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HomeMy WebLinkAbout2020-03-02 City Council Agenda PacketCity Council 1 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. Monday, March 2, 2020 Regular Meeting Council Chambers 6:00 PM Agenda posted according to PAMC Section 2.04.070. Supporting materials are available in the Council Chambers on the Thursday 11 days preceding the meeting. PUBLIC COMMENT Members of the public may speak to agendized items; up to three minutes per speaker, to be determined by the presiding officer. If you wish to address the Council on any issue that is on this agenda, please complete a speaker request card located on the table at the entrance to the Council Chambers, and deliver it to the City Clerk prior to discussion of the item. You are not required to give your name on the speaker card in order to speak to the Council, but it is very helpful. Public comment may be addressed to the full City Council via email at City.Council@cityofpaloalto.org. TIME ESTIMATES Time estimates are provided as part of the Council's effort to manage its time at Council meetings. Listed times are estimates only and are subject to change at any time, including while the meeting is in progress. The Council reserves the right to use more or less time on any item, to change the order of items and/or to continue items to another meeting. Particular items may be heard before or after the time estimated on the agenda. This may occur in order to best manage the time at a meeting or to adapt to the participation of the public. To ensure participation in a particular item, we suggest arriving at the beginning of the meeting and remaining until the item is called. HEARINGS REQUIRED BY LAW Applicants and/or appellants may have up to ten minutes at the outset of the public discussion to make their remarks and up to three minutes for concluding remarks after other members of the public have spoken. Call to Order Study Session 6:00-7:00 PM 1.Semiannual Update on the Status of Capital Improvement Program Projects Agenda Changes, Additions and Deletions Oral Communications 7:00-7:15 PM Members of the public may speak to any item NOT on the agenda. Council reserves the right to limit the duration of Oral Communications period to 30 minutes. Consent Calendar 7:15-7:20 PM Items will be voted on in one motion unless removed from the calendar by three Council Members. 2.Acceptance of the Northwest County Recycled Water Strategic Plan Report 3.Review of the Fiscal Year (FY) 2020 Mid-year Budget Status, Approve Budget Amendments in Various Funds, and Amend the Salary Vice Mayor DuBois will participate from the business office of the Courtyard Secaucus Marriott 455 Harmon Meadow Blvd., Secaucus, NJ, 07094 REVISED Q & A 2 March 2, 2020 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. Schedules for Services Employees’ International Union - Hourly (SEIU - H) and Limited Hourly (HRLY) Groups in Accordance With the City's 2020 Minimum Wage Ordinance 4.Adoption of an Ordinance Amending Chapter 1.12 (Administrative Penalties – Citations) to Provide for an Administrative Hearing Upon Partial Advance Deposit of $250 and Clarify Existing Procedures for Hearings City Manager Comments 7:20-7:30 PM Action Items Include: Reports of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Reports of Officials, Unfinished Business and Council Matters. 7:30-8:30 PM 5.Adoption of a Resolution to Extend the Bicycle and Electric Scooter Share Pilot Program for One Year 8:30-9:30 PM 6.Review of the Report on the Palo Alto History Museum's Fundraising Status for the Roth Building Rehabilitation Project (300 Homer Avenue), Discussion of Options for Roth Building Use and Rehabilitation, and Direction for Next Steps; Approval of Agreement with Sea Scouts/Environmental Volunteers to Provide $65,000 in Dedicated Funding for Uses Related to the Mission of the Environmental Volunteers Council Member Questions, Comments and Announcements Members of the public may not speak to the item(s) Adjournment AMERICANS WITH DISABILITY ACT (ADA) Persons with disabilities who require auxiliary aids or services in using City facilities, services or programs or who would like information on the City’s compliance with the Americans with Disabilities Act (ADA) of 1990, may contact (650) 329-2550 (Voice) 24 hours in advance. Q & A Q & A 3 March 2, 2020 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. Additional Information Supplemental Information Standing Committee Meetings Finance Committee Meeting March 3, 2020 Mayor’s State of the City Address March 4, 2020 City Council Meeting Cancellation March 9, 2020 Policy and Services Committee Meeting Cancellation March 10, 2020 Schedule of Meetings Schedule of Meetings Tentative Agenda Tentative Agenda Informational Report Annual Review of the City’s Renewable Procurement Plan, Renewable Portfolio Standard Compliance, and Carbon Neutral Electric Supplies City of Palo Alto Sales Tax Digest Summary for the Second (Calendar) Quarter of 2019 (April - June 2019) City of Palo Alto Proclamation Supporting the 2020 US Census Public Letters to Council Set 1 Council Appointed Officer's Committee Meeting March 5, 2020 City of Palo Alto (ID # 10698) City Council Staff Report Report Type: Study Session Meeting Date: 3/2/2020 City of Palo Alto Page 1 Summary Title: CIP Projects Update December 2019 Title: Semiannual Update on the Status of Capital Improvement Program Projects From: City Manager Lead Department: Public Works Recommendation This is an informational report to facilitate a Council Study Session discussion on the City’s capital improvement program and the status of the 2014 Council Infrastructure Plan. No action by Council will be taken. Executive Summary The City Council and Palo Alto community can be proud of the City’s capital improvement program (CIP). The CIP represents major investments into infrastructure functionality and sustainability, funded largely through the 2014 Council Infrastructure Plan as well as utility rates and various other sources totaling $751 million through 204 projects over the next five years. Over the past five years, the City has completed 55 individual community-serving projects totaling nearly $148 million of improvements. The CIP also represents a major effort for much of the City workforce. The following table summarizes the status of all projects for the six-month period of July - December 2019. Project Type Active Projects Construction Phase (excludes Recurring) Completed One-Time Recurring Buildings & Facilities 34 10 9 1 Parks & Open Space 12 9 - 1 Streets & Sidewalks 4 6 - - Traffic & Transportation 13 5 2 1 City of Palo Alto Page 2 Airport 2 - 1 - Electric Fund 28 10 7 - Fiber Optics Fund 1 2 - - Gas Fund 2 4 - - Storm Drain 3 1 - - Water Fund 7 7 2 - Wastewater Collection Fund 5 4 1 2 Wastewater Treatment Fund 6 1 - - Totals 117 59 22 5 Background This report provides Council with an update on the status of capital improvement program (CIP) projects. Prior to 2016, year-end and mid-year financial reports included very simplistic status updates on CIP projects. In contrast, this semiannual report provides more detailed and useful information for Council regarding general fund and enterprise fund projects that appear on Council agendas and will be visible throughout the community. Discussion Project Update Organization The City has a robust capital improvement program, and a large number of individual projects are in progress at any given time. In the five-year CIP FY 2020-2024, there are 204 projects (capital, enterprise and internal fund projects) totaling $751 million in funding. The attached CIP project tables are intended to provide Council a quick overview of each project, including budgetary information, the anticipated completion date, a brief description of the project scope, the current status of the project, and upcoming activities including Council actions. Also included in the report, is a list of all completed projects since the introduction of the Infrastructure Management System. The 2014 Council Infrastructure Plan is a major focus of staff’s capital improvement program efforts. The following table details the Total Project Budget and Total Actual Expenses through the first half of FY 2020 for the Infrastructure Plan projects. Major/Significant Projects Summary Significant milestones have been achieved on the Infrastructure Plan projects since June 2019. Basement and ground level concrete floors have been completed on the California Avenue Garage, the Highway 101 Pedestrian/Bicycle Bridge project awarded a construction contract in November, and phases 1 and 2 of the Charleston/Arastradero Corridor Project are complete. Current Infrastructure Plan project schedules can be found at http://www.infrastructure.cityofpaloalto.org/ City of Palo Alto Page 3 Council Infrastructure Plan Projects CIP Number Update Total Project Budget Total Actual Expenses* New Public Safety Building PE-15001 Design Development phase was completed and Construction Document preparation is underway. Plans submitted for building permit in December 2019. $115,526,721 $7,348,829 Bicycle and Pedestrian Transportation Implementation Plan PL-04010 Project on hold pending recent project evaluation and review of future project scoping. $20,800,000 $9,108,934 New Downtown Parking Garage PE-15007 Certified EIR and approved land use actions. Project on hold pending review of downtown parking supply options. $29,097,382 $1,438,546 New California Avenue Area Parking Garage PE-18000 Construction on schedule and underway with basement and ground level concrete floors poured. Project completion is expected in summer 2020. $51,351,746 $20,308,836 Charleston Arastradero Corridor Project PE-13011 Phases 1 & 2 improvement are nearly complete. Phase 3 to start construction in spring 2020. $19,600,075 $10,919,564 Fire Station 3 Replacement PE-15003 Construction is nearly complete with only site landscaping and final permit sign-off remaining. $10,080,296 $8,671,723 Highway 101 Pedestrian/Bicycle Overpass Project PE-11011 The notice to proceed was issued to the contractor in January, site preparation is underway and bridge construction will start in February $24,592,167 $5,281,292 Fire Station 4 Replacement PE-18004 Under Development. $10,200,000 $0 Byxbee Park Completion PE-18006 On hold pending completion of Baylands Comprehensive Conservation Plan. $3,814,601 $342,825 Downtown Parking Guidance System PL-15002 Under Development. $2,977,803 $130,937 *Expenses as of January 28, 2020 Key considerations for the information presented in the project update tables include:  Project status information is current as of December 2019  The individual project tables align with the Capital Improvement Fund categories in the FY 2020-2024 capital budget: Buildings and Facilities, Parks and Open Space, Streets and Sidewalks, and Traffic and Transportation. Enterprise Fund projects follow the order of their respective Fund in the capital budget  Additional project information is available in the FY 2020-2024 capital budget  Cubberley Property Infrastructure Fund projects are included in the Buildings and Facilities table City of Palo Alto Page 4  Each project table is divided into a section for one-time projects and a section for recurring projects that have ongoing annual funding  Budgetary figures include staff oversight costs for projects to which staff costs have been allocated Completed Projects Projects completed in the first half of FY 2020, since the last update through June 2019 include the following: Capital Improvement Fund (general fund)  Downtown Mobility and Safety Improvements (PL-16001)  Thermal Imaging Cameras Replacement (FD-20002)  Cubberley Track and Field Replacement (CB-19000) Enterprise Funds:  Wastewater Collection System Rehabilitation Augmentation Project 24 (WC-11000)  Wastewater Collection System Rehabilitation Augmentation Project 26 (WC-13001) These completed projects do not include the significant amount of annual work completed under ongoing recurring projects, such as streets and sidewalks repairs, parking lot maintenance, roofing replacements, and regular maintenance of Utilities assets. Cubberley Track and Field Replacement (CB-19000) City of Palo Alto Page 5 Projects Under Construction Projects that are currently under construction include the following: Capital Improvement Fund (general fund):  Animal Shelter Renovation (PE-19002)  Charleston/Arastradero Corridor Project (PE-13011)  Fire Station 1 Improvements (PF-14002)  Fire Station 3 Replacement (PE-15003)  Fire Ringdown System Replacement (FD-14002)  High and Bryant Street Garages Waterproofing and Repairs (PE-18002)  Highway 101 Pedestrian/Bicycle Overpass Project (PE-11011)  JMZ Renovation (AC-18001)  New California Avenue Area Parking Garage (PE-18000)  Municipal Service Center lighting, Mechanical, and Electrical Improvements (PF-16006)  Parking Lot J Elevator Modernization (PF-18000)  Ventura Buildings Improvements (PE-15011) Enterprise Funds:  Airport Apron Reconstruction (AP-16000)  Fiber Optic System Rebuild (FO-16000)  HCB Pilot Wire Relay Replacement (EL-17005)  Mayfield Reservoir Subgrade and Venting Repair (WS-19000)  Rebuild Electrical Underground District 24 (EL-10006)  Rebuild Electrical Underground District 19 (EL-11008)  Reconfigure Quarry Feeders (EL-14005)  Electrical Underground District 46 – Charleston, El Camino Real (EL-12001)  Electrical Underground District 47 – Middlefield, Homer, Webster, Addison (EL-11010)  Water Main Replacement – Project 27 (WS-13001)  Wastewater Collection System Rehabilitation / Augmentation Project 28 (WC-15001)  Wastewater Collection System Rehabilitation / Augmentation Project 29 (WC-16001)  Plant Master Plan (WQ-10001)  Utility Site Security Improvements (EL-04012) As described above for completed projects, the list of projects under construction does not include work currently being conducted under recurring CIP projects. Below are some photos of projects under construction: City of Palo Alto Page 6 Charleston/Arastradero Corridor Project (PE-13011) City of Palo Alto Page 7 New California Avenue Area Parking Garage (PE-18000) City of Palo Alto Page 8 Resource Impact Funding for the projects discussed in this report is provided in the FY2020 Capital Budget and 5- Year Plan. Stakeholder Engagement Stakeholder engagement is conducted separately for each project. Attachments: ATTACHMENT A: CIP Project Updates and List of Completed Projects Airport Apron Reconstruction (AP-16000) ATTACHMENT A  DECEMBER 2019  Semiannual Update on the Status of Capital Improvement Program Projects  Capital Improvement Fund CIP Projects   Buildings and Facilities Projects Parks and Open Space Projects Streets and Sidewalks Projects Traffic and Transportation Projects Enterprise Fund CIP Projects   Airport Projects Electric Projects Fiber Optics Projects Gas Projects Storm Drain Projects Water Projects Wastewater Collection Projects Wastewater Treatment Projects List of Completed Projects  Attachment A Buildings and Facilities Projects        Status as of December 2019    Buildings and Facilities Projects – Page 1 of 13    One‐Time Projects  Baylands  Boardwalk  Improvements  (PE‐14018)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project  Phase  Project Completion  $2,240,522  $22,200 Public Works Completed Winter 2019  Project Status: This project replaced the existing boardwalk with a new boardwalk on the same alignment. The  construction contract was awarded to Vortex Marine Construction, Inc. in June 2018 and construction was  completed in January 2019. During construction, an equipment access zone was constructed within the  wetlands by removing vegetation and placing temporary marsh mats. These temporary impacts within the  access zone need to be restored to comply with project permits. The wetland restoration will include grading,  soil import and filling, and planting native vegetation. This restoration project started in December 2019 and  was completed in January 2020.    Animal Shelter  Renovation   (PE‐19002)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project  Phase  Project Completion  $270,962 $3,929,979 Public Works Construction Fall 2020  Project Status: This project installs interim facility improvements to the Animal Shelter that accompany the  agreement for operation of the shelter by Pets in Need approved by City Council in November 2018.  The  medical area upgrades and the modular office building are currently in construction.  The new kennel addition is  currently in design.    Water, Gas,  Wastewater  Office Remodel  (PE‐19001)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project  Phase  Project Completion  $5,996 $754,437 Public Works Design Fall 2020  Project Status: This project incorporates minor renovations to the Utilities Water Gas Wastewater   (WGW) office space at the Municipal Service Center (MSC).  The current space no longer meets the operational  needs of the department.  This project will reconfigure the work‐area so it is more efficient for department  operations and replace aging furniture and finishes.  The new space will include a small reception area,  additional offices and cubicles for new staff.  Upgrades to lighting, fire life systems and enhancements to the  WGW corridors will also be included with this renovation.  The project is currently in design, and construction is  anticipated to start in summer 2020.   Attachment A Buildings and Facilities Projects        Status as of December 2019    Buildings and Facilities Projects – Page 2 of 13      Baylands Flood  Protection Levee  Improvements  (PE‐17006)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project  Phase  Project Completion  $266,666 $1,353,765 Public Works Pre‐design Fall 2020  Project Status: This project includes both the design and environmental review of improvements to the existing  network of flood protection levees in the Palo Alto Baylands between San Francisquito Creek and Mountain  View.  The project will be designed to provide 1% (100 year) protection from tidal flooding, including the  impacts of 50 years of future sea level rise.  This project may be implemented as an element of the San  Francisquito Creek Joint Power Authority (JPA) SAFER Bay Project, which is designing improvements to the  Bayfront levees between Mountain View and Redwood City. The project is on hold pending completion of the  SAFER Bay Feasibility Study.  The draft Feasibility Study was released in June 2019.  The report will be presented  to Council for review and for discussion of which of the proposed alternatives should be advanced into design  and regulatory permitting.     Cardiac Monitor  Replacement  (FD‐20000)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project  Phase  Project Completion  $0 $850,000 Fire Pre‐Design Summer 2021  Project Status: This project replaces the entire compliment of 20 cardiac monitors in the Department. Along  with other tools needed for patient assessment and airway verification, cardiac monitors assess cardiac activity  in patients and provide defibrillation and pacing.  The Department has encumbered the funds and it is currently  with the purchasing department to award the purchase order.     City Facilities  Assessment and  Record Plan  Management  System               (PE‐20002)        Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project  Phase  Project Completion  $0 $314,000 Public Works Design Fall 2020  Project Status: The Kitchell Report in 2008 summarized the last City‐wide facility condition assessment. A new  facility condition assessment is warranted per the City’s APWA reaccreditation requirements. It is also an ideal  opportunity to develop a new electronic system for managing the record plans of all City facilities. Currently,  older record plans are managed through a Microsoft Access Database. Some record plans are still only available  as hardcopy sheets. The project will include scanning older hardcopy sets and compiling all records into a new  Attachment A Buildings and Facilities Projects        Status as of December 2019    Buildings and Facilities Projects – Page 3 of 13    indexed system that will be easily accessible to all City staff.    City Hall Space  Planning  (PE‐19000)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project  Phase  Project Completion  $0 $81,932 Public Works Pre‐Design Fall 2024  Project Status: This project involves space planning to determine future workgroup space needs and  programming for the City Hall office building.  The project will include preliminary design of the space following  the initial feasibility phase.    Civic Center  Electrical  Upgrade & EV  Charger  Installation  (PE‐17010)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project  Phase  Project Completion  $87,860 $991,581 Public Works Design Spring 2021  Project Status: This project replaces the aging Civic Center electrical switchgear and motor control centers.  A  request for proposals for a design contract is currently underway to hire an engineering consultant.  Another  part of the project is to install 13 dual head level 2 chargers in City parking garages.  Design is currently in  process for the EV charger installations.      Civic Center Fire  Life Safety  Upgrades   (PE‐18016)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project  Phase  Project Completion  $16,624 $627,018  Public Works Design Summer 2020  Project Status: This project will assess, update and replace the Civic Center fire alarm system.  The fire life safety  system is approaching the end of its useful life.  The fire alarm panels and associated equipment need an  upgrade to meet current code requirements.  Procurement documents are currently being prepared for a  competitive solicitation.     Civic Center  Waterproofing   Study and Repairs  (PE‐15020)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project  Phase  Project Completion  $54,493 $742,555 Public Works Design Fall 2020  Project Status: This project includes a condition assessment of the Civic Center plaza deck structural system.  In  late 2016, RDH Building Science, Inc. was hired to investigate the problem.  The results indicated that the  Attachment A Buildings and Facilities Projects        Status as of December 2019    Buildings and Facilities Projects – Page 4 of 13    expansion joint on the plaza can be repaired.  The scope expanded to include replacing the waterproof coatings  on the inside of the plaza perimeter planter boxes. The design contract is being amended and construction is  estimated to begin in summer 2020.    Cubberley  Community  Center Master  Plan  (CB‐16001)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project  Phase  Project Completion  $505,301 $616,592 Community Services Design Summer 2020  Project Status: This project supports the development of a Master Plan for future use of the Cubberley  Community Center site by the City and Palo Alto Unified School District.  An RFP for master planning consultant  services was released in November 2017.  In the first half of fiscal year 2019, the consultant has facilitated two  community co‐design meetings, completed a needs assessment and program document, and developed four  concept layouts of a future site.   A draft Cubberley Concept Plan was completed in November 2019 and was  distributed to the community for input.  CEQA analysis of the concept plan began and is expected to be  completed in the first half of 2020.    Cubberley  Building  Management  Systems  (CB‐19001)    Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project  Phase  Project Completion  $0 $ 360,807 Public Works Design Winter 2020  Project   Status: This project replaces the Building Management System (BMS) controls for the Pavilion, Theater,  Wing I, and Gyms A and B boiler rooms at the Cubberley Community Center.  The project will include the  installation of control points for each building along with controllers, valve and damper actuators.   Design  specifications have been completed and  the procurement process is underway.       Fire and Utilities  Trench Training  Facility                   (FD‐19000)    Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project  Phase  Project Completion  $0 $110,000 Fire  Design Summer 2020  Project Status: The Fire and Utilities Departments will collaborate on building a State Certified Trench and  Confined Space Training Facility at the Municipal Services Center. The facility will be used by each department to  expand training and safety programs.  The architectural design has been completed and Utilities is working with  purchasing to release an RFP.     Attachment A Buildings and Facilities Projects        Status as of December 2019    Buildings and Facilities Projects – Page 5 of 13    Fire Ringdown  System  Replacement  (FD‐14002)    Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project  Phase  Project Completion  $244,144 $353,300 Fire  Construction Winter 2020  Project Status: This project will replace the current ring down system that provides an audible alert of calls for  service in the fire stations.  A vendor was selected through a cooperative purchasing agreement.  Installation has  been ongoing since 2018 and is waiting on the rebuild of Fire Station 3 to complete the project simultaneously.   Ringdown installation is scheduled to begin at Fire Station 3 in late December 2019.    Fire Station 1  Improvements  (PF‐14002)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project  Phase  Project Completion  $73,510 $187,067 Public Works Construction Summer 2020  Project Status: Construction is 85% complete with only painting, skylight replacement, and outdoor concrete  pad work remains.    Fire Station 3  Replacement  (PE‐15003)    Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project  Phase  Project Completion  $7,656,982 $10,080,296 Public Works Construction Winter 2020  Project Status: This project will replace the existing Fire Station at Embarcadero Road and Newell Road with a  new structure that meets essential services standards and current program needs.  The Temporary Fire Station #  3 at 2000 Geng Road has been completed.  Construction on the new Fire Station began in January 2018 and  continued into 2019 with some challenges earlier this year that impacted the projected schedule.  During fall  2019 the interior and exterior work was nearly completed.  Site landscaping and final permit sign‐off are the  main remaining items.  Construction is anticipated to be completed in January  2020.  Fire Station 4  Improvements  (P‐18004)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project  Phase  Project Completion  $0 $10,200,000 Public Works Pre‐design Spring 2022  Project Status: This project provides funding to replace Fire Station #4 at the corner of Middlefield Road and  East Meadow Drive. The replacement facility will be based on the prior Replacement Study and Needs  Assessment prepared in 2005.  This project has been on hold awaiting the completion of Fire Station #3.     High and Bryant Prior Years Total Project Implementing Project Project Completion  Attachment A Buildings and Facilities Projects        Status as of December 2019    Buildings and Facilities Projects – Page 6 of 13    Street Garages  Waterproofing  and Repairs   (PE‐18002)  Actuals Budget Department Phase  $31,728 $352,730 Public Works Construction Summer 2020  Project Status: This project includes a study for analysis and repairs to the water proofing system in the High  Street and Bryant Street parking garages.  Water proofing repairs have been completed in the High Street  parking garage.  Repairs are 75% complete in the Bryant Street garage as additional repairs are needed in the  subterranean stairwells and a few remaining areas of the subterranean levels of the garage.    Internal Alarm  System  Replacement  (PD‐14000)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project  Phase  Project Completion  $50,759 $77,569 Police Design Fall 2020  Project Status: This project will replace the citywide Internal Alarm System.  The City Hall alarms migrated to the  new system in FY 2019.  There are on‐going discussions about adding additional sites and a CAD interface in FY  2020.    JMZ Renovation  (AC‐18001)    Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project  Phase  Project Completion  $1,041,302 $4,587,156 Community Services Construction Summer 2020  Project Status: This project will fund the relocation of the Junior Museum and Zoo to the Cubberley auditorium  building for two years, utilizing $406,000 of the budget.  The renovation of the Cubberley auditorium was  completed in June 2018.  The Junior Museum and Zoo moved into the Auditorium in June 2018 and opened to  the public in July.  Additionally, the project paid permit fees and other costs ($306K in April 2019) for the new  JMZ rebuild project in accordance with the Council‐approved agreement between the Friends of the JMZ and  the City.  Construction of the new Junior Museum and Zoo commenced in June 2018 and is now 85%  complete.   Due to rainy weather in 2018‐19 and 2019‐20, the zoo is approximately two additional months  behind schedule, with construction now expected to be completed in April 2020.  Individual Exhibits are in a  staggered schedule of design and fabrication with some exhibits complete, others in fabrication, and others still  in design.   Exhibits are scheduled to begin installation in May 2020.  The public opening of the new JMZ is  scheduled for October 3, 2020.    Municipal Service  Center Lighting,  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project  Phase  Project Completion  Attachment A Buildings and Facilities Projects        Status as of December 2019    Buildings and Facilities Projects – Page 7 of 13    Mechanical, and  Electrical  Improvements  (PF‐16006)  $931,209 $7,218,775  Public Works Design Winter 2021  Project Status: This project replaces original mechanical, electrical, and lighting systems installed in 1966.  It also  includes design and construction for office renovations for the Zero Waste group.  Bids for the site‐wide  mechanical and electrical upgrades exceeded the available budget.  Additional funding was added for FY 2020.   A contract amendment with the design consultant is currently in negotiation to better prepare the facility for  electrification in the future.  The consultant will modify the design and it will be issued for bids again in FY 2020.    Municipal Service  Center A, B, & C  Roof  Replacement  (PF‐17000)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project  Phase  Project Completion  $0 $2,146,289  Public Works Design Winter 2021  This project installs a fluid, reinforced waterproofing application over the existing roof. The existing asphalt and  gravel roof is nearing the end of its useful life and needs to be rehabilitated. If the existing roof is allowed to  deteriorate beyond a certain point, the fluid applied system cannot be used and a full replacement of the  roofing system would be required. The application will meet current cool roofing codes to optimize energy  efficiency.  Project dates have been adjusted to coordinate with the Municipal Service Center Lighting,  Mechanical, and Electrical Improvements project (PF‐16006). Roof replacement will be done before the  installation of new rooftop equipment due to the condition of the roofs.    New California  Avenue Area  Parking Garage  (PE‐18000)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project  Phase  Project Completion  $6,532,693 $51,351,746 Public Works Construction Summer 2020  Project Status: This project will provide a new California Avenue Area Parking Garage, part of the 2014 Council  Infrastructure Plan and is being coordinated with the new Public Safety Building Project.  The Public Safety  Building will be placed on Lot C‐6 while the new garage will be placed on Lot C‐7.  Construction began in winter  2019 and has proceeded on schedule with a portion of the ground floor concrete placed in late December.  Project completion is expected in summer 2020.     New Public Safety  Building  (PE‐15001)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project  Phase  Project Completion  $4,407,021 $ 115,526,721 Public Works Design Spring 2023  Project Status: This project will provide a new, modern Public Safety Building (PSB) that will meet essential  Attachment A Buildings and Facilities Projects        Status as of December 2019    Buildings and Facilities Projects – Page 8 of 13    services standards and the current and future needs of the public safety departments.  The PSB and new garage  in the California Avenue business district are now an integrated project and both are part of the 2014 Council  Infrastructure Plan. The PSB plans were submitted for building permit review in late December 2019.  Project  bidding will take place in spring 2020 with construction beginning shortly after the new California Avenue garage  opens in late summer 2020.    New Downtown  Parking Garage  (PE‐15007)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project  Phase  Project Completion  $1,407,820 $29,097,382 Public Works Design Summer 2022  Project Status: This project will provide a new parking structure at existing parking garage in the University  Avenue commercial area at existing Parking Lot D at the corner of Hamilton Avenue and Waverley Street. The  project will evaluate the feasibility of including retail and stacked parking as part of the new structure. Design  and environmental consultant services will be needed, including the development of preliminary plans and cost  estimates, and completion of the project's environmental review. The project received ARB approval in July  2018. In February 2019, the City Council certified the EIR by adopting the Resolution and Mitigation Monitoring  and Reporting Program. The Record of Land Use Action was approved for three (3) years and the project is on  hold until after the City returns to the Policy and Services Committee for further discussion on the downtown  parking management strategy.     Parking Lot J  Elevator  Modernization  (PF‐18000)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project  Phase  Project Completion  $413,998 $781,324 Public Works Construction Spring 2020  Project Status: This project modernizes the existing elevators at parking Lot J.  The project involves upgrading  the interior of the elevators, elevator control interface, call buttons, and meeting current ADA standards.   Construction started in April 2019 and the project is approximately 95% complete.     Performing Arts  Venues Seat  Replacement (AC‐ 18000)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project  Phase  Project Completion  $0 $419,000  Community Services Design Summer 2020  Project Status: This project to replace the self‐rise mechanism in three venues for performing arts has been  revised to replace all the seats in the Community and Children’s Theatre. Staff is working to determine if there  are any ADA needs to be addressed with the like‐for‐like seat replacement, or if the RFP can move forward.    Attachment A Buildings and Facilities Projects        Status as of December 2019    Buildings and Facilities Projects – Page 9 of 13      Police Video  Recording  Systems  Replacement           (PD‐20000)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project  Phase  Project Completion  $0 $300,000 Police Design Winter 2021  Project Status: This project replaces the Palo Alto Police Department video recording systems used to record  events in the field with in‐car cameras as well as body‐worn cameras (BWC). The in‐car camera technology was  introduced in 2013.  In‐car systems are fixed in the vehicles and BWCs operate on rechargeable batteries for up  to 8 hours, secured to the officer’s uniform.  The in‐car video system is nearing the end of its service life and will  need to be replaced as they fail in FY 2021.  The BWCs are under warranty for the current fiscal year after a one‐ year pilot program was implemented in FY 2019.    Self‐Contained  Breathing  Apparatus (SCBA)  Air Compressor  Replacement     (FD‐20001)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project  Phase  Project Completion  $0 $ 86,000 Fire Pre‐Design Summer 2021  Project Status: This project replaces the central air compressor that provides air for Self‐Contained Breathing  Apparatus (SCBA) tanks to ensure firefighter safety when entering environments with hazardous air quality.  The  Department is researching potential vendors and collecting pricing.    Self‐Contained  Breathing  Apparatus  Replacement     (FD‐18000)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project  Phase  Project Completion  $730,139 $ 799,999 Fire Design Winter 2020  Project Status: This project replaces Self Contained Breathing Apparatus equipment (SCBA) used by firefighters  when entering hazardous conditions when responding to fire and hazardous materials incidents. The SCBA  provides breathable air for firefighters when entering environments where the atmosphere is immediately  dangerous to life or health.  The expected service life for SCBAs is 15 years. When this project was funded in FY  2018, 26 percent of the Palo Alto Fire Department (PAFD) SCBAs were past their useful life and 41 percent were  approaching the end of their useful life.  Final coupling units and Bluetooth connectivity components are being  researched and the department will begin the purchasing process in the second half of FY 2020.    Thermal Imaging  Cameras  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project  Phase  Project Completion  Attachment A Buildings and Facilities Projects        Status as of December 2019    Buildings and Facilities Projects – Page 10 of 13    Replacement     (FD‐20002)  $0 $ 99,000 Fire Completed Fall 2019  Project Status: This project replaced the Thermal Imaging Cameras (TICs) on all fire and response vehicles used  to help identify the location of victims; assess the source of fires, smoke, and heat; and create a plan of action.  Two thermal imaging cameras were approved for purchase as part of the Fiscal Year 2019 Mid‐Year Review and  the remaining nine will be replaced with this project.  All remaining cameras have been purchased and delivered  and will be put into use in FY 2020.    Ventura Buildings  Improvements  (PE‐15011)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project  Phase  Project Completion  $560,860 $2,525,420 Public Works Construction Fall 2020  Project Status: This project replaces and upgrades the mechanical and electrical systems and provides  accessibility improvements for the Ventura facility.  Advanced Design Consultants was awarded a contract in  August 2016 for design services.  Bids received for the project exceeded the budget and the project was on hold  until additional funding was available through the FY 2020 budget.  The project will resume in spring 2020 with a  new solicitation and anticipated construction contract will be awarded in the summer 2020.       Recurring Projects  Americans With  Disabilities Act  Compliance   (PF‐93009)  Prior Year Actuals Current Year Budget Implementing  Department  Project Phase Project Completion  $227,637 $822,220 Public Works N/A Recurring  Project Status: This project provides accessibility upgrades to City facilities and equipment.  It includes continued  funding for improvements such as path of travel, restrooms, drinking fountains, and counters.  Work in FY 2020  includes Council adoption of the update to the citywide ADA Transition Plan that began in November 2015.  On  December 17, 2018, Council approved an amendment to the consultant contract for public outreach to complete  the ADA Transition Plan update.  The public outreach process for the updated plan was completed in June 2019  and survey responses were compiled and taken into consideration to the ADA Transition Plan Schedule. A final  report was submitted to the City by our consultants for review and finalization in September 2019. The updated  Transition Plan is expected to go to Council for acceptance in February 2020.    Attachment A Buildings and Facilities Projects        Status as of December 2019    Buildings and Facilities Projects – Page 11 of 13    Roth Building  Maintenance  (PF‐07011)  Prior Year Actuals Current Year Budget Implementing  Department  Project Phase Project Completion  $1,420 $41,073  Public Works N/A Recurring  Project Status: This project is for window repairs, waterproofing of foundation walls, installation of electrical  service, and a new ventilation system at the Roth building. In addition, roofing repairs will be done on an as  needed basis until such time that the building is leased and occupied.    Building Systems  Improvements   (PF‐01003)  Prior Year Actuals Current Year Budget Implementing  Department  Project Phase  Construction  Project Completion  $26,223 $419,991 Public Works N/A Recurring  Project Status: This project provides electrical, mechanical, plumbing, structural, and security upgrades for City  facilities.  The installation of a new air‐cooled chiller for SA‐5 at City Hall was completed.  The LED lighting  upgrades for Rinconada and Mitchell Park tennis courts have been delayed until FY 2021 due to City staffing  constraints.  The new cooling tower fill media for City Hall is now planned for Winter 2020 since the work is to be  completed during the winter months.    City Bridge  Improvements  (PE‐20001)  Prior Year Actuals Current Year Budget Implementing  Department  Project Phase Project Completion  $0 $16,000 Public Works N/A Recurring  Project Status: This project includes bridge maintenance, repair, and an improvement program over the next 5  years. This program will include on‐going inspections to report physical changes to the structures,  recommendations for work to be done, and additional information to meet functional and structural standards in  accordance with industry standards.     City Facility  Parking Lot  Maintenance  (PE‐09003)  Prior Year Actuals Current Year Budget Implementing  Department  Project Phase Project Completion  $27,831 $1,024,611 Public Works N/A Recurring  Project Status: This project maintains parking lots and walkways at City facilities.  The parking lot resurfacing at  Fire Station #1, as part of the FY 2019 overlay project was completed in fall 2019    Attachment A Buildings and Facilities Projects        Status as of December 2019    Buildings and Facilities Projects – Page 12 of 13    Cubberley Roof  Replacements  (CB‐16002)  Prior Year Actuals Current Year Budget Implementing  Department  Project Phase Project Completion  $282,779 $577,200 Public Works N/A Recurring  Project Status: This project replaces existing roofs at Cubberley Community Center. Cubberley Wing K roof was  completed in 2019. Cubberley Wings F and FH roofs are scheduled to be completed in summer 2020.    Cubberley  Repairs  (CB‐17001)   Prior Years  Actuals  Current Year Budget Implementing  Department  Project Phase Project Completion  $84,889 $761,862 Public Works N/A Recurring   Project Status: This project is for general maintenance needs of the Cubberley campus. Several more concrete  repairs were completed to address trip and fall incidents.    Facility Interior  Finishes  Replacement  (PF‐02022)  Prior Year Actuals Current Year Budget Implementing  Department  Project Phase Project Completion  $75,238 $1,175,656 Public Works N/A Recurring  Project Status: This project improves the interior finishes of City facilities, including flooring, walls, cabinets,  paint, lighting, ceiling tiles, soundproofing, and fixed office furniture, doors, windows, and associated fire/life  safety, mechanical, electrical and plumbing code compliance requirements.  Design for the OMB furniture  reconfiguration is complete, and installation will be in February 2020. Conceptual design for the Revenue  Collections area is in process and includes new furniture, new casework, and painting of the interior office space.   Children’s Library carpet replacement scheduled to be completed in summer 2020.  Lucie Stern Community  Center interior remodel scheduled to be completed at the end of February 2020.    Roofing  Replacement   (PF‐00006)  Prior Year Actuals Current Year Budget Implementing  Department  Project Phase Project Completion  $770,934 $712,014 Public Works N/A Recurring  Project Status: This project replaces existing roofs at City facilities that have outlived their useful lifespans.  The  roof replacement for the Ventura Community Center has been completed.  Animal Shelter roof recoating  delayed due to roof modifications required for current remodel of facility.  Baylands Athletic Center Snack  Shack/Restroom roof and Mitchell Park Tiny Tot Restroom roof scheduled for replacement in summer 2020.  Attachment A Buildings and Facilities Projects        Status as of December 2019    Buildings and Facilities Projects – Page 13 of 13      University  Avenue Parking  Improvements  (PF‐14003)  Prior Year Actuals Current Year Budget Implementing  Department  Project Phase Project Completion  $48,116 $361,100 Public Works N/A Recurring  Project Status: This project maintains parking lots and parking structures within the University Avenue  Downtown Business Parking District.  After Parking Lot C was completed in spring 2019, all University Avenue  parking district lots have been resurfaced and no additional work is needed at this time.      Attachment A Parks and Open Space Projects         Status as of December 2019                Parks and Open Space Projects – Page 1 of 7    One‐Time Projects  Baylands  Comprehensive  Conservation Plan  (PG‐17000)  Prior Years Actuals Total Project Budget Implementing  Department  Project Phase Project  Completion  $322,220 $431,029 Community Services Design Summer 2020  Project Status: This project develops a conservation plan examining native vegetation, wildlife habitat, and public  access for trails, recreation amenities, and interpretive messaging.  Staff interviewed and selected a consultant,  AECOM, to create the plan. Staff and the consultant have created an existing conditions report, formed a stakeholder  and staff advisory group, held three stakeholder meetings, and one community meeting, created draft chapters of the  report, and have developed conceptual plans for Byxbee Park and for the former ITT property.  An environmental  impact study is in process and upon completion the Baylands Comprehensive Conservation Plan will be presented to  Council for formal adoption.    Baylands Athletic  Center 10.5 Acre  Expansion  (PG‐19001)  Prior Years Actuals Total Project Budget Implementing  Department  Project Phase Project  Completion  $10,402 $115,132  Community Services Pre‐Design Summer 2020  Project Status: This project includes conceptual plans and public outreach for future use of an additional 10.5 acre  expansion of the Baylands Athletic Center from land that was previously part of the golf course.   With completion of  the wetland delineation and in consultation with an Ad Hoc committee of the Parks and Recreation Commission, staff  is developing a scope to hire a consultant to conduct public outreach and prepare a conceptual design.    Byxbee Park  Completion  (PE‐18006)  Prior Years Actuals Total Project Budget Implementing  Department  Project Phase Project  Completion  $342,825 $3,814,601 Public Works Pre‐Design Winter 2022  Project Status: This project allows for the remaining improvements to Byxbee Park that follows the completion of the  landfill capping work.  The Baylands Comprehensive Conservation Plan (BCCP), which is currently undergoing CEQA  analysis, includes development of a conceptual plan for Byxbee Park.  The BCCP and the conceptual plan for Byxbee  will be completed in summer 2020 and will be used to go out to bid for design and construction.     Foothills Park,  Pearson  Prior Years Actuals Total Project Budget Implementing  Department  Project Phase Project  Completion  Attachment A Parks and Open Space Projects         Status as of December 2019                Parks and Open Space Projects – Page 2 of 7    Arastradero  Preserve and  Esther Clark Park  Conservation Plan  (PG‐17001)  $0 $486,096 Community Services Pre‐Design Winter 2023  Project Status: This project creates a comprehensive conservation plan for Foothills Park, Pearson Arastradero  Preserve, and Esther Clark Park. The plan will provide guidance on wildlife and habitat management, public access and  recreation, trails, and interpretive messaging. The plan will provide insight on best management practices for wildlife,  habitat, vegetation, and recreation management. The plan will also provide priorities, which will help guide resources  to the most important projects.    Boulware Park  Improvements  (PE‐17005)  Prior Years Actuals Total Project Budget Implementing  Department  Project Phase Project  Completion  $100,462 $550,805  Public Works Pre‐Design Fall 2022  Project Status: This park renovation project was initially planned in FY 2018 but was postponed due to project  priorities and potential purchase of the adjacent AT&T lot located at 3350 Birch Street. In fall 2019, the lot was  purchased by the City. In response to the purchase, the City is currently utilizing the funding for the initial renovation  project for the design and outreach for both the existing park and the newly purchased park land.  Additional funding  is being requested as part of the current CIP process to implement park renovations for the existing Boulware Park  and the new park land. A Community meeting to kick off the expanded park project was held in October 2019.  A Parks  and Recreation Commission meeting is planned for January 2020 with additional meetings to follow throughout 2020  to finalize the design. Construction is anticipated in Fiscal Year 2022.      Cameron Park  Improvements  (PG‐14002)  Prior Years Actuals Total Project Budget Implementing  Department  Project Phase Project  Completion  $0 $237,000 Community Services Pre‐Design Summer 2020  Project Status: This project upgrades and renovates safety and accessibility features at Cameron Park with a primary  focus on the park playground. Project is currently in design planning phase with staff. A community meeting is planned  for March 2020.     Cubberley Field  Restroom   (CB‐17002)  Prior Years Actuals Total Project Budget Implementing  Department  Project Phase Project  Completion  $104,278 $681,546  Public Works Design Fall 2020  Attachment A Parks and Open Space Projects         Status as of December 2019                Parks and Open Space Projects – Page 3 of 7    Project Status: This project will install a new restroom in the sports field area of the Cubberley Community Center.   Design for the project started in fall 2018 along with public outreach.   Anticipated installation is in fall 2020.  A  community meeting was held on November 15, 2018, and the Parks and Recreation Commission reviewed the project  in November 2018. The project is in design.     Cubberley Track  and Field  Replacement  (CB‐19000)  Prior Years Actuals Total Project Budget Implementing  Department  Project Phase Project  Completion  $23,862 $1,880,089 Public Works Completed Fall 2019  Project Status: This project replaced the synthetic turf field, installed an all‐weather track and a fitness area.  The  project was completed in fall 2019.     Foothills Park Dam  Seepage  Investigation and  Repairs               (PE‐20000)  Prior Years Actuals Total Project Budget Implementing  Department  Project Phase Project  Completion  $0 $36,000 Public Works Pre‐design Winter 2021  Project Status: This project will study a location of historic seepage from the Foothills Park Dam at the sharp bend in  the road on the face of the dam. The seepage is very minor, but it appears to be slowly worsening. The source of the  seepage is suspected to be the trench backfill around the pipe that returns shallow groundwater to Boronda Lake. This  project will locate and investigate the pipe and trench backfill material.    Ramos Park  Improvements   (PG‐14000)  Prior Years Actuals Total Project Budget Implementing  Department  Project Phase Project  Completion  $0 $271,000 Community Services Design Summer 2021  Project Status: This project includes safety and accessibility improvements at Ramos Park.  The work includes  replacing the existing park playground, benches, and drinking fountain, as well as resurfacing the basketball court  playing surface.  Community outreach is planned for winter 2020 with construction planned for fall 2020.    Rinconada Park  Improvements  (PE‐08001)  Prior Years Actuals Total Project Budget Implementing  Department  Project Phase Project  Completion  $2,280,051 $4,680,681  Community Services Design Summer 2020  Project Status: This project provides upgrades to safety, site amenities, playground facilities, a new restroom,  Attachment A Parks and Open Space Projects         Status as of December 2019                Parks and Open Space Projects – Page 4 of 7    irrigation, drainage and accessibility improvements at Rinconada Park. These improvements were identified in the  Rinconada Long Range Plan (LRP). The project schedule is currently being coordinated with the construction of the  new Junior Museum and Zoo Project. The Parks and Recreation Commission recommended a Park Improvement  Ordinance (PIO) for Council adoption in January 2020. Design and public outreach for the project has been performed  by in house staff. The project is anticipated to go out to bid in February 2020. According to the LRP, future  improvement phases would include renovation to the eastern side of the park, arbor and pool areas, and  development around the electrical substation.    Turf Management  Plan   (PG‐18002)  Prior Years Actuals Total Project Budget Implementing  Department  Project Phase Project  Completion  $0 $118,000  Community Services Pre‐Design Fall 2020  Project Status: This project evaluates select natural turf athletic fields maintained and brokered by the City for  organized sports, and provides recommendations for improving the quality and durability of the fields.  Staff is  working with stakeholders to draft the scope of work and will seek bids for a qualified consultant to draft the plan.   Staff has developed a scope and will be going out to bid in spring. The plan is anticipated to be complete by fall 2020.        Recurring Projects  Art In Public  Spaces        (AC‐86017)  Prior Year Actuals Current Year Budget Implementing  Department  Project Phase Project  Completion  $208,945 $1,349,443 Community Services N/A Recurring  Project Status: This project provides the ongoing temporary and permanent artworks throughout the City.   These funds are primarily comprised of pooled Municipal Percent for Art allocations as well as funds rolled over  from previous years due to the multi‐year nature of public art projects.    The 2016 Public Art Master Plan  provides a ten‐year plan for the future prioritization of public art projects in Palo Alto. FY 2020 funded  temporary public artwork at King Plaza, Cubberley, the area surrounding California Avenue Garage construction  site, and for the upcoming Code: Art2 Festival. Additional funds were also used to hire a consultant to create a  California Avenue Public Art Plan.   Some of the current Municipal Projects in process for FY 2021 include  artworks for the Charleston/Arastradero Corridor, the Highway 101 Bike and Pedestrian Bridge, the Public  Attachment A Parks and Open Space Projects         Status as of December 2019                Parks and Open Space Projects – Page 5 of 7    Safety Building, and public programming for Code: ART2.    Benches, Signage,  Walkways,  Perimeter  Landscaping   (PG‐06003)  Prior Year Actuals Current Year Budget Implementing  Department  Project Phase Project  Completion  $420,374 $207,000 Community Services N/A Recurring  Project Status: This project restores and replaces existing benches, signage, fencing, walkways, and  landscaping at various City facilities. In spring 2019, there were repairs to the pavers at the Stanford Palo Alto  Playing Fields, various digital park directory maps were created for online applications, wood fiber surfacing  was installed at the Peers Dog Park, and maintenance gates were installed at various City Park and Open Space  locations.   In fall 2019 site furnishings at Lytton Plaza were replaced.  The fence at Hoover dog park was  improved by increasing the height from three feet to five feet.     Dog Park  Installation and  Renovation   (PG‐18001)  Prior Year Actuals Current Year Budget Implementing  Department  Project Phase Project  Completion  $15,746 $177,000 Community Services N/A Recurring   Project Status: This project enables building of dog parks at various City parks and facilities that currently do  not have dog parks, as well as renovating existing dog parks. The next dog park installation or renovation has  not been determined and several locations are under consideration.  Staff is meeting with the Parks and  Recreation Commission to discuss location options and expansion of existing dog parks.    Off‐Road Pathway  Resurfacing and  Repair   (OS‐09001)  Prior Year Actuals Current Year Budget Implementing  Department  Project Phase Project  Completion  $0 $455,000 Community Services N/A Recurring  Project Status: This project resurfaces failing and broken pathways within the City. Pathways are chosen based  on inspections and resident requests.  The Adobe Creek Reach Trail will be built with the Highway 101  Pedestrian and Bicycle Overcrossing Project beginning in winter 2020.     Open Space Lakes  And Pond  Maintenance   Prior Year Actuals Current Year Budget Implementing  Department  Project Phase Project  Completion  $14,406 $102,800 Community Services N/A Recurring  Attachment A Parks and Open Space Projects         Status as of December 2019                Parks and Open Space Projects – Page 6 of 7    (OS‐00002) Project Status: This project rehabilitates lakes and ponds in open space nature preserves to protect wildlife  habitat and recreational safety and to meet State Division of Safety of Dams requirements. The second year of  a three‐year contract to clear aquatic weeds at Boronda Lake is in progress and scheduled to be completed by  September 2020.    Open Space Trails  and Amenities   (OS‐00001)  Prior Year Actuals Current Year Budget Implementing  Department  Project Phase Project  Completion  $286,674 $207,000 Community Services N/A Recurring  Project Status: This project restores unpaved trails, fences, picnic areas, and campgrounds at Foothills Park,  the Baylands, and the Pearson‐Arastradero Nature Preserves.  A contract for trail maintenance was awarded in  May 2018, and the contractor has started the annual trail work.  In fall 2019 the annual trail maintenance at  Pearson Arastradero Preserve and Foothills Park included 50 miles of trails. At the south end of Foothills Park  Service Yard a large fallen tree was removed from the creek.      Park Restroom  Installation  (PG‐19000)  Prior Years Actuals Current Year Budget Implementing  Department  Project Phase Project  Completion  $0 $414,000 Community Services N/A Recurring  Project Status: This project installs new restrooms at City parks that currently do not have restroom facilities.   The restrooms may be prefabricated, and each installation will require a Park Improvement Ordinance.  Staff is  planning a community meeting in January 2020 to discuss adding a restroom at Ramos Park.     Parks and Open  Space Emergency  Repairs   (PG‐09002)  Prior Year Actuals Current Year Budget Implementing  Department  Project Phase Project  Completion  $177,434 $142,000 Community Services N/A Recurring  Project Status: This project replaces or repairs play grounds, play yard surfaces, wooden structures, park  amenities, and play equipment in the event of storms, fire, vandalism or structural failure.  In fall 2019 surface  repairs were made to Peers Park tennis courts to prevent potential tripping hazards, the deteriorated wooden  playground border at Bol Park was replaced and a damaged wooden pedestrian bridge at Briones Park was  repaired.    Attachment A Parks and Open Space Projects         Status as of December 2019                Parks and Open Space Projects – Page 7 of 7    Athletic Courts  Resurfacing   (PG‐06001)  Prior Year Actuals Current Year Budget Implementing  Department  Project Phase Project  Completion  $55,378 $266,200 Community Services N/A Recurring  Project Status: This project repairs and resurfaces tennis and basketball courts in various Palo Alto parks..  In  fall 2019 the tennis court improvements and pickleball additions at Mitchell Park was completed and the tennis  court renovations at Rinconada Park were completed.      Attachment A Streets and Sidewalks Projects         Status as of December 2019    Streets and Sidewalks Projects – Page 1 of 3    One‐Time Projects  California Avenue  District Gateway  Signs   (PE‐17004)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project Phase Project Completion  $7,604 $177,001 Public Works Design Winter 2020  Project Status: This project includes the design and replacement of two existing gateway signs in the right‐of‐ way for the California Avenue business district.  An application to the Architectural Review Board will be made in  spring 2020.  The signs are expected to be replaced in winter 2020.    El Camino  Median  Landscape  Improvements      (PE‐13017)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project Phase Project Completion  $12,330 $1,058,329 Public Works Design Fall 2022  Project Status: This project for median improvements on El Camino Real will include water conservation  measures such as new drip irrigation systems and new drought tolerant trees, shrubs, and groundcover. Median  designs will be consistent with the goals and objectives of the El Camino Real Master Planning Study. The project  will be implemented in coordination with guidance from the Grand Boulevard plan.     Newell Road/ San  Francisquito  Creek Bridge   Replacement  (PE‐12011)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project Phase Project Completion  $1,367,302 $4,831,259 Public Works Pre‐Design Spring 2022  Project Status: This project removes and replaces the Newell Road bridge over San Francisquito Creek with a  clear span to allow the channel to convey up to the natural capacity of the San Francisquito Creek,  approximately 7,500 cfs, and will provide improved safety for vehicular, bicycle, and pedestrian traffic.  The  project draft Environmental Impact Report (EIR) was released in spring 2019.  This report analyzes potential  traffic, aesthetic, and other environmental impacts and proposes appropriate mitigation measures.  The project  is being closely coordinated with the City of East Palo Alto, Santa Clara Valley Water District, and the San  Francisquito Creek Joint Powers Authority (JPA). The EIR is anticipated to be certified by Council in spring 2020.   The design of the preferred alternative will be submitted to regulatory agencies for permits. Project construction  is estimated to start as early as summer 2021.    Streetlights Prior Years Total Project Implementing Project Phase Project Completion  Attachment A Streets and Sidewalks Projects         Status as of December 2019    Streets and Sidewalks Projects – Page 2 of 3    Condition  Assessment  (PE‐13014)  Actuals Budget Department  $8,799 $241,481 Public Works Design Summer 2021  Project Status: This project assesses the condition and maintenance needs of the City’s streetlight system.  Due  to other project priorities and workloads this project has been put on hold until FY 2020.  An RFP will be issued  in summer 2020.        Recurring Projects  Curb and Gutter   Repairs  (PO‐12001)  Prior Year Actuals Current Year  Budget  Implementing  Department  Project Phase Project Completion  $450,166 $569,223 Public Works N/A Recurring  Project Status: This project repairs curbs and gutters uplifted by tree roots.  For FY 2020, the curb and gutter  locations are selected from a list reported by the public and evaluated by Public Works staff. This project is  combined with the current year’s Sidewalk Repair Project (PO‐89003). As of December 2019, there were 1,300  linear feet of curbs replaced and 3,000 square feet of gutter  repaired at various locations throughout the City.    Sidewalk Repairs  (PO‐89003)  Prior Year Actuals Current Year  Budget  Implementing  Department  Project Phase Project Completion  $1,658,872 $1,455,975 Public Works N/A Recurring  Project Status: This project repairs and replaces broken and uplifted sidewalks.  The program completed all  twenty‐three sidewalk districts in 2017, a thirty‐year (1986 – 2017) sidewalk repair district cycle. Council  approved a sidewalk assessment contract in November 2017 to evaluate the sidewalk program and assess  potential improvements to the current district‐based program.  Staff used this assessment to compile a list of  areas that require prompt action at varying locations throughout Palo Alto. These priority locations were  repaired in FY 2020. The project has repaired 18,000 square feet of sidewalk, 3,300 square feet of driveway, and  brought 19 curb ramps up to ADA compliance as of December 2019.     Sign Reflectivity   Upgrade  (PO‐11000)  Prior Year Actuals Current Year  Budget  Implementing  Department  Project Phase Project Completion  $10,207 $246,663 Public Works N/A Recurring  Attachment A Streets and Sidewalks Projects         Status as of December 2019    Streets and Sidewalks Projects – Page 3 of 3    Project Status: This project includes the annual inventorying, upgrading and maintaining of all traffic signs.  A list  of signs not meeting the minimum requirement is derived from MUTCD approved Nighttime Visual Inspection  surveys. In the first half of FY 2020, 460 signs were identified for reflectivity replacements.    Street Lights   Improvements  (PO‐05054)  Prior Year Actuals Current Year  Budget  Implementing  Department  Project Phase Project Completion  $100,374 $374,352 Public Works N/A Recurring  Project Status: This project replaces street light poles, pole foundations, luminaires and wiring as needed to  restore or improve street lighting.     Street  Maintenance  (PE‐86070)  Prior Year Actuals Current Year  Budget  Implementing  Department  Project Phase Project Completion  $5,353,373 $9,413,643 Public Works N/A Recurring  Project Status: This project includes the annual resurfacing, micro‐seal, crack seal and reconstruction of various  city streets.  This project funds the street maintenance work that supports Council’s adopted goal of achieving a  citywide average pavement condition index (PCI) score of 85, representing very good or excellent conditions, by  2019.  The citywide PCI goal of 85 was met at the end of calendar year 2018, and the emphasis will now shift to  maintaining the 85 score while addressing the remaining streets with PCI scores less than 60.  The Street  Resurfacing Project performed over 1.6 lane miles of resurfacing, including Everette Avenue from Alma to  Middlefield and Hawthorne Avenue from Emerson to Tasso. The Preventive Maintenance Project has slurry  sealed 22 lane miles of streets.     Thermoplastic  Lane Marking  and Striping  (PO‐11001)  Prior Year Actuals Current Year  Budget  Implementing  Department  Project Phase Project Completion  $13,006 $231,455 Public Works N/A Recurring  Project Status: This project maintains the thermoplastic markings on roadways.  Thermoplastic lane marking  and striping is incorporated into annual Pavement Preventive Maintenance Projects. In FY 2020 the project has  restriped 27,270 linear feet of thermoplastic striping ranging from lane striping, crosswalk striping, and bike lane  striping, and refreshed 381 thermoplastic paving legends as of December 2019.     Attachment A Traffic and Transportation Projects        Status as of December 2019    Traffic and Transportation Projects – Page 1 of 8     One‐Time Projects  Charleston  Arastradero  Corridor Project  (PE‐13011)  Prior Years  Actuals  Total Project  Budget  Implementing Department Project Phase Project Completion  $7,254,489 $19,600,075 Public Works Construction Fall 2020  Project Status: This project is part of the Council Infrastructure Plan. It will reconfigure the Charleston  Arastradero Corridor to provide new landscaped median islands, bulb outs, enhanced bike lanes and new  street trees to complement the new lane configurations that were approved for permanent retention in 2008  and 2012. City Council approved the conceptual plan line for the corridor in September 2015. This project will  be constructed in three phases.  Remaining work for Phase 1 includes widening the Los Altos‐Palo Alto Bike  Path and remaining streetlight work. The contractor is completing punchlist work on Phase 2. The redesign of  Phase 3 is wrapping up and expected to go out to bid in February 2020 and start construction in spring 2020.   Churchill Avenue  Alma Street  Railroad Crossing  Safety  Improvements  (PL‐20000)  Prior Years  Actuals  Total Project  Budget  Implementing Department Project Phase Project Completion  $0 $4,814,000 Office of Transportation Design Summer 2021  Project Status: This project will design and construct  pedestrian and bicycle safety improvements on the east  side of the Churchill Avenue and Alma Street railroad crossing intersection. Design includes, but is not limited  to, traffic signal modifications, street lighting improvements, roadway resurfacing, sidewalk realignment and/or  widening, drainage improvements, utility relocations, signage and striping, innovative bicycle treatments,  traffic calming elements, and way‐finding improvements.  Churchill Avenue  Enhanced Bikeway  (PL‐14000)  Prior Years  Actuals  Total Project  Budget  Implementing Department Project Phase Project Completion  $247,905 $3,429,459 Office of Transportation Design Summer 2021  Attachment A Traffic and Transportation Projects        Status as of December 2019    Traffic and Transportation Projects – Page 2 of 8     Project Status: This project includes the planning, design and construction of a shared‐use path along the north  side of Churchill Avenue between the existing shared‐use path at Castilleja Avenue and the Stanford Perimeter  Trail. It also includes intersection improvements at Churchill Avenue and El Camino Real, to include a new  dedicated westbound right‐turn lane. Design plans for the project are at 65% completion.  Staff is aiming to  finalize the design plans by July 2020 and begin construction soon after. An encroachment permit from  Caltrans will need to be secured for the work within the El Camino Real right‐of‐way.    Downtown Parking  Wayfinding  (PL‐15004)  Prior Years  Actuals  Total Project  Budget  Implementing Department Project Phase Project Completion  $445,082 $1,163,180 Office of Transportation Design Fall 2021  Project Status: This project included design and installation of new downtown parking wayfinding signage that  will incorporate a new parking brand for the City and replace the existing parking signage to improve visibility  of parking in Downtown Palo Alto. This project will be implemented in coordination with the Upgrade  Downtown underground utilities replacement project. The construction contract was awarded in January 2018.  Signs were fabricated and delivered late fall 2018. Due to operational constraints and insufficient funding for  electrification, the project has been suspended indefinitely.   Highway 101  Pedestrian/Bicycle  Overpass Project  (PE‐11011)  Prior Years  Actuals  Total Project  Budget  Implementing Department Project Phase Project Completion  $5,096,952 $24,592,167 Public Works Construction Summer 2021  Attachment A Traffic and Transportation Projects        Status as of December 2019    Traffic and Transportation Projects – Page 3 of 8     Project Status: This project, part of the Council Infrastructure Plan, includes the design and construction of a  new pedestrian bridge across Highway 101 at Adobe Creek. Council approved a design contract in May 2016  for preliminary design and environmental assessment services. The contract was amended in December 2017  and June 2019 to provide the final design and bidding/construction support services, respectively. Upon  approval of the project design, right‐of‐way certification, and encroachment permit, Caltrans granted federal  funds authorization (E‐76) in August 2019. The project was issued for bids in August 2019 and Council  approved a contract with Granite Construction on November 18, 2019. Construction is anticipated to begin in  January 2020 and end in summer 2021.  Downtown  Mobility and  Safety  Improvements  (PL‐16001)  Prior Years  Actuals  Total Project  Budget  Implementing Department Project Phase Project Completion  $1,924,945 $1,845,547 Office of Transportation Completed Fall 2019  Project Status: Phase 1, which included the replacement of all existing pedestrian signal heads with  countdown pedestrian signal heads was completed in early 2017. Phase 2, included the construction of curb  extensions and the installation of new pedestrian signal heads and traffic signal modifications was completed  in 2019 as part of the Upgrade Downtown underground utilities replacement project.  Parking  Management and  System  Implementation   (PL‐16002)  Prior Years  Actuals  Total Project  Budget  Implementing Department Project Phase Project Completion  $248 $ 1,287,123 Office of Transportation Design Spring 2022  Project Status: This project includes implementation and installation of equipment to implement the  outcomes of the paid parking study for downtown, including the Comprehensive Parking Permit and Citation  System. Professional Account Management (Duncan) was selected as the City’s service provider for the  comprehensive permit and citation management system. System design started in fall 2019. Base system is on  schedule to launch in select districts in fall 2020.       El Camino Real  Pedestrian Safety  Prior Years  Actuals  Total Project  Budget  Implementing Department Project Phase Project Completion  Attachment A Traffic and Transportation Projects        Status as of December 2019    Traffic and Transportation Projects – Page 4 of 8     and Streetscape  Project  (PL‐18000)  $113,422 $6,481,553 Office of Transportation Pre‐Design Summer 2021  Project Status: The El Camino Real Pedestrian Safety and Streetscape Project will install complete streets  improvements focused on pedestrian safety at controlled and uncontrolled crosswalks, enhanced bus  operations at two existing major transit stops, and new urban design amenities between Stanford Avenue and  Sheridan Avenue.  The project includes: Curb extensions; median refuges; median shade trees; pedestrian  scale lighting and potential bus enhancement.    Embarcadero  Road at El  Camino   Improvements  (PL‐15001)  Prior Years  Actuals  Total Project  Budget  Implementing Department Project Phase Project Completion  $871,548 $7,470,939 Office of Transportation Design Spring 2023  Project Status: This project includes the planning, design and construction of bicycle, pedestrian and traffic  circulation improvements along Embarcadero Road between Bryant Street and El Camino Real. The concept  approved by Council includes Class IV raised separated bike‐ways between the Caltrain Path, Bryant Street  Bicycle Boulevard and Stanford Perimeter Trail, a protected intersection for bicyclists and pedestrians at El  Camino Real, intersection realignments at High Street, Emerson Street and Kingsley Avenue, new landscaping,  transit amenities, and pedestrian safety enhancements.    Quarry Road  Improvements  and   Transit Center  Access   (PL‐16000)  Prior Years  Actuals  Total Project  Budget  Implementing Department Project Phase Project Completion  $0 $7,470,939 Office of Transportation Design Fall 2022  Project Status: This project includes the planning, design and construction of bicycle and pedestrian  improvements along Quarry Road between El Camino Real and Welch Road, including, but not limited to,  upgraded bicycle lanes and crosswalks, innovative intersection treatments for bicyclists, and improved access  to transit stops. Planning, design, and construction of a new bicycle, pedestrian, and transitway between the  Palo Alto Transit Center bus depot and the intersection of Quarry Road and El Camino Real has been  completed.   Implementation is timed to support expanded operations of the hospital and the completion of  Caltrain electrification in 2022.  Attachment A Traffic and Transportation Projects        Status as of December 2019    Traffic and Transportation Projects – Page 5 of 8     Emergency  Vehicle Traffic  Signal  Preemption  System Pilot  (PL‐19000)  Prior Years  Actuals  Total Project  Budget  Implementing Department Project Phase Project Completion  $0 $597,500 Palo Alto Fire Department Design Fall 2020  Project Status: This project will purchase and implement an emergency vehicle preemption system pilot  project. The system will integrate with the City’s current traffic signal management system and with the City’s  computer‐ aided emergency response dispatch system to provide safer and quicker response times for  emergency vehicles. Staff has procured a cost estimate from one vendor and is finalizing a contract for sole  source services. Project start date is anticipated for spring 2020.  Railroad Grade  Separation and  Safety  Improvements  (PL‐17001)  Prior Years  Actuals  Total Project  Budget  Implementing Department Project Phase Project Completion  $2,101,075 $12,401,738 Office of Transportation Design Summer 2024  Project Status: This project is a community‐based process to advance the railroad grade crossing circulation  study and context sensitive solutions study envisioned by the City Council. It will also fund the preparation of  Project Study Report and environmental analysis that will be required for the City to realize its goals of  advancing grade separations. This capital project provides funds for a contract with AECOM to do engineering  support for the rail grade separation studies. Funding for safety improvements at the railroad crossing at Alma  Street and Churchill Avenue has been moved into a separate project, Churchill Avenue/Alma Street Railroad  Crossing Safety Improvement Project (PL‐20001).    Downtown  Automated Parking   Guidance Systems,  Access Controls &   Revenue Collection  Equipment  Prior Years  Actuals  Total Project  Budget  Implementing Department Project Phase Project Completion  $130,028 $2,977,803 Office of Transportation Design Spring 2021  Attachment A Traffic and Transportation Projects        Status as of December 2019    Traffic and Transportation Projects – Page 6 of 8     (PL‐15002) Project Status: This project includes design and installation of new downtown parking guidance systems,  access controls and revenue collection equipment that will be coordinated with both the Downtown Parking  Wayfinding, PL‐15004 project and the Downtown Parking Management Study that is scheduled to be  completed at the end of 2016. Following City Council direction in April 2016, Staff has advanced the design of  the single space detection system with individual indicator lights. Staff contracted with Dixon Resources for  additional management support in design and procurement for the system installation in the Downtown  garages on University Avenue.     Recurring Projects  Bicycle and  Pedestrian  Transportation  Plan  Implementation  (PL‐04010)  Prior Year Actuals Current Year  Budget  Implementing Department Project Phase Project Completion  $2,367,931 $2,321,200 Office of Transportation N/A Recurring  Project Status: The Neighborhood Traffic Safety and Bicycle Boulevards Phase 1 Project along Amarillo  Avenue/Moreno Avenue, and Ross Road were completed in November 2018. The remaining segments of Bryant  Street and Louis Road/Montrose Avenue are on hold until further Council review in 2019. Conceptual plans for  the Neighborhood Traffic Safety and Bicycle Boulevards Phase 2 Project along Bryant Street, Maybell Avenue,  Stanford Avenue, and Park Boulevard/Wilkie Way were adopted by City Council in 2015. Phase 2 is on hold at  75% design until further Council review in early 2020.  Safe Routes To  School  (PL‐00026)  Prior Year Actuals Current Year  Budget  Implementing Department Project Phase Project Completion  $89,373 $222,300 Office of Transportation N/A Recurring  Attachment A Traffic and Transportation Projects        Status as of December 2019    Traffic and Transportation Projects – Page 7 of 8     Project Status: This project enables the City’s Safe Routes to School program, including school commute  planning, encouragement activities, and capital improvements along local and collector streets that may be  impacted by school commute activities. The capital improvements include traffic calming devices, enhanced  crosswalks, and improved signage along suggested safe routes to school. In FY 2020, traffic calming projects will  continue and traffic studies will be pursued for locations in need of traffic calming and other safety  countermeasures.  In FY 2020 and 2021, enhanced signage, striping and buffers on East Meadow Drive from  Alma to Fabian Way, on Fabian Way from East Meadow Drive to East Charleston Road, and the widening and  repaving of the Waverley Bike Path between East Meadow Drive and Charleston Road.    Parking District  Implentation  (PL‐15003)  Prior Year Actuals Current Year  Budget  Implementing Department Project Phase Project Completion  $32,760 $272,100 Office of Transportation N/A Recurring  Project Status: This project implemented the signage needs of the residential preferential parking program. Phase 1 of the Downtown Residential Preferential Parking Program was implemented in October 2015, Phase 2 was implemented in April 2016, and the program was made permanent in April 2017. The Evergreen Park‐ Mayfield RPP program was made permanent in April 2018.  The Southgate RPP program was made permanent in  October 2019. The Old Palo Alto pilot was approved by Council and began in November 2019.  Traffic Signal and  Intelligent  Transportation  Systems  (PL‐05030)  Prior Year Actuals Current Year  Budget  Implementing Department Project Phase Project Completion  $368,200 $2,461,200 Office of Transportation N/A Recurring  Attachment A Traffic and Transportation Projects        Status as of December 2019    Traffic and Transportation Projects – Page 8 of 8     Project Status: This project will include design and construction of traffic signals, traffic signal communications  networks, detection and data projects for transportation use, and maintenance of the City’s traffic signal Central  management system. The project includes the replacement of traffic signal controllers/cabinets, video detection  systems, and other related field equipment.  The new controllers enable additional traffic signal timing strategies  and improve the reliability of the City's traffic signals.  Transportation  and Parking  Improvements  (PL‐12000)  Prior Year Actuals Current Year  Budget  Implementing Department Project Phase Project Completion  $290,303 $337,000 Office of Transportation N/A Recurring  Project Status: This project implements miscellaneous neighborhood traffic calming improvements including neighborhood traffic studies and parking improvements. This project also funds the development of grant proposals used to procure funding for future projects. Projects which are currently in progress include the  Middlefield North Traffic Safety Project, Crescent Park neighborhood safety improvement pilot, and Charleston/San Antonio Traffic Signal Safety and Operations Improvement Project.                                      Attachment A Airport Projects  Status as of December 2019       Airport Projects – Page 1 of 1    One‐Time Projects  Airport Apron  Reconstruction  (AP‐16000)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project Phase Project Completion  $13,499,947  $41,987,059  Public Works Construction Summer 2022  Project Status: This project includes the design and reconstruction of the Palo Alto Airport apron and is being  implemented in multiple phases.  The pavement surfaces at the airport are failing and uneven.  The need to  reconstruct the aircraft parking apron is critical to airport safety.  Construction Phase I was completed in  November 2017.  Construction Phase II will be completed in Winter 2020.  Construction on Phase III is scheduled  to begin in FY 2021.     Airport Facilities  Electrical  Improvements  (AP‐20000)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project Phase Project Completion  $0  $206,000 Public Works Design Fall 2020  Project Status: This project upgrades the outdated electrical panels for the Palo Alto Airport office rental spaces.  The project design phase is nearing completion and the solicitation process is tentatively scheduled for May  2020.        Recurring Projects    2019‐2023 – Airport Capital Improvements Program Projects: There are no recurring projects scheduled at this time.     Attachment A Electric Fund Projects Status as of December 2019    Electric Fund Projects – Page 1 of 11    One‐Time Projects  230 kV Electric  Intertie   (EL‐06001)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project Phase Project Completion  $578,055 $440,045 Utilities Pre‐Design Summer 2020  Project Status: This project is used to perform a technical feasibility study to determine the general project  requirements to establish a 230 kV electric intertie line and construct a 230/60 kV substation to connect the  City's electric system directly to the 230kV transmission line. The City has presented its findings to Stanford  University and SLAC National Accelerator Laboratory (under the oversight of the Department of Energy), the two  other parties involved with facilitating this work. The City is waiting for a response from SLAC and Stanford  University to determine whether this project will move forward.     Capacitor Bank  Installation   (EL‐16002)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project Phase Project Completion  $180,434 $186,300 Utilities Design Fall 2020  Project Status: This project installs capacitor banks at electric substations and on distribution lines to ensure  Northern California Power Association Power Factor requirements are met. Staff has performed an analysis on  where capacitors are needed to provide VAR support to the system. Capacitor banks will be installed at  Hanover, Hansen Way, Quarry Road and Park Boulevard Substations. Capacitor banks have been ordered, and  the first installation has been completed at Hansen Way substation. The remaining installations will happen in  phases and are expected to be completed by fall 2020.    Coleridge  Cowper  Tennyson   4/12kV  Conversion   (EL‐14000)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project Phase Project Completion  $29,827 $980,000 Utilities Design Summer 2021  Project Status: This project converts the primary electric distribution system in the Coleridge/Cowper/Tennyson  area from 4 kV to 12 kV. This project is a precursor to work being planned for Colorado/Hopkins Substations.  Design is at 75% completion as of December 2019.    Colorado Power  Station  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project Phase Project Completion  Attachment A Electric Fund Projects Status as of December 2019    Electric Fund Projects – Page 2 of 11    Equipment  Upgrades  (EL‐19001)  $922,316  $2,762,500 Utilities Design Fall 2021  Project Status: This project provides funding to replace aging peripheral equipment used on the substation  transformer banks at the Colorado Power Station, but the project scope has been reassigned for the  replacement of the failed COP‐2 transformer replacement. The aging peripheral equipment will be dealt with in  future years. Ongoing funding will be used to deal with the COP‐3 transformer bank.    Colorado  Substation Site  Improvements  (EL‐19002)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project Phase Project Completion  $16,360 $500,000 Utilities Pre‐Design Fall 2021  Project Status: This project will make modifications to the substation driveways and fence to provide adequate  ingress and egress for utility vehicles used for maintenance and repair.    Colorado Hopkins  System  Improvement  (EL‐15000)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project Phase Project Completion  $0  $3,518,000 Utilities Pre‐Design Summer 2027  Project Status: This project will replace deteriorating equipment which will increase system capacity and  improve service reliability for the areas served by the Hopkins and Colorado substations and adjacent  substations. After performing the preliminary engineering analysis, it has been decided to rebuild Hopkins  substation to a 12kV substation. Design on this project will begin summer 2020.    East Meadow  Circles 4/12kV  Conversion   (EL‐17001)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project Phase Project Completion  $38,704 $1,014,995 Utilities Pre‐Design Spring 2022  Project Status: The project converts the primary electric distribution system in the East Charleston/Alma  Street/East Meadow Drive/Middlefield Road area from 4 kV to 12 kV. This project is in the preliminary stages of  assessment for engineering design. The project is being reevaluated to determine the scope of work that should  be involved. Issues with replacing the rear‐easement facilities may dictate a change in direction of the project  scope. Some work has been done evaluating the condition of the existing poles in the project area. Engineering  is continuing to work on a preliminary design that should be completed May 2020.     Attachment A Electric Fund Projects Status as of December 2019    Electric Fund Projects – Page 3 of 11    Facility  Relocation for  Caltrain  Modernization   (EL‐17007)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project Phase Project Completion  $103,587 $3,062,000  Utilities Design Fall 2020  Project Status: The Utilities Department received approval from Caltrain to continue removal of the overhead  lines in October 2018. The installation of the Overhead Catenary System above the rails to power the trains will  cause conflicts with the City's overhead electric and communication lines, as well as those owned by others,  including AT&T and Comcast, which cross the railroad tracks. Engineering completed the design work in  November 2019. Due to Operations staffing constraints, the work will be completed by contractors. Work  includes raising the lines at eight crossings and undergrounding the lines at two crossings.  The bid package is  currently with Purchasing for review and advertisement.  This bid package is being issued in conjunction with EL‐ 19004 – Wood Pole Replacement in the hopes of obtaining bettering bid prices.    Hopkins  Substation  4/12kV  Conversion  (EL‐20000)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project Phase Project Completion  $0 $5,693,000 Utilities Pre‐Design Spring 2023  Project Status: This project converts the distribution system connected to the Hopkins Sub‐station from 4kV to  12kV. Engineering design is to begin on this project in fall 2020.    HCB Pilot Wire  Relay  Replacement   (EL‐17005)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project Phase Project Completion  $305,123 $819,660 Utilities Construction Summer 2022  Project Status: This project replaces the existing HCB pilot wire relays with a 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. Staff has completed the relay replacement  between line sections HO‐QR, MB‐EM and EM‐AC and is working on the design for the replacement of relays  between line sections COP‐PB, COP‐AC and COP‐HO.    Rebuild  Underground  District 15   Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project Phase Project Completion  $43,348 $506,111 Utilities Design Spring 2021  Attachment A Electric Fund Projects Status as of December 2019    Electric Fund Projects – Page 4 of 11    (EL‐11003) Project Status: This project rebuilds and replaces the underground electric system in Underground District 15,  the area bounded by Los Palos Avenue, Glenbrook Drive, Pomona Avenue, and Arastradero Road. This project is  in the preliminary stages of engineering design and work will be coordinated with EL‐16000 which is currently  rebuilding the electric system along Arastradero Road. Work on this project has been delayed due to public  input regarding the design of the project. Utilities has had meetings with the residents, UAC, and Council. This  project will be bundled with other similar type jobs for better bid results.      