt the Proposed Operating and Capital Budgets for the Utilities Department for Fiscal Year 2017 2.Update and Discussion on Impacts of Statewide Drought on Water and Action Hydroelectric Supplies 3.Selection of Potential Topic(s) for Discussion at Future UAC Meeting Action X. NEXT SCHEDULED MEETING: June 1, 2016 XI. INFORMATION REPORTS A complete list of informational reports provided to the UAC can be viewed at http://www.cityofpaloalto.org/gov/boards/uac/reports.asp?code=CAPALO_8 and at City Hall, 3rd Floor, Utilities Administration office. Information reports cannot be discussed during UAC meetings, in compliance with Govt. Code Section 54954.2(a)(2 Public Letters to UAC UTILITIES ADVISORY COMMISSION – SPECIAL MEETING WEDNESDAY, MAY 4, 2016 – 12:00 P.M. COUNCIL CHAMBERS Palo Alto City Hall – 250 Hamilton Avenue Chairman: Jonathan Foster Vice Chair: James F. Cook: Commissioners: Arne Ballantine, Michael Danaher, Steve Eglash, Garth Hall, and Judith Schwartz Council Liaison: Gregory Scharff Presentation Utilities Advisory Commission Minutes Approved on: Page 1 of 15 UTILITIES ADVISORY COMMISSION MEETING - SPECIAL MEETING MINUTES OF APRIL 12, 2016 CALL TO ORDER Chair Foster called to order at 7:10 p.m. the meeting of the Utilities Advisory Commission (UAC). Present: Chair Foster, Vice Chair Cook, Commissioners Ballantine, Danaher, and Schwartz Absent: Commissioners Eglash and Hall, and Council Liaison Scharff ORAL COMMUNICATIONS None. APPROVAL OF THE MINUTES Commissioner Schwartz proposed the following changes to the minutes: (1) change the fourth sentence in the first paragraph under “Reports from Commission Meetings/Events” to: “She said that it is preferable to provide customers a choice and would be relevant to our discussions of opt-in, opt-out with respect to the PaloAltoGreen Gas program.”; and (2) change the second sentence in the second paragraph under “Reports from Commission Meetings/Events” to: “She said the techniques offer lessons to utilities including Palo Alto, particularly with respect to opportunities for customers looking to establish or rehabilitate credit ratings.” Chair Foster moved to approve the minutes from March 2, 2016 UAC meeting with the proposed changes and Commissioner Ballantine seconded the motion. The motion carried unanimously (5-0) with Chair Foster, Vice Chair Cook, Commissioners Ballantine, Danaher, and Schwartz voting yes and Commissioners Eglash and Hall absent. AGENDA REVIEW AND REVISIONS None. REPORTS FROM COMMISSION MEETINGS/EVENTS Commissioner Schwartz attended the Power Agency of Northern California (PANC) meeting, which had the new California Public Utilities Commission (CPUC) Office of Ratepayer Advocates director as the speaker. She is trying to bring innovation and the City can learn from what they will be doing. Commissioner Schwartz reported that she will be attending the next meeting (April 13) of the “51st State Initiative” that examines what it will look like if you could start from scratch to develop a new energy market as a way to discuss innovations around the future of energy. DRAFT Utilities Advisory Commission Minutes Approved on: Page 2 of 15 UTILITIES DIRECTOR REPORT 1. City of Palo Alto Utilities Ranks in Top 10 for Most Solar Watts per Customer : CPAU earned a spot on the annual Top 10 utility solar list compiled by SEPA, the Smart Electric Power Alliance (formerly the Solar Electric Power Association). SEPA ranked CPAU third on the Watts per Customer list, for 1,846 watts per customer and 861 PV systems installed in 2015. This is the 3rd time CPAU has made the Top 10 list. Awards were announced this afternoon at the Utility Solar Conference in Denver. SEPA’s ninth annual survey includes more than 300 utilities across the country. 2. Palo Alto CLEAN (feed-in tariff) Program: On March 28, the City Council voted to maintain the 16.5 cents per kWh CLEAN rate to encourage local so lar projects despite having a unanimous recommendation from the Finance Committee to reduce the price to the avoided cost of about 9 cents per kWh. 3. Mayor’s Green Business Leader Awards: The City’s "Mayor Green Business Leader” Awards program recognizes and promotes Palo Alto companies who have made major strides in improving building energy efficiency. In Palo Alto, businesses that benchmark their energy use and receive ENERGY STAR certification are considered a Green Business Leader. On April 4, Mayor Burt honored eight companies for their leadership in energy efficient building management in 2015. Thirty buildings totaling over 2.3 million square feet of office space qualified for this 4th annual award. CPAU’s news webpage (cityofpaloalto.org/utilities) has more information about the companies honored. 4. National Mayor’s Challenge for Water Conservation: Mayor Burt has joined the Mayor’s Challenge for Water Conservation, a national competition in which city mayors encourage their residents to save water and sign the “My Water Pledge” on behalf of their city. The city with the most pledges at the end of April wins, and residents are then entered into a chance to win prizes such as a new Toyota Prius! Sign on to water conservation at mywaterpledge.com 5. April is National Safe Digging Month – Call 811 to Prevent Pipeline Accidents: April is National Safe Digging Month, a campaign to educate people to "Know What's Below and Call 811 Before You Dig." The City promotes this important safety reminder to our community throughout the year, but is placing additional emphasis on the message in April. Excavation damage remains one of the leading causes of gas and other utility pipeline accidents. These accidents are preventable by first calling 811 prior to digging. The Underground Service Alert (USA) is a free service that will come out and mark all of your underground utilities. Visit Call811.com for more information. 6. Recent and Upcoming Events March 26: Rainwater Harvesting Workshop and Rain Barrel Giveaway April 13: Learning about California Native Plants Workshop Details and registration for this and other workshops are available at cityofpaloalto.org/workshops April 30: Great Race for Saving Water – 5K fun run and walk to raise awareness about water resources and conservation. This family-friendly race and Earth Day festival is a fun, healthy way to celebrate the environment and our precious natural resources. Join fellow community Utilities Advisory Commission Minutes Approved on: Page 3 of 15 members at the scenic Baylands for some outdoor recreation, raffle prizes, goodies, and a chance to catch the “running toilet!” Free bike repairs and tune-ups will be offered by Repair Café for those who bicycle to the event. Details and registration at cityofpaloalto.org/GreatRace COMMISSIONER COMMENTS None. UNFINISHED BUSINESS None. NEW BUSINESS ITEM 1: ACTION: Staff Recommendation that the Utilities Advisory Commission Recommend that the City Council Adopt 1) a Resolution Approving the Fiscal Year 2017 Electric Financial Plan and Amending the Electric Utility Reserves Management Practices, and 2) a Resolution Increasing Electric Rates by Amending the E-1, E-2, E-2-G, E-4, E-4-G, E-4-TOU, E-7, E-7-G, E-7- TOU, E-14, and E-16 Rate Schedules, and Repealing Rate Schedules E-18 and E-18-G Senior Resource Planner Jonathan Abendschein summarized the written report. He explained that distribution and power supply costs are increasing requiring an 11% rate increase this July followed by a 10% rate increase next year. He said that this is the first rate change since July 2009 and the first electric rate change since the passage of Proposition 26. A cost of service analysis (COSA) was completed to support the rates and ensure that they are compliant with Proposition 26. Abendschein reminded that the UAC reviewed, and the Council adopted, electric rate design guidelines and that the COSA is to be completed in two phases . The first phase of the COSA is complete and provided tonight with the second phase starting in late 2016 to examine rate options that need further study and may need advanced met ering technologies such as time-of-use rates. Abendschein said that the projected cost and revenue profile, which reveals that in FY 2015 and FY 2016, revenues did not cover costs and that costs are increasing due to new renewable projects coming on line, increases in capital costs and some increases in operations and maintenance cost related to deferred maintenance and the difficulty filling vacant positions in the Operations Division. Abendschein said that the drought caused short-term cost increases that were funded from reserves. Consistent with the purpose of the reserves, the Rate Stabilization and Hydro Stabilization Reserves were drawn down in FY 2015 and FY 2016 and are expected to be exhausted by the end of FY 2017 . Although staff would have liked to keep the rate increase under 10%, the level of reserves requires a larger increase this year and, even with two years of significant rate increases in FY 2017 and FY 2018, the Supply Operations Reserve falls $3.9 million below the minimum guideline level. Abendschein said that this is allowed as long as the Council approves and the financial plan shows the reserve climbing above the minimum level during the planning period. He added that there is uncertainty in the hydroelectric generation forecast and the spring rains may increase the generation above what is in the forecast. Abendschein said that the risk of any negative impact to the bond rating by falling below the minimum guideline level is very small due to the presence of the significant balance in the Electric Special Projects Reserve, which provides a substantial cushion for the financial health of the Electric Fund. Utilities Advisory Commission Minutes Approved on: Page 4 of 15 Commissioner Danaher asked what rate increase would be required to keep the Supply Operations Reserve above the minimum guideline level. Abendschein said that a 14% rate increase would be required in July 2016 to ensure that the reserve remain above the minimum level. Abendschein said that the projected 11% and 10% rate increases do a good job matching revenues to costs over the next several years. If too large of a rate increase is implemented too early to refill reserves, there could be a need to reduce rates in the future, which is difficult to explain. Abendschein said the Electric Distribution Operations Reserve also goes to minimum guideline level in FY 2016, but is projected to be above the minimum level for the planning horizon (through FY 2023). Abendschein explained that a cost of service analysis (COSA) includes three steps: calculation of the revenue requirement, determination of how much revenue to collect from each customer class, and design of rates to collect the revenues . The COSA involves examining the consumption patterns of each customer group . The result of the new COSA is that there is a different alignment of costs by customer class since the last Electric COSA was performed . This is caused by changing consumption patterns for each customer group. Chair Foster asked if the increased costs for the streetlighting and traffic lights would be paid by the City’s General Fund. Abendschein confirmed this understanding. Chair Foster said that the cost for streetlighting doesn’t seem like a cost of service in the same sense it does for other customer classes. He said that the rate impact for the residents and businesses is softened by hitting the General Fund with these increased costs. Assistant Director said that this is not the reason the cost allocation realignment is being done, but agreed that this is the effect of the change. Commissioner Danaher said that the goal of the COSA is to have a transparent way to see the costs for each customer group and that this is an appropriate way to show the costs of services such as streetlighting. Chair Foster said that he is not surprised by the cost, but is worr ied that this new expense for the General Fund will result in other priorities not being able to be funded since the General Fund has limited sources of funds. Commissioner Danaher asked if the increase cost was driven by the change of streetlights to more efficient LED lamps. Abendschein said that the revenue requirement was developed by determining all the costs—capital and operating—that are needed for the streetlighting and traffic signal service. Abendschein said that Utilities has coordinated very closely with the City’s Office of Management and Budget on this proposal. Chair Foster asked about the large increase in the Municipal Rates (Rate Schedule E -18) and which customers they would impact. Abendschein said that these customers are the City facilities and that when the E-18 rate is repealed, the facilities will be assigned to an applicable rate schedule. He said that this utility—the Electric Fund—is the last utility with these special rate schedules for City facilities. Utilities has coordinated with the Office of Management and Budget on these changed proposal. Chair Foster asked if the Palo Alto Unified School District is part of the customer group. Abendschein responded that it is only City facilities such as City Hall and the Regional Water Quality Control Plant (RWQCP), but does not include the school district. Utilities Advisory Commission Minutes Approved on: Page 5 of 15 Abendschein said that the bill impact for each facility depends on the new rate schedule that they would be assigned to and that some facilities could experience rate increases of 35% or more, but some, such as the RWQCP, will not as that facility will move to the E -7 rate schedule which has similar rates to the current E-18 rates. The smaller City facilities that are moved to the E-2 or E-4 rate schedules will have larger increases. Abendschein explained that the recommended rate design for residential customers (on Rate Schedule E-1) is for two tiers, instead of the current three tiers, since the two -tier rate design most closely matches the cost of service. He added that the proposal includes the addition of a minimum charge for all customers. Abendschein said that the residential rate design proposal is to be consistent with the cost of service down to the rate level as required by Proposition 26. He said that the non-residential rates continue with the same rate design as in current rates. Commissioner Schwartz recommended reviewing Bluebonnet Electric Cooperative’s website, which has a good explanation of the components of their electric rates. Abendschein showed the bill impact of the rate changes for residential (E-1) customers as a result of collapsing the three tiers to two tiers. The largest users have a lesser increase in percentage terms. Commissioner Ballantine asked if next year’s anticipated rate increase of 10% will have a disproportionate impact on residential customers again . Abendschein said that this year’s changes rebalance the cost of service relationship between the customer classes and the changes next year should be more proportionate and not impact one customer group much differently than any other. Commissioner Ballantine asked about whether staff evaluated the impact of two-tier vs. three- tier rates when trying to match the rate structure to the cost of service with respect to the impact on electric vehicle (EV) charging. Abendschein said that there was not sufficient time to conduct detailed analysis on the impact on EV charging, but that this will be reviewed in more detail in Phase 2 of the COSA. Commissioner Ballantine said that with higher EV penetration, the third tier might need to come back or there is some type of fixed cost when peak daytime load needs to be expanded to accommodate EV charging. He said that the carrying capacity of the grid may change as it relates to peak demand, but not necessarily energy. Abendschein said that the City has a fair amount of excess distribution capacity currently and, even with Palo Alto’s high penetration of EVs, the impact is still not significant enough to cause cost increases to the distribution system at this time and there will be sufficient time to adjust to a dramatic increase in EV penetration, if it actually occurs. Abendschein added that the bulk of the residential EV charging occurs during the middle of the night and not at the distribution system’s peak times. Commissioner Danaher noted that the draft Sustainability and Climate Action Plan encourages EVs and asked whether EV owners would be pushed into the highest price tier. Abendschein noted that the rate proposal eliminates the highest priced third tier so the impact on EVs is reduced from current rates. Utilities Advisory Commission Minutes Approved on: Page 6 of 15 Vice Chair Cook said that the community doesn’t like rate increases. However, we have been blessed with rates that have not changed in 8 years and the rate comparisons show that the rate increase still results in relatively low rates compared to neighboring utilities. Vice Chair Cook asked if the rate proposal would result in any discou ragement of EVs or of electrification to reduce GHG emissions. Abendschein said that there are many drivers for electrification and cost is not necessarily all of it. The rate increase will tend to discourage electrification, but the elimination of the third tier will encourage electrification. Abendschein noted that gas rates are projected to increase as well. Commissioner Ballantine stated that in a recent presentation to the UAC, staff showed that the economics of solar thermal systems (hot water heating) are challenging. He said that these rate changes will improve the cost-effectiveness of solar PV, which could push people to use solar for electricity rather than for its thermal heat. However, this is a less efficient way to use energy from the sun so this change will push towards thermal use. He said that using heat from the sun to make heat makes more sense from a physics perspective. Vice Chair Cook asked whether smart meters will change the cost of service since customers may adjust their usage based on better information provided to them. Abendschein said that it was too early to conclude anything since the CustomerConnect program is still underway and that Phase 2 of the study will show more results as to changing customer behavior that may change the factors that contribute to the allocation of costs in the cost of service study . Vice Chair Cook said that the community has enjoyed stable rates for a long time, but will need to accept the rate increase at this point. He commented that Proposition 26 has taken away the ability to design rates to some extent, which can be very frustrating. Abendschein reminded that this is why the rate design guidelines are taken to the UAC for recommendation and the Council for approval in advance of conducting a new COSA. Chair Foster asked if the projected 11% in FY 2017, then a 10% rate for FY 2018 followed by a 2% increase in FY 2019 could be spread out more evenly over the those years—for example, 8% per year in FY 2017 and FY 2018 following by a higher than 2% increase in FY 2019. Abendschein explained that the reserve would fall far below the minimum in that case . Alternately, the City would have to cut back on capital improvements or maintenance to reduce cost. Abendschein referred the Commission to the rapidly escalating costs in FY 2016 and FY 2017 shown in Figure 7 on page 20 of the FY 2017 Electric Financial Plan. He said that rates must follow those costs. Chair Foster asked how much lower the reserves would go with an 8%, rather than an 11% rate increase in July. Abendschein said that the reserve would almost be exhausted in that case. He noted that reducing the increase in FY 2017 and FY 2018 would require a larger increase in FY 2019 and FY 2020 to the extent that rates would then be too high to not only recover costs, but to refill reserves such that a rate decrease could be needed in the future, which would be difficult to explain to customers. Chair Foster would prefer not to hit the General Fund with the cost of streetlights and traffic lights as he thinks that the General Fund will have to reduce programs and funds elsewhere to pay the increased cost. He would also like to continue with three tiers for the E-1 rate schedule to promote conservation. Senior Deputy City Attorney Jessica Mullan said that the streetlights Utilities Advisory Commission Minutes Approved on: Page 7 of 15 rates must be based on the cost of providing the services and any alteration to the proposal must be cost-justified. Chair Foster said that all residents and businesses benefit from streetlights including businesses and residents. Chair Foster asked how long the streetlight service has been provided by Utilities as a “freebie”. Assistant Director Jane Ratchye said that this is the first time that the Electric Fund will be subject to Proposition 26 si nce the City hasn’t changed rates since it was effective in 2010. Mullan added that now that the City is adjusting its electric rates, it is under Proposition 26 and all electric rates must be cost -justified, which is why the COSA was so careful to make sure that all rates are based on the cost of service. Commissioner Ballantine agreed that it’s not only City employees that benefit from streetlights, but the greater city and community—all ratepayers—that benefit. Vice Chair Cook added that there are many things that are a common good and asked why ratepayers would pay for that common good and not roads or other services. Commissioner Ballantine said that the City doesn’t supply electricity to the roads. Chair Foster said that the City has no ability to rai se taxes for this service. Commissioner Schwartz said that it is more transparent to show the true cost of providing this service and that if the rates for streetlights were not increased to cover the cost of providing the service, the rest of the electric rates would have to increase even more. Chair Foster said that of the $12 million revenue increase for this rate increase, $2 million is for the increased cost of streetlights. Chair Foster asked how the City would be able to cover these increased costs. Mullan said that she couldn’t speak to the budget process the Council will go through to balance the budget, but she wanted to clarify that streetlights are an electric service and that service must be provided at cost-based rates. Chair Foster said that she would recommend that the City develop a creative way to fund this cost rather than put it on the General Fund. Commissioner Ballantine said that the changes to the municipal rates (repealing the E-18 rate schedule) will also add significant costs to the General Fund. Chair Foster agreed that the hit to the General Fund is not just the $2 million for the streetlights, but an additional increase for electric service for municipal facilities. Abendschein said that the total impact to the General Fund is about $2.5 million since the E-18 rate affects some customers who are not the General Fund (such as the RWQCP). Vice Chair Cook said that he heard earlier that Utilities staff worked with the City to coordinate this change. He asked if the General Fund expressed any concerns. Abendschein said that concerns were expressed, but that staff incorporated the change and included these increased costs when it prepared the City’s financial forecast last fall. Commissioner Schwartz asked if there are public hearings to educate the community about the rate changes and asked if there should be additional communication efforts given the large increases. Ratchye added that the Utilities Communication Manager has developed a comprehensive communication plan for the rate increase. Commissioner Schwartz asked if the UAC can provide suggestions to improve communications. Chair Foster asked for Commission comment on two versus three tiers for the E-1 Rate Schedule. Commissioner Schwartz noted that the investor-owned utilities (IOUs) have gone from five tiers to four and then three and will soon go to two tiers, then to time-of-use (TOU) rates with no tiers. Abendschein said that it’s nice to be consistent with other utilities, but the proposal was developed because it is the most consistent with the cost of service. Commissioner Schwartz commented that a two-tier rate structure is better for EV owners. Utilities Advisory Commission Minutes Approved on: Page 8 of 15 Abendschein said that the rates also provide more of an equitable incentive for all customers to install PV, instead of only high energy users who are in the highest (most expensive) tier. It also improves the incentive for all customers to increase efficiency. Commissioner Ballantine noted that the rate impact percentage-wise is the lowest for the highest users. He said that the first tier increases by 16%, tier two increases by 30%, but the third tier falls by 3%. Although the model developed these rates, no rate structure can actually exactly reflect the cost of service. Abendschein said that the model is used to allocate actual costs and those decisions have to be explainable and fully justifiable—the method does not involve averaging, or a statistical scenario—and industry standard methodologies were used to allocate the costs and develop the rates. Commissioner Ballantine asked if there is any way to re-create a third tier since the percentage difference is so low. Commissioner Schwartz asked if a larger increase on high energy users—so that their increase would be comparable to lower energy users—could potentially fund the streetlights. She said that he higher energy users may be less price sensitive. Abendschein said that the only way to do that is to find a cost of service nexus with streetlights and noted that we are constrained by the imperative to develop rates based on the cost of service. He said that when judgement was used, staff used the judgement to align as close as possible to the policy guidelines established by Council, but there are many constraints now that there weren’t in the past. Abendschein said that the need to have cost of service based rates requires that many of the policy decisions that were made in the past need to be undone. Commissioner Ballantine asked if residential rates could be seasonal like the non -residential rates. Abendschein said that the rates effectively do that since the residential class is a winter- peaking group and the tier one cutoff reflects the summer usage so that the tier two usage is for winter usage. Commissioner Ballantine said that EV use is not seasonal. Abendschein said that if seasonal rates were developed for residents, the rates would be higher in the winter than in the summer. Chair Foster asked if there were any recommendations before a motion is made. Commissioner Ballantine said that perhaps a work group could examine the consultant’s work to see if there is any strategy to use to change the proposal. Chair Foster said that there is a certain frustration when presented with rates and COSAs since there seems to be very little that can be done. Chair Foster said that the dropping of the three tiers could be justified. Abendschein said that the COSA does not justify three tiers. Chair Foster said that there seems to be little room to not increase the streetlight costs to the General Fund. Interim Director Ed Shikada mentioned that the General Fund has anticipated that it needed to fund streetlights and stated that the transition is recommended by the City Manager. Chair Foster responded that the hit to the General Fund includes not just for streetlights, but also for the change to Municipal Rates , and asked if there was any source of funds that the General Fund can use to pay these increased costs . Shikada said that one source of funds could be the gasoline tax, which could potentially be used for streetlights, but revenues from that source are diminishing. He also mentioned that a new transportation tax is being discussed that could be used for keeping streets in good repair. Shikada concluded that Utilities Advisory Commission Minutes Approved on: Page 9 of 15 the General Fund is aware of these changes and supports the recommendation that the Electric Fund no longer funds these services. ACTION: Vice Chair Cook moved to recommend that the UAC recommend Council approve staff’s proposal and Commissioner Schwartz seconded the motion. The motion carried unanimously (5-0) with Chair Foster, Vice Chair Cook, Commissioners Ballantine, Danaher, and Schwartz voting yes and Commissioners Eglash and Hall absent. ITEM 2. ACTION: Staff Request that the Utilities Advisory Commission Recommend that City Council approve the Proposed Net Energy Metering Successor Rate E-EEC-1 and Net Energy Metering Grandfathering Policy Resource Planner Aimee Bailey summarized the written report. Bailey stated that a State requirement requires net energy metering (NEM) until a cap is reached . She explained that NEM is like “rolling the meter backward” by providing full retail rate compensation for distributed generation, which in Palo Alto are rooft op solar photovoltaic (PV) systems. Palo Alto’s NEM cap is 9.5 MW and when it is reached, a successor program is needed . Bailey discussed the 8 NEM Successor Program design guidelines that were reviewed by the UAC in November 2015 and approved by Council in January 2016. She noted that the NEM successor rate must be consistent with the cost of service and must be compliant with Proposition 26. Bailey mentioned that the City’s installed NEM capacity was 7.5 MW as of mid - February and that the City may reach its NEM cap by the end of 2016. However, if a few large systems were installed by commercial customers, the cap could be reached quickly and, therefore, a successor program needs to be in place to provide certainty for customers contemplating installing solar PV. Bailey noted that there is a proposed bill in the State legislature (Assembly Bill 2339) that may require the NEM cap to be calculated differently—and could double the City’s NEM cap, but it is still in the legislative review process and may be amended. If and when the bill is signed into law, Palo Alto would comply. Bailey presented the proposed rate: a two-part rate that charged the retail rate for any energy delivered to the customer and a credit applied for any energy delivered to the grid. The credit rate is based on the short-term value of solar and would change every year as that value changes. For FY 2017, the proposed credit rate is 7.485 cents per kilowatt -hour (₵/kWh). Bailey showed an illustration of a customer with a solar PV system to show when energy usage is greater than PV generation and when PV generation is greater than usage. She showed an illustration of a PV customer’s bill with the current NEM program compared to the proposed NEM successor program. Bailey described the components of the proposed credit rate for FY 2017 of 7.485 ₵/kWh: 3.02 ₵/kWh for avoided energy cost + 1.45 ₵/kWh for the environmental attribute + 0.58 ₵/kWh for capacity + 2.00 ₵/kWh for avoided transmission costs and ancillary service value + 0.44 ₵/kWh for avoided transmission and distribution system losses. Utilities Advisory Commission Minutes Approved on: Page 10 of 15 Commissioner Ballantine said that smart inverters, if installed or required in the future, could increase the value of the ancillary services used in the credit rate calculation. He remarked that he hoped that an expanded discussion on this topic may be better suited f or the upcoming UAC meeting in June when the rolling calendar shows the subject of storage and microgrids on the agenda. He asked how the City will encourage people to stabilize the grid using advanced inverters. Bailey confirmed that the proposed credit rate did not include any additional value stream that advanced inverters could provide. She said that the City is very interested in this subject and released a request for proposal for encouraging distributing energy resources. Commissioner Schwartz noted that Arizona Public Service has a good program for managing inverters that the City could potentially learn from. Commissioner Danaher asked why the energy value is only 3.02 ₵/kWh since solar generation is in the middle of the day. He asked what the City’s energy costs are and how the value was developed. Bailey explained that the energy value is based on the shape of solar energy production so that it is higher than energy generation that occurs on a “flat” 24/7 basis. She said it was a short-term value based on the forward prices for mid-day energy for FY 2017 and is consistent with all assumptions used to manage the City’s electric portfolio. Commissioner Danaher asked if the value included the Renewable Energy Certificates (RECs). Bailey explained that the RECs are included and are currently valued at 1.45 ₵/kWh. Bailey said that the energy value was for the solar generation profile and, therefore, takes into account the timing of the energy generated at peak demand. Vice Chair Cook asked how this value compared to the avoided cost of local solar used in the Palo Alto CLEAN (feed-in tariff) program. Assistant Director Jane Ratchye explained that one of the fundamental differences between the proposed credit value for the NEM successor program compared to the avoided cost of solar for the CLEAN program is that the NEM successor value is based on a short-term avoided cost (for FY 2017) while the CLEAN program is based on a long-term levelized cost over a 20- or 25-year period. Commissioner Schwartz asked if the City can use the excess capacity generated by PV systems in excess of the customer’s usage. Bailey noted that many customers do not export any energy, but use most or all energy generated on site. She added that solar generation does assist the City in lowering its peak demand, which reduces its costs for capacity needs and that the proposed credit rate includes that value of local solar . She said that this value will be re- evaluated every year, which is part of the reason that the credit rate will be adjusted annually to ensure that local solar generation is fairly compensated at full value. Bailey noted that NEM will require a bidirectional meter that would be required to measure separately the energy delivered to the customer as well as the energy received from the customer. She said that the meter would be paid for by the utility (all ratepayers) as meter replacement is part of the long-term plan. However, the customer would pay an interconnection fee under the Electric Service Connection Fee schedule (Rate Schedule E-15) that is currently being revisited (estimated to be a one-time fee of $100-$200). She added that the City would likely be required to issue 1099s for exported energy if its value exceeded $600 annually. Utilities Advisory Commission Minutes Approved on: Page 11 of 15 Bailey noted that customer economics for solar PV depend on many factors including the fraction of energy used on site versus the amount exported, solar PV costs, federal incentives, and other tax implications. She said that if all solar energy is used no-site and none is exported to the grid, the proposed NEM successor program is effectively identical to the current NEM program and customer economics do not change. Bailey said that this is the case for most commercial customers who use all the energy th ey generate on site. Customers who shift energy usage to times when their PV system is generating would improve the economics of their system. Commissioner Schwartz asked about the impact of storage on customer load and whether there is some optimization that could occur. Bailey said that staff is evaluating that impact in its evaluation of storage and other distributed energy resources (DERs). She pointed out that this was discussed in Attachment B of the report , which addresses each of the Council-approved NEM successor program design guidelines. Bailey mentioned that the proposed rate encourages storage and other DERs, especially in light of the impact of renewables on the grid and the “duck curve” issues. Commissioner Ballantine said that if the maximum amount of roof space in the City was used for solar PV generation to effectively power Palo Alto, but the one “bad day” occurred with a power outage, the lack of smart inverters would result in a drop of all the load in Palo Alto. He encouraged the City to find ways to encourage smart inverters and the local use of storage to avoid that potential problem. Bailey described the proposed grandfathering program that would enable NEM customers to remain on NEM for 20 years from the time of interconnect ion and to expand their systems by up to 10% of the original system capacity after the NEM cap is reached . Public Comment Tom Kabat said that NEM rules were very valuable to get PV off the ground and the industry did respond to these incentives resulting in a dramatic lowering of costs. Now the industry has expanded and costs have come down to between 6 and 9 cents per kWh over the life of the system. He said that the City’s “game changing” carbon neutral policy makes the investment in local solar less valuable since the new resources added to the electric portfolio are low-priced solar located outside the City. He said that the staff estimate of the value of local solar is fair and is not overpaying as in the Palo Alto CLEAN program. The staff proposal is fair to current PV customers (by grandfathering them in for the life of their investments), to future PV customer (by fairly valuing their generation and requiring them to pay the normal cost for energy delivered to them), and to their shaded neighbors and other non-PV customers (since they don’t have to pay higher rates to support PV customers). The program also encourages energy storage (to take on the duck curve problem), and is a policy to encourage electrification, which is the way to reduce carbon emissions since the City’s electric portfolio is already carbon neutral. Gina Goodhill Rosen, a representative of Solar City, supports the NEM grandfathering proposal, but strongly opposes the successor program as she says it undervalues the solar generation produced. Without a comprehensive, rigorous analysis of both the costs and benefits of NEM, Utilities Advisory Commission Minutes Approved on: Page 12 of 15 the consideration of the proposal should be delayed. NEM fairly compensates solar customers, has been working well and is part of the reason the solar industry h as been so successful. Solar has brought many jobs and millions of dollars of investment to the state and city. The proposal does not fairly compensate PV customers for the benefits they provide to the grid and compensates them at a significantly lower rat e than the Palo Alto CLEAN program does. This mixed message is confusing to customers and implicitly recognizes that there are benefits of local solar that are not being recognized in this proposed NEM successor program . This proposal does not support the City’s and state’s climate goals and is in stark contrast to the California Public Utilities Commission’s (CPUC’s) decision to continue NEM for the investor- owned utilities (IOUs) who serve the large majority of the state’s residents and businesses. Legislation (AB 2339) may expand the NEM cap for municipal utilities or the City could independently choose to expand its own cap. She said that the City should delay action on the NEM successor program until the legislation has been enacted. Chair Foster asked Ms. Rosen to expand upon the CPUC decision with respect to the IOUs. MS Rosen said that the CPUC adopted basically a continuance of NEM for the IOUs after a year-long stakeholder review process. Chair Foster for staff’s comment about the CPUC decision to continue NEM. Bailey said that the City is not subject to CPUC regulations and the IOUs are not subject to Proposition 26 . Bailey reiterated that the credit rate proposed is a cost-justified rate that was developed in concert with the Electric Cost of Service Analysis (COSA) and that it is compliant with Proposition 26 , which is the overriding consideration for the development of this rate . Chair Foster asked for staff’s comments on the disparity between the proposed credit rate of 7.485 ₵/kWh and the Palo Alto CLEAN price of 16.5 ₵/kWh. Ratchye mentioned that the Palo Alto CLEAN rate is available to all customers, including residential customers, so customers are free to participate in the Palo Alto CLEAN program and get the16.5 ₵/kWh rate for all the e nergy generated by their PV system. Bailey explained the differences between the CLEAN program price and the NEM successor credit rate. For one, the CLEAN price is fixed for a 20- or 25-year period, but the NEM successor rate would change every year as the avoided cost changes (up or down) over time. Also, the energy component of the rate is calculated using market rate forecasts for what the City would buy energy from the market for the next year for an energy production profile of solar energy generation. The energy avoided cost for the CLEAN price was calculated by taking the average of the best ten proposed prices received in the most recent Request for Proposals (RFP) for long-term renewable Power Purchase Agreements. Chair Foster asked if there is any choice on this, or is the City stuck by the Proposition 26 requirement. Deputy Senior Assistant City Attorney Jessica Mullan said that there are always choices, but the legal requirement is to have rates that are cost justified such as the proposed rate. Any other proposal would require the consultant to determine that it was cost justified. Commissioner Ballantine asked whether the Palo Alto CLEAN price is compliant with Proposition 26. Ratchye explained that the CLEAN price is for resources procured for the whole portfolio so that the cost is shared by all customers, but that customer rates need to comply with the cost-based requirement of Proposition 26. Utilities Advisory Commission Minutes Approved on: Page 13 of 15 Commissioner Schwartz noted that Solar City has a different business model than the City . She said that the City is also tasked with keeping rates and costs low for the ratepayers. She said that as you look at the evolving industry and that the City has done much to encourage solar, but this is a place where the City can control costs to residents and not unduly burden those with lower energy usage or those who cannot install solar on their homes. She said that his is one place where we can minimize costs to residents and not unduly burden the people who have shade trees and won’t put solar on their house or if their usage and bills are too low and the staff recommendation does that and she supports it. Commissioner Schwartz said she was called by someone selling solar installer today who asked if her bill was under $75 and she said yes, then they hung up on her. Commissioner Danaher said he supports continuing NEM as suggested by Ms. Rosen in Mountain View or other places, but in Palo Alto, we have large contracts for solar energy that are a less expensive way to provide solar to the City. He only reluctantly supports the CLEAN program price since he wants to get renewable energy at the lowest possible cost. He supports the staff proposal, especially until there are smart inverter s that could provide an actual extra local benefit for local solar. Vice Chair Cook supports continuing NEM, which he said is what this proposal does. He said that as the technology gets less expensive over time, the same incentive is not required. He said that continuing the program at a lower cost makes sense. ACTION: Commissioner Schwartz moved to recommend that the UAC recommend Council approve staff’s proposal and Vice Chair Cook seconded the motion. The motion carried unanimously (5- 0) with Chair Foster, Vice Chair Cook, Commissioners Ballantine, Danaher, and Schwartz voting yes and Commissioners Eglash and Hall absent. ITEM 3. ACTION: Staff Recommendation that the Utilities Advisory Commission Recommend that the City Council Adopt: (1) a Resolution Approving the Fiscal Year 2017 Gas Utility Financial Plan; and (2) a Resolution Increasing Gas Rates by Amending Rate Schedules G-1 (Residential Gas Service), G-1-G (Residential Green Gas Service), G-2 (Residential Master- Metered and Commercial Gas Service), G-2-G (Residential Master-Metered and Commercial Green Gas Service), G-3 (Large Commercial Gas Service), G-3-G (Large Commercial Green Gas Service, G-10 (Compressed Natural Gas Service) and G-10-G (Compressed Natural Green Gas Service) Acting Rates Manager Eric Keniston summarized the written report . He explained that gas rates were proposed to increase by 8%, slightly higher than the 7% shown in the preliminary forecast in February. Overall rates for a median customer bill would be around 9%. Keniston explained that gas revenues have been below expenses for several years, and reserves had been used to make up the shortfall. A series of rate increases would be needed to bring revenues back in line with cost. Keniston also explained that gas sales had been decreasing over several years. While commodity rates changed monthly based on market prices, distribution costs were not, and if consumption continued to decrease, rate increases would need to be higher to recover shortfalls. Utilities Advisory Commission Minutes Approved on: Page 14 of 15 Keniston showed that, with current sales projections and the proposed rate trajectory, Operations reserves would fall to near the minimum guideline levels for a few years before recovering back to target. The proposed rate changes themselves were shown, and Keniston noted that they resulted in an average 8% increase for most customers. As was requested by the UAC in February, two additional scenarios were provided, the first where Operations reserves were allowed to stay at or near the minimum guideline level, the second where reserves were kept at or near target levels. The first scenario indicated a 24% rate increase would be needed in FY 2018, the second a 16%, and staff recommended neither approach. The Commission had no questions on the proposed rates or FY 2017 Gas Financial Plan following Keniston’s presentation. ACTION: Vice Chair Cook moved to recommend that the UAC recommend Council approve staff’s proposal and Commissioner Schwartz seconded the motion. The motion carried unanimously (5-0) with Chair Foster, Vice Chair Cook, Commissioners Ballantine, Danaher, and Schwartz voting yes and Commissioners Eglash and Hall absent. ITEM 4. ACTION: Staff Recommendation that the Utilities Advisory Commission Recommend that the City Council Adopt a Resolution Approving the 2015 Urban Water Management Plan and Adopt an Ordinance Amending Municipal Code Sections 12.32.010 (Water Use Restrictions), and 12.32.020 (Enforcement) Senior Resource Planner Karla Dailey explained that the 2015 UWMP is a regulatory requirement and has many prescribed elements and data. It is not an internal planning document that will determine what the City’s plan is with respect to options such as recycled water and groundwater. She noted that things have changed since the 2010 plan including the completion of the Emergency Water Supply and Storage Project to refurbish 5 wells, drill 3 new wells, and install a large new storage reservoir. She said that water demand has fallen due to the current drought as well. In addition, the Hetch Hetchy system has nearly completed its long- term capital program, the Water System Improvement Program. The City is embarking on a holistic plan to evaluate recycled water and groundwater, including the potential to recharge groundwater with purified recycled water . The 2015 UWMP includes an evaluation of a group of conservation programs, or “Demand Management Measures”. The Water Shortage Contingency Plan is a significant part of the 2015 UWMP and new permanent restrictions are proposed to be added. The Commission had no questions on the 2015 UWMP following Dailey’s presentation. ACTION: Vice Chair Cook made a motion to recommend that the UAC recommend Council approve staff’s proposal and Commissioner Schwartz seconded the motion. The motion carried Utilities Advisory Commission Minutes Approved on: Page 15 of 15 unanimously (5-0) with Chair Foster, Vice Chair Cook, Commissioners Ballantine, Danaher, and Schwartz voting yes and Commissioners Eglash and Hall absent. ITEM 5. ACTION: Selection of Potential Topic(s) for Discussion at Future UAC Meeting Commissioner Ballantine noted that the forward looking “rolling calendar” shows a schedule for the UAC to discuss microgrids and storage in June. He asked that staff include a discussion, or at least an opportunity for the UAC to discuss, the City’s interconnection rules and the benefits of advanced inverters. Ratchye indicated that the item will be a discussion item and that this discussion would be appropriate with that item. ACTION: None. ITEM 6. DISCUSSION: Update and Discussion on Impacts of Statewide Drought on Water and Hydroelectric Supplies Senior Resource Planner Karla Dailey said that the precipitation and snow pack is above a verage and that San Francisco is not planning to ask for water use reductions from its customers. The state, however, may continue to require reductions in potable water use. A decision will be made on May 3, 2016. Dailey provided precipitation data at Het ch Hetchy through April 3, 2016 showing above average numbers. Dailey also showed updated graphics of the Regional Water System storage level and water savings to date in Palo Alto. Dailey said San Francisco Public Utilities Commission anticipates a lot of water going into storage as the snowmelt occurs. Dailey concluded with an update of drought impact on Palo Alto’s electric costs. Ratchye explained that even though water year 2016 is an above average year for precipitation at Hetch Hetchy, projected hydro generation for fiscal year 2016 will be reflective of a dry year scenario. Meeting adjourned at 10:10 p.m. Respectfully submitted, Marites Ward City of Palo Alto Utilities MEMORANDUM TO: UTILITIES ADVISORY COMMISSION. FROM: UTILITIES DEPARTMENT DATE: MAY 4, 2016 SUBJECT: Staff Recommendation that the Utilities Advisory Commission Recommend that the City Council Adopt the Proposed Operating and Capital Budgets for the Utilities Department for Fiscal Year 2017 Attached are the FY 2017 Proposed Operating and Capital budgets for the Utilities Department. Due to the size of the CIP budget, staff only printed the summary pages of each utility along with the new CIP projects proposed for FY 2017 — FY 2021. The entire Utilities CIP budget for FY 2017 — FY 2021 with the individual project pages can be downloaded and viewed in full from the link: Proposed Utilities Capital Budget for FY 2017 — FY 2021 ATTACHMENTS A. FY 2017 Proposed Operating Budget for the Utilities Department B. FY 2017 Proposed Capital Budget for the Utilities Department — CIP Summary and New CIPs PREPARED BY: DAVE YUAN, Strategic Business Manager >Q 1 DEPARTMENT HEAD: ED SHtKADA Director of Utilities Page 1 of 1 ENTERPRISE FUNDS OVERVIEW ENTERPRISE FUNDS OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET 93 Enterprise Funds Overview The City of Palo Alto’s utility and public works operations are comprised of the Electric, Fiber Optics, Gas, Water, Wastewater Collection, Refuse, Wastewater Treatment, Storm Drainage, and Airport Funds. A financial summary of the funds follows this overview followed by discussion and pertinent information in each fund section. REVENUES The total combined budgeted revenues of the Enterprise Funds for Fiscal Year 2017 is $347.2 million, which is $56 million, or 19 percent, higher than the previous fiscal year. The collective increase is partially attributable to: a increase of $15.2 million in utility fees for electric sales; a $9.5 million increase in Operating Transfers-In due to capital projects funding adjustments and new projects. The revenue increase is also driven by net sales in several Enterprise funds due to planned rate increases. Water Fund rates are increasing 6.0 percent but revenues are flat due to water usage declining, while the Wastewater Collection and Refuse funds are both planning 9.0 percent increases which will result in net sales revenue increases of $0.9 million and $0.5 million, respectively. EXPENDITURES Aggregated budgeted expenditures of the Enterprise Funds are $382.8 million in Fiscal Year 2017, compared to $351.2 million in Fiscal Year 2016. This represents an increase of $31.6 million. The increase is partially attributable to a $16.7 increase in Capital Improvement Program (CIP) costs, including $13.9 million increase in Wastewater Treatment Fund capital expenditures and a $5.3 million in Electric Fund projects. Of the net $16.7 million increase in CIP costs, this reflects $27.9 million for the continuation of projects previously approved and appropriated by the City Council in prior fiscal years. Commodity purchase costs also increased by $5.1 million for Enter- prise Funds. Electric supply costs increased by $10.1 million and the Refuse fund by $0.5 million, while Gas supply costs decreased by $3.2 million, and Water supply costs by $1.3 million. Other significant increases consist of increases in salaries and benefits of $2.3 million, for medi- cal contributions and other benefits adjustments; and an increase of $0.8 million for facilities rental and equipment. UTILITY RATE CHANGES This Fiscal Year 2017 Budget includes utility rate adjustments for fiber optics, refuse, storm drain, water, and wastewater charges. The average monthly residential Utilities bill is expected to increase by $22.42 from $256.28 to $278.70. The City’s fiber optics rate will adjust according to a contractual 3.2 percent Consumer Price Index increase. In general, the size and timing of rate adjustments takes into account current and future reve- nue requirements and reserve levels. They may also cushion the impacts on customer bills by spreading rate adjustments during consecutive or alternate years. Electric Fund - 11.0 percent rate increase to replenish reserves that were depleted over the past few years to offset the low hydro output and recover operational costs. ATTACHMENT A ENTERPRISE FUNDS OVERVIEW 94 ENTERPRISE FUNDS OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET Gas Fund - 8.0 percent rate increase to recover increased local transportation costs and major capital investments by PG&E to increase the safety and reliability of the backbone pipeline and local transmission system. Water Fund - 6.0 percent rate increase to match increasing water supply costs, particularly the cost of water supplied by the San Francisco Public Utilities Commission (SFPUC), which is issuing debt to fund major improvements to the Hetch Hetchy transmission system as well as increased local operation costs. Wastewater Collection Fund - 9.0 percent rate increase based on capital project cost increases, and continuing increases in treatment and operations costs. Fiber Optics Fund - A contractual 3.2 percent Consumer Price Index (CPI) increase. Storm Drainage Fund - A rate increase of 3.2 percent, increasing the monthly charge for the fee per Equivalent Residential Unit to adjust for a Consumer Price Index increase, as approved by voters. Refuse Fund - A residential and commercial rate increase of 9.0 percent and 5.0 percent respectively, the second year of increases in a three year plan to balance refuse revenues with costs, and the implementation of a new residential food scrap collection program. RENT Enterprise Funds pay market-based rental fees for the sites needed to conduct their business operations. The rent paid for City-owned sites was adjusted due to an independent appraisal of all sites, and as appropriate, an annual CPI increase of 2.6 percent. The rent for Fiscal Year 2017 represents a $0.3 million increase from Fiscal Year 2016. EQUITY TRANSFERS In Fiscal Year 2010, the Council adopted a change to the methodology used to calculate the equity transfer from Utilities Funds to General Fund. Under the Utilities Enterprise Methodology, the equity transfers are based on a rate of return on the asset base in the Electric and Gas Funds. This rate of return is based on Pacific Gas and Electric’s (PG&E) rate of return on equity as approved by the California Public Utilities Commission (CPUC). The equity transfer from the Electric and Gas Funds is projected to increase by $891,000 from $17.9 million in Fiscal Year 2016 to $18.8 million in Fiscal Year 2017. RESERVES The financial revenue and expense forecasts are estimates at a single point in time; some Utili- ties Reserves serve as “balancing accounts“ which mitigate the risk of commodity price swings and insure against default by our wholesale suppliers. Other Reserves are used to provide cash for replacement parts during an emergency infrastructure failure, or serve as temporary “park- ing“ for planned expenditures. Reserve levels that are above guidelines are returned to custom- ers in the form of lower future rates, or used to pay for expenses, which also result in lower future rates. Continuing a new practice established in Fiscal Year 2016, the reappropriation of Capital project budgets for the continuation of projects previously approved and appropriated by the City Council in prior fiscal years is shown as expenditures in the the operating budget for each ENTERPRISE FUNDS OVERVIEW ENTERPRISE FUNDS OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET 95 Enterprise Fund. The inclusion of these costs impacts the fund balance of the respective Enter- prise funds. To highlight the difference between the use operating reserves and capital reappro- priations, the capital reappropriations and their impact on fund reserves are reflected in the Capital Improvement Program Reserve line of the Enterprise Funds Reserve table. The total Enterprise Fund Reserve Balances decreased by $35.6 million from Fiscal Year 2016 to Fiscal Year 2017. UTILITIES ENTERPRISE FUNDS Utilities’ projected rate adjustments included in their Financial Plans will increase rates for Elec- tric (11.0%), Gas (8.0%), Water (6.0%) and Wastewater Collection (9.0%) in Fiscal Year 2017, in addition to a contractual 3.2% Consumer Price Index increase to the City’s Fiber Optics custom- ers. The City has drawn down reserves over the past few years to offset rate increases, but the City must raise rates to cover all costs to operate and maintain safe and reliable utility services. Rate increases are projected beyond Fiscal Year 2017 in anticipation of rising commodity costs, replacing aging infrastructure and replenishing depleted reserves. Electric Fiscal Year 2017 rates are increasing by 11.0 percent to recover operational costs and replenish reserves that were depleted over the past few years to offset the low hydro-electric output. Rates are projected to increase by 10.0 percent in Fiscal Year 2018 before stabilizing to 1.0 - 2.0 percent annual increases through Fiscal Year 2021. In Fiscal Year 2017, planned CIP expenditures for the Electric Fund total $21.6 million. CIP projects include Electric Customer Connections, funding for work required to meet the needs of customers who have applied for new or upgraded electric service, need temporary power for construction, or require other ser- vices rebuilding; and $17.7 million in System Improvement projects, including $5.0 million for electric pole replacements for the Fiber-to-the-Premise (FTTP) program, in addition to the replacement/upgrade of old cables and equipment and bringing designs up to current stan- dards, installation of protective equipment and switches, conversion of the electric system to higher voltage capacity, and installation of capacitors to improve efficiency. Gas Fiscal Year 2017 gas distribution rates are increasing by 8.0 percent. Gas utility sales and reve- nues declined as customers consumed less gas overall. Expenses are decreasing by $1.6 million, mostly due to $3.2 million in lowered commodity costs. In Fiscal Year 2017, Gas Fund planned CIP expenditures total $6.3 million, an $828,000 decrease from prior year levels. A significant amount of capital expenditures are appropriated for infrastructure to provide gas service con- nections to new customers, meet changes in existing customer service demands, and respond to changes in gas service requirements due to new development or redevelopment. These proj- ects include $4.2 million in Gas Main Replacements projects to replace inadequately-sized and structurally deficient gas mains, $1.4 million in Gas Customer Connections projects to fund con- nection work for customers who have applied for new or upgraded gas service, and other gas infrastructure replacements. ENTERPRISE FUNDS OVERVIEW 96 ENTERPRISE FUNDS OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET Water Fiscal Year 2017 water utility rates are increasing 6.0 percent due to an increase in wholesale water supply rates. The water utility financial forecasts flat revenues for Fiscal Year 2017 due to decreased water sales during last year’s drought conditions, mandatory usage reductions imposed by the state, which offset the rate increases. Wholesale water costs are projected to rise to 7.5 percent per year, on average, through Fiscal Year 2020, and then will stabilize to 2.0 - 3.0 percent increases through Fiscal Year 2024. Water financial forecasts are seven years long due to the length of the SFPUC Water System Improvement Program (WSIP) which is expected to be completed within this forecast period. In Fiscal Year 2017, $9.6 million is budgeted in the Water Fund for CIP expenditures. The Water Fund CIP primarily involves the water main replacements and other projects focused on reliability. Included proposals are $6.3 million to fund water main replacement projects, and $2.6 million to fund water system improvements, such as water meters water service hydrant replacement. Wastewater Collection Wastewater Collection Fiscal Year 2017 are increasing by 9.0 percent, due to capital projects costs for main replacement projects. The utility has accumulated reserves due to a temporary reduction in CIP spending in Fiscal Year 2014 (related to staff vacancies), and is drawing these reserves down over the course of a five-year forecast period to smooth the transition to higher rates. Rates are projected to increase 6.0-10.0 percent annually through 2021, with a projected tapering in the out years. The Wastewater Collection Fund has budgeted $4.8 million for Fiscal Year 2017 CIP expenditures. Included are infrastructure projects to rehabilitate collection sys- tems and manholes, and to reduce groundwater and rainfall seepage into the pipelines. Fiber Optics Utilities provides commercial dark fiber optic services within the boundaries of the City of Palo Alto. In September 2006, Council approved the Dark Fiber Licensing Agreement allowing the commercial fiber optic fees charged under the EDF-1 and EDF-2 rate schedules to be adjusted annually in accordance with the Consumer Price Index (CPI). EDF-1 was a promotional rate and was closed to new Dark Fiber licenses in 2006. Customer expenses for engineering, construc- tion and connection to the fiber optic backbone are charged under EDF-2 rates. New fiber cus- tomers are enrolled under Dark Fiber Licensing Services Rate Schedule EDF-3. As CPI increases are implemented for the EDF-l rate, some customers may voluntarily choose to move from the EDF-l rate to the EDF-3 rate for cost saving purposes. The Fiber Optics rate will have a contrac- tual 3.2 percent CPI increase to the City’s Fiber Optics customers. $1.7 million of Capital Proj- ects are proposed in the Fiber Optics Fund for Fiscal Year 2017, including $1.25 million to rebuild portions of the dark fiber optics network. PUBLIC WORKS ENTERPRISE FUNDS Refuse The City’s Refuse Fund continues to work with Palo Alto’s residential and commercial communi- ties to achieve the City’s Zero Waste goals to reduce the amount of waste disposed in landfills by 90 percent or more by 2021, exceeding the State of California’s solid waste diversion require- ments of 50 percent now and 75 percent by 2020. The City’s Zero Waste programs have ENTERPRISE FUNDS OVERVIEW ENTERPRISE FUNDS OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET 97 increased the City’s current waste diversion rate to 80 percent. In addition, the City will com- plete the capping of the landfill during 2016 and will adjust some staffing requirements in Fiscal Year 2017 to provide adequate resources to ensure all post-closure safety and regulatory requirements are met. This includes increasing an hourly position to full-time (0.52 FTE change) to monitor methane gas related to the 109 gas wells at the landfill, service the 23 leach- ate pumps, 17 condensate submersible pumps and the newly prepared pump cleaning station at the landfill’s post-closure maintenance facility. As a result of the landfill closure, the Refuse Fund CIP is winding down as well. A programmed expense of ($0.2 million) for the Household Haz- ardous Waste Station Collection Facility is proposed for Fiscal Year 2017 and is the only remain- ing capital expenditures in the fund. Storm Drain The Storm Drainage Fee increase approved by property owners in April 2005 continues to pro- vide funding for high priority storm drain capital improvements. In Fiscal Year 2017, projects include an update to the Matadero Creek Storm Water Pump Station Improvements ($5.8 mil- lion), Channing Avenue/Lincoln Avenue Storm Drain Improvements ($0.1 million), and other Storm Drain System Replacement and Rehabilitation projects ($1.8 million). In the absence of another ballot measure approved by property owners, the storm drainage fee increase will expire after Fiscal Year 2017. Future funding for storm drainage capital improvements will require the reauthorization of the storm drainage fee by property owners. Staff is currently working with a city manager-appointed blue ribbon committee to generate a recommendation for storm drain funding beyond Fiscal Year 2017, including a potential ballot measure in fall 2016. If the funding measure is not successful, the Storm Drainage Fund will not have the funding to address its ongoing infrastructure needs. It is anticipated that without reauthorization of the enhanced fee, fund revenues will decrease from $6.6 million in proposed Fiscal Year 2017 Oper- ating Budget to $2.2 million. It is expected that all seven projects identified in the original ballot measure will be completed in Fiscal Year 2017. In accordance with the 2005 approved ballot measure, the storm drain fee will increase by 3.2% or the current Consumer Price Index for Fis- cal Year 2017. Wastewater Treatment Fiscal Year 2017 revenues in the Wastewater Treatment Fund are expected to increase by $24.9 million or 106 percent from Fiscal Year 2016 adopted levels. The majority of the increase, $21.3 million, is the result of expected State Revolving Fund Loans for programmed 2017-2021 capital improvement expenditures for the New Dewatering and Loadout Facility ($14.6 million), reim- bursement for the Plant Master Plan ($3.2 million) and the Fixed Film Reactor Rehabilitation Project ($1.9 million). As the Wastewater Treatment Plant upgrade—as outlined in the Long Range Facilities Plan—begins to ramp-up, additional State Revolving Fund Loans will be pur- sued. In addition, partner revenue increases are also included in the revenue forecast for the Wastewater Fund in Fiscal Year 2017. The increase in partner revenue includes adjustments for ongoing activities as well as the budget proposals outlined in the Wastewater Treatment Fund section of the Public Works Department. Major adjustments included the replacement of a Flat- bed Crane Truck ($320,000) as well as the addition of two full-time Senior Engineer positions ($446,000) to support the City’s nascent Recycled Water Program as well as providing increased project management support for the delivery of capital improvements. ENTERPRISE FUNDS OVERVIEW 98 ENTERPRISE FUNDS OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET Airport The City of Palo Alto assumed responsibility from Santa Clara County for operations of the air- port in August of 2014. Preparations for the transition began in Fiscal Year 2012, and have been funded by loans from the General Fund. In Fiscal Year 2017 the loan from the General Fund to the Airport Fund will total $704,150, up $400,000 from Fiscal Year 2016. Since 2011, including the 2017 amount, the General Fund has loaned a cumulative total of $2.7 million to the Airport Fund. Under the terms of the ground lease with the County, which is due to expire in 2017, operational management and control of the Airport was granted to the County, including the right to sublease to the Fixed Base Operators (FBOs) and other interested parties. While the City assumed operations of the Palo Alto Airport in Fiscal Year 2015, two years before the lease with the County would otherwise expire, the Airport does not have the ability to increase reve- nues from current levels to cover operating and non-grant funded capital expenses. Once the subleases with the Fixed Base Operators expire and revenues can be increased, it is anticipated that the Airport Fund will begin to pay back the General Fund for loans issued in prior years, and the reserve levels in the fund can be increased. The 2017-2021 CIP includes $2.6 million in capital expenditures, offset by $2.2 million in Federal Aviation Grants. Major projects include construction on the Airport Perimeter Fence ($1.8 million) and the Airport Apron Reconstruc- tion ($0.8 million). Enterprise Funds Summary Fund Summary ($000) Electric Fund Gas Fund Water Fund Refuse Fund Waste- water Treatment Fund Waste- water Collection Fund Storm Drainage Fund Airport Fund Fiber Optics Fund Total Revenues Charges for Services 230 20 10 38 0 10 90 0 0 398 Net Sales 131,990 34,606 39,346 28,107 26,848 17,947 6,606 533 4,887 290,869 Other Revenue 15,518 1,030 878 2,576 0 1,046 0 295 0 21,343 Return on Investments 2,508 526 775 179 199 267 129 2 366 4,951 Charges to Other Funds 289 208 155 276 52 30 0 0 0 1,010 From Other Agencies 0 0 577 0 21,341 0 0 2,178 0 24,096 Operating Transfers-In 2,679 0 244 13 0 0 0 704 0 3,640 Other Taxes and Fines 0 0 0 0 4 0 3 0 0 7 Total 153,214 36,390 41,985 31,189 48,444 19,300 6,827 3,712 5,253 346,314 Expenses Allocated Charges 9,137 4,318 4,161 1,774 5,221 2,814 1,176 299 578 29,478 ENTERPRISE FUNDS OVERVIEW ENTERPRISE FUNDS OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET 99 Contract Services 7,018 1,446 828 6,432 1,878 248 531 8 458 18,847 Debt Service 8,957 803 3,223 565 1,469 129 949 0 0 16,095 Supplies & Material 873 498 610 144 1,993 386 95 57 9 4,665 General Expense 3,931 780 568 113 479 122 179 30 14 6,216 Utility Purchase 86,441 12,337 18,900 16,253 0 9,855 0 0 0 143,786 Salary & Benefits 14,732 5,860 6,460 2,587 11,853 2,613 1,348 625 1,055 47,133 Operating Transfers-Out 255 484 324 57 320 286 12 0 104 1,842 Rents & Leases 5,440 710 2,877 2,547 0 390 46 12 75 12,097 Facilities & Equipment 44 20 2 3 8 3 8 15 0 103 Capital Improvement Program 21,631 6,306 9,597 241 29,171 4,827 7,705 2,570 1,700 83,748 Equity Transfer 12,035 6,726 0 0 0 0 0 0 0 18,761 Transfer to Infrastructure 0 0 0 19 0 0 0 0 0 19 Total 170,494 40,288 47,550 30,735 52,392 21,673 12,049 3,616 3,993 382,789 Enterprise Funds Summary Fund Summary ($000) Electric Fund Gas Fund Water Fund Refuse Fund Waste- water Treatment Fund Waste- water Collection Fund Storm Drainage Fund Airport Fund Fiber Optics Fund Total ENTERPRISE FUNDS OVERVIEW 100 ENTERPRISE FUNDS OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 3 Year Trend ‐Enterprise Funds Revenues by Fund ($Millions) FY 2015 Actuals FY 2016 Adopted FY 2017 Proposed 1 2 3 4 5 6 7 8 9 $346.3 Million/FY 2017 Proposed 1. Electric Fund ‐ $153.2/44.2% 2. Gas Fund ‐ $36.4/10.5% 3. Water Fund ‐ $42.0/12.1% 4. Refuse Fund ‐ $31.2./9.0% 5. Wastewater