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Home My WebLink About2020-04-20 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, April 20, 2020 Regular MeetingVirtual Meeting 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. ****BY VIRTUAL TELECONFERENCE ONLY*** https://zoom.us/join Meeting ID: 362-027-238 Phone: 1(669)900-6833 Pursuant to the provisions of California Governor’s Executive Order N-29-20, issued on March 17, 2020, to prevent the spread of Covid-19, this meeting will be held by virtual teleconference only, with no physical location. The meeting will be broadcast on Cable TV Channel 26, live on YouTube at https://www.youtube.com/c/cityofpaloalto, and Midpen Media Center at https://midpenmedia.org. Members of the public who wish to participate by computer or phone can find the instructions at the end of this agenda. To ensure participation in a particular item, we suggest calling in or connecting online 15 minutes before the item you wish to speak on. 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. 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 Special Action Item 6:00-7:00 PM 1.Update and Discussion of the COVID-19 Health Emergency and the City's Response- Verbal Presentation, no Report Study Session 7:00-8:00 PM 2.Presentation of the City Manager’s Proposed Fiscal Year (FY) 2020- 2021 Budget Transmittal Letter FY 2021 PROPOSED OPERATING BUDGET FY 2021 PROPOSED CAPITAL BUDGET Public Comment Public Comment Presentation Presentation 2 April 20, 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. Special Orders of the Day 8:00-8:45 PM 3.Update and Discussion Regarding the Spring 2020 Board and Commission Recruitment for Positions on the Human Relations Commission, Public Art Commission, and Utilities Advisory Commission Agenda Changes, Additions and Deletions Oral Communications 8:45-9:00 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. Minutes Approval 9:00-9:05 PM 4.Approval of Action Minutes for the April 6, 2020 Council Meeting Consent Calendar 9:05-9:10 PM Items will be voted on in one motion unless removed from the calendar by three Council Members. 5.Approval of Contract Number C20177684 With Contract Sweeping Services, Inc. for Street Sweeping Services With a Five-year Term and Total Not-to-Exceed Amount of $5,608,232; and Authorization of the City Manager or Designee to Execute Contract Amendments to Memorialize any Annual Consumer Price Index Adjustments to the Compensation Rates as Provided in the Contract 6.840 Kipling Street [18PLN-00185]: Variance Associated With an Individual Review Application for Modifications to an Existing Historic 1,192 Square Foot, One-story Single-family Home Allowing: (1) a Second-story Home Addition on a Substandard, Irregular R-2 Zoned Lot, and (2) Extension of a Non-complying Wall That Encroaches 2.5 Feet Into an Interior Side Setback; On February 26, 2020, the Planning and Transportation Commission Unanimously Recommended Approval of the Variance. This Project is Exempt From the California Environmental Quality Act (CEQA) in Accordance With CEQA Guidelines Section 15301(e) 7.Approval of the Amended and Restated Agreement for the San Francisquito Creek Joint Powers Authority (JPA) Between the Cities of Palo Alto, Menlo Park, and East Palo Alto, the Santa Clara Valley Water District, and the San Mateo County Flood and Sea Level Rise Resiliency District, to Reflect the Recent Name Change of the Latter Agency and the Current Administrative Practices of the JPA 8.Approval of Amendment Number 1 to Contract Number C16162436 With TJKM Transportation Consultants and Amendment Number 1 toMEMO 3 April 20, 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. Contract Number C16163381 With Fehr and Peers for Provision of On- call Transportation Engineering Project Support Services; Each Amendment Will Extend Each Term Through April 30, 2021; and Increase Maximum Compensation by $200,000 to Each Contract for a Total Not-to-Exceed Amount of $1,000,000 per Contract 9.Adoption of an Ordinance Temporarily Suspending the Expiration of and Automatically Extending all Planning Entitlements, Building Permits, and Building Permit Applications Valid as of March 16, 2020; the Ordinance Also Suspends and Extends Municipal Code Application Processing Timelines. This Action is Exempt From the California Environmental Quality Act (CEQA) in Accordance With CEQA Guidelines Section 15061(b)(3) City Manager Comments 9:10-9:20 PM Action Items Include: Reports of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Reports of Officials, Unfinished Business and Council Matters. 10.Adoption of a Resolution Waiving the Business Registration Fee for Calendar Year 2020 in Calendar Year 2020; Adoption of a Resolution Rescinding the Levy of Assessments for the Downtown Business Improvement District (BID) for Fiscal Year (FY) 2020; and Approval of the Reimbursement of Business Registration Fees and BID Assessments Due in 2020 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. MEMO 4 April 20, 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 Standing Committee Meetings Finance Committee Meeting April 21, 2020 Schedule of Meetings Schedule of Meetings Tentative Agenda Tentative Agenda Public Letters to Council Set 1 5 April 20, 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. Public Comment Instructions Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone. 1.Written public comments may be submitted by email to city.council@cityofpaloalto.org. 2.Spoken public comments using a computer will be accepted through the teleconference meeting. To address the Council, click on the link below to access a Zoom-based meeting. Please read the following instructions carefully. A.You may download the Zoom client or connect to the meeting in- browser. If using your browser, make sure you are using a current, up-to-date browser: Chrome 30+, Firefox 27+, Microsoft Edge 12+, Safari 7+. Certain functionality may be disabled in older browsers including Internet Explorer. B. You may be asked to enter an email address and name. We request that you identify yourself by name as this will be visible online and will be used to notify you that it is your turn to speak. C. When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will activate and unmute speakers in turn. Speakers will be notified shortly before they are called to speak. D. When called, please limit your remarks to the time limit allotted. E. A timer will be shown on the computer to help keep track of your comments. 