Reb Underground  District 16   (EL‐13003)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project Phase Project Completion  $10,858 $398,254  Utilities Design Spring 2021  Project Status: This project rebuilds and replaces the underground electric system in Underground District 16,  the area along Louis Road between Greer Street and Loma Verde Avenue. This project design is nearly complete  and Utilities staff will be soliciting the construction phase for contract labor. This project will be bundled with  other similar type jobs for better bid results.     Rebuild  Underground  District 19   (EL‐11008)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project Phase Project Completion  $149,023 $0 Utilities Construction Summer 2020  Project Status: This project rebuilds and replaces the underground electric system in Underground District 19,  the area bounded by Forest Avenue, Waverley Street, Addison Avenue, and Alma Street. Much of this work  needs to be performed during the evening or after hours to avoid impacting commercial businesses, which  increases the construction timeline. Construction by city staff is approximately 85% completed for this area, but  is currently delayed due to a shortage of Operations staff. Due to the work location and the impact to  commercial customers, this work is being kept inhouse rather than contracting the remaining work.  Work will  begin again once the work can be scheduled with Operations and impacted customers can be notified. Work is  being done in conjunction with EL‐10006.    Rebuild  Underground  District 20   Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project Phase Project Completion  $9,969 $1,409,968  Utilities Design Summer 2024  Attachment A Electric Fund Projects Status as of December 2019    Electric Fund Projects – Page 5 of 11    (EL‐14002) Project Status: This project rebuilds and replaces the underground electric system in Underground District 20,  the area bounded by Channing Avenue; Center Street; Hamilton Avenue; and Lincoln Avenue. This project is in  the preliminary stages of assessment for engineering design. Design is 50% completed as of December 2019.    Rebuild  Underground  District 23   (EL‐17000)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project Phase Project Completion  $0 $1,264,000 Utilities Pre‐design Summer 2024  Project Status: This project rebuilds and replaces the underground electric system in Underground District 23,  the area bounded by Chaucer Street; Hamilton Avenue; and Southwood Drive. This project is in the preliminary  stages of assessment for engineering design. Design on this project will begin January 2021.    Rebuild  Underground  District 24   (EL‐10006)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project Phase Project Completion  $1,885,129 $2,529,220 Utilities Construction Fall 2020  Project Status: This project rebuilds and replaces the underground electric system in Underground District 24,  the area bounded by Lytton Avenue; Bryant Street; Forest Avenue; and Alma Street. Construction by city staff is  approximately 85% completed but is currently delayed due to a shortage of Operations staff. Due to the work  location and the impact to commercial customers, this work is being kept inhouse rather than contracting the  remaining work.  Work will begin again once the work can be scheduled with Operations and impacted  customers can be notified. Work is being done in conjunction with Rebuild Underground District 19 (EL‐11008).    Rebuild  Underground  District 25   (EL‐19000)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project Phase Project Completion  $9,266 $242,600 Utilities Design Winter 2021  Project Status: This project rebuilds and replaces the underground electric system in Underground District 25.  District 25 includes Orme Street between Los Robles Avenue and Juana Briones School.  Engineering design is  currently in progress and is awaiting the procurement of an easement on private property.  Once granted the  project will be released and scheduled with Electric Operations for construction.    Rebuild Prior Years Total Project Implementing Project Phase Project Completion  Attachment A Electric Fund Projects Status as of December 2019    Electric Fund Projects – Page 6 of 11    Underground  District 26   (EL‐16000)  Actuals Budget Department  $4,800 $796,830 Utilities Design  Spring 2021  Project Status: This project rebuilds and replaces the underground electric system in Underground District 26  the area along Arastradero Road between El Camino Real and Hillview Avenue. This project is in the preliminary  stages of assessment for engineering design and will be designed in conjunction with EL‐11003 which is  rebuilding the electric system on Los Palos Avenue, Glenbrook Drive, and Pomona Avenue.   This project will be  bundled with other similar type jobs for better bid results.     Rebuild  Underground  District 30   (EL‐19003)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project Phase Project Completion  $0 $1,556,000 Utilities Pre‐Design Summer 2024  Project Status: This project will rebuild and replace the underground electric system in the area of the City  bounded by San Francisquito Creek, Edgewood Drive, Island Drive, Hamilton Avenue, Center Drive, Dana  Avenue, Alester Avenue and Jackson Drive. Design on this project to begin July 2021.    Reconfigure  Quarry Feeders  (EL‐14005)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project Phase Project Completion  $469,506 $1,036,776 Utilities Construction Fall 2020  Project Status: This project reconfigures how distribution circuits are connected to each substation transformer  at Quarry Substation. While phases of this project have been completed in construction, others phases still need  to be designed and constructed. The final phase of this project is in design. Construction is scheduled for fall  2020.    Smart Grid  Technology  Installation  (EL‐11014)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project Phase Project Completion  $736,960 $20,066,110 Utilities Pre‐Design Fall 2024  Project Status: Council approved proceeding with Advanced Metering Infrastructure (AMI) and associated smart  grid investments in December 2018. AMI is a foundational technology that is becoming a standard in the utilities  industry and will improve customer experience while enabling CPAU to operate more effectively. An AMI‐based  smart grid system will empower customers to more efficiently utilize utility supplies, facilitate customer  Attachment A Electric Fund Projects Status as of December 2019    Electric Fund Projects – Page 7 of 11    adoption of distributed energy resources (DER) such as solar photovoltaics (PV) and electric vehicles (EV), and  enable the timely detection of water leaks. AMI will also enable CPAU to optimize operations and improve  reliability by reducing restoration time for outages.    Substation 60kV  Breaker  Replacement   (EL‐17002)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project Phase Project Completion  $248,238 $3,413,180 Utilities Design Summer 2024  Project Status: This project replaces high voltage circuit breakers that interconnect the nine electric substations  and two power switching stations that are reaching the end of their useful life and/or are now underrated for  the use. Staff completed the first phase of procurement and installation, and is now moving onto a procurement  package that will be renewed up to 5 total years to complete all needed upgrades.    Substation  Physical Security   (EL‐16003)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project Phase Project Completion  $212,719 $2,139,796 Utilities Design Winter 2023  Project Status: This project installs facilities providing physical protection of electric substations from vandalism  and intrusion. A professional services contract was awarded to Burns & McDonnell and the study is complete  and is being reviewed by staff for projects to be implemented this Fiscal Year. Funding will be requested in  future years to implement additional security measures.  Current funding is addressing fencing, tree trimming,  and substation lighting.    Utility Site  Security  Improvements   (EL‐04012)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project Phase Project Completion  $1,539,560 $1,644,681 Utilities Construction Spring 2021  Project Status: This project adds electronic security systems at utility sites to protect equipment at electric  substations, water pumping plants, reservoirs, and gas stations from intrusion and vandalism. To date, cameras  and detection systems have been installed at nine (9) electric substations, three (3) water stations, and one (1)  natural gas station to monitor facilities. Staff is working on standardizing equipment and video management  software across departments. This project is 75% completed. Video feeds have been transferred to new  software, but motion and door alarms remain.   Attachment A Electric Fund Projects Status as of December 2019    Electric Fund Projects – Page 8 of 11      VA Hospital –  Customer Load  Requirements   (EL‐17003)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project Phase Project Completion  $84,984 $0 Utilities Design Summer 2023  Project Status: This project is to meet the growing electric needs of the VA Hospital. Staff has had numerous  discussions with VA Hospital on electric load growth at the hospital and anticipated needs from the utility. Much  of the cost is reimbursed to the City by the VA Hospital. Staff has prepared preliminary designs for interim  solutions and is awaiting additional information from VA to develop long range plans to meet their future needs.    Underground  District 42 –  Embarcadero  Road, Emerson,  Middlefield  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project Phase Project Completion  $0 $2,050,000 Utilities Pre‐Design Spring 2024  Project Status: This project will replace the existing overhead electrical distribution system with an under‐ ground system along Embarcadero between Emerson and Middlefield. This project involves creating an  Underground Utilities District and performing the work on a general benefit basis under the provisions of Utility  Rule 17 which requires the Utility to bear the cost of the distribution system and the property owners to bear  the cost of undergrounding their services.    Underground  District 46 –  Charleston/El  Camino Real (EL‐ 12001)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project Phase Project Completion  $2,328,463 $3,920,203 Utilities Construction Fall 2021  Project Status: This project undergrounds the existing overhead utility systems in the area along the 400 block  of West Charleston and El Camino Real. Underground substructures have been installed. A shortage of  Operations staff has caused a review and revision of construction plans.  Staff is now working on a bid package  to complete the reconstruction of the 60kV line, installation of steel poles, and removal of the overheard wires.       Underground  District 47 –  Middlefield,  Homer, Webster,  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project Phase Project Completion  $3,190,128 $3,636,183 Utilities Construction Summer 2020  Project Status: This project undergrounds the existing overhead distribution system in the area bounded by  Attachment A Electric Fund Projects Status as of December 2019    Electric Fund Projects – Page 9 of 11    Addison   (EL‐11010)  Middlefield Road, Homer Avenue, Webster Street, and Addison Avenue. Installation of substructures and utility  electric system is completed. There is only one customer who has not converted their service and staff is  working with the customer to get this accomplished.  Where possible, the overhead electric lines are being  removed and poles cut down to the level of the communication lines.    Recurring Projects  Communications  System  Improvements   (EL‐89031)  Prior Year Actuals Current Year  Budget  Implementing  Department  Project Phase Project Completion  $800,766 $100,000 Utilities N/A Recurring  Project Status: 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, telephone links,  computer data transmission, and the Electric Supervisory Control and Data Acquisition (SCADA) system. Staff is  assessing the needs to upgrade the communication lines between substations to facilitate the substation  protection pilot wire relay replacements. The new relays utilize fiber optic communication instead of the copper  wire communication lines utilized by the existing relays.  No additional work has been completed at this time  due to higher project priorities.    Electric Customer  Connections   (EL‐89028)  Prior Year Actuals Current Year  Budget  Implementing  Department  Project Phase Project Completion  $2,648,995 $2,400,000 Utilities N/A Recurring  Project Status: This project installs services, transformers, and meters for new customers; upgrading of existing  services; temporary service connections; and overhead and underground extensions for new or existing  customers. Projects are in various stages of design and construction to provide temporary and permanent  power to residential and commercial customers in Palo Alto.     Electric System  Improvements   (EL‐98003)  Prior Year Actuals Current Year  Budget  Implementing  Department  Project Phase Project Completion  $2,414,005 $1,500,000 Utilities N/A Recurring  Project Status: This project consists of various projects that replace deteriorated facilities or install protective  devices that improve the Electric Distribution System. Projects are in various stages of development to replace  Attachment A Electric Fund Projects Status as of December 2019    Electric Fund Projects – Page 10 of 11    transformers, replace poles, replace overhead wires, and install protective devices to improve service reliability.    Electric Utility  Geographic  Information  System   (EL‐02011)  Prior Year Actuals Current Year  Budget  Implementing  Department  Project Phase Project Completion  $68,904 $326,000 Utilities N/A Recurring  Project Status: This project enhances 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. Staff is working on a scope of work for an RFP to assess GIS needs for Utilities  Engineering. This funding is also being used to pay for Utilities Electric Division’s share of cost for the  implementation of new city‐wide GIS system (ESRI) led by IT.     SCADA System  Upgrades   (EL‐02010)  Prior Year Actuals Current Year  Budget  Implementing  Department  Project Phase Project Completion  $63,805 $265,000 Utilities N/A Recurring  Project Status: This project upgrades the Supervisory Control and Data Acquisition (SCADA) system hardware.  Staff completed upgrade of the servers in 2014 used for monitoring the utility substations and equipment and  will be performing the next server and software upgrade in 2020.    Substation  Facility  Improvements   (EL‐89044)  Prior Year Actuals Current Year  Budget  Implementing  Department  Project Phase Project Completion  $375,144 $327,800 Utilities N/A Recurring  Project Status: This project makes improvements to facilities at the electric substations in Palo Alto. Staff is  working on the replacement of Remote Terminal Units (RTU) at various substations, upgrading gravel and  grounding, and reconfiguring steel trusses and associated devices.      Substation  Protection  Improvements   (EL‐89038)  Prior Year Actuals Current Year  Budget  Implementing  Department  Project Phase Project Completion  $690,592 $300,000 Utilities N/A Recurring  Project Status: This project makes improvements to 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)  Attachment A Electric Fund Projects Status as of December 2019    Electric Fund Projects – Page 11 of 11    on the electric system. Staff completed the 60kV coordination study and is working on designs for  improvements..     Underground  System Rebuild   (EL‐16001)  Prior Year Actuals Current Year  Budget  Implementing  Department  Project Phase Project Completion  $22,478 $350,000  Utilities N/A Recurring  Project Status: This project replaces underground electric equipment in areas that were originally installed  underground, i.e. not part of an Underground District. Staff is working to identify areas where based on the age  of the existing cables are a high priority for cable replacement. So far this includes areas in the Stanford  Research Park, Arastradero Road, and along East Bayshore Road.   New areas have been identified but no  progress has been made on development of the project as staff are currently working on other projects with  higher priorities.    Wood Pole  Replacement  (EL‐19004)  Prior Year Actuals Current Year  Budget  Implementing  Department  Project Phase Project Completion  $26,395 $1,500,000 Utilities N/A Recurring  Project Status: This project will fund the annual replacement of deteriorated wood power poles.  Staff has  identified 84 wood poles for the pole replacement contract and are currently the bid package has been  submitted to Purchasing for review and advertisement.  This bid package is being issued in conjunction with EL‐ 17007 Facility Relocation for Caltrain Modernization, in the hopes of obtaining bettering bid prices.    Upgrade Electric  Estimating  System   (EL‐13008)  Prior Year Actuals Current Year  Budget  Implementing  Department  Project Phase Project Completion  $23,148 $0 Utilities N/A Recurring  Project Status: This project upgrades the existing Electric estimating software used for preparing job estimates  by integrating engineering analysis, adding predefined standards and templates, and by integrating  documentation, materials ordering, and work management functions. Staff completed the underground  construction standards and the draft of the overhead construction standards for electric installations.  The  software used for project estimating was upgraded to the latest version.  Staff is working with IT to facilitate the  transition of the mapping and estimating software to ESRI.  Attachment A    Fiber Optics Fund Projects Status as of December 2019    Fiber Optics Fund Projects – Page 1 of 1    One‐Time Projects  Fiber Optic  System Rebuild  (FO‐16000)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project Phase Project Completion  $167,167 $1,292,165 Utilities Design Spring 2021  Project Status: This project is for the System Capacity Improvement that rebuilds portions of the "dark" fiber  optic network around Palo Alto. The first phase of this project has been constructed. The remaining phases are in  design. Higher priority projects and  staffing constraints are preventing this project from completing the design.      Recurring Projects  Fiber Optics  Network System  Improvements  (FO‐10001)  Prior Year Actuals Current Year  Budget  Implementing  Department  Project Phase Project Completion  $1,009,942 $500,000 Utilities N/A Recurring  Project Status: This project improves the reliability within the fiber optic network system.    A project to install a  new fiber optic cable from Park Substation to the Stanford Research Park to enhance capabilities and reliability  is identified and waiting for availability of staff to design    Fiber Optics  Customer  Connections  (FO‐10000)  Prior Year Actuals Current Year  Budget  Implementing  Department  Project Phase Project Completion  $133,326 $250,000 Utilities  N/A Recurring  Project Status: This project enables the installation of fiber optic infrastructure for new service connections.  Projects are developed as needed to meet customer requests for leasing of fibers on the Dark Fiber system.   Staff have processed and completed X number of3 customer connection projects in Q1 and Q2.  This is in  addition to several smaller projects involving existing fiber optic cable connections that did not require  additional engineering design and were handled directly by Operations staff.      Attachment A Gas Fund Projects           Status as of December 2019    Gas Fund Projects – Page 1 of 2   One‐Time Projects  Gas Main  Replacement  Project 23  (GS‐13001)  Prior Years Actuals Total Project Budget Implementing  Department  Project Phase Project Completion  $154,872 $11,124,281 Utilities Design Fall 2021  Project Status: This project enables the design and construction to replace approximately 22,700 linear feet  (which represents 2.0% of the City's Gas distribution main system) of distribution main and 320 gas service laterals  constructed mainly of PVC material on various streets within the Midtown, Midtown West, Evergreen, Ventura,  and Green Acres neighborhoods.  The design is expected to be completed in spring 2020 with construction  beginning in winter 2021.    Gas ABS/Tenite  Replacement  Project  (GS‐18000)  Prior Years Actuals Total Project Budget Implementing  Department  Project Phase Project Completion  $31,015 $2,615,100 Utilities Design Spring 2020  Project Status: This project replaces approximately 130 gas services laterals constructed of Acrylonitrile‐ butadiene‐styrene (ABS) or Tenite material on various streets.  Council approved funding fin June 2019.  Construction began in fall 2019 and will be completed in spring 2020.      Recurring Projects  Gas System,  Customer  Connections  (GS‐80017)  Prior Year Actuals Current Year Budget Implementing  Department  Project Phase Project Completion  $1,039,110 $1,342,415 Utilities  N/A Recurring  Project Status:  This project enables the Gas Distribution System to be extended in order to provide gas service  to new customers and augment service to customers with increased natural gas demands. Improvements  include new mains, services, valves, regulators, meters, and accessories.  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 requirements due to new development or redevelopment.  This project is  funded partially from reimbursements by customers. City crews completed approximately 80 new gas services  between July 2019 and December 2019.    Attachment A Gas Fund Projects           Status as of December 2019    Gas Fund Projects – Page 2 of 2  Gas Distribution  System  Improvements  (GS‐11002)  Prior Year Actuals Current Year Budget Implementing  Department  Project Phase Project Completion  $9,600 $500,000 Utilities N/A Recurring  Project Status: This project enables Gas Distribution System improvements.  Typical activities include: increasing  distribution system capacity for load growth, replacing deteriorated capital 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.  The City must continuously  evaluate service reliability needs and make improvements to the system to maintain top level service to City  customers and to minimize potential economic losses due to service interruptions. In the first half of FY 2020,  approximately 300 feet of natural gas mains and 10 natural gas services identified in non‐standard locations  were either upgraded or replaced.    Gas Equipment  and Tool  (GS‐13002)  Prior Year Actuals Current Year Budget Implementing  Department  Project Phase Project Completion  $117,005 $100,000 Utilities N/A Recurring  Project Status: This project purchases polyethylene (PE) fusion equipment and tools, directional boring/locating  equipment and tools, and general shop equipment and tools.  The equipment needs to be upgraded on an  annual basis to safely operate and maintain a natural gas distribution system and to ensure operators’ safety and  productivity. Some recent purchases include large diameter tapping, stopping machines and a pressure  recording chart.    Gas Meters and  Regulators  (GS‐80019)              Prior Year Actuals Current Year Budget Implementing  Department  Project Phase Project Completion  $45,551 $250,000 Utilities N/A Recurring  Project Status: This project provides replacement of the existing gas meters and regulators annually. The  coordination of gas meter and regulator replacements with gas meters identified to be replaced under the AMI  contract, which is generally gas meters that are 25 years or older.  The gas meter replacement program ensures  the accuracy of gas consumption measurement, reduces possible revenue loss due to under‐registered gas, and  provides customers with accurate monthly bills.    Attachment A Storm Drain Projects           Status as of December 2019    Storm Drain Projects – Page 1 of 2    One‐Time Projects  Corporation Way  System Upgrades  and Pump Station  (SD‐21000)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project Phase Project Completion  $0 $3,166,000 Public Works Design Winter 2021  Project Status: This project incorporates a design of a new small pump station with 25 cubic feet per second  capacity and upgrades 700 linear feet of storm drain pipe to 30‐inch High Density Polyethylene.  The existing  system does not have the force needed to discharge storm flows into the Adobe Creek.  Adding a pump station  in advance of the outfall and upsizing the storm drain pipe will eliminate the routine flooding along East  Bayshore Road and convey runoff from a 10‐year storm event. Proposals were received in November 2019 for a  design contract. Staff anticipates awarding a construction contract in summer 2020, with construction beginning  in fall 2020.    Loma Verde  Avenue Trunk  Line  Improvements  (SD‐19000)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project Phase Project Completion  $45,028 $2,976,813 Public Works Design Fall 2020  Project Status: This project provides replaces 1,750 linear feet of storm drain pipe with 48‐inch High Density  Polyethylene and replace associated catch basins, laterals and manholes. This project was dependent on  completion of the Matadero Creek Storm Water Pump Station Project, located downstream from Loma Verde  Avenue storm drain improvements.  The procurement for  a construction contract is scheduled for winter 2020.  Construction is planned to begin spring 2020.    West Bayshore  Road Pump  Station  (SD‐20000)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project Phase Project Completion  $2,624 $1,339,400 Public Works Design Winter 2021  Project Status: This project incorporates design and construction of a new small pump station with 15 cubic feet  per second capacity.  The Storm Drain Master Plan identifies this as a high priority project.  Installing a new  pump station will allow storm flows to be pumped into the Adobe / Barron Creek confluence while adding a  pump station in advance of the outfall would eliminate the routine flooding along West Bayshore Road and  allow the system to convey runoff from a 10‐year storm event. Proposals were received in November 2019 for a  design contract. Staff anticipates awarding a construction contract in summer 2020, with construction beginning  in fall 2020  Attachment A Storm Drain Projects           Status as of December 2019    Storm Drain Projects – Page 2 of 2          Recurring Projects  Storm Drainage  System  Replacement and  Rehabilitation  (SD‐06101)  Prior Year Actuals Current Year  Budget  Implementing  Department  Project Phase Project Completion  $461,993 $2,159,481 Public Works N/A Recurring  Project Status: This project provides for annual replacement and rehabilitation to maintain the integrity of the  storm drain system, including deteriorated storm drain pipes, manholes, and storm drain inlets. The current  project to rehabilitate an existing box culvert over Oregon Expressway is underway. The design was finalized in  December 2019. T project will go out to bid and staff anticipates awarding  a construction contract will occur in  spring 2020 with construction completing in fall 2020.      Attachment A Water Fund Projects           Status as of December 2019    Water Fund Projects – Page 1 of 6    One‐Time Projects  Mayfield  Reservoir  Subgrade and  Venting Repair  (WS‐19000)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project Phase Project Completion  $0 $600,000 Utilities Construction Summer 2020  Project Status: This project is part of the City’s recent Seismic Upgrade and Emergency Water Supply and  Storage Projects. The reservoir was drained in 2012 for approximately two years to allow extensive seismic  rehabilitation work to be performed and construction of a new pump station. Subsequently hairline cracks were  sealed in the reservoir. A geotechnical consultant was hired to evaluate the tank foundation. This study was  completed and there were several options identified.  Staff has completed the design of the vent screen  replacement and crack sealing.  A construction contract was awarded in fall 2019 and work is anticipated to start  in January 2020.    Water Main  Replacement  Project 27  (WS‐13001)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project Phase Project Completion  $148,886 $ 7,787,000 Utilities Construction Summer 2020  Project Status: This project will replace approximately 9,600 linear feet of structurally deficient, aging, or  corroded water mains and services along the mains on Sand Hill Road, Oak Creek Drive (5%) and Fulton Avenue.  The project is currently under construction except for the Oak Creek Drive (95%) portion of the work that should  be done after Stanford’s bank stabilization project is complete.    Water Regulation  Station  Improvements  (WS‐07000)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project Phase Project Completion  $ 1,476,112 $ 797,100 Utilities Pre‐Design Winter 2020  Project Status: This project for Water Regulation Station Improvements includes seismic upgrades, piping  improvements and other various upgrades to increase the structural reliability of three of the City’s turnouts  with SFPUC. Work under this project was included in the Seismic Upgrade of four Steel Tanks and three  Turnouts’ Project and the project was completed and closed out.   Due to multiple existing issues at the  California Turnout, upgrade work at this facility has been removed from the contract and will be re‐evaluated,   The  Water Configuration Study was terminated and staff will review the needs at a Pre‐Design level.   Additionally, new issues with the pressure reducing valves in the Page Mill and Arastradero regulating stations  Attachment A Water Fund Projects           Status as of December 2019    Water Fund Projects – Page 2 of 6    were found and will be addressed.    Water Recycling  Facilities  (WS‐07001)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project Phase Project Completion  $ 705,477 $ 852,699 Utilities Pre‐Design  Fall 2023  Project Status: This project allows the City to hire a consultant to prepare a business plan, prepare prelimi‐nary  design, and secure funding options for an expansion of the existing recycled water delivery system in the City.  The pipeline will primarily serve the Stanford Research Park and provide an alternative supply source of 435,600  cubic feet per year, roughly 10% of Palo Alto’s total water consumption in 2015. The environmental impact  report was completed in September 2015. The expansion pipeline is one of several water reuse projects being  considered in the Northwest County Recycled Water Strategic Plan. This, or one of the other projects, may be  recommended to Council for design and construction. The earliest that work would commence is in FY 2022.    Water Reservoir  Coating  Improvements  (WS‐08001)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project Phase Project Completion  $ 1,624,519 $ 2,141,182 Utilities Design Winter 2020  Project Status: This project for Water Reservoir Coating Improvements includes the recoating of four steel tanks.  Work under this project was included in the Seismic Upgrade of four Steel Tanks and the three Turnout Projects.  Once construction started, it was found that the Montebello Reservoir was in very poor condition. Due to  escalating costs associated with roof replacement, staff decided to complete construction of the Montebello  Reservoir and re‐evaluate the remaining three tanks for replacement. Coating work at the three remaining steel  tanks (Dahl, Park and Corte Madera Reservoirs) was removed from the construction contract. The City  contracted with an engineering consultant to study the water system as a whole and make recommendations  for upgrades and/or improvements. During the Water Configuration Study, the Corte Madera Reservoir was  found to be in critical condition and was recommended to be replaced.  Part of the funding for the new reservoir  will come from this task.  The Water Configuration Study contract was terminated due to Consultant’s staffing  inability to complete the project.  This CIP is scheduled to be closed and the remaining funds are to be returned  to reserves.      Attachment A Water Fund Projects           Status as of December 2019    Water Fund Projects – Page 3 of 6    Water Tank  Seismic Upgrade  and  Rehabilitation  (WS‐09000)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project Phase Project Completion  $ 3,617,775 $ 11,728,043  Utilities Design Summer 2021  Project Status: This project for Seismic Water System Upgrades includes seismic upgrades at the Montebello,  Mayfield, Corte Madera, Park, Boronda, and Dahl Reservoirs in compliance with the American Society of Civil  Engineers (ASCE 7) seismic codes. Work at the steel tank sites includes the installation of new concrete footings,  anchor chairs and tie‐downs, installation of seismic shut off valves and control valves, flexible joints at the  inlet/outlet piping connections, relocation of various inlet and outlet piping, backup power supplies, and  reinforcement and/or replacement of interior tank columns. Seismic upgrade work at the Mayfield Reservoir  was completed in summer 2013 and work on the Boronda Reservoir was completed in summer 2016. All  remaining reservoirs were to be seismically upgraded as part of the Seismic Upgrade of four Steel Tanks and  three Turnouts’ Project. However, during construction at the Montebello Reservoir, it was found that the  existing roof, support columns and support beams, and floor coating needed total replacement due to their poor  condition. Given that all four tanks were constructed at the same time, staff assumes that the remaining three  tanks are in the same condition. In order to determine the most efficient way to upgrade and/or replace the  remaining three reservoirs, upgrade work at the Corte Madera, Park and Dahl Reservoirs has been removed  from the construction contract. The City is currently under contract with an engineering consultant to study the  water system as a whole and make recommendations for upgrades and/or improvements.  During the Water  Configuration Study the Corte Madera Reservoir was found to be in critical condition and was recommended to  be replaced.  Most of the funding for the new reservoir will come from this task.  Design documents to a 25%  level were completed.  Request for Proposals for the Design/Build project are being solicited.    Water Main  Replacement  Project 28  (WS‐14001)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project Phase Project Completion  $0 $ 9,085,107 Utilities Pre‐Design Winter 2022  Project Status: This project will replace approximately 11,810 linear feet (which represents 1.1% of the City's  water distribution system) of mains and services on various streets within the City, including areas in the  Duveneck/St. Francis, Barron Park and Charleston Meadows neighborhoods.  The recently approved capital  improvement plan increases the scope of each project and staggers construction projects to every other year.    Attachment A Water Fund Projects           Status as of December 2019    Water Fund Projects – Page 4 of 6      Recurring Projects  Water Service  Hydrant  Replacement   (WS‐80014)  Prior Year Actuals Current Year Budget Implementing  Department  Project Phase Project Completion  $72,158 $ 400,000 Utilities N/A Recurring  Project Status: 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.  In  the first half of FY 2020, 16 fire hydrants were replaced.    Water System  Customer  Connections  (WS‐80013)  Prior Year Actuals Current Year Budget Implementing  Department  Project Phase Project Completion  $ 851,385  $ 750,000 Utilities N/A Recurring  Project Status: This project allows for improvements that include new main extensions, valves, domestic  services, meters on upgraded services, backflow devices, fire services, and fire hydrants. System extensions are  required to provide service to new customers and to serve existing customers requesting expanded service.    Water  Distribution  System  Improvements  (WS‐11003)  Prior Year Actuals Current Year Budget Implementing  Department  Project Phase Project Completion  $148,016 $ 446,620 Utilities N/A Recurring  Project Status: This project enables improvements to 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 modeling, and fire flow studies or other system  improvements as required. 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.  During the last six months the Mayfield Reservoir VFD replacement and back‐up controls were  completed.  El Camino Pump Station pump programming was completed and tested to add the capability for the  El Camino Reservoir to pump into zone 1 in addition to zone 2.  Prior piping modifications at the pump station  were completed in the first half of 2019.  The 18” CCP repair and valve installation on Page Mill Road was bid as  part of the WMR 27 project which is under construction.  ACP pipe study began and staff is in the process of  Attachment A Water Fund Projects           Status as of December 2019    Water Fund Projects – Page 5 of 6    collecting pipe samples.  The Water CAD modeling software was upgraded from 2000 pipe to 5000 pipe model.    Water General  Equipment/Tools  (WS‐13002)  Prior Year Actuals Current Year Budget Implementing  Department  Project Phase Project Completion  $ 0  $ 50,000  Utilities N/A Recurring  Project Status: This project acquires new equipment and tools, the replacement of existing fusion equipment,  and other associated tools. The fusion equipment is used to fuse together pipe joints in the City's water  distribution system. Equipment and tools are required to be upgraded on an annual basis 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.  Staff did not purchase any equipment or tools in the  first half of FY 2020.    Water Meters  (WS‐80015)  Prior Year Actuals Current Year Budget Implementing  Department  Project Phase Project Completion  $122,265 $ 1,292,700 Utilities N/A Recurring  Project Status: This project enables the purchasing of meters for new customers, upgrading meters for current  customers, installing meter bypasses, and replacing obsolete meters that are no longer repairable. This funding  also allows for annual testing and calibration of selected meters to maintain meter accuracy and reliability.   Standard replacements were completed in the first half of FY 2020.  During the AMI implementation process  approximately 25% of the meters will be replaced.    Water System  Supply  Improvements  (WS‐11004)  Prior Year Actuals Current Year Budget Implementing  Department  Project Phase Project Completion  $61,673 $ 261,620 Utilities N/A Recurring  Project Status: This project evaluates and improves the City’s water distribution system on an as‐needed basis.  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, conditional assessment of the reliability of transmission mains, and security system  installations. The water system includes the connection facilities between the City’s and the San Francisco Public  Utility Commission’s pipelines, emergency water wells within the City, pumping stations, water reservoirs, and  pipelines.   Procured SCADA switches and firewall components for the fiber connections to 27 water sites.   Attachment A Water Fund Projects           Status as of December 2019    Water Fund Projects – Page 6 of 6    Software to control the system was purchased too.  Staff will install the hardware and software.     Water, Gas,  Wastewater  Utility GIS Data  (WS‐02014)  Prior Year Actuals Current Year Budget Implementing  Department  Project Phase Project Completion  $178,991 $ 736,399 Utilities N/A Recurring  Project Status: This project enables contracts related to Utilities GIS (Geographic Information System) needs.   AME database is heavily utilized by Utilities Engineering staff to update the utility information in GIS.  The  updated information is used by various City staff, such as marking/locating underground utilities to comply with  USA (Underground Service Alert) requirements; developing design drawings for pipeline replacement projects;  verifying existing underground utilities during construction activities; creating customized utility map books for  field crews and on‐call personnel to meet their specific needs. Annual surveying contracts to collect GPS points  of existing above‐ground utility features within the CIP project areas.  The data is used to correct the GIS  database. Accurate utility data helps the design of new pipe alignment to minimize construction conflicts. Create  synchronization and user interface between the upcoming Citywide ESRI GIS database and Utilities AME  database.         Attachment A Wastewater Collection Fund Projects            Status as of December 2019    Wastewater Collection Fund Projects – Page 1 of 4      One‐Time Projects  Wastewater  Collection System  Rehabilitation  Augmentation  Project 24  (WC‐11000)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project Phase Project Completion  $ $3,131,595 Utilities Completed Fall 2019  Project Status:  This project is part of the Utilities Department plan to address areas that were identified in  Wastewater Capital Improvement Project 17 (Cleaning and Video Inspection of the Collection System) as  needing rehabilitation. This project was combined with Project 25 and 26(WC‐12001; WC‐13001).  Construction  was completed in September 2019.    Wastewater  Collection System  Rehabilitation  Augmentation  Project 26  (WC‐13001)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project Phase Project Completion  $ $3,309,998 Utilities Completed Fall 2019  Project Status: This project is part of the Utilities Department plan to address areas that were identified in  Wastewater Capital Improvement Project 17 (Cleaning and Video Inspection of the Collection System) as  needing rehabilitation. This project was combined with Project 24 and 25(WC‐11001; WC‐12001). All new  service laterals were installed from the new sewer main to the new sewer cleanouts located in the City’s right‐ of‐way. Construction was completed in September 2019.    Wastewater  Collection System  Rehabilitation  Augmentation  Project 28   (WC‐15001)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project Phase Project Completion  $475,261 $5,092,599 Utilities Construction Winter 2020  Project Status: This project enables the design and construction of high priority wastewater main and lateral  replacement work to reduce inflow of rainfall and ground water into the collection system. The scope is to  replace approximately 10,000 linear feet of wastewater mains including Oregon Avenue, Colorado Avenue, and  Lower Page Mill Rd. The project is primarily located in the Leland Manor/Garland, Midtown West, and Lower  Page Mill/Los Altos Hills areas of the City.  The CIP liner rehabilitation work will be within existing utility  easements located on private properties.  The work along Oregon Avenue is complete.  Colorado Avenue and  Lower Page Mill Road construction will occur in January 2020.  Project completion is on schedule for February  2020.   Attachment A Wastewater Collection Fund Projects            Status as of December 2019    Wastewater Collection Fund Projects – Page 2 of 4      Wastewater  Collection System  Rehabilitation  Augmentation  Project 30   (WC‐16001)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project Phase Project Completion  $421,684 $6,921,684 Utilities Pre‐Design Spring 2023  Project Status: This project funds the design and construction of high priority main and lateral replacement  work, which reduces inflow of rainfall and groundwater into the collection system. The project replaces 12,066  linear feet (which represents 1.1% of the City's Wastewater Collection System) for various streets in the City,  including Ventura and Research Park neighborhoods. 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 coordination between departments.    Wastewater  Collection System  Rehabilitation  Augmentation  Project 29   (WC‐16001)  Prior Years  Actuals  Total Project  Budget  Implementing  Department  Project Phase Project Completion  $327,849 $4,508,339  Utilities Construction Spring 2020  Project Status: This project enables the design and construction of replacement of approximately 9,000 linear  feet of wastewater mains. The sanitary sewer mains, laterals, and manholes to be rehabilitated or replaced in  this project is located in the Charleston Meadows neighborhood. The City and the Contractor will provide  written notification to all affected residents prior to the start of construction. Construction is expected to start  in early January 2020 and last approximately three months.        Recurring Projects  Sewer System,  Customer  Connections   (WC‐80020)  Prior Year Actuals Current Year  Budget  Implementing  Department  Project Phase Project Completion  $ 295,652 $445,000 Utilities N/A Recurring  Project Status: This project installs sewer lateral connections and additions or extensions of existing mains to  serve new customers and to respond to changes in sewer requirements due to redevelopment. Old existing non‐ plastic sewer laterals with condition deficiencies per Utilities Operations’ criteria are required to be replaced.  Other revenue includes customer connection and capacity fees for connecting to the wastewater collection  Attachment A Wastewater Collection Fund Projects            Status as of December 2019    Wastewater Collection Fund Projects – Page 3 of 4      system.     Sewer  Lateral/Manhole  Rehabilitation  and Replacement   (WC‐99013)  Prior Year Actuals Current Year  Budget  Implementing  Department  Project Phase Project Completion  $ 494,877 $921,500 Utilities N/A Recurring  Project Status: This project replaces defective sewer laterals, cleanouts, manholes, install backwater devices,  and purchase equipment to support these activities to maintain the Wastewater Collection System. Information  collected during routine annual maintenance activities is used to prioritize work. The work performed will help  reduce both the backflow of sewage onto private property and the City's treatment expenses. This project also  cleans and video‐inspects sewer collection mains and laterals as necessary.  This resulted in streamlined  collection system operations and maintenance from July through December 2019 effectively and efficiently  reducing SSOs.    Wastewater  General  Equipment and  Tools   (WC‐13002)  Prior Year Actuals Current Year  Budget  Implementing  Department  Project Phase Project Completion  $24,204 $50,000  Utilities N/A Recurring  Project Status: This project includes the acquisition of new fusion equipment and other associated tools. The  equipment is used to fuse together pipe joints in the City's wastewater collection system. 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. In the first half of FY 2020 a future trailer jetter  was purchased and an CCTV van upgrade is anticipated later in the year as funds become available.     Wastewater  System  Improvements   (WC‐15002)  Prior Year Actuals Current Year  Budget  Implementing  Department  Project Phase Project Completion  $ 0 $260,000 Utilities N/A Recurring  Project Status: This project implements improvements to the Wastewater Collection System. Typical activities  include: increasing system capacity for growth, flow monitoring, hydraulic modeling and system analysis, load  Attachment A Wastewater Collection Fund Projects            Status as of December 2019    Wastewater Collection Fund Projects – Page 4 of 4      simulations, asset management analysis and assessment, system inflow/infiltration analysis, and sanitary sewer  overflow monitoring and reduction. Mainline sewer backups and overflows into homes and businesses are  costly and create 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. Replacement of the  City’s legacy wastewater maintenance and asset management software (ICOM) is scheduled to begin in spring  2020.               Attachment A Wastewater Treatment Fund Projects  Status as of December 2019    Wastewater Treatment Fund Projects – Page 1 of 2    One‐Time Projects  Advanced  Water  Purification  Facility  (WQ‐19003)  Prior Years Actuals Total Project Budget Implementing  Department  Project Phase Project  Completion  $0 $23,246,073  Public Works Pre‐Design Summer 2022  Project Status: This project enables the design and construction of an Advanced Water Purification Facility to  further improve the quality of the tertiary‐treated recycled water by microfiltration or ultrafiltration followed by  reverse osmosis to reduce the level of total dissolved solids.  The water reuse partnership agreement with Valley  Water and Mountain View provides $16 million in funding from Valley Water for this project. Design is expected to  be completed in FY 2021 with project completion in FY 2022.    Outfall Line  Construction  (WQ‐19000)  Prior Years Actuals Total Project Budget Implementing  Department  Project Phase Project  Completion  $0 $8,219,000 Public Works Design Winter 2022  Project Status: This project consists of the construction of a new parallel outfall pipe to convey final plant effluent  to San Francisco Bay.  Design is 90% complete. The City is expecting a State low‐interest loan to be awarded for  the construction phase.    Secondary  Treatment  Upgrades  (WQ‐19001)  Prior Years Actuals Total Project Budget Implementing  Department  Project Phase Project  Completion  $483,059 $30,763,109 Public Works Design  Fall 2024  Project Status: This project upgrades the Secondary Treatment process at the Regional Water Quality Control  Plant.  The existing Secondary Treatment process has two main components; the Fixed Film Reactors (FFR) and the  Activated Sludge (AS) Process. This project includes the reconstruction of the AS process, rehabilitation of the AS  Aeration Basins and the elimination of the FFRs.  The design contract began in October 2018.  Staff is pursuing a  State low‐interest loan or bond for the construction phase.    New Laboratory  and  Environmental  Services  Prior Years Actuals Total Project Budget Implementing  Department  Project Phase Project  Completion  $76,175 $22,767,993  Public Works Design Fall 2024  Project Status: This project replaces the existing Plant lab and environmental services offices.  This building will  Attachment A Wastewater Treatment Fund Projects  Status as of December 2019    Wastewater Treatment Fund Projects – Page 2 of 2    Building  (WQ‐14002)  consolidate staff from four separate buildings currently and will provide a larger and updated lab.  The solicitation  and selection of a design consultant is complete.  The design contract began in February 2019.  Staff is pursuing a  State low‐interest loan or bond for the construction phase.    Plant Master  Plan   (WQ‐10001)  Prior Years Actuals Total Project Budget Implementing  Department  Project Phase Project  Completion  $3,024,494 $0 Public Works Construction Fall 2021  Project Status: This project enables the ongoing program management support for major capital projects.  Current  tasks include developing scopes of work, evaluating consultant proposals, coordinating project management  activities, pursuing State low‐interest loans for multiple projects, and updating partner agreements.  The  consultant continues to provide support for the tasks associated with this project.    Primary  Sedimentation  Tank  Rehabilitation   (WQ‐14003)  Prior Years Actuals Total Project Budget Implementing  Department  Project Phase Project  Completion  $653,663 $20,389,640 Public Works Design Fall 2022  Project Status: This project enables the design and construction for new protective coatings on each of the four  concrete primary sedimentation tanks and replacement of worn rotating parts, equipment, and electrical  equipment.  The primary tanks at the Plant were installed in 1972.  This recoating project will extend the concrete  life another 30 years.  Design is 90% complete.  The City is expecting a State low‐interest loan be awarded for the  construction stage.      Recurring Projects  Plant Repair,  Retrofit and  Equipment  Replacement  (WQ‐19002)  Prior Year  Actuals  Current Year Budget Implementing  Department  Project Phase Project Completion  $327,099 $7,017,719 Public Works N/A Recurring  Project Status: This project enables the assessment, repair, and retrofit of the Plant's concrete and metal  structures; the replacement of necessary Plant equipment and ancillary facilities to maintain treatment reliability  and existing infrastructure; and the replacement of large diameter flow meters built into the wastewater  treatment system on sewers, pipes, and water lines.  Attachment A List of Completed Projects CIP #Project Name Project Description Project Type Fund Source Department Season  Completed Year  Completed Total Project  Budget ** PL‐16001 Downtown Mobility and  Safety Improvements  This project included the construction of curb extensions and the installation  of new pedestrian signal heads and traffic signal modifications in 2019 as part  of the Upgrade Downtown project. Construction Traffic and  Transportation Office of  Transportation Fall 2019  $             1,819,847  FD‐20002 Thermal Imaging Cameras  Replacement     This project replaced the Thermal Imaging Cameras (TICs) on all fire and response vehicles used to help identify the location of victims; assess the source of fires, smoke, and heat; to assist in creating a plan of action.  Purchase Buildings and  Facilities Fire  Department Fall 2019  $                   99,000  WC‐11000 Wastewater Collection  System Rehabilitation  Augmentation Project 24 This project  addressed areas that were identified in Wastewater Capital  Improvement Project 17 (Cleaning and Video Inspection of the Collection  System) as needing rehabilitation. This project was combined with Project 25  and 26(WC‐12001; WC‐13001).   Construction Wastewater  Collection Utilities Fall 2019  $             3,131,595  WC‐13001 Wastewater Collection  System Rehabilitation  Augmentation Project 26 This project was combined with Project 24 and 25(WC‐11001; WC‐12001). All  new service laterals were installed from the new sewer main to the new  sewer cleanouts located in the City’s right‐of‐way. Construction Wastewater  Collection Utilities Fall 2019  $             3,309,998  CB‐19000 Cubberley Track and Field  Replacement This project replaced the synthetic turf field, installed an all‐weather track  and a fitness area.Construction Parks and Open  Space Public Works Fall 2019  $             1,851,708  PE‐14018 Baylands Boardwalk  Improvements  This project replaced the existing boardwalk with similar alignment and  configuration. Construction Buildings and  Facilities Public Works Winter 2019 2,123,681$               PE‐17009 City Hall Floor 4 Remodel This project improved the Administrative Services Department offices on the  fourth floor of City Hall.Construction Buildings and  Facilities Public Works Winter 2019 494,818$                  PE‐14015 Lucie Stern Buildings  Mechanical and Electrical  Upgrades This project replaced and upgraded the mechanical, electrical, and fire/life  safety systems at Lucie Stern Children’s Theater, Lucie Stern Community  Theater, and Lucie Stern Community Center.  Construction Buildings and  Facilities Public Works Spring 2019 6,142,607$               PL‐16000 Quarry Road Improvements  and Transit Center Access This project included planning, design and construction of bicycle and  pedestrian improvements along Quarry Road.Construction Traffic and  Transportation Planning and  Community  Environment Spring 2019 5,148,378$               EL‐17008 Utility Control Center  Upgrades This project upgraded the Utility Control Center working environment. Construction Electric Utilities Winter 2019 499,997$                  GS‐12001 Gas Main Replacement  Project 22 This project replaced approximately 23,700 linear feet of gas mains and  services along University Avenue and other streets in the Downtown North  nieghborhood. Construction Gas Utilities Spring 2019 11,658,997$            1 Attachment A List of Completed Projects CIP #Project Name Project Description Project Type Fund Source Department Season  Completed Year  Completed Total Project  Budget ** WC‐12001 Wastewater Collection  System Rehabilitation /  Augmentation Project 25  This project was combined with Project 24 and 26 (WC‐11001; WC‐13001)  replacing 45,294 linear feet of sanitary sewer mains in university South,  Professorville and Old palo Alto neigborhoods. Construction Wastewater  Collection Utilities Spring 2019 3,211,998$               WQ‐14001Dewatering and Loadout  Facility This project provides funding for the design and construction of the sludge  dewatering facility and truck loadout to retire existing dewatering and  sewage sludge incinerators.  Construction Wastewater  Treatment Public Works Spring 2019 27,497,551$            WS‐12001 Water Main Replacement –  Project 26  This project replaced approximately 11,000 linear feet of aging water mains  and services which included water main replacement as part of the Upgrade  Downtown Project. Construction Water Utilities Spring 2019 7,506,161$               PE‐17009 City Hall Floor 5 Remodel This project improved the Planning and Community Environment (PCE)  Department offices on the fifth floor of City Hall. Construction Buildings and  Facilities Public Works Summer 2018 525,000$                  AC‐14001 Baylands Nature  Interpretive Center Exhibit  Improvements  This project replaced worn out or non‐functioning exhibits at the Baylands  Nature Interpretive Center.Construction Buildings and  Facilities Community  Services Summer 2018 56,000$                    PE‐17000 Mitchell Park Adobe Creek  Bridge Replacement This project replaced the existing bridge over Adobe Creek in Mitchell Park. Construction Parks and Open  Space Public Works Summer 2018 250,000$                  PD‐14000 Internal Alarm System  Replacement This project replaced the citywide system of panic alarms from various  departments and the Council chambers.Construction Buildings and  Facilities Police Summer 2018 78,000$                    EL‐14004 Maybell 1&2 4/12kV  Conversion This project converted circuits 1 & 2 at Maybell substation from 4kV to 12kV. Construction Electric Utilities Fall 2018 364,796$                  GS‐15001 Security at City Gas  Receiving Stations This project equiped the City’s four Gas Receiving Stations with video  surveillance systems. Construction Gas Utilities Summer 2018 150,000$                  SD‐13003 Matadero Creek Storm  Water Pump Station and  Trunk Line Improvements  This project upgraded the capacity to the Matadero Creek Storm Water Pump  Station, which serves a low‐lying 1200‐acre area of southeastern Palo Alto. Construction Storm Drain Public Works Summer 2018 6,685,317$               AP‐16002 Wildlife Hazard  Management Plan The Wildlife hazard Management Plan identified the specific actions the  airport will take to mitigate the risk of wildlife strikes on or near the airport.Study Airport Public Works Summer 2018 63,415$                    WC‐14001 Wastewater Collection  System Rehabilitation  Augmentation Project 27  This project replaced 16,859 linear feet of sanitary sewer mains of various  sizes on various streets.Construction Wastewater  Collection Utilities Winter 2018 4,022,455$               2 Attachment A List of Completed Projects CIP #Project Name Project Description Project Type Fund Source Department Season  Completed Year  Completed Total Project  Budget ** PG‐15000 Buckeye Creek Hydrology  Study  This project analyzed flooding conditions and recommended flood control  structures and drainage and erosion control solutions for the creek located  within Foothills Park.   Study Parks and Open  Space Public Works Spring 2018 167,741$                  PE‐17004 CalTrain Corridor Video  Management System  Installation  This project replaced two existing gateway signs in the right‐of‐way for the  California Avenue business district. Construction Streets and  Sidewalks Public Works Spring 2018 1,550,000$               PF‐16003 Parking Lot Q Elevator  Modernization This project modernized the existing elevator at Parking Lot Q.Construction Buildings and  Facilities Public Works Fall 2017 170,608$                  PE‐13003 Parks, Trails, Open Space,  and Recreation Master Plan  This master plan provided guidance on the recreation and improvement  needs for Palo Alto’s parks, trails, open space and recreational programs.  Study Parks and Open  Space Community  Services Fall 2017 627,057$                  PE‐12003 Rinconada Park Master Plan  This project developed a plan for short, medium and long range  improvements to the regional park including the consideration of pathways,  new restrooms and playgrounds, new landscaping, and revitalization of  underutilized areas within the park.   Study Parks and Open  Space Community  Services Fall 2017 541,355$                  PE‐13012 Structural Assessment of  City Bridges  The project developed an inventory of all City‐owned bridges and culvert  structures, condition assessment, cost estimate for rehabilitation, and  recommendation for future inspection frequencies, assessment and  improvements. Study Buildings and  Facilities Public Works Fall 2017 198,529$                  WC‐11000 Wastewater Collection  System Rehabilitation /  Augmentation Project 24  Combined with Project 25 and 26 (WC‐12001; WC‐13001), this project  replaced and/or rehabilitated approximately 42,398 linear feet of sanitary  sewer mains of various sizes, 779 sewer laterals, and 121 sewer manholes.   Construction Wastewater  Collection Utilities Fall 2017 3,119,806$               WC‐13001 Wastewater Collection  System Rehabilitation /  Augmentation Project 26  Combined with Project 25 and 26 (WC‐12001; WC‐13001), this project  replaced and/or rehabilitated approximately 42,398 linear feet of sanitary  sewer mains of various sizes, 779 sewer laterals, and 121 sewer manholes.   Construction Wastewater  Collection Utilities Fall 2017 3,361,118$               PG‐13003 Golf Reconfiguration and  Baylands Athletic Center  Improvements  This project completed the rehabilitation of the Palo Alto Municipal Golf  Course, including  a new layout for the course, new prefabricated restroom,  new water‐saving turf and irrigation system, and rebranded the course as the  Baylands Golf Links. Construction Parks and Open  Space Public Works Fall 2017 13,675,177$            GS‐11000 Gas Main Replacement –  Project 21 This project combined with GWR 19B & GMR 20 and replaced ABS gas mains  and services.  Construction Gas Utilities Winter 2017 2,364,937$               3 Attachment A List of Completed Projects CIP #Project Name Project Description Project Type Fund Source Department Season  Completed Year  Completed Total Project  Budget ** WS‐11000 Water Main Replacement –  Project 25  This project provided installation of approximately 11,869 linear feet of new  High Density Polyethylene (HDPE) water mains, 232 new HDPE water services,  and 15 new fire hydrants within the City limits.  Construction Water Utilities Winter 2017 5,445,069$               WS‐15004 Water System Master Plan  The 2015 Water System Master Plan identified present capital improvements  and replacement rates required to ensure optimal reliability levels of service  to the existing distribution and transmission systems.  Study Water Utilities Spring 2017 500,000$                  WC‐10002 Wastewater Collection  System Rehabilitation /  Augmentation Project 23  Combined with Project 22 (WC‐09001).  This project replaced and/or  rehabilitated approximately 33,497 linear feet of sanitary sewer mains of  various sizes, 554 sewer laterals, and 102 sewer manholes.   Construction Wastewater  Collection Utilities Winter 2017 1,272,289$               EL‐10009 Street Light System  Street  Light System Conversion  Project  This project converted HPS streetlights to LED and the conversion of  approximately 4500 cobrahead streetlight fixtures.  Construction Electric Utilities Spring 2017 696,918$                  EL‐13006 Sand Hill / Quarry 12kV  InterTie  This project installed new wire to connect circuits QR‐24 and QR‐27 in the  Sand Hill/Quarry area. Construction Electric Utilities Winter 2017 208,648$                  EL‐15001 Electric Substation Battery  Replacement This project replaced the batteries in all nine of the City's electric substations. Construction Electric Utilities Winter 2017 400,000$                  PG‐13001 Stanford/Palo Alto Playing  Fields Soccer Turf  Replacement  This project replaced the synthetic turf at the Stanford/Palo Alto Playing  Fields. Construction Parks and Open  Space Community  Services Fall 2016 1,499,979$               PG‐09003 Park Maintenance Shop  Remodel  This project renovated and remodeled the Parks maintenance shop for safety  and efficienciency upgrades.Construction Parks and Open  Space Community  Services Summer 2016 94,419$                    PE‐12017 City Hall First Floor  Renovations This project installed new elevator control panels and replaced the gray‐ painted panels inside the elevators.Construction Buildings and  Facilities Public Works Summer 2016 3,974,963$               PE‐11012 Temporary Main Library This project created a temporary main Library to be used while the new one  was being constructed.Construction Buildings and  Facilities Public Works 156,254$                  4 Attachment A List of Completed Projects CIP #Project Name Project Description Project Type Fund Source Department Season  Completed Year  Completed Total Project  Budget ** PE‐15029 Baylands Nature  Interpretive Center Facility  Improvement  The project replaced decking, railings, structural framing members, exterior  wood flooring, and cabinetry, restroom reconfiguration, and provided  Americans with Disabilities Act (ADA) improvements.   Construction Buildings and  Facilities Public Works Spring 2017 889,452$                  PE‐13008 Bowden Park Improvements  This project improved the children’s playground and included park amenity  upgrades such as new playground equipment, a new retaining wall, surfacing  and pathway upgrades, planting restoration and irrigation renovations, and  replaced of damaged wood benches and the playground perimeter fence.   Construction Parks and Open  Space Community  Services Summer 2016 421,126$                  PE‐13020 Byxbee Park Trails This project provided trail and site amenities over the remaining area of the  landfill cap.  Construction Parks and Open  Space Public Works Fall 2016 334,607$                  PE‐17002 City Hall Floor 3 Remodel  This project improved the Utilities Department administrative offices on the  third floor of City Hall. It included new carpet, wall reconfiguration, a  kitchenette, cabinets, paint, soundproofing, office furniture, doors, and  associated building systems.  Construction Buildings and  Facilities Public Works Spring 2017 440,000$                  PE‐14015 Lucie Stern Buildings  Mechanical and Electrical  Upgrades – Phase 1  This project replaced and upgraded the mechanical, electrical, and fire/life  safety systems at Lucie Stern Children’s Theater, Lucie Stern Community  Theater, and Lucie Stern Community Center.   Construction Buildings and  Facilities Public Works Summer 2016 3,247,248$               PG‐12004 Sarah Wallis Park  Improvements  This project improved site amenities with new concrete pathways, replaced  old furnishings, and upgraded landscape with drought tolerant species. Construction Parks and Open  Space Community  Services Winter 2017 65,000$                    AP‐16003 Airport Perimeter Fence  This project replaced the perimeter fencing and gates surrounding the Palo  Alto Airport boundaries to prevent unauthorized access to the airport runway  in accordance with Federal and State standards.  Construction Airport Public Works Spring 2017 2,003,540$               SD‐11101 Channing Avenue/Lincoln  Avenue Storm Drain  Improvements  This project installed of 5,800 linear feet of 36‐inch to 60‐inch diameter storm  drain along Channing and Lincoln Avenues over three project phases to  increase drainage system capacity.   Construction Storm Drain Public Works Winter 2016 7,676,275$               GS‐14004 Gas Distribution System  Model  This project included the development, model installation, testing,  documentation, and staff training of a natural gas distribution system model.  Study Gas Utilities Summer 2016 149,500$                  AC‐14000 Art Center Auditorium  Audio, Visual and  Furnishings This project replaced outdated audio visual equipment and furnishings  following the auditorium’s use as a temporary library.  Construction Buildings and  Facilities Community  Services Winter 2016 150,000$                  5 Attachment A List of Completed Projects CIP #Project Name Project Description Project Type Fund Source Department Season  Completed Year  Completed Total Project  Budget ** PF‐15000 Rinconada Pool Locker  Room This project renovated the Rinconada Pool locker room including the  changing area, restrooms, and showers in the women's and men's locker  rooms.   Construction Buildings and  Facilities Public Works Winter 2016 464,433$                  PE‐13016 El Camino Park Restoration This project installed new athletic fields, synthetic turf, field lighting, fencing,  a new restroom, scorekeeper booth and storage buildings, an expanded  parking lot, new bike and pedestrian pathways, landscaping, benches, and  other amenities.   Construction Parks and Open  Space Community  Services Fall 2015 5,611,122$               148,168,489$         Notes: ** Final Project Actuals may be different from Total Project Budget amounts Grand Total 6 Attachment A City of Palo Alto (ID # 10913) City Council Staff Report Report Type: Consent Calendar Meeting Date: 3/2/2020 City of Palo Alto Page 1 Summary Title: Northwest County Recycled Water Strategic Plan Report Title: Acceptance of the Northwest County Recycled Water Strategic Plan Report From: City Manager Lead Department: Utilities Recommendation Staff and the Utilities Advisory Commission (UAC) recommend that Council accept the Northwest County Recycled Water Strategic Plan Report (Report). Executive Summary The Regional Water Quality Control Plant (RWQCP) is a local source of drought-proof, sustainable water, only a small fraction of which is currently being used for irrigation and toilet flushing. The Council-adopted Sustainability Implementation Plan (Council Report #8487) included direction to investigate expanded uses of this resource. To that end, in December 2016, Council approved a contract with RMC Water and Environment (now Woodard & Curran) for the development of the Northwest County Recycled Water Strategic Plan Report in collaboration with Valley Water (Council Report #7024). City staff from the Public Works and Utilities Departments worked closely with the consulting team and Valley Water to evaluate the most effective water reuse options within Palo Alto as well as within the RWQCP service area. The attached Northwest County Recycled Water Strategic Plan Report (Report) and Appendices contains a summary and ranking of the water reuse alternatives or “Concept Options” based on cost and non-cost criteria. No specific projects are recommended at this time. A Council- approved agreement with Valley Water and the City of Mountain View (Partnership Agreement) (Council Report #10627) gives Valley Water an option to acquire about half of the treated wastewater produced by the RWQCP, which would render some local water reuse options infeasible. Water reuse alternatives identified in the Report and compatible with the Partnership Agreement will be considered as part of an overall water resource portfolio in a 2020 Water Integrated Resource Plan. City of Palo Alto Page 2 Background Council Policy In November 2016 Council adopted the Sustainability and Climate Action Plan (S/CAP) Framework (Council Report #7304) including four water-specific goals, all of which have implications for water reuse: 1. Utilize the right water supply for the right use; 2. Ensure sufficient water quantity and quality; 3. Protect the Bay, other surface waters, and groundwater; and 4. Lead in sustainable water management. Two relevant strategies identified in the S/CAP are: 1. Verify ability to meet Palo Alto’s long-term water needs; and 2. Investigate all potential uses of recycled water. Palo Alto’s Current Potable Water Supply Palo Alto receives 100% of its potable water (about 11,000 AF per year or approximately 10 million gallons per day (MGD)) from the City and County of San Francisco’s Regional Water System (RWS), operated by the San Francisco Public Utilities Commission (SFPUC). About 85% of the supply on the RWS is from the Tuolumne River with the other 15% sourced from local reservoirs. The City of Palo Alto is subject to water supply reductions during droughts. Shortages are expected to become more frequent and more severe in the future as a result of climate change and other changes to the California water system. Description of the RWQCP Water Resource and Palo Alto’s Current non-potable Water Supply The RWQCP treats and discharges wastewater collected from the communities of Palo Alto, Mountain View, Stanford University, Los Altos, Los Altos Hills, and the East Palo Alto Sanitary District. In 2018, about 96% of the treated wastewater was discharged to the Lower South San Francisco Bay and about 4% was treated further to produce recycled water for non-potable reuse in Palo Alto and Mountain View. Most of the recycled water used in Palo Alto is for irrigation at the municipal golf course and Greer Park. An increase in the amount of recycled water used, particularly in Mountain View, is expected once a small salt removal facility is constructed at the RWQCP. The Concept Options identified in the Report assume the salt removal project is implemented. Treatment Options One of Palo Alto’s water-specific goals as outlined in the S/CAP is to utilize the right water supply for the right use. Recycled water can be used for various demands based on its level of treatment. Non-potable reuse, such as that for irrigation or toilet flushing, requires more treatment than wastewater that is treated for discharge to the Bay; similarly, potable reuse requires significantly more treatment than non-potable reuse to ensure public safety when ingesting the water. City of Palo Alto Page 3 Partnership Agreement to Advance Resilient Water Reuse Programs in Santa Clara County On November 18, 2019, Council approved a Partnership Agreement that gives Valley Water an option to acquire about half of the treated wastewater produced by the RWQCP. Valley Water has approximately 20 years to take delivery of the treated effluent which would likely be used in the county south of Mountain View. If Valley Water exercises the option to take delivery of the treated effluent, some of the concept options within the report will not be viable; these options are described below in Table 3. Previous UAC, Council and Community Feedback Water Reuse has been discussed publicly at the following meetings: • August 2018 UAC meeting: Discussed a business plan for expansion of Palo Alto’s non- potable reuse irrigation network. • October 2018 UAC meeting: Discussed wastewater reuse expansion opportunities • November 2018 Council (Council Report #9731): Study session on high-level wastewater reuse expansion opportunities. • April 2019 Community Engagement Event: Feedback solicited on water reuse opportunities • September 2019 UAC meeting: Discussed water reuse options and the Partnership Agreement with Valley Water • September 2019 Council meeting: Study session regarding water reuse opportunities and the Partnership Agreement with Valley Water • October 2019 Community Engagement Event: Provided information and answered questions regarding the Partnership Agreement with Valley Water. • November 2019 Council meeting: Council approved the Partnership Agreement with Valley Water Discussion Non-potable Reuse (NPR) Concept Options Non-potable reuse Concept Options included extensions of the current recycled water transmission system to various locations for toilet flushing, irrigation, and industrial process water demands within the RWQCP service area, including south Palo Alto, Los Altos, Los Altos Hills, Mountain View, and East Palo Alto. Concept Options evaluated specifically for Palo Alto were: • The Phase 3 Pipeline that would provide recycled water to south Palo Alto (Concept Option A1), and • The Phase 3 Pipeline expanded to provide recycled water to south Palo Alto and additional users in the Palo Alto foothills (Concept Options A2 and A3). Expansions to users in the Palo Alto foothills included pipeline extensions to users in Los Altos Hills (Concept Option A2) and Los Altos (Concept Option A3). City of Palo Alto Page 4 Satellite Non-potable Reuse Concept Option A satellite treatment Concept Option (Concept Option B1) was evaluated, consisting of a new wastewater treatment facility located in south Palo Alto that would collect and treat wastewater from the surrounding community to provide approximately 900 AFY of recycled water for non-potable reuse in adjacent facilities throughout south Palo Alto and Los Altos. The report suggests that satellite treatment is cost prohibitive. Indirect Potable Reuse (IPR) Concept Options Three indirect potable reuse Concept Options were evaluated; all consist of injecting purified wastewater into the aquifer below Palo Alto, extraction of that purified water mixed with groundwater, and blending with the Palo Alto potable water supply. IPR Concept Options would require a purification facility at the RWQCP, transmission pipeline, injection wells, and the routine use of groundwater. The IPR Concept Options differ in their pipeline alignments, amount of purified water injected, and whether or not the pipeline offers non-potable reuse connections. Because IPR requires very large capital investments in treatment, injection wells, and conveyance, IPR will not be viable if Valley Water exercises its option to take delivery of the treated effluent from the RWQCP. • Concept Option C1 involves using groundwater augmented with purified water for potable needs only. • Concept Options C2 and C3 combine indirect potable reuse with meeting non-potable reuse demands. Direct Potable Reuse (DPR) Concept Option Lastly, the Strategic Plan evaluated one Concept Option (D1) for direct potable reuse within Palo Alto. Concept Option D1 consists of a purification treatment plant, engineering storage, a short transmission pipeline, and injection of purified water directly into the Palo Alto potable water supply. DPR will not be viable if Valley Water exercises its option under the Partnership Agreement. The Report indicates that multiple water reuse opportunities are feasible for Palo Alto to meet both near-term and long-term water demands. Near-term opportunities, those that could be implemented within five years, include non-potable reuse program expansion projects and satellite treatment for non-potable reuse projects. In contrast, long-term opportunities that could be implemented include indirect potable reuse within 10-20 years and direct potable reuse implementation within 20-40 years. It should be noted that the opportunities are not all explicitly distinct from each other; it is possible to pursue a combination of near term and long- term opportunities. For example, non-potable reuse pipeline expansion Concept Options can be constructed in the near term while subsequent phases of potable reuse Concept Options can be planned and designed for future implementation. The Concept Options and cost estimates are summarized in Table 1; cost estimates represent the cost for individual Concept Options and do not account for any efficiency that may result from combining Concept Options. These preliminary cost estimates are offered to facilitate discussion of various project options. They are separate and distinct from a cost of service City of Palo Alto Page 5 study, which, if a project is selected for implementation, would determine the amount of project costs to be allocated system-wide and a constitutionally compliant recycled water rate. City of Palo Alto Page 6 Table 1: Northwest County Recycled Water Strategic Plan Concept Option Cost Estimatesa,b Concept Option Number Brief Description Project Yield (AFY) Capital Cost ($M) Operations & Maintenance Cost ($M/year) Unit Cost ($/AF) Non-potable Reuse (NPR) Concept Options A1 Phase 3 Pipeline serving south Palo Alto 800 $47.8 $0.3 $3,400 A2 Phase 3 Pipeline Extended to Foothills & Los Altos Hills 1,100 $63.0 $0.5 $3,400 A3 Phase 3 Pipeline Extended to Foothills & Los Altos 1,200 $85.1 $0.7 $4,000 A4 Mountain View Long Term Expansion Pipeline 200 $6.2 $0.1 $2,100 A5 Mountain View Long Term Expansion Pipeline Extended to Los Altos 900 $72.6 $0.4 $4,600 A6 East Palo Alto Pipeline 500 $20.7 $0.2 $2,400 Satellite Non-potable Reuse Concept Option B1 Serving south Palo Alto & Los Altos 900 $129.6 $1.4 $8,900 Indirect Potable Reuse (IPR) Concept Optionsc C1 IPR serving Palo Alto 5,900 $92.2 $14.8d $3,300 C2 IPR & NPR serving Palo Alto 6,100 $152.1 $16.9d $4,000 C3 IPR & NPR from Phase 3 Pipeline serving Palo Alto 5,900 $198.4 $15.8d $4,400 - Palo Alto Groundwater Usage without IPR 2,500 $37.7 $5.5d $3,000 Direct Potable Reuse Concept Option D1 DPR serving Palo Alto 5,300 $104.6 $8.0 $2,500 aFor comparison, SFPUC (imported water) is currently $1,948/AF and is projected to be $3,000/AF in 2030. bCost estimates are AACE Class 5 for a project definition of 0 – 2% and have an expected accuracy of -20 to 50%. Capital costs are amortized at 3% over 30 years. cProject yield for IPR Concept Options represents half purified water, half groundwater. dOperations and maintenance cost estimates include the Valley Water Groundwater Production Charge. Cost was not the only criteria considered in the evaluation. The Concept Options were scored on a variety of qualitative characteristics such as water supply resiliency, public acceptance and regulatory complexity. The rankings after weighting both cost and non-cost criteria are shown in Table 2. City of Palo Alto Page 7 Table 1: Ranking Considering Cost and Non-cost Evaluation Criteria Concept Option Viability with Partnership Agreement If Valley Water exercises its option to receive treated wastewater from the RWQCP, the capability for some Concept Options to be fully implemented is reduced while other Concept Options could be implemented in parallel with a transfer. Table 3 indicates which projects are and are not mutually exclusive with an effluent transfer to Valley Water. Generally, a transfer would not preclude non-potable reuse expansion projects. Indirect potable reuse requires expensive pipeline construction and, therefore, a significant amount of water for economies of scale, so those Concept Options would be excluded for the proposed 76-year term of the transfer. Direct potable reuse, on the other hand, could be developed on a pilot scale. City of Palo Alto Page 8 Table 3: Summary of Concept Option Viability with Effluent Transfer Concept Option Number Brief Description Project Yield (AFY) Unit Cost ($/AF) Implement in Addition to Treated Effluent Transfer A1 Phase 3 Pipeline serving south Palo Alto 800 $3,400 Yes A2 Phase 3 Pipeline Extended to Foothills & Los Altos Hills 1,100 $3,400 Yes A3 Phase 3 Pipeline Extended to Foothills & Los Altos 1,200 $4,000 Yes A4 Mountain View Long Term Expansion Pipeline 200 $2,100 Yes A5 Mountain View Long Term Expansion Pipeline Extended to Los Altos 900 $4,600 Yes A6 East Palo Alto Pipeline 500 $2,400 Yes B1 Serving south Palo Alto & Los Altos 900 $8,900 Yes C1 IPR serving Palo Alto 5,900 $3,300 No C2 IPR & NPR serving Palo Alto 6,100 $4,000 No C3 IPR & NPR from Phase 3 Pipeline serving Palo Alto 5,900 $4,400 No - Palo Alto Groundwater Usage without IPR 2,500 $3,000 Yes D1 DPR serving Palo Alto 5,300 $2,500 Small scale project possible but cost estimates may vary Next Steps The Concept Options will be evaluated within the context of a potable and non-potable water supply portfolio as part of a Water integrated Resources Plan. Staff intends to return to the UAC and Council with more information in 2020. Policy Implications While there is no recommendation to proceed with any specific project at this time, expanding the use of recycled water would be consistent with the Sustainability Climate Action Plan Framework (Council Report #7304) and the Sustainability Implementation Plan (Council Report #8487). City of Palo Alto Page 9 Community Engagement Palo Alto hosted a community meeting on April 30, 2019 to solicit input on the preliminary Strategic Plan results. Approximately 30 members of the public attended, and many attendees asked questions and made comments. During the meeting Palo Alto staff requested feedback on whether attendees were interested in expanded non-potable reuse and potable reuse options. Community members expressed interest in reducing reliance on imported water and enhancing water conservation and efficiency to save water for the environment. Community members also expressed concern with the use of the Measure E site for a Valley Water regional purification facility. The Strategic Plan was also discussed at the public meetings listed above. At the February 5 meeting, the Utilities Advisory Commission (UAC) voted 6-0; Scharff absent, to recommend Council accept the Northwest County Recycled Water Plan Report. UAC DRAFT excerpt minutes. Environmental Review Acceptance of the Northwest County Recycled Water Strategic Plan Report is not subject to review under the California Environmental Quality Act because it does not meet the definition of a project under Public Resources Code 21065. Attachments: • Attachment A: Recycled Water Strategic Plan Report • Attachment B: RWSPR Appendices Recycled Water Strategic Plan Report Northwest County Recycled Water Strategic Plan Interim Final Report* Prepared by: July 2019 *This report has yet to be accepted by Palo Alto City Council. Attachment A Recycled Water Strategic Plan Report Table of Contents FINAL July 2019 i Table of Contents Executive Summary ................................................................................................................... i Chapter 1 Introduction .........................................................................................................1-1 1.1 Background and Purpose of the Recycled Water Strategic Plan ............................1-1 1.2 Organization of this Report ....................................................................................1-4 1.3 Study Area.............................................................................................................1-4 Chapter 2 Recycled Water Demand Assessment ...............................................................2-1 2.1 Recycled Water Uses ............................................................................................2-1 2.2 Non-Potable Uses .................................................................................................2-3 2.3 Indirect Potable Uses ............................................................................................2-7 2.4 Direct Potable Uses ...............................................................................................2-8 2.5 Other Potential Uses Outside of Study Area ..........................................................2-9 Chapter 3 Strategic Plan Concept Options .........................................................................3-1 3.1 Summary of Approach ...........................................................................................3-1 3.2 Concept Option Development Process ..................................................................3-1 3.3 Concept Options A: NPR from RWQCP ................................................................3-5 3.4 Concept Option B: NPR from Satellite Location ................................................... 3-21 3.5 Concept Option C: IPR Concept Options ............................................................. 3-24 3.6 Concept Option D: DPR Concept Options ........................................................... 3-33 Chapter 4 Strategic Plan Concept Options Evaluation ......................................................4-1 4.1 Approach for Concept Options Evaluation .............................................................4-1 4.2 Basis of Preliminary Cost Estimate ........................................................................4-1 4.3 Engineer’s Opinion of Probable Cost Summary .....................................................4-6 4.4 Concept Option Evaluation Non-Cost Criteria ........................................................4-7 4.5 Concept Option Scoring ....................................................................................... 4-18 Chapter 5 Conclusions and Next Steps ..............................................................................5-1 5.1 Conclusions ...........................................................................................................5-1 5.2 Next Steps .............................................................................................................5-4 References .............................................................................................................................5-6 Appendices Appendix A - Non-Potable Demand Assessment Methodology ................................... A Appendix B - Recycled Water Customers and Demand Estimates [Confidential – Not Included] B Appendix C - Potential Uses Considered but Not Included .......................................... C Appendix D - Opinions of Probable Costs ..................................................................... D Appendix E - Concept Option Variations [Confidential – Not Included] ...................... E Appendix F - Cost Per Unit of Water Analyses for Palo Alto, Cal Water, Purissima Hills Water District and East Palo Alto [Confidential – Not Included] .................................. F Appendix G - Funding Matrix .......................................................................................... G Recycled Water Strategic Plan Report Table of Contents FINAL July 2019 ii Figures Figure ES-0-1: Potential recycled water uses for both potable and non-potable reuse applications ......................................................................................................................... ii Figure 1-1: Study Area ............................................................................................................ 1-1 Figure 1-2: RWQCP Existing Water Reuse System ................................................................ 1-2 Figure 1-3: Proposed Phase 3 Recycled Water Project ........................................................... 1-3 Figure 1-4: Water Retailers (names indicated in black text)..................................................... 1-6 Figure 2-1: Overview of Non-Potable and Potable Reuse Types ............................................. 2-1 Figure 2-2: Overview of Non-Potable and Potable Reuse Types included in this Recycled Water Strategic Plan .................................................................................................................. 2-2 Figure 2-3: Potential Non-Potable Users in Study Area ........................................................... 2-6 Figure 3-1: Summary of Overall Approach to Strategic Plan Concept Option Development and Assessment ..................................................................................................................... 3-1 Figure 3-2: Alignment for Concept Option A1, NPR Palo Alto Phase 3 ................................... 3-7 Figure 3-3: Alignment for Concept Option A2, NPR Palo Alto Phase 3 Extended to Foothills .. 3-9 Figure 3-4: Alignment for Concept Option A3, NPR Palo Alto Phase 3 Extended to Foothills and Los Altos ....................................................................................................................... 3-12 Figure 3-5: Alignment for Concept Option A4, NPR Mountain View ...................................... 3-15 Figure 3-6: Alignment for Concept Option A5, NPR Mountain View Extended to Los Altos ... 