Treatment Fund ‐ $48.4/14.0% 6. Wastewater Collection Fund ‐ $19.3/5.6% 7. Storm Drainage Fund ‐ $6.8/2.0% 8. Airport Fund ‐ $3.7/1.1% 9. Fiber Optics Fund ‐ $5.3/1.5% ENTERPRISE FUNDS OVERVIEW ENTERPRISE FUNDS OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET 101 $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 3 Year Trend ‐Enterprise Funds Expense by Fund ($Millions) FY 2015 Actuals FY 2016 Adopted FY 2017 Proposed 1 2 3 4 5 6 7 89 $382.8 Million/FY 2017 Proposed 1. Electric Fund ‐ $170.5/44.5% 2. Gas Fund ‐ $40.3/10.5% 3. Water Fund ‐ $47.6/12.4% 4. Refuse Fund ‐ $30.7/8.0% 5. Wastewater Treatment Fund ‐ $52.4/13.7% 6. Wastewater Collection Fund ‐ $21.7/5.7% 7. Storm Drainage Fund ‐ $12.1/3.1% 8. Airport Fund ‐ $3.6/0.9% 9. Fiber Optics Fund ‐ $3.9/1.0% ENTERPRISE FUNDS OVERVIEW 102 ENTERPRISE FUNDS OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET Enterprise Fund Reserves Reserves ($000) FY 2016 Projected Ending Balance FY 2017 Changes FY 2017 Projected Ending Balance FY 2017 Reserve Guideline Range Electric Fund Supply Rate Stabilization 14,441 0 14,441 Supply Operations 39,900 (15,393)24,507 25,185 - 44,801 Hydro Stabilization 11,400 0 11,400 Electric Special Projects 51,838 0 51,838 Public Benefit 2,574 0 2,574 Central Valley O&M 0 0 0 Underground Loan 730 0 730 Capital Improvement Projects 4,043 (1,891)2,152 GASB 68 Pension Reserve (27,912)0 (27,912) Subtotal 97,014 (17,284)79,730 Gas Fund Rate Stabilization 6,805 (879)5,926 Operations 16,632 (2,478)14,154 5,982 - 11,964 Debt Service Reserve 0 0 0 Capital Improvement Projects 751 (541)210 GASB 68 Pension Reserve (12,643)0 (12,643) Subtotal 11,545 (3,898)7,647 Wastewater Collection Fund Rate Stabilization 4,292 (387)3,905 Operations 9,660 (1,986)7,674 4,027- 8,055 Capital Improvement Projects 0 0 0 GASB 68 Pension Reserve (7,078)0 (7,078) Subtotal 6,874 (2,373)4,501 Water Fund Rate Stabilization 6,579 (1,067)5,512 Operations 28,826 (416)28,410 6,902 - 13,803 Capital Improvement Projects 4,417 (4,082)335 ENTERPRISE FUNDS OVERVIEW ENTERPRISE FUNDS OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET 103 GASB 68 Pension Reserve (11,887)0 (11,887) Subtotal 27,935 (5,565)22,370 Refuse Fund Rate Stabilization 4,323 590 4,913 2,811 - 5,621 Landfill Corrective Action Reserve 721 0 721 Capital Improvement Projects 403 (135)268 GASB 68 Pension Reserve (4,993)0 (4,993) Subtotal 454 455 909 Storm Drainage Fund Rate Stabilization 8,633 (4,173)4,460 Capital Improvement Projects 5,729 (1,050)4,679 GASB 68 Pension Reserve (2,992)0 (2,992) Subtotal 11,370 (5,223)6,147 Wastewater Treatment Fund Emergency Plant Replacement 1,980 0 1,980 1,936 (max.) Rate Stabilization 12,887 12,045 24,932 3,481 - 6,962 Capital Improvement Projects 15,993 (15,993)0 GASB 68 Pension Reserve (17,529)0 (17,529) Subtotal 13,331 (3,948)9,383 Fiber Optics Fund Emergency Plant Replacement 1,000 0 1,000 1,000 (min.) Rate Stabilization 21,678 1,260 22,938 896 - 1,793 Capital Improvements Projects 0 0 0 GASB 68 Pension Reserve (1,687)0 (1,687) Subtotal 20,991 1,260 22,251 Enterprise Fund Reserves Reserves ($000) FY 2016 Projected Ending Balance FY 2017 Changes FY 2017 Projected Ending Balance FY 2017 Reserve Guideline Range ENTERPRISE FUNDS OVERVIEW 104 ENTERPRISE FUNDS OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET Airport Fund Fund Reserves (1,299)103 (1,196) Capital Improvement Projects 6 (6)0 GASB 68 Pension Reserve (397)0 (397) Subtotal (1,690)97 (1,593) TOTAL RESERVES 187,824 (36,479)151,345 Summary of Reserves Emergency Plant Replacement 2,980 0 2,980 Rate Stabilization 91,038 7,389 98,427 Operations 95,018 (20,273)74,745 Capital 31,342 (23,698)7,644 Electric Special Projects 51,838 0 51,838 Public Benefit 2,574 0 2,574 Central Valley O&M 0 0 0 Underground Loan 730 0 730 Landfill Corrective Action Reserve 721 0 721 Fund Reserves (1,299)103 (1,196) GASB 68 Pension Reserve (87,118)0 (87,118) TOTAL RESERVES 187,824 (36,479)151,345 Landfill Closure and Postclosure Care Liability 10,997 0 10,997 TOTAL RESERVES AND FULLY- FUNDED LIABILITY 198,821 (36,479)162,342 Enterprise Fund Reserves Reserves ($000) FY 2016 Projected Ending Balance FY 2017 Changes FY 2017 Projected Ending Balance FY 2017 Reserve Guideline Range ENTERPRISE FUNDS OVERVIEW ENTERPRISE FUNDS OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET 105 Residential Monthly Utility Cost Information Utility Adopted FY 2016 Bill Proposed FY 2017 Bill $ Difference % Difference Electric 42.76 49.75 6.99 16.3% Water (1) 82.51 87.24 4.73 5.7% Gas (2) 34.68 37.43 2.75 7.9% Wastewater 31.95 34.83 2.88 9.0% Refuse 43.75 47.69 3.94 9.0% Storm Drain (3) 12.63 13.03 0.40 3.1% User Tax 8.00 8.72 0.72 9.0% Total Monthly Bill 252.22 278.69 22.41 8.9% COMMENTS: 1) Water FY 2016 Adjusted Rate effective September 15, 2015 2) Gas FY 2016 Adjusted Rate based on monthly market rates 3) Storm Drain FY 2017 Proposed increase based on CPI index UTILITIES UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET 403 UTILITIESMission Statement The City of Palo Alto Utilities’ mission is to provide safe, reliable, environmentally sustainable and cost- effective services. Purpose The purpose of the City of Palo Alto Utili- ties is to provide high quality, cost-effec- tive electric, gas, fiber optics, water and wastewater collection services; promote effective energy and water effi- ciency programs; proactively manage infrastructure needs and replace deterio- rated or aging facilities with new technolo- gies to ensure safe and reliable delivery of services; and ensure the City’s utilities are in sound financial condition. UTILITIES 404 UTILITIES •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±(OHFWULF (QJLQHHULQJ0DQDJHU±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• CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET 405 Description Palo Alto is the only city in California that offers a full array of utility services to its citizens and businesses. Because of this, the City has a unique opportunity to partner with the Palo Alto community to enjoy the benefits and achievements of reliable, home-grown, and environmentally-focused utilities. Palo Alto has a tradition of over 100 years of successful public utility operations. It is a tradition that continues to provide the Palo Alto community with safe and reliable utilities service, local decision-making over policies, utility rate-making, environmental programs, and customized services. The City of Palo Alto Utilities (CPAU) continues to focus on customer service, infrastructure reliability, regulatory compliance and cost containment. Marketing of energy and water efficiency, increasing renewable energy supplies and promoting technological development for utility efficiency services continue to be focal points, especially in light of the City Council’s environmental sustainability priority and state mandated efficiency goals. ADMINISTRATION Utilities Administration is responsible for the overall management of the CPAU including com- munication, regulatory compliance, strategic planning, budget coordination, legislation and reg- ulatory policy analysis, and personnel and administrative support to the entire Department. CUSTOMER SUPPORT SERVICES This group annually bills $250 million for the City’s electric, natural gas, water, commercial fiber optic, wastewater collection (operated by CPAU), storm drain and refuse (operated by Public Works) services; operates the Customer Service Call Center with 75,000 annual customer inter- actions; reads 90,000 utility meters per month; and implements Credit and Collection policies. ENGINEERING Engineering is responsible for managing all phases of CPAU’s capital improvement projects including providing new or upgrading existing service to customers, and replacing and rehabili- tating the City’s electric, fiber, water, gas, and wastewater distribution systems. UTILITIES 406 UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET OPERATIONS Utilities Operations is responsible for the operations, maintenance, and emergency response for the electric, fiber, water, gas and wastewater distribution systems. RESOURCE MANAGEMENT Resource Management is responsible for: the long-term resource acquisition plan, including electricity, natural gas, and water; contract negotiations to acquire renewable resources; finan- cial planning; rate development; energy efficiency and water conservation programs; and man- agement of key accounts. Accomplishments Launched the PaloAltoGreen Gas Program, a new voluntary green program to allow customers to reduce or eliminate the greenhouse gas (GHG) emissions associated with their gas usage. Launched and achieved very high participation in Peninsula SunShares program, a local solar program that used the power of group buying to gain a discount in the cost of residential solar systems. Increased the City’s Renewable Portfolio Standard to 25% of retail energy sales supplied by eligible renewable energy resources by the end of FY 2016. Launched a heat pump water heater pilot program to determine the performance and customer satisfaction of this electrification technology. Coordinated successful citywide drought response efforts to achieve the state-mandated water use reductions including home water report, increased water efficiency rebates and launched Palo Alto 311 App for drought water waste reporting. Completed the Urban Water Management Plan, including the water shortage (drought) contingency plan. Launched the Home Efficiency Genie program which provides residents with free expert advice, discounted home assessments and resource for energy-efficiency projects. Launched a new customer engagement portal for residential customers to view and manage their energy and water usages. Collaborated with Public Works in completion of Environmental Impact Report (EIR) for the recycled water extension to the Stanford Research Park. Designated as a Reliable Public Power Provider (RP3) by the American Public Power Association for proficiency, sound business practices, and a utility-wide commitment to safe and reliable delivery of electricity, system improvement, energy efficiency, and workforce development. Won the Beacon Award – Silver Level for leading in implementing innovative energy efficiency and resource conservation programs, achieving notable greenhouse gas emissions reductions. UTILITIES UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET 407 Recognized in Green Power Leadership Club by the Environmental Protection Agency for demonstrating exemplary environmental stewardship. Placed in the Solar Electric Power Association’s (SEPA) Top Ten list of utilities that integrated the most solar into the grid. Ranked #3 on the Watts-per-Customer list for 2015. Awarded Tree Line USA Utility designation by the Arbor Day Foundation; in recognition of quality tree care, annual worker training, and tree planting and public education. Received the highest honor for Sustainability through the Acterra Business Environmental Awards. Awarded 30 Palo Alto buildings with the Mayor’s Green Business Leader Award – A Palo Alto City Council sponsored annual recognition event - for achieving an Energy Star rating of 75 or above in the Environmental Protection Agency’s Portfolio Manager. Initiatives Capital Improvement Programs: Continue replacement of aging infrastructure on Electric, Gas, Fiber, Wastewater Collection, and Water systems; develop a long range master infrastructure plan for Gas and Water utilities. Sustainability Programs: Develop two new programs to increase the penetration of local solar systems – a community solar program to allow those without good solar access to participate in local solar projects and a solar donation program to assist schools and non- profits with buying solar systems. Evaluate cost-effective programs to support electrification or fuel-switching from natural gas to electricity. Increased the City’s Renewable Portfolio Standard to 52.5% of retail energy sales supplied by eligible renewable energy resources by the end of FY 2017. When the Net Energy Metering (NEM) cap is reached (expected by the end of 2016), launch a NEM successor program to provide fair compensation for local solar generation. Evaluate all water supply alternatives with a focus on recycled water options including nonpotable use, indirect potable reuse, direct potable reuse, on-site water treatment, storm water, and groundwater. Expand efforts to compete for the $5M Georgetown University Energy Prize by reducing energy consumption through innovation, education and community participation. Workforce Development: Implement a Succession Development Program to promote talent development and inspire new leaders to ensure a continued level of quality service to the community. Collaborate with Development Services to streamline the permit application process and provide timely review and approval of project plan submittals. Technology: Implement an interactive voice response system to provide a 24/7 communication and payment option to customers. Issue a Request for Proposal for a new best-of-breed customer self-service web application that offers a complete suite of functionality for Utilities specific online processes, mobility, e- billing, and account management services. UTILITIES 408 UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET Communications Outreach: Increase customer feedback by providing a coordinated package of surveys and other market research methods to better evaluate the effectiveness of outreach communications. Key Performance Measures COMPARABLE AND COST-EFFECTIVE SERVICES Goal Ensure fiscally sound and cost-effective services Objective Reduce the cost of delivering services through best management practices. FY 2014 Actuals FY 2015 Actuals FY 2016 Adopted FY 2016 Estimated FY 2017 Proposed Palo Alto's average residential monthly utility bill above/(below) the median of neighboring cities 2.00%(7.00)%(6.00)%(6.00)%(6.80)% Description This compares the average residential monthly utility bill which includes electricity, gas, water, and wastewater services to the nearby communities (Menlo Park $278.17, Mountain View $211.84, Santa Clara $167.32, Hayward $213.24, Redwood City $264.45, Los Altos $206.42). Purpose This measure compares the City's average utility rates charged to residents to other comparable cities (e.g., similar size, similar commodity purchase options, similar geography). Status Our electric rates are significantly lower than PGE and slightly higher than Santa Clara. Natural gas rates are lower than surrounding communities due to PGE increasing its distribution rates for capital improvement and maintenance. Water rates are higher than many neighboring communities primarily because of differing system characteristics and levels of infrastructure investment, but also because some communities have different sources of supply. Palo Alto's pristine high quality supply comes from the SFPUC who is in the middle of a $4.6 billion improvement project, and Palo Alto is investing more than other areas in improving our local distribution pipelines and enhancing our emergency water supply system. For 2017, the monthly average for nearby communities is $223.57 and for Palo Alto the average is $209.25. The Fiscal Year 2017 Proposed Measure is to be 6.8% below the average for the comparable cities. UTILITIES UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET 409 Workload Measures CUSTOMER SATISFACTION Goal Provide excellent customer service Objective Maintain a high level of customer satisfaction, equal to or greater than 83 percent of Palo Alto citizens rating satisfaction of utility services as "Excellent" or "Good" in the National Citizen Survey. FY 2014 Actuals FY 2015 Actuals FY 2016 Adopted FY 2016 Estimated FY 2017 Proposed Percent rating services (electric, gas, wastewater, and water) "Good" or Excellent" 84.00%84.00%84.00%85.00%85.00% Description The National Citizen Survey (NCS) is a collaborative effort between National Research Center, Inc. (NRC) and the International City/County Management Association (ICMA). The NCS was developed by NRC to provide a statistically valid survey of opinions about community and services provided by local governments. The survey results may be used by staff, elected officials and other stakeholders for community planning and resource allocation, program improvement and policy-making. There are ten California communities participating in the survey. Purpose The best way to get feedback on whether our customers are satisfied with the nature, extent and delivery of services we provide them is to ask outright, using random-selection survey processes that include a good cross-section of our customer base. Status Results are statistically weighted to reflect the proper demographic composition of the entire community. A total of 721 completed surveys were obtained, providing an overall response rate of 25 percent. Typically, response rates obtained on citizen surveys range from 25 percent to 40 percent. From Fiscal Year 2012 to Fiscal Year 2015, Utilities has met its target of 83 percent. FY 2014 Actuals FY 2015 Actuals FY 2016 Adopted FY 2016 Estimated FY 2017 Proposed Total cost of Capital Improvement Program annually (Millions)$34.70 $27.00 $41.20 $30.30 $42.90 Budget Summary FY 2014 Actuals FY 2015 Actuals FY 2016 Adopted Budget FY 2017 Proposed Budget FY 2017 Change $ FY 2017 Change % Dollars by Fund Electric Fund - Operating 47,039,928 47,565,953 63,664,278 68,992,518 5,328,240 8.4% Electric Supply 81,796,644 91,302,629 89,799,836 101,501,369 11,701,536 13.0% Fiber Optics 1,975,736 1,999,420 3,785,219 3,993,103 207,885 5.5% Gas Fund - Operating 24,780,905 22,825,964 25,987,534 25,919,843 (67,690)(0.3)% Gas Supply 15,074,561 11,543,034 16,941,780 14,368,358 (2,573,422)(15.2)% Wastewater Collection - Operating 16,652,352 15,951,184 20,929,179 21,672,920 743,742 3.6% UTILITIES 410 UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET Water Fund - Operating 38,422,764 34,451,902 48,051,612 47,550,055 (501,556)(1.0)% Total 225,742,890 225,640,086 269,159,438 283,998,166 14,838,735 5.5% Revenues Charges for Services 369,021 529,927 270,000 270,000 ——% Charges to Other Funds 728,607 592,102 687,618 682,191 (5,427)(0.79)% From Other Agencies 553,014 534,328 576,632 576,632 ——% Net Sales 208,163,762 196,794,497 213,662,121 228,776,506 15,114,384 7.1% Operating Transfers-In 1,553,460 751,521 318,719 2,922,786 2,604,067 817.0% Other Revenue 10,925,693 11,909,526 9,955,000 18,468,731 8,513,730 85.5% Other Taxes and Fines —112,392 ————% Return on Investments 4,996,993 4,442,020 4,442,200 4,442,200 ——% Total Revenues 227,290,550 215,666,313 229,912,290 256,139,046 26,226,754 11.4% Positions by Fund Electric Fund - Operating 104.70 106.11 106.38 104.40 (1.98)(1.86)% Electric Supply 8.15 8.15 10.00 8.18 (1.82)(18.21)% Fiber Optics 7.24 7.24 6.76 6.82 0.06 0.89% Gas Fund - Operating 51.08 50.52 49.38 51.05 1.67 3.38% Gas Supply 2.28 2.28 2.77 1.65 (1.12)(40.55)% Utilities Admin - Operating 19.68 19.52 18.12 18.22 0.10 0.53% Wastewater Collection - Operating 30.22 29.57 29.74 29.17 (0.58)(1.93)% Water Fund - Operating 48.18 48.38 46.15 48.58 2.43 5.26% Total 271.53 271.77 269.31 268.06 (1.25)(0.47)% Budget Summary FY 2014 Actuals FY 2015 Actuals FY 2016 Adopted Budget FY 2017 Proposed Budget FY 2017 Change $ FY 2017 Change % UTILITIES UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET 411 ELECTRIC FUND Description On January 16, 1900, the City of Palo Alto began operation of its own electric system. A steam engine was the initial source of the City’s electricity, and was replaced by a diesel engine in 1914. As demand for electricity and the population continued to grow, the City of Palo Alto Utilities (CPAU) connected to the Pacific Gas and Electric distribution system and purchased power from additional sources. The integrity of the infrastructure required for achieving a high level of reliability and value for our customers is of paramount importance to the CPAU. The Electric Fund plans to enhance the customer service connection experience, increase energy efficiency participation, and increase the percentage of electric supply obtained from renewable energy supplies. The City has entered into a number of contracts with producers of wind, landfill gas, and solar energy for more than 15-year terms. Accomplishments Increased renewable supply sources secured through competitive solicitation. The City’s qualifying supply for the State’s Renewable Portfolio Standard was 24 percent in 2014, 28 percent in 2015, and is expected to grow to 30 percent in 2016 and 57 percent by 2017, well above required levels. Launched Peninsula SunShares with a consortium of other cities in the Bay Area, a new solar program under the Local Solar Plan. This program pooled the buying power of the community to offer homeowners discounted pricing on solar systems. Palo Alto had the largest participation of all participating cities to install new solar systems using group buying power. Launched a pilot program to install heat pump water heaters to learn about this electrification technology as to system performance and customer satisfaction. Expanded the Demand Response (peak demand reduction) Pilot Program to tie into commercial customer building energy management systems. UTILITIES 412 UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET Accepted new applications via the Program for Emerging Technology (PET), including Advanced Lighting, Electric Vehicle Charging, and Smart Grid projects. Completed work to provide new electric service to several new buildings and other major improvements in the Stanford Hospital/Lucille Packard Hospital area. Upgraded the Supervisory Control and Data Acquisition (SCADA) system use for real time monitoring and control of the utility’s electric, water, and gas systems. Complete installation of underground substructures necessary to convert the overhead utility lines to underground in Underground Utility District 47 (area bounded by Forest Ave/ Middlefield Road/Addison Avenue/Cowper Street). Completed substation security measures at two (2) electric substations, with only two remaining to be done. Met all Western Electricity Coordinating Council (WECC) and North American Electric Reliability Corporation (NERC) regulatory reporting requirements. Completed development of Electric Underground Construction Standards to guide Engineering and Operations staff on construction practices. Completed upgrade of the 60 kV protection equipment (Pilot Wire system) between Quarry Substation and Hopkins Substation. Completed upgrade of electric substation battery systems, used for backup and operation of protection equipment. Initiatives Develop new solar programs under the Local Solar Plan. These include a new community solar program and a solar donation program to be launched in 2016 or 2017. Develop new programs to encourage residential customer ’electrification”, or the substitution of natural gas using appliances for those using electricity. Implementation new residential and commercial efficiency programs. Continue to offer electric safety education presentations to school and community groups. Increase the City’s Renewable Portfolio Standard (RPS) to 52.2% by the end of FY 2017 as more long-term solar projects come on line. By the end of calendar year 2017, the City’s RPS is expected to increase to about 57%. Expand the Demand Response (peak demand reduction) Pilot Program to integrate with distributed energy resources. Evaluate storage alternatives and develop recommendations regarding goals for installation of storage systems. Expand efforts to compete for the $5 million Georgetown University Energy Prize by saving energy (gas and electricity) in 2015 and 2016. Launched new portal for residential customers to view their utilities usage for all commodities at one location. UTILITIES UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET 413 Continue discussions on building a second transmission line to provide electric service to Palo Alto. Replace deteriorated substation facilities and increase electric system capacity in the Colorado/Hopkins/Quarry load areas to meet projected load growth. Improve efficiency of Utility Electric System with installation of Power Factor correction capacitor banks. Add new facilities to meet the electric loads proposed by the VA Hospital for their site upgrades. Relocate/reconstruct city electric and communication facilities as necessary to facilitate the electrification of the CALTRAIN system. Complete General Order 95, 128 and 174 Inspection and Maintenance relating to electrical overhead, underground and substation facilities. Completion of District 24, rebuild underground facilities in the downtown area. Complete the pole replacement program for 2015/2016. Continue to plan and replace electric facilities before they reach the end of their useful and life to maintain high system reliability. Goals and Objectives GOAL 1 Provide safe and reliable delivery of electric services to our customers. Objectives: Develop a plan to complete a second electric transmission line source to improve service reliability. Provide exceptional system reliability. Reduce the backlog of infrastructure assets whose ages are beyond their useful lives. GOAL 2 Increase environmental sustainability and promote efficient use of resources. Objectives: Achieve a Renewable Portfolio Standard (RPS) of 33 percent by 2015. Achieve the ten-year goal for electric energy efficiency of 4.8 percent of the electric load by 2023. Measure actual electric energy efficiency achievement. Increase the penetration of local solar installations so that 4% of the City’s energy use is generated by local solar systems by 2023. UTILITIES 414 UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET Key Performance Measures ENVIRONMENTAL SUSTAINABILITY Goal Support environmental sustainability and promote efficient use of resources Objective Achieve Renewable Portfolio Standard (RPS) of at least 52% percent by 2017. FY 2014 Actuals FY 2015 Actuals FY 2016 Adopted FY 2016 Estimated FY 2017 Proposed Percent of retail electric sales volume provided by renewable supply resources under long-term PPAs 49.80%25.70%35.10%31.00%52.30% Description This measures the fraction of the City's retail electric sales volume that is provided by renewable supply resources that are under long-term agreement. Purpose The California Renewable Energy Resources Act (SBX 1 2) requires that utilities supply 33 percent of their total retail electric sales volume with eligible renewable energy resources by 2020. The City's internal target, established by the Long- term Electric Acquisition Plan (LEAP), is to meet at least 33 percent by 2015. In March 2013, the City also adopted a 100 percent carbon neutral electric supply portfolio target. This measure also supports the City to achieve a 100 percent carbon neutral electric supply portfolio. Status The City established a target by 2015 to have a 33% renewable portfolio. However, the City was unable to reach this 2015 target and plans to meet or exceed the 2017 target of 52.3%. This target will be reached through the execution of additional long-term renewable energy supply agreements, and through the procurement of short-term renewable energy certificates (RECs). The City's goal exceeds California's RPS mandate of 33% by 2020 (California Renewable Energy Resources Act SBX1-2). The City currently meets its 100% carbon neutral electric supply portfolio target since 2013, primarily through long- term renewable energy supply agreements, supplemented by short-term REC purchases. SYSTEM RELIABILITY Goal Provide safe and efficient delivery of electric services to our customers. Objective Provide exceptional system reliability. FY 2014 Actuals FY 2015 Actuals FY 2016 Adopted FY 2016 Estimated FY 2017 Proposed Average duration of customer outages in minutes as reported using industry guidelines 16 47 60 32 29 Description System Average Interruptible Duration Index (SAIDI) is a measure of outage duration. It measures the number of minutes over the year that the average customer is without power. Purpose Reliability indices were introduced in order to keep track of utility performance. This information will help Utilities prioritize capital and operating spending so that reliability can be improved without increasing costs. Status Despite continuous lineperson and system operator vacancies, The Electric Utility continues to meet the goal of average customer outages being 60 minutes or less in duration for the average customer by minimizing the number of outages and customers directly affected. This can be attributed to the Department's ongoing efforts for infrastructure replacement, outage isolation improvements, system maintenance, and improved response times. UTILITIES UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET 415 Workload Measures ENVIRONMENTAL SUSTAINABILITY - SOLAR Goal Support environmental sustainability and promote efficient use of resources. Objective Increase the penetration of local solar installations. FY 2014 Actuals FY 2015 Actuals FY 2016 Adopted FY 2016 Estimated FY 2017 Proposed Cumulative installed capacity of photovoltaic (PV) systems measured in megawatts (MW) 5 6 8 8 9 Description This measures the percentage of the cumulatively installed capacity of PV systems in Palo Alto, measured in MW . It includes PV systems installed prior to the passage of Senate Bill 1 (SB1), which enacts the Million Solar Roofs Initiative and expands upon the current California Solar Initiative (CSI) and the Energy Commission's New Solar Homes Partnership (NSHP). Purpose The California Million Solar Roofs Bill (SB1) requires an expanded funding commitment by all California electric utilities, with a Statewide goal to add 3,000 MW of new PV systems over ten years. In addition to complying with state law, PV installations will benefit the environment and expand flexibility to Palo Alto's electric generation portfolio. This measure also supports the City to achieve a 100 percent carbon neutral electric supply portfolio. This measure also supports The City's goal to meet 4% of The City's electricity needs by 2023. Status Solar installations continue to grow with lower installation prices. Rebate funds for residential solar have been fully reserved, and we expect the commercial funds to be reserved well before the 2017 goal set by SB1. Changes to The State net metering regulations may impact electric utility changes to PV customers. FY 2014 Actuals FY 2015 Actuals FY 2016 Adopted FY 2016 Estimated FY 2017 Proposed Number of Customer Accounts (Electric)29,338 29,299 29,299 29,299 29,299 Number of momentary outages 4 1 1 1 0 Percent of residents surveyed who rate the quality of the Electric Utility as "Good" or "Excellent" 73 83 87 87 88 Total Number of Outages 20 19 20 7 20 Budget Summary FY 2014 Actuals FY 2015 Actuals FY 2016 Adopted Budget FY 2017 Proposed Budget FY 2017 Change $ FY 2017 Change % Dollars by Division CIP Electric Fund 12,139,969 11,727,427 16,386,639 21,630,736 5,244,097 32.0% Electric Administration 19,459,675 20,476,339 24,762,554 25,684,788 922,234 3.7% Electric Customer Service 2,032,231 1,548,851 2,348,349 2,226,652 (121,697)(5.2)% Electric Demand Side Management 3,187,875 3,559,586 7,492,131 6,817,126 (675,005)(9.0)% UTILITIES 416 UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET Electric Engineering (Operating)1,280,044 1,405,600 1,929,843 1,841,173 (88,670)(4.6)% Electric Operations and Maintenance 9,488,627 10,716,881 12,216,961 13,735,487 1,518,526 12.4% Electric Resource Management 81,248,152 89,457,201 88,327,636 98,557,925 10,230,288 11.6% Total 128,836,573 138,891,884 153,464,117 170,493,890 17,029,773 11.1% Dollars by Category Salary & Benefits Healthcare 1,722,630 1,858,579 1,577,720 1,504,340 (73,380)(4.7)% Other Benefits 297,786 294,915 239,147 185,936 (53,211)(22.3)% Overtime 406,488 519,414 442,173 442,173 ——% Pension 2,213,560 1,851,677 2,240,589 2,270,121 29,532 1.3% Retiree Medical 656,811 1,083,423 1,159,756 1,537,264 377,508 32.6% Salary 7,051,249 7,873,119 8,708,280 8,634,552 (73,728)(0.8)% Workers' Compensation 282,929 241,886 239,250 157,312 (81,938)(34.2)% Total Salary & Benefits 12,631,452 13,723,014 14,606,916 14,731,699 124,783 0.9% Allocated Charges 8,467,472 8,247,863 9,090,404 9,137,388 46,984 0.5% Capital Improvement Program 7,900,770 7,477,068 16,339,130 21,630,736 5,291,606 32.4% Contract Services 2,684,756 3,083,615 5,056,414 7,017,914 1,961,500 38.8% Debt Service 8,923,951 8,940,084 9,142,923 8,957,186 (185,737)(2.0)% Equity Transfer 11,203,000 11,412,000 11,659,000 12,035,000 376,000 3.2% Facilities & Equipment 3,387 —44,475 44,475 ——% General Expense 3,348,605 2,153,071 4,908,817 3,930,817 (978,001)(19.9)% Operating Transfers-Out 122,855 661,061 119,415 255,269 135,854 113.8% Rents & Leases 4,038,332 4,136,105 5,301,728 5,439,572 137,844 2.6% Supplies & Material 592,329 677,677 873,097 873,097 ——% Transfer to Infrastructure 133,687 —————% Utility Purchase 68,785,977 78,380,327 76,321,794 86,440,735 10,118,944 13.3% Total Dollars by Expense Category 128,836,572 138,891,886 153,464,111 170,493,889 17,029,778 11.1% Revenues Charges for Services 243,512 421,977 230,000 230,000 ——% Charges to Other Funds 390,991 305,151 300,011 289,096 (10,915)(3.6)% Budget Summary FY 2014 Actuals FY 2015 Actuals FY 2016 Adopted Budget FY 2017 Proposed Budget FY 2017 Change $ FY 2017 Change % UTILITIES UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET 417 From Other Agencies 4,000 —————% Net Sales 113,054,403 112,001,079 116,654,061 131,990,403 15,336,342 13.1% Operating Transfers-In 1,088,463 547,139 135,386 2,678,768 2,543,382 1,878.6% Other Revenue 8,474,522 7,865,325 7,778,000 15,514,731 7,736,731 99.5% Other Taxes and Fines —112,392 ————% Return on Investments 2,831,222 2,414,464 2,507,700 2,507,700 ——% Total Revenues 126,087,109 123,667,528 127,605,158 153,210,698 25,605,530 20.1% Positions by Division CIP Electric Fund 32.81 32.57 32.14 32.14 ——% Electric Customer Service 13.53 13.63 13.54 12.07 (1.46)(10.81)% Electric Demand Side Management 6.57 6.57 6.61 6.85 0.23 3.54% Electric Engineering (Operating)4.50 4.50 5.73 4.98 (0.75)(13.09)% Electric Operations and Maintenance 47.29 48.84 48.36 48.36 (0.00)(0.00)% Electric Resource Management 8.15 8.15 10.00 8.18 (1.82)(18.21)% Total 112.85 114.26 116.38 112.58 (3.80)(3.27)% Staffing Job Classification FY 2014 Actuals FY 2015 Actuals FY 2016 Adopted Budget FY 2017 Proposed Budget FY 2017 Change $ FY 2017 Salary Account Specialist 0.24 0.24 0.26 0.33 0.07 20,635 Administrative Associate I 1.00 ————— Administrative Associate II 3.10 4.10 4.10 4.00 (0.10)265,220 Assistant Director Administrative Services 0.15 0.15 0.15 0.20 0.05 38,837 Assistant Director Utilities Customer Support Services 0.40 0.40 0.40 0.40 —66,942 Assistant Director Utilities Engineering 0.40 0.40 0.40 0.40 —76,053 Assistant Director Utilities Operations 0.60 0.60 0.60 0.60 —114,079 Assistant Director Utilities/ Resource Management 0.50 0.50 0.50 0.50 —105,622 Business Analyst 2.13 2.13 2.89 2.04 (0.85)255,967 Budget Summary FY 2014 Actuals FY 2015 Actuals FY 2016 Adopted Budget FY 2017 Proposed Budget FY 2017 Change $ FY 2017 Change % UTILITIES 418 UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET Contracts Administrator 0.10 0.10 0.10 0.10 —10,924 Coordinator Utilities Projects 1.25 1.80 1.80 1.55 (0.25)126,796 Coordinator Utilities Safety & Security 0.55 ————— Customer Service Representative 1.62 1.62 1.86 1.62 (0.24)109,302 Customer Service Specialist 0.66 0.66 0.62 0.66 0.04 48,968 Customer Service Specialist-Lead 0.58 0.58 0.62 0.58 (0.04)46,024 Electric Project Engineer 1.95 1.95 1.95 1.95 —229,101 Electric Underground Inspector 2.00 2.00 2.00 2.00 —177,022 Electric Underground Inspector- Lead 1.00 1.00 1.00 1.00 —94,853 Electrical Equipment Technician ———1.00 1.00 78,623 Electrician Assistant I 4.00 4.00 4.00 3.00 (1.00)181,241 Engineering Manager - Electric 0.55 0.55 0.55 0.55 —89,758 Engineering Technician III 2.40 2.40 2.40 2.40 —186,230 Heavy Equipment Operator 2.00 2.00 2.00 2.00 —166,042 Inspector, Field Services ———0.25 0.25 22,592 Lineperson/Cable Specialist 11.00 11.00 11.00 11.00 —1,186,085 Lineperson/Cable Specialist-Lead 4.00 4.00 4.00 4.00 —480,336 Manager Customer Service ——0.33 0.33 —42,721 Manager Customer Service and Meter Reading 0.33 0.33 ———— Manager Electric Operations 1.00 1.00 1.00 1.00 —157,871 Manager Treasury, Debt & Investments ———0.30 0.30 39,879 Manager Utilities Compliance 0.15 0.15 0.15 0.15 —24,233 Manager Utilities Credit & Collection 0.15 0.15 0.15 0.15 —19,609 Manager Utilities Marketing Services 0.40 0.40 0.40 —(0.40)— Manager Utilities Program Services ———0.40 0.40 48,804 Marketing Engineer 1.00 1.00 1.00 —(1.00)— Meter Reader 1.99 1.99 2.41 1.99 (0.42)115,638 Meter Reader-Lead 0.33 0.33 0.40 0.33 (0.07)22,324 Metering Technician 2.00 3.00 3.00 3.00 —317,358 Staffing Job Classification FY 2014 Actuals FY 2015 Actuals FY 2016 Adopted Budget FY 2017 Proposed Budget FY 2017 Change $ FY 2017 Salary UTILITIES UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET 419 Metering Technician-Lead 1.00 1.00 1.00 1.00 —113,197 Offset Equipment Operator 0.48 0.48 0.48 0.48 —28,972 Overhead Underground Troubleman 2.00 2.00 2.00 2.00 —235,768 Planner 0.15 0.15 ———— Power Engineer 2.30 2.30 2.30 2.30 —255,114 Principal Business Analyst ——0.34 0.34 —47,672 Principal Management Analyst —0.34 ———— Project Manager 0.75 0.75 0.75 0.75 —80,527 Resource Planner 2.65 2.65 3.95 3.65 (0.30)442,019 SCADA Technologist 1.00 1.00 1.00 1.00 —126,500 Senior Business Analyst 0.68 0.68 0.68 0.68 —86,058 Senior Electrical Engineer 3.95 3.95 3.95 3.95 —557,576 Senior Management Analyst 0.45 0.45 0.45 0.10 (0.35)12,317 Senior Resource Planner 3.69 3.69 4.08 3.06 (1.02)445,645 Senior Technologist 0.29 0.29 ———— Senior Utilities Field Service Representative 0.10 0.10 0.10 0.10 —9,629 Street Light, Traffic Signal & Fiber Technician 2.00 2.00 3.00 3.00 —303,564 Street Light, Traffic Signal & Fiber Technician Apprentice 1.00 1.00 ———— Street Light, Traffic Signal & Fiber- Lead 1.00 1.00 1.00 1.00 —108,271 Substation Electrician 5.50 5.50 5.50 5.50 —578,827 Substation Electrician-Lead 2.00 2.00 2.00 2.00 —236,252 Supervising Electric Project Engineer 1.00 1.00 1.00 1.00 —137,070 Tree Maintenance Person 1.00 1.00 1.00 1.00 —75,563 Utilities Compliance Technician 2.00 2.00 2.00 2.00 —179,528 Utilities Compliance Technician- Lead 1.00 1.00 1.00 1.00 —115,839 Utilities Credit/Collection Specialist 2.00 2.00 2.00 2.00 —153,678 Utilities Engineer Estimator 3.25 3.25 3.25 3.25 —340,952 Utilities Field Services Representative 0.50 0.50 0.50 0.50 —43,314 Staffing Job Classification FY 2014 Actuals FY 2015 Actuals FY 2016 Adopted Budget FY 2017 Proposed Budget FY 2017 Change $ FY 2017 Salary UTILITIES 420 UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET Utilities Key Account Representative 1.90 1.90 1.90 1.60 (0.30)166,625 Utilities Locator 1.95 1.95 1.95 1.95 —147,858 Utilities Marketing Program Administrator 2.55 2.55 2.25 1.90 (0.35)172,880 Utilities Safety Officer —0.55 0.55 0.55 —60,688 Utilities Supervisor 5.00 5.00 5.00 5.00 —671,629 Utilities System Operator 5.00 5.00 5.00 5.00 —551,334 Sub-total: Full-Time Equivalent Positions 107.67 109.56 112.02 107.44 (4.58)11,450,554 Temporary/Hourly 5.18 4.70 4.37 5.15 0.78 663,135 Total Positions 112.85 114.26 116.38 112.58 (3.80)12,113,689 Budget Reconciliation Positions Expenditures Revenues Net Electric Fund Prior Year Budget 116.38 153,464,114 127,605,158 25,858,956 Base Adjustments Adjustments to Costs of Ongoing Activities Salaries and Benefits Adjustments (3.80) 235,058 — 235,058 Capital Improvement Program Adjustments — 5,291,606 — 5,291,606 Electric Commodity Purchases Expenditure Adjustment — 10,118,944 — 10,118,944 Overhead Construction Services Contract Expenditure Adjustment — 1,000,000 — 1,000,000 Rents & Leases Expenditure Adjustment (COLA) — 137,844 — 137,844 Equity Transfer to General Fund Adjustment — 376,000 — 376,000 Debt Service Expenditure Adjustment — (185,737) — (185,737) Transfer In from Tech Fund for Elwell Rent Share Revenue Adjustment — — 4,590 (4,590) Transfer In from Water and Gas Fund for Capital Project EL-11014 Smart Grid Technology Installation Revenue Adjustment — — 272,670 (272,670) Palo Alto Green Gas Program Sales Revenue Adjustment — — (10,915) 10,915 Staffing Job Classification FY 2014 Actuals FY 2015 Actuals FY 2016 Adopted Budget FY 2017 Proposed Budget FY 2017 Change $ FY 2017 Salary UTILITIES UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET 421 Central Valley Project (CVP) O&M Loan Repayment Revenue Adjustment — — 646,731 — Electric Connection Fee Charges (various Capital Improvement Projects) Revenue Adjustment — — 7,090,000 (7,090,000) Electric Sales Revenue Adjustment (11% rate increase & changes in consumption levels)— — 14,736,342 (14,736,342) Fiber Optic License Fee Allocated Charges Adjustment — 10,307 — 10,307 General Fund Cost Allocation Plan Charges Adjustment — (322,701) — (322,701) General Liability Insurance Allocated Charges Adjustment — (131,033) — (131,033) Print & Mail Allocated Charges Adjustment — (81,491) — (81,491) Utilities Admin Allocated Charges Adjustment — 251,600 — 251,600 Utility and Public Works Charges to City Allocated Charges Adjustment — 15,757 — 15,757 Vehicle Fund Allocated Charges Adjustment — 304,545 — 304,545 Adjustments to Costs of Ongoing Activities (3.80)17,020,699 22,739,418 (5,071,988) Total FY 2017 Base Budget 112.58 170,484,813 150,344,576 20,786,968 Budget Proposals 1 Transfer from the General Fund: Traffic Signal and Streetlight Electric Costs — — 2,266,122 2,266,122 2 State & Local Solar Program Funding Adjustment — (638,500) — 638,500 3 Reclassification: 1.0 FTE Electric Assistant I to 1.0 FTE Electric Equipment Technician — 10,150 — (10,150) 4 Reclassification: 1.0 FTE Marketing Engineer to 1.0 FTE Resource Planner (Two 0.5 FTE)— 14,103 — (14,103) 5 Title Change: Manager, Utilities Marketing Services to Manager, Utility Program Services —0—0 6 Low Carbon Fuel Standard (LCFS) Program — 600,000 600,000 — 7 Reclassification of 1.0 FTE Senior Management Analyst to 1.0 FTE Utilities Strategic Business Manager — 26,119 — (26,119) 8 Reclassification of 1.0 FTE Coordinator, Utility Projects to 1.0 FTE Inspector, Field Services — (2,796) — 2,796 Budget Changes —9,076 2,866,122 2,857,046 Total FY 2017 Proposed Budget 112.58 170,493,889 153,210,698 23,644,014 Budget Reconciliation Positions Expenditures Revenues Net Electric Fund UTILITIES 422 UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET Budget Adjustments Budget Adjustments Positions Expenditures Revenues Net Electric Fund 1 Transfer from the General Fund: Traffic Signal and Streetlight Electric Costs 0.00 0 2,266,122 2,266,122 This action recognizes a transfer from the General Fund to reimburse the Electric Fund for electricity costs associated with City street light and traffic signal costs. As part of the Electric Fund Cost of Services Analysis (COSA), these costs were identified as more appropriately aligned with the General Fund. This transfer will be evaluated over the next year and the long term implications on staffing and workload impacts will be revisited in the development of the Fiscal Year 2018 budget process. (Ongoing: $2,266,122) Performance Results No impacts to current service levels are anticipated as a result of this funding realignment. 2 State & Local Solar Program Funding Adjustment 0.00 (638,500)0 638,500 This action reduces the expenditures in the photo voltaic (PV) rebate program mandated by California Million Solar Roofs Bill (SB1, August 2006) for Fiscal Year 2017 based on the number of rebate applications remaining. City committed to funding $13 million in PV rebates over 10 years. Based upon the applications received, all $13 million has been reserved, and the City is at the stage of waiting for customers to complete their projects before paying out the rebate. As the state mandated solar program draws to a close, the City will be exploring and proposing new local solar programs to encourage alternative and renewable energy sources. (Ongoing Savings: $638,500) Performance Results The number of residential and commercial businesses in Palo Alto generating solar energy will increase in Fiscal Year 2017 as the rebate program funded projects are completed. Staff currently working on the state mandated program will be absorbed into new local solar initiatives as they are developed. 3 Reclassification: 1.0 FTE Electric Assistant I to 1.0 FTE Electric Equipment Technician 0.00 10,150 0 (10,150) This action reclassifies 1.0 FTE Electric Assistant I to 1.0 FTE Electric Equipment Technician. The creation of the Electric Equipment Technician classification will provide the Electric Operations personnel with additional career growth and help the division to retain trained and experienced personnel. The addition of this new classification will serve as an optional career path and bridges the gap between the Electric Assistant I position and the Substation Apprentice position. (Ongoing: $10,150) Performance Results UTILITIES UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET 423 The position reclassifications reflect the current operational needs of the Electric Ops section. 4 Reclassification: 1.0 FTE Marketing Engineer to 1.0 FTE Resource Planner (Two 0.5 FTE)0.00 14,103 0 (14,103) This action reclassifies 1.0 FTE Marketing Engineer position to 1.0 FTE Resource Planner position (that will be filled by two 0.5 FTE) to more accurately reflect how the position have been hired are functioning in practice. (Ongoing $14,103) Performance Results No impacts to current service levels are anticipated as a result of this title change. 5 Title Change: Manager, Utilities Marketing Services to Manager, Utility Program Services 0.00 0 0 0 This action amends the Table of Organization by retitling the Manager, Utilities Marketing Services to Manager, Utility Program Services in the Utilities Customer Service Support section to more accurately reflect the duties of the position. Utility Program Services is where customers can find answers regarding energy efficiency programs, green power programs, water efficiency programs, renewable energy programs, water and energy workshops, key account program and connecting to the CIty's commercial dark fiber backbone. (Ongoing: $0) Performance Results No impacts to current service levels are anticipated as a result of this title change. 6 Low Carbon Fuel Standard (LCFS) Program 0.00 600,000 600,000 0 This action adds revenue from the estimated sales of Low Carbon Fuel Standard (LCFS) credits, offset by expenditures promoting Electric Vehicle adoption and related EV programs. The California Air Resources Board (CARB) developed the LCFS program to reduce the carbon intensity of transportation fuels used in California by 10% by 2020. Electric utilities that provide electricity to charge electric vehicles (EVs) are eligible to receive LCFS credits based on the number of EVs in their service territory. The City Council approved a Master Agreement to sell LCFS credits on March 14, 2016. Performance Results The establishment of this program will promote Electric Vehicle use, contributing to the reduction of carbon emissions. 7 Reclassification of 1.0 FTE Senior Management Analyst to 1.0 FTE Utilities Strategic Business Manager 0.00 26,119 0 (26,119) This action amends the Table of Organization by reclassifying 1.0 Senior Management Analyst position to 1.0 FTE Utilities Strategic Business Manager position to more accurately reflect the duties of the position. Adopting this reclassification will make permananent the functions of a trial over-stregnth position created last year to serve in this capacity. This position guides improvements to internal processes, customer focused services, workforce development, and financial stability. This position will oversee Utilities strategic plan, operating and CIP budgets, technology roadmap, workforce development and succession program, and fiber policy.†(Ongoing: $26,119) Performance Results Budget Adjustments Budget Adjustments Positions Expenditures Revenues Net Electric Fund UTILITIES 424 UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET No impacts to current service levels are anticipated as a result of this title change. 8 Reclassification of 1.0 FTE Coordinator, Utility Projects to 1.0 FTE Inspector, Field Services 0.00 (2,796)0 2,796 This action amends the Table of Organization by reclassifying 1.0 Coordinator Utility Projects to 1.0 Inspector Field Services to more accurately reflect the operational needs of the department. In FY 2013, Utilities reclassed one of three Inspector, Field Services positions to Supervisor, Inspection Services who would supervise, oversee, and ensure that all of the inspector's geospatial and pipe/fitting attribute data is consistently accurate, both from staff and contract inspectors and outside developers in compliance with Utilities Standards. As a result of the reclass, there are only two inspectors assigned to WGW Engineering to review project plans and verify contract work are in compliance with specifications. Based on the volume of plan reviews and inspections, Utilities is requesting to add back a third field service inspector. The supervision of the inspectors and oversight of the geospatial database will be reassigned to a Senior Engineer. (Ongoing Savings: $2,796) Performance Results The position reclassifications reflect the current operational needs of the Electric/Water/Gas/Wastewater inspection services group. Budget Adjustments Budget Adjustments Positions Expenditures Revenues Net Electric Fund UTILITIES UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET 425 FIBER OPTICS FUND Description In 1996, the City built a dark fiber ring around Palo Alto that would be capable of supporting multiple network developers and service providers with significant growth potential. The fiber backbone network was routed to pass by and provide access to key City facilities and the Palo Alto business community, including research centers and commercial properties. Dark fiber optics service consists of providing the fiber optics cabling, splice points, service connections, and other infrastructure providing high-capacity bandwidth needed to transport large quantities of data. It does not include the transmitters, receivers, or data itself, which are owned and operated by each customer. Accomplishments Completed the Fiber-to-the-Premises Master Plan and the Wireless Network Plan. Completed the physical audit of the dark fiber optic network to enable system improvements, increase capacity for customer connections, and respond more effectively to outages. Upgraded inter-departmental Dark Fiber databases (Engineering, Operations and Business Development) to fully leverage the physical audit data. Continuing discussions with Google Fiber to build a fiber optic network. Issued Request for Proposal to secure Engineering and Construction Inspection services to meet the needs of the potential Google Fiber project. Initiatives Continue the rebuild of City’s dark fiber ring to improve network performance and enable future expansion opportunities for licensing dark fiber to commercial firms and anchor institutions. UTILITIES 426 UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET Finalize a Master Encroachment Agreement, Master License Agreement for utility pole attachments and a Cost Recovery Agreement with Google Fiber to build a citywide fiber optic network in Palo Alto. Negotiate with Google Fiber to execute a ‘co-build” agreement for a City-owned fiber network built in parallel with Google Fiber’s network. Issue a Request for Information to determine interest in a public-private partnership for deployment of citywide Fiber-to-the-Premises. Issue a Request for Proposal to build Wi-Fi and wireless communication facilities for unserved City facilities, Public Safety and Utilities, in addition to offering Wi-Fi connectivity in high-traffic commercial zones such as California Avenue and University Avenue. Develop a ‘Dig Once” policy or ordinance to support the expansion of broadband in Palo Alto and to preserve City infrastructure. Complete the conversion of the dark fiber mapping system to AutoCAD AME. Goals and Objectives GOAL 1 Increase the value of fiber utility services to customers. Objectives: Provide high-quality and competitively-priced fiber optic utility services to City departments and commercial customers in the City of Palo Alto. Manage costs and add new dark fiber license agreements with commercial customers. GOAL 2 Improve capacity and reliability of the Dark Fiber system. Objectives: Ensure sufficient fiber optic cables are available to meet future customer needs. Make system enhancements to prevent damage from outside sources and improve reliability. UTILITIES UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET 427 Key Performance Measures Workload Measures CUSTOMER SATISFACTION Goal Provide excellent customer service. Objective Provide high-quality and competitively-priced fiber optic utility services to City Departments and commercial customers in the City of Palo Alto. FY 2014 Actuals FY 2015 Actuals FY 2016 Adopted FY 2016 Estimated FY 2017 Proposed Number of commercial fiber connections completed 230 228 240 240 241 Description This measure shows the growth of the Fiber Enterprise based on customers and connections. Some customers have multiple fiber connections at various locations. Purpose The purpose of this measure is to add value to companies doing business in Palo Alto by providing a cost-effective, world class telecommunications system. The goal is to build out and fully leverage the fiber network to add value to the business and other communities as needed. Status The Fiber Enterprise continues to build out its network to provide more service options to our ever-expanding customer base. For example, a network was completed for the Palo Alto Unified School District (PAUSD) that will not only serve the schools, but provide fiber access to previously unserved areas. FY 2014 Actuals FY 2015 Actuals FY 2016 Adopted FY 2016 Estimated FY 2017 Proposed Number of Wholesale re-sellers 9 11 10 14 14 Number of Connections serving individual users 75 74 220 220 229 Budget Summary FY 2014 Actuals FY 2015 Actuals FY 2016 Adopted Budget FY 2017 Proposed Budget FY 2017 Change $ FY 2017 Change % Dollars by Division CIP Fiber Optics Fund 481,898 412,667 1,763,821 1,700,000 (63,821)(3.6)% Fiber Optics Administration 186,332 62,472 800,178 755,942 (44,236)(5.5)% Fiber Optics Customer Service 398,448 420,523 706,970 1,017,098 310,129 43.9% Fiber Optics Operations and Maintenance 909,058 1,103,758 514,250 520,063 5,813 1.1% Total 1,975,736 1,999,420 3,785,219 3,993,103 207,885 5.5% UTILITIES 428 UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET Dollars by Category Salary & Benefits Healthcare 121,877 140,208 135,983 139,646 3,663 2.7% Other Benefits 16,204 20,634 18,919 16,310 (2,609)(13.8)% Overtime 32,542 28,891 7,854 7,854 ——% Pension 134,907 111,875 168,418 186,904 18,486 11.0% Salary 611,858 523,811 680,717 694,424 13,707 2.0% Workers' Compensation ———10,082 10,082 —% Total Salary & Benefits 917,387 825,418 1,011,891 1,055,220 43,329 4.3% Allocated Charges 394,179 693,503 633,044 577,974 (55,070)(8.7)% Capital Improvement Program 393,306 309,543 1,763,205 1,700,000 (63,205)(3.6)% Contract Services 75,418 99,791 180,300 458,300 278,000 154.2% General Expense 4,680 2,999 12,000 14,000 2,000 16.7% Operating Transfers-Out 941 9,441 103,091 104,032 941 0.9% Rents & Leases 52,468 53,692 72,688 74,577 1,889 2.6% Supplies & Material 3,671 5,033 9,000 9,000 ——% Transfer to Infrastructure 133,687 —————% Total Dollars by Expense Category 1,975,736 1,999,420 3,785,219 3,993,103 207,885 5.5% Revenues Charges for Services 4,463 20,026 ————% Net Sales 4,476,533 4,606,321 4,475,388 4,886,920 411,532 9.2% Operating Transfers-In 204 169 ————% Other Revenue 57 2,752 ————% Return on Investments 380,404 411,870 366,400 366,400 ——% Total Revenues 4,861,661 5,041,137 4,841,788 5,253,320 411,532 8.5% Positions by Division CIP Fiber Optics Fund 0.79 0.79 0.79 0.79 ——% Fiber Optics Customer Service 3.32 3.32 2.84 2.90 0.06 2.12% Fiber Optics Operations and Maintenance 3.13 3.13 3.13 3.13 ——% Total 7.24 7.24 6.76 6.82 0.06 0.89% Budget Summary FY 2014 Actuals FY 2015 Actuals FY 2016 Adopted Budget FY 2017 Proposed Budget FY 2017 Change $ FY 2017 Change % UTILITIES UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET 429 Staffing Job Classification FY 2014 Actuals FY 2015 Actuals FY 2016 Adopted Budget FY 2017 Proposed Budget FY 2017 Change $ FY 2017 Salary Administrative Associate II ———0.10 0.10 6,795 Assistant Director Utilities Customer Support Services 0.20 0.20 0.20 0.20 —33,471 Assistant Director Utilities Engineering 0.05 0.05 0.05 0.05 —9,506 Business Analyst ——0.10 0.20 0.10 24,182 Chief Sustainability Officer 0.10 0.10 ———— Electric Project Engineer 0.05 0.05 0.05 0.05 —5,337 Manager Utilities Compliance 0.10 0.10 0.10 0.10 —16,155 Manager Utilities Credit & Collection 0.40 0.40 0.40 0.40 —52,291 Manager Utilities Marketing Services 0.20 0.20 0.20 —(0.20)— Manager Utilities Program Services ———0.20 0.20 24,402 Manager Utilities Telecommunications 1.00 1.00 1.00 1.00 —126,880 Power Engineer 0.40 0.40 0.40 0.40 —46,336 Senior Electrical Engineer 0.05 0.05 0.05 0.05 —6,764 Street Light, Traffic Signal & Fiber Technician 2.00 2.00 2.00 2.00 —202,378 Street Light, Traffic Signal & Fiber- Lead 1.00 1.00 1.00 1.00 —89,764 Utilities Key Account Representative 0.60 0.60 0.60 0.70 0.10 72,975 Utilities Locator 0.03 0.03 0.03 0.03 —2,478 Utilities Marketing Program Administrator 0.10 0.10 ———— Sub-total: Full-Time Equivalent Positions 6.28 6.28 6.18 6.48 0.30 719,714 Temporary/Hourly 0.96 0.96 0.58 0.34 (0.24)111,759 Total Positions 7.24 7.24 6.76 6.82 0.06 831,473 UTILITIES 430 UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET Budget Reconciliation Positions Expenditures Revenues Net Fiber Optics Fund Prior Year Budget 6.76 3,785,219 4,841,788 1,056,569 Adjustments to Costs of Ongoing Activities Salaries and Benefits Adjustments 0.06 43,747 — (43,747) Capital Improvement Program Expenditure Adjustments — (63,205) — 63,205 Temporary Fiber Program Manager Contract Expenditure Adjustment — 228,000 — (228,000) Fiber Legal Support Expenditure Adjustment — 50,000 — (50,000) Rents and Leases Expenditure Adjustments — 1,889 — (1,889) Transfer Out From Fiber Optic Fund to Technology Fund Expenditure Adjustment — 941 — (941) Fiber Revenue Adjustment (Rate Increase 3.2% COLA)— — 411,532 411,532 General Fund Cost Allocation Plan Charges Adjustment — (69,557) — 69,557 General Liability Insurance Allocated Charges Adjustment — (7,145) — 7,145 Utilities Admin Allocated Charges Adjustment — 21,632 — (21,632) Adjustments to Costs of Ongoing Activities 0.06 206,302 411,532 205,230 Total FY 2017 Base Budget 6.82 3,991,521 5,253,320 1,261,799 Budget Proposals 1 Reclassification of 1.0 FTE Senior Management Analyst to 1.0 FTE Utilities Strategic Business Manager — 1,582 — (1,582) Budget Changes —1,582 —(1,582) Total FY 2017 Proposed Budget 6.82 3,993,103 5,253,320 1,260,217 UTILITIES UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET 431 Budget Adjustments Budget Adjustments Positions Expenditures Revenues Net Fiber Optics Fund 1 Reclassification of 1.0 FTE Senior Management Analyst to 1.0 FTE Utilities Strategic Business Manager 0.00 1,582 0 (1,582) This action amends the Table of Organization by reclassifying 1.0 Senior Management Analyst position to 1.0 FTE Utilities Strategic Business Manager position to more accurately reflect the duties of the position. Adopting this reclassification will make permanent the functions of a trial over-strength position created last year to serve in this capacity. This position guides improvements to internal processes, customer focused services, workforce development, and financial stability. This position will oversee Utilities strategic plan, operating and CIP budgets, technology roadmap, workforce development and succession program, and fiber policy. (Ongoing: $1,582) Performance Results No impacts to current service levels are anticipated as a result of this title change. UTILITIES 432 UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET GAS FUND Description The municipal natural gas system began operations in 1917 when Palo Alto acquired a privately-owned gas business. During the early years, gas was manufactured from coal tar. This was replaced in the 1920s by natural gas from Pacific Gas and Electric. Today, gas is purchased from several sources. The Gas Utility services include Crossbore Safety, Gas Main Replacements, and Home Energy Audits. The Gas utility infrastructure and its crews maintains an excellent safety record. The gas fund is responsible for planning, designing, budgeting, and constructing major capital improvements to the City’s gas distribution system. Accomplishments Completed the PVC gas pipeline study for evaluation of enhanced system reliability. Pipeline improvements recommended from this study will be included in future capital improvement projects. Completed the design of gas main replacement project GMR 22 to replace approximately 19,440 linear feet of gas main pipelines and 367 service pipelines. This project will also include approximately 2,700 LF of water main to be placed in the joint-trench with gas main on University Avenue. Initiatives Evaluate the cost-effectiveness and feasibility of ’fuel switching”, or substituting electric using appliances for those using natural gas. Promote sustainable PaloAltoGreen Gas program with goals of 20% customer participation and 10% greenhouse gas reductions. Complete the development of a computer model to perform complex natural gas distribution system analyses. Expand efforts to compete for the $5 million Georgetown University Energy Prize by saving energy (gas and electricity) in 2015 and 2016. Continue to enhance outreach for gas safety awareness to all customer groups, as well as non-customers, living around a gas pipeline and/or working with utility services in Palo Alto. UTILITIES UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET 433 Implementation of new residential and commercial efficiency programs. Launched new portal for residential customers to view their utilities usage for all commodities at one location. Goals and Objectives GOAL 1 Provide safe and efficient delivery of natural gas to our customers. Objectives: Continue repairing 100 percent of laterals damaged by crossbore within 24 hours. Remove and replace the remaining acrylonitrile butadien styrene (ABS) pipe from the gas system. Complete a walking gas leak survey for 50 percent of the City, and a mobile gas leak survey of services in business districts and 100 percent of the City’s gas mains on an annual basis. GOAL 2 Increase environmental sustainability and promote efficient use of natural gas resources. Objectives: Ten-year goal for natural gas efficiency is a reduction in expected gas use of 2.85 percent by 2023. Reduce the carbon intensity of the gas portfolio in accordance with the Climate Protection Plan. Key Performance Measures GAS LEAKS REPAIRED Goal Provide safe and efficient delivery of natural gas to customers. Objective Respond to and repair all Grade 1 gas leaks immediately. FY 2014 Actuals FY 2015 Actuals FY 2016 Adopted FY 2016 Estimated FY 2017 Proposed Percentage of Grade 1 leaks responded to within 24 hours 100.00%100.00%100.00%100.00%100.00% Description This measures the total response time to Grade 1 leaks found during the walking and mobile (vehicle) surveys, and any reported leaks classified as Grade 1. The City's policy is to respond and repair Grade 1 leaks within 24 hours. Grade 1 leaks are hazardous leaks that pose an immediate hazard to persons or property and require continuous action until conditions are no longer hazardous. Purpose Leaks are assigned priority gradings according to location, extent of migration, gas concentration, potential for concentration, ignition sources, and potential hazard to the public and property. These priority grades are intended only as guidelines. Status Utilities Operations responds immediately to Grade 1 leaks. The average repair time can vary depending on the size and location of the gas leak. UTILITIES 434 UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET GAS SAFETY Goal Provide safe and efficient delivery of natural gas to our customers. Objective Complete a walking gas leak survey for 50 percent of the City, and a mobile gas leak survey of services in business districts and 100 percent of the City's gas mains on an annual basis. FY 2014 Actuals FY 2015 Actuals FY 2016 Adopted FY 2016 Estimated FY 2017 Proposed Percentage of gas system surveyed by walking 100.00%100.00%100.00%100.00%100.00% Percentage of gas system surveyed by mobile (vehicle)100.00%100.00%100.00%100.00%100.00% Description A walking survey is conducted to check for gas leaks on service/gas meters and covers one-half of the City (approximately 105 miles of gas mains and 36 miles of service lines) every year, so that the entire City's gas service system can be reviewed in a two-year period. Department of Transportation (DOT) regulations require a survey of the entire City once every five years. The City of Palo Alto gas leak survey exceeds the DOT requirements. In addition to walking survey, a mobile (vehicle) survey of all gas mains and some gas service lines (services in the business district) are conducted annually. Purpose To ensure the safety of all who live and work in Palo Alto and to comply with Federal (Department of Transportation) requirements. Status We are meeting the requirements and repairing all discovered gas leaks in a timely manner. INCREASE ENVIRONMENTAL SUSTAINABILITY AND PROMOTE EFFICIENT USE OF NATURAL GAS RESOURCES Goal Support environmental sustainability and promote efficient use of natural gas resources. Objective Ten-year goals for natural gas are a reduction in expected gas use of 2.85 percent by 2023 (2013 base year). FY 2014 Actuals FY 2015 Actuals FY 2016 Adopted FY 2016 Estimated FY 2017 Proposed Natural gas savings achieved annually through efficiency programs 1.20%0.50%0.90%0.90%0.55% Description We measure specific savings achieved from the installation of natural gas efficiency improvements, which we track through our rebate, audit, loan and other incentive programs. We can also track overall savings by customers class, which include behavioral changes, including those implemented as a results of programs such as the Home Energy Reports, which proved customers information on their energy use ans can proved the with comparisons of their home's energy use to others nearby. Purpose The carbon intensity of the natural gas portfolio is a function of where and how the gas is acquired and how much of it then burned in use. Improving gas efficiency directly reduces the gas-related carbon footprint in Palo Alto. Status FY 2015 gas efficiency savings were well above the goal, but below the last two years. Nearly two thirds of the gas savings are attributed to the Home Energy Report program. As the cost of gas continued to decrease, we saw a decline in large commercial gas savings projects. UTILITIES UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET 435 Workload Measures FY 2014 Actuals FY 2015 Actuals FY 2016 Adopted FY 2016 Estimated FY 2017 Proposed Number of Customer Accounts (Gas)23,592 23,461 23,659 23,659 23,659 Number of gas leaks repaired 137 100 131 131 100 Budget Summary FY 2014 Actuals FY 2015 Actuals FY 2016 Adopted Budget FY 2017 Proposed Budget FY 2017 Change $ FY 2017 Change % Dollars by Division CIP Gas Fund 8,879,417 7,460,806 7,134,621 6,306,179 (828,443)(11.6)% Gas Administration 9,830,091 9,245,419 10,494,355 12,357,387 1,863,032 17.8% Gas Customer Service 1,338,432 1,195,633 1,502,959 1,583,952 80,993 5.4% Gas Demand Side Management 495,782 631,749 1,330,070 1,471,467 141,397 10.6% Gas Engineering (Operating)351,558 369,154 474,834 528,730 53,896 11.4% Gas Operations and Maintenance 4,119,090 4,403,054 5,564,316 4,979,614 (584,703)(10.5)% Gas Resource Management 14,841,094 11,074,833 16,428,159 13,060,873 (3,367,286)(20.5)% Total 39,855,465 34,380,649 42,929,315 40,288,201 (2,641,113)(6.2)% Dollars by Category Salary & Benefits Healthcare 900,498 898,497 617,414 619,444 2,030 0.3% Other Benefits 144,028 131,774 101,413 78,007 (23,406)(23.1)% Overtime 216,622 187,321 151,865 151,865 ——% Pension 996,793 837,860 816,062 905,019 88,957 10.9% Retiree Medical 248,987 386,978 414,271 594,708 180,437 43.6% Salary 3,060,672 3,143,294 3,224,270 3,448,611 224,342 7.0% Workers' Compensation 55,939 43,214 47,300 62,988 15,688 33.2% Total Salary & Benefits 5,623,538 5,628,938 5,372,595 5,860,642 488,047 9.1% Allocated Charges 3,563,241 3,683,117 4,359,942 4,317,556 (42,386)(1.0)% Capital Improvement Program 7,574,629 6,098,939 6,771,382 6,306,179 (465,204)(6.9)% Contract Services 844,916 841,287 2,387,600 1,446,000 (941,600)(39.4)% Debt Service 281,866 265,519 802,615 802,615 ——% Equity Transfer 5,811,000 5,730,000 5,642,000 6,726,000 1,084,000 19.2% Facilities & Equipment ——19,790 19,790 ——% UTILITIES 436 UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET General Expense 385,362 522,091 748,161 780,361 32,200 4.3% Operating Transfers-Out 472,318 150,635 137,659 484,066 346,407 251.6% Rents & Leases 504,867 512,509 691,967 709,958 17,991 2.6% Supplies & Material 334,773 428,429 464,114 498,034 33,920 7.3% Transfer to Infrastructure 133,687 —————% Utility Purchase 14,325,269 10,519,185 15,531,489 12,337,000 (3,194,489)(20.6)% Total Dollars by Expense Category 39,855,466 34,380,648 42,929,314 40,288,201 (2,641,113)(6.2)% Revenues Charges for Services 27,520 19,698 20,000 20,000 ——% Charges to Other Funds 120,157 96,316 202,542 208,104 5,562 2.7% Net Sales 34,878,848 29,830,007 36,021,524 34,605,526 (1,416,002)(3.9)% Operating Transfers-In 151,330 8,221 ————% Other Revenue 745,576 787,248 668,000 1,030,000 362,000 54.2% Return on Investments 644,722 499,912 526,300 526,300 ——% Total Revenues 36,568,153 31,241,400 37,438,366 36,389,930 (1,048,440)(2.8)% Positions by Division CIP Gas Fund 17.12 17.10 17.10 17.10 ——% Gas Customer Service 9.52 9.61 8.41 8.78 0.37 4.40% Gas Demand Side Management 0.34 0.34 0.34 1.34 1.00 294.12% Gas Engineering (Operating)1.40 1.40 1.15 1.40 0.25 21.74% Gas Operations and Maintenance 22.70 22.07 22.38 22.43 0.05 0.22% Gas Resource Management 2.28 2.28 2.77 1.65 (1.12)(40.55)% Total 53.36 52.80 52.16 52.70 0.54 1.04% Staffing Job Classification FY 2014 Actuals FY 2015 Actuals FY 2016 Adopted Budget FY 2017 Proposed Budget FY 2017 Change $ FY 2017 Salary Account Specialist 0.26 0.26 0.26 0.23 (0.03)14,287 Administrative Associate II 0.65 0.65 0.65 0.75 0.10 50,967 Budget Summary FY 2014 Actuals FY 2015 Actuals FY 2016 Adopted Budget FY 2017 Proposed Budget FY 2017 Change $ FY 2017 Change % UTILITIES UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET 437 Assistant Director Administrative Services 0.10 0.10 0.10 0.05 (0.05)9,709 Assistant Director Utilities Customer Support Services 0.20 0.20 0.20 0.20 —33,471 Assistant Director Utilities Engineering 0.20 0.20 0.20 0.20 —38,026 Assistant Director Utilities Operations 0.15 0.15 0.15 0.15 —28,519 Assistant Director Utilities/ Resource Management 0.25 0.25 0.25 0.25 —52,811 Business Analyst 1.37 1.37 0.83 1.28 0.45 158,054 Cathodic Protection Technician Assistant 1.00 1.00 1.00 1.00 —88,568 Cathodic Technician 1.00 1.00 1.00 1.00 —108,734 Cement Finisher 0.25 0.25 0.25 0.25 —19,867 Contracts Administrator 0.10 0.10 0.10 0.10 —10,924 Coordinator Utilities Projects 1.31 1.51 1.51 1.26 (0.25)120,495 Coordinator Utilities Safety & Security 0.20 ————— Customer Service Representative 1.62 1.62 1.50 1.62 0.12 109,302 Customer Service Specialist 0.68 0.68 0.50 0.68 0.18 50,452 Customer Service Specialist-Lead 0.58 0.58 0.50 0.58 0.08 46,024 Engineer 2.00 2.00 2.00 2.00 —207,968 Engineering Manager - Electric 0.15 0.15 0.15 0.15 —24,479 Engineering Manager - WGW 0.33 0.33 0.33 0.33 —51,884 Engineering Technician III 0.70 0.70 0.70 0.70 —51,187 Equipment Operator 0.43 0.43 0.43 0.43 —31,527 Gas System Technician 2.00 2.00 2.00 —(2.00)— Gas Systems Technician II 0.90 0.90 0.90 2.90 2.00 236,998 Heavy Equipment Operator 2.57 2.57 2.57 2.52 (0.05)208,466 Heavy Equipment Operator/Install Repair ———0.65 0.65 59,324 Inspector, Field Services 1.17 1.17 1.17 1.42 0.25 128,320 Maintenance Mechanic-Welding 1.00 1.00 1.00 1.00 —85,416 Manager Customer Service ——0.33 0.33 —42,721 Staffing Job Classification FY 2014 Actuals FY 2015 Actuals FY 2016 Adopted Budget FY 2017 Proposed Budget FY 2017 Change $ FY 2017 Salary UTILITIES 438 UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET Manager Customer Service and Meter Reading 0.33 0.33 ———— Manager Treasury, Debt & Investments ———0.10 0.10 13,293 Manager Utilities Compliance 0.25 0.25 0.25 0.25 —40,388 Manager Utilities Credit & Collection 0.15 0.15 0.15 0.15 —19,609 Manager Utilities Marketing Services 0.20 0.20 0.20 —(0.20)— Manager Utilities Operations WGW 0.20 0.20 0.20 0.20 —31,212 Manager Utilities Program Services ———0.20 0.20 24,402 Meter Reader 1.98 1.98 1.92 1.98 0.06 115,006 Meter Reader-Lead 0.33 0.33 0.32 0.33 0.01 22,324 Principal Business Analyst ——0.33 0.33 —46,270 Principal Management Analyst —0.33 ———— Program Assistant I 0.33 0.33 0.33 0.33 —19,192 Project Engineer 1.00 1.00 1.00 1.00 —122,383 Resource Planner 1.15 1.15 0.95 0.65 (0.30)78,220 Restoration Lead 0.43 0.43 0.43 0.43 —37,677 SCADA Technologist 0.20 0.20 0.20 0.20 —25,300 Senior Business Analyst 0.66 0.66 0.66 0.66 —83,527 Senior Engineer 2.70 2.10 2.70 2.70 —375,872 Senior Management Analyst 0.05 0.05 0.05 —(0.05)— Senior Mechanic 0.33 0.33 0.33 0.33 —31,829 Senior Project Engineer —0.60 ———— Senior Resource Planner 0.46 0.46 0.77 0.45 (0.32)64,751 Senior Technologist 0.29 0.29 ———— Senior Utilities Field Service Representative 0.41 0.41 0.41 0.41 —39,482 Substation Electrician 0.10 0.10 0.10 0.10 —9,153 Supervisor Inspection Services 0.29 0.29 0.29 —(0.29)— Utilities Engineer Estimator 0.85 0.85 0.85 0.85 —90,621 Utilities Field Services Representative 1.75 1.75 1.75 1.75 —151,608 Utilities Install Repair-Lead- Welding Certified 1.30 1.30 1.30 1.30 —127,456 Staffing Job Classification FY 2014 Actuals FY 2015 Actuals FY 2016 Adopted Budget FY 2017 Proposed Budget FY 2017 Change $ FY 2017 Salary UTILITIES UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET 439 Utilities Install Repair-Welding Certified 1.95 1.95 1.95 1.95 —167,371 Utilities Install/Repair 4.45 4.45 4.45 3.85 (0.60)325,794 Utilities Install/Repair Assistant 0.65 0.65 0.65 0.65 —42,609 Utilities Install/Repair-Lead 1.98 1.98 1.98 1.98 —189,696 Utilities Key Account Representative 0.35 0.35 0.35 0.45 0.10 46,897 Utilities Locator 0.29 0.29 0.29 0.29 —23,679 Utilities Marketing Program Administrator 0.35 0.35 0.35 0.70 0.35 62,765 Utilities Safety Officer —0.20 0.20 0.20 —22,068 Utilities Supervisor 2.08 2.08 2.08 2.37 0.29 324,141 Water System Operator II 0.66 0.66 0.66 0.66 —56,766 Sub-total: Full-Time Equivalent Positions 49.67 50.20 49.03 49.83 0.80 4,899,861 Temporary/Hourly 3.69 2.60 3.13 2.88 (0.26)234,058 Total Positions 53.36 52.80 52.16 52.70 0.54 5,133,919 Budget Reconciliation Positions Expenditures Revenues Net Gas Fund Prior Year Budget 52.16 42,929,314 37,438,366 (5,490,948) Base Adjustments One-Time Prior Year Expenditures and Revenues Deleted Cross-bore Inspection Contract — (1,000,000) — 1,000,000 One-Time Prior Year Expenditures and Revenues —(1,000,000)—1,000,000 Adjustments to Costs of Ongoing Activities Salaries and Benefits Adjustments 0.54 260,600 — (260,600) Capital Improvement Program Adjustments — (465,203) — 465,203 Gas Commodity Purchases Expenditure Adjustment — (3,194,489) — 3,194,489 Rents and Leases Expenditure Adjustment — 17,991 — (17,991) Hauling/Disposal of Construction Materials Contract Increase Expenditure Adjustment — 50,000 — (50,000) Staffing Job Classification FY 2014 Actuals FY 2015 Actuals FY 2016 Adopted Budget FY 2017 Proposed Budget FY 2017 Change $ FY 2017 Salary UTILITIES 440 UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET Debt Service Expenditure Adjustment — 249,865 — (249,865) Equity Transfer to General Fund Expenditure Adjustment — 1,084,000 — (1,084,000) Transfer to Technology Fund Expenditure Adjustment — 179,780 — (179,780) Transfer to Electric Fund Expenditure Adjustment — 136,335 — (136,335) Transfer to Water Fund Expenditure Adjustment — 30,342 — (30,342) Palo Alto Green Gas Program Sales to City Revenue Adjustment — — 5,562 5,562 Gas Connection Fees Revenue Adjustment — — 362,000 362,000 Gas Sales Revenue Adjustment (Rate Increase, Consumption Decrease, Commodity Cost Decrease) — — (1,415,998) (1,415,998) General Fund Cost Allocation Plan Charges Adjustment — (149,942) — 149,942 General Liability Insurance Allocated Charges Adjustment — (36,635) — 36,635 Print & Mail Allocated Charges Adjustment — (13,581) — 13,581 Utilities Admin Allocated Charges Adjustment — 91,108 — (91,108) Utility and Public Works Charges to City Allocated Charges Adjustment — 13,744 — (13,744) Adjustments to Costs of Ongoing Activities 0.54 (1,746,085)(1,048,436)697,649 Total FY 2017 Base Budget 52.70 40,183,229 36,389,930 (3,793,299) Budget Proposals 1 Contract for Advisory Consultant for Gas and Water Operations — 65,000 — (65,000) 2 Reclassification of 2.0 FTE Gas System Technician I to 2.0 FTE Gas System Technician II — 11,170 — (11,170) 3 Reclassification of 2.0 FTE Heavy Equipment Operators, 1.0 FTE Installer Repairer and 1.0 FTE Assistant Installer Repairer to 4.0 FTE Heavy Equipment Operator/Installer-Repairer — 3,256 — (3,256) 4 Title Change, Manager, Utilities Marketing Services to Manager, Utility Program Services —0—0 Budget Reconciliation Positions Expenditures Revenues Net Gas Fund UTILITIES UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET 441 5 Reclassification of 1.0 FTE Senior Management Analyst to 1.0 FTE Utilities Strategic Business Manager — 12,227 — (12,227) 6 Reclassification of 1.0 FTE Coordinator, Utility Projects to 1.0 FTE Inspector, Field Services — (2,796) — 2,796 7 Reclassification of 1.0 FTE Supervisor, Inspection Services to 1.0 FTE Utilities Supervisor — 16,115 — (16,115) Budget Changes —104,972 —(104,972) Total FY 2017 Proposed Budget 52.70 40,288,201 36,389,930 (3,898,271) Budget Adjustments Budget Adjustments Positions Expenditures Revenues Net Gas Fund 1 Contract for Advisory Consultant for Gas and Water Operations 0.00 65,000 0 (65,000) This action provides funding for an advisory consulting contract to assist with operational evaluations, updating master plans, create procedures for data collection and reporting to meet compliance requirements, and updating procedure manuals. This service has helped the Sewer Operations improve its processes and meet its compliance obligations. The Gas and Water Operations will benefit from the same type of support. (Ongoing: $65,000) Performance Results The addition of these resources to the Gas and Water operation will increase operation efficiencies and help with compliance regulation. 