3.Spoken public comments using a smart phone will be accepted through the teleconference meeting. To address the Council, download the Zoom application onto your phone from the Apple App Store or Google Play Store and enter the Meeting ID below. Please follow the instructions B-E above. 4.Spoken public comments using a phone use the telephone number listed below. When you wish to speak on an agenda item hit *9 on your phone so we know that you wish to speak. You will be asked to provide your first and last name before addressing the Council. You will be advised how long you have to speak. When called please limit your remarks to the agenda item and time limit allotted. https://zoom.us/join Meeting ID: 362-027-238 Phone: 1(669)900-6833 City 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, April 20, 2020 Special Meeting Virtual Meeting 5:00 PM ****BY VIRTUAL TELECONFERENCE ONLY*** https://zoom.us/join Meeting ID: 950-9733-1192 Phone: 1(669)900-6833 Pursuant to the provisions of California Governor’s Executive Order N-29-20, issued on March 17, 2020, to prevent the spread of Covid-19, this meeting will be held by virtual teleconference only, with no physical location. The meeting will be broadcast on Cable TV Channel 26, live on YouTube at https://www.youtube.com/c/cityofpaloalto, and Midpen Media Center at https://midpenmedia.org. Members of the public who wish to participate by computer or phone can find the instructions at the end of this agenda. To ensure participation in a particular item, we suggest calling in or connecting online 15 minutes before the item you wish to speak on. Call to Order Oral Communications 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. Closed Session Public Comments: Members of the public may speak to the Closed Session item(s); three minutes per speaker. 1.CONFERENCE WITH LABOR NEGOTIATORS City Designated Representatives: City Manager and his designees Pursuant to Merit System Rules and Regulations (Ed Shikada, Rumi Portillo, Molly Stump, Monique LeConge Ziesenhenne, Nick Raisch, Kiely Nose, Gina Roccanova) Employee Organizations: Utilities Management and Professional Association of Palo Alto (UMPAPA); Service Employees International Union, (SEIU) Local 521; Service Employees International Union, (SEIU) Local 521, Hourly Unit; Palo Alto Police Officers Association (PAPOA); Palo Alto Fire Chiefs’ Association (FCA) and Employee Organization: International Association of Fire Fighters (IAFF), Local 1319; Palo Alto Police Manager’s Association (PAPMA) Authority: Government Code Section 54957.6(a) Public Comment 2 April 20, 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. 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. 3 April 20, 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. Public Comment Instructions Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone. 1. Written public comments may be submitted by email to city.council@cityofpaloalto.org. 2. Spoken public comments using a computer will be accepted through the teleconference meeting. To address the Council, click on the link below to access a Zoom-based meeting. Please read the following instructions carefully. A. You may download the Zoom client or connect to the meeting in- browser. If using your browser, make sure you are using a current, up-to-date browser: Chrome 30+, Firefox 27+, Microsoft Edge 12+, Safari 7+. Certain functionality may be disabled in older browsers including Internet Explorer. B. You may be asked to enter an email address and name. We request that you identify yourself by name as this will be visible online and will be used to notify you that it is your turn to speak. C. When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will activate and unmute speakers in turn. Speakers will be notified shortly before they are called to speak. D. When called, please limit your remarks to the time limit allotted. E. A timer will be shown on the computer to help keep track of your comments. 3. Spoken public comments using a smart phone will be accepted through the teleconference meeting. To address the Council, download the Zoom application onto your phone from the Apple App Store or Google Play Store and enter the Meeting ID below. Please follow the instructions B-E above. 