3-18 Figure 3-7: Alignment for Concept Option A6, NPR East Palo Alto and Menlo Park .............. 3-20 Figure 3-8: Alignment for Concept Option B1, NPR Satellite Treatment Plant ....................... 3-23 Figure 3-9: Alignment for Concept Option C1, Palo Alto Dedicated IPR ................................ 3-26 Figure 3-10: Alignment for Concept Option C2, Palo Alto IPR with NPR ............................... 3-29 Figure 3-11: Alignment for Concept Option C3, Palo Alto IPR and NPR from Phase 3 Pipeline 3- 32 Figure 3-12: Alignment for Concept Option D1, Palo Alto Dedicated DPR ............................ 3-35 Tables Table ES-0-1: Summary of Demand Potential by Type of Water Reuse ...................................... ii Table ES-0-2: Summary of Concept Options including Yield, Engineer’s Opinion of Probable Capital and O&M Costs ...................................................................................................... iv Table ES-0-3: Ranking of Concept Options by Cost .................................................................... v Table ES-0-4: Ranking of Concept Options by Non-Cost Criteria ................................................ v Table ES-0-5: Ranking Considering Cost and Non-Cost Evaluation Criteria .............................. vi Table 1-1: Summary of Water Supply Sources and Needs...................................................... 1-8 Table 2-1: Summary of Recycled Water Interests ................................................................... 2-3 Table 2-2: Demand Peaking Factors ....................................................................................... 2-5 Table 2-3: Non-Potable Demand Summary ............................................................................. 2-5 Table 2-4: IPR Demand and Groundwater Project Yield Summary ......................................... 2-8 Table 2-5: DPR Demand Estimate Summary .......................................................................... 2-9 Table 3-1: Hydraulic Criteria .................................................................................................... 3-3 Table 3-2: Maximum AWTS Sizes Without Requiring Reverse Osmosis Concentrate Treatment ........................................................................................................................................ 3-5 Table 3-3: Demand and Facility Summary for Concept Option A1, NPR Palo Alto Phase 3 .... 3-6 Table 3-4: Demand and Facilities Summary for Concept Option A2, NPR Palo Alto Phase 3 Extended to Foothills ....................................................................................................... 3-8 Table 3-5: Demand and Facilities Summary for Concept Option A3, NPR Palo Alto Phase 3 Extended to Foothills and Los Altos .............................................................................. 3-11 Table 3-6: Demand and Facilities Summary for Concept Option A4, Mountain View ............. 3-14 Recycled Water Strategic Plan Report Table of Contents FINAL July 2019 iii Table 3-7: Demand and Facilities Summary of Concept Option A5, NPR Mountain View Extended to Los Altos ................................................................................................... 3-17 Table 3-8: Demand and Facilities Summary for Concept Option A6, NPR East Palo Alto and Menlo Park .................................................................................................................... 3-19 Table 3-9: Demand and Facilities Summary for Concept Option B1, NPR Satellite Treatment Plant .............................................................................................................................. 3-22 Table 3-10: Demand and Facilities Summary for Concept Option C1, Palo Alto Dedicated IPR 3- 24 Table 3-11: Demand and Facilities Summary for Concept Option C2, Palo Alto IPR with NPR . 3- 28 Table 3-12: Demand and Facilities Summary for Concept Option C3, Palo Alto IPR and NPR from Phase 3 Pipeline ................................................................................................... 3-31 Table 3-13: Demand and Facilities Summary for Concept Option D1, Palo Alto Dedicated DPR ...................................................................................................................................... 3-34 Table 4-1: Unit Cost of HDPE Pipe ......................................................................................... 4-4 Table 4-2: Special Crossing Unit Costs ................................................................................... 4-5 Table 4-3: Summary of Engineer’s Opinion of Probable Capital and O&M Costs .................... 4-7 Table 4-4: Concept Option Scores for Water Supply Resiliency .............................................. 4-8 Table 4-5: Concept Option Scores for Public Acceptance ....................................................... 4-9 Table 4-6: Concept Option Scores for Adaptability ................................................................ 4-10 Table 4-7: Concept Option Scores for Level of Agency Coordination .................................... 4-11 Table 4-8: Concept Option Scores for Level of Customer Retrofits/Coordination .................. 4-12 Table 4-9: Concept Option Scores for Regulatory Complexity ............................................... 4-13 Table 4-10: Concept Option Scores for Institutional Complexity ............................................ 4-14 Table 4-11: Concept Option Scores for Regional Perspective ............................................... 4-16 Table 4-12: Concept Option Scores for Social and Economic Benefit ................................... 4-17 Table 4-13: Concept Option Scores for Environmental Benefit .............................................. 4-18 Table 4-14: Non-Cost Criteria Weighting ............................................................................... 4-19 Table 4-15: Non-Cost Ranking .............................................................................................. 4-19 Table 4-16: Ranking of Concept Options by Cost .................................................................. 4-20 Table 4-17: Combined Weighting Including both Cost and Non-Cost Criteria ........................ 4-21 Table 4-18: Combined Ranking Considering Cost at 30% of the Score ................................. 4-21 Table 5-1: Summary of Demand Potential by Type of Water Reuse ........................................ 5-1 Table 5-2: Summary of Engineer’s Opinion of Probable Capital and O&M Costs .................... 5-1 Table 5-3: Recommended Next Steps for Type of Opportunity ............................................... 5-5 Recycled Water Strategic Plan Report Table of Contents FINAL July 2019 iv Abbreviations AACE Association for the Advancement of Cost Engineering AF Acre feet AFY Acre feet per year AOP Advanced oxidation process AWPF Advanced water purification facility [for potable reuse] AWTS Advanced water treatment system [for enhanced recycled water] CCI Construction cost index CIP Cast iron pipe CIPP Cured in place pipe DDW Division of Drinking Water DIP Ductile iron pipe DPR Direct potable reuse ENR Engineering News Record EPASD East Palo Alto Sanitary District ESDC Engineering services during construction FAT Full advanced treatment gpm Gallons per minute HDD Horizonal directional drill HGL Hydraulic grade line HP Horsepower ID Internal diameter IPR Indirect potable reuse LF Linear feet MF Membrane filtration MGD Million gallons per day MV Mountain View NPR Non-potable reuse OD Outside diameter O&M Operations and maintenance PHWD Purissima Hills Water District psi Pressure per square inch PTGAB Pilot tube guided auger boring RO Reverse osmosis Recycled Water Strategic Plan Report Table of Contents FINAL July 2019 v RWQCP Regional Water Quality Control Plant RWMP Recycled Water Master Plan SFPUC San Francisco Public Utilities Commission SWRCB State Water Resources Control Board TDS Total dissolved solids UV Ultraviolet UWMP Urban Water Management Plan WBSD West Bay Sanitary District Recycled Water Strategic Plan Report Executive Summary FINAL July 2019 i Executive Summary The Northwest County Recycled Water Strategic Plan (Strategic Plan) was undertaken by the City of Palo Alto, in collaboration with Valley Water, to assess drought-proof recycled water expansion opportunities throughout the Palo Alto Regional Water Quality Control Plant (RWQCP) service area (i.e., Palo Alto, Mountain View, Los Altos, Los Altos Hills, Stanford University, and East Palo Alto Sanitary District) including additional portions of East Palo Alto and Menlo Park not serviced by the East Palo Alto Sanitary District. To aid in future decisions regarding RWQCP recycled water expansion and commitments, Palo Alto, as the owner and operator of the RWQCP, saw a need to assess other RWQCP Partner Agencies’ interests in recycled water. The RWQCP is interested in expanding the recycled water program to help move itself towards becoming a resource recovery facility by providing a drought-proof, sustainable, local water supply, and for recycled water’s potential to help meet future regulatory actions pertaining to discharge limitations. Palo Alto, similar to many of the other RWQCP Partner Agencies’, is subject to water supply reductions during droughts. Shortages are expected to become more frequent and more severe in the future as a result of climate change and other changes to the California water system. Both imported water and groundwater are at risk during dry periods. In order to understand how to best expand the RWQCP recycled water program, a comprehensive and holistic evaluation was needed to reassess the service area needs and acceptance given changes in water supplies and governing regulations. The purpose of the Strategic Plan is to evaluate potential additional uses of recycled water Study Area through the year 2030, to identify recycled water concepts that look beyond individual agency boundaries, and to evaluate previously recommended recycled water projects with new options developed through this Strategic Plan. Types of Water Reuse Considered The Strategic Plan builds off of the work from the 1992 Recycled Water Master Plan (RWMP) to incorporate options for new and different kinds of reuse. Recycled water can be used for various demands based on its level of treatment. Non-potable reuse, such as that for irrigation or toilet flushing, requires more treatment than wastewater that is treated for discharge to the Bay. Similarly, potable reuse requires significantly more treatment than non-potable reuse to ensure public safety when ingesting the water. Recycled Water Strategic Plan Report Executive Summary FINAL July 2019 ii Figure ES-0-1: Potential recycled water uses for both potable and non-potable reuse applications Note: City of Palo Alto does not have an existing Drinking Water Treatment Plant The potential reuse demand for the various types of water reuse considered in the Strategic Plan is summarized in Table ES 0-1. Table ES-0-1: Summary of Demand Potential by Type of Water Reuse Type of Reuse Annual Average Demand Comments Non-Potable Reuse 4,456 AFY Throughout RWQCP service area, not one specific concept Indirect Potable Reuse 2,800 / 5,900 AFY For City of Palo Alto only Direct Potable Reuse 5,300 AFY For City of Palo Alto only Note: IPR annual average demand reflects volume recharged to the groundwater basin and volume extracted from the groundwater basin Results of Concept Options Development and Analysis Through collaborative development with the RWQCP Partner Agencies, water retailers, and neighboring agencies, 11 concept options (i.e., recycled water expansion opportunities) were developed for detailed analysis in the Strategic Plan. In summary, the concept options could provide between 200 and 6,100 AFY of water supplies at an annual unit cost ranging from $2,100 per AF to $8,900 per AF (see Table ES 0-2). For comparison with other non-water reuse water supplies, potable water from SFPUC is projected Recycled Water Strategic Plan Report Executive Summary FINAL July 2019 iii to cost $3,000 per AF in 2030, and groundwater, including wellhead treatment and the Valley Water groundwater pumping charge, is projected to cost $3,000 per AF. 1 To provide a basis for comparison, cost estimates reflect the incremental cost of pursuing each concept option. For the NPR options, the cost estimates include distribution to the end-user. Consistent with the incremental cost methodology, this report does not estimate the total cost of providing the IPR or DPR water to end-users as Palo Alto’s existing potable water distribution system costs are not included in the estimates. The concept options were selected based on cost effectiveness and applicability to solving regional water supply issues. The concept options are divided into four categories:  “A” series for centralized non-potable reuse (NPR) concept options  “B” concept option for NPR from satellite treatment  “C” series for indirect potable reuse (IPR) concept options  “D” concept option for direct potable reuse (DPR) The concept options were evaluated for capital and operational costs and scored on a variety of non-cost criteria including water supply resiliency, public acceptance, adaptability, regulatory complexity, and regional perspective. Concept option ranking by cost is included in Table ES 0-3. Concept option ranking by non-cost criteria is included in Table ES 0-4. The summary of weighted ranking of concept options including both cost and non-cost criteria is included in Table ES 0-5. NPR concept options evaluated multiple pipeline extensions throughout the Study Area. Concept Option A2, NPR Palo Alto Phase 3 Extended to Foothills ranks highly because it delivers among the largest volumes of the NPR concept options and strikes a balance between offering regional benefits while requiring few agencies to implement and operate. NPR is challenging for Los Altos and Los Altos Hills because their customers are located furthest from the RWQCP and existing recycled water infrastructure and coordination with the Partner Agencies upstream would be needed. Between the two options to serve Los Altos – Concept Option A3, NPR Palo Alto Phase 3 Extended to Foothills and Los Altos (which builds off of Concept Option A1) and Concept Option A5, NPR Mountain View Extended to Los Altos (which builds off of Concept Option A4) – Concept Option A3 is preferred due to preliminary costs. Between the two options to serve Los Altos Hills - Concept Option A2, NPR Palo Alto Phase 3 Extended to Foothills and Concept Option A3, NPR Palo Alto Phase 3 Extended to Foothills and Los Altos – Concept Option A2 is ranked higher. Concept Option A4, NPR Mountain View, was previously recommended in the 2014 Mountain View Recycled Water Feasibility Study, due to its low cost and average non-cost score, was determined to be a reasonable investment compared to the other concept options explored in the Strategic Plan. Currently (July 2019), Mountain View is in the process of updating the 2014 Recycled Water Feasibility Study focusing on extending their existing system to Google and NASA, and across Highway 101; this update may alter the facility needs and costs for Concept Option A4. Concept Option A6, NPR East Palo Alto, is low cost, and the average non-cost score make it a reasonable investment compared to other concept options. The IPR concept options are attractive due to the large amount of water supplied combined with greater ability to repurpose the infrastructure and only one agency required to implement and operate. 1 These are the estimated costs to the City of Palo Alto of purchasing SFPUC water or pumping groundwater and these cost estimates do not include distribution system costs. Recycled Water Strategic Plan Report Executive Summary FINAL July 2019 iv Concept Option D1, Palo Alto Dedicated DPR delivers the greatest volume of recycled water out of all the concept options, requires only one agency to implement and operate, and does not require infrastructure changes by customers. The notable drawback of Concept Option D1 is the implementation process. Given the lack of established regulations, pursuing a DPR project at this time would require more effort by Palo Alto to establish a process that regulatory agencies will permit. Even when DPR regulations are established, the hurdles that agencies must clear to permit DPR projects will likely be more challenging compared to other recycled water projects. Another challenge will be hiring/training staff to operate the new treatment facilities. The presumed benefit of Concept Option B1, NPR Satellite Treatment Plant was the ability to create a compact recycled water distribution system closer to the customer locations rather than requiring an extensive pipe network extending from the RWQCP. However, in this setting, the preferred location for diverting flows from the sewer system does not correspond to the areas of potential recycled water nor is there land available in the immediate vicinity of the diversion point to site a satellite treatment facility that is cost effective. Table ES-0-2: Summary of Concept Options including Yield, Engineer’s Opinion of Probable Capital and O&M Costs Concept Option Yield (AFY) Capital Cost O&M ($/Y) Unit Cost ($/AF) A1: NPR Palo Alto Phase 3 800 $47.8M $0.29M $3,400 A2: NPR Palo Alto Phase 3 Extended to Foothills 1,100 $63.0M $0.52M $3,400 A3: NPR Palo Alto Phase 3 Extended to Foothills and Los Altos 1,200 $85.1M $0.68M $4,000 A4: NPR Mountain View 200 $6.2M $0.1M $2,100 A5: NPR Mountain View Extended to Los Altos 900 $72.6M $0.4M $4,600 A6: NPR East Palo Alto 500 $20.7M $0.15M $2,400 B1: NPR Satellite Treatment Plant 900 $129.6M $1.37M $8,900 C1: Palo Alto Dedicated IPR 5,900 $92.2M $14.83M $3,300 C2: Palo Alto IPR with NPR 6,100 $152.1M $16.92M $4,000 C3: Palo Alto IPR and NPR from Phase 3 Pipeline 5,900 $198.4M $15.78M $4,400 D1: Palo Alto Dedicated DPR 5,300 $104.6M $8.01M $2,500 Note: Costs based on an ENR CCI San Francisco index for June 2018 of 12,015. Costs are consistent with a Class 5 estimate (-20% to +50%) (AACE 2008). Capital costs are amortized at 3% over 30 years. Recycled Water Strategic Plan Report Executive Summary FINAL July 2019 v Table ES-0-3: Ranking of Concept Options by Cost Rank Score Concept Option 1 5 (<$3,500/AF) A1: NPR Palo Alto Phase 3 A2: NPR Palo Alto Phase 3 Extended to Foothills A4: NPR Mountain View A6: NPR East Palo Alto C1: Palo Alto Dedicated IPR D1: Palo Alto Dedicated DPR 2 3 (>$4,000/AF and <$4,500/AF) A3: NPR Palo Alto Phase 3 Extended to Foothills and Los Altos C2: Palo Alto IPR with NPR C3: Palo Alto IPR and NPR from Phase 3 Pipeline 3 2 (>$4,500/AF and <$5,000/AF) A5: NPR Mountain View Extended to Los Altos 4 1 (>$5,000/AF) B1: NPR Satellite Treatment Plant Table ES-0-4: Ranking of Concept Options by Non-Cost Criteria Rank Score (Maximum = 500) Concept Option 1 291 A2: NPR Palo Alto Phase 3 Extended to Foothills 2 290 C1: Palo Alto Dedicated IPR 3 289 C2: Palo Alto IPR with NPR 289 C3: Palo Alto IPR and NPR from Phase 3 Pipeline 4 286 A5: NPR Mountain View Extended to Los Altos 5 285 A1: NPR Palo Alto Phase 3 285 A4: NPR Mountain View 285 A6: NPR East Palo Alto 6 282 A3: NPR Palo Alto Phase 3 Extended to Foothills and Los Altos 7 271 B1: NPR Satellite Treatment Plant 8 269 D1: Palo Alto Dedicated DPR Recycled Water Strategic Plan Report Executive Summary FINAL July 2019 vi Table ES-0-5: Ranking Considering Cost and Non-Cost Evaluation Criteria Rank Concept Option 1 A2: NPR Palo Alto Phase 3 Extended to Foothills C1: Palo Alto Dedicated IPR 2 A1: NPR Palo Alto Phase 3 A4: NPR Mountain View A6: NPR East Palo Alto 3 D1: Palo Alto Dedicated DPR 4 C2: Palo Alto IPR with NPR 5 A3: NPR Palo Alto Phase 3 Extended to Foothills and Los Altos 6 C3: Palo Alto IPR and NPR from Phase 3 Pipeline 7 A5: NPR Mountain View Extended to Los Altos 8 B1: NPR Satellite Treatment Plant Next Steps Results of the Strategic Plan indicate that there are multiple water reuse expansion opportunities within the Study Area that agencies could pursue, including NPR, IPR, and DPR. Next steps would include undertaking a variety of activities including:  Facilities planning  Funding and financing  Inter-agency agreements  Environmental documentation  Reuse permitting  Customer and public outreach Note that one of the options being considered by Valley Water’s Countywide Plan, currently under development, is export of water from the RWQCP for potable reuse further south in Santa Clara County, where Valley Water operates recharge ponds. Depending on the outcomes of the Countywide Plan, some of the Concept Options described in this Report may not implementable due to limited supply of recycled water; further evaluation for joint implementation may be required as a next step. Recycled Water Strategic Plan Report Chapter 1 Introduction FINAL July 2019 1-1 Chapter 1 Introduction 1.1 Background and Purpose of the Recycled Water Strategic Plan The Northwest County Recycled Water Strategic Plan (Strategic Plan) was undertaken by the City of Palo Alto (Palo Alto), in collaboration with Valley Water (formerly the Santa Clara Valley Water District), to assess recycled water expansion opportunities throughout the Palo Alto Regional Water Quality Control Plant (RWQCP) service area (i.e., Palo Alto, Mountain View, Los Altos, Los Altos Hills, Stanford University, and East Palo Alto Sanitary District) including additional portions of East Palo Alto and Menlo Park not serviced by the East Palo Alto Sanitary District. The cities of Palo Alto, Mountain View, Los Altos, the town of Los Altos Hills, East Palo Alto Sanitary District (EPASD), and Stanford University are known as the RWQCP Partner Agencies. Figure 1-1 shows the boundaries of the RWQCP service area as well as each of the RWQCP Partner Agencies. Figure 1-1: Study Area Source: City of Palo Alto, 2017 Recycled Water Strategic Plan Report Chapter 1 Introduction FINAL July 2019 1-2 The last comprehensive recycled water planning study for the RWQCP service area was the 1992 Recycled Water Master Plan (RWMP). Since the completion of the RWMP, Palo Alto and Mountain View implemented Phase 2 of the RWQCP’s Regional Recycled Water System, which replaced the deteriorated non-potable recycled water pipeline from Phase 1 and expanded non-potable recycled water service to the Shoreline area of Mountain View (see Figure 1-2). Both Palo Alto and Mountain View have completed individual planning studies looking at opportunities to expand recycled water in their respective service areas. Figure 1-2: RWQCP Existing Water Reuse System In 2008, Palo Alto completed a Recycled Water Facility Plan that recommended a Phase 3 project. The Phase 3 project would expand the non-potable recycled water system to South Palo Alto to serve landscape irrigation demands and potential dual-plumbed systems mainly within the Stanford Research Park area (see Figure 1-3). In the time that it took to certify the Program Environmental Impact Report for the Phase 3 project (2015), the recycled water setting changed. Notably, prolonged drought conditions and notable water shortages in southern California has moved forward public acceptance of potable reuse options and policy makers have begun to question the expansion of non-potable reuse (NPR) systems over long-term potable reuse options, including indirect potable reuse (IPR) and direct potable reuse (DPR). Spurred by the recent drought, the State Water Resources Control Board (SWRCB) Division of Drinking Water (DDW) adopted a final version of the Groundwater Replenishments Regulations in 2014, providing a formal pathway for permitting IPR through groundwater augmentation. Regulations for permitting surface water augmentation, another type of IPR, were adopted in 2018. With the passage of Assembly Bill 574, the SWRCB is required to develop regulations for potable reuse through raw water Recycled Water Strategic Plan Report Chapter 1 Introduction FINAL July 2019 1-3 augmentation, a form of DPR, by 2023. While there is not yet a timeline established for development of potable reuse through treated drinking water augmentation, another form of DPR, several California agencies have begun to investigate this option. Accordingly, this Strategic Plan considers NPR, IPR, and DPR opportunities. Figure 1-3: Proposed Phase 3 Recycled Water Project Source: Woodard & Curran, 2018, Preliminary Design for Phase 3 Recycled Water Distribution System Final Report Recycled Water Strategic Plan Report Chapter 1 Introduction FINAL July 2019 1-4 In 2014, Mountain View completed a Recycled Water Feasibility Study that recommended near-term extension of recycled water into the NASA Ames Research Center and a longer-term extension south of US-101. These extensions would serve landscape irrigation demands and dual-plumbed systems. Currently (July 2019), Mountain View is in the process of updating the 2014 RWFS focusing on extending their existing system to Google and NASA, and across Highway 101. To aid in future decisions regarding RWQCP recycled water expansion and commitments, Palo Alto, as the owner and operator of the RWQCP, saw a need to assess other RWQCP Partner Agencies’ interests in recycled water. The RWQCP is interested in expanding the recycled water program to help move itself towards becoming a resource recovery facility by providing a drought-proof, sustainable, local water supply, and for recycled water’s potential to help meet future regulatory actions pertaining to discharge limitations. In order to understand how to best expand the program, a comprehensive and holistic evaluation was needed to reassess the service area needs and acceptance given changes in water supplies and governing regulations. Valley Water is also interested in understanding how flows from the RWQCP can support countywide water supply planning and its goal of using recycled and purified water to meet at least 10% (24,000 AFY) of the total county water demand by 2025. Valley Water recently completed a Pure Water Program planning study that looked at opportunities to implement potable reuse projects using water from the San Jose/Santa Clara Regional Wastewater Facility and the Sunnyvale Water Pollution Control Plant. Valley Water is now developing a Countywide Water Reuse Master Plan to understand recycled water opportunities, including NPR, IPR, and DPR, throughout Santa Clara County. The information from this Strategic Plan will support the Countywide Water Reuse Master Plan and help Valley Water identify wastewater flows that may be available for export from the RWQCP service area to other parts of the county. The purpose of the Strategic Plan is to evaluate potential additional uses of recycled water within the RWQCP service area through the year 2030, to identify recycled water expansion concept options that look beyond individual agency boundaries, and to evaluate previously recommended recycled water projects with new expansion options developed through this Strategic Plan. 1.2 Organization of this Report This report is organized as follows:  Chapter 1: Background and Purpose of the Strategic Plan –Background on previous recycled water projects in the Study Area and a description of the wastewater and water agencies in the Study Area  Chapter 2: Recycled Water Demand Assessment –Description of allowable recycled water uses and the Study Area market assessment  Chapter 3: Project Concept Options –Description of the different recycled water concept options developed under this Strategic Plan  Chapter 4: Strategic Plan Concept Options Evaluation –Summary of the evaluation of the concept options based on cost and non-cost criteria  Chapter 5: Conclusions and Next Steps –Summary of the conclusions on the Strategic Plan concept options and next steps to be undertaken if the concept options are to move into implementation 1.3 Study Area The Study Area for the Strategic Plan encompasses the RWQCP service area, shown in Figure 1-1, as well as additional areas in the Cities of East Palo Alto and Menlo Park not served by EPASD. Recycled Water Strategic Plan Report Chapter 1 Introduction FINAL July 2019 1-5 EPASD, which is one of the RWQCP Partner Agencies, covers the majority of East Palo Alto and a small section of Menlo Park. The portions of these cities not served by EPASD are served by West Bay Sanitary District (WBSD), which is a tributary agency to Silicon Valley Clean Water in Redwood City. Currently recycled water infrastructure does not exist in these areas, although both WBSD and Redwood City have looked at opportunities to provide recycled water to these areas. Given the proximity of the RWQCP to East Palo Alto and Menlo Park and water supply shortfalls that existed in these communities when this project was initiated, the Study Area for this project was extended beyond the RWQCP service boundary to include the entirety of East Palo Alto and the northern portion of the Menlo Park Municipal Water’s service area. 1.3.1 Water Supply Agencies The Study Area is served by two water wholesalers and a number of retailers (Figure 1-4 and Table 1-1). The wholesalers are Valley Water and San Francisco Public Utilities Commission (SFPUC), and the retailers are Palo Alto, Mountain View, California Water Service Company (Cal Water), Purissima Hills Water District (PHWD), East Palo Alto, Stanford University, Palo Alto Park Mutual Water Company, O’Connor Tract Co-operative Water Company, Federal Government (NASA Ames), and Menlo Park Municipal Water. Recycled Water Strategic Plan Report Chapter 1 Introduction FINAL July 2019 1-6 Figure 1-4: Water Retailers (names indicated in black text) Valley Water distributes potable water to portions of Santa Clara County, which encompasses all but the EPASD portion of the RWQCP service area. Valley Water sells water to 13 retailers including 2 retailers in the Study Area – Mountain View and Cal Water. Valley Water is a special district that was formed to address groundwater overdraft in the county. The water delivered to retailers is a combination of local surface water, imported water from the State Water Project and Central Valley Project and water transfers. As the Groundwater Sustainability Agency for the Santa Clara and Llagas subbasins, Valley Water manages the groundwater in Santa Clara County. Valley Water diverts local surface water as well as imported water to recharge facilities to augment natural groundwater recharge. Recycled Water Strategic Plan Report Chapter 1 Introduction FINAL July 2019 1-7 SFPUC is the water retailer for San Francisco as well as wholesaler to 26 agencies in the San Francisco Bay Area including 6 retailers in the Study Area – Palo Alto, Mountain View, PHWD, East Palo Alto, Stanford University, and Menlo Park Municipal Water. SFPUC’s primary source of water is the Hetch Hetchy watershed of the Tuolumne River. The Tuolumne River is the largest tributary to the San Joaquin River, which feeds into the Sacramento-San Joaquin Bay-Delta. In addition to water purchased from Valley Water and SFPUC, the majority of the Study Area retailers either utilize groundwater or have plans to develop groundwater supplies to meet demand projections. Cal Water and Stanford University currently use groundwater to meet demands. Palo Alto Park Mutual Water Company and the O’Connor Tract Co-operative Water Company rely solely on groundwater. Palo Alto and Mountain View maintain groundwater wells for emergency supply. East Palo Alto has plans to rehabilitate an existing well and develop an additional well for emergency and potential future water supply. Menlo Park Municipal Water has plans to develop groundwater as an emergency supply as well. Stanford University is unique among the water retailers in this area in that its water supplies include local surface water and captured stormwater, which it uses to meet non-potable demands. Groundwater is used to supplement this non-potable system. A review of retailers’ 2015 Urban Water Management Plans (UWMPs) identified the demand imbalances described herein. Although the planning horizon for the Strategic Plan is through 2030, the water supply shortfalls summarized here go through the UWMPs’ planning horizon of 2040. In normal years, East Palo Alto projected a shortfall by 2040; however, since completion of its 2015 UWMP, East Palo Alto has secured additional SFPUC supplies. During a single dry year, Menlo Park Municipal Water projected shortfalls beginning in 2020, and Mountain View, Cal Water and East Palo Alto projected shortfalls by 2040; however, since completion of its 2015 UWMP and given some major changes in land use policies, Mountain View has updated their projected shortfalls in a single dry year to occurred starting in 2020. During multiple dry years, Mountain View and Menlo Park Municipal Water project shortfall in all years beginning in 2020, and East Palo Alto projected shortfalls in all years given 2040 demands and in the second and third years under 2035 demands. Palo Alto, similar to many of the other RWQCP Partner Agencies’, is subject to water supply reductions during droughts. Shortages are expected to become more frequent and more severe in the future as a result of climate change and other changes to the California water system. Both imported water and groundwater are at risk during dry periods. Table 1-1 summarizes the water supply sources for each city as well as the current uses, projected needs, and the local wastewater agency. Recycled Water Strategic Plan Report Chapter 1 Introduction FINAL July 2019 1-8 Table 1-1: Summary of Water Supply Sources and Needs City Wholesaler Retailer(s) Current/ Planned Groundwater User (Y/N) Projected Water Supply Shortfall1 (Y/N) Current Recycled Water User (Y/N) Wastewater Agency East Palo Alto SFPUC / Self  East Palo Alto (SFPUC, groundwater)  Palo Alto Park Mutual Water Company (100% groundwater)  O’Connor Tract Co- operative Water Company (100% groundwater) Yes Yes (2040) No RWQCP Los Altos Valley Water Cal Water Yes Yes (2040) No RWQCP Los Altos Hills SFPUC PHWD No No No RWQCP Menlo Park SFPUC Menlo Park Municipal Water Yes Yes (2020) No West Bay Sanitary District Mountain View SFPUC & Valley Water Mountain View Yes Yes (2020) Yes RWQCP Palo Alto SFPUC Palo Alto No No Yes RWQCP Stanford University SFPUC Stanford University Yes No No RWQCP 1Projections for single dry year taken from retailer 2015 Urban Water Management Plans except Mountain View which is based on more updated information. 1.3.2 Wastewater Agencies & Current Recycled Water Programs Palo Alto owns and operates the RWQCP, a 39.0 MGD-dry weather capacity wastewater treatment plant for the benefit of the RWQCP Partners. The RWQCP discharges treated effluent to an outfall in Lower South San Francisco Bay and to Renzel Marsh, which ultimately drains to the Lower South San Francisco Bay via Matadero Creek. The RWQCP treats an average of 20 MGD of wastewater. In addition, a portion of RWQCP effluent is further treated at tertiary recycled water facilities located at the RWQCP. The tertiary recycled water facilities have a capacity of 4.5 MGD, though currently production averages 0.6 MGD. The RWQCP has existing agreements with its Partner agencies that provide them with the right to acquire all wastewater by-products, such as recycled water, in the proportion to their percentage of influent flow. Recycled water from the RWQCP is available to Los Altos, Los Altos Hills, Stanford University and EPASD through truck-fill stations, while Palo Alto and Mountain View receive recycled water through a purple-pipe distribution system. Palo Alto and Mountain View are the only retailers in the Study Area that currently use recycled water via a purple-pipe distribution system. The RWQCP has committed a peak flow of up to 1.0 MGD to Palo Alto and 3.0 MGD to Mountain View under an agreement that extends until 2060. Palo Alto, Valley Water, and Mountain View partnered in the development of an Advanced Water Purification Feasibility Study and Preliminary/Conceptual Design Report in 2017 to evaluate advanced treatment options for total dissolved solids (TDS) reduction in the RWQCP’s recycled water for use in Recycled Water Strategic Plan Report Chapter 1 Introduction FINAL July 2019 1-9 irrigating salt-sensitive plants and industrial processes. The Feasibility Study recommended implementation of an Advanced Water Treatment System (AWTS) to provide 1.125 MGD of reverse osmosis treated water, with optional future expanded production reaching 2.25 MGD. The AWTS water will be blended at a 1:1 ratio with tertiary recycled water from the RWQCP to bring salinity levels between 400-500 mg/L TDS, below the Palo Alto goal of 600 mg/L TDS. The Study Area includes a portion of WBSD’s service area. WBSD provides wastewater collection services for Menlo Park, Atherton, and Portola Valley; the portion of East Palo Alto that is not served by EPASD; and areas of Woodside, unincorporated San Mateo County, and unincorporated Santa Clara County. WBSD is currently implementing a satellite recycled water facility in the southern portion of Menlo Park Municipal Water’s service area and is investigating the potential to implement a satellite recycled water facility in the northern portion of Menlo Park. Recycled Water Strategic Plan Report Chapter 2 Recycled Water Demand Assessment FINAL July 2019 2-1 Chapter 2 Recycled Water Demand Assessment 2.1 Recycled Water Uses 2.1.1 Types of Recycled Water There are a variety of types of recycled water, as shown in Figure 2-1, covering both non-potable and potable reuse applications. These types of recycled water can lead to various options for how to implement conceptual projects in a specific setting. The applicability of these types of recycled water in the local setting is described in further detail later in this chapter. Figure 2-1: Overview of Non-Potable and Potable Reuse Types Because there is no suitable reservoir or a raw water treatment facility in the RWQCP service territory, reservoir augmentation and treated water augmentation were not evaluated. Figure 2-2 is an overview of the non-potable and potable options included in this report. Recycled Water Strategic Plan Report Chapter 2 Recycled Water Demand Assessment FINAL July 2019 2-2 Figure 2-2: Overview of Non-Potable and Potable Reuse Types included in this Recycled Water Strategic Plan Currently, the RWQCP produces recycled water that is treated to disinfected tertiary treatment standards and is compliant with Title 22 of the California Code of Regulations. This is defined as oxidized, filtered, and disinfected wastewater that meets a median concentration of total coliform requirements < 2.2 MPN/100mL and 5.0-log removal of viruses. This disinfected tertiary recycled water is suitable for all NPR uses considered in this study, which include landscape irrigation, dual plumbing, cooling towers, industrial process water and habitat enhancement. Further details about these non-potable uses, including associated water quality requirements requested by users and examples of potential users in the service area, are outlined in Section 2.2. The methodology used to assess NPR demands is summarized in Section 2.2.2. IPR includes groundwater augmentation, either through percolation ponds or injection wells, where the purified recycled water mixes with the local groundwater and the mixture is extracted through existing or new wells for use in the potable (i.e., drinking) distribution system. IPR also includes reservoir augmentation, which is adding purified recycled water mixed in with local supplies in a reservoir that feeds to a surface water treatment plant, but is not considered in this Strategic Plan because no suitable reservoirs or surface water treatment plants exist proximate to the Study Area. The process to model available groundwater capacity to accept purified recycled water for recharge is included in Section 2.3.2. DPR includes raw water augmentation, which would introduce purified recycled water upstream of a surface water treatment plant, and treated drinking water augmentation, which would introduce the purified recycled water directly to the drinking water distribution system. Raw water augmentation was not considered in this Strategic Plan because there are no surface water treatment plants within the service area of the one agency interested in DPR that also had sufficient information for this evaluation at the Recycled Water Strategic Plan Report Chapter 2 Recycled Water Demand Assessment FINAL July 2019 2-3 time of this writing (i.e., Palo Alto). The methodology to estimate the amount of water available to direct towards DPR is included in Section 2.4.2. 2.1.2 Interests of the RWQCP Partner Agencies The Strategic Plan team sent out surveys to the RWQCP Partner Agencies and other interested parties to gauge their interest in using recycled water to meet their current and projected demands. These stakeholders were asked about their interest in non-potable as well as potable uses, and the information received was used to inform the development of the concepts within this study. The results of the surveys are summarized in Table 2-1. Table 2-1: Summary of Recycled Water Interests Agency Interested in use of Recycled Water from RWQCP Types of Use of Interest La n d s c a p e I r r i g a t i o n (N P R ) Du a l P l u m b e d T o i l e t F l us h i n g ( N P R ) In d u s t r i a l P r o c e s s Wa t e r ( N P R ) Co o l i n g T o w e r ( N P R ) Ha b i t a t E n h a n c e m e n t (N P R ) Gr o u n d w a t e r Au g m e n t a t i o n ( I P R ) Di r e c t P o t a b l e ( D P R ) City of Palo Alto Yes x x x x x x x City of Mountain View Yes x x x City of Los Altos Yes x x x Town of Los Altos Hills Yes x East Palo Alto Sanitary District Yes x x x x Stanford University No1 x Cal Water Yes x x x City of East Palo Alto Yes x x x x x x x City of Menlo Park Yes x x x x West Bay Sanitary District Yes x x x x x Note: 1. Though Stanford University is not interested in receiving recycled water from the RWQCP, Stanford University is interested in using recycled water generated on-site for dual plumbed toilet flushing. 2.2 Non-Potable Uses 2.2.1 Potential Non-Potable Uses Landscape Irrigation Landscape irrigation sites identified for this study include parks, schools, commercial landscaping, multi- family residential landscaping, cemeteries, and golf courses. Irrigators in the Study Area have historically expressed concern with the salinity content in recycled water and its specific impacts to salt-sensitive species such as Redwood trees. To address these concerns and improve the quality of this water, Palo Alto, in collaboration with Valley Water and Mountain View, is planning to construct an AWTS facility Recycled Water Strategic Plan Report Chapter 2 Recycled Water Demand Assessment FINAL July 2019 2-4 (see Section 1.3.2) to decrease RWQCP recycled water salinity and improve marketability for landscape irrigation purposes. Dual Plumbing Dual plumbing uses identified for this study include urinal and toilet flushing in existing dual-plumbed buildings and future developments identified in General Plans or Specific Plans where dual plumbing could be incorporated into the design of new commercial, industrial, and institutional buildings as well as multi-family residences. Existing buildings with dual-plumbing systems were included in the demand assessment; however, retrofitting existing buildings was not considered due to the cost and complexity of typical retrofits. Because the majority of the Study Area is built out, there are few opportunities to implement dual- plumbing. East Palo Alto has the greatest potential for new development and redevelopment. This includes plans to redevelop the Ravenswood area to add various commercial and industrial buildings. In addition, various multi-residential developments were considered. To promote dual-plumbing, Palo Alto has adopted an ordinance requiring buildings greater than 10,000 square feet within a designated Recycled Water Use Area to incorporate dual-plumbing (Palo Alto has yet to designate such an area), while Mountain View adopted the same guidelines for buildings greater than 25,000 square feet. Buildings in the planning phase that are anticipated to meet these thresholds were included as potential users. Many buildings currently under construction were approved prior to these ordinances and were not included in the demand assessment. As of this writing, no other dual plumbing or recycled water use ordinances exist within the RWQCP service area. Cooling Tower Cooling tower uses identified for this study include larger commercial and industrial buildings in the Study Area. Like landscape irrigation uses, cooling towers are sensitive to salinity levels in recycled water (as well as ammonia and certain metals). The AWTS (see Section 1.3.2) will make RWQCP recycled water more marketable for cooling tower purposes. Industrial Process Water Industrial process water use identified for this study was limited to one industrial customer in Palo Alto along the Phase 3 project pipeline alignment. The redevelopment in the East Palo Alto Ravenswood area has the potential to include industrial process water demands. However, given the uncertainty of future development plans, these potential industrial demands were not included. Habitat Enhancement Habitat enhancement is a potential non-potable use. While several stakeholders indicated an interest in habitat enhancement opportunities, only two specific concepts were identified:  A horizontal levee near the RWQCP; however, because this project would be served with treated effluent without a chlorine residual and using a small dedicated pipeline, this opportunity is considered a potential habitat enhancement project beyond the scope of concept options developed for this study.  Byxbee Park in Palo Alto was included in this study. Currently, through a pilot project, Byxbee Park receives recycled water to irrigate vegetated islands (Engelage, 2018). Other Non-Potable Uses Other non-potable uses in the Study Area that did not fall into the specific categories outlined above include street cleaning, car washes, and demands for Boronda Lake at Foothill Park. Recycled Water Strategic Plan Report Chapter 2 Recycled Water Demand Assessment FINAL July 2019 2-5 2.2.2 Non-Potable Market Assessment Site-specific water use estimates were obtained from the partner agencies, as available, including demand estimates for Palo Alto Phase 3 that were recently updated as part of the Palo Alto Phase 3 Business Plan and the Mountain View Recycled Water Feasibility Study. Where site-specific information was not available from the agency, the methodologies described in Appendix A were used to estimate landscape irrigation, dual plumbing, and cooling tower demands. Estimates for other uses were developed as needed on a case by case basis. Peaking factors are summarized in Table 2-2. For potential customers with the largest demand estimates, Palo Alto coordinated with the partner agencies to reach out to these potential customers to further refine the recycled water estimates. 2.2.3 Non-Potable Demand The potential annual average recycled water demand for all non-potable users in the Study Area is 4,456 AFY or 3.98 MGD. These potential users are shown in Figure 2-3. Potential recycled water demand estimates for each non-potable customer, including a breakdown of estimated annual average, maximum day, and peak hour demands, are included in Appendix B. Appendix B includes each potential user’s location, type of use (e.g. landscape irrigation, dual plumbing, industrial process water, cooling tower, etc.), site status (e.g. existing recycled water customer, existing water customer, future customer), Partner Agency, and water retailer. Appendix C contains a discussion of potential uses considered but not included in the Strategic Plan. These appendices are excluded from the public version of this report in compliance with the California Public Records Act, which protects certain utility usage data and customer information from disclosure. The maximum day demand, defined as the average daily demand in July, for all non-potable uses in the service area is 6.84 MGD. The peaking factors used to develop the non-potable maximum day and peak hour demands are summarized in Table 2-2, and annual average and maximum day demands are summarized in Table 2-3. Peaking factors are a ratio of the maximum day or maximum hourly demand to the average day or average hourly demand. The peak maximum day flows were used to size treatment facilities and peak hour demands were used to size pump stations and pipelines. Table 2-2: Demand Peaking Factors Demand Type Peaking Factor Maximum Day Irrigation 1.7 Cooling Tower 2.7 Hourly Irrigation1 3.0 Dual Plumbing 2.0 Cooling Tower 2.0 1. Irrigation hourly peaking factor applies to irrigation users who use water on demand. There are a small number of irrigation customers in the Study Area with on-site water storage where this peaking factor does not apply. Table 2-3: Non-Potable Demand Summary Demand Type Value Annual Average 4,456 AFY (3.98 MGD) Maximum Day 6.84 MGD Recycled Water Strategic Plan Report Chapter 2 Recycled Water Demand Assessment FINAL July 2019 2-6 Figure 2-3: Potential Non-Potable Users in Study Area Recycled Water Strategic Plan Report Chapter 2 Recycled Water Demand Assessment FINAL July 2019 2-7 2.3 Indirect Potable Uses 2.3.1 Potential Indirect Potable Uses Indirect potable uses identified for this study focused on groundwater augmentation via injection wells. Due to the densely developed nature of the Study Area and high cost of land, groundwater augmentation via surface spreading is not viable. IPR requires full advanced treatment of recycled water. The conventional full advanced treatment train consists of membrane filtration, reverse osmosis, and an ultraviolet light -advanced oxidation process. These advanced water purification processes are designed to remove or inactivate a spectrum of constituents, including viruses, parasites, N-Nitrosodimethylamine, and 1,4-dioxane. Within East Palo Alto, the potential to use the city’s existing or future wells for IPR extraction was considered. However, after additional discussion regarding injection well siting and uncertainty of the benefit of groundwater augmentation in this area, IPR use in East Palo Alto was not considered further. Groundwater augmentation within the Cal Water service area in Los Altos was also discussed but eliminated from the project concept options analysis. Cal Water’s service area is within the area of the groundwater basins that is actively managed by Valley Water, and groundwater use in this area was deemed to be better addressed through the Valley Water’s countywide efforts rather than through this Strategic Plan. Results from a recently completed Groundwater Assessment, and Indirect Potable Reuse Feasibility Evaluation and Implementation Strategy (IPR Feasibility Evaluation) indicated that IPR within Palo Alto was technically feasible given the current condition of the aquifers in northwestern Santa Clara County and the potential to supplement Palo Alto’s water supply with groundwater. Modeling results from the IPR Feasibility Evaluation and the scenario that was selected to be included in this study’s project concept options are discussed in the following section. 2.3.2 Indirect Potable Reuse Assessment The IPR Feasibility Evaluation (Todd 2018) included a characterization of hydrogeologic conditions in Palo Alto and the surrounding areas. An initial evaluation of the feasibility of increased pumping by Palo Alto was based on historical and contemporary groundwater balances in the area. Subsequently, groundwater modeling was conducted to refine the estimate of groundwater yield available to Palo Alto with and without varying levels of IPR. From the groundwater modeling assessment, one scenario was selected for use in this Strategic Plan as it represented a technically feasible recharge and extraction scenario with no projected adverse impacts, and the volume was deemed conservative and achievable while still providing a substantial volume for use. The selected scenario, referenced as Scenario 4 in the IPR Feasibility Evaluation, includes recharge of 2,800 AFY of fully advanced treated recycled water with Palo Alto extracting 5,900 AFY of augmented groundwater (i.e., mixture of groundwater and injected recycled water) to supplement potable water supplies. 2.3.3 Indirect Potable Demand Based on Scenario 4 of the IPR Feasibility Evaluation, the annual recycled water IPR demand is 2,800 AFY. This converts to a daily demand of 2.5 MGD and is the volume of treated water that can be used for injection purposes. Once injected, the volume of water that can be sustainably extracted from the groundwater basin (or the “Project Yield”) under this scenario is 5,900 AFY (or 5.27 MGD). These demands and yields are summarized in Table 2-4. Recycled Water Strategic Plan Report Chapter 2 Recycled Water Demand Assessment FINAL July 2019 2-8 Table 2-4: IPR Demand and Groundwater Project Yield Summary Demand Type Value Annual Recycled Water Demand (Daily Recycled Water Demand) 2,800 AFY (2.50 MGD) Annual Project Yield (Daily Project Yield) 5,900 AFY (5.27 MGD) These demand and project yield values were adjusted for IPR concept options that included NPR uses. This is further detailed in Section 3.5.3. 2.4 Direct Potable Uses 2.4.1 Potential Direct Potable Uses At the initial stages of this study, Palo Alto, the East Palo Alto Sanitary District, East Palo Alto, and Cal Water all expressed an interest in DPR. Although DPR regulations for both raw water and treated drinking water augmentation are not yet developed, the SWRCB’s DDW released a framework for these regulations in April 2018. This framework considered recycled water used for DPR purposes to be treated by full advanced treatment standards, at a minimum. This framework also included surface water treatment as a necessary component of raw water augmentation. Because there is no dedicated surface water treatment plant in the Study Area, treated drinking water augmentation is considered the only feasible DPR option available at this time. Per anticipated DDW regulations, treated drinking water augmentation (colloquially called a “pipe-to-pipe” approach) requires water to be treated to potable standards at the advanced water treatment plant (AWTP) that would include full advanced treatment plus other treatment processes. For DPR use in Palo Alto, an AWTP would be located at the RWQCP. Meanwhile for DPR use in the East Palo Alto Sanitary District, East Palo Alto, or the Cal Water service area, the AWTP could be located at the RWQCP or a satellite site. AWTP water would then be kept in engineered storage and delivered directly to the potable water distribution system. DPR use in Palo Alto was considered as a project concept option (D1) in this study and is further discussed in Section 3.6. 2.4.2 Direct Potable Reuse Assessment Each partner agency to the RWQCP (including Palo Alto) retains the right to reuse as much recycled water as wastewater that was sent from their agency to the RWQCP for treatment. As such, the amount of potential DPR yield was based on Palo Alto’s share of the RWQCP effluent flow, which is 7.31 MGD or about 36% of the RWQCP’s average annual flow (20.3 MGD, 2010-2018 average). With 1.0 MGD assumed to be dedicated to other recycled water customers in Palo Alto, the available flow estimated to feed a DPR facility is 6.31 MGD. Finally, after accounting for a 25% rejection rate during the treatment process, the amount of produced water for potable consumption was estimated to be 4.73 MGD (average and maximum day are the same in this case such that the DPR facility operates at a constant steady rate). Similarly, this converts to an average annual demand of 5,300 AFY of 4.73 MGD. The development of this DPR demand estimate is summarized in Table 2-5. Recycled Water Strategic Plan Report Chapter 2 Recycled Water Demand Assessment FINAL July 2019 2-9 Table 2-5: DPR Demand Estimate Summary RWQCP Average Annual Flow (2010- 2018) Palo Alto’s Share of RWQCP Effluent Flow Flow Available as DPR Input Flow Produced as DPR Output 20.3 MGD 7.31 MGD 6.31 MGD 4.73 MGD (5,300 AFY) 2.5 Other Potential Uses Outside of Study Area In addition to the Strategic Plan, Valley Water is collaborating with local stakeholders to develop a Countywide Water Reuse Master Plan (Countywide Plan). This effort aims to integrate and expand recycled and purified water as a local and drought-proof water supply throughout Santa Clara County. The plan is projected to be completed by June 2020. Valley Water’s goal is to develop recycled water to provide for at least 10% of the total county demands by 2028 by developing up to 24,000 AFY of additional potable reuse. Valley Water is exploring sourcing water from a variety of wastewater treatment facilities in Santa Clara County. One of the options being considered by the Countywide Plan is export of water from the RWQCP for potable reuse further south in Santa Clara County, where Valley Water operates recharge ponds. Depending on the outcomes of the Countywide Plan, some of the Concept Options described in this Report may not implementable due to limited supply of recycled water; further evaluation for joint implementation may be required. Recycled Water Strategic Plan Report Chapter 3 Strategic Plan Concept Options FINAL July 2019 3-1 Chapter 3 Strategic Plan Concept Options 3.1 Summary of Approach Figure 3-1 summarizes the process used to develop the Strategic Plan concept options, or expansion opportunities. The approach was to start by incorporating key findings from previous studies, and to then survey and meet with the various agencies to validate previous findings and to confirm future interests. Through a Visioning Workshop, the consultant team aided the agencies in identifying and prioritizing opportunities for recycled water within the study area and to select concept options for further analysis. The consultant team then provided technical development of the concept options and preliminary evaluations which were confirmed with the agencies at an Evaluation Workshop. After completion of the evaluation of the concept options, implementation strategies for each recycled water use type were then defined. Figure 3-1: Summary of Overall Approach to Strategic Plan Concept Option Development and Assessment 3.2 Concept Option Development Process This section summarizes the objectives, screening process, and engineering design criteria used to develop the Strategic Plan concepts considered in the study. 3.2.1 Objectives in Concept Option Development The following objectives guided the development of Strategic Plan Concept Options for the Study Area: 1) Develop Cost Effective Concept Options: To meet this objective, concept options were developed around large potential users as well as dense areas of users. Users with estimated demands greater than 50 AFY were included in at least one of the preliminary concept options presented to stakeholders for screening. The intent was that these customers would serve as anchor customers along an alignment, providing sufficient demand to justify needed infrastructure costs. However, because many of the large users are on the edge of the Study Area, the cost effectiveness of including some of these customers became less certain. While aiming to Demand Assessment •Agency Survey •Meetings with Partners •Previous Studies Visioning Workshop Develop- ment of Concept Options •Sizing Facilities •Developing Costs Evaluation of Concept Options •Non-Cost Criteria Scoring Evaluation Workshop Outreach • Utilities Advisory Committee (Sept. 2018) • Palo Alto City Council Study Session (Nov. 2018) • Pubic Meeting (Apr. 2019) Implemen -tation Strategies Recycled Water Strategic Plan Report Chapter 3 Strategic Plan Concept Options FINAL July 2019 3-2 meet the most demand in each concept option, the distance between customers was also considered such that concept options focused on clusters of users that could be served from a common pipeline. Extensions off the main pipeline generally were not pursued for users with less than 5 AFY of demand. 2) Pursue Regional Solutions: One of the primary goals of the Strategic Plan is to assess whether a regional approach to recycled water projects in the RWQCP service area would result in concept options that are more economically-feasible to implement and multi-beneficial. With this in mind, concept options were developed that incorporated multiple jurisdictions and water retailers to analyze whether this created beneficial outcomes in the Study Area. 3.2.2 Preliminary Concept Options Screening In March 2018, Palo Alto and Valley Water conducted a Visioning Workshop with interested RWQCP Partner Agencies, water retailers, and neighboring agencies. At the workshop, a number of preliminary concept options were presented to the stakeholder group and valuable input received. Through discussion with the stakeholders, some of the concept options were modified, while others were eliminated. Additionally, a concept option looking at satellite treatment for non-potable reuse – versus centralized treatment at the RWQCP – was added. The remainder of this chapter, beginning in Section 3.3, includes a description of each of the concept options evaluated. The concept options are divided into four categories:  “A” series for NPR concept options from RWQCP (Section 3.2)  “B” concept option for NPR from satellite treatment (Section 3.3)  “C” series for IPR concept options (Section 3.4)  “D” concept option for DPR (Section 3.5) 3.2.3 Engineering Design Criteria Hydraulic Criteria The criteria used to size the distribution infrastructure for new concept options developed as part of this study are summarized in Table 3-1. In general, the minimum pressure criterion establishes the hydraulic grade line (HGL) required, which in turn helps define pumping requirements. The maximum flow velocity criterion generally governs pipe sizing. Recycled Water Strategic Plan Report Chapter 3 Strategic Plan Concept Options FINAL July 2019 3-3 Table 3-1: Hydraulic Criteria Description Value Pipelines Minimum Pressure at Standard Pressurized Customer Connections 40 psi Minimum Pressure at Injection Well Connections1 15 psi Minimum Pressure at Pond Storage Customer Connections 10 psi Maximum Customer Pressure2 120 psi Minimum Pipe Size 6 in Maximum Flow Velocity 5 ft/s Pump Stations Assumed Pumping Efficiency 75% Non-Overloading Horsepower Adjustment 10% Maximum Standard Motor Size, Each Pump 100 hp Notes: 1. Determined to be the minimum required pressure for injection wells, per communication with Sally McCraven, Todd Groundwater. 2. Certain customer demand nodes exceed the maximum pressure criterion at times, which is acceptable to maintain minimum service pressures elsewhere. Customers with high pressures will require a pressure regulating valve on the service line. A spreadsheet was developed to model each concept option’s pipe network and optimized backbone pipe sizes. Each alignment was divided into segments, and peak hour flows for each customer along or downstream of a given segment were aggregated to determine the minimum pipeline diameter needed to convey maximum flows. This model was utilized to check pressure at customer connections and determine each concept option’s pump station sizes. To develop conceptual costs at this planning level, hydraulic head required at the RWQCP to serve the concept options was treated as a separate pump station at the RWQCP location. The potential for integrating this hydraulic capacity to existing facilities at the RWQCP would need to be analyzed upon further development of any concept option. The results for each concept option’s hydraulic analysis, including pipeline and pump station sizing, are summarized in Sections 3.3 to 3.6. Treatment Criteria Palo Alto has committed to delivering 3.0 MGD of enhanced recycled water to Mountain View and 1.0 MGD to Palo Alto for non-potable uses. As discussed in Section 1.3.2, Palo Alto is planning to implement an AWTS to provide 1.125 MGD of reverse osmosis treated water, which will be blended at with RWQCP tertiary recycled water to produce enhanced recycled water with a target TDS level below 600 mg/L. Plans for the AWTS include potential expansion to produce 2.25 MGD of reverse osmosis treated water. In evaluating additional treatment needs for the centralized NPR concept options (“A” series) in this study, it is assumed that the 2.25 MGD AWTS facility will be constructed. If a combination of the AWTS facility and the existing 4.5 MGD granular media filters can be used to meet the total demand for a concept option including the current flow commitments for NPR in Mountain View and Palo Alto while still meeting a 600 mg/L TDS target, additional treatment is not included. As such, the 1:1 blend ratio used in the 2017 Advanced Water Purification Feasibility Study and Preliminary/Conceptual Design Report is not used for this study. Rather, 2.25 MGD AWTS produced water with TDS of 50 mg/L is assumed to be combined with the balance of RWQCP tertiary recycled water needed to meet the concept option demand with TDS of 900 mg/L. Consequently, the final TDS concentration varied depending on the concept option tertiary recycled water demand, however all concept options remained below the 600 mg/L TDS goal. This approach allows the NPR concept options to be consistent with the previously Recycled Water Strategic Plan Report Chapter 3 Strategic Plan Concept Options FINAL July 2019 3-4 completed Feasibility Study while maintaining sufficient operational flexibility to ensure cost effective solutions to meet enhanced recycled water demands. For non-potable uses served from a satellite treatment facility, this study assumes the facility to provide disinfected tertiary treated recycled water and that saline inflow and infiltration is negligible. For IPR, recycled water would be treated to full advanced treatment standards for injection (membrane filtration, reverse osmosis, and an ultraviolet light -advanced oxidation process). In addition, each extraction well is planned to have wellhead treatment per Option 4 of Palo Alto’s 2017 Water Integrated Resources Plan. Option 4 includes treatment for iron, manganese, and TDS at each well site such that the extracted water will be comparable to SFPUC water supplies. Option 4 is the treatment option assumed for this study since this is most comparable to the existing Palo Alto supply and most likely to gain customer acceptance. For DPR, treatment standards were designed to align with guidance provided by the SWRCB in its Proposed Framework for Regulating Direct Potable Reuse in California (April 2018). Also, the SWRCB’s Feasibility Report on Developing Uniform Water Recycling Criteria for DPR indicated that DPR treatment trains should be sourced from tertiary recycled water (defined as any process employed after secondary treatment to further improve water quality). Therefore, the water quality of the influent wastewater for DPR was assumed to be final effluent from the RWQCP; the RWQCP is a tertiary treatment facility that treats all of its wastewater beyond secondary treatment standards. In addition to the steps required to treat recycled water to full advanced treatment standards, the DPR train would include ozone, biologically active filtration, and free chlorine process steps. Reverse osmosis concentrate treatment is included in concept options as necessary to maintain compliance with the RWQCP’s NPDES discharge permit. The 2017 Advanced Water Purification Feasibility Study identified maximum AWTS sizes to comply with the RWQCP’s permit without concentrate treatment under the following scenarios:  Scenario 1. All enhanced recycled water: This scenario assumes all of the advanced treated water from the AWTS is blended with tertiary-treated recycled water at a 1:1 ratio and distributed to customers.  Scenario 2. All potable reuse: This scenario assumes all of the advanced treated water from the AWTS would be used for potable reuse and no blending with tertiary-treated recycled water would occur.  Scenario 3. Enhanced recycled water with additional potable reuse: This scenario assumes implementation of a 2.25 MGD AWTS for enhanced recycled water production (4.5 MGD of total enhanced recycled water capacity) with the remaining advanced water purification facility (AWPF) capacity for potable reuse. Table 3-2 summarizes the findings from the feasibility study which were based on a conservative approach in order to meet the various maximum daily permit limits. The scenarios relevant to this planning effort are Scenarios 1 and 3. The Strategic Plan assumes that the 2.25 MGD enhanced recycled water AWTS will be constructed to meet the RWQCP’s existing commitments to Mountain View and Palo Alto. If any of the NPR concept options were to require additional AWTS treatment capacity, the threshold above which concentrate treatment would be needed is an additional 1.65 MGD of AWTS capacity (for total enhanced recycled water capacity of 7.8 MGD). For the IPR and DPR concept options (which both including reverse osmosis in their treatment trains), the threshold above which concentrate treatment would be needed is 2.5 MGD. Recycled Water Strategic Plan Report Chapter 3 Strategic Plan Concept Options FINAL July 2019 3-5 Table 3-2: Maximum AWTS Sizes Without Requiring Reverse Osmosis Concentrate Treatment Maximum AWTS Size (MGD) AWTS for Enhanced Recycled Water Size (MGD) Enhanced Recycled Water Produced (MGD) AWPF for Potable Reuse Size (MGD) Scenario 1: All Enhanced Recycled Water 3.9 -- 7.8 -- Scenario 2: All Potable Reuse 5.8 -- -- 5.8 Scenario 3: Enhanced Recycled Water AWTS of 2.25 MGD with Additional Potable Reuse 4.8 2.25 4.5 2.5 Note: The sizing is based on the RWQCP’s minimum daily flow of 12 MGD. See MNS Advanced Water Purification System Preliminary/Conceptual Design Report, December 2017, for additional details. 3.3 Concept Options A: NPR from RWQCP There are six concept options in the “A” series that contain different pipeline alignments to meet differing NPR demands throughout the Study Area:  A1: The Phase 3 Pipeline to south Palo Alto recommended in the 2008 City of Palo Alto Recycled Water Facility Plan and reassessed through the 2018 Phase 3 Business Plan and 2018 Preliminary Design Report. This concept option was included in this study in order to evaluate its feasibility relative to other concept options.  A2: Extends the Phase 3 Pipeline (Concept Option A1) to serve additional customers in the Palo Alto Foothills and Los Altos Hills.  A3: Extends Concept Option A2 to serve additional customers in Los Altos.  A4: Extends the Mountain View Systems in accordance with the Long-Term Expansion Project from the 2014 Mountain View Recycled Water Feasibility Study. This concept option was included in this study in order to evaluate its feasibility relative to other concept options.  A5: Extends Concept Option A4 to service customers in Los Altos.  A6: Serves existing and future customers in East Palo Alto and Palo Alto and includes sizing facilities for an extension to Menlo Park. 3.3.1 Concept Option A1: NPR Palo Alto Phase 3 Concept Option A1 is the Phase 3 Pipeline to south Palo Alto recommended in the 2008 Palo Alto Recycled Water Facility Plan and reassessed through the 2018 Phase 3 Business Plan and 2018 Preliminary Design Report. Facilities for the concept option are summarized in Table 3-3 and shown on Figure 3-2. Notable items from Concept Option A1 are:  Customers: Unlike other customers on Phase 3, the anchor customer for this Concept Option relies on groundwater for its water supply and does not currently receive water service from Palo Alto.  Pipelines: Build off the existing 30-inch recycled water backbone along Embarcadero Road.  Pump Stations: Two - 1) expansion of existing recycled water pump station at the RWQCP; and 2) a booster pump station along the Phase 3 alignment. Recycled Water Strategic Plan Report Chapter 3 Strategic Plan Concept Options FINAL July 2019 3-6 Table 3-3: Demand and Facility Summary for Concept Option A1, NPR Palo Alto Phase 3 Customer Location Number of Users Demand Total (AFY) Palo Alto – Phase 3 109 634 Anchor Customer1 1 167 Total 110 801 Modeled Pipe ID (in) Approximate Length of Pipe (LF) 6 18,500 8 9,000 10 7,200 12 23,200 Total Length (LF) 57,900 Total Length (mi) 11.0 Description Performance Requirements Recycled Water Pump Station Phase 3 Booster Pump Station Required Flow 1,637 gpm 1,408 gpm Discharge Head 200 ft 198 ft Pump Configuration (duty + standby) 2 (duty) 3+1 Pump Motor Rating (each) 100 hp 60 hp Total Installed Motor Horsepower 200 hp 240 hp Notes: 1. Anchor customer is distinguished from the rest of the Phase 3 customers because, unlike others, this customer relies on groundwater for its water supply and does not currently receive water service from Palo Alto. Recycled Water Strategic Plan Report Chapter 3 Strategic Plan Concept Options FINAL July 2019 3-7 Figure 3-2: Alignment for Concept Option A1, NPR Palo Alto Phase 3 Recycled Water Strategic Plan Report Chapter 3 Strategic Plan Concept Options FINAL July 2019 3-8 3.3.2 Concept Option A2: NPR Palo Alto Phase 3 Extended to Foothills Concept Option A2 extends the Phase 3 Pipeline in Concept Option A1 to serve additional customers in the Palo Alto Foothills and Los Altos Hills. The Concept Option A2 alignment is shown in Figure 3-3. A summary of the customers included in this concept option and their corresponding demand values and facilities are outlined in Table 3-4. Some notable items for Concept Option A2 are:  Customers: Concept Option A2 captures two additional high demand customers and benefits an additional RWQCP partner by including a branch to Los Altos Hills.  Pipelines: Build off of the existing 30-inch recycled water backbone in Embarcadero Road.  Pump Stations: Four - Expansion of the existing recycled water pump station at the RWQCP and three booster pump stations at optimized locations throughout the alignment. Table 3-4: Demand and Facilities Summary for Concept Option A2, NPR Palo Alto Phase 3 Extended to Foothills Customer Location Number of Users Demand Total (AFY) Palo Alto – Phase 3 109 634 Anchor Customer No. 11 1 167 Anchor Customer No. 2 1 169 Foothills Park 1 75 Los Altos Hills 3 24 Total 115 1069 Modeled Pipe ID (in) Approximate Length of Pipe (LF) 6 55,100 8 8,600 10 5,900 12 1,000 16 8,000 Total Length (LF) 78,600 Total Length (mi) 14.9 Description Performance Requirements Recycled Water Pump Station (PS1) Booster Pump Station #2 (PS2) Booster Pump Station #3 (PS3) Booster Pump Stations #4 (PS4) Required Flow 2,270 gpm 1,887 gpm 268 gpm 161 gpm Discharge Head 178 ft 285 ft 174 ft 588 ft3 Pump Configuration (duty + standby) 3+1 3+1 1+1 2+1 Pump Motor Rating (each) 50 hp 75 hp 20 hp2 20 hp Total Installed Motor Horsepower 200 hp 300 hp 40 hp 60 hp Notes: 1. Required discharge head at Booster Pump Station #4 is notably larger due to the 610-foot elevation increase from its location to the end user (Foothills Park). 2. After assessing the feasibility of other hydraulic configurations (including removing Booster Pump Station #3 and upsizing other booster pump stations), it was determined that including Booster Pump Station #3 at the specified pump motor rating was optimal to meet pressure criteria at nearby customers. 3. Anchor Customer No. 1 is distinguished from the rest of the Phase 3 customers because, unlike other customers on Phase 3, this customer relies on groundwater for its water supply and does not currently receive water service from Palo Alto. Recycled Water Strategic Plan Report Chapter 3 Strategic Plan Concept Options FINAL July 2019 3-9 Figure 3-3: Alignment for Concept Option A2, NPR Palo Alto Phase 3 Extended to Foothills Recycled Water Strategic Plan Report Chapter 3 Strategic Plan Concept Options FINAL July 2019 3-10 3.3.3 Concept Option A3: NPR Palo Alto Phase 3 Extended to Foothills and Los Altos Concept Option A3 extends the Phase 3 Pipeline to serve additional customers in the Palo Alto Foothills, Los Altos, and Los Altos Hills to capture some of the highest potential demands as well as create a more regional NPR concept option. The original intent of this concept option was to capture customers within the northern portion of Los Altos by branching off of the proposed Phase 3 pipeline on Arastradero Road, crossing Adobe Creek and ending at Hillview Community Center. However, during development of the proposed alignment, it was determined that crossing to Los Altos from the Alta Mesa Memorial Park region required too much disruption and coordination with private entities. As such, the alignment to Los Altos extends eastward to Briones Park, down El Camino Real, and southwards towards Covington Elementary School, resulting in a longer length of pipeline than initially envisioned. The Concept Option A3 alignment and customer demands are shown in Figure 3-4. A summary of the customers included in this concept option and their corresponding facilities are outlined in Table 3-5.  Customers: Serves customers in Palo Alto, Los Altos, and Los Altos Hills including Briones Park and Elementary School in Palo Alto.  Pipelines: Concept Option A3 would be built off of the 24-inch recycled water pipeline on East Bayshore. In order to meet the additional demands in the Palo Alto Foothills, Los Altos, and Los Altos Hills, some of the Phase 3 pipeline segments were upsized for additional capacity.  Pump Stations: Five – expansion of the existing recycled water pump station at the RWQCP and four booster pump stations at optimized locations throughout the alignment. Recycled Water Strategic Plan Report Chapter 3 Strategic Plan Concept Options FINAL July 2019 3-11 Table 3-5: Demand and Facilities Summary for Concept Option A3, NPR Palo Alto Phase 3 Extended to Foothills and Los Altos Customer Location Number of Users Demand Total (AFY) Palo Alto – Phase 3 109 634 Anchor Customer No. 11 1 167 Briones Park 1 14 Briones Elementary School 1 5 Anchor Customer No. 2 1 169 Foothills Park 1 75 Los Altos 8 143 Los Altos Hills 3 24 Total 125 1231 Modeled Pipe ID (in) Approximate Length of Pipe (LF) 6 65,000 8 32,700 12 3,600 16 9,000 Total Length (LF) 116,200 Total Length (mi) 22.0 Description Performance Requirements Recycled Water Pump Station (PS1) Booster Pump Station #2 (PS2) Booster Pump Station #3 (PS3) Booster Pump Station #4 (PS4) Booster Pump Station #5 (PS5) Required Flow 2,783 gpm 2,399 gpm 268 gpm 161 gpm 454 gpm Discharge Head 204 ft 271 ft 174 ft 588 ft 133 ft2 Pump Configuration (duty + standby) 3+1 4+1 1+1 2+1 2+1 Pump Motor Rating (each) 75 hp 60 hp 20 hp 20 hp3 23d hp Total Installed Motor Horsepower 300 hp 300 hp 40 hp 60 hp 69 hp Notes: 1. Anchor Customer No.1 is distinguished from the rest of the Phase 3 customers because this customer relies on groundwater for its water supply and does not currently receive water service from Palo Alto. 2. Required discharge head at Booster Pump Station #4 is notably larger due to the 610-foot elevation increase from its location to the end user (Foothills Park). 3. After assessing the feasibility of other hydraulic configurations (including removing Booster Pump Station #3 and upsizing other booster pump stations), it was determined that including Booster Pump Station #3 at the specified pump motor rating was optimal in order to avoid exceeding pressure criteria for customers near Booster Pump Station #5. Recycled Water Strategic Plan Report Chapter 3 Strategic Plan Concept Options FINAL July 2019 3-12 Figure 3-4: Alignment for Concept Option A3, NPR Palo Alto Phase 3 Extended to Foothills and Los Altos Recycled Water Strategic Plan Report Chapter 3 Strategic Plan Concept Options FINAL July 2019 3-13 3.3.4 Concept Option A4: NPR Mountain View Concept Option A4 is the Mountain View Long-Term Expansion Project from the 2014 Mountain View Recycled Water Feasibility Study (RWFS). This concept option was included in this study to evaluate its feasibility relative to other concept options. Note that the distribution system hydraulic analysis criteria used in the Mountain View RWFS differ slightly from those presented in Table 3-1 but resulting facility sizing would be similar. Also of note, Mountain View is in the process of updating the 2014 RWFS focusing on extending their existing system to Google and NASA, and across Highway 101. The Concept Option A4 alignment and customer demands are shown in Figure 3-5. A summary of the customers included in this concept option and their corresponding facilities are outlined in Table 3-6. Notable items from Concept Option A4 are:  Customers: Same as the customers identified in the Mountain View RWFS for the Long-Term Expansion Project continuing to build off of Mountain View’s Phase 2 pipeline.  Pump Station: Additional pumping capacity at the Charleston Pump Station and NASA Pump Station to meet peak hour demands for Concept Option A4. Pump Stations The Recommended Project presented in Mountain View RWFS Study consists of three phases: the Short- Term Expansion, the Mid-Term Expansion, and the Long-Term Expansion. The Short-Term and Mid- Term Expansions are constructed or planned to be constructed by 2020, while the construction of the Long-Term Expansion is unscheduled. The total system for all phases of the Mountain View Recommended Project requires two pump stations: one at Charleston Park and one at NASA’s Ames Research Park (NASA Pump Station). The Charleston Park Pump Station was initially sized at 450 hp to meet demands included in the Short-Term and Mid-Term Expansions. To meet the peak hour demand for the Long-Term Expansion, two additional variable frequency drive units with a combined capacity of 100 hp would need to be added to the Charleston Park Pump Station for a total installed horsepower of 550. Additional capacity would need to be installed at the 275-hp NASA Pump Station to meet Long-Term Expansion demands. This includes an additional 25-hp variable frequency drive unit for a total capacity of 300 hp. Storage Tank Sizing As part of the Mid-Term Phase, a storage tank with 1.6 MG capacity was included to meet demands included in all phases of the Recommended Project. This storage facility is sited at NASA’s Ames Research Park and is planned to be constructed. Therefore, the cost of the storage tank is included in the Mid-Term Phase construction and is not considered in the Concept Option A4 cost estimate. Pending the results of the current update to the 2014 RWFS, previous recommendations for sizing of storage and pump stations may be altered. Recycled Water Strategic Plan Report Chapter 3 Strategic Plan Concept Options FINAL July 2019 3-14 Table 3-6: Demand and Facilities Summary for Concept Option A4, Mountain View Customer Location Number of Users Demand Total (AFY) Mountain View – Long-Term Expansion 42 216 Total 42 216 Modeled Pipe ID (in) Approximate Length of Pipe (LF) 6 12,200 10 1,500 12 2,500 Total Length (LF) 16,200 Total Length (mi) 3.1 Description Additional Capacity Requirements Charleston Park Pump Station NASA Pump Station Required Flow 900 gpm1 600 gpm2 Pump Configuration (duty only)3 24 14 Pump Motor Rating (each) 50 hp4 25 hp4 Total Installed Motor Horsepower 100 hp (for 550 hp total system capacity)4 25 hp (for 300 hp total system capacity)4 Notes: 1. Calculated as the difference between the total design flow (6,100 gpm; Mountain View RWFS, p. 7-11) and the design flow for the Mid-Term Expansion (5,200 gpm; Mountain View RWFS, p. 7-9). 2. Calculated as the difference between the total design flow (4,300 gpm) and the design flow for the Mid-Term Expansion (3,700 gpm). Both values were found in the Mountain View RWFS, Table 7.4. 3. The Mountain View RWFS installed pump horsepower does not include spare pumping capacity, per the note in Table 7.4. 4. The pumps’ configuration, motor rating, and total installed horsepower are on page 7-11 of the Mountain View RWFS. Recycled Water Strategic Plan Report Chapter 3 Strategic Plan Concept Options FINAL July 2019 3-15 Figure 3-5: Alignment for Concept Option A4, NPR Mountain View Recycled Water Strategic Plan Report Chapter 3 Strategic Plan Concept Options FINAL July 2019 3-16 3.3.5 Concept Option A5: NPR Mountain View Extended to Los Altos Concept Option A5 would serve customers from Concept Option A4 and includes an extension that was considered in the 2014 Mountain View RWFS “Alternative 3”. While initially considered as a long-term extension for the Mountain View system, “Alternative 3” was not included as part of Mountain View’s final Recommended Project to due financial considerations. For the purposes of this study, Concept Option A5 uses that same alignment and customer base, then extends service to Los Altos customers south of Central Expressway to El Camino Hospital and Cooper Park, including the Los Altos Golf & Country Club. The Concept Option A5 alignment and customer demands are shown in Figure 3-6. A summary of the customers included in this concept option and their corresponding facilities are outlined in Table 3-7. Notable items from Concept Option A5 are:  Customers: Concept Option A4 with expansion to service additional Mountain View and Los Altos customers.  Pump Stations: Two - 1) located at the NASA’s Ames Research Park that serves all users on the Long-Term Expansion alignment and 2) another located at Central Expressway that serves all other users.  Storage Tank: Operational volume of 1.2 MG to serve Concept Option A5 users beyond the Long-Term Expansion demands, located at NASA Ames Research Park. Storage Tank Sizing To provide enough supply during peak hours, Concept Option A5 requires a storage tank. The Mountain View RWFS included a “NASA Storage Tank” at the connection between the Mid-Term and Long-Term Expansion alignments, located at NASA’s Ames Research Park. This tank is sized to meet demands through the Long-Term Expansion. Additional storage capacity is required to meet Mountain View and Los Altos demands beyond the Long-Term Expansion users. For planning purposes, this increased capacity requirement was sized and cost as a separate storage tank at the NASA Storage Tank location. The potential for adding this capacity to existing storage facilities at NASA’s Ames Research Park location would need to be evaluated upon further development of this concept option. The storage tank operational volume needed to serve Concept Option A5 users beyond the Long-Term Expansion demands is 1.2 MG. Recycled Water Strategic Plan Report Chapter 3 Strategic Plan Concept Options FINAL July 2019 3-17 Table 3-7: Demand and Facilities Summary of Concept Option A5, NPR Mountain View Extended to Los Altos Customer Location Number of Users Demand Total (AFY) Mountain View – Long-Term Expansion 42 216 Mountain View – Alternative 3 53 274 Additional Mountain View Site 1 12 Los Altos 10 370 Total 106 872 Modeled Pipe ID (in) Approximate Length of Pipe (LF) 6 21,600 8 14,900 10 5,600 16 45,000 Total Length (LF) 87,100 Total Length (mi) 16.5 Storage Tank 1.2 MG Description Performance Requirements NASA Pump Station (PS1) Booster Pump Station #2 (PS2) Required Flow 3,031 gpm 1,799 gpm Discharge Head 190 ft 187 ft Pump Configuration (duty + standby) 3+1 2+1 Pump Motor Rating (each) 75 hp 75 hp Total Installed Motor Horsepower 300 hp 225 hp Recycled Water Strategic Plan Report Chapter 3 Strategic Plan Concept Options FINAL July 2019 3-18 Figure 3-6: Alignment for Concept Option A5, NPR Mountain View Extended to Los Altos Recycled Water Strategic Plan Report Chapter 3 Strategic Plan Concept Options FINAL July 2019 3-19 3.3.6 Concept Option A6: NPR East Palo Alto and Menlo Park Concept Option A6 would serve customers (including yet to be constructed customers) in East Palo Alto, with facilities sized to extend to areas of developments in Menlo Park that are east of U.S. Highway 101. Menlo Park does not currently use any recycled water and does not own or operate a wastewater treatment facility. Menlo Park has expresses interest in receiving recycled water supplies from other agencies, including Redwood City, West Bay Sanitary District, and Palo Alto’s RWQCP (West Yost, 2017). The Concept Option A6 alignment and customer demands are shown in Figure 3-7. A summary of the customers included in this concept option and their corresponding facilities are outlined in Table 3-8. Notable items from Concept Option A6 are:  Customers: Potential demand for Menlo Park was obtained through discussions with Menlo Park and WBSD, both of which have conducted recycled water assessments for this area. Note that East Palo Alto is continuing to see increases in development such that these demand estimates may be lower than actuals.  Pipelines: Builds off of the existing 30-inch recycled water backbone along Embarcadero Road.  Pump Stations: One – expanded existing recycled water pump station at RWQCP Table 3-8: Demand and Facilities Summary for Concept Option A6, NPR East Palo Alto and Menlo Park Customer Location Number of Users Demand Total (AFY) East Palo Alto 10 145 East Palo Alto – yet to be constructed 17 192 Palo Alto 6 114 Subtotal 33 451 Menlo Park N/A1 250 Total 701 Modeled Pipe ID (in) Approximate Length of Pipe (LF) 6 14,100 8 10,200 10 10,000 Total Length (LF) 34,300 Total Length (mi) 6.5 Description Performance Requirements Recycled Water Pump Station (PS1) Required Flow 1,000 gpm Discharge Head 250 ft Pump Configuration (duty + standby) 2+1 Pump Motor Rating (each) 50 hp Total Installed Motor Horsepower 150 hp Note: 1. The number of users in Menlo Park was not identified as part of the Strategic Plan. The estimated demand is based on discussions with Menlo Park and WBSD. Recycled Water Strategic Plan Report Chapter 3 Strategic Plan Concept Options FINAL July 2019 3-20 Figure 3-7: Alignment for Concept Option A6, NPR East Palo Alto and Menlo Park Recycled Water Strategic Plan Report Chapter 3 Strategic Plan Concept Options FINAL July 2019 3-21 3.4 Concept Option B: NPR from Satellite Location 3.4.1 Concept Option B1: NPR Satellite Treatment Plant Concept Option B1 is a satellite treatment plant that would treat wastewater flows from a more proximate location to recycled water customers compared to the RWQCP. Based on a planning-level assessment of wastewater flow volumes available in the Study Area, the satellite plant would treat wastewater from Los Altos to provide NPR water to customers in Palo Alto and Los Altos. The Concept Option B1 alignment and the locations of the satellite treatment plant and customer demands are shown in Figure 3-8. A summary of the customers included in this concept option and their corresponding facilities are outlined in Table 3-9. Notable items from Concept Option B1 are:  Location: The satellite plant could be located at Robles Park in Palo Alto and would treat wastewater from Los Altos.  Customers: Customers would be located nearby in Los Altos and in Palo Alto  Pump Stations: Four – 1 raw influent pump station to feed wastewater to the satellite plant and three to distribute and boost recycled water to customers  Storage: Satellite plant would include 1.4 MG of treated water storage to meet peak hour demands Treatment Facilities A potential site for the satellite facility is Robles Park in Palo Alto. Due to the urban setting of the Study Area, there are limited opportunities to site new treatment facilities. There are no vacant properties in the immediate vicinity of the sewer diversion point. Robles Park was identified as a potential site because it is a public property and has sufficient open space to accommodate the satellite facilities. Although, public use of the treatment plant site would be lost. For purposes of this study, the facilities are assumed to be above ground at Robles Park. Use of Robles Park would also require City Council adoption of a Parks Improvement Ordinance approving any substantial construction or development per Palo Alto Municipal Code 22.08.005. However, if this concept option were to be pursued further, alternative treatment facility siting may be considered, for example purchasing private property closer to the diversion point or siting facilities below ground at Robles Park. Pipelines Concept Option B1’s distribution system would consist of approximately 12.8 miles of pipeline, including 6,000 LF of pipeline to convey influent wastewater flows from the sewer diversion point to the satellite treatment facilities. Pump Stations To meet the pressure criteria, Concept Option B1 includes three pump stations: one at the satellite plant site and two booster pump stations at optimized locations on the Phase 3 alignment and in Los Altos. In addition, a Satellite Influent Pump Station is required to transport raw wastewater flows from the diversion point at the end of the Los Altos sewer system to the satellite treatment facility in Palo Alto. This influent pump station is co-located at the Pump Station #3 site. Storage Tank Sizing In order to meet demands during peak hours, Concept Option B1 requires a storage tank. The storage tank is sized to store the maximum day demands for this concept option (1.4 MG) and is assumed to be sited next to the satellite treatment plant. Recycled Water Strategic Plan Report Chapter 3 Strategic Plan Concept Options FINAL July 2019 3-22 Table 3-9: Demand and Facilities Summary for Concept Option B1, NPR Satellite Treatment Plant Customer Location Number of Users Demand Total (AFY) Palo Alto – Phase 32 83 595 Palo Alto – Non-Phase 3 2 28 Anchor Customer No. 11 1 167 Los Altos 5 104 Total 91 894 Treatment (MBR) 1.5 MGD Modeled Pipe ID (in) Approximate Length of Pipe (LF) 6 39,800 8 4,000 10 6,400 12 11,500 16 (influent to satellite plant) 6,000 Total Length (LF) 67,700 Total Length (mi) 12.8 Storage Tank 1.4 MG Description Performance Requirements Satellite Plant Pump Station (PS1) Booster Pump Station 2 (PS2) Booster Pump Station 3 (PS3) Satellite Influent Pump Station (PS4) Required Flow 1,676 gpm 416 gpm 329 gpm 1,979 gpm Discharge Head 252 ft 204 ft 288 ft 75 ft 3 Pump Configuration (duty + standby) 4+1 2+1 2+1 2+1 Pump Motor Rating (each) 40 hp 20 hp 20 hp 2 hp Total Installed Motor Horsepower 200 hp 60 hp 60 hp 6 hp Notes: 1. Anchor Customer No. 1 is distinguished from the rest of the Phase 3 customers because this customer relies on groundwater for its water supply and does not receive water from Palo Alto. 2. These customers represent a subset of Phase 3 alignment customers from Concept Option A1. 