2 Reclassification of 2.0 FTE Gas System Technician I to 2.0 FTE Gas System Technician II 0.00 11,170 0 (11,170) This action reclassifies 2.0 FTE Gas System Technician I’s to 2.0 FTE Gas System Technician II’s to more accurately reflect the duties and work requirements of the position. Budget Reconciliation Positions Expenditures Revenues Net Gas Fund UTILITIES 442 UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET Performance Results No impacts to current service levels are anticipated as a result of this position reclassification. 3 Reclassification of 2.0 FTE Heavy Equipment Operators, 1.0 FTE Installer Repairer and 1.0 FTE Assistant Installer Repairer to 4.0 FTE Heavy Equipment Operator/Installer-Repairer 0.00 3,256 0 (3,256) This action would create a new combo Heavy Equipment Operator / Installer-Repairer classification in the Heavy Equipment Operator and Installer-Repairer job families in the Water/Gas/Wastewater group. Currently there are separate sets of duties for heavy equipment operators and installer/repairers who work on the same water, gas, and sewer jobs. This proposal creates a combined position that would enable some employees to perform both sets of duties. This would increase productivity, provide greater flexibility during employee absences, and would provide more job development opportunities. 2.0 FTE Heavy Equipment Operator positions, 1.0 FTE Installer-Repairer, and 1.0 Assistant Installer-Repairer will be reclassified to 4.0 FTE Heavy Equipment Operator/Installer-Repairer positions. (Ongoing: $3,256) Performance Results The position reclassifications reflect the current operational needs of the Water/Gas/Wastewater operation. This would increase productivity, provide greater flexibility during employee absences, and would provide more job development opportunities. 4 Title Change, Manager, Utilities Marketing Services to Manager, Utility Program Services 0.00 0 0 0 This action amends the Table of Organization by retitling the Manager, Utilities Marketing Services to Manager, Utility Program Services in the Utilities Customer Service Support section to more accurately reflect the duties of the position. Utility Program Services is where customers can find answers regarding energy efficiency programs, green power programs, water efficiency programs, renewable energy programs, water and energy workshops, key account program and connecting to the CIty's commercial dark fiber backbone. (Ongoing: $0) Performance Results No impacts to current service levels are anticipated as a result of this title change. 5 Reclassification of 1.0 FTE Senior Management Analyst to 1.0 FTE Utilities Strategic Business Manager 0.00 12,227 0 (12,227) This action amends the Table of Organization by reclassifying 1.0 Senior Management Analyst position to 1.0 FTE Utilities Strategic Business Manager position to more accurately reflect the duties of the position. Adopting this reclassification will make permanent the functions of a trial over-strength position created last year to serve in this capacity. This position guides improvements to internal processes, customer focused services, workforce development, and financial stability. This position will oversee Utilities strategic plan, operating and CIP budgets, technology roadmap, workforce development and succession program, and fiber policy. (Ongoing: $12,227) Performance Results No impacts to current service levels are anticipated as a result of this title change. 6 Reclassification of 1.0 FTE Coordinator, Utility Projects to 1.0 FTE Inspector, Field Services 0.00 (2,796)0 2,796 Budget Adjustments Budget Adjustments Positions Expenditures Revenues Net Gas Fund UTILITIES UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET 443 This action amends the Table of Organization by reclassifying 1.0 Coordinator Utility Projects to 1.0 Inspector Field Services to more accurately reflect the operational needs of the department. In FY 2013, Utilities reclassed one of three Inspector, Field Services positions to Supervisor, Inspection Services who would supervise, oversee, and ensure that all of the inspector's geospatial and pipe/fitting attribute data is consistently accurate, both from staff and contract inspectors and outside developers in compliance with Utilities Standards. As a result of the reclass, there are only two inspectors assigned to WGW Engineering to review project plans and verify contract work are in compliance with specifications. Based on the volume of plan reviews and inspections, Utilities is requesting to add back a third field service inspector. The supervision of the inspectors and oversight of the geospatial database will be reassigned to a Senior Engineer. (Ongoing Savings: $2,796) Performance Results The position reclassifications reflect the current operational needs of the Electric/Water/Gas/Wastewater inspection services group. 7 Reclassification of 1.0 FTE Supervisor, Inspection Services to 1.0 FTE Utilities Supervisor 0.00 16,115 0 (16,115) This action reclassifies 1.0 FTE Supervisor, Inspection Services to 1.0 FTE Utilities Supervisor in the Operations Division. There is a need for coordination between the WGW and Electric businesses. The supervisor position will act as a bridge that will allocate resources across the Divisions. The position will also functionally be able to fill in for the operation supervisors positions and develop skills to assume the duties of the other supervisors upon their retirement, which is key to the Utilities succession planning efforts. (Ongoing: $16,115) Performance Results The position reclassifications reflect the current operational needs of the Water/Gas/Wastewater & Electric operation. This would increase productivity, provide greater flexibility during employee absences, and would provide more job development opportunities. Budget Adjustments Budget Adjustments Positions Expenditures Revenues Net Gas Fund UTILITIES 444 UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET WASTEWATER COLLECTION FUND Description In 1898, Palo Alto approved $28,000 in bond money to fund construction of the City’s first sewer network, which was completed in 1899. Private cesspools and privies were banned, and the City Health Officer had residents connected to the sewer system within a few years. Wastewater Collection’s staff is responsible for design, construction, operation, and maintenance of approximately 216 miles of sewer mains and over 18,000 City-owned laterals. Staff continues overlapping the design and construction elements of rehabilitation and augmentation projects. Wastewater Collection’s priorities are: maintaining infrastructure reliability; identifying problems in mains and service laterals through expanded use of video technology; complying with all regulatory requirements; and maintaining its excellent safety record. Accomplishments Surveyed, inspected, and cleaned 3,977 City-owned sewer laterals. Continued to minimize Sanitary Sewer Overflows (SSOs) by increasing preventive maintenance work on laterals and mains; reduced total number of SSOs by 22% in 2015 compared to 2014 Repaired and/or replaced over 136 laterals with structural damage. Continue to develop the next phase of the Crossbore program to address partially inspected and uninspected laterals based on a prioritized list and available budget. Awarded contract for sanitary sewer replacement project SSR 24/25/26 and replaced 5,100 of the 42,000 linear feet of sanitary sewer mains in University South, Professorville, and Old Palo Alto neighborhoods to date. UTILITIES UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET 445 Completed the design of sanitary sewer replacement project SSR 27 to replace approximately 15,753 linear feet of wastewater main pipelines, 259 lateral pipelines, and 46 manholes. Initiatives Implement a more aggressive sewer lateral replacement program as a result of the findings in the crossbore inspection program. Continue customer and plumber safety outreach about the importance of calling Utilities prior to clearing a sewer lateral to confirm no risk of crossbore. Reduce the total number of Sanitary Sewer Overflows (SSOs) by 5% annually per State Water Resources Control Board’s requirement. Request proposals and procure a contractor to do Phase II of the Crossbore program to address high priority laterals. Replace aging sewer combination cleaning units with new units. Continue the multi-year construction of sanitary sewer replacement project SSR 24/25/26 to replace approximately 42,398 LF of wastewater main pipelines, 779 lateral pipelines, and 121 manholes. Award the contract and start the construction of sanitary sewer replacement project SSR 27 to replace approximately 15,753 LF of wastewater main pipelines, 259 lateral pipelines, and 46 manholes. Goals and Objectives GOAL 1 Maintain and provide reliable wastewater services to our customers. Objectives: Clean and maintain 100 percent of the sewer mains in commercial area on a quarterly basis. Clean and video a minimum of 17 percent of the City-owned laterals annually, to comply with City’s Sewer Overflow Reduction Plan. Maintain a low level of inflow and infiltration of saltwater into the City’s wastewater system. Maintain the integrity of our wastewater collection system by replacing mains and laterals as identified on our Wastewater Collection System Rehabilitation/Augmentation Capital Improvement Project plan. Minimize Sanitary Sewer Overflows and stoppages. UTILITIES 446 UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET Key Performance Measures Workload Measures MAINTAIN AND PROVIDE RELIABLE SERVICES Goal Maintain and provide a reliable wastewater system to our customers Objective Inspect and clean 100 percent of the sewer mains in commercial areas on a quarterly basis. Clean and video a minimum of 17 percent of the City-owned laterals annually to comply with City's Sewer Overflow Reduction Plan. FY 2014 Actuals FY 2015 Actuals FY 2016 Adopted FY 2016 Estimated FY 2017 Proposed Percent of miles of sewer lines cleaned/treated in a fiscal year 108.00%61.00%62.00%63.00%63.00% Percentage of sewer laterals inspected annually 16.00%22.00%19.00%18.00%19.00% Description The purpose of the Sewer System Management Plan (SSMP) is to maintain and improve the condition of the collection system infrastructure; control infiltration and provide appropriate sewer capacity; and minimize the number and impact of sanitary sewer overflows. The goal is to perform sewer main cleaning of the entire collection system every 30 months (81.6 miles per year). This measures inspections and maintenance of 17 percent of City-owned laterals annually using closed-circuit television (CCTV) inspection data, including results of the on-going crossbore lateral inspection program, to target sewer mains and lower laterals for rehabilitation and replacement. Purpose To prevent blockage, sewer overflows, and to comply with the City's Sanitary Sewer Management Plan (SSMP), all the City's sewer mains must be cleaned within 30 months. Status The City is meeting the objectives of its Sanitary Sewer Management Plan, and through the implementation of an aggressive sewer main cleaning, the number of blockages and overflows have decreased. WGW Operations is on target to complete inspection of 17% or 3,108 laterals of 18,141 in the City. FY 2014 Actuals FY 2015 Actuals FY 2016 Adopted FY 2016 Estimated FY 2017 Proposed Number of Customer Accounts (Wastewater)22,105 22,241 22,174 22,174 22,174 Number of sewage overflows in a fiscal year 105 96 65 72 64 Percent of sewage spill and line blockage responses within two hours 98.00%97.00%100.00%100.00%100.00% Percent of surveyed residents rating the quality of the Sewer Service as good/excellent 89.00%83.00%88.00%88.00%88.00% Percent of miles of sewer lines replaced 3.00%3.00%2.00%1.76%1.94% UTILITIES UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET 447 Budget Summary FY 2014 Actuals FY 2015 Actuals FY 2016 Adopted Budget FY 2017 Proposed Budget FY 2017 Change $ FY 2017 Change % Dollars by Division CIP Wastewater Collection Fund 5,074,880 3,090,810 6,055,611 4,827,281 (1,228,330)(20.3)% Wastewater Collection Administration 1,701,786 1,454,325 2,562,518 2,696,774 134,256 5.2% Wastewater Collection Customer Service 132,713 (323,934)353,076 271,245 (81,831)(23.2)% Wastewater Collection Engineering (Operating)310,374 318,560 391,212 447,371 56,159 14.4% Wastewater Collection Operations and Maintenance 9,432,600 11,423,074 11,566,762 13,430,249 1,863,487 16.1% Total 16,652,353 15,962,835 20,929,179 21,672,920 743,741 3.6% Dollars by Category Salary & Benefits Healthcare 533,024 539,838 307,130 325,781 18,651 6.1% Other Benefits 78,231 70,690 40,593 34,417 (6,177)(15.2)% Overtime 152,654 146,040 47,554 47,554 ——% Pension 558,324 469,096 399,983 426,797 26,814 6.7% Retiree Medical 86,804 70,919 80,385 136,521 56,136 69.8% Salary 1,427,205 1,122,447 1,548,070 1,606,009 57,939 3.7% Workers' Compensation 26,416 18,019 22,339 35,739 13,400 60.0% Total Salary & Benefits 2,862,659 2,437,050 2,446,054 2,612,817 166,762 6.8% Allocated Charges 1,953,415 2,184,449 2,579,841 2,814,147 234,306 9.1% Capital Improvement Program 3,936,230 1,642,939 5,955,478 4,827,281 (1,128,197)(18.9)% Contract Services 154,427 86,187 250,990 247,640 (3,350)(1.3)% Debt Service 54,376 50,663 129,001 129,001 ——% Facilities & Equipment 20 —3,000 3,000 ——% General Expense 73,112 75,022 107,100 122,160 15,060 14.1% Operating Transfers-Out 107,522 119,173 107,078 285,689 178,611 166.8% Rents & Leases 269,221 276,107 380,741 390,039 9,298 2.4% Supplies & Material 244,812 314,451 342,870 386,120 43,250 12.6% Transfer to Infrastructure 133,687 —————% UTILITIES 448 UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET Utility Purchase 6,862,872 8,776,795 8,627,026 9,855,026 1,228,000 14.23% Total Dollars by Expense Category 16,652,352 15,962,835 20,929,179 21,672,920 743,741 3.55% Revenues Charges for Services 18,121 23,042 10,000 10,000 ——% Charges to Other Funds 30,107 30,107 30,107 30,107 ——% Net Sales 15,877,228 15,494,811 17,064,999 17,947,509 882,510 5.2% Operating Transfers-In 42,242 4,467 ————% Other Revenue 696,908 1,251,859 652,000 1,046,000 394,000 60.4% Return on Investments 309,139 323,123 266,500 266,500 ——% Total Revenues 16,973,745 17,127,410 18,023,605 19,300,115 1,276,510 7.1% Positions by Division CIP Wastewater Collection Fund 13.34 13.00 12.52 12.52 ——% Wastewater Collection Customer Service 2.47 2.47 3.06 2.19 (0.87)(28.48)% Wastewater Collection Engineering (Operating)1.40 1.40 1.15 1.40 0.25 21.74% Wastewater Collection Operations and Maintenance 13.01 12.70 13.02 13.06 0.04 0.34% Total 30.22 29.57 29.74 29.17 (0.58)(1.93)% Staffing Job Classification FY 2014 Actuals FY 2015 Actuals FY 2016 Adopted Budget FY 2017 Proposed Budget FY 2017 Change $ FY 2017 Salary Account Specialist 0.25 0.25 0.25 0.23 (0.02)14,287 Administrative Associate II 0.40 0.40 0.40 0.40 —27,183 Assistant Director Utilities Engineering 0.15 0.15 0.15 0.15 —28,519 Assistant Director Utilities Operations 0.10 0.10 0.10 0.10 —19,013 Associate Engineer 0.50 0.50 0.50 —(0.50)— Business Analyst 0.75 0.75 0.50 0.75 0.25 91,357 Budget Summary FY 2014 Actuals FY 2015 Actuals FY 2016 Adopted Budget FY 2017 Proposed Budget FY 2017 Change $ FY 2017 Change % UTILITIES UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET 449 Cement Finisher 0.50 0.50 0.50 0.50 —39,734 Contracts Administrator 0.05 0.05 0.05 0.05 —5,462 Coordinator Utilities Projects 1.25 1.35 1.35 1.10 (0.25)106,341 Coordinator Utilities Safety & Security 0.10 ————— Customer Service Representative 1.20 1.20 1.38 1.20 (0.18)80,964 Customer Service Specialist ——0.46 —(0.46)— Customer Service Specialist-Lead 0.25 0.25 0.46 0.25 (0.21)19,838 Engineer 1.00 1.00 1.00 1.00 —113,706 Engineering Manager - Electric 0.15 0.15 0.15 0.15 —24,479 Engineering Manager - WGW 0.34 0.34 0.34 0.34 —53,457 Engineering Technician III 0.45 0.45 0.45 0.45 —33,808 Equipment Operator 0.26 0.26 0.26 0.26 —19,062 Heavy Equipment Operator 2.13 2.13 2.13 0.23 (1.90)18,383 Heavy Equipment Operator/Install Repair ———3.15 3.15 271,895 Industrial Waste Investigator ———0.50 0.50 46,585 Inspector, Field Services 1.43 1.43 1.43 1.68 0.25 151,816 Maintenance Mechanic-Welding 0.20 0.20 0.20 0.20 —17,082 Manager Utilities Credit & Collection 0.15 0.15 0.15 0.15 —19,609 Manager Utilities Operations WGW 0.30 0.30 0.30 0.30 —46,818 Program Assistant I 0.34 0.34 0.34 0.34 —19,774 Project Engineer 2.00 2.00 2.00 2.00 —214,243 Restoration Lead 0.26 0.26 0.26 0.26 —22,781 Senior Engineer 1.30 1.15 1.30 1.30 —184,805 Senior Mechanic 0.33 0.33 0.33 0.33 —31,829 Senior Project Engineer —0.15 ———— Supervisor Inspection Services 0.42 0.42 0.42 —(0.42)— Utilities Engineer Estimator 0.47 0.47 0.47 0.47 —50,011 Utilities Field Services Representative 1.25 1.25 1.25 1.25 —108,290 Utilities Install Repair-Lead- Welding Certified 0.24 0.24 0.24 0.24 —23,530 Staffing Job Classification FY 2014 Actuals FY 2015 Actuals FY 2016 Adopted Budget FY 2017 Proposed Budget FY 2017 Change $ FY 2017 Salary UTILITIES 450 UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET Utilities Install Repair-Welding Certified 0.36 0.36 0.36 0.36 —30,898 Utilities Install/Repair 5.50 5.50 5.50 4.25 (1.25)347,881 Utilities Install/Repair-Lead 2.00 2.00 2.00 2.00 —191,610 Utilities Locator 0.39 0.39 0.39 0.39 —31,942 Utilities Safety Officer —0.10 0.10 0.10 —11,034 Utilities Supervisor 1.30 1.30 1.30 1.72 0.42 233,872 Sub-total: Full-Time Equivalent Positions 28.07 28.17 28.77 28.15 (0.62)2,751,898 Temporary/Hourly 2.15 1.40 0.98 1.02 0.04 65,510 Total Positions 30.22 29.57 29.74 29.17 (0.58)2,817,408 Budget Reconciliation Positions Expenditures Revenues Net Wastewater Collection Fund Prior Year Budget 29.74 20,929,179 18,023,605 (2,905,574) Adjustments to Costs of Ongoing Activities Salaries and Benefits Adjustments (0.58) 119,169 — (119,169) Capital Improvement Program Adjustments — (1,128,197) — 1,128,197 Rents and Leases Expenditure Adjustment — 9,298 — (9,298) Off-hauling/Disposal of Materials Cost Adjustments — 50,000 — (50,000) Wastewater Treatment Purchases Expenditure Adjustment — 1,228,000 — (1,228,000) Transfer Out to Technology Fund Expenditure Adjustment — 148,268 — (148,268) Transfer Out to Water Fund Expenditure Adjustment — 30,343 — (30,343) Wastewater Treatment Sales Revenue Adjustment (Rate Increase 9%)— — 882,510 882,510 Wastewater Connection Fees Revenue Adjustment — — 394,000 394,000 Utilities and Public Works Charges to City Allocated Charges Adjustment — 235,247 — (235,247) Staffing Job Classification FY 2014 Actuals FY 2015 Actuals FY 2016 Adopted Budget FY 2017 Proposed Budget FY 2017 Change $ FY 2017 Salary UTILITIES UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET 451 General Fund Cost Allocation Plan Charges Adjustment — (150,584) — 150,584 General Liability Insurance Allocated Charges Adjustment — (30,585) — 30,585 Print & Mail Allocated Charges Adjustment — (4,596) — 4,596 Utilities Admin Allocated Charges Adjustment — 35,806 — (35,806) Vehicle Fund Allocated Charges Adjustment — 149,017 — (149,017) Adjustments to Costs of Ongoing Activities (0.58)691,186 1,276,510 585,324 Total FY 2017 Base Budget 29.17 21,620,365 19,300,115 (2,320,250) Budget Proposals 1 Reclassification of 2.0 FTE Heavy Equipment Operators, 1.0 FTE Installer Repairer and 1.0 FTE Assistant Installer Repairer to 4.0 FTE Heavy Equipment Operator/Installer-Repairer — 25,244 — (25,244) 2 Reclassification of 1.0 FTE Senior Management Analyst to 1.0 FTE Utilities Strategic Business Manager — 6,768 — (6,768) 3 Reclassification of 1.0 FTE Coordinator Utility Projects to 1.0 FTE Inspector Field Services — (2,796) — 2,796 4 Reclassification of 1.0 FTE Supervisor, Inspection Services to 1.0 FTE Utilities Supervisor — 23,339 — (23,339) Budget Changes —52,555 —(52,555) Total FY 2017 Proposed Budget 29.17 21,672,920 19,300,115 (2,372,805) Budget Reconciliation Positions Expenditures Revenues Net Wastewater Collection Fund UTILITIES 452 UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET Budget Adjustments Budget Adjustments Positions Expenditures Revenues Net Wastewater Collection Fund 1 Reclassification of 2.0 FTE Heavy Equipment Operators, 1.0 FTE Installer Repairer and 1.0 FTE Assistant Installer Repairer to 4.0 FTE Heavy Equipment Operator/Installer-Repairer 0.00 25,244 0 (25,244) This action would create a new combo Heavy Equipment Operator/Installer-Repairer classification in the Heavy Equipment Operator and Installer-Repairer job families in the Water/Gas/Wastewater group. Currently there are separate sets of duties for heavy equipment operators and installer-repairers who work on the same water, gas, and sewer jobs. This proposal creates a combined position that would enable some employees to perform both sets of duties. This would increase productivity, provide greater flexibility during employee absences, and would provide more job development opportunities. 2.0 FTE Heavy Equipment Operator positions, 1.0 FTE Installer-Repairer, and 1.0 Assistant Installer-Repairer will be reclassified to 4.0 FTE Heavy Equipment Operator/Installer-Repairer positions. (Ongoing: $1,216) Performance Results The position reclassifications reflect the current operational needs of the Water/Gas/Wastewater operation. This would increase productivity, provide greater flexibility during employee absences, and would provide more job development opportunities. 2 Reclassification of 1.0 FTE Sr. Management Analyst to 1.0 FTE Strategic Business Manager 0.00 6,768 0 (6,768) This action amends the Table of Organization by reclassifying 1.0 Senior Management Analyst position to 1.0 FTE Utilities Strategic Business Manager position to more accurately reflect the duties of the position. Adopting this reclassification will make permanent the functions of a trial over-strength position created last year to serve in this capacity. This position guides improvements to internal processes, customer focused services, workforce development, and financial stability. This position will oversee Utilities strategic plan, operating and CIP budgets, technology roadmap, workforce development and succession program, and fiber policy. (Ongoing: $6,768) Performance Results No impacts to current service levels are anticipated as a result of this title change. 3 Reclassification of 1.0 FTE Coordinator Utility Projects to 1.0 FTE Inspector Field Services 0.00 (2,796)0 2,796 This action amends the Table of Organization by reclassifying 1.0 Coordinator Utility Projects to 1.0 Inspector Field Services to more accurately reflect the operational needs of the department. In FY 2013, Utilities reclassed one of three Inspector, Field Services positions to Supervisor, Inspection Services who would supervise, oversee, and ensure that all of the inspector's geospatial and pipe/fitting attribute data is consistently accurate, both from staff and contract inspectors and outside developers in compliance with Utilities Standards. As a result of the reclass, there are only two inspectors assigned to WGW Engineering to review project plans and verify contract work are in compliance with specifications. Based on the volume of plan reviews and inspections, Utilities is requesting to add back a third field service inspector. The supervision of the inspectors and oversight of the geospatial database will be reassigned to a Senior Engineer. (Ongoing Savings: $2,796) Performance Results UTILITIES UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET 453 The position reclassifications reflect the current operational needs of the Electric/Water/Gas/Wastewater inspection services group. 4 Reclassification of 1.0 FTE Supervisor, Inspection Services to 1.0 FTE Utilities Supervisor 0.00 23,339 0 (23,339) This action reclassifies 1.0 FTE Supervisor, Inspection Services to 1.0 FTE Utilities Supervisor in the Operations Division. There is a need for coordination between the WGW and Electric businesses. The supervisor position will act as a bridge that will allocate resources across the Divisions. The position will also functionally be able to fill in for the operation supervisors positions and develop skills to assume the duties of the other supervisors upon their retirement, which is key to the Utilities succession planning efforts. (Ongoing: $23,339) Performance Results The position reclassifications reflect the current operational needs of the Water/Gas/Wastewater & Electric operation. This would increase productivity, provide greater flexibility during employee absences, and would provide more job development opportunities. Budget Adjustments Budget Adjustments Positions Expenditures Revenues Net Wastewater Collection Fund UTILITIES 454 UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET WATER FUND Description From 1895 until 1928, the City’s water supply came from deep wells. When the groundwater supply started to decline, water was purchased from the San Francisco Regional Water System to supplement the local water system. Since 1962, when Palo Alto’s wells were discontinued as the primary water system, 100 percent of the water has come from the Regional Water System: 85 percent derived from snow melt flowing into the Hetch Hetchy Reservoir and the balance from runoff stored in San Francisco Bay Area reservoirs. The Water Fund focuses on increasing infrastructure reliability and responsiveness to meet the City’s water supply needs during an emergency; maintaining high-quality and reliable sources of water; updating water efficiency goals; and implementing water efficiency programs and services. Additionally, Engineering is implementing a seismic upgrade to the existing reservoirs, wells and receiving stations to increase supply reliability during catastrophic emergencies. Accomplishments Achieved drought water savings substantially in excess of the 24% water use reduction mandated by the State Water Resources Control Board. Led citywide drought response initiative including water conservation education and water use restriction enforcement. Completed the 2015 Urban Water Management Plan. Certified the environmental impact report for the expansion of the recycled water system to deliver recycled water to City parks and the Stanford Research Park. Completed the Water distribution system seismic evaluation and condition assessment master study to determine the reliability of water system and seismic stability of water pipelines in the Foothills. Pipeline improvements recommended from this study will be included in future capital improvement projects. UTILITIES UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET 455 Completed the construction of original scope of water main replacement project WMR 25 to replace approximately 12,000 LF of water main pipelines, 225 service pipelines, and 16 fire hydrants. Currently the contractor is working on the additional scope on Hopkins Avenue. Initiatives Complete the business plan to evaluate the potential expansion of the recycled water system to deliver recycled water to City parks and the Stanford Research Park. Work with Public Works to complete the Recycled Water Strategic Plan, a comprehensive evaluation of all potential recycled water supply options including nonpotable reuse, indirect and direct potable reuse, on-site treatment and use, storm water use, and groundwater. Complete an assessment of potential potable water supplies. Respond to drought regulations and implement the Urban Water Shortage Contingency Plan to meet usage reduction targets. Complete the construction of Boronda Reservoir concrete water tank rehabilitation by removing the old steel tension cable and rewrapping with new cable and shotcrete. Assess the current condition of water reservoirs in the Foothills and identify structural integrity issues. Determine the feasibility and cost effectiveness of alternatives to address the structural integrity issues. Develop a work plan to retrofit the existing reservoirs or to build new reservoirs. Complete the design of water main replacement project WMR 26 to replace approximately 10,629 water main pipelines, 174 service pipelines, and 40 fire hydrants. Continue the multi-year construction for seismic upgrade of 2 water steel tanks and 3 turnouts. Initiated two pilot programs with grants from the Santa Clara Valley Water District (SCVWD). One to develop Business Water Reports for restaurants and hotels and another to install real-time water meters for City facilities and selected commercial properties. Goals and Objectives GOAL 1 Provide safe and clean drinking water for our customers. Objectives: Ensure drinking water meets all regulatory standards. Maintain and update water infrastructure to ensure reliable service. Educate customers about backflow prevention as part of the City’s Cross Connection Control Program. Ensure adequate water supplies are available to meet existing and future water demands. Complete seismic upgrades to water system (reservoirs, receiving stations and wells). UTILITIES 456 UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET GOAL 2 Increase environmental sustainability of the water supply system. Objective: Increase water conservation and efficiency participation. Develop updated long-term water efficiency goals as part of the 2015 Urban Water Management Plan update. Evaluate expanding the recycled water delivery system to help drought-proof the system, reuse local water supplies, and reduce the City’s dependence on the Tuolumne River. Key Performance Measures PROVIDE SAFE AND CLEAN DRINKING WATER FOR OUR CUSTOMERS Goal Provide safe and clean drinking water for our customers. Objective Ensure drinking water meets all regulatory standards. FY 2014 Actuals FY 2015 Actuals FY 2016 Adopted FY 2016 Estimated FY 2017 Proposed Percentage of customer-owned water backflow prevention devices in compliance 96.00%94.00%90.00%94.00%94.00% Description Customer-owned and maintained backflow devices are an integral part of the City's Cross Connection Control Program which began in early 2010. The devices help to ensure that no contaminants of any kind (e.g., chemicals, debris, reclaimed water) enter the potable water system. Purpose The California Department of Public Health Services provides regulations for the City and our customers through California Code of Regulations, Title 17. These regulations specify the types of hazards that require backflow devices. Status We are achieving a compliance rate of up to 95-96 percent on an annual basis. There are 3,330 backflow devices. This number is growing every year as current codes require backflow installation for residences as well as Commercial properties. UTILITIES UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET 457 WATER EFFICIENCY Goal Increase environmental sustainability of the water supply system. Objective Increase water conservation and efficiency participation. FY 2014 Actuals FY 2015 Actuals FY 2016 Adopted FY 2016 Estimated FY 2017 Proposed Water savings achieved through efficiency programs.0.64%0.91%0.91%0.91%0.91% Description We measure specific savings achieved by the installation of water efficiency improvements through methods we can track: our rebate, audit, loan and other incentive programs. We can also track overall savings by customer class, which include behavioral changes, including those implemented as a result of programs such as the Home Water Reports, which provide customers tools to enable them to manage their own water use. Purpose Improving water efficiency for homes and businesses can result in water supply, water operations and wastewater processing savings. This measure supports the Water Fund's ten-year goals for water, to reduce expected water use by 20 percent by 2020. Status Water efficiency program savings were significantly higher in FY 2015 compared to FY 2014 due to the California drought and the Governor's Executive Order mandating water conservation. In order to meet local water restrictions, both CPAU and the SCVWD doubled their landscape rebates, resulting in a program that was very popular and resulted in substantial water savings. WATER QUALITY Goal Ensure the provision of safe and clean drinking water for our customers. Objective Safe testing of drinking water to meet all regulatory standards. FY 2014 Actuals FY 2015 Actuals FY 2016 Adopted FY 2016 Estimated FY 2017 Proposed Percentage of samples passed from all sampling stations 100.00%100.00%100.00%100.00%100.00% Description The City of Palo Alto (CPA) regularly collects and tests water samples from connection points between the San Francisco Public Utilities Commission/City of Palo Alto (SFPUC/CPA), storage reservoirs, emergency wells, residential, and sample station locations within the distribution system to ensure that the water quality meets all California Department of Public Health (CDPH) and U.S. Environmental Protection Agency (EPA) prescribed regulations that limit the amount of contaminants in the drinking water. The City has 18 sampling stations and collects 84-105 samples monthly to test levels of chlorine residual, coliform and pH levels are within regulatory guidelines. All sample results are reported to CDPH on a monthly basis. Purpose Complying with regulations guarantees we maintain our high standards of water quality and avoid fines. Status Palo Alto drinking water continues to be in complete compliance with all existing county, state, and federal standards for water quality. UTILITIES 458 UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET Workload Measures FY 2014 Actuals FY 2015 Actuals FY 2016 Adopted FY 2016 Estimated FY 2017 Proposed Percent of miles of water mains replaced 0.10%0.00%0.00%1.00%0.90% Number of customer accounts (Water)20,087 22,421 19,638 19,638 19,638 Percent of surveyed rating the quality of the Drinking Water (Water) as "Good" or "Excellent" 89.00%83.00%88.00%88.00%88.00% Budget Summary FY 2014 Actuals FY 2015 Actuals FY 2016 Adopted Budget FY 2017 Proposed Budget FY 2017 Change $ FY 2017 Change % Dollars by Division CIP Water Fund 8,088,995 4,313,935 10,288,169 9,596,570 (691,599)(6.7)% Water Administration 7,003,097 6,528,352 8,135,564 8,626,159 490,595 6.0% Water Customer Service 1,677,926 1,821,447 2,002,659 2,095,208 92,550 4.6% Water Engineering (Operating)391,143 358,128 447,404 504,489 57,085 12.8% Water Operations and Maintenance 4,986,274 5,283,426 6,345,288 6,866,562 521,275 8.2% Water Resource Management 16,275,328 16,158,265 20,832,529 19,861,067 (971,460)(4.7)% Total 38,422,765 34,463,553 48,051,611 47,550,056 (501,555)(1.0)% Dollars by Category Salary & Benefits Healthcare 765,018 759,274 677,040 709,498 32,458 4.8% Other Benefits 122,185 108,612 102,592 90,606 (11,986)(11.7)% Overtime 206,398 187,046 168,764 168,764 ——% Pension 934,755 787,607 894,784 1,073,736 178,953 20.0% Retiree Medical 304,426 221,560 247,218 285,198 37,980 15.4% Salary 3,645,983 3,850,986 3,541,733 4,075,232 533,499 15.1% Workers' Compensation 123,393 76,724 104,320 57,907 (46,413)(44.5)% Total Salary & Benefits 6,102,157 5,991,809 5,736,450 6,460,942 724,492 12.6% Allocated Charges 3,444,985 3,633,073 4,035,313 4,161,168 125,856 3.1% Capital Improvement Program 7,307,830 3,378,101 10,199,498 9,596,570 (602,928)(5.9)% Contract Services 373,478 728,992 682,006 827,806 145,800 21.4% Debt Service 1,906,221 1,863,964 3,222,606 3,222,606 ——% UTILITIES UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET 459 Facilities & Equipment —286 2,000 2,000 ——% General Expense 385,806 366,062 547,927 568,146 20,220 3.7% Operating Transfers-Out 388,596 63,612 27,381 324,306 296,925 1,084.4% Rents & Leases 2,274,743 2,329,829 2,803,606 2,876,500 72,894 2.6% Supplies & Material 392,244 437,889 566,860 610,010 43,150 7.6% Transfer to Infrastructure 141,415 —————% Utility Purchase 15,705,288 15,669,935 20,227,965 18,900,000 (1,327,964)(6.6)% Total Dollars by Expense Category 38,422,763 34,463,554 48,051,611 47,550,055 (501,556)(1.0)% Revenues Charges for Services 75,405 45,184 10,000 10,000 ——% Charges to Other Funds 187,352 160,528 154,958 154,958 ——% From Other Agencies 549,014 534,328 576,632 576,632 ——% Net Sales 39,876,751 34,862,279 39,446,148 39,346,148 (100,000)(0.3)% Operating Transfers-In 271,221 191,525 183,333 244,018 60,685 33.1% Other Revenue 1,008,630 2,002,342 857,000 878,000 21,000 2.5% Return on Investments 831,506 792,652 775,300 775,300 ——% Total Revenues 42,799,880 38,588,839 42,003,371 41,985,056 (18,315)(0.0)% Positions by Division CIP Water Fund 9.65 9.53 9.05 9.05 ——% Water Customer Service 10.47 10.80 9.01 9.68 0.67 7.44% Water Engineering (Operating)1.37 1.37 1.12 1.37 0.25 22.32% Water Operations and Maintenance 24.98 24.97 25.44 25.44 —0.02% Water Resource Management 1.71 1.71 1.53 3.03 1.50 97.98% Total 48.18 48.38 46.15 48.58 2.43 5.26% Staffing Job Classification FY 2014 Actuals FY 2015 Actuals FY 2016 Adopted Budget FY 2017 Proposed Budget FY 2017 Change $ FY 2017 Salary Account Specialist 0.25 0.25 0.25 0.23 (0.02)14,287 Budget Summary FY 2014 Actuals FY 2015 Actuals FY 2016 Adopted Budget FY 2017 Proposed Budget FY 2017 Change $ FY 2017 Change % UTILITIES 460 UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET Administrative Associate II 0.85 0.85 0.85 0.75 (0.10)50,967 Assistant Director Utilities Customer Support Services 0.20 0.20 0.20 0.20 —33,471 Assistant Director Utilities Engineering 0.20 0.20 0.20 0.20 —38,026 Assistant Director Utilities Operations 0.15 0.15 0.15 0.15 —28,519 Assistant Director Utilities/ Resource Management 0.25 0.25 0.25 0.25 —52,811 Business Analyst 1.62 1.62 1.68 1.73 0.05 214,446 Cement Finisher 0.25 0.25 0.25 0.25 —19,867 Contracts Administrator 0.10 0.10 0.10 0.10 —10,924 Coordinator Utilities Projects 1.19 1.34 1.34 1.09 (0.25)104,589 Coordinator Utilities Safety & Security 0.15 ————— Customer Service Representative 1.56 1.56 1.26 1.56 0.30 105,258 Customer Service Specialist 0.66 0.66 0.42 0.66 0.24 48,968 Customer Service Specialist-Lead 0.59 0.59 0.42 0.59 0.17 46,817 Engineer 1.00 1.00 1.00 1.00 —113,705 Engineering Manager - Electric 0.15 0.15 0.15 0.15 —24,479 Engineering Manager - WGW 0.33 0.33 0.33 0.33 —51,884 Engineering Technician III 0.45 0.45 0.45 1.45 1.00 102,106 Equipment Operator 0.31 0.31 0.31 0.31 —22,728 Gas Systems Technician II 0.10 0.10 0.10 0.10 —8,420 Heavy Equipment Operator 2.00 2.00 2.00 1.95 (0.05)161,179 Heavy Equipment Operator/Install Repair ———0.20 0.20 18,253 Inspector, Field Services 1.40 1.40 1.40 1.65 0.25 149,104 Maintenance Mechanic-Welding 0.80 0.80 0.80 0.80 —68,332 Manager Customer Service ——0.34 0.34 —44,016 Manager Customer Service and Meter Reading 0.34 0.34 ———— Manager Utilities Compliance 0.50 0.50 0.50 0.50 —80,776 Manager Utilities Credit & Collection 0.15 0.15 0.15 0.15 —19,609 Staffing Job Classification FY 2014 Actuals FY 2015 Actuals FY 2016 Adopted Budget FY 2017 Proposed Budget FY 2017 Change $ FY 2017 Salary UTILITIES UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET 461 Manager Utilities Marketing Services 0.20 0.20 0.20 —(0.20)— Manager Utilities Operations WGW 0.50 0.50 0.50 0.50 —78,030 Manager Utilities Program Services ———0.20 0.20 24,402 Meter Reader 2.03 2.03 1.67 2.03 0.36 117,860 Meter Reader-Lead 0.34 0.34 0.28 0.34 0.06 23,000 Planner 0.15 0.15 ———— Power Engineer 0.30 0.30 0.30 0.30 —36,416 Principal Business Analyst ——0.33 0.33 —46,270 Principal Management Analyst —0.33 ———— Program Assistant I 0.33 0.33 0.33 0.33 —19,192 Project Engineer 2.00 2.00 2.00 2.00 —244,767 Resource Planner 0.20 0.20 0.10 0.70 0.60 84,156 Restoration Lead 0.31 0.31 0.31 0.31 —27,162 SCADA Technologist 0.80 0.80 0.80 0.80 —101,200 Senior Business Analyst 0.66 0.66 0.66 0.66 —83,527 Senior Engineer 1.00 0.75 1.00 1.00 —139,127 Senior Mechanic 0.34 0.34 0.34 0.34 —32,793 Senior Project Engineer —0.25 ———— Senior Resource Planner 1.05 1.05 0.55 1.69 1.14 246,113 Senior Technologist 0.29 0.29 ———— Senior Utilities Field Service Representative 0.49 0.49 0.49 0.49 —47,186 Senior Water Systems Operator 2.00 2.00 2.00 2.00 —195,094 Substation Electrician 0.40 0.40 0.40 0.40 —36,612 Supervisor Inspection Services 0.29 0.29 0.29 —(0.29)— Utilities Engineer Estimator 0.43 0.43 0.43 0.43 —45,736 Utilities Field Services Representative 1.50 1.50 1.50 1.50 —129,949 Utilities Install Repair-Lead- Welding Certified 0.46 0.46 0.46 0.46 —45,100 Utilities Install Repair-Welding Certified 0.69 0.69 0.69 0.69 —59,222 Utilities Install/Repair 2.05 2.05 2.05 1.90 (0.15)160,994 Utilities Install/Repair Assistant 0.35 0.35 0.35 0.35 —22,942 Staffing Job Classification FY 2014 Actuals FY 2015 Actuals FY 2016 Adopted Budget FY 2017 Proposed Budget FY 2017 Change $ FY 2017 Salary UTILITIES 462 UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET Utilities Install/Repair-Lead 1.02 1.02 1.02 1.02 —97,719 Utilities Key Account Representative 0.15 0.15 0.15 0.25 0.10 26,014 Utilities Locator 0.34 0.34 0.34 0.34 —27,811 Utilities Marketing Program Administrator 1.00 1.00 0.40 0.40 —39,637 Utilities Safety Officer —0.15 0.15 0.15 —16,551 Utilities Supervisor 2.62 2.62 2.62 2.91 0.29 398,499 Water Meter Cross Connection Technician 2.00 2.00 2.00 —(2.00)— Water System Operator I ———1.00 1.00 66,846 Water System Operator II 3.34 3.34 3.34 3.34 —280,963 Sub-total: Full-Time Equivalent Positions 45.18 45.66 42.95 45.85 2.90 4,634,431 Temporary/Hourly 3.00 2.72 3.21 2.73 (0.47)217,144 Total Positions 48.18 48.38 46.15 48.58 2.43 4,851,575 Budget Reconciliation Positions Expenditures Revenues Net Water Fund Prior Year Budget 46.15 48,043,985 42,003,371 (6,040,614) Adjustments to Costs of Ongoing Activities Salaries and Benefits Adjustments 2.43 623,683 — (623,683) Capital Improvement Program Expenditure Adjustments — (602,928) — 602,928 Water Commodity Purchases Expenditure Adjustments — (1,327,965) — 1,327,965 Transfer Out to Electric Fund Expenditure Adjustment — 136,335 — — Transfer Out to Technology Fund Expenditure Adjustment — 160,590 — (160,590) Contract Services for Large Water Meter Calibration Cost Adjustments — 85,000 — (85,000) Off-hauling/Disposal of Materials Cost Adjustments — 50,000 — (50,000) Rents and Leases Expenditure Adjustment — 72,894 — (72,894) Staffing Job Classification FY 2014 Actuals FY 2015 Actuals FY 2016 Adopted Budget FY 2017 Proposed Budget FY 2017 Change $ FY 2017 Salary UTILITIES UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET 463 Water Utility Sales to the City Revenue Adjustment — — (100,000) (100,000) Transfer In from Wastewater Fund Revenue Adjustment — — 30,343 30,343 Transfer In from Gas Fund Revenue Adjustment — — 30,342 30,342 Water Connection Fees Revenue Adjustments — — 21,000 21,000 Utility and Public Works Charges to the City Allocated Charges — 1,687 — (1,687) General Fund Cost Allocation Plan Charges Adjustment — (53,044) — 53,044 General Liability Insurance Allocated Charges Adjustment — (51,171) — 51,171 Print & Mail Allocated Charges Adjustment — (6,565) — 6,565 Vehicle Fund Allocated Charges Adjustment — 149,371 — — Utilities Admin Allocated Charges Adjustment — 164,325 — (164,325) Adjustments to Costs of Ongoing Activities 2.43 (597,788)(18,315)579,473 Total FY 2017 Base Budget 48.58 47,446,197 41,985,056 (5,461,141) Budget Proposals 1 Contract for Advisory Consultant for Gas and Water Operations — 65,000 — (65,000) 2 Reclassification of 2.0 FTE Water Meter Cross Technicians to 1.0 FTE Water System Operator I and 1.0 FTE Engineering Technician III — 13,053 — (13,053) 3 Reclassify 2.0 FTE Heavy Equipment Operators, 1.0 FTE Installer Repairer and 1.0 FTE Assistant Installer Repairer to 4.0 FTE Heavy Equipment Operator/Installer-Repairer — 1,216 — (1,216) 4 Reclassification of 1.0 FTE Sr. Management Analyst to 1.0 FTE Strategic Business Manager — 11,271 — (11,271) 5 Reclassification of 1.0 FTE Coordinator Utility Projects to 1.0 FTE Inspector Field Services — (2,796) — 2,796 6 Reclassification: 1.0 FTE Supervisor, Inspection Services to 1.0 FTE Utilities Supervisor — 16,115 — (16,115) 7 Title Change: Manager, Utilities Marketing Services to Manager, Utility Program Services —0—0 Budget Changes —103,859 —(103,859) Total FY 2017 Proposed Budget 48.58 47,550,056 41,985,056 (5,565,000) Budget Reconciliation Positions Expenditures Revenues Net Water Fund UTILITIES 464 UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET Budget Adjustments Budget Adjustments Positions Expenditures Revenues Net Water Fund 1 Contract for Advisory Consultant for Gas and Water Operations 0.00 65,000 0 (65,000) This action provides funding for an advisory consulting contract to assist with operational evaluations, updating master plans, create procedures for data collection and reporting to meet compliance requirements, and updating procedure manuals. This service has helped the Sewer Operations improve its processes and meet its compliance obligations. The Gas and Water Operations would benefit from the same type of support. (Ongoing: $65,000) Performance Results The addition of these resources to the Gas and Water operation will increase operation efficiencies and help with compliance regulation. 2 Reclassification of 2.0 FTE Water Meter Cross Technicians to 1.0 FTE Water System Operator I and 1.0 FTE Engineering Technician III 0.00 13,053 0 (13,053) This action reclassifies 2.0 Water Meter Cross Technicians to 1.0 Water Systems Operator and 1.0 Engineering Technician III. The water meter cross tech positions (meter installers) are consistently are subjected to repetitive stress, injury and subsequent disability leave. This reclass will shift the function and role of the meter installer positions in supporting the water transmission system, thereby increasing productivity and efficiency. The Water System Operator I would be responsible for occasional meter replacements, meter investigations, and backflow testing that are not part of the planned meter replacement program. The Engineering Tech III position would oversee the new water meter construction. Large meter replacement projects are proposed to be funded (and contracted out) through the CIP. (Ongoing: $13,053) Performance Results The position reclassfications reflect the current operational needs of the Water operation. This would increase productivity, reduce safety/injury hazards which would reduce employee absences, and would provide more job development opportunities. 3 Reclassify 2.0 FTE Heavy Equipment Operators, 1.0 FTE Installer Repairer and 1.0 FTE Assistant Installer Repairer to 4.0 FTE Heavy Equipment Operator/Installer-Repairer 0.00 1,216 0 (1,216) UTILITIES UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET 465 This action would create a new combo Heavy Equipment Operator / Installer-Repairer classification in the Heavy Equipment Operator and Installer-Repairer job families in the Water/Gas/Wastewater group. Currently there are separate sets of duties for heavy equipment operators and installer/repairers who work on the same water, gas, and sewer jobs. This proposal creates a combined position that would enable some employees to perform both sets of duties. This would increase productivity, provide greater flexibility during employee absences, and would provide more job development opportunities. 2.0 FTE Heavy Equipment Operator positions, 1.0 FTE Installer-Repairer, and 1.0 Assistant Installer-Repairer will be reclassifed to 4.0 FTE Heavy Equipment Operator/Installer-Repairer positions. (Ongoing: $1,216) Performance Results The position reclassfications reflect the current operational needs of the Water/Gas/Wastewater operation. This would increase productivity, provide greater flexibility during employee absences, and would provide more job development opportunities. 4 Reclassification of 1.0 FTE Sr. Management Analyst to 1.0 FTE Strategic Business Manager 0.00 11,271 0 (11,271) This action amends the Table of Organization by reclassifying 1.0 Senior Management Analyst position to 1.0 FTE Utilities Strategic Business Manager position to more accurately reflect the duties of the position. Adopting this reclassification will make permananent the functions of a trial over-stregnth position created last year to serve in this capacity. This position guides improvements to internal processes, customer focused services, workforce development, and financial stability. This position will oversee Utilities strategic plan, operating and CIP budgets, technology roadmap, workforce development and succession program, and fiber policy. (Ongoing: $11,271) Performance Results No impacts to current service levels are anticipated as a result of this title change. 5 Reclassification of 1.0 FTE Coordinator Utility Projects to 1.0 FTE Inspector Field Services 0.00 (2,796)0 2,796 This action amends the Table of Organization by reclassifying 1.0 Coordinator Utility Projects to 1.0 Inspector Field Services to more accurately reflect the operational needs of the department. In FY 2013, Utilities reclassed one of three Inspector, Field Services positions to Supervisor, Inspection Services who would supervise, oversee, and ensure that all of the inspector's geospatial and pipe/fitting attribute data is consistently accurate, both from staff and contract inspectors and outside developers in compliance with Utilities Standards. As a result of the reclass, there are only two inspectors assigned to WGW Engineering to review project plans and verify contract work are in compliance with specifications. Based on the volume of plan reviews and inspections, Utilities is requesting to add back a third field service inspector. The supervision of the inspectors and oversight of the geospatial database will be reassigned to a Senior Engineer. (Ongoing Savings: $2,796) Performance Results The position reclassfications reflect the current operational needs of the Electric/Water/Gas/Wastewater inspection services group. 6 Reclassification: 1.0 FTE Supervisor, Inspection Services to 1.0 FTE Utilities Supervisor 0.00 16,115 0 (16,115) This action reclassifies 1.0 FTE Supervisor, Inspection Services to 1.0 FTE Utilities Supervisor in the Operations Division. There is a need for coordination between the WGW and Electric businesses. The supervisor position will act as a bridge that will allocate resources across the Divisions. The position will also functionally be able to fill in for the operation supervisors positions and develop skills to assume the duties of the other supervisors upon their retirement, which is key to the Utilities succession planning efforts. (Ongoing: $16,115) Performance Results Budget Adjustments Budget Adjustments Positions Expenditures Revenues Net Water Fund UTILITIES 466 UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET The position reclassfications reflect the current operational needs of the Water/Gas/Wastewater & Electric operation. This would increase productivity, provide greater flexibility during employee absences, and would provide more job development opportunities. 7 Title Change, Manager, Utilities Marketing Services to Manager, Utilities Program Services 0.00 0 0 0 This action amends the Table of Organization by retitling the Manager, Utilities Maketing Services to Manager, Utilties Program Services in the Utilities Customer Service Support section to more accurately reflect the duties of the position. Utility Program Services is where customers can find answers regarding energy efficiency programs, green power programs, water efficiency programs, renewable energy programs, water and energy workshops, key account program and connecting to the CIty's commercial dark fiber backbone. (Ongoing: $0) Performance Results No impacts to current service levels are anticipated as a result of this title change. Budget Adjustments Budget Adjustments Positions Expenditures Revenues Net Water Fund TABLE OF ORGANIZATION TABLE OF ORGANIZATION • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET 491 Senior Engineer 1.80 1.76 1.76 3.76 2.00 113.64% Senior Industrial Waste Investigator 1.00 0.99 0.99 0.99 0.00 0.00% Senior Management Analyst 0.21 0.21 0.21 0.21 0.00 0.00% Senior Mechanic 1.00 1.00 1.00 1.00 0.00 0.00% Senior Operator WQC 6.00 6.00 6.00 6.00 0.00 0.00% Senior Technologist 1.13 1.13 1.00 1.00 0.00 0.00% Storekeeper 1.00 1.00 1.00 1.00 0.00 0.00% Street Maintenance Assistant 0.00 0.00 0.00 1.00 1.00 0.00% Street Sweeper Operator 5.96 1.63 1.63 1.63 0.00 0.00% Supervisor WQCP Operations 3.00 3.00 3.00 3.00 0.00 0.00% Surveyor, Public Works 0.11 0.11 0.35 0.12 -0.23 (65.71)% Technologist 1.00 1.00 1.00 1.00 0.00 0.00% Traffic Controller Maintainer I 0.06 0.06 0.06 0.06 0.00 0.00% WQC Plant Operator II 16.00 16.00 16.00 16.00 0.00 0.00% Zero Waste Coordinator 2.00 2.00 2.00 1.00 -1.00 (50.00)% Total Public Works 99.19 94.23 95.12 98.69 3.57 3.75% Utilities Account Specialist 2.55 2.55 2.55 1.70 -0.85 (33.33)% Accountant 0.60 0.60 0.60 0.60 0.00 0.00% Administrative Assistant 1.00 1.00 1.00 1.00 0.00 0.00% Administrative Associate I 1.00 0.00 0.00 0.00 0.00 0.00% Administrative Associate II 5.00 6.00 6.00 6.00 0.00 0.00% Assistant Director Administrative Services 0.25 0.25 0.25 0.25 0.00 0.00% Assistant Director Utilities Customer Support Services 1.00 1.00 1.00 1.00 0.00 0.00% Assistant Director Utilities Engineering 1.00 1.00 1.00 1.00 0.00 0.00% Assistant Director Utilities Operations 1.00 1.00 1.00 1.00 0.00 0.00% Assistant Director Utilities/Resource Management 1.00 1.00 1.00 1.00 0.00 0.00% Associate Engineer 0.50 0.50 0.50 0.00 -0.50 (100.00)% Business Analyst 6.87 6.87 7.00 7.00 0.00 0.00% Cathodic Protection Technician Assistant 1.00 1.00 1.00 1.00 0.00 0.00% Cathodic Technician 1.00 1.00 1.00 1.00 0.00 0.00% Cement Finisher 1.00 1.00 1.00 1.00 0.00 0.00% Chief Sustainability Officer 0.35 0.35 0.00 0.00 0.00 0.00% Contracts Administrator 0.70 0.70 0.70 0.70 0.00 0.00% Coordinator Utilities Projects 6.00 7.00 7.00 6.00 -1.00 (14.29)% Coordinator Utilities Safety & Security 1.00 0.00 0.00 0.00 0.00 0.00% Table of Organization FY 2014 Actuals FY 2015 Actuals FY 2016 Adopted Budget FY 2017 Proposed Budget FY 2017 Change FTE FY 2017 Change % TABLE OF ORGANIZATION 492 TABLE OF ORGANIZATION • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET Customer Service Representative 6.00 6.00 6.00 6.00 0.00 0.00% Customer Service Specialist 2.00 2.00 2.00 2.00 0.00 0.00% Customer Service Specialist-Lead 2.00 2.00 2.00 2.00 0.00 0.00% Deputy Chief/Fire Marshal 0.08 0.08 0.08 0.08 0.00 0.00% Director Administrative Services/CFO 0.20 0.20 0.20 0.20 0.00 0.00% Director Utilities 1.00 1.00 1.00 1.00 0.00 0.00% Electric Project Engineer 2.00 2.00 2.00 2.00 0.00 0.00% Electric Underground Inspector 2.00 2.00 2.00 2.00 0.00 0.00% Electric Underground Inspector-Lead 1.00 1.00 1.00 1.00 0.00 0.00% Electrical Equipment Technician 0.00 0.00 0.00 1.00 1.00 0.00% Electrician Assistant I 4.00 4.00 4.00 3.00 -1.00 (25.00)% Engineer 4.00 4.00 4.00 4.00 0.00 0.00% Engineering Manager - Electric 1.00 1.00 1.00 1.00 0.00 0.00% Engineering Manager - WGW 1.00 1.00 1.00 1.00 0.00 0.00% Engineering Technician III 4.00 4.00 4.00 5.00 1.00 25.00% Equipment Operator 1.00 1.00 1.00 1.00 0.00 0.00% Gas System Technician 2.00 2.00 2.00 0.00 -2.00 (100.00)% Gas Systems Technician II 1.00 1.00 1.00 3.00 2.00 200.00% Hazardous Materials Inspector 0.06 0.06 0.06 0.06 0.00 0.00% Heavy Equipment Operator 8.70 8.70 8.70 6.70 -2.00 (22.99)% Heavy Equipment Operator/Install Repair 0.00 0.00 0.00 4.00 4.00 0.00% Industrial Waste Investigator 0.00 0.00 0.00 0.50 0.50 0.00% Inspector, Field Services 4.00 4.00 4.00 5.00 1.00 25.00% Lineperson/Cable Specialist 11.00 11.00 11.00 11.00 0.00 0.00% Lineperson/Cable Specialist-Lead 4.00 4.00 4.00 4.00 0.00 0.00% Maintenance Mechanic-Welding 2.00 2.00 2.00 2.00 0.00 0.00% Manager Communications 1.00 1.00 1.00 1.00 0.00 0.00% Manager Customer Service 0.00 0.00 1.00 1.00 0.00 0.00% Manager Customer Service and Meter Reading 1.00 1.00 0.00 0.00 0.00 0.00% Manager Electric Operations 1.00 1.00 1.00 1.00 0.00 0.00% Manager Treasury, Debt & Investments 0.00 0.00 0.00 0.40 0.40 0.00% Manager Utilities Compliance 1.00 1.00 1.00 1.00 0.00 0.00% Manager Utilities Credit & Collection 1.00 1.00 1.00 1.00 0.00 0.00% Manager Utilities Marketing Services 1.00 1.00 1.00 0.00 -1.00 (100.00)% Manager Utilities Operations WGW 1.00 1.00 1.00 1.00 0.00 0.00% Manager Utilities Program Services 0.00 0.00 0.00 1.00 1.00 0.00% Manager Utilities Strategic Business 0.00 0.00 0.00 1.00 1.00 0.00% Manager Utilities Telecommunications 1.00 1.00 1.00 1.00 0.00 0.00% Table of Organization FY 2014 Actuals FY 2015 Actuals FY 2016 Adopted Budget FY 2017 Proposed Budget FY 2017 Change FTE FY 2017 Change % TABLE OF ORGANIZATION TABLE OF ORGANIZATION • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET 493 Marketing Engineer 1.00 1.00 1.00 0.00 -1.00 (100.00)% Meter Reader 6.00 6.00 6.00 6.00 0.00 0.00% Meter Reader-Lead 1.00 1.00 1.00 1.00 0.00 0.00% Metering Technician 2.00 3.00 3.00 3.00 0.00 0.00% Metering Technician-Lead 1.00 1.00 1.00 1.00 0.00 0.00% Offset Equipment Operator 0.48 0.48 0.48 0.48 0.00 0.00% Overhead Underground Troubleman 2.00 2.00 2.00 2.00 0.00 0.00% Planner 0.30 0.30 0.00 0.00 0.00 0.00% Power Engineer 3.00 3.00 3.00 3.00 0.00 0.00% Principal Business Analyst 0.00 0.00 1.00 1.00 0.00 0.00% Principal Management Analyst 0.00 1.00 0.00 0.00 0.00 0.00% Program Assistant I 2.50 2.50 2.50 2.50 0.00 0.00% Project Engineer 5.00 5.00 5.00 5.00 0.00 0.00% Project Manager 0.75 0.75 0.75 0.75 0.00 0.00% Resource Planner 5.00 5.00 5.00 6.00 1.00 20.00% Restoration Lead 1.00 1.00 1.00 1.00 0.00 0.00% SCADA Technologist 2.00 2.00 2.00 2.00 0.00 0.00% Senior Accountant 0.70 0.70 0.70 0.70 0.00 0.00% Senior Business Analyst 2.00 2.00 2.00 2.00 0.00 0.00% Senior Deputy City Attorney 1.00 1.00 1.00 1.00 0.00 0.00% Senior Electrical Engineer 4.00 4.00 4.00 4.00 0.00 0.00% Senior Engineer 5.00 4.00 5.00 5.00 0.00 0.00% Senior Management Analyst 2.40 2.40 2.40 0.70 -1.70 (70.83)% Senior Mechanic 1.00 1.00 1.00 1.00 0.00 0.00% Senior Performance Auditor 1.00 1.00 1.00 1.00 0.00 0.00% Senior Project Engineer 0.00 1.00 0.00 0.00 0.00 0.00% Senior Resource Planner 6.00 6.00 6.00 6.00 0.00 0.00% Senior Technologist 0.87 0.87 0.00 0.00 0.00 0.00% Senior Utilities Field Service Representative 1.00 1.00 1.00 1.00 0.00 0.00% Senior Water Systems Operator 2.00 2.00 2.00 2.00 0.00 0.00% Storekeeper 2.00 2.00 2.00 1.00 -1.00 (50.00)% Storekeeper-Lead 0.00 0.00 0.00 0.80 0.80 0.00% Street Light, Traffic Signal & Fiber Technician 4.00 4.00 5.00 5.00 0.00 0.00% Street Light, Traffic Signal & Fiber Technician Apprentice 1.00 1.00 0.00 0.00 0.00 0.00% Street Light, Traffic Signal & Fiber-Lead 2.00 2.00 2.00 2.00 0.00 0.00% Substation Electrician 6.00 6.00 6.00 6.00 0.00 0.00% Substation Electrician-Lead 2.00 2.00 2.00 2.00 0.00 0.00% Supervising Electric Project Engineer 1.00 1.00 1.00 1.00 0.00 0.00% Table of Organization FY 2014 Actuals FY 2015 Actuals FY 2016 Adopted Budget FY 2017 Proposed Budget FY 2017 Change FTE FY 2017 Change % TABLE OF ORGANIZATION 494 TABLE OF ORGANIZATION • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET Supervisor Inspection Services 1.00 1.00 1.00 0.00 -1.00 (100.00)% Tree Maintenance Person 1.00 1.00 1.00 1.00 0.00 0.00% Utilities Compliance Technician 2.00 2.00 2.00 2.00 0.00 0.00% Utilities Compliance Technician-Lead 1.00 1.00 1.00 1.00 0.00 0.00% Utilities Credit/Collection Specialist 2.00 2.00 2.00 2.00 0.00 0.00% Utilities Engineer Estimator 5.00 5.00 5.00 5.00 0.00 0.00% Utilities Field Services Representative 5.00 5.00 5.00 5.00 0.00 0.00% Utilities Install Repair-Lead-Welding Certified 2.00 2.00 2.00 2.00 0.00 0.00% Utilities Install Repair-Welding Certified 3.00 3.00 3.00 3.00 0.00 0.00% Utilities Install/Repair 12.00 12.00 12.00 10.00 -2.00 (16.67)% Utilities Install/Repair Assistant 1.00 1.00 1.00 1.00 0.00 0.00% Utilities Install/Repair-Lead 5.00 5.00 5.00 5.00 0.00 0.00% Utilities Key Account Representative 3.00 3.00 3.00 3.00 0.00 0.00% Utilities Locator 3.00 3.00 3.00 3.00 0.00 0.00% Utilities Marketing Program Administrator 4.00 4.00 3.00 3.00 0.00 0.00% Utilities Safety Officer 0.00 1.00 1.00 1.00 0.00 0.00% Utilities Supervisor 11.00 11.00 11.00 12.00 1.00 9.09% Utilities System Operator 5.00 5.00 5.00 5.00 0.00 0.00% Warehouse Supervisor 0.50 0.50 0.50 0.80 0.30 60.00% Water Meter Cross Connection Technician 2.00 2.00 2.00 0.00 -2.00 (100.00)% Water System Operator I 0.00 0.00 0.00 1.00 1.00 0.00% Water System Operator II 4.00 4.00 4.00 4.00 0.00 0.00% Total Utilities 255.36 258.36 255.97 257.92 -1.05 (0.41)% Total Enterprise Fund 354.55 352.59 351.09 353.61 2.52 0.72% Other Funds Capital Improvement Fund Administrative Associate I 0.80 0.80 0.80 0.80 0.00 0.00% Administrative Associate III 0.90 0.89 0.89 0.89 0.00 0.00% Assistant Director Public Works 0.15 0.15 0.58 0.58 0.00 0.00% Associate Engineer 2.70 2.69 2.69 2.69 0.00 0.00% Cement Finisher 3.00 3.00 0.00 0.00 0.00 0.00% Cement Finisher-Lead 1.00 1.00 0.74 0.74 0.00 0.00% Chief Transportation Official 0.00 0.50 0.50 0.30 -0.20 (40.00)% Contracts Administrator 0.60 0.60 0.60 0.60 0.00 0.00% Coordinator Public Works Projects 0.00 0.00 1.00 1.50 0.50 50.00% Table of Organization FY 2014 Actuals FY 2015 Actuals FY 2016 Adopted Budget FY 2017 Proposed Budget FY 2017 Change FTE FY 2017 Change % •CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 3 Fiscal Year 2017 Proposed Capital Budget City Council Patrick Burt, Mayor Gregory Scharff, Vice Mayor Marc Berman Tom DuBois Eric Filseth Karen Holman Liz Kniss Greg Schmid Cory Wolbach James Keene, City Manager Suzanne Mason, Assistant City Manager Ed Shikada, Assistant City Manager Lalo Perez, Director of Administrative Services/Chief Financial Officer David Ramberg & Joe Saccio, Assistant Director of Administrative Services Kiely Nose, Budget Manager, Office of Management and Budget Michael Bruckner, Sr. Management Analyst, Office of Management and Budget Eric Filseth, Finance Committee Chair ATTACHMENT B CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 343 ELECTRIC FUND ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 345 ELECTRIC FUND Overview The City of Palo Alto is the only municipality in California that operates a full suite of City- owned utility services. The municipal electric power system began operation in 1900 and con- tinues to provide safe, reliable, cost effective electric service to residents and customers of Palo Alto. For the 2017-2021 Capital Improvement Program (CIP), approximately $79.2 million is pro- grammed, with $21.6 million budgeted in Fiscal Year 2017, of which $1.9 million is reappropriated funds from Fiscal Year 2016. Overall, a total of thirty-five projects are programmed over the 5 year CIP. Major projects funded in the 2017-2021 Proposed CIP include Electric Customer Connections ($16.7 million), Electric System Improvements ($10 million), Smart Grid Technology Installa- tion ($12.9 million), and Electric Pole Replacements for Fiber to the Home ($8 million). The bud- get for the Electric Fund CIP is broken into three separate cate- gories: Customer Connections, System Improvements, and Undergrounding Projects. Customer Connections As customers continually change their electric power needs due to equipment additions, new construction, building expansions, building remodels, teardowns and rebuilds, and new building occupancy types, the electric system must evolve to meet these needs. The Electric Customer Infrastructure Inventory CLASSIFICATION QUANTITY Miles of 60kV sub transmission lines 18 miles Substations (w/300 MVA total capacity)9 Traffic Signals (intersections) maintained 101 Streetlights maintained 6,600 Overhead Primary Distribution 117 miles Underground Primary Distribution 175.21 miles Overhead Secondary Distribution 93.77 miles Underground Secondary Distribution 74 miles $0 $4,000,000 $8,000,000 $12,000,000 $16,000,000 $20,000,000 $24,000,000 $28,000,000 2013 Actuals 2015 Actuals FY 2017 Proposed FY 2019 Projected FY 2021 Projected Electric Fund Capital Expenditures ELECTRIC FUND 346 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Connections Project, which is the largest project within the Electric Fund ($3.1 million in Fiscal Year 2017, $16.7 million over the 2017-2021 CIP), is accounted for within this category. This proj- ect allows for the completion of work required to meet the needs of customers who have applied for new or upgraded electric service, need temporary power for construction, or require other services. The Electric Fund pays for a portion of this project, while remaining costs are supported by reimbursements from customers, telephone, and cable television companies for project work performed by the City. Recent Accomplishments In Fiscal Year 2015 the Utilities Electric Division completed over 286 customer service projects with a total cost of $1.9 million and revenue of $1.4 million. 2017-2021 Capital Improvement Program Recurring Projects The Electric Customer Connections project, described above, is the only recurring project in this category. Non-Recurring Projects A total of $30.2 million is being allocated in the 2017-2021 CIP for non-recurring projects. Plans for the following projects have been submitted to the City for review and engineering: VA Hospital Load Expansion (Fiscal Year 2017: $3.0 million; 5-Year CIP: $5.0 million) Stanford Load Expansion (Fiscal Year 2017: $0.5 million; 5-Year CIP: $0.5 million) Electric Pole Replacements for Fiber to the Home or Google Fiber (Fiscal Year 2017: $5.0 million; 5-Year CIP: $8.0 million)} System Improvements Necessary elements in ensuring reliable electric service to City of Palo Alto residents and cus- tomers include the replacement of electric system components before they reach their end of life and the installation of protective equipment to minimize the impact of system problems. Projects in the System Improvements category allow for a variety of improvements, including the replacement/upgrade of old cables and equipment and bringing designs up to current stan- dard, installation of protective equipment and switches, conversion of the electric system from 4,160 Volts (4kV) to 12,470 Volts (12kV), and installation of capacitors to improve efficiency. The 2017-2021 CIP includes total funding of $56.2 million in this category, with $17.7 million allo- cated in Fiscal Year 2017. Significant projects in this category include Electric Distribution Sys- tem Improvements ($10.0 million), Smart Grid Technology Installation ($12.9 million), and various projects to rebuild underground districts and substation components ($16.7 million). Recent Accomplishments Rebuilt the electric underground system in several locations along San Antonio Road between East Charleston Road and Middlefield Road, including Green House Condo area ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 347 Upgraded the servers and software dedicated to the Supervisory Control and Data Acquisition System (SCADA) used to monitor the electric, water, and gas utility distribution systems Added security cameras at two electric substations Upgraded protective relays for Quarry substation Completed installation of new primary electric service to facilitate Stanford Hospital upgrades; and replacement of primary cables that were reaching the end of their useful life on two Quarry Feeders feeding the hospital. Completed replacement of 40 wood poles identified to be unsafe for its intended purpose and workers. Completed 25 other system improvement projects dealing with replacement of deteriorated facilities or to improve system operation and reliability. 2017-2021 Capital Improvement Program Recurring Projects A total of $17 million is programmed for System Improvements recurring projects in the 2017- 2021 CIP, with $4.3 million allocated in Fiscal Year 2017. Recurring projects in this category include the following: Communication System Improvements (Fiscal Year 2017: $0.1 million; 5-Year CIP: $0.5 million) Electric Distribution System Improvements (Fiscal Year 2017: $2.0 million; 5-Year CIP: $10.0 million) Electric Utility GIS (Fiscal Year 2017: $0.2 million; 5-Year CIP: $0.8 million) SCADA System Upgrades (Fiscal Year 2017: $0.3 million; 5-Year CIP: $0.5 million) Smart Grid Technology Installation (Fiscal Year 2017: $0.7 million; 5-Year CIP: $12.9 million) Substation Facility Improvements (Fiscal Year 2017: $0.2 million; 5-Year CIP: $1.0 million) Substation Protection Improvements (Fiscal Year 2017: $0.5 million; 5-Year CIP: $1.7 million) Underground System Rebuild (Fiscal Year 2017: $0.6 million; 5-Year CIP: $1.9 million) Non-Recurring Projects A total of $13.4 million is allocated in the 2017-2021 CIP for non-recurring System Improvement projects. Approximately $6.9 million is for the continuation of projects approved by the City Council in prior years. Three new projects are recommended as within this category, including the following: Rebuild Underground District 23 (5-Year CIP: $0.8 million) East Meadow Circle 4/12kV Conversion (Fiscal Year 2017: $0.1 million; 5-Year CIP: $1.8 million) Substation Break Replacement (Fiscal Year 2017: $0.2 million, 5-Year CIP: $0.6 million) 60kV Relay Replacement (Fiscal Year 2017: $0.2 million, 5-Year CIP: $0.5 million) ELECTRIC FUND 348 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Undergrounding Projects The City of Palo Alto began a program to underground overhead electric, telephone, and cable TV facilities in 1965 with a project along Oregon Expressway. Since that time 45 Underground Districts have been formed. The undergrounding of electrical lines is a joint process between the City and AT&T, due to joint ownership of the poles, and Comcast which leases pole space from AT&T. All three Utilities share in the cost of the installation of underground conduit and boxes necessary to enclose and protect wires and equipment. The City typically takes the lead in the design, bidding, and construction processes with AT&T and Comcast reimbursing the City for construction and administrative costs. During the 2017-2021 Capital Improvement Program period, $6.4 million is allocated for Undergrounding Projects, with $0.9 million allocated in Fis- cal Year 2017. Recent Accomplishment Underground District 47 – Completed the installation of underground substructures (conduits and boxes) in the area bounded by Middlefield Road/Addison Avenue/Cowper Street/Homer Avenue. Underground District 46 - Completed preliminary designs for undergrounding electric lines. 2017-2021 Capital Improvement Program Recurring Projects There are no recurring projects under this category. Non-Recurring Projects A total of $6.4 million is allocated in the 2017-2021 CIP for non-recurring Undergrounding proj- ects, with $0.9 million allocated in Fiscal Year 2017. All of the funds for the projects were approved by the City Council in prior years. Significant projects in this category include the fol- lowing: Underground District 42 ($2.3 million), which will underground overhead utility facilities in the area near Embarcadero Road/Emerson Street/Middlefield Road Underground District 43 ($2.7 million) which will underground overhead utility facilities in the area along Alma Street and Embarcadero Road Underground District 46 ($0.7 million), which will underground overhead utility facilities in the area near El Camino Real/Arastradero Road/West Charleston Road ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 349 Summary of Capital Activity ELECTRIC FUND Project Number Project Title FY 2015 Actuals FY 2016 Estimate FY 2017 Proposed FY 2018 FY 2019 FY 2020 FY 2021 5-Year Total Source of Funds Transfers from Other Funds Gas Fund EL-11014 Smart Grid Technology 0 0 136,335 300,000 3,375,000 0 0 3,811,335 Total Gas Tax Fund Transfers 0 0 136,335 300,000 3,375,000 0 0 3,811,335 Water Fund EL-11014 Smart Grid Technology 0 0 136,335 300,000 3,375,000 0 3,811,335 Total Water Fund Transfers 0 0 136,335 300,000 3,375,000 0 0 3,811,335 Total Transfers from Other Funds 0 0 272,670 600,000 6,750,000 0 0 7,622,670 Reimbursement from Customers, Telephone, and Cable Television Companies EL-98003 Electric System Improvements (19,289)250,000 190,000 200,000 210,000 210,000 210,000 1,020,000 EL-89028 Electric Customer Connections 1,429,428 2,160,800 1,650,000 1,650,000 1,700,000 1,700,000 1,700,000 8,400,000 EL-17006 Electric Pole Replacements for FTTP 0 0 4,000,000 2,400,000 0 0 0 6,400,000 EL-17004 Stanfrod - Customer Load Requirements 0 0 400,000 0 0 0 0 400,000 EL-17003 VA Hospital - Customer Load Requirements 0 0 2,400,000 1,600,000 0 0 0 4,000,000 Reimbursement from Customers, Telephone, and Cable Television Companies Total 1,410,139 2,410,800 8,640,000 5,850,000 1,910,000 1,910,000 1,910,000 20,220,000 Total Sources 1,410,139 2,410,800 8,912,670 6,450,000 8,660,000 1,910,000 1,910,000 27,842,670 Use of Funds Customer Connections EL-89028 Electric Customer Connections 1,701,435 4,236,859 3,108,000 3,219,888 3,335,804 3,455,893 3,580,305 16,699,890 Customer Connections Total 1,701,435 4,236,859 3,108,000 3,219,888 3,335,804 3,455,893 3,580,305 16,699,890 System Improvements EL-06001 230 Kv Electric Intertie 46,155 7,000 173,360 0 0 0 0 173,360 EL-10008 Advanced Metering Infrastructure (AMI) System 9,783 436 0 0 0 0 0 EL-16002 Capacitor Bank Installation 0 75,000 275,000 0 0 0 275,000 EL-14000 Coleridge/Cowper/Tennyson 4/12Kv Conversion 0 0 0 120,000 400,000 0 0 520,000 EL-15000 Colorado/Hopkins System Improvement 0 50,000 775,000 750,000 0 0 0 1,525,000 EL-89031 Communications System Improvements 68,437 207,699 100,000 100,000 100,000 100,000 100,000 500,000 ELECTRIC FUND 350 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET EL-08000 East Charleston 4/12Kv Conversion 322,725 60,861 0 0 0 0 0 0 EL-17001 East Meadow Circles 4/12Kv Conversion 0 0 50,000 1,750,000 0 0 0 1,800,000 EL-13000 Edgewood/Wildwood 4Kv Tie 0 0 50,000 400,000 0 0 450,000 EL-05000 El Camino Underground Rebuild 57,389 0 0 0 0 0 0 0 EL-17006 Electric Pole Replacement for FTTP 0 0 5,000,000 3,000,000 0 0 0 8,000,000 EL-15001 Electric Substation Battery Replacement 0 400,000 0 0 0 0 0 0 EL-98003 Electric System Improvements 2,005,036 4,449,933 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 10,000,000 EL-02011 Electric Utility Geographic Information System 67,135 200,000 165,000 165,000 165,000 165,000 165,000 825,000 EL-04010 Foothills System Rebuild 0 0 0 0 0 0 0 0 EL-12002 Hanover 22 - Transformer Replacement 0 0 0 0 0 0 0 0 EL-17005 HCB Pilot Wire Relay Replacement 0 0 167,000 167,000 167,000 0 0 501,000 EL-11004 Hewlett Subdivision Rebuild Los Trancos Road 0 0 0 0 0 0 0 0 EL-14004 Maybell 1&2 4/12Kv Conversion 255,478 188,649 0 0 0 0 0 0 EL-09000 Middlefield Underground Rebuild 29,906 378,021 0 0 0 0 0 0 EL-11007 Rebuild Greenhouse Condo Area 307,473 26,118 0 0 0 0 0 0 EL-12000 Rebuild Underground District 12 424,351 0 0 0 0 0 0 0 EL-11003 Rebuild Underground District 15 4,812 144,181 307,434 0 0 0 0 307,434 EL-13003 Rebuild Underground District 16 0 0 300,000 0 0 0 0 300,000 EL-11006 Rebuild Underground District 18 49,413 468,542 0 0 0 0 0 0 EL-11008 Rebuild Underground District 19 2,602 98,871 0 0 0 0 0 0 EL-14002 Rebuild Underground District 20 0 0 950,000 500,000 500,000 0 0 1,950,000 EL-17000 Rebuild Underground District 23 0 0 0 200,000 600,000 0 0 800,000 EL-10006 Rebuild Underground District 24 226,746 1,836,153 0 0 0 0 0 0 EL-19000 Rebuild Underground District 25 0 0 0 0 50,000 500,000 0 550,000 EL-16000 Rebuild Underground District 26 0 60,000 50,000 0 650,000 0 0 700,000 EL-14005 Reconfigure Quarry Feeders 69,169 106,024 774,758 0 0 0 0 774,758 EL-13002 Relocate Quarry/Hopkins Substation 60Kv Line (A & B)0 0 0 100,000 750,000 0 0 850,000 EL-13006 Sand Hill/Quarry Road 12Kv Tie 4,374 183,126 0 0 0 0 0 0 EL-02010 SCADA System Upgrades 64,226 171,699 270,000 60,000 65,000 65,000 65,000 525,000 EL-11014 Smart Grid Technology Installation 65,625 223,210 672,670 1,000,000 11,250,000 0 0 12,922,670 EL-17004 Stanford University Customer Load Requirements 0 0 500,000 0 0 0 0 500,000 EL-10009 Street Light System Conversion Project 666,918 25,000 0 0 0 0 0 0 EL-17002 Substation 60Kv Breaker Replacement 150,000 150,000 150,000 150,000 0 600,000 EL-89044 Substation Facility Improvements 258,214 210,270 195,000 195,000 195,000 200,000 200,000 985,000 EL-89038 Substation Protection Improvements 232,348 619,521 450,000 300,000 300,000 300,000 300,000 1,650,000 EL-16003 Substation Security 0 50,000 200,000 0 0 0 0 200,000 EL-16001 Underground System Rebuild 0 20,000 580,000 300,000 350,000 350,000 350,000 1,930,000 EL-13008 Upgrade Electric Estimating System 0 45,000 103,650 0 0 0 0 103,650 EL-06003 Utility Control Center Upgrades 0 0 400,000 0 0 0 0 400,000 Project Number Project Title FY 2015 Actuals FY 2016 Estimate FY 2017 Proposed FY 2018 FY 2019 FY 2020 FY 2021 5-Year Total ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 351 EL-04012 Utility Site Security Improvements 31,126 524,148 50,000 50,000 300,000 50,000 50,000 500,000 EL-17003 VA Hospital Customer Load Requirements 0 0 3,000,000 2,000,000 0 0 0 5,000,000 EL-09004 West Charleston/Wilkie to South City Limit 4/12 Kv Conversion 701 0 0 0 0 0 0 0 System Improvements Total 5,270,142 10,829,462 17,658,872 12,957,000 18,392,000 3,880,000 3,230,000 56,117,872 Undergrounding Projects EL-13007 Underground Distribution System Security 8,638 50,000 240,534 300,000 300,000 0 0 840,534 EL-08001 Underground District 42 - Embarcadero Road, Emerson, Middlefield 0 0 0 50,000 2,000,000 250,000 0 2,300,000 EL-11009 Underground District 43 - Alma/Embarcadero 0 0 0 150,000 2,000,000 500,000 2,650,000 EL-12001 Underground District 46 - Charleston/El Camino Real 3,535 62,497 622,315 0 0 0 0 622,315 EL-11010 Underground District 47 - Middlefield, Homer, Webster, Addison 195,283 2,198,525 0 0 0 0 0 0 Undergrounding Projects Total 207,456 2,311,022 862,849 350,000 2,450,000 2,250,000 500,000 6,412,849 Total Uses 7,179,033 17,377,343 21,629,721 16,526,888 24,177,804 9,585,893 7,310,305 79,230,611 Project Number Project Title FY 2015 Actuals FY 2016 Estimate FY 2017 Proposed FY 2018 FY 2019 FY 2020 FY 2021 5-Year Total ELECTRIC FUND 370 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET East Meadow Circles 4/12kV Conversion East Meadow Circles 4/12kV Conversion Description The project will convert the primary electric distribution system in the East Charleston/Alma Street/East Meadow Drive/Middlefield Road area from 4 kV to 12 kV. Justification Because of the difference in voltage, the 4kV and 12kV systems cannot be directly connected and used to back up one another. Due to prior 4kV to 12 kV conversions in adjacent areas, this area, now at 4kV, needs to be converted to 12kV so that adequate circuit connections can be restored to allow customers to be switched from one circuit to another during normal or emer- gency conditions. This will improve operating flexibility of the system and service reliability to customers in this area. In addition, there is equipment in the area that has reached the end of its useful life and needs to be replaced. Converting to 12 kV will eliminate the need to replace this equipment as it is not needed at that voltage level. Significant Changes 2017-2021 CIP: Project established. Fund: Electric Fund - Operating Category: System Improvements Project Location: East Charleston/Alma Street/East Meadow Drive/Middlefield Road area Managing Department: Utilities Initial Project Start: Summer 2017 Initial Project Completion: Spring 2018 Revised Project Start: Revised Project Completion: Project Number: EL-17001 Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund 0 0 0 50,000 1,750,000 0 0 0 1,800,000 0 1,800,000 Total 0 0 0 50,000 1,750,000 0 0 0 1,800,000 0 1,800,000 ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 371 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 50,000 1,750,000 0 0 0 1,800,000 0 1,800,000 Total 0 0 0 50,000 1,750,000 0 0 0 1,800,000 0 1,800,000 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Goal: N-9 Policy: N-44 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. ELECTRIC FUND 374 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Electric Pole Replacements for FTTP Electric Pole Replacements for FTTP Description City of Palo Alto Utilities staff has had several meetings with Google regarding their interest in Palo Alto for their new internet service product, Google Fiber. Google intends to start construc- tion in those neighborhoods with electric utility poles in Palo Alto where they can attach the fiber optic cable. This work will significantly impact the workload for Utilities’ administrative, engineering, and operations staff. Justification Google Fiber requires deploying fiber optic cable throughout the City of Palo Alto attaching to utility poles and also some pulled into underground conduit. This project requires the Electric Utility to replace about 20% of its poles to accommodate the proposed services. Currently, Google has an aggressive schedule of submitting permit applications in February 2016, request- ing to attach to electric utility poles and to start construction by Spring 2016. The current staff- ing levels of administrative, engineering, and operations employees in Utilities cannot support Googleís project and meet their project schedule, while maintaining normal CPA new customer, CIP, and maintenance jobs. Utilities staff is proposing a new budget for 3 years to allow for tem- porary staff recruitment or issuing an RFP to contract a firm to provide the necessary services. Supplemental Information Google will reimburse the City of Palo Alto for a majority of the costs for this project, but the City will incur some costs to correct existing conditions on the poles. Staff has provided a pre- liminary estimate for revenue, but the exact amount is not known at this time. Fund: Electric Fund - Operating Category: System Improvements Project Location: Various locations Managing Department: Utilities Initial Project Start: Summer 2017 Initial Project Completion: Summer 2018 Revised Project Start: Revised Project Completion: Project Number: EL-17006 ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 375 Significant Changes 2017-2021 CIP: Project established. Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund 0 0 0 1,000,000 600,000 0 0 0 1,600,000 0 1,600,000 Revenue from Other Agencies 0 0 0 4,000,000 2,400,000 0 0 0 6,400,000 0 6,400,000 Total 0 0 0 5,000,000 3,000,000 0 0 0 8,000,000 0 8,000,000 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Planning and Engineering 0 0 0 5,000,000 3,000,000 0 0 0 8,000,000 0 8,000,000 Total 0 0 0 5,000,000 3,000,000 0 0 0 8,000,000 0 8,000,000 Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Customer Service Goal: C-2 Policy: C-9 Program: C-12 Relationship to Comprehensive Plan Secondary Connection Element: Land Use and Community Design Section: Public Ways Goal: L-9 Policy: L-79 Program: L-81 Potential Board/Commission Review: Architectural Review Board Utilities Advisory Commission Environmental Impact Analysis: May Require Environmental Review ELECTRIC FUND 390 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Stanford - Customer Load Requirements Stanford - Customer Load Requirements Description This project allows for the installation of new primary conduits, vaults, cables and equipment to serve new customer demands in the Quarry Road/Welch Road/Sand Hill Road area. Justification The recent expansion of the Stanford Medical facilities and the Stanford Shopping Center has exhausted the existing facilities of Quarry Road Substation to serve any new customers in the Quarry Road/Welch Road/ Sand Hill Road area. This project will provide for new primary feeder outlets which will provide ample capability to serve both existing and new customers for the next 5 years. Significant Changes 2017-2021 CIP: Project established. Fund: Electric Fund - Operating Category: System Improvements Project Location: Stanford Medical facilities and the Stanford Shopping Center Managing Department: Utilities Initial Project Start: Summer 2017 Initial Project Completion: Winter 2017 Revised Project Start: Revised Project Completion: Project Number: EL-17004 Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund 0 0 0 100,000 0 0 0 0 100,000 0 100,000 Revenue from Other Agencies 0 0 0 400,000 0 0 0 0 400,000 0 400,000 Total 0 0 0 500,000 0 0 0 0 500,000 0 500,000 ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 391 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 500,000 0 0 0 0 500,000 0 500,000 Total 0 0 0 500,000 0 0 0 0 500,000 0 500,000 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-9 Policy: N-44 Program: N-63 Relationship to Comprehensive Plan Secondary Connection Element: Community Services & Facilities Section: Customer Service Goal: C-2 Policy: C-9 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. ELECTRIC FUND 392 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Substation 60kV Breaker Replacement Substation 60kV Breaker Replacement Description This project funds the purchase and replacement of high voltage circuit breakers that intercon- nect the nine electric substations and two power switching stations due circuit breakers that are reaching their recommended reliable useful life expectancy and/or are now underrated for the use. Justification A recent 60kV circuit breaker study performed for the City of Palo Alto found that the inter- rupting current rating of two of these circuit breakers on the system is not high enough to han- dle the expected maximum fault current level. Three other circuit breakers are marginal with respect to their interrupting current rating. Six additional older oil circuit breakers are obsolete and have reached or are reaching the ends of their operable lives. One oil circuit breaker has experienced a non-catastrophic failure. Should there be a fault, it could result in a failure of any one of these twelve circuit breakers to operate properly, damage to the breaker, and a pro- longed electric outage. These circuit breakers are integral and critical cornerstones of the elec- tric utility transmission system. The project will be a 10 year program replacing 1-2 breakers per year. Significant Changes 2017-2021 CIP: Project established. Fund: Electric Fund - Operating Category: System Improvements Project Location: Various locations Managing Department: Utilities Initial Project Start: Summer 2017 Initial Project Completion: Summer 2020 Revised Project Start: Revised Project Completion: Project Number: EL-17002 ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 393 Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund 0 0 0 150,000 150,000 150,000 150,000 0 600,000 0 600,000 Total 0 0 0 150,000 150,000 150,000 150,000 0 600,000 0 600,000 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 150,000 150,000 150,000 150,000 0 600,000 0 600,000 Total 0 0 0 150,000 150,000 150,000 150,000 0 600,000 0 600,000 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Goal: N-9 Policy: N-44 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. ELECTRIC FUND 406 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET VA Hospital - Customer Load Requirements VA Hospital - Customer Load Requirements Description The VA Hospital is outgrowing the capability of the electric infrastructure the City has tradition- ally provided. Hanover and Maybell Substations currently serve the VA Hospital campus with 2 electric lines, as the federal guidelines require full redundancy of electric power in case one line goes down. The VA Hospital is reaching the full capacity of a single line this year in 2016. Addi- tional capacity is required and will be met using mostly existing underground conduits in the short term. In the long term, a new 60kV substation will be installed to provide the full capacity needed. Justification The interim, short term solution will be implemented in one year by using existing underground pathways to upsize the existing 12kV wires and to bring additional 12kV wires to the VA from Hanover and Maybell Substations to meet the rapid load growth needs, since the long term solution cannot be built and energized for a minimum of 2.5 years from now. The long term, 60kV substation addition is necessary to meet both the VA Hospital's power needs and the needs of other 12kV power users in the neighborhood as the local 12kV system cannot also sup- port the full VA Hospital load projections by 2022. A 60kV substation takes its power from a higher level in the electric system that has adequate capacity. Without this improvement, in the event of an outage in the Hanover/Maybell area once the VA Hospital is at full load, the majority of Customers would experience sustained timeframes until the power can be restored. Fund: Electric Fund - Operating Category: System Improvements Project Location: VA Hospital Managing Department: Utilities Initial Project Start: Summer 2017 Initial Project Completion: Summer 2018 Revised Project Start: Revised Project Completion: Project Number: EL-17003 ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 407 Significant Changes 2017-2021 CIP: Project established. Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund 0 0 0 600,000 400,000 0 0 0 1,000,000 0 1,000,000 Revenue from Other Agencies 0 0 0 2,400,000 1,600,000 0 0 0 4,000,000 0 4,000,000 Total 0 0 0 3,000,000 2,000,000 0 0 0 5,000,000 0 5,000,000 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 3,000,000 2,000,000 0 0 0 5,000,000 0 5,000,000 Total 0 0 0 3,000,000 2,000,000 0 0 0 5,000,000 0 5,000,000 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-9 Policy: N-44 Program: N-65 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. ELECTRIC FUND 410 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET HCB Pilot Wire Relay Replacement HCB Pilot Wire Relay Replacement Description This project funds the replacement of existing HCB pilot wire relays with new microprocessor based line differential protective relays to protect the city’s 60kV sub-transmission line sections and equipment from damage due to faults (i.e. short circuits) on the 60kV line sections. Justification The existing electro-mechanical HCB pilot wire differential relays are approaching the end of their useful life and rely on a copper pilot wire cable system running between each substation to maintain communication between the relay pairs located at the ends of each 60kV line section. These pilot wire cables have aged significantly and are the source of repeated failures due to corrosion in connections and splices which cause open circuits, particularly during the winter rainy season. During these periods of interrupted pilot wire communication, the existing pilot wire relays do not provide adequate back-up protection putting the city at risk of an outage should a fault occur on the 60kV line section. Significant Changes 2017-2021 CIP: Project established. Fund: Electric Fund - Operating Category: System Rehabilitation Project Location: Various locations Managing Department: Utilities Initial Project Start: Summer 2017 Initial Project Completion: Spring 2019 Revised Project Start: Revised Project Completion: Project Number: EL-17005 Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund 0 0 0 167,000 167,000 167,000 0 0 501,000 0 501,000 Total 0 0 0 167,000 167,000 167,000 0 0 501,000 0 501,000 ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 411 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 167,000 167,000 167,000 0 0 501,000 0 501,000 Total 0 0 0 167,000 167,000 167,000 0 0 501,000 0 501,000 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Goal: N-9 Policy: N-44 Program: N-63 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 435 FIBER OPTICS FUND FIBER OPTICS FUND FIBER OPTICS FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 437 FIBER OPTIC Overview The City of Palo Alto is the only municipality in California that operates a full suite of City- owned utility services. The most recent addition to this list of services provided to City of Palo Alto residents and customers is the leasing of “dark“ fiber on a fiber optic loop, built by the City in 1996. For the 2017-2021 Capital Improvement Program, expenditures of $3.6 million are pro- grammed, with $1.7 million allocated in Fiscal Year 2017. Major projects funded in the 2017-2021 CIP include the Fiber Optic System Rebuild Project ($1.3 million), Fiber Optics Customer Con- nections ($1.3 million), and Fiber Optics Network System Improvements ($1.0 million). The bud- get for the Fiber Optics Capital Improvement Program is broken into two separate categories: Capacity Improvements and Customer Connections. Capacity Improvements With the advance in technology; increase in online services, and increase in data transmission needs to meet consumer demand; the capability afforded by fiber optic cables is increas- ingly in demand. To ensure reli- able fiber optic service to City of Palo Alto residents and custom- ers, fiber optic system compo- nents (fiber optic cable and splice cabinets) need to be upgraded or added to increase capacity; replaced or protected from damage by animals; and rerouted away from hazardous conditions. Recent Accomplishments Upgraded the downtown backbone between splice points BK-AX-CZ to improve efficiency for customer connections and free up fibers. Converted upgrade of AutoCAD fiber maps to AutoCAD AME GIS system. Infrastructure Inventory CLASSIFICATION QUANTITY Route Miles of Backbone Fiber Cable 42 Miles of Overhead Fiber Optic Cable 25 Miles of Underground Fiber Optic Cable 60 $0 $400,000 $800,000 $1,200,000 $1,600,000 $2,000,000 $2,400,000 2013 Actuals 2015 Actuals FY 2017 Proposed FY 2019 Projected FY 2021 Projected Fiber Optics Fund Capital Expenditures FIBER OPTICS FUND 438 FIBER OPTICS FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 2017-2021 Capital Improvement Program Recurring Projects There is one recurring project in the Capacity Improvements Category: the Fiber Optics Net- work System Improvements. This project extends the “dark“ fiber optic network around Palo Alto through the development of fiber sub-rings and completion of general improvements to the fiber system. The annual funding for this project remains at $200,000 throughout the CIP. Non-Recurring Projects As part of the 2017-2021 Capital Improvement Program, one project is included within this cate- gory: Fiber Optic System Rebuild (Fiscal Year 2017: $1.2 million, total cost $2.4 million). This project is expected to extend through Fiscal Year 2017 and will rebuild portions of the “dark“ fiber optics network. Certain sections of the system have reached capacity limiting the City’s ability to provide fiber optics service to all potential customers. Rebuilding portions of the “dark“ fiber optic network includes installation of additional fiber optic cables in the Stanford Research Park area and replacement of several below ground splice closures with pad-mounted pedestals. Recent Accomplishments Upgraded the dark fiber network from University to Lytton at Bryant to add capacity and improve efficiency for downtown businesses Completed upgrade of fiber maps to Utilities GIS system, enabling a single view of multiple utility infrastructures Conducted a physical audit of the dark fiber network to improve network performance and add capacity Customer Connections As customers continually change their fiber optic needs due to equipment additions, new con- struction, building expansions, building remodels, teardowns and rebuilds, and new building occupancy types, the fiber optics system must evolve to meet these needs. Projects in this cat- egory include work required to meet the needs of customers who have applied for new or upgraded fiber optic service. The connection costs associated with new or upgraded connec- tions are offset by charges to the customer. Recent Accomplishments Several services installed for Stanford University offsite facilities and other customers in the Stanford Research Park area. 2017-2021 Capital Improvement Program Recurring Projects In the Customer Connections category there is one recurring project: Fiber Optics Customer Connections. In the 2017-2021 Capital Improvement Program, recurring funding in this project FIBER OPTICS FUND FIBER OPTICS FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 439 remains at $250,000. This project provides funding for the installation of fiber optic infrastruc- ture for new service connections. Non-Recurring Projects There are no non-recurring projects in this category. Summary of Capital Activity FIBER OPTICS FUND Project Number Project Title FY 2015 Actuals FY 2016 Estimate FY 2017 Proposed FY 2018 FY 2019 FY 2020 FY 2021 5-Year Total Source of Funds Other Revenues FO-10000 Fiber Optics Customer Connections: Connection Charges 161,785 150,000 200,000 200,000 200,000 200,000 200,000 1,000,000 Other Revenues Total 161,785 150,000 200,000 200,000 200,000 200,000 200,000 1,000,000 Total Sources 161,785 150,000 200,000 200,000 200,000 200,000 200,000 1,000,000 Use of Funds Capacity Enhancements FO-10001 Fiber Optics Network System Improvements 173,853 513,218 200,000 200,000 200,000 200,000 200,000 1,000,000 FO-16000 Fiber Optic System Rebuild 0 1,150,000 1,250,000 0 0 0 0 1,250,000 Capacity Enhancements Total 173,853 1,663,218 1,450,000 200,000 200,000 200,000 200,000 2,250,000 Customer Connections FO-10000 Fiber Optics Customer Connections 218,366 364,502 250,000 250,000 250,000 250,000 250,000 1,250,000 Customer Connections Total 218,366 364,502 250,000 250,000 250,000 250,000 250,000 1,250,000 Total Uses 392,219 2,027,720 1,700,000 450,000 450,000 450,000 450,000 3,500,000 FIBER OPTICS FUND 452 FIBER OPTICS FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Fiber Optic System Rebuild Fiber Optic System Rebuild Description This system capacity improvement project rebuilds portions of the "dark" fiber optic network around Palo Alto which, in turn, is leased to parties providing telecommunication services to cit- izens and businesses in Palo Alto. The rebuild projects will install new aerial duct or substruc- tures (conduit and boxes), and additional fiber backbone cable to increase capacity for sections of the dark fiber ring that are at or near capacity, and allow the Utilities Department to meet customer requests for service. The rebuild project areas are mainly comprised of the Stanford Research Park, Palo Alto Internet Exchange, and Downtown areas. Justification The Dark Fiber system was constructed in the early 1990s and started leasing fibers to custom- ers in 1996. Since that time several sections of the dark fiber system have reached capacity and limited the City's ability to serve its customers. This project improves the ability to maintain a competitive market for telecommunications in Palo Alto, accelerating the pace at which high quality, low cost, advanced telecommunications services are delivered to the residents and businesses of Palo Alto. Work included in the project is intended to increase system capac- ity and improve system reliability. Significant Changes 2017-2021 CIP: The budget was reduced by the City Council during the Fiscal Year 2016 budget process. The Fiscal Year 2017 budget reflects this adjustment. Fund: Fiber Optics Category: System Improvements Project Location: Various locations Managing Department: Utilities Initial Project Start: Spring 2016 Initial Project Completion: Spring 2018 Revised Project Start: Revised Project Completion: Project Number: FO-16000 Fiber optic splice closer ready for inspection and work FIBER OPTICS FUND FIBER OPTICS FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 453 Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Fiber Optics Fund 0 1,150,000 1,150,000 1,250,000 0 0 0 0 1,250,000 0 2,400,000 Total 0 1,150,000 1,150,000 1,250,000 0 0 0 0 1,250,000 0 2,400,000 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 1,150,000 1,150,000 1,250,000 0 0 0 0 1,250,000 0 2,400,000 Total 0 1,150,000 1,150,000 1,250,000 0 0 0 0 1,250,000 0 2,400,000 Relationship to Comprehensive Plan Primary Connection Element: Business & Economics Section: Growth Goal: B-3 Policy: B-13 Program: B-4 Potential Board/Commission Review: Architectural Review Board Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 455 GAS FUND GAS FUND GAS FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 457 GAS FUND Overview The City of Palo Alto is the only municipality in California that operates a full suite of City- owned utility services. The municipal gas distribution system began operation in 1917. It pro- vides safe, reliable, and cost effective gas service to residents and customers of Palo Alto. For the 2017-2021 Capital Improvement Program (CIP), approximately $31.1 million is programmed, with $6.3 million allocated in Fiscal Year 2017. Overall, a total of eleven projects are pro- grammed for the 5-year CIP. Major projects funded in the 2017-2021 CIP include Gas Main Replacements (cumulative total of $20.0 million), Gas System Customer Connections ($6.5 mil- lion), and Gas Meters and Regulators ($1.9 million). The budget for the Gas Fund CIP is broken into three separate categories: Customer Connections, Gas Main Replacements, and System Improvements. Customer Connections As customers continually change their gas needs due to equip- ment additions, new construc- tion, building expansions, building remodels, teardowns and rebuilds, and new building occupancy types, the gas system must evolve to meet these needs. The Gas System Cus- tomer Connections project, which is the largest project within the Gas Fund ($1.2 million in Fiscal Year 2017, $6.5 million over the 2017-2021 CIP), is accounted for within this category. This project allows for the completion of work required to meet the needs of customers who have applied for new or upgraded gas service. The Gas Fund pays for a portion of this project, while remaining costs are supported by reimbursements from customers for project work performed by the City. Infrastructure Inventory CLASSIFICATION QUANTITY Total miles of gas main distri- bution system 210.31 miles Total miles of gas service extension to residents and businesses 205.55 miles Number of gas receiving sta- tions 4 $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 2013 Actuals 2015 Actuals FY 2017 Proposed FY 2019 Projected FY 2021 Projected Gas Fund Capital Expendiures GAS FUND 458 GAS FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Recent Accomplishments In Fiscal Year 2015 the Utilities Gas Division completed approximately 195 customer service projects, at a cost of $0.26 million. Recurring Projects A total of $7.6 million is programmed for Customer Connection recurring projects in the 2017- 2021 CIP, with $1.4 million allocated in Fiscal Year 2017. Recurring projects in this category include the following: Gas System Customer Connections (Fiscal Year 2017: $1.2 million; 5-Year CIP: $6.5 million) System Extensions - Unreimbursed (Fiscal Year 2017: $0.2 million; 5-Year CIP: $1.1 million) Non-Recurring Projects There are no non-recurring projects under this category. Gas Main Replacements The Gas Main Replacements category accounts for the replacement of inadequately-sized and structurally deficient gas mains. The Utilities Department coordinates with the Public Works Department’s street maintenance projects to minimize damage to the City’s pavement and maximize cost efficiencies. In the next five years, it is anticipated that 88,380 linear feet of gas mains, or 8 percent of the entire system, will be replaced. The 2017-2021 Proposed CIP includes $20.0 million in funding for projects within this category, with $4.2 million allocated in Fiscal Year 2017. Recent Accomplishments Completed the design and construction of approximately 69,700 linear feet of gas mains and 996 gas service extensions from the City’s main distribution system with the recent CIP project Gas Main Replacement projects 19, 20, & 21. 2017-2021 Capital Improvement Program Recurring Projects There are no recurring projects under this category. Non-Recurring Projects Six Gas Main Replacement projects are included in the 2017-2021 CIP (Fiscal Year 2017: $4.2 mil- lion; 5-Year CIP: $20.0 million) System Improvements To ensure reliable gas services for the City of Palo Alto residents and customers, gas infrastruc- ture must be replaced upon reaching the end of its expected life. The System Improvements GAS FUND GAS FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 459 category includes three projects during the 2017-2021 CIP at a total cost of $3.6 million, with $0.7 million allocated in Fiscal Year 2017. Recent Accomplishments Completed building the gas distribution system model. 2017-2021 Capital Improvement Program Recurring Projects There are three funded recurring projects in the System Improvements category in the 2017- 2021 CIP: Gas Distribution System Improvements (Fiscal Year 2017: $0.2 million, 5-Year CIP: $1.2 million), Gas Equipment and Tools (Fiscal Year 2017: $0.1 million, 5-Year CIP: $0.5 million), and Gas Meters and Regulators (Fiscal Year 2017: $0.4 million, 5-Year CIP: $1.9 million). Non-Recurring Projects There are no non-recurring projects under this category. Please refer to the City of Palo Alto Utilities webpage to confirm project details: http:// www.cityofpaloalto.org/gov/depts/utl/projects/default.asp Summary of Capital Activity GAS FUND Project Number Project Title FY 2015 Actuals FY 2016 Estimate FY 2017 Proposed FY 2018 FY 2019 FY 2020 FY 2021 5-Year Total Source of Funds Other Revenues GS-80017 Gas System, Customer Connections 747,954 850,000 1,017,000 1,047,510 1,078,935 1,111,303 1,144,642 5,399,390 Other Revenue Total 747,954 850,000 1,017,000 1,047,510 1,078,935 1,111,303 1,144,642 5,399,390 Total Sources 747,954 850,000 1,017,000 1,047,510 1,078,935 1,111,303 1,144,642 5,399,390 Use of Funds Customer Connections GS-80017 Gas System, Customer Connections 1,005,525 953,000 1,228,500 1,265,355 1,303,315 1,342,415 1,382,688 6,522,273 GS-03009 System Extensions - Unreimbursed 49,274 100,000 198,500 204,455 210,590 216,908 223,415 1,053,868 Customer Connections Total 1,054,799 1,053,000 1,427,000 1,469,810 1,513,905 1,559,323 1,606,103 7,576,141 Gas Main Replacements GS-09002 Gas Main Replacement - Project 19 1,821,628 496,211 0 0 0 0 0 0 GS-10001 Gas Main Replacement - Project 20 2,443,978 2,297,621 0 0 0 0 0 0 GS-11000 Gas Main Replacement - Project 21 1,447,686 917,251 0 0 0 0 0 0 GAS FUND 460 GAS FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET GS-12001 Gas Main Replacement - Project 22 306,590 3,835,985 0 0 0 0 0 0 GS-13001 Gas Main Replacement - Project 23 0 80,000 3,550,650 0 0 0 0 3,550,650 GS-14003 Gas Main Replacement - Project 24 0 0 640,000 3,100,000 0 0 0 3,740,000 GS-15000 Gas Main Replacement - Project 25 0 0 0 659,000 3,200,000 0 0 3,859,000 GS-16000 Gas Main Replacement - Project 26 0 0 0 0 678,200 3,300,000 0 3,978,200 GS-20000 Gas Main Replacement - Project 27 0 0 0 0 0 700,000 3,400,000 4,100,000 GS-20001 Gas Main Replacement - Project 28 0 0 0 0 0 0 721,000 721,000 Gas Main Replacements Total 6,019,882 7,627,068 4,190,650 3,759,000 3,878,200 4,000,000 4,121,000 19,948,850 System Improvements GS-10000 Gas Station 3 Rebuild 30,125 0 0 0 0 0 0 0 GS-14004 Gas Distribution System Model 7,866 140,472 0 0 0 0 0 0 GS-13002 Gas Equipment and Tools 17,131 80,000 100,000 100,000 100,000 100,000 100,000 500,000 GS-80019 Gas Meters and Regulators 36,891 347,799 355,030 365,681 376,652 387,952 399,591 1,884,906 GS-11002 Gas Distribution System Improvements 334,349 300,000 231,913 238,870 246,036 253,417 261,020 1,231,256 GS-01019 GPS Global Positioning 6,728 1,300 0 0 0 0 0 0 GS-15001 Security at City Gas Receiving Stations 0 150,000 0 0 0 0 0 0 System Improvements Total 433,090 1,019,571 686,943 704,551 722,688 741,369 760,611 3,616,162 Total Uses 7,507,771 9,699,639 6,304,593 5,933,361 6,114,793 6,300,692 6,487,714 31,141,153 Project Number Project Title FY 2015 Actuals FY 2016 Estimate FY 2017 Proposed FY 2018 FY 2019 FY 2020 FY 2021 5-Year Total GAS FUND 480 GAS FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Gas Main Replacement - Project 28 Gas Main Replacement - Project 28 Description This project replaces approximately 12,500 linear feet (which represents 1.1% of the City's Gas distribution system) of leaking, inadequately-sized, and structurally deficient gas mains and ser- vices located on various streets in the University South and Old Palo Alto neighborhoods. Staff identifies problematic mains/services by researching maintenance and leak histories, analyzing performance of the entire gas distribution system, and considering risks ratings of the Distribu- tion Integrity Management Plan. Justification The project will target replacing PVC mains and services, located in business districts, and steel mains and services with ineffective corrosion protection, also known in the industry as cathodic protection. This project is mandatory due to the need to replace aging infrastructure and to reduce the Cityís liability exposure due to PVC and steel gas facilities with ineffective cathodic protection. Significant Changes 2017-2021 CIP: Project established. Fund: Gas Fund - Operating Category: Gas Main Replacements Project Location: University South and Old Palo Alto neighborhoods Managing Department: Utilities Initial Project Start: Summer 2021 Initial Project Completion: Winter 2023 Revised Project Start: Revised Project Completion: Project Number: GS-20001 Gas Main Replacement, January 2016 Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Gas Fund 0 0 0 0 0 0 0 721,000 721,000 0 721,000 Total 0 0 0 0 0 0 0 721,000 721,000 0 721,000 GAS FUND GAS FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 481 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Design 0 0 0 0 0 0 0 721,000 721,000 0 721,000 Total 0 0 0 0 0 0 0 721,000 721,000 0 721,000 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-9 Policy: N-44 Program: N-63 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 519 WASTEWATER COLLECTION FUND WASTEWATER COLLECTION FUND WASTEWATER COLLECTION FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 521 WASTEWATER COLLE Overview The City of Palo Alto is the only municipality in California that operates a full suite of City- owned utility services. The municipal wastewater collection system began operation in 1898 and continues to provide safe, reliable, and cost effective wastewater service to residents and customers of Palo Alto. For the 2017-2021 Capital Improvement Program (CIP), approximately $25.6 million is programmed, with $4.8 million allocated in Fiscal Year 2017. Overall, a total of ten projects are programmed for the 5-year CIP. Major projects funded in the 2017-2021 CIP include Wastewater Collection System Rehabilitation/Augmentation projects (cumulative total of $18.7 million), Sewer Lateral/Manhole Rehabilitation and Replacement ($3.3 million), and Sewer System Customer Connections ($2.1 million). The budget for the Wastewater Collection Fund CIP is broken into two separate categories: Customer Connections and System Improve- ments. Customer Connections As customers continually change their wastewater needs due to equipment additions, new con- struction, building expansions, building remodels, teardowns and rebuilds, and new building occupancy types, the wastewa- ter collection system evolve to meet these needs. The Sewer System Customer Connections project is the only project within this category and includes work required to meet the needs of customers who have applied for new sewer laterals. The Wastewater Fund pays for a portion of this project, while remaining costs are supported by reimbursements from customers for proj- ect work performed by the City. Recent Accomplishments In Fiscal Year 2015 the Utilities Wastewater Division completed over 58 customer service proj- ects with a total cost of $0.3 million. Infrastructure Inventory CLASSIFICATION QUANTITY Total miles of sanitary sewer lines 217 miles Total number of sanitary laterals 18,141 $0 $4,000,000 $8,000,000 $12,000,000 $16,000,000 2013 Actuals 2015 Actuals FY 2017 Proposed FY 2019 Projected FY 2021 Projected Wastewater Collection Fund Capital Expenditures WASTEWATER COLLECTION FUND 522 WASTEWATER COLLECTION FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 2017-2021 Capital Improvement Program Recurring Projects There is only one project within this category, the Sewer System Customer Connections project of $2.1 million. This project funds customer connections and offset by reimbursements from cus- tomers. Non-Recurring Projects There are no non-recurring projects in this category. System Improvement To ensure reliable wastewater services for the City of Palo Alto residents and customers, infra- structure must be replaced upon reaching the end of its useful life. The infrastructure replace- ment program includes projects that will rehabilitate or replace deteriorated pipelines. In the next five years, it is estimated that approximately 91,917 linear feet of wastewater mains will be replaced. Recent Accomplishments Began construction of multi-year CIP projects for Wastewater Collection System Rehabilitation/Augmentation Projects 24, 25, & 26 which includes replacement of 42,398 linear feet of wastewater mains and 779 sewer laterals. Completed the design of 15,753 linear feet of wastewater mains and 259 wastewater laterals as part of CIP project Wastewater Collection System Rehabilitation/Augmentation Projects 27. 2017-2021 Capital Improvement Program Recurring Projects A total of $23.5 million is programmed for System Improvement recurring projects in the 2017- 2021 CIP, with $4.4 million allocated in Fiscal Year 2017. Recurring projects in this category include the following: Wastewater System Improvements (Fiscal Year 2017: $0.2 million; 5-Year CIP: $1.3 million) Wastewater General Equipment and Tools (Fiscal Year 2017: $0.05 million; 5-Year CIP: $0.3 million) Sewer Lateral/Manhole Rehabilitation and Replacement (Fiscal Year 2017: $0.6 million; 5- Year CIP: $3.3 million) Non-Recurring Projects The majority of funding within this category is allocated towards Wastewater Collection System Rehabilitation/Augmentation Projects (cumulative total of $18.7 million). These projects imple- ment high priority rehabilitation, augmentation, and lateral replacement work which reduces inflow of rainfall and ground water into the collection system. The Utilities Department coordi- WASTEWATER COLLECTION FUND WASTEWATER COLLECTION FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 523 nates with the Public Works Department’s street maintenance projects to minimize damage to the City’s pavement and maximize cost efficiencies. Linear footage and locations are subject to change, please refer to the City of Palo Alto Utilities webpage to confirm project details: http://www.cityofpaloalto.org/gov/depts/utl/projects/ default.asp. Summary of Capital Activity WASTEWATER COLLECTION FUND Project Number Project Title FY 2015 Actuals FY 2016 Estimate FY 2017 Proposed FY 2018 FY 2019 FY 2020 FY 2021 5-Year Total Source of Funds Other Revenues WC-80020 Sewer System, Customer Connections 1,385,192 373,098 394,000 405,820 417,995 430,534 443,450 2,091,799 Other Revenue Total 1,385,192 373,098 394,000 405,820 417,995 430,534 443,450 2,091,799 Total Sources 1,385,192 373,098 394,000 405,820 417,995 430,534 443,450 2,091,799 Use of Funds Customer Connections WC-80020 Sewer System, Customer Connections 319,952 373,098 394,000 405,820 417,995 430,534 443,450 2,091,799 Customer Connections Total 319,952 373,098 394,000 405,820 417,995 430,534 443,450 2,091,799 System Improvements WC-99013 Sewer Lateral/Manhole Rehabilitation and Replacement 357,207 1,221,411 618,000 636,540 655,636 675,305 695,564 3,281,045 WC-08012 Wastewater Collection System Rehabilitation/ Augmentation Project 21 36,961 0 0 0 0 0 0 0 WC-09001 Wastewater Collection System Rehabilitation/ Augmentation Project 22 49,901 0 0 0 0 0 0 0 WC-10002 Wastewater Collection System Rehabilitation/ Augmentation Project 23 290,027 982,263 0 0 0 0 0 0 WC-11000 Wastewater Collection System Rehabilitation/ Augmentation Project 24 172,305 2,340,130 0 0 0 0 0 0 WC-12001 Wastewater Collection System Rehabilitation/ Augmentation Project 25 168,802 2,686,175 0 0 0 0 0 0 WC-13001 Wastewater Collection System Rehabilitation/ Augmentation Project 26 108,901 3,163,649 0 0 0 0 0 0 WC-14001 Wastewater Collection System Rehabilitation/ Augmentation Project 27 103,583 3,306,417 0 0 0 0 0 0 WC-15001 Wastewater Collection System Rehabilitation/ Augmentation Project 28 0 330,000 3,183,000 0 0 0 0 3,183,000 WC-16001 Wastewater Collection System Rehabilitation/ Augmentation Project 29 0 0 327,849 3,278,490 0 0 0 3,606,339 WC-17001 Wastewater Collection System Rehabilitation/ Augmentation Project 30 0 0 0 337,684 3,376,845 0 0 3,714,529 WASTEWATER COLLECTION FUND 524 WASTEWATER COLLECTION FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET WC-19001 Wastewater Collection System Rehabilitation/ Augmentation Project 31 0 0 0 0 372,185 3,478,150 0 3,850,335 WC-20000 Wastewater Collection System Rehabilitation/ Augmentation Project 32 0 0 0 0 0 358,249 3,582,495 3,940,744 WC-21000 Wastewater Collection System Rehabilitation/ Augmentation Project 33 0 0 0 0 0 0 368,997 368,997 WC-13002 Wastewater General Equipment and Tools 0 50,000 50,000 50,000 50,000 50,000 50,000 250,000 WC-15002 Wastewater System Improvements 70,721 290,264 239,000 246,000 253,000 260,000 269,000 1,267,000 System Improvements Total 1,358,408 14,370,309 4,417,849 4,548,714 4,707,666 4,821,704 4,966,056 23,461,989 Total Uses 1,678,360 14,743,407 4,811,849 4,954,534 5,125,661 5,252,238 5,409,506 25,553,788 Project Number Project Title FY 2015 Actuals FY 2016 Estimate FY 2017 Proposed FY 2018 FY 2019 FY 2020 FY 2021 5-Year Total WASTEWATER COLLECTION FUND 544 WASTEWATER COLLECTION FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Wastewater Collection System Rehabilitation/Augmentation Project 33 Wastewater Collection System Rehabilitation/Augmentation Project 33 Description This project funds the design and construction of high priority main and lateral replacement work, which reduces inflow of rainfall and ground water into the collection system. The project scope is as yet undetermined but may include approximately 15,000 - 25,000 linear feet for var- ious streets within the City's limits. The project will be comprised of laterals identified in video inspection work or through maintenance records as deficient and in need of replacement. Prior- ity will be given to areas identified by Public Works as targeted work zones ensuring infrastruc- ture coordination among different City departments. Justification The 2004 Collection System Master Plan update indicated certain facilities are in need of enlargement to handle growth and peak flows. The mains selected for replacement and/or rehabilitation are determined by the recommendations for the Master Plan Study; research and analysis of sewer main maintenance records; cleaning and videotaping of sanitary sewer mains; condition assessment; real time flow monitoring of existing sewers; and hydraulic computer modeling. Supplemental Information The mains selected for replacement and/or rehabilitation are determined by the recommenda- tions of the Master Plan Study; research and analysis of sewer main maintenance records; clean- Fund: Wastewater Collection - Operating Category: System Improvements Project Location: Various locations Managing Department: Utilities Initial Project Start: Summer 2021 Initial Project Completion: Winter 2023 Revised Project Start: Revised Project Completion: Project Number: WC-21000 Rehabilitation Equipment WASTEWATER COLLECTION FUND WASTEWATER COLLECTION FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 545 ing and videotaping of sanitary sewer mains; condition assessment; real time flow monitoring of existing sewers; and hydraulic computer modeling. Linear footage and locations are subject to change, please refer to the City of Palo Alto Utilities webpage to confirm project details. Significant Changes 2017-2021 CIP: Project established. Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Wastewater Collection Fund 0 0 0 0 0 0 0 368,997 368,997 3,689,969 4,058,966 Total 0 0 0 0 0 0 0 368,997 368,997 3,689,969 4,058,966 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 0 0 0 0 0 0 3,689,969 3,689,969 Design 0 0 0 0 0 0 0 368,997 368,997 0 368,997 Total 0 0 0 0 0 0 0 368,997 368,997 3,689,969 4,058,966 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-18 Relationship to Comprehensive Plan Secondary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-25 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 581 WATER FUND WATER FUND WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 583 WATER FUND Overview The City of Palo Alto is the only municipality in California that operates a full suite of City- owned utility services. The municipal water distribution system began operation in 1896 and continues to provide safe, reliable, and cost effective water service to residents and customers of Palo Alto. For the 2017-2021 Proposed Capital Improvement Program (CIP), approximately $47.4 million is programmed, with $9.6 million allocated in Fiscal Year 2017. Overall, a total of fifteen projects are programmed for the 5-year CIP. Major projects funded in the 2017-2021 CIP include Water Main Replacements (cumulative total of $33.3 million), Water System Customer Connections ($3.7 million), Water Meters ($2.7 million) and Water, Gas, and Wastewater Utility GIS Data ($2.1 million). The Budget for the Water Fund is broken into three separate categories: Customer Connections, System Improvements, and Water Main Replacements. Customer Connections As customers continually change their water needs due to equip- ment additions, new construc- tion, building expansions, building remodels, teardowns and rebuilds, and new building occupancy types, the water sys- tem must evolve to meet these needs. Projects in this category include work required to meet the needs of customers who have applied for new or upgraded water service. The Water Fund pays for a portion of this project, while remaining costs are supported by reimbursements from customers for project work performed by the City. Recent Accomplishments In Fiscal Year 2015 the Utilities Water Utility completed over 67 customer service projects with a total cost of $0.23 million. Infrastructure Inventory CLASSIFICATION QUANTITY Miles of water main 235.58 miles Number of wells 1 active standby and 7 emer- gency standby Number of reservoirs 4 steel and 3 reinforced con- crete 0 6,000,000 12,000,000 18,000,000 24,000,000 30,000,000 2013 Actuals 2015 Actuals FY 2017 Proposed FY 2019 Projected FY 2021 Projected Water Fund Capital Expenditures WATER FUND 584 WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 2017-2021 Capital Improvement Program Recurring Projects The Water System Customer Connections project is the only project within this category. Over the course of the 2017-2021 CIP, $3.7 million is programmed, with $0.7 million allocated in Fiscal Year 2017. Non-Recurring Projects There are no non-recurring projects in this category. System Improvements To ensure reliable water services for the City of Palo Alto residents and customers, infrastruc- ture must be replaced upon reaching the end of its expected life. The System Improvements category includes eleven projects during the 2017-2021 CIP at a total cost of $10.5 million, with $2.6 million allocated in Fiscal Year 2017. Recent Accomplishments Completed the water distribution system seismic evaluation and condition assessment master study to determine the reliability of water system and seismic stability of water pipelines in the Foothills. Pipeline improvements recommended from this study will be included in future capital improvement projects. Completed 90% construction of concrete water tank rehabilitation work at Boronda Reservoir. 2017-2021 Capital Improvement Program Recurring Projects A total of $10.5 million is programmed for System Improvement recurring projects during the 2017-2021 CIP, with $2.5 million allocated in Fiscal Year 2017. Recurring projects in this category include the following: Water distribution system improvements (Fiscal Year 2017: $0.7 million; 5-Year CIP: $1.8 million) Water Fusion and General Equipment/Tools (Fiscal Year 2017: $0.05 million; 5-Year CIP: $0.3 million) Water Meters (Fiscal Year 2017: $0.6 million; 5-Year CIP: $2.7 million) Water Service Hydrant Replacement (Fiscal Year 2017: $0.4 million; 5-Year CIP: $2.1 million) Water System Supply Improvements (Fiscal Year 2017: $0.2 million; 5-Year CIP: $1.3 million) Water, Gas, Wastewater Utility GIS Data (Fiscal Year 2017: $0.4 million; 5-Year CIP: $2.1 million) Non-Recurring Projects A total of $0.2 million is allocated in Fiscal Year 2017 for one non-recurring project. Funding for the non-recurring project represents funding approved by the City Council in prior fiscal years WATER FUND WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 585 and are recommended to be carried over to Fiscal Year 2017 to complete projects. This project is the Water Recycling Facilities ($0.2 million). There is no funding for non-recurring projects beyond Fiscal Year 2017. Water Main Replacements The Water Main Replacements category accounts for the replacement of inadequately-sized and structurally deficient water mains. In the next five years, it is estimated that approximately 54,717 linear feet of water mains will be replaced. Recent Accomplishments Completed the design and construction of 12,000 linear feet of water mains and 225 services with CIP project WMR 25. 2017-2021 Capital Improvement Program Recurring Projects There are no recurring projects in this category. Non-Recurring Projects The 2017-2021 Proposed CIP includes $33.3 million in funding for six non-recurring projects within this category, with $6.3 million approved for Fiscal Year 2017. The Utilities Department coordinates with the Public Works Department’s street maintenance projects to minimize dam- age to the City’s pavement and maximize cost efficiencies. Summary of Capital Activity WATER FUND Project Number Project Title FY 2015 Actuals FY 2016 Estimate FY 2017 Proposed FY 2018 FY 2019 FY 2020 FY 2021 5-Year Total Source of Funds Transfer from Other Funds Gas Fund WS-02014 Water Gas Wastewater GIS Data 91,667 110,917 122,009 134,209 147,630 152,059 156,621 712,528 Total Gas Fund Transfers 91,667 110,917 122,009 134,209 147,630 152,059 156,621 712,528 Wastewater Collection Fund WS-02014 Water Gas Wastewater GIS Data 91,667 110,917 122,009 134,209 147,630 152,059 156,621 712,528 Total Wastewater Collection Fund 91,667 110,917 122,009 134,209 147,630 152,059 156,621 712,528 Total Transfer from Other Funds 183,334 221,834 244,018 268,418 295,260 304,118 313,242 1,425,056 WATER FUND 586 WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Other Revenues WS-80014 Water Service Hydrant Replacement 1,776 0 0 0 0 0 0 0 WS-80013 Customer Connections 2,150,370 463,000 876,000 902,280 929,348 957,228 985,946 4,650,802 Other Revenue Total 2,152,146 463,000 876,000 902,280 929,348 957,228 985,946 4,650,802 Total Sources 2,335,480 684,834 1,120,018 1,170,698 1,224,608 1,261,346 1,299,188 6,075,858 Use of Funds Customer Connections WS-80013 Water System, Customer Connections 666,872 463,000 690,000 710,700 732,021 753,981 776,601 3,663,303 Customer Connections Total 666,872 463,000 690,000 710,700 732,021 753,981 776,601 3,663,303 System Improvements Asset Management Mobile Deployment 6,308 10,000 82,163 0 0 0 0 82,163 Emergency Water Supply Project 430,778 779,712 0 0 0 0 0 0 Seismic Water System Upgrades 714,139 5,407,094 0 0 0 0 0 0 Water Distribution System Improvements 733,636 210,606 739,000 247,000 254,000 261,620 269,469 1,771,089 Water Fusion and General Equipment/Tools 6,675 15,000 50,000 50,000 50,000 50,000 50,000 250,000 Water Meter Shop Renovations 10,001 0 0 0 0 0 0 0 Water Meters 207,623 535,000 565,000 565,000 500,000 515,000 530,450 2,675,450 Water Recycling Facilities 144,705 243,716 200,000 0 0 0 0 200,000 Water Regulation System Improvements 40,417 1,717,259 0 0 0 0 0 0 Water Reservior Coating Improvements 42,870 2,491,502 0 0 0 0 0 0 Water Service Hydrant Replacement 133,211 100,000 400,000 412,000 424,360 437,091 450,204 2,123,655 Water System Master Plan 192,207 307,793 0 0 0 0 0 0 Water System Supply Improvements 289,494 158,076 239,000 247,000 254,000 261,620 269,469 1,271,089 WS-13004 WS-08002 WS-09000 WS-11003 WS-13002 WS-13006 WS-80015 WS-07001 WS-07000 WS-08001 WS-80014 WS-15004 WS-11004 WS-02014 Water, Gas, Wastewater Utility GIS Data 210,905 332,750 366,025 402,628 442,890 456,177 469,862 2,137,582 System Improvements Total 3,162,969 12,308,508 2,641,188 1,923,628 1,925,250 1,981,508 2,039,454 10,511,028 Water Main Replacements WS-11000 Water Main Replacement - Project 25 380,487 4,857,873 0 0 0 0 0 0 WS-12001 Water Main Replacement - Project 26 22,005 5,954,255 0 0 0 0 0 0 WS-13001 Water Main Replacement - Project 27 0 568,065 5,680,651 0 0 0 0 5,680,651 WS-14001 Water Main Replacement - Project 28 0 0 585,107 5,851,070 0 0 0 6,436,177 WS-15002 Water Main Replacement - Project 29 0 0 0 602,660 6,026,602 0 0 6,629,262 WS-16001 Water Main Replacement - Project 30 0 0 0 0 620,740 6,207,400 0 6,828,140 Project Number Project Title FY 2015 Actuals FY 2016 Estimate FY 2017 Proposed FY 2018 FY 2019 FY 2020 FY 2021 5-Year Total WATER FUND WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 587 WS-19001 Water Main Replacement - Project 31 0 0 0 0 0 639,362 6,396,320 7,035,682 WS-20000 Water Main Replacement - Project 32 0 0 0 0 0 0 658,543 658,543 Water Main Replacements Total 402,492 11,380,193 6,265,758 6,453,730 6,647,342 6,846,762 7,054,863 33,268,455 Total Uses 4,232,333 24,151,701 9,596,946 9,088,058 9,304,613 9,582,251 9,870,918 47,442,786 Project Number Project Title FY 2015 Actuals FY 2016 Estimate FY 2017 Proposed FY 2018 FY 2019 FY 2020 FY 2021 5-Year Total WATER FUND 624 WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Water Main Replacement - Project 32 Water Main Replacement - Project 32 Description Funding for this project is a placeholder that will allow for the design and replacement of struc- turally deficient water mains and appurtenances in Fiscal Years 2021 and 2022. Mains are selected by researching the maintenance history of the system and identifying those that are undersized, corroded, and subject to breaks. The project scope is as yet undetermined but may include 15,000 - 25,000 linear feet of mains and services on various streets within the City. Justification Some mains are inadequate in size to supply required flows and pressures for fire protection, and others are subject to recurring breaks. Supplemental Information Each year the projects are re-evaluated and the highest priority is given to the most deterio- rated portions of the system. Linear footage and locations are subject to change, please refer to the City of Palo Alto Utilities webpage to confirm project details. Fund: Water Fund - Operating Category: Water Main Replacements Project Location: Various Locations Managing Department: Utilities Initial Project Start: Summer 2021 Initial Project Completion: Winter 2023 Revised Project Start: Revised Project Completion: Project Number: WS-20000 Installed 16" HDPE pipe waiting to be backfilled Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Water Fund 0 0 0 0 0 0 0 658,543 658,543 0 658,543 Total 0 0 0 0 0 0 0 658,543 658,543 0 658,543 WATER FUND WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 625 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 0 0 0 0 0 0 6,588,210 6,588,210 Design 0 0 0 0 0 0 0 658,543 658,543 0 658,543 Total 0 0 0 0 0 0 0 658,543 658,543 6,588,210 7,246,753 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-20 Relationship to Comprehensive Plan Secondary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-19 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 629 TECHNOLOGY FUND TECHNOLOGY FUND 654 TECHNOLOGY FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Utilities Customer Bill System Improvements Utilities Customer Bill System Improvements Description This project provides regulatory enhancements and improved security for the Utilities billing system. Through the implementation of this recurring project, the Utilities Department will be responsive to new legislation and legal requirements. Securing customer sensitive information and complying with Payment Card Industry (PCI) data security standards will continue to be a priority as well. Justification This project provides software system updates to meet mandatory security, regulatory, and governing requirements. This includes reviewing the various Meter-to-Cash business processes, the My Utilities Account online customer portal, reporting tools, bill print software, and the Cus- tomer Relationship Management (CRM) solution for the Utilities Billing System. The Enterprise Funds share proportionately in the costs of this project. Significant Changes This project has traditionally been a recurring project, with new funding being transferred to the Technology Fund from the various enterprise funds each year. We are extending funding into Fiscal Year 2017 to address a required technical upgrade to the Utilities bill print and electronic vaulting software as well as proceed with a scheduled upgrade to the My Utilities Account self- customer service portal to allow for mobile optimized viewing and enhanced functionality. Fund: Technology Fund Category: Department Technology Upgrades and Improvements Project Location: Various Managing Department: Information Technology Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: TE-10001 Utilities Customer Billing System Improvements TECHNOLOGY FUND TECHNOLOGY FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 655 Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Technology Fund N/A 5,002 0 0 0 0 0 0 0 0 N/A Transfer from Electric Fund N/A 119,415 24,572 122,856 0 0 0 0 122,856 0 N/A Transfer from Fiber Optics Fund N/A 915 188 941 0 0 0 0 941 0 N/A Transfer from Gas Fund N/A 45,992 9,463 47,317 0 0 0 0 47,317 0 N/A Transfer from Refuse Fund N/A 27,914 5,744 28,718 0 0 0 0 28,718 0 N/A Transfer From Storm Drainage Fund N/A 5,970 1,228 6,142 0 0 0 0 6,142 0 N/A Transfer from Wastewater Collection Fund N/A 15,412 3,171 15,856 0 0 0 0 15,856 0 N/A Transfer from Water Fund N/A 27,381 5,634 28,170 0 0 0 0 28,170 0 N/A Total N/A 248,001 50,000 250,000 0 0 0 0 250,000 0 N/A Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 248,002 0 0 0 0 0 0 0 0 N/A Other N/A 0 50,000 250,000 0 0 0 0 250,000 0 N/A Total N/A 248,002 50,000 250,000 0 0 0 0 250,000 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Customer Service Goal: C-2 Policy: C-10 Program: C-12 Environmental Impact Analysis: This project is categorically exempt from CEQA under section 15301. • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 3 Fiscal Year 2017 Proposed Capital Budget City Council Patrick Burt, Mayor Gregory Scharff, Vice Mayor Marc Berman Tom DuBois Eric Filseth Karen Holman Liz Kniss Greg Schmid Cory Wolbach James Keene, City Manager Suzanne Mason, Assistant City Manager Ed Shikada, Assistant City Manager Lalo Perez, Director of Administrative Services/Chief Financial Officer David Ramberg & Joe Saccio, Assistant Director of Administrative Services Kiely Nose, Budget Manager, Office of Management and Budget Michael Bruckner, Sr. Management Analyst, Office of Management and Budget Eric Filseth, Finance Committee Chair CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 325 ENTERPRISE FUND PROJECTS Enterprise Fund Projects CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 343 ELECTRIC FUND ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 345 ELECTRIC FUND Overview The City of Palo Alto is the only municipality in California that operates a full suite of City- owned utility services. The municipal electric power system began operation in 1900 and con- tinues to provide safe, reliable, cost effective electric service to residents and customers of Palo Alto. For the 2017-2021 Capital Improvement Program (CIP), approximately $79.2 million is pro- grammed, with $21.6 million budgeted in Fiscal Year 2017, of which $1.9 million is reappropriated funds from Fiscal Year 2016. Overall, a total of thirty-five projects are programmed over the 5 year CIP. Major projects funded in the 2017-2021 Proposed CIP include Electric Customer Connections ($16.7 million), Electric System Improvements ($10 million), Smart Grid Technology Installa- tion ($12.9 million), and Electric Pole Replacements for Fiber to the Home ($8 million). The bud- get for the Electric Fund CIP is broken into three separate cate- gories: Customer Connections, System Improvements, and Undergrounding Projects. Customer Connections As customers continually change their electric power needs due to equipment additions, new construction, building expansions, building remodels, teardowns and rebuilds, and new building occupancy types, the electric system must evolve to meet these needs. The Electric Customer Infrastructure Inventory CLASSIFICATION QUANTITY Miles of 60kV sub transmission lines 18 miles Substations (w/300 MVA total capacity)9 Traffic Signals (intersections) maintained 101 Streetlights maintained 6,600 Overhead Primary Distribution 117 miles Underground Primary Distribution 175.21 miles Overhead Secondary Distribution 93.77 miles Underground Secondary Distribution 74 miles $0 $4,000,000 $8,000,000 $12,000,000 $16,000,000 $20,000,000 $24,000,000 $28,000,000 2013 Actuals 2015 Actuals FY 2017 Proposed FY 2019 Projected FY 2021 Projected Electric Fund Capital Expenditures ELECTRIC FUND 346 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Connections Project, which is the largest project within the Electric Fund ($3.1 million in Fiscal Year 2017, $16.7 million over the 2017-2021 CIP), is accounted for within this category. This proj- ect allows for the completion of work required to meet the needs of customers who have applied for new or upgraded electric service, need temporary power for construction, or require other services. The Electric Fund pays for a portion of this project, while remaining costs are supported by reimbursements from customers, telephone, and cable television companies for project work performed by the City. Recent Accomplishments In Fiscal Year 2015 the Utilities Electric Division completed over 286 customer service projects with a total cost of $1.9 million and revenue of $1.4 million. 