3. Required discharge head at the Satellite Influent Pump Station is notably smaller due to the 30-foot elevation decrease from its location to the satellite facility site. Recycled Water Strategic Plan Report Chapter 3 Strategic Plan Concept Options FINAL July 2019 3-23 Figure 3-8: Alignment for Concept Option B1, NPR Satellite Treatment Plant Recycled Water Strategic Plan Report Chapter 3 Strategic Plan Concept Options FINAL July 2019 3-24 3.5 Concept Option C: IPR Concept Options 3.5.1 Concept Option C1: Palo Alto Dedicated IPR Concept Option C1 was developed as Scenario 4 under the IPR Feasibility Evaluation (Todd 2018). Concept Option C1 provides purified water for injection at five injection well sites in Palo Alto. The Concept Option C1 alignment and the locations of injection wells are shown in Figure 3-9. As discussed in Section 2.3.2, the volume of fully advanced treated recycled water that can be used for injection purposes is 2,800 AFY, while the volume of water that can be sustainably extracted from the groundwater basin (or the Project Yield) is 5,900 AFY (a mixture of recycled water and groundwater). These values are summarized in Table 3-10. Notable items from Concept Option C1 are:  Treatment: full advanced treatment facilities are assumed to be constructed near the RWQCP on the Measure E site. Use of this site would require Palo Alto voter approval to change the designated use to include treatment facilities. Fully advanced treated recycled water would be injected and mixed into the local groundwater system.  Customers: Palo Alto potable water system customers.  Pipeline: Dedicated pipeline to bring fully advanced treated recycled water from treatment facilities at the RWQCP to the injection wells.  Pump Stations: One – dedicated pump station for purified recycled water at RWQCP Table 3-10: Demand and Facilities Summary for Concept Option C1, Palo Alto Dedicated IPR Customer Location Demand Total (AFY) Project Yield (AFY) Palo Alto - IPR Injection Wells 2,800 5,900 Modeled Pipe ID (in) Approximate Length of Pipe (LF) 6 2,000 8 1,500 10 5,000 12 21,000 Total Length (LF) 29,500 Total Length (mi) 5.6 Description Performance Requirements Purified Recycled Water Pump Station (PS1) Required Flow 1,736 gpm Discharge Head 269 ft Pump Configuration (duty + standby) 2+1 Pump Motor Rating (each) 100 hp Total Installed Motor Horsepower 300 hp Recycled Water Treatment Wellhead Treatment Membrane Filtration, Reverse Osmosis, Advanced Oxidation Process with UV Included to lower iron, manganese, and TDS concentrations Recycled Water Strategic Plan Report Chapter 3 Strategic Plan Concept Options FINAL July 2019 3-25 Treatment Facilities Recycled water from the RWQCP would be treated to full advanced treatment standards for injection. The treatment facilities would be sized to produce 2.5 MGD to meet the daily flow required to be injected into the groundwater basin to achieve 2,800 AFY. This assumes each of the five proposed injection wells is constantly operating and does not account for downtime. The treatment facilities for this concept option are assumed to be sited at Palo Alto’s Measure E Site. The Measure E site is a 10-acre site adjacent to the RWQCP that includes a relatively flat portion that could be suitable for treatment facilities. Use of this site would require Palo Alto voter approval to change the designated use to include treatment facilities. Wellhead treatment is included to lower iron, manganese, and TDS concentrations to make the groundwater quality comparable to Palo Alto’s existing SFPUC supply. Pipelines Concept Option C1’s distribution system would consist of approximately 5.6 miles of pipeline. A dedicated IPR transmission main would be needed to convey fully advanced treated recycled water from the RWQCP to the injection well field while the existing recycled water pipeline would continue to deliver disinfected tertiary recycled water to non-potable demands. Recycled Water Strategic Plan Report Chapter 3 Strategic Plan Concept Options FINAL July 2019 3-26 Figure 3-9: Alignment for Concept Option C1, Palo Alto Dedicated IPR Recycled Water Strategic Plan Report Chapter 3 Strategic Plan Concept Options FINAL July 2019 3-27 3.5.2 Concept Option C2: Palo Alto IPR with NPR Concept Option C2 expands upon Concept Option C1 to include service of non-potable demands along or in close proximity to the alignment. Both uses (IPR and NPR) would share a transmission line and consequently, fully advanced treated recycled water would be served to all customers in this concept option despite the additional treatment being unnecessary for NPR. The Concept Option C2 alignment is shown in Figure 3-10. A summary of the customers included in this concept option and their corresponding demands are outlined in Table 3-11. As discussed in Section 2.3.2, the volume of fully advanced treated recycled water that can be used for NPR and injection purposes is 2,800 AFY, while the volume of water that can be sustainably extracted from the groundwater basin (or the Project Yield) is 5,900 AFY (a mixture of recycled water and groundwater). These values are summarized in Table 3-11. Notable items from Concept Option C2 are:  Treatment: Full advanced treatment is assumed to be constructed near the RWQCP on the Measure E site. Use of this site would require Palo Alto voter approval to change the designated use to include treatment facilities. Fully advanced treated recycled water would be injected and mixed into the local groundwater system.  Customers: Palo Alto potable water system customers and 18 non-potable customers along the pipeline route. Both potable and non-potable customers would receive fully advanced treated recycled water due to use of the same transmission pipeline despite the additional treatment being unnecessary for NPR customers.  Pipeline: Dedicated pipeline to bring fully advanced treated recycled water from treatment facilities at the RWQCP to the injection wells will also serve non-potable demands in close proximity (with higher quality fully advanced treated recycled water).  Pump Stations: One – dedicated pump station for purified recycled water at the RWQCP. Treatment Facilities RWQCP recycled water will be treated to full advanced treatment standards for injection. Because the potable and non-potable demands will be served from the same pipeline, the treatment facilities must be sized to treat the base flows to the injection wells plus the maximum day demand for the non-potable users. This translates to a total maximum day demand of 2.8 MGD. The treatment facilities for this concept option, which would include reverse osmosis concentrate treatment facilities (see Section 3.2.3), are assumed to be sited at Palo Alto’s Measure E site. Use of this site would require Palo Alto voter approval to change the designated use to include these treatment facilities. Wellhead treatment is included to lower iron, manganese, and TDS concentrations to make the groundwater quality comparable to Palo Alto’s existing SFPUC supply. Recycled Water Strategic Plan Report Chapter 3 Strategic Plan Concept Options FINAL July 2019 3-28 Table 3-11: Demand and Facilities Summary for Concept Option C2, Palo Alto IPR with NPR Customer Location Number of Users Demand Total (AFY) Project Yield (AFY) Palo Alto – Non-Phase 3 18 189 189 IPR Injection Wells - 2800 5900 Total 18 3,000 6,100 Modeled Pipe ID (in) Approximate Length of Pipe (LF) 6 11,300 8 5,500 10 3,000 12 2,500 16 19,100 Total Length (LF) 41,400 Total Length (mi) 7.8 Description Performance Requirements Purified Recycled Water Pump Station (PS1) Required Flow 2,334 gpm Discharge Head 265 ft Pump Configuration (duty + standby) 4+1 Pump Motor Rating (each) 60 hp Total Installed Motor Horsepower 300 hp Recycled Water Treatment RO Concentrate Treatment Membrane Filtration, Reverse Osmosis, Advanced Oxidation Process with UV Needed due to total reuse quantity; nanofiltration assumed (MNS, 2017) Wellhead Treatment Included to lower iron, manganese, and TDS concentrations Recycled Water Strategic Plan Report Chapter 3 Strategic Plan Concept Options FINAL July 2019 3-29 Figure 3-10: Alignment for Concept Option C2, Palo Alto IPR with NPR Recycled Water Strategic Plan Report Chapter 3 Strategic Plan Concept Options FINAL July 2019 3-30 3.5.3 Concept Option C3: Palo Alto IPR and NPR from Phase 3 Pipeline Concept Option C3 is similar to Concept Option C2 but uses an extension from the Phase 3 Pipeline (Concept Option A1) to serve the injection well sites. Similar to Concept Option C2, fully advanced treated recycled water would be served to all customers (NPR and IPR) in this concept option. Concept Option C3 is unique in that it assumes that the Phase 3 Pipeline for NPR has already been constructed and flows to the injection well field are limited by the excess capacity in the Phase 3 Pipeline during off-peak hours and outside of the peak irrigation season. This concept option mitigates the risk of decreasing NPR demand along the Phase 3 Pipeline and would enable phased implementation with NPR in the near term and IPR in the longer term. The Concept Option C3 alignment is shown in Figure 3-11. A summary of the customers included in this concept option and their corresponding demands are outlined in Table 3-12. The values shown assume the estimated demand for the Phase 3 Pipeline is maintained, which allows for approximately 2,280 AFY to be sent to IPR versus the 2,800 AFY in Concept Options C1 and C2. Correspondingly the project yield (total of recycled water and groundwater) was reduced to 5,000 AFY from 5,900 AFY. Notable items from Concept Option C3:  Phasing: Concept Option C3 represents a potential phased implementation with NPR in the near term and IPR in the longer term.  Treatment: Full advanced treatment facilities are assumed to be constructed near the RWQCP on the Measure E site. Use of this site would require Palo Alto voter approval to change the designated use to include treatment facilities .AWTS Fully advanced treated recycled water would be injected and mixed into the local groundwater system.  Customers: In a future phase, customers on the Phase 3 Pipeline would receive fully advanced treated recycled water through a new dedicated connection from the RWQCP. Both potable and non-potable customers would receive fully advanced treated recycled water due to use of same transmission pipeline despite the additional treatment being unnecessary for NPR customers.  Pipeline: Includes the Phase 3 Pipeline (Concept Option A1) and, in a future phase, a new connection from the RWQCP full advanced treatment facilities to Phase 3 and an extension to IPR injection wells. Treatment Facilities Recycled water from the RWQCP would be treated to full advanced treatment standards for injection. Because the potable and non-potable demands would be served from the same pipeline, the treatment facilities must be sized to treat both the flows to the injection wells plus the flows to the non-potable users, or 3.3 MGD. The non-potable demands will be served by nearly potable water. This concept option includes reverse osmosis concentrate treatment (see 3.2.3) that is assumed to be sited at Palo Alto’s Measure E site. Use of this site would require Palo Alto voter approval to change the designated use to include treatment facilities. Wellhead treatment is included to lower iron, manganese, and TDS concentrations to make the groundwater quality comparable to Palo Alto’s existing SFPUC supply. Pump Stations To meet the pressure criteria, Concept Option C3 includes an additional pump station beyond the ones identified for the Phase 3 Pipeline (Concept Option A1). This additional pump station would be at the connection between the Phase 3 Pipeline and the IPR extension pipeline. Recycled Water Strategic Plan Report Chapter 3 Strategic Plan Concept Options FINAL July 2019 3-31 Table 3-12: Demand and Facilities Summary for Concept Option C3, Palo Alto IPR and NPR from Phase 3 Pipeline Customer Location Number of Users Demand Total (AFY) Project Yield (AFY) Palo Alto – Phase 3 109 634 634 Anchor Customer No. 11 1 167 167 Palo Alto – Non-Phase 3 10 119 119 Palo Alto – IPR Injection Wells - 2,280 5,000 Total 120 3,200 5,900 Modeled Pipe ID (in) Approximate Length of Pipe (LF) 6 20,000 8 12,500 10 9,900 12 48,300 16 900 Total Length (LF) 91,600 Total Length (mi) 17.3 Description Performance Requirements IPR Booster Pump Station (PS1) Recycled Water Pump Station Phase 3 Booster Pump Station Required Flow 2,108 gpm 1,637 gpm 1,408 gpm Discharge Head 302 ft 200 ft 198 ft Pump Configuration (duty + standby) 3+1 2 3+1 Pump Motor Rating (each) 100 hp 100 hp 60 hp Total Installed Motor Horsepower 400 hp 200 hp 240 hp Recycled Water Treatment RO Concentrate Treatment Membrane Filtration, Reverse Osmosis, Advanced Oxidation Process with UV Needed due to total reuse quantity; nanofiltration assumed (MNS, 2017) Wellhead Treatment Included to lower iron, manganese, and TDS concentrations Notes: 1. Anchor Customer No. 1 is distinguished from the rest of the Phase 3 customers because this customer relies on groundwater for its water supply and does not receive water from Palo Alto. Recycled Water Strategic Plan Report Chapter 3 Strategic Plan Concept Options FINAL July 2019 3-32 Figure 3-11: Alignment for Concept Option C3, Palo Alto IPR and NPR from Phase 3 Pipeline Recycled Water Strategic Plan Report Chapter 3 Strategic Plan Concept Options FINAL July 2019 3-33 3.6 Concept Option D: DPR Concept Options 3.6.1 Concept Option D1: Palo Alto Dedicated DPR Concept Option D1 uses advanced treated recycled water to directly supplement the potable water supply for customers in Palo Alto. As discussed in Section 2.4, because there is no dedicated surface water treatment plant in the service area, treated drinking water augmentation is the only feasible DPR option available at this time. Treated water would be stored in a purified water tank for 8 hours and delivered to the potable water distribution system. A map showing the approximate alignment and connection points to the potable water system for Concept Option D1 is shown in Figure 3-12. As explained in Section 2.4.2, the demand for DPR (Table 3-13) was based on Palo Alto’s share of the RWQCP effluent flow. Notable items from Concept Option D1:  Treatment: Full advanced treatment plus other treatment process facilities are assumed to be constructed near the RWQCP on the Measure E site. Use of this site would require Palo Alto voter approval to change the designated use to include these facilities. Fully advanced treated recycled water would be injected directly into the potable distribution system. Additional monitoring and reporting of treatment performance is anticipated to demonstrate protection of public health.  Customers: Palo Alto potable water system customers.  Pump Stations: Two pump stations: one to convey fully advanced treated recycled water to storage (Storage Pump Station) and one from the storage to the distribution system (Distribution Pump Station).  Pipeline: Connects from treatment facilities to storage and from storage to potable water system at three separate points to add in blending and to match existing potable water system hydraulics.  Storage: Engineered storage of 4.75 MG is assumed to be located beneath the Palo Alto Municipal Golf Course driving range. Treatment Facilities Consistent with the SWRCB’s Feasibility Report on Developing Uniform Water Recycling Criteria for DPR, the water quality of the influent wastewater for DPR was assumed to be final effluent from the RWQCP (filtered and disinfected secondary effluent). Without specific regulatory requirements, the assumed Advanced Water Purification Facility (AWPF) treatment train is the full advanced treatment train with the additions of ozone-biologically active filtration and free chlorine process steps. In order to comply with the RWQCP discharge limits, facilities to treat the reverse osmosis concentrate would also be part of the AWTP. The AWTP treatment facilities are assumed to be sited at Palo Alto’s Measure E site. Use of this site would require Palo Alto voter approval to change the designated use to include these facilities. Additional monitoring and reporting of treatment performance is anticipated for DPR to demonstrate protection of public health. Concept Option D1 includes additional annual costs to reflect this additional, but undefined by regulations, monitoring. Storage Tank Sizing It is anticipated that an engineered storage buffer will be required between the AWPF and introduction of purified water to the potable distribution system. A potential location for this tank is beneath the Palo Alto Municipal Golf Course driving range. A preliminary estimate of the storage tank operational volume needed to serve Concept Option D1 users is 4.75 MG assuming 8 hours of cycling storage (filling, testing, and distributing from three different cells within the storage tank operational volume). Recycled Water Strategic Plan Report Chapter 3 Strategic Plan Concept Options FINAL July 2019 3-34 Table 3-13: Demand and Facilities Summary for Concept Option D1, Palo Alto Dedicated DPR Customer Location Demand Total (AFY) Palo Alto 5,300 Modeled Pipe ID (in) Approximate Length of Pipe (LF) 10 5,000 16 1,700 18 1,400 24 2,600 Total Length (LF) 10,700 Total Length (mi) 2.0 Description Performance Requirements To Storage Pump Station (PS1) Distribution Pump Station (PS2) Required Flow 4,382 gpm 3,285 gpm Discharge Head 31 ft 257 ft Pump Configuration (duty + standby) 3+1 3+1 Pump Motor Rating (each) 15 hp 100 hp Total Installed Motor Horsepower 60 hp 400 hp Recycled Water Treatment RO Concentrate Treatment Ozone, Biologically Active Filtration, Membrane Filtration, Reverse Osmosis, Advanced Oxidation Process with UV, Free Chlorine Needed due to total reuse quantity; nanofiltration assumed (MNS, 2017) Storage 4.75 million gallons Recycled Water Strategic Plan Report Chapter 3 Strategic Plan Concept Options FINAL July 2019 3-35 Figure 3-12: Alignment for Concept Option D1, Palo Alto Dedicated DPR Recycled Water Strategic Plan Report Chapter 4 Strategic Plan Concept Options Evaluation FINAL July 2019 4-1 Chapter 4 Strategic Plan Concept Options Evaluation 4.1 Approach for Concept Options Evaluation The concept options described in Chapter 3 were evaluated for estimated costs (e.g., capital, annual, unit cost of water) and for non-cost criteria. Section 4.2 describes the basis of the preliminary cost estimates while Section 4.3 presents the cost information by concept option. Section 4.4 describes the non-cost criteria scoring. Section 4.5 provides the evaluation of concept options with weighted scores for cost and non-cost criteria. Each concept option was evaluated for implementation costs (capital, operations, maintenance) based on technical information developed by the consulting team, described in Chapter 3, and using an approach for planning-level costs development discussed in this chapter. Following the implementation cost development, the concept options were evaluated for non-cost related criteria in a collaborative approach using input from agency stakeholders on priorities for the criteria and how to weigh criteria relative to one another. 4.2 Basis of Preliminary Cost Estimate This section provides an overview of the approach and methodology used to develop a preliminary estimate of costs for each concept option developed in this study. The estimated costs represent the Engineer’s opinion based on the current state of development for the project components. Specific information on the unit costs and source for each element is identified in the unit cost spreadsheets that are part of the detailed cost estimate provided in Appendix D. 4.2.1 Cost Estimate Classification The Association for the Advancement of Cost Engineering International (AACE International) has developed a cost estimate classification system that provides guidelines for applying the general principles of estimate classification to project cost estimates. The five estimate classes are presented in AACE International Recommended Practice No. 56R-08 (Cost Estimate Classification System – As Applied for the Building and General Construction Industries). The guideline establishes a relationship between the project maturity (i.e. project definition as percent of complete definition) and the accuracy and methodology used to produce the cost estimate. Based on the level of project definition, the cost estimates developed for this report are Class 5 as defined by Publication 56R-08. The accuracy range for Class 5 estimates in the Strategic Plan is between 20% below and 50% above estimated bid cost. 4.2.2 Cost Estimating Approach Cost estimates have been developed based on preliminary facility layouts and design criteria for pipeline alignments and pump stations. Construction costs were estimated using unit costs developed from past construction projects, industry cost estimate resources (primarily RSMeans Heavy Construction Cost Data) as well as engineering allowances based on engineering judgement and previous project experience. Operations and maintenance (O&M) costs are based on estimated labor hours, consumables, significant regular O&M activities (e.g. recoating of exposed metallic surfaces) and energy costs. Raw Construction Cost Raw construction costs are estimated by major work or component line item based on a unit cost multiplied by estimated quantity. Unit costs were developed using:  RSMeans Heavy Construction Cost Data (RSMeans);  Manufacturer’s equipment proposals; and  Experience with prior projects and activities of similar size or configuration. Recycled Water Strategic Plan Report Chapter 4 Strategic Plan Concept Options Evaluation FINAL July 2019 4-2 Historic unit cost or out-of-area unit cost information was adjusted to June 2018 dollars for the project vicinity using Engineering News Record’s (ENR) Construction Cost Index (CCI) and the RSMeans Location Factor. Cost Estimate Benchmark Index The concept options’ preliminary cost estimates presented herein are benchmarked to ENR CCI for San Francisco. The estimate is in June 2018 dollars, with an ENR CCI SF index of 12,015. Construction Cost Allowances and Contingencies From the raw construction cost subtotal, several construction cost factors are applied to develop an estimated total construction cost. The construction cost factors used are listed below.  9% Sales Tax on Materials. Sales tax on materials was estimated as 9.0% (local sales tax) applied to 50% of capital costs (not including General Requirement costs). The assumption is that materials and equipment represent 50% of the raw construction cost.  40% Construction Contingency. The construction contingency is defined as unknown costs due to incomplete engineering during the preliminary design phase and uncertainty about full scope of the project. The contingency is applied to the construction cost subtotal that are estimated as a percentage of defined project costs (i.e. raw construction cost subtotal). As the level of project definition and understanding increases and the level of unknown decreases, the construction contingency typically decreases. For this report, a construction contingency of 40% was applied to the raw construction cost estimates.  10% Market Adjustment Factor. To account for bidding market price increases, a Market Adjustment Factor of 10% has been applied. Capital Cost Allowances  15% Engineering Services (Design) & Administration Services. Engineering services include field investigations (e.g. surveys, geotechnical reports, hazardous materials investigations), final design, contract document development (i.e. plans and specifications), preparation of detailed cost estimates, and project scheduling. Administration costs include Palo Alto’s project management and staff time during construction. An engineering and City administrative services allowance of 15% was applied to the total construction cost.  10% Construction Management. Costs for construction management, including inspection, can vary greatly with project size and complexity and whether the Owner performs this work with in- house staff or through a consultant. A construction management factor of 10% was applied to the total construction cost.  3% Engineering Services During Construction. Engineering services during construction (ESDC) includes submittal and request for information reviews, design clarifications, and startup support services. An ESDC factor of 3% was applied to the total construction cost. Property Acquisition For facilities such as pump stations and satellite treatment located outside of the public right of way or outside the RWQCP, land would need to be purchased or leased. The market rate for the project area was assumed to be $500 per square foot. These land costs were added to a concept option’s total capital cost following the allowances and contingencies. Purchase or lease of land includes RWQCP partner-owned properties. However, in the case of Concept Option D1, Palo Alto Dedicated DPR, which assumes the engineered storage tank is beneath the Palo Alto Municipal Golf Course, acquisition of the land is not required since normal golf course operations can resume following construction. In order to account for Recycled Water Strategic Plan Report Chapter 4 Strategic Plan Concept Options Evaluation FINAL July 2019 4-3 the potential loss of revenue due to construction of this storage facility, an allowance for loss of revenue was applied. This cost was added to total capital cost following all allowances and contingencies. Property acquisition was not included for injection wells since the impact to properties is considered minimal. Operations and Maintenance (O&M) Costs O&M requirements and annual costs were derived from experience on similar projects, as well as input from Palo Alto. The three components used to develop annual O&M costs were:  Labor – Labor costs associated with the water treatment and pump station O&M is calculated on an hourly basis. The required labor hours are estimated based on historical data. The average hourly cost of O&M personnel, which includes all wages and benefits to the operator, is assumed to be $100 per hour. Annual inspection and maintenance for storage tanks were estimated as 1 percent of the total capital costs for that element, while conveyance O&M was based on a cost metric per linear foot of pipeline.  Energy – Energy costs for pump stations are a combination of an energy charge (per kWh) and the kWh required input for each pump station in a concept option. Energy costs for treatment are estimated as a combined cost with consumables on a per unit of water basis (cost per MGD).  Consumables – Consumables are a major component of operational expenditures and include resources that are intended and expected to be used and replaced routinely. Consumable costs for treatment were estimated on a per unit of water basis (cost per MGD). Consumable costs for pump stations were estimated as a percentage of the raw construction cost. Consumable costs are not applied to the pipeline portion of each concept option. 4.2.3 Wastewater/Recycled Water Treatment Construction Costs Wastewater and recycled water treatment construction costs have been developed for each concept option, where needed, on a per MGD basis. Per MGD cost estimates for membrane bioreactor (MBR) and for the advanced treatment facilities (membrane filtration, reverse osmosis, advanced oxidation process with UV, ozone, biologically active filtration, chlorination) are based on previous project experience. 4.2.4 Pipeline Construction Pipeline construction costs have been developed for each concept option as described in the following sections. Pipeline capital costs include open-cut, special crossing elements, and pipe rehabilitation. Pipeline Construction Cost – Open Cut The pipe material for open cut installation is assumed to be high density polyethylene (HDPE). Based on the estimated pressures within the system and a surcharge allowance, a pressure rating of 200 psi was chosen as a suitable pressure rating for the pipe network. The corresponding dimension ratio resulted in DR 11. A pipeline cost estimating tool was used to generate unit costs for underground pipeline construction for HDPE ranging in size from 8- to 30-inch (nominal diameter) assuming an average of 5-foot depth of cover, in urban settings. The estimating tool uses the following to develop installed unit costs:  Historical engineering and bid price data for HDPE pipelines, appurtenances, traffic control, potholing, cathodic protection, excess soil disposal tipping fees, and urban setting production rates.  RSMeans unit costs for trench shoring, excavation, backfill, backfill compaction, pavement, grinding and milling, aggregate base, and pavement restoration including valves, haul to disposal, labor/installation, and dewatering. Recycled Water Strategic Plan Report Chapter 4 Strategic Plan Concept Options Evaluation FINAL July 2019 4-4 The tool contains various input parameters including depth of cover, type of trench backfill and source (i.e. import vs. native material), condition of soil (i.e. clean vs. contaminated), percentage of backfill to be imported, amount of traffic control needed (i.e. none, light, or heavy), percentage of alignment requiring dewatering, production rate, and valve and pothole frequency. Using these inputs, the tool estimates the construction quantities related to buried piping (i.e. excavation volume), and subsequently, the associated unit cost per length of pipe. The unit costs are summarized in Table 4-1. Table 4-1: Unit Cost of HDPE Pipe Modeled Pipe Internal Diameter (ID) (in) HDPE DR 11 ID (in) HDPE DR 11 Nominal Outer Diameter (OD) (in) Unit Cost ($/LF) 6 6.96 8 $200 8 8.68 10 $212 10 10.29 12 $254 12 12.92 16 $277 16 16.15 20 $334 18 19.37 24 $381 24 24.22 30 $462 Assumptions:  Pipeline is in an urban setting o Asphalt concrete pavement replacement would be the width of the trench plus 6-inches on each side o Heavy traffic control required o One pothole per 100 LF of pipe required  Average depth of cover of 5 feet  100% of soil excavated is hauled to a landfill or reused offsite and 100% of soil required for backfill is imported  Isolation valves and other appurtenances amount to 20% or the pipeline material costs Production rate is 150-linear feet of pipeline construction per day Note: HDPE pipe sizes are IPS (outside diameter controlled) based on AWWA C906 Pipeline Construction Cost – Special Crossings For special crossings (such as highway and creek crossings), a range of crossing methods was assessed for the preferred crossing method at each location. Following this assessment, Pilot Tube Guided Auger Boring (PTGAB) was considered the default method for all trenchless underground crossings. PTGAB is a costlier method compared to other trenchless techniques and may be required due to the concept option’s smaller pipeline diameters and certain soil conditions in the Study Area. Therefore, it is a conservative basis for the purpose of developing a planning-level cost estimate. PTGAB is favorable in conditions with little to no groundwater; therefore, if further geotechnical investigations identify high groundwater along the pipeline route, another trenchless method should be considered. Each special crossing was evaluated as a potential trenchless underground crossing, but where feasible, crossings were also evaluated for less costly construction methods. Therefore, non-trenchless installation methods were utilized where possible. This was applied when pipeline alignments crossed bridges and box culverts; it was assumed that under these specific conditions, a pipe bridge could be used rather than a trenchless method. Pipe bridges are generally lower cost and allow for reduced permitting efforts and traffic control during construction compared to trenchless methods. Recycled Water Strategic Plan Report Chapter 4 Strategic Plan Concept Options Evaluation FINAL July 2019 4-5 Under the Phase 3 Pipeline design (Woodard & Curran 2018), feasible trenchless construction methods included microtunneling and horizontal directional drilling (HDD). Open cut methods were assumed when the alignment crossed over an existing culvert and there is adequate cover over the box culvert. Table 4-2 summarizes the unit costs used for special crossings. These costs were developed based on a collection of past project experience and unit costs taken from RSMeans. Table 4-2: Special Crossing Unit Costs Element Unit Unit Cost Trenchless Microtunnel Launch Pit Lump sum $300,000 Microtunnel Receiving Pit Lump sum $150,000 Microtunnel Casing and Pipe (36-inch) Linear foot $1,728 HDD (24-inch bore diameter) Linear foot $528 PTGAB (HDPE) 6-inch Linear foot $375 8-inch Linear foot $500 10-inch Linear foot $625 12-inch Linear foot $750 16-inch Linear foot $1,000 20-inch Linear foot $1,250 PTGAB Launch Pit Lump sum $258,000 PTGAB Receiving Pit Lump sum $148,000 Pipe Bridge (DIP, Class 50, Mechanical Joint) 6-inch Linear foot $66 8-inch Linear foot $86 10-inch Linear foot $108 16-inch Linear foot $175 Pipe Bridge Support Lump sum $5,000 Pipeline Construction Cost – Pipe Rehabilitation Pipelines that serve Los Altos Hills under Concept Options A2 and A3 were assumed to convey recycled water via re-lined abandoned PHWD 6- and 8-inch cast iron pipe (CIP) water mains in Purissima Road. The 6- and 8-inch water mains were abandoned in 1995. The condition of the pipes is unknown but was assumed to be in relatively good condition. Under current recycled water demand projections, there is sufficient capacity in the existing pipes. Cured-in-Place-Pipe (CIPP) lining was assumed to be the more practical method of rehabilitation compared to pipe bursting due to the minimal pipe cover depths, which were estimated by PHWD to be approximately three to four feet. The shallow cover could present problems of ground heave and soil displacement if pipe bursting were to take place. CIPP lining costs, for both the 6- and 8-inch mains, were estimated from historical data. Unit costs include closed-circuit television inspection and minor cleaning prior to lining. Advanced cleaning Recycled Water Strategic Plan Report Chapter 4 Strategic Plan Concept Options Evaluation FINAL July 2019 4-6 mechanisms to address instances of tuberculation and point repair to address structural deficiencies are not included in the cost. 4.2.5 Pump Station Construction Cost Pump station costs for concept options were estimated using a pump cost curve based on each pump station’s total installed motor horsepower. This cost curve is applicable to pump stations of average complexity. The pump cost curve was determined using the following equation: 𝐶𝑜𝑠𝑡 ቆ $ 𝐻𝑜𝑟𝑠𝑒𝑝𝑜𝑤𝑒𝑟ቇ = 17437 ∗ 𝑇𝑜𝑡𝑎𝑙 𝐻𝑜𝑟𝑠𝑒𝑝𝑜𝑤𝑒𝑟 ି.ଷ଺ Pump station costs for Concept Option A1, Phase 3 Pipeline, including costs for the Phase 3 recycled water pump station and booster pump station were taken from the Phase 3 Preliminary Design Report (Woodard & Curran 2018). Hydropneumatic and Surge Tanks Costs Concept Options with multiple pump stations would benefit from the installation of recycled water tanks, but given the challenge of acquiring land in the Study Area to construct such tanks, hydropneumatic tanks were assumed instead. Hydropneumatic tanks would regulate system pressures to meet demand while acting as a cushion for pumps in series in a closed conduit system. Since the tanks contain both water and air under pressure, they can exert or absorb pressure throughout the system when needed. Costs for surge tanks were also included for some concept options assuming the need to mitigate variations due to rapid changes in flow. A surge analysis would be required to determine the need for surge tanks. The tank costs were estimated from previous experience with projects of similar characteristics and configuration. 4.2.6 Extraction Well Treatment Construction Costs For IPR concept options, wellhead treatment was assumed to be required at all extraction wells. The wellhead treatment capital and O&M costs were developed based on calculations completed for Palo Alto’s 2017 Water Integrated Resources Plan. Wellhead treatment capital costs include reverse osmosis treatment for iron, manganese, and total dissolved solids (Option 4 from the 2000 Long Term Water Supply Study, updated for the 2017 Water Integrated Resources Plan). These wellhead treatment capital costs do not account for land acquisition. Therefore, separate land costs were developed for the Rinconada and Peers wells, which would require additional land to be purchased to locate wellhead treatment facilities. These land costs are also sourced from Palo Alto’s 2017 Water Integrated Resources Plan. In addition to wellhead treatment, O&M costs for extraction wells also included the Valley Water groundwater pumping charge. This cost was based on projected Valley Water rates for groundwater pumping in the Study Area. 4.3 Engineer’s Opinion of Probable Cost Summary Table 4-3 below provides a summary of probable capital and O&M costs, as well as unit costs, for each developed concept option. Detailed cost estimates are included in Appendix D. Recycled Water Strategic Plan Report Chapter 4 Strategic Plan Concept Options Evaluation FINAL July 2019 4-7 Table 4-3: Summary of Engineer’s Opinion of Probable Capital and O&M Costs Concept Option ID & Name Capital Cost O&M ($/Year) Yield (AFY) Unit Cost ($/AF) A1: NPR Palo Alto Phase 3 $47,800,000 $290,000 800 $3,400 A2: NPR Palo Alto Phase 3 Extended to Foothills $63,000,000 $520,000 1,100 $3,400 A3: NPR Palo Alto Phase 3 Extended to Foothills and Los Altos $85,100,000 $680,000 1,200 $4,000 A4: NPR Mountain View $6,200,000 $100,000 200 $2,100 A5: NPR Mountain View Extended to Los Altos $72,600,000 $400,000 900 $4,600 A6: NPR East Palo Alto $20,700,000 $150,000 500 $2,400 B1: NPR Satellite Treatment Plant $129,600,000 $1,370,000 900 $8,900 C1: Palo Alto Dedicated IPR $92,200,000 $14,830,000 5,900 $3,300 C2: Palo Alto IPR and NPR $152,100,000 $16,920,000 6,100 $4,000 C3: Palo Alto IPR and NPR from Phase 3 $198,400,000 $15,780,000 5,900 $4,400 D1: Palo Alto Dedicated DPR $104,600,000 $8,010,000 5,300 $2,500 Note: Costs based on an ENR CCI June 2018 SF index of 12,015. Costs are consistent with a Class 5 estimate (- 20% to +50%) (AACE 2008). Capital costs are amortized at 3% over 30 years. 4.4 Concept Option Evaluation Non-Cost Criteria In evaluating concept options, Palo Alto and Valley Water solicited input from stakeholders on factors to consider in addition to cost. The stakeholders aided in developing the list of non-cost criteria and Palo Alto and Valley Water staff participated in the development of scoring rubrics to apply each non-cost criteria to the various concept options. The selected non-cost criteria are:  Water Supply Resiliency  Public Acceptance  Adaptability  Level of Agency Coordination  Level of Customer Retrofits/Coordination  Regulatory Complexity  Institutional Complexity  Regional Perspective  Social and Economic Benefit  Environmental Benefit For each criterion, concept options could score up to 5 points. A description of the criteria, the scoring rubric for that criteria, and how each concept option scored with respect to those criteria are described in the following sections. Recycled Water Strategic Plan Report Chapter 4 Strategic Plan Concept Options Evaluation FINAL July 2019 4-8 4.4.1 Water Supply Resiliency This criterion evaluates concept options based on their total potential recycled water demand or amount of water supplied. Concept Options were scored as follows:  5 points: potential demands totaling > 2,000 AFY  4 points: potential demands totaling between 1,501 and 2,000 AFY  3 points: potential demands totaling between 1,001 and 1,500 AFY  2 points: potential demands totaling between 501 and 1,000 AFY  1 point: potential demands totaling ≤ 500 AFY Table 4-4: Concept Option Scores for Water Supply Resiliency Concept Option ID Score Rationale A1: NPR Palo Alto Phase 3 2 800 AFY A2: NPR Palo Alto Phase 3 Extended to Foothills 3 1,100 AFY A3: NPR Palo Alto Phase 3 Extended to Foothills and Los Altos 3 1,250 AFY A4: NPR Mountain View 1 200 AFY A5: NPR Mountain View Extended to Los Altos 2 900 AFY A6: NPR East Palo Alto 1 500 AFY B1: NPR Sate Satellite Treatment Plant 2 900 AFY C1: Palo Alto Dedicated IPR 5 2,800 AFY C2: Palo Alto IPR and NPR 5 3,000 AFY C3: Palo Alto IPR and NPR from Phase 3 5 3,200 AFY D1: Palo Alto Dedicated DPR 5 5,300 AFY Note. For IPR options, the rationale is based on purified recycled water yield. Recycled Water Strategic Plan Report Chapter 4 Strategic Plan Concept Options Evaluation FINAL July 2019 4-9 4.4.2 Public Acceptance Public acceptance criterion gauges the likelihood of potential customers accepting recycled water and continuing to use it for the foreseeable future. Customer acceptance of NPR is assumed to be greater than potable reuse. Public properties, which are mainly owned by agencies that have been engaged in the recycled water planning process, are assumed to be easier to convert to recycled water usage than privately owned properties. For potable reuse options, given initial feedback from members of the Palo Alto Utilities Advisory Commission and City Council at their respective study sessions held in 2018, DPR is assumed to have greater public acceptance than IPR. Concept Options were scored as follows:  5 points: NPR concept options serving public properties only  4 points: NPR concept options including private properties but with customers (or an anchor customer) eager to accept recycled water or where a detailed market assessment has been performed  3 points: NPR including private properties  2 points: DPR concept options  1 point: IPR concept options Table 4-5: Concept Option Scores for Public Acceptance Concept Option ID Score Rationale A1: NPR Palo Alto Phase 3 4 Demands recently refined during pre-design A2: NPR Palo Alto Phase 3 Extended to Foothills 4 Phase 3 demands recently refined during pre-design. Additional area includes strong anchor A3: NPR Palo Alto Phase 3 Extended to Foothills and Los Altos 4 Phase 3 demands recently refined during pre-design. Additional area includes strong anchor A4: NPR Mountain View 4 Demands from Mountain View RWFS A5: NPR Mountain View Extended to Los Altos 3 Mountain View demands from RWFS. Demand in Los Altos includes a large private user. A6: NPR East Palo Alto 3 Includes numerous private properties in East Palo Alto B1: NPR Satellite Treatment Plant 4 Phase 3 demands recently refined during pre-design. Demand in Los Altos is non-potable for public properties only C1: Palo Alto Dedicated IPR 1 IPR C2: Palo Alto IPR and NPR 1 IPR C3: Palo Alto IPR and NPR from Phase 3 1 IPR D1: Palo Alto Dedicated DPR 2 DPR Recycled Water Strategic Plan Report Chapter 4 Strategic Plan Concept Options Evaluation FINAL July 2019 4-10 4.4.3 Adaptability Adaptability criterion assesses the potential to repurpose the proposed facilities in case of changes in the demand base. Concept options with the lowest risk of assets being stranded in the future scored highest. The concept options that included both NPR and IPR uses were considered most adaptable. Because the recycled water used for these concept options would be fully-advanced treated water suitable for groundwater injection, if NPR decreased, the water could be redirected to groundwater recharge. After the combined NPR and IPR concept options, the IPR-only concept option was considered the most adaptable given the ability to use the IPR treatment train within the DPR treatment train and repurpose the pipeline to the injection wells for conveyance of DPR water to the drinking water distribution system. IPR and DPR conveyance infrastructure could be repurposed to serve NPR customers if potable reuse for some reason became unacceptable to the community, but the injection wells and the advanced water purification facilities would be stranded assets. The NPR pipelines, which generally consist of smaller diameters than the IPR and DPR concept options, provide fewer repurposing opportunities than the IPR and DPR pipelines. Among the NPR concept options, those with larger diameter pipelines provide more opportunities for future uses. Concept Options were scored as follows:  5 points: NPR/IPR  4 points: IPR only  3 points: DPR or NPR with backbone ≥ 16-inch and non-extensive branching  2 points: NPR with backbone < 16-inch and non-extensive branching  1 point: NPR with extensive branching Table 4-6: Concept Option Scores for Adaptability Concept Option ID Score Rationale A1: NPR Palo Alto Phase 3 2 NPR, pipeline backbone 12-inch A2: NPR Palo Alto Phase 3 Extended to Foothills 1 NPR, extensive pipeline branches A3: NPR Palo Alto Phase 3 Extended to Foothills and Los Altos 1 NPR, extensive pipeline branches A4: NPR Mountain View 2 NPR, pipeline ranges from 12- to 6-inch A5: NPR Mountain View Extended to Los Altos 3 NPR, pipeline backbone 6-inch with several long branches following the 16-inch segment A6: NPR East Palo Alto 2 NPR, pipeline backbone ranges from 12- to 10- inch with a few relatively short branches B1: NPR Satellite Treatment Plant 1 NPR, pipeline branching begins at satellite facility C1: Palo Alto Dedicated IPR 4 IPR only C2: Palo Alto IPR and NPR 5 NPR with IPR C3: Palo Alto IPR and NPR from Phase 3 5 NPR with IPR D1: Palo Alto Dedicated DPR 3 DPR Recycled Water Strategic Plan Report Chapter 4 Strategic Plan Concept Options Evaluation FINAL July 2019 4-11 4.4.4 Level of Agency Coordination This criterion reflects the effort required by the lead agency to implement the concept option including design, use permitting, and operating requirements. Centralized NPR concept options were considered preferable to satellite NPR, IPR and DPR, all of which require new treatment processes to operate. DPR, which requires a new classification of treatment operators, was considered the least favorable concept option in this regard. Concept Options were scored as follows:  5 points: Project previously evaluated and supported by community  4 points: NPR serving only lead agency or RWQCP partner owned sites or Project has already gone through public reviews  3 points: NPR serving various sites  2 points: NPR with satellite treatment or IPR  1 point: DPR Table 4-7: Concept Option Scores for Level of Agency Coordination Concept Option ID Score Rationale A1: NPR Palo Alto Phase 3 4 Completed facilities plan and EIR A2: NPR Palo Alto Phase 3 Extended to Foothills 3 NPR including non-partner sites in Palo Alto and Los Altos Hills A3: NPR Palo Alto Phase 3 Extended to Foothills and Los Altos 3 NPR including non-partner sites in Palo Alto, Los Altos, and Los Altos Hills A4: NPR Mountain View 5 Mountain View prepared to implement project pending current update (July 2019) of RWFS A5: NPR Mountain View Extended to Los Altos 3 NPR including non-partner sites in Los Altos A6: NPR East Palo Alto 3 NPR including non-partner sites in East Palo Alto B1: NPR Satellite Treatment Plant 2 New satellite treatment facilities C1: Palo Alto Dedicated IPR 2 New treatment facilities for IPR C2: Palo Alto IPR and NPR 2 New treatment facilities for IPR C3: Palo Alto IPR and NPR from Phase 3 2 New treatment facilities for IPR D1: Palo Alto Dedicated DPR 1 New treatment facilities for DPR Recycled Water Strategic Plan Report Chapter 4 Strategic Plan Concept Options Evaluation FINAL July 2019 4-12 4.4.5 Level of Customer Retrofits/Coordination Level of customer retrofits/coordination criterion is the effort and improvements required by the customer to use the recycled water. Having no retrofit requirements would be preferred, followed by changing meters for customers who already have a separate irrigation meter. Conversion of existing buildings is the least preferred due to anticipated complications with local public health approvals to verify there are no cross-connections within the retrofitted building. Concept Options were scored as follows:  5 points: No customer retrofits  4 points: Irrigation use only with separate meters  3 points: Irrigation use only, or indoor use limited to future development  2 points: Irrigation and indoor uses within existing buildings  1 point: Indoor uses only within existing buildings Table 4-8: Concept Option Scores for Level of Customer Retrofits/Coordination Concept Option ID Score Rationale A1: NPR Palo Alto Phase 3 2 Includes indoor use for existing Palo Alto customers A2: NPR Palo Alto Phase 3 Extended to Foothills 2 Includes indoor use for existing Palo Alto customers A3: NPR Palo Alto Phase 3 Extended to Foothills and Los Altos 2 Includes indoor use for existing Palo Alto customers A4: NPR Mountain View 2 Includes indoor use for existing Mountain View customer A5: NPR Mountain View Extended to Los Altos 2 Includes indoor use for existing Mountain View customer A6: NPR East Palo Alto 3 Includes indoor uses limited to future developments in East Palo Alto B1: NPR Satellite Treatment Plant 2 Includes indoor use for existing Palo Alto customers C1: Palo Alto Dedicated IPR 5 IPR does not require customer retrofits C2: Palo Alto IPR and NPR 3 NPR limited to irrigation C3: Palo Alto IPR and NPR from Phase 3 3 Includes indoor use for existing Palo Alto customers D1: Palo Alto Dedicated DPR 5 DPR does not require customer retrofits Recycled Water Strategic Plan Report Chapter 4 Strategic Plan Concept Options Evaluation FINAL July 2019 4-13 4.4.6 Regulatory Complexity Regulatory complexity criterion is a measure of the precedence of proposed uses of recycled water and permitting required for implementation. As a well-established practice, permitting for NPR will be more streamlined than potable reuse. Permitting for IPR which has established regulations will be less complex than DPR which does not yet have established regulations. Concept Options were scored as follows:  5 points: NPR for irrigation only  4 points: NPR including non-irrigation uses  3 points: IPR only  2 points: NPR with IPR  1 point: DPR only Table 4-9: Concept Option Scores for Regulatory Complexity Concept Option ID Score Rationale A1: NPR Palo Alto Phase 3 4 NPR including non-irrigation uses A2: NPR Palo Alto Phase 3 Extended to Foothills 4 NPR including non-irrigation uses A3: NPR Palo Alto Phase 3 Extended to Foothills and Los Altos 4 NPR including non-irrigation uses A4: NPR Mountain View 4 NPR including non-irrigation uses A5: NPR Mountain View Extended to Los Altos 4 NPR including non-irrigation uses A6: NPR East Palo Alto 4 NPR including non-irrigation uses B1: NPR Satellite Treatment Plant 4 NPR including non-irrigation uses C1: Palo Alto Dedicated IPR 3 IPR C2: Palo Alto IPR and NPR 2 NPR with IPR C3: Palo Alto IPR and NPR from Phase 3 2 NPR with IPR D1: Palo Alto Dedicated DPR 1 DPR Recycled Water Strategic Plan Report Chapter 4 Strategic Plan Concept Options Evaluation FINAL July 2019 4-14 4.4.7 Institutional Complexity Institutional complexity criterion reflects the number of local agencies that would be involved in implementation and operation of the concept option. The more favorable concept options were those with fewer agencies involved since institutional complexity increases with the number of agencies involved. Concept Options were scored as follows:  5 points: One local agency  4 points: Two local agencies  3 points: Three local agencies  2 points: Four local agencies  1 point: Five local agencies Table 4-10: Concept Option Scores for Institutional Complexity Concept Option ID Score Rationale A1: NPR Palo Alto Phase 3 5 1 agency: Palo Alto A2: NPR Palo Alto Phase 3 Extended to Foothills 3 3 agencies: Palo Alto, Los Altos Hills, Purissima Hills Water District A3: NPR Palo Alto Phase 3 Extended to Foothills and Los Altos 1 5 agencies: Palo Alto, Los Altos, Los Altos Hills, Cal Water, Purissima Hills Water District A4: NPR Mountain View 5 1 agency: Mountain View A5: NPR Mountain View Extended to Los Altos 3 3 agencies: Mountain View, Los Altos, Cal Water A6: NPR East Palo Alto1 3 3 agencies: Palo Alto, East Palo Alto Sanitary District, East Palo Alto B1: NPR Satellite Treatment Plant 3 3 agencies: Palo Alto, Los Altos, Cal Water C1: Palo Alto Dedicated IPR 5 1 agency: Palo Alto C2: Palo Alto IPR and NPR 5 1 agency: Palo Alto C3: Palo Alto IPR and NPR from Phase 3 5 1 agency: Palo Alto D1: Palo Alto Dedicated DPR 5 1 agency: Palo Alto Note: 1. Although the infrastructure for Concept Option A6 is sized for anticipated Menlo Park demands, the short-term project does not require coordination with Menlo Park. Recycled Water Strategic Plan Report Chapter 4 Strategic Plan Concept Options Evaluation FINAL July 2019 4-15 4.4.8 Regional Perspective Regional perspective criterion reflects the number of local agencies benefitting from the implementation of the concept option. In contrast to the institutional complexity criterion, the more favorable concept options were those that included multiple agencies. Concept Options were scored as follows:  5 points: Majority of RWQCP partners, multiple water retailers and multiple wholesalers benefit  4 points: Multiple water retailers and multiple wholesalers benefit  3 points: Multiple water retailers but only one wholesaler benefit  2 points: One water retailer but multiple wholesalers benefit  1 point: One water retailer and one wholesaler benefit Recycled Water Strategic Plan Report Chapter 4 Strategic Plan Concept Options Evaluation FINAL July 2019 4-16 Table 4-11: Concept Option Scores for Regional Perspective Concept Option ID Score Rationale A1: NPR Palo Alto Phase 3 1 Partner Agency: Palo Alto; Retailers: Palo Alto; Wholesaler: San Francisco Public Utilities Commission A2: NPR Palo Alto Phase 3 Extended to Foothills 3 Partner Agency: Palo Alto, Los Altos Hills Retailers: Palo Alto, Purissima Hills Water District Wholesaler: San Francisco Public Utilities Commission A3: NPR Palo Alto Phase 3 Extended to Foothills and Los Altos 4 Partner Agency: Palo Alto, Los Altos, Los Altos Hills Retailers: Palo Alto, Cal Water, Purissima Hills Water District Wholesaler: San Francisco Public Utilities Commission, Valley Water A4: NPR Mountain View 1 Partner Agency: Mountain View Retailers: Mountain View Wholesaler: San Francisco Public Utilities Commission A5: NPR Mountain View Extended to Los Altos 4 Partner Agency: Mountain View, Los Altos Retailers: Mountain View, Cal Water Wholesaler: San Francisco Public Utilities Commission, Valley Water A6: NPR East Palo Alto1 3 Partner Agency: East Palo Alto Sanitary District, Palo Alto Retailers: East Palo Alto, Palo Alto Wholesaler: San Francisco Public Utilities Commission B1: NPR Satellite Treatment Plant 4 Partner Agency: Palo Alto, Los Altos Retailers: Palo Alto, Cal Water Wholesaler: San Francisco Public Utilities Commission, Valley Water C1: Palo Alto Dedicated IPR 1 Partner Agency: Palo Alto Retailers: Palo Alto Wholesaler: San Francisco Public Utilities Commission C2: Palo Alto IPR and NPR 1 Partner Agency: Palo Alto Retailers: Palo Alto Wholesaler: San Francisco Public Utilities Commission C3: Palo Alto IPR and NPR from Phase 3 1 Partner Agency: Palo Alto Retailers: Palo Alto Wholesaler: San Francisco Public Utilities Commission D1: Palo Alto Dedicated DPR 1 Partner Agency: Palo Alto Retailers: Palo Alto Wholesaler: San Francisco Public Utilities Commission Note: 1. Although the infrastructure for Concept Option A6 is sized for anticipated Menlo Park demands, the short-term project does not directly benefit Menlo Park . Recycled Water Strategic Plan Report Chapter 4 Strategic Plan Concept Options Evaluation FINAL July 2019 4-17 4.4.9 Social and Economic Benefit Social and economic benefit criterion reflects the benefits of improved water supply reliability. Concept Options were scored as follows:  5 points: Supports a disadvantaged community  4 points: Supports community with projected shortfalls by 2020 in normal years  3 points: Supports community with projected shortfalls by 2020 in dry years  2 points: Supports community with projected shortfalls by 2040  1 point: No projected shortfalls Table 4-12: Concept Option Scores for Social and Economic Benefit Concept Option ID Score Rationale A1: NPR Palo Alto Phase 3 1 No projected shortfalls A2: NPR Palo Alto Phase 3 Extended to Foothills 1 No projected shortfalls A3: NPR Palo Alto Phase 3 Extended to Foothills and Los Altos 1 No projected shortfalls A4: NPR Mountain View 2 Mountain View has projected shortfall by 2040 A5: NPR Mountain View Extended to Los Altos 2 Mountain View has projected shortfall by 2040 A6: NPR East Palo Alto 5 East Palo Alto is a disadvantaged community; East Palo Alto and Menlo Park have projected shortfalls B1: NPR Satellite Treatment Plant 1 No projected shortfalls C1: Palo Alto Dedicated IPR 1 No projected shortfalls C2: Palo Alto IPR and NPR 1 No projected shortfalls C3: Palo Alto IPR and NPR from Phase 3 1 No projected shortfalls D1: Palo Alto Dedicated DPR 1 No projected shortfalls Recycled Water Strategic Plan Report Chapter 4 Strategic Plan Concept Options Evaluation FINAL July 2019 4-18 4.4.10 Environmental Benefit Environmental benefit criterion considers the improvement to the RWQCP’s discharge to the San Francisco Bay. NPR diverts more contaminants from Bay discharge, and it is assumed that IPR and DPR will involve discharge of reverse osmosis concentrate with trace organics, nutrients, and trace metals. Concept Options were scored as follows:  5 points: NPR > 999 AFY  4 points: NPR 0 to 999 AFY  3 points: NPR with IPR  2 points: IPR only  1 point: DPR only Table 4-13: Concept Option Scores for Environmental Benefit Concept Option ID Score Rationale A1: NPR Palo Alto Phase 3 4 NPR 800 AFY A2: NPR Palo Alto Phase 3 Extended to Foothills 5 NPR 1,100 AFY A3: NPR Palo Alto Phase 3 Extended to Foothills and Los Altos 5 NPR 1,200 AFY A4: NPR Mountain View 4 NPR 200 AFY A5: NPR Mountain View Extended to Los Altos 4 NPR 900 AFY A6: NPR East Palo Alto 4 NPR 500 AFY B1: NPR Satellite Treatment Plant 5 NPR 900 AFY C1: Palo Alto Dedicated IPR 2 IPR only C2: Palo Alto IPR and NPR 3 NPR with IPR C3: Palo Alto IPR and NPR from Phase 3 3 NPR with IPR D1: Palo Alto Dedicated DPR 1 DPR only 4.5 Concept Option Scoring 4.5.1 Non-Cost Scoring Palo Alto, Valley Water, and Mountain View, as the Strategic Plan primary stakeholders, weighted the non-cost criteria. Table 4-14 shows the average of the provided weights. Table 4-15 presents the ranking of concept options based on the non-cost criteria alone. Considering only the non-cost criteria, the top scoring concept options are A2, NPR Palo Alto Phase 3 Extended to Foothills and the IPR concept options (Concept Options C1- C3) while the lowest scoring concept options are D1, Palo Alto Dedicated DPR and B1, NPR Satellite Treatment Plant. The previously recommended Palo Alto Phase 3 (Concept Option A1) and Mountain View long term project (Concept Option A4) rank in the middle. Recycled Water Strategic Plan Report Chapter 4 Strategic Plan Concept Options Evaluation FINAL July 2019 4-19 Table 4-14: Non-Cost Criteria Weighting Criteria Percent of Non-Cost Score Weighted Maximum Score per Criteria (Maximum score per Criteria being 5) Amount of water supplied 19% 95 Public acceptance 17% 85 Adaptability 10% 50 Level of agency coordination 9% 45 Level of customer retrofits/coordination 5% 25 Regulatory complexity 6% 30 Institutional complexity 9% 45 Regional perspective 8% 40 Social and economic benefit 10% 50 Environmental benefit 7% 35 Total 100% 500 Table 4-15: Non-Cost Ranking Rank Score (Maximum Score = 500) Concept Option 1 291 A2: NPR Palo Alto Phase 3 Extended to Foothills 2 290 C1: Palo Alto Dedicated IPR 3 289 C2: Palo Alto IPR with NPR 289 C3: Palo Alto IPR and NPR from Phase 3 Pipeline 4 286 A5: NPR Mountain View Extended to Los Altos 5 285 A1: NPR Palo Alto Phase 3 285 A4: NPR Mountain View 285 A6: NPR East Palo Alto 6 282 A3: NPR Palo Alto Phase 3 Extended to Foothills and Los Altos 7 271 B1: NPR Satellite Treatment Plant 8 269 D1: Palo Alto Dedicated DPR The IPR concept options are scored well with non-cost criteria due to the large amount of water supplied combined with greater ability to repurpose the infrastructure and only one agency required to implement and operate. Concept Option A2, NPR Palo Alto Phase 3 Extended to Foothills ranks highly because it delivers among the largest volumes of the NPR concept options and strikes a balance between offering regional benefits while requiring few agencies to implement and operate. Recycled Water Strategic Plan Report Chapter 4 Strategic Plan Concept Options Evaluation FINAL July 2019 4-20 Concept Option D1, Palo Alto Dedicated DPR delivers the greatest volume of recycled water out of all the concept options, requires only one agency to implement and operate, and does not require infrastructure changes by customers. The notable drawback of Concept Option D1 is the implementation process. Given the lack of established regulations, pursuing a DPR project at this time would require more effort by Palo Alto to establish a process that DDW will permit. Even when DPR regulations are established, the hurdles that agencies must clear to permit DPR projects will likely be more challenging compared to other recycled water projects. Another challenge will be hiring/training staff to operate the new treatment facilities. The presumed benefit of Concept Option B1, NPR Satellite Treatment Plant was the ability to create a compact recycled water distribution system rather than requiring an extensive network extending from the RWQCP. However, in this setting, the preferred location for diverting flows from the sewer system does not correspond to the areas of potential recycled water nor is there land available in the immediate vicinity of the diversion point to site a satellite treatment facility. As shown in Figure 3-8, Concept Option B1 involves a significant, branched pipe network. 4.5.2 Cost and Non-Cost Scoring Table 4-16 presents the ranking of concept options by cost using the scoring listed herein. Factoring cost in at 30% of the score, concept options were scored as follows:  5 points: < $3,500/AF  4 points: ≥ $3,500/AF and < $4,000/AF  3 points: ≥ $4,000/AF and < $4,500/AF  2 points: ≥ $4,500/AF and < $5,000/AF  1 point: ≥ $5,000/AF Factoring in cost at 30% of the total score was selected after testing for sensitivity to prevent cost from overtaking or from not having an impact on the total non-cost criteria scores. From the sensitivity analysis, weighting cost at 50% yielded similar results to weighting at 30%. Table 4-17 presents the combined weighting of the cost and non-cost criteria together. Table 4-18 presents the ranking of concept options combining the non-cost criteria and estimated costs. Table 4-16: Ranking of Concept Options by Cost Rank Score Concept Option 1 5 A1: NPR Palo Alto Phase 3 A2: NPR Palo Alto Phase 3 Extended to Foothills A4: NPR Mountain View A6: NPR East Palo Alto C1: Palo Alto Dedicated IPR D1: Palo Alto Dedicated DPR 2 3 A3: NPR Palo Alto Phase 3 Extended to Foothills and Los Altos C2: Palo Alto IPR with NPR C3: Palo Alto IPR and NPR from Phase 3 Pipeline 3 2 A5: NPR Mountain View Extended to Los Altos 4 1 B1: NPR Satellite Treatment Plant Recycled Water Strategic Plan Report Chapter 4 Strategic Plan Concept Options Evaluation FINAL July 2019 4-21 Table 4-17: Combined Weighting Including both Cost and Non-Cost Criteria Criteria Percent of Non-Cost Score (Rounded) Weighted Maximum Score per Criteria (Maximum score per Criteria being 5) Amount of water supplied 13% 67 Public acceptance 12% 61 Adaptability 7% 35 Level of agency coordination 6% 30 Level of customer retrofits/coordination 4% 19 Regulatory complexity 4% 21 Institutional complexity 6% 30 Regional perspective 6% 28 Social and economic benefit 7% 36 Environmental benefit 5% 23 Cost 30% 150 Total 100% 500 Table 4-18: Combined Ranking Considering Cost at 30% of the Score Rank Score (Maximum Score = 500) Concept Option 1 354 A2: NPR Palo Alto Phase 3 Extended to Foothills 353 C1: Palo Alto Dedicated IPR 2 350 A1: NPR Palo Alto Phase 3 350 A4: NPR Mountain View 350 A6: NPR East Palo Alto 3 339 D1: Palo Alto Dedicated DPR 4 323 C2: Palo Alto IPR with NPR 5 317 A3: NPR Palo Alto Phase 3 Extended to Foothills and Los Altos 6 293 C3: Palo Alto IPR and NPR from Phase 3 Pipeline 7 260 A5: NPR Mountain View Extended to Los Altos 8 220 B1: NPR Satellite Treatment Plant Factoring in costs at 30% of the score, the top scoring concept options are NPR Palo Alto Phase 3 Extended to Foothills (Concept Option A2), Palo Alto Dedicated IPR (Concept Option C1), the previously recommended NPR Palo Alto Phase 3 (Concept Option A1) and Mountain View long-term project (Concept Option A4) and the NPR East Palo Alto concept option (Concept Option A6). Recycled Water Strategic Plan Report Chapter 4 Strategic Plan Concept Options Evaluation FINAL July 2019 4-22 Concept Option D1, Palo Alto Dedicated DPR ranks in the middle. With the greatest amount of water supplied and one of the lowest estimated unit costs, Concept Option D1 scores well for the two most highly weighted evaluation criteria. The attractive cost helps to offset the DPR implementation challenges noted above. Concept Option B1, NPR Satellite Treatment Plant remains solidly at the bottom. As discussed previously, Concept Option B1 requires a significant investment of infrastructure to convey flows from the sewer diversion point to treatment facilities and then to customers. The cost of conveyance infrastructure plus the cost of new treatment facilities including land acquisition are significant and, when factored into the scoring, further reduces the ranking of this concept option relative to the others. Recycled Water Strategic Plan Report Chapter 5 Conclusions and Next Steps FINAL July 2019 5-1 Chapter 5 Conclusions and Next Steps 5.1 Conclusions 5.1.1 Summary of Demands and Engineer’s Opinion of Probable Costs Table 5-1 provides a summary of potential demand by water reuse type considered in this Strategic Plan. The potential market for NPR demands includes the entire RWQCP service area, not one specific concept option. Table 5-2 summarizes the capital, O&M, and unit costs for the various concept options investigated in this Strategic Plan. Table 5-1: Summary of Demand Potential by Type of Water Reuse Type of Reuse Annual Average Demand Comments NPR 4,456 AFY Throughout RWQCP service area IPR 2,800 / 5,900 AFY For Palo Alto only DPR 5,300 AFY For Palo Alto only Note: IPR annual average demand reflects volume recharged to the groundwater basin/ volume extracted from the groundwater basin Table 5-2: Summary of Engineer’s Opinion of Probable Capital and O&M Costs Concept Option Capital Cost O&M ($/year) Unit Cost ($/AF) A1: NPR Palo Alto Phase 3 $47.8M $0.29M $3,400 A2: NPR Palo Alto Phase 3 Extended to Foothills $63.0M $0.52M $3,400 A3: NPR Palo Alto Phase 3 Extended to Foothills and Los Altos $85.1M $0.68M $4,000 A4: NPR Mountain View $6.2M $0.1M $2,100 A5: NPR Mountain View Extended to Los Altos $72.6M $0.4M $4,600 A6: NPR East Palo Alto $20.7M $0.15M $2,400 B1: NPR Satellite Treatment Plant $129.6M $1.37M $8,900 C1: Palo Alto Dedicated IPR $92.2M $14.83M $3,300 C2: Palo Alto IPR with NPR $152.1M $16.92M $4,000 C3: Palo Alto IPR and NPR from Phase 3 Pipeline $198.4M $15.78M $4,400 D1: Palo Alto Dedicated DPR $104.6M $8.01M $2,500 Note: Costs based on an ENR CCI San Francisco index for June 2018 of 12,015. Costs are consistent with a Class 5 estimate (-20% to +50%) (AACE 2008). Capital costs are amortized at 3% over 30 years. For comparison with other non-water reuse water supplies, potable water from SFPUC is projected to cost $3,000 per AF in 2030, and groundwater, including wellhead treatment and the Valley Water groundwater pumping charge, is projected to cost $3,000 per AF. 2 To provide a basis for comparison, cost estimates reflect the incremental cost of pursuing each concept option. For the NPR options, the cost estimates include distribution to the end-user. Consistent with the incremental cost methodology, this report does not estimate the total cost of providing the IPR or DPR water to end-users as Palo Alto’s existing potable water distribution system costs are not included in the estimates. 2 These are the estimated costs to the City of Palo Alto of purchasing SFPUC water or pumping groundwater and these cost estimates do not include distribution system costs. Recycled Water Strategic Plan Report Chapter 5 Conclusions and Next Steps FINAL July 2019 5-2 5.1.2 General Conclusions Regarding NPR Concept Options The Strategic Plan determined that there is interest throughout most of the RWQCP service area and neighboring communities in receiving recycled water from the RWQCP for NPR uses. The one Partner Agency that is not interested is Stanford University. Stanford University maintains a diverse water supply portfolio consisting of water from SFPUC, groundwater, local surface water, and captured stormwater. Stanford University does have significant non-potable water demands, but the university does not foresee a need for recycled water from the RWQCP due to the existence of its separate non-potable irrigation water system that meets over 30% of the campus’ water demands (over 80% of irrigation demands). As such the NPR concept options evaluated under this Strategic Plan did not include service to Stanford. The Strategic Plan considered NPR concept options with both centralized treatment at the RWQCP (“A” concept options) and a satellite treatment option (“B” concept option). Of the centralized treatment options, Concept Option A2, NPR Palo Alto Phase 3 Extended to Foothills scored highest both with and without the cost criteria. The unit cost for Concept Option A2 is estimated to be similar to the cost of the previously recommended Concept Option A1, NPR Palo Alto Phase 3. Therefore, should Palo Alto elect to move forward with an NPR project, Concept Option A2 or variants, as shown in Appendix D, should be given additional consideration. An analysis of the cost implications of removing various branches of the base concept option will inform discussions regarding cost sharing between the relevant stakeholders in Palo Alto and Los Altos Hills as well as support rate analyses for Palo Alto and PHWD (the two retailers that would be involved in the concept option). Concept Option A4, NPR Mountain View, was previously recommended in the 2014 Mountain View RWFS, due to its low cost and average non-cost score, was determined to be a reasonable investment compared to the other concept options explored in the Strategic Plan, and during the stakeholder evaluation process, Mountain View staff indicated their commitment to implementing this extension. Concept Option A6, NPR East Palo Alto scored similarly to the Concept Options A1, NPR Palo Alto Phase 3 and A4, NPR Mountain View. Concept Option A6 is low cost, and the average non-cost score make it a reasonable investment compared to other concept options. Implementation will require coordination with EPASD, who is the Partner Agency that owns the wastewater flows from East Palo Alto to the RWQCP. Though implementation of the concept option does not require coordination with Menlo Park, if East Palo Alto chooses to move forward with the concept option, Menlo Park’s level of interest should be verified prior to sizing the infrastructure. Appendix E presents variants of Concept Option A6 and the cost implications of including or not including Menlo Park’s demands as well as the benefits of including Palo Alto’s demands. This information can inform cost sharing discussion among the relevant stakeholders in Palo Alto, East Palo Alto, and Menlo Park and support a cost of service analysis for the City of East Palo Alto, the likely recycled water retailer. NPR is challenging for Los Altos and Los Altos Hills because their customers are located furthest from the RWQCP and existing recycled water infrastructure and coordination with the Partner Agencies upstream would be needed. Between the two options to serve Los Altos – Concept Option A3: NPR Palo Alto Phase 3 Extended to Foothills and Los Altos (which builds off of Concept Option A1) and Concept Option A5: NPR Mountain View Extended to Los Altos (which builds off of Concept Option A4) – Concept Option A3 is preferred due to preliminary costs. Between the two options to serve Los Altos Hills - Concept Option A2, NPR Palo Alto Phase 3 Extended to Foothills Concept Option A3: NPR Palo Alto Phase 3 Extended to Foothills and Los Altos – Concept Option A2 is higher ranked. To assist Los Altos and its retailer Cal Water, and to assist Los Altos Hills and its retailer Purissima Hills Water District, in evaluating an extension from the Palo Phase 3 Pipeline, Appendix E presents variants of Concept Options A2 and A3 that can inform cost sharing discussions among the relevant stakeholders and cost of service analyses for Cal Water and Purissima Hills Water District. Recycled Water Strategic Plan Report Chapter 5 Conclusions and Next Steps FINAL July 2019 5-3 Satellite NPR Concept Option B1, NPR Satellite Treatment Plant was included to bridge the gap between the source of recycled water at the RWQCP and customers at the periphery of the RWQCP’s service area. However, the satellite option was found to be impractical for this setting given the mismatch between the ideal sewer diversion point and where demands are concentrated plus the limited availability of land and the cost of acquiring land to construct a new treatment facility in this area. Treatment Both distribution infrastructure and treatment facilities were considered for each of the NPR concept options. Palo Alto has committed to providing enhanced recycled water quality for NPR, meaning water delivered to non-potable customers would be a blend of advanced treated recycled water and disinfected tertiary recycled water to reduce TDS concentration to below 600 mg/L. Assuming implementation of the 2.25 MGD AWTS (which was recommended to provide a 1:1 blend of advanced and tertiary recycled water for the RWQCP’s flow commitments of 3.0 MGD for Mountain View and 1.0 MGD for Palo Alto), each of the centralized NPR concept options presented in this Strategic Plan can independently be implemented without additional treatment facilities. The enhanced recycled water provided for these NPR concept options would have a TDS concentration below the 600 mg/L target threshold based on the RWQCP’s average TDS concentration of approximately 900 mg/L and an anticipated advanced treated recycled water concentration of 50 mg/L. Note that the three highest ranked NPR options (without overlap to other options) are A2, A4 and A6; together these options could all be implemented without triggering the need for reverse osmosis concentrate treatment but would require additional advanced or tertiary treatment facilities to produce enough enhanced recycled water, particularly to meet a 1:1 blend ratio. The City has considered setting a more aggressive goal for the enhanced recycled water of maintaining TDS between 400 to 500 mg/L. Only the Mountain View concept option (Concept Option A4) would meet this goal during peak month demands without additional treatment facilities. 5.1.3 General Conclusions Regarding IPR Concept Options Several of the RWQCP Partner Agencies and Strategic Plan stakeholders expressed interest in IPR. However, Palo Alto is the only agency that is actively investigating this option and that had groundwater data to support development of IPR concept options. The IPR concept options that were considered in the Strategic Plan include a concept option dedicated to providing water to Palo Alto groundwater injection wells (Concept Option C1: Palo Alto Dedicated IPR), a concept option that captures non-potable uses in the vicinity of the pipeline needed to reach the Palo Alto groundwater injection wells (Concept Option C2: Palo Alto IPR with NPR), and a concept option that builds off of the Palo Alto Phase 3 Pipeline to convey water to the Palo Alto groundwater injection wells (Concept Option C3: Palo Alto IPR and NPR from Phase 3 Pipeline). Without considering cost, all three IPR concept options are among the top ranked concept options given the large amount of water they supply and lack of institutional complexity. With cost factored into the scoring, only Concept Option C1, Palo Alto Dedicated IPR remains a top scoring IPR concept option. Implementation of an IPR project would require Palo Alto to incorporate groundwater into its water supply, and Palo Alto is assessing its desire to pursue groundwater use. In some other communities, IPR has generally been seen as a first step towards DPR, gaining customer acceptance of the concept of potable reuse before moving to DPR. However, Palo Alto does not currently use groundwater, and during preliminary study sessions, members of the Utilities Advisory Commission and City Council expressed a preference for DPR over IPR. Given concerns regarding customer acceptance of groundwater quality compared to the existing SFPUC supply, Palo Alto is assumed to provide wellhead treatment at the groundwater extraction wells to lower Recycled Water Strategic Plan Report Chapter 5 Conclusions and Next Steps FINAL July 2019 5-4 iron, manganese and TDS concentrations. Costs of this treatment were included in each IPR concept option and overall unit costs ranged from $3,300 - $4,400/AF for IPR concept options. For comparison, groundwater use with wellhead treatment and the Valley Water groundwater pumping charge but without any injection of recycled water, is projected to cost $3,000 per AF (in 2018 dollars). Treatment costs also include new full advanced treatment facilities, including reverse osmosis concentrate treatment, as needed, and associated land acquisition costs. Reverse osmosis concentrate treatment is estimated to be needed to ensure compliance with the RWQCP discharge permit for Concept Options C2 and C3 and thus included in the associated cost estimates. 5.1.4 General Conclusions Regarding DPR Concept Option Because DPR regulations are not established, developing DPR concept options and drawing conclusions about the feasibility of DPR requires interpretation of the SWRCB’s Proposed Framework for Regulating Direct Potable Reuse in California. The uncertainty in regulations is reflected in the low score that the Concept Option D1, Palo Alto Dedicated DPR received when considering only the non-cost criteria. However, when factoring in the estimated unit cost of Concept Option D1, which included extensive additional treatment facilities and engineered storage, the concept option rose to the middle of the rankings. Given the significant volume of existing potable supply that could be offset through Concept Option D1, its low estimated unit cost ($2,500/AF), and the presumably greater acceptance of DPR over IPR in this setting, this concept option deserves further evaluation by Palo Alto and refinement as regulations emerge. For comparison, potable water from SFPUC is projected to cost approximately $3,000 per AF in 2030. 5.2 Next Steps Results of the Strategic Plan indicate that there are multiple water reuse expansion opportunities within the Study Area that agencies could pursue, including NPR, IPR, and DPR. The following are general next steps that should be considered for any of the concept options to move forward. Table 5-3summarizes the recommended next steps by each category of water reuse. Note that depending on the outcomes of the Countywide Plan, some of the Concept Options described in this Report may not implementable due to limited supply of recycled water; further evaluation for joint implementation may be required as a next step. Recycled Water Strategic Plan Report Chapter 5 Conclusions and Next Steps FINAL July 2019 5-5 Table 5-3: Recommended Next Steps for Type of Opportunity NPR – Next Steps IPR- Next Steps DPR – Next Steps Facilities Planning Prepare more detailed technical analysis to define facility requirements and to refine cost estimates to a Class 4 level of development (-10% to +30%). Prepare more detailed technical analysis to define facility requirements and to refine cost estimates to a Class 4 level of development (-10% to +30%). Prepare more detailed technical analysis to define facility requirements and to refine cost estimates to a Class 4 level of development (-10% to +30%). Prepare various treatment train options with cost estimates to reflect uncertainty to regulatory requirements for treatment. Funding and Financing Apply for funding and financing options; Appendix G contains a funding and financing matrix describing a variety of options for recycled water projects. At present, these programs apply to all types of water reuse. Develop recycled water rates to be applied to recycled water customers. Apply for funding and financing options; Appendix G contains a funding and financing matrix describing a variety of options for recycled water projects. At present, these programs apply to all types of water reuse. Apply for funding and financing options; Appendix G contains a funding and financing matrix describing a variety of options for recycled water projects. At present, these programs apply to all types of water reuse. Inter-agency Agreements If the NPR project involves more than one of the RWQCP Partners, an inter-agency agreement would be needed. New agreements could be modeled after the existing agreement between Palo Alto and Mountain View for the Phase 2 system. With Valley Water’s role as Groundwater Sustainability Agency, an agreement between Palo Alto and Valley Water is needed for an IPR project. For a DPR project serving Palo Alto only (as described in Concept Option D1), no specific inter-agency agreements are identified at this time. Environmental Documentation NPR concept options could be covered under a new environmental document or possibly an amendment to the Phase 3 Environmental Impact Report, depending on the concept option. Either document should meet the requirements of CEQA, and pending selected funding and financing options, the requirements of CEQA-Plus or NEPA. A new environmental document covering the IPR project would be needed. This document should meet the requirements of CEQA; and, pending selected funding and financing options, the requirements of CEQA-Plus or NEPA. A new environmental document covering the DPR project would be needed. This document should meet the requirements of CEQA; and, pending selected funding and financing options, the requirements of CEQA-Plus or NEPA. Reuse Permitting Covered under Statewide General Order for Recycled Water Use (WQ- 2014-009). Covered under SWRCB regulations, adopted by the State in 2014. There are no established regulations for DPR projects and no proposed timeline for the State to develop DPR regulations for treated drinking water augmentation. Customer and Public Outreach Outreach to specific customers to be served by the NPR project to confirm delivery location, confirm demand, discuss site retrofits, etc. For NPR projects delivering to areas that do not have a mandatory use ordinance in place, customer outreach to encourage customers to sign on to the NPR project. Public outreach to inform Palo Alto customers of changes to source water (i.e. blending in groundwater to the existing SFPUC supplies) should be considered. Public outreach to inform Palo Alto customers of changes to source water (i.e. blending in of DPR water to the existing SFPUC supplies) should be considered. Recycled Water Strategic Plan Report References FINAL July 2019 References Anderson, Daren (Division Manager at the City of Palo Alto Open Space and Parks Department). Email to Emmalynne Roy providing details on habitat enhancement water use at Foothill Park’s Boronda Lake. 2018. Association of the Advancement of Cost Engineering International (AACE), 2008. International Recommended Practice No. 56R-08:Cost Estimate Classification System – As Applied for the Building and General Construction Industries. Brown and Caldwell, 1992. Water Reclamation Master Plan for the Regional Water Quality Control Plant. April, 1992. California Building Standards Commission, 2011. 2011 CalGreen Green Building Requirements. January, 2011. Carollo, 2014. City of Mountain View Recycled Water Feasibility Study. March, 2014. Engelage, Samantha (Senior Engineer at City of Palo Alto Recycled Water Program). Email to Emmalynne Roy providing details on habitat enhancement water use at Byxbee Park. 2018. City of Mountain View, 2017. Ordinance No. 17.16. Available: https://www.mountainview.gov/civicax/filebank/blobdload.aspx?BlobID=21813 City of Palo Alto. 2017. Clean Bay 2017 Pollution Prevention Plan. Available: https://www.cityofpaloalto.org/civicax/filebank/documents/56148 City of Palo Alto, 2008. Ordinance No. 5002. Available: https://www.cityofpaloalto.org/civicax/filebank/documents/19503 City of Palo Alto Utilities, 2017. 2017 Water Integrated Resources Plan. January, 2017. City of Palo Alto Utilities, 2016. City of Palo Alto 2015 Urban Water Management Plan. June, 2016. MNS, 2017. Advanced Water Purification System Preliminary/Conceptual Design Report. December, 2017. State Water Resources Control Board (SWRCB), 2018. A Proposed Framework for Regulating Direct Potable Reuse in California. April, 2018. SWRCB, 2016. Investigation on the Feasibility of Developing Uniform Water Recycling Criteria for Direct Potable Reuse. December, 2016. Todd Groundwater, 2018. Groundwater Assessment, and Indirect Potable Reuse Feasibility Evaluation and Implementation Strategy Report. November, 2018. Unites States Green Building Council, 2014. LEED Reference for Building Operations and Maintenance, Version 4. October, 2014. Unites States Green Building Council, 2012. LEED 2009 Water Use Reduction Additional Guidance (Version 7). July, 2012. West Yost Associates, 2017. City of Menlo Park Water Supply Master Plan, Draft. November, 2017. Woodard & Curran, 2018. Preliminary Design for Phase 3 Recycled Water Distribution System Final Report. February, 2018. Appendix A - Non-Potable Demand Assessment Methodology Attachment B Recycled Water Strategic Plan Report Appendix A: Non-Potable Demand Assessment Appendix A: Non-Potable Demand Assessment Landscape Irrigation Landscape irrigation demands were the primary recycled water use identified within the study area. In developing these demands, each customer’s landscaped area was estimated using recent aerial imagery from Google Earth, as well as GIS-compatible aerial imagery. From the aerial review, the percentage of each customer’s site that is landscaped was estimated and applied this percentage to the total parcel area. In addition, recent aerial imagery was used to check that each site’s perceived irrigated space did not include artificial turf. Parcel areas that had artificial turf fields were removed from the total irrigated acreage. In order to calculate demand, an annual average irrigation factor of 3.4 acre-feet per year (AFY) per acre of landscaped area was applied based on: annual evapotranspiration (ETo) of 44.8 inches; total annual precipitation of 15.3 inches; and effective precipitation (Eppt) of 25% of total annual precipitation: 𝐴𝑙𝑙𝑙𝑎𝑙 𝐴𝑙𝑐𝑙𝑎𝑐𝑐 𝐼𝑙𝑙�ℎ𝑐𝑎𝑙�ℎ𝑙𝑙 𝐴𝑐𝑙𝑎𝑙𝑐 [𝐴𝐴𝑌 𝑎𝑐𝑙𝑐]= 𝐴𝑅𝑜 [�ℎ𝑙 𝑦𝑙]−𝐴𝑙𝑙𝑙[�ℎ𝑙 𝑦𝑙] 12 [�ℎ𝑙 𝑐𝑙] = 44.8 �ℎ𝑙 𝑦𝑙−0.25 × 15.3 �ℎ𝑙 𝑦𝑙 12 �ℎ𝑙 𝑐𝑙 =3.4 𝐴𝐴𝑌 𝑎𝑐𝑙𝑐 The ETo and precipitation values are taken from the climate data presented in Palo Alto’s 2015 Urban Water Management Plan (UWMP) and summarized below in Table 1. Table 1: City of Palo Alto Climate Data Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Standard Monthly Average ETo 1 1.4 1.9 3.4 4.4 5.5 6.0 6.2 5.5 4.4 3.1 1.7 1.3 44.8 Average Rainfall2 (in) 3.2 2.9 2.3 1.0 0.4 0.1 0.0 0.1 0.2 0.7 1.7 2.7 15.3 Source: City of Palo Alto 2015 Urban Water Management Plan Notes: 1. Average ETo data for closest active station (Hayward) reported by CIMIS website http://www.cimis.water.ca.gov/ 2. Average rainfall data for Palo Alto reported by NOAA website http://www.wrcc.dri.edu/ Recycled Water Strategic Plan Report Appendix A: Non-Potable Demand Assessment July is the maximum demand month for landscape irrigation, with a maximum day peaking factor of 1.7. This maximum day peaking factor was applied for all landscape irrigation demands throughout the study area. The peak hour landscape irrigation demands were calculated using an hourly peaking factor of 3.0 assuming an 8-hour irrigation window at night. These peaking factors are summarized in Table 5. Dual Plumbing The first step to determining dual-plumbing demands was to estimate the total building square footage. For future developments where site-specific details were not yet known, information was gathered on anticipated building density from developers and architects. If this information was not available, the likely building density was estimated using allowable floor area ratios (FARs) in the development’s respective zoning code. The estimated total building square footage was found with the following calculation: 𝑅𝑙𝑙𝑎𝑙 𝐴𝑙�ℎ𝑙𝑐�ℎ𝑙𝑐 𝐴𝑙𝑐𝑎 [𝑅𝑙 𝐴𝑙] =𝑅𝑙𝑙𝑎𝑙 𝑃𝑎𝑙𝑐𝑐𝑙 𝐴𝑙𝑐𝑎 [𝑅𝑙 𝐴𝑙]∗𝐴𝐴𝑅∗𝐴𝐴𝑅 𝑅𝑐𝑐𝑙𝑐𝑙�ℎ𝑙𝑙 𝐴𝑎𝑐𝑙𝑙𝑙 It was assumed that not all buildings would be calculated to the maximum FAR over the entire parcel area, so a FAR reduction factor of 0.75 was applied to find the most likely building density. Any comments from developers on likely development density were incorporated into the estimate. After determining total building square footage, the total potential daily water demand for urinal and toilet fixtures was determined using the following calculation: 𝑅𝑙𝑙𝑎𝑙 𝐴𝑎�ℎ𝑙𝑦 𝑊𝑎𝑙𝑐𝑙 𝐴𝑐𝑙𝑎𝑙𝑐 [𝐴𝑎𝑙𝑙𝑙𝑙𝑙 𝐴𝑎𝑦] =𝐴𝑙𝑙𝑙 𝑅𝑎𝑙𝑐 [𝐴𝑎𝑙𝑙𝑙𝑙𝑙 𝐴𝑙𝑙𝑙�]∗𝐴𝑙𝑙𝑎𝑙�ℎ𝑙𝑙 [𝐴𝑙𝑙𝑙�]∗𝐴𝑙𝑐𝑙𝑎𝑐𝑐 𝐴𝑎�ℎ𝑙𝑦 𝑅𝑙𝑐∗𝑁𝑙.𝑙𝑐 𝐴𝑅𝐴𝑙 +𝐴𝑙𝑙𝑙 𝑅𝑎𝑙𝑐 [𝐴𝑎𝑙𝑙𝑙𝑙𝑙 𝐴𝑙𝑙𝑙�]∗𝐴𝑙𝑙𝑎𝑙�ℎ𝑙𝑙 [𝐴𝑙𝑙𝑙�]∗𝐴𝑙𝑐𝑙𝑎𝑐𝑐 𝑅𝑙𝑎𝑙𝑙�ℎ𝑐𝑙𝑙 𝐴𝑎�ℎ𝑙𝑦 𝑅𝑙𝑐∗𝑁𝑙.𝑙𝑐 𝑅𝑙𝑎𝑙𝑙�ℎ𝑐𝑙𝑙 𝐴𝑅𝐴𝑙 Full Time Equivalents (FTEs) are defined as the occupants who spend at least 40 hours per week (8 hours per day) in the building. Transient FTEs represent occupants that do not utilize the building services on a regular basis, such as visitors, customers, or delivery persons. The number of FTEs and Transient FTEs were estimated from the total building footprint square footage and the space type metrics outlined in Table 2. Space types for existing buildings were determined based on known information about the site. Future developments were categorized as “General Office,” “Service,” “R&D or Laboratory,” “Hotel,” or “MixedUse High” based on developer input and zoning descriptions. Recycled Water Strategic Plan Report Appendix A: Non-Potable Demand Assessment Table 2: Space Type Default Occupancy Numbers Space Type Gross Square Feet per Occupant – FTE Gross Square Feet Per Occupant – Transient FTE General Office 250 0 Retail, general 550 130 Service (e.g. financial, auto) 600 130 Restaurant 435 95 Grocery Store 550 115 Medical Office 225 330 R&D or Laboratory 400 0 Warehouse, distribution 2500 0 Warehouse, storage 20000 0 Hotel 1500 700 Education, daycare 630 105 Educational, K–12 1300 140 Education, postsecondary 2100 150 Mixed Use Corridor1 480 90 Mixed Use High2 460 80 Source: LEED Reference for Building Operations and Maintenance, Version 4Error! Reference source not found.. Appendix 2-Table 1. Default Occupancy Numbers. Notes: 1. Developed based on zoning description, which averages General Office, Retail, Service, Restaurant, and Grocery Store occupancy numbers. 