2017-2021 Capital Improvement Program Recurring Projects The Electric Customer Connections project, described above, is the only recurring project in this category. Non-Recurring Projects A total of $30.2 million is being allocated in the 2017-2021 CIP for non-recurring projects. Plans for the following projects have been submitted to the City for review and engineering: VA Hospital Load Expansion (Fiscal Year 2017: $3.0 million; 5-Year CIP: $5.0 million) Stanford Load Expansion (Fiscal Year 2017: $0.5 million; 5-Year CIP: $0.5 million) Electric Pole Replacements for Fiber to the Home or Google Fiber (Fiscal Year 2017: $5.0 million; 5-Year CIP: $8.0 million)} System Improvements Necessary elements in ensuring reliable electric service to City of Palo Alto residents and cus- tomers include the replacement of electric system components before they reach their end of life and the installation of protective equipment to minimize the impact of system problems. Projects in the System Improvements category allow for a variety of improvements, including the replacement/upgrade of old cables and equipment and bringing designs up to current stan- dard, installation of protective equipment and switches, conversion of the electric system from 4,160 Volts (4kV) to 12,470 Volts (12kV), and installation of capacitors to improve efficiency. The 2017-2021 CIP includes total funding of $56.2 million in this category, with $17.7 million allo- cated in Fiscal Year 2017. Significant projects in this category include Electric Distribution Sys- tem Improvements ($10.0 million), Smart Grid Technology Installation ($12.9 million), and various projects to rebuild underground districts and substation components ($16.7 million). Recent Accomplishments Rebuilt the electric underground system in several locations along San Antonio Road between East Charleston Road and Middlefield Road, including Green House Condo area ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 347 Upgraded the servers and software dedicated to the Supervisory Control and Data Acquisition System (SCADA) used to monitor the electric, water, and gas utility distribution systems Added security cameras at two electric substations Upgraded protective relays for Quarry substation Completed installation of new primary electric service to facilitate Stanford Hospital upgrades; and replacement of primary cables that were reaching the end of their useful life on two Quarry Feeders feeding the hospital. Completed replacement of 40 wood poles identified to be unsafe for its intended purpose and workers. Completed 25 other system improvement projects dealing with replacement of deteriorated facilities or to improve system operation and reliability. 2017-2021 Capital Improvement Program Recurring Projects A total of $17 million is programmed for System Improvements recurring projects in the 2017- 2021 CIP, with $4.3 million allocated in Fiscal Year 2017. Recurring projects in this category include the following: Communication System Improvements (Fiscal Year 2017: $0.1 million; 5-Year CIP: $0.5 million) Electric Distribution System Improvements (Fiscal Year 2017: $2.0 million; 5-Year CIP: $10.0 million) Electric Utility GIS (Fiscal Year 2017: $0.2 million; 5-Year CIP: $0.8 million) SCADA System Upgrades (Fiscal Year 2017: $0.3 million; 5-Year CIP: $0.5 million) Smart Grid Technology Installation (Fiscal Year 2017: $0.7 million; 5-Year CIP: $12.9 million) Substation Facility Improvements (Fiscal Year 2017: $0.2 million; 5-Year CIP: $1.0 million) Substation Protection Improvements (Fiscal Year 2017: $0.5 million; 5-Year CIP: $1.7 million) Underground System Rebuild (Fiscal Year 2017: $0.6 million; 5-Year CIP: $1.9 million) Non-Recurring Projects A total of $13.4 million is allocated in the 2017-2021 CIP for non-recurring System Improvement projects. Approximately $6.9 million is for the continuation of projects approved by the City Council in prior years. Three new projects are recommended as within this category, including the following: Rebuild Underground District 23 (5-Year CIP: $0.8 million) East Meadow Circle 4/12kV Conversion (Fiscal Year 2017: $0.1 million; 5-Year CIP: $1.8 million) Substation Break Replacement (Fiscal Year 2017: $0.2 million, 5-Year CIP: $0.6 million) 60kV Relay Replacement (Fiscal Year 2017: $0.2 million, 5-Year CIP: $0.5 million) ELECTRIC FUND 348 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Undergrounding Projects The City of Palo Alto began a program to underground overhead electric, telephone, and cable TV facilities in 1965 with a project along Oregon Expressway. Since that time 45 Underground Districts have been formed. The undergrounding of electrical lines is a joint process between the City and AT&T, due to joint ownership of the poles, and Comcast which leases pole space from AT&T. All three Utilities share in the cost of the installation of underground conduit and boxes necessary to enclose and protect wires and equipment. The City typically takes the lead in the design, bidding, and construction processes with AT&T and Comcast reimbursing the City for construction and administrative costs. During the 2017-2021 Capital Improvement Program period, $6.4 million is allocated for Undergrounding Projects, with $0.9 million allocated in Fis- cal Year 2017. Recent Accomplishment Underground District 47 – Completed the installation of underground substructures (conduits and boxes) in the area bounded by Middlefield Road/Addison Avenue/Cowper Street/Homer Avenue. Underground District 46 - Completed preliminary designs for undergrounding electric lines. 2017-2021 Capital Improvement Program Recurring Projects There are no recurring projects under this category. Non-Recurring Projects A total of $6.4 million is allocated in the 2017-2021 CIP for non-recurring Undergrounding proj- ects, with $0.9 million allocated in Fiscal Year 2017. All of the funds for the projects were approved by the City Council in prior years. Significant projects in this category include the fol- lowing: Underground District 42 ($2.3 million), which will underground overhead utility facilities in the area near Embarcadero Road/Emerson Street/Middlefield Road Underground District 43 ($2.7 million) which will underground overhead utility facilities in the area along Alma Street and Embarcadero Road Underground District 46 ($0.7 million), which will underground overhead utility facilities in the area near El Camino Real/Arastradero Road/West Charleston Road ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 349 Summary of Capital Activity ELECTRIC FUND Project Number Project Title FY 2015 Actuals FY 2016 Estimate FY 2017 Proposed FY 2018 FY 2019 FY 2020 FY 2021 5-Year Total Source of Funds Transfers from Other Funds Gas Fund EL-11014 Smart Grid Technology 0 0 136,335 300,000 3,375,000 0 0 3,811,335 Total Gas Tax Fund Transfers 0 0 136,335 300,000 3,375,000 0 0 3,811,335 Water Fund EL-11014 Smart Grid Technology 0 0 136,335 300,000 3,375,000 0 3,811,335 Total Water Fund Transfers 0 0 136,335 300,000 3,375,000 0 0 3,811,335 Total Transfers from Other Funds 0 0 272,670 600,000 6,750,000 0 0 7,622,670 Reimbursement from Customers, Telephone, and Cable Television Companies EL-98003 Electric System Improvements (19,289)250,000 190,000 200,000 210,000 210,000 210,000 1,020,000 EL-89028 Electric Customer Connections 1,429,428 2,160,800 1,650,000 1,650,000 1,700,000 1,700,000 1,700,000 8,400,000 EL-17006 Electric Pole Replacements for FTTP 0 0 4,000,000 2,400,000 0 0 0 6,400,000 EL-17004 Stanfrod - Customer Load Requirements 0 0 400,000 0 0 0 0 400,000 EL-17003 VA Hospital - Customer Load Requirements 0 0 2,400,000 1,600,000 0 0 0 4,000,000 Reimbursement from Customers, Telephone, and Cable Television Companies Total 1,410,139 2,410,800 8,640,000 5,850,000 1,910,000 1,910,000 1,910,000 20,220,000 Total Sources 1,410,139 2,410,800 8,912,670 6,450,000 8,660,000 1,910,000 1,910,000 27,842,670 Use of Funds Customer Connections EL-89028 Electric Customer Connections 1,701,435 4,236,859 3,108,000 3,219,888 3,335,804 3,455,893 3,580,305 16,699,890 Customer Connections Total 1,701,435 4,236,859 3,108,000 3,219,888 3,335,804 3,455,893 3,580,305 16,699,890 System Improvements EL-06001 230 Kv Electric Intertie 46,155 7,000 173,360 0 0 0 0 173,360 EL-10008 Advanced Metering Infrastructure (AMI) System 9,783 436 0 0 0 0 0 EL-16002 Capacitor Bank Installation 0 75,000 275,000 0 0 0 275,000 EL-14000 Coleridge/Cowper/Tennyson 4/12Kv Conversion 0 0 0 120,000 400,000 0 0 520,000 EL-15000 Colorado/Hopkins System Improvement 0 50,000 775,000 750,000 0 0 0 1,525,000 EL-89031 Communications System Improvements 68,437 207,699 100,000 100,000 100,000 100,000 100,000 500,000 ELECTRIC FUND 350 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET EL-08000 East Charleston 4/12Kv Conversion 322,725 60,861 0 0 0 0 0 0 EL-17001 East Meadow Circles 4/12Kv Conversion 0 0 50,000 1,750,000 0 0 0 1,800,000 EL-13000 Edgewood/Wildwood 4Kv Tie 0 0 50,000 400,000 0 0 450,000 EL-05000 El Camino Underground Rebuild 57,389 0 0 0 0 0 0 0 EL-17006 Electric Pole Replacement for FTTP 0 0 5,000,000 3,000,000 0 0 0 8,000,000 EL-15001 Electric Substation Battery Replacement 0 400,000 0 0 0 0 0 0 EL-98003 Electric System Improvements 2,005,036 4,449,933 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 10,000,000 EL-02011 Electric Utility Geographic Information System 67,135 200,000 165,000 165,000 165,000 165,000 165,000 825,000 EL-04010 Foothills System Rebuild 0 0 0 0 0 0 0 0 EL-12002 Hanover 22 - Transformer Replacement 0 0 0 0 0 0 0 0 EL-17005 HCB Pilot Wire Relay Replacement 0 0 167,000 167,000 167,000 0 0 501,000 EL-11004 Hewlett Subdivision Rebuild Los Trancos Road 0 0 0 0 0 0 0 0 EL-14004 Maybell 1&2 4/12Kv Conversion 255,478 188,649 0 0 0 0 0 0 EL-09000 Middlefield Underground Rebuild 29,906 378,021 0 0 0 0 0 0 EL-11007 Rebuild Greenhouse Condo Area 307,473 26,118 0 0 0 0 0 0 EL-12000 Rebuild Underground District 12 424,351 0 0 0 0 0 0 0 EL-11003 Rebuild Underground District 15 4,812 144,181 307,434 0 0 0 0 307,434 EL-13003 Rebuild Underground District 16 0 0 300,000 0 0 0 0 300,000 EL-11006 Rebuild Underground District 18 49,413 468,542 0 0 0 0 0 0 EL-11008 Rebuild Underground District 19 2,602 98,871 0 0 0 0 0 0 EL-14002 Rebuild Underground District 20 0 0 950,000 500,000 500,000 0 0 1,950,000 EL-17000 Rebuild Underground District 23 0 0 0 200,000 600,000 0 0 800,000 EL-10006 Rebuild Underground District 24 226,746 1,836,153 0 0 0 0 0 0 EL-19000 Rebuild Underground District 25 0 0 0 0 50,000 500,000 0 550,000 EL-16000 Rebuild Underground District 26 0 60,000 50,000 0 650,000 0 0 700,000 EL-14005 Reconfigure Quarry Feeders 69,169 106,024 774,758 0 0 0 0 774,758 EL-13002 Relocate Quarry/Hopkins Substation 60Kv Line (A & B)0 0 0 100,000 750,000 0 0 850,000 EL-13006 Sand Hill/Quarry Road 12Kv Tie 4,374 183,126 0 0 0 0 0 0 EL-02010 SCADA System Upgrades 64,226 171,699 270,000 60,000 65,000 65,000 65,000 525,000 EL-11014 Smart Grid Technology Installation 65,625 223,210 672,670 1,000,000 11,250,000 0 0 12,922,670 EL-17004 Stanford University Customer Load Requirements 0 0 500,000 0 0 0 0 500,000 EL-10009 Street Light System Conversion Project 666,918 25,000 0 0 0 0 0 0 EL-17002 Substation 60Kv Breaker Replacement 150,000 150,000 150,000 150,000 0 600,000 EL-89044 Substation Facility Improvements 258,214 210,270 195,000 195,000 195,000 200,000 200,000 985,000 EL-89038 Substation Protection Improvements 232,348 619,521 450,000 300,000 300,000 300,000 300,000 1,650,000 EL-16003 Substation Security 0 50,000 200,000 0 0 0 0 200,000 EL-16001 Underground System Rebuild 0 20,000 580,000 300,000 350,000 350,000 350,000 1,930,000 EL-13008 Upgrade Electric Estimating System 0 45,000 103,650 0 0 0 0 103,650 EL-06003 Utility Control Center Upgrades 0 0 400,000 0 0 0 0 400,000 Project Number Project Title FY 2015 Actuals FY 2016 Estimate FY 2017 Proposed FY 2018 FY 2019 FY 2020 FY 2021 5-Year Total ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 351 EL-04012 Utility Site Security Improvements 31,126 524,148 50,000 50,000 300,000 50,000 50,000 500,000 EL-17003 VA Hospital Customer Load Requirements 0 0 3,000,000 2,000,000 0 0 0 5,000,000 EL-09004 West Charleston/Wilkie to South City Limit 4/12 Kv Conversion 701 0 0 0 0 0 0 0 System Improvements Total 5,270,142 10,829,462 17,658,872 12,957,000 18,392,000 3,880,000 3,230,000 56,117,872 Undergrounding Projects EL-13007 Underground Distribution System Security 8,638 50,000 240,534 300,000 300,000 0 0 840,534 EL-08001 Underground District 42 - Embarcadero Road, Emerson, Middlefield 0 0 0 50,000 2,000,000 250,000 0 2,300,000 EL-11009 Underground District 43 - Alma/Embarcadero 0 0 0 150,000 2,000,000 500,000 2,650,000 EL-12001 Underground District 46 - Charleston/El Camino Real 3,535 62,497 622,315 0 0 0 0 622,315 EL-11010 Underground District 47 - Middlefield, Homer, Webster, Addison 195,283 2,198,525 0 0 0 0 0 0 Undergrounding Projects Total 207,456 2,311,022 862,849 350,000 2,450,000 2,250,000 500,000 6,412,849 Total Uses 7,179,033 17,377,343 21,629,721 16,526,888 24,177,804 9,585,893 7,310,305 79,230,611 Project Number Project Title FY 2015 Actuals FY 2016 Estimate FY 2017 Proposed FY 2018 FY 2019 FY 2020 FY 2021 5-Year Total MARCH 2016, LEGEND PROPOSED UNDERGROUND PROJECTS 42 108001) 43 11009) 46 0< 0,07R,01 140 020,1! , 47 0<-D� ec. .7. l*0)o) PROPOSED UNDERGROUND REBUILD A3 �, nJ n! 4S 46 Re.. DISTRIC.1 ,.11 il3CM 411 412 .B:11 l C ),111c 410 (14c011 414 11 5. < 116 0.1C,a1 A18 Sa) A23 1. .E11 .,.,S..c PROPOSED 60KV SYSTEM REBUILD 1,08-2036 2003,20, 101,1011 1011-.9 1016,1011 2011 2020 201,10, 81 48100018 01010 108 8101. 81 03002; «&2019 PROPOSED 4/12KV CONVERSION C2 0 090417 1O 90 00100ER 09/00 10.01-2015 CS F+nHG Ill /I92)/l O. I. teen. M0112! 20102018 Cb 00/ n.Uw C8 Ewo 14 / 147500 2020 C9 — �19- off 412ti1 114000 C10 110113401 142 0,0449100 1,4001) 2019 2:110 C11 EOS:MEA 4200 0, 7001 1017 20)8 PROPOSED SYSTEM IMPROVEMENT D2 ree.;e0S fInoosF R3 04 111)491107011110000LORADO SYSTEM WHMP.2200 -5101) DS 0011 D6 1,11011S AREAS D7 15110nO .0,011 VARIOUS ARFAS NON D8 c llS:.eEAs 139 RELAY REPIACE,ENTS - VARIOUS AREAS 1.101.5) 010 POLE BENInC.1n7 8=s FOR FT, - VARIOUS AREAS ON 201,20,5 1015 2014,20,5 1016102.,1 1016-.1 2011-1010 101110. ELECTRIC FUND 2017-2021 CAPITAL IMPROVEMENT PROGRAM Alto ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 355 Customer Connections ELECTRIC FUND 356 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Electric Customer Connections Electric Customer Connections Description This project allows for the installation of services, transformers, and meters for new customers; upgrading of existing services; temporary service connections; and overhead and underground extensions for new or existing customers. Justification The project provides funding for the connection of new customers and the upgrading of exist- ing services. These are critical functions for providing electrical service to the City's customers. During a typical year, over 200 electric services are installed or upgraded in the City. Supplemental Information Budget amounts requested for work covered by this project are based on historical expendi- tures and growth projections. The Electric Fund pays for a portion of this project, while remain- ing costs are supported by reimbursements from customers, telephone, and cable television companies for project work performed by the City. Fund: Electric Fund - Operating Category: Customer Connections Project Location: Various locations Managing Department: Utilities Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: EL-89028 Electric Troubleman installing an electric meter to provide service to a customer Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund N/A 3,248,565 2,076,059 1,458,000 1,569,888 1,635,804 1,755,893 1,880,305 8,299,890 0 N/A Other N/A 1,550,000 2,160,800 1,650,000 1,650,000 1,700,000 1,700,000 1,700,000 8,400,000 0 N/A Total N/A 4,798,565 4,236,859 3,108,000 3,219,888 3,335,804 3,455,893 3,580,305 16,699,890 0 N/A ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 357 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 4,798,565 4,236,859 3,108,000 3,219,888 3,335,804 3,455,893 3,580,305 16,699,890 0 N/A Total N/A 4,798,565 4,236,859 3,108,000 3,219,888 3,335,804 3,455,893 3,580,305 16,699,890 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-9 Policy: N-44 Relationship to Comprehensive Plan Secondary Connection Element: Land Use and Community Design Section: Public Ways Goal: L-9 Policy: L-79 Program: L-81 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 359 System Improvements ELECTRIC FUND 360 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 230 kV Electric Intertie 230 kV Electric Intertie Description Funding for this project is used to perform technical feasibility studies to determine the general project requirements to establish a 230 kV electric intertie line and construct a 230/60 kV sub- station to connect the City's electric system directly to the 230kV transmission line. The City is in discussions with Stanford and Stanford Linear Accelerator Laboratory (SLAC), one of ten Department of Energy (DOE) Office of Science laboratories, on the shared interest and benefits in the new intertie. If this project comes to fruition, the estimated total project cost for a sec- ondary transmission line is $40 - $50 million and could be shared with both Stanford and SLAC/DOE. If this project is cancelled, staff will seek funding for an alternative solution to pro- vide a second transmission source to Palo Alto. Justification This new electric line will allow the City to bypass the local transmission fees charged by PG&E. This transmission line will provide the City with an alternate source of power that can serve it during emergencies, such as the plane crash in 2010 that impacted electric power to the entire city. Significant Changes 2017-2021 CIP: Project completion has been moved out as discussions with Stanford and SLAC/DOE are ongoing and no agreement has been finalized. Cooperation of these two entities is necessary for this project to move forward. Fund: Electric Fund - Operating Category: System Improvements Project Location: National Accelerator Laboratory Substation Managing Department: Utilities Initial Project Start: Spring 2013 Initial Project Completion: Fall 2015 Revised Project Start: Revised Project Completion: Spring 2017 Project Number: EL-06001 Possible electric substation connection point to existing 60 kV system ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 361 Operating Impact Projected net annual savings resulting from the interconnection fee reduction will be approxi- mately $2,000,000 based on projected energy purchases and the price difference between 115 kV and 230 kV service. Lower voltage services are more expensive than higher voltage ser- vices. Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund 260,304 80,360 7,000 173,360 0 0 0 0 173,360 0 440,664 Total 260,304 80,360 7,000 173,360 0 0 0 0 173,360 0 440,664 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction 208,243 80,360 7,000 173,360 0 0 0 0 173,360 0 388,603 Design Total 52,060 260,303 0 80,360 0 7,000 0 173,360 0 0 0 0 0 0 0 0 0 173,360 0 0 52,060 440,663 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-9 Policy: N-44 Relationship to Comprehensive Plan Secondary Connection Element: Land Use and Community Design Section: Public Ways Goal: L-9 Policy: L-79 Program: L-80,L-81 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. ELECTRIC FUND 362 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Capacitor Bank Installation Capacitor Bank Installation Description The City of Palo Alto is required to maintain a Power Factor greater than 0.95 at its main supply point as part of its agreement with the Northern California Power Association. The power fac- tor is the ratio of the power that it draws from the mains supply and the power that it actually consumes. This project will install capacitor banks at electric substations and on distribution lines to ensure this requirement is met. Justification In recent years, the Power Factor, as measured at the service point from PG&E transmission lines, has dropped below the required 0.95 lagging amount. In order to raise the power factor above the required limit, The Utilities Department will install up to 10 mega volt ampere reactive (MVAR) of capacitors at various locations on the electric system. This project will increase the Power Factor to meet the current requirements and it is anticipated that the installation of the Capacitor Bank will allow for the Power Factor to be sufficient for the next 7 years. Significant Changes 2017-2021 CIP: Shifting project priorities have caused the delay for the completion of this proj- ect. Fund: Electric Fund - Operating Category: System Improvements Project Location: Electric Substation Managing Department: Utilities Initial Project Start: Fall 2014 Initial Project Completion: Spring 2016 Revised Project Start: Fall 2015 Revised Project Completion: Spring 2017 Project Number: EL-16002 Capacitor Bank Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund 0 75,000 75,000 275,000 0 0 0 0 275,000 0 350,000 Total 0 75,000 75,000 275,000 0 0 0 0 275,000 0 350,000 ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 363 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 75,000 275,000 0 0 0 0 275,000 0 350,000 Design 0 75,000 0 0 0 0 0 0 0 0 0 Total 0 75,000 75,000 275,000 0 0 0 0 275,000 0 350,000 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-9 Policy: N-44 Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. ELECTRIC FUND 364 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Coleridge/Cowper/Tennyson 4/12kV Conversion Coleridge/Cowper/Tennyson 4/12kV Conversion Description The project will convert the primary electric distribution system in the Coleridge/Cowper/Ten- nyson area from 4 kV to 12 kV. Justification Because of the difference in voltage, the 4kV and 12kV systems cannot be directly connected and used to back up one another. Due to prior 4kV to 12 kV conversions in adjacent areas, this area, now at 4kV, needs to be converted to 12kV so that adequate circuit connections can be restored to allow customers to be switched from one circuit to another during normal or emer- gency conditions. This will improve operating flexibility of the system and service reliability to customers in this area. In addition, there is equipment in the area that has reached the end of its useful life and needs to be replaced. Converting to 12 kV will eliminate the need to replace this equipment as it is not needed at that voltage level. Fund: Electric Fund - Operating Category: System Improvements Project Location: Coleridge/Cowper/Tennyson area Managing Department: Utilities Initial Project Start: Spring 2016 Initial Project Completion: Spring 2017 Revised Project Start: Revised Project Completion: Spring 2018 Project Number: EL-14000 Overhead crews working on overhead lines Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund 0 0 0 0 120,000 400,000 0 0 520,000 0 520,000 Total 0 0 0 0 120,000 400,000 0 0 520,000 0 520,000 ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 365 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Design 0 0 0 0 120,000 400,000 0 0 520,000 0 520,000 Total 0 0 0 0 120,000 400,000 0 0 520,000 0 520,000 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-9 Policy: N-44 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. ELECTRIC FUND 366 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Colorado/Hopkins System Improvement Colorado/Hopkins System Improvement Description This project will replace deteriorating equipment which will increase system capacity and improve service reliability for the areas served by Hopkins and Colorado substations and adja- cent substations. Justification Transformers at both Hopkins and Colorado Substations are near the end of their useful life, along with much of the other equipment at Hopkins. Hopkins is a 4kV substation and has no ties to other substations, so there is no backup to serve customers should there be a cata- strophic problem at Hopkins. Supplemental Information To accommodate the replacement of this equipment, the ability to serve projected future elec- trical load projections, and provide back up service to Hopkins, this project will evaluate solu- tions to best solve the multitude of issues. Funding for Fiscal Year 2016 is for engineering only. Budget requests for future years is an estimate based currently available information. Fund: Electric Fund - Operating Category: System Improvements Project Location: Hopkins and Colorodo Substations Managing Department: Utilities Initial Project Start: Spring 2015 Initial Project Completion: Spring 2018 Revised Project Start: Revised Project Completion: Spring 2019 Project Number: EL-15000 Electric Substation obscured by trees Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund 0 75,000 50,000 775,000 750,000 0 0 0 1,525,000 0 1,575,000 Total 0 75,000 50,000 775,000 750,000 0 0 0 1,525,000 0 1,575,000 ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 367 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 50,000 775,000 750,000 0 0 0 1,525,000 0 1,575,000 Design 0 75,000 0 0 0 0 0 0 0 0 0 Total 0 75,000 50,000 775,000 750,000 0 0 0 1,525,000 0 1,575,000 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-9 Policy: N-44 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. ELECTRIC FUND 368 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Communications System Improvements Communications System Improvements Description This project installs copper wire cable systems, high frequency coaxial cable, fiber optic cable, and related equipment to provide communications services for traffic signal coordination, tele- phone links, computer data transmission, and the Electric Supervisory Control and Data Acqui- sition (SCADA) system. Justification Installation of communication lines is essential for the provision of City services. The broadband system provides communication between the Utility Control Center to Substations and field equipment; and between substation protection equipment. This annual project funds, as neces- sary, expansion of the system and replacement of deteriorating facilities. Fund: Electric Fund - Operating Category: System Improvements Project Location: Various locations Managing Department: Utilities Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: EL-89031 Traffic/Fiber technicians repairing the city fiber optic cables Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 168,006 0 0 0 0 0 0 0 0 N/A Electric Fund N/A 39,693 207,699 100,000 100,000 100,000 100,000 100,000 500,000 0 N/A Total N/A 207,699 207,699 100,000 100,000 100,000 100,000 100,000 500,000 0 N/A ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 369 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 39,693 207,699 100,000 100,000 100,000 100,000 100,000 500,000 0 N/A Electric Fund N/A 168,006 0 0 0 0 0 0 0 0 N/A Total N/A 207,699 207,699 100,000 100,000 100,000 100,000 100,000 500,000 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Land Use and Community Design Section: Public Ways Goal: L-9 Policy: L-79 Program: L-81 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302 ELECTRIC FUND 370 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET East Meadow Circles 4/12kV Conversion East Meadow Circles 4/12kV Conversion Description The project will convert the primary electric distribution system in the East Charleston/Alma Street/East Meadow Drive/Middlefield Road area from 4 kV to 12 kV. Justification Because of the difference in voltage, the 4kV and 12kV systems cannot be directly connected and used to back up one another. Due to prior 4kV to 12 kV conversions in adjacent areas, this area, now at 4kV, needs to be converted to 12kV so that adequate circuit connections can be restored to allow customers to be switched from one circuit to another during normal or emer- gency conditions. This will improve operating flexibility of the system and service reliability to customers in this area. In addition, there is equipment in the area that has reached the end of its useful life and needs to be replaced. Converting to 12 kV will eliminate the need to replace this equipment as it is not needed at that voltage level. Significant Changes 2017-2021 CIP: Project established. Fund: Electric Fund - Operating Category: System Improvements Project Location: East Charleston/Alma Street/East Meadow Drive/Middlefield Road area Managing Department: Utilities Initial Project Start: Summer 2017 Initial Project Completion: Spring 2018 Revised Project Start: Revised Project Completion: Project Number: EL-17001 Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund 0 0 0 50,000 1,750,000 0 0 0 1,800,000 0 1,800,000 Total 0 0 0 50,000 1,750,000 0 0 0 1,800,000 0 1,800,000 ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 371 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 50,000 1,750,000 0 0 0 1,800,000 0 1,800,000 Total 0 0 0 50,000 1,750,000 0 0 0 1,800,000 0 1,800,000 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Goal: N-9 Policy: N-44 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. ELECTRIC FUND 372 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Edgewood/Wildwood 4 kV Tie Edgewood/Wildwood 4 kV Tie Description This project will install new overhead wire to connect the HO-3 and HO-7 electric feeders in the Edgewood/Wildwood area. Justification Because of the voltage difference, the 4kV and 12kV systems cannot be directly connected and provide redundancy. When the East Meadow 4 kV feeders are converted to 12 kV, the 4 kV back-up connections from East Meadow to Hopkins substations will be eliminated. In order to maintain reliable service in the event of a feeder outage at Hopkins substation, this project will construct a tie between the HO-3 and HO-7 feeders. Fund: Electric Fund - Operating Category: System Improvements Project Location: Edgewood/Wildwood area Managing Department: Utilities Initial Project Start: Spring 2016 Initial Project Completion: Spring 2017 Revised Project Start: Revised Project Completion: Spring 2019 Project Number: EL-13000 Electric linemen working on overhead electric connection Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund 0 0 0 0 50,000 400,000 0 0 450,000 0 450,000 Total 0 0 0 0 50,000 400,000 0 0 450,000 0 450,000 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 0 0 400,000 0 0 400,000 0 400,000 Design 0 0 0 0 50,000 0 0 0 50,000 0 50,000 Total 0 0 0 0 50,000 400,000 0 0 450,000 0 450,000 ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 373 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-9 Policy: N-44 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. ELECTRIC FUND 374 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Electric Pole Replacements for FTTP Electric Pole Replacements for FTTP Description City of Palo Alto Utilities staff has had several meetings with Google regarding their interest in Palo Alto for their new internet service product, Google Fiber. Google intends to start construc- tion in those neighborhoods with electric utility poles in Palo Alto where they can attach the fiber optic cable. This work will significantly impact the workload for Utilities’ administrative, engineering, and operations staff. Justification Google Fiber requires deploying fiber optic cable throughout the City of Palo Alto attaching to utility poles and also some pulled into underground conduit. This project requires the Electric Utility to replace about 20% of its poles to accommodate the proposed services. Currently, Google has an aggressive schedule of submitting permit applications in February 2016, request- ing to attach to electric utility poles and to start construction by Spring 2016. The current staff- ing levels of administrative, engineering, and operations employees in Utilities cannot support Googleís project and meet their project schedule, while maintaining normal CPA new customer, CIP, and maintenance jobs. Utilities staff is proposing a new budget for 3 years to allow for tem- porary staff recruitment or issuing an RFP to contract a firm to provide the necessary services. Supplemental Information Google will reimburse the City of Palo Alto for a majority of the costs for this project, but the City will incur some costs to correct existing conditions on the poles. Staff has provided a pre- liminary estimate for revenue, but the exact amount is not known at this time. Fund: Electric Fund - Operating Category: System Improvements Project Location: Various locations Managing Department: Utilities Initial Project Start: Summer 2017 Initial Project Completion: Summer 2018 Revised Project Start: Revised Project Completion: Project Number: EL-17006 ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 375 Significant Changes 2017-2021 CIP: Project established. Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund 0 0 0 1,000,000 600,000 0 0 0 1,600,000 0 1,600,000 Revenue from Other Agencies 0 0 0 4,000,000 2,400,000 0 0 0 6,400,000 0 6,400,000 Total 0 0 0 5,000,000 3,000,000 0 0 0 8,000,000 0 8,000,000 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Planning and Engineering 0 0 0 5,000,000 3,000,000 0 0 0 8,000,000 0 8,000,000 Total 0 0 0 5,000,000 3,000,000 0 0 0 8,000,000 0 8,000,000 Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Customer Service Goal: C-2 Policy: C-9 Program: C-12 Relationship to Comprehensive Plan Secondary Connection Element: Land Use and Community Design Section: Public Ways Goal: L-9 Policy: L-79 Program: L-81 Potential Board/Commission Review: Architectural Review Board Utilities Advisory Commission Environmental Impact Analysis: May Require Environmental Review ELECTRIC FUND 376 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Electric System Improvements Electric System Improvements Description This project provides funding as needed to improve the Electric Distribution System. Typical activities include: increasing system capacity for load growth, replacing deteriorated capital facilities, reconfiguring/adding to the system to improve service reliability, repairing and replac- ing storm damaged equipment, and making general improvements to the system. Justification Electric system service reliability and adequate system capacity are critical to providing a high level of service to customers in Palo Alto. When service interruptions occur, customers may experience significant economic losses. The City must continuously evaluate service reliability needs and make improvements to the system to maintain top-level service to City customers. Supplemental Information Other Revenues includes reimbursements from the telephone company for work performed on their behalf by City. Fund: Electric Fund - Operating Category: System Improvements Project Location: Various locations Managing Department: Utilities Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: EL-98003 Electric crews working in an underground vault terminating cables Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund N/A 4,567,340 4,199,933 1,810,000 1,800,000 1,790,000 1,790,000 1,790,000 8,980,000 0 N/A Other N/A 180,000 250,000 190,000 200,000 210,000 210,000 210,000 1,020,000 0 N/A Total N/A 4,747,340 4,449,933 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 10,000,000 0 N/A ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 377 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 4,747,340 4,449,933 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 10,000,000 0 N/A Total N/A 4,747,340 4,449,933 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 10,000,000 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-9 Policy: N-44 Relationship to Comprehensive Plan Secondary Connection Element: Land Use and Community Design Section: Public Ways Goal: L-9 Policy: L-79 Program: L-81 Potential Board/Commission Review: Architectural Review Board Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. ELECTRIC FUND 378 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Electric Utility Geographic Information System Electric Utility Geographic Information System Description This project will enhance the citywide Geographical Information System (GIS). The primary emphasis will be to provide a compatible user interface and estimating software, to edit and update data which will reside in the citywide GIS. The project includes the migration of the existing electric and fiber networks to a unified mapping solution compatible with the citywide GIS. Justification GIS has grown from being a set of special purpose computer applications to being an informa- tion tool that serves all segments of the City. Applications have been developed which make GIS information accessible to hundreds of users, which has greatly increased the value of the system. Funding in the CIP is for ongoing mapping system modifications to facilitate technical requirements, external contractor system support, and anticipated system upgrades. Fund: Electric Fund - Operating Category: System Improvements Project Location: Software maintenance & update Managing Department: Utilities Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: EL-02011 View of City of Palo Alto GIS System Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund N/A 462,168 200,000 165,000 165,000 165,000 165,000 165,000 825,000 0 N/A Total N/A 462,168 200,000 165,000 165,000 165,000 165,000 165,000 825,000 0 N/A ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 379 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 462,168 200,000 165,000 165,000 165,000 165,000 165,000 825,000 0 N/A Total N/A 462,168 200,000 165,000 165,000 165,000 165,000 165,000 825,000 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Governance Section: Public Participation Goal: G-1 Policy: G-3 Relationship to Comprehensive Plan Secondary Connection Element: Transportation Section: Reducing Auto Use Goal: T-1 Policy: T-3 Program: T-10 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. ELECTRIC FUND 380 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Rebuild Underground District 25 Rebuild Underground District 25 Description This project will rebuild and replace the underground electric system in Underground District 25. Work will include the replacement of deteriorated electrical cables, transformers, switches, and enclosures. Installation of new equipment will bring the electrical system up to current con- struction standards. Justification The electric system included in the scope of work of Underground District 25 was installed in 1983. Underground District 25 includes Orme Street between Los Robles Avenue and Juana Briones School. The cables are at the end of their expected life of 30 years and need to be replaced. In addition, most of the other equipment (transformers, junctions, etc.) were installed in subsurface enclosures that have standing water, garden chemicals, oil, or other corrosive materials that impact equipment life. Fund: Electric Fund - Operating Category: System Improvements Project Location: Orme Street between Los Robles Avenue and Juana Briones School Managing Department: Utilities Initial Project Start: Winter 2018 Initial Project Completion: Spring 2020 Revised Project Start: Revised Project Completion: Project Number: EL-19000 Orme Street (part of Underground District 25) Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund 0 0 0 0 0 50,000 500,000 0 550,000 0 550,000 Total 0 0 0 0 0 50,000 500,000 0 550,000 0 550,000 ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 381 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 0 0 0 500,000 0 500,000 0 500,000 Design 0 0 0 0 0 50,000 0 0 50,000 0 50,000 Total 0 0 0 0 0 50,000 500,000 0 550,000 0 550,000 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-9 Policy: N-44 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. ELECTRIC FUND 382 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Reconfigure Quarry Feeders Reconfigure Quarry Feeders Description This project includes the reconfiguration of how distribution circuits are connected to each sub- station transformer at Quarry Substation. The circuits will be more evenly divided between the 4 transformers at this substation to provide greater operating flexibility during outages. Justification Quarry Substation serves the Stanford Mall/Hospital area along with a majority of the University Avenue downtown area. It has four substation transformers and ten circuits emanate from the substation to serve different areas. Two transformers have four circuits each while two (for- merly at Alma Substation) have one circuit each. Load growth in the area requires the transfer of some of the circuits to the newly installed transformers to maintain operating flexibility and balance the load. If this work is not performed, outages that affect two of the transformers could be longer in duration, leading to customer dissatisfaction, business impact, and financial losses. Significant Changes The designs for this project are being adjusted to facilitate new electric loads proposed by Stan- ford Hospital and other significant projects in the area. The new design will incorporate work required to serve the new loads and will be constructed after the customer service work is com- pleted. Fund: Electric Fund - Operating Category: System Improvements Project Location: Quarry Substation Managing Department: Utilities Initial Project Start: Spring 2013 Initial Project Completion: Spring 2015 Revised Project Start: Revised Project Completion: Spring 2017 Project Number: EL-14005 Substation crews installing underground facilities ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 383 Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund 149,672 380,782 106,024 774,758 0 0 0 0 774,758 0 1,030,454 Total 149,672 380,782 106,024 774,758 0 0 0 0 774,758 0 1,030,454 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction 119,737 380,782 106,024 774,758 0 0 0 0 774,758 0 1,000,519 Design 29,934 0 0 0 0 0 0 0 0 0 29,934 Total 149,671 380,782 106,024 774,758 0 0 0 0 774,758 0 1,030,453 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-9 Policy: N-44 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. ELECTRIC FUND 384 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Relocate Quarry/Hopkins Substation 60 kV Line (A & B) Relocate Quarry/Hopkins Substation 60 kV Line (A & B) Description This project relocates the Quarry-Hopkins (QR/HO) 60kV sub-transmission line and associated facilities in Lanes A & B, and the nearby Alma Street area to a more physically accessible route for electric crews and equipment. When the Alma substation was removed, the current trans- mission line route was no longer required. This project will investigate relocating this line to a more acceptable location that meets technical and aesthetic requirements. Justification The old 60 kV overhead lines are located in a congested area of downtown and are difficult to access and maintain. The existing configuration is awkward and space consuming. Fund: Electric Fund - Operating Category: System Improvements Project Location: Various locations Managing Department: Utilities Initial Project Start: Spring 2018 Initial Project Completion: Spring 2020 Revised Project Start: Revised Project Completion: Project Number: EL-13002 Electric linement working on 60 kV overhead lines Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund 0 0 0 0 100,000 750,000 0 0 850,000 0 850,000 Total 0 0 0 0 100,000 750,000 0 0 850,000 0 850,000 ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 385 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 0 0 750,000 0 0 750,000 0 750,000 Design 0 0 0 0 100,000 0 0 0 100,000 0 100,000 Total 0 0 0 0 100,000 750,000 0 0 850,000 0 850,000 Relationship to Comprehensive Plan Primary Connection Element: Land Use and Community Design Section: Public Ways Goal: L-9 Policy: L-79 Program: L-81 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. ELECTRIC FUND 386 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET SCADA System Upgrades SCADA System Upgrades Description This project will upgrade the Supervisory Control and Data Acquisition (SCADA) system hard- ware. The SCADA system is used to monitor and control critical assets of the City's electric, gas, and water utility systems from the Utility Control Center. Justification An upgrade in Fiscal Year 2017 will be necessary to keep the hardware and software current, to handle the ever increasing demands on the system and maintain manufacturer/industry sup- port. In addition, the Water-Gas-Wastewater SCADA that was newly integrated into the Electric SCADA system has placed additional burden on the system. Supplemental Information Annual budget amounts are for minor system upgrades/replacements. Full system upgrades are on a 3 to 4 year cycle. Fund: Electric Fund - Operating Category: System Improvements Project Location: SCADA System at Utility Control Center Managing Department: Utilities Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: EL-02010 SCADA Technologist configuring SCADA software Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund N/A 187,490 171,699 270,000 60,000 65,000 65,000 65,000 525,000 0 N/A Total N/A 187,490 171,699 270,000 60,000 65,000 65,000 65,000 525,000 0 N/A ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 387 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 187,490 171,699 270,000 60,000 65,000 65,000 65,000 525,000 0 N/A Design N/A 0 0 0 0 0 0 0 0 0 N/A Total N/A 187,490 171,699 270,000 60,000 65,000 65,000 65,000 525,000 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Parks and Public Facilities Goal: C-4 Policy: C-24 Program: C-19 Relationship to Comprehensive Plan Secondary Connection Element: Transportation Section: Reducing Auto Use Goal: T-1 Policy: T-3 Program: T-10 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. ELECTRIC FUND 388 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Smart Grid Technology Installation Smart Grid Technology Installation Description This project will implement portions of the Smart Grid Road Map that can be cost effectively applied to the City's electric, gas, and water utility systems, resulting in operating cost savings, environmental benefits, plus an increased quality of life and productivity for the residents and businesses of Palo Alto. Justification The Smart Grid will help the City of Palo Alto achieve its goals in: energy conservation, carbon emission reduction, efficient utilization of aging infrastructure, improved system reliability, inte- gration of distributed energy resources, accommodation of battery charging demands, cost- effective commodity purchases, and meeting customer demands for information. Supplemental Information This project could include aspects dealing with: data management system, smart metering, fiber optic infrastructure improvement, distribution system automation, outage management system, load management system, demand-side management system, leak and revenue protection, cus- tomer interface to energy usage, and customer equipment control. Fund: Electric Fund - Operating Category: System Improvements Project Location: Various locations Managing Department: Utilities Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: EL-11014 Sample of energy use information that could be available to customers ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 389 Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund N/A 377,661 223,210 400,000 400,000 4,500,000 0 0 5,300,000 0 N/A Transfer from Gas Fund N/A 0 0 136,335 300,000 3,375,000 0 0 3,811,335 0 N/A Transfer from Water Fund N/A 0 0 136,335 300,000 3,375,000 0 0 3,811,335 0 N/A Total N/A 377,661 223,210 672,670 1,000,000 11,250,000 0 0 12,922,670 0 N/A Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 377,661 223,210 672,670 1,000,000 11,250,000 0 0 12,922,670 0 N/A Total N/A 377,661 223,210 672,670 1,000,000 11,250,000 0 0 12,922,670 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Transportation Section: Reducing Auto Use Goal: T-1 Policy: T-3 Program: T-10 Relationship to Comprehensive Plan Secondary Connection Element: Natural Environment Section: Energy Goal: N-9 Policy: N-44 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. ELECTRIC FUND 390 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Stanford - Customer Load Requirements Stanford - Customer Load Requirements Description This project allows for the installation of new primary conduits, vaults, cables and equipment to serve new customer demands in the Quarry Road/Welch Road/Sand Hill Road area. Justification The recent expansion of the Stanford Medical facilities and the Stanford Shopping Center has exhausted the existing facilities of Quarry Road Substation to serve any new customers in the Quarry Road/Welch Road/ Sand Hill Road area. This project will provide for new primary feeder outlets which will provide ample capability to serve both existing and new customers for the next 5 years. Significant Changes 2017-2021 CIP: Project established. Fund: Electric Fund - Operating Category: System Improvements Project Location: Stanford Medical facilities and the Stanford Shopping Center Managing Department: Utilities Initial Project Start: Summer 2017 Initial Project Completion: Winter 2017 Revised Project Start: Revised Project Completion: Project Number: EL-17004 Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund 0 0 0 100,000 0 0 0 0 100,000 0 100,000 Revenue from Other Agencies 0 0 0 400,000 0 0 0 0 400,000 0 400,000 Total 0 0 0 500,000 0 0 0 0 500,000 0 500,000 ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 391 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 500,000 0 0 0 0 500,000 0 500,000 Total 0 0 0 500,000 0 0 0 0 500,000 0 500,000 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-9 Policy: N-44 Program: N-63 Relationship to Comprehensive Plan Secondary Connection Element: Community Services & Facilities Section: Customer Service Goal: C-2 Policy: C-9 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. ELECTRIC FUND 392 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Substation 60kV Breaker Replacement Substation 60kV Breaker Replacement Description This project funds the purchase and replacement of high voltage circuit breakers that intercon- nect the nine electric substations and two power switching stations due circuit breakers that are reaching their recommended reliable useful life expectancy and/or are now underrated for the use. Justification A recent 60kV circuit breaker study performed for the City of Palo Alto found that the inter- rupting current rating of two of these circuit breakers on the system is not high enough to han- dle the expected maximum fault current level. Three other circuit breakers are marginal with respect to their interrupting current rating. Six additional older oil circuit breakers are obsolete and have reached or are reaching the ends of their operable lives. One oil circuit breaker has experienced a non-catastrophic failure. Should there be a fault, it could result in a failure of any one of these twelve circuit breakers to operate properly, damage to the breaker, and a pro- longed electric outage. These circuit breakers are integral and critical cornerstones of the elec- tric utility transmission system. The project will be a 10 year program replacing 1-2 breakers per year. Significant Changes 2017-2021 CIP: Project established. Fund: Electric Fund - Operating Category: System Improvements Project Location: Various locations Managing Department: Utilities Initial Project Start: Summer 2017 Initial Project Completion: Summer 2020 Revised Project Start: Revised Project Completion: Project Number: EL-17002 ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 393 Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund 0 0 0 150,000 150,000 150,000 150,000 0 600,000 0 600,000 Total 0 0 0 150,000 150,000 150,000 150,000 0 600,000 0 600,000 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 150,000 150,000 150,000 150,000 0 600,000 0 600,000 Total 0 0 0 150,000 150,000 150,000 150,000 0 600,000 0 600,000 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Goal: N-9 Policy: N-44 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. ELECTRIC FUND 394 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Substation Facility Improvements Substation Facility Improvements Description This project involves several improvements to each of the 9 substation facilities in Palo Alto, including installation and replacement of capacitors, replacement of various substation equip- ment, renovation of security fences and entry gates, paving of driveways and parking areas in substations, upgrading of substation drainage systems, replacement of Remote Terminal Unit (RTU) equipment, bus voltage monitoring and local area network (LAN) connections, as well as other improvements. Justification The electric substations are the link between the transmission and distribution systems. At the substations, voltage levels are converted and distribution circuits branch out to provide power throughout the City. They are a key element to providing reliable electric service to residents and customers in Palo Alto. Fund: Electric Fund - Operating Category: System Improvements Project Location: Various locations Managing Department: Utilities Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: EL-89044 Electric Substation transformer and bus structure Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund N/A 210,270 210,270 195,000 195,000 195,000 200,000 200,000 985,000 0 N/A Total N/A 210,270 210,270 195,000 195,000 195,000 200,000 200,000 985,000 0 N/A ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 395 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 210,270 210,270 195,000 195,000 195,000 200,000 200,000 985,000 0 N/A Total N/A 210,270 210,270 195,000 195,000 195,000 200,000 200,000 985,000 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-9 Policy: N-44 Potential Board/Commission Review: Architectural Review Board Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. ELECTRIC FUND 396 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Substation Protection Improvements Substation Protection Improvements Description This project funds the purchase of protective overcurrent relays, circuit breakers, high voltage fuses, and other equipment used at electric substations to protect the substation equipment and circuits emanating from the substation from damage due to faults (i.e. short circuits) on the electric system. Justification The electric substations are the link between the transmission and distribution systems. At the substations, voltage levels are converted and distribution circuits branch out to provide power throughout the City. They are a key element to providing reliable electric service to residents and customers in Palo Alto. Protective equipment is used to stop power flow when there are problems on the electric system. As the electric distribution system becomes more complex and the reliability more critical, maintenance of these systems is imperative. This project includes replacement of old protective devices and controls that no longer provide the level of functionality now required for more sophisticated and sensitive devices. Properly designed and operating protective systems are required to ensure public safety, reduce equip- ment damage, and minimize the impact of faults (reduction in outage durations). Fund: Electric Fund - Operating Category: System Improvements Project Location: Electric Substations Managing Department: Utilities Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: EL-89038 Electric Substation used to distribute power to City of Palo Alto customers Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund N/A 619,521 619,521 450,000 300,000 300,000 300,000 300,000 1,650,000 0 N/A Total N/A 619,521 619,521 450,000 300,000 300,000 300,000 300,000 1,650,000 0 N/A ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 397 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 619,521 619,521 450,000 300,000 300,000 300,000 300,000 1,650,000 0 N/A Total N/A 619,521 619,521 450,000 300,000 300,000 300,000 300,000 1,650,000 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Land Use and Community Design Section: Public Ways Goal: L-9 Policy: L-79 Program: L-81 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. ELECTRIC FUND 398 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Substation Security Substation Security Description The electric substations are a key element of the Electric Distribution System used to provide electricity to residents and customers of Palo Alto. This project will evaluate options for pro- tecting electric substations from outside vandalism and intrusion. If necessary, fences and other protections will be repaired. Staff will issue a Professional Services request for proposal with construction, if warranted and approved, to follow. Justification The recent incident involving PG&E's Metcalf Substation in South San Jose has brought about increased security concerns regarding utility sites and systems. A severe disruption to one of Palo Alto's substations could result in outages of an extended period. The Utility Site Security Improvements project (EL-04012) is addressing the aspects of visual security such as digital cameras, while this project will address the need for physical protection. Significant Changes 2017-2021 CIP: Shifting project priorities have caused the delay for the completion of this proj- ect. Fund: Electric Fund - Operating Category: System Improvements Project Location: Colorado Substation Managing Department: Utilities Initial Project Start: Fall 2015 Initial Project Completion: Spring 2017 Revised Project Start: Revised Project Completion: Winter 2018 Project Number: EL-16003 Substation perimeter wall providing security for the enclosed equipment Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund 0 50,000 50,000 200,000 0 0 0 0 200,000 0 250,000 Total 0 50,000 50,000 200,000 0 0 0 0 200,000 0 250,000 ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 399 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 200,000 0 0 0 0 200,000 0 200,000 Planning and Engineering 0 50,000 50,000 0 0 0 0 0 0 0 50,000 Total 0 50,000 50,000 200,000 0 0 0 0 200,000 0 250,000 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-9 Policy: N-44 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. ELECTRIC FUND 400 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Upgrade Electric Estimating System Upgrade Electric Estimating System Description This project will upgrade the existing Electric estimating software used for preparing job esti- mates by integrating engineering analysis, adding predefined standards and templates, and by integrating documentation, materials ordering, and work management functions. Justification The existing Electric estimating software does not integrate the materials requisition, engineer- ing calculation, labor requirements, and drawing functions necessary to produce an estimate. The integration of these functions will reduce the time needed to prepare estimates and improve the accuracy and consistency of the engineering drawings, material lists, and map updates. Fund: Electric Fund - Operating Category: System Improvements Project Location: Software maintenance & update Managing Department: Utilities Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: EL-13008 Screenshot of software used to prepare project estimates Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund N/A 148,650 45,000 103,650 0 0 0 0 103,650 0 N/A Total N/A 148,650 45,000 103,650 0 0 0 0 103,650 0 N/A Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Planning and Engineering N/A 148,650 45,000 103,650 0 0 0 0 103,650 0 N/A Total N/A 148,650 45,000 103,650 0 0 0 0 103,650 0 N/A ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 401 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-9 Policy: N-44 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. ELECTRIC FUND 402 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Utility Control Center Upgrades Utility Control Center Upgrades Description This project will make improvements to the Utility Control Center including: upgrade to the existing lighting system, improvement to the operation map display by installing large video dis- play panels, and improvement to the system-wide security monitoring facilities. Justification The Utilities Control Center is used to coordinate the activities of the City's Electric Utility. Within the facility there are large maps for monitoring the control of the system, video surveil- lance feeds from other utility facilities and the Supervisory Control and Data Acquisition (SCADA) system. This project will improve efficiency and operation of the room by updating map displays and the surveillance facilities to newer technologies. Supplemental Information This project reflects expenditures in prior years for unrelated improvements in the Utility Con- trol Center. Funding is added to this project on an as-needed basis. Significant Changes 2017-2021 CIP: Shifting project priorities have caused the delay for the completion of this proj- ect. Fund: Electric Fund - Operating Category: System Improvements Project Location: Utility Control Center Managing Department: Utilities Initial Project Start: Winter 2009 Initial Project Completion: Fall 2010 Revised Project Start: Revised Project Completion: Spring 2018 Project Number: EL-06003 System Operator overseeing electric distribution system operations ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 403 Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund 383,275 0 0 400,000 0 0 0 0 400,000 0 783,275 Total 383,275 0 0 400,000 0 0 0 0 400,000 0 783,275 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction 306,620 0 0 400,000 0 0 0 0 400,000 0 706,620 Design 76,655 0 0 0 0 0 0 0 0 0 76,655 Total 383,275 0 0 400,000 0 0 0 0 400,000 0 783,275 Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Parks and Public Facilities Goal: C-3 Policy: C-24 Program: C-19 Potential Board/Commission Review: Architectural Review Board Utilities Advisory Commission Environmental Impact Analysis: Possible exemption. ELECTRIC FUND 404 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Utility Site Security Improvements Utility Site Security Improvements Description Utilities' Water and Gas Distribution Systems provide services to residents and businesses that are fundamental necessities of living and working in Palo Alto. This project will add electronic security systems at utility sites to protect equipment at electric substations, water pumping plants, reservoirs, and gas stations from intrusion and vandalism. Justification The project is to address a utility site assessment that was completed in 2003 identifying secu- rity risks and methods of mitigation for City utility facilities. Recent incidents have increased security concerns regarding utility sites and systems. This CIP is implementing the recommen- dations in the site assessment report. Equipment is installed at two to three facilities per year. Through March 2016, 7 of 9 electric utility sites were completed. Significant Changes 2017-2021 CIP: Shifting project priorities have caused the delay for the completion of this proj- ect. Fund: Electric Fund - Operating Category: System Improvements Project Location: Various locations Managing Department: Utilities Initial Project Start: Spring 2004 Initial Project Completion: Spring 2016 Revised Project Start: Revised Project Completion: Summer 2018 Project Number: EL-04012 Security cameras for system security and monitoring Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund 1,014,136 524,148 524,148 50,000 50,000 300,000 50,000 50,000 500,000 0 2,038,284 Total 1,014,136 524,148 524,148 50,000 50,000 300,000 50,000 50,000 500,000 0 2,038,284 ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 405 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction 811,308 524,148 524,148 50,000 50,000 300,000 50,000 50,000 500,000 0 1,835,456 Design 202,827 0 0 0 0 0 0 0 0 0 202,827 Total 1,014,135 524,148 524,148 50,000 50,000 300,000 50,000 50,000 500,000 0 2,038,283 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Air Quality Goal: N-5 Policy: N-26 Program: N-40 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. ELECTRIC FUND 406 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET VA Hospital - Customer Load Requirements VA Hospital - Customer Load Requirements Description The VA Hospital is outgrowing the capability of the electric infrastructure the City has tradition- ally provided. Hanover and Maybell Substations currently serve the VA Hospital campus with 2 electric lines, as the federal guidelines require full redundancy of electric power in case one line goes down. The VA Hospital is reaching the full capacity of a single line this year in 2016. Addi- tional capacity is required and will be met using mostly existing underground conduits in the short term. In the long term, a new 60kV substation will be installed to provide the full capacity needed. Justification The interim, short term solution will be implemented in one year by using existing underground pathways to upsize the existing 12kV wires and to bring additional 12kV wires to the VA from Hanover and Maybell Substations to meet the rapid load growth needs, since the long term solution cannot be built and energized for a minimum of 2.5 years from now. The long term, 60kV substation addition is necessary to meet both the VA Hospital's power needs and the needs of other 12kV power users in the neighborhood as the local 12kV system cannot also sup- port the full VA Hospital load projections by 2022. A 60kV substation takes its power from a higher level in the electric system that has adequate capacity. Without this improvement, in the event of an outage in the Hanover/Maybell area once the VA Hospital is at full load, the majority of Customers would experience sustained timeframes until the power can be restored. Fund: Electric Fund - Operating Category: System Improvements Project Location: VA Hospital Managing Department: Utilities Initial Project Start: Summer 2017 Initial Project Completion: Summer 2018 Revised Project Start: Revised Project Completion: Project Number: EL-17003 ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 407 Significant Changes 2017-2021 CIP: Project established. Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund 0 0 0 600,000 400,000 0 0 0 1,000,000 0 1,000,000 Revenue from Other Agencies 0 0 0 2,400,000 1,600,000 0 0 0 4,000,000 0 4,000,000 Total 0 0 0 3,000,000 2,000,000 0 0 0 5,000,000 0 5,000,000 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 3,000,000 2,000,000 0 0 0 5,000,000 0 5,000,000 Total 0 0 0 3,000,000 2,000,000 0 0 0 5,000,000 0 5,000,000 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-9 Policy: N-44 Program: N-65 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 409 System Rehabilitation ELECTRIC FUND 410 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET HCB Pilot Wire Relay Replacement HCB Pilot Wire Relay Replacement Description This project funds the replacement of existing HCB pilot wire relays with new microprocessor based line differential protective relays to protect the city’s 60kV sub-transmission line sections and equipment from damage due to faults (i.e. short circuits) on the 60kV line sections. Justification The existing electro-mechanical HCB pilot wire differential relays are approaching the end of their useful life and rely on a copper pilot wire cable system running between each substation to maintain communication between the relay pairs located at the ends of each 60kV line section. These pilot wire cables have aged significantly and are the source of repeated failures due to corrosion in connections and splices which cause open circuits, particularly during the winter rainy season. During these periods of interrupted pilot wire communication, the existing pilot wire relays do not provide adequate back-up protection putting the city at risk of an outage should a fault occur on the 60kV line section. Significant Changes 2017-2021 CIP: Project established. Fund: Electric Fund - Operating Category: System Rehabilitation Project Location: Various locations Managing Department: Utilities Initial Project Start: Summer 2017 Initial Project Completion: Spring 2019 Revised Project Start: Revised Project Completion: Project Number: EL-17005 Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund 0 0 0 167,000 167,000 167,000 0 0 501,000 0 501,000 Total 0 0 0 167,000 167,000 167,000 0 0 501,000 0 501,000 ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 411 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 167,000 167,000 167,000 0 0 501,000 0 501,000 Total 0 0 0 167,000 167,000 167,000 0 0 501,000 0 501,000 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Goal: N-9 Policy: N-44 Program: N-63 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. ELECTRIC FUND 412 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Rebuild Underground District 15 Rebuild Underground District 15 Description This project will rebuild and replace the underground electric system in Underground District 15. The area is bounded by Los Palos, Glenbrook, Pomona, and Arastradero. Work will include the replacement of deteriorated electrical cable, transformers and enclosures. Installation of new equipment will bring the electrical system up to current construction standards. Justification The underground system serving Underground District 15 was installed in 1973. The cables and equipment in the area have exceeded their expected life of 30 years. In addition, most of the equipment and cables were installed in subsurface enclosures that have standing water in win- ter. The water reduces the life of the equipment and electrical connections and requires that rebuilding be performed on the facilities. Significant Changes 2017-2021 CIP: Shifting project priorities and the loss of Engineering staff have caused the delay for the completion of this project. Fund: Electric Fund - Operating Category: System Rehabilitation Project Location: Area bounded by Los Palos, Glenbrook, Pomona, and Arastradero Managing Department: Utilities Initial Project Start: Spring 2010 Initial Project Completion: Summer 2012 Revised Project Start: Revised Project Completion: Summer 2017 Project Number: EL-11003 Underground transformer and cable after years of service Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund 29,463 451,615 144,181 307,434 0 0 0 0 307,434 0 481,078 Total 29,463 451,615 144,181 307,434 0 0 0 0 307,434 0 481,078 ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 413 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction 23,570 451,615 144,181 307,434 0 0 0 0 307,434 0 475,185 Design 5,892 0 0 0 0 0 0 0 0 0 5,892 Total 29,462 451,615 144,181 307,434 0 0 0 0 307,434 0 481,077 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-9 Policy: N-44 Relationship to Comprehensive Plan Secondary Connection Element: Land Use and Community Design Section: Public Ways Goal: L-9 Policy: L-79 Program: L-80,L-81 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. ELECTRIC FUND 414 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Rebuild Underground District 16 Rebuild Underground District 16 Description This project will rebuild and replace the underground electric system in Underground District 16. The area is located along Louis Road between Greer Street and Loma Verde Avenue. Work will include the replacement of deteriorated electrical cable, transformers, and enclosures. Installa- tion of new equipment will bring the electrical system up to current construction standards. Justification The underground system serving Underground District 16 was installed in 1974, and cables and equipment in the area have exceeded their expected life of 30 years. In addition, most of the equipment and cables were installed in subsurface enclosures that have standing water in them in the winter. The water reduces the life of the equipment and electrical connections and requires that rebuilding be performed on the facilities. Fund: Electric Fund - Operating Category: System Rehabilitation Project Location: Louis Road between Greer Street and Loma Verde Avenue Managing Department: Utilities Initial Project Start: Winter 2016 Initial Project Completion: Spring 2018 Revised Project Start: Revised Project Completion: Project Number: EL-13003 Electric crews installing new underground cables Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund 0 0 0 300,000 0 0 0 0 300,000 0 300,000 Total 0 0 0 300,000 0 0 0 0 300,000 0 300,000 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 300,000 0 0 0 0 300,000 0 300,000 Total 0 0 0 300,000 0 0 0 0 300,000 0 300,000 ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 415 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-9 Policy: N-44 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. ELECTRIC FUND 416 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Rebuild Underground District 20 Rebuild Underground District 20 Description This project will rebuild and replace the underground electric system in Underground District 20. Work will include the replacement of deteriorated electrical cable, transformers, and enclo- sures. Installation of new equipment will bring the electrical system up to current construction standards. Justification The underground system serving Underground District 20 was installed in 1979, and cables and equipment in the area have exceeded their expected life of 30 years. In addition, most of the equipment and cables were installed in subsurface enclosures that have standing water in win- ter. The water reduces the life of the equipment and electrical connections and requires that rebuilding be performed on the facilities. Fund: Electric Fund - Operating Category: System Rehabilitation Project Location: Channing Avenue; Center Street; Hamilton Avenue; and Lincoln Avenue Managing Department: Utilities Initial Project Start: Winter 2017 Initial Project Completion: Spring 2018 Revised Project Start: Revised Project Completion: Project Number: EL-14002 Utility Engineer planning out the next underground rebuild project Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund 0 0 0 950,000 500,000 500,000 0 0 1,950,000 0 1,950,000 Total 0 0 0 950,000 500,000 500,000 0 0 1,950,000 0 1,950,000 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 950,000 500,000 500,000 0 0 1,950,000 0 1,950,000 Total 0 0 0 950,000 500,000 500,000 0 0 1,950,000 0 1,950,000 ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 417 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-9 Policy: N-44 Relationship to Comprehensive Plan Secondary Connection Element: Land Use and Community Design Section: Public Ways Goal: L-9 Policy: L-79 Program: L-81 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. ELECTRIC FUND 418 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Rebuild Underground District 23 Rebuild Underground District 23 Description This project will rebuild and replace the underground electric system in the area of the city bounded by Hamilton Avenue, San Francisquito Creek, Southwood Drive and Chaucer Street. Work will include the replacement of deteriorated electrical cable, transformers, switches and enclosures. Justification The underground electric distribution system in the area bounded by Hamilton Avenue, San Francisquito Creek, Southwood Drive and Chaucer Street was installed in 1983. Typical under- ground cable and equipment expected life is approximately 30 years in ideal conditions. Instal- lation of new equipment will bring the electrical system up to current construction standards. Significant Changes 2017-2021 CIP: Project established. Fund: Electric Fund - Operating Category: System Rehabilitation Project Location: Hamilton Avenue, San Francisquito Creek, Southwood Drive and Chaucer Street Managing Department: Utilities Initial Project Start: Fall 2016 Initial Project Completion: Summer 2019 Revised Project Start: Revised Project Completion: Project Number: EL-17000 Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund 0 0 0 0 200,000 600,000 0 0 800,000 0 800,000 Total 0 0 0 0 200,000 600,000 0 0 800,000 0 800,000 ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 419 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Planning and Engineering 0 0 0 0 200,000 600,000 0 0 800,000 0 800,000 Total 0 0 0 0 200,000 600,000 0 0 800,000 0 800,000 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-9 Policy: N-44 Relationship to Comprehensive Plan Secondary Connection Element: Land Use and Community Design Section: Public Ways Goal: L-9 Policy: L-79 Program: L-80, L-81 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. ELECTRIC FUND 420 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Rebuild Underground District 26 Rebuild Underground District 26 Description This project will rebuild and replace the underground electric system in Underground District 26. Work will include the replacement of deteriorated electrical cables, transformers, switches, and enclosures. Installation of new equipment will bring the electrical system up to current con- struction standards. Justification The electric system included in the scope of work of Underground District 26 was installed in 1984. Underground District 26 includes Arastradero Road between El Camino Real and Hillview Avenue. The cables are nearing the end of their expected life of 30 years and the fused switches that were installed at that time have issues with operation and need to be replaced. In addition, most of the other equipment (transfomers, junctions, ect.) were installed in subsurface enclo- sures that have standing water, garden chemicals, oil, or other corrosive materials that impact equipment life. Significant Changes 2017-2021 CIP: Shifting project priorities and the loss of Engineering staff have caused the delay for the completion of this project. Fund: Electric Fund - Operating Category: System Rehabilitation Project Location: Arastradero Road between El Camino Real and Hillview Avenue Managing Department: Utilities Initial Project Start: Spring 2016 Initial Project Completion: Spring 2016 Revised Project Start: Revised Project Completion: Spring 2017 Project Number: EL-16000 Arastradero Road (part of Underground District 26) Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund 0 750,000 60,000 50,000 0 650,000 0 0 700,000 0 760,000 Total 0 750,000 60,000 50,000 0 650,000 0 0 700,000 0 760,000 ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 421 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 750,000 60,000 50,000 0 650,000 0 0 700,000 0 760,000 Total 0 750,000 60,000 50,000 0 650,000 0 0 700,000 0 760,000 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-9 Policy: N-44 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. ELECTRIC FUND 422 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Underground System Rebuild Underground System Rebuild Description Underground primary electric cables and equipment have a limited life span and need to be replaced before they fail and cause outages. This project will replace underground electric equipment in areas that were originally installed underground, i.e. not part of an Underground District. Work will include the replacement of deteriorated electrical cable, transformers, switches and enclosures. Installation of new equipment will bring the electrical system up to current construction standards. Justification The underground system cables and equipment installed prior to 1990 have an expected life of 30 years. In addition, most of the equipment and cables were installed in subsurface enclosures that have standing water in them in the winter. The water reduces the life of the equipment and electrical connections and requires that rebuilding be performed on the facilities. Utilities has specific projects to address rebuilding Underground Districts. This project will address replac- ing underground equipment that was installed originally as underground and not part of an Underground District. Fund: Electric Fund - Operating Category: System Rehabilitation Project Location: Various locations Managing Department: Utilities Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: EL-16001 Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund N/A 300,000 20,000 580,000 300,000 350,000 350,000 350,000 1,930,000 0 N/A Total N/A 300,000 20,000 580,000 300,000 350,000 350,000 350,000 1,930,000 0 N/A ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 423 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 300,000 20,000 580,000 300,000 350,000 350,000 350,000 1,930,000 0 N/A Total N/A 300,000 20,000 580,000 300,000 350,000 350,000 350,000 1,930,000 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-9 Policy: N-44 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 425 Undergrounding Projects ELECTRIC FUND 426 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Underground Distribution System Security Underground Distribution System Security Description This project funds the purchase and installation of equipment to secure underground electric distribution facilities used to provide electricity to utility customers in the City of Palo Alto, from vandalism, tampering, and theft to facilitate a safe, secure, and reliable electric system. Justification In recent years, the theft of metals for scrap has escalated due to increased demand overseas and shortages of raw materials. This has included the theft of electrical wire and cast iron man- hole covers. The electric system, and to a lesser extent the dark fiber system, fuels the economy of the City as technology has become more reliant on electricity and communications systems. Significant Changes 2017-2021 CIP: Engineering design is in progress. Additional time was requested to completed evaluation of samples. Fund: Electric Fund - Operating Category: Undergrounding Projects Project Location: Various locations Managing Department: Utilities Initial Project Start: Spring 2015 Initial Project Completion: Spring 2017 Revised Project Start: Revised Project Completion: Spring 2018 Project Number: EL-13007 The damage done by copper/metal thieves can far exceed the value to the thief and cost of protection Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund 828 290,534 50,000 240,534 300,000 300,000 0 0 840,534 0 891,362 Total 828 290,534 50,000 240,534 300,000 300,000 0 0 840,534 0 891,362 ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 427 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction 662 290,534 50,000 240,534 300,000 300,000 0 0 840,534 0 891,196 Design 166 0 0 0 0 0 0 0 0 0 166 Total 828 290,534 50,000 240,534 300,000 300,000 0 0 840,534 0 891,362 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-9 Policy: N-44 Relationship to Comprehensive Plan Secondary Connection Element: Community Services & Facilities Section: Parks and Public Facilities Goal: C-4 Policy: C-24 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. ELECTRIC FUND 428 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Underground District 42 - Embarcadero Rd Emerson/Middlefield Underground District 42 - Embarcadero Rd Emerson/Middlefield Description This project will replace the existing overhead distribution system with an underground system along Embarcadero between Emerson and Middlefield. This project involves creating an Under- ground Utilities District and performing the work on a general benefit basis under the provisions of Utility Rule 17. This rule requires the Utility to bear the cost of the distribution system and the property owners to bear the cost of undergrounding their services. Justification Benefits of undergrounding include system improvement, higher reliability, reduced tree trim- ming, and improved aesthetics. Undergrounding has been approved to continue the ongoing underground conversion program and also because the area meets the California Public Utilities Commission rules dictating the areas where a telephone company can underground their lines. Fund: Electric Fund - Operating Category: Undergrounding Projects Project Location: Along Embarcadero between Emerson and Middlefield Managing Department: Utilities Initial Project Start: Spring 2017 Initial Project Completion: Spring 2019 Revised Project Start: Revised Project Completion: Project Number: EL-08001 Intersection of Embarcadero Road and Waverley Street (part of Underground District 42) Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund 0 0 0 0 50,000 2,000,000 250,000 0 2,300,000 0 2,300,000 Total 0 0 0 0 50,000 2,000,000 250,000 0 2,300,000 0 2,300,000 ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 429 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 0 0 2,000,000 250,000 0 2,250,000 0 2,250,000 Planning and Engineering 0 0 0 0 50,000 0 0 0 50,000 0 50,000 Total 0 0 0 0 50,000 2,000,000 250,000 0 2,300,000 0 2,300,000 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-9 Policy: N-44 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is categorically exempt from CEQA under Section 15302. ELECTRIC FUND 430 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Underground District 43 - Alma/Embarcadero Underground District 43 - Alma/ Embarcadero Description This project will replace the existing overhead distribution system with an underground system in the area bounded by Alma, Addison, Bryant, and Melville. This project involves creating an Underground Utilities District and performing the work on a general benefit basis under the provisions of Utility Rule 17. This rule requires the Utility to bear the cost of the distribution sys- tem and the property owners to bear the cost of undergrounding their services. The under- grounding project will start in Fiscal Year 2018. Justification Benefits of undergrounding include system improvement, higher reliability, reduced tree trim- ming and improved aesthetics. Undergrounding has been approved to continue the ongoing underground conversion program and also because the area meets California Public Utilities Commission rules dictating the areas where a telephone company can underground their lines. Fund: Electric Fund - Operating Category: Undergrounding Projects Project Location: Alma, Addison, Bryant, and Melville Managing Department: Utilities Initial Project Start: Spring 2018 Initial Project Completion: Spring 2019 Revised Project Start: Revised Project Completion: Spring 2020 Project Number: EL-11009 Alma Street at Embarcadero Road (part of Underground District 43) Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund 0 0 0 0 0 150,000 2,000,000 500,000 2,650,000 0 2,650,000 Total 0 0 0 0 0 150,000 2,000,000 500,000 2,650,000 0 2,650,000 ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 431 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 0 0 0 2,000,000 500,000 2,500,000 0 2,500,000 Planning and Engineering 0 0 0 0 0 150,000 0 0 150,000 0 150,000 Total 0 0 0 0 0 150,000 2,000,000 500,000 2,650,000 0 2,650,000 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-10 Policy: N-44 Relationship to Comprehensive Plan Secondary Connection Element: Land Use and Community Design Section: Public Ways Goal: L-9 Policy: L-79 Program: L-80,L-81 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. ELECTRIC FUND 432 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Underground District 46 - Charleston/El Camino Real Underground District 46 - Charleston/ El Camino Real Description This project includes the costs to underground the existing overhead distribution system in the area along the 400 block of West Charleston and El Camino Real. Undergrounding will be com- pleted by Fiscal Year 2017, and the overhead system will be removed. Justification Benefits of undergounding include system improvement, higher reliability, reduced tree trim- ming, and improved aesthetics of this busy intersection. Funding has been approved to con- tinue the ongoing underground conversion program and also because the area meets California Public Utilities Commission rules dictating the areas where a telephone company can under- ground their lines. Significant Changes 2017-2021 CIP: Due to safety concerns this project has been re-prioritized and moved up by one year. Fund: Electric Fund - Operating Category: Undergrounding Projects Project Location: 400 block of West Charleston and El Camino Real Managing Department: Utilities Initial Project Start: Spring 2015 Initial Project Completion: Spring 2017 Revised Project Start: Revised Project Completion: Spring 2016 Project Number: EL-12001 Overhead facilities at the intersection of Arastradero Road and El Camino Real (part of Underground District 46) Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund 69,142 684,812 62,497 622,315 0 0 0 0 622,315 0 753,954 Total 69,142 684,812 62,497 622,315 0 0 0 0 622,315 0 753,954 ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 433 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction 55,313 684,812 62,497 622,315 0 0 0 0 622,315 0 740,125 Design 13,828 0 0 0 0 0 0 0 0 0 13,828 Total 69,141 684,812 62,497 622,315 0 0 0 0 622,315 0 753,953 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-9 Policy: N-44 Relationship to Comprehensive Plan Secondary Connection Element: Land Use and Community Design Section: Public Ways Goal: L-9 Policy: L-79 Program: L-80,L-81 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 435 FIBER OPTICS FUND FIBER OPTICS FUND FIBER OPTICS FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 437 FIBER OPTIC Overview The City of Palo Alto is the only municipality in California that operates a full suite of City- owned utility services. The most recent addition to this list of services provided to City of Palo Alto residents and customers is the leasing of “dark“ fiber on a fiber optic loop, built by the City in 1996. For the 2017-2021 Capital Improvement Program, expenditures of $3.6 million are pro- grammed, with $1.7 million allocated in Fiscal Year 2017. Major projects funded in the 2017-2021 CIP include the Fiber Optic System Rebuild Project ($1.3 million), Fiber Optics Customer Con- nections ($1.3 million), and Fiber Optics Network System Improvements ($1.0 million). The bud- get for the Fiber Optics Capital Improvement Program is broken into two separate categories: Capacity Improvements and Customer Connections. Capacity Improvements With the advance in technology; increase in online services, and increase in data transmission needs to meet consumer demand; the capability afforded by fiber optic cables is increas- ingly in demand. To ensure reli- able fiber optic service to City of Palo Alto residents and custom- ers, fiber optic system compo- nents (fiber optic cable and splice cabinets) need to be upgraded or added to increase capacity; replaced or protected from damage by animals; and rerouted away from hazardous conditions. Recent Accomplishments Upgraded the downtown backbone between splice points BK-AX-CZ to improve efficiency for customer connections and free up fibers. Converted upgrade of AutoCAD fiber maps to AutoCAD AME GIS system. Infrastructure Inventory CLASSIFICATION QUANTITY Route Miles of Backbone Fiber Cable 42 Miles of Overhead Fiber Optic Cable 25 Miles of Underground Fiber Optic Cable 60 $0 $400,000 $800,000 $1,200,000 $1,600,000 $2,000,000 $2,400,000 2013 Actuals 2015 Actuals FY 2017 Proposed FY 2019 Projected FY 2021 Projected Fiber Optics Fund Capital Expenditures FIBER OPTICS FUND 438 FIBER OPTICS FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 2017-2021 Capital Improvement Program Recurring Projects There is one recurring project in the Capacity Improvements Category: the Fiber Optics Net- work System Improvements. This project extends the “dark“ fiber optic network around Palo Alto through the development of fiber sub-rings and completion of general improvements to the fiber system. The annual funding for this project remains at $200,000 throughout the CIP. Non-Recurring Projects As part of the 2017-2021 Capital Improvement Program, one project is included within this cate- gory: Fiber Optic System Rebuild (Fiscal Year 2017: $1.2 million, total cost $2.4 million). This project is expected to extend through Fiscal Year 2017 and will rebuild portions of the “dark“ fiber optics network. Certain sections of the system have reached capacity limiting the City’s ability to provide fiber optics service to all potential customers. Rebuilding portions of the “dark“ fiber optic network includes installation of additional fiber optic cables in the Stanford Research Park area and replacement of several below ground splice closures with pad-mounted pedestals. Recent Accomplishments Upgraded the dark fiber network from University to Lytton at Bryant to add capacity and improve efficiency for downtown businesses Completed upgrade of fiber maps to Utilities GIS system, enabling a single view of multiple utility infrastructures Conducted a physical audit of the dark fiber network to improve network performance and add capacity Customer Connections As customers continually change their fiber optic needs due to equipment additions, new con- struction, building expansions, building remodels, teardowns and rebuilds, and new building occupancy types, the fiber optics system must evolve to meet these needs. Projects in this cat- egory include work required to meet the needs of customers who have applied for new or upgraded fiber optic service. The connection costs associated with new or upgraded connec- tions are offset by charges to the customer. Recent Accomplishments Several services installed for Stanford University offsite facilities and other customers in the Stanford Research Park area. 2017-2021 Capital Improvement Program Recurring Projects In the Customer Connections category there is one recurring project: Fiber Optics Customer Connections. In the 2017-2021 Capital Improvement Program, recurring funding in this project FIBER OPTICS FUND FIBER OPTICS FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 439 remains at $250,000. This project provides funding for the installation of fiber optic infrastruc- ture for new service connections. Non-Recurring Projects There are no non-recurring projects in this category. Summary of Capital Activity FIBER OPTICS FUND Project Number Project Title FY 2015 Actuals FY 2016 Estimate FY 2017 Proposed FY 2018 FY 2019 FY 2020 FY 2021 5-Year Total Source of Funds Other Revenues FO-10000 Fiber Optics Customer Connections: Connection Charges 161,785 150,000 200,000 200,000 200,000 200,000 200,000 1,000,000 Other Revenues Total 161,785 150,000 200,000 200,000 200,000 200,000 200,000 1,000,000 Total Sources 161,785 150,000 200,000 200,000 200,000 200,000 200,000 1,000,000 Use of Funds Capacity Enhancements FO-10001 Fiber Optics Network System Improvements 173,853 513,218 200,000 200,000 200,000 200,000 200,000 1,000,000 FO-16000 Fiber Optic System Rebuild 0 1,150,000 1,250,000 0 0 0 0 1,250,000 Capacity Enhancements Total 173,853 1,663,218 1,450,000 200,000 200,000 200,000 200,000 2,250,000 Customer Connections FO-10000 Fiber Optics Customer Connections 218,366 364,502 250,000 250,000 250,000 250,000 250,000 1,250,000 Customer Connections Total 218,366 364,502 250,000 250,000 250,000 250,000 250,000 1,250,000 Total Uses 392,219 2,027,720 1,700,000 450,000 450,000 450,000 450,000 3,500,000 �1Dmmu =moo RL SHE MD =irnE71:i /117. emu: n r Dr LEGEND --3232 MARCH 2016 PROPOSED FIBER OPTIC BACKBONE EXTENSION €7 ADD - 005000A 60.05 ;160007 02 00 0 AS R.°Cc �µ 100) 1L 03 00,0 AS neOA+F. ;100,A% PROPOSED FIBER OPTIC SYSTEM IMPROVEMENT 0,2018 )010 20,6 2018 54 RELIAB., IMPROVEMENT (10,011 20, ADD, &S REUABAr, IMPROVesoleNT 11000 10.2016 C FIBER PTIC FUN 2017-2021 T FIBER OPTICS FUND FIBER OPTICS FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 443 Capacity Improvements FIBER OPTICS FUND 444 FIBER OPTICS FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Fiber Optics Network System Improvements Fiber Optics Network System Improvements Description This project provides funding to improve reliability within the fiber optic network system. Typi- cal activities in this project include: purchasing, upgrading, and installing fiber optic cables, con- duits, and splice enclosures. Justification This project promotes the formation of a competitive market for telecommunications in Palo Alto, accelerating the pace at which high-quality, low-cost, advanced telecommunications ser- vices are delivered to the residents and businesses of Palo Alto. It does so while limiting the negative impacts on Palo Alto's environment by using pre-existing conduit and poles. Finally, it enables the Fiber Optics Fund to generate additional revenues through the enhanced use of its conduit and poles. Supplemental Information The Fiber Optics Utility continues to add capital improvements in the form of additional fiber in congested areas as well as areas of predicted growth. Fund: Fiber Optics Category: Capacity Improvements Project Location: Various locations Managing Department: Utilities Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: FO-10001 Fiber optic crew installing new fiber optic cables Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Fiber Optics Fund N/A 513,218 513,218 200,000 200,000 200,000 200,000 200,000 1,000,000 0 N/A Total N/A 513,218 513,218 200,000 200,000 200,000 200,000 200,000 1,000,000 0 N/A FIBER OPTICS FUND FIBER OPTICS FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 445 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 513,218 513,218 200,000 200,000 200,000 200,000 200,000 1,000,000 0 N/A Total N/A 513,218 513,218 200,000 200,000 200,000 200,000 200,000 1,000,000 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Business & Economics Section: Growth Goal: B-3 Policy: B-13 Program: B-4 Potential Board/Commission Review: Architectural Review Board Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. FIBER OPTICS FUND FIBER OPTICS FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 447 Customer Connections FIBER OPTICS FUND 448 FIBER OPTICS FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Fiber Optics Customer Connections Fiber Optics Customer Connections Description This project provides funding for the installation of fiber optic infrastructure for new service connections. Typical activities in this project include: purchasing, upgrading, and installing fiber optic cables, conduits, and splice enclosures at customer sites. Justification This project promotes the formation of a competitive market for telecommunications in Palo Alto, accelerating the pace at which high-quality, low-cost, advanced telecommunications ser- vices are delivered to businesses while limiting the negative impacts on Palo Alto's environment by using existing conduits and poles rather than adding additional infrastructure to the system. Finally, it enables the Fibers Optic Fund to generate additional revenues through the enhanced use of its conduits and poles. Supplemental Information The cost to the Fiber Optics Fund associated with new service connections and the City's cost of ownership are billed to the requesting parties. Fund: Fiber Optics Category: Customer Connections Project Location: Various locations Managing Department: Utilities Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: FO-10000 Technician installing new fiber optic cables Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Fiber Optics Fund N/A 1,297 214,502 50,000 50,000 50,000 50,000 50,000 250,000 0 N/A Other N/A 363,205 150,000 200,000 200,000 200,000 200,000 200,000 1,000,000 0 N/A Total N/A 364,502 364,502 250,000 250,000 250,000 250,000 250,000 1,250,000 0 N/A FIBER OPTICS FUND FIBER OPTICS FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 449 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 364,502 364,502 250,000 250,000 250,000 250,000 250,000 1,250,000 0 N/A Total N/A 364,502 364,502 250,000 250,000 250,000 250,000 250,000 1,250,000 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Business & Economics Section: Growth Goal: B-3 Policy: B-13 Program: B-4 Potential Board/Commission Review: Architectural Review Board Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. FIBER OPTICS FUND FIBER OPTICS FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 451 System Improvements FIBER OPTICS FUND 452 FIBER OPTICS FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Fiber Optic System Rebuild Fiber Optic System Rebuild Description This system capacity improvement project rebuilds portions of the "dark" fiber optic network around Palo Alto which, in turn, is leased to parties providing telecommunication services to cit- izens and businesses in Palo Alto. The rebuild projects will install new aerial duct or substruc- tures (conduit and boxes), and additional fiber backbone cable to increase capacity for sections of the dark fiber ring that are at or near capacity, and allow the Utilities Department to meet customer requests for service. The rebuild project areas are mainly comprised of the Stanford Research Park, Palo Alto Internet Exchange, and Downtown areas. Justification The Dark Fiber system was constructed in the early 1990s and started leasing fibers to custom- ers in 1996. Since that time several sections of the dark fiber system have reached capacity and limited the City's ability to serve its customers. This project improves the ability to maintain a competitive market for telecommunications in Palo Alto, accelerating the pace at which high quality, low cost, advanced telecommunications services are delivered to the residents and businesses of Palo Alto. Work included in the project is intended to increase system capac- ity and improve system reliability. Significant Changes 2017-2021 CIP: The budget was reduced by the City Council during the Fiscal Year 2016 budget process. The Fiscal Year 2017 budget reflects this adjustment. Fund: Fiber Optics Category: System Improvements Project Location: Various locations Managing Department: Utilities Initial Project Start: Spring 2016 Initial Project Completion: Spring 2018 Revised Project Start: Revised Project Completion: Project Number: FO-16000 Fiber optic splice closer ready for inspection and work FIBER OPTICS FUND FIBER OPTICS FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 453 Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Fiber Optics Fund 0 1,150,000 1,150,000 1,250,000 0 0 0 0 1,250,000 0 2,400,000 Total 0 1,150,000 1,150,000 1,250,000 0 0 0 0 1,250,000 0 2,400,000 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 1,150,000 1,150,000 1,250,000 0 0 0 0 1,250,000 0 2,400,000 Total 0 1,150,000 1,150,000 1,250,000 0 0 0 0 1,250,000 0 2,400,000 Relationship to Comprehensive Plan Primary Connection Element: Business & Economics Section: Growth Goal: B-3 Policy: B-13 Program: B-4 Potential Board/Commission Review: Architectural Review Board Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 455 GAS FUND GAS FUND GAS FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 457 GAS FUND Overview The City of Palo Alto is the only municipality in California that operates a full suite of City- owned utility services. The municipal gas distribution system began operation in 1917. It pro- vides safe, reliable, and cost effective gas service to residents and customers of Palo Alto. For the 2017-2021 Capital Improvement Program (CIP), approximately $31.1 million is programmed, with $6.3 million allocated in Fiscal Year 2017. Overall, a total of eleven projects are pro- grammed for the 5-year CIP. Major projects funded in the 2017-2021 CIP include Gas Main Replacements (cumulative total of $20.0 million), Gas System Customer Connections ($6.5 mil- lion), and Gas Meters and Regulators ($1.9 million). The budget for the Gas Fund CIP is broken into three separate categories: Customer Connections, Gas Main Replacements, and System Improvements. Customer Connections As customers continually change their gas needs due to equip- ment additions, new construc- tion, building expansions, building remodels, teardowns and rebuilds, and new building occupancy types, the gas system must evolve to meet these needs. The Gas System Cus- tomer Connections project, which is the largest project within the Gas Fund ($1.2 million in Fiscal Year 2017, $6.5 million over the 2017-2021 CIP), is accounted for within this category. This project allows for the completion of work required to meet the needs of customers who have applied for new or upgraded gas service. The Gas Fund pays for a portion of this project, while remaining costs are supported by reimbursements from customers for project work performed by the City. Infrastructure Inventory CLASSIFICATION QUANTITY Total miles of gas main distri- bution system 210.31 miles Total miles of gas service extension to residents and businesses 205.55 miles Number of gas receiving sta- tions 4 $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 2013 Actuals 2015 Actuals FY 2017 Proposed FY 2019 Projected FY 2021 Projected Gas Fund Capital Expendiures GAS FUND 458 GAS FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Recent Accomplishments In Fiscal Year 2015 the Utilities Gas Division completed approximately 195 customer service projects, at a cost of $0.26 million. Recurring Projects A total of $7.6 million is programmed for Customer Connection recurring projects in the 2017- 2021 CIP, with $1.4 million allocated in Fiscal Year 2017. Recurring projects in this category include the following: Gas System Customer Connections (Fiscal Year 2017: $1.2 million; 5-Year CIP: $6.5 million) System Extensions - Unreimbursed (Fiscal Year 2017: $0.2 million; 5-Year CIP: $1.1 million) Non-Recurring Projects There are no non-recurring projects under this category. Gas Main Replacements The Gas Main Replacements category accounts for the replacement of inadequately-sized and structurally deficient gas mains. The Utilities Department coordinates with the Public Works Department’s street maintenance projects to minimize damage to the City’s pavement and maximize cost efficiencies. In the next five years, it is anticipated that 88,380 linear feet of gas mains, or 8 percent of the entire system, will be replaced. The 2017-2021 Proposed CIP includes $20.0 million in funding for projects within this category, with $4.2 million allocated in Fiscal Year 2017. Recent Accomplishments Completed the design and construction of approximately 69,700 linear feet of gas mains and 996 gas service extensions from the City’s main distribution system with the recent CIP project Gas Main Replacement projects 19, 20, & 21. 2017-2021 Capital Improvement Program Recurring Projects There are no recurring projects under this category. Non-Recurring Projects Six Gas Main Replacement projects are included in the 2017-2021 CIP (Fiscal Year 2017: $4.2 mil- lion; 5-Year CIP: $20.0 million) System Improvements To ensure reliable gas services for the City of Palo Alto residents and customers, gas infrastruc- ture must be replaced upon reaching the end of its expected life. The System Improvements GAS FUND GAS FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 459 category includes three projects during the 2017-2021 CIP at a total cost of $3.6 million, with $0.7 million allocated in Fiscal Year 2017. Recent Accomplishments Completed building the gas distribution system model. 2017-2021 Capital Improvement Program Recurring Projects There are three funded recurring projects in the System Improvements category in the 2017- 2021 CIP: Gas Distribution System Improvements (Fiscal Year 2017: $0.2 million, 5-Year CIP: $1.2 million), Gas Equipment and Tools (Fiscal Year 2017: $0.1 million, 5-Year CIP: $0.5 million), and Gas Meters and Regulators (Fiscal Year 2017: $0.4 million, 5-Year CIP: $1.9 million). Non-Recurring Projects There are no non-recurring projects under this category. Please refer to the City of Palo Alto Utilities webpage to confirm project details: http:// www.cityofpaloalto.org/gov/depts/utl/projects/default.asp Summary of Capital Activity GAS FUND Project Number Project Title FY 2015 Actuals FY 2016 Estimate FY 2017 Proposed FY 2018 FY 2019 FY 2020 FY 2021 5-Year Total Source of Funds Other Revenues GS-80017 Gas System, Customer Connections 747,954 850,000 1,017,000 1,047,510 1,078,935 1,111,303 1,144,642 5,399,390 Other Revenue Total 747,954 850,000 1,017,000 1,047,510 1,078,935 1,111,303 1,144,642 5,399,390 Total Sources 747,954 850,000 1,017,000 1,047,510 1,078,935 1,111,303 1,144,642 5,399,390 Use of Funds Customer Connections GS-80017 Gas System, Customer Connections 1,005,525 953,000 1,228,500 1,265,355 1,303,315 1,342,415 1,382,688 6,522,273 GS-03009 System Extensions - Unreimbursed 49,274 100,000 198,500 204,455 210,590 216,908 223,415 1,053,868 Customer Connections Total 1,054,799 1,053,000 1,427,000 1,469,810 1,513,905 1,559,323 1,606,103 7,576,141 Gas Main Replacements GS-09002 Gas Main Replacement - Project 19 1,821,628 496,211 0 0 0 0 0 0 GS-10001 Gas Main Replacement - Project 20 2,443,978 2,297,621 0 0 0 0 0 0 GS-11000 Gas Main Replacement - Project 21 1,447,686 917,251 0 0 0 0 0 0 GAS FUND 460 GAS FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET GS-12001 Gas Main Replacement - Project 22 306,590 3,835,985 0 0 0 0 0 0 GS-13001 Gas Main Replacement - Project 23 0 80,000 3,550,650 0 0 0 0 3,550,650 GS-14003 Gas Main Replacement - Project 24 0 0 640,000 3,100,000 0 0 0 3,740,000 GS-15000 Gas Main Replacement - Project 25 0 0 0 659,000 3,200,000 0 0 3,859,000 GS-16000 Gas Main Replacement - Project 26 0 0 0 0 678,200 3,300,000 0 3,978,200 GS-20000 Gas Main Replacement - Project 27 0 0 0 0 0 700,000 3,400,000 4,100,000 GS-20001 Gas Main Replacement - Project 28 0 0 0 0 0 0 721,000 721,000 Gas Main Replacements Total 6,019,882 7,627,068 4,190,650 3,759,000 3,878,200 4,000,000 4,121,000 19,948,850 System Improvements GS-10000 Gas Station 3 Rebuild 30,125 0 0 0 0 0 0 0 GS-14004 Gas Distribution System Model 7,866 140,472 0 0 0 0 0 0 GS-13002 Gas Equipment and Tools 17,131 80,000 100,000 100,000 100,000 100,000 100,000 500,000 GS-80019 Gas Meters and Regulators 36,891 347,799 355,030 365,681 376,652 387,952 399,591 1,884,906 GS-11002 Gas Distribution System Improvements 334,349 300,000 231,913 238,870 246,036 253,417 261,020 1,231,256 GS-01019 GPS Global Positioning 6,728 1,300 0 0 0 0 0 0 GS-15001 Security at City Gas Receiving Stations 0 150,000 0 0 0 0 0 0 System Improvements Total 433,090 1,019,571 686,943 704,551 722,688 741,369 760,611 3,616,162 Total Uses 7,507,771 9,699,639 6,304,593 5,933,361 6,114,793 6,300,692 6,487,714 31,141,153 Project Number Project Title FY 2015 Actuals FY 2016 Estimate FY 2017 Proposed FY 2018 FY 2019 FY 2020 FY 2021 5-Year Total Pag e M ill R o a d Arastradero Road E l C a m i n o R e a l S a n A n t o n i o A v e n u e C h a r l e s t o n Ro a d O r e g o n E x p r e s s w a y M i d d l e f i e l d R o a dUn i v e r s i t y Ave n u e A l m a S t r e e t F o o t h i l l E x p r e s s w a y L o s T r a n c o s R o a d East Bay s h o r e West Bay s h o r e F a b i a n Sa n d H i l l R o a d Em b a r c a d e r o R o a d W a l l i s C t Donald D r i v e En c i n a G r a n d e D r i v e Ce r e z a D r i v e Lo s R o b l e s A v e Villa Vera Verdosa Drive Campana Drive Solana Drive Georgi a A v e Ynigo Way Drisc o l l C t ng Ar t hur'Maybell Way Ma y b e l l A v e n u e Frandon Ct Fl o r a l e s D r i v e Ge o r g i a A v e n u e Amaranta Avenue A m a r a n t a C t MirandaGreen Foot h i l l E x p r e s s w a y Ki s Cour t Terman Drive Baker Avenue Vi s t a A v e n u e Wisteria Lane Pena Ct Coulombe Drive Cherry Oaks Plac e Pomona Avenu e Ar a s t r a d e r o R d Abel Avenue Clemo Avenue V i l l a R e a l Cu r t n e r A v e n u e Ve n t u r a A v e n u e Ma c l a n e Emerson Street Ventura Court Park Boulevard Ma g n o l i a D r i v e S o u t h Cypress Lane (Private) GlenbrookD Fa i r m e d e A v e n u e A r a s t r a d e r o R o a d Ir v e n C o u r t Lo s P a l o s C i r Los PalosPlace Ma y b e l l A v e n u e Alta Mesa Ave Ke l l y W a y Los Pa l o s A v e Suzan n e D r i v e Suzan n e D r i v e r i ve El Ca m i n o R e a l Su z a n n e C t Lor a b e l l e C t McKell a r L a n e El C a m i n o W a y Ja m e s R o a d Ma c l a n e Second Street Wilkie Way Cam i n o C o u r t We s t M e a d o w D r i v e Thain Way Ba r c l a y C t Vi c t o r i a P l Interdale Way ( P v t ) We s t C h a r l e s t o n R o a d Te n n e s s e e L a n e Wilkie Way Ca r o l i n a L a n e Te n n e s s e e L a n e Park Boulevard Wi l k i e C o u r t Da v e n p o r t W a y Alma Street Roosev Mo n r o e D r i v e Wilkie W a y Whitclem P l a c e Wh i t c l e m D r i v e Du l u t h C i r c l e Ed l e e A v e n u e Di n a h ' s C o u r t Ce s a n o C t Mo n r o e D r i v e Miller Ave Whitclem Way Whitclem Ct Fe r n e A v e n u e B e n L o m o n d D r i v e Fa i r f i e l d C t Fe r n e A v e n u e Ponce DriveHemlockCourt Ferne Court Alma Street Mo n r o e D r Sa n A n t o n i o A v e n u e NitaAvenue Ruthelma Ave n u e Da r l i n g t o n C o u r t Ch a r l e s t o n R d Lundy Lane Ne w b e r r y C t Park Boulevard Ge o r g e H o o d L a n e Alma Street elt Circle LinderoDrive Wright Place Starr King Circle Sh a s t a D r i v e Mackay DriveDi a b l o C o u r t Scripps Avenue Sc r i p p s C o u r t Nelson Drive Ti o g a C o u r t Cr e e k s i d e D r i v e Gr e e n m e a d o w W a y B e n L o m o n d D r i v e P a r k s i d e D r i v e Dixon Place El y P l a c e Dake Avenue Ferne Avenue San Antonio Court (Private) El y P l Ely P l a c e Ado b e P l a c e Nels o n C t K e a t s C o u r t Middlefield Road Duncan Place Carlso n C o u r t D u n c a n P l a c e Mumford Pl Ch a r l e s t o n R d S a n A n t o n i o A v e n u e E a s t M e a d o w D r i v e Emerson Street Court Bry a n t S t r ee t Roosev elt Ci rcle RamonaStreet CarlsonCircle Redwoo d Ci rcleSouth Legh o r n S t r e e t M o n t r o s e A v e n u e M a p l e w o o d A v e n u e Charl e s t o n C t Cha r l e s t o n R o a d Sem i n o l e W a y Sutherland Drive Nelson D r i v e El C a p i t a n P l a c e Fabia n S t r e e t Lo m a V e r d e A v e n u e Bry s o n A v e n u e Midtown Court Cowper St Ga r y C t Waverley Street South Court Bryant Street Ramona Street Alma Street Co a s t l a n d D r Byron Street Middlefield Road Gaspar Ct Mo r e n o A v e n u e E l C a r m e l o A v e n u e Ca m p e s i n o A v e n u e Dy m o n d C t Ma r t i n s e n C t Ramona Street Bryant Street To w l e W a y Towle Pl We l l s b u r y C t FlowersLane Mackall Way Lo m a V e r d e A v e Cowper Street South Court Waverl e y S t r e e t E l V e r a n o A v e n u e We l l s b u r y W a y La Middlefield Road S t C l a i r e D r i v e Alg e r D r i v e As h t o n A v e n u e St Michael Drive St Michael Drive Ma u r e e n A v e Co w p e r C o u r t Rambow Drive Ea s t M e a d o w D r i v e Ashton Co u r t Murdoch Drive Cow p e r Street Mu r d o c h C t St Michael Court MayCourt Ma y v i e w A v e n u e Middle f i e l d R o a d En s i g n W a y Bib b i t s D r i v e Gai l e n C o u r t Gai l e n A v e n u e Gro v e A v e n u e S a n A n t o n i o A v e C o m m e r c i a l S t r e e t I n d u s t r i a l A v e n u e B i b b i t s D r i v e Charle s t o n R o a d F a b i a n W a y T Ea s t M e a d o w D r i v e Grove AvenueCh r i s t i n e D r i v e Co r i n a W a y Ross R o a d C o r i n a W a y L o u i s R d N a t h a n W y Transport S t r e e t Ort e g a C o u r t Ea s t M e a d o w D r i v e yneCourt alisman Lo m a V e r d e A v e n u e A l l e n C t Ro s s C o u r t Loma Verde Place Am e s A v e n u e Ri c h a r d s o n C o u r t Holly Oak Drive Am e s A v e CorkOakWay Middlefield Road Ames Ct Am e s A v e n u e Ross Road Rorke Way St o n e L a n e To y o n P l a c e To r r e y a C o u r t Lupine Avenue Th o r n w o o d D r i v e DriftwoodDrive Ta l i s m a n D r i v e Arbutus Avenue Ross Road Louis Road As p e n W a y Evergreen Drive East M e a d o w D r i v e Co r p o r a t i o n W a y El w e l l C o u r t Janice Way East Meadow Ci r c l e East Meadow Circle GreerRoad Bayshore F r e e w a y El l s w o r t h P l Sa n C a r l o s C t Wi n t e r g r e e n W a y Su t t e r A v e n u e Cla r a D r i v e Price Ct S t e r n A v e n u e Co l o r a d o A v e n u e Randers Ct Ross Rd. Sy c a m o r e D r i v e Sevyson Ct Stelling Drive Ross Road David Avenue Mur rayWay Stell i n g D r i v e St e l l i n g C t ManchesterCourt K e n n e t h D r i v e ThomasD ri v e Stockton Place Vernon Terrace Louis Road Ja n i c e W a y Th o m a s D r Ke n n e t h D r i v e Lo m a V e r d e A v e n u e CliftonCourt Elbri dg e Way Cla r a D r i v e Baut istaCourtStockton Place Morris Drive Ma d d u x D r Pi e r s C t Louis Road Mo r a g a C t O l d P a g e M i l l R o a d Deer Creek Road C oy o t e H i l l Ro ad Hil l v i e w A v e n u e Porter Drive Hillview Ave Ha n o v e r S t r e e t Foothill Expressway Ara s t r a d e r o R o a d Miranda Avenue S t a n f o r d A v e n u e Amherst Street Columbia Street Bowdoin Street Dartmouth Street Hanover Street Co l l e g e A v e n u e Ca l i f o r n i a A v e n u e Hanover Street Ramos Way (Private) Pa g e M i l l R o a d Hansen Way Hanover Street Ol d A d o b e R o a d Old Trace Co u r t Ara s t r a d e r o R o a d Miranda Avenue Mockingbird Lane OldTraceRoad Manu e l a W a y Ro bb Road Manu e l a C o u r t Mesa A v e n u e O a k H i l l A v e n u e M a n u e l a A v e n u e M i r a n d a A v e n u e La g u n a C t Ba r r o n A v e Jo s i n a A v e K e n d a l l A v e Tippawingo St Julie CtMa t a d e r o A v e n u e Il i m a W a y Il i m a C o u r t La g u n a O a k s P l Carlitos Ct La Calle Laguna Ave Pa r a d i s e W a y Ro b l e R i d g e L a MataWay Ch i m a l u s D r i v e Ma t a d e r o A v e Pa u l A v e n u e Ke n d a l l A v e n u e Whitsell Avenue Ba r r o n A v e n u e Cass Way L o s R o b l e s A v e Laguna Way La P a r a A v e n u e Sa n J u d e A v e n u e El Centro Street Ti m l o t t L a n e La J e n n i f e r W a y Ma g n o l i a D r i v e N o r t h La Donna Avenue Rinc Manzana Lane on C ircle MesaCourt C r o s b y P l G e o r g i a A v e n u e Hubba r t t D r i v e Wi l l m a r D r i v e Donald Dr Ara s t r a d e r o R o a d Foothil l E x p r e s s w a y Mira n d a A v e n u e Sa n J u d e A v e Magnolia Drive Mi l i t a r y W a y Arbol Drive Orme Street Fe r n a n d o A v e n u e Ma t a d e r o A v e n u e La m b e r t A v e n u e Ha n s e n W a y Ma r g a r i t a A v e n u e Ma t a d e r o A v e n u e Wi l t o n A v e n u e Ox f o r d A v e n u e Harvard Street Ca l i f o r n i a A v e Wellesley Street Princeton Street Oberlin Street Cornell Street Ca m b r i d g e A v e Co l l e g e A v e n u e Williams Street Yale St Staunton Ct Ox f o r d A v e n u e El Camino R e a l Ch u r c h i l l A v e n u e Par k B o u l e v a r d Pa r k A v e n u e Escobita Ave n u e Ch u r c h i l l A v e n u e Se q u o i a A v e n u e Mariposa Avenue Castilleja Avenue Mir a m o n t e A v e n u e Madrono Ave n u e Portola Aven u e Ma n z a n i t a A v e n u e Co l e r i d g e A v e n u e Le l a n d A v e n u e St a n f o r d A v e n u e Birch Street Ash Street Lo w e l l A v e n u e Alma Street Te n n y s o n A v e n u e Gr a n t A v e n u e Sh e r i d a n A v e Ja c a r a n d a L n El Camino Real Sh e r m a n A v e n u e Ash St Pa g e M i l l R o a d Mimosa Ln Ch e s t n u t A v e n u e Po r t a g e A v e n u e Pe p p e r A v e n u e Ol i v e A v e n u e Ac a c i a A v e n u e Emerson Street Park Boulevard Orinda Street Birch St Ash Street Pa g e M i l l R o a d Ash Street Park Blvd Co l l e g e A v e n u e Ca m b r i d g e A v e Ne w M a y f i e l d L n Birch Street Ca l i f o r n i a A v e Park BlvdNogal Lane Ri n c o n a d a A v e n u e S a n t a R i t a A v e n u e Park Boulevard Se a l e A v e n u e Wa s h i n g t o n A v e Sa n t a R i t a A v e n u e Bryant Street High Street Emerson Street Co l o r a d o A v e Street Ramona Street Bryant Street South Court E l D o r a d o A v e n u e Alma Street Alma Street HighStreet Emerson Wa v e r l e y O a k s ( P r i v a t e ) Wa s h i n g t o n A v e n u e Bryant Street South Court Waverley Street Emerson St Ne v a d a A v e N C a l i f A v e Ramona St High Street No r t h C a l i f o r n i a A v e n u e Or e g o n E x p w y Ma r i o n A v e n u e Ramona Street Co l o r a d o A v e n u e Waverley Street Kipling Street South Court Cowper Street An t o n C t Ne v a d a A v e n u e Tasso StreetTasso Street Or e g o n A v e n u e Marion Place We b s t e r S t Middlefield Road Ross Road Wa r r e n W a y El Cajon Way P r i m r o s e W a y Iri s W a y Tul i p L a n e Tulip La n e Ga r l a n d D r i v e G r e e r R o a d G r e e r R o a d Hami l t o n A v e n u e H i l b a r L a n e Alannah Ct Edge Rh o d e s D r i v e Marshall Drive Mo r e n o A v e n u e Marshal l Drive De n n i s D r . Agnes WayOr e g o n A v e . Bl a i r C o u r t Santa Ana Street El s i n o r e D r i v e Elsinore Court El Cajon Way Greer Road Ca l i f o r n i a A v e n u e Co l o r a d o A v e n u e Sy c a m o r e D r i v e Am a r i l l o A v e n u e l Bru c e D r i v e Co l o n i a l L a n e Mo r e n o A v e n u e Ce l i a D r i v e Burnham Way Greer Road Indian Drive Elmdale Pl C Tanland Drive Mo r e n o A v e n u e Am a r i l l o A v e n u e West Bays h o r e R o a d Sandra Place Clara Drive Co l o r a d o A v e n u e Greer Road Co l o r a d o A v e n u e Simkins Court Ot t e r s o n C t Higgins Pl. La w r e n c e L a n e Maddux Drive Genevieve Ct MetroCircle MoffettCi rcle Greer Road East Baysh o r e R o a d ardinalWay Santa Catalina Street ArrowheadWayAztec Way Chabot Terrace Or e g o n A v e n u e Carmel Drive Sierra Court St Francis Drive West Bayshore R o a d Tanland Dr. Ea s t B a y s h o r e R o a d woodDr i v e Edgewood Dri v e Wildwood Lane Ivy La n e East Bayshore Road S t F r a n c i s D r i v e Wi l d w o o d L a n e Wat s o n C o u r t Lau r a L a n e O'B r i n e L a n e ( P r i v a t e ) Emb a r c a d e r o R o a d FaberPlaceEm b a r c a d e r o R o a d Ge n g R o a d Embarcad e r o W a y Em b a r c a d e r o R o a d C ountry C l u b Co u r t Al e x i s D r i v e AlexisDr i v e Pasteur D r i v e Q u a r r y R o a d Welch R o a d Arboretum R o a d Qu a r r y R o a d Sa n d H i l l R o a d Ho m e r A v e n u e Lane 8 West Med i c a l F o u n d a t i o n W a y Lane 7 West Lane 7 East Em b a r c a d e r o R o a d Enc i n a A v e n u e El Camino Re a l Urb a n L a n e Wel l s A v e n u e Fo r e s t A v e n u e High Street Emerson Street Ch a n n i n g A v e Alma Street Alma Street El Camino Real Mit chell Lane Ha w t h o r n e A v e n u e E v e r e t t A v e n u e Ly t t o n A v e n u e Lane 15 E High Street Alma Street Bryant Street Lane 6 E Lane 11 W La n e 2 1 Gilman Street Ha m i l t o n A v e n u e Un i v e r s i t y A v e n u e Br y a n t C o u r t La n e 3 0 Florence Street Kipling Street Tasso Street Cowper Street Ru t h v e n A v e n u e La n e 3 3 Palo Alto Av enue Po e S t r e e t Waverley Street Tasso Street Cowper Street Palo Alto Avenue Webster Street E v e r e t t C o u r t Byron Street Fult on Street Middlefield R o a d Ch u r c h i l l A v e n u e Te n n y s o n A v e n u e Me l v i l l e A v e n u e Cowper Street Tasso Street Webster Street Byron Street No r t h C a l i f o r n i a A v e n u e Co l e r i d g e A v e n u e Waverley Street Bryant Street Emerson Street Alma StreetKi n g s l e y A v e Po r t a l P l a c e Ross Road Or e g o n A v e n u e Ga r l a n d D r i v e Lane A West Lane B West Lane B East Lane D West Lane 59 East Wh i t m a n C o u r t K e l l o g g A v e n u e Em b a r c a d e r o R o a d K i n g s l e y A v e n u e Li n c o l n A v e n u e Ad d i s o n A v e . Li n c o l n A v e n u e Downing Lane Ho m e r A v e n u e Lane D East Lane 39 Lane 56(Pvt.) Ha m i l t o n A v e n u e Webster Street Waverley Street Kipling Street Bryant Street Ramona Street Scott Street Byron Street Palo Hale Street Seneca Street Ly t t o n A v e n u e P a lo AltoAvenue Fult on Street K e l l o g g A v e n u e Middlefield Road Byron Street Webster Street Cowper Street Tasso Street Cowper Street A d d i s o n A v e n u e B o y c e A v e n u e Ha m i l t o n A v e n u e Ho m e r A v e n u e Guinda Street Middlefield Road Ch a n n i n g A v e n u e AltoAvenueChaucer StreetCh a u c e r S t r e e t Un i v e r s i t y A v e n u e A d d i s o n A v e n u e Rege n t P l Guinda Street Li n c o l n A v e n u e Fult on Street M e l v i l l e A v e n u e Byron Street K i n g s l e y A v e n u e Me l v i l l e A v e n u e Ham i l t o n A v e n u e H a m i l t o n C t Fore s t A v e n u e F o r e s t C t M a r l o w e S t r e e t M a p l e S t r e e t P a l m S t r e e t Som e r s e t P l Pitm a n A v e n u e Fife A v e n u e Fore s t A v e n u e Dana A v e n u e Li n c o l n A v e n u e Univer s i t y A v e n u e Co l e r i d g e A v e n u e Lo w e l l A v e n u e Cowper Street Te n n y s o n A v e n u e No r t h a m p t o n D r i v e We s t G r e e n w i c h P l Middlefield Road Newell Road Guinda Street E a s t G r e e n w i c h P l So u t h a m p t o n D r i v e K i r b y P l Kent P l a c e Tevis P l Martin A v e n u e C e n t e r D r i v e H a r r i e t S t r e e t Wi l s o n S t r e e t C e d a r S t r e e t Hark e r A v e n u e Gree n w o o d A v e n u e H u t c h i n s o n A v e Chan n i n g A v e n u e Hopk i n s A v e n u e Em b a r c a d e r o R o a d Ashby Dr i v e Dana Ave n u e Hamilton A v e n u e Pitman A v e n u e So u t h w o o d D r i v e WestCrescent Driv e C rescentDrive Un i v e r s i t y A v e n u e Cent e r D r i v e EastCrescen Arcadia P l a c e Louisa Court Newe l l P l S h a r o n C t E r s t w i l d C o u r t W a l t e r H a y s D r i v e Waln u t D r i v e N e w e l l R o a d Parki n s o n A v e n u e Pi n e S t r e e t Mark Twain Street Louis Road Barbara Drive P r i m r o s e W a y Iris W a y Em b a r c a d e r o R o a d Wal t e r H a y s D r i v e Loi s L a n e Jorda n P l Lois L a n e H e a t h e r L a n e Bret Harte Street St a n l e y W a y De S o t o D r i v e De S o t o D r i v e A l e s t e r A v e n u e Walte r H a y s D r i v e Chan n i n g A v e n u e Iris W a y tDrive Dana Avenue Hamilton Aven u e Ne w e l l R o a d Kings Lan e Edgewood Dr ive I s l a n d D r i v e Je f f e r s o n D r i v e Jackson Dr i v e P a t r i c i a L a n e M a d i s o n W a y Edgewood D r i v e Ramona Street Ad d i s o n A v e n u e Ch a n n i n g A v e n u e Te n n y s o n A v e n u e Se a l e A v e n u e Middlefield Road Byron Street Webster Street Ma r i o n A v e n u e We l c h R o a d Sedro Ln Peral Lane Mc G r e g o r W a y Mo n r o e D r i v e Silva Ave Si l v a C o u r t Mi l l e r C o u r t Briarwood Way Dr i s c o l l P l a c e Pa u l s e n L n Com m u n i t y L a n e Lane 15 E Co u r t Madeline Court Arr o y o C t Da v i d C t Alex i s D r i v e Green Court Ore g o n E x p r e s s w a y Or e g o n E x p r e s s w a y O r e g o n E x p w y Pa g e M i l l R o a d Pa g e M i l l R o a d Footh i l l E x p r e s s w a y Mirand a A v e n u e Foothill E x p r e s s w a y Miran d a A v e n u e Foot h i l l E x p r e s s w a y Ce r r i t o W a y Emerson Street La n e 2 0 W La n e 2 0 E Or e g o n E x p r e s s w a y Un i v e r s i t y A v e n u e Ma c k a y D r i v e Ja c o b ' s C t ( P v t ) CalTrain ROW CalTrain ROW CalTrain ROW CalTrain ROW Emerson Street Waverley Street Kipling Street Clark Way Durand Way Pasteu r D r i v e W e l c h R o a d Sa n d h i l l R o a d Swain WayCl a r k W a y Mosher Way Charles Marx W a y Or c h a r d L a n e Vineyard L a n e O a k R o a d Sa n d H i l l R o a d S a n d H i l l R o a d Sa n d H i l l R o a d El Camino Real Foothill Expressway Hil l v i e w A v e n u e Ara s t r a d e r o R o a d Lane 66 B l a k e W i l b u r D r i v e Campu s D r i v e E a s t C a m p u s D r i v e W e s t We s t C h a r l e s t o n R o a d Cam p u s D r i v e E a s t Campu s D r i v e W e s t P a l m D r i v e Campus Driv e W e s t Campus D r i v e E a s t Quarry R o a d C a m p u s D r i v e E a s t Stock F a r m R o a d Bayshore F r e e w a y Bayshore F r e e w a y Bayshore F r e e w a y West Bays h o r e R o a d East Baysh o r e R o a d East Baysh o r e R o a d East Baysh o r e R o a dBayshore F r e e w a y Bayshore F r e e w a y Bayshore F r e e w a y Palo Road Shopping Center Way S h o p p i n g C e n t e r W a y Sh o p p i n g C e n t e r W a y London Plane Way Plum L a n e Sweet Olive Way Pear Lane C a m p u s D r i v e Lane 66 LaSelvaDrive Gro v e C o u r t Mira n d a C t St a n f o r d A v e n u e Lane 12 W Lane 5 E Serra S t r e e t A r g u e l l o W a y G a l v e z S t r e e t Campus Drive Ea s t Nelson D r i v e Arboretum Road L a u s e n S t r e e t G a l v e z S t r e e t Museum W a y Roth Wa y L o m i t a D r i v e Serra S t r e e t Escond i d o R o a d C a m p u s D r i v e E a s t Bowdoi n S t r e e t Escondido Road Co m s t o c k C i r c l e Angell Cour t Bla c k We l der Court Jenkins C o urt McFar land Cou r t SerraStreet Hosk i ns Co u r t Thoburn Cou r t Hulme Cou r t Ba r n e s Court Olm stead Road D u dl e y Lane Caballo Lane J o hn Ma r thens Lane(Pr ivate ) Pa g e M i l l R oad Ban d e r a d rive Laure l Glenn D r i ve A l exis Dri v e Phillips Roa d Pi s t a c h e P l a c e Sa n t a Y n e z S t r e e t Salvat i e r r a S t r e e t Lane B Alvar a d o A v e n u e Mayfield Avenue Costonzo Street Cabrillo Avenue Ca m p u s D r i v e E a s t San Juan Street Lan e C Co r o n a d o A v e n u e Do l o r e s A v e n u e E l D o r a d o A v e n u e OakCreekDrive Cl a r a D r i v e Bellview Dr E v e r e t t A v e n u e L os Trancos R oad Los T r an c o s R o a d Emerson Street Bryant Street Ramona Street Emerson St Alma Street Waverley Street Alma Street Middlefield Road Webster StreetWebster Street Waverley Street Webster Street Fult on Street Seneca Street Newell Road Fult on Street Coastland Dr Van Auken Circle Louis RoadLouis Road Li n c o l n A v e n u e Un i v e r s i t y A v e n u e Ha m i l t o n A v e n u e Fo r e s t A v e n u e Fo r e s t A v e n u e Ly t t o n A v e n u e Un i v e r s i t y A v e n u e Ha w t h o r n e A v e n u e P a l o A l t o A v e n u e Pa l o A l t o A v e n u e Ch a n n i n g A v e n u e A d d i s o n A v e n u e Ho m e r A v e Ho m e r A v e n u e Me l v i l l e A v e n u e Ch u r c h i l l A v e . S e a l e A v e n u e Em b a r c a d e r o R o a d Em b a r c a d e r o R o a d East Bayshore Road Edgewood Dri v e S a n d a l w o o d C t Mo r t o n S t r e e t H u t c h i n s o n A v e N e w e l l R o a d Guinda Street De S o t o D r i v e No r t h a m p t o n D r i v e Fi e l d i n g D r . Fielding Greer RoadMa d d u x D r i v e G r e e r R o a d Su t t e r A v e n u e Rosewood Dr Ro s e w o o d D r Su t t e r A v e n u e Kipling St Avalon Court Rorke Way Rorke Way N a t h a n W a y L o u i s R o a d C o r i n a W a y F a b i a n W a y Kipling Street Ma r g a r i t a A v e n u e La m b e r t A v e n u e Ma t a d e r o A v e n u e Wi l t o n A v e n u e El Camino Real Pa g e M i l l R o a d Alma Street Byron Street Ca l c a t e r r a P l a c e Ch r i s t o p h e r C t Mo n r o e D r Ma y b e l l A v e n u e Ba r r o n A v e n u e Ha n o v e r S t r e e t Porter Drive Pa g e M i l l R o a d H i l l v i e w A v e n u e Foothill E x p r e s s w a y El Cerrito Road El C e r r i t o R d Glenbro o k D r i v e Willma r D r i v e Miranda A v e n u e Het c h H e t c h y R O W Hetch Hetchy ROW Hil l v i e w A v e n u e Mo a n a C t Arastr a d e r o R o a d Arastrade r o R o a d S A N A N T O N I O A V E N U E Chan n i n g A v e n u e Li n c o l n A v e n u e Li n c o l n A v e n u e Mor t o n S t r e e t Dr. S h a u n a L n S A N A N T O N I O A V E N U E Maddux Drive Va r i a n W a y Sh e r m a n A v e n u e Gr a n t A v e n u e Sh e r i d a n A v e Lo s R o b l e s A v e Sprin g h i l l D r Mapl e w o o d P l Las Tra m p a s V a l l e y R o a d Las Tram p a s V a l l e y R o a d Las Trampas Valley Roa d Vista H i l l R o a d Vis t a H i l l R o a d Vista H i l l R o a d Vist a H i l l R o a d Madera Point Road Las Tr a m p a s V a l l e y R o a d M a d e r a P o i n t R o a d Page M i l l R o a d Page M i l l R o a d Emma Ct G a l v e z M a l l A r g u e l l o W a y Alma Village Circle Alma Village Lane OlmstedRoad OlmstedRoad OlmstedRoad Abrams Ct Olmsted Road Olm s t e d R o a d O l m s t e d R o a d OlmstedRoad This map is a product of the City of Palo Alto GIS This document is a graphic representation only of best available sources. Construction Fund Gas CIP Project Plan 2017-2021: 2017 (GMR 23) 2018 (GMR 24) 2019 (GMR 25) 2020 (GMR 26) 2021 (GMR 27) 0'2500' City of Palo Alto Fiscal Year 2017 Adopted Budget Gas Fund Map 5 Year CIP Project Plan CITY O F PALO A L T O I N C O R P O R A T E D C ALIFO R N I A P a l o A l t o T h e C i t y o f A P R I L 1 6 1 8 9 4 The City of Palo Alto assumes no responsibility for any errors. ©1989 to 2016 City of Palo Alto ssantos, 2016-03-01 07:18:09 Gas Fund Map 2017-2021 (\\cc-maps\gis$\gis\admin\Personal\ssantos.mdb) GAS FUND GAS FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 463 Customer Connections GAS FUND 464 GAS FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Gas System, Customer Connections Gas System, Customer Connections Description This funding allows for the Gas Distribution System to be extended in order to provide gas ser- vice to new customers and augment service to customers with increased natural gas demands. Improvements include new mains, services, valves, regulators, meters, and accessories. Justification This project upgrades infrastructure to provide gas service connections to new customers, meet changes in existing customer service demands, and respond to changes in gas service require- ments due to new development or redevelopment. This project is funded partially from reim- bursements by customers. Significant Changes 2015-2019 CIP: Project was retitled from "Gas Systems Extensions". Fund: Gas Fund - Operating Category: Customer Connections Project Location: Various locations Managing Department: Utilities Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: GS-80017 Gas System Customer Connections Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Gas Fund N/A 313,400 103,000 211,500 217,845 224,380 231,112 238,046 1,122,883 0 N/A Other N/A 639,600 850,000 1,017,000 1,047,510 1,078,935 1,111,303 1,144,642 5,399,390 0 N/A Total N/A 953,000 953,000 1,228,500 1,265,355 1,303,315 1,342,415 1,382,688 6,522,273 0 N/A GAS FUND GAS FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 465 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 953,000 953,000 1,228,500 1,265,355 1,303,315 1,342,415 1,382,688 6,522,273 0 N/A Total N/A 953,000 953,000 1,228,500 1,265,355 1,303,315 1,342,415 1,382,688 6,522,273 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-9 Policy: N-44 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. GAS FUND 466 GAS FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET System Extensions - Unreimbursed System Extensions - Unreimbursed Description This funding allows for the replacement of existing sections of the Gas Distribution System. This project will ensure continuous gas service to existing customers. Improvements include replace- ment of existing main sections, services, valves, regulators, meters, and accessories. Justification This project replaces gas distribution and existing customer service infrastructure. Existing gas service connections are replaced by the Gas Utility to maintain customer service. This project will capture non-reimbursed capital assets installed by staff. Fund: Gas Fund - Operating Category: Customer Connections Project Location: Various locations Managing Department: Utilities Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: GS-03009 New gas main being installed by horizontal direction drill (HDD) method Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Gas Fund N/A 193,401 100,000 198,500 204,455 210,590 216,908 223,415 1,053,868 0 N/A Total N/A 193,401 100,000 198,500 204,455 210,590 216,908 223,415 1,053,868 0 N/A Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 193,401 100,000 198,500 204,455 210,590 216,908 223,415 1,053,868 0 N/A Total N/A 193,401 100,000 198,500 204,455 210,590 216,908 223,415 1,053,868 0 N/A GAS FUND GAS FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 467 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-9 Policy: N-44 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. GAS FUND GAS FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 469 Gas Main Replacements GAS FUND 470 GAS FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Gas Main Replacement - Project 23 Gas Main Replacement - Project 23 Description This project replaces approximately 15,612 linear feet (which represents 1.4% of the City's Gas distribution system) of leaking, inadequately-sized, and structurally deficient gas mains and ser- vices located on various streets, including the Stanford Shopping, Midtown, and El Camino Real business districts. Staff identifies problematic mains/services by researching maintenance and leak histories, analyzing performance of the entire gas distribution system, and considering risks ratings of the Distribution Integrity Management Plan. Justification The project will target replacing PVC mains and services, located in business districts, and steel mains and services with ineffective corrosion protection, also known in the industry as cathodic protection. This project is mandatory due to the need to replace aging infrastructure and to reduce the City's liability exposure due to PVC and steel gas facilities with ineffective cathodic protection. Supplemental Information The City of Palo Alto Distribution Integrity Management Plan's mathematical model is used to evaluate risks presented by PVC facilities, located within business districts, assigned the highest probability and consequences scores. Targeted streets will be coordinated with the Public Works Street Maintenance Program to complete replacement before streets are paved. Linear footage and locations are subject to change. Please refer to the City of Palo Alto Utilities web- page to confirm project details. Fund: Gas Fund - Operating Category: Gas Main Replacements Project Location: Various locations Managing Department: Utilities Initial Project Start: Summer 2016 Initial Project Completion: Winter 2018 Revised Project Start: Revised Project Completion: Project Number: GS-13001 Installation of new HDP gas service main GAS FUND GAS FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 471 Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Gas Fund 0 620,650 80,000 3,550,650 0 0 0 0 3,550,650 0 3,630,650 Total 0 620,650 80,000 3,550,650 0 0 0 0 3,550,650 0 3,630,650 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 620,650 80,000 3,550,650 0 0 0 0 3,550,650 0 3,630,650 Total 0 620,650 80,000 3,550,650 0 0 0 0 3,550,650 0 3,630,650 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-9 Policy: N-44 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. GAS FUND 472 GAS FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Gas Main Replacement - Project 24 Gas Main Replacement - Project 24 Description This project replaces approximately 24,030 linear feet (which represents 2.1% of the City's Gas distribution system) of leaking, inadequately-sized, and structurally deficient gas mains and ser- vices located on various streets, including San Antonio, El Camino Real, and Stanford Industrial business districts. Staff identifies problematic mains/services by researching maintenance and leak histories, analyzing performance of the entire gas distribution system, and considering risks ratings of the Distribution Integrity Management Plan. Justification The project will target replacing PVC mains and services, located in business districts, and steel mains and services with ineffective corrosion protection, also know in the industry as cathodic protection. This project is mandatory due to the need to replace aging infrastructure and to reduce the City's liability exposure due to PVC and steel gas facilities with ineffective cathodic protection. Supplemental Information The City of Palo Alto Distribution Integrity Management Plan's mathematical model is used to evaluate risks presented by PVC facilities, located within business districts, assigned the highest probability and consequences scores. Targeted streets will be coordinated with the Public Works Street Maintenance Program to complete replacement before streets are paved. Linear footage and locations are subject to change. Please refer to the City of Palo Alto Utilities web- page to confirm project details. Fund: Gas Fund - Operating Category: Gas Main Replacements Project Location: Various locations Managing Department: Utilities Initial Project Start: Summer 2017 Initial Project Completion: Winter 2019 Revised Project Start: Revised Project Completion: Project Number: GS-14003 GAS FUND GAS FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 473 Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Gas Fund 0 0 0 640,000 3,100,000 0 0 0 3,740,000 0 3,740,000 Total 0 0 0 640,000 3,100,000 0 0 0 3,740,000 0 3,740,000 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 0 3,100,000 0 0 0 3,100,000 0 3,100,000 Design 0 0 0 640,000 0 0 0 0 640,000 0 640,000 Total 0 0 0 640,000 3,100,000 0 0 0 3,740,000 0 3,740,000 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-9 Policy: N-44 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. GAS FUND 474 GAS FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Gas Main Replacement - Project 25 Gas Main Replacement - Project 25 Description This project replaces approximately 21,623 linear feet (which represents 1.9% of the City's Gas distribution system) of leaking, inadequately-sized, and structurally deficient gas mains and ser- vices located on various streets, including El Camino Real, Stanford Industrial, Bayshore, and Golf Course business districts. Staff identifies problematic mains/services by researching main- tenance and leak histories, analyzing performance of the entire gas distribution system, and considering risks ratings of the Distribution Integrity Management Plan. Justification The project will target replacing PVC mains and services, located in business districts, and steel mains and services with ineffective corrosion protection, also known in the industry as cathodic protection. This project is mandatory due to the need to replace aging infrastructure and to reduce the City's liability exposure due to PVC and steel gas facilities with ineffective cathodic protection. Supplemental Information The City of Palo Alto Distribution Integrity Management Plan's mathematical model is used to evaluate risks presented by PVC facilities, located within business districts, assigned the highest probability and consequences scores. Targeted streets will be coordinated with the Public Works Street Maintenance Program to complete replacement before streets are paved. Linear footage and locations are subject to change. Please refer to the City of Palo Alto Utilities web- page to confirm project details. Fund: Gas Fund - Operating Category: Gas Main Replacements Project Location: Various locations Managing Department: Utilities Initial Project Start: Summer 2018 Initial Project Completion: Winter 2020 Revised Project Start: Revised Project Completion: Project Number: GS-15000 New gas service meter and regulating equipment GAS FUND GAS FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 475 Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Gas Fund 0 0 0 0 659,000 3,200,000 0 0 3,859,000 0 3,859,000 Total 0 0 0 0 659,000 3,200,000 0 0 3,859,000 0 3,859,000 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 0 0 3,200,000 0 0 3,200,000 0 3,200,000 Design 0 0 0 0 659,000 0 0 0 659,000 0 659,000 Total 0 0 0 0 659,000 3,200,000 0 0 3,859,000 0 3,859,000 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-9 Policy: N-44 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. GAS FUND 476 GAS FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Gas Main Replacement - Project 26 Gas Main Replacement - Project 26 Description This project replaces approximately 13,471 linear feet (which represents 1.2% of the City's Gas distribution system) of leaking, inadequately-sized, and structurally deficient gas mains and ser- vices located on various streets in the University Park and Crescent Park neighborhoods. Staff identifies problematic mains/services by researching maintenance and leak histories, analyzing performance of the entire gas distribution system, and considering risks ratings of the Distribu- tion Integrity Management Plan. Justification The project will target replacing PVC mains and services, located in business districts, and steel mains and services with ineffective corrosion protection, also known in the industry as cathodic protection. This project is mandatory due to the need to replace aging infrastructure and to reduce the City's liability exposure due to PVC and steel gas facilities with ineffective cathodic protection. Supplemental Information The City of Palo Alto Distribution Integrity Management Plan's mathematical model is used to evaluate risks presented by PVC facilities, located within business districts, assigned the highest probability and consequences scores. Targeted streets will be coordinated with the Public Works Street Maintenance Program to complete replacement before streets are paved. Linear footage and locations are subject to change. Please refer to the City of Palo Alto Utilities web- page to confirm project details. Fund: Gas Fund - Operating Category: Gas Main Replacements Project Location: Various locations Managing Department: Utilities Initial Project Start: Summer 2019 Initial Project Completion: Winter 2021 Revised Project Start: Revised Project Completion: Project Number: GS-16000 Gas Main Replacement - Project 26 GAS FUND GAS FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 477 Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Gas Fund 0 0 0 0 0 678,200 3,300,000 0 3,978,200 0 3,978,200 Total 0 0 0 0 0 678,200 3,300,000 0 3,978,200 0 3,978,200 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Design 0 0 0 0 0 678,200 3,300,000 0 3,978,200 0 3,978,200 Total 0 0 0 0 0 678,200 3,300,000 0 3,978,200 0 3,978,200 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-9 Policy: N-44 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. GAS FUND 478 GAS FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Gas Main Replacement - Project 27 Gas Main Replacement - Project 27 Description This project replaces approximately 15,655 linear feet (which represents 1.4 percent of the City's gas distribution system) of leaking, inadequately-sized, and structurally deficient gas mains and services located on various streets in the University South neighborhoods. Staff identifies prob- lematic mains/services by researching maintenance and leak histories, analyzing performance of the entire gas distribution system, and considering risks ratings of the Distribution Integrity Management Plan. Justification The project will target replacing PVC mains and services, located in business districts, and steel mains and services with ineffective corrosion protection, also known in the industry as cathodic protection. This project is mandatory due to the need to replace aging infrastructure and to reduce the City's liability exposure due to PVC and steel gas facilities with ineffective cathodic protection. Supplemental Information The City of Palo Alto Distribution Integrity Management Plan's mathematical model is used to evaluate risks presented by PVC facilities, located within business districts, assigned the highest probability and consequences scores. Targeted streets will be coordinated with the Public Works Street Maintenance Program to complete replacement before streets are paved. Linear footage and locations are subject to change. Please refer to the City of Palo Alto Utilities web- page to confirm project details. Fund: Gas Fund - Operating Category: Gas Main Replacements Project Location: Various locations Managing Department: Utilities Initial Project Start: Summer 2020 Initial Project Completion: Winter 2022 Revised Project Start: Revised Project Completion: Project Number: GS-20000 New gas service meter and regulating equipment GAS FUND GAS FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 479 Significant Changes 2016-2010 CIP: Project established. Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Gas Fund 0 0 0 0 0 0 700,000 3,400,000 4,100,000 0 4,100,000 Total 0 0 0 0 0 0 700,000 3,400,000 4,100,000 0 4,100,000 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 0 0 0 0 3,400,000 3,400,000 0 3,400,000 Design 0 0 0 0 0 0 700,000 0 700,000 0 700,000 Total 0 0 0 0 0 0 700,000 3,400,000 4,100,000 0 4,100,000 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-9 Policy: N-44 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. GAS FUND 480 GAS FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Gas Main Replacement - Project 28 Gas Main Replacement - Project 28 Description This project replaces approximately 12,500 linear feet (which represents 1.1% of the City's Gas distribution system) of leaking, inadequately-sized, and structurally deficient gas mains and ser- vices located on various streets in the University South and Old Palo Alto neighborhoods. Staff identifies problematic mains/services by researching maintenance and leak histories, analyzing performance of the entire gas distribution system, and considering risks ratings of the Distribu- tion Integrity Management Plan. Justification The project will target replacing PVC mains and services, located in business districts, and steel mains and services with ineffective corrosion protection, also known in the industry as cathodic protection. This project is mandatory due to the need to replace aging infrastructure and to reduce the Cityís liability exposure due to PVC and steel gas facilities with ineffective cathodic protection. Significant Changes 2017-2021 CIP: Project established. Fund: Gas Fund - Operating Category: Gas Main Replacements Project Location: University South and Old Palo Alto neighborhoods Managing Department: Utilities Initial Project Start: Summer 2021 Initial Project Completion: Winter 2023 Revised Project Start: Revised Project Completion: Project Number: GS-20001 Gas Main Replacement, January 2016 Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Gas Fund 0 0 0 0 0 0 0 721,000 721,000 0 721,000 Total 0 0 0 0 0 0 0 721,000 721,000 0 721,000 GAS FUND GAS FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 481 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Design 0 0 0 0 0 0 0 721,000 721,000 0 721,000 Total 0 0 0 0 0 0 0 721,000 721,000 0 721,000 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-9 Policy: N-44 Program: N-63 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. GAS FUND GAS FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 483 System Improvements GAS FUND 484 GAS FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Gas Distribution System Improvements Gas Distribution System Improvements Description This project provides funding as needed to improve the Gas Distribution System. Typical activi- ties include: increasing distribution system capacity for load growth, replacing deteriorated cap- ital facilities, reconfiguring/adding to the system to improve service reliability, conducting research related to performance of the gas distribution system or its various components, and making general improvements to the system. Justification Gas Distribution System reliability and adequate capacity are critical to providing a high level of service to customers. When service interruptions occur, customers may experience significant economic losses. The City must continuously evaluate service reliability needs and make improvements to the system to maintain top level service to City customers. Fund: Gas Fund - Operating Category: System Improvements Project Location: Various locations Managing Department: Utilities Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: GS-11002 Gas System Improvements Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Gas Fund N/A 377,293 300,000 231,913 238,870 246,036 253,417 261,020 1,231,256 0 N/A Total N/A 377,293 300,000 231,913 238,870 246,036 253,417 261,020 1,231,256 0 N/A GAS FUND GAS FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 485 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 377,293 300,000 231,913 238,870 246,036 253,417 261,020 1,231,256 0 N/A Total N/A 377,293 300,000 231,913 238,870 246,036 253,417 261,020 1,231,256 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-9 Policy: N-44 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. GAS FUND 486 GAS FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Gas Equipment and Tools Gas Equipment and Tools Description This project funds the purchase of polyethylene (PE) fusion equipment and tools, directional boring/locating equipment and tools, and general shop equipment and tools. Justification In order to safely operate and maintain a natural gas distribution system, and support operating personnel safety and productivity, directional boring/locating and fusion equipment and tools need to be upgraded on an annual basis. Significant Changes 2015-2019 CIP: Project was retitled from "General Shop Equipment and Tools". Fund: Gas Fund - Operating Category: System Improvements Project Location: Municipal Service Center Managing Department: Utilities Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: GS-13002 New HDPE gas pipe being fused prior to installation Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Gas Fund N/A 117,869 80,000 100,000 100,000 100,000 100,000 100,000 500,000 0 N/A Total N/A 117,869 80,000 100,000 100,000 100,000 100,000 100,000 500,000 0 N/A Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 17,869 0 0 0 0 0 0 0 0 N/A Other N/A 100,000 80,000 100,000 100,000 100,000 100,000 100,000 500,000 0 N/A Total N/A 117,869 80,000 100,000 100,000 100,000 100,000 100,000 500,000 0 N/A GAS FUND GAS FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 487 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-9 Policy: N-44 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. GAS FUND 488 GAS FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Gas Meters and Regulators Gas Meters and Regulators Description This project provides replacement of the existing meters and regulators for approximately 2,000 meter sets per year. Justification The meter replacement program ensures accuracy of gas consumption measurement, reducing possible revenue loss due to under-registering gas and provides customers with accurate monthly bills. The program exchanges large meters (630 cubic feet per hour and larger) every 10 years and smaller meters every 17 to 20 years. Fund: Gas Fund - Operating Category: System Improvements Project Location: Various locations Managing Department: Utilities Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: GS-80019 Gas Meters and Regulators Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Gas Fund N/A 347,799 347,799 355,030 365,681 376,652 387,952 399,591 1,884,906 0 N/A Total N/A 347,799 347,799 355,030 365,681 376,652 387,952 399,591 1,884,906 0 N/A Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 347,799 347,799 355,030 365,681 376,652 387,952 399,591 1,884,906 0 N/A Total N/A 347,799 347,799 355,030 365,681 376,652 387,952 399,591 1,884,906 0 N/A GAS FUND GAS FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 489 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-9 Policy: N-44 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 519 WASTEWATER COLLECTION FUND WASTEWATER COLLECTION FUND WASTEWATER COLLECTION FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 521 WASTEWATER COLLE Overview The City of Palo Alto is the only municipality in California that operates a full suite of City- owned utility services. The municipal wastewater collection system began operation in 1898 and continues to provide safe, reliable, and cost effective wastewater service to residents and customers of Palo Alto. For the 2017-2021 Capital Improvement Program (CIP), approximately $25.6 million is programmed, with $4.8 million allocated in Fiscal Year 2017. Overall, a total of ten projects are programmed for the 5-year CIP. Major projects funded in the 2017-2021 CIP include Wastewater Collection System Rehabilitation/Augmentation projects (cumulative total of $18.7 million), Sewer Lateral/Manhole Rehabilitation and Replacement ($3.3 million), and Sewer System Customer Connections ($2.1 million). The budget for the Wastewater Collection Fund CIP is broken into two separate categories: Customer Connections and System Improve- ments. Customer Connections As customers continually change their wastewater needs due to equipment additions, new con- struction, building expansions, building remodels, teardowns and rebuilds, and new building occupancy types, the wastewa- ter collection system evolve to meet these needs. The Sewer System Customer Connections project is the only project within this category and includes work required to meet the needs of customers who have applied for new sewer laterals. The Wastewater Fund pays for a portion of this project, while remaining costs are supported by reimbursements from customers for proj- ect work performed by the City. Recent Accomplishments In Fiscal Year 2015 the Utilities Wastewater Division completed over 58 customer service proj- ects with a total cost of $0.3 million. Infrastructure Inventory CLASSIFICATION QUANTITY Total miles of sanitary sewer lines 217 miles Total number of sanitary laterals 18,141 $0 $4,000,000 $8,000,000 $12,000,000 $16,000,000 2013 Actuals 2015 Actuals FY 2017 Proposed FY 2019 Projected FY 2021 Projected Wastewater Collection Fund Capital Expenditures WASTEWATER COLLECTION FUND 522 WASTEWATER COLLECTION FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 2017-2021 Capital Improvement Program Recurring Projects There is only one project within this category, the Sewer System Customer Connections project of $2.1 million. This project funds customer connections and offset by reimbursements from cus- tomers. Non-Recurring Projects There are no non-recurring projects in this category. System Improvement To ensure reliable wastewater services for the City of Palo Alto residents and customers, infra- structure must be replaced upon reaching the end of its useful life. The infrastructure replace- ment program includes projects that will rehabilitate or replace deteriorated pipelines. In the next five years, it is estimated that approximately 91,917 linear feet of wastewater mains will be replaced. Recent Accomplishments Began construction of multi-year CIP projects for Wastewater Collection System Rehabilitation/Augmentation Projects 24, 25, & 26 which includes replacement of 42,398 linear feet of wastewater mains and 779 sewer laterals. Completed the design of 15,753 linear feet of wastewater mains and 259 wastewater laterals as part of CIP project Wastewater Collection System Rehabilitation/Augmentation Projects 27. 2017-2021 Capital Improvement Program Recurring Projects A total of $23.5 million is programmed for System Improvement recurring projects in the 2017- 2021 CIP, with $4.4 million allocated in Fiscal Year 2017. Recurring projects in this category include the following: Wastewater System Improvements (Fiscal Year 2017: $0.2 million; 5-Year CIP: $1.3 million) Wastewater General Equipment and Tools (Fiscal Year 2017: $0.05 million; 5-Year CIP: $0.3 million) Sewer Lateral/Manhole Rehabilitation and Replacement (Fiscal Year 2017: $0.6 million; 5- Year CIP: $3.3 million) Non-Recurring Projects The majority of funding within this category is allocated towards Wastewater Collection System Rehabilitation/Augmentation Projects (cumulative total of $18.7 million). These projects imple- ment high priority rehabilitation, augmentation, and lateral replacement work which reduces inflow of rainfall and ground water into the collection system. The Utilities Department coordi- WASTEWATER COLLECTION FUND WASTEWATER COLLECTION FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 523 nates with the Public Works Department’s street maintenance projects to minimize damage to the City’s pavement and maximize cost efficiencies. Linear footage and locations are subject to change, please refer to the City of Palo Alto Utilities webpage to confirm project details: http://www.cityofpaloalto.org/gov/depts/utl/projects/ default.asp. Summary of Capital Activity WASTEWATER COLLECTION FUND Project Number Project Title FY 2015 Actuals FY 2016 Estimate FY 2017 Proposed FY 2018 FY 2019 FY 2020 FY 2021 5-Year Total Source of Funds Other Revenues WC-80020 Sewer System, Customer Connections 1,385,192 373,098 394,000 405,820 417,995 430,534 443,450 2,091,799 Other Revenue Total 1,385,192 373,098 394,000 405,820 417,995 430,534 443,450 2,091,799 Total Sources 1,385,192 373,098 394,000 405,820 417,995 430,534 443,450 2,091,799 Use of Funds Customer Connections WC-80020 Sewer System, Customer Connections 319,952 373,098 394,000 405,820 417,995 430,534 443,450 2,091,799 Customer Connections Total 319,952 373,098 394,000 405,820 417,995 430,534 443,450 2,091,799 System Improvements WC-99013 Sewer Lateral/Manhole Rehabilitation and Replacement 357,207 1,221,411 618,000 636,540 655,636 675,305 695,564 3,281,045 WC-08012 Wastewater Collection System Rehabilitation/ Augmentation Project 21 36,961 0 0 0 0 0 0 0 WC-09001 Wastewater Collection System Rehabilitation/ Augmentation Project 22 49,901 0 0 0 0 0 0 0 WC-10002 Wastewater Collection System Rehabilitation/ Augmentation Project 23 290,027 982,263 0 0 0 0 0 0 WC-11000 Wastewater Collection System Rehabilitation/ Augmentation Project 24 172,305 2,340,130 0 0 0 0 0 0 WC-12001 Wastewater Collection System Rehabilitation/ Augmentation Project 25 168,802 2,686,175 0 0 0 0 0 0 WC-13001 Wastewater Collection System Rehabilitation/ Augmentation Project 26 108,901 3,163,649 0 0 0 0 0 0 WC-14001 Wastewater Collection System Rehabilitation/ Augmentation Project 27 103,583 3,306,417 0 0 0 0 0 0 WC-15001 Wastewater Collection System Rehabilitation/ Augmentation Project 28 0 330,000 3,183,000 0 0 0 0 3,183,000 WC-16001 Wastewater Collection System Rehabilitation/ Augmentation Project 29 0 0 327,849 3,278,490 0 0 0 3,606,339 WC-17001 Wastewater Collection System Rehabilitation/ Augmentation Project 30 0 0 0 337,684 3,376,845 0 0 3,714,529 WASTEWATER COLLECTION FUND 524 WASTEWATER COLLECTION FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET WC-19001 Wastewater Collection System Rehabilitation/ Augmentation Project 31 0 0 0 0 372,185 3,478,150 0 3,850,335 WC-20000 Wastewater Collection System Rehabilitation/ Augmentation Project 32 0 0 0 0 0 358,249 3,582,495 3,940,744 WC-21000 Wastewater Collection System Rehabilitation/ Augmentation Project 33 0 0 0 0 0 0 368,997 368,997 WC-13002 Wastewater General Equipment and Tools 0 50,000 50,000 50,000 50,000 50,000 50,000 250,000 WC-15002 Wastewater System Improvements 70,721 290,264 239,000 246,000 253,000 260,000 269,000 1,267,000 System Improvements Total 1,358,408 14,370,309 4,417,849 4,548,714 4,707,666 4,821,704 4,966,056 23,461,989 Total Uses 1,678,360 14,743,407 4,811,849 4,954,534 5,125,661 5,252,238 5,409,506 25,553,788 Project Number Project Title FY 2015 Actuals FY 2016 Estimate FY 2017 Proposed FY 2018 FY 2019 FY 2020 FY 2021 5-Year Total Pag e M ill R o a d Arastradero Road E l C a m i n o R e a l S a n A n t o n i o A v e n u e C h a r l e s t on Ro a d O r e g o n E x p r e s s w a y M i d d l e f i e l d R o a dUn i v e r s i t y Ave n u e A l m a S t r e e t F o o t h i l l E x p r e s s w a y L o s T r a n c o s R o a d East Bay s h o r e West Bay s h o r e F a b i a n Sa n d H i l l R o a d Em b a r c a d e r o R o a d W a l l i s C t Donald D r i v e En c i n a G r a n d e D r i v e Ce r e z a D r i v e Lo s R o b l e s A v e Villa Vera Verdosa Drive Campana Drive Solana Drive Georgi a A v e Ynigo Way Drisc o l l C t n g Art hur'Maybell Way Ma y b e l l A v e n u e Frandon Ct Fl o r a l e s D r i v e Ge o r g i a A v e n u e Amaranta Avenue A m a r a n t a C t MirandaGreen Foot h i l l E x p r e s s w a y Ki s Cour t Terman Drive Baker Avenue Vi s t a A v e n u e Wisteria Lane Pena Ct Coulombe Drive Cherry Oaks Pla c e Pomona Avenu e Ar a s t r a d e r o R d Abel Avenue Clemo Avenue V i l l a R e a l Cu r t n e r A v e n u e Ve n t u r a A v e n u e Ma c l a n e Emerson Street Ventura Court Park Boulevard Ma g n o l i a D r i v e S o u t h Cypress Lane (Private) GlenbrookD Fa i r m e d e A v e n u e A r a s t r a d e r o R o a d Ir v e n C o u r t Lo s P a l o s C i r Los PalosPlace Ma y b e l l A v e n u e Alta Mesa Ave Ke l l y W a y Los Pa l o s A v e Suzan n e D r i v e Suzan n e D r i v e r i ve El Ca m i n o R e a l Su z a n n e C t Lor a b e l l e C t McKell a r L a n e El C a m i n o W a y Ja m e s R o a d Ma c l a n e Second Street Wilkie Way Cam i n o C o u r t We s t M e a d o w D r i v e Thain Way Ba r c l a y C t Vi c t o r i a P l Interdale Way ( P v t ) We s t C h a r l e s t o n R o a d Te n n e s s e e L a n e Wilkie Way Ca r o l i n a L a n e Te n n e s s e e L a n e Park Boulevard Wi l k i e C o u r t Da v e n p o r t W a y Alma Street Roosev Mo n r o e D r i v e Wilkie W a y Whitclem P l a c e Wh i t c l e m D r i v e Du l u t h C i r c l e Ed l e e A v e n u e Di n a h ' s C o u r t Ce s a n o C t Mo n r o e D r i v e Miller Ave Whitclem Way Whitclem Ct Fe r n e A v e n u e B e n L o m o n d D r i v e Fa i r f i e l d C t Fe r n e A v e n u e Ponce DriveHemlockCourt Ferne Court Alma Street Mo n r o e D r Sa n A n t o n i o A v e n u e NitaAvenue Ruthelma Ave n u e Da r l i n g t o n C o u r t Ch a r l e s t o n R d Lundy Lane Ne w b e r r y C t Park Boulevard Ge o r g e H o o d L a n e Alma Street elt Circle LinderoDrive Wright Place Starr King Circle Sh a s t a D r i v e Mackay DriveDi a b l o C o u r t Scripps Avenue S c r i p p s C o u r t Nelson Drive Ti o g a C o u r t Cr e e k s i d e D r i v e Gr e e n m e a d o w W a y B e n L o m o n d D r i v e P a r k s i d e D r i v e Dixon Place El y P l a c e Dake Avenue Ferne Avenue San Antonio Court (Private) El y P l Ely P l a c e Ado b e P l a c e Nels o n C t Ke a t s C o u r t Middlefield Road Duncan Place Carlso n C o u r t D u n c a n P l a c e Mumford Pl Ch a r l e s t o n R d S a n A n t o n i o A v e n u e E a s t M e a d o w D r i v e Emerson Street Court Bry a n t S t r ee t Roosev elt Ci rcle RamonaStreet CarlsonCircle Redwoo d Ci rcleSouth Legh o r n S t r e e t M o n t r o s e A v e n u e M a p l e w o o d A v e n u e Charl e s t o n C t Cha r l e s t o n R o a d Sem i n o l e W a y Sutherland Drive Nelson D r i v e El C a p i t a n P l a c e Fabia n S t r e e t Lo m a V e r d e A v e n u e Bry s o n A v e n u e Midtown Court Cowper St Ga r y C t Waverley Street South Court Bryant Street Ramona Street Alma Street Co a s t l a n d D r Byron Street Middlefield Road Gaspar Ct Mo r e n o A v e n u e E l C a r m e l o A v e n u e Ca m p e s i n o A v e n u e Dy m o n d C t Ma r t i n s e n C t Ramona Street Bryant Street To w l e W a y Towle Pl We l l s b u r y C t FlowersLane Mackall Way Lo m a V e r d e A v e Cowper Street South Court Waverl e y S t r e e t E l V e r a n o A v e n u e We l l s b u r y W a y La Middlefield Road S t C l a i r e D r i v e Alg e r D r i v e As h t o n A v e n u e St Michael Drive St Michael Drive Ma u r e e n A v e Co w p e r C o u r t Rambow Drive Ea s t M e a d o w D r i v e Ashton Co u r t Murdoch Drive Cow p e r Street Mu r d o c h C t St Michael Court MayCourt Ma y v i e w A v e n u e Middle f i e l d R o a d En s i g n W a y Bib b i t s D r i v e Gai l e n C o u r t Gai l e n A v e n u e Gro v e A v e n u e S a n A n t o n i o A v e C o m m e r c i a l S t r e e t I n d u s t r i a l A v e n u e B i b b i t s D r i v e Charle s t o n R o a d F a b i a n W a y T Ea s t M e a d o w D r i v e Grove AvenueCh r i s t i n e D r i v e Co r i n a W a y Ross R o a d C o r i n a W a y L o u i s R d N a t h a n W y Transport S t r e e t Ort e g a C o u r t Ea s t M e a d o w D r i v e yneCourt alisman Lo m a V e r d e A v e n u e A l l e n C t Ro s s C o u r t Loma Verde Place Am e s A v e n u e Ri c h a r d s o n C o u r t Holly Oak Drive Am e s A v e CorkOakWay Middlefield Road Ames Ct Am e s A v e n u e Ross Road Rorke Way St o n e L a n e To y o n P l a c e To r r e y a C o u r t Lupine Avenue Th o r n w o o d D r i v e DriftwoodDrive Ta l i s m a n D r i v e Arbutus Avenue Ross Road Louis Road As p e n W a y Evergreen Drive East M e a d o w D r i v e Co r p o r a t i o n W a y El w e l l C o u r t Janice Way East Meadow Ci r c l e East Meadow Circle GreerRoad Bayshore F r e e w a y El l s w o r t h P l Sa n C a r l o s C t Wi n t e r g r e e n W a y Su t t e r A v e n u e Cla r a D r i v e Price Ct S t e r n A v e n u e Co l o r a d o A v e n u e Randers Ct Ross Rd. Sy c a m o r e D r i v e Sevyson Ct Stelling Drive Ross Road David Avenue Mur rayWay Stell i n g D r i v e St e l l i n g C t ManchesterCourt K e n n e t h D r i v e ThomasD ri v e Stockton Place Vernon Terrace Louis Road Ja n i c e W a y Th o m a s D r Ke n n e t h D r i v e Lo m a V e r d e A v e n u e CliftonCourt Elbri dg e Way Cla r a D r i v e Baut istaCourtStockton Place Morris Drive Ma d d u x D r Pi e r s C t Louis Road Mo r a g a C t O l d P a g e M i l l R o a d Deer Creek Road C oy o t e H i l l Ro ad Hil l v i e w A v e n u e Porter Drive Hillview Ave Ha n o v e r S t r e e t Foothill Expressway Ara s t r a d e r o R o a d Miranda Avenue S t a n f o r d A v e n u e Amherst Street Columbia Street Bowdoin Street Dartmouth Street Hanover Street Co l l e g e A v e n u e Ca l i f o r n i a A v e n u e Hanover Street Ramos Way (Private) Pa g e M i l l R o a d Hansen Way Hanover Street Ol d A d o b e R o a d Old Trace Co u r t Ara s t r a d e r o R o a d Miranda Avenue Mockingbird Lane OldTraceRoad Manu e l a W a y Ro bb Road Manu e l a C o u r t Mesa A v e n u e O a k H i l l A v e n u e M a n u e l a A v e n u e M i r a n d a A v e n u e La g u n a C t Ba r r o n A v e Jo s i n a A v e K e n d a l l A v e Tippawingo St Julie CtMa t a d e r o A v e n u e Il i m a W a y Il i m a C o u r t La g u n a O a k s P l Carlitos Ct La Calle Laguna Ave Pa r a d i s e W a y Ro b l e R i d g e L a MataWay Ch i m a l u s D r i v e Ma t a d e r o A v e Pa u l A v e n u e Ke n d a l l A v e n u e Whitsell Avenue Ba r r o n A v e n u e Cass Way L o s R o b l e s A v e Laguna Way La P a r a A v e n u e Sa n J u d e A v e n u e El Centro Street Ti m l o t t L a n e La J e n n i f e r W a y Ma g n o l i a D r i v e N o r t h La Donna Avenue Rinc Manzana Lane on C ircle MesaCourt C r o s b y P l G e o r g i a A v e n u e Hubba r t t D r i v e Wi l l m a r D r i v e Donald Dr Ara s t r a d e r o R o a d Foothil l E x p r e s s w a y Mira n d a A v e n u e Sa n J u d e A v e Magnolia Drive Mi l i t a r y W a y Arbol Drive Orme Street Fe r n a n d o A v e n u e Ma t a d e r o A v e n u e La m b e r t A v e n u e Ha n s e n W a y Ma r g a r i t a A v e n u e Ma t a d e r o A v e n u e Wi l t o n A v e n u e Ox f o r d A v e n u e Harvard Street Ca l i f o r n i a A v e Wellesley Street Princeton Street Oberlin Street Cornell Street Ca m b r i d g e A v e Co l l e g e A v e n u e Williams Street Yale St Staunton Ct Ox f o r d A v e n u e El Camino R e a l Ch u r c h i l l A v e n u e Par k B o u l e v a r d Pa r k A v e n u e Escobita Ave n u e Ch u r c h i l l A v e n u e Se q u o i a A v e n u e Mariposa Avenue Castilleja Avenue Mir a m o n t e A v e n u e Madrono Ave n u e Portola Aven u e Ma n z a n i t a A v e n u e Co l e r i d g e A v e n u e Le l a n d A v e n u e St a n f o r d A v e n u e Birch Street Ash Street Lo w e l l A v e n u e Alma Street Te n n y s o n A v e n u e Gr a n t A v e n u e Sh e r i d a n A v e Ja c a r a n d a L n El Camino Real Sh e r m a n A v e n u e Ash St Pa g e M i l l R o a d Mimosa Ln Ch e s t n u t A v e n u e Po r t a g e A v e n u e Pe p p e r A v e n u e Ol i v e A v e n u e Ac a c i a A v e n u e Emerson Street Park Boulevard Orinda Street Birch St Ash Street Pa g e M i l l R o a d Ash Street Park Blvd Co l l e g e A v e n u e Ca m b r i d g e A v e Ne w M a y f i e l d L n Birch Street Ca l i f o r n i a A v e Park BlvdNogal Lane Ri n c o n a d a A v e n u e S a n t a R i t a A v e n u e Park Boulevard Se a l e A v e n u e Wa s h i n g t o n A v e Sa n t a R i t a A v e n u e Bryant Street High Street Emerson Street Co l o r a d o A v e Street Ramona Street Bryant Street South Court E l D o r a d o A v e n u e Alma Street Alma Street HighStreet Emerson Wa v e r l e y O a k s ( P r i v a t e ) Wa s h i n g t o n A v e n u e Bryant Street South Court Waverley Street Emerson St Ne v a d a A v e N C a l i f A v e Ramona St High Street No r t h C a l i f o r n i a A v e n u e Or e g o n E x p w y Ma r i o n A v e n u e Ramona Street Co l o r a d o A v e n u e Waverley Street Kipling Street South Court Cowper Street An t o n C t Ne v a d a A v e n u e Tasso StreetTasso Street Or e g o n A v e n u e Marion Place We b s t e r S t Middlefield Road Ross Road Wa r r e n W a y El Cajon Way P r i m r o s e W a y Iri s W a y Tul i p L a n e Tulip La n e Ga r l a n d D r i v e G r e e r R o a d G r e e r R o a d Hami l t o n A v e n u e H i l b a r L a n e Alannah Ct Edge Rh o d e s D r i v e Marshall Drive Mo r e n o A v e n u e Marshal l Drive De n n i s D r . Agnes WayOr e g o n A v e . Bl a i r C o u r t Santa Ana Street El s i n o r e D r i v e Elsinore Court El Cajon Way Greer Road Ca l i f o r n i a A v e n u e Co l o r a d o A v e n u e Sy c a m o r e D r i v e Am a r i l l o A v e n u e l Bru c e D r i v e Co l o n i a l L a n e Mo r e n o A v e n u e Ce l i a D r i v e Burnham Way Greer Road Indian Drive Elmdale Pl C Tanland Drive Mo r e n o A v e n u e Am a r i l l o A v e n u e West Bays h o r e R o a d Sandra Place Clara Drive Co l o r a d o A v e n u e Greer Road Co l o r a d o A v e n u e Simkins Court Ot t e r s o n C t Higgins Pl. La w r e n c e L a n e Maddux Drive Genevieve Ct MetroCircle MoffettCircle Greer Road East Baysh o r e R o a d ardinalWay Santa Catalina Street ArrowheadWayAztec Way Chabot Terrace Or e g o n A v e n u e Carmel Drive Sierra Court St Francis Drive West Bayshore R o a d Tanland Dr. Ea s t B a y s h o r e R o a d woodDr i v e Edgewood Dri v e Wildwood Lane Ivy La n e East Bayshore Road S t F r a n c i s D r i v e Wi l d w o o d L a n e Wat s o n C o u r t Lau r a L a n e O'B r i n e L a n e ( P r i v a t e ) Emb a r c a d e r o R o a d FaberPlaceEm b a r c a d e r o R o a d Ge n g R o a d Embarcad e r o W a y Em b a r c a d e r o R o a d C ountry C l ub Co u r t Al e x i s D r i v e AlexisDr i v e Pasteur D r i v e Q u a r r y R o a d Welch R o a d Arboretum R o a d Qu a r r y R o a d Sa n d H i l l R o a d Ho m e r A v e n u e Lane 8 West Med i c a l F o u n d a t i o n W a y Lane 7 West Lane 7 East Em b a r c a d e r o R o a d Enc i n a A v e n u e El Camino Re a l Urb a n L a n e Wel l s A v e n u e Fo r e s t A v e n u e High Street Emerson Street Ch a n n i n g A v e Alma Street Alma Street El Camino Real Mit chell Lane Ha w t h o r n e A v e n u e E v e r e t t A v e n u e Ly t t o n A v e n u e Lane 15 E High Street Alma Street Bryant Street Lane 6 E Lane 11 W La n e 2 1 Gilman Street Ha m i l t o n A v e n u e Un i v e r s i t y A v e n u e Br y a n t C o u r t La n e 3 0 Florence Street Kipling Street Tasso Street Cowper Street Ru t h v e n A v e n u e La n e 3 3 Palo Alto A venue P o e S t r e e t Waverley Street Tasso Street Cowper Street Palo Alto Avenue Webster Street E v e r e t t C o u r t Byron Street Fult on Street Middlefield R o a d Ch u r c h i l l A v e n u e Te n n y s o n A v e n u e Me l v i l l e A v e n u e Cowper Street Tasso Street Webster Street Byron Street No r t h C a l i f o r n i a A v e n u e Co l e r i d g e A v e n u e Waverley Street Bryant Street Emerson Street Alma StreetKi n g s l e y A v e Po r t a l P l a c e Ross Road Or e g o n A v e n u e Ga r l a n d D r i v e Lane A West Lane B West Lane B East Lane D West Lane 59 East Wh i t m a n C o u r t K e l l o g g A v e n u e Em b a r c a d e r o R o a d K i n g s l e y A v e n u e Li n c o l n A v e n u e Ad d i s o n A v e . Li n c o l n A v e n u e Downing Lane Ho m e r A v e n u e Lane D East Lane 39 Lane 56(Pvt.) Ha m i l t o n A v e n u e Webster Street Waverley Street Kipling Street Bryant Street Ramona Street Scott Street Byron Street Palo Hale Street Seneca Street Ly t t o n A v e n u e P a lo AltoAvenue Fult on Street K e l l o g g A v e n u e Middlefield Road Byron Street Webster Street Cowper Street Tasso Street Cowper Street Ad d i s o n A v e n u e B o y c e A v e n u e Ha m i l t o n A v e n u e Ho m e r A v e n u e Guinda Street Middlefield Road Ch a n n i n g A v e n u e AltoAvenueChaucer StreetCh a u c e r S t r e e t Un i v e r s i t y A v e n u e A d d i s o n A v e n u e Rege n t P l Guinda Street Li n c o l n A v e n u e Fult on Street M e l v i l l e A v e n u e Byron Street K i n g s l e y A v e n u e Me l v i l l e A v e n u e Ham i l t o n A v e n u e H a m i l t o n C t Fore s t A v e n u e F o r e s t C t M a r l o w e S t r e e t M a p l e S t r e e t P a l m S t r e e t Som e r s e t P l Pitm a n A v e n u e Fife A v e n u e Fore s t A v e n u e Dana A v e n u e Li n c o l n A v e n u e Unive r s i t y A v e n u e Co l e r i d g e A v e n u e Lo w e l l A v e n u e Cowper Street Te n n y s o n A v e n u e No r t h a m p t o n D r i v e We s t G r e e n w i c h P l Middlefield Road Newell Road Guinda Street E a s t G r e e n w i c h P l So u t h a m p t o n D r i v e K i r b y P l Kent P l a c e Tevis P l Martin A v e n u e C e n t e r D r i v e H a r r i e t S t r e e t Wi l s o n S t r e e t C e d a r S t r e e t Hark e r A v e n u e Gree n w o o d A v e n u e H u t c h i n s o n A v e Chan n i n g A v e n u e Hopk i n s A v e n u e Em b a r c a d e r o R o a d Ashby Dr i v e Dana Ave n u e Hamilton A v e n u e Pitman A v e n u e So u t h w o o d D r i v e WestCrescent Driv e CrescentDrive Un i v e r s i t y A v e n u e Cent e r D r i v e EastCrescen Arcadia P l a c e Louisa Court Newe l l P l S h a r o n C t E r s t w i l d C o u r t W a l t e r H a y s D r i v e Waln u t D r i v e N e w e l l R o a d Parki n s o n A v e n u e Pi n e S t r e e t Mark Twain Street Louis Road Barbara Drive P r i m r o s e W a y Iris W a y Em b a r c a d e r o R o a d Wal t e r H a y s D r i v e Loi s L a n e Jorda n P l Lois L a n e H e a t h e r L a n e Bret Harte Street St a n l e y W a y De S o t o D r i v e De S o t o D r i v e A l e s t e r A v e n u e Walte r H a y s D r i v e Chan n i n g A v e n u e Iris W a y tDrive Dana Avenue Hamilton Aven u e Ne w e l l R o a d Kings Lan e Edgewood Dr ive I s l a n d D r i v e Je f f e r s o n D r i v e Jackson Dr i v e P a t r i c i a L a n e M a d i s o n W a y Edgewood D r i v e Ramona Street Ad d i s o n A v e n u e Ch a n n i n g A v e n u e Te n n y s o n A v e n u e Se a l e A v e n u e Middlefield Road Byron Street Webster Street Ma r i o n A v e n u e We l c h R o a d Sedro Ln Peral Lane Mc G r e g o r W a y Mo n r o e D r i v e Silva Ave Si l v a C o u r t Mi l l e r C o u r t Briarwood Way Dr i s c o l l P l a c e Pa u l s e n L n Com m u n i t y L a n e Lane 15 E Co u r t Madeline Court Arr o y o C t Da v i d C t Alex i s D r i v e Green Court Ore g o n E x p r e s s w a y Or e g o n E x p r e s s w a y O r e g o n E x p w y Pa g e M i l l R o a d Pa g e M i l l R o a d Footh i l l E x p r e s s w a y Mirand a A v e n u e Foothill E x p r e s s w a y Miran d a A v e n u e Foot h i l l E x p r e s s w a y Ce r r i t o W a y Emerson Street La n e 2 0 W La n e 2 0 E Or e g o n E x p r e s s w a y Un i v e r s i t y A v e n u e Ma c k a y D r i v e Ja c o b ' s C t ( P v t ) CalTrain ROW CalTrain ROW CalTrain ROW CalTrain ROW Emerson Street Waverley Street Kipling Street Clark Way Durand Way Pasteu r D r i v e W e l c h R o a d Sa n d h i l l R o a d Swain WayCl a r k W a y Mosher Way Charles Marx W a y Or c h a r d L a n e Vineyard L a n e O a k R o a d Sa n d H i l l R o a d S a n d H i l l R o a d Sa n d H i l l R o a d El Camino Real Foothill Expressway Hil l v i e w A v e n u e Ara s t r a d e r o R o a d Lane 66 B l a k e W i l b u r D r i v e Campu s D r i v e E a s t C a m p u s D r i v e W e s t We s t C h a r l e s t o n R o a d Cam p u s D r i v e E a s t Campus D r i v e W e s t P a l m D r i v e Campus Driv e W e s t Campus D r i v e E a s t Quarry R o a d C a m p u s D r i v e E a s t Stock F a r m R o a d Bayshore F r e e w a y Bayshore F r e e w a y Bayshore F r e e w a y West Bays h o r e R o a d East Baysh o r e R o a d East Baysh o r e R o a d East Baysh o r e R o a dBayshore F r e e w a y Bayshore F r e e w a y Bayshore F r e e w a y Palo Road Shopping Center Way S h o p p i n g C e n t e r W a y Sh o p p i n g C e n t e r W a y London Plane Way Plum L a n e Sweet Olive Way Pear Lane C a m p u s D r i v e Lane 66 LaSelvaDrive Gro v e C o u r t Mira n d a C t St a n f o r d A v e n u e Lane 12 W Lane 5 E Serra S t r e e t A r g u e l l o W a y G a l v e z S t r e e t Campus Drive Ea s t Nelson D r i v e Arboretum Road L a u s e n S t r e e t G a l v e z S t r e e t Museum W a y Roth Wa y L o m i t a D r i v e Serra S t r e e t Escond i d o R o a d C a m p u s D r i v e E a s t Bowdoi n S t r e e t Escondido Road Co m s t o c k C i r c l e Angell Cour t Bla c k We l der Court Jenkins C o urt McFar land Cou r t SerraStreet Hosk i ns Co u r t Thoburn Cou r t Hulme Cou r t Ba r n e s Court Olm stead Road D u dl e y Lane Caballo Lane Jo hn Ma r thens Lane(Pr ivate ) Pa g e M i l l R oad Ban d e r a d rive Laure l Glenn D r i ve A l exis Dr i v e Phillips Roa d Pi s t a c h e P l a c e Sa n t a Y n e z S t r e e t Salvat i e r r a S t r e e t Lane B Alvar a d o A v e n u e Mayfield Avenue Costonzo Street Cabrillo Avenue Ca m p u s D r i v e E a s t San Juan Street Lan e C Co r o n a d o A v e n u e Do l o r e s A v e n u e E l D o r a d o A v e n u e OakCreekDrive Cl a r a D r i v e Bellview Dr E v e r e t t A v e n u e Lo s Trancos Road Los T r an c o s R o a d Emerson Street Bryant Street Ramona Street Emerson St Alma Street Waverley Street Alma Street Middlefield Road Webster StreetWebster Street Waverley Street Webster Street Fult on Street Seneca Street Newell Road Fult on Street Coastland Dr Van Auken Circle Louis RoadLouis Road Li n c o l n A v e n u e Un i v e r s i t y A v e n u e Ha m i l t o n A v e n u e Fo r e s t A v e n u e Fo r e s t A v e n u e Ly t t o n A v e n u e Un i v e r s i t y A v e n u e Ha w t h o r n e A v e n u e P a l o A l t o A v e n u e Pa l o A l t o A v e n u e Ch a n n i n g A v e n u e A d d i s o n A v e n u e Ho m e r A v e Ho m e r A v e n u e Me l v i l l e A v e n u e Ch u r c h i l l A v e . S e a l e A v e n u e Em b a r c a d e r o R o a d Em b a r c a d e r o R o a d East Bayshore Road Edgewood Dri v e S a n d a l w o o d C t Mo r t o n S t r e e t H u t c h i n s o n A v e N e w e l l R o a d Guinda Street De S o t o D r i v e No r t h a m p t o n D r i v e Fi e l d i n g D r . Fielding Greer RoadMa d d u x D r i v e G r e e r R o a d S u t t e r A v e n u e Rosewood Dr Ro s e w o o d D r Su t t e r A v e n u e Kipling St Avalon Court Rorke Way Rorke Way N a t h a n W a y L o u i s R o a d C o r i n a W a y F a b i a n W a y Kipling Street Ma r g a r i t a A v e n u e La m b e r t A v e n u e Ma t a d e r o A v e n u e Wi l t o n A v e n u e El Camino Real Pa g e M i l l R o a d Alma Street Byron Street Ca l c a t e r r a P l a c e Ch r i s t o p h e r C t Mo n r o e D r Ma y b e l l A v e n u e Ba r r o n A v e n u e Ha n o v e r S t r e e t Porter Drive Pa g e M i l l R o a d H i l l v i e w A v e n u e Foothill E x p r e s s w a y El Cerrito Road El C e r r i t o R d Glenbro o k D r i v e Willma r D r i v e Miranda A v e n u e Het c h H e t c h y R O W Hetch Hetchy ROW Hil l v i e w A v e n u e Mo a n a C t Arastr a d e r o R o a d Arastrade r o R o a d S A N A N T O N I O A V E N U E Chan n i n g A v e n u e Li n c o l n A v e n u e Li n c o l n A v e n u e Mor t o n S t r e e t Dr. S h a u n a L n S A N A N T O N I O A V E N U E Maddux Drive Va r i a n W a y Sh e r m a n A v e n u e Gr a n t A v e n u e Sh e r i d a n A v e Lo s R o b l e s A v e Sprin g h i l l D r Mapl e w o o d P l Las Tra m p a s V a l l e y R o a d Las Tram p a s V a l l e y R o a d Las Trampas Valley Roa d Vista H i l l R o a d Vis t a H i l l R o a d Vista H i l l R o a d Vist a H i l l R o a d Madera Point Road Las Tr a m p a s V a l l e y R o a d M a d e r a P o i n t R o a d Page M i l l R o a d Page M i l l R o a d Emma Ct G a l v e z M a l l A r g u e l l o W a y Alma Village Circle Alma Village Lane OlmstedRoad OlmstedRoad OlmstedRoad Abrams Ct Olmsted Road Olm s t e d R o a d O l m s t e d R o a d OlmstedRoad This map is a product of the City of Palo Alto GIS This document is a graphic representation only of best available sources. Construction Fund Wastewater CIP Project Plan 2017-2021:: 2017 (SSR 28) 2018 (SSR 29) 2019 (SSR 30) 2020 (SSR 31) 2021 (SSR 32) 0'2500' City of Palo Alto Fiscal Year 2017 Adopted Budget Wastewater Fund Map 5 Year CIP Project Plan CITY O F PALO A L T O I N C O R P O R A T E D C ALIFO R N I A P a l o A l t o T h e C i t y o f A P R I L 1 6 1 8 9 4 The City of Palo Alto assumes no responsibility for any errors. ©1989 to 2016 City of Palo Alto ssantos, 2016-03-01 07:15:53 Wastewater Fund Map 2017-2021 (\\cc-maps\gis$\gis\admin\Personal\ssantos.mdb) WASTEWATER COLLECTION FUND WASTEWATER COLLECTION FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 527 Customer Connections WASTEWATER COLLECTION FUND 528 WASTEWATER COLLECTION FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Sewer System, Customer Connections Sewer System, Customer Connections Description This project provides for the installation of sewer lateral connections, additions of existing mains, and extensions of mains for new or existing customers. Justification It is necessary to provide sewer connections to serve new customers and to respond to changes in sewer requirements due to redevelopment. Old existing non-plastic sewer service laterals become cracked and broken by tree root intrusion, ground movement, and third party excava- tion damages requiring the laterals to be replaced. Supplemental Information Other Revenues includes customer connection and capacity fees for connecting to the waste- water collection system. Capacity fees are collected through connection charges to cover the proportionate cost of system improvements required to serve new customers. Significant Changes This project was previously titled "Sewer System Extension". As part of the Fiscal Year 2015 budget it has been retitled "Sewer System, Customer Connections" to more accurately reflect the work done with this funding. Fund: Wastewater Collection - Operating Category: Customer Connections Project Location: Various locations Managing Department: Utilities Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: WC-80020 Sewer System, Customer Connections WASTEWATER COLLECTION FUND WASTEWATER COLLECTION FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 529 Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Other N/A 383,000 373,098 394,000 405,820 417,995 430,534 443,450 2,091,799 0 N/A Wastewater Collection Fund N/A (94,952)0 0 0 0 0 0 0 0 N/A Total N/A 288,048 373,098 394,000 405,820 417,995 430,534 443,450 2,091,799 0 N/A Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 288,048 373,098 394,000 405,820 417,995 430,534 443,450 2,091,799 0 N/A Total N/A 288,048 373,098 394,000 405,820 417,995 430,534 443,450 2,091,799 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-18 Relationship to Comprehensive Plan Secondary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-25 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. WASTEWATER COLLECTION FUND WASTEWATER COLLECTION FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 531 System Improvements WASTEWATER COLLECTION FUND 532 WASTEWATER COLLECTION FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Sewer Lateral/Manhole Rehabilitation and Replacement Sewer Lateral/Manhole Rehabilitation and Replacement Description This project will replace defective sewer laterals, cleanouts, manholes, install backwater devices, and purchase equipment to support these activities in order to maintain the Wastewater Collec- tion System. Information collected during routine annual maintenance activities is used to prior- itize work. Defective laterals, for example, will be replaced to re-establish existing services, reduce maintenance expenses, and eliminate ground water intrusion. Backwater devices will be installed to reduce backflows of sewage. New manholes will be installed or rehabilitated to improve structural integrity. Justification The work will help reduce both the backflow of sewage onto private property and the City's treatment expenses. This project also cleans and videotapes sewer collection mains and laterals as necessary. Fund: Wastewater Collection - Operating Category: System Improvements Project Location: Various locations Managing Department: Utilities Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: WC-99013 Sewer manhole base Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Wastewater Collection Fund N/A 1,221,411 1,221,411 618,000 636,540 655,636 675,305 695,564 3,281,045 0 N/A Total N/A 1,221,411 1,221,411 618,000 636,540 655,636 675,305 695,564 3,281,045 0 N/A WASTEWATER COLLECTION FUND WASTEWATER COLLECTION FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 533 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 1,221,411 1,221,411 618,000 636,540 655,636 675,305 695,564 3,281,045 0 N/A Total N/A 1,221,411 1,221,411 618,000 636,540 655,636 675,305 695,564 3,281,045 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-18 Relationship to Comprehensive Plan Secondary Connection Element: Natural Environment Section: Water Resources Goal: L-1 Policy: N-25 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. WASTEWATER COLLECTION FUND 534 WASTEWATER COLLECTION FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Wastewater Collection System Rehabilitation/Augmentation Project 28 Wastewater Collection System Rehabilitation/Augmentation Project 28 Description The project will fund the design and construction of high priority main and lateral replacement work, which reduces inflow of rainfall and ground water into the collection system. The project replaces 21,889 linear feet (which represents 1.5% of the City's Wastewater Collection system) for various streets in the City, including large sections in the Charleston Meadows neighbor- hood. The project will be comprised of laterals identified in video inspection work or through maintenance records identified as deficient and in need of replacement. Priority will be given to areas identified by Public Works as targeted work zones ensuring infrastructure coordination among different City departments. Justification The 2004 Collection System Master Plan (Master Plan Study) update indicated certain facilities are in need of enlargement to handle growth and peak flows. The mains selected for replace- ment and/or rehabilitation are determined by the recommendations for the Master Plan Study; research and analysis of sewer main maintenance records; cleaning and videotaping of sanitary sewer mains; condition assessment; real time flow monitoring of existing sewers; and hydraulic computer modeling. Fund: Wastewater Collection - Operating Category: System Improvements Project Location: Various locations Managing Department: Utilities Initial Project Start: Summer 2016 Initial Project Completion: Winter 2018 Revised Project Start: Revised Project Completion: Project Number: WC-15001 Trenching for installation of HDPE sewer main by open trench method WASTEWATER COLLECTION FUND WASTEWATER COLLECTION FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 535 Supplemental Information Linear footage and locations are subject to change, please refer to the City of Palo Alto Utilities webpage to confirm project details. Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Wastewater Collection Fund 0 330,000 330,000 3,183,000 0 0 0 0 3,183,000 0 3,513,000 Total 0 330,000 330,000 3,183,000 0 0 0 0 3,183,000 0 3,513,000 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 3,183,000 0 0 0 0 3,183,000 0 3,183,000 Design 0 330,000 330,000 0 0 0 0 0 0 0 330,000 Total 0 330,000 330,000 3,183,000 0 0 0 0 3,183,000 0 3,513,000 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-18 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. WASTEWATER COLLECTION FUND 536 WASTEWATER COLLECTION FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Wastewater Collection System Rehabilitation/Augmentation Project 29 Wastewater Collection System Rehabilitation/Augmentation Project 29 Description This project funds the design and construction of high priority main and lateral replacement work, which reduces inflow of rainfall and ground water into the collection system. The project replaces 14,352 linear feet (which represents 1.3% of the City's Wastewater Collection system) for large sections in the Ventura neighborhood and along several streets on El Camino Real. The project will be comprised of laterals identified in video inspection work or through maintenance records as deficient and in need of replacement. Priority will be given to areas identified by Pub- lic Works as targeted work zones ensuring infrastructure coordination among different City departments. Justification The 2004 Collection System Master Plan (Master Plan Study) update indicated certain facilities are in need of enlargement to handle growth and peak flows. The mains selected for replace- ment and/or rehabilitation are determined by the recommendations for the Master Plan Study; research and analysis of sewer main maintenance records; cleaning and videotaping of sanitary sewer mains; condition assessment; real time flow monitoring of existing sewers; and hydraulic computer modeling. Fund: Wastewater Collection - Operating Category: System Improvements Project Location: Various locations Managing Department: Utilities Initial Project Start: Summer 2017 Initial Project Completion: Winter 2019 Revised Project Start: Revised Project Completion: Project Number: WC-16001 Rehabilitation Equipment WASTEWATER COLLECTION FUND WASTEWATER COLLECTION FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 537 Supplemental Information Linear footage and locations are subject to change, please refer to the City of Palo Alto Utilities webpage to confirm project details. Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Wastewater Collection Fund 0 0 0 327,849 3,278,490 0 0 0 3,606,339 0 3,606,339 Total 0 0 0 327,849 3,278,490 0 0 0 3,606,339 0 3,606,339 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 0 3,278,490 0 0 0 3,278,490 0 3,278,490 Design 0 0 0 327,849 0 0 0 0 327,849 0 327,849 Total 0 0 0 327,849 3,278,490 0 0 0 3,606,339 0 3,606,339 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-18 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. WASTEWATER COLLECTION FUND 538 WASTEWATER COLLECTION FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Wastewater Collection System Rehabilitation/Augmentation Project 30 Wastewater Collection System Rehabilitation/Augmentation Project 30 Description For fiscal years 2018 and 2019, this project funds the design and construction of high priority main and lateral replacement work, which reduces inflow of rainfall and ground water into the collection system. The project replaces 15,680 linear feet (which represents 1.4% of the City's Wastewater Collection system) for various streets in the City, including large sections in the Green Acres and Barron Park neighborhoods. The project will be comprised of laterals identified in video inspection work or through maintenance records as deficient and in need of replace- ment. Priority will be given to areas identified by Public Works as targeted work zones ensuring infrastructure coordination among different City departments. Justification The 2004 Collection System Master Plan (Master Plan Study) update indicated certain facilities are in need of enlargement to handle growth and peak flows. The mains selected for replace- ment and/or rehabilitation are determined by the recommendations for the Master Plan Study; research and analysis of sewer main maintenance records; cleaning and videotaping of sanitary sewer mains; condition assessment; real time flow monitoring of existing sewers; and hydraulic computer modeling. Fund: Wastewater Collection - Operating Category: System Improvements Project Location: Managing Department: Utilities Initial Project Start: Summer 2018 Initial Project Completion: Winter 2020 Revised Project Start: Revised Project Completion: Project Number: WC-17001 Trenching for installation of HDPE sewer main by open trench method WASTEWATER COLLECTION FUND WASTEWATER COLLECTION FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 539 Supplemental Information Linear footage and locations are subject to change, please refer to the City of Palo Alto Utilities webpage to confirm project details. Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Wastewater Collection Fund 0 0 0 0 337,684 3,376,845 0 0 3,714,529 0 3,714,529 Total 0 0 0 0 337,684 3,376,845 0 0 3,714,529 0 3,714,529 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 0 0 3,376,845 0 0 3,376,845 0 3,376,845 Design 0 0 0 0 337,684 0 0 0 337,684 0 337,684 Total 0 0 0 0 337,684 3,376,845 0 0 3,714,529 0 3,714,529 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-18 Relationship to Comprehensive Plan Secondary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-25 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. WASTEWATER COLLECTION FUND 540 WASTEWATER COLLECTION FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Wastewater Collection System Rehabilitation/Augmentation Project 31 Wastewater Collection System Rehabilitation/Augmentation Project 31 Description This project funds the design and construction of high priority lateral replacement work, which reduces inflow of rainfall and ground water into the collection system. The project replaces 24,983 linear feet (which represents 2.2% of the City's Wastewater Collection system) for vari- ous streets in the City, including large sections in the Southgate and University Park neighbor- hoods. The project will be comprised of laterals identified in video inspection work or through maintenance records as deficient and in need of replacement. Priority will be given to areas identified by Public Works as targeted work zones ensuring infrastructure coordination among different City departments. Justification The 2004 Collection System Master Plan (Master Plan Study) update indicated certain facilities are in need of enlargement to handle growth and peak flows. The mains selected for replace- ment and/or rehabilitation are determined by the recommendations for the Master Plan Study; research and analysis of sewer main maintenance records; cleaning and videotaping of sanitary sewer mains; condition assessment; real time flow monitoring of existing sewers; and hydraulic computer modeling. Fund: Wastewater Collection - Operating Category: System Improvements Project Location: Various locations Managing Department: Utilities Initial Project Start: Summer 2019 Initial Project Completion: Winter 2021 Revised Project Start: Revised Project Completion: Project Number: WC-19001 Sewer Trench Line WASTEWATER COLLECTION FUND WASTEWATER COLLECTION FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 541 Supplemental Information Linear footage and locations are subject to change, please refer to the City of Palo Alto Utilities webpage to confirm project details. Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Wastewater Collection Fund 0 0 0 0 0 372,185 3,478,150 0 3,850,335 0 3,850,335 Total 0 0 0 0 0 372,185 3,478,150 0 3,850,335 0 3,850,335 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 0 0 0 3,478,150 0 3,478,150 0 3,478,150 Design 0 0 0 0 0 372,185 0 0 372,185 0 372,185 Total 0 0 0 0 0 372,185 3,478,150 0 3,850,335 0 3,850,335 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-18 Relationship to Comprehensive Plan Secondary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-25 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. WASTEWATER COLLECTION FUND 542 WASTEWATER COLLECTION FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Wastewater Collection System Rehabilitation/Augmentation Project 32 Wastewater Collection System Rehabilitation/Augmentation Project 32 Description This project funds the design and construction of high priority main and lateral replacement work, which reduces inflow of rainfall and ground water into the collection system. The project scope is as yet undetermined but may include approximately 15,000 - 25,000 linear feet for var- ious streets within the City's limits. The project will be comprised of laterals identified in video inspection work or through maintenance records as deficient and in need of replacement. Prior- ity will be given to areas identified by Public Works as targeted work zones ensuring infrastruc- ture coordination among different City departments. Justification The 2004 Collection System Master Plan (Master Plan Study) update indicated certain facilities are in need of enlargement to handle growth and peak flows. The mains selected for replace- ment and/or rehabilitation are determined by the recommendations for the Master Plan Study; research and analysis of sewer main maintenance records; cleaning and videotaping of sanitary sewer mains; condition assessment; real time flow monitoring of existing sewers; and hydraulic computer modeling. Supplemental Information Linear footage and locations are subject to change, please refer to the City of Palo Alto Utilities webpage to confirm project details. Fund: Wastewater Collection - Operating Category: System Improvements Project Location: Various locations Managing Department: Utilities Initial Project Start: Summer 2020 Initial Project Completion: Winter 2022 Revised Project Start: Revised Project Completion: Project Number: WC-20000 A bursing head attached with 8' HDPE, for a sewer main replacement project by pipe bursting method WASTEWATER COLLECTION FUND WASTEWATER COLLECTION FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 543 Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Wastewater Collection Fund 0 0 0 0 0 0 358,249 3,582,495 3,940,744 0 3,940,744 Total 0 0 0 0 0 0 358,249 3,582,495 3,940,744 0 3,940,744 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 0 0 0 0 3,582,495 3,582,495 0 3,582,495 Design 0 0 0 0 0 0 358,249 0 358,249 0 358,249 Total 0 0 0 0 0 0 358,249 3,582,495 3,940,744 0 3,940,744 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-18 Relationship to Comprehensive Plan Secondary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-25 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. WASTEWATER COLLECTION FUND 544 WASTEWATER COLLECTION FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Wastewater Collection System Rehabilitation/Augmentation Project 33 Wastewater Collection System Rehabilitation/Augmentation Project 33 Description This project funds the design and construction of high priority main and lateral replacement work, which reduces inflow of rainfall and ground water into the collection system. The project scope is as yet undetermined but may include approximately 15,000 - 25,000 linear feet for var- ious streets within the City's limits. The project will be comprised of laterals identified in video inspection work or through maintenance records as deficient and in need of replacement. Prior- ity will be given to areas identified by Public Works as targeted work zones ensuring infrastruc- ture coordination among different City departments. Justification The 2004 Collection System Master Plan update indicated certain facilities are in need of enlargement to handle growth and peak flows. The mains selected for replacement and/or rehabilitation are determined by the recommendations for the Master Plan Study; research and analysis of sewer main maintenance records; cleaning and videotaping of sanitary sewer mains; condition assessment; real time flow monitoring of existing sewers; and hydraulic computer modeling. Supplemental Information The mains selected for replacement and/or rehabilitation are determined by the recommenda- tions of the Master Plan Study; research and analysis of sewer main maintenance records; clean- Fund: Wastewater Collection - Operating Category: System Improvements Project Location: Various locations Managing Department: Utilities Initial Project Start: Summer 2021 Initial Project Completion: Winter 2023 Revised Project Start: Revised Project Completion: Project Number: WC-21000 Rehabilitation Equipment WASTEWATER COLLECTION FUND WASTEWATER COLLECTION FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 545 ing and videotaping of sanitary sewer mains; condition assessment; real time flow monitoring of existing sewers; and hydraulic computer modeling. Linear footage and locations are subject to change, please refer to the City of Palo Alto Utilities webpage to confirm project details. Significant Changes 2017-2021 CIP: Project established. Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Wastewater Collection Fund 0 0 0 0 0 0 0 368,997 368,997 3,689,969 4,058,966 Total 0 0 0 0 0 0 0 368,997 368,997 3,689,969 4,058,966 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 0 0 0 0 0 0 3,689,969 3,689,969 Design 0 0 0 0 0 0 0 368,997 368,997 0 368,997 Total 0 0 0 0 0 0 0 368,997 368,997 3,689,969 4,058,966 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-18 Relationship to Comprehensive Plan Secondary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-25 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. WASTEWATER COLLECTION FUND 546 WASTEWATER COLLECTION FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Wastewater General Equipment and Tools Wastewater General Equipment and Tools Description This funding allows for the acquisition of new fusion equipment and other associated tools. This equipment is used to fuse together pipe joints in the City's wastewater collection system. Justification As the equipment ages, the quality of the fusion joints begins to decline, and the operators must spend more time scraping, aligning, and fusing construction joints. In order to maintain high quality standards for the installation of City's wastewater collection mains, along with the associated service standards and worker safety and productivity measures, equipment and tools require continuous upgrades. Significant Changes 2015-2019 CIP: Project was retitled from "Wastewater Fusion and General Equipment/Tools". Fund: Wastewater Collection - Operating Category: System Improvements Project Location: Municipal Service Center Managing Department: Utilities Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: WC-13002 Equipment used to install fuse HDPE pipe Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Wastewater Collection Fund N/A 50,000 50,000 50,000 50,000 50,000 50,000 50,000 250,000 0 N/A Total N/A 50,000 50,000 50,000 50,000 50,000 50,000 50,000 250,000 0 N/A WASTEWATER COLLECTION FUND WASTEWATER COLLECTION FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 547 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 50,000 50,000 50,000 50,000 50,000 50,000 50,000 250,000 0 N/A Total N/A 50,000 50,000 50,000 50,000 50,000 50,000 50,000 250,000 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-14 Program: N-18 Relationship to Comprehensive Plan Secondary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-20 Program: N-25 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. WASTEWATER COLLECTION FUND 548 WASTEWATER COLLECTION FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Wastewater System Improvements Wastewater System Improvements Description This project provides funding as needed to improve the Wastewater Collection System. Typical activities include: increasing system capacity for growth, flow monitoring, hydraulic modeling and system analysis, load simulations, asset management analysis and assessment, system inflow/infiltration analysis, and sanitary sewer overflow monitoring and reduction. Justification Wastewater Collection System reliability and adequate capacity are critical to providing a high level of service to customers. Mainline sewer backups and overflows into homes and businesses are costly and a health risk. Reducing the losses associated with these backup claims requires a continuous evaluation of system needs and making improvements to maintain a high level of service. Fund: Wastewater Collection - Operating Category: System Improvements Project Location: Various locations Managing Department: Utilities Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: WC-15002 Trenching for installation of HDPE sewer main by directional drilling method Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Wastewater Collection Fund N/A 290,264 290,264 239,000 246,000 253,000 260,000 269,000 1,267,000 0 N/A Total N/A 290,264 290,264 239,000 246,000 253,000 260,000 269,000 1,267,000 0 N/A Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 290,264 290,264 239,000 246,000 253,000 260,000 269,000 1,267,000 0 N/A Total N/A 290,264 290,264 239,000 246,000 253,000 260,000 269,000 1,267,000 0 N/A WASTEWATER COLLECTION FUND WASTEWATER COLLECTION FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 549 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-14 Program: N-18 Relationship to Comprehensive Plan Secondary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-20 Program: N-25 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 581 WATER FUND WATER FUND WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 583 WATER FUND Overview The City of Palo Alto is the only municipality in California that operates a full suite of City- owned utility services. The municipal water distribution system began operation in 1896 and continues to provide safe, reliable, and cost effective water service to residents and customers of Palo Alto. For the 2017-2021 Proposed Capital Improvement Program (CIP), approximately $47.4 million is programmed, with $9.6 million allocated in Fiscal Year 2017. Overall, a total of fifteen projects are programmed for the 5-year CIP. Major projects funded in the 2017-2021 CIP include Water Main Replacements (cumulative total of $33.3 million), Water System Customer Connections ($3.7 million), Water Meters ($2.7 million) and Water, Gas, and Wastewater Utility GIS Data ($2.1 million). The Budget for the Water Fund is broken into three separate categories: Customer Connections, System Improvements, and Water Main Replacements. Customer Connections As customers continually change their water needs due to equip- ment additions, new construc- tion, building expansions, building remodels, teardowns and rebuilds, and new building occupancy types, the water sys- tem must evolve to meet these needs. Projects in this category include work required to meet the needs of customers who have applied for new or upgraded water service. The Water Fund pays for a portion of this project, while remaining costs are supported by reimbursements from customers for project work performed by the City. Recent Accomplishments In Fiscal Year 2015 the Utilities Water Utility completed over 67 customer service projects with a total cost of $0.23 million. Infrastructure Inventory CLASSIFICATION QUANTITY Miles of water main 235.58 miles Number of wells 1 active standby and 7 emer- gency standby Number of reservoirs 4 steel and 3 reinforced con- crete 0 6,000,000 12,000,000 18,000,000 24,000,000 30,000,000 2013 Actuals 2015 Actuals FY 2017 Proposed FY 2019 Projected FY 2021 Projected Water Fund Capital Expenditures WATER FUND 584 WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 2017-2021 Capital Improvement Program Recurring Projects The Water System Customer Connections project is the only project within this category. Over the course of the 2017-2021 CIP, $3.7 million is programmed, with $0.7 million allocated in Fiscal Year 2017. Non-Recurring Projects There are no non-recurring projects in this category. System Improvements To ensure reliable water services for the City of Palo Alto residents and customers, infrastruc- ture must be replaced upon reaching the end of its expected life. The System Improvements category includes eleven projects during the 2017-2021 CIP at a total cost of $10.5 million, with $2.6 million allocated in Fiscal Year 2017. Recent Accomplishments Completed the water distribution system seismic evaluation and condition assessment master study to determine the reliability of water system and seismic stability of water pipelines in the Foothills. Pipeline improvements recommended from this study will be included in future capital improvement projects. Completed 90% construction of concrete water tank rehabilitation work at Boronda Reservoir. 