2. Developed based on zoning description, which averages General Office, Retail, Service, Restaurant, Grocery Store, and R&D/Laboratory occupancy numbers. Water fixture metrics that were used for flow rate, duration and average daily use are summarized in Table 3. Table 3: Water Fixture Metrics Fixture Type Flow Rate1 (gallons/flush) Duration (flush) Avg Daily Use – FTE1 Avg Daily Use – Transient FTE2 Urinals 0.5 1 2 0.4 Toilet (Water Closet) 1.28 1 2 0.5 Notes: 1. Source: 2011 CalGreen Green Building Requirements. (Table 13C.5.303.2.2). 2. Source: LEED 2009 Water Use Reduction Additional Guidance (Version 7). Table 1. Non-residential Default Fixture Uses. IKEA and the Mitchell Park Library and Community Center are the two customers in the service area known to have dual plumbing. Since IKEA’s site-specific meter data was not available, its demands were estimated using the methodology outlined above. For the Mitchell Park facilities, the demand was taken Recycled Water Strategic Plan Report Appendix A: Non-Potable Demand Assessment from the Phase 3 Business Plan in which it was assumed that 30% of the water measured by the site’s W4 meter is used for toilet flushing that could be converted to recycled water. In order to adjust each site’s total daily water demand to an annual average demand, the daily demand was multiplied by the customer’s assumed number of days of operation. The values used for days of operation for different customer types are summarized in Table 4. Table 4: Days of Operation Space Type Days of Operation Retail, general 365 Hotel 365 Mixed Use High 365 General Office 260 Service (e.g. financial, auto) 260 R&D or Laboratory 260 The peak hour dual-plumbing demands were calculated using an hourly peaking factor of 2.0, assuming the average occupancy of the buildings is 12 hours during the day. Peaking factors are summarized in Table 5. Cooling Towers Demands for cooling towers included customers previously identified as having cooling towers and customers assumed to have cooling towers through review of building characteristics. In addition, certain future developments were identified as potential cooling tower users through specific conversations with developers and architects. The magnitude of cooling tower demand was determined using the following equation: 𝐴𝑙𝑙𝑙�ℎ𝑙𝑐 𝑅𝑙𝑙𝑐𝑙 𝐴𝑐𝑙𝑎𝑙𝑐 (𝐴𝐴𝑌)=𝑅𝑙𝑙𝑎𝑙 𝐴𝑙�ℎ𝑙𝑐�ℎ𝑙𝑐 𝐴𝑙𝑐𝑎 [𝑅𝑙 𝐴𝑙] 330 [𝑅𝑙 𝐴𝑙 𝑅𝑙𝑙 𝑙𝑐 𝐿𝑙𝑎𝑐]∗4.1 ∗0.02 [𝐴𝐴𝑌 𝑅𝑙𝑙 𝑙𝑐 𝐿𝑙𝑎𝑐] This demand calculation was based on historical cooling tower use data from southern California, adjusted for the climate in Palo Alto. The historical data from several office buildings in Burbank, California showed about 330 square feet per ton of cooling tower load and about .02 AF of water use per ton of cooling tower load. This resulted in an average cooling tower water demand of 0.073 AF per 1,000 square feet of building area. This demand metric was then adjusted to Palo Alto’s climate using Cooling Degree Days – the number of degrees that a day’s average temperature is above 65F (which is assumed to be when air conditioning is needed), summed over an entire year. Since Burbank has approximately 4.1 times as many CDDs as Palo Alto, the Burbank cooling tower use factor was divided by 4.1 to yield a cooling tower use factor of 0.018 AF per 1,000 square feet for the Palo Alto area. This factor was applied to all developments assumed to have cooling towers in the service area. Based on the total number of cooling degree days per month in Palo Alto, August is the maximum demand month for cooling tower demands, with a maximum day peaking factor of 2.7. The peak hour cooling tower Recycled Water Strategic Plan Report Appendix A: Non-Potable Demand Assessment demands were calculated using an hourly peaking factor of 2.0, assuming the average occupancy of the buildings is 12 hours during the day. These peaking factors are summarized in Table 5. Table 5: Demand Peaking Factors Demand Type Peaking Factor Maximum Day Irrigation 1.7 Cooling Tower 2.7 Hourly Irrigation 3.0 Dual Plumbing 2.0 Cooling Tower 2.0 Appendix B - Recycled Water Customers and Demand Estimates [Confidential – Not Included] Appendix C - Potential Uses Considered but Not Included Recycled Water Strategic Plan Report Appendix C: Users Considered but Eliminated Appendix C: Users Considered but Eliminated Appendix A identifies potential non-potable recycled water customers throughout the Strategic Plan study area whereas this appendix identifies customers that were considered but not included in the study. The 1992 Palo Alto Recycled Water Master Plan (RWMP) was used as the starting point for identifying potential recycled water demands. Additional uses were then identified through review of available recycled water feasibility studies, Urban Water Management Plans, General and Specific Plans and aerials of the study area. The City and District then reached out to the Regional Water Quality Control Plan (RWQCP) Partner Agencies and other stakeholders to verify if the customers identified in their areas could realistically be expected to accept recycled water and whether additional customers should be considered. Customers from the 1992 RWMP that are not included in this Strategic Plan include: • East Palo Alto Greenhouses – In the 1990s there were a number of functioning greenhouses in East Palo Alto, but now there are not many greenhouses known to be operating in the area. Those that are still operating are not anticipated to have significant demand. • Medians and Streetscapes – The State Water Resources Control Board has proposed regulations prohibiting the irrigation of ornamental turf in publicly owned medians and streetscapes (i.e. the landscaped area between the street and sidewalk). The prohibition includes recycled water irrigation systems unless the system was installed prior to 2018. While irrigation of trees within medians and streetscapes are exempt from the proposed regulation, the default assumption for the Strategic Plan was not to include medians and streetscapes unless stakeholders provided information confirming the type of vegetation and associated water use for specific areas. Stakeholders suggested that medians along Foothill Expressway be considered. However, through field investigations, Palo Alto determined that the portion of Foothill Expressway in its service area is not irrigated and verification of irrigation of the portion within Los Altos could not be obtained. As such, Foothill Expressway was dropped from further consideration. • Gate of Heaven Cemetery – This customer, though previously identified as a potential customer in Los Altos’s service area, was found to be within Cupertino’s service area. Additional customers considered but not included: • Cooley Landing Park – Recycled water is currently being trucked to this East Palo Alto park to support the establishment period for new native landscaping. Following the establishment period there will be no irrigation demand. • East Bayshore Redevelopment - East Palo Alto staff noted that the area along East Bayshore has potential for significant multi-family residential redevelopment. However, there were no specific redevelopment plans, and the City indicated it would probably not pursue dual-plumbing for residential use. • East Palo Alto Neighborhood Gardens and Sports Fields – Through review of aerials of East Palo Alto, a number of sizeable gardens and what looked like communal sports fields in between Recycled Water Strategic Plan Report Appendix C: Users Considered but Eliminated residences were identified. East Palo Alto city staff indicated that these are temporary uses that sprung up on vacant lots. When the building moratorium in East Palo Alto is lifted, the City expects that these sites will be developed. • Edith Park – This park in Los Altos Hills was recently redone to minimize irrigation needs. • Gateway District Retail Center Redevelopment – This potential redevelopment area was in review in East Palo Alto’s General Plan, but East Palo Alto city staff noted there are no specific plans for redevelopment of this area. • Los Altos Redevelopment along El Camino – The majority of redevelopment will occur in the next few years. Because the City currently does not require installation of recycled water infrastructure for new developments, incorporating recycled water use within these buildings seems unlikely. • Ravenswood Family Health Center – This facility in East Palo Alto is dual-plumbed. However, review of the facility’s plans showed that the dual-plumbing was for on-site rain capture and not designed to have recycled water incorporated. • San Antonio Redevelopment – This redevelopment area in Mountain View received conditions of approval prior to Mountain View’s dual-plumbing ordinance and, as a result, is not dual-plumbed for recycled water. • Single Family Residences – Los Altos Hills and Purissima Hills Water District (PHWD) indicated interest in working with large residential irrigators in Los Altos Hills to convert to recycled water use. Review of potential residences focused on parcels along Purissima Road and Fremont Road where PHWD identified the potential to repurpose abandoned or soon to be abandoned potable water pipelines for recycled water distribution. In these areas the residences averaged less than 1 acre-foot per year (AFY) of total water consumption. These volumes are not considered significant enough for residences to willingly undertake conversion of their irrigation systems plus the regulatory complexity involved with using recycled water at single family residences. • Sobrato Phase I – Construction for this site in East Palo Alto, which is also known as Amazon I, was already underway at the time of the demand assessment and was determined not to include purple pipe for recycled water. • Stanford Shopping Center – The General Manager of Stanford Shopping Center contacted the City at the start of the Strategic Planning process inquiring about the possibility of extending recycled water infrastructure to the shopping center. Through subsequent discussions, the shopping center indicated potential for both irrigation use as well as dual-plumbing use in future buildings. However, estimated demands were not provided. Appendix D - Opinions of Probable Costs A1 Palo Alto Recycled Water Feasibility Study Last Updated:4-Feb-19 Discount Rate Project Life Updated by: K. Howes 3%30 Years CCI (SF, June 2018): 12014.72 Item Size Qty Unit Unit Cost Total Cost Capital Costs General Requirements Mobilization Applied to all capital costs 10% $2,265,933 Traffic Control Applied to all capital costs 4% $906,373 Treatment MBR 0.0 MGD 17,200,000$ $0 Ozone 0.0 MGD 360,000$ $0 BAC 0.0 MGD 323,000$ $0 MF/UF system 0.0 MGD 1,317,000$ $0 RO System 0.0 MGD 1,586,000$ $0 RO Concentrate Treatment 0.0 MGD 1,510,000$ $0 Advanced Oxidation and Disinfection 0.0 MGD 470,000$ $0 Free Chlorine 0.0 MGD 271,000$ $0 Chemicals (Storage and Use) 0.0 MGD 134,000$ $0 Sitework/Piping/Structures 0.0 MGD 3,427,000$ $0 Conveyance High-Density Urban Pipeline, HDPE 6 Inch 0 LF 186$ $0 8 Inch 18,494 LF 200$ $3,699,008 10 Inch 9,029 LF 212$ $1,914,318 12 Inch 6,873 LF 254$ $1,747,873 16 Inch 22,301 LF 277$ $6,178,938 18 Inch 0 LF 290$ $0 20 Inch 0 LF 334$ $0 24 Inch 0 LF 381$ $0 30 Inch 0 LF 462$ $0 Repurposing Pipe 6 Inch 0 LF 55$ $0 8 Inch 0 LF 66$ $0 Sheeting and Shoring (Open Cut)3% of Open Cut Pipeline Cost 3% $406,204 Microtunneling Tunnel and Casing (36")800 LF 1,728$ $1,382,400 Jacking Shaft 3 EA 300,000$ $900,000 Receiving Shaft 3 EA 150,000$ $450,000 Horizontal Directional Drilling 24 Inch Bore Diameter 350 LF 528$ $184,800 PTGAB 6 Inch 0 LF 375$ $0 8 Inch 0 LF 500$ $0 10 Inch 0 LF 625$ $0 12 Inch 0 LF 750$ $0 16 Inch 0 LF 1,000$ $0 20 Inch 0 LF 1,250$ $0 Jacking Shafts 0 EA 258,000$ $0 Receiving Shafts 0 EA 148,000$ $0 Pipe Bridge Pipe Bridge Support 8 LF 5,000$ $40,000 Pipe Bridge Pipe 6 Inch 0 LF 66$ $0 8 Inch 0 LF 86$ $0 10 Inch 0 LF 108$ $0 12 Inch 65 LF 139$ $9,049 16 Inch 0 LF 175$ $0 Potholing 579 EA 500$ $289,560 Cathodic Protection 3% of Pipeline Installation Cost 3% $506,178 Customer Services (no meter replacement) 62 EA 10,000$ $620,000 Customer Services (with meter replacement) 132 EA 15,000$ $1,980,000 Planter Box (Housing Pipe on Bridge Sidewalk) 6 CY 2,000$ $12,000 Planter Box (Installation Labor)8 Day 4,000$ $32,000 Pump Stations Pump Station #1 0 -$ $0 Pump Station #2 0 -$ $0 Pump Station #3 0 -$ $0 Pump Station #4 0 -$ $0 Pump Station #5 0 -$ $0 Phase 3 RWQCP Pump Station Improvements 1 LS 1,389,000$ $1,389,000 Phase 3 Booster Pump Station 1 LS 918,000$ $918,000 Hydropneumatic Tank - Pump Station #1 0 Gal -$ $0 Hydropneumatic Tank - Pump Station #2 0 Gal -$ $0 Hydropneumatic Tank - Pump Station #3 0 Gal -$ $0 Hydropneumatic Tank - Pump Station #4 0 Gal -$ $0 Hydropneumatic Tank - Pump Station #5 0 Gal -$ $0 Storage Tank Storage Tank 0.0 1,500,000$ $0 Underground Construction 0.0 LS 1,000,000$ Injection Well 0 EA 1,000,000$ $0 Extraction Wellhead Treatment Hale 0 AFY 2,937$ $0 Rinconada 0 AFY 2,937$ $0 Peers 0 AFY 3,353$ $0 El Camino 0 AFY 4,538$ $0 Eleanor 0 AFY 4,538$ $0 Library 0 AFY 4,538$ $0 Mountain View Feasibility Study Long-Term Recommended Phase 0 LS 3,326,000$ $0 Subtotal $25,832,000 Sales Tax 9%$1,020,000 Construction Cost Subtotal $26,852,000 Market Adjustment Factor 10%$2,685,000 Construction Contingency 40%$10,741,000 Construction Cost Total $40,300,000 Engineering and Admin Services (Design)15%$4,028,000 Construction Management 10% $2,685,000 Engineering Services During Construction 3%$806,000 Property Acquisition (Property Only)0 SQ FT 500$ $0 Property Acquisition (House on Property) 0 SQ FT 1,000$ $0 Rinconada Land Cost 0 LS 4,500,000$ $0 Peers Land Cost 0 LS 7,000,000$ $0 On-Time Fee 0 LS 75,000$ Total Capital Cost $47,800,000 Total installed HP, including standby Total installed HP, including standby Total installed HP, including standby Total installed HP, including standby Total installed HP, including standby MG Applied to half of capital costs (not including General) Concept Option: A1 Page 1 of 22 A1 Palo Alto Recycled Water Feasibility Study Last Updated:4-Feb-19 Discount Rate Project Life Updated by: K. Howes 3%30 Years CCI (SF, June 2018): 12014.72 Item Size Qty Unit Unit Cost Total Cost O&M Costs (Annual) Advanced Water Treatment MBR 0 MGD 560,000$ $0 Ozone 0 MGD 93,000$ $0 BAC 0 MGD 131,000$ $0 MF/UF system 0 MGD 342,000$ $0 RO System 0 MGD 574,000$ $0 RO Concentrate Treatment 0 MGD 226,000$ $0 Advanced Oxidation and Disinfection 0 MGD 73,000$ $0 Free Chlorine 0 MGD 32,000$ $0 Chemicals 0 MGD 121,000$ $0 Labor for Treatment (no MBR)0 1,040 hrs/MGD 100$ $0 Labor for MBR 0 1,040 hrs/year 100$ $0 Monitoring 0 $/year 1,000,000$ $0 Conveyance LF $0.78 $44,942 Pump Stations Consumables Equipment 1% $0 Mechanical 1% $0 Electrical/Instrumentation 1% $0 Electricity Requirement Energy Charge 444,385 kWh/year 0.15$ $66,658 Labor Costs Total No. Operators 0 No. Average Annual Operator Hours per Year 520 Hours Total Operator Hours per Year 0 Hours 99.81$ $0 Phase 3 RWQCP Pump Station Improvements 1 LS 96,000$ $96,000 Phase 3 Booster Pump Station 1 LS 81,000$ $81,000 Storage Tanks Annual O&M 1% $0 Injection Wells Annual O&M 0 EA 15,000$ $0 Extraction Wells Groundwater Pumping Charge 0 AFY 1,960$ $0 Hale Extraction Well/Wellhead Treatment 0 AFY 265$ $0 Rinconada Extraction Well/Wellhead Treatment 0 AFY 263$ $0 Peers Extraction Well/Wellhead Treatment 0 AFY 224$ $0 El Camino Extraction Well/Wellhead Treatment 0 AFY 256$ $0 Eleanor Extraction Well/Wellhead Treatment 0 AFY 256$ $0 Library Extraction Well/Wellhead Treatment 0 AFY 242$ $0 Mountain View Feasibility Study Long-Term Recommended Phase 0 LS 100,000$ $0 Total O&M Costs ($/yr)$290,000 Annualized Costs ($ / Year) Annualized Capital Costs ($/Year)One payment per year, spread over Project Life $2,439,000 Annual O&M Costs $290,000 Total Annualized Cost $2,729,000 Deliveries of Recycled Water Estimated Unit Cost ($/AF)$3,400 Annual Inspection and Maintenance of Pipeline - Average Annual Operator Hours per 800 AFY Concept Option: A1 Page 2 of 22 A2 Palo Alto Recycled Water Feasibility Study Last Updated:4-Feb-19 Discount Rate Project Life Updated by: K. Howes 3%30 Years CCI (SF, June 2018): 12014.72 Item Size Qty Unit Unit Cost Total Cost Capital Costs General Requirements Mobilization Applied to all capital costs 10% $2,987,744 Traffic Control Applied to all capital costs 4% $1,195,097 Treatment MBR 0.0 MGD 17,200,000$ $0 Ozone 0.0 MGD 360,000$ $0 BAC 0.0 MGD 323,000$ $0 MF/UF system 0.0 MGD 1,317,000$ $0 RO System 0.0 MGD 1,586,000$ $0 RO Concentrate Treatment 0.0 MGD 1,510,000$ $0 Advanced Oxidation and Disinfection 0.0 MGD 470,000$ $0 Free Chlorine 0.0 MGD 271,000$ $0 Chemicals (Storage and Use) 0.0 MGD 134,000$ $0 Sitework/Piping/Structures 0.0 MGD 3,427,000$ $0 Conveyance High-Density Urban Pipeline, HDPE 6 Inch 0 LF 186$ $0 8 Inch 50,383 LF 200$ $10,077,166 10 Inch 8,600 LF 212$ $1,823,362 12 Inch 5,500 LF 254$ $1,398,705 16 Inch 1,000 LF 277$ $277,070 18 Inch 0 LF 290$ $0 20 Inch 7,115 LF 334$ $2,375,058 24 Inch 0 LF 381$ $0 30 Inch 0 LF 462$ $0 Repurposing Pipe 6 Inch 2,200 LF 55$ $120,839 8 Inch 1,850 LF 66$ $121,540 Sheeting and Shoring (Open Cut)3% of Open Cut Pipeline Cost 3% $478,541 Microtunneling Tunnel and Casing (36")820 LF 1,728$ $1,416,960 Jacking Shaft 3 EA 300,000$ $900,000 Receiving Shaft 3 EA 150,000$ $450,000 Horizontal Directional Drilling 24 Inch Bore Diameter 350 LF 528$ $184,800 PTGAB 6 Inch 0 LF 375$ $0 8 Inch 236 LF 500$ $118,025 10 Inch 0 LF 625$ $0 12 Inch 0 LF 750$ $0 16 Inch 0 LF 1,000$ $0 20 Inch 0 LF 1,250$ $0 Jacking Shafts 2 EA 258,000$ $516,000 Receiving Shafts 2 EA 148,000$ $296,000 Pipe Bridge Pipe Bridge Support 56 LF 5,000$ $280,000 Pipe Bridge Pipe 6 Inch 431 LF 66$ $28,252 8 Inch 0 LF 86$ $0 10 Inch 50 LF 108$ $5,424 12 Inch 0 LF 139$ $0 16 Inch 65 LF 175$ $11,387 Potholing 746 EA 500$ $372,750 Cathodic Protection 3% of Pipeline Installation Cost 3% $593,614 Customer Services (no meter replacement) 62 EA 10,000$ $620,000 Customer Services (with meter replacement) 137 EA 15,000$ $2,055,000 Planter Box (Housing Pipe on Bridge Sidewalk) 6 CY 2,000$ $12,000 Planter Box (Installation Labor)8 Day 4,000$ $32,000 Pump Stations Pump Station #1 200 7,444$ $1,488,839 Pump Station #2 300 6,433$ $1,929,951 Pump Station #3 40 13,288$ $531,505 Pump Station #4 60 11,483$ $688,978 Pump Station #5 0 -$ $0 Phase 3 RWQCP Pump Station Improvements 0 LS 1,389,000$ $0 Phase 3 Booster Pump Station 0 LS 918,000$ $0 Hydropneumatic Tank - Pump Station #1 9,100 Gal 29$ $266,555 Hydropneumatic Tank - Pump Station #2 8,500 Gal 30$ $258,258 Hydropneumatic Tank - Pump Station #3 2,900 Gal 41$ $117,657 Hydropneumatic Tank - Pump Station #4 700 Gal 45$ $31,202 Hydropneumatic Tank - Pump Station #5 0 Gal -$ $0 Storage Tank Storage Tank 0.0 1,500,000$ $0 Underground Construction 0.0 LS 1,000,000$ Injection Well 0 EA 1,000,000$ $0 Extraction Wellhead Treatment Hale 0 AFY 2,937$ $0 Rinconada 0 AFY 2,937$ $0 Peers 0 AFY 3,353$ $0 El Camino 0 AFY 4,538$ $0 Eleanor 0 AFY 4,538$ $0 Library 0 AFY 4,538$ $0 Mountain View Feasibility Study Long-Term Recommended Phase 0 LS 3,326,000$ $0 Subtotal $34,060,000 Sales Tax 9%$1,344,000 Construction Cost Subtotal $35,404,000 Market Adjustment Factor 10%$3,540,000 Construction Contingency 40%$14,162,000 Construction Cost Total $53,200,000 Engineering and Admin Services (Design)15%$5,311,000 Construction Management 10% $3,540,000 Engineering Services During Construction 3%$1,062,000 Property Acquisition (Property Only)0 SQ FT 500$ $0 Property Acquisition (House on Property) 0 SQ FT 1,000$ $0 Rinconada Land Cost 0 LS 4,500,000$ $0 Peers Land Cost 0 LS 7,000,000$ $0 On-Time Fee 0 LS 75,000$ Total Capital Cost $63,000,000 Total installed HP, including standby Total installed HP, including standby Total installed HP, including standby Total installed HP, including standby Total installed HP, including standby MG Applied to half of capital costs (not including General) Concept Option: A2 Page 3 of 22 A2 Palo Alto Recycled Water Feasibility Study Last Updated:4-Feb-19 Discount Rate Project Life Updated by: K. Howes 3%30 Years CCI (SF, June 2018): 12014.72 Item Size Qty Unit Unit Cost Total Cost O&M Costs (Annual) Advanced Water Treatment MBR 0 MGD 560,000$ $0 Ozone 0 MGD 93,000$ $0 BAC 0 MGD 131,000$ $0 MF/UF system 0 MGD 342,000$ $0 RO System 0 MGD 574,000$ $0 RO Concentrate Treatment 0 MGD 226,000$ $0 Advanced Oxidation and Disinfection 0 MGD 73,000$ $0 Free Chlorine 0 MGD 32,000$ $0 Chemicals 0 MGD 121,000$ $0 Labor for Treatment (no MBR)0 1,040 hrs/MGD 100$ $0 Labor for MBR 0 1,040 hrs/year 100$ $0 Monitoring 0 $/year 1,000,000$ $0 Conveyance LF $0.78 $58,100 Pump Stations Consumables Equipment 1% $46,393 Mechanical 1% $46,393 Electrical/Instrumentation 1% $46,393 Electricity Requirement Energy Charge 794,111 kWh/year 0.15$ $119,117 Labor Costs Total No. Operators 4 No. Average Annual Operator Hours per Year 520 Hours Total Operator Hours per Year 2,080 Hours 99.81$ $207,610 Phase 3 RWQCP Pump Station Improvements 0 LS 96,000$ $0 Phase 3 Booster Pump Station 0 LS 81,000$ $0 Storage Tanks Annual O&M 1% $0 Injection Wells Annual O&M 0 EA 15,000$ $0 Extraction Wells Groundwater Pumping Charge 0 AFY 1,960$ $0 Hale Extraction Well/Wellhead Treatment 0 AFY 265$ $0 Rinconada Extraction Well/Wellhead Treatment 0 AFY 263$ $0 Peers Extraction Well/Wellhead Treatment 0 AFY 224$ $0 El Camino Extraction Well/Wellhead Treatment 0 AFY 256$ $0 Eleanor Extraction Well/Wellhead Treatment 0 AFY 256$ $0 Library Extraction Well/Wellhead Treatment 0 AFY 242$ $0 Mountain View Feasibility Study Long-Term Recommended Phase 0 LS 100,000$ $0 Total O&M Costs ($/yr)$520,000 Annualized Costs ($ / Year) Annualized Capital Costs ($/Year)One payment per year, spread over Project Life $3,214,000 Annual O&M Costs $520,000 Total Annualized Cost $3,734,000 Deliveries of Recycled Water Estimated Unit Cost ($/AF)$3,400 Annual Inspection and Maintenance of Pipeline - Average Annual Operator Hours per 1,100 AFY Concept Option: A2 Page 4 of 22 A3 Palo Alto Recycled Water Feasibility Study Last Updated:4-Feb-19 Discount Rate Project Life Updated by: K. Howes 3%30 Years CCI (SF, June 2018): 12014.72 Item Size Qty Unit Unit Cost Total Cost Capital Costs General Requirements Mobilization Applied to all capital costs 10% $4,033,005 Traffic Control Applied to all capital costs 4% $1,613,202 Treatment MBR 0.0 MGD 17,200,000$ $0 Ozone 0.0 MGD 360,000$ $0 BAC 0.0 MGD 323,000$ $0 MF/UF system 0.0 MGD 1,317,000$ $0 RO System 0.0 MGD 1,586,000$ $0 RO Concentrate Treatment 0.0 MGD 1,510,000$ $0 Advanced Oxidation and Disinfection 0.0 MGD 470,000$ $0 Free Chlorine 0.0 MGD 271,000$ $0 Chemicals (Storage and Use) 0.0 MGD 134,000$ $0 Sitework/Piping/Structures 0.0 MGD 3,427,000$ $0 Conveyance High-Density Urban Pipeline, HDPE 6 Inch 0 LF 186$ $0 8 Inch 60,148 LF 200$ $12,030,275 10 Inch 32,577 LF 212$ $6,906,936 12 Inch 3,550 LF 254$ $902,801 16 Inch 5,500 LF 277$ $1,523,885 18 Inch 0 LF 290$ $0 20 Inch 8,115 LF 334$ $2,708,868 24 Inch 0 LF 381$ $0 30 Inch 0 LF 462$ $0 Repurposing Pipe 6 Inch 2,200 LF 55$ $120,839 8 Inch 1,850 LF 66$ $121,540 Sheeting and Shoring (Open Cut)3% of Open Cut Pipeline Cost 3% $722,183 Microtunneling Tunnel and Casing (36")820 LF 1,728$ $1,416,960 Jacking Shaft 3 EA 300,000$ $900,000 Receiving Shaft 3 EA 150,000$ $450,000 Horizontal Directional Drilling 24 Inch Bore Diameter 350 LF 528$ $184,800 PTGAB 6 Inch 0 LF 375$ $0 8 Inch 236 LF 500$ $118,025 10 Inch 0 LF 625$ $0 12 Inch 0 LF 750$ $0 16 Inch 0 LF 1,000$ $0 20 Inch 0 LF 1,250$ $0 Jacking Shafts 2 EA 258,000$ $516,000 Receiving Shafts 2 EA 148,000$ $296,000 Pipe Bridge Pipe Bridge Support 87 LF 5,000$ $435,000 Pipe Bridge Pipe 6 Inch 566 LF 66$ $37,101 8 Inch 123 LF 86$ $10,631 10 Inch 50 LF 108$ $5,424 12 Inch 50 LF 139$ $6,961 16 Inch 65 LF 175$ $11,387 Potholing 1,122 EA 500$ $560,750 Cathodic Protection 3% of Pipeline Installation Cost 3% $845,358 Customer Services (no meter replacement) 62 EA 10,000$ $620,000 Customer Services (with meter replacement) 147 EA 15,000$ $2,205,000 Planter Box (Housing Pipe on Bridge Sidewalk) 6 CY 2,000$ $12,000 Planter Box (Installation Labor)8 Day 4,000$ $32,000 Pump Stations Pump Station #1 300 6,433$ $1,929,951 Pump Station #2 300 6,433$ $1,929,951 Pump Station #3 40 13,288$ $531,505 Pump Station #4 60 11,483$ $688,978 Pump Station #5 69 10,920$ $753,446 Phase 3 RWQCP Pump Station Improvements 0 LS 1,389,000$ $0 Phase 3 Booster Pump Station 0 LS 918,000$ $0 Hydropneumatic Tank - Pump Station #1 11,200 Gal 25$ $285,278 Hydropneumatic Tank - Pump Station #2 10,500 Gal 27$ $280,820 Hydropneumatic Tank - Pump Station #3 2,900 Gal 41$ $117,657 Hydropneumatic Tank - Pump Station #4 700 Gal 45$ $31,202 Hydropneumatic Tank - Pump Station #5 1,900 Gal 42$ $80,542 Storage Tank Storage Tank 0.0 1,500,000$ $0 Underground Construction 0.0 LS 1,000,000$ Injection Well 0 EA 1,000,000$ $0 Extraction Wellhead Treatment Hale 0 AFY 2,937$ $0 Rinconada 0 AFY 2,937$ $0 Peers 0 AFY 3,353$ $0 El Camino 0 AFY 4,538$ $0 Eleanor 0 AFY 4,538$ $0 Library 0 AFY 4,538$ $0 Mountain View Feasibility Study Long-Term Recommended Phase 0 LS 3,326,000$ $0 Subtotal $45,976,000 Sales Tax 9%$1,815,000 Construction Cost Subtotal $47,791,000 Market Adjustment Factor 10%$4,779,000 Construction Contingency 40%$19,116,000 Construction Cost Total $71,700,000 Engineering and Admin Services (Design)15%$7,169,000 Construction Management 10% $4,779,000 Engineering Services During Construction 3%$1,434,000 Property Acquisition (Property Only)0 SQ FT 500$ $0 Property Acquisition (House on Property) 0 SQ FT 1,000$ $0 Rinconada Land Cost 0 LS 4,500,000$ $0 Peers Land Cost 0 LS 7,000,000$ $0 On-Time Fee 0 LS 75,000$ Total Capital Cost $85,100,000 Total installed HP, including standby Total installed HP, including standby Total installed HP, including standby Total installed HP, including standby Total installed HP, including standby MG Applied to half of capital costs (not including General) Concept Option: A3 Page 5 of 22 A3 Palo Alto Recycled Water Feasibility Study Last Updated:4-Feb-19 Discount Rate Project Life Updated by: K. Howes 3%30 Years CCI (SF, June 2018): 12014.72 Item Size Qty Unit Unit Cost Total Cost O&M Costs (Annual) Advanced Water Treatment MBR 0 MGD 560,000$ $0 Ozone 0 MGD 93,000$ $0 BAC 0 MGD 131,000$ $0 MF/UF system 0 MGD 342,000$ $0 RO System 0 MGD 574,000$ $0 RO Concentrate Treatment 0 MGD 226,000$ $0 Advanced Oxidation and Disinfection 0 MGD 73,000$ $0 Free Chlorine 0 MGD 32,000$ $0 Chemicals 0 MGD 121,000$ $0 Labor for Treatment (no MBR)0 1,040 hrs/MGD 100$ $0 Labor for MBR 0 1,040 hrs/year 100$ $0 Monitoring 0 $/year 1,000,000$ $0 Conveyance LF $0.78 $87,864 Pump Stations Consumables Equipment 1% $58,338 Mechanical 1% $58,338 Electrical/Instrumentation 1% $58,338 Electricity Requirement Energy Charge 1,040,732 kWh/year 0.15$ $156,110 Labor Costs Total No. Operators 5 No. Average Annual Operator Hours per Year 520 Hours Total Operator Hours per Year 2,600 Hours 99.81$ $259,513 Phase 3 RWQCP Pump Station Improvements 0 LS 96,000$ $0 Phase 3 Booster Pump Station 0 LS 81,000$ $0 Storage Tanks Annual O&M 1% $0 Injection Wells Annual O&M 0 EA 15,000$ $0 Extraction Wells Groundwater Pumping Charge 0 AFY 1,960$ $0 Hale Extraction Well/Wellhead Treatment 0 AFY 265$ $0 Rinconada Extraction Well/Wellhead Treatment 0 AFY 263$ $0 Peers Extraction Well/Wellhead Treatment 0 AFY 224$ $0 El Camino Extraction Well/Wellhead Treatment 0 AFY 256$ $0 Eleanor Extraction Well/Wellhead Treatment 0 AFY 256$ $0 Library Extraction Well/Wellhead Treatment 0 AFY 242$ $0 Mountain View Feasibility Study Long-Term Recommended Phase 0 LS 100,000$ $0 Total O&M Costs ($/yr)$680,000 Annualized Costs ($ / Year) Annualized Capital Costs ($/Year)One payment per year, spread over Project Life $4,342,000 Annual O&M Costs $680,000 Total Annualized Cost $5,022,000 Deliveries of Recycled Water Estimated Unit Cost ($/AF)$4,000 Annual Inspection and Maintenance of Pipeline - Average Annual Operator Hours per 1,250 AFY Concept Option: A3 Page 6 of 22 A4 Palo Alto Recycled Water Feasibility Study Last Updated:4-Feb-19 Discount Rate Project Life Updated by: K. Howes 3%30 Years CCI (SF, June 2018): 12014.72 Item Size Qty Unit Unit Cost Total Cost Capital Costs General Requirements Mobilization Applied to all capital costs 10% $0 Traffic Control Applied to all capital costs 4% $0 Treatment MBR 0.0 MGD 17,200,000$ $0 Ozone 0.0 MGD 360,000$ $0 BAC 0.0 MGD 323,000$ $0 MF/UF system 0.0 MGD 1,317,000$ $0 RO System 0.0 MGD 1,586,000$ $0 RO Concentrate Treatment 0.0 MGD 1,510,000$ $0 Advanced Oxidation and Disinfection 0.0 MGD 470,000$ $0 Free Chlorine 0.0 MGD 271,000$ $0 Chemicals (Storage and Use) 0.0 MGD 134,000$ $0 Sitework/Piping/Structures 0.0 MGD 3,427,000$ $0 Conveyance High-Density Urban Pipeline, HDPE 6 Inch 0 LF 186$ $0 8 Inch 0 LF 200$ $0 10 Inch 0 LF 212$ $0 12 Inch 0 LF 254$ $0 16 Inch 0 LF 277$ $0 18 Inch 0 LF 290$ $0 20 Inch 0 LF 334$ $0 24 Inch 0 LF 381$ $0 30 Inch 0 LF 462$ $0 Repurposing Pipe 6 Inch 0 LF 55$ $0 8 Inch 0 LF 66$ $0 Sheeting and Shoring (Open Cut)3% of Open Cut Pipeline Cost 3% $0 Microtunneling Tunnel and Casing (36")0 LF 1,728$ $0 Jacking Shaft 0 EA 300,000$ $0 Receiving Shaft 0 EA 150,000$ $0 Horizontal Directional Drilling 24 Inch Bore Diameter 0 LF 528$ $0 PTGAB 6 Inch 0 LF 375$ $0 8 Inch 0 LF 500$ $0 10 Inch 0 LF 625$ $0 12 Inch 0 LF 750$ $0 16 Inch 0 LF 1,000$ $0 20 Inch 0 LF 1,250$ $0 Jacking Shafts 0 EA 258,000$ $0 Receiving Shafts 0 EA 148,000$ $0 Pipe Bridge Pipe Bridge Support 0 LF 5,000$ $0 Pipe Bridge Pipe 6 Inch 0 LF 66$ $0 8 Inch 0 LF 86$ $0 10 Inch 0 LF 108$ $0 12 Inch 0 LF 139$ $0 16 Inch 0 LF 175$ $0 Potholing 0 EA 500$ $0 Cathodic Protection 3% of Pipeline Installation Cost 3% $0 Customer Services (no meter replacement) 0 EA 10,000$ $0 Customer Services (with meter replacement) 0 EA 15,000$ $0 Planter Box (Housing Pipe on Bridge Sidewalk) 0 CY 2,000$ $0 Planter Box (Installation Labor)0 Day 4,000$ $0 Pump Stations Pump Station #1 0 -$ $0 Pump Station #2 0 -$ $0 Pump Station #3 0 -$ $0 Pump Station #4 0 -$ $0 Pump Station #5 0 -$ $0 Phase 3 RWQCP Pump Station Improvements 0 LS 1,389,000$ $0 Phase 3 Booster Pump Station 0 LS 918,000$ $0 Hydropneumatic Tank - Pump Station #1 0 Gal -$ $0 Hydropneumatic Tank - Pump Station #2 0 Gal -$ $0 Hydropneumatic Tank - Pump Station #3 0 Gal -$ $0 Hydropneumatic Tank - Pump Station #4 0 Gal -$ $0 Hydropneumatic Tank - Pump Station #5 0 Gal -$ $0 Storage Tank Storage Tank 0.0 1,500,000$ $0 Underground Construction 0.0 LS 1,000,000$ Injection Well 0 EA 1,000,000$ $0 Extraction Wellhead Treatment Hale 0 AFY 2,937$ $0 Rinconada 0 AFY 2,937$ $0 Peers 0 AFY 3,353$ $0 El Camino 0 AFY 4,538$ $0 Eleanor 0 AFY 4,538$ $0 Library 0 AFY 4,538$ $0 Mountain View Feasibility Study Long-Term Recommended Phase 1 LS 3,326,000$ $3,326,000 Subtotal $3,326,000 Sales Tax 9%$150,000 Construction Cost Subtotal $3,476,000 Market Adjustment Factor 10%$348,000 Construction Contingency 40%$1,390,000 Construction Cost Total $5,300,000 Engineering and Admin Services (Design)15%$521,000 Construction Management 10% $348,000 Engineering Services During Construction 3%$104,000 Property Acquisition (Property Only)0 SQ FT 500$ $0 Property Acquisition (House on Property) 0 SQ FT 1,000$ $0 Rinconada Land Cost 0 LS 4,500,000$ $0 Peers Land Cost 0 LS 7,000,000$ $0 On-Time Fee 0 LS 75,000$ Total Capital Cost $6,200,000 Total installed HP, including standby MG Applied to half of capital costs (not including General) Total installed HP, including standby Total installed HP, including standby Total installed HP, including standby Total installed HP, including standby Concept Option: A4 Page 7 of 22 A4 Palo Alto Recycled Water Feasibility Study Last Updated:4-Feb-19 Discount Rate Project Life Updated by: K. Howes 3%30 Years CCI (SF, June 2018): 12014.72 Item Size Qty Unit Unit Cost Total Cost O&M Costs (Annual) Advanced Water Treatment MBR 0 MGD 560,000$ $0 Ozone 0 MGD 93,000$ $0 BAC 0 MGD 131,000$ $0 MF/UF system 0 MGD 342,000$ $0 RO System 0 MGD 574,000$ $0 RO Concentrate Treatment 0 MGD 226,000$ $0 Advanced Oxidation and Disinfection 0 MGD 73,000$ $0 Free Chlorine 0 MGD 32,000$ $0 Chemicals 0 MGD 121,000$ $0 Labor for Treatment (no MBR)0 1,040 hrs/MGD 100$ $0 Labor for MBR 0 1,040 hrs/year 100$ $0 Monitoring 0 $/year 1,000,000$ $0 Conveyance LF $0.78 $0 Pump Stations Consumables Equipment 1% $0 Mechanical 1% $0 Electrical/Instrumentation 1% $0 Electricity Requirement Energy Charge - kWh/year 0.15$ $0 Labor Costs Total No. Operators 0 No. Average Annual Operator Hours per Year 520 Hours Total Operator Hours per Year 0 Hours 99.81$ $0 Phase 3 RWQCP Pump Station Improvements 0 LS 96,000$ $0 Phase 3 Booster Pump Station 0 LS 81,000$ $0 Storage Tanks Annual O&M 1% $0 Injection Wells Annual O&M 0 EA 15,000$ $0 Extraction Wells Groundwater Pumping Charge 0 AFY 1,960$ $0 Hale Extraction Well/Wellhead Treatment 0 AFY 265$ $0 Rinconada Extraction Well/Wellhead Treatment 0 AFY 263$ $0 Peers Extraction Well/Wellhead Treatment 0 AFY 224$ $0 El Camino Extraction Well/Wellhead Treatment 0 AFY 256$ $0 Eleanor Extraction Well/Wellhead Treatment 0 AFY 256$ $0 Library Extraction Well/Wellhead Treatment 0 AFY 242$ $0 Mountain View Feasibility Study Long-Term Recommended Phase 1 LS 100,000$ $100,000 Total O&M Costs ($/yr)$100,000 Annualized Costs ($ / Year) Annualized Capital Costs ($/Year)One payment per year, spread over Project Life $316,000 Annual O&M Costs $100,000 Total Annualized Cost $416,000 Deliveries of Recycled Water Estimated Unit Cost ($/AF)$2,100 Annual Inspection and Maintenance of Pipeline - Average Annual Operator Hours per 200 AFY Concept Option: A4 Page 8 of 22 A5 Palo Alto Recycled Water Feasibility Study Last Updated:4-Feb-19 Discount Rate Project Life Updated by: K. Howes 3%30 Years CCI (SF, June 2018): 12014.72 Item Size Qty Unit Unit Cost Total Cost Capital Costs General Requirements Mobilization Applied to all capital costs 10% $3,443,427 Traffic Control Applied to all capital costs 4% $1,377,371 Treatment MBR 0.0 MGD 17,200,000$ $0 Ozone 0.0 MGD 360,000$ $0 BAC 0.0 MGD 323,000$ $0 MF/UF system 0.0 MGD 1,317,000$ $0 RO System 0.0 MGD 1,586,000$ $0 RO Concentrate Treatment 0.0 MGD 1,510,000$ $0 Advanced Oxidation and Disinfection 0.0 MGD 470,000$ $0 Free Chlorine 0.0 MGD 271,000$ $0 Chemicals (Storage and Use) 0.0 MGD 134,000$ $0 Sitework/Piping/Structures 0.0 MGD 3,427,000$ $0 Conveyance High-Density Urban Pipeline, HDPE 6 Inch 0 LF 186$ $0 8 Inch 21,500 LF 200$ $4,300,241 10 Inch 14,500 LF 212$ $3,074,272 12 Inch 5,500 LF 254$ $1,398,705 16 Inch 0 LF 277$ $0 18 Inch 0 LF 290$ $0 20 Inch 44,714 LF 334$ $14,925,980 24 Inch 0 LF 381$ $0 30 Inch 0 LF 462$ $0 Repurposing Pipe 6 Inch 0 LF 55$ $0 8 Inch 0 LF 66$ $0 Sheeting and Shoring (Open Cut)3% of Open Cut Pipeline Cost 3% $710,976 Microtunneling Tunnel and Casing (36")0 LF 1,728$ $0 Jacking Shaft 0 EA 300,000$ $0 Receiving Shaft 0 EA 150,000$ $0 Horizontal Directional Drilling 24 Inch Bore Diameter 0 LF 528$ $0 PTGAB 6 Inch 0 LF 375$ $0 8 Inch 0 LF 500$ $0 10 Inch 122 LF 625$ $76,266 12 Inch 0 LF 750$ $0 16 Inch 0 LF 1,000$ $0 20 Inch 114 LF 1,250$ $142,530 Jacking Shafts 2 EA 258,000$ $516,000 Receiving Shafts 2 EA 148,000$ $296,000 Pipe Bridge Pipe Bridge Support 61 LF 5,000$ $305,000 Pipe Bridge Pipe 6 Inch 92 LF 66$ $6,031 8 Inch 240 LF 86$ $20,744 10 Inch 91 LF 108$ $9,871 12 Inch 0 LF 139$ $0 16 Inch 172 LF 175$ $30,132 Potholing 870 EA 500$ $435,225 Cathodic Protection 3% of Pipeline Installation Cost 3% $736,597 Customer Services (no meter replacement) 0 EA 10,000$ $0 Customer Services (with meter replacement) 106 EA 15,000$ $1,590,000 Planter Box (Housing Pipe on Bridge Sidewalk) 0 CY 2,000$ $0 Planter Box (Installation Labor)0 Day 4,000$ $0 Pump Stations Pump Station #1 300 6,433$ $1,929,951 Pump Station #2 225 7,135$ $1,605,408 Pump Station #3 0 -$ $0 Pump Station #4 0 -$ $0 Pump Station #5 0 -$ $0 Phase 3 RWQCP Pump Station Improvements 0 LS 1,389,000$ $0 Phase 3 Booster Pump Station 0 LS 918,000$ $0 Hydropneumatic Tank - Pump Station #1 12,200 Gal 24$ $288,554 Hydropneumatic Tank - Pump Station #2 7,200 Gal 33$ $235,789 Hydropneumatic Tank - Pump Station #3 0 Gal -$ $0 Hydropneumatic Tank - Pump Station #4 0 Gal -$ $0 Hydropneumatic Tank - Pump Station #5 0 Gal -$ $0 Storage Tank Storage Tank 1.2 1,500,000$ $1,800,000 Underground Construction 0.0 LS 1,000,000$ Injection Well 0 EA 1,000,000$ $0 Extraction Wellhead Treatment Hale 0 AFY 2,937$ $0 Rinconada 0 AFY 2,937$ $0 Peers 0 AFY 3,353$ $0 El Camino 0 AFY 4,538$ $0 Eleanor 0 AFY 4,538$ $0 Library 0 AFY 4,538$ $0 Mountain View Feasibility Study Long-Term Recommended Phase 0 LS 3,326,000$ $0 Subtotal $39,255,000 Sales Tax 9%$1,550,000 Construction Cost Subtotal $40,805,000 Market Adjustment Factor 10%$4,081,000 Construction Contingency 40%$16,322,000 Construction Cost Total $61,300,000 Engineering and Admin Services (Design)15%$6,121,000 Construction Management 10% $4,081,000 Engineering Services During Construction 3%$1,224,000 Property Acquisition (Property Only)0 SQ FT 500$ $0 Property Acquisition (House on Property) 0 SQ FT 1,000$ $0 Rinconada Land Cost 0 LS 4,500,000$ $0 Peers Land Cost 0 LS 7,000,000$ $0 On-Time Fee 0 LS 75,000$ Total Capital Cost $72,600,000 Total installed HP, including standby MG Applied to half of capital costs (not including General) Total installed HP, including standby Total installed HP, including standby Total installed HP, including standby Total installed HP, including standby Concept Option: A5 Page 9 of 22 A5 Palo Alto Recycled Water Feasibility Study Last Updated:4-Feb-19 Discount Rate Project Life Updated by: K. Howes 3%30 Years CCI (SF, June 2018): 12014.72 Item Size Qty Unit Unit Cost Total Cost O&M Costs (Annual) Advanced Water Treatment MBR 0 MGD 560,000$ $0 Ozone 0 MGD 93,000$ $0 BAC 0 MGD 131,000$ $0 MF/UF system 0 MGD 342,000$ $0 RO System 0 MGD 574,000$ $0 RO Concentrate Treatment 0 MGD 226,000$ $0 Advanced Oxidation and Disinfection 0 MGD 73,000$ $0 Free Chlorine 0 MGD 32,000$ $0 Chemicals 0 MGD 121,000$ $0 Labor for Treatment (no MBR)0 1,040 hrs/MGD 100$ $0 Labor for MBR 0 1,040 hrs/year 100$ $0 Monitoring 0 $/year 1,000,000$ $0 Conveyance LF $0.78 $68,908 Pump Stations Consumables Equipment 1% $35,354 Mechanical 1% $35,354 Electrical/Instrumentation 1% $35,354 Electricity Requirement Energy Charge 668,276 kWh/year 0.15$ $100,241 Labor Costs Total No. Operators 2 No. Average Annual Operator Hours per Year 520 Hours Total Operator Hours per Year 1,040 Hours 99.81$ $103,805 Phase 3 RWQCP Pump Station Improvements 0 LS 96,000$ $0 Phase 3 Booster Pump Station 0 LS 81,000$ $0 Storage Tanks Annual O&M 1% $18,000 Injection Wells Annual O&M 0 EA 15,000$ $0 Extraction Wells Groundwater Pumping Charge 0 AFY 1,960$ $0 Hale Extraction Well/Wellhead Treatment 0 AFY 265$ $0 Rinconada Extraction Well/Wellhead Treatment 0 AFY 263$ $0 Peers Extraction Well/Wellhead Treatment 0 AFY 224$ $0 El Camino Extraction Well/Wellhead Treatment 0 AFY 256$ $0 Eleanor Extraction Well/Wellhead Treatment 0 AFY 256$ $0 Library Extraction Well/Wellhead Treatment 0 AFY 242$ $0 Mountain View Feasibility Study Long-Term Recommended Phase 0 LS 100,000$ $0 Total O&M Costs ($/yr)$400,000 Annualized Costs ($ / Year) Annualized Capital Costs ($/Year)One payment per year, spread over Project Life $3,704,000 Annual O&M Costs $400,000 Total Annualized Cost $4,104,000 Deliveries of Recycled Water Estimated Unit Cost ($/AF)$4,600 Annual Inspection and Maintenance of Pipeline - Average Annual Operator Hours per 900 AFY Concept Option: A5 Page 10 of 22 A6 Palo Alto Recycled Water Feasibility Study Last Updated:4-Feb-19 Discount Rate Project Life Updated by: K. Howes 3%30 Years CCI (SF, June 2018): 12014.72 Item Size Qty Unit Unit Cost Total Cost Capital Costs General Requirements Mobilization Applied to all capital costs 10% $980,415 Traffic Control Applied to all capital costs 4% $392,166 Treatment MBR 0.0 MGD 17,200,000$ $0 Ozone 0.0 MGD 360,000$ $0 BAC 0.0 MGD 323,000$ $0 MF/UF system 0.0 MGD 1,317,000$ $0 RO System 0.0 MGD 1,586,000$ $0 RO Concentrate Treatment 0.0 MGD 1,510,000$ $0 Advanced Oxidation and Disinfection 0.0 MGD 470,000$ $0 Free Chlorine 0.0 MGD 271,000$ $0 Chemicals (Storage and Use) 0.0 MGD 134,000$ $0 Sitework/Piping/Structures 0.0 MGD 3,427,000$ $0 Conveyance High-Density Urban Pipeline, HDPE 6 Inch 0 LF 186$ $0 8 Inch 14,100 LF 200$ $2,820,158 10 Inch 10,200 LF 212$ $2,162,592 12 Inch 10,000 LF 254$ $2,543,100 16 Inch 0 LF 277$ $0 18 Inch 0 LF 290$ $0 20 Inch 0 LF 334$ $0 24 Inch 0 LF 381$ $0 30 Inch 0 LF 462$ $0 Repurposing Pipe 6 Inch 0 LF 55$ $0 8 Inch 0 LF 66$ $0 Sheeting and Shoring (Open Cut)3% of Open Cut Pipeline Cost 3% $225,775 Microtunneling Tunnel and Casing (36")0 LF 1,728$ $0 Jacking Shaft 0 EA 300,000$ $0 Receiving Shaft 0 EA 150,000$ $0 Horizontal Directional Drilling 24 Inch Bore Diameter 0 LF 528$ $0 PTGAB 6 Inch 0 LF 375$ $0 8 Inch 0 LF 500$ $0 10 Inch 0 LF 625$ $0 12 Inch 0 LF 750$ $0 16 Inch 0 LF 1,000$ $0 20 Inch 0 LF 1,250$ $0 Jacking Shafts 0 EA 258,000$ $0 Receiving Shafts 0 EA 148,000$ $0 Pipe Bridge Pipe Bridge Support 0 LF 5,000$ $0 Pipe Bridge Pipe 6 Inch 0 LF 66$ $0 8 Inch 0 LF 86$ $0 10 Inch 0 LF 108$ $0 12 Inch 0 LF 139$ $0 16 Inch 0 LF 175$ $0 Potholing 343 EA 500$ $171,500 Cathodic Protection 3% of Pipeline Installation Cost 3% $232,549 Customer Services (no meter replacement) 17 EA 10,000$ $170,000 Customer Services (with meter replacement) 16 EA 15,000$ $240,000 Planter Box (Housing Pipe on Bridge Sidewalk) 0 CY 2,000$ $0 Planter Box (Installation Labor)0 Day 4,000$ $0 Pump Stations Pump Station #1 150 8,256$ $1,238,474 Pump Station #2 0 -$ $0 Pump Station #3 0 -$ $0 Pump Station #4 0 -$ $0 Pump Station #5 0 -$ $0 Phase 3 RWQCP Pump Station Improvements 0 LS 1,389,000$ $0 Phase 3 Booster Pump Station 0 LS 918,000$ $0 Hydropneumatic Tank - Pump Station #1 0 Gal -$ $0 Hydropneumatic Tank - Pump Station #2 0 Gal -$ $0 Hydropneumatic Tank - Pump Station #3 0 Gal -$ $0 Hydropneumatic Tank - Pump Station #4 0 Gal -$ $0 Hydropneumatic Tank - Pump Station #5 0 Gal -$ $0 Storage Tank Storage Tank 0.0 1,500,000$ $0 Underground Construction 0.0 LS 1,000,000$ Injection Well 0 EA 1,000,000$ $0 Extraction Wellhead Treatment Hale 0 AFY 2,937$ $0 Rinconada 0 AFY 2,937$ $0 Peers 0 AFY 3,353$ $0 El Camino 0 AFY 4,538$ $0 Eleanor 0 AFY 4,538$ $0 Library 0 AFY 4,538$ $0 Mountain View Feasibility Study Long-Term Recommended Phase 0 LS 3,326,000$ $0 Subtotal $11,177,000 Sales Tax 9%$441,000 Construction Cost Subtotal $11,618,000 Market Adjustment Factor 10%$1,162,000 Construction Contingency 40%$4,647,000 Construction Cost Total $17,500,000 Engineering and Admin Services (Design)15%$1,743,000 Construction Management 10% $1,162,000 Engineering Services During Construction 3%$349,000 Property Acquisition (Property Only)0 SQ FT 500$ $0 Property Acquisition (House on Property) 0 SQ FT 1,000$ $0 Rinconada Land Cost 0 LS 4,500,000$ $0 Peers Land Cost 0 LS 7,000,000$ $0 On-Time Fee 0 LS 75,000$ Total Capital Cost $20,700,000 Total installed HP, including standby Total installed HP, including standby Total installed HP, including standby Total installed HP, including standby Total installed HP, including standby MG Applied to half of capital costs (not including General) Concept Option: A6 Page 11 of 22 A6 Palo Alto Recycled Water Feasibility Study Last Updated:4-Feb-19 Discount Rate Project Life Updated by: K. Howes 3%30 Years CCI (SF, June 2018): 12014.72 Item Size Qty Unit Unit Cost Total Cost O&M Costs (Annual) Advanced Water Treatment MBR 0 MGD 560,000$ $0 Ozone 0 MGD 93,000$ $0 BAC 0 MGD 131,000$ $0 MF/UF system 0 MGD 342,000$ $0 RO System 0 MGD 574,000$ $0 RO Concentrate Treatment 0 MGD 226,000$ $0 Advanced Oxidation and Disinfection 0 MGD 73,000$ $0 Free Chlorine 0 MGD 32,000$ $0 Chemicals 0 MGD 121,000$ $0 Labor for Treatment (no MBR)0 1,040 hrs/MGD 100$ $0 Labor for MBR 0 1,040 hrs/year 100$ $0 Monitoring 0 $/year 1,000,000$ $0 Conveyance LF $0.78 $27,152 Pump Stations Consumables Equipment 1% $12,385 Mechanical 1% $12,385 Electrical/Instrumentation 1% $12,385 Electricity Requirement Energy Charge 201,615 kWh/year 0.15$ $30,242 Labor Costs Total No. Operators 1 No. Average Annual Operator Hours per Year 520 Hours Total Operator Hours per Year 520 Hours 99.81$ $51,903 Phase 3 RWQCP Pump Station Improvements 0 LS 96,000$ $0 Phase 3 Booster Pump Station 0 LS 81,000$ $0 Storage Tanks Annual O&M 1% $0 Injection Wells Annual O&M 0 EA 15,000$ $0 Extraction Wells Groundwater Pumping Charge 0 AFY 1,960$ $0 Hale Extraction Well/Wellhead Treatment 0 AFY 265$ $0 Rinconada Extraction Well/Wellhead Treatment 0 AFY 263$ $0 Peers Extraction Well/Wellhead Treatment 0 AFY 224$ $0 El Camino Extraction Well/Wellhead Treatment 0 AFY 256$ $0 Eleanor Extraction Well/Wellhead Treatment 0 AFY 256$ $0 Library Extraction Well/Wellhead Treatment 0 AFY 242$ $0 Mountain View Feasibility Study Long-Term Recommended Phase 0 LS 100,000$ $0 Total O&M Costs ($/yr)$150,000 Annualized Costs ($ / Year) Annualized Capital Costs ($/Year)One payment per year, spread over Project Life $1,056,000 Annual O&M Costs $150,000 Total Annualized Cost $1,206,000 Deliveries of Recycled Water Estimated Unit Cost ($/AF)$2,400 Annual Inspection and Maintenance of Pipeline - Average Annual Operator Hours per 500 AFY Concept Option: A6 Page 12 of 22 B1 Palo Alto Recycled Water Feasibility Study Last Updated:4-Feb-19 Discount Rate Project Life Updated by: K. Howes 3%30 Years CCI (SF, June 2018): 12014.72 Item Size Qty Unit Unit Cost Total Cost Capital Costs General Requirements Mobilization Applied to all capital costs 10% $4,956,940 Traffic Control Applied to all capital costs 4% $1,982,776 Treatment MBR 1.5 MGD 16,125,000$ $24,000,000 Ozone 0.0 MGD 360,000$ $0 BAC 0.0 MGD 323,000$ $0 MF/UF system 0.0 MGD 1,317,000$ $0 RO System 0.0 MGD 1,586,000$ $0 RO Concentrate Treatment 0.0 MGD 1,510,000$ $0 Advanced Oxidation and Disinfection 0.0 MGD 470,000$ $0 Free Chlorine 0.0 MGD 271,000$ $0 Chemicals (Storage and Use) 0.0 MGD 134,000$ $0 Sitework/Piping/Structures 0.0 MGD 3,427,000$ $0 Conveyance High-Density Urban Pipeline, HDPE 6 Inch 0 LF 186$ $0 8 Inch 39,500 LF 200$ $7,900,443 10 Inch 4,000 LF 212$ $848,075 12 Inch 6,000 LF 254$ $1,525,860 16 Inch 11,500 LF 277$ $3,186,305 18 Inch 0 LF 290$ $0 20 Inch 6,000 LF 334$ $2,002,860 24 Inch 0 LF 381$ $0 30 Inch 0 LF 462$ $0 Repurposing Pipe 6 Inch 0 LF 55$ $0 8 Inch 0 LF 66$ $0 Sheeting and Shoring (Open Cut)3% of Open Cut Pipeline Cost 3% $463,906 Microtunneling Tunnel and Casing (36")0 LF 1,728$ $0 Jacking Shaft 0 EA 300,000$ $0 Receiving Shaft 0 EA 150,000$ $0 Horizontal Directional Drilling 24 Inch Bore Diameter 350 LF 528$ $184,800 PTGAB 6 Inch 0 LF 375$ $0 8 Inch 179 LF 500$ $89,519 10 Inch 0 LF 625$ $0 12 Inch 0 LF 750$ $0 16 Inch 0 LF 1,000$ $0 20 Inch 0 LF 1,250$ $0 Jacking Shafts 0 EA 258,000$ $0 Receiving Shafts 0 EA 148,000$ $0 Pipe Bridge Pipe Bridge Support 14 LF 5,000$ $70,000 Pipe Bridge Pipe 6 Inch 123 LF 66$ $8,063 8 Inch 0 LF 86$ $0 10 Inch 0 LF 108$ $0 12 Inch 0 LF 139$ $0 16 Inch 0 LF 175$ $0 Potholing 677 EA 500$ $338,260 Cathodic Protection 3% of Pipeline Installation Cost 3% $486,295 Customer Services (no meter replacement) 62 EA 10,000$ $620,000 Customer Services (with meter replacement) 139 EA 15,000$ $2,085,000 Planter Box (Housing Pipe on Bridge Sidewalk) 0 CY 2,000$ $0 Planter Box (Installation Labor)0 Day 4,000$ $0 Pump Stations Pump Station #1 200 7,444$ $1,488,839 Pump Station #2 60 11,483$ $688,978 Pump Station #3 60 11,483$ $688,978 Pump Station #4 6 26,306$ $157,836 Pump Station #5 0 -$ $0 Phase 3 RWQCP Pump Station Improvements 0 LS 1,389,000$ $0 Phase 3 Booster Pump Station 0 LS 918,000$ $0 Hydropneumatic Tank - Pump Station #1 6,800 Gal 33$ $227,638 Hydropneumatic Tank - Pump Station #2 5,500 Gal 36$ $197,127 Hydropneumatic Tank - Pump Station #3 1,400 Gal 43$ $60,621 Hydropneumatic Tank - Pump Station #4 0 Gal -$ $0 Hydropneumatic Tank - Pump Station #5 0 Gal -$ $0 Storage Tank Storage Tank 1.5 1,500,000$ $2,250,000 Underground Construction 0.0 LS 1,000,000$ Injection Well 0 EA 1,000,000$ $0 Extraction Wellhead Treatment Hale 0 AFY 2,937$ $0 Rinconada 0 AFY 2,937$ $0 Peers 0 AFY 3,353$ $0 El Camino 0 AFY 4,538$ $0 Eleanor 0 AFY 4,538$ $0 Library 0 AFY 4,538$ $0 Mountain View Feasibility Study Long-Term Recommended Phase 0 LS 3,326,000$ $0 Subtotal $56,509,000 Sales Tax 9%$2,231,000 Construction Cost Subtotal $58,740,000 Market Adjustment Factor 10%$5,874,000 Construction Contingency 40%$23,496,000 Construction Cost Total $88,200,000 Engineering and Admin Services (Design)15%$8,811,000 Construction Management 10% $5,874,000 Engineering Services During Construction 3%$1,762,000 Property Acquisition (Property Only)50,000 SQ FT 500$ $25,000,000 Property Acquisition (House on Property)0 SQ FT 1,000$ $0 Rinconada Land Cost 0 LS 4,500,000$ $0 Peers Land Cost 0 LS 7,000,000$ $0 On-Time Fee 0 LS 75,000$ Total Capital Cost $129,600,000 Total installed HP, including standby MG Applied to half of capital costs (not including General) Total installed HP, including standby Total installed HP, including standby Total installed HP, including standby Total installed HP, including standby Concept Option: B1 Page 13 of 22 B1 Palo Alto Recycled Water Feasibility Study Last Updated:4-Feb-19 Discount Rate Project Life Updated by: K. Howes 3%30 Years CCI (SF, June 2018): 12014.72 Item Size Qty Unit Unit Cost Total Cost O&M Costs (Annual) Advanced Water Treatment MBR 2 MGD 540,000$ $810,000 Ozone 0 MGD 93,000$ $0 BAC 0 MGD 131,000$ $0 MF/UF system 0 MGD 342,000$ $0 RO System 0 MGD 574,000$ $0 RO Concentrate Treatment 0 MGD 226,000$ $0 Advanced Oxidation and Disinfection 0 MGD 73,000$ $0 Free Chlorine 0 MGD 32,000$ $0 Chemicals 0 MGD 121,000$ $0 Labor for Treatment (no MBR)0 1,040 hrs/MGD 100$ $0 Labor for MBR 2 1,040 hrs/year 100$ $104,000 Monitoring 0 $/year 1,000,000$ $0 Conveyance LF $0.78 $53,279 Pump Stations Consumables Equipment 1% $30,246 Mechanical 1% $30,246 Electrical/Instrumentation 1% $30,246 Electricity Requirement Energy Charge 550,080 kWh/year 0.15$ $82,512 Labor Costs Total No. Operators 4 No. Average Annual Operator Hours per Year 520 Hours Total Operator Hours per Year 2,080 Hours 99.81$ $207,610 Phase 3 RWQCP Pump Station Improvements 0 LS 96,000$ $0 Phase 3 Booster Pump Station 0 LS 81,000$ $0 Storage Tanks Annual O&M 1% $22,500 Injection Wells Annual O&M 0 EA 15,000$ $0 Extraction Wells Groundwater Pumping Charge 0 AFY 1,960$ $0 Hale Extraction Well/Wellhead Treatment 0 AFY 265$ $0 Rinconada Extraction Well/Wellhead Treatment 0 AFY 263$ $0 Peers Extraction Well/Wellhead Treatment 0 AFY 224$ $0 El Camino Extraction Well/Wellhead Treatment 0 AFY 256$ $0 Eleanor Extraction Well/Wellhead Treatment 0 AFY 256$ $0 Library Extraction Well/Wellhead Treatment 0 AFY 242$ $0 Mountain View Feasibility Study Long-Term Recommended Phase 0 LS 100,000$ $0 Total O&M Costs ($/yr)$1,370,000 Annualized Costs ($ / Year) Annualized Capital Costs ($/Year)One payment per year, spread over Project Life $6,612,000 Annual O&M Costs $1,370,000 Total Annualized Cost $7,982,000 Deliveries of Recycled Water Estimated Unit Cost ($/AF)$8,900 Annual Inspection and Maintenance of Pipeline - Average Annual Operator Hours per 900 AFY Concept Option: B1 Page 14 of 22 C1 Palo Alto Recycled Water Feasibility Study Last Updated:4-Feb-19 Discount Rate Project Life Updated by: K. Howes 3%30 Years CCI (SF, June 2018): 12014.72 Item Size Qty Unit Unit Cost Total Cost Capital Costs General Requirements Mobilization Applied to all capital costs 10% $3,353,169 Traffic Control Applied to all capital costs 4% $1,341,268 Treatment MBR 0.0 MGD 17,200,000$ $0 Ozone 0.0 MGD 360,000$ $0 BAC 0.0 MGD 323,000$ $0 MF/UF system 2.5 MGD 1,317,000$ $3,300,000 RO System 2.5 MGD 1,586,000$ $4,000,000 RO Concentrate Treatment 0.0 MGD 1,510,000$ $0 Advanced Oxidation and Disinfection 2.5 MGD 470,000$ $1,200,000 Free Chlorine 0.0 MGD 271,000$ $0 Chemicals (Storage and Use) 2.5 MGD 134,000$ $340,000 Sitework/Piping/Structures 2.5 MGD 3,427,000$ $8,600,000 Conveyance High-Density Urban Pipeline, HDPE 6 Inch 0 LF 186$ $0 8 Inch 2,000 LF 200$ $400,023 10 Inch 1,500 LF 212$ $318,028 12 Inch 5,000 LF 254$ $1,271,550 16 Inch 20,500 LF 277$ $5,679,935 18 Inch 0 LF 290$ $0 20 Inch 0 LF 334$ $0 24 Inch 0 LF 381$ $0 30 Inch 0 LF 462$ $0 Repurposing Pipe 6 Inch 0 LF 55$ $0 8 Inch 0 LF 66$ $0 Sheeting and Shoring (Open Cut)3% of Open Cut Pipeline Cost 3% $230,086 Microtunneling Tunnel and Casing (36")0 LF 1,728$ $0 Jacking Shaft 0 EA 300,000$ $0 Receiving Shaft 0 EA 150,000$ $0 Horizontal Directional Drilling 24 Inch Bore Diameter 0 LF 528$ $0 PTGAB 6 Inch 0 LF 375$ $0 8 Inch 0 LF 500$ $0 10 Inch 0 LF 625$ $0 12 Inch 0 LF 750$ $0 16 Inch 458 LF 1,000$ $458,096 20 Inch 0 LF 1,250$ $0 Jacking Shafts 1 EA 258,000$ $258,000 Receiving Shafts 1 EA 148,000$ $148,000 Pipe Bridge Pipe Bridge Support 0 LF 5,000$ $0 Pipe Bridge Pipe 6 Inch 0 LF 66$ $0 8 Inch 0 LF 86$ $0 10 Inch 0 LF 108$ $0 12 Inch 0 LF 139$ $0 16 Inch 0 LF 175$ $0 Potholing 295 EA 500$ $147,290 Cathodic Protection 3% of Pipeline Installation Cost 3% $250,732 Customer Services (no meter replacement) 0 EA 10,000$ $0 Customer Services (with meter replacement) 0 EA 15,000$ $0 Planter Box (Housing Pipe on Bridge Sidewalk) 0 CY 2,000$ $0 Planter Box (Installation Labor)0 Day 4,000$ $0 Pump Stations Pump Station #1 300 6,433$ $1,929,951 Pump Station #2 0 -$ $0 Pump Station #3 0 -$ $0 Pump Station #4 0 -$ $0 Pump Station #5 0 -$ $0 Phase 3 RWQCP Pump Station Improvements 0 LS 1,389,000$ $0 Phase 3 Booster Pump Station 0 LS 918,000$ $0 Hydropneumatic Tank - Pump Station #1 0 Gal -$ $0 Hydropneumatic Tank - Pump Station #2 0 Gal -$ $0 Hydropneumatic Tank - Pump Station #3 0 Gal -$ $0 Hydropneumatic Tank - Pump Station #4 0 Gal -$ $0 Hydropneumatic Tank - Pump Station #5 0 Gal -$ $0 Storage Tank Storage Tank 0.0 1,500,000$ $0 Underground Construction 0.0 LS 1,000,000$ Injection Well 5 EA 1,000,000$ $5,000,000 Extraction Wellhead Treatment Hale 0 AFY 2,937$ $0 Rinconada 0 AFY 2,937$ $0 Peers 0 AFY 3,353$ $0 El Camino 0 AFY 4,538$ $0 Eleanor 0 AFY 4,538$ $0 Library 0 AFY 4,538$ $0 Mountain View Feasibility Study Long-Term Recommended Phase 0 LS 3,326,000$ $0 Subtotal $38,226,000 Sales Tax 9%$1,509,000 Construction Cost Subtotal $39,735,000 Market Adjustment Factor 10%$3,974,000 Construction Contingency 40%$15,894,000 Construction Cost Total $59,700,000 Engineering and Admin Services (Design)15%$5,960,000 Construction Management 10% $3,974,000 Engineering Services During Construction 3%$1,192,000 Property Acquisition (Property Only)20,000 SQ FT 500$ $10,000,000 Property Acquisition (House on Property)0 SQ FT 1,000$ $0 Rinconada Land Cost 1 LS 4,500,000$ $4,500,000 Peers Land Cost 1 LS 7,000,000$ $7,000,000 On-Time Fee 0 LS 75,000$ Total Capital Cost $92,200,000 Total installed HP, including standby MG Applied to half of capital costs (not including General) Total installed HP, including standby Total installed HP, including standby Total installed HP, including standby Total installed HP, including standby Concept Option: C1 Page 15 of 22 C1 Palo Alto Recycled Water Feasibility Study Last Updated:4-Feb-19 Discount Rate Project Life Updated by: K. Howes 3%30 Years CCI (SF, June 2018): 12014.72 Item Size Qty Unit Unit Cost Total Cost O&M Costs (Annual) Advanced Water Treatment MBR 0 MGD 560,000$ $0 Ozone 0 MGD 93,000$ $0 BAC 0 MGD 131,000$ $0 MF/UF system 3 MGD 342,000$ $860,000 RO System 3 MGD 574,000$ $1,400,000 RO Concentrate Treatment 0 MGD 226,000$ $0 Advanced Oxidation and Disinfection 3 MGD 73,000$ $180,000 Free Chlorine 0 MGD 32,000$ $0 Chemicals 3 MGD 121,000$ $300,000 Labor for Treatment (no MBR)3 1,040 hrs/MGD 100$ $260,000 Labor for MBR 0 1,040 hrs/year 100$ $0 Monitoring 0 $/year 1,000,000$ $0 Conveyance LF $0.78 $23,320 Pump Stations Consumables Equipment 1% $19,300 Mechanical 1% $19,300 Electrical/Instrumentation 1% $19,300 Electricity Requirement Energy Charge 342,958 kWh/year 0.15$ $51,444 Labor Costs Total No. Operators 1 No. Average Annual Operator Hours per Year 520 Hours Total Operator Hours per Year 520 Hours 99.81$ $51,903 Phase 3 RWQCP Pump Station Improvements 0 LS 96,000$ $0 Phase 3 Booster Pump Station 0 LS 81,000$ $0 Storage Tanks Annual O&M 1% $0 Injection Wells Annual O&M 5 EA 15,000$ $75,000 Extraction Wells Groundwater Pumping Charge 5,900 AFY 1,960$ $11,564,000 Hale Extraction Well/Wellhead Treatment 0 AFY 265$ $0 Rinconada Extraction Well/Wellhead Treatment 0 AFY 263$ $0 Peers Extraction Well/Wellhead Treatment 0 AFY 224$ $0 El Camino Extraction Well/Wellhead Treatment 0 AFY 256$ $0 Eleanor Extraction Well/Wellhead Treatment 0 AFY 256$ $0 Library Extraction Well/Wellhead Treatment 0 AFY 242$ $0 Mountain View Feasibility Study Long-Term Recommended Phase 0 LS 100,000$ $0 Total O&M Costs ($/yr)$14,820,000 Annualized Costs ($ / Year) Annualized Capital Costs ($/Year)One payment per year, spread over Project Life $4,704,000 Annual O&M Costs $14,820,000 Total Annualized Cost $19,524,000 Deliveries of Recycled Water Estimated Unit Cost ($/AF)$3,300 Annual Inspection and Maintenance of Pipeline - Average Annual Operator Hours per 5,900 AFY Concept Option: C1 Page 16 of 22 C2 Palo Alto Recycled Water Feasibility Study Last Updated:4-Feb-19 Discount Rate Project Life Updated by: K. Howes 3%30 Years CCI (SF, June 2018): 12014.72 Item Size Qty Unit Unit Cost Total Cost Capital Costs General Requirements Mobilization Applied to all capital costs 10% $4,213,006 Traffic Control Applied to all capital costs 4% $1,685,202 Treatment MBR 0.0 MGD 17,200,000$ $0 Ozone 0.0 MGD 360,000$ $0 BAC 0.0 MGD 323,000$ $0 MF/UF system 2.8 MGD 1,317,000$ $3,700,000 RO System 2.8 MGD 1,586,000$ $4,400,000 RO Concentrate Treatment 0.9 MGD 1,510,000$ $1,400,000 Advanced Oxidation and Disinfection 2.8 MGD 470,000$ $1,300,000 Free Chlorine 0.0 MGD 271,000$ $0 Chemicals (Storage and Use) 2.8 MGD 134,000$ $370,000 Sitework/Piping/Structures 2.8 MGD 3,427,000$ $9,600,000 Conveyance High-Density Urban Pipeline, HDPE 6 Inch 0 LF 186$ $0 8 Inch 11,000 LF 200$ $2,200,124 10 Inch 5,500 LF 212$ $1,166,103 12 Inch 3,000 LF 254$ $762,930 16 Inch 2,500 LF 277$ $692,675 18 Inch 0 LF 290$ $0 20 Inch 18,500 LF 334$ $6,175,485 24 Inch 0 LF 381$ $0 30 Inch 0 LF 462$ $0 Repurposing Pipe 6 Inch 0 LF 55$ $0 8 Inch 0 LF 66$ $0 Sheeting and Shoring (Open Cut)3% of Open Cut Pipeline Cost 3% $329,920 Microtunneling Tunnel and Casing (36")0 LF 1,728$ $0 Jacking Shaft 0 EA 300,000$ $0 Receiving Shaft 0 EA 150,000$ $0 Horizontal Directional Drilling 24 Inch Bore Diameter 0 LF 528$ $0 PTGAB 6 Inch 0 LF 375$ $0 8 Inch 160 LF 500$ $80,017 10 Inch 0 LF 625$ $0 12 Inch 0 LF 750$ $0 16 Inch 0 LF 1,000$ $0 20 Inch 619 LF 1,250$ $773,912 Jacking Shafts 3 EA 258,000$ $774,000 Receiving Shafts 3 EA 148,000$ $444,000 Pipe Bridge Pipe Bridge Support 19 LF 5,000$ $95,000 Pipe Bridge Pipe 6 Inch 170 LF 66$ $11,143 8 Inch 0 LF 86$ $0 10 Inch 0 LF 108$ $0 12 Inch 0 LF 139$ $0 16 Inch 0 LF 175$ $0 Potholing 414 EA 500$ $207,245 Cathodic Protection 3% of Pipeline Installation Cost 3% $342,552 Customer Services (no meter replacement) 0 EA 10,000$ $0 Customer Services (with meter replacement) 25 EA 15,000$ $375,000 Planter Box (Housing Pipe on Bridge Sidewalk) 0 CY 2,000$ $0 Planter Box (Installation Labor)0 Day 4,000$ $0 Pump Stations Pump Station #1 300 6,433$ $1,929,951 Pump Station #2 0 -$ $0 Pump Station #3 0 -$ $0 Pump Station #4 0 -$ $0 Pump Station #5 0 -$ $0 Phase 3 RWQCP Pump Station Improvements 0 LS 1,389,000$ $0 Phase 3 Booster Pump Station 0 LS 918,000$ $0 Hydropneumatic Tank - Pump Station #1 0 Gal -$ $0 Hydropneumatic Tank - Pump Station #2 0 Gal -$ $0 Hydropneumatic Tank - Pump Station #3 0 Gal -$ $0 Hydropneumatic Tank - Pump Station #4 0 Gal -$ $0 Hydropneumatic Tank - Pump Station #5 0 Gal -$ $0 Storage Tank Storage Tank 0.0 1,500,000$ $0 Underground Construction 0.0 LS 1,000,000$ Injection Well 5 EA 1,000,000$ $5,000,000 Extraction Wellhead Treatment Hale 983 AFY 2,937$ $2,887,865 Rinconada 983 AFY 2,937$ $2,887,865 Peers 983 AFY 3,353$ $3,296,834 El Camino 983 AFY 4,538$ $4,462,774 Eleanor 983 AFY 4,538$ $4,462,774 Library 983 AFY 4,538$ $4,462,774 Mountain View Feasibility Study Long-Term Recommended Phase 0 LS 3,326,000$ $0 Subtotal $70,489,000 Sales Tax 9%$2,907,000 Construction Cost Subtotal $73,396,000 Market Adjustment Factor 10%$7,340,000 Construction Contingency 40%$29,358,000 Construction Cost Total $110,100,000 Engineering and Admin Services (Design)15%$11,009,000 Construction Management 10% $7,340,000 Engineering Services During Construction 3%$2,202,000 Property Acquisition (Property Only)20,000 SQ FT 500$ $10,000,000 Property Acquisition (House on Property)0 SQ FT 1,000$ $0 Rinconada Land Cost 1 LS 4,500,000$ $4,500,000 Peers Land Cost 1 LS 7,000,000$ $7,000,000 On-Time Fee 0 LS 75,000$ Total Capital Cost $152,100,000 Total installed HP, including standby MG Applied to half of capital costs (not including General) Total installed HP, including standby Total installed HP, including standby Total installed HP, including standby Total installed HP, including standby Concept Option: C2 Page 17 of 22 C2 Palo Alto Recycled Water Feasibility Study Last Updated:4-Feb-19 Discount Rate Project Life Updated by: K. Howes 3%30 Years CCI (SF, June 2018): 12014.72 Item Size Qty Unit Unit Cost Total Cost O&M Costs (Annual) Advanced Water Treatment MBR 0 MGD 560,000$ $0 Ozone 0 MGD 93,000$ $0 BAC 0 MGD 131,000$ $0 MF/UF system 3 MGD 342,000$ $950,000 RO System 3 MGD 574,000$ $1,600,000 RO Concentrate Treatment 1 MGD 226,000$ $210,000 Advanced Oxidation and Disinfection 3 MGD 73,000$ $200,000 Free Chlorine 0 MGD 32,000$ $0 Chemicals 3 MGD 121,000$ $340,000 Labor for Treatment (no MBR)3 1,040 hrs/MGD 100$ $290,000 Labor for MBR 0 1,040 hrs/year 100$ $0 Monitoring 0 $/year 1,000,000$ $0 Conveyance LF $0.78 $32,816 Pump Stations Consumables Equipment 1% $19,300 Mechanical 1% $19,300 Electrical/Instrumentation 1% $19,300 Electricity Requirement Energy Charge 453,458 kWh/year 0.15$ $68,019 Labor Costs Total No. Operators 1 No. Average Annual Operator Hours per Year 520 Hours Total Operator Hours per Year 520 Hours 99.81$ $51,903 Phase 3 RWQCP Pump Station Improvements 0 LS 96,000$ $0 Phase 3 Booster Pump Station 0 LS 81,000$ $0 Storage Tanks Annual O&M 1% $0 Injection Wells Annual O&M 5 EA 15,000$ $75,000 Extraction Wells Groundwater Pumping Charge 5,900 AFY 1,960$ $11,564,000 Hale Extraction Well/Wellhead Treatment 983 AFY 265$ $260,797 Rinconada Extraction Well/Wellhead Treatment 983 AFY 263$ $258,689 Peers Extraction Well/Wellhead Treatment 983 AFY 224$ $220,625 El Camino Extraction Well/Wellhead Treatment 983 AFY 256$ $251,497 Eleanor Extraction Well/Wellhead Treatment 983 AFY 256$ $251,783 Library Extraction Well/Wellhead Treatment 983 AFY 242$ $238,429 Mountain View Feasibility Study Long-Term Recommended Phase 0 LS 100,000$ $0 Total O&M Costs ($/yr)$16,920,000 Annualized Costs ($ / Year) Annualized Capital Costs ($/Year)One payment per year, spread over Project Life $7,760,000 Annual O&M Costs $16,920,000 Total Annualized Cost $24,680,000 Deliveries of Recycled Water Estimated Unit Cost ($/AF)$4,000 Annual Inspection and Maintenance of Pipeline - Average Annual Operator Hours per 6,100 AFY Concept Option: C2 Page 18 of 22 C3 Palo Alto Recycled Water Feasibility Study Last Updated:4-Feb-19 Discount Rate Project Life Updated by: K. Howes 3%30 Years CCI (SF, June 2018): 12014.72 Item Size Qty Unit Unit Cost Total Cost Capital Costs General Requirements Mobilization Applied to all capital costs 10% $6,472,618 Traffic Control Applied to all capital costs 4% $2,589,047 Treatment MBR 0.0 MGD 17,200,000$ $0 Ozone 0.0 MGD 360,000$ $0 BAC 0.0 MGD 323,000$ $0 MF/UF system 3.3 MGD 1,317,000$ $4,400,000 RO System 3.3 MGD 1,586,000$ $5,300,000 RO Concentrate Treatment 1.0 MGD 1,510,000$ $1,500,000 Advanced Oxidation and Disinfection 3.3 MGD 470,000$ $1,600,000 Free Chlorine 0.0 MGD 271,000$ $0 Chemicals (Storage and Use) 3.3 MGD 134,000$ $440,000 Sitework/Piping/Structures 3.3 MGD 3,427,000$ $11,000,000 Conveyance High-Density Urban Pipeline, HDPE 6 Inch 0 LF 186$ $0 8 Inch 19,994 LF 200$ $3,999,025 10 Inch 12,529 LF 212$ $2,656,383 12 Inch 9,873 LF 254$ $2,510,803 16 Inch 47,801 LF 277$ $13,244,223 18 Inch 0 LF 290$ $0 20 Inch 0 LF 334$ $0 24 Inch 0 LF 381$ $0 30 Inch 0 LF 462$ $0 Repurposing Pipe 6 Inch 0 LF 55$ $0 8 Inch 0 LF 66$ $0 Sheeting and Shoring (Open Cut)3% of Open Cut Pipeline Cost 3% $672,313 Microtunneling Tunnel and Casing (36")800 LF 1,728$ $1,382,400 Jacking Shaft 3 EA 300,000$ $900,000 Receiving Shaft 3 EA 150,000$ $450,000 Horizontal Directional Drilling 24 Inch Bore Diameter 350 LF 528$ $184,800 PTGAB 6 Inch 0 LF 375$ $0 8 Inch 0 LF 500$ $0 10 Inch 0 LF 625$ $0 12 Inch 0 LF 750$ $0 16 Inch 160 LF 1,000$ $160,033 20 Inch 0 LF 1,250$ $0 Jacking Shafts 1 EA 258,000$ $258,000 Receiving Shafts 1 EA 148,000$ $148,000 Pipe Bridge Pipe Bridge Support 8 LF 5,000$ $40,000 Pipe Bridge Pipe 6 Inch 0 LF 66$ $0 8 Inch 0 LF 86$ $0 10 Inch 0 LF 108$ $0 12 Inch 0 LF 139$ $0 16 Inch 65 LF 175$ $11,387 Potholing 916 EA 500$ $457,860 Cathodic Protection 3% of Pipeline Installation Cost 3% $785,141 Customer Services (no meter replacement) 62 EA 10,000$ $620,000 Customer Services (with meter replacement) 142 EA 15,000$ $2,130,000 Planter Box (Housing Pipe on Bridge Sidewalk) 6 CY 2,000$ $12,000 Planter Box (Installation Labor)8 Day 4,000$ $32,000 Pump Stations Pump Station #1 400 5,800$ $2,320,102 Pump Station #2 0 -$ $0 Pump Station #3 0 -$ $0 Pump Station #4 0 -$ $0 Pump Station #5 0 -$ $0 Phase 3 RWQCP Pump Station Improvements 1 LS 1,389,000$ $1,389,000 Phase 3 Booster Pump Station 1 LS 918,000$ $918,000 Hydropneumatic Tank - Pump Station #1 5,800 Gal 35$ $204,714 Hydropneumatic Tank - Pump Station #2 0 Gal -$ $0 Hydropneumatic Tank - Pump Station #3 0 Gal -$ $0 Hydropneumatic Tank - Pump Station #4 0 Gal -$ $0 Hydropneumatic Tank - Pump Station #5 0 Gal -$ $0 Storage Tank Storage Tank 0.0 1,500,000$ $0 Underground Construction 0.0 LS 1,000,000$ Injection Well 5 EA 1,000,000$ $5,000,000 Extraction Wellhead Treatment Hale 833 AFY 2,937$ $2,447,343 Rinconada 833 AFY 2,937$ $2,447,343 Peers 833 AFY 3,353$ $2,793,927 El Camino 833 AFY 4,538$ $3,782,012 Eleanor 833 AFY 4,538$ $3,782,012 Library 833 AFY 4,538$ $3,782,012 Mountain View Feasibility Study Long-Term Recommended Phase 0 LS 3,326,000$ $0 Subtotal $92,822,000 Sales Tax 9%$3,769,000 Construction Cost Subtotal $96,591,000 Market Adjustment Factor 10%$9,659,000 Construction Contingency 40%$38,636,000 Construction Cost Total $144,900,000 Engineering and Admin Services (Design)15%$14,489,000 Construction Management 10% $9,659,000 Engineering Services During Construction 3%$2,898,000 Property Acquisition (Property Only)30,000 SQ FT 500$ $15,000,000 Property Acquisition (House on Property)0 SQ FT 1,000$ $0 Rinconada Land Cost 1 LS 4,500,000$ $4,500,000 Peers Land Cost 1 LS 7,000,000$ $7,000,000 On-Time Fee 0 LS 75,000$ Total Capital Cost $198,400,000 Total installed HP, including standby MG Applied to half of capital costs (not including General) Total installed HP, including standby Total installed HP, including standby Total installed HP, including standby Total installed HP, including standby Concept Option: C3 Page 19 of 22 C3 Palo Alto Recycled Water Feasibility Study Last Updated:4-Feb-19 Discount Rate Project Life Updated by: K. Howes 3%30 Years CCI (SF, June 2018): 12014.72 Item Size Qty Unit Unit Cost Total Cost O&M Costs (Annual) Advanced Water Treatment MBR 0 MGD 560,000$ $0 Ozone 0 MGD 93,000$ $0 BAC 0 MGD 131,000$ $0 MF/UF system 3 MGD 342,000$ $1,100,000 RO System 3 MGD 574,000$ $1,900,000 RO Concentrate Treatment 1 MGD 226,000$ $220,000 Advanced Oxidation and Disinfection 3 MGD 73,000$ $240,000 Free Chlorine 0 MGD 32,000$ $0 Chemicals 3 MGD 121,000$ $400,000 Labor for Treatment (no MBR)3 1,040 hrs/MGD 100$ $350,000 Labor for MBR 0 1,040 hrs/year 100$ $0 Monitoring 0 $/year 1,000,000$ $0 Conveyance LF $0.78 $71,588 Pump Stations Consumables Equipment 1% $23,201 Mechanical 1% $23,201 Electrical/Instrumentation 1% $23,201 Electricity Requirement Energy Charge 466,792 kWh/year 0.15$ $70,019 Labor Costs Total No. Operators 1 No. Average Annual Operator Hours per Year 520 Hours Total Operator Hours per Year 520 Hours 99.81$ $51,903 Phase 3 RWQCP Pump Station Improvements 1 LS 96,000$ $96,000 Phase 3 Booster Pump Station 1 LS 81,000$ $81,000 Storage Tanks Annual O&M 1% $0 Injection Wells Annual O&M 5 EA 15,000$ $75,000 Extraction Wells Groundwater Pumping Charge 5,000 AFY 1,960$ $9,800,000 Hale Extraction Well/Wellhead Treatment 833 AFY 265$ $221,014 Rinconada Extraction Well/Wellhead Treatment 833 AFY 263$ $219,228 Peers Extraction Well/Wellhead Treatment 833 AFY 224$ $186,970 El Camino Extraction Well/Wellhead Treatment 833 AFY 256$ $213,133 Eleanor Extraction Well/Wellhead Treatment 833 AFY 256$ $213,376 Library Extraction Well/Wellhead Treatment 833 AFY 242$ $202,059 Mountain View Feasibility Study Long-Term Recommended Phase 0 LS 100,000$ $0 Total O&M Costs ($/yr)$15,780,000 Annualized Costs ($ / Year) Annualized Capital Costs ($/Year)One payment per year, spread over Project Life $10,122,000 Annual O&M Costs $15,780,000 Total Annualized Cost $25,902,000 Deliveries of Recycled Water Estimated Unit Cost ($/AF)$4,400 Annual Inspection and Maintenance of Pipeline - Average Annual Operator Hours per 5,900 AFY Concept Option: C3 Page 20 of 22 D1 Palo Alto Recycled Water Feasibility Study Last Updated:4-Feb-19 Discount Rate Project Life Updated by: K. Howes 3%30 Years CCI (SF, June 2018): 12014.72 Item Size Qty Unit Unit Cost Total Cost Capital Costs General Requirements Mobilization Applied to all capital costs 10% $3,772,451 Traffic Control Applied to all capital costs 4% $1,508,980 Treatment MBR 0.0 MGD 17,200,000$ $0 Ozone 4.7 MGD 360,000$ $1,700,000 BAC 4.7 MGD 323,000$ $1,500,000 MF/UF system 4.7 MGD 1,317,000$ $6,200,000 RO System 4.7 MGD 1,586,000$ $7,500,000 RO Concentrate Treatment 1.2 MGD 1,510,000$ $1,900,000 Advanced Oxidation and Disinfection 4.7 MGD 470,000$ $2,200,000 Free Chlorine 4.7 MGD 271,000$ $1,300,000 Chemicals (Storage and Use) 0.0 MGD 134,000$ $0 Sitework/Piping/Structures 0.0 MGD 3,427,000$ $0 Conveyance High-Density Urban Pipeline, HDPE 6 Inch 0 LF 186$ $0 8 Inch 0 LF 200$ $0 10 Inch 0 LF 212$ $0 12 Inch 5,000 LF 254$ $1,271,550 16 Inch 0 LF 277$ $0 18 Inch 0 LF 290$ $0 20 Inch 500 LF 334$ $166,905 24 Inch 1,400 LF 381$ $533,568 30 Inch 2,600 LF 462$ $1,202,422 Repurposing Pipe 6 Inch 0 LF 55$ $0 8 Inch 0 LF 66$ $0 Sheeting and Shoring (Open Cut)3% of Open Cut Pipeline Cost 3% $59,161 Microtunneling Tunnel and Casing (36")0 LF 1,728$ $0 Jacking Shaft 0 EA 300,000$ $0 Receiving Shaft 0 EA 150,000$ $0 Horizontal Directional Drilling 24 Inch Bore Diameter 0 LF 528$ $0 PTGAB 6 Inch 0 LF 375$ $0 8 Inch 0 LF 500$ $0 10 Inch 0 LF 625$ $0 12 Inch 0 LF 750$ $0 16 Inch 0 LF 1,000$ $0 20 Inch 1,200 LF 1,250$ $1,500,313 Jacking Shafts 1 EA 258,000$ $258,000 Receiving Shafts 1 EA 148,000$ $148,000 Pipe Bridge Pipe Bridge Support 0 LF 5,000$ $0 Pipe Bridge Pipe 6 Inch 0 LF 66$ $0 8 Inch 0 LF 86$ $0 10 Inch 0 LF 108$ $0 12 Inch 0 LF 139$ $0 16 Inch 0 LF 175$ $0 Potholing 107 EA 500$ $53,500 Cathodic Protection 3% of Pipeline Installation Cost 3% $97,008 Customer Services (no meter replacement) 0 EA 10,000$ $0 Customer Services (with meter replacement) 0 EA 15,000$ $0 Planter Box (Housing Pipe on Bridge Sidewalk) 0 CY 2,000$ $0 Planter Box (Installation Labor)0 Day 4,000$ $0 Pump Stations Pump Station #1 60 11,483$ $688,978 Pump Station #2 400 5,800$ $2,320,102 Pump Station #3 0 -$ $0 Pump Station #4 0 -$ $0 Pump Station #5 0 -$ $0 Phase 3 RWQCP Pump Station Improvements 0 LS 1,389,000$ $0 Phase 3 Booster Pump Station 0 LS 918,000$ $0 Hydropneumatic Tank - Pump Station #1 0 Gal -$ $0 Hydropneumatic Tank - Pump Station #2 0 Gal -$ $0 Hydropneumatic Tank - Pump Station #3 0 Gal -$ $0 Hydropneumatic Tank - Pump Station #4 0 Gal -$ $0 Hydropneumatic Tank - Pump Station #5 0 Gal -$ $0 Storage Tank Storage Tank 4.8 1,500,000$ $7,125,000 Underground Construction 1.0 LS 1,000,000$ Injection Well 0 EA 1,000,000$ $0 Extraction Wellhead Treatment Hale 0 AFY 2,937$ $0 Rinconada 0 AFY 2,937$ $0 Peers 0 AFY 3,353$ $0 El Camino 0 AFY 4,538$ $0 Eleanor 0 AFY 4,538$ $0 Library 0 AFY 4,538$ $0 Mountain View Feasibility Study Long-Term Recommended Phase 0 LS 3,326,000$ $0 Subtotal $43,006,000 Sales Tax 9%$1,698,000 Construction Cost Subtotal $44,704,000 Market Adjustment Factor 10%$4,470,000 Construction Contingency 40%$17,882,000 Construction Cost Total $67,100,000 Engineering and Admin Services (Design)15%$6,706,000 Construction Management 10% $4,470,000 Engineering Services During Construction 3%$1,341,000 Property Acquisition (Property Only)50,000 SQ FT 500$ $25,000,000 Property Acquisition (House on Property)0 SQ FT 1,000$ $0 Rinconada Land Cost 0 LS 4,500,000$ $0 Peers Land Cost 0 LS 7,000,000$ $0 On-Time Fee 1 LS 75,000$ Total Capital Cost $104,600,000 Total installed HP, including standby MG Applied to half of capital costs (not including General) Total installed HP, including standby Total installed HP, including standby Total installed HP, including standby Total installed HP, including standby Concept Option: D1 Page 21 of 22 D1 Palo Alto Recycled Water Feasibility Study Last Updated:4-Feb-19 Discount Rate Project Life Updated by: K. Howes 3%30 Years CCI (SF, June 2018): 12014.72 Item Size Qty Unit Unit Cost Total Cost O&M Costs (Annual) Advanced Water Treatment MBR 0 MGD 560,000$ $0 Ozone 5 MGD 93,000$ $440,000 BAC 5 MGD 131,000$ $620,000 MF/UF system 5 MGD 342,000$ $1,600,000 RO System 5 MGD 574,000$ $2,700,000 RO Concentrate Treatment 1 MGD 226,000$ $280,000 Advanced Oxidation and Disinfection 5 MGD 73,000$ $350,000 Free Chlorine 5 MGD 32,000$ $150,000 Chemicals 0 MGD 121,000$ $0 Labor for Treatment (no MBR)5 1,040 hrs/MGD 100$ $490,000 Labor for MBR 0 1,040 hrs/year 100$ $0 Monitoring 1 $/year 1,000,000$ $1,000,000 Conveyance LF $0.78 $6,434 Pump Stations Consumables Equipment 1% $30,091 Mechanical 1% $30,091 Electrical/Instrumentation 1% $30,091 Electricity Requirement Energy Charge 718,547 kWh/year 0.15$ $107,782 Labor Costs Total No. Operators 2 No. Average Annual Operator Hours per Year 520 Hours Total Operator Hours per Year 1,040 Hours 99.81$ $103,805 Phase 3 RWQCP Pump Station Improvements 0 LS 96,000$ $0 Phase 3 Booster Pump Station 0 LS 81,000$ $0 Storage Tanks Annual O&M 1% $71,250 Injection Wells Annual O&M 0 EA 15,000$ $0 Extraction Wells Groundwater Pumping Charge 0 AFY 1,960$ $0 Hale Extraction Well/Wellhead Treatment 0 AFY 265$ $0 Rinconada Extraction Well/Wellhead Treatment 0 AFY 263$ $0 Peers Extraction Well/Wellhead Treatment 0 AFY 224$ $0 El Camino Extraction Well/Wellhead Treatment 0 AFY 256$ $0 Eleanor Extraction Well/Wellhead Treatment 0 AFY 256$ $0 Library Extraction Well/Wellhead Treatment 0 AFY 242$ $0 Mountain View Feasibility Study Long-Term Recommended Phase 0 LS 100,000$ $0 Total O&M Costs ($/yr)$8,010,000 Annualized Costs ($ / Year) Annualized Capital Costs ($/Year)One payment per year, spread over Project Life $5,337,000 Annual O&M Costs $8,010,000 Total Annualized Cost $13,347,000 Deliveries of Recycled Water Estimated Unit Cost ($/AF)$2,500 Annual Inspection and Maintenance of Pipeline - Average Annual Operator Hours per 5,300 AFY Concept Option: D1 Page 22 of 22 Appendix E - Concept Option Variations [Confidential – Not Included] Appendix F - Cost Per Unit of Water Analyses for Palo Alto, Cal Water, Purissima Hills Water District and East Palo Alto [Confidential – Not Included] Appendix G - Funding Matrix Page 1 of 4 Summary of Potential Recycled Water Funding Opportunities – Updated March 13, 2019 Program Administering Agency Funding Type CEQA/ NEPA Required? Program Purpose Eligible Uses Eligibility Requirements Due Date & Future Rounds Funding Amounts & Terms Cost Share Priority Determination / Critical Factors Title XVI Water Reuse & Reclamation Grant Program - Construction U.S. Bureau of Reclamation (Reclamation) Grant CEQA and NEPA Construction of water recycling treatment and conveyance facilities. Planning, design, construction (can include prior costs) A Title XVI Feasibility Study must be submitted to Reclamation for review and approval prior to submitting a construction application. Project must receive congressional authorization in order to receive construction grant funding. Most recent round was due in Summer 2018. Next round anticipated spring 2019 The total amount of available funds varies each year. The 2018 FOA included $34M for Title XVI. Historically, there has been a max of ~$4M per applicant, though the new administration has favored funding fewer projects with larger awards per project. Maximum grant award of 25% of the total project costs or $20 million, whichever is less. Grant funding is provided over multiple applications submitted on an annual basis until the project is complete or the total federal cost share has been provided. Typically limited to 3 years of costs per application. 75% cost share 1 Project must receive congressional approval. Website https://www.usbr.gov/watersmart/title/index.html Water Infrastructure Improvements for the Nation (WIIN) Subset of Title XVI U.S. Bureau of Reclamation (Reclamation) Grant CEQA and NEPA Construction of water recycling treatment and conveyance facilities for projects that have a Title XVI Feasibility Study completed, but are not congressionally authorized. Similar to Title XVI: planning, design, construction (including prior costs) A Title XVI Feasibility Study must have already been submitted to Reclamation for review and approval and the project must have a Determination of Feasibility from Reclamation Reclamation appears to intend three rounds of funding – the first was in 2017, the second was in 2018, and a third to be released shortly after announcement of Round 2 awards – anticipated in spring 2019. $50M total has been allocated under WIIN. $10M released in first FOA, $20M released in second FOA, $20M anticipated for third FOA. Maximum grant award of 25% of the total project costs. Typically limited to 3 years of costs per application. 75% cost share 1 Competitive program, but will only get more competitive as additional agencies submit their Feasibility Studies. Better to get money early and keep going back. Website A specific funding website has not been developed. For reference, visit: https://www.usbr.gov/watersmart/title/index.html Page 2 of 4 Program Administering Agency Funding Type CEQA/ NEPA Required? Program Purpose Eligible Uses Eligibility Requirements Due Date & Future Rounds Funding Amounts & Terms Cost Share Priority Determination / Critical Factors Drought Response Program – Drought Resiliency Projects Reclamation Grant CEQA and NEPA Increase the reliability of water supply; improve water management; implement systems to facilitate the voluntary sale, transfer or exchange of water; and provide benefits for fish, wildlife, and the environment to mitigate impacts caused by drought. Construction, tool development to improve water management, installation of data collecting devices, improving habitat. Proposed resiliency project should improve ability of water managers to deliver water during a drought. Based on most recent FOA, project cannot be part of a congressionally authorized Title XVI Project. Must demonstrate that project is supported by an existing drought contingency plan; quantify benefits during droughts; address urgent needs and severe drought impacts. Anticipate FOA in December 2018, with applications due February 2019 $8.3M was awarded in 2018 FY2019 budget TBD Funding Group I: up to $300,000 for projects that can be completed within 2 years Funding Group II: up to $750,000 for larger projects that can be completed within 3 years 50% cost share 4 Competitiveness would be evaluated if and when another FOA is released based on project status and scoring criteria. Status of next round is unknown. Website https://www.usbr.gov/drought/ Integrated Regional Water Management (IRWM) Implementation Grant Program California Department of Water Resources (DWR) Grant CEQA Only Identify and implement projects and programs that increase regional self-reliance, reduce conflict, and manage water to concurrently achieve social, environmental, and economic objectives. Planning, design, land acquisition, legal fees, environmental documentation, environmental mitigation, construction/ implementation, construction administration Project must be included on the project list of an IRWM Region’s IRWMP. Palo Alto is within the San Francisco Bay IRWM Region and thus, the project must be in its IRWMP. Prop 1 – Round 1 is underway; local call for projects closed Nov. 16, 2018 FY20/21: Round 2 Implementation Grant Solicitation anticipated City submitted a project in Fall 2018 for Round 1; currently awaiting selection for inclusion in regional application. $58.5M for the 2 rounds of implementation funding in the SF Funding Area, which includes the entire SF Bay Area IRWM Region and a portion of the East Contra Costa IRWM Region. ($65M is allocated to SF Funding Area, $6.5M to be allocated to DAC Involvement.) $22.75M anticipated available in each round for non-DAC implementation projects 50% cost share 3 Limited funding available for competitive area. Participate in SF Bay Area IRWM process. Ultimately, up to SF Bay Area project prioritization and selection process as to which projects are included in an application Website https://water.ca.gov/Work-With-Us/Grants-And-Loans/IRWM-Grant-Programs or Bay Area IRWM Program: http://bayareairwmp.org/ Page 3 of 4 Program Administering Agency Funding Type CEQA/ NEPA Required? Program Purpose Eligible Uses Eligibility Requirements Due Date & Future Rounds Funding Amounts & Terms Cost Share Priority Determination / Critical Factors Clean Water State Revolving Fund (CWSRF) loan program State Water Resources Control Board (SWRCB) Loan CEQA+ (includes CEQA and select federal crosscutters, i.e., not full NEPA) Construction of publicly- owned facilities including wastewater treatment, local sewers, sewer interceptors, water reclamation and distribution, stormwater treatment, and combined sewers. Planning, design, construction, construction management, mitigation measures (can include prior planning/design costs). Construction costs incurred prior to executing funding agreement NOT eligible for reimbursement. Must either provide proof of submitted UWMP, proof of CUWCC MOU, or copy of Water Conservation Program for State Board approval. Letter of 2015 UWMP approval from DWR required prior to executing financing agreement. Applications are continuously accepted, though the State Board now implements a deadline of December 31 and a scoring system to be added to the Fundable List. Projects must first get on Fundable Project List before applications will be reviewed. May be as long as 2 years from application submittal to contract Typically, there is $200M-$300M available; Water recycling projects are given priority. Interest rate is ½ of the General Obligation Rate at the time of award (SRF i=1.9% for this year). Financing term up to 30 years. There is no maximum financing amount for a project / agency. 0% 2 Program is very popular. Application review can be up to 12 months, so financial forecast could change by the time an application is prepared, submitted, and reviewed. Highest scoring projects will be “corrective”, or address drinking water or Delta water quality; help implement a climate change action plan or address multiple water quality issues; and those with both a complete application and at least 90% design/specs Website https://www.waterboards.ca.gov/water_issues/programs/grants_loans/srf/ Water Recycling Funding Program (WRFP) Construction Grants SWRCB Loans & Grant CEQA+ (includes CEQA and select federal crosscutters, i.e., not full NEPA) Promote beneficial use of recycled water to augment fresh water supplies in CA by supporting water recycling projects and research. Planning, design and construction, including reasonable costs to provide emergency backup water supply for a recycled water system; pilot projects for new potable reuse (can include prior planning/design costs). Construction costs incurred prior to executing funding agreement NOT eligible for reimbursement. Apply through CWSRF program. Applications are continuously accepted, though the State Board now implements a deadline of December 31 and a scoring system to be added to the Fundable List. Projects must first get on Fundable Project List before applications will be reviewed. May be as long as 2 years from application submittal to contract Prop 1 provided $625M for planning and construction of water recycling projects; however, this funding has been exhausted. Future allocations to the WRFP are possible, though currently TBD. Project could receive $15M or 35% of project costs for construction, whichever is less. Offers 1% financing for recycled water projects through CWSF N/A 2 By applying for CWSRF, the City will automatically be applying for any available grant funding under the umbrella CWSRF program. Website https://www.waterboards.ca.gov/water_issues/programs/grants_loans/water_recycling/ Page 4 of 4 Program Administering Agency Funding Type CEQA/ NEPA Required? Program Purpose Eligible Uses Eligibility Requirements Due Date & Future Rounds Funding Amounts & Terms Cost Share Priority Determination / Critical Factors Infrastructure SRF (ISRF) Loan Program California Infrastructure and Economic Development Bank (I-Bank) Loan Application does not consist of environmental portion; however, CEQA would be required prior to construction Construction and/or repair of publicly-owned wastewater collection and treatment systems. Architectural, engineering, financial and legal services, plans, specifications, admin expenses, land acquisition, construction, machinery/equipment Project complete construction within 2 years of financing approval. Must have applied for all required permits. Applications are continuously accepted. Loans typically awarded three months after application submittal ISRF Program funding is available in amounts ranging from $50,000 to $25M, with loan terms of up to 30 years. Pre-payment of loan not allowed until Year 13 of loan N/A 5 Projects must demonstrate job creation, though this is only a small piece of the application. Loan terms not as good as other programs, and there are penalties to early repayment Website http://www.ibank.ca.gov/infrastructure-state-revolving-fund-isrf-program/ Water Infrastructure Finance and Innovation Act (WIFIA) USEPA Loan CEQA and NEPA Construction of wastewater conveyance and treatment projects, drinking water treatment and distribution projects, desalination, and water recycling projects Planning, preliminary engineering, design, environmental review, revenue forecasting, construction, land acquisition, capitalized interest Federal assistance may not exceed 80% of project costs. Letters of Interest accepted during selection periods. FY 2018 solicited letters of interest from April-July 2018. 62 Letters of Interest applied for $9.1B; 39 projects selected to apply for $5B in loans $5B was available in 2018. Minimum project size for large communities (population > 25,000) is $20M; for small communities is $5M. Interest rate greater or equal to U.S. Treasury rate of similar maturity, based on the weighted average life of the loan. Loans for 35 years or useful life of project, whichever is less. WIFIA received a 2- year $100M reauthorization at end of 2018. 51% non- WIFIA; (up to 80% of project costs can be covered by federal funds, using a combinati on of programs) 6 Non-refundable application fees of $25,000 (small communities) or $100,000 (>25,000 people). Total fees: $250K-$500K plus possibly additional fees for administration of loan. Low funding amount available. National program. Better local/state options. Website https://www.epa.gov/wifia City of Palo Alto (ID # 10959) City Council Staff Report Report Type: Consent Calendar Meeting Date: 3/2/2020 City of Palo Alto Page 1 Council Priority: Fiscal Sustainability Summary Title: FY 2020 Mid-Year Budget Report, Budget Amendments & Amend Hourly Salary Schedules Title: Review of the Fiscal Year 2020 Mid-Year Budget Status and Approve Budget Amendments in Various Funds and Amend the Salary Schedules for Services Employees International Union - Hourly (SEIU - H) and Limited Hourly (HRLY) Groups in Accordance with the City's 2020 Minimum Wage Ordinance From: City Manager Lead Department: Administrative Services Recommendation Staff recommends that the City Council: 1) Amend the Fiscal Year 2020 Budget Appropriation for various funds and various capital projects, as identified in Attachment A, Exhibits 1 through 5 (requires a super majority approval). 