2017-2021 Capital Improvement Program Recurring Projects A total of $10.5 million is programmed for System Improvement recurring projects during the 2017-2021 CIP, with $2.5 million allocated in Fiscal Year 2017. Recurring projects in this category include the following: Water distribution system improvements (Fiscal Year 2017: $0.7 million; 5-Year CIP: $1.8 million) Water Fusion and General Equipment/Tools (Fiscal Year 2017: $0.05 million; 5-Year CIP: $0.3 million) Water Meters (Fiscal Year 2017: $0.6 million; 5-Year CIP: $2.7 million) Water Service Hydrant Replacement (Fiscal Year 2017: $0.4 million; 5-Year CIP: $2.1 million) Water System Supply Improvements (Fiscal Year 2017: $0.2 million; 5-Year CIP: $1.3 million) Water, Gas, Wastewater Utility GIS Data (Fiscal Year 2017: $0.4 million; 5-Year CIP: $2.1 million) Non-Recurring Projects A total of $0.2 million is allocated in Fiscal Year 2017 for one non-recurring project. Funding for the non-recurring project represents funding approved by the City Council in prior fiscal years WATER FUND WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 585 and are recommended to be carried over to Fiscal Year 2017 to complete projects. This project is the Water Recycling Facilities ($0.2 million). There is no funding for non-recurring projects beyond Fiscal Year 2017. Water Main Replacements The Water Main Replacements category accounts for the replacement of inadequately-sized and structurally deficient water mains. In the next five years, it is estimated that approximately 54,717 linear feet of water mains will be replaced. Recent Accomplishments Completed the design and construction of 12,000 linear feet of water mains and 225 services with CIP project WMR 25. 2017-2021 Capital Improvement Program Recurring Projects There are no recurring projects in this category. Non-Recurring Projects The 2017-2021 Proposed CIP includes $33.3 million in funding for six non-recurring projects within this category, with $6.3 million approved for Fiscal Year 2017. The Utilities Department coordinates with the Public Works Department’s street maintenance projects to minimize dam- age to the City’s pavement and maximize cost efficiencies. Summary of Capital Activity WATER FUND Project Number Project Title FY 2015 Actuals FY 2016 Estimate FY 2017 Proposed FY 2018 FY 2019 FY 2020 FY 2021 5-Year Total Source of Funds Transfer from Other Funds Gas Fund WS-02014 Water Gas Wastewater GIS Data 91,667 110,917 122,009 134,209 147,630 152,059 156,621 712,528 Total Gas Fund Transfers 91,667 110,917 122,009 134,209 147,630 152,059 156,621 712,528 Wastewater Collection Fund WS-02014 Water Gas Wastewater GIS Data 91,667 110,917 122,009 134,209 147,630 152,059 156,621 712,528 Total Wastewater Collection Fund 91,667 110,917 122,009 134,209 147,630 152,059 156,621 712,528 Total Transfer from Other Funds 183,334 221,834 244,018 268,418 295,260 304,118 313,242 1,425,056 WATER FUND 586 WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Other Revenues WS-80014 Water Service Hydrant Replacement 1,776 0 0 0 0 0 0 0 WS-80013 Customer Connections 2,150,370 463,000 876,000 902,280 929,348 957,228 985,946 4,650,802 Other Revenue Total 2,152,146 463,000 876,000 902,280 929,348 957,228 985,946 4,650,802 Total Sources 2,335,480 684,834 1,120,018 1,170,698 1,224,608 1,261,346 1,299,188 6,075,858 Use of Funds Customer Connections WS-80013 Water System, Customer Connections 666,872 463,000 690,000 710,700 732,021 753,981 776,601 3,663,303 Customer Connections Total 666,872 463,000 690,000 710,700 732,021 753,981 776,601 3,663,303 System Improvements Asset Management Mobile Deployment 6,308 10,000 82,163 0 0 0 0 82,163 Emergency Water Supply Project 430,778 779,712 0 0 0 0 0 0 Seismic Water System Upgrades 714,139 5,407,094 0 0 0 0 0 0 Water Distribution System Improvements 733,636 210,606 739,000 247,000 254,000 261,620 269,469 1,771,089 Water Fusion and General Equipment/Tools 6,675 15,000 50,000 50,000 50,000 50,000 50,000 250,000 Water Meter Shop Renovations 10,001 0 0 0 0 0 0 0 Water Meters 207,623 535,000 565,000 565,000 500,000 515,000 530,450 2,675,450 Water Recycling Facilities 144,705 243,716 200,000 0 0 0 0 200,000 Water Regulation System Improvements 40,417 1,717,259 0 0 0 0 0 0 Water Reservior Coating Improvements 42,870 2,491,502 0 0 0 0 0 0 Water Service Hydrant Replacement 133,211 100,000 400,000 412,000 424,360 437,091 450,204 2,123,655 Water System Master Plan 192,207 307,793 0 0 0 0 0 0 Water System Supply Improvements 289,494 158,076 239,000 247,000 254,000 261,620 269,469 1,271,089 WS-13004 WS-08002 WS-09000 WS-11003 WS-13002 WS-13006 WS-80015 WS-07001 WS-07000 WS-08001 WS-80014 WS-15004 WS-11004 WS-02014 Water, Gas, Wastewater Utility GIS Data 210,905 332,750 366,025 402,628 442,890 456,177 469,862 2,137,582 System Improvements Total 3,162,969 12,308,508 2,641,188 1,923,628 1,925,250 1,981,508 2,039,454 10,511,028 Water Main Replacements WS-11000 Water Main Replacement - Project 25 380,487 4,857,873 0 0 0 0 0 0 WS-12001 Water Main Replacement - Project 26 22,005 5,954,255 0 0 0 0 0 0 WS-13001 Water Main Replacement - Project 27 0 568,065 5,680,651 0 0 0 0 5,680,651 WS-14001 Water Main Replacement - Project 28 0 0 585,107 5,851,070 0 0 0 6,436,177 WS-15002 Water Main Replacement - Project 29 0 0 0 602,660 6,026,602 0 0 6,629,262 WS-16001 Water Main Replacement - Project 30 0 0 0 0 620,740 6,207,400 0 6,828,140 Project Number Project Title FY 2015 Actuals FY 2016 Estimate FY 2017 Proposed FY 2018 FY 2019 FY 2020 FY 2021 5-Year Total WATER FUND WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 587 WS-19001 Water Main Replacement - Project 31 0 0 0 0 0 639,362 6,396,320 7,035,682 WS-20000 Water Main Replacement - Project 32 0 0 0 0 0 0 658,543 658,543 Water Main Replacements Total 402,492 11,380,193 6,265,758 6,453,730 6,647,342 6,846,762 7,054,863 33,268,455 Total Uses 4,232,333 24,151,701 9,596,946 9,088,058 9,304,613 9,582,251 9,870,918 47,442,786 Project Number Project Title FY 2015 Actuals FY 2016 Estimate FY 2017 Proposed FY 2018 FY 2019 FY 2020 FY 2021 5-Year Total Pag e M ill R o a d Arastradero Road E l C a m i n o R e a l S a n A n t o n i o A v e n u e C h a r l e s t on Ro a d O r e g o n E x p r e s s w a y M i d d l e f i e l d R o a dUn i v e r s i t y Ave n u e A l m a S t r e e t F o o t h i l l E x p r e s s w a y L o s T r a n c o s R o a d East Bays h o r e West Bay s h o r e F a b i a n Sa n d H i l l R o a d Em b a r c a d e r o R o a d W a l l i s C t Donald D r i v e En c i n a G r a n d e D r i v e Ce r e z a D r i v e Lo s R o b l e s A v e Villa Vera Verdosa Drive Campana Drive Solana Drive Georg i a A v e Ynigo Way Drisco l l C t n g Art hur'Maybell Way Ma y b e l l A v e n u e Frandon Ct Fl o r a l e s D r i v e Ge o r g i a A v e n u e Amaranta Avenue A m a r a n t a C t MirandaGreen Footh i l l E x p r e s s w a y Ki s Cour t Terman Drive Baker Avenue Vi s t a A v e n u e Wisteria Lane Pena Ct Coulombe Drive Cherry Oaks Pla c e Pomona Avenu e Ar a s t r a d e r o R d Abel Avenue Clemo Avenue V i l l a R e a l Cu r t n e r A v e n u e Ve n t u r a A v e n u e Ma c l a n e Emerson Street Ventura Court Park Boulevard Ma g n o l i a D r i v e S o u t h Cypress Lane (Private) GlenbrookD Fa i r m e d e A v e n u e A r a s t r a d e r o R o a d Ir v e n C o u r t Lo s P a l o s C i r Los PalosPlace Ma y b e l l A v e n u e Alta Mesa Ave Ke l l y W a y Los Pa l o s A v e Suzan n e D r i v e Suzan n e D r i v e r i ve El Ca m i n o R e a l Su z a n n e C t Lor a b e l l e C t McKell a r L a n e El C a m i n o W a y Ja m e s R o a d Ma c l a n e Second Street Wilkie Way Cam i n o C o u r t We s t M e a d o w D r i v e Thain Way Ba r c l a y C t Vi c t o r i a P l Interdale Way ( P v t ) We s t C h a r l e s t o n R o a d Te n n e s s e e L a n e Wilkie Way Ca r o l i n a L a n e Te n n e s s e e L a n e Park Boulevard Wi l k i e C o u r t Da v e n p o r t W a y Alma Street Roose v Mo n r o e D r i v e Wilkie W a y Whitclem P l a c e Wh i t c l e m D r i v e Du l u t h C i r c l e Ed l e e A v e n u e Di n a h ' s C o u r t Ce s a n o C t Mo n r o e D r i v e Miller Ave Whitclem Way Whitclem Ct Fe r n e A v e n u e Be n L o m o n d D r i v e Fa i r f i e l d C t Fe r n e A v e n u e Ponce DriveHemlockCourt Ferne Court Alma Street Mo n r o e D r Sa n A n t o n i o A v e n u e NitaAvenue Ruthelma Ave n u e Da r l i n g t o n C o u r t Ch a r l e s t o n R d Lundy Lane Ne w b e r r y C t Park Boulevard Ge o r g e H o o d L a n e Alma Street elt Circle LinderoDrive Wright Place Starr King Circle S h a s t a D r i v e Mackay DriveDi a b l o C o u r t Scripps Avenue Sc r i p p s C o u r t Nelson Drive Tio g a C o u r t Cr e e k s i d e D r i v e Gr e e n m e a d o w W a y Be n L o m o n d D r i v e Pa r k s i d e D r i v e Dixon Place El y P l a c e Dake Avenue Ferne Avenue San Antonio Court (Private) El y P l Ely P l a c e Ado b e P l a c e Nels o n C t Ke a t s C o u r t Middlefield Road Duncan Place Carlso n C o u r t D u n c a n P l a c e Mumford Pl Ch a r l e s t o n R d S a n A n t o n i o A v e n u e Ea s t M e a d o w D r i v e Emerson Street Court Bry a n t S t r ee t Roosev elt Ci rcle RamonaStreet CarlsonCircle Redwoo d Ci rcleSouth Legh o r n S t r e e t M o n t r o s e A v e n u e M a p l e w o o d A v e n u e Charle s t o n C t Ch a r l e s t o n R o a d Se m i n o l e W a y Sutherland Drive Nelson D r i v e El C a p i t a n P l a c e Fabia n S t r e e t Lo m a V e r d e A v e n u e Bry s o n A v e n u e Midtown Court Cowper St Ga r y C t Waverley Street South Court Bryant Street Ramona Street Alma Street Co a s t l a n d D r Byron Street Middlefield Road Gaspar Ct Mo r e n o A v e n u e El C a r m e l o A v e n u e Ca m p e s i n o A v e n u e Dy m o n d C t Ma r t i n s e n C t Ramona Street Bryant Street To w l e W a y Towle Pl We l l s b u r y C t FlowersLane Mackall Way Lo m a V e r d e A v e Cowper Street South Court Waverl e y S t r e e t El V e r a n o A v e n u e We l l s b u r y W a y La Middlefield Road St C l a i r e D r i v e Alg e r D r i v e As h t o n A v e n u e St Michael Drive St Michael Drive Ma u r e e n A v e Co w p e r C o u r t Rambow Drive Ea s t M e a d o w D r i v e Ashton Co u r t Murdoch Drive Cow p e r St reet Mu r d o c h C t St Michael Court MayCourt Ma y v i e w A v e n u e Middle f i e l d R o a d En s i g n W a y Bib b i t s D r i v e Gai l e n C o u r t Gai l e n A v e n u e Grov e A v e n u e S a n A n t o n i o A v e C o m m e r c i a l S t r e e t I n d u s t r i a l A v e n u e B i b b i t s D r i v e Charl e s t o n R o a d F a b i a n W a y T Ea s t M e a d o w D r i v e Grove AvenueCh r i s t i n e D r i v e Cor i n a W a y Ross R o a d C o r i n a W a y L o u i s R d N a t h a n W y Transport S t r e e t Ort e g a C o u r t Ea s t M e a d o w D r i v e yneCourt alisman Lo m a V e r d e A v e n u e Al l e n C t Ro s s C o u r t Loma Verde Place A m e s A v e n u e Ri c h a r d s o n C o u r t Holly Oak Drive Am e s A v e CorkOakWay Middlefield Road Ames Ct A m e s A v e n u e Ross Road Rorke Way S t o n e L a n e To y o n P l a c e To r r e y a C o u r t Lupine Avenue Th o r n w o o d D r i v e DriftwoodDrive Ta l i s m a n D r i v e Arbutus Avenue Ross Road Louis Road As p e n W a y Evergreen Drive East M e a d o w D r i v e Co r p o r a t i o n W a y El w e l l C o u r t Janice Way East Meadow Ci r c l e East Meadow Circle GreerRoad Bayshore F r e e w a y El l s w o r t h P l Sa n C a r l o s C t Win t e r g r e e n W a y S u t t e r A v e n u e Cl a r a D r i v e Price Ct S t e r n A v e n u e Co l o r a d o A v e n u e Randers Ct Ross Rd. Sy c a m o r e D r i v e Sevyson Ct Stelling Drive Ross Road David Avenue Mur rayWay Stell i n g D r i v e St e l l i n g C t ManchesterCourt K e n n e t h D r i v e ThomasD ri v e Stockton Place Vernon Terrace Louis Road Ja n i c e W a y Th o m a s D r Ke n n e t h D r i v e Lo m a V e r d e A v e n u e CliftonCourt Elbridg e Way Cla r a D r i v e Baut istaCourtStockton Place Morris Drive Ma d d u x D r Pi e r s C t Louis Road Mo r a g a C t O l d P a g e M i l l R o a d Deer Creek Road Coy o t e H i l l Ro ad Hil l v i e w A v e n u e Porter Drive Hillview Ave Ha n o v e r S t r e e t Foothill Expressway Ara s t r a d e r o R o a d Miranda Avenue S t a n f o r d A v e n u e Amherst Street Columbia Street Bowdoin Street Dartmouth Street Hanover Street Co l l e g e A v e n u e Ca l i f o r n i a A v e n u e Hanover Street Ramos Way (Private) Pa g e M i l l R o a d Hansen Way Hanover Street Ol d A d o b e R o a d Old Trace Cou r t Ara s t r a d e r o R o a d Miranda Avenue Mockingbird Lane OldTraceRoad Manu e l a W a y Ro bb Road Manu e l a C o u r t Mesa A v e n u e O a k H i l l A v e n u e M a n u e l a A v e n u e Mi r a n d a A v e n u e La g u n a C t Ba r r o n A v e Jo s i n a A v e K e n d a l l A v e Tippawingo St Julie CtMa t a d e r o A v e n u e Il i m a W a y Il i m a C o u r t La g u n a O a k s P l Carlitos Ct La Calle Laguna Ave Pa r a d i s e W a y Ro b l e R i d g e L a MataWay Ch i m a l u s D r i v e Ma t a d e r o A v e Pa u l A v e n u e K e n d a l l A v e n u e Whitsell Avenue Ba r r o n A v e n u e Cass Way L o s R o b l e s A v e Laguna Way La P a r a A v e n u e Sa n J u d e A v e n u e El Centro Street Ti m l o t t L a n e La J e n n i f e r W a y Ma g n o l i a D r i v e N o r t h La Donna Avenue Rinc Manzana Lane on C ircle MesaCourt C r o s b y P l Ge o r g i a A v e n u e Hubba r t t D r i v e Wi l l m a r D r i v e Donald Dr Ara s t r a d e r o R o a d Foothi l l E x p r e s s w a y Miran d a A v e n u e Sa n J u d e A v e Magnolia Drive Mi l i t a r y W a y Arbol Drive Orme Street Fe r n a n d o A v e n u e Ma t a d e r o A v e n u e La m b e r t A v e n u e Ha n s e n W a y Ma r g a r i t a A v e n u e Ma t a d e r o A v e n u e Wi l t o n A v e n u e Ox f o r d A v e n u e Harvard Street Ca l i f o r n i a A v e Wellesley Street Princeton Street Oberlin Street Cornell Street Ca m b r i d g e A v e Co l l e g e A v e n u e Williams Street Yale St Staunton Ct Ox f o r d A v e n u e El Camino Re a l Ch u r c h i l l A v e n u e Pa r k B o u l e v a r d P a r k A v e n u e Escobita Ave n u e Ch u r c h i l l A v e n u e Se q u o i a A v e n u e Mariposa Avenue Castilleja Avenue Mir a m o n t e A v e n u e Madrono Ave n u e Portola Avenu e Ma n z a n i t a A v e n u e Co l e r i d g e A v e n u e Le l a n d A v e n u e St a n f o r d A v e n u e Birch Street Ash Street Lo w e l l A v e n u e Alma Street Te n n y s o n A v e n u e Gr a n t A v e n u e S h e r i d a n A v e Ja c a r a n d a L n El Camino Real Sh e r m a n A v e n u e Ash St Pa g e M i l l R o a d Mimosa Ln Ch e s t n u t A v e n u e P o r t a g e A v e n u e Pe p p e r A v e n u e Ol i v e A v e n u e Ac a c i a A v e n u e Emerson Street Park Boulevard Orinda Street Birch St Ash Street Pa g e M i l l R o a d Ash Street Park Blvd Co l l e g e A v e n u e Ca m b r i d g e A v e Ne w M a y f i e l d L n Birch Street Ca l i f o r n i a A v e Park BlvdNogal Lane Ri n c o n a d a A v e n u e Sa n t a R i t a A v e n u e Park Boulevard S e a l e A v e n u e Wa s h i n g t o n A v e Sa n t a R i t a A v e n u e Bryant Street High Street Emerson Street Co l o r a d o A v e Street Ramona Street Bryant Street South Court El D o r a d o A v e n u e Alma Street Alma Street HighStreet Emerson Wa v e r l e y O a k s ( P r i v a t e ) Wa s h i n g t o n A v e n u e Bryant Street South Court Waverley Street Emerson St Ne v a d a A v e N C a l i f A v e Ramona St High Street No r t h C a l i f o r n i a A v e n u e Or e g o n E x p w y Ma r i o n A v e n u e Ramona Street Co l o r a d o A v e n u e Waverley Street Kipling Street South Court Cowper Street An t o n C t Ne v a d a A v e n u e Tasso StreetTasso Street Or e g o n A v e n u e Marion Place We b s t e r S t Middlefield Road Ross Road Wa r r e n W a y El Cajon Way P r i m r o s e W a y Iri s W a y Tul i p L a n e Tulip La n e Ga r l a n d D r i v e G r e e r R o a d G r e e r R o a d Hami l t o n A v e n u e H i l b a r L a n e Alannah Ct Edge Rh o d e s D r i v e Marshall Drive Mo r e n o A v e n u e Marshal l Drive De n n i s D r . Agnes WayOr e g o n A v e . Bl a i r C o u r t Santa Ana Street El s i n o r e D r i v e Elsinore Court El Cajon Way Greer Road Ca l i f o r n i a A v e n u e Co l o r a d o A v e n u e Sy c a m o r e D r i v e Am a r i l l o A v e n u e l Bru c e D r i v e Co l o n i a l L a n e Mo r e n o A v e n u e Ce l i a D r i v e Burnham Way Greer Road Indian Drive Elmdale Pl C Tanland Drive Mo r e n o A v e n u e Am a r i l l o A v e n u e West Bays h o r e R o a d Sandra Place Clara Drive Co l o r a d o A v e n u e Greer Road Co l o r a d o A v e n u e Simkins Court Ot t e r s o n C t Higgins Pl. La w r e n c e L a n e Maddux Drive Genevieve Ct MetroCircle MoffettCircle Greer Road East Baysh o r e R o a d ardinalWay Santa Catalina Street ArrowheadWayAztec Way Chabot Terrace Or e g o n A v e n u e Carmel Drive Sierra Court St Francis Drive West Bayshore R o a d Tanland Dr. Ea s t B a y s h o r e R o a d woodDr i v e Edgewood Driv e Wildwoo d Lane Ivy La n e East Bayshore Road S t F r a n c i s D r i v e Wi l d w o o d L a n e Wat s o n C o u r t Lau r a L a n e O'B r i n e L a n e ( P r i v a t e ) Emb a r c a d e r o R o a d FaberPlaceEm b a r c a d e r o R o a d Ge n g R o a d Embarca d e r o W a y Em b a r c a d e r o R o a d C ountry C l ub Co u r t Al e x i s D r i v e AlexisDr i v e Pasteu r D r i v e Q u a r r y R o a d Welch R o a d Arboretum R o a d Qu a r r y R o a d Sa n d H i l l R o a d Ho m e r A v e n u e Lane 8 West Med i c a l F o u n d a t i o n W a y Lane 7 West Lane 7 East Em b a r c a d e r o R o a d Enc i n a A v e n u e El Camino Re a l Urb a n L a n e Well s A v e n u e Fo r e s t A v e n u e High Street Emerson Street Ch a n n i n g A v e Alma Street Alma Street El Camino Real Mit chell L a n e Ha w t h o r n e A v e n u e Ev e r e t t A v e n u e Ly t t o n A v e n u e Lane 15 E High Street Alma Street Bryant Street Lane 6 E Lane 11 W La n e 2 1 Gilman Street Ha m i l t o n A v e n u e Un i v e r s i t y A v e n u e Br y a n t C o u r t La n e 3 0 Florence Street Kipling Street Tasso Street Cowper Street Ru t h v e n A v e n u e La n e 3 3 Pa lo Alt o Avenu e Po e S t r e e t Waverley Street Tasso Street Cowper Street Palo Alto Avenue Webster Street Ev e r e t t C o u r t Byron Street Fult on Street Middlefield R o a d Ch u r c h i l l A v e n u e Te n n y s o n A v e n u e Me l v i l l e A v e n u e Cowper Street Tasso Street Webster Street Byron Street No r t h C a l i f o r n i a A v e n u e Co l e r i d g e A v e n u e Waverley Street Bryant Street Emerson Street Alma StreetK i n g s l e y A v e P o r t a l P l a c e Ross Road Or e g o n A v e n u e Ga r l a n d D r i v e Lane A West Lane B West Lane B East Lane D West Lane 59 East Wh i t m a n C o u r t Ke l l o g g A v e n u e Em b a r c a d e r o R o a d Ki n g s l e y A v e n u e Li n c o l n A v e n u e Ad d i s o n A v e . Li n c o l n A v e n u e Downing Lane Ho m e r A v e n u e Lane D East Lane 39 Lane 56(Pvt.) Ha m i l t o n A v e n u e Webster Street Waverley Street Kipling Street Bryant Street Ramona Street Scott Street Byron Street Palo Hale Street Seneca Street Ly t t o n A v e n u e P a loAltoAvenue Fult on Street Ke l l o g g A v e n u e Middlefield Road Byron Street Webster Street Cowper Street Tasso Street Cowper Street Ad d i s o n A v e n u e B o y c e A v e n u e Ha m i l t o n A v e n u e Ho m e r A v e n u e Guinda Street Middlefield Road Ch a n n i n g A v e n u e AltoAvenueChaucer StreetCh a u c e r S t r e e t Un i v e r s i t y A v e n u e A d d i s o n A v e n u e Rege n t P l Guinda Street Li n c o l n A v e n u e Fult on Street M e l v i l l e A v e n u e Byron Street Ki n g s l e y A v e n u e Me l v i l l e A v e n u e Ham i l t o n A v e n u e H a m i l t o n C t Fore s t A v e n u e F o r e s t C t M a r l o w e S t r e e t M a p l e S t r e e t P a l m S t r e e t Som e r s e t P l Pitm a n A v e n u e Fife A v e n u e Fore s t A v e n u e Dana A v e n u e Li n c o l n A v e n u e Unive r s i t y A v e n u e Co l e r i d g e A v e n u e Lo w e l l A v e n u e Cowper Street Te n n y s o n A v e n u e No r t h a m p t o n D r i v e We s t G r e e n w i c h P l Middlefield Road Newell Road Guinda Street Ea s t G r e e n w i c h P l So u t h a m p t o n D r i v e K i r b y P l Kent P l a c e Tevis P l Martin A v e n u e C e n t e r D r i v e H a r r i e t S t r e e t Wi l s o n S t r e e t C e d a r S t r e e t Hark e r A v e n u e Gree n w o o d A v e n u e H u t c h i n s o n A v e Chan n i n g A v e n u e Hopk i n s A v e n u e Em b a r c a d e r o R o a d Ashby Dr i v e Dana Ave n u e Hamilton A v e n u e Pitman A v e n u e So u t h w o o d D r i v e WestCrescent Driv e CrescentDrive Un i v e r s i t y A v e n u e Cent e r D r i v e EastCrescen Arcadia P l a c e Louisa Court Newe l l P l S h a r o n C t E r s t w i l d C o u r t W a l t e r H a y s D r i v e Waln u t D r i v e N e w e l l R o a d Park i n s o n A v e n u e Pi n e S t r e e t Mark Twain Street Louis Road Barbara Drive P r i m r o s e W a y Iris W a y Em b a r c a d e r o R o a d Wal t e r H a y s D r i v e Loi s L a n e Jorda n P l Lois L a n e H e a t h e r L a n e Bret Harte Street S t a n l e y W a y De S o t o D r i v e De S o t o D r i v e A l e s t e r A v e n u e Walte r H a y s D r i v e Chan n i n g A v e n u e Iris W a y tDrive Dana Avenue Hamilton Aven u e Ne w e l l R o a d Kings Lan e Edgewood Dr ive I s l a n d D r i v e Je f f e r s o n D r i v e Jackson Dr i ve P a t r i c i a L a n e M a d i s o n W a y Edgewood D r i v e Ramona Street Ad d i s o n A v e n u e Ch a n n i n g A v e n u e Te n n y s o n A v e n u e Se a l e A v e n u e Middlefield Road Byron Street Webster Street Ma r i o n A v e n u e We l c h R o a d Sedro Ln Peral Lane Mc G r e g o r W a y Mo n r o e D r i v e Silva Ave Si l v a C o u r t Mi l l e r C o u r t Briarwood Way Dr i s c o l l P l a c e P a u l s e n L n Com m u n i t y L a n e Lane 15 E Co u r t Madeline Court Arr o y o C t Da v i d C t Alexi s D r i v e Green Court Ore g o n E x p r e s s w a y Or e g o n E x p r e s s w a y O r e g o n E x p w y Pa g e M i l l R o a d Pa g e M i l l R o a d Footh i l l E x p r e s s w a y Mirand a A v e n u e Foothill E x p r e s s w a y Miran d a A v e n u e Footh i l l E x p r e s s w a y Ce r r i t o W a y Emerson Street La n e 2 0 W La n e 2 0 E Or e g o n E x p r e s s w a y Un i v e r s i t y A v e n u e Ma c k a y D r i v e Ja c o b ' s C t ( P v t ) CalTrain ROW CalTrain ROW CalTrain ROW CalTrain ROW Emerson Street Waverley Street Kipling Street Clark Way Durand Way Pasteu r D r i v e W e l c h R o a d Sa n d h i l l R o a d Swain WayCl a r k W a y Mosher Way Charles Marx W a y Or c h a r d L a n e Vineyard L a n e O a k R o a d Sa n d H i l l R o a d S a n d H i l l R o a d Sa n d H i l l R o a d El Camino Real Foothill Expressway Hil l v i e w A v e n u e Ara s t r a d e r o R o a d Lane 66 B l a k e W i l b u r D r i v e Campu s D r i v e E a s t C a m p u s D r i v e W e s t We s t C h a r l e s t o n R o a d Cam p u s D r i v e E a s t Campus D r i v e W e s t P a l m D r i v e Campus Driv e W e s t Campus D r i v e E a s t Quarry R o a d C a m p u s D r i v e E a s t Stock F a r m R o a d Bayshore F r e e w a y Bayshore F r e e w a y Bayshore F r e e w a y West Bays h o r e R o a d East Baysh o r e R o a d East Baysh o r e R o a d East Baysh o r e R o a dBayshore F r e e w a y Bayshore F r e e w a y Bayshore F r e e w a y Palo Road Shopping Center Way S h o p p i n g C e n t e r W a y Sh o p p i n g C e n t e r W a y London Plane Way Plum L a n e Sweet Olive Way Pear Lane C a m p u s D r i v e Lane 66 LaSelvaDrive Gro v e C o u r t Mira n d a C t St a n f o r d A v e n u e Lane 12 W Lane 5 E Serra S t r e e t A r g u e l l o W a y G a l v e z S t r e e t Campus Drive Ea s t Nelson Dr i v e Arboretum Road L a u s e n S t r e e t G a l v e z S t r e e t Museum W a y Roth Wa y L o m i t a D r i v e Serra S t r e e t Escond i d o R o a d C a m p u s D r i v e E a s t Bowdoi n S t r e e t Escondido Road Co m s t o c k C i r c l e Angell Cour t Blac k We l der Court Jenkins Co urt McFar land Cou r t SerraStreet Hosk i ns Co u r t Thoburn Cou r t Hulme Cou r t Ba r n e s Court Olm stead Road D u dle y Lane Caballo Lane J o hn Ma r thens Lane(Pr ivate ) Pa g e M i l l R oad Band e r a drive Laure l Glenn D r i ve A l exis Dri v e Phillips Roa d Pi s t a c h e P l a c e Sa n t a Y n e z S t r e e t Salva t i e r r a S t r e e t Lane B Alvar a d o A v e n u e Mayfield Avenue Costonzo Street Cabrillo Avenue Ca m p u s D r i v e E a s t San Juan Street Lan e C Co r o n a d o A v e n u e Do l o r e s A v e n u e El D o r a d o A v e n u e OakCreekDrive Cla r a D r i v e Bellview Dr Ev e r e t t A v e n u e L os Trancos Road Los T r an c o s R o a d Emerson Street Bryant Street Ramona Street Emerson St Alma Street Waverley Street Alma Street Middlefield Road Webster StreetWebster Street Waverley Street Webster Street Fult on Street Seneca Street Newell Road Fult on Street Coastland Dr Van Auken Circle Louis RoadLouis Road Li n c o l n A v e n u e Un i v e r s i t y A v e n u e Ha m i l t o n A v e n u e Fo r e s t A v e n u e Fo r e s t A v e n u e Ly t t o n A v e n u e Un i v e r s i t y A v e n u e Ha w t h o r n e A v e n u e Pa l o A l t o A v e n u e Pa l o A l t o A v e n u e Ch a n n i n g A v e n u e Ad d i s o n A v e n u e Ho m e r A v e Ho m e r A v e n u e Me l v i l l e A v e n u e Ch u r c h i l l A v e . S e a l e A v e n u e Em b a r c a d e r o R o a d Em b a r c a d e r o R o a d East Bayshore Road Edgewood Driv e S a n d a l w o o d C t Mo r t o n S t r e e t H u t c h i n s o n A v e N e w e l l R o a d Guinda Street De S o t o D r i v e No r t h a m p t o n D r i v e Fi e l d i n g D r . Fielding Greer RoadMa d d u x D r i v e G r e e r R o a d S u t t e r A v e n u e Rosewood Dr Ro s e w o o d D r Su t t e r A v e n u e Kipling St Avalon Court Rorke Way Rorke Way N a t h a n W a y L o u i s R o a d C o r i n a W a y F a b i a n W a y Kipling Street Ma r g a r i t a A v e n u e La m b e r t A v e n u e Ma t a d e r o A v e n u e Wi l t o n A v e n u e El Camino Real Pa g e M i l l R o a d Alma Street Byron Street Ca l c a t e r r a P l a c e Ch r i s t o p h e r C t Mo n r o e D r Ma y b e l l A v e n u e Ba r r o n A v e n u e Ha n o v e r S t r e e t Porter Drive Pa g e M i l l R o a d Hi l l v i e w A v e n u e Foothill Ex p r e s s w a y El Cerrito Road El C e r r i t o R d Glenbro o k D r i v e Willma r D r i v e Miranda A v e n u e Het c h H e t c h y R O W Hetch Hetchy ROW Hil l v i e w A v e n u e Mo a n a C t Arastr a d e r o R o a d Arastrad e r o R o a d S A N A N T O N I O A V E N U E Chan n i n g A v e n u e Li n c o l n A v e n u e Li n c o l n A v e n u e Mor t o n S t r e e t Dr. S h a u n a L n S A N A N T O N I O A V E N U E Maddux Drive Va r i a n W a y Sh e r m a n A v e n u e Gr a n t A v e n u e S h e r i d a n A v e Lo s R o b l e s A v e Sprin g h i l l D r Map l e w o o d P l Las Tra m p a s V a l l e y R o a d Las Tram p a s V a l l e y R o a d Las Trampas Valley Roa d Vista H i l l R o a d Vis t a H i l l R o a d Vista H i l l R o a d Vist a H i l l R o a d Madera Point Road Las Tra m p a s V a l l e y R o a d M a d e r a P o i n t R o a d Page M i l l R o a d Page M i l l R o a d Emma Ct G a l v e z M a l l A r g u e l l o W a y Alma Village Circle Alma Village Lane OlmstedRoad OlmstedRoad OlmstedRoad Abrams Ct Olmsted Road Olm s t e d R o a d O l m s t e d R o a d OlmstedRoad This map is a product of the City of Palo Alto GIS This document is a graphic representation only of best available sources. Construction Fund Water CIP Project Plan 2017-2021: 2017 (WMR 27) 2018 (WMR 28) 2019 (WMR 29) 2020 (WMR 30) 2021 (WMR 31) 0'2500' City of Palo Alto Fiscal Year 2017 Adopted Budget Water Fund Map 5 Year CIP Project Plan CITY O F PALO A L T O I N C O R P O R A T E D C ALIFO R N I A P a l o A l t o T h e C i t y o f A P R I L 1 6 1 8 9 4 The City of Palo Alto assumes no responsibility for any errors. ©1989 to 2016 City of Palo Alto ssantos, 2016-03-08 16:38:26 Water Fund Map 2017-2021 (\\cc-maps\gis$\gis\admin\Personal\wt view.mdb) WATER FUND WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 591 Customer Connections WATER FUND 592 WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Water System Customer Connections Water System Customer Connections Description This project allows for improvements that include new main extensions, valves, domestic ser- vices, meters on upgraded services, backflow devices, fire services, and fire hydrants. Justification System extensions are required to provide service to new customers and to serve existing cus- tomers requesting expanded service. Significant Changes This project was previously titled "Water System Extensions". As part of the Fiscal Year 2015 budget, this project has been re-titled to "Water System, Customer Connections" to more accu- rately reflect the work done with this funding. Fund: Water Fund - Operating Category: Customer Connections Project Location: Various locations Managing Department: Utilities Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: WS-80013 Installation of 8" HDPE pipe by directional drilling method Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Other N/A 460,000 463,000 690,000 710,700 732,021 753,981 776,601 3,663,303 0 N/A Water Fund N/A 3,000 0 0 0 0 0 0 0 0 N/A Total N/A 463,000 463,000 690,000 710,700 732,021 753,981 776,601 3,663,303 0 N/A Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 463,000 463,000 690,000 710,700 732,021 753,981 776,601 3,663,303 0 N/A Total N/A 463,000 463,000 690,000 710,700 732,021 753,981 776,601 3,663,303 0 N/A WATER FUND WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 593 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-19 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. WATER FUND WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 595 System Improvements WATER FUND 596 WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Asset Management Mobile Deployment Asset Management Mobile Deployment Description This project will fund the field deployment of tools required for staff access and updating of the Asset Management System. Costs include the purchase of hardware and software systems required to access available records and to monitor maintenance activities. This project will increase productivity by allowing field editing of the Asset Management System. Justification Field accessible Asset Management System will reduce duplicate efforts for updating mainte- nance and construction activities. This project will minimize paper records keeping activities and provide staff with record data in the field. It will also allow for editing of inaccurate data on a real-time basis and further enhance both maintenance and job assignment activities. This sys- tem will be used to improve emergency/disaster field response activities. Fund: Water Fund - Operating Category: System Improvements Project Location: None Managing Department: Utilities Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: WS-13004 Handheld mobile device to access GIS information in the field Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Water Fund N/A 92,163 10,000 82,163 0 0 0 0 82,163 0 N/A Total N/A 92,163 10,000 82,163 0 0 0 0 82,163 0 N/A WATER FUND WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 597 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 92,163 10,000 82,163 0 0 0 0 82,163 0 N/A Total N/A 92,163 10,000 82,163 0 0 0 0 82,163 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-19 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. WATER FUND 598 WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Water Distribution System Improvements Water Distribution System Improvements Description This project provides funds as needed to improve water distribution system deliverability and reliability. Typical activities include: installing restraining joints at critical pipelines and bridge crossings, increasing the size of inadequate facilities, system leakage surveys, network model- ing, and fire flow studies or other system improvements as required. Justification Water distribution system reliability and adequate capacity are critical to providing a high level of service to customers in Palo Alto. Continuous evaluation of system needs and making required improvements is necessary to maintain adequate quantities of quality water, meeting local, state, and federal safe drinking water standards. Fund: Water Fund - Operating Category: System Improvements Project Location: Various locations Managing Department: Utilities Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: WS-11003 Installation of a new fire hydrant with FlowGuard fire hydrant check valve Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Water Fund N/A 210,606 210,606 739,000 247,000 254,000 261,620 269,469 1,771,089 0 N/A Total N/A 210,606 210,606 739,000 247,000 254,000 261,620 269,469 1,771,089 0 N/A WATER FUND WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 599 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 210,606 210,606 739,000 247,000 254,000 261,620 269,469 1,771,089 0 N/A Total N/A 210,606 210,606 739,000 247,000 254,000 261,620 269,469 1,771,089 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-19 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. WATER FUND 600 WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Water General Equipment/Tools Water General Equipment/Tools Description This funding allows for the acquisition of new equipment and tools, the replacement of existing fusion equipment, and other associated tools, annually. The fusion equipment is used to fuse together pipe joints in the City's water distribution system. Justification As the equipment ages, the quality of the fusion joints begins to decline, and the operators must spend more time scraping, aligning, and fusing construction joints. In order to maintain high quality standards for the installation of the City's water distribution mains, along with the associated service standards and worker safety and productivity measures, equipment and tools are required to be upgraded on an annual basis. Significant Changes 2015-2019 CIP: Project was retitled from "Water Fusion and General Equipment/Tools". Fund: Water Fund - Operating Category: System Improvements Project Location: Various locations Managing Department: Utilities Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: WS-13002 16" HDPE pipe being fused prior to installation Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Water Fund N/A 50,000 15,000 50,000 50,000 50,000 50,000 50,000 250,000 0 N/A Total N/A 50,000 15,000 50,000 50,000 50,000 50,000 50,000 250,000 0 N/A WATER FUND WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 601 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Other N/A 50,000 15,000 50,000 50,000 50,000 50,000 50,000 250,000 0 N/A Total N/A 50,000 15,000 50,000 50,000 50,000 50,000 50,000 250,000 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-18 Relationship to Comprehensive Plan Secondary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-25 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. WATER FUND 602 WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Water Meters Water Meters Description This funding allows for the purchase of meters for new customers, upgrading meters for current customers, installing meter bypasses, and replacing obsolete meters that are no longer repair- able. This funding also allows for annual testing and calibration of select meters each year. Justification This project will maintain meter accuracy, reliability, and stock meter equipment and replace- ment parts. Meter replacements enhance information on system water volume; align the Utility's ten-year meter testing and replacement cycle in accordance with industry-standard best man- agement practices; and provide accurate data for the Water Utility billing system. Fund: Water Fund - Operating Category: System Improvements Project Location: Various locations Managing Department: Utilities Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: WS-80015 5/8" Badger water meter Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Water Fund N/A 635,457 535,000 565,000 565,000 500,000 515,000 530,450 2,675,450 0 N/A Total N/A 635,457 535,000 565,000 565,000 500,000 515,000 530,450 2,675,450 0 N/A Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 635,457 535,000 565,000 565,000 500,000 515,000 530,450 2,675,450 0 N/A Total N/A 635,457 535,000 565,000 565,000 500,000 515,000 530,450 2,675,450 0 N/A WATER FUND WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 603 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-19 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. WATER FUND 604 WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Water Recycling Facilities Water Recycling Facilities Description This funding allows the City of Palo Alto to fund a consultant to prepare a business plan, pre- pare a preliminary design, and secure funding options for an expansion of the existing recycled water delivery system in the City. The pipeline will serve primarily the Stanford Research Park and provide an alternative supply source of 1,000 acre feet or 435,600 CCF per year. For con- text this represents roughly 10% of Palo Alto’s total water consumption in 2015. A key part of the proposed business plan will be evaluating potential alternative uses of the new pipeline to serve future needs in Direct Potable Reuse, and Indirect Potable Reuse. This new more detailed plan follows the successful completion and certification of the project’s environmental impact report in September 2015. The next phase of the project is to evaluate the results of this business plan and other deliverables, and pending a satisfactory assessment, move forward with the full design work of the proposed expansion of the recycled water delivery system. Justification Palo Alto is aggressively pursuing all options to meet future water supply needs. Recycled water provides a stable, drought-proof supply of water that replaces the need to use Hetch Het- chy potable supplies for irrigation purposes and other non-potable uses. In anticipation of extended periods of drought and mandatory potable water reduction imposed by the State, the City is evaluating a wide range of alternative water supplies. Recycled water and groundwater are two such resources that are interrelated in their development and potential. Therefore, the City is taking an integrated approach to evaluating non-potable recycled water, shallow aquifer groundwater, deep aquifer groundwater, and Direct Potable Reuse and Indirect Potable Reuse. Fund: Water Fund - Operating Category: System Improvements Project Location: Various locations Managing Department: Utilities Initial Project Start: Spring 2011 Initial Project Completion: Spring 2015 Revised Project Start: Revised Project Completion: Fall 2017 Project Number: WS-07001 Recycled water piping WATER FUND WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 605 The end product will be a recycled water strategic plan for the most flexible and robust use of these resources. Significant Changes While staff has addressed many issues regarding a future recycled water project including the completion and certification by the Council of the projectís environmental impact report (EIR), the replacement of high quality potable water with recycled water remains a concern for the landscape community among others. Completion of the environmental document was essential for securing Federal or State grant or loan funding for the construction of the project, and now the City of Palo Alto needs to reassess a more exhaustive number of potential end uses, assess customer demand, prepare a business plan, finish a preliminary design, and secure funding. Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Water Fund 408,983 243,716 243,716 200,000 0 0 0 0 200,000 0 852,699 Total 408,983 243,716 243,716 200,000 0 0 0 0 200,000 0 852,699 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction 327,186 243,716 243,716 200,000 0 0 0 0 200,000 0 770,902 Design 81,796 0 0 0 0 0 0 0 0 0 81,796 Total 408,982 243,716 243,716 200,000 0 0 0 0 200,000 0 852,698 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-20 Program: N-26 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. WATER FUND 606 WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Water Service Hydrant Replacement Water Service Hydrant Replacement Description This project replaces system control valves, deteriorated galvanized service lines, lead goose- necks, and fire hydrant valves and assemblies as a result of Fire Department flow testing; upgrades fire hydrants in main replacement project areas; and replaces existing undersized or deteriorated copper water services. Upgrading hydrants and system control valves is consistent with fire protection policies. Justification In order to maintain a high water quality standard for Palo Alto's water supplies, it is necessary to replace old, lead, galvanized, and corroded copper water service lines when found. Fund: Water Fund - Operating Category: System Improvements Project Location: Various locations Managing Department: Utilities Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: WS-80014 Newly installed fire hydrant service line and assembly on Greenwood Avenue Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Water Fund N/A 244,869 100,000 400,000 412,000 424,360 437,091 450,204 2,123,655 0 N/A Total N/A 244,869 100,000 400,000 412,000 424,360 437,091 450,204 2,123,655 0 N/A Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 244,869 100,000 400,000 412,000 424,360 437,091 450,204 2,123,655 0 N/A Total N/A 244,869 100,000 400,000 412,000 424,360 437,091 450,204 2,123,655 0 N/A WATER FUND WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 607 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-19 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. WATER FUND 608 WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Water System Supply Improvements Water System Supply Improvements Description This project provides funding, as needed, to improve the City’s water distribution system. This system includes: connection facilities between the City’s and the San Francisco Public Utility Commission’s pipelines, emergency water wells within the City, pumping stations, water reser- voirs, and pipelines. Justification It is critical that the City has an adequate supply of water that meets federal and state drinking water requirements. To meet these objectives, the City must continually evaluate the system and make improvements when they are required. Supplemental Information Typical activities performed under this project include: piping modifications, equipment replacements associated with water delivery, Supervisory Control software upgrades, system modifications for water system quality compliance, implementation of an asset management system, conditional assessment of the reliability of transmission mains, and security system installations. Fund: Water Fund - Operating Category: System Improvements Project Location: Various locations Managing Department: Utilities Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: WS-11004 Installation of 8" HDPE pipe and valve between two main connection points on El Camino Real at El Camino Way Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Water Fund N/A 158,076 158,076 239,000 247,000 254,000 261,620 269,469 1,271,089 0 N/A Total N/A 158,076 158,076 239,000 247,000 254,000 261,620 269,469 1,271,089 0 N/A WATER FUND WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 609 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 158,076 158,076 239,000 247,000 254,000 261,620 269,469 1,271,089 0 N/A Total N/A 158,076 158,076 239,000 247,000 254,000 261,620 269,469 1,271,089 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-19 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. WATER FUND 610 WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Water, Gas, Wastewater Utility GIS Data Water, Gas, Wastewater Utility GIS Data Description This funding covers the annual maintenance and support contract to improve the ability of Util- ities Department staff to use the Geographic Information System (GIS). As with other GIS activ- ities, continuing the completion of data-related tasks is the primary emphasis. Because field personnel still need accurate paper maps in the field, standard map books will be produced that meet their specific needs. Funding is also included to improve the GIS user interface to better serve the unique requirements of Utility Department users. Justification The GIS program is used for interfacing with modeling software to perform engineering analysis and master planning; developing and prioritizing cost-effective capital improvement designs; and asset management of the City's utility enterprise system; thereby enhancing the level of service to utility customers. Fund: Water Fund - Operating Category: System Improvements Project Location: Software maintenance & update Managing Department: Utilities Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: WS-02014 WATER FUND WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 611 Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Transfer from Gas Fund N/A 110,917 110,917 122,009 134,209 147,630 152,059 156,621 712,528 0 N/A Transfer from Wastewater Treatment Fund N/A 110,917 110,917 122,009 134,209 147,630 152,059 156,621 712,528 0 N/A Water Fund N/A 166,004 110,916 122,007 134,210 147,630 152,059 156,620 712,526 0 N/A Total N/A 387,838 332,750 366,025 402,628 442,890 456,177 469,862 2,137,582 0 N/A Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 387,838 332,750 366,025 402,628 442,890 456,177 469,862 2,137,582 0 N/A Total N/A 387,838 332,750 366,025 402,628 442,890 456,177 469,862 2,137,582 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Transportation Section: Reducing Auto Use Goal: T-1 Policy: T-2 Program: T-10 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. WATER FUND WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 613 Water Main Replacements WATER FUND 614 WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Water Main Replacement - Project 27 Water Main Replacement - Project 27 Description This project will fund the design and replacement of structurally deficient water mains and appurtenances in Fiscal Years 2016 and 2017. Mains are selected by researching the mainte- nance history of the system and identifying those that are undersized, corroded, and subject to breaks. The project scope includes approximately 29,340 linear feet (which represents 2.3% of the City's Water distribution system) of mains and services on various streets within the City, including areas in Downtown North, University South and Professorville neighborhoods. Justification Some mains are inadequate in size to supply required flows and pressures for fire protection, and others are subject to recurring breaks. Supplemental Information Each year the projects are re-evaluated and the highest priority is given to the most deterio- rated portions of the system. Linear footage and locations are subject to change, please refer to the City of Palo Alto Utilities webpage to confirm project details. Fund: Water Fund - Operating Category: Water Main Replacements Project Location: Various locations Managing Department: Utilities Initial Project Start: Summer 2016 Initial Project Completion: Winter 2018 Revised Project Start: Revised Project Completion: Project Number: WS-13001 Installed 16" HDPE pipe waiting to be backfilled Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Water Fund 0 568,065 568,065 5,680,651 0 0 0 0 5,680,651 0 6,248,716 Total 0 568,065 568,065 5,680,651 0 0 0 0 5,680,651 0 6,248,716 WATER FUND WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 615 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 5,680,651 0 0 0 0 5,680,651 0 5,680,651 Design 0 568,065 568,065 0 0 0 0 0 0 0 568,065 Total 0 568,065 568,065 5,680,651 0 0 0 0 5,680,651 0 6,248,716 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-20 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. WATER FUND 616 WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Water Main Replacement - Project 28 Water Main Replacement - Project 28 Description This project will fund the design and replacement of structurally deficient water mains and appurtenances in Fiscal Years 2017 and 2018. Mains are selected by researching the mainte- nance history of the system and identifying those that are undersized, corroded, and subject to breaks. The project scope includes approximately 14,754 linear feet (which represents 1.2% of the City's Water distribution system) of mains and services on various streets within the City, including areas in Old Palo Alto. Justification Some mains are inadequate in size to supply required flows and pressures for fire protection, and others are subject to recurring breaks. Supplemental Information Each year the projects are re-evaluated and the highest priority is given to the most deterio- rated portions of the system. Linear footage and locations are subject to change, please refer to the City of Palo Alto Utilities webpage to confirm project details. Fund: Water Fund - Operating Category: Water Main Replacements Project Location: Various locations Managing Department: Utilities Initial Project Start: Summer 2017 Initial Project Completion: Winter 2019 Revised Project Start: Revised Project Completion: Project Number: WS-14001 New HDPE main connecting to side street with new valve Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Water Fund 0 0 0 585,107 5,851,070 0 0 0 6,436,177 0 6,436,177 Total 0 0 0 585,107 5,851,070 0 0 0 6,436,177 0 6,436,177 WATER FUND WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 617 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 0 5,851,070 0 0 0 5,851,070 0 5,851,070 Design 0 0 0 585,107 0 0 0 0 585,107 0 585,107 Total 0 0 0 585,107 5,851,070 0 0 0 6,436,177 0 6,436,177 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-20 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. WATER FUND 618 WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Water Main Replacement - Project 29 Water Main Replacement - Project 29 Description This project will fund the design and replacement of structurally deficient water mains and appurtenances in Fiscal Years 2018 and 2019. Mains are selected by researching the mainte- nance history of the system and identifying those that are undersized, corroded, and subject to breaks. The project scope includes approximately 12,523 linear feet (which represents 1.0% of the City's Water distribution system) of mains and services on various streets within the City, including areas in Leland Manor neighborhood. Justification Some mains are inadequate in size to supply required flows and pressures for fire protection, and others are subject to recurring breaks. Supplemental Information Each year the projects are re-evaluated and the highest priority is given to the most deterio- rated portions of the system. Linear footage and locations are subject to change, please refer to the City of Palo Alto Utilities webpage to confirm project details. Fund: Water Fund - Operating Category: Water Main Replacements Project Location: Various locations Managing Department: Utilities Initial Project Start: Summer 2018 Initial Project Completion: Winter 2020 Revised Project Start: Revised Project Completion: Project Number: WS-15002 16" HDPE pipe ready to be installed by open trench method Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Water Fund 0 0 0 0 602,660 6,026,602 0 0 6,629,262 0 6,629,262 Total 0 0 0 0 602,660 6,026,602 0 0 6,629,262 0 6,629,262 WATER FUND WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 619 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 0 0 6,026,602 0 0 6,026,602 0 6,026,602 Design 0 0 0 0 602,660 0 0 0 602,660 0 602,660 Total 0 0 0 0 602,660 6,026,602 0 0 6,629,262 0 6,629,262 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-18 Relationship to Comprehensive Plan Secondary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-25 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. WATER FUND 620 WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Water Main Replacement - Project 30 Water Main Replacement - Project 30 Description This project will fund the design and replacement of structurally deficient water mains and appurtenances in Fiscal Years 2019 and 2020. Mains are selected by researching the mainte- nance history of the system and identifying those that are undersized, corroded, and subject to breaks. The project scope includes approximately 16,943 linear feet (which represents 1.4% of the City's Water distribution system) of mains and services on various streets within the City, including areas in Midtown West and Palo Verde. Justification Some mains are inadequate in size to supply required flows and pressures for fire protection, and others are subject to recurring breaks. Supplemental Information Each year the projects are re-evaluated and the highest priority is given to the most deterio- rated portions of the system. Linear footage and locations are subject to change, please refer to the City of Palo Alto Utilities webpage to confirm project details. Fund: Water Fund - Operating Category: Water Main Replacements Project Location: Managing Department: Utilities Initial Project Start: Summer 2019 Initial Project Completion: Winter 2021 Revised Project Start: Revised Project Completion: Project Number: WS-16001 HDPE pipe waiting to be fused Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Water Fund 0 0 0 0 0 620,740 6,207,400 0 6,828,140 0 6,828,140 Total 0 0 0 0 0 620,740 6,207,400 0 6,828,140 0 6,828,140 WATER FUND WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 621 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 0 0 0 6,207,400 0 6,207,400 0 6,207,400 Design 0 0 0 0 0 620,740 0 0 620,740 0 620,740 Total 0 0 0 0 0 620,740 6,207,400 0 6,828,140 0 6,828,140 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-20 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. WATER FUND 622 WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Water Main Replacement - Project 31 Water Main Replacement - Project 31 Description Funding for this project is a placeholder that will allow for the design and replacement of struc- turally deficient water mains and appurtenances in Fiscal Years 2020 and 2021. Mains are selected by researching the maintenance history of the system and identifying those that are undersized, corroded, and subject to breaks. The project scope is as yet undetermined but may include 15,000 - 25,000 linear feet of mains and services on various streets within the City. Justification Some mains are inadequate in size to supply required flows and pressures for fire protection, and others are subject to recurring breaks. Supplemental Information Each year the projects are re-evaluated and the highest priority is given to the most deterio- rated portions of the system. Linear footage and locations are subject to change, please refer to the City of Palo Alto Utilities webpage to confirm project details. Fund: Water Fund - Operating Category: Water Main Replacements Project Location: Various Locations Managing Department: Utilities Initial Project Start: Summer 2020 Initial Project Completion: Winter 2022 Revised Project Start: Revised Project Completion: Project Number: WS-19001 Installed 16" HDPE pipe waiting to be backfilled Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Water Fund 0 0 0 0 0 0 639,362 6,396,320 7,035,682 0 7,035,682 Total 0 0 0 0 0 0 639,362 6,396,320 7,035,682 0 7,035,682 WATER FUND WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 623 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 0 0 0 0 6,396,320 6,396,320 0 6,396,320 Design 0 0 0 0 0 0 639,362 0 639,362 0 639,362 Total 0 0 0 0 0 0 639,362 6,396,320 7,035,682 0 7,035,682 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-20 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. WATER FUND 624 WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Water Main Replacement - Project 32 Water Main Replacement - Project 32 Description Funding for this project is a placeholder that will allow for the design and replacement of struc- turally deficient water mains and appurtenances in Fiscal Years 2021 and 2022. Mains are selected by researching the maintenance history of the system and identifying those that are undersized, corroded, and subject to breaks. The project scope is as yet undetermined but may include 15,000 - 25,000 linear feet of mains and services on various streets within the City. Justification Some mains are inadequate in size to supply required flows and pressures for fire protection, and others are subject to recurring breaks. Supplemental Information Each year the projects are re-evaluated and the highest priority is given to the most deterio- rated portions of the system. Linear footage and locations are subject to change, please refer to the City of Palo Alto Utilities webpage to confirm project details. Fund: Water Fund - Operating Category: Water Main Replacements Project Location: Various Locations Managing Department: Utilities Initial Project Start: Summer 2021 Initial Project Completion: Winter 2023 Revised Project Start: Revised Project Completion: Project Number: WS-20000 Installed 16" HDPE pipe waiting to be backfilled Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Water Fund 0 0 0 0 0 0 0 658,543 658,543 0 658,543 Total 0 0 0 0 0 0 0 658,543 658,543 0 658,543 WATER FUND WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 625 Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 0 0 0 0 0 0 6,588,210 6,588,210 Design 0 0 0 0 0 0 0 658,543 658,543 0 658,543 Total 0 0 0 0 0 0 0 658,543 658,543 6,588,210 7,246,753 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-20 Relationship to Comprehensive Plan Secondary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-19 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 629 TECHNOLOGY FUND TECHNOLOGY FUND 654 TECHNOLOGY FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET Utilities Customer Bill System Improvements Utilities Customer Bill System Improvements Description This project provides regulatory enhancements and improved security for the Utilities billing system. Through the implementation of this recurring project, the Utilities Department will be responsive to new legislation and legal requirements. Securing customer sensitive information and complying with Payment Card Industry (PCI) data security standards will continue to be a priority as well. Justification This project provides software system updates to meet mandatory security, regulatory, and governing requirements. This includes reviewing the various Meter-to-Cash business processes, the My Utilities Account online customer portal, reporting tools, bill print software, and the Cus- tomer Relationship Management (CRM) solution for the Utilities Billing System. The Enterprise Funds share proportionately in the costs of this project. Significant Changes This project has traditionally been a recurring project, with new funding being transferred to the Technology Fund from the various enterprise funds each year. We are extending funding into Fiscal Year 2017 to address a required technical upgrade to the Utilities bill print and electronic vaulting software as well as proceed with a scheduled upgrade to the My Utilities Account self- customer service portal to allow for mobile optimized viewing and enhanced functionality. Fund: Technology Fund Category: Department Technology Upgrades and Improvements Project Location: Various Managing Department: Information Technology Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: TE-10001 Utilities Customer Billing System Improvements TECHNOLOGY FUND TECHNOLOGY FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 655 Funding Sources Schedule Funding Source Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Technology Fund N/A 5,002 0 0 0 0 0 0 0 0 N/A Transfer from Electric Fund N/A 119,415 24,572 122,856 0 0 0 0 122,856 0 N/A Transfer from Fiber Optics Fund N/A 915 188 941 0 0 0 0 941 0 N/A Transfer from Gas Fund N/A 45,992 9,463 47,317 0 0 0 0 47,317 0 N/A Transfer from Refuse Fund N/A 27,914 5,744 28,718 0 0 0 0 28,718 0 N/A Transfer From Storm Drainage Fund N/A 5,970 1,228 6,142 0 0 0 0 6,142 0 N/A Transfer from Wastewater Collection Fund N/A 15,412 3,171 15,856 0 0 0 0 15,856 0 N/A Transfer from Water Fund N/A 27,381 5,634 28,170 0 0 0 0 28,170 0 N/A Total N/A 248,001 50,000 250,000 0 0 0 0 250,000 0 N/A Expenditure Schedule Project Phase Prior Years FY 2016 Budget FY2016 Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 248,002 0 0 0 0 0 0 0 0 N/A Other N/A 0 50,000 250,000 0 0 0 0 250,000 0 N/A Total N/A 248,002 50,000 250,000 0 0 0 0 250,000 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Customer Service Goal: C-2 Policy: C-10 Program: C-12 Environmental Impact Analysis: This project is categorically exempt from CEQA under section 15301. 1 FY 2017 Proposed Operating and Capital Improvement Budgets Utilities Utilities Advisory Commission May 4, 2016 Ut i l i t i e s D e p a r t m e n t 2 Department Overview Mission: The City of Palo Alto Utilities provides safe, reliable, environmentally sustainable and cost effective services. Strategic Objective •Safety & Reliability •Customer Service Excellence •Cost Management •Environmental Sustainability Ut i l i t i e s D e p a r t m e n t 3 Budget Cycle - Base budget - 5yr CIP plan Submittals - Operating - Capital - FTE - Reallocate staff - KPMs - Internal review - Five Year Financial Forecast - CMO, HR, OMB approvals - Outreach - Financial Forecasts & Rates to UAC and Finance - Prop 218 Council adoption and public hearings DEC FEB JAN MAR APR- MAY JUN NOV Ut i l i t i e s D e p a r t m e n t 4 Accomplishments •Coordinated successful citywide drought response efforts •Launched and achieved very high participation in Peninsula SunShares program •Increased the City’s Renewable Portfolio Standard to 26% and projected RPS of 40% by end of CY 2016 •Launched a heat pump water heater pilot, PaloAltoGreen Gas Program and Home Efficiency Genie program •Completed major Water, Gas and Wastewater CIP replacement projects ; upgraded security in two substations Ut i l i t i e s D e p a r t m e n t 5 Awards & Accolades •Placed in the Smart Electric Power Alliance (SEPA) Top Ten list, ranked #3 on the Watts-per- Customer list for 2015. •Awarded Tree Line USA Utility by Arbor Day Foundation. •Received the highest honor for Sustainability through the Acterra Business Environmental Awards. •Designated as a Reliable Public Power Provider (RP3) by the American Public Power Association. Ut i l i t i e s D e p a r t m e n t 6 Initiatives •Capital Improvements and Maintenance •Energy Efficiency and Conservation Programs •Technology and Smart Grid •Electrification Work Plan •Workforce Development and Succession Plan •Strategic Plan Update Ut i l i t i e s D e p a r t m e n t 7 Proposed Rate Increases 11% Electric 9% Wastewater 8% Gas 6% Water 3.2% Fiber Ut i l i t i e s D e p a r t m e n t 8 Proposed Residential Monthly Bill Change Ut i l i t i e s D e p a r t m e n t Utility FY16 Adjusted FY17 Proposed $ chg % chg Electric 42.76 49.75 6.99 16.3% Water (1)82.51 87.24 4.73 5.7% Gas (2)34.68 37.43 2.75 7.9% Wastewater 31.95 34.83 2.88 9.0% Refuse 43.75 47.69 3.94 9.0% Storm Drain 12.63 13.03 0.40 3.2% User Tax 8.00 8.72 0.72 9.0% Total Monthly Bill 256.28 278.70 22.42 8.7% 1) Water FY16 Adjusted rate effective 9/15/15 including drought surcharge. 2) Gas FY16 Adjusted based on monthly market rates. 9 Neighboring Residential Bill Utility Palo Alto Menlo Park Redwood City Mountain View Los Altos Santa Clara Hayward Average Electric $ 49.75 $ 75.22 $ 75.22 $ 75.22 $ 75.22 $ 44.43 $ 75.22 $ 70.09 Gas $ 37.43 $ 47.51 $ 47.51 $ 47.51 $ 47.51 $ 47.51 $ 47.51 $ 47.51 Wastewater $ 34.83 $ 81.08 $ 74.95 $ 28.80 $ 32.01 $ 37.94 $ 28.93 $ 47.29 Water $ 87.24 $ 74.36 $ 66.77 $ 60.31 $ 51.68 $ 37.44 $ 61.58 $ 58.69 Total Bill $ 209.25 $ 278.17 $ 264.45 $ 211.84 $ 206.42 $ 167.32 $ 213.24 $ 223.57 % Difference -33%-26%-1%1%20%-2%-7% Ut i l i t i e s D e p a r t m e n t - Effective as of March 1, 2016 10 Discretionary vs. Non-Discretionary Cost Drivers Expense Type Electric Gas Wastewater Water Fiber Commodity 51%31%45%40%0% Equity Transfer 7%17%0%0%0% Debt Service 5%2%1%7%0% Rents & Leases 3%2%2%6%2% Allocated Charges 5%11%13%9%14% Non-discretionary 72%62%61%61%16% Capital Improvement 13%16%22%20%43% Salary & Benefits 9%15%12%14%26% Contract Services 4%4%1%2%11% Other 3%4%4%3%3% Discretionary 28%38%39%39%84% Ut i l i t i e s D e p a r t m e n t 11 Cost Management Strategies •Infrastructure Replacement Projects •Purchase Power Agreements •Staffing vs. Contract Services •Internal Allocation Charges •External Joint Agency Charges Ut i l i t i e s D e p a r t m e n t 12 Electric Initiatives •Safety & Reliability •Upgrade substation facilities to increase electric system capacity •Rebuild underground districts •Energy Efficiency •Increase the City’s Renewable Portfolio standard to 57% by end of CY2017 •Continue to evaluate and develop potential cost- effective Electrification programs El e c t r i c F u n d 13 Factors for Rate Increase El e c t r i c F u n d 0 20 40 60 80 100 120 140 160 180 FY 2015 FY 2017 $ M i l l i o n s CPAU Electric Costs Debt Service Transfers Operations Capital Improvement Supply $141M $155M 14 Electric Change Summary •Rate Increase $15M •Customer CIP $7M •Traffic Signals $2M Revenues $26M or 20% •Commodity $10M •CIP $5M •Contracts $2M Expenses $17M or 11% •Operations $23M •Hydro $11M •Rate Stabilization $5M Reserves ($17.3M) El e c t r i c F u n d 15 El e c t r i c F u n d Electric Historical Expense - 20 40 60 80 100 120 140 160 180 FY13 Act FY14 Act FY15 Act FY16 Bud FY17 Bud Other Allocated Charges Debt Service Rent Equity Transfer S&B CIP Commodity 16 Capital Improvement Program •Undergrounding Projects •System Improvements •Customer Connections •Electric Pole Replacements FTTP •VA Hospital •Stanford Medical & Shopping Center $11.6M $9.2M $0.8M Current Proposed CIP Forecast, FY 2017-2021 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 $17.0M $21.6M $16.5M $24.2M $9.6M $7.3M El e c t r i c F u n d 17 Fiber Initiatives •Rebuild/Upgrade the City’s dark fiber network •Reach an agreement with Google Fiber or 3rd party to build a citywide fiber optic network •Issue a Request for Proposal to build wireless networks for Public Safety and Utilities •Develop a ‘Dig Once” policy or ordinance Fi b e r F u n d 18 Fiber Change Summary •CPI rate increase EDF-1 customers Revenues $0.4M or 9% •Temporary Fiber and Wireless Project Manager Expenses $0.2M or 5.5% •Projected Reserves of $22M Reserves $1.2M Fi b e r F u n d 19 Capital Improvement Program •Customer Connections •Network and Capacity Enhancements •Fiber System Rebuild $1.5M $0.2M Fi b e r F u n d Current Proposed CIP Forecast, FY 2017-2021 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 $2.0M $1.7M $0.5M $0.5M $0.5M $0.5M 20 Gas Initiatives •Promote PaloAltoGreen Gas Program •Gas main replacement project •Cross Bore Safety inspection program •Gas safety awareness and outreach Ga s F u n d 21 Factors for Rate Increase Ga s F u n d 22 Gas Change Summary •Customer Sales $1.4M Revenues ($1M) or (3%) •Commodity Purchases ($3M ) •Equity Transfer $1M Expenses ($2M) or (6%) •Total Reserves of $7.6M Reserves ($4M) Ga s F u n d 23 Ga s F u n d Gas Historical Expense - 5 10 15 20 25 30 35 40 45 FY13 Act FY14 Act FY15 Act FY16 Bud FY17 Bud Other Allocated Charges Debt Service Rent Equity Transfer S&B CIP Commodity 24 Capital Improvement Program •System Improvements •Customer Connections •Gas Main Replacements •GMR 22 – Downtown University Ave $4.2M $1.4M $0.7M Ga s F u n d Current Proposed CIP Forecast, FY 2017-2021 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 $9.7M $6.3M $5.9M $6.1M $6.3M $6.5M 25 Wastewater Initiatives •Continue multi-year construction of SSR Projects 24/25/26 •Reduce total number of Sanitary Sewer Overflows •Start the construction of sanitary sewer replacement project SSR 27 Wa s t e w a t e r C o l l e c t i o n F u n d 26 Factors for Rate Increase Wa s t e w a t e r C o l l e c t i o n F u n d 27 Wastewater Change Summary •Customer Sales $0.9M Revenues $1M or 7% •Treatment Charges $1.2M •Street cut fees $0.3M Expenses $0.7M or 3% •Operations $3.4M •CIP $2.6M Reserves ($2.3M) Wa s t e w a t e r C o l l e c t i o n F u n d 28 Wa s t e w a t e r C o l l e c t i o n F u n d Wastewater Historical Expense - 5 10 15 20 25 FY13 Act FY14 Act FY15 Act FY16 Bud FY17 Bud Other Allocated Charges Debt Service Rent S&B CIP Treatment 29 Capital Improvement Program •Customer Connections •System Improvements •Sewer System Rehab (SSR) 27 •Sewer System Rehab (SSR) 28 design $4.5M $0.4M Wa s t e w a t e r C o l l e c t i o n F u n d Current Year Proposed CIP Forecast, FY 2017-2021 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 $14.7M $4.8M $4.9M $5.1M $5.2M $5.4M 30 Water Initiatives •Complete business plan to evaluate potential expansion of recycled water •Complete construction of Boronda Reservoir •Complete the design for WMR 26 Wa t e r F u n d 31 Factors for Rate Increase Wa t e r F u n d 32 Water Change Summary •Rate increase $2M •Usage decrease ($2M) Revenues No net change •Staffing Reallocation $0.7M •Commodity Purchase ($1.3M) Expenses ($0.5M) or (1%) •Operations $11M •CIP $9M Reserves ($6M) Wa t e r F u n d 33 Wa t e r F u n d Water Historical Expense - 5 10 15 20 25 30 35 40 45 50 FY13 Act FY14 Act FY15 Act FY16 Bud FY17 Bud Other Allocated Charges Debt Service Rent S&B CIP Commodity 34 Capital Improvement Program •Customer Connections •System Improvements •Water Main Replacements WMR 27 – Downtown University and Sandhill $6.3M $2.6M $0.7M Wa t e r F u n d Current Year Proposed CIP Forecast, FY 2017-2021 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 $24M $9.6M $9.1M $9.3M $9.6M $9.9M 35 Staffing Requests No Regular Additions or Reductions Reclassifications (11 FTEs - $177k) –Realign job title to existing and/or new duties –Improve operational efficiency –Provide staffing flexibility –Create job development opportunity Add/Drop (2 FTEs - $74k) –Reorganize department Ut i l i t i e s D e p a r t m e n t 36 Position Reclassifications Division Current Title Proposed Title FTE Adm Senior Management Analyst Strategic Business Manager 1 RMD Marketing Engineer Resource Planner 1 Eng Coordinator, Utilities Projects Inspector, Field Services 1 Ops Gas Technician I Gas Technician II 2 Ops Water Meter Technician Water System Operator I 1 Ops Installer Repairer Installer Repairer/Heavy Equipment Operator 2 Ops Heavy Equipment Operator Installer Repairer/Heavy Equipment Operator 2 Ops Electrical Assistant I Electric Equipment Tech 1 Total 11 Ut i l i t i e s D e p a r t m e n t 37 Position Add/Drop Division Current Title Proposed Title FTE Ops Water Meter Technician Engineering Tech III 1 Eng/Ops Supervisor, Inspection Services Utilities Supervisor 1 Total 2 Ut i l i t i e s D e p a r t m e n t 38 Recommendation 1.Recommend Council approve proposed FY 2017 Utilities Operating Budget 2.Recommend Council approve proposed FY 2017 Utilities CIP Budget Ut i l i t i e s D e p a r t m e n t