2) Amend the salary schedules for the Services Employees International Union–Hourly (SEIU– H) group and the Limited Hourly (HRLY) group in accordance with the City’s 2020 minimum wage ordinance and applicable bargaining terms. Executive Summary Annually, staff brings forward recommendations to adjust the annual adopted budget. Recognizing that discretionary decisions should be made through the annual budget process, the recommended Mid-Year adjustments are largely ministerial. Adjustments to the City’s budget become necessary as revenues and expenditures vary from the original budget plan. In 2016, staff and the Finance Committee altered the Mid-Year budget process and turned this report into a status update based on actual financial activities in the prior and current fiscal year and to implement previously approved City Council direction. The attached documents summarize and outline changes to the City’s Fiscal Year (FY) 2020 Adopted Budget. The budget actions recommended in this report are to address isolated instances where actuals vary from the original budgeted estimates and to implement previously approved City Council direction. City of Palo Alto Page 2 These actions require a super majority of affirmative votes for approval. Recommended budget adjustments are generally grouped into four types of transactions: − Prior City Council Direction/Clean-up actions: These technical adjustment requests adjust the current budget levels to align with anticipated year end revenue or expenditure levels and fix inadvertent errors in the adopted budget. Previous City Council Direction requests execute previous direction approved by the City Council. Typically, mid-year adjustments fall in this category. − Reimbursements and Grants: These requests adjust grants, reimbursements, and fee revenue and expenditure estimates to align with current year end projected levels as appropriate. This type of request normally has a net-zero impact. − Time-sensitive supplemental funding to reflect pending expenses: These are requests for additional funding to address critical programs or service delivery needs. These adjustments are being brought forward ahead of the annual budget process because the need either cannot or should not wait until the next fiscal year. In accordance with the City’s 2020 minimum wage ordinance and applicable bargaining terms, this report recommends adjustments to the salary schedules of two employee groups, Services Employees International Union – Hourly (SEIU – H) group and the Limited Hourly (HRLY) group. There is no change to funding levels recommended for these adjustments. Overall, with the adjustments recommended in this report, the General Fund and all other funds are on track to end this fiscal year within budgeted levels. Background This report focuses on recommended changes to the FY 2020 Adopted Budget. Where possible, budget change recommendations are brought forward for City Council consideration as part of the approval of the FY 2020 Mid-Year Budget Report to consolidate requests and streamline changes to budget appropriations. These adjustments are necessary as revenues and expenditures vary from the original budget plan due to many things including but not limited to changes in economic factors, project estimates and scope, and City Council policy and direction. The FY 2020 Midyear Budget Report reflects adjustments for prior City Council approved direction, clean-up actions based on FY 2019 actual experience or current FY 2020 actual activities, and minor corrections or revenue backed activities and as such are being brought directly to the City Council. This is consistent with the revised direction discussed in 2016 with the Finance Committee for a more streamlined mid-year report that was limited to prior Council direction and actual activity. This report is organized by fund with a primary focus on major changes in the General Fund. Mid-year changes for the Enterprise, Internal Service and Special Revenue Funds are also included in this report. All adjustments to the City’s FY 2020 Operating and Capital budgets are detailed in Attachment A and accompanying exhibits. City of Palo Alto Page 3 Discussion The following is an overview of the status for the General Fund, Enterprise Funds, and other funds including recommended budget adjustments as they pertain to the City’s FY 2020 Operating and Capital Budgets. Operating Budget Under this section of the report, proposed citywide changes to the FY 2020 Adopted Operating Budget are described for the General Fund, Enterprise Funds, Internal Service Funds, and Special Revenue Funds. General Fund Overall, the General Fund is tracking within budgeted levels after six months in the current fiscal year and is anticipated to end the year near budgeted projections. The City currently has a vacancy rate in the General Fund similar to FY 2019, which is anticipated to generate between $3 to $4 million in vacancy savings. General Fund Revenue Based on revenues received through December 31, 2019, overall, FY 2020 General Fund revenues are anticipated to reach budgeted levels by the end of FY 2020. Most revenue categories are consistent with historical trends of seasonality. Certain tax revenue categories are tracking slightly above historical levels, including sales tax, property tax, and investment earnings. Transient Occupancy Tax revenue is trending downward; this decline in hotel stays aligns with trends seen in the San Francisco and San Jose/Peninsula hotel-motel business market. Revenues will continue to be monitored throughout FY 2020 and adjustment actions will be brought forward through the year-end process to reconcile the budgeted revenue to actual collections, as appropriate. Limited adjustments are recommended in this report to align revenue estimates with FY 2019 actuals and with current trends during the first six months of the fiscal year. General Fund Expense Including Vacancy Savings Estimates General Fund expenditures are generally tracking to remain within budgeted levels through the end of the fiscal year. Savings may result by year end primarily due to vacancy savings based on staffing levels through January 2020; anticipated savings range from $3 million to $4 million. This represents less than 2.0% of the FY 2020 budget and does include the anticipated overtime expenses for the Fire Department and the Police Department, which are discussed in greater detail below. Staff will continue to monitor financial activity through the remainder of FY 2020 and actions to adjust expenses will be brought forward through the year-end process to recognize changes as appropriate. As is customary, an overtime analysis for the Fire and Police departments is attached (Attachment B). The Public Safety Departments Overtime Analysis Fiscal Years 2018 through City of Palo Alto Page 4 2020 compares the net overtime cost for the Fire and Police Departments for FY 2018, FY 2019, and the first six months of FY 2020. Net overtime costs represent the Public Safety Departments’ modified overtime budgets offset with revenue received to fund overtime along with vacancy savings that are being covered by overtime expenditures. Overtime expenditures for each department are discussed in further detail below. As of December 31, 2019, the Police Department expended $1.5 million or 81.6 percent of its annual overtime budget, which is commensurate with the $1.4 million expended or 81.5 percent of the FY 2019 Adopted overtime budget of $1.8 million during the same period in FY 2019. Vacancies in the Police Department currently for FY 2020 (approximately 26 vacancies of four months or more) are also commensurate to FY 2019 (approximately 24 vacancies of at least six months) through the same time period. During the first half of FY 2020 the Police Department had 13 personnel on workers’ compensation paid leave, which is the higher than the number of positions on workers’ compensation paid leave (five) for during the same period in FY 2019. After adjustments for the department vacancies during this time, the net overtime cost is approximately $0.4 million. As of December 31, 2019, the Fire Department expended $1.3 million or 80.0 percent of the FY 2020 Adopted overtime budget, which is less than the $1.7 million expended for the same period in FY 2019. During the first half of FY 2020 the Fire Department had seven personnel on workers’ compensation paid leave and only one vacancy, which is half the number of positions on workers’ compensation paid leave (14) and a fraction of the number of vacancies (seven) at the mid-year point of FY 2019 respectively. City-provided fire protection services to Stanford are also a factor. Beginning in FY 2019, a flat rate agreement was approved that is based on allocated costs to each fire station and the resources it uses, including estimates for overtime (CMR 9393). Because the rates are inclusive of all services including special event services, the assumptions for overtime reimbursement are not included in the net overtime calculations and will be removed from future reporting. After adjusting for vacancies being backfilled with overtime, the net overtime cost is approximately $1.2 million. Budget Stabilization Reserve The General Fund Budget Stabilization Reserve is anticipated to be at $44.5 million. This figure reflects the actual FY 2019 year-end financial reporting as outlined in CMR 10892 Discussion and Recommendation to Approve the FY 2019 Comprehensive Annual Financial Report (CAFR) and Approve Budget Amendments in Various Funds, City Council approved BAO’s approved subsequent to the budget adoption through December 31, 2019, and the recommended actions included in this report. This level is 19.3 percent of the FY 2020 Adopted Budget for General Fund expenses, which is above the City Council’s target level of 18.5 percent. The majority of the budget actions recommended in this report are to align appropriations with City of Palo Alto Page 5 current year performance or to technically correct appropriations that were inadvertently misstated or omitted in the FY 2020 Adopted Budget. In limited instances, adjustments are recommended for urgent and unanticipated needs. Recommended budget adjustments are generally grouped into four types of transactions: new requests, reimbursements and grants, previous City Council direction, and technical clean-ups. These adjustments are outlined below and detailed more in Attachment A: − Time-Sensitive new requests Fire Department Overtime: $300,000 to mitigate higher than estimated overtime expenses related to the replacement of Medic 61 with additional cross-staffing. This service delivery change was budgeted to begin in January 2020; however, there have been delays in the implementation causing the need to continue staffing Medic 61 operations which is staffed with overtime. Funding for this action is recommended to come from the Budget Operational Reserve that was established as part of the FY 2020 Adopted Budget. This action will not impact the Budget Stabilization Reserve funding level. FY 2016 Ground Emergency Medical Transport (GEMT) Audit Repayment: $232,700 to repay the State for unallowable GEMT expenses incurred in FY 2016 that were reimbursed to the City. The reimbursement methodology for GEMT was refined to only include allowable expenses in future years, this is the final payment to complete the reconciliation to allowable expenses. Outside Counsel for Airplane Noise: $90,000 for advisory legal counsel to assist the City Attorney’s Office with research, analysis, and consideration of legal options related to Federal Aviation Administration management of airspace and associated environmental review, public communication, disclosure, and engagement processes during FY 2020, as directed by the City Council. − Reimbursements and Grants: This type of request normally has a net-zero impact. SB 2 Planning Grant: $310,000 from the California Department of Housing and Community Development to implement process improvements that accelerate housing production and develop guidelines, prototypes, and resources to equip homeowners undertaking construction of Accessory Dwelling Units. Public Safety Strike Team Reimbursements: $114,000 in revenue for reimbursements that have been confirmed from the State of California, and a corresponding increase to the Fire Department’s overtime budget for deployment of public safety personnel on strike teams. City of Palo Alto Page 6 Palo Alto Art Center Foundation Grant and Donation Funding: A total of $89,616 in grant funding ($48,854) and donations ($40,762) is being recognized to fund the cost of part- time staffing at the Art Center to support programs such as the Working Together Initiative, Project Look, and Cultural Kaleidoscope. Silicon Valley Regional Interoperability Authority (SVRIA) Radio Service Fees: $44,601 in reimbursement from the Stanford University Department of Public Safety (DPS) for their portion of the SVRIA radio service fees, which the Police Department facilitates for the City and Stanford DPS. − Prior City Council Direction / Clean-ups: City Manager Employment Contract: $4.0 million to execute the updated terms of the employment agreement with the City Manager to provide up to $3 million in a City contribution and up to a $1 million loan with the employee to facilitate the purchase of a permanent residence in the corporate bounds of Palo Alto. This action was approved by the City Council on December 17, 2019 in CMR 10925. Supplemental Pension Contributions: $3.5 million for additional contributions to the City's irrevocable Section 115 Pension Trust Fund as approved by the City Council as part of the approval of the FY 2019 CAFR CMR 10892. Transfer to Capital Fund for Infrastructure Projects: $3.5 million for infrastructure improvement projects as approved by the City Council as part of the approval of the FY 2019 CAFR CMR 10892. Animal Shelter Transition to Pets in Need (PIN): $90,000 for payments to PIN for start-up costs ($50,000) and construction delay penalties ($40,000) that were approved by the City Council on November 26, 2018 in CMR 9822 but were not reappropriated from FY 2019 into FY 2020. General Liability and Workers’ Compensation Costs: $1.4 million to fund the actuarial based future costs for General Liability ($982,390) and Workers’ Compensation ($408,053) to ensure the City is appropriately funding these areas where costs are projected to increase. The need for this additional funding to be included as part of the FY 2020 Midyear Reports was discussed and reserved in the FY 2019 CAFR CMR 10892. Further explanation of these actions is provided in the Internal Service Funds section of this report. Transfer to Capital Fund for Infrastructure Projects: A projected $1.4 million decrease in Transient Occupancy Tax (TOT) revenue, that is part of the net revenue increase discussed below, will cause a decrease in the transfer to the Capital Improvement Fund. Based on previous Council direction, 3.5 percent of TOT revenue plus TOT revenue from City of Palo Alto Page 7 hotels built after 2015 has been earmarked to fund infrastructure project costs in the Capital Improvement Fund. Treasury Revenue Projections: A net $649,340 increase for various revenue categories based on trends experienced through the first half of FY 2020. These adjustments were also reported to the City Council as part of the FY 2019 CAFR CMR 10892 and the most recent Long Range Financial Forecast (LRFF) update presented to Council in February 2020 (CMR 10949). Since presentation of the CAFR and LRFF, staff has updated the tax revenue forecast and the latest projections are incorporated in the proposed midyear adjustment. Cubberley Community Center Lease Reconciliation: $153,544 will true up lease payments to the Palo Alto Unified School District (PAUSD) for the Cubberley Community Center that were underpaid in calendar year 2018. During the negotiations with PAUSD to extend the lease agreement at Cubberley beyond December 2019, this inadvertent error was found, and this action ensures the new lease agreement starts clean without any outstanding disputes or calculation variances. Equity Transfer from the Gas and Electric Funds: A net $159,000 reduction in the equity transfer from the Gas Fund (decrease of $164,000) and the Electric Fund (increase of $5,000) will reconcile the transfer amounts based on the capital assets in these funds reported in the FY 2019 CAFR as of June 30, 2019. This action is done annually to reconcile the equity transfer to the CAFR from the previous year. Other Adjustments: A transfer to the Electric Fund totaling $33,210 for tree maintenance (Canopy contract) is no longer necessary since the budget for this contract is now in the General Fund. Further discussion is below in the Electric Fund section. Enterprise Funds Similar to actions recommended in the General Fund, staff is recommending actions in the City’s other fund categories related to supplemental pension contributions and increased costs for General Liability and Worker’s Compensation. Adjustments in the Enterprise Funds for supplemental pension contributions total $1.4 million and General Liability and Worker’s Compensation adjustments total $746,000. Details of these actions by fund can be found in Attachment A, Exhibit 1 of this report. Other adjustments in these funds, not related to the general benefits adjustments above are discussed below. Electric Fund Transfers to Electric Fund: $33,210 reduction to revenues received from the General Fund for the Canopy Contract is recommended to align the budget with where actuals are charged. The Utilities Department formerly managed the Canopy Contract for tree maintenance work related to streetlights and costs were reimbursed through a transfer. City of Palo Alto Page 8 However, the contract now charges the General Fund directly, so the transfer is no longer necessary. Equity Transfer to the General Fund: As is customary, an adjustment to the Equity Transfer is recommended to align with the capital assets reported in these funds in the FY 2019 CAFR as of June 30, 2019. The transfer from the Electric Fund will increase by $5,000. Gas Fund Equity Transfer to the General Fund: As is customary, an adjustment to the Equity Transfer is recommended to align with the capital assets reported in these funds in the FY 2019 CAFR as of June 30, 2019. The transfer from the Gas Fund will decrease by $164,000. Internal Service Funds General Benefits Fund: $5.2 million for additional contributions to the City's irrevocable Section 115 Pension Trust Fund. This action was approved by the City Council as part of the FY 2019 CAFR and included an additional General Fund contribution of $3.5 million to the Pension Trust Fund (CMR 10892) that is administered by the Public Agency Retirement Services (PARS). An additional $1.7 million is recommended from other funds to maintain the current practice of aligning Enterprise, Internal Service, and Special Revenue Fund contributions with the General Fund. This would bring the total contribution to approximately $27.2 million ($17.8 million of which is from the General Fund) since the PARS Trust was established in FY 2017. Contributions to the Pension Trust Fund flow through the General Benefits Fund. Therefore, corresponding actions to transfer funding from the various funds into the General Benefits Fund are included in this report. A detailed presentation of this action is included in Attachment A, Exhibit 5. General Liability Insurance and Workers’ Compensation Adjustments: Departments citywide are charged for general liability and workers compensation based on an actuarial analysis of the City's costs and their respective utilization. In August 2019 an updated actuarial analysis estimated costs for the City's general liability and workers compensation that have been incurred but not reported (IBNR) at $5.0 million higher than budgeted; $3.0 million in the General Liability Fund and $2.0 million in the Workers’ Compensation Fund. The additional liability expense was fully recognized in the General Liability and Workers’ Compensation Funds in FY 2019. A total of $950,000 ($518,000 in the General Fund) was collected from departments as part of the FY 2019 year end process to partially adjust for this increase and ensure positive fund balance in the General Liability Fund. Actions recommended in this report, as approved by the City Council in the FY 2019 CAFR staff report, adjust for the remainder of liability to the extent necessary to maintain a positive fund balance – 1) $1.8 million ($982,000 in the City of Palo Alto Page 9 General Fund) in the General Liability Insurance Fund, and 2) $600,000 ($408,000 in the General Fund) in the Workers’ Compensation Fund. Corresponding actions to distribute these costs are included in this report and detailed in Attachment A, Exhibits 3 and 4. Property Loss and Umbrella Excess Insurance: The City’s General Liability Program provides funding to cover property and various other insurance policies for City-owned equipment and machinery. The premium cost for insurance is assessed at the beginning of the fiscal year. Due to events such as the wildfires in California, claims are higher than anticipated and premiums have increased by $50,000 for property loss insurance (from $208,000 to $258,000) and $216,000 for umbrella excess insurance (from $1.15 million to $1.36 million). Capital Improvement Program Budget Overall, most Capital Improvement projects are anticipated to remain within budgeted levels in FY 2020. Adjustments to the City’s 2020 Capital Improvement Plan for a limited number of projects are noted in Attachment A, Exhibit 2, with specific project adjustments described as well. CIP changes fall into two basic categories: 1) projects that have been delayed and can have their appropriations reduced, and 2) projects that need additional funding due to unanticipated costs that were not assumed as part of the FY 2020 Adopted Capital Budget. The program costs recommended in this report are described below and detailed in Attachment A, Exhibit 2. Capital Improvement Fund Transfer from the General Fund: $2,060,527 net increase in revenues from a General Fund transfer to the Capital Improvement Fund for infrastructure improvement projects. General Fund savings for infrastructure improvement projects were identified as part of the approval of the FY 2019 CAFR (CMR 10892) in the amount of $3.5 million. However, a projected $1,439,473 decrease in FY 2020 Transient Occupancy Tax (TOT) revenue will partially offset the increased transfer of the FY 2019 savings, resulting in a net transfer amount of $2,060,527. Electric Fund Rebuild Underground District 20 (EL-14002): $1,350,000 decrease in expenses from project timeline pushed out due to ongoing negotiations with stakeholders on a related rebuild project, limited staffing resources in the Electric Engineering and Operating Divisions, higher contract constructions costs, and competing project priorities. This project will be pushed out by two to four years. Colorado/Hopkins System Improvement (EL-15000): $518,000 decrease in expenses from project timeline being pushed out due to dependency on the completion of another project (Colorado Power Station EL-19001), limited staffing resources in the Electric Engineering and Operating Divisions, higher contract constructions costs, and City of Palo Alto Page 10 competing project priorities. This project will be pushed out by two to four years. Rebuild Underground District 26 (EL-16000): $488,042 decrease in expenses from project timeline pushed out due to limited staffing resources in the Electric Engineering and Operating Divisions, higher contract constructions costs, and competing project priorities. This project will be pushed out by two to four years Rebuild Underground District 30 (EL-19003): $356,000 decrease in expenses from project timeline pushed out due to limited staffing resources in the Electric Engineering and Operating Divisions, higher contract constructions costs, and competing project priorities. This project will be pushed out by two to four years Hopkins Substation 4/12kV Conversion (EL-20000): $100,000 decrease in expenses from project timeline pushed out due to limited staffing resources in the Electric Engineering and Operating Divisions, higher contract constructions costs, and competing project priorities. This project will be pushed out by two to four years Capacitor Bank Installation (EL-16002): $300,000 increase to complete the project by purchasing and installing additional capacitor bank equipment at the two remaining substations. The new equipment will provide the power factor necessary for the main supply point in accordance to the agreement with the Northern California Power Association (NCPA). This project is expected to be completed in FY 2021. Colorado Power Station (EL-19001): $1,000,000 increase to cover internal staff time required to complete the transformer replacement of COP-2 at the Colorado Power Station. These expense increases were the unexpected result of the transformer being damaged, which increased the project scope from refurbishment to replacement of large equipment. Wastewater Treatment Fund Advanced Water Purification Facility (WQ-19003): $8,000,000 decrease in revenues and expenses due to delays finalizing the recycled water agreement between Palo Alto, Mountain View, and Valley Water (Santa Clara Valley Water District). The timeline for negotiating getting the agreement through the approval process for all agencies involved took longer than anticipated. Construction is now anticipated to begin FY 2022. Other Notable Adjustments In accordance with the City’s 2020 minimum wage ordinance and applicable bargaining terms, staff has amended the salary schedules of two employee groups, Services Employees International Union–Hourly (SEIU–H) group and the Limited Hourly (HRLY) group. The increases will retroactively take into effect January 1st and increase pay rates for 81 employees and pay structures of 11 classifications within the SEIU–H group and 12 classifications in the HRLY group. City of Palo Alto Page 11 Details of these changes can be seen in Attachments C and D. Stakeholder Engagement The Office of Management and Budget coordinated with other City Departments and the City Manager’s Office to bring forward the changes recommended in this report. Resource Impact Approval of the attached transactions is required to amend the FY 2020 budget appropriation ordinance. With the approval of these amendments, the projected ending balance of the General Fund Budget Stabilization Reserve remains above the City Council recommended level of 18.5 percent. The projected changes to the fund balance for all other funds including Enterprise Funds, Internal Services Funds, Special Revenue Funds, and Capital Funds are outlined in Attachment A and accompanying exhibits. Policy Implications These recommendations are consistent with existing City policies. Environmental Assessment This is not a project under Section 21065 for purposes of the California Environmental Quality Act (CEQA). . Attachments: • Attachment A - FY 2020 Mid-Year Adjustments for CMR • Attachment B - Public Safety Overtime Analysis Q2 2020 • Attachment C - Amended SEIU Hourly Salary Schedule 2018-2021 • Attachment D - Amended Limited Hourly Salary Schedule 2018 - 2020 ATTACHMENT A, EXHIBIT 1 Revenues Expenses Department Adjustment Adjustment GENERAL FUND Community Services Institute of Museum & Library Services (IMLS) Grant Revenue/Art Center Part-Time Staffing This action recognizes IMLS grant revenue that is passed through the Palo Alto Art Center Foundation to the City to fund part-time intern staffing expenses for the Working Together Initiative. This will ensure that staff supporting the Art Center are City employees, minimizing risk while supporting the Art Center's programs. 48,854$ 48,854$ Community Services Palo Alto Art Center Foundation Donation Revenue/Art Center Part- Time Staffing This action recognizes revenue for the Palo Alto Art Center Foundation to fund a part-time City staff member for the Project Look and Cultural Kaleidoscope initiatives. This will ensure that staff supporting the Art Center are City employees, minimizing risk while supporting the Art Center's programs. 40,762$ 40,762$ Fire Department Overtime Adjustment This action appropriates additional funding for the Fire Department for Overtime. The FY 2020 budget included a reduction of $318,000 in Overtime Expenses associated with the replacement of Medic 61 with additional cross-staffing for six months. It was anticipated that this would begin in January 2020. However, there have been delays in the implementation of this service delivery change. The Fire Department has proactively worked to manage their overtime budget, but additional funding to increase the Overtime Budget from $1.7 million to $2.0 million is recommended for FY 2020. -$ 300,000$ Fire Department Ground Emergency Medical Transport (GEMT) Audit Repayment This action completes the repayment to the GEMT program associated with inadvertently including unallowable expenses. As a result of a GEMT audit in FY 2017, the City refined its reimbursement methodology to include only allowable expenses. The City has paid the state for unallowable expenses for all prior years, but just recently received the final audit for FY 2016. -$ 232,700$ CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2020 BUDGET 1 of 40 ATTACHMENT A, EXHIBIT 1 Revenues Expenses Department Adjustment Adjustment GENERAL FUND CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2020 BUDGET Fire Department Revenue from the State of California/Strike Team Reimbursement This cost neutral action recognizes additional revenues and corresponding Overtime expenses associated with the deployment of strike teams. To date, the Fire Department has deployed three strike teams through FY 2020, including the Kinkade fire and two pre- positioning teams. The Fire Department will return as part of the FY 2020 Year-End process if it deploys additional strike teams through the remainder of the year. 114,000$ 114,000$ Fire Department Revenue from the State of California/Quality Assurance Fee Reimbursement This cost neutral action recognizes additional revenues and expenses of $5,000 reflecting the new State Quality Assurance Fee Tax. The City is required to pay the tax to the state, but then receives reimbursement as well as an additional portion associated with federal reimbursement. The Fire Department will analyze the ongoing revenue and expense adjustments necessitated by this new tax and return for further appropriation authority as appropriate. 5,000$ 5,000$ Library Department Revenue from Other Agency/Minecraft Grant This action adjusts the $29,635 Minecraft grant that was reappropriated from FY 2019 to FY 2020. Only $17,160 in qualified expenses were needed to complete the work related to the grant, so this action will adjust anticipated revenue and expense to align with the actual reimbursable grant spending in FY 2020. (12,475)$ (12,475)$ Library Department Revenue from Other Agency/Python Foundation Robot Grant This action increases Revenue from Other Agencies by $1,600 based on receipt of a grant to offset staff time costs to code the Library's robot with python code for an educational community program. 1,600$ 1,600$ Non- Departmental Outside Counsel for Airplane Noise This action increases funding from $100,000 to $190,000 in FY 2020 for research, analysis, and consideration of legal options to advocate for the City's goals to mitigate the impacts of airplane noise on the community. Continuing work is needed to address Federal Aviation Administration management of airspace and associated environmental review, public communication, disclosure, and engagement processes. -$ 90,000$ 2 of 40 ATTACHMENT A, EXHIBIT 1 Revenues Expenses Department Adjustment Adjustment GENERAL FUND CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2020 BUDGET Planning & Development Services Revenue from the State of California/SB 2 Planning Grant This action increases grant revenues by $310,000 for a reimbursable grant from the California Department of Housing and Community Development (HDC) to implement plans and process improvements that accelerate housing production and streamline housing approvals. This funding will be used to develop guidelines, prototypes, and resources to equip homeowners undertaking construction of an Accessory Dwelling Unit (ADU) and to modify guidelines in PAMC Title 18 to align with recent housing legislation. 310,000$ 310,000$ Police Revenue from Other Agency/Silicon Valley Regional Interoperability Authority (SVRIA) Radio Service Fees This action increases the expense estimate for radio service charges incurred by the Police Department on behalf of the Stanford University Department of Public Safety (DPS). The Police Department facilitates the collection of radio service fees from associated City departments as well as Stanford DPS. A corresponding increase in revenue is recommended to recognize reimbursement received from Stanford. 44,601$ 44,601$ 3 of 40 ATTACHMENT A, EXHIBIT 1 Revenues Expenses Department Adjustment Adjustment GENERAL FUND CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2020 BUDGET TECHNICAL ADJUSTMENTS City Manager Transfer to Electric Fund for Canopy Contract This action eliminates a General Fund transfer to the Electric Fund for costs related to the Canopy contract. This contract for tree maintenance work was previously managed by the Utilities Department; however, it's now managed by the Public Works Tree Maintenance division in the General Fund, so the transfer is no longer needed. -$ (2,039)$ Community Services Animal Shelter Transition to Pets in Need This action increases the expenses for additional payments to the animal shelter non-profit operator, Pets in Need (PIN) that were not included as part of the FY 2020 Adopted Budget. The funding consists of contractually obligated 'start-up' costs ($50,000) and construction delay penalties ($40,000) incurred by the City due to unfinished construction projects at the animal shelter. -$ 90,000$ Community Services Transfer to Electric Fund for Canopy Contract This action eliminates a General Fund transfer to the Electric Fund for costs related to the Canopy contract. This contract for tree maintenance work was previously managed by the Utilities Department; however, it's now managed by the Public Works Tree Maintenance division in the General Fund, so the transfer is no longer needed. -$ (6,990)$ Non- Departmental Transient Occupancy Tax Revenue/Transfer to the Capital Improvement Fund This action recognizes adjustments to estimates for the Transient Occupancy Tax (TOT) revenue category based on trends experienced through the first half of FY 2020. This adjustment was also reported to the City Council as part of the FY 2019 Comprehensive Annual Financial Report (CAFR). A reduction to the Transfer to the Capital Improvement Fund is also recommended, due to a portion of TOT revenue previously approved by the Council as dedicated funding to be transferred for infrastructure improvement projects. (2,753,779)$ (1,439,173)$ Non- Departmental Property Tax Revenue This action recognizes adjustments to estimates for the Property Tax revenue category based on trends experienced through the first half of FY 2020. This adjustment was also reported to the City Council as part of the FY 2019 Comprehensive Annual Financial Report (CAFR). 1,942,000$ -$ 4 of 40 ATTACHMENT A, EXHIBIT 1 Revenues Expenses Department Adjustment Adjustment GENERAL FUND CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2020 BUDGET Non- Departmental Sales Tax Revenue This action recognizes adjustments to estimates for the Sales Tax revenue category based on trends experienced through the first half of FY 2020. This adjustment was also reported to the City Council as part of the FY 2019 Comprehensive Annual Financial Report (CAFR). 1,738,559$ -$ Non- Departmental Documentary Transfer Tax Revenue This action recognizes adjustments to estimates for the Documentary Transfer Tax revenue category based on trends experienced through the first half of FY 2020. This adjustment was also reported to the City Council as part of the FY 2019 Comprehensive Annual Financial Report (CAFR). (268,507)$ -$ Non- Departmental Equity Transfer from the Electric and Gas Funds This action results in a net decrease of $159,000 to the General Fund for the Equity Transfer. The net decrease of $159,000 in the Equity Transfer is the result of the amount from the Electric Fund increasing by $5,000 and the amount from the Gas Fund decreasing by $164,000 to true-up transfers in alignment with the capital assets in these funds reported in the FY 2019 Comprehensive Annual Financial Report (CAFR) as of June 30, 2019. (159,000)$ -$ Non- Departmental Utility Users Tax Revenue This action recognizes adjustments to estimates for the Utility Users Tax revenue category based on trends experienced through the first half of FY 2020. This adjustment was also reported to the City Council as part of the FY 2019 Comprehensive Annual Financial Report (CAFR). (8,933)$ -$ Non- Departmental City Manager Employment Contract This action executes the terms of the employment agreement for the City Manager providing up to $3 million in a City contribution and up to a $1 million loan with the employee to facilitate the purchase of a permanent residence in the corporate bounds of Palo Alto. This action was approved by the City Council on December 17, 2019 in CMR 10925. In the Year-End memo (CMR 10644), a reserve of $2.9 million was set aside from the sale of the previous City Manager's home, which partially offsets this action. -$ 4,000,000$ 5 of 40 ATTACHMENT A, EXHIBIT 1 Revenues Expenses Department Adjustment Adjustment GENERAL FUND CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2020 BUDGET Non- Departmental Transfer to the Capital Improvement Fund General Fund savings identified in Fiscal Year 2019 ($3.5M) will be transferred to the Capital Improvement Fund for infrastructure improvement projects as approved by the City Council as part of the FY 2019 Comprehensive Annual Financial Report (CAFR). -$ 3,500,000$ Non- Departmental Media Center Operations This action is a technical correction related to CMR 11006 that was approved by the City Council on January 27, 2020. Funding appropriated for Media Center Operations in the Technology Fund in the CMR, should've been appropriated in the General Fund. This action along with corresponding actions in the Technology Fund will allow the City to grant funding to the Media Center for operating costs and use Public Education and Government Access (PEG) funding for the City Council Chambers Upgrade project (TE-19001). -$ 511,536$ Non- Departmental Transfer to the Technology Fund This action is a technical correction related to CMR 11006 that was approved by the City Council on January 27, 2020. Reducing the annual transfer to the Technology Fund (Technology Surcharge) will allow the funding to be reallocated for Media Center Operations costs as described above. -$ (511,536)$ Non- Departmental Cubberley Community Center Lease with Palo Alto Unified School District (PAUSD) Reconciliation This action will true up lease payments to PAUSD for the Cubberley Community Center that were underpaid in calendar year 2018. During the negotiations with PAUSD to extend the lease agreement at Cubberley beyond December 2019, the City Attorney's Office recommended payment of past due lease costs to PAUSD in order to move forward in good standing with the lease extension. -$ 153,544$ Planning and Development Services Transfer to Electric Fund for Canopy Contract This action eliminates a General Fund transfer to the Electric Fund for costs related to the Canopy contract. This contract for tree maintenance work was previously managed by the Utilities Department; however, it's now managed by the Public Works Tree Maintenance division in the General Fund, so the transfer is no longer needed. -$ (7,607)$ 6 of 40 ATTACHMENT A, EXHIBIT 1 Revenues Expenses Department Adjustment Adjustment GENERAL FUND CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2020 BUDGET Public Works Transfer to Electric Fund for Canopy Contract This action eliminates a General Fund transfer to the Electric Fund for costs related to the Canopy contract. This contract for tree maintenance work was previously managed by the Utilities Department; however, it's now managed by the Public Works Tree Maintenance division in the General Fund, so the transfer is no longer needed. -$ (16,574)$ Various General Liability Insurance Adjustment This action reflects the combined impact from adjustments to allocated charge for general liability insurance as discussed in the Internal Service Fund section of this Exhibit and outlined in Attachment A, Exhibit 3. -$ 982,390$ Various Transfer to the General Benefits Fund for Supplemental Pension Contributions As approved by the City Council as part of the FY 2019 Comprehensive Annual Financial Report (CAFR), this action reflects the combined impact from adjustments to transfers for additional pension contributions as outlined in Attachment A, Exhibit 5. -$ 3,500,000$ Various Workers' Compensation Adjustment This action reflects the combined impact from adjustments to salary and benefit charges for workers' compensation as discussed in the Internal Service Fund section of this Exhibit and outlined in Attachment A, Exhibit 4. -$ 408,053$ Fund Balance Budget Operational Reserve This action decreases the Budget Operational Reserve that was established as part of the FY 2020 Adopted Budget from $1.1 million to $825,899 to fund the increase for overtime in the Fire Department. -$ (300,000)$ Fund Balance Adjustment to Fund Balance (Budget Stabilization Reserve) This action decreases the General Fund Budget Stabilization Reserve to offset the actions recommended in this report. -$ (10,993,964)$ GENERAL FUND (102 & 103) SUBTOTAL 1,042,682$ 1,042,682$ 7 of 40 ATTACHMENT A, EXHIBIT 1 Revenues Expenses Department Adjustment Adjustment GENERAL FUND CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2020 BUDGET PUBLIC SERVICES DONATION FUND (191) Police Donation Revenue /North County Gun Buyback Program This action recognizes a donation received from Mothers Against Murder to fund the Police Department's participation in Santa Clara County's North County Gun Buyback program and a corresponding increase to the expense appropriation. 2,500$ 2,500$ PUBLIC SERVICES DONATION FUND (191) SUBTOTAL 2,500$ 2,500$ 8 of 40 ATTACHMENT A, EXHIBIT 1 Revenues Expenses Department Adjustment Adjustment CAPITAL IMPROVEMENT FUNDS CAPITAL IMPROVEMENT FUND (471) Capital Transfer from the General Fund This action is a net increase to the Transfer from the General Fund. General Fund savings identified in Fiscal Year 2019 ($3.5 million) will be transferred to the Capital Improvement Fund for infrastructure improvement projects as approved by the City Council as part of the FY 2019 Comprehensive Annual Financial Report (CAFR). The transfer of savings is partially reduced by $1,439,173 due to lower estimated Transient Occupancy Tax (TOT) revenue that was dedicated funding to be used for infrastructure improvement projects. 2,060,827$ -$ Capital General Liability Insurance Adjustment This action reflects the combined impact from adjustments to allocated charge for general liability insurance as outlined in Attachment A, Exhibit 3. -$ 104,239$ Capital Workers' Compensation Adjustment This action reflects the combined impact from adjustments to salary and benefit charges for workers' compensation as outlined in Attachment A, Exhibit 4. -$ 14,058$ Fund Balance Adjustment to Fund Balance (Infrastructure Reserve) This action increases the fund balance to offset adjustments recommended in this report. -$ 1,942,530$ CAPITAL IMPROVEMENT FUND (471) SUBTOTAL 2,060,827$ 2,060,827$ CUBBERLY PROPERTY INFRASTRUCTURE FUND (472) Capital General Liability Insurance Adjustment This action reflects the combined impact from adjustments to allocated charge for general liability insurance as outlined in Attachment A, Exhibit 3. -$ 5,095$ Capital Workers' Compensation Adjustment This action reflects the combined impact from adjustments to salary and benefit charges for workers' compensation as outlined in Attachment A, Exhibit 4. -$ 657$ Fund Balance Adjustment to Fund Balance This action decreases the fund balance to offset adjustments recommended in this report. -$ (5,752)$ CUBBERLY PROPERTY INFRASTRUCTURE FUND (472) SUBTOTAL -$ -$ CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2020 BUDGET 9 of 40 ATTACHMENT A, EXHIBIT 1 Revenues Expenses Department Adjustment Adjustment ENTERPRISE FUNDS AIRPORT FUND (530) Public Works General Liability Insurance Adjustment This action reflects the combined impact from adjustments to allocated charge for general liability insurance as outlined in Attachment A, Exhibit 3. -$ 18,483$ Public Works Transfer to General Benefits Fund for Supplemental Pension Contribution As approved by the City Council as part of the FY 2019 Comprehensive Annual Financial Report (CAFR), this action reflects the combined impact from adjustments to transfers for additional pension contributions as outlined in Attachment A, Exhibit 5. -$ 21,359$ Public Works Workers' Compensation Adjustment This action reflects the combined impact from adjustments to salary and benefit charges for workers' compensation as outlined in Attachment A, Exhibit 4. -$ 2,385$ Fund Balance Adjustment to Fund Balance This action decreases the fund balance to offset adjustments recommended in this report. -$ (42,227)$ AIRPORT FUND (530) SUBTOTAL -$ -$ CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2020 BUDGET 10 of 40 ATTACHMENT A, EXHIBIT 1 Revenues Expenses Department Adjustment Adjustment ENTERPRISE FUNDS CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2020 BUDGET ELECTRIC FUND (513 & 523) Capital Capital Improvement Project Adjustments This action reflects the combined impact from adjustments to projects as outlined in Attachment A, Exhibit 2. -$ (1,512,042)$ Utilities Equity Transfer from the Electric Funds This action increases the Equity Transfer from the Electric Fund to the General Fund by $5,000 in alignment with the capital assets reported in these funds in the FY 2019 Comprehensive Annual Financial Report (CAFR) as of June 30, 2019. The net result from this adjustment is a decrease of $159,000 to the General Fund for the Equity Transfer from the Electric and Gas Funds by an increase of $5,000 and decrease of $164,000, respectively. -$ 5,000$ Utilities Transfer to Electric Fund for Canopy Contract This action eliminates the General Fund transfer to Electric fund for costs related to the Canopy contract, which was originally charged and managed by Utilities for tree maintenance work related to streetlights and later reimbursed via transfers from General Fund. The contract now directly charges the general fund so it's no longer necessary to perform a transfer. (33,210)$ -$ Utilities General Liability Insurance Adjustment This action reflects the combined impact from adjustments to allocated charge for general liability insurance as outlined in Attachment A, Exhibit 3. -$ 107,112$ Utilities Transfer to General Benefits Fund for Supplemental Pension Contribution As approved by the City Council as part of the FY 2019 Comprehensive Annual Financial Report (CAFR), this action reflects the combined impact from adjustments to transfers for additional pension contributions as outlined in Attachment A, Exhibit 5. -$ 442,695$ Utilities Workers' Compensation Adjustment This action reflects the combined impact from adjustments to salary and benefit charges for workers' compensation as outlined in Attachment A, Exhibit 4. -$ 46,602$ Fund Balance Adjustment to Fund Balance This action increases the fund balance to offset adjustments recommended in this report. -$ 877,423$ ELECTRIC FUND (513 & 523) SUBTOTAL (33,210)$ (33,210)$ 11 of 40 ATTACHMENT A, EXHIBIT 1 Revenues Expenses Department Adjustment Adjustment ENTERPRISE FUNDS CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2020 BUDGET FIBER OPTICS FUND (533) Utilities General Liability Insurance Adjustment This action reflects the combined impact from adjustments to allocated charge for general liability insurance as outlined in Attachment A, Exhibit 3. -$ 6,978$ Utilities Transfer to General Benefits Fund for Supplemental Pension Contribution As approved by the City Council as part of the FY 2019 Comprehensive Annual Financial Report (CAFR), this action reflects the combined impact from adjustments to transfers for additional pension contributions as outlined in Attachment A, Exhibit 5. -$ 34,102$ Utilities Workers' Compensation Adjustment This action reflects the combined impact from adjustments to salary and benefit charges for workers' compensation as outlined in Attachment A, Exhibit 4. -$ 3,036$ Fund Balance Adjustment to Fund Balance This action decreases the fund balance to offset adjustments recommended in this report. -$ (44,117)$ FIBER OPTICS FUND (533) SUBTOTAL -$ -$ 12 of 40 ATTACHMENT A, EXHIBIT 1 Revenues Expenses Department Adjustment Adjustment ENTERPRISE FUNDS CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2020 BUDGET GAS FUND (514 & 524) Utilities Equity Transfer from the Gas Fund This action decreases the Equity Transfer from the Gas Fund to the General Fund by $164,000 in alignment with the capital assets reported in these funds in the FY 2019 Comprehensive Annual Financial Report (CAFR) as of June 30, 2019. The net result from this adjustment is a decrease of $159,000 to the General Fund for the Equity Transfer from the Electric and Gas Funds by an increase of $5,000 and decrease of $164,000, respectively. -$ (164,000)$ Utilities General Liability Insurance Adjustment This action reflects the combined impact from adjustments to allocated charge for general liability insurance as outlined in Attachment A, Exhibit 3. -$ 45,748$ Utilities Transfer to General Benefits Fund for Supplemental Pension Contribution As approved by the City Council as part of the FY 2019 Comprehensive Annual Financial Report (CAFR), this action reflects the combined impact from adjustments to transfers for additional pension contributions as outlined in Attachment A, Exhibit 5. -$ 196,760$ Utilities Workers' Compensation Adjustment This action reflects the combined impact from adjustments to salary and benefit charges for workers' compensation as outlined in Attachment A, Exhibit 4. -$ 19,904$ Fund Balance Adjustment to Fund Balance This action decreases the fund balance to offset adjustments recommended in this report. -$ (98,412)$ GAS FUND (514 & 524) SUBTOTAL -$ -$ 13 of 40 ATTACHMENT A, EXHIBIT 1 Revenues Expenses Department Adjustment Adjustment ENTERPRISE FUNDS CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2020 BUDGET REFUSE FUND (525) Public Works General Liability Insurance Adjustment This action reflects the combined impact from adjustments to allocated charge for general liability insurance as outlined in Attachment A, Exhibit 3. -$ 50,840$ Public Works Transfer to General Benefits Fund for Supplemental Pension Contribution As approved by the City Council as part of the FY 2019 Comprehensive Annual Financial Report (CAFR), this action reflects the combined impact from adjustments to transfers for additional pension contributions as outlined in Attachment A, Exhibit 5. -$ 61,360$ Public Works Workers' Compensation Adjustment This action reflects the combined impact from adjustments to salary and benefit charges for workers' compensation as outlined in Attachment A, Exhibit 4. -$ 6,560$ Fund Balance Adjustment to Fund Balance This action decreases the fund balance to offset adjustments recommended in this report. -$ (118,760)$ REFUSE FUND (525) SUBTOTAL -$ -$ 14 of 40 ATTACHMENT A, EXHIBIT 1 Revenues Expenses Department Adjustment Adjustment ENTERPRISE FUNDS CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2020 BUDGET STORMWATER MANAGEMENT FUND (528) Public Works General Liability Insurance Adjustment This action reflects the combined impact from adjustments to allocated charge for general liability insurance as outlined in Attachment A, Exhibit 3. -$ 35,098$ Public Works Transfer to General Benefits Fund for Supplemental Pension Contribution As approved by the City Council as part of the FY 2019 Comprehensive Annual Financial Report (CAFR), this action reflects the combined impact from adjustments to transfers for additional pension contributions as outlined in Attachment A, Exhibit 5. -$ 55,677$ Public Works Workers' Compensation Adjustment This action reflects the combined impact from adjustments to salary and benefit charges for workers' compensation as outlined in Attachment A, Exhibit 4. -$ 4,529$ Fund Balance Adjustment to Fund Balance This action decreases the fund balance to offset adjustments recommended in this report. -$ (95,304)$ STORMWATER MANAGEMENT FUND (528) SUBTOTAL -$ -$ 15 of 40 ATTACHMENT A, EXHIBIT 1 Revenues Expenses Department Adjustment Adjustment ENTERPRISE FUNDS CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2020 BUDGET UTILITIES ADMINISTRATION FUND (521) Utilities General Liability Insurance Adjustment This action reflects the combined impact from adjustments to allocated charge for general liability insurance as outlined in Attachment A, Exhibit 3. -$ 19,657$ Utilities Transfer to General Benefits Fund for Supplemental Pension Contribution As approved by the City Council as part of the FY 2019 Comprehensive Annual Financial Report (CAFR), this action reflects the combined impact from adjustments to transfers for additional pension contributions as outlined in Attachment A, Exhibit 5. -$ 75,306$ Utilities Workers' Compensation Adjustment This action reflects the combined impact from adjustments to salary and benefit charges for workers' compensation as outlined in Attachment A, Exhibit 4. -$ 8,552$ Fund Balance Adjustment to Fund Balance This action decreases the fund balance to offset adjustments recommended in this report. -$ (103,515)$ UTILITIES ADMINISTRATION FUND (521) SUBTOTAL -$ -$ 16 of 40 ATTACHMENT A, EXHIBIT 1 Revenues Expenses Department Adjustment Adjustment ENTERPRISE FUNDS CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2020 BUDGET WASTEWATER TREATMENT FUND (526) Capital Capital Improvement Project Adjustments This action reflects the combined impact from adjustments to projects as outlined in Attachment A, Exhibit 2. (8,000,000)$ (8,000,000)$ Public Works General Liability Insurance Adjustment This action reflects the combined impact from adjustments to allocated charge for general liability insurance as outlined in Attachment A, Exhibit 3. -$ 241,073$ Public Works Transfer to General Benefits Fund for Supplemental Pension Contribution As approved by the City Council as part of the FY 2019 Comprehensive Annual Financial Report (CAFR), this action reflects the combined impact from adjustments to transfers for additional pension contributions as outlined in Attachment A, Exhibit 5. -$ 275,938$ Public Works Workers' Compensation Adjustment This action reflects the combined impact from adjustments to salary and benefit charges for workers' compensation as outlined in Attachment A, Exhibit 4. -$ 31,106$ Fund Balance Adjustment to Fund Balance This action decreases the fund balance to offset adjustments recommended in this report. -$ (548,117)$ WASTEWATER TREATMENT FUND (526) SUBTOTAL (8,000,000)$ (8,000,000)$ 17 of 40 ATTACHMENT A, EXHIBIT 1 Revenues Expenses Department Adjustment Adjustment ENTERPRISE FUNDS CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2020 BUDGET WASTEWATER COLLECTION FUND (527) Public Works General Liability Insurance Adjustment This action reflects the combined impact from adjustments to allocated charge for general liability insurance as outlined in Attachment A, Exhibit 3. -$ 25,199$ Public Works Transfer to General Benefits Fund for Supplemental Pension Contribution As approved by the City Council as part of the FY 2019 Comprehensive Annual Financial Report (CAFR), this action reflects the combined impact from adjustments to transfers for additional pension contributions as outlined in Attachment A, Exhibit 5. -$ 107,078$ Public Works Workers' Compensation Adjustment This action reflects the combined impact from adjustments to salary and benefit charges for workers' compensation as outlined in Attachment A, Exhibit 4. -$ 10,964$ Fund Balance Adjustment to Fund Balance This action decreases the fund balance to offset adjustments recommended in this report. -$ (143,241)$ WASTEWATER COLLECTION FUND (527) SUBTOTAL -$ -$ WATER FUND (522) Public Works General Liability Insurance Adjustment This action reflects the combined impact from adjustments to allocated charge for general liability insurance as outlined in Attachment A, Exhibit 3. -$ 43,446$ Public Works Transfer to General Benefits Fund for Supplemental Pension Contribution As approved by the City Council as part of the FY 2019 Comprehensive Annual Financial Report (CAFR), this action reflects the combined impact from adjustments to transfers for additional pension contributions as outlined in Attachment A, Exhibit 5. -$ 179,952$ Public Works Workers' Compensation Adjustment This action reflects the combined impact from adjustments to salary and benefit charges for workers' compensation as outlined in Attachment A, Exhibit 4. -$ 18,902$ Fund Balance Adjustment to Fund Balance This action decreases the fund balance to offset adjustments recommended in this report. -$ (242,300)$ WATER FUND (522) SUBTOTAL -$ -$ 18 of 40 ATTACHMENT A, EXHIBIT 1 Revenues Expenses Department Adjustment Adjustment INTERNAL SERVICE FUNDS GENERAL BENEFITS FUND (687) Non-Departmental Supplemental Pension Contribution - Transfer from Other Funds/Pension Expense This action increases the revenue estimate and expense appropriation for additional contributions to the City's irrevocable Section 115 Pension Trust Fund. This action was approved by the City Council as part of the FY 2019 Comprehensive Annual Financial Report (CAFR) and reflects an additional General Fund contribution of $3.5 million to the pension trust fund (CMR 10644). An additional $1.7 million is recommended from other funds to maintain the current practice of aligning Enterprise, Internal Service, and Special Revenue Fund contributions with the General Fund. Corresponding actions are recommended in this report and detailed in Attachment A, Exhibit 5 to appropriately distribute costs across the City. 5,247,074$ 5,247,074$ Non-Departmental Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report. -$ -$ GENERAL BENEFITS FUND (687) SUBTOTAL 5,247,074$ 5,247,074$ GENERAL LIABILITIES INSURANCE FUND (689) Non-Departmental Charges to Other Funds This action increases the estimate for charges to other funds by $1,800,000 ($982,000 in the General Fund) due to an updated actuarial analysis in August 2019 for general liabilities that have been incurred but not reported (IBNR) being $3.0 million higher than budgeted. A $950,000 ($518,000 in the General Fund) adjustment was made as part of the FY 2019 year end process to partially adjust for this increase. This action adjusts for the remainder of the liability as necessary to maintain a positive fund balance in FY 2020. Corresponding actions are recommended in this report and detailed in Attachment A, Exhibit 3 to appropriately distribute costs across the City. 1,800,000$ -$ Non-Departmental Property Loss Insurance Adjustment This action increases the estimate for property loss insurance due to premium increases being higher than anticipated, from $208,000 to $258,000. -$ 50,196$ Non-Departmental Umbrella Excess Liability Insurance Adjustment This action increases the estimate for umbrella excess liability insurance due to premium increases being higher than anticipated, from $1.15 million to $1.36 million. -$ 216,029$ Fund Balance Adjustment to Fund Balance This action increases the fund balance to offset adjustments recommended in this report. -$ 1,533,775$ GENERAL LIABILITIES INSURANCE FUND (689) SUBTOTAL 1,800,000$ 1,800,000$ CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2020 BUDGET 19 of 40 ATTACHMENT A, EXHIBIT 1 Revenues Expenses Department Adjustment Adjustment INTERNAL SERVICE FUNDS CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2020 BUDGET INFORMATION TECHNOLOGY FUND (682) Information Technology General Liability Insurance Adjustment This action reflects the combined impact from adjustments to allocated charge for general liability insurance as outlined in Attachment A, Exhibit 3. -$ 44,791$ Information Technology Transfer to General Benefits Fund for Supplemental Pension Contribution As approved by the City Council as part of the FY 2019 Comprehensive Annual Financial Report (CAFR), this action reflects the combined impact from adjustments to transfers for additional pension contributions as outlined in Attachment A, Exhibit 5. -$ 189,519$ Information Technology Workers' Compensation Adjustment This action reflects the combined impact from adjustments to salary and benefit charges for workers' compensation as outlined in Attachment A, Exhibit 4. -$ 14,697$ Information Technology Media Center Operations/Transfer from the General Fund This action is a technical correction related to CMR 11006 that was approved by the City Council on January 27, 2020. Funding appropriated for Media Center Operations in the Technology Fund in the CMR, should've been appropriated in the General Fund. This action along with corresponding actions in the General Fund will allow the City to grant funding to the Media Center for operating costs and use Public Education and Government Access (PEG) funding for the City Council Chambers Upgrade project (TE-19001). (511,536)$ (511,536)$ Fund Balance Adjustment to Fund Balance This action decreases the fund balance to offset adjustments recommended in this report. -$ (249,007)$ INFORMATION TECHNOLOGY FUND (682) SUBTOTAL (511,536)$ (511,536)$ 20 of 40 ATTACHMENT A, EXHIBIT 1 Revenues Expenses Department Adjustment Adjustment INTERNAL SERVICE FUNDS CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2020 BUDGET PRINTING & MAILING FUND (683) Administrative Services General Liability Insurance Adjustment This action reflects the combined impact from adjustments to allocated charge for general liability insurance as outlined in Attachment A, Exhibit 3. -$ 1,338$ Administrative Services Transfer to General Benefits Fund for Supplemental Pension Contribution As approved by the City Council as part of the FY 2019 Comprehensive Annual Financial Report (CAFR), this action reflects the combined impact from adjustments to transfers for additional pension contributions as outlined in Attachment A, Exhibit 5. -$ 4,574$ Administrative Services Workers' Compensation Adjustment This action reflects the combined impact from adjustments to salary and benefit charges for workers' compensation as outlined in Attachment A, Exhibit 4. -$ 524$ Fund Balance Adjustment to Fund Balance This action decreases the fund balance to offset adjustments recommended in this report. -$ (6,436)$ PRINTING & MAILING FUND (683) SUBTOTAL -$ -$ VEHICLE REPLACEMENT AND MAINTENANCE FUND (681) Public Works General Liability Insurance Adjustment This action reflects the combined impact from adjustments to allocated charge for general liability insurance as outlined in Attachment A, Exhibit 3. -$ 48,002$ Public Works Transfer to General Benefits Fund for Supplemental Pension Contribution As approved by the City Council as part of the FY 2019 Comprehensive Annual Financial Report (CAFR), this action reflects the combined impact from adjustments to transfers for additional pension contributions as outlined in Attachment A, Exhibit 5. -$ 59,311$ Public Works Workers' Compensation Adjustment This action reflects the combined impact from adjustments to salary and benefit charges for workers' compensation as outlined in Attachment A, Exhibit 4. -$ 6,194$ Fund Balance Adjustment to Fund Balance This action decreases the fund balance to offset adjustments recommended in this report. -$ (113,506)$ VEHICLE REPLACEMENT AND MAINTENANCE FUND (681) SUBTOTAL -$ -$ 21 of 40 ATTACHMENT A, EXHIBIT 1 Revenues Expenses Department Adjustment Adjustment INTERNAL SERVICE FUNDS CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2020 BUDGET WORKERS' COMPENSATION FUND (688) Non-Departmental Charges to Other Funds This action increases the estimate for charges to other funds by $600,000 ($408,000 in the General Fund) due to an updated actuarial analysis in August 2019 for workers' compensation claims that have been incurred but not reported (IBNR) being $2.0 million higher than budgeted. No adjustment was made as part of the FY 2019 year end process to adjust for this increase due to sufficient fund balance. This action adjusts for the remainder of the liability as necessary to maintain a positive fund balance in FY 2020. Corresponding actions are recommended in this report and detailed in Attachment A, Exhibit 4 to appropriately distribute costs across the City. 600,000$ -$ Non-Departmental Transfer to General Benefits Fund for Supplemental Pension Contribution As approved by the City Council as part of the FY 2019 Comprehensive Annual Financial Report (CAFR), this action reflects the combined impact from adjustments to transfers for additional pension contributions as outlined in Attachment A, Exhibit 5. -$ 5,203$ Fund Balance Adjustment to Fund Balance This action increases the fund balance to offset adjustments recommended in this report. -$ 594,797$ WORKERS' COMPENSATION FUND (688) SUBTOTAL 600,000$ 600,000$ 22 of 40 ATTACHMENT A, EXHIBIT 1 Revenues Expenses Department Adjustment Adjustment SPECIAL REVENUE FUNDS CALIFORNIA AVENUE FUND (237) Office of Transportation General Liability Insurance Adjustment This action reflects the combined impact from adjustments to allocated charge for general liability insurance as outlined in Attachment A, Exhibit 3. -$ 1,567$ Office of Transportation Transfer to General Benefits Fund for Supplemental Pension Contribution As approved by the City Council as part of the FY 2019 Comprehensive Annual Financial Report (CAFR), this action reflects the combined impact from adjustments to transfers for additional pension contributions as outlined in Attachment A, Exhibit 5. -$ 4,066$ Office of Transportation Workers' Compensation Adjustment This action reflects the combined impact from adjustments to salary and benefit charges for workers' compensation as outlined in Attachment A, Exhibit 4. -$ 300$ Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset the actions recommended in this report. -$ (5,933)$ CALIFORNIA AVENUE FUND (237) SUBTOTAL -$ -$ CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2020 BUDGET 23 of 40 ATTACHMENT A, EXHIBIT 1 Revenues Expenses Department Adjustment Adjustment SPECIAL REVENUE FUNDS CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2020 BUDGET COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUND (232) Planning & Development Services General Liability Insurance Adjustment This action reflects the combined impact from adjustments to allocated charge for general liability insurance as outlined in Attachment A, Exhibit 3. -$ 1,174$ Planning & Development Services Transfer to General Benefits Fund for Supplemental Pension Contribution As approved by the City Council as part of the FY 2019 Comprehensive Annual Financial Report (CAFR), this action reflects the combined impact from adjustments to transfers for additional pension contributions as outlined in Attachment A, Exhibit 5. -$ 288$ Planning & Development Services Workers' Compensation Adjustment This action reflects the combined impact from adjustments to salary and benefit charges for workers' compensation as outlined in Attachment A, Exhibit 4. -$ 159$ Temporary Salaries Adjustment to Temporary Salaries This action adjusts the temporary salaries to offset the actions recommended in this report. -$ (1,621)$ COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUND (232) SUBTOTAL -$ -$ 24 of 40 ATTACHMENT A, EXHIBIT 1 Revenues Expenses Department Adjustment Adjustment SPECIAL REVENUE FUNDS CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2020 BUDGET HOUSING IN-LIEU/RESIDENTIAL FUND (233) Planning & Development Services General Liability Insurance Adjustment This action reflects the combined impact from adjustments to allocated charge for general liability insurance as outlined in Attachment A, Exhibit 3. -$ 35$ Planning & Development Services Transfer to General Benefits Fund for Supplemental Pension Contribution As approved by the City Council as part of the FY 2019 Comprehensive Annual Financial Report (CAFR), this action reflects the combined impact from adjustments to transfers for additional pension contributions as outlined in Attachment A, Exhibit 5. -$ 477$ Planning & Development Services Workers' Compensation Adjustment This action reflects the combined impact from adjustments to salary and benefit charges for workers' compensation as outlined in Attachment A, Exhibit 4. -$ 5$ Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset the actions recommended in this report. -$ (517)$ HOUSING IN-LIEU/RESIDENTIAL FUND (233) SUBTOTAL -$ -$ 25 of 40 ATTACHMENT A, EXHIBIT 1 Revenues Expenses Department Adjustment Adjustment SPECIAL REVENUE FUNDS CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2020 BUDGET HOUSING IN-LIEU/COMMERCIAL FUND (234) Planning & Development Services General Liability Insurance Adjustment This action reflects the combined impact from adjustments to allocated charge for general liability insurance as outlined in Attachment A, Exhibit 3. -$ 35$ Planning & Development Services Transfer to General Benefits Fund for Supplemental Pension Contribution As approved by the City Council as part of the FY 2019 Comprehensive Annual Financial Report (CAFR), this action reflects the combined impact from adjustments to transfers for additional pension contributions as outlined in Attachment A, Exhibit 5. -$ 477$ Planning & Development Services Workers' Compensation Adjustment This action reflects the combined impact from adjustments to salary and benefit charges for workers' compensation as outlined in Attachment A, Exhibit 4. -$ 5$ Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset the actions recommended in this report. -$ (517)$ HOUSING IN-LIEU/COMMERCIAL FUND (234) SUBTOTAL -$ -$ 26 of 40 ATTACHMENT A, EXHIBIT 1 Revenues Expenses Department Adjustment Adjustment SPECIAL REVENUE FUNDS CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2020 BUDGET PUBLIC ART FUND (207) Community Services Department General Liability Insurance Adjustment This action reflects the combined impact from adjustments to allocated charge for general liability insurance as outlined in Attachment A, Exhibit 3. -$ 1,143$ Community Services Department Transfer to General Benefits Fund for Supplemental Pension Contribution As approved by the City Council as part of the FY 2019 Comprehensive Annual Financial Report (CAFR), this action reflects the combined impact from adjustments to transfers for additional pension contributions as outlined in Attachment A, Exhibit 5. -$ 4,818$ Community Services Department Workers' Compensation Adjustment This action reflects the combined impact from adjustments to salary and benefit charges for workers' compensation as outlined in Attachment A, Exhibit 4. -$ 404$ Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset the actions recommended in this report. -$ (6,365)$ PUBLIC ART FUND (207) SUBTOTAL -$ -$ 27 of 40 ATTACHMENT A, EXHIBIT 1 Revenues Expenses Department Adjustment Adjustment SPECIAL REVENUE FUNDS CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2020 BUDGET RESIDENTIAL PARKING PERMIT (RPP) FUND (239) Office of Transportation General Liability Insurance Adjustment This action reflects the combined impact from adjustments to allocated charge for general liability insurance as outlined in Attachment A, Exhibit 3. -$ 5,756$ Office of Transportation Transfer to General Benefits Fund for Supplemental Pension Contribution As approved by the City Council as part of the FY 2019 Comprehensive Annual Financial Report (CAFR), this action reflects the combined impact from adjustments to transfers for additional pension contributions as outlined in Attachment A, Exhibit 5. -$ 8,093$ Office of Transportation Workers' Compensation Adjustment This action reflects the combined impact from adjustments to salary and benefit charges for workers' compensation as outlined in Attachment A, Exhibit 4. -$ 780$ Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset the actions recommended in this report. -$ (14,629)$ RESIDENTIAL PARKING PERMIT (RPP) FUND (239) SUBTOTAL -$ -$ 28 of 40 ATTACHMENT A, EXHIBIT 1 Revenues Expenses Department Adjustment Adjustment SPECIAL REVENUE FUNDS CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2020 BUDGET UNIVERSITY AVENUE FUND (237) Office of Transportation General Liability Insurance Adjustment This action reflects the combined impact from adjustments to allocated charge for general liability insurance as outlined in Attachment A, Exhibit 3. -$ 10,802$ Office of Transportation Transfer to General Benefits Fund for Supplemental Pension Contribution As approved by the City Council as part of the FY 2019 Comprehensive Annual Financial Report (CAFR), this action reflects the combined impact from adjustments to transfers for additional pension contributions as outlined in Attachment A, Exhibit 5. -$ 13,694$ Office of Transportation Workers' Compensation Adjustment This action reflects the combined impact from adjustments to salary and benefit charges for workers' compensation as outlined in Attachment A, Exhibit 4. -$ 1,625$ Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset the actions recommended in this report. -$ (26,121)$ UNIVERSITY AVENUE FUND (237) SUBTOTAL -$ -$ 29 of 40 ATTACHMENT A, EXHIBIT 2 Project Title Number Revenues Expenses Comments ELECTRIC FUND Rebuild Underground District 20 EL-14002 $ - $ (1,350,000)This action decreases the project budget by $1,350,000 in FY2020, returning the funding to reserves to better align project timeline with available resources. Due to ongoing negotiations with stakeholders on a related rebuild project, limited staffing resources in Electric Engineering and Operation divisions, higher contract construction costs, and competing project priorities, this project will be delayed by two to four years. Colorado/Hopkins System Improvement EL-15000 $ (518,000)This action decreases the project budget by $518,000 in FY2020, returning the funding to reserves to better align project timeline with available resources. Due to limited staffing resources in Electric Engineering and Operation divisions, higher contract construction costs, and competing project priorities, this project will be delayed by two to four years. Rebuild Underground District 26 EL-16000 $ (488,042)This action decreases the project budget by $488,042 in FY2020, returning the funding to reserves to better align project timeline with available resources. Due to limited staffing resources in Electric Engineering and Operation divisions, higher contract construction costs, and competing project priorities, this project will be delayed by two to four years. Rebuild Underground District 30 EL-19003 $ (356,000)This action decreases the project budget by $356,000 in FY2020, returning the funding to reserves to better align project timeline with available resources. Due to limited staffing resources in Electric Engineering and Operation divisions, higher contract construction costs, and competing project priorities, this project will be delayed by two to four years. CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2020 CAPITAL IMPROVEMENT PROGRAM 30 of 40 ATTACHMENT A, EXHIBIT 2 Project Title Number Revenues Expenses Comments CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2020 CAPITAL IMPROVEMENT PROGRAM Hopkins Substation 4/12kV Conversion EL-20000 $ (100,000)This action decreases the project budget by $100,000 in FY2020, returning the funding to reserves to better align project timeline with available resources. Due to limited staffing resources in Electric Engineering and Operation divisions, higher contract construction costs, and competing project priorities, this project will be delayed by two to four years. Capacitor Bank Installation EL-16002 $ - $ 300,000 This action increases the project budget by $300,000. The additional funding will enable Utilities to complete installation of additional capacitor bank equipment at the remaining two substations. The completion of this project is required to maintain a power factor greater than 0.95 of its main supply point as part of its agreement with Northern California Power Association (NCPA). This project is expected to be completed in FY 2021Colorado Power Station EL-19001 $ - $ 1,000,000 This action increases the project budget by $1,00,000. The additional funding covers internal staff time required to install, test and inspect the new COP-2 transformer and high voltage circuit breaker at the Colorado Power Station. The additional funding increases the total project cost from $3,300,000 to $4,300,000. In addition, the City will be receiving approximately $650,000 from an insurance claim, of which $350,000 was received in Fiscal Year 2019. These expense increases were the unexpected result of the transformer being damaged, which then changed the project scope from refurbishment to replacement of large equipment. The average lifespan of this type of transformer is 40 to 50 years. TOTAL ELECTRIC FUND PROJECT $ - $ (1,512,042)ADJUSTMENTS 31 of 40 ATTACHMENT A, EXHIBIT 2 Project Title Number Revenues Expenses Comments CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2020 CAPITAL IMPROVEMENT PROGRAM Advanced Water Purification Facility WQ-19003 $ (8,000,000) $ (8,000,000)This action decreases the project revenue and expenses by $8M due to delays finalizing the recycled water agreement between Palo Alto, Mountain View, and Valley Water (Santa Clara Valley Water District). This project is part of an inter- agency effort, with Valley Water a main source of revenue funding. The timeline for negotiating the agreement and getting the agreement through the approval process for all agencies involved took longer than anticipated. Construction is now anticipated to begin FY 2022. $ (8,000,000) $ (8,000,000) WASTEWATER TREATMENT FUND TOTAL WASTEWATER TREATMENT FUND PROJECT ADJUSTMENTS 32 of 40 ATTACHMENT A, EXHIBIT 3 Fund Department/ Fund Title Revenue Expense Comments General Fund Administrative Services General Liability Insurance Adjustment $ - $ 44,049 Adjustment to allocated charges for general liability insurance to align with increases experienced in FY 2019. General Fund City Attorney General Liability Insurance Adjustment $ - $ 20,688 Adjustment to allocated charges for general liability insurance to align with increases experienced in FY 2019. General Fund City Auditor General Liability Insurance Adjustment $ - $ 8,321 Adjustment to allocated charges for general liability insurance to align with increases experienced in FY 2019. General Fund City Clerk General Liability Insurance Adjustment $ - $ 7,863 Adjustment to allocated charges for general liability insurance to align with increases experienced in FY 2019. General Fund City Council General Liability Insurance Adjustment $ - $ 1,494 Adjustment to allocated charges for general liability insurance to align with increases experienced in FY 2019. General Fund City Manager General Liability Insurance Adjustment $ - $ 20,721 Adjustment to allocated charges for general liability insurance to align with increases experienced in FY 2019. General Fund Community Services General Liability Insurance Adjustment $ - $ 108,499 Adjustment to allocated charges for general liability insurance to align with increases experienced in FY 2019. General Fund Fire General Liability Insurance Adjustment $ - $ 107,406 Adjustment to allocated charges for general liability insurance to align with increases experienced in FY 2019. General Fund Human Resources General Liability Insurance Adjustment $ - $ 33,430 Adjustment to allocated charges for general liability insurance to align with increases experienced in FY 2019. General Fund Library General Liability Insurance Adjustment $ - $ 45,777 Adjustment to allocated charges for general liability insurance to align with increases experienced in FY 2019. General Fund Office of Emergency Services General Liability Insurance Adjustment $ - $ 5,094 Adjustment to allocated charges for general liability insurance to align with increases experienced in FY 2019. General Fund Office of Transportation General Liability Insurance Adjustment $ - $ 18,767 Adjustment to allocated charges for general liability insurance to align with increases experienced in FY 2019. General Fund Planning and Development Services General Liability Insurance Adjustment $ - $ 132,360 Adjustment to allocated charges for general liability insurance to align with increases experienced in FY 2019. General Fund Police General Liability Insurance Adjustment $ - $ 263,176 Adjustment to allocated charges for general liability insurance to align with increases experienced in FY 2019. General Fund Public Works General Liability Insurance Adjustment $ - $ 164,745 Adjustment to allocated charges for general liability insurance to align with increases experienced in FY 2019. $ - $ 982,390 GENERAL FUND CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2020 BUDGET GENERAL FUND SUBTOTAL 33 of 40 ATTACHMENT A, EXHIBIT 3 Fund Department/ Fund Title Revenue Expense Comments CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2020 BUDGET Capital Improvement Fund 471 General Liability Insurance Adjustment $ - $ 104,239 Adjustment to allocated charges for general liability insurance to align with increases experienced in FY 2019. Cubberley Property Infrastructure Fund 472 General Liability Insurance Adjustment $ - $ 5,095 Adjustment to allocated charges for general liability insurance to align with increases experienced in FY 2019. $ - $ 109,334 Airport Fund 530 General Liability Insurance Adjustment $ - $ 18,483 Adjustment to allocated charges for general liability insurance to align with increases experienced in FY 2019. Electric Fund 513 & 523 General Liability Insurance Adjustment $ - $ 107,112 Adjustment to allocated charges for general liability insurance to align with increases experienced in FY 2019. Fiber Optics Fund 533 General Liability Insurance Adjustment $ - $ 6,978 Adjustment to allocated charges for general liability insurance to align with increases experienced in FY 2019. Gas Fund 514 & 524 General Liability Insurance Adjustment $ - $ 45,748 Adjustment to allocated charges for general liability insurance to align with increases experienced in FY 2019. Refuse Fund 525 General Liability Insurance Adjustment $ - $ 50,840 Adjustment to allocated charges for general liability insurance to align with increases experienced in FY 2019. Stormwater Management Fund 528 General Liability Insurance Adjustment $ - $ 35,098 Adjustment to allocated charges for general liability insurance to align with increases experienced in FY 2019. Utilities Administration Fund 521 General Liability Insurance Adjustment $ - $ 19,657 Adjustment to allocated charges for general liability insurance to align with increases experienced in FY 2019. Wastewater Treatment Fund 526 General Liability Insurance Adjustment $ - $ 241,073 Adjustment to allocated charges for general liability insurance to align with increases experienced in FY 2019. Wastewater Collection Fund 527 General Liability Insurance Adjustment $ - $ 25,199 Adjustment to allocated charges for general liability insurance to align with increases experienced in FY 2019. Water Fund 522 General Liability Insurance Adjustment $ - $ 43,446 Adjustment to allocated charges for general liability insurance to align with increases experienced in FY 2019. $ - $ 593,634 Information Technology Fund 682 General Liability Insurance Adjustment $ - $ 44,791 Adjustment to allocated charges for general liability insurance to align with increases experienced in FY 2019. Printing & Mailing Fund 683 General Liability Insurance Adjustment $ - $ 1,338 Adjustment to allocated charges for general liability insurance to align with increases experienced in FY 2019. Vehicle Maintenance & Replacement Fund 681 General Liability Insurance Adjustment $ - $ 48,002 Adjustment to allocated charges for general liability insurance to align with increases experienced in FY 2019. $ - $ 94,131 CAPITAL FUNDS ENTERPRISE FUNDS CAPITAL FUNDS SUBTOTAL ENTERPRISE FUNDS SUBTOTAL INTERNAL SERVICE FUNDS INTERNAL SERVICE FUNDS SUBTOTAL 34 of 40 ATTACHMENT A, EXHIBIT 3 Fund Department/ Fund Title Revenue Expense Comments CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2020 BUDGET California Avenue Fund 237 General Liability Insurance Adjustment $ - $ 1,567 Adjustment to allocated charges for general liability insurance to align with increases experienced in FY 2019. Community Development Block Grant (CDBG) Fund 232 General Liability Insurance Adjustment $ - $ 1,174 Adjustment to allocated charges for general liability insurance to align with increases experienced in FY 2019. Housing In- Lieu/Residential Fund 233 General Liability Insurance Adjustment $ - $ 35 Adjustment to allocated charges for general liability insurance to align with increases experienced in FY 2019. Housing In- Lieu/Commercial Fund 234 General Liability Insurance Adjustment $ - $ 35 Adjustment to allocated charges for general liability insurance to align with increases experienced in FY 2019. Public Art Fund 207 General Liability Insurance Adjustment $ - $ 1,143 Adjustment to allocated charges for general liability insurance to align with increases experienced in FY 2019. Residential Parking Permit (RPP) Fund 239 General Liability Insurance Adjustment $ - $ 5,756 Adjustment to allocated charges for general liability insurance to align with increases experienced in FY 2019. University Avenue Fund 236 General Liability Insurance Adjustment $ - $ 10,802 Adjustment to allocated charges for general liability insurance to align with increases experienced in FY 2019. $ - $ 20,512 TOTAL ADJUSTMENT $ - $ 1,800,000 SPECIAL REVENUE FUNDS SUBTOTAL SPECIAL REVENUE FUNDS 35 of 40 ATTACHMENT A, EXHIBIT 4 Fund Department/ Fund Title Revenue Expense Comments General Fund Administrative Services Workers' Compensation Adjustment $ - $ 17,259 Adjustment to salary and benefit charges for workers' compensation to align with increases experienced in FY 2019. General Fund City Attorney Workers' Compensation Adjustment $ - $ 6,836 Adjustment to salary and benefit charges for workers' compensation to align with increases experienced in FY 2019. General Fund City Auditor Workers' Compensation Adjustment $ - $ 2,730 Adjustment to salary and benefit charges for workers' compensation to align with increases experienced in FY 2019. General Fund City Clerk Workers' Compensation Adjustment $ - $ 2,580 Adjustment to salary and benefit charges for workers' compensation to align with increases experienced in FY 2019. General Fund City Council Workers' Compensation Adjustment $ - $ 490 Adjustment to salary and benefit charges for workers' compensation to align with increases experienced in FY 2019. General Fund City Manager Workers' Compensation Adjustment $ - $ 6,799 Adjustment to salary and benefit charges for workers' compensation to align with increases experienced in FY 2019. General Fund Community Services Workers' Compensation Adjustment $ - $ 38,340 Adjustment to salary and benefit charges for workers' compensation to align with increases experienced in FY 2019. General Fund Fire Workers' Compensation Adjustment $ - $ 120,131 Adjustment to salary and benefit charges for workers' compensation to align with increases experienced in FY 2019. General Fund Human Resources Workers' Compensation Adjustment $ - $ 8,883 Adjustment to salary and benefit charges for workers' compensation to align with increases experienced in FY 2019. General Fund Library Workers' Compensation Adjustment $ - $ 16,058 Adjustment to salary and benefit charges for workers' compensation to align with increases experienced in FY 2019. General Fund Office of Emergency Services Workers' Compensation Adjustment $ - $ 2,594 Adjustment to salary and benefit charges for workers' compensation to align with increases experienced in FY 2019. General Fund Office of Transportation Workers' Compensation Adjustment $ - $ 2,542 Adjustment to salary and benefit charges for workers' compensation to align with increases experienced in FY 2019. General Fund Planning and Development Services Workers' Compensation Adjustment $ - $ 27,540 Adjustment to salary and benefit charges for workers' compensation to align with increases experienced in FY 2019. General Fund Police Workers' Compensation Adjustment $ - $ 134,013 Adjustment to salary and benefit charges for workers' compensation to align with increases experienced in FY 2019. General Fund Public Works Workers' Compensation Adjustment $ - $ 21,257 Adjustment to salary and benefit charges for workers' compensation to align with increases experienced in FY 2019. $ - $ 408,053 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2020 BUDGET GENERAL FUND GENERAL FUND SUBTOTAL 36 of 40 ATTACHMENT A, EXHIBIT 4 Fund Department/ Fund Title Revenue Expense Comments CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2020 BUDGET Capital Improvement Fund 471 Workers' Compensation Adjustment $ - $ 14,058 Adjustment to salary and benefit charges for workers' compensation to align with increases experienced in FY 2019. Cubberley Property Infrastructure Fund 472 Workers' Compensation Adjustment $ - $ 657 Adjustment to salary and benefit charges for workers' compensation to align with increases experienced in FY 2019. $ - $ 14,715 Airport Fund 530 Workers' Compensation Adjustment $ - $ 2,385 Adjustment to salary and benefit charges for workers' compensation to align with increases experienced in FY 2019. Electric Fund 513 & 523 Workers' Compensation Adjustment $ - $ 46,602 Adjustment to salary and benefit charges for workers' compensation to align with increases experienced in FY 2019. Fiber Optics Fund 533 Workers' Compensation Adjustment $ - $ 3,036 Adjustment to salary and benefit charges for workers' compensation to align with increases experienced in FY 2019. Gas Fund 514 & 524 Workers' Compensation Adjustment $ - $ 19,904 Adjustment to salary and benefit charges for workers' compensation to align with increases experienced in FY 2019. Refuse Fund 525 Workers' Compensation Adjustment $ - $ 6,560 Adjustment to salary and benefit charges for workers' compensation to align with increases experienced in FY 2019. Stormwater Management Fund 528 Workers' Compensation Adjustment $ - $ 4,529 Adjustment to salary and benefit charges for workers' compensation to align with increases experienced in FY 2019. Utilities Administration Fund 521 Workers' Compensation Adjustment $ - $ 8,552 Adjustment to salary and benefit charges for workers' compensation to align with increases experienced in FY 2019. Wastewater Treatment Fund 526 Workers' Compensation Adjustment $ - $ 31,106 Adjustment to salary and benefit charges for workers' compensation to align with increases experienced in FY 2019. Wastewater Collection Fund 527 Workers' Compensation Adjustment $ - $ 10,964 Adjustment to salary and benefit charges for workers' compensation to align with increases experienced in FY 2019. Water Fund 522 Workers' Compensation Adjustment $ - $ 18,902 Adjustment to salary and benefit charges for workers' compensation to align with increases experienced in FY 2019. $ - $ 152,540 Information Technology Fund 682 Workers' Compensation Adjustment $ - $ 14,697 Adjustment to salary and benefit charges for workers' compensation to align with increases experienced in FY 2019. Printing & Mailing Fund 683 Workers' Compensation Adjustment $ - $ 524 Adjustment to salary and benefit charges for workers' compensation to align with increases experienced in FY 2019. Vehicle Maintenance & Replacement Fund 681 Workers' Compensation Adjustment $ - $ 6,194 Adjustment to salary and benefit charges for workers' compensation to align with increases experienced in FY 2019. $ - $ 21,415 CAPITAL FUNDS CAPITAL FUNDS SUBTOTAL ENTERPRISE FUNDS ENTERPRISE FUNDS SUBTOTAL INTERNAL SERVICE FUNDS INTERNAL SERVICE FUNDS SUBTOTAL 37 of 40 ATTACHMENT A, EXHIBIT 4 Fund Department/ Fund Title Revenue Expense Comments CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2020 BUDGET California Avenue Fund 237 Workers' Compensation Adjustment $ - $ 300 Adjustment to salary and benefit charges for workers' compensation to align with increases experienced in FY 2019. Community Development Block Grant (CDBG) Fund 232 Workers' Compensation Adjustment $ - $ 159 Adjustment to salary and benefit charges for workers' compensation to align with increases experienced in FY 2019. Housing In- Lieu/Residential Fund 233 Workers' Compensation Adjustment $ - $ 5 Adjustment to salary and benefit charges for workers' compensation to align with increases experienced in FY 2019. Housing In- Lieu/Commercial Fund 234 Workers' Compensation Adjustment $ - $ 5 Adjustment to salary and benefit charges for workers' compensation to align with increases experienced in FY 2019. Public Art Fund 207 Workers' Compensation Adjustment $ - $ 404 Adjustment to salary and benefit charges for workers' compensation to align with increases experienced in FY 2019. Residential Parking Permit (RPP) Fund 239 Workers' Compensation Adjustment $ - $ 780 Adjustment to salary and benefit charges for workers' compensation to align with increases experienced in FY 2019. University Avenue Fund 236 Workers' Compensation Adjustment $ - $ 1,625 Adjustment to salary and benefit charges for workers' compensation to align with increases experienced in FY 2019. $ - $ 3,277 TOTAL ADJUSTMENT $ - $ 600,000 SPECIAL REVENUE FUNDS SPECIAL REVENUE FUNDS SUBTOTAL 38 of 40 ATTACHMENT A, EXHIBIT 5 Fund Department/ Fund Title Revenue Expense Comments General Fund Non- Departmental Supplemental Pension Contribution $ - $ 3,500,000 Establish transfer to the General Benefits Fund for an additional contribution to the City’s irrevocable Section 115 Pension Trust Fund $ - $ 3,500,000 Airport Fund 530 Supplemental Pension Contribution $ - $ 21,359 Establish transfer to the General Benefits Fund for an additional contribution to the City’s irrevocable Section 115 Pension Trust Fund Electric Fund 513 & 523 Supplemental Pension Contribution $ - $ 442,695 Establish transfer to the General Benefits Fund for an additional contribution to the City’s irrevocable Section 115 Pension Trust Fund Fiber Optics Fund 533 Supplemental Pension Contribution $ - $ 34,102 Establish transfer to the General Benefits Fund for an additional contribution to the City’s irrevocable Section 115 Pension Trust Fund Gas Fund 514 & 524 Supplemental Pension Contribution $ - $ 196,760 Establish transfer to the General Benefits Fund for an additional contribution to the City’s irrevocable Section 115 Pension Trust Fund Refuse Fund 525 Supplemental Pension Contribution $ - $ 61,360 Establish transfer to the General Benefits Fund for an additional contribution to the City’s irrevocable Section 115 Pension Trust Fund Stormwater Management Fund 528 Supplemental Pension Contribution $ - $ 55,677 Establish transfer to the General Benefits Fund for an additional contribution to the City’s irrevocable Section 115 Pension Trust Fund Utilities Administration Fund 521 Supplemental Pension Contribution $ - $ 75,306 Establish transfer to the General Benefits Fund for an additional contribution to the City’s irrevocable Section 115 Pension Trust Fund Wastewater Treatment Fund 526 Supplemental Pension Contribution $ - $ 275,938 Establish transfer to the General Benefits Fund for an additional contribution to the City’s irrevocable Section 115 Pension Trust Fund Wastewater Collection Fund 527 Supplemental Pension Contribution $ - $ 107,078 Establish transfer to the General Benefits Fund for an additional contribution to the City’s irrevocable Section 115 Pension Trust Fund Water Fund 522 Supplemental Pension Contribution $ - $ 179,952 Establish transfer to the General Benefits Fund for an additional contribution to the City’s irrevocable Section 115 Pension Trust Fund $ - $ 1,450,227 Information Technology Fund 682 Supplemental Pension Contribution $ - $ 189,519 Establish transfer to the General Benefits Fund for an additional contribution to the City’s irrevocable Section 115 Pension Trust Fund Printing & Mailing Fund 683 Supplemental Pension Contribution $ - $ 4,574 Establish transfer to the General Benefits Fund for an additional contribution to the City’s irrevocable Section 115 Pension Trust Fund Vehicle Maintenance & Replacement Fund 681 Supplemental Pension Contribution $ - $ 59,311 Establish transfer to the General Benefits Fund for an additional contribution to the City’s irrevocable Section 115 Pension Trust Fund Workers' Compensation Fund 688 Supplemental Pension Contribution $ - $ 5,203 Establish transfer to the General Benefits Fund for an additional contribution to the City’s irrevocable Section 115 Pension Trust Fund $ - $ 258,607 ENTERPRISE FUNDS SUBTOTAL INTERNAL SERVICE FUNDS INTERNAL SERVICE FUNDS SUBTOTAL ENTERPRISE FUNDS CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2020 BUDGET GENERAL FUND GENERAL FUND SUBTOTAL 39 of 40 ATTACHMENT A, EXHIBIT 5 Fund Department/ Fund Title Revenue Expense Comments CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2020 BUDGET California Avenue Fund 237 Supplemental Pension Contribution $ - $ 4,066 Establish transfer to the General Benefits Fund for an additional contribution to the City’s irrevocable Section 115 Pension Trust Fund Community Development Block Grant (CDBG) Fund 232 Supplemental Pension Contribution $ - $ 288 Establish transfer to the General Benefits Fund for an additional contribution to the City’s irrevocable Section 115 Pension Trust Fund Housing In- Lieu/Residential Fund 233 Supplemental Pension Contribution $ - $ 477 Establish transfer to the General Benefits Fund for an additional contribution to the City’s irrevocable Section 115 Pension Trust Fund Housing In- Lieu/Commercial Fund 234 Supplemental Pension Contribution $ - $ 477 Establish transfer to the General Benefits Fund for an additional contribution to the City’s irrevocable Section 115 Pension Trust Fund Public Art Fund 207 Supplemental Pension Contribution $ - $ 4,818 Establish transfer to the General Benefits Fund for an additional contribution to the City’s irrevocable Section 115 Pension Trust Fund Residential Parking Permit (RPP) Fund 239 Supplemental Pension Contribution $ - $ 8,093 Establish transfer to the General Benefits Fund for an additional contribution to the City’s irrevocable Section 115 Pension Trust Fund University Avenue Fund 236 Supplemental Pension Contribution $ - $ 13,694 Establish transfer to the General Benefits Fund for an additional contribution to the City’s irrevocable Section 115 Pension Trust Fund $ - $ 31,915 TOTAL ADJUSTMENT $ - $ 5,240,749 SPECIAL REVENUE FUNDS SPECIAL REVENUE FUNDS SUBTOTAL 40 of 40 Attachment B Q2 2018 2019 2020 POLICE DEPARTMENT Overtime Expense Adopted Budget $1,700,000 $1,776,500 $1,842,231 Modified Budget 1,700,000 1,812,931 1,842,231 Net Overtime Cost - see below 347,677 185,811 413,439 Variance to Budget 1,352,323 1,627,120 1,428,792 Overtime Net Cost Actual Expense $2,286,527 $2,604,366 $1,504,048 Less Reimbursements California OES/FEMA (Strike Teams)- 36,431 - Stanford Communications 75,275 91,001 61,037 Utilities Communications Reimbursement 38,227 46,158 30,022 Local Agencies (A)11,431 12,172 5,132 Police Service Fees 73,600 125,025 39,437 Total Reimbursements 198,533 310,787 135,628 Less Department Vacancies 1,740,318 2,107,768 954,981 Net Overtime Cost $347,677 $185,811 $413,439 Department Vacancies (number of days)5,777 7,538 3,336 Workers' Compensation Cases 8 24 13Department Disabilities (number of days)219 217 273 FIRE DEPARTMENT Overtime Expense Adopted Budget $1,396,436 $1,911,761 $1,672,872 Modified Budget (B)1,571,436 2,093,761 2,086,872 Net Overtime Cost - see below 2,675,517 2,403,254 1,219,924 Variance to Budget (1,104,081) ($309,493)$866,948 Overtime Net Cost Actual Expense $3,839,426 $3,047,510 $1,339,240 Less Reimbursements California OES/FEMA (Strike Teams) (B)489,062 182,000 114,000 Total Reimbursements 489,062 182,000 114,000 Less Department Vacancies 674,847 462,256 5,316 Net Overtime Cost $2,675,517 $2,403,254 $1,219,924 Department Vacancies (number of days)5,293 1,229 12 Workers' Compensation Cases 4 26 7 Department Disabilities (number of days)732 343 31 NOTES: (A)Includes Animal Control Services contract with Los Altos and Los Altos Hills. (B)FY 2020 includes overtime adjustments recommended as part of the FY 2020 Mid-Year review for an overall increase in the overtime expense budget and confirmed Strike Team reimbursements in the Fire Department. Public Safety Departments Overtime Analysis for Fiscal Years 2018 through 2020 2/4/2020 City of Palo Alto SEIU Hourly Salary Schedule  2018 ‐ 2020 Steps Rate Steps Rate Steps Rate Steps Rate Steps Rate Steps Rate Step 1 $22.90 Step 1 $23.49 Step 1 $23.49 Step 1 $24.09 Step 1 $24.09 Step 1 $24.58 Step 2 $24.11 Step 2 $24.73 Step 2 $24.73 Step 2 $25.36 Step 2 $25.36 Step 2 $25.87 Step 3 $25.38 Step 3 $26.03 Step 3 $26.03 Step 3 $26.69 Step 3 $26.69 Step 3 $27.23 Step 4 $26.72 Step 4 $27.40 Step 4 $27.40 Step 4 $28.09 Step 4 $28.09 Step 4 $28.66 Step 5 $28.13 Step 5 $28.84 Step 5 $28.84 Step 5 $29.57 Step 5 $29.57 Step 5 $30.17 Step 1 $27.35 Step 1 $28.04 Step 1 $28.04 Step 1 $28.75 Step 1 $28.75 Step 1 $29.33 Step 2 $28.79 Step 2 $29.52 Step 2 $29.52 Step 2 $30.26 Step 2 $30.26 Step 2 $30.87 Step 3 $30.31 Step 3 $31.07 Step 3 $31.07 Step 3 $31.85 Step 3 $31.85 Step 3 $32.49 Step 4 $31.90 Step 4 $32.70 Step 4 $32.70 Step 4 $33.53 Step 4 $33.53 Step 4 $34.20 Step 5 $33.58 Step 5 $34.42 Step 5 $34.42 Step 5 $35.29 Step 5 $35.29 Step 5 $36.00 Step 1 $22.90 Step 1 $23.49 Step 1 $23.49 Step 1 $24.09 Step 1 $24.09 Step 1 $24.58 Step 2 $24.11 Step 2 $24.73 Step 2 $24.73 Step 2 $25.36 Step 2 $25.36 Step 2 $25.87 Step 3 $25.38 Step 3 $26.03 Step 3 $26.03 Step 3 $26.69 Step 3 $26.69 Step 3 $27.23 Step 4 $26.72 Step 4 $27.40 Step 4 $27.40 Step 4 $28.09 Step 4 $28.09 Step 4 $28.66 Step 5 $28.13 Step 5 $28.84 Step 5 $28.84 Step 5 $29.57 Step 5 $29.57 Step 5 $30.17 Step 1 $21.17 Step 1 $21.70 Step 1 $21.70 Step 1 $22.24 Step 1 $22.24 Step 1 $22.69 Step 2 $22.28 Step 2 $22.84 Step 2 $22.84 Step 2 $23.41 Step 2 $23.41 Step 2 $23.88 Step 3 $23.45 Step 3 $24.04 Step 3 $24.04 Step 3 $24.64 Step 3 $24.64 Step 3 $25.14 Step 4 $24.68 Step 4 $25.30 Step 4 $25.30 Step 4 $25.94 Step 4 $25.94 Step 4 $26.46 Step 5 $25.98 Step 5 $26.63 Step 5 $26.63 Step 5 $27.30 Step 5 $27.30 Step 5 $27.85 Step 1 $18.56 Step 1 $19.03 Step 1 $19.03 Step 1 $19.50 Step 1 $19.50 Step 1 $19.90 Step 2 $19.54 Step 2 $20.03 Step 2 $20.03 Step 2 $20.53 Step 2 $20.53 Step 2 $20.95 Step 3 $20.57 Step 3 $21.08 Step 3 $21.08 Step 3 $21.61 Step 3 $21.61 Step 3 $22.05 Step 4 $21.65 Step 4 $22.19 Step 4 $22.19 Step 4 $22.75 Step 4 $22.75 Step 4 $23.21 Step 5 $22.79 Step 5 $23.36 Step 5 $23.36 Step 5 $23.95 Step 5 $23.95 Step 5 $24.43 Step 1 $15.01 Step 1 $15.39 Step 1 $15.39 Step 1 $15.78 Step 1 $15.78 Step 1 $16.09 Step 2 $15.80 Step 2 $16.20 Step 2 $16.20 Step 2 $16.61 Step 2 $16.61 Step 2 $16.94 Step 3 $16.63 Step 3 $17.05 Step 3 $17.05 Step 3 $17.48 Step 3 $17.48 Step 3 $17.83 Step 4 $17.50 Step 4 $17.95 Step 4 $17.95 Step 4 $18.40 Step 4 $18.40 Step 4 $18.77 Step 5 $18.42 Step 5 $18.89 Step 5 $18.89 Step 5 $19.37 Step 5 $19.37 Step 5 $19.76 Step 1 $17.54 Step 1 $17.97 Step 1 $17.97 Step 1 $18.44 Step 1 $18.44 Step 1 $18.81 Step 2 $18.46 Step 2 $18.92 Step 2 $18.92 Step 2 $19.41 Step 2 $19.41 Step 2 $19.80 Step 3 $19.43 Step 3 $19.92 Step 3 $19.92 Step 3 $20.43 Step 3 $20.43 Step 3 $20.84 Step 4 $20.45 Step 4 $20.97 Step 4 $20.97 Step 4 $21.50 Step 4 $21.50 Step 4 $21.94 Step 5 $21.53 Step 5 $22.07 Step 5 $22.07 Step 5 $22.63 Step 5 $22.63 Step 5 $23.09 Step 1 $17.24 Step 1 $17.68 Step 1 $17.68 Step 1 $18.14 Step 1 $18.14 Step 1 $18.50 Step 2 $18.15 Step 2 $18.61 Step 2 $18.61 Step 2 $19.09 Step 2 $19.09 Step 2 $19.47 Step 3 $19.11 Step 3 $19.59 Step 3 $19.59 Step 3 $20.09 Step 3 $20.09 Step 3 $20.49 Step 4 $20.12 Step 4 $20.62 Step 4 $20.62 Step 4 $21.15 Step 4 $21.15 Step 4 $21.57 Step 5 $21.18 Step 5 $21.71 Step 5 $21.71 Step 5 $22.26 Step 5 $22.26 Step 5 $22.71 9000 Non-exempt Administrative Specialist I – H 9002 Non-exempt Assistant Park Ranger - H 9003 Non-exempt Building Service Person - H Job Title 9001 Non-exempt Job Code FLSA Non-exempt House Manager - H Clerical Assistant - H 9005 Non-exempt Custodial Aide - H 9006 Non-exempt Custodial Assistant - H 9007 9004 Non-exempt Administrative Specialist II - H Salary Effective 7/1/2018 Salary Effective 7/1/2019 Salary Effective 7/1/2020 Salary Effective upon MOA adoption Salary Effective 1/1/2019 (Min Wage- $15) Salary Effective 1/1/2020 (Min Wage- $15.40) Attachment C City of Palo Alto SEIU Hourly Salary Schedule  2018 ‐ 2020 Steps Rate Steps Rate Steps Rate Steps Rate Steps Rate Steps Rate Job TitleJob Code FLSA Salary Effective 7/1/2018 Salary Effective 7/1/2019 Salary Effective 7/1/2020 Salary Effective upon MOA adoption Salary Effective 1/1/2019 (Min Wage- $15) Salary Effective 1/1/2020 (Min Wage- $15.40) Step 1 $13.88 Step 1 $14.23 Step 1 $15.00 Step 1 $15.23 Step 1 $15.40 Step 1 $15.70 Step 2 $14.61 Step 2 $14.98 Step 2 $15.75 Step 2 $16.03 Step 2 $16.21 Step 2 $16.53 Step 3 $15.38 Step 3 $15.77 Step 3 $16.54 Step 3 $16.87 Step 3 $17.06 Step 3 $17.40 Step 4 $16.19 Step 4 $16.60 Step 4 $17.36 Step 4 $17.76 Step 4 $17.96 Step 4 $18.32 Step 5 $17.04 Step 5 $17.47 Step 5 $18.23 Step 5 $18.69 Step 5 $18.90 Step 5 $19.28 Step 1 $21.66 Step 1 $22.21 Step 1 $22.21 Step 1 $22.76 Step 1 $22.76 Step 1 $23.22 Step 2 $22.80 Step 2 $23.38 Step 2 $23.38 Step 2 $23.96 Step 2 $23.96 Step 2 $24.44 Step 3 $24.00 Step 3 $24.61 Step 3 $24.61 Step 3 $25.22 Step 3 $25.22 Step 3 $25.73 Step 4 $25.26 Step 4 $25.90 Step 4 $25.90 Step 4 $26.55 Step 4 $26.55 Step 4 $27.08 Step 5 $26.59 Step 5 $27.26 Step 5 $27.26 Step 5 $27.95 Step 5 $27.95 Step 5 $28.51 Step 1 $26.37 Step 1 $27.03 Step 1 $27.03 Step 1 $27.71 Step 1 $27.71 Step 1 $28.26 Step 2 $27.76 Step 2 $28.45 Step 2 $28.45 Step 2 $29.17 Step 2 $29.17 Step 2 $29.75 Step 3 $29.22 Step 3 $29.95 Step 3 $29.95 Step 3 $30.70 Step 3 $30.70 Step 3 $31.32 Step 4 $30.76 Step 4 $31.53 Step 4 $31.53 Step 4 $32.32 Step 4 $32.32 Step 4 $32.97 Step 5 $32.38 Step 5 $33.19 Step 5 $33.19 Step 5 $34.02 Step 5 $34.02 Step 5 $34.71 Step 1 $30.35 Step 1 $31.12 Step 1 $31.12 Step 1 $31.89 Step 1 $31.89 Step 1 $32.54 Step 2 $31.95 Step 2 $32.76 Step 2 $32.76 Step 2 $33.57 Step 2 $33.57 Step 2 $34.25 Step 3 $33.63 Step 3 $34.48 Step 3 $34.48 Step 3 $35.34 Step 3 $35.34 Step 3 $36.05 Step 4 $35.40 Step 4 $36.29 Step 4 $36.29 Step 4 $37.20 Step 4 $37.20 Step 4 $37.95 Step 5 $37.26 Step 5 $38.20 Step 5 $38.20 Step 5 $39.16 Step 5 $39.16 Step 5 $39.95 Step 1 $27.85 Step 1 $28.56 Step 1 $28.56 Step 1 $29.26 Step 1 $29.26 Step 1 $29.86 Step 2 $29.32 Step 2 $30.06 Step 2 $30.06 Step 2 $30.80 Step 2 $30.80 Step 2 $31.43 Step 3 $30.86 Step 3 $31.64 Step 3 $31.64 Step 3 $32.42 Step 3 $32.42 Step 3 $33.08 Step 4 $32.48 Step 4 $33.30 Step 4 $33.30 Step 4 $34.13 Step 4 $34.13 Step 4 $34.82 Step 5 $34.19 Step 5 $35.05 Step 5 $35.05 Step 5 $35.93 Step 5 $35.93 Step 5 $36.65 Step 1 $20.74 Step 1 $21.26 Step 1 $21.26 Step 1 $21.79 Step 1 $21.79 Step 1 $22.24 Step 2 $21.83 Step 2 $22.38 Step 2 $22.38 Step 2 $22.94 Step 2 $22.94 Step 2 $23.41 Step 3 $22.98 Step 3 $23.56 Step 3 $23.56 Step 3 $24.15 Step 3 $24.15 Step 3 $24.64 Step 4 $24.19 Step 4 $24.80 Step 4 $24.80 Step 4 $25.42 Step 4 $25.42 Step 4 $25.94 Step 5 $25.46 Step 5 $26.10 Step 5 $26.10 Step 5 $26.76 Step 5 $26.76 Step 5 $27.30 Step 1 $13.88 Step 1 $14.23 Step 1 $15.00 Step 1 $15.23 Step 1 $15.40 Step 1 $15.70 Step 2 $14.61 Step 2 $14.98 Step 2 $15.75 Step 2 $16.03 Step 2 $16.21 Step 2 $16.53 Step 3 $15.38 Step 3 $15.77 Step 3 $16.54 Step 3 $16.87 Step 3 $17.06 Step 3 $17.40 Step 4 $16.19 Step 4 $16.60 Step 4 $17.36 Step 4 $17.76 Step 4 $17.96 Step 4 $18.32 Step 5 $17.04 Step 5 $17.47 Step 5 $18.23 Step 5 $18.69 Step 5 $18.90 Step 5 $19.28 Step 1 $16.69 Step 1 $17.10 Step 1 $17.10 Step 1 $17.54 Step 1 $17.54 Step 1 $17.90 Step 2 $17.57 Step 2 $18.00 Step 2 $18.00 Step 2 $18.46 Step 2 $18.46 Step 2 $18.84 Step 3 $18.49 Step 3 $18.95 Step 3 $18.95 Step 3 $19.43 Step 3 $19.43 Step 3 $19.83 Step 4 $19.46 Step 4 $19.95 Step 4 $19.95 Step 4 $20.45 Step 4 $20.45 Step 4 $20.87 Step 5 $20.48 Step 5 $21.00 Step 5 $21.00 Step 5 $21.53 Step 5 $21.53 Step 5 $21.97 9013 Non-exempt Library Page - H 9012 Non-exempt 9009 Non-exempt Instructor I - H Instructor II - H 9036 Non-exempt Instructor III-H 9011 Non-exempt Librarian - H 9010 Non-exempt 9014 Non-exempt Maintenance Assistant - H 9008 Non-exempt Instructor Aide - H Library Clerk - H City of Palo Alto SEIU Hourly Salary Schedule  2018 ‐ 2020 Steps Rate Steps Rate Steps Rate Steps Rate Steps Rate Steps Rate Job TitleJob Code FLSA Salary Effective 7/1/2018 Salary Effective 7/1/2019 Salary Effective 7/1/2020 Salary Effective upon MOA adoption Salary Effective 1/1/2019 (Min Wage- $15) Salary Effective 1/1/2020 (Min Wage- $15.40) Step 1 $16.69 Step 1 $17.10 Step 1 $17.10 Step 1 $17.54 Step 1 $17.54 Step 1 $17.90 Step 2 $17.57 Step 2 $18.00 Step 2 $18.00 Step 2 $18.46 Step 2 $18.46 Step 2 $18.84 Step 3 $18.49 Step 3 $18.95 Step 3 $18.95 Step 3 $19.43 Step 3 $19.43 Step 3 $19.83 Step 4 $19.46 Step 4 $19.95 Step 4 $19.95 Step 4 $20.45 Step 4 $20.45 Step 4 $20.87 Step 5 $20.48 Step 5 $21.00 Step 5 $21.00 Step 5 $21.53 Step 5 $21.53 Step 5 $21.97 Step 1 $20.74 Step 1 $21.26 Step 1 $21.26 Step 1 $21.79 Step 1 $21.79 Step 1 $22.24 Step 2 $21.83 Step 2 $22.38 Step 2 $22.38 Step 2 $22.94 Step 2 $22.94 Step 2 $23.41 Step 3 $22.98 Step 3 $23.56 Step 3 $23.56 Step 3 $24.15 Step 3 $24.15 Step 3 $24.64 Step 4 $24.19 Step 4 $24.80 Step 4 $24.80 Step 4 $25.42 Step 4 $25.42 Step 4 $25.94 Step 5 $25.46 Step 5 $26.10 Step 5 $26.10 Step 5 $26.76 Step 5 $26.76 Step 5 $27.30 Step 1 $30.00 Step 1 $30.76 Step 1 $30.76 Step 1 $31.52 Step 1 $31.52 Step 1 $32.17 Step 2 $31.58 Step 2 $32.38 Step 2 $32.38 Step 2 $33.18 Step 2 $33.18 Step 2 $33.86 Step 3 $33.24 Step 3 $34.08 Step 3 $34.08 Step 3 $34.93 Step 3 $34.93 Step 3 $35.64 Step 4 $34.99 Step 4 $35.87 Step 4 $35.87 Step 4 $36.77 Step 4 $36.77 Step 4 $37.52 Step 5 $36.83 Step 5 $37.76 Step 5 $37.76 Step 5 $38.71 Step 5 $38.71 Step 5 $39.49 Step 1 $22.90 Step 1 $23.49 Step 1 $23.49 Step 1 $24.09 Step 1 $24.09 Step 1 $24.58 Step 2 $24.11 Step 2 $24.73 Step 2 $24.73 Step 2 $25.36 Step 2 $25.36 Step 2 $25.87 Step 3 $25.38 Step 3 $26.03 Step 3 $26.03 Step 3 $26.69 Step 3 $26.69 Step 3 $27.23 Step 4 $26.72 Step 4 $27.40 Step 4 $27.40 Step 4 $28.09 Step 4 $28.09 Step 4 $28.66 Step 5 $28.13 Step 5 $28.84 Step 5 $28.84 Step 5 $29.57 Step 5 $29.57 Step 5 $30.17 Step 1 $13.88 Step 1 $14.23 Step 1 $15.00 Step 1 $15.23 Step 1 $15.40 Step 1 $15.70 Step 2 $14.61 Step 2 $14.98 Step 2 $15.75 Step 2 $16.03 Step 2 $16.21 Step 2 $16.53 Step 3 $15.38 Step 3 $15.77 Step 3 $16.54 Step 3 $16.87 Step 3 $17.06 Step 3 $17.40 Step 4 $16.19 Step 4 $16.60 Step 4 $17.36 Step 4 $17.76 Step 4 $17.96 Step 4 $18.32 Step 5 $17.04 Step 5 $17.47 Step 5 $18.23 Step 5 $18.69 Step 5 $18.90 Step 5 $19.28 Step 1 $13.88 Step 1 $14.23 Step 1 $15.00 Step 1 $15.23 Step 1 $15.40 Step 1 $15.70 Step 2 $14.61 Step 2 $14.98 Step 2 $15.75 Step 2 $16.03 Step 2 $16.21 Step 2 $16.53 Step 3 $15.38 Step 3 $15.77 Step 3 $16.54 Step 3 $16.87 Step 3 $17.06 Step 3 $17.40 Step 4 $16.19 Step 4 $16.60 Step 4 $17.36 Step 4 $17.76 Step 4 $17.96 Step 4 $18.32 Step 5 $17.04 Step 5 $17.47 Step 5 $18.23 Step 5 $18.69 Step 5 $18.90 Step 5 $19.28 Step 1 $15.38 Step 1 $15.77 Step 1 $16.45 Step 1 $16.79 Step 1 $17.06 Step 1 $17.40 Step 2 $16.19 Step 2 $16.60 Step 2 $17.32 Step 2 $17.67 Step 2 $17.96 Step 2 $18.32 Step 3 $17.04 Step 3 $17.47 Step 3 $18.23 Step 3 $18.60 Step 3 $18.90 Step 3 $19.28 Step 4 $17.94 Step 4 $18.39 Step 4 $19.14 Step 4 $19.58 Step 4 $19.89 Step 4 $20.29 Step 5 $18.88 Step 5 $19.36 Step 5 $20.10 Step 5 $20.61 Step 5 $20.94 Step 5 $21.36 Step 1 $17.50 Step 1 $17.94 Step 1 $18.14 Step 1 $18.51 Step 1 $18.90 Step 1 $19.29 Step 2 $18.42 Step 2 $18.88 Step 2 $19.10 Step 2 $19.48 Step 2 $19.89 Step 2 $20.30 Step 3 $19.39 Step 3 $19.87 Step 3 $20.10 Step 3 $20.50 Step 3 $20.94 Step 3 $21.37 Step 4 $20.41 Step 4 $20.92 Step 4 $21.11 Step 4 $21.58 Step 4 $22.04 Step 4 $22.49 Step 5 $21.48 Step 5 $22.02 Step 5 $22.16 Step 5 $22.72 Step 5 $23.20 Step 5 $23.67 9022 Non-exempt 9019 Non-exempt 9015 9021 Non-exempt Recreation Leader II - H Open Space Technician - H 9016 Non-exempt Print Shop Assistant - H 9018 Non-exempt Project Specialist - H 9017 Non-exempt Project Construction Inspector - H Recreation Aide - H 9020 Non-exempt Recreation Leader I - H Non-exempt Recreation Leader III - H City of Palo Alto SEIU Hourly Salary Schedule  2018 ‐ 2020 Steps Rate Steps Rate Steps Rate Steps Rate Steps Rate Steps Rate Job TitleJob Code FLSA Salary Effective 7/1/2018 Salary Effective 7/1/2019 Salary Effective 7/1/2020 Salary Effective upon MOA adoption Salary Effective 1/1/2019 (Min Wage- $15) Salary Effective 1/1/2020 (Min Wage- $15.40) Step 1 $16.59 Step 1 $17.01 Step 1 $17.01 Step 1 $17.43 Step 1 $17.43 Step 1 $17.78 Step 2 $17.46 Step 2 $17.91 Step 2 $17.91 Step 2 $18.35 Step 2 $18.35 Step 2 $18.72 Step 3 $18.38 Step 3 $18.85 Step 3 $18.85 Step 3 $19.32 Step 3 $19.32 Step 3 $19.71 Step 4 $19.35 Step 4 $19.84 Step 4 $19.84 Step 4 $20.34 Step 4 $20.34 Step 4 $20.75 Step 5 $20.37 Step 5 $20.88 Step 5 $20.88 Step 5 $21.41 Step 5 $21.41 Step 5 $21.84 Step 1 $18.56 Step 1 $19.03 Step 1 $19.03 Step 1 $19.50 Step 1 $19.50 Step 1 $19.90 Step 2 $19.54 Step 2 $20.03 Step 2 $20.03 Step 2 $20.53 Step 2 $20.53 Step 2 $20.95 Step 3 $20.57 Step 3 $21.08 Step 3 $21.08 Step 3 $21.61 Step 3 $21.61 Step 3 $22.05 Step 4 $21.65 Step 4 $22.19 Step 4 $22.19 Step 4 $22.75 Step 4 $22.75 Step 4 $23.21 Step 5 $22.79 Step 5 $23.36 Step 5 $23.36 Step 5 $23.95 Step 5 $23.95 Step 5 $24.43 Step 1 $13.88 Step 1 $14.23 Step 1 $15.00 Step 1 $15.23 Step 1 $15.40 Step 1 $15.70 Step 2 $14.61 Step 2 $14.98 Step 2 $15.75 Step 2 $16.03 Step 2 $16.21 Step 2 $16.53 Step 3 $15.38 Step 3 $15.77 Step 3 $16.54 Step 3 $16.87 Step 3 $17.06 Step 3 $17.40 Step 4 $16.19 Step 4 $16.60 Step 4 $17.36 Step 4 $17.76 Step 4 $17.96 Step 4 $18.32 Step 5 $17.04 Step 5 $17.47 Step 5 $18.23 Step 5 $18.69 Step 5 $18.90 Step 5 $19.28 Step 1 $21.66 Step 1 $22.21 Step 1 $22.21 Step 1 $22.76 Step 1 $22.76 Step 1 $23.22 Step 2 $22.80 Step 2 $23.38 Step 2 $23.38 Step 2 $23.96 Step 2 $23.96 Step 2 $24.44 Step 3 $24.00 Step 3 $24.61 Step 3 $24.61 Step 3 $25.22 Step 3 $25.22 Step 3 $25.73 Step 4 $25.26 Step 4 $25.90 Step 4 $25.90 Step 4 $26.55 Step 4 $26.55 Step 4 $27.08 Step 5 $26.59 Step 5 $27.26 Step 5 $27.26 Step 5 $27.95 Step 5 $27.95 Step 5 $28.51 Step 1 $26.37 Step 1 $27.03 Step 1 $27.03 Step 1 $27.71 Step 1 $27.71 Step 1 $28.26 Step 2 $27.76 Step 2 $28.45 Step 2 $28.45 Step 2 $29.17 Step 2 $29.17 Step 2 $29.75 Step 3 $29.22 Step 3 $29.95 Step 3 $29.95 Step 3 $30.70 Step 3 $30.70 Step 3 $31.32 Step 4 $30.76 Step 4 $31.53 Step 4 $31.53 Step 4 $32.32 Step 4 $32.32 Step 4 $32.97 Step 5 $32.38 Step 5 $33.19 Step 5 $33.19 Step 5 $34.02 Step 5 $34.02 Step 5 $34.71 Step 1 $30.35 Step 1 $31.12 Step 1 $31.12 Step 1 $31.89 Step 1 $31.89 Step 1 $32.54 Step 2 $31.95 Step 2 $32.76 Step 2 $32.76 Step 2 $33.57 Step 2 $33.57 Step 2 $34.25 Step 3 $33.63 Step 3 $34.48 Step 3 $34.48 Step 3 $35.34 Step 3 $35.34 Step 3 $36.05 Step 4 $35.40 Step 4 $36.29 Step 4 $36.29 Step 4 $37.20 Step 4 $37.20 Step 4 $37.95 Step 5 $37.26 Step 5 $38.20 Step 5 $38.20 Step 5 $39.16 Step 5 $39.16 Step 5 $39.95 Step 1 $15.38 Step 1 $15.77 Step 1 $15.77 Step 1 $16.17 Step 1 $16.17 Step 1 $16.50 Step 2 $16.19 Step 2 $16.60 Step 2 $16.60 Step 2 $17.02 Step 2 $17.02 Step 2 $17.37 Step 3 $17.04 Step 3 $17.47 Step 3 $17.47 Step 3 $17.92 Step 3 $17.92 Step 3 $18.28 Step 4 $17.94 Step 4 $18.39 Step 4 $18.39 Step 4 $18.86 Step 4 $18.86 Step 4 $19.24 Step 5 $18.88 Step 5 $19.36 Step 5 $19.36 Step 5 $19.85 Step 5 $19.85 Step 5 $20.25 Step 1 $22.90 Step 1 $23.49 Step 1 $23.49 Step 1 $24.09 Step 1 $24.09 Step 1 $24.58 Step 2 $24.11 Step 2 $24.73 Step 2 $24.73 Step 2 $25.36 Step 2 $25.36 Step 2 $25.87 Step 3 $25.38 Step 3 $26.03 Step 3 $26.03 Step 3 $26.69 Step 3 $26.69 Step 3 $27.23 Step 4 $26.72 Step 4 $27.40 Step 4 $27.40 Step 4 $28.09 Step 4 $28.09 Step 4 $28.66 Step 5 $28.13 Step 5 $28.84 Step 5 $28.84 Step 5 $29.57 Step 5 $29.57 Step 5 $30.17 9030 Non-exempt 9028 Non-exempt 9025 Non-exempt 9026 Non-exempt Arts & Science Aide - H 9027 Non-exempt Arts & Science Professional I - H 9023 Non-exempt Stock Clerk - H Arts & Science Professional II - H 9037 Non-exempt Arts & Science Professional III - H 9029 Non-exempt Arts & Science Technician - H Zoological Assistant - H Technical Specialist - H City of Palo Alto SEIU Hourly Salary Schedule  2018 ‐ 2020 Steps Rate Steps Rate Steps Rate Steps Rate Steps Rate Steps Rate Job TitleJob Code FLSA Salary Effective 7/1/2018 Salary Effective 7/1/2019 Salary Effective 7/1/2020 Salary Effective upon MOA adoption Salary Effective 1/1/2019 (Min Wage- $15) Salary Effective 1/1/2020 (Min Wage- $15.40) Min Max Min Max Min Max Min Max Min Max Min Max 13.91$ 61.80$ 14.25$ 63.35$ 15.00$ 63.35$ 15.38$ 64.93$ $15.40 $64.93 15.71$ 66.23$ Min Max Min Max Min Max Min Max Min Max Min Max 13.91$ 61.80$ 14.25$ 63.35$ 15.00$ 63.35$ 15.38$ 64.93$ $15.40 $64.93 15.71$ 66.23$ Min Max Min Max Min Max Min Max Min Max Min Max 13.91$ 82.40$ 14.25$ 84.46$ 15.00$ 84.46$ 15.38$ 86.57$ $15.40 $86.57 15.71$ 88.30$ Min Max Min Max Min Max Min Max Min Max Min Max 13.91$ 82.40$ 14.25$ 84.46$ 15.00$ 84.46$ 15.38$ 86.57$ $15.40 $86.57 15.71$ 88.30$ 9034 Non-exempt Staff Specialist - H 9035 Non-exempt 9032 Non-exempt 9033 Non-exempt Journey Level Laborer - H General Laborer - H Inspector - H City of Palo Alto Limited Hourly Salary Schedule 2018 - 2020 Steps Rate Steps Rate Steps Rate Steps Rate Steps Rate Steps Rate Step 1 $22.24 Step 1 $23.49 Step 1 $23.49 Step 1 $24.09 Step 1 $24.09 Step 1 $24.58 Step 2 $23.41 Step 2 $24.73 Step 2 $24.73 Step 2 $25.36 Step 2 $25.36 Step 2 $25.87 Step 3 $24.64 Step 3 $26.03 Step 3 $26.03 Step 3 $26.69 Step 3 $26.69 Step 3 $27.23 Step 4 $25.94 Step 4 $27.40 Step 4 $27.40 Step 4 $28.09 Step 4 $28.09 Step 4 $28.66 Step 5 $27.31 Step 5 $28.84 Step 5 $28.84 Step 5 $29.57 Step 5 $29.57 Step 5 $30.17 Step 1 $26.55 Step 1 $28.04 Step 1 $28.04 Step 1 $28.75 Step 1 $28.75 Step 1 $29.33 Step 2 $27.95 Step 2 $29.52 Step 2 $29.52 Step 2 $30.26 Step 2 $30.26 Step 2 $30.87 Step 3 $29.42 Step 3 $31.07 Step 3 $31.07 Step 3 $31.85 Step 3 $31.85 Step 3 $32.49 Step 4 $30.97 Step 4 $32.70 Step 4 $32.70 Step 4 $33.53 Step 4 $33.53 Step 4 $34.20 Step 5 $32.60 Step 5 $34.42 Step 5 $34.42 Step 5 $35.29 Step 5 $35.29 Step 5 $36.00 Step 1 $22.24 Step 1 $23.49 Step 1 $23.49 Step 1 $24.09 Step 1 $24.09 Step 1 $24.58 Step 2 $23.41 Step 2 $24.73 Step 2 $24.73 Step 2 $25.36 Step 2 $25.36 Step 2 $25.87 Step 3 $24.64 Step 3 $26.03 Step 3 $26.03 Step 3 $26.69 Step 3 $26.69 Step 3 $27.23 Step 4 $25.94 Step 4 $27.40 Step 4 $27.40 Step 4 $28.09 Step 4 $28.09 Step 4 $28.66 Step 5 $27.31 Step 5 $28.84 Step 5 $28.84 Step 5 $29.57 Step 5 $29.57 Step 5 $30.17 Step 1 $20.54 Step 1 $21.70 Step 1 $21.70 Step 1 $22.24 Step 1 $22.24 Step 1 $22.69 Step 2 $21.62 Step 2 $22.84 Step 2 $22.84 Step 2 $23.41 Step 2 $23.41 Step 2 $23.88 Step 3 $22.76 Step 3 $24.04 Step 3 $24.04 Step 3 $24.64 Step 3 $24.64 Step 3 $25.14 Step 4 $23.96 Step 4 $25.30 Step 4 $25.30 Step 4 $25.94 Step 4 $25.94 Step 4 $26.46 Step 5 $25.22 Step 5 $26.63 Step 5 $26.63 Step 5 $27.30 Step 5 $27.30 Step 5 $27.85 Step 1 $18.01 Step 1 $19.03 Step 1 $19.03 Step 1 $19.50 Step 1 $19.50 Step 1 $19.90 Step 2 $18.96 Step 2 $20.03 Step 2 $20.03 Step 2 $20.53 Step 2 $20.53 Step 2 $20.95 Step 3 $19.96 Step 3 $21.08 Step 3 $21.08 Step 3 $21.61 Step 3 $21.61 Step 3 $22.05 Step 4 $21.01 Step 4 $22.19 Step 4 $22.19 Step 4 $22.75 Step 4 $22.75 Step 4 $23.21 Step 5 $22.12 Step 5 $23.36 Step 5 $23.36 Step 5 $23.95 Step 5 $23.95 Step 5 $24.43 Step 1 $14.56 Step 1 $15.39 Step 1 $15.39 Step 1 $15.78 Step 1 $15.78 Step 1 $16.09 Step 2 $15.33 Step 2 $16.20 Step 2 $16.20 Step 2 $16.61 Step 2 $16.61 Step 2 $16.94 Step 3 $16.14 Step 3 $17.05 Step 3 $17.05 Step 3 $17.48 Step 3 $17.48 Step 3 $17.83 Step 4 $16.99 Step 4 $17.95 Step 4 $17.95 Step 4 $18.40 Step 4 $18.40 Step 4 $18.77 Step 5 $17.88 Step 5 $18.89 Step 5 $18.89 Step 5 $19.37 Step 5 $19.37 Step 5 $19.76 Step 1 $17.03 Step 1 $17.97 Step 1 $17.97 Step 1 $18.44 Step 1 $18.44 Step 1 $18.81 Step 2 $17.93 Step 2 $18.92 Step 2 $18.92 Step 2 $19.41 Step 2 $19.41 Step 2 $19.80 Step 3 $18.87 Step 3 $19.92 Step 3 $19.92 Step 3 $20.43 Step 3 $20.43 Step 3 $20.84 Step 4 $19.86 Step 4 $20.97 Step 4 $20.97 Step 4 $21.50 Step 4 $21.50 Step 4 $21.94 Step 5 $20.90 Step 5 $22.07 Step 5 $22.07 Step 5 $22.63 Step 5 $22.63 Step 5 $23.09 Step 1 $16.74 Step 1 $17.68 Step 1 $17.68 Step 1 $18.14 Step 1 $18.14 Step 1 $18.50 Step 2 $17.62 Step 2 $18.61 Step 2 $18.61 Step 2 $19.09 Step 2 $19.09 Step 2 $19.47 Step 3 $18.55 Step 3 $19.59 Step 3 $19.59 Step 3 $20.09 Step 3 $20.09 Step 3 $20.49 Step 4 $19.53 Step 4 $20.62 Step 4 $20.62 Step 4 $21.15 Step 4 $21.15 Step 4 $21.57 Step 5 $20.56 Step 5 $21.71 Step 5 $21.71 Step 5 $22.26 Step 5 $22.26 Step 5 $22.71 Salary Effective 1/1/2020 (Min Wage- $15.40)FLSA Non-exempt House Manager Clerical Assistant Non-exempt Custodial Aide Non-exempt Custodial Assistant Building Service Person Non-exempt Non-exempt Administrative Specialist I Non-exempt Non-exempt Assistant Park Ranger Non-exempt Salary Effective 7/1/2020 Salary Effective 1/1/2018 (Min Wage $13.50) Salary Effective 01/01/2019 (Min Wage- $15) Administrative Specialist II Salary Effective 07/01/2018 Salary Effective 7/1/2019Job Title 917 918 919 920 Job Code 910 913 915 916 Attachment D City of Palo Alto Limited Hourly Salary Schedule 2018 - 2020 Steps Rate Steps Rate Steps Rate Steps Rate Steps Rate Steps Rate Salary Effective 1/1/2020 (Min Wage- $15.40)FLSA Salary Effective 7/1/2020 Salary Effective 1/1/2018 (Min Wage $13.50) Salary Effective 01/01/2019 (Min Wage- $15) Salary Effective 07/01/2018 Salary Effective 7/1/2019Job TitleJob Code Step 1 $13.50 Step 1 $14.23 Step 1 $15.00 Step 1 $15.23 Step 1 $15.40 Step 1 $15.70 Step 2 $14.20 Step 2 $14.98 Step 2 $15.75 Step 2 $16.03 Step 2 $16.21 Step 2 $16.53 Step 3 $14.94 Step 3 $15.77 Step 3 $16.54 Step 3 $16.87 Step 3 $17.06 Step 3 $17.40 Step 4 $15.72 Step 4 $16.60 Step 4 $17.36 Step 4 $17.76 Step 4 $17.96 Step 4 $18.32 Step 5 $16.54 Step 5 $17.47 Step 5 $18.23 Step 5 $18.69 Step 5 $18.90 Step 5 $19.28 Step 1 $21.02 Step 1 $22.21 Step 1 $22.21 Step 1 $22.76 Step 1 $22.76 Step 1 $23.22 Step 2 $22.13 Step 2 $23.38 Step 2 $23.38 Step 2 $23.96 Step 2 $23.96 Step 2 $24.44 Step 3 $23.29 Step 3 $24.61 Step 3 $24.61 Step 3 $25.22 Step 3 $25.22 Step 3 $25.73 Step 4 $24.52 Step 4 $25.90 Step 4 $25.90 Step 4 $26.55 Step 4 $26.55 Step 4 $27.08 Step 5 $25.81 Step 5 $27.26 Step 5 $27.26 Step 5 $27.95 Step 5 $27.95 Step 5 $28.51 Step 1 $25.60 Step 1 $27.03 Step 1 $27.03 Step 1 $27.71 Step 1 $27.71 Step 1 $28.26 Step 2 $26.95 Step 2 $28.45 Step 2 $28.45 Step 2 $29.17 Step 2 $29.17 Step 2 $29.75 Step 3 $28.37 Step 3 $29.95 Step 3 $29.95 Step 3 $30.70 Step 3 $30.70 Step 3 $31.32 Step 4 $29.86 Step 4 $31.53 Step 4 $31.53 Step 4 $32.32 Step 4 $32.32 Step 4 $32.97 Step 5 $31.43 Step 5 $33.19 Step 5 $33.19 Step 5 $34.02 Step 5 $34.02 Step 5 $34.71 Step 1 $29.46 Step 1 $31.12 Step 1 $31.12 Step 1 $31.89 Step 1 $31.89 Step 1 $32.54 Step 2 $31.01 Step 2 $32.76 Step 2 $32.76 Step 2 $33.57 Step 2 $33.57 Step 2 $34.25 Step 3 $32.64 Step 3 $34.48 Step 3 $34.48 Step 3 $35.34 Step 3 $35.34 Step 3 $36.05 Step 4 $34.36 Step 4 $36.29 Step 4 $36.29 Step 4 $37.20 Step 4 $37.20 Step 4 $37.95 Step 5 $36.17 Step 5 $38.20 Step 5 $38.20 Step 5 $39.16 Step 5 $39.16 Step 5 $39.95 Step 1 $27.03 Step 1 $28.56 Step 1 $28.56 Step 1 $29.26 Step 1 $29.26 Step 1 $29.86 Step 2 $28.45 Step 2 $30.06 Step 2 $30.06 Step 2 $30.80 Step 2 $30.80 Step 2 $31.43 Step 3 $29.95 Step 3 $31.64 Step 3 $31.64 Step 3 $32.42 Step 3 $32.42 Step 3 $33.08 Step 4 $31.53 Step 4 $33.30 Step 4 $33.30 Step 4 $34.13 Step 4 $34.13 Step 4 $34.82 Step 5 $33.19 Step 5 $35.05 Step 5 $35.05 Step 5 $35.93 Step 5 $35.93 Step 5 $36.65 Step 1 $20.13 Step 1 $21.26 Step 1 $21.26 Step 1 $21.79 Step 1 $21.79 Step 1 $22.24 Step 2 $21.19 Step 2 $22.38 Step 2 $22.38 Step 2 $22.94 Step 2 $22.94 Step 2 $23.41 Step 3 $22.30 Step 3 $23.56 Step 3 $23.56 Step 3 $24.15 Step 3 $24.15 Step 3 $24.64 Step 4 $23.47 Step 4 $24.80 Step 4 $24.80 Step 4 $25.42 Step 4 $25.42 Step 4 $25.94 Step 5 $24.71 Step 5 $26.10 Step 5 $26.10 Step 5 $26.76 Step 5 $26.76 Step 5 $27.30 Step 1 $13.50 Step 1 $14.23 Step 1 $15.00 Step 1 $15.23 Step 1 $15.40 Step 1 $15.70 Step 2 $14.20 Step 2 $14.98 Step 2 $15.75 Step 2 $16.03 Step 2 $16.21 Step 2 $16.53 Step 3 $14.94 Step 3 $15.77 Step 3 $16.54 Step 3 $16.87 Step 3 $17.06 Step 3 $17.40 Step 4 $15.72 Step 4 $16.60 Step 4 $17.36 Step 4 $17.76 Step 4 $17.96 Step 4 $18.32 Step 5 $16.54 Step 5 $17.47 Step 5 $18.23 Step 5 $18.69 Step 5 $18.90 Step 5 $19.28 Step 1 $16.20 Step 1 $17.10 Step 1 $17.10 Step 1 $17.54 Step 1 $17.54 Step 1 $17.90 Step 2 $17.05 Step 2 $18.00 Step 2 $18.00 Step 2 $18.46 Step 2 $18.46 Step 2 $18.84 Step 3 $17.95 Step 3 $18.95 Step 3 $18.95 Step 3 $19.43 Step 3 $19.43 Step 3 $19.83 Step 4 $18.89 Step 4 $19.95 Step 4 $19.95 Step 4 $20.45 Step 4 $20.45 Step 4 $20.87 Step 5 $19.88 Step 5 $21.00 Step 5 $21.00 Step 5 $21.53 Step 5 $21.53 Step 5 $21.97 Instructor I Instructor II Non-exempt Instructor III Non-exempt Non-exempt Non-exempt Instructor Aide Non-exempt Non-exempt Library Page Non-exempt Non-exempt Library Clerk Maintenance Assistant Librarian 925 930 935 921 922 923 982 924 City of Palo Alto Limited Hourly Salary Schedule 2018 - 2020 Steps Rate Steps Rate Steps Rate Steps Rate Steps Rate Steps Rate Salary Effective 1/1/2020 (Min Wage- $15.40)FLSA Salary Effective 7/1/2020 Salary Effective 1/1/2018 (Min Wage $13.50) Salary Effective 01/01/2019 (Min Wage- $15) Salary Effective 07/01/2018 Salary Effective 7/1/2019Job TitleJob Code Step 1 $16.20 Step 1 $17.10 Step 1 $17.10 Step 1 $17.54 Step 1 $17.54 Step 1 $17.90 Step 2 $17.05 Step 2 $18.00 Step 2 $18.00 Step 2 $18.46 Step 2 $18.46 Step 2 $18.84 Step 3 $17.95 Step 3 $18.95 Step 3 $18.95 Step 3 $19.43 Step 3 $19.43 Step 3 $19.83 Step 4 $18.89 Step 4 $19.95 Step 4 $19.95 Step 4 $20.45 Step 4 $20.45 Step 4 $20.87 Step 5 $19.88 Step 5 $21.00 Step 5 $21.00 Step 5 $21.53 Step 5 $21.53 Step 5 $21.97 Step 1 $20.13 Step 1 $21.26 Step 1 $21.26 Step 1 $21.79 Step 1 $21.79 Step 1 $22.24 Step 2 $21.19 Step 2 $22.38 Step 2 $22.38 Step 2 $22.94 Step 2 $22.94 Step 2 $23.41 Step 3 $22.30 Step 3 $23.56 Step 3 $23.56 Step 3 $24.15 Step 3 $24.15 Step 3 $24.64 Step 4 $23.47 Step 4 $24.80 Step 4 $24.80 Step 4 $25.42 Step 4 $25.42 Step 4 $25.94 Step 5 $24.71 Step 5 $26.10 Step 5 $26.10 Step 5 $26.76 Step 5 $26.76 Step 5 $27.30 Step 1 $29.12 Step 1 $30.76 Step 1 $30.76 Step 1 $31.52 Step 1 $31.52 Step 1 $32.17 Step 2 $30.65 Step 2 $32.38 Step 2 $32.38 Step 2 $33.18 Step 2 $33.18 Step 2 $33.86 Step 3 $32.26 Step 3 $34.08 Step 3 $34.08 Step 3 $34.93 Step 3 $34.93 Step 3 $35.64 Step 4 $33.96 Step 4 $35.87 Step 4 $35.87 Step 4 $36.77 Step 4 $36.77 Step 4 $37.52 Step 5 $35.75 Step 5 $37.76 Step 5 $37.76 Step 5 $38.71 Step 5 $38.71 Step 5 $39.49 Step 1 $22.24 Step 1 $23.49 Step 1 $23.49 Step 1 $24.09 Step 1 $24.09 Step 1 $24.58 Step 2 $23.41 Step 2 $24.73 Step 2 $24.73 Step 2 $25.36 Step 2 $25.36 Step 2 $25.87 Step 3 $24.64 Step 3 $26.03 Step 3 $26.03 Step 3 $26.69 Step 3 $26.69 Step 3 $27.23 Step 4 $25.94 Step 4 $27.40 Step 4 $27.40 Step 4 $28.09 Step 4 $28.09 Step 4 $28.66 Step 5 $27.31 Step 5 $28.84 Step 5 $28.84 Step 5 $29.57 Step 5 $29.57 Step 5 $30.17 Step 1 $13.50 Step 1 $14.23 Step 1 $15.00 Step 1 $15.23 Step 1 $15.40 Step 1 $15.70 Step 2 $14.20 Step 2 $14.98 Step 2 $15.75 Step 2 $16.03 Step 2 $16.21 Step 2 $16.53 Step 3 $14.94 Step 3 $15.77 Step 3 $16.54 Step 3 $16.87 Step 3 $17.06 Step 3 $17.40 Step 4 $15.72 Step 4 $16.60 Step 4 $17.36 Step 4 $17.76 Step 4 $17.96 Step 4 $18.32 Step 5 $16.54 Step 5 $17.47 Step 5 $18.23 Step 5 $18.69 Step 5 $18.90 Step 5 $19.28 Step 1 $13.50 Step 1 $14.23 Step 1 $15.00 Step 1 $15.23 Step 1 $15.40 Step 1 $15.70 Step 2 $14.20 Step 2 $14.98 Step 2 $15.75 Step 2 $16.03 Step 2 $16.21 Step 2 $16.53 Step 3 $14.94 Step 3 $15.77 Step 3 $16.54 Step 3 $16.87 Step 3 $17.06 Step 3 $17.40 Step 4 $15.72 Step 4 $16.60 Step 4 $17.36 Step 4 $17.76 Step 4 $17.96 Step 4 $18.32 Step 5 $16.54 Step 5 $17.47 Step 5 $18.23 Step 5 $18.69 Step 5 $18.90 Step 5 $19.28 Step 1 $14.92 Step 1 $15.77 Step 1 $16.45 Step 1 $16.79 Step 1 $17.06 Step 1 $17.40 Step 2 $15.71 Step 2 $16.60 Step 2 $17.32 Step 2 $17.67 Step 2 $17.96 Step 2 $18.32 Step 3 $16.54 Step 3 $17.47 Step 3 $18.23 Step 3 $18.60 Step 3 $18.90 Step 3 $19.28 Step 4 $17.41 Step 4 $18.39 Step 4 $19.14 Step 4 $19.58 Step 4 $19.89 Step 4 $20.29 Step 5 $18.33 Step 5 $19.36 Step 5 $20.10 Step 5 $20.61 Step 5 $20.94 Step 5 $21.36 Step 1 $16.99 Step 1 $17.94 Step 1 $18.14 Step 1 $18.51 Step 1 $18.90 Step 1 $19.29 Step 2 $17.88 Step 2 $18.88 Step 2 $19.10 Step 2 $19.48 Step 2 $19.89 Step 2 $20.30 Step 3 $18.82 Step 3 $19.87 Step 3 $20.10 Step 3 $20.50 Step 3 $20.94 Step 3 $21.37 Step 4 $19.81 Step 4 $20.92 Step 4 $21.11 Step 4 $21.58 Step 4 $22.04 Step 4 $22.49 Step 5 $20.85 Step 5 $22.02 Step 5 $22.16 Step 5 $22.72 Step 5 $23.20 Step 5 $23.67 Non-exempt Print Shop Assistant Non-exempt Project Specialist Non-exempt Project Construction Inspector Recreation Leader III Non-exempt Recreation Leader II Non-exempt Non-exempt Non-exempt Recreation Leader I Non-exempt Open Space Technician Recreation Aide 936 937 938 939 940 941 942 943 City of Palo Alto Limited Hourly Salary Schedule 2018 - 2020 Steps Rate Steps Rate Steps Rate Steps Rate Steps Rate Steps Rate Salary Effective 1/1/2020 (Min Wage- $15.40)FLSA Salary Effective 7/1/2020 Salary Effective 1/1/2018 (Min Wage $13.50) Salary Effective 01/01/2019 (Min Wage- $15) Salary Effective 07/01/2018 Salary Effective 7/1/2019Job TitleJob Code Step 1 $16.10 Step 1 $17.01 Step 1 $17.01 Step 1 $17.43 Step 1 $17.43 Step 1 $17.78 Step 2 $16.95 Step 2 $17.91 Step 2 $17.91 Step 2 $18.35 Step 2 $18.35 Step 2 $18.72 Step 3 $17.84 Step 3 $18.85 Step 3 $18.85 Step 3 $19.32 Step 3 $19.32 Step 3 $19.71 Step 4 $18.78 Step 4 $19.84 Step 4 $19.84 Step 4 $20.34 Step 4 $20.34 Step 4 $20.75 Step 5 $19.77 Step 5 $20.88 Step 5 $20.88 Step 5 $21.41 Step 5 $21.41 Step 5 $21.84 Step 1 $18.01 Step 1 $19.03 Step 1 $19.03 Step 1 $19.50 Step 1 $19.50 Step 1 $19.90 Step 2 $18.96 Step 2 $20.03 Step 2 $20.03 Step 2 $20.53 Step 2 $20.53 Step 2 $20.95 Step 3 $19.96 Step 3 $21.08 Step 3 $21.08 Step 3 $21.61 Step 3 $21.61 Step 3 $22.05 Step 4 $21.01 Step 4 $22.19 Step 4 $22.19 Step 4 $22.75 Step 4 $22.75 Step 4 $23.21 Step 5 $22.12 Step 5 $23.36 Step 5 $23.36 Step 5 $23.95 Step 5 $23.95 Step 5 $24.43 Step 1 $13.50 Step 1 $14.23 Step 1 $15.00 Step 1 $15.23 Step 1 $15.40 Step 1 $15.70 Step 2 $14.20 Step 2 $14.98 Step 2 $15.75 Step 2 $16.03 Step 2 $16.21 Step 2 $16.53 Step 3 $14.94 Step 3 $15.77 Step 3 $16.54 Step 3 $16.87 Step 3 $17.06 Step 3 $17.40 Step 4 $15.72 Step 4 $16.60 Step 4 $17.36 Step 4 $17.76 Step 4 $17.96 Step 4 $18.32 Step 5 $16.54 Step 5 $17.47 Step 5 $18.23 Step 5 $18.69 Step 5 $18.90 Step 5 $19.28 Step 1 $21.02 Step 1 $22.21 Step 1 $22.21 Step 1 $22.76 Step 1 $22.76 Step 1 $23.22 Step 2 $22.13 Step 2 $23.38 Step 2 $23.38 Step 2 $23.96 Step 2 $23.96 Step 2 $24.44 Step 3 $23.29 Step 3 $24.61 Step 3 $24.61 Step 3 $25.22 Step 3 $25.22 Step 3 $25.73 Step 4 $24.52 Step 4 $25.90 Step 4 $25.90 Step 4 $26.55 Step 4 $26.55 Step 4 $27.08 Step 5 $25.81 Step 5 $27.26 Step 5 $27.26 Step 5 $27.95 Step 5 $27.95 Step 5 $28.51 Step 1 $25.60 Step 1 $27.03 Step 1 $27.03 Step 1 $27.71 Step 1 $27.71 Step 1 $28.26 Step 2 $26.95 Step 2 $28.45 Step 2 $28.45 Step 2 $29.17 Step 2 $29.17 Step 2 $29.75 Step 3 $28.37 Step 3 $29.95 Step 3 $29.95 Step 3 $30.70 Step 3 $30.70 Step 3 $31.32 Step 4 $29.86 Step 4 $31.53 Step 4 $31.53 Step 4 $32.32 Step 4 $32.32 Step 4 $32.97 Step 5 $31.43 Step 5 $33.19 Step 5 $33.19 Step 5 $34.02 Step 5 $34.02 Step 5 $34.71 Step 1 $29.46 Step 1 $31.12 Step 1 $31.12 Step 1 $31.89 Step 1 $31.89 Step 1 $32.54 Step 2 $31.01 Step 2 $32.76 Step 2 $32.76 Step 2 $33.57 Step 2 $33.57 Step 2 $34.25 Step 3 $32.64 Step 3 $34.48 Step 3 $34.48 Step 3 $35.34 Step 3 $35.34 Step 3 $36.05 Step 4 $34.36 Step 4 $36.29 Step 4 $36.29 Step 4 $37.20 Step 4 $37.20 Step 4 $37.95 Step 5 $36.17 Step 5 $38.20 Step 5 $38.20 Step 5 $39.16 Step 5 $39.16 Step 5 $39.95 Step 1 $14.92 Step 1 $15.77 Step 1 $15.77 Step 1 $16.17 Step 1 $16.17 Step 1 $16.50 Step 2 $15.71 Step 2 $16.60 Step 2 $16.60 Step 2 $17.02 Step 2 $17.02 Step 2 $17.37 Step 3 $16.54 Step 3 $17.47 Step 3 $17.47 Step 3 $17.92 Step 3 $17.92 Step 3 $18.28 Step 4 $17.41 Step 4 $18.39 Step 4 $18.39 Step 4 $18.86 Step 4 $18.86 Step 4 $19.24 Step 5 $18.33 Step 5 $19.36 Step 5 $19.36 Step 5 $19.85 Step 5 $19.85 Step 5 $20.25 Step 1 $22.24 Step 1 $23.49 Step 1 $23.49 Step 1 $24.09 Step 1 $24.09 Step 1 $24.58 Step 2 $23.41 Step 2 $24.73 Step 2 $24.73 Step 2 $25.36 Step 2 $25.36 Step 2 $25.87 Step 3 $24.64 Step 3 $26.03 Step 3 $26.03 Step 3 $26.69 Step 3 $26.69 Step 3 $27.23 Step 4 $25.94 Step 4 $27.40 Step 4 $27.40 Step 4 $28.09 Step 4 $28.09 Step 4 $28.66 Step 5 $27.31 Step 5 $28.84 Step 5 $28.84 Step 5 $29.57 Step 5 $29.57 Step 5 $30.17 Non-exempt Arts & Science Aide Non-exempt Arts & Science Professional I Non-exempt Stock Clerk Non-exempt Zoological Assistant Technical Specialist Arts & Science Professional II Arts & Science Professional III Arts & Science Technician 948 950 954 951 952 983 953 955 Non-exempt Non-exempt Non-exempt Non-exempt City of Palo Alto Limited Hourly Salary Schedule 2018 - 2020 Steps Rate Steps Rate Steps Rate Steps Rate Steps Rate Steps Rate Salary Effective 1/1/2020 (Min Wage- $15.40)FLSA Salary Effective 7/1/2020 Salary Effective 1/1/2018 (Min Wage $13.50) Salary Effective 01/01/2019 (Min Wage- $15) Salary Effective 07/01/2018 Salary Effective 7/1/2019Job TitleJob Code Step 1 $16.20 Step 1 $17.10 Step 1 $17.10 Step 1 $17.54 Step 1 $17.54 Step 1 $17.90 Step 2 $17.05 Step 2 $18.00 Step 2 $18.00 Step 2 $18.46 Step 2 $18.46 Step 2 $18.84 Step 3 $17.95 Step 3 $18.95 Step 3 $18.95 Step 3 $19.43 Step 3 $19.43 Step 3 $19.83 Step 4 $18.89 Step 4 $19.95 Step 4 $19.95 Step 4 $20.45 Step 4 $20.45 Step 4 $20.87 Step 5 $19.88 Step 5 $21.00 Step 5 $21.00 Step 5 $21.53 Step 5 $21.53 Step 5 $21.97 Step 1 $22.24 Step 1 $23.49 Step 1 $23.49 Step 1 $24.09 Step 1 $24.09 Step 1 $24.58 Step 2 $23.41 Step 2 $24.73 Step 2 $24.73 Step 2 $25.36 Step 2 $25.36 Step 2 $25.87 Step 3 $24.64 Step 3 $26.03 Step 3 $26.03 Step 3 $26.69 Step 3 $26.69 Step 3 $27.23 Step 4 $25.94 Step 4 $27.40 Step 4 $27.40 Step 4 $28.09 Step 4 $28.09 Step 4 $28.66 Step 5 $27.31 Step 5 $28.84 Step 5 $28.84 Step 5 $29.57 Step 5 $29.57 Step 5 $30.17 Min Max Min Max Min Max Min Max Min Max Min Max $13.50 $60.00 $14.25 $63.35 $15.00 $63.35 $15.38 $64.93 $15.40 $64.93 $15.71 $66.23 Min Max Min Max Min Max Min Max Min Max Min Max $13.50 $60.00 $14.25 $63.35 $15.00 $63.35 $15.38 $64.93 $15.40 $64.93 $15.71 $66.23 Min Max Min Max Min Max Min Max Min Max Min Max $13.50 $80.00 $14.25 $84.46 $15.00 $84.46 $15.38 $86.57 $15.40 $86.57 $15.71 $88.30 Min Max Min Max Min Max Min Max Min Max Min Max $13.50 $80.00 $14.25 $84.46 $15.00 $84.46 $15.38 $86.57 $15.40 $86.57 $15.71 $88.30 Min Max Min Max Min Max Min Max Min Max Min Max $13.50 $130.00 $14.25 $130.00 $15.00 $130.00 $15.38 $130.00 $15.40 $130.00 $15.71 $130.00 Step 1 Step 1 $50.43 $45.19Step 1 Step 1 $49.20 $44.08 Step 1 Step 1 Step 1 $46.10 Step 1 $49.20 Step 1 $44.08 $51.44Step 1 $45.19 Step 1 $50.43 Step 1 962 963 960 961 Non-exempt Police Reserve I Non-exempt Police Reserve II $27.53 $22.04 TBD TBD 972 TBD TBD Management Specialist Non-exempt Staff Specialist Non-exempt Journey Level Laborer Non-exempt InspectorNon-exempt General Laborer Non-exempt Non-exempt Technician II Non-exempt Technician I CITY OF PALO ALTO OFFICE OF THE CITY ATTORNEY March 2, 2020 The Honorable City Council Palo Alto, California Adoption of an Ordinance Amending Chapter 1.12 (Administrative Penalties – Citations) to Provide for an Administrative Hearing upon Partial Advance Deposit of $250 and Clarify Existing Procedures for Hearings Recommendation Staff recommends that the City Council adopt the attached ordinance (Attachment A) to amend five sections of Chapter 1.12 (Administrative Penalties – Citations) to update the procedures for collecting administrative penalties and administering hearings that contest Code violations, including: (a) for large administrative penalties, allowing a hearing to be requested and held upon partial advance deposit of $250, with any additional amount of penalties subsequently upheld by the hearing officer due within 30 days of the hearing officer’s decision; (b) and making various non-substantive amendments to clarify procedural requirements as described below. Background and Discussion The City uses administrative citations and compliance orders to enforce various sections of the Palo Alto Municipal Code (“Code”). If a citation or compliance order is issued, the Code currently requires the deposit of all penalties before a hearing can be held to contest the alleged violations.1 The proposed amendment will retain the requirement to deposit in advance the full amount of the penalty for penalties of $250 or less. Where penalties for a citation (or series of related citations in cases of ongoing violations) are more than $250, a hearing may be requested and held upon partial advance deposit of $250, with the balance of any penalties subsequently upheld by the hearing officer due within 30 days of the hearing officer’s decision. The amendment will update the City’s administrative hearing procedures and align them with best practices. In addition, the amendment may reduce the burden to both the public and the City of administering hardship waiver requests and will reduce the City’s exposure to statutory interest in the event a large deposit is ordered to be refunded. The amendment will not affect the hearing officer’s ability to impose penalties, nor will it limit or constrain the City’s ability to collect large penalties, where appropriate under the Code. 1 The Code makes an exception for any person who establishes financial inability to make the advance deposit. Any such person may request a hardship waiver. If a waiver application is filed, the Director of Administrative Services or her designee will render a decision. If the waiver is denied, the applicant has 10 days to remit the full deposit. Page 2 Separately, this amendment makes two clarifications. First, subsections (e), (f), and (g), relating to deposit waivers in Section 1.12.030 (Administrative Citation) are redundant and being deleted in favor of the same language in the section regarding deposit waivers, Section 1.12.070. Second, subsection (a) of 1.12.100 (Hearing officer’s decision) requires the decision of the hearing officer within 30 days of the end of the hearing, but another section requires the decision “within a reasonable time.” The amendment keeps the 30-day requirement and deletes “within a reasonable time.” Resource Impact This Code amendment will not have a significant impact on staff resources. Policy Implications This Code amendment updates and clarifies existing Code requirements. Environmental Review Approval of this ordinance is not a project subject to review under the California Environmental Quality Act. ATTACHMENTS: • Attachment A - Amending Five Sections of Chapter 1.12 (Administrative Compliance Orders) of the Palo Alto Municipal Code (PDF) Department Head: Molly Stump, City Attorney Page 3 *NOT YET APPROVED*  1  20200218_TS_24_204  Ordinance No. _____  Ordinance of the Council of the City of Palo Alto Amending Five Sections of  Chapter 1.12 (Administrative Compliance Orders) of the Palo Alto Municipal  Code.     The Council of the City of Palo Alto does ORDAIN as follows:    SECTION 1.  Section 1.12.030 (Administrative citation) of the Palo Alto Municipal Code is  hereby amended as follows (strikethrough text is deleted, underlined text is added):      1.12.030   Administrative citation.     (a)   Whenever a code enforcement officer charged with the enforcement of any provision of this code  to which this chapter is applicable determines that a violation of such code provision has occurred, the  code enforcement officer shall have the authority to issue an administrative citation to any person  responsible for the violation.     (b)   Each administrative citation shall contain the following information:     (1)   The date of the violation;     (2)   The address or a definite description of the location where the violation occurred;     (3)   The section or sections of this code violated and an abbreviated description of the acts or  omissions constituting the violation;     (4)   The amount of the penalty for the code violation;     (5)   A description of the penalty payment process, including a description of the time within  which and the place to which the penalty shall be paid;     (6)   A description of the administrative citation review process, including the time within  which the administrative citation may be contested and the place from which a request  for hearing form to contest the administrative citation may be obtained; and     (7)   The name and signature of the citing code enforcement officer.     (c)   Prior to the issuance of an administrative citation for a violation which pertains to building,  plumbing, electrical, or similar structural or zoning matters that do not create an immediate danger to  health or safety, the code enforcement officer shall provide a reasonable period of time not less than  five business days to correct or otherwise remedy the violation.     (d)   An administrative citation and all other notices required by this chapter to be served subsequent  to service of a citation may be served either by personal delivery or by certified mail, postage prepaid,  return receipt requested, addressed to a location reasonably calculated to give notice to the responsible  *NOT YET APPROVED*  2  20200218_TS_24_204  party, and shall be deemed effective on the date of personal delivery or when the certified mail is either  delivered or delivery is attempted.     If the certified mail receipt is returned unsigned, then service may instead be effected by regular first  class mail, postage prepaid, provided that the notice sent by regular mail is not returned by the postal  service as undeliverable, and shall be deemed effective on the date three days following deposit in the  mail.     Where a violation of code provisions concerning the condition of real property is involved, an  administrative citation or subsequent written notices authorized by this chapter may be served by  certified mail at the address as shown on the last equalized county assessment roll.     Where a violation of code provisions concerning the condition of real property is involved and  personal delivery or service by certified mail upon the property owner is unsuccessful, service may be  effected alternately or additionally by posting a copy of the order at a conspicuous location on the  property which is the subject of the order. Where service of any notice required under this chapter is  effected in compliance with the requirements of this section and with due process the asserted failure  of any person to receive the notice shall not affect the validity of any proceedings taken under this  chapter.     (e)   If the director of administrative services determines not to issue an advance deposit hardship  waiver, the person shall remit the deposit to the city within ten days of the date of that decision in order  to secure the hearing.     (f)   The director of administrative services shall issue a written determination listing the reasons for  determining to issue or not issue the advance deposit hardship waiver. The written determination of the  director of administrative services shall be final, subject only to judicial review as provided by law.     (g)   The written determination of the director of administrative services shall be served upon the  person who applied for the advance deposit hardship waiver.  SECTION 2.  Section 1.12.050 (Payment of administrative penalties) of the Palo Alto  Municipal Code is hereby amended as follows:     1.12.050   Payment of administrative penalties.     (a)   The administrative penalty for an administrative citation shall be paid to the city through its  revenue collections official within thirty calendar days from the date the administrative citation is  served, except as otherwise provided in Section 1.12.060. If a hearing is requested pursuant to Section  1.12.060, the administrative penalty or portion thereof shall be deposited with the revenue collections  official or a notice shall be filed with the revenue collection official that an advance deposit hardship  waiver has been requested as required in Section 1.12.060 1.12.070.  *NOT YET APPROVED*  3  20200218_TS_24_204     (b)   Any administrative citation penalty shall be refunded in accordance with Section 1.12.100 if it is  determined, after a hearing, that the person charged in the administrative citation was not responsible  for the violation or that there was no violation by the person charged in the administrative citation.     (cb)   Payment of an administrative penalty under this chapter shall not bar enforcement proceedings  for any continuation or repeated occurrence of any code violation that is the subject of an  administrative citation.  SECTION 3.  Section 1.12.060 (Hearing request) of the Palo Alto Municipal Code is  hereby amended as follows:    1.12.060   Hearing request.     (a)   Any recipient of an administrative citation may contest that there was a violation of the code or  that the contestant is responsible for the violation by completing a request for hearing form and  returning it to the revenue collection official within thirty calendar days from the date of service of the  administrative citation, together with either: (1) an advance deposit of the total amount of the  administrative penalty where the penalty for the administrative citation or series of related citations is  $250 or less, or a partial advance deposit of $250 where the penalty for the administrative citation or  series of citations is more than $250; or (2) notice that a request for an advance deposit hardship waiver  has been duly filed pursuant to Section 1.12.070.     (b)   A request for hearing form may be obtained from the revenue collection official.     (c)   The person requesting the hearing shall be notified of the time and place set for the hearing at  least ten days prior to the date of the hearing.     (d)   If the code enforcement officer submits an additional written report concerning the  administrative citation to the hearing officer for consideration at the hearing, then a copy of this report  also shall be served on the person requesting the hearing at least five days prior to the date of the  hearing.  SECTION 4.  Section 1.12.070 (Advance deposit hardship waiver) of the Palo Alto  Municipal Code is hereby amended as follows:        1.12.070   Advance deposit hardship waiver.     (a)   Any person who intends to requests a hearing to contest an administrative citation and who  claims to be financially unable to make the advance deposit of the fine penalty as required in Section  1.12.060 may file a request for an advance deposit hardship waiver.     (b) The request shall be filed with the director of administrative services within thirty days following  the date of service of the administrative citation.  *NOT YET APPROVED*  4  20200218_TS_24_204     (c)   The requirement of depositing the full amount of the the full or partial administrative penalty (or  portion thereof as specified in Section 1.12.060) shall be stayed unless or until the director of  administrative services makes a determination not to issue the advance deposit hardship waiver.     (d)   The director of administrative services may waive the requirement of an advance deposit and  issue the advance deposit hardship waiver only if the cited party submits to the director of  administrative services a sworn declaration, together with any supporting evidence demonstrating to  the satisfaction of the director of administrative services the person's actual financial inability to deposit  the full amount of the fine penalty (or portion thereof as specified in Section 1.12.060) in advance of the  hearing.     (e)   If the director of administrative services determines not to issue an advance deposit hardship  waiver, the person shall remit the full or partial deposit (as specified in Section 1.12.060) to the city  within ten days of the date of that decision in order to secure the hearing.     (f)   The director of administrative services shall issue a written determination listing the reasons for  determining to issue or not issue the advance deposit hardship waiver. The written determination of the  director of administrative services shall be final, subject only to judicial review as provided by law.     (g)   The written determination of the director of administrative services shall be served upon the  person who applied for the advance deposit hardship waiver.  SECTION 5.  Section 1.12.100 (Hearing officer’s decision) of the Palo Alto Municipal Code  is hereby amended as follows:    1.12.100   Hearing officer's decision.     (a)   After considering all the testimony and evidence submitted at the hearing, the hearing officer shall  issue a written decision to uphold or cancel the administrative citation and the reasons for that decision.  The decision of the hearing officer shall be issued within thirty days following completion of the hearing.  The decision of the hearing officer shall be final upon service on the responsible party, subject only to  judicial review as allowed by law.     (b)   The hearing officer shall consider any written or oral evidence submitted at the hearing consistent  with ascertainment of the facts regarding the violation and compliance with the order.     (c)   Within a reasonable time following the conclusion of the hearingthe time specified in subsection  (a) of this Section 1.12.100, the hearing officer shall make findings and issue a decision regarding:     (1)   The existence of the violation;     (2)   The extent of compliance, if any with the order.     (d)   The hearing officer shall issue written findings on each violation. The findings shall be supported  by evidence received at the hearing.  *NOT YET APPROVED*  5  20200218_TS_24_204     (e)   If the hearing officer determines from a preponderance of the evidence that the contestant  committed the violation charged in the administrative citation, then so much of the amount of the  administrative penalty on deposit with the city as is assessed by the hearing officer shall become final  (subject only to appellate remedies provided below) and shall become a debt to the city collectable  through the processes provided herein.  If only a portion of the administrative penalty assessed by the  hearing officer was deposited prior to hearing, the balance shall be paid to the city through its revenue  collections official within thirty calendar days from the date the hearing officer’s written decision is  served on the responsible party.  The hearing officer may alternatively set forth in the decision a  payment schedule for the administrative penalty as well as for payment of any administrative costs  assessed by the hearing officer.       (f)   If the hearing officer determines that the administrative citation should be upheld and the  administrative penalty has not been deposited pursuant to an advance deposit hardship waiver, the  hearing officer shall set forth in the decision a payment schedule for the administrative penalty as well  as for payment of any administrative costs assessed by the hearing officer.     (g)   If the hearing officer determines that the administrative citation should not be sustained, then the  hearing officer shall issue a decision canceling the administrative citation, and if the administrative  penalty or portion thereof was deposited with the city, then the city shall promptly refund the amount  of the deposited administrative penaltydeposited amount, together with interest at the average rate  earned on the city's portfolio for the period of time that the administrative penaltydeposited amount  was held by the city.     (h)   The recipient of the administrative citation shall be served with a copy of the hearing officer's  written decision within ten calendar days following its issuance.     (i)   The employment, performance evaluation, compensation, and benefits of the hearing officer shall  not be directly or indirectly conditioned upon the amount of administrative citation penalties upheld by  the hearing officer.   SECTION 6.  Severability.  If any provision, clause, sentence or paragraph of this  ordinance, or the application to any person or circumstances, shall be held invalid, such  invalidity shall not affect the other provisions of this ordinance which can be given effect  without the invalid provision or application and, to this end, the provisions of this ordinance are  hereby declared to be severable.      SECTION 7.  CEQA.  The City Council finds and determines that this Ordinance is not a  “project” within the meaning of section 15378 of the California Environmental Quality Act  (CEQA) Guidelines because it has no potential for resulting in physical change in the  environment, either directly or ultimately.      //    //  *NOT YET APPROVED*  6  20200218_TS_24_204  SECTION 8.  Effective Date.  This ordinance shall be effective on the thirty‐first date after  the date of its adoption.      INTRODUCED:      PASSED:     AYES:     NOES:    ABSTENTIONS:    ABSENT:     ATTEST:      APPROVED:    ______________________________    ______________________________   City Clerk      Mayor    APPROVED AS TO FORM:      ______________________________    ______________________________   City Attorney or Designee    City Manager           ______________________________   Director of Administrative Services  Department    City of Palo Alto (ID # 11075) City Council Staff Report Report Type: Action Items Meeting Date: 3/2/2020 City of Palo Alto Page 1 Summary Title: Bicycle and Electric Scooter Share Pilot Program Title: Adoption of a Resolution to Extend the Bicycle and Electric Scooter Share Pilot Program for One Year From: City Manager Lead Department: Transportation Recommendation Staff recommends that the Council adopt a resolution (Attachment B) approving a one-year extension of the bicycle and electric scooter share pilot program through March 31, 2021. Background Bicycle and electric scooter sharing programs are emerging technologies for improving mobility, first/last mile connections, as well as reducing emission and traffic congestion. The City of Palo Alto adopted a one-year bicycle and electric scooter sharing pilot program in March 2018 (CMR #8546) and developed permit guidelines for vendors to operate within the City of Palo Alto. The program was extended by Council in 2019 (see attached resolution). The pilot program implementation was delayed due to staff resources, and the impending expiration date precludes effective pilot initiation. The recommended action would extend the pilot program for an additional year to test the concept of private bicycle and electric scooter sharing systems in Palo Alto. The pilot program will assist the City to assess the ability of various service providers to meet service requirements and interest from the community. If extended, the one-year bicycle and electric scooter pilot program will expire on March 31, 2021. Following the pilot program, staff anticipates returning to Council for action on adoption of permanent regulations, requirements, and program guidelines. Discussion The National Association of City Transportation Officials (NACTO) recently published a report on Shared Micromobility in the U.S.: 2018. The report stated that 84 million trips were taken on shared micromobility devices in 2018. The popularity and rate of adoption of these modes has been remarkable, but there remain policy and regulation challenges. The City’s permit City of Palo Alto Page 2 guidelines (Attachment A) were revised slightly to reflect major lessons learned from other cities, including the following: 1. Removal of a maximum cap on devices. Staff will review and approve the allowable devices per vendor at the time of permit issuance. Permittees may submit a written request to adjust their devices’ cap at a later time with relevant supporting data. 2. Inclusion of incentivized parking areas for activity hubs around the city (i.e. Caltrain stations, Stanford Shopping Center, libraries, etc.) in order to minimize device clutter. 3. Addition of a requirement to implement a marketing and community engagement plan before deployment of any devices. Policy Implications Development of the bicycle and electric scooter sharing systems is consistent with the following Comprehensive Plan 2030 and Bicycle + Pedestrian Transportation Plan goals, policies, and projects: Comprehensive Plan 2030: • Program T1.6.1: Collaborate with transit providers, including Caltrain, bus operators and rideshare companies, to develop first/last mile connection strategies that boost the use of transit and shuttle service for local errands and commuting. • Policy T-1.16: Promote personal transportation vehicles as an alternative to cars (e.g. bicycles, skateboards, roller blades) to get to work, school, shopping, recreational facilities and transit stops. • Program T1.19.4: Encourage the use of bicycle sharing, and the provision of required infrastructure throughout Palo Alto, especially at transit stations and stops, job centers, community centers and other destinations. Bicycle + Pedestrian Transportation Plan: • PR-5 Bicycle Share Program Additionally, bicycle and electric scooter sharing systems are consistent with goals outlined in the Sustainability and Climate Action Plan (S/CAP) as strategies to improve and support non- automobile-based mobility. Resource Impact Under the proposed pilot program, minimal costs are anticipated primarily for staff time reviewing applications, issuing permits, data analysis, and monitoring compliance. The funding for this program is available in the Fiscal Year 2020 Adopted Operating Budget. If the program continues beyond the pilot phase, funding for subsequent years of the program will be subject to approval through the annual budget development process. City of Palo Alto Page 3 Timeline Upon City Council approval, staff will announce the application process through our program website within ten days of Council approval. The application process is anticipated to remain open for three weeks. The successful and timely deployment of devices is heavily reliant on vendors’ application completeness, community engagement process, and staff resources for reviewing applications and issuing permits. A targeted timeframe for deployment of devices is four weeks from permit issuance. Environmental Review Amendment of the adopted resolution for a bicycle and electric scooter share pilot program extension is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty that the project will have no significant effect on the environment. Attachments: • Attachment A - Bike Scooter Share Pilot Permit Guidelines 2-19-2020 • Attachment B - Resolution Extending the Pilot Program for Bicycle and E-Scooter Sharing Systems Through March 31, 2021 2/19/2020 1 BICYCLE, ELECTRIC-ASSIST BICYCLE, AND ELECTRIC SCOOTER SHARE PILOT PROGRAM PERMIT GUIDELINES AMENDED BY CITY MANAGER’S OFFICE ON DATE I. Statement and Purpose The purpose of these guidelines is to establish rules and regulations governing the operation of a bicycle, electric‐assist bicycle, and/or electric scooter sharing pilot program within the City of Palo Alto. A key to the pilot program’s success is to ensure that such mobility sharing systems are consistent with the safety and well‐being of bicyclists, pedestrians, and all other users of the public right‐of‐way. II. Scope and Applicability These guidelines apply to any proposed deployment of bicycle, electric‐assist bicycle, and/or electric scooter sharing systems within the City of Palo Alto’s jurisdictional boundaries. All permittees shall be required to comply with these guidelines, as they may be amended from time to time during the course of the pilot program. III. Authority i. The City Manager or his or her designee (referred to as “City Manager”) is authorized pursuant to Council Resolution No. 9822, as amended, to establish permit guidelines governing the operation of bicycle, electric‐assist bicycle, and/or electric scooter sharing programs. ii. The City Manager reserves the right to determine the type and number of devices to operate within the City of Palo Alto. The City Manager can restrict the type of devices to operate even after issuing permit or after deploying devices in the city. iii. The City Manager may establish a maximum cap on the number of bicycles, electric‐ assist bicycles, and/or electric scooters parked in specific areas of the city (e.g., the Downtown or California Avenue business districts, as defined in the City of Palo Alto Comprehensive Plan 2030). iv. The City Manager can deny the permit of bicycles, electric-assist bicycles, and/or electric scooters in specific areas of the city to maintain equal distribution and prevent congestion on the public right of way. v. The City Manager reserves the right to amend the permit guidelines within the pilot program at its discretion. vi. The total number of bicycles, electric‐assist bicycles, and/or electric scooters and total number of operators permitted under this pilot program shall be determined by the City Manager. 2/19/2020 2 vii. The City Manager reserves the right to revoke a permit at any time during the pilot program. If there is a violation of this pilot program’s guidelines or any federal, state, and local laws, or if there is a risk posed to public safety, the City Manager shall then revoke the permit and the permittee shall have to remove their fleet from the City’s right-of-way within 14 days. IV. Procedures a. Application Submission Applications must be completed and submitted electronically by 5:00pm on DATE. By submitting an application, applicants acknowledge that they have read, understand, and agree, if selected, to Permit Guidelines, including Permit Regulations and Requirements in Appendix B. A completed application package must include the following components: 1. Signed Application Cover Sheet in Appendix A 2. Application materials listed in Section V of these guidelines Please submit one searchable format via email and three hard copies by mail to the City of Palo Alto Office of Transportation. Email: Micromobility@CityofPaloAlto.org Mail: City of Palo Alto, Office of Transportation 250 Hamilton Ave, 5th Floor Palo Alto, CA 94301 Re: Bicycle and Electric Scooter Sharing Pilot Program Note: Vendors with a fixed place of business in Palo Alto may be required to register with the City. Please see the Palo Alto Business Registry website: https://www.cityofpaloalto.org/business/business_registry/default.asp b. Additional Selection Criteria and Process i. Selected applicants shall obtain an encroachment permit from the Office of Transportation conditioned on compliance with these permit guidelines and any other conditions established by the City. Only applicants selected by the Office of Transportation shall be eligible to obtain an encroachment permit from the Planning and Development Services Department. No person shall operate a bicycle, electric‐ assist bicycle, and/or electric scooter share program within the city except pursuant to such permit. ii. Selected applicants shall conduct a community outreach process prior to deployment of any devices. Applicants will be evaluated based on their community engagement plan. 2/19/2020 3 V. Application Materials The applicant shall provide but shall not be limited to the listed information described below. Materials stated below are for reference only. The applicant shall be responsible to include all information that demonstrates compliance with these guidelines. a. Experience and Qualification Provide a description of the individual, firm, or entity that is anticipated to become the operator of the Palo Alto Bicycle, Electric-Assist Bicycle, and Electric Scooter Share Program. Description shall include but shall not be limited to the following: i. Experience operating micro-mobility devices. ii. List of cities in which you are currently operating in and have operated in. If you are operating in and/or have operated in neighboring cities of Palo Alto, include the following (if applicable): 1. Dates of operation. 2. Total number of devices in service. 3. The average active fleet size in your first six months of operation. 4. Total trips provided in your first six months of operation. iii. Citations or suspensions from local authorities. b. Operations and Maintenance Plan Operators must have a system operations strategy that provides an equitable distribution of devices. Devices shall be available and accessible throughout neighborhoods, commercial areas, and key destinations citywide. The applicant shall submit in a searchable format, an operations and maintenance plan that includes at a minimum the following: i. General operations, service area, and availability, including hours of operations, pricing structure, proposed deployment locations, proposed total fleet size and at each deployment location, geofencing capabilities, and storage of devices during non-operational hours. ii. Provide information about hiring, including the types of work force employed, staffing levels and training provided to them. iii. Methods for deployment and rebalancing. iv. Speed reduction and deactivation strategies as appropriate. v. Propose incentivized designated parking areas using geofencing or equivalent technology. vi. Methods for parking verification, notification, reporting, and enforcement. vii. Describe the approach to inspection, maintenance, cleaning, and repairing, as well as procedures for customers to notify the operator of a safety or maintenance issue. In addition to compliance with all federal, state, and local laws, the Operations and Maintenance Plan shall comply with regulations and requirements set forth in Appendix B of these guidelines. 2/19/2020 4 c. Community Engagement Plan The applicant shall implement a marketing and targeted community engagement plan at its own cost. The plan shall be submitted in a searchable format to the City for approval prior to permit issuance and deployment of any devices. The outreach process shall be oriented to the community at large to reach both users and non-users of the program, particularly among low-income communities. Engagement shall include virtual, physical, and in-person methods, as well as use of effective and creative techniques. The plan shall describe at a minimum the following: i. Commitment to conveying information about safety rules and regulations, as well as associated penalties, including those related to wearing helmets, riding on sidewalks and/or roadways, and parking. ii. Partnerships with local businesses or other organizations to promote the use of the program. iii. Any fines, consequences, and user accountability measures to encourage and monitor compliance with applicable laws and regulations. Specify commitment to address users who are noncompliant. iv. A list of planned communication materials, events and activities with residents, business groups, community organizations, neighborhood associations, the Transportation Management Association, and other key stakeholders within the City. Outreach materials shall be made available in languages determined by the City. d. Data Sharing and Reporting Plan Provide a data reporting template in a searchable format for review that complies with the data sharing section in Appendix B. e. Personal Data and Privacy Plan i. Provide any privacy policies, user agreements, and/or terms of service in a searchable format for review, including the method for obtaining user acknowledgement and/or agreement. ii. Define the extent of personal information collected about users, how it is being used, and for how long. f. Description of Devices Provide devices’ specifications and safety measures including but not limited to the following: i. Type of bicycles, electric-assist bicycles, and/or scooters including accompanying hardware – warning bells, lights, and other relevant components. ii. Technology for location-based speed regulation, deactivation, and parking restriction. iii. Describe devices’ geofencing technology. 2/19/2020 5 iv. Propose approaches to ensure user compliance with laws and regulations – including those related to wearing helmets, riding on sidewalks and/or roadways, parking locations. v. Describe devices’ capabilities to accommodate a range of users. g. Description of Mobile Application Provide mobile application’s capabilities including but not limited to the following: i. Provide information of the mobile application and the website to be used. ii. Clarify if using a third-party mobile application or website. iii. Propose technology to be used to ensure user compliance with laws and regulations – including those related to wearing helmets, riding on sidewalks and/or roadways, parking locations, and other relevant safety rules. iv. Describe mobile application’s customer interface to accommodate multilingual users, and necessary interface to enhance customer service and educate users about safe riding and rules of the road. The mobile application and other customer interface technology must be fully accessible to persons with disabilities and accessible to screen readers and must comply with Section 508 of the United States Workforce Rehabilitation Act of 1973. h. Proof of Insurance Attach certificates of insurance per requirements set forth in Appendix B of these guidelines. VI. Effective Dates These guidelines shall be effective during the course of the pilot program. 2/19/2020 6 APPENDIX A – APPLICATION COVER SHEET BICYCLE, ELECTRIC-ASSIST BICYCLE, AND ELECTRIC SCOOTER SHARE PILOT PROGRAM PERMIT APPLICATION Application Date: _______________ The Bicycle, Electric-Assist Bicycle, and Electric Scooter Share Pilot Program allows permitted operators to operate bicycles, electric‐assist bicycles, and/or electric scooters within the City of Palo Alto. The City of Palo Alto Office of Transportation will review completed application packages and evaluate applications according to regulations and requirements described in the pilot program permit guidelines. I. General Applicant Information (Please Print) Company Name: Mailing Address: Physical Address (If different than above): Contact Person, Title: Applicant’s Email: Applicant’s Phone Number: Company Website: II. Application Agreement By signing this application, the applicant verifies on behalf of the Bicycle, Electric-Bicycle, and Electric-Scooter Share Operator that all the information provided is true and that if issued a permit, the applicant agrees to comply with all regulations and requirements set forth in the bicycle, electric-bicycle and electric-scooter share program guidelines. Printed Name, Title: Authorized Signature: Date: 2/19/2020 7 APPENDIX B – PERMIT REGULATIONS AND REQUIREMENTS I. General i. Permittees must comply with all applicable federal, state, and local laws, including but not limited to, the Palo Alto Municipal Code, the California Vehicle Code (CVC), and local wage requirements. ii. Permittees shall be responsible for educating their users regarding all applicable federal, state, and local laws governing safe operations and parking of bicycles, electric-assist bicycles, and/or electric scooters. iii. Permittees shall not transfer or assign permits issued under this program to a substitute provider, a successor in interest, or a purchaser of the permit, without the advance written consent and approval of City. iv. Permittees shall maintain a staffed operations center within the San Francisco Bay Area, as defined by the Metropolitan Transportation Commission. v. Permittee shall offer a one‐year low‐income customer plan that waives any applicable program deposit and offers an affordable cash payment option and unlimited trips under 30 minutes to any customer with an income level at or below 200% of the federal poverty guidelines, subject to annual renewal. vi. Permittees shall provide to the City a record of all public feedback received during the marketing and community outreach process. Permittees shall obtain confirmation of receipt by the City of such document prior to deployment of any devices. vii. Permittees shall meet their permitted fleet size within four weeks of permit approval by the City. Permittees shall include the proposed fleet size in their application. viii. Permittees interested in adjusting their devices’ cap must submit a written request to the City with recent and relevant supporting data. The City reserves the right to approve or deny the request at its discretion. Supporting data shall reflect at a minimum 30-day fleet utilization levels within the city. Data from the first 30 days of the pilot program shall be included but will not be considered as supporting data for the adjustment request. ix. The City will monitor permittees’ compliance with these guidelines and reserves the right to revoke a permit. II. Operating and Maintenance i. All bicycles and electric-assist bicycles shall meet the safety standards outlined in ISO 43.150 – Cycles, as well as the standards outlined in Code of Federal Regulations Title 16, Chapter II, Subchapter C, Part 1512 – Requirements for Bicycles. In addition, all bicycles and electric-assist bicycles shall meet the standards established in California Vehicle Code (CVC) Section 21201, including for lighting during operation in darkness. ii. Electric‐assist bicycles shall be “Class 1” or “Class 2” electric bicycles only, as defined in CVC Section 312.5. iii. Electric scooters shall comply within the meaning of devices as defined in CVC Section 407.5 (a) and must meet specifications set forth in CVC 21220 – 21235. 2/19/2020 8 iv. Permittees shall provide easily visible contact information, including toll‐free phone number and e‐mail address, on each bicycle, electric‐assist bicycle, and/or electric scooter for members of the public to make relocation requests or to report other issues with devices. v. Electric scooters shall not operate greater than 15 mph speed. The City Manager reserves the right to revise the speed limit based on collision and injury data recommended by Office of Transportation, City of Palo Alto. vi. Permittees shall make efforts to reduce landfill e-waste and follow state law requirements for disposal or recycling of all types of batteries and other toxic materials at an appropriate recycling facility. vii. Bicycles, electric-assist bicycles and electric scooters shall not create excessive, unnecessary and unreasonable noises in violation of Palo Alto Municipal Code (PAMC) Chapter 9.10. viii. Permittees shall maintain a customer service phone number and mobile application interface for customers to report safety concerns, complaints, or to ask questions twenty-four hours a day, seven days a week. ix. Permittees shall issue a “ticket number” for each issue and provide a response to the complaining party within three business days. x. Permittee shall provide an option to use a clipper card to check out or unlock bicycles, electric-assist bicycles and electric scooters. xi. In the event a safety or maintenance issue is reported for a specific device, that bicycle, electric‐assist bicycle, and/or electric scooter shall immediately be made unavailable to users and shall be removed within the timeframes provided below. Any inoperable or unsafe device shall be repaired before it is put back into service. xii. Permittees shall provide City staff with a direct contact to a representative who is capable of rebalancing the bicycles, electric‐assist bicycles, and/or electric scooters within the City of Palo Alto. Permittees shall respond to requests for rebalancing, reports of incorrectly parked devices, or reports of unsafe/inoperable devices by relocating, re‐parking, or removing the bicycles, electric‐assist bicycles, and/or electric scooters, as appropriate, within the following timeframes: 1. From 6:00 am to 6:00 pm on weekdays, not including holidays: within two hours of receiving notice. 2. All other times: within 10 hours of receiving notice. xiii. In the event a bicycle, electric‐assist bicycle, and/or electric scooter is not relocated, re- parked, or removed within the timeframes specified above, or a device is parked in one location for more than seventy-two hours, it may be removed by the City. Any type of expenses associated with the removal of bicycles, electric-assist bicycles, and/or electric scooters will be borne by the Permittee. xiv. Permittees shall provide notice to all users by means of signage and through a mobile or web application that: 1. Helmets should be worn by all users as defined in the California Vehicle Code (CVC). 2/19/2020 9 2. Electric scooter users must have a valid Driver’s License as defined in the CVC 21235. 3. All users operating a bicycle, electric‐assist bicycle, and/or electric scooter must obey all rules of the road, traffic laws, and all applicable federal, state, and local laws. III. Parking i. Permittee shall propose incentivized parking areas for, but shall not be limited to the following designated areas: 1. Downtown Avenue business districts, as defined in the City of Palo Alto Comprehensive Plan 2030 2. Palo Alto Caltrain Station 3. California Avenue Caltrain Station 4. Stanford Shopping Center 5. Town & Country Village 6. Palo Alto Libraries – Children’s Library, College Terrace Library, Downtown Library, Mitchell Park Library and Rinconada Library 7. Large Community Parks – Rinconada park, Michell Park and Greer Park ii. The City Manager reserves the right to determine certain block faces where free‐floating bicycles, electric‐assist bicycles, and/or electric scooters parking is prohibited or to create geofenced areas where bicycles, electric-assist bicycles, and/or electric scooters shall be parked. iii. Free‐floating bicycles, electric‐assist bicycles, and/or electric scooters shall be parked upright on flat and hard surfaces in the landscape/furniture zone of the sidewalk, at a bicycle rack, or in another area specifically designated for bicycle parking. iv. Bicycles, electric‐assist bicycles, and/or electric scooters shall not be parked within 5’- 15’ of a crosswalk or curb ramp. v. Parking along sidewalks or blocks without sidewalks must maintain a 6’ clear path for pedestrians. vi. Bicycles, electric‐assist bicycles, and/or electric scooters shall not be parked in the landscape/street furniture zone in such a manner as to impede other street uses or obstruct pedestrians, including at transit stops, in loading or disabled parking zones, or blocking access to buildings, driveways, curb ramps, and other street features that requires pedestrian and/or emergency access (e.g. benches, parking pay stations, bus shelters, transit information signs, fire hydrants, call boxes, utility poles, etc.). vii. Bicycles, electric‐assist bicycles, and/or electric scooters shall not be parked in such a manner as to impede or interfere with the regular flow of travel in the public right-of- way, clearance on sidewalks needed for ADA compliance, or within reasonable use of any commercial window display or access to or from any building. viii. Permittees shall institute geofencing around designated parking areas and implement in-app technology to direct users to designated parking areas as appropriate. ix. No device shall be parked in one location for more than seventy-two hours. 2/19/2020 10 x. To the extent a permittee proposes to park bicycles, electric‐assist bicycles, and/or electric scooters in areas other than the public right‐of‐way (e.g. parks, plazas, parking lots, private property or transit stations), the permittee must first obtain the right to do so from the appropriate City department, property owner, or public agency and shall communicate this right to users through signage approved by the respective entity and/or through a mobile or web application. IV. Data Sharing i. Permittees shall provide the City with real‐time information on the entire Palo Alto fleet through a documented application program interface (API). City may ask permittees to provide the data in another file format. Permittees are directly responsible for obtaining an API key from the City’s Office of Transportation to which they will publish the data described below. The data to be published to the City’s API will include the following information in real time for every bicycle, electric-assist bicycle and electric‐scooter parked in the city’s operational areas: 1. Point location 2. Bicycle/electric-assist bicycle/electric scooter identification number 3. Type of bicycle (standard or electric-assist) 4. Fuel level (if electric) 5. Designated parking area ii. The City is permitted to display real‐time data provided via the API to the public. 2/19/2020 11 iii. Permittees shall provide the following anonymized data for each trip record to inform and support safe and effective management of the system and for transportation planning efforts. Data shall be submitted via the City’s API and shall also be provided in other file format as requested by the City. Field Name Format Description Company name [Company name] n/a Type of device Bicycle, electric-assist bicycle or electric scooter n/a Trip record number xxx0001, xxx0002, xxx0003,… 3-letter company acronym + consecutive trip number Trip duration MM:SS n/a Trip distance Feet n/a Start date MM,DD,YYYY n/a Start time HH:MM:SS n/a End date MM, DD, YYYY n/a End time HH:MM:SS n/a Start location Census block n/a End location Census block n/a Device ID number xxxx1, xxxx2, xxxx3,… Unique identifiers for every device Trip route n/a Only in API format Trip cost total $ per trip n/a Trip cost promotion (if applicable) $ per trip Promotion type iv. Permittees shall provide the following device availability data for oversight of parking compliance and device distribution by minutes. Data should be submitted via the City API and should also be provided in other file format as requested by the City. Field name Format Description Device ID number xxxx1, xxxx2, xxxx3,… Unique identifiers for every device GPS coordinate X,Y n/a Trip parking verification Compliant, non- compliant Parked location Availability start date MM, DD, YYYY n/a Availability start time HH:MM:SS n/a Unavailability start date MM, DD, YYYY n/a Unavailability start time HH:MM:SS n/a Availability duration Minutes n/a 2/19/2020 12 v. Permittees shall generate a “ticket number” for each complaint, provide the ticket number to the person who reported the issue, and provide a response to the complaining party within three business days. The ticket numbers, complaint information, and provided responses shall be sent to the City monthly and at any time within three business days if requested by the City. vi. Permittees shall keep a record of maintenance activities and reported safety issues and collisions, including but not limited to device identification number and maintenance performed. These records shall be sent to the City monthly and at any time within three business days if requested by the City. vii. Permittees shall report the aggregated breakdown of customers by gender and age. Gender must be reported as male, female, and non‐binary. Age must be reported using these eight age groups: under 5, 5‐17, 18‐24, 25‐34, 35‐44, 45‐54, 55‐64, 65 and over. This report shall be sent to the City monthly and at any time within three business days if requested by the City. V. User Enrollment i. Permittees must comply with all relevant state and local laws regarding age requirements for use of electric-assist bicycles and electric scooters. ii. Permittees shall implement technology-based measures to verify age requirements before giving membership to users. VI. User Privacy i. Permittees must keep all financial data from users in a secure manner that complies with the Payment Card Industry Data Security Standards (PCI DSS), and accessible to authorized personal. ii. Permittees shall provide a privacy policy that complies with the California Online Privacy Protection Act (CalOPPA) that safeguards customers’ personal, financial and travel information and usage. iii. Permittees shall clearly communicate to the public and to the City what personal data will be accessed and provide an explanation why such access is needed, and for how long. VII. Insurance During the term of this pilot program, permittee, and each of its contractors and agents shall maintain in full force the following insurance amounts and coverages: i. Comprehensive General Liability in a minimum amount of two million dollars ($2,000,000) per occurrence (bodily injury and property damage) and four million dollars ($4,000,000) aggregate. The City of Palo Alto is to be named as an additional insured, including its Council members, officers, employees and agents. ii. Comprehensive Automobile Liability insurance in a minimum amount of one million dollars ($1,000,000) per occurrence. iii. Worker’s Compensation and Employer’s Liability in a minimum amount of one million dollars ($1,000,000) per occurrence (accident, injury, or illness). 2/19/2020 13 iv. Performance Bond of $80 per permitted device, in a form approved by the City Attorney. *NOT YET APPROVED* 20200218_TS_24_203 Resolution No. _____ Resolution of the Council of the City of Palo Alto Extending the Pilot Program for Bicycle and E­Scooter Sharing Systems for Up to One Year Through March 31, 2021 The Council of the City of Palo Alto RESOLVES as follows: SECTION 1. Findings and Declarations. A. On March 18, 2019, the Council of the City of Palo Alto adopted Resolution No. 9822, authorizing the City Manager to implement a pilot program to permit the operation of bicycle and electric scooter (“e­scooter”) sharing system, including stationless or “free­floating” sharing systems, for use by Palo Alto residents, workers, and visitors. B. Bicycle and e­scooter sharing programs are emerging technologies for improving mobility and first/last mile connections, as well as reducing emission and traffic congestion. C. With the emergence of stationless sharing technologies, the absence of a pilot permitting program is likely to result in cluttered and obstructed sidewalks, uneven and inequitable distribution of bicycles and e­scooters, or other threats to public health and safety. D. By contrast, a pilot program allows the City to develop permit guidelines for vendors to operate within the City of Palo Alto in a way that is most responsive to the needs of Palo Alto residents, workers, and visitors. E. No permits have been issued to­date. Several bicycle and e­scooter sharing systems operators have expressed an interest in participating in the one­year pilot program authorized by Resolution No. 9822. F. The extension of the one­year pilot program will allow the City to consider and process applications that may be submitted, and collect and analyze data and assess the quality of various service providers. SECTION 2. Pilot Program Regulations. A. The City Manager or his designee is hereby authorized to adopt, and from time to time amend, regulations governing the operation of bicycle and e­scooter sharing systems within the City of Palo Alto. Such regulations shall address, at a minimum, the following topics: 1. Bicycle and e­scooter safety; 2. Bicycle and e­scooter fleet deployment, including the total number of bicycles *NOT YET APPROVED* 20200218_TS_24_203 and e­scooters permitted as well as their distribution throughout the City, in order to avoid nuisances or unwanted encroachments into the public right of way; 3. Permitted areas for bicycle and e­scooter parking; and 4. Additional measures to ensure efficient and effective deployment of bicycle and e­scooter sharing systems in the City. B. Any violation of regulations adopted pursuant to this section by a bicycle or e­scooter sharing system operator may result in revocation of any permit issued to the operator pursuant to the pilot program. C. The pilot program authorized by Resolution No. 9822 and extended by this resolution shall terminate upon the earlier of March 31, 2021 or the adoption of an ordinance regulating bicycle and e­scooter sharing systems by the Palo Alto City Council. // // // // // // // // // // // // // // *NOT YET APPROVED* 20200218_TS_24_203 SECTION 3. Environmental Review. The Council finds that the adoption of this resolution is exempt from review under the California Environmental Quality Act because it can be seen with certainty that there is no possibility of a significant effect on the environment as a result of the Bicycle and E­Scooter Sharing System pilot program. SECTION 4. This resolution shall be effective immediately upon City Council approval. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: __________________________ _____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: __________________________ _____________________________ Deputy City Attorney City Manager _____________________________ Chief Transportation Official _____________________________ Director of Public Works City of Palo Alto (ID # 10276) City Council Staff Report Report Type: Action Items Meeting Date: 3/2/2020 City of Palo Alto Page 1 Summary Title: Discussion of & Potential Direction for Next Steps Regarding the Roth Building, 300 Homer Avenue Title: Review of the Report on the Palo Alto History Museum's Fundraising Status for the Roth Building Rehabilitation Project (300 Homer Avenue), Discussion of Options for Roth Building use and Rehabilitation, and Direction for Next Steps; Approval of an Agreement With Sea Scouts/Environmental Volunteers to Provide $65,000 in Dedicated Funding for Uses Related to the Mission of the Environmental Volunteers From: City Manager Lead Department: Administrative Services Recommendation Staff recommends that the City Council: 1.Review the status of the fundraising for the Roth Building rehabilitation project and provide direction on possible next steps for the Roth Building; 2.Approve allocation of $65,000 from the FY 2020 City Council Contingent account to the Sea Scouts/Environmental Volunteers, consistent with direction provided by Council on December 17, 2018; and 3.Authorize the City Manager to negotiate and execute an agreement with Sea Scouts/Environmental Volunteers for use of the $65,000 in dedicated funding from the City Council Contingent account. Executive Summary For more than a decade, the Palo Alto History Museum (PAHM) has engaged in various strategies and activities to raise funds from private and public sources to undertake a seismic and historical rehabilitation of the Roth Building, 300 Homer Avenue, and to operate a historical museum at this location. This staff report is intended to provide an update on the direction provided to staff at the December 17, 2018 City Council meeting (CMR 9767) including the validation of fundraising by PAHM as performed and reported by an outside firm. The report builds on information provided in the most recent updates provided to Council in September (CMR 10600) and December (CMR 10868) 2019. Staff is seeking review of the status of this project in the context of this validation of fundraising and potential direction on next steps as City of Palo Alto Page 2 part of this project. Background The City acquired the Roth Building in April 2000. In 2002, the City issued a Request for Proposals (RFP) for proposed uses of the Roth Building, and received one response, from the PAHM. In 2007, the City and PAHM entered into a two-year option agreement to lease the Roth Building. Since 2007, PAHM personnel and City staff have examined a variety of proposals to fund the capital and operating needs of the Roth Building historical museum and the City Council has extended the option agreement several times. Additional background information can be found by referring to prior staff reports, CMRs: 2197, 2891, 4703, 5365, 5551, 5879 and 8612. The 2007 option agreement was extended several times over the past 13 years, but finally lapsed in late 2018 and is no longer in effect. In December 2018 (Report #9767) the City Council reviewed the status of the Roth Building project and directed staff, over the next six months, to validate the PAHM’s recent fundraising milestone of $1.75 million - a target set by Council for a certain period of time, between 2017 and present. At that time, Council did not choose to extend the option agreement further but directed staff to update the option and lease agreement, which had not been updated since 2007, for later consideration by Council. On December 17, 2018 Council approved the following motion (9-0): A. Extend the deadline by six months for the Palo Alto History (PAHM) to achieve the goal of raising $1.75 million as set by Council in 2017 (to allow for validation of PAHM fundraising); B. Direct Staff to revise and update the lease agreement between the Palo Alto History Museum and return to City Council in six months for approval; C. Adopt a Resolution designating the Roth Building as a park and committing to use the Roth Building consistent with park use for a period of no less than 20 years and making other representations to apply for historic preservation grant funds from the County of Santa Clara to rehabilitate the Roth Building roof; D. Transfer the $665,000 of Sea Scout Building Transferable Development Rights (TDRs) proceeds to the Roth Building Rehabilitation Reserve Fund; and E. Direct Staff to return to Council to dedicate $65,000 from the Council Contingency Fund to the Sea Scouts. Staff has provided updates to the City Council on work towards this direction, both in September 2019 and December 2019. The most current status on each component of the motion is included in this report for consolidation purposes at the end of the Discussion section. City Council Previous Funding Actions In order to provide the background of funding actions, staff has consolidated the funding actions and direction to date below for Phase one of the project, consisting of capital investment expenses, the general construction and rehabilitation of the facility to prepare the building to move to Phase 2, the build-out of the museum space. The City Council has approved City of Palo Alto Page 3 two primary funding sources thus far. 1) Council approved the designation of the Roth Building as a “Sender Site” in the Transfer of Development Rights (TDR) program. Staff followed the provisions for eligible City owned buildings to participate in the TDR program as outlined in Sections 18.18.080 and 18.28.060 of the Palo Alto Municipal Code (PAMC). The program allows a Category 2 resource, such as the Roth Building, to be eligible as a “sender site” for a 9,592 square foot floor area bonus to be utilized at an eligible “receiver site”. The TDRs were put to bid and sold raising $2.88 million. 2) On December 15, 2015, City Council passed a motion instructing staff to identify $1.0 million to fund rehabilitation costs for the Roth Building. All potential sources were examined, and staff recommended that the Budget Stabilization Reserve be drawn down to provide the $1.0 million. The Museum representatives asserted that with this contribution and the sale of Transferable Development Rights (TDRs), further fundraising would gain traction. On June 29, 2015, the Council approved a budget amendment in the Capital Improvement Fund to establish a Roth Building rehabilitation reserve in the fund in the total amount of $3.88 million. Palo Alto History Museum has been working to fundraise the gap in funding for Phase one. After identifying $1.4 million in fundraising and a remaining gap of $3.5 million in identified project funding, in 2017, the City Council challenged the PAHM to raise 50% of the identified gap, or $1.75 million in the coming 12 months. In December 2018, the PAHM tentatively confirmed completion of fundraising the additional $1.75 million. The City Council directed staff to validate these funds for further project progress towards Phase one. In September 2019 staff provided an update to Council indicating that additional time was need to perform the validation of fundraising, the expansion of the scope of validation of fundraising to the full $3.2 million anticipated to assist in funding the phase one capital investment, and that a firm would be hired to assist in the completion of this work. The City hired Macias Gini and O’Connel (MGO) to validate the PAHM fundraising to accomplish item A from Council’s motion, Extend the deadline by six months for the Palo Alto History (PAHM) to achieve the goal of raising $1.75 million as set by Council in 2017 (to allow for validation of PAHM fundraising). This report provides a summary of the findings from MGO and the report is attached (Attachment A). Also, due to the timing of staff’s return to the City Council, staff recommended and the City Council approved on October 21, 2019 (CMR 10658) a reappropriation of the FY 2019 City Council contingent account in the amount of $65,000 to FY 2020 for the implementation of item E in the original motion. City of Palo Alto Page 4 Discussion The City hired MGO to review and validate the entire population of fundraising that was reported by the Palo Alto History Museum in 2018. At that time Council had set the goal of PAHM meeting a fundraising target of $1.75 million and directed staff to validate that amount. In researching the Museum’s fundraising, staff found that the earlier reported figure of $1.4 million had also not been validated. Together this fundraising totaled $3.15 million. The City and PAHM agreed it best to expand the scope of validation to all funds, not just the $1.75 million target. The expanded population of fundraising and validating expertise needed increased the time staff required to perform the review. It should be noted that MGO did not perform an official financial audit of the Palo Alto History Museum financials; this engagement focused solely on the evaluation of progress towards fundraising goals and identification of available funds for investment in the construction project at the Roth Building. The work performed by MGO included interviews with PAHM staff, review of records in the donations database, review of data from the accounting system and review of donations and pledges along with available supporting documents. MGO’s work culminated in a final report (Attachment A). A draft final report was reviewed with PAHM and their edits and comments where incorporated into the final report. PAHM provided a letter in response to the report (Attachment C). The key conclusion in the report is that PAHM has fundraised and received donations and pledges totaling $7.7 million, however, PAHM does not currently have sufficient cash on hand to meet the fundraising target of $3.15 million for contribution to the rehabilitation construction (Phase 1) of the Roth Building. Since approximately 20001, the museum has received donations of $4.8 million and pledges of $2.9 million which is inclusive of the $3.15 million amount that PAHM reported to the City. However, expenditures for the PAHM have been in the $3.6 million range for that same period, since 2000. As of November 2019, PAHM has an available operating cash balance of approximately $1 million. In addition to the cash balance, PAHM has total pledges of $2.9 million of which $2.0 million is restricted for other uses as discussed below. MGO reviewed the pledges and after identifying levels of risk, has deemed $0.2 million (up to $580,000) likely to be collected – these are the pledges that are less than three years old2. 1 Page 3 of the MGO report Assessment of Palo Alto History Museum (PAHM) Fundraising Efforts for Phase 1. 2 An aging chart for pledges is provided on page 8 of the MGO report Assessment of Palo Alto History Museum (PAHM) Fundraising Efforts for Phase 1. City of Palo Alto Page 5 Donations The detailed history of all donations shown in the MGO report since 2000 is presented in the table below. TABLE 1: Summary of All Donations received since 2000 Donations3 Year Amount Year Amount <2000 $250 2010 $192,879 2000 $14,415 2011 $598,577 2001 $1,000 2012 $165,943 2002 $8,675 2013 $93,635 2003 $125,351 2014 $269,397 2004 $62,856 2015 $143,642 2005 $308,642 2016 $440,775 2006 $250,637 2017 $463,602 2007 $128,215 2018 $976,619 2008 $131,078 2019 $394,595 2009 $111,595 Total $4,882,378 A summary of PAHM revenue and expense is shown below. A graph of revenue and expenses since 2005 is shown on page 8 of the MGO report. TABLE 2: Summary of PAHM Revenues & Expenses PAHM Revenue and Expenses Total Revenue since 2005 (page 6 MGO) $4,330,654 Other sources4 $269,349 Operating expenses since 2005 ($3,599,559) Cash on hand5 $1,000,444 3 Some donations were recorded in the year shown above after they were migrated from a prior system. 4 The MGO review could not verify all revenue sources, MGO did not review records prior to 2000 as the ROTH building purchase in 2000 was the catalyst for PAHM capital campaign fundraising efforts. 5 Page 4 of the MGO report Assessment of Palo Alto History Museum (PAHM) Fundraising Efforts for Phase 1. City of Palo Alto Page 6 Pledges MGO reviewed outstanding pledges that totaled approximately $2.9 million6 and determined that $2.01 million have restrictions from the donor and cannot be used for Phase 1 construction. MGO determined that of the remaining pledges approximately $681,500 have high risk factors7 that decrease the likelihood of the pledge being collected. Approximately $242,600 (or up to $583,000) in pledges are more likely to be collectable according to the MGO report. Summary of Project Funding The overall funding picture for the Roth Building rehabilitation project is shown in the table below. Following the table are additional updates to the financial status of Phase 1 capital investment and construction that may impact the overall funding picture. The PAHM has expended $57,000 to date on this project for the construction contract. Not itemized below is the award of $100,000 in grant funding from the County of Santa Clara County Parks Historical Grant for reimbursement of costs associated with the roof replacement. TABLE 3: Summary of Project Funding and Costs Description Other Funding Sources Identified and Projected Projected Cost Balance Building Project Total Rehabilitation Cost $9.2 million City’s contribution: TDRs, BSR, interest, Library Impact Fees (est. $300k) $5.2 million PAHM cash on hand as of November 2019 $1.0 million Phase 1 Pledges as of December 2019 $583,000-$242,600 Phase One – Capital Shortfall (as of 2019) ~($2.8m - $2.4m) The Phase 1 construction cost estimate of $9.2 million is from 2016. According to PAHM’s construction contractor, Vance Brown, who City and Museum staff met with in January 2020, this cost estimate has likely escalated by at least ten percent making the current project cost anticipated to exceed $10 million. Another factor that may add costs to the project is the fact that the subcontractor costs since initial estimates have not been updated by Vance Brown. Only once the project has a firm start date does the contractor update these estimates with a firm quote from the subcontractors. This step will likely result in additional cost increases. 6 Page 7 of the MGO report Assessment of Palo Alto History Museum (PAHM) Fundraising Efforts for Phase 1 7 Page 7 of the MGO report Assessment of Palo Alto History Museum (PAHM) Fundraising Efforts for Phase 1; factors include donation and payment history of the donor, age of the pledge, amount owed/pledged; and documentation status (written or verbal) City of Palo Alto Page 7 Discussion of Next Steps Given the findings in the MGO report as well as the updated discussion of overall Phase one project construction costs, staff is bringing back to the City Council these findings for discussion and potential direction on next steps. The fact that the passage of over a decade of time has not fared well for the structure nor has it resonated with stakeholders and fundraising efforts. Over the span of nearly two decades, despite best intentions, the work needed to preserve the building has been postponed as the necessary private funds have not fully materialized, leaving the building in an increasingly degraded physical state. Over the past year as staff have been completing these fundraising validation efforts with the necessary stakeholders – City departments, the PAHM, and Vance Brown – ideas on the potential path forward for this building and project have been discussed. The ideas below spring from these conversations with the core tenet of building preservation in mind and staff is seeking input and direction from Council on the next steps in this potential project given the current status of project funding. These ideas are not intended to be holistic or mutually exclusive but rather resurrect prior potential paths forwards for this valued community asset as well as new options. The City would coordinate with PAHM on these revised paths forward pending City Council direction. Request for Proposal The last request for proposals RFP for the Roth Building was completed in 2005, over a decade ago. The City Council considered the development of a RFP for the Roth Building in 2017 (CMR 8612) as the Council was faced with an approximately $3.5 million funding gap in the construction project then. At the Council’s direction, staff could resume this option and dedicate staff time and resources to the execution of a new RFP. An RFP would inform what the market would bear for this property and may identify new interest as well as alternative ideas for use. The zoning for this land is currently Public Facilities (PF) and this along with the City’s Comprehensive Plan and other planning and development codes would be necessary to consider in soliciting and evaluating potential options. This process would extend the time the building remains vacant and could be done in conjunction with other options described below. As discussed previously, the high-level steps needed for issuing a new RFP would include: • Prepare a timeline for the RFP • Obtain input from Council on goals, concepts and core variables for the RFP • Solicit a request for qualifications to set a prequalification level which firms must meet to respond to the RFP (optional) • Issue the RFP to qualified firms and allow a one-to-two-month window for firms to respond • Hold interviews and presentations with firms, the City, and the community representatives • Consider alternatives presented by proposing firms and develop options for review with the City Manager • Present options and a recommendation to the Council along with related contract City of Palo Alto Page 8 awards It is estimated that the RFP selection process would take approximately one year to complete. Physically Stabilize the Roth Building Allow PAHM to begin initial construction to stabilize the Roth Building from water intrusion and repair a back wall based on the current building permit and design that PAHM holds. This would stabilize the facility; however, the building would not be ready for occupancy. The estimated cost for this work is $8.5 million8 according to initial estimates from PAHM contractor Vance Brown. This idea leverages the existing building and approved planning permits and starts the rehabilitation of a City owned property and the overall project. PAHM estimates that this activity, demonstrating capital investment in the facility, would motivate additional fundraising. However, as noted above, funding of $6.2 million ($5.2 million from City contributions and $1.0 million in PAHM operating cash balance) would be insufficient to fully fund a project this size. This option would require identification and commitment of additional funding prior to the commencement of work. Sharing of Facility The City and PAHM could work together and/or potentially with another party to share the 20,000 square foot facility so that it would not be solely occupied by PAHM. This co-tenancy could lessen the cost burden on the PAHM by sharing costs with another party both for construction and the ongoing operating costs associated with maintaining and running a building of this size. Parking would potentially be an issue depending on the use and volume of customers/users if any. The PAHM has expressed an openness to discuss a shared occupancy concept including shared square footage on the first and/or second floor of the facility. One example of sharing the facility could be PAHM co-tenancy with City operations or common/community facilities. For illustration purposes only, the City currently leases space for City staff at satellite locations such as the Development Center (approximately 12,000 square feet) and Utilities staffing at Elwell Court (approximately 16,000 square feet) and an average City Hall floor is 6,000 square feet. Co-tenancy with the City or another party will necessitate detailed discussions and formal agreement(s) to address issues such as but not limited to parking needs/requirements, allocation of space, expenses, and building access, constraints related to the County grant designation of the building as parkland, and building permit amendment or new application. Per PAHM, the Conditional Use Permit (CUP) allows for some sub-leasing to appropriate nonprofit entities; this option could be resurrected. Sharing of the facility would necessitate PAHM staff to coordinate with the organization’s board as well. Lastly, although not a path forward for the physical Roth Building facility, it is notable that the MGO report also provides recommendations, which may be considered by PAHM and the City should the parties wish to continue the current project path. These include: 8 Estimate from Vance Brown/PAHM City of Palo Alto Page 9 • The City and PAHM should consider an agreement which could include requirement for a regular report on fundraising, an approved PAHM operating budget, operating reserve and review of financial policies and procedures. • Establishment of a PAHM operating reserve, which is an unrestricted fund balance to provide a cushion against unexpected events together with a realistic plan to replenish the reserve. • PAHM should continue to expand its comprehensive policies and procedure manual to establish a control environment and to address internal control risks. • Establish an account that is used by PAHM to estimate the true collectability of receivables by accounting for doubtful accounts. Summary of Council’s December 17, 2018 direction and the current status of each item: Council Motion Background/Status A. Extend the deadline by six months for the Palo Alto History (PAHM) to achieve the goal of raising $1.75 million as set by Council in 2017 (to allow for validation of PAHM fundraising); Review of fundraising completed. B. Direct Staff to revise and update the lease agreement between the Palo Alto History Museum and return to City Council in six months for approval Development of option and lease agreement in progress. The updated draft of the agreement is being reviewed by City departments, including Public Works, Planning and Community Services. While this effort is moving forward it has been separated from the review of fundraising. Depending on Council’s direction as a result of reviewing the fundraising this may impact the terms of the option and lease agreement, or whether to proceed with the agreement. C. Adopt a Resolution designating the Roth Building as a park and committing to use the Roth Building consistent with park use for a period of no less than 20 years and making other representations to apply for historic preservation grant funds from the County of Santa Clara to rehabilitate the Roth Building roof; Resolution approved and County grant secured. D. Transfer the $665,000 of Sea Scout Building Transferable Development Rights (TDRs) proceeds to the Roth Building Rehabilitation Reserve Fund; and Complete City of Palo Alto Page 10 E. Direct Staff to return to Council to dedicate $65,000 from the Council Contingency Fund to the Sea Scouts. Pending approval in this report (Recommendation 2). The original request for this funding was made by the Environmental Volunteers (Sea Scouts) in December 2018 (Attachment B). Other Updates Building permit PAHM’s construction contractor currently holds an approved (in February 2019) building permit for the rehabilitation project of which PAHM was the applicant. The building permit remains active and has been extended through February 2020. PAHM has initiated a second six-month extension of the building permit to adjust for timing of this project including but not limited to the Lease and Option Agreement review and approval by the City Council. Building permits may be extended up to three times. County grants The City in partnership with PAHM has submitted two new grant applications to the 2019 Santa Clara County Historical Grant Program. One grant is to provide additional funding for the roof replacement project and the other grant is to provide funding to preserve the art frescoes on the outside front wall of the building. These grants will be determined in 2020 after award recommendations, which are scheduled for February 2020. As discussed above, an earlier grant submitted in the County’s prior grant cycle to help support roof repair was granted by the County in the amount of $102,992; the contract was recently signed. Stakeholder Outreach Throughout this project staff has maintained regular and open communications with PAHM and its staff as well as the construction contractor. The collaboration between the City and PAHM has been positive as a result. Internally, staff have been coordinating among the Public Works, Community Services, Planning and Administrative Services departments on different aspects of the project. Resource Impact City Financial Contributions As discussed earlier, the City Council previously took actions to set aside $3.88 million in resources for the Roth Building rehabilitation. Funding primarily resulted from the sale of TDRs ($2.88 million), plus an additional contribution from the Budget Stabilization Reserve ($1.0 million). These funds plus interest earned remain accounted for in the General Capital Improvement Fund (471) in a reserve; as of February 2020, this reserve stands at $4.2 million. In addition, the Sea Scout Building Transferable Development Rights (TDRs) proceeds ($665,000) for historical restoration only also remain in a reserve in the General Capital City of Palo Alto Page 11 Improvement Fund; as of February 2020, this reserve stands at $700,030. Lastly, it is expected that $300,000 in Library impact fees will assist in coverage of costs associated with the archive build out. Therefore, in total, City funding of $5.2 million is available. Environmental Review The Roth Building rehabilitation project is categorically exempt from review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15331, Historical Resource Restoration/Rehabilitation, as a project limited to maintenance, repair, and rehabilitation in accordance with the Secretary of Interior Standards for Historic Preservation. Attachments: •Attachment A: Assessment of Fundraising Efforts; MGO report •Attachment B: Sea Scouts-Environmental Volunteers Letter •Attachment C: Palo Alto History Museum Letter Response www.mgocpa.com Macias Gini & O’Connell LLP 2121 N. 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ĨƵƌƚŚĞƌĐĂƉŝƚĂůŝŵƉƌŽǀĞŵĞŶƚƉƌŽũĞĐƚƐĨŽƌƚŚĞĐŽĞŶƚĞƌ͘hŶĚĞƌŝƚƐŶĞǁ͕ůůŝŽƚƚtƌŝŐŚƚ͕sŝƐƐƵĐĐĞƐƐĨƵůůLJ ĨŽĐƵƐĞĚŽŶŐĞŶĞƌĂƚŝŶŐƚŚĞŶĞĞĚĞĚŽƉĞƌĂƚŝŶŐĨƵŶĚƐ͘ /ǁŽƵůĚůŝŬĞƚŽĂƐŬĨŽƌƚŚĞŽƵŶĐŝů͛ƐĐŽŶƐŝĚĞƌĂƚŝŽŶŽĨĂůůŽĐĂƚŝŶŐϭϬйŽĨƚŚĞΨϲϲϱ͕ϬϬϬsͲŐĞŶĞƌĂƚĞĚdZ ĨƵŶĚƐƚŽŶǀŝƌŽŶŵĞŶƚĂůsŽůƵŶƚĞĞƌƐǁŚĞŶĂŶĚŝĨƚŚĞĨƵŶĚƐďĞĐŽŵĞĂǀĂŝůĂďůĞ͘KƌƉůĞĂƐĞĞdžƉůŽƌĞĂůƚĞƌŶĂƚŝǀĞ ƐŽƵƌĐĞƐĨŽƌƚŚŝƐƉƵƌƉŽƐĞ͘ dŚĂŶŬLJŽƵĨŽƌLJŽƵƌĐŽŶƐŝĚĞƌĂƚŝŽŶŽĨƐƵƉƉŽƌƚĨŽƌƚŚŝƐǀĂůƵĂďůĞĐŽŵŵƵŶŝƚLJƌĞƐŽƵƌĐĞ͘  ŽŶDĐŽƵŐĂůů WĂůŽůƚŽƌĞƐŝĚĞŶƚ   dŚŝƐůĞƚƚĞƌŝƐƐƵďŵŝƚƚĞĚĂƐĂƌĞƐŝĚĞŶƚ͕ŶŽƚĂƐĂƌĞƉƌĞƐĞŶƚĂƚŝǀĞŽĨŶǀŝƌŽŶŵĞŶƚĂůsŽůƵŶƚĞĞƌƐ͘ĐŽƉLJŝƐ ĂƚƚĂĐŚĞĚ      &281&,/0((7,1* 5HFHLYHG%HIRUH0HHWLQJ 212/17/2018 ✔ ATTACHMENT B PALO ALTO HISTORY MUSEUM | ID 77-0634933 | PO Box 676, Palo Alto, CA 94302 | 650.322.3089 | PaloAltoMuseum.org February 27, 2020 TO: City Council FR: Laura Bajuk, ED RE: Museum on City Council Agenda for March 2, 2020 Thank you to you and your hard-working staff for the opportunity to update you on the Museum project, our current status, and thoughts on moving forward. We last appeared before Council on December 11, 2017, where Council unanimously accepted a “carrot and stick” approach. We were challenged to raise $1.75 million in just over a year. If we proved we could raise the funds, we could gain additional funds from the Sea Scout TDR sale. If we didn’t meet the challenge goal, City staff could be directed to release a new RFP to develop the Roth Building. The carrot won - we exceeded the City challenge. Since that time, we have: Seen the Sea Scout TDR funds allocated by the City and received a County grant (payable to the City) for $102,992.00 towards the Roth rehabilitation, Added seven dynamic new board members (just over half the board) and critical policies such as whistleblower and document retention policies, Pulled our building permit, are keeping it active and are maintaining our 2016 contract with Vance Brown, Updated our fundraising materials, created a corporate campaign, and are working on a more effective web site, Controlled expenses tightly, have seen increased annual revenue, and have held about a million dollars in our bank and investment accounts (for the first time in our history) and have maintained that despite regular expenses. Meeting the City challenge triggered the verification by MGO. While not a full audit, it was a comprehensive, in-depth review of our financial and fundraising history since the project began. The process was positive and all professionals involved were efficient and cooperative. The process drew out how our increasing professionalism over time has improved operations; we continue to make recommended improvements. That brings us to the present. As you are well aware, regional construction costs continue to escalate. Our not-to-exceed contract with Vance Brown (2016) is stretched to its limit, and sub-contractor estimates are rising. A review of potential expenses, undertaken recently at the request of City staff, shows that the margin to construction has increased substantially due to regional pressures. Our shared goal is to develop a museum that will enrich this community, and we appreciate your ongoing support. Clearly, the rehabilitation costs are a financial challenge. We are open to all reasonable opportunities to achieve this goal, and ask that you direct staff to explore such options with the Museum board and staff. Thank you for your consideration, and for the aid of City staff who are part of this process. We are very grateful for your support. Laura Bajuk, Executive Director HONORARY CHAIR: Dean Clark BOARD OF DIRECTORS Rich Green, President Patricia Sanders, Vice President Hon. Lanie Wheeler, Treasurer Margaret Feuer, Secretary Beth Bunnenberg Kevin Curry John W. King Doug Kreitz Hal Mickelson John C. Northway Nelson Ng Steve Staiger STAFF Laura Bajuk, Executive Director Crystal Taylor, Assistant Director Lynette York, Bookkeeper Kitzi Tanner, Construction Project Mgr. Sergio Mello, Corporate Outreach A community-driven effort supported by over 900 individuals, corporations, foundations, Santa Clara County and the City of Palo Alto. Founding Supporters: Palo Alto Historical Association University South Neighborhood Association Palo Alto-Stanford Heritage Museum of American Heritage Endorsed by: Palo Alto Woman’s Club Palo Alto Chamber of Commerce Professor Gordon Chang, Stanford Stanford Historical Society Stanford Special Collections and University Archives Palo Alto Housing Corporation Pacific Art League Canopy City of Palo Alto (ID # 10975) City Council Staff Report Report Type: Informational Report Meeting Date: 3/2/2020 City of Palo Alto Page 1 Council Priority: Climate/Sustainability and Climate Action Plan Summary Title: Informational Report on Renewable and Carbon Neutral Electricity Supplies Title: Annual Review of the City’s Renewable Procurement Plan, Renewable Portfolio Standard Compliance, and Carbon Neutral Electric Supplies From: City Manager Lead Department: Utilities Recommendation This is an informational report and no Council action is required. Executive Summary Like all electric utilities in California, Palo Alto is subject to the state’s Renewable Portfolio Standard (RPS) mandate – which increased in 2018 from 50% to 60% by 2030. The City has also adopted a Carbon Neutral Plan, which led to the achievement of a carbon neutral electric supply portfolio starting in 2013. In December 2011, in compliance with the state RPS regulations, the Council also formally adopted an RPS Procurement Plan and an RPS Enforcement Program that recognize certain elements of the state’s RPS law applicable to publicly-owned utilities. The RPS Enforcement Program requires the Utilities Director to conduct an annual review of the Electric Utility’s compliance with the procurement targets set forth in the City’s RPS Procurement Plan. This staff report satisfies the reporting requirements of the City’s RPS Enforcement Program, while also providing an update on the City’s compliance with the Carbon Neutral Plan. The City continues to meet both its RPS and carbon neutrality objectives and has achieved an RPS level of greater than 60% since 2017 – 13 years earlier than it is required to achieve that level under state law. Background The City currently has two independent procurement targets related to renewable and carbon neutral electricity: City of Palo Alto Page 2 • RPS Procurement Plan (50% by 2030): The City’s official renewable electricity goal is contained in the RPS Procurement Plan that the City was required to adopt under Section 399.30(a) of California’s Public Utilities Code. This was adopted by the City Council in December 2011 (Council Report 2225, Resolutions 9214 and 9215); updated in November 2013 (Council Report 4168, Resolution 9381) and updated in December 2018 (Council Report 9761, Resolution 9802). The most recent update to the RPS Procurement Plan brought it into alignment with the state’s 50% RPS law (SB 350), which was signed into law in 2015.1 The RPS Procurement Plan and Enforcement Program complement each other: the Procurement Plan establishes official procurement targets, while the Enforcement Program specifies the reporting and monitoring that is required of the Utilities Director while working to achieve those targets. The procurement requirement in the City’s current RPS Procurement Plan is that the City acquire renewable electricity supplies equal to 50% of retail sales by 2030, which was in line with the state’s RPS mandate, prior to the passage of the California Renewables Portfolio Standard Program (SB 100) in September 2018. The RPS Procurement Plan also contains interim targets for six separate periods (2011-2013, 2014-2016, 2017-2020, 2021-2024, 2025-2027, and 2028-2030). • Carbon Neutral Plan (100% Carbon Neutral Electricity by 2013): The Carbon Neutral Plan was adopted by the City Council in March 2013 (Council Report 3550, Resolution 9322), and requires that the City procure a carbon neutral electric supply. In general, this goal is expected to be achieved primarily through purchases made under the City’s long-term renewable power purchase agreements (PPAs) and output from its hydroelectric resources. But in dry hydro years when hydroelectric resources are lower than expected, carbon neutrality may be achieved through the purchase of renewable energy certificates (RECs) to offset fossil fuel-based market power purchases. Discussion The City continues to meet its objectives under the RPS Procurement Plan and the Carbon Neutral Plan and achieved an RPS level of 64.6% in 2018 – exceeding the state’s 2030 procurement mandate for the second year in a row. Below is a summary of CPAU’s progress toward satisfying its renewable energy and carbon neutral procurement targets, with additional detail provided in Attachment A. RPS Procurement Plan Compliance In CY 2018, the City received 573,543 MWh of renewable energy through its long-term contracts for wind, solar, landfill gas, and small hydro resources. This volume represents 64.6% of the City’s total retail sales for that period. For CY 2019, staff projects that renewable 1 Staff plans to update the RPS Procurement Plan again in early 2020 to bring it into alignment with SB 100, which was passed in the fall of 2018 and raised the state’s RPS mandate to 60% by 2030. At present, the California Energy Commission (CEC) is still in the process of adopting regulations implementing the new law. City of Palo Alto Page 3 electricity supplies will equal 38.1% of retail sales, even after accounting for the 200,000 GWh of excess RPS supplies sold by the City in 2019. (Due to 2019 being a very wet year, the City received far more hydro generation than normal, and thus had a significant amount of energy in excess of its total load.) In accordance with the state’s RPS Program requirements, CPAU’s Procurement Plan develops a renewable electric supply portfolio that balances environmental goals with system reliability while maintaining stable and low retail electric rates. The state RPS program requires retail electricity suppliers like CPAU to procure progressively larger renewable electricity supplies across three separate Compliance Periods. CPAU’s procurement targets, as well as its actual/projected procurement volumes and RPS levels for the three Compliance Periods are summarized in Table 1 below. City of Palo Alto Page 4 Table 1: RPS Compliance Period Procurement Targets and Actual/Projected Procurement RPS Compliance Period Years Retail Sales (MWh) Procurement Target (MWh) Actual/Projected* Procurement (MWh) % of Retail Sales 1 2011-2013 2,837,773 567,555 607,740 21.4% 2 2014-2016 2,801,056 605,949 826,855 29.5% 3 2017-2020 3,505,835 1,050,733 1,996,771 57.0% TOTALS 9,144,664 2,224,237 3,431,366 37.5% *Procurement totals for Compliance Periods 1 and 2 are actuals; procurement totals for Compliance Period 3 are a combination of actual data (for 2017-2018) and projected data (for 2019-2020), and reflect executed sales of 200,000 MWh of renewable supplies for 2019. Carbon Neutral Plan In CY 2018, CPAU achieved its goal, set forth in the Carbon Neutral Plan, of an electric supply portfolio with zero net greenhouse (GHG) emissions for the sixth consecutive year, without the need to purchase unbundled RECs in the market. Carbon neutrality was achieved in CY 2018 through existing hydro and renewable generation (wind, solar, and landfill gas). Due to favorable hydro conditions, CPAU had a surplus of renewable energy, which was then sold on the energy market. For CY 2019, well above average hydro conditions are expected to result in over 70% of the City’s electric supply needs being supplied by hydroelectric resources, with an additional 60% coming from non-hydro renewable energy resources. As a result, the City will have a significant surplus of electrical energy supplies overall. As noted above, the City has already elected to sell the majority of these excess supplies (about 200,000 MWh) from the renewable resources, which carry a significant financial premium relative to hydroelectric energy. Policy Implications This report implements Sections 4 and 5 of the City’s RPS Enforcement Program, which require an annual review of the Electric Utility’s compliance with the CPAU RPS Procurement Plan to ensure that CPAU is making reasonable progress toward meeting the compliance obligations established in the CPAU RPS Procurement Plan. Environmental Review The Council’s review of this report does not meet the definition of a “project” pursuant to Public Resources Code Section 21065, thus California Environmental Quality Act review is not required. Attachments: • Attachment A: 2018 RPS and Carbon Neutral Supply Procurement Details Renewable and Carbon Neutral Electricity Supply Procurement Details Renewable Energy Goals In CY 2018, the City received 573,543 MWh of renewable energy through its long-term contracts for wind, solar, landfill gas, and small hydro resources. This volume represents 64.6% of the City’s total retail sales for that period. For CY 2019, staff projects that renewable electricity supplies will equal 38.1% of retail sales (after accounting for the sale of 200,000 MWh of renewable energy supplies; the City’s RPS level would equal 60.8% without these sales). Table 1 shows the renewable resources currently under contract, the status of the projects, their annual output in Gigawatt-hours (GWh), and the rate impact of each resource that was calculated at the time it was added to the electric supply portfolio. Table 1: Summary of Contracted Renewable Electricity Resources Resource Delivery Begins Delivery Ends Annual Generation (GWh) Rate Impact (¢/kWh) Small Hydro Before 2000 N/A 10.0 0 High Winds Dec. 2004 Jun. 2028 42.7 0.012 Shiloh I Wind Jun. 2006 Dec. 2021 57.3 (0.041) Santa Cruz Landfill Gas (LFG) Feb. 2006 Feb. 2026 9.0 0.003 Ox Mountain LFG Apr. 2009 Mar. 2029 42.5 (0.040) Keller Canyon LFG Aug. 2009 Jul. 2029 13.8 (0.020) Johnson Canyon LFG May 2013 May 2033 10.4 0.064 San Joaquin LFG Apr. 2014 Apr. 2034 27.5 0.127 Kettleman Solar Aug. 2015 Aug. 2040 53.5 0.099 Hayworth Solar Dec. 2015 Dec. 2042 63.7 0.026 Frontier Solar Jul. 2016 Jul. 2046 52.5 0.011 Elevation Solar C Dec. 2016 Dec. 2041 100.8 (0.044) W. Antelope Blue Sky Ranch B Dec. 2016 Dec. 2041 50.4 (0.002) CLEAN Program Projects Varies Varies 5.0 0.027 Total Operating Resources 539.0 0.223 Wilsona Solar Jun. 2021 May 2046 75.0 (0.056) Total Non-Operating Resources 75.0 (0.056) Total Committed Resources 614.0 0.168 RPS Procurement Plan Compliance Annually, the Utilities General Manager reviews CPAU’s RPS Procurement Plan to determine compliance with the state’s RPS Program. Under the state RPS Program, the California Energy Commission (CEC) developed portfolio balancing requirements, which dictate what percentage of renewable procurement must come from resources interconnected to a California Balancing Area (as opposed to an out-of-state transmission grid balancing area). These requirements also determine the eligibility criteria for renewable resource products as determined by their eligible ATTACHMENT A Portfolio Content Categories1, found in the CEC Enforcement Procedure RPS (CA Code of Regulations, Title 20, Section 3203). The CEC Enforcement Procedures apply to publicly owned utilities (POUs), such as CPAU. In accordance with the state’s RPS Program requirements, CPAU’s Procurement Plan develops a renewable electric supply portfolio that balances environmental goals with system reliability while maintaining stable and low retail electric rates. The state RPS program requires retail electricity suppliers like CPAU to procure progressively larger renewable electricity supplies across three separate Compliance Periods, as outlined below. 1. Compliance Period 1 (2011 – 2013) For Compliance Period 1 (2011-2013) retail electricity providers were required to procure renewable electricity supplies equaling 20% of total retail sales, which CPAU did. In this period, CPAU supplied 21.4% of the City’s retail electricity sales volumes from renewable energy sources. The procurement results for Compliance Period 1 are displayed in Table 2 below: Table 2: Compliance Period 1 RPS Procurement Details Year Retail Sales (MWh) Procurement Target (MWh)* Actual Procurement (MWh) % of Retail Sales 2011 949,517 189,903 207,974 21.9% 2012 935,021 187,004 200,621 21.5% 2013 953,235 190,647 199,145 20.9% TOTAL 2,837,773 567,555 607,740 21.4% * Annual procurement targets are “soft” targets. The RPS Procurement Plan requires that the target be met for the compliance period as a whole, not in each year of the compliance period. All of the renewable energy procured in Compliance Period 1 came from resources whose contracts were executed before June 1, 2010. The RPS Procurement Plan considers these contracts “grandfathered,” and since all of the renewable energy procurement for Compliance Period 1 was from these types of contracts, there was no need to meet the Portfolio Balancing Requirements included in Section B.4 of the RPS Procurement Plan. 2. Compliance Period 2 (2014 – 2016) In Compliance Period 2, renewable procurement must equal or exceed the sum of the three annual RPS procurement targets described by the following equations: 2014 RPS Target = 20% × (Retail Sales in 2014) 2015 RPS Target = 20% × (Retail Sales in 2015) 2016 RPS Target = 25% × (Retail Sales in 2016) 1 RPS Portfolio Content Categories are defined as follows: Category 1 is energy and RECs delivered to a California Balancing Authority (CBA) without substituting electricity from another source, Category 2 is energy and RECs that cannot be delivered to a CBA without substituting electricity from another source, and Category 3 is unbundled RECs. As shown in Table 3 below, CPAU easily exceeded this mandated procurement level as well. Renewable electricity procurement equaled 29.5% of retail sales for Compliance Period 2 overall. Table 3: Compliance Period 2 RPS Procurement Details Year Retail Sales (MWh) Procurement Target (MWh)* Actual Procurement (MWh) % of Retail Sales 2014 953,386 190,677 210,250 22.1% 2015 932,922 186,584 241,262 25.9% 2016 914,748 228,687 375,343 41.0% TOTAL 2,801,056 605,949 826,855 29.5% * Annual procurement targets are “soft” targets. The RPS Procurement Plan requires that the target be met for the compliance period as a whole, not in each year of the compliance period. Also in Compliance Period 2, the RPS Portfolio Balancing Requirements applied to the procurement levels described above. The specific requirements are: (1) CPAU must procure at least 65% of its renewable supplies from Portfolio Content Category 1, and (2) no more than 15% from Portfolio Content Category 3 (unbundled RECs). CPAU easily met the Compliance Period 2 overall procurement requirement and the RPS Portfolio Balancing Requirement, as five new solar projects came online in 2015 and 2016, and all of these projects are considered Portfolio Content Category 1 resources. 3. Compliance Period 3 (2017 – 2020) For Compliance Period 3, CPAU is subject to “soft” targets to supply at least 27% of its retail sales volume from renewable resources in 2017, with that level increasing by 2% each year until reaching 33% in 2020, as described by the following four equations: 2017 RPS Target = 27% × (Retail Sales in 2017) 2018 RPS Target = 29% × (Retail Sales in 2018) 2019 RPS Target = 31% × (Retail Sales in 2019) 2020 RPS Target = 33% × (Retail Sales in 2020) The overall Compliance Period 3 target is equal to the sum of these four annual soft targets. CPAU is expected to easily comply with the Compliance Period 3 overall procurement requirement, as well as the Portfolio Balancing Requirement that at least 75% of the renewable electricity supplies come from Portfolio Content Category 1 and no more than 10% come from Portfolio Content Category 3. Staff projects that renewable electricity supplies will satisfy almost 60% of retail sales for Compliance Period 3, even after accounting for the 200,000 GWh of excess RPS supplies sold in 2019, and that all of these supplies will come from either Portfolio Content Category 1 or “grandfathered” resources. Table 4: Compliance Period 3 RPS Procurement Details Year Retail Sales (MWh) Procurement Target (MWh)* Actual/Projected Procurement (MWh) % of Retail Sales 2017 884,422 238,794 554,206 62.7% 2018 888,033 257,530 573,543 64.6% 2019** 880,283 272,888 334,922 38.1% 2020** 853,097 281,522 534,100 62.6% Total 3,505,835 1,050,733 1,996,771 57.0% * Annual procurement targets are “soft” targets. The RPS Procurement Plan requires that the target be met for the compliance period as a whole, not in each year of the compliance period. ** Projected annual data. 2019 Procurement data reflects executed sales of 200,000 MWh. Finally, as required by the CEC RPS Enforcement Procedures and Section D of the City’s Procurement Plan, staff reported all of the above information to the California Energy Commission in June 2019. Carbon Neutral Plan In CY 2018, CPAU achieved its goal, set forth in the Carbon Neutral Plan, of an electric supply portfolio with zero net greenhouse (GHG) emissions for the fifth consecutive year, without the need to purchase unbundled RECs in the market. Carbon neutrality was achieved in CY 2018 through existing hydro and renewable generation (wind, solar, and landfill gas). Due to favorable hydro conditions, CPAU had a surplus of energy overall, which was then sold in the wholesale market. For CY 2019, well above average hydro conditions are expected to result in over 70% of the City’s electric supply needs being supplied by hydroelectric resources, with an additional 60% coming from non-hydro renewable energy resources. As a result, the City will have a significant surplus of electrical energy supplies overall. As noted above, the City has already elected to sell the majority of these excess supplies (about 200,000 MWh) from the renewable resources, which carry a significant financial premium relative to hydroelectric energy. (Final generation data for CY 2019 is expected to be received in early CY 2020.) Figure 1 below illustrates the City’s actual and projected purchases of carbon neutral electric supplies that have been made to satisfy its renewable energy and Carbon Neutral Plan objectives. Figure 1: CPAU Carbon Neutral Supply Resources 200,000 MWh of surplus sold City of Palo Alto (ID # 11020) City Council Staff Report Report Type: Informational Report Meeting Date: 3/2/2020 City of Palo Alto Page 1 Summary Title: Sales Tax Digest Summary 2019 Q2 Title: City of Palo Alto Sales Tax Digest Summary For the Second (Calendar) Quarter of 2019 (April - June 2019) From: City Manager Lead Department: Administrative Services Informational Summary The City received $8.7 million for the second quarter (calendar year) sales of 2019 which is $0.9 million (11.9 percent) higher than the same quarter in 2018. The following files, compiled by the City’s sales tax consultant, MuniServices/Avenu, are attached for this informational report for which no action is required. Attachments: • Attachment A: Avenu Sales Tax Digest Summary • Attachment B: Economic Categories and Segments • Attachment C: Avenu Economic News and Trends Report City of Palo Alto Sales Tax Digest Summary Collections through September 2019 Sales through June 2019 (2019Q2) www.avenuinsights.com (800) 800-8181 Page 1 % of Total / % Change City of Palo Alto California Statewide S.F. Bay Area Sacramento Valley Central Valley South Coast Inland Empire North Coast Central Coast General Retail 28.8 / -0.3 27.6 / 3.8 25.5 / 2.5 27.0 / 5.1 28.4 / 0.3 28.6 / 4.0 27.6 / 8.8 30.1 / 3.8 28.0 / 1.4 Food Products 16.6 / 1.0 23.0 / 6.6 24.6 / 6.9 18.1 / 4.5 17.5 / 7.0 24.7 / 6.3 19.7 / 9.5 16.8 / -12.8 35.8 / 14.6 Construction 1.3 / -3.5 10.3 / 2.5 10.4 / 1.8 12.8 / -0.7 12.6 / 3.2 9.2 / 4.5 11.6 / 3.4 16.6 / -4.7 9.1 / 14.0 Business to Business 26.5 / 14.4 12.6 / -11.3 14.9 / -11.3 11.7 / -4.3 13.2 / 9.0 11.9 / -11.8 11.6 / -15.4 8.2 / -7.8 3.5 / -26.8 Misc/Other 26.7 / 25.9 23.8 / -1.1 24.6 / 8.2 30.4 / 4.9 28.4 / 4.7 25.6 / 6.1 29.5 / 3.8 28.4 / -17.4 23.6 / 1.4 Total 100.0 / 9.7 100.0 / 2.5 100.0 / 2.4 100.0 / 3.0 100.0 / 4.1 100.0 / 2.9 100.0 / 3.4 100.0 / -8.1 100.0 / 5.3 City of Palo Alto California Statewide S.F. Bay Area Sacramento Valley Central Valley South Coast Inland Empire North Coast Central Coast Largest Segment Auto Sales - New Restaurants Restaurants Restaurants Department Stores Restaurants Restaurants Department Stores Restaurants % of Total / % Change 20.1 / 41.8 16.8 / 8.9 18.3 / 9.4 12.6 / 7.3 12.9 / 7.8 18.6 / 8.6 12.7 / 10.0 12.2 / 15.2 25.9 / 17.6 2nd Largest Segment Restaurants Auto Sales - New Auto Sales - New Auto Sales - New Restaurants Auto Sales - New Auto Sales - New Auto Sales - New Auto Sales - New % of Total / % Change 16.8 / 1.8 11.7 / 9.7 12.0 / 12.6 11.9 / 3.0 11.8 / 11.1 12.0 / 11.3 10.9 / 5.7 11.2 / -13.1 11.9 / 2.6 3rd Largest Segment Leasing Department Stores Department Stores Department Stores Auto Sales - New Department Stores Department Stores Restaurants Miscellaneous Retail Stores % of Total / % Change 7.9 / -16.2 9.3 / 5.3 7.4 / 3.6 10.9 / 6.8 10.9 / 6.4 9.0 / 5.0 10.6 / 9.7 10.1 / 15.4 10.1 / 6.7 *** Not specified to maintain confidentiality of tax information CITY OF PALO ALTO BENCHMARK YEAR 2019Q2 COMPARED TO BENCHMARK YEAR 2018Q2 ECONOMIC CATEGORY ANALYSIS FOR YEAR ENDED 2nd Quarter 2019 ECONOMIC SEGMENT ANALYSIS FOR YEAR ENDED 2nd Quarter 2019 California Overview The percent change in cash receipts from the prior year was 16.2% statewide, 16.5% in Northern California and 16.0% in Southern California. The period’s cash receipts include tax from business activity during the period, payments for prior periods and other cash adjustments. When we adjust for non- period related payments, we determine the overall business activity increased for the year ended 2nd Quarter 2019 by 20.3% statewide, 18.9% in Southern California and 22.0% in Northern California. City of Palo Alto For the year ended 2nd Quarter 2019, sales tax cash receipts for the City increased by 21.4.% from the prior year. On a quarterly basis, sales tax revenues increased by 11.9% from 2nd Quarter 2018 to 2nd Quarter 2019. The period’s cash receipts include tax from business activity during the period, payments for prior periods and other cash adjustments. Excluding state and county pools and adjusting for anomalies (payments for prior periods) and late payments, local sales tax increased by 9.7% for the year ended 2nd Quarter 2019 from the prior year. On a quarterly basis, sales tax activity increased by 3.9% in 2nd Quarter 2019 compared to 2nd Quarter 2018. Regional Overview This seven-region comparison includes estimated payments and excludes net pools and adjustments. ATTACHMENT A City of Palo Alto www.avenuinsights.com (800) 800-8181 Page 2 Gross Historical Sales Tax Performance by Benchmark Year and Quarter (Before Adjustments) $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 Quarterly Benchmark Year Net Cash Receipts for Benchmark Year 2nd Quarter 2019: $36,089,829 *Benchmark year (BMY) is the sum of the current and 3 previous quarters (2019Q2 BMY is sum of 2019 Q1, 2018 Q4, Q3, Q2) Restaurants 11.8% Apparel Stores 5.5% Department Stores 5.2% Miscellaneous Retail 4.4%Business Services 1.6% Service Stations 2.0% All Other 50.1% Net Pools & Adjustments 19.5% ATTACHMENT A City of Palo Alto www.avenuinsights.com (800) 800-8181 Page 3 $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 Benchmark Year 2019Q2 Benchmark Year 2018Q2 Anderson Honda Lucile Packard Children's Hosp Stanford Outpatient Clinic Pharmacy Apple Stores Macy's Department Store Tencent Audi Palo Alto Magnussen's Toyota Of Palo Alto Tesla Bloomingdale's Mclaren San Francisco Tesla Lease Trust Bon Appetit Management Co.Neiman Marcus Department Store Tiffany & Company Hermes Nest Labs Urban Outfitters Houzz Shop Nordstrom Department Store Varian Medical Systems Hp Enterprise Services Shell Service Stations Volvo Cars Palo Alto Integrated Archive Systems TOP 25 SALES/USE TAX CONTRIBUTORS The following list identifies Palo Alto’s Top 25 Sales/Use Tax contributors. The list is in alphabetical order and represents the year ended 2nd Quarter 2019. The Top 25 Sales/Use Tax contributors generate 54.7% of Palo Alto’s total sales and use tax revenue. Sales Tax from Largest Non-Confidential Economic Segments ATTACHMENT A City of Palo Alto www.avenuinsights.com (800) 800-8181 Page 4 Historical Analysis by Calendar Quarter Economic Category % 2019Q2 2019Q1 2018Q4 2018Q3 2018Q2 2018Q1 2017Q4 2017Q3 2017Q2 2017Q1 2016Q4 Business To Business 21.3% 2,047,219 2,198,385 2,428,644 1,937,139 1,965,691 1,851,152 2,635,136 1,860,347 1,952,490 1,684,023 2,784,731 General Retail 22.7% 1,981,968 1,843,013 2,567,368 2,195,807 1,629,266 1,516,808 1,881,732 1,602,213 1,301,138 1,392,756 1,621,044 Misc/Other 20.3% 1,776,358 1,304,318 1,213,676 1,187,765 1,237,941 1,183,895 1,206,578 1,184,645 1,189,257 1,192,662 1,235,801 Food Products 14.3% 1,252,840 1,160,612 1,877,247 2,260,007 1,789,526 1,639,073 1,569,619 1,448,336 1,284,056 1,240,962 1,004,883 Net Pools & Adjustments 21.4% 1,876,055 1,214,253 1,820,850 2,139,510 1,191,568 -183,952 1,136,075 1,374,372 1,210,511 1,631,125 1,351,709 Total 100.0% 8,746,661 7,715,155 9,907,785 9,720,228 7,813,992 6,006,976 8,429,140 7,469,913 6,937,452 7,141,528 7,998,168 Economic Segments % 2019Q2 2019Q1 2018Q4 2018Q3 2018Q2 2018Q1 2017Q4 2017Q3 2017Q2 2017Q1 2016Q4 Miscellaneous/Other 48.6% 4,251,453 4,051,654 4,881,849 4,854,095 3,747,045 3,373,907 3,791,527 3,233,434 2,986,873 2,910,133 2,939,228 Restaurants 11.8% 1,035,216 1,045,521 1,066,578 1,060,546 1,124,991 1,045,496 1,054,073 1,049,565 1,058,606 1,043,747 1,071,053 Apparel Stores 4.6% 404,627 408,968 405,979 361,406 439,601 412,952 701,369 419,279 452,135 435,757 1,002,389 Department Stores 4.1% 356,943 356,943 599,795 475,142 495,267 471,419 642,666 458,066 510,561 392,565 641,541 Miscellaneous Retail 3.7% 324,279 326,994 596,192 448,510 451,110 390,780 585,892 440,005 449,402 372,033 553,250 Business Services 2.3% 198,913 181,454 173,916 148,751 154,446 163,072 148,906 147,499 159,371 119,552 130,396 Service Stations 1.8% 159,032 159,032 110,015 98,072 97,870 117,783 128,671 117,256 112,566 131,676 145,179 Food Markets 1.2% 105,601 95,783 175,994 43,961 57,433 155,193 157,861 173,439 75,722 43,548 102,095 Recreation Products 0.4% 34,543 34,543 76,617 90,235 54,661 60,326 82,100 56,998 76,514 61,392 61,328 Net Pools & Adjustments 21.4% 1,876,055 1,054,264 1,820,850 2,139,510 1,191,568 -183,952 1,136,075 1,374,372 1,055,702 1,631,125 1,351,709 Total 100.0% 8,746,661 7,715,155 9,907,785 9,720,228 7,813,992 6,006,976 8,429,140 7,469,913 6,937,452 7,141,528 7,998,168 *Net Pools & Adjustments reconcile economic performance to periods’ net cash receipts. The historical amounts by calendar quarter: (1) include any prior period adjustments and payments in the appropriate category/segment and (2) exclude businesses no longer active in the current period. ATTACHMENT A City of Palo Alto www.avenuinsights.com (800) 800-8181 Page 5 Quarterly Analysis by Economic Category, Total and Segments: Change from 2018Q2 to 2019Q2 Ge n e r a l R e t a i l Fo o d P r o d u c t s Co n s t r u c t i o n Bu s i n e s s t o B u s i n e s s Mi s c / O t h e r 20 1 9 / 2 T o t a l 20 1 8 / 2 T o t a l % C h g La r g e s t G a i n Se c o n d L a r g e s t Ga i n La r g e s t D e c l i n e Se c o n d L a r g e s t De c l i n e Campbell -3.9% 6.7% 0.2% 1.1% 3.2% 2,578,752 2,539,508 1.5%Electronic Equipment Restaurants Furniture/Appliance Office Equipment Cupertino -2.5% 0.1% 2.5% 10.4% 0.3% 6,053,958 5,623,788 7.6%Office Equipment Bldg.Matls-Retail I.T. Infrastructure Furniture/Appliance Gilroy 1.9% 0.6% 6.8% 6.9% 4.6% 4,114,200 3,976,051 3.5%Auto Sales - New Department Stores Misc. Vehicle Sales Heavy Industry Los Altos -21.3% 0.8% 23.8% 89.1% -2.2% 630,004 630,814 -0.1%Business Services Food Markets Miscellaneous Retail Furniture/Appliance Los Gatos 5.1% 1.3% -14.9% -4.7% 22.2% 1,728,207 1,593,469 8.5%Auto Sales - New Miscellaneous Retail Bldg.Matls-Whsle Business Services Milpitas 2.1% 2.6% 17.6% 35.5% -2.5% 5,862,855 5,220,223 12.3%Office Equipment Bldg.Matls-Whsle Heavy Industry I.T. Infrastructure Morgan Hill 0.7% 5.1% -9.5% -43.4% 16.2% 2,228,860 2,248,394 -0.9%Auto Sales - New Light Industry Heavy Industry Electronic Equipment Mountain View 54.4% 10.5% 26.4% 3.2% 2.0% 5,725,691 4,822,532 18.7%Miscellaneous Retail Restaurants Office Equipment Food Markets Palo Alto -5.7% 0.8% 13.4% 6.9% 15.8% 7,069,822 6,804,507 3.9%Auto Sales - New Office Equipment Leasing I.T. Infrastructure San Jose -7.5% 2.2% -3.2% -8.5% -3.1% 41,238,463 43,198,005 -4.5%Auto Sales - New I.T. Infrastructure Department Stores Green Energy Santa Clara 29.0% 4.3% -8.5% -5.6% -3.4% 12,059,317 12,016,551 0.4%Furniture/Appliance Office Equipment Light Industry Auto Sales - New County of Santa Clara -3.2% 0.9% -3.3% -58.9% -14.9% 1,180,339 1,447,962 -18.5%Health & Government Food Processing Eqp Miscellaneous Other Light Industry Saratoga -2.6% 7.6% -28.1% -22.4% -9.1% 241,865 242,457 -0.2%Food Processing Eqp Restaurants Electronic Equipment Bldg.Matls-Whsle Sunnyvale -12.0% -1.4% -10.3% 5.2% 12.9% 6,312,122 6,209,109 1.7%Light Industry Auto Sales - New Department Stores Office Equipment ATTACHMENT A Economic Categories and Segments  Economic Category Economic Segment Description  Business to Business ‐ sales of  tangible personal property from  one business to another business  and the buyer is the end user.  Also includes use tax on certain  purchases and consumables.  Business Services Advertising, banking services,  copying, printing and mailing  services  Chemical Products Manufacturers and wholesalers  of drugs, chemicals, etc.  Electronic Equipment Manufacturers of televisions,  sound systems, sophisticated  electronics, etc.  Energy Sales Bulk fuel sales and fuel  distributors and refiners  Heavy Industry Heavy machinery and  equipment, including heavy  vehicles, and manufacturers and  wholesalers of textiles and  furniture and furnishings  Leasing Equipment leasing  Light Industry Includes, but is not limited to,  light machinery and automobile,  truck, and trailer rentals  Office Equipment Businesses that sell computers,  and office equipment and  furniture, and businesses that  process motion pictures and film  development  Construction Building Materials – Retail Building materials, hardware,  and paint and wallpaper stores  Building Materials ‐ Wholesale Includes, but is not limited to,  sheet metal, iron works, sand  and gravel, farm equipment,  plumbing materials, and  electrical wiring  Food Products Food Markets Supermarkets, grocery stores,  convenience stores, bakeries,  delicatessens, health food stores  Food Processing Equipment Processing and equipment used  in mass food production and  packaging  Liquor stores Stores that sell alcoholic  beverages   Restaurants Restaurants, including fast food  and those in hotels, and night  clubs  ATTACHMENT B Economic Categories and Segments  Economic Category Economic Segment Description  General Retail – all consumer  focused sales, typically brick and  mortar stores  Apparel Stores Men’s, women’s, and family  clothing and shoe stores  Department Stores Department, general, and variety  stores  Drug Stores Stores where medicines and  miscellaneous articles are sold  Florist/Nursery Stores where flowers and plants  are sold  Furniture/Appliance Stores where new and used  furniture, appliances, and  electronic equipment are sold  Miscellaneous Retail Includes, but is not limited to,  stores that sell cigars, jewelry,  beauty supplies, cell phones, and  books; newsstands, photography  studios; personal service  businesses such as salons and  cleaners; and vending machines  Recreation Products Camera, music, and sporting  goods stores  Miscellaneous/Other Miscellaneous/Other Includes but not limited to  health services, government,  nonprofit organizations, non‐ store retailers, businesses with  less than $20,000 in annual gross  sales, auctioneer sales, and  mortuary services and sales  Transportation Auto Parts/Repair Auto parts stores, vehicle and  parts manufacturing facilities,  and vehicle repair shops  Auto Sales ‐ New New car dealerships  Auto Sales ‐ Used Used car dealerships  Miscellaneous Vehicle Sales Sale and manufacture of  airplanes and supplies, boats,  motorcycles, all‐terrain vehicles,  trailers and supplies  Service stations Gas stations, not including  airport jet fuel  ATTACHMENT B ECONOMIC NEWS & TRENDS November 11, 2019 This edition reports on current Federal and State economic data, studies, and research. We encourage you to share this non-confidential report with others in our agency. Please contact your Client Success Manager to discuss specific regional trends. CONTENTS  Part 1: National Economic Indicators (Page 2 to 4)  Part 2: California’s Economy / Regional Summaries (Pages 4 to 5)  Part 3: Retail / E-Commerce (Pages 5 to 6)  Part 4: Auto Sales and Gasoline (Page 7)  Part 5: Grocery and Restaurant Trends (Page 7)  Part 6: Selected Retailer Updates (Page 8) ATTACHMENT C ECONOMIC NEWS & TRENDS November 11, 2019 2 www.avenuinsights.com PART 1: NATIONAL ECONOMIC INDICATORS / INFLUENCES Gross Domestic Product (GDP) / 3Q2019: Up 1.9% in 3Q2019; was 2% for 2Q2019. Consumer Spending in 3Q2019: Increased in both goods (recreational goods and vehicles as well as food and beverages) and in services (led by health care and housing and utilities). Prices of Goods and Services: Increased 1.4% in 3Q2019, increased 2.2% in 2Q2019. Food Prices: Decreased 0.6% in 3Q2019. Energy: Decreased 8% in 3Q2019. Government Spending: The increase in government spending reflected increases in both federal and state and local government spending. Business Investment: The decrease in business investment reflected decreases in structures (led by mining exploration, shafts, and wells) and in equipment (notably information processing equipment and transportation equipment). (https://www.bea.gov/data/gdp/gross-domestic-product; next release is November 27, 2019) Contribution to GDP by Industry for 2Q2019 Retail Trade: Increased 0.2% in 2Q2019, after increasing 8.8%. Reasons for Deceleration: Attributed to a slowdown in other retail, which includes gasoline stations as well as building material and garden equipment and supplies dealers. Utilities: Increased 18.1% in 2Q2019, after decreasing 3.5% in 1Q2019. (https://www.bea.gov/news/2019/gross-domestic- product-industry-second-quarter-2019, October 29, 2019; next release is January 9, 2020) Consumer Price Index / Spending - September 2019 CPI for All Urban Consumers: Unchanged in September after rising 0.1% in August. All Items Index: Over the last 12 months ending in September, increased 1.7%. Energy: Declined 1.4% in September, its fourth decline in the last 5 months. Gasoline: Declined 0.9% in September. Lodging Away From Home: Increased 2.1% in September after falling 2.1% in August. Increases for September: Shelter, rent (by 0.4%). Declines for September: Used cars and trucks (by 1.6%), new vehicles (by 0.1%), apparel (by 0.4%) after rising in each of the prior 3 months, communication, alcoholic beverages and personal care. https://www.bls.gov/opub/ted/2019/cpi-increased-1- point-7-percent-for-year-ending-september-2019.htm, October 10, 2019; October 2019 data release is November 13, 2019. Recession: The periodic skittishness in stock and bond markets have produced alarmism among certain analysts, but the current fundamentals do not appear to indicate a looming recession. While the current slowing in the economy will negatively impact fundamentals in the coming quarters, a full recession likely will require a more dramatic, as yet unforeseen, shock to the economy. CPI West Region: The West Region covered is comprised of the following states: Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, and Wyoming. West Region / September 2019: Up 0.3% since August 2019; up 2.6% from a year ago. Increase was influenced by higher shelter and apparel prices. The index for all items less food and energy rose 3.0% over the year. Food: September 2019 increased 2.7% since September of 2018. Food away from home increased 1.7% since September 2018. Energy: September 2019 increased 1.1% since September of 2018. Household Furnishings: Energy: September 2019 increased 1.1% since September of 2018. Housing: September 2019 increased 4.3% since September of 2018. Rent of Primary Residence: September 2019 increased 4.8% since September of 2018. Fuel and Utilities: September 2019 increased 2.2% since September of 2018. Apparel: September 2019 decreased 0.7% since September of 2018. Increased 4.3% since August 2019. New Cars and Trucks: September 2019 increased 1.1% since September 2018. Used Cars and Trucks: September 2019 increased 2.2% since September of 2018. Decreased 3.9% since August 2019. Gasoline: September 2019 decreased 2.2% since September of 2018. Services: September 2019 increased 3.4% since September of 2018. https://www.bls.gov/regions/west/news- release/consumerpriceindex_west.htm October 10, 2019; October 2019 Data Release is November 13, 2019) ATTACHMENT C ECONOMIC NEWS & TRENDS November 11, 2019 3 www.avenuinsights.com Consumer Spending U.S. Consumer Spending: September 2019, increased by 0.2%; August 2019, increased by 0.2%; July 2019, increased 0.5% and June 2019, increased 0.3%. (https://www.bea.gov/news/2019/personal-income-and- outlays-august-2019, September 27, 2019) U.S. Consumer Debt: In August 2019 rose 5.2%; revolving credit decreased at an annual rate of 2.2% and non-revolving credit (mostly education and auto loans) increased 7.75% in August after a 5.4% gain in July. (https://www.federalreserve.gov/releases/g19/current/, October 7, 2019) Consumer Confidence Index for October 2019: Declined in October (125.9), following a decline in September (126.3). The latest report notes that “consumers unlikely to curtail holiday spending.” (https://www.conference- board, October 29, 2019) Interest Rates: The Federal Reserve cut interest rates by a quarter percentage point late October in an effort to support an economy that continues to tap the brakes. (NPR, October 30, 2019) E-Commerce and Retail Sales  Total Retail Sales in 2Q2019: Increased 1.8% from 1Q2018, while e-commerce increased 4.2% from 1Q2019.  E-Commerce Year Over Year Estimate for 2Q2019: Increased 13.3% from 2Q2018, while total retail sales increased 3.2% from 2Q2019.  E-Commerce as Part of Total Sales in 2Q2019: Accounted for 10.7% of total sales; was 10.5% in 1Q2019; was 10.1% in 4Q2018; 10% in 3Q2018; 9.8% in 2Q2018.  Total Sales in 2018: Increased 4.8% from 2017. E- commerce sales in 2018 is 9.7% of total sales; 2017 is 8.9%. (https://www.census.gov/retail/mrts/www/data/pdf/ec_ current.pdf, August 19, 2019; Next release is November 19, 2019) Retail and Food Service for September 2019 Decreased A decrease in September from August of 0.3%, but 4.1% above September 2018. Total sales for the July 2019 through September 2019 period were up 4.0% from the same period a year ago. The July 2019 to August 2019 percent change was revised from up 0.4% to up 0.6%. Retail trade sales were down 0.3% from August 2019, but 4.0% above last year. Non-store retailers were up 12.9% from September 2018, and miscellaneous stores were up 9.3% from last year. Note these are early estimates. (https://www.census.gov/retail/marts/www/marts_curre nt.pdf October 16, 2019) Services Revenue  Services Sector Revenue for 2Q2019: An increase of 1.3% from 1Q2018 and up 5.3% from 2Q2018.  Information Sector: An increase of 1.8% from 1Q2019 and up 1.8% from 1Q2019.  Transportation/ Warehousing: Increase of 0.3% from 1Q2019 and up 2.0% from 2Q2018.  Utilities: Decrease of 1.5% from 1Q2019 and down 1.9% from 2Q2018.  Real Estate, Rental, and Leasing: Increase of 10% from 1Q2019 and up 6.6% from 2Q2018.  Professional, Scientific, and Technical Services: Increase 1.8% from 1Q2019; up 4.2% from 2Q2018.  Accommodations: An increase of 10.3% from 1Q2019 and up 1.2% from 2Q2018.  Arts and Entertainment: An increase of 12.4% from 1Q2019 and up 6.5% from 2Q2018.  Other Services: An increase of 2.1% from 1Q2019 and up 9.5% from 2Q2018. (https://www.census.gov/services/qss/qss-current.pdf, September 6, 2018; Next release is November 19, 2019) ATTACHMENT C ECONOMIC NEWS & TRENDS November 11, 2019 4 www.avenuinsights.com Forecasts Expects the national economy to slow to 0.4% in the second half of 2020, before rebounding to 2.1% in 2021. Given the slow growth rate nationally and the weakness in the housing market, expects California's unemployment rate to rise to an average of 5.1% in 4Q2020. For the entire years of 2020 and 2021, the unemployment rate in the state is expected to average 4.6%. https://www.anderson.ucla.edu/centers/ucla- anderson-forecast/september-2019-economic-outlook GDP Growth Forecast: 2.3% in 2019. Down from 2.9% in 2018. Will soften in 2020, an election year to 1.8%. Retail Sales: Growing 4.3% in 2019 excluding gas and autos. Interest Rates: 10-year T notes staying below 2% range until trade war ends. Inflation: 2.1% at end of 2019 as new tariffs affect consumer goods. Crude Oil: Trading at $50 to $55 per barrel in December. (Kiplinger, October 25, 2019. International Trade / Imports and Exports International Trade Deficit: Goods and Services Deficit: The deficit increased by 4.7% in September 2019.  Exports: Increased -0.9%: September exports were $206 billion, $1.8 billion less that August exports. Specific Goods: Automotive vehicles, parts, and engines decreased $1.0 billion. Passenger cars decreased $0.3 billion. Trucks, buses, and special purpose vehicles decreased $0.3 billion.  Imports: Increased -1.7%: September imports were $258.4 billion, $4.4 billion less than August imports. Specific Goods: Consumer goods decreased $2.5 billion. Cell phones and other household goods decreased $0.8 billion. Toys, games, and sporting goods decreased $0.6 billion. Automotive vehicles, parts, and engines decreased $1.1 billion. Trucks, buses, and special purpose vehicles decreased $0.4 billion. Automotive parts and accessories decreased $0.3 billion. Passenger cars decreased $0.3 billion. (https://www.census.gov/foreign-trade/Press- Release/current_press_release/ft900.pdf, November 5, 2019) Employment and Job Market Jobs and Unemployment: The unemployment rate, at 3.6%, was little changed in October and the U.S. economy added 128,000 jobs. Notable Gains: Food services and drinking places, social assistance, and financial activities. Within manufacturing, employment in motor vehicles and parts decreased due to strike activity. Federal government employment was down, reflecting a drop in the number of temporary jobs for the 2020 Census. (https://www.bls.gov/news.release/empsit.nr0.htm, November 1, 2019) Manufacturing New Orders of Durable Goods: September decreased 1.1%; follows three consecutive monthly increases, followed a 0.3% August increase. Computers and Electronic Products / September 2018 and 2019: Shipments up by 4.1% Computers and Related Products/ September 2018 and 2019: New orders down by 6.1%. Capital Goods (Non-Defense)/ September 2018 and 2019: Down by 3.9% (https://www.census.gov/manufacturing/m3/adv/pdf/du rgd.pdf, October 24, 2019) U.S. Residential Sales and Housing National New Home Sales in September: Total existing- home sales decreased 2.2%. Overall sales up 3.9% since September 2018. Mortgage Rates: A 30-year, fixed-rate mortgage decreased to 3.61% in September. All-Sales Purchases: 17% of transactions in September, down from 19% in August and 21% in September 2018. West Results: Existing home sales declined 0.9% in September, 5.6% above a year ago. The median price in the West was $403,600, up 4.5% from September 2018. (NAR, October 22, 2019) ATTACHMENT C ECONOMIC NEWS & TRENDS November 11, 2019 5 www.avenuinsights.com PART 2: CALIFORNIA ECONOMIC INDICATORS / INFLUENCES California GDP for 2Q2019: 1.9%. California GDP for 4Q2018 to 1Q2019 is 2.7%; previous quarter results are 2.2%. (BEA, November 7, 2019) Sales and Use Tax: For July to September 2019 (first three months of the fiscal year) were $77 million below forecast. Receipts for September were $52 million above the month’s forecast of $2.098 billion. Personal Income Tax: $420 million below forecast. Revenues for September were $401 million below the month’s forecast of $8.65 billion. Corporation Tax: July to September 2019 were $682 million above forecast. (DOF, October 2019) California’s Labor Market: Unemployment: California’s unemployment rate fell to a new record low of 4% in September, while labor force participation rate held at 62%. Unemployment: The U.S. unemployment rate fell to 3.5% in September, the lowest level since December 1969. Year-to-date, California’s unemployment rate is now averaging 4.2%, unchanged from the same period last year. For the U.S., year-to-date average unemployment rate is 3.7%, down 0.2 percentage point from last year’s year-to-date of 3.9%. (DOF, October 2019) Real Estate Sales in California for September 2019: Existing, single-family home sales totaled 404,030 in September, down 0.5% from August and up 5.8% from September 2018. Median Price: $605,680, down 1.9% from August and up 4.7% from September 2018. Year-to- date statewide home sales were down 3.1% in September. (CAR, October 16, 2019) CDTFA Cannabis Revenues for 2Q2019: Cannabis Excise Tax: Generated $74.2 million in revenue reported on 2Q2019 returns and the cultivation tax generated $22.6 million. Sales Tax from Cannabis Businesses: Totaled $47.4 million in reported revenue for the same period. Total Tax Revenue: Reported by the cannabis industry is $144.2 million. This does not include tax. (https://www.cdtfa.ca.gov/news/19-19.htm, August 22, 2019 ) California Trade for September 2019: Total US goods trade (exports and imports) through California ports was 17.81% (12 month moving average; compared to 17.87% in August 2019 and 18.17% in September 2018). Exports: Down $0.7 billion from Sep 2018 (down 4.8%). California remained in 2nd place with 10.54% of all US goods exports (12 month moving total), behind Texas at 19.77%. (DOF, October 2019) Specific Economic Summary by Region (BLS)  Fresno Area Economic Summary (PDF)  Los Angeles Area Economic Summary (PDF)  Riverside Area Economic Summary (PDF)  Sacramento Area Economic Summary (PDF)  San Diego Area Economic Summary (PDF)  San Francisco Area Economic Summary (PDF)  San Jose Area Economic Summary (PDF)  Santa Rosa Area Economic Summary (PDF)  Other BLS products for California PART 3: RETAIL NEWS / E-COMMERCE U.S. Retail Sales – Decline in September U.S. retail sales fell for the first time in seven months in September, raising fears that a slowdown in the American manufacturing sector could be starting to bleed into the consumer side of the economy. Retail sales dropped 0.3% in September as households slashed spending on building materials, online purchases and automobiles. The decline was the first since February. https://www.census.gov/retail/marts/www/marts_curre nt.pdf?mod=article_inline (CNBC, October 2019) Open and Closures: In the US, year-to-date announced closures have already exceeded the total we recorded for the full year 2018. Coresight Research estimates announced US store closures could reach 12,000 by the end of 2019. So far this year, US retailers have announced 8,993 store closures and 3,780 store openings. This compares to 5,844 closures and 3,258 openings for the full year 2018. Coresight Research predicts 12, 000 in 2019. UBS predicts as online shopping continues to grow, another 75,000 stores could be lost by 2026 (MoneyWise, October 2019) ATTACHMENT C ECONOMIC NEWS & TRENDS November 11, 2019 6 www.avenuinsights.com Discount Retailers Fastest Growing Sector Discount retail stores have been growing faster than other retail environments. Non-food value-based or discount retailers, like Dollar General, are expected to grow at an annual rate of 5.2% through to 2024. Food discount stores, like Lidl, are expected to grow at 4.9%. Conversely, supermarkets are forecast at 4.4%, and superstores at 2.7%. (Modern Retail, October 2019) Retail Construction: Just under 80 million sq. ft. of new retail space is under construction nationally in 2019; a drop from the last market peak in the years from 2007 to 2009, when an average of 140 million sq. ft. of retail space annually was under construction. That number fell during the recession and has continued to drop during the expansion phase of this cycle. From 2010 to 2012, an average of just under 60 million sq. ft. of retail space a year was under construction, CoStar reports. Since 2013, retail construction has rebounded: 2013 to 2018 saw an average of 90 million sq. ft., a high for this cycle. (National Real Estate Investor, October 2019) 2019 Holiday Season The holiday season is almost a full week shorter in 2019, with 26 days between Thanksgiving and Christmas, compared to 32 days in 2018. Forecast: Total retail sales are expected to climb between 4.5% and 5.0% for the holiday period, up from 3.1% in 2018. On-line sales are expected to grow in 2019 by 13% to $136 billion. (Deloitte, Sales Force) “Cash Back Day”: The new shopping holiday will give consumers up to 20% cash back on items purchased during that 24-hour period. https://www.retailmenot.com/cashback Click and Collect: Will drive last minute shopping; sales from mobile will account for more than half; 45 percent of sales will be on Amazon. Black Friday, Cyber Monday week will be 37% of total. More than half of holiday orders will include free shipping. (Practical Ecommerce, August 2019 (RetailMeNot, October 2019 and Sales Force, October 2019).) Online Sales Forecast: Will do well because the late Thanksgiving gives shoppers less time to make it out to the mall before Christmas. Online purchases will grow by 24% from one year ago. FedEx and UPS won’t charge extra for delivery around the holidays, unlike in years past. https://nrf.com/tag/holiday-sales Retailers View: The National Retail Federation expects holiday retail sales during November and December to increase between 3.8 percent and 4.2 percent over 2018 to a total of between $727.9 billion and $730.7 billion. The numbers, which exclude automobile dealers, gasoline stations and restaurants, compare with an average holiday sales increase of 3.7 percent over the previous five years. Effect of Tariff: The effect of tariffs on holiday spending, either directly or through consumer confidence, remains to be seen. Some holiday merchandise, including apparel, footwear and televisions, is subject to new tariffs that took effect September 1, and other products will have the tariffs applied on December 15. Retailers are using a myriad of mitigation tactics to limit the impact on consumers, and the impact will ultimately vary by company and product. Small businesses, in particular, have already been forced to raise prices. Holiday sales during 2018 totaled $701.2 billion, an unusually small increase of 2.1 percent over the year before amid a government shutdown, stock market volatility, tariffs and other issues. In-Store Shopping Forecast: In-store shopping dominates during the holidays. Online orders will equal just one-fifth of in-store purchases. Two-thirds will buy both in-store and online. A popular option: Ordering online and picking up in the store. This year, 60% of retailers will offer this method, up from 52% last year. It’s an opportunity for stores to sell more by getting customers in the door for more impulse buys. (Kiplinger, October 11, 2019) ATTACHMENT C ECONOMIC NEWS & TRENDS November 11, 2019 7 www.avenuinsights.com PART 4: AUTO SALES AND GASOLINE California: New Auto Sales for 2019: Predicted to fall below two million units in 2019. The state’s new vehicle market is predicted to decline 4.6 % from 2018 to 2019, which would be the third consecutive annual decline. Although the market is shifting lower, new vehicle registrations are well above average, based on historical standards. Used Cars: Up 5.2% thru June of 2019. Used light truck registrations were up 8.5% Registrations for 6 year old or newer vehicles were up 10.2% thru June. (https://www.cncda.org/wp-content/uploads/Cal- Covering-2Q-19.pdf. August 2019) California and National Gas Influences: Price as of November 6, 2019. California’s average is 4.076 (the average a year ago was $3.740). (American Automobile Association and GasBuddy). PART 5: RESTAURANT AND GROCERY TRENDS For September 2019: Dining and Food: The food index increased in September by 0.1%. Food at Home: The food at home index rose 0.6% over the last 12 months. Was unchanged in September after falling in each of the prior 3 months. Food Away From Home: Rose 0.3% in September after increasing 0.2% in August. Rose 3.2% over the last year. Full Services Meals: Increased 0.3% in September; and over the year, increased 3.6% and the index for limited service meals rose 3.0%. Selected Groups: The index for cereals and bakery products increased 0.5% after declining in August. The indexes for meats, poultry, fish, and eggs and for other food at home both increased 0.3%. The index for dairy and related products advanced 0.2%, and the index for nonalcoholic beverages rose 0.1%. These increases were offset by a decline in the index for fruits and vegetables, which fell 1.0% in September following a 0.5% decline in August. The indexes for fresh fruits and for fresh vegetables both declined in September. (https://www.bls.gov/news.release/cpi.nr0.htm, October 10, 2019) National Restaurant Association Restaurant 2030 Report/ 10 Year Outlook Key economic projections for 2030 include: Restaurant industry sales are expected to reach $1.2 trillion by 2030. The industry workforce will likely exceed 17 million by 2030. Total U.S. employment is projected to increase at an annual rate of 0.5% during the next decade. Total U.S. employment is expected to increase 8.5% between 2018 and 2030. The definition of “restaurant” will change as off- premises continues to drive industry growth: Guests will expect a seamless digital experience and want their preferences known at each interaction with a restaurant. As off-premises traffic and sales continue to accelerate, consumers will place a heightened importance on experiential dining for on-premises occasions. Areas to watch include: A greater proportion of meals will no longer be cooked at home, lending to the continued rise in delivery, virtual restaurants, subscription services, and grab-and-go at retail locations. Cloud kitchens will continue to grow, fueled by the expansion of centralized kitchens and the growth of online, delivery-only brands. Governments are likely to impose further regulation on third-party delivery. The restaurant of the future will be smaller in size. Smaller restaurants could incorporate more automated kitchen equipment and the typical kitchen layout may change. https://restaurant.org/restaurant-industry-2030-report, November 2019 Online Grocery Trends: Digital grocery sales in US are estimated to reach $59.5 billion by 2023 from $23.9 billion in 2018. 48% of US grocery shoppers currently purchase at least some of their groceries online and 59% intend to in 2019. 25% of US grocery shoppers plan to shop 40% or more of their grocery shopping online in 2019. https://www.invespcro.com/blog/us-online- grocery-shopping/ ATTACHMENT C ECONOMIC NEWS & TRENDS November 11, 2019 8 www.avenuinsights.com PART 6: SELECTED RETAIL UPDATES Sources: The Shelby Report; Plain Vanilla Shell, California Employment Development Department - Period Covered: July 17, 2019 to November 10, 2019. https://www.edd.ca.gov/jobs_and_training/warn/WARN _Report_for_7-1-2019_to_10-25-2019.pdf Albertsons: Partners with DogSpot for shoppers with dogs that might be otherwise left in the car. Abercrombie & Fitch: Will close up to 40 stores in 2019. Ashley Home Store: Celebrates 1,000th store opening. Avenue: 222 closures in 2019. Barneys: Closing 21 stores in 2019, including the San Francisco location. Bed Bath and Beyond: Closing 60 stores in 2019. Bath and Body Works: In 2019 plans for 60 closures. BJ’’s: Newport Beach location closed, November 2019. Blue Diamond: Opens new energy saving manufacturing facility in Salida. Chicos: Closing the first of at least 250 over four years. Chili’s: Milpitas location closed effective November 2019. Coffee Bean and Tea Leaf: Opening locations including a store in East Pasadena. Costco: Now operates 544 U.S. locations. Opened 10 new U.S. units and relocated two stores. CVS: Will close 75 retail stores in 2020 mostly through lease expirations; 46 will close in 2019. Dressbarn: 650 stores closing in 2019. ExtraMile: Opens 900th location in Carlsbad. Forever 21: Closing up to 178 in 2019. According to the EDD WARN report 1170 jobs will be lost. Gap: Closing the first up to 230 over two years. Game Stop: Closing up to 200 stores in 2019. Gelson’s: First grocery retailer to carry The Impossible Burger. Gymboree: 800 stores closing in 2019. Home Goods: Adding stores in other states. IHOP: Will open additional restaurants. J.C. Penny: Closing 27 stores in 2019. J. Crew: Closing 20 stores in 2019. Jared Jewelry: Closing 150 stores in 2019. Kmart: Closing 127 stores in 2019. Kohls: Closing 8 stores in 2019. Lifeway Christian: Closing 170 stores in 2019. Lord and Taylor: American’s oldest department store is closing 9 stores in 2019; has new partnership with Walmart which will offer 125 upscale brands. Lost Cajun: Named one of the top 50 emerging chains. Lowe’s: Closing 51 stores in 2019. Macy’s: Closing 6 stores in 2019; bringing in Pot Belly restaurants to some locations. Monroe: Will acquire nine tire and auto services stores in California. Nordstrom: Closing 6 stores in 2019. Stonetown location closed in September. Investing in its Rack stores. Office Depot: Closing 59 stores in 2019. Old Navy: To open 800 new stores as it splits from Gap. Party City: Closing 55 stores in 2019 Payless Shoe Source: Closing 2,100 stores in 2019 Performance Bicycles: Closing 102 stores in 2019. Pier 1 Imports: Closing more than 140 stores in 2019. Planet Fitness: Will open 225 stores this year; many are in former Sears and Toys R Us spaces. Potbelly: To close more stores this year than opens. Raley’s: Flags sugar content in pasta sauce. Rite Aid: California locations will give out free Thrifty ice cream with annual flu shot. Save Mart: City of Modesto location enters into partnership with Cannabidiol brand cbdMC. Sears: Closing 107 stores in 2019. Sprouts: Opening location in Vista and Lake Forest. Superior Grocers: Opens small format stores in Los Angeles. Target: Closing 6 stores in 2019; opening 30 new smaller locations; plans remodeling of 300 stores. Won’t raise prices over tariffs. Things Remembered: More than 200 closures in 2019. Top Shop: Closing 11 locations in 2019. Victoria Secret: Closing 53 stores in 2019. Walmart: Closing 18 non-California locations in 2019. On-line platform will offer 125 upscale brands. A Sacramento and Los Angeles location will close in December. In 2019, there are 6 fewer days between Thanksgiving and Christmas. See above Lords and Taylor. Walgreens: Closing 200 stores in 2019; to open more ‘small stores’ in large cities. Whole Foods: Open store in Long Beach with restaurant and bar; opens location in South Lake Tahoe. Z Gallerie: Closing 44 stores in 2019. Blue Font Includes Closings ATTACHMENT C City of Palo Alto (ID # 11070) City Council Staff Report Report Type: Informational Report Meeting Date: 3/2/2020 City of Palo Alto Page 1 Summary Title: Census 2020 Proclamation Title: City of Palo Alto Proclamation Supporting the 2020 US Census From: City Manager Lead Department: Community Services See attached proclamation Attachments: • Attachment A: 2020 Census Proclamation ______________________________ Adrian Fine Mayor Proclamation Supporting the 2020 US Census WHEREAS, the U.S. Census Bureau is required by Article 1, Section 2 of the U.S. Constitution to conduct a complete and accurate count of every resident in the nation every ten years; and WHEREAS, the next enumeration will be April 1, 2020 and a complete and accurate count of the City’s population is essential; and WHEREAS, Census data is used to distribute billions of dollars in federal funding to local communities and used to determine the number of seats California has in the U.S. House of Representatives, both of which are critical to state and local governments; and WHEREAS, the 2020 U.S. Census will be the first to rely heavily on online responses thus requiring a significant amount of work to achieve full participation, especially in California which has one of the highest hard to count populations in the nation; and WHEREAS, the U.S. Census Bureau is facing several challenges with Census 2020, including constrained fiscal environment, rapidly changing use of technology, declining response rates, increasing diverse and mobile population, thus support from partners and stakeholders is critical; and WHEREAS, the City of Palo Alto is committed to reaching out to our constituents to encourage participation in the 2020 Census, especially focusing on our hard to count individuals. NOW, THEREFORE, I, Adrian Fine, Mayor of the City of Palo Alto on behalf of the entire City Council do hereby recognize the City’s efforts to promote the U.S. 2020 Census in order to ensure a complete, fair and accurate count of all Palo Altans. Presented: March 2, 2020