4. Spoken public comments using a phone use the telephone number listed below. When you wish to speak on an agenda item hit *9 on your phone so we know that you wish to speak. You will be asked to provide your first and last name before addressing the Council. You will be advised how long you have to speak. When called please limit your remarks to the agenda item and time limit allotted. https://zoom.us/join Meeting ID: 950-9733-1192 Phone: 1(669)900-6833 TRANSMITTAL LETTER TRANSMITTAL LETTER • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING & CAPITAL BUDGET I TRANSMITTAL LE Transmittal LetterApril 20, 2020 To the Honorable Mayor and City Council 2021 Fiscal Year Operating & Capital Budget Transmittal Dear Mayor and Council Members: In accordance with the City Charter, I am presenting the City of Palo Alto's Fiscal Year 2021 Pro- posed Operating Budget and Fiscal Year 2021 Proposed Capital Budget along with the Fiscal Year 2021-2025 Capital Improvement Program (CIP) Plan. The operating budget totals $818.9 million and the capital budget totals $288.7 million in FY 2021 and $793.4 million over the five- year CIP. As required by the City Municipal Code, the Planning and Transportation Commission (PTC) will review the 2020-2024 CIP in May 2020 to evaluate the program's compliance with the Updated Comprehensive Plan which was adopted by City Council in November 2017. As dis- cussed previously with the City Council, this a baseline for us to continue conversations to ensure alignment of revenue and expenses and long-term fiscal sustainability in light of the global health crisis. At the time of the development of the FY 2021 budget, the world is grappling with the novel coronavirus (COVID-19), a global pandemic. Society through both government and industry are responding in order to slow the spread and contain the virus in order to safeguard as many lives as possible. The financial implications of this public health emergency are significant, with regional, national and global impacts on economies in response to shelter in place orders required by the State of California and the County of Santa Clara and related social distancing restrictions. Since the Santa Clara County Ordered a Shelter in Place on March 16, 2020, Palo Alto has seen retail stores, many hotels, and restaurants close their doors completely as the community struggles to adapt to this extraordinary challenge. We have also seen our daytime population drop as workers and visitors shelter in place, telework, and limit their movements to slow the spread of the virus. The impacts have been stark and immediate. On March 12, 2020 the City Manager, acting as the Director of Emergency Services, issued a Proclamation of Local Emergency regarding the presence and community spread of COVID-19 in Santa Clara County and our region. The Proclamation allows the City to exercise extraordi- nary police powers, should these be needed; provides immunity for emergency actions; autho- rizes issuance of certain necessary orders and regulations; activates pre-established emergency processes; and is a prerequisite for requesting state or federal assistance related to the emer- gency, should such assistance become available. On Sunday, March 15, 2020, the City Manager activated the Emergency Operations Center and since that time, the City has managed the EOC virtually through a cross-functional multi-departmental team. On March 16, 2020, the City Council ratified the Proclamation of Local Emergency. In the weeks since COVID-19 was detected and found to be transmitting via community spread, City staff have taken numerous actions to promote community safety and address existing and potential impacts on City services and operations. The City has transitioned a majority of its workforce to TRANSMITTAL LETTER II TRANSMITTAL LETTER • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING & CAPITAL BUDGET remote (telework) status, while maintaining essential services such as fire, police, public works, and utilities. Due to the immediate constraints on social activities, severe impacts to transient occupancy taxes, sales tax, documentary transfer tax, and revenue from licenses, permits, and charges for services are ongoing. Although anecdotal, staff expects hotel occupancy levels to be below 10 percent and restaurants and retail establishments to remain primarily closed while the current Shelter-in-Place Order and social distancing practices are in effect. The financial outlook beyond the current environment are also unknown as unemployment claims have reached unprecedented levels and the financial markets are volatile. Further, while the current County of Santa Clara Public Health Order runs to May 3, there are indications at both the local and State levels that the public health emergency will extend for months to come. While mindful of the unprecedented circumstances at hand, this Budget Message includes the following sections to outline the City's resource allocations for the year ahead and beyond: 1.City Council Priorities 2. Council Adopted Budget Principles 3. Continuing Fiscal Sustainability Actions Previously Adopted 4. Fiscal Reality and Budget Priorities 5. Summary of Other Funds (including the FY 2021-2025 Capital Improvement Plan) 6. Budget Timeline 7.Acknowledgments City Council Priorities In February of this year, which may seem like a lifetime ago, the City Council held a retreat and selected three priorities to focus on in 2020. The priorities include: Housing with an emphasis on affordable housing Sustainability, in the context of the changing climate Improving mobility for all In February of this year, which may seem like a lifetime ago, the City Council held a retreat and selected three priorities to focus on in 2020. The priorities include: "Housing with an emphasis on affordable housing "Sustainability, in the context of the changing climate "Improving mobility for all Two of these priorities, mobility, and sustainability, relate to City Council priorities from 2019. For the City Council Retreat staff report highlighting past Council priorities and community input gained to help inform this discussion, go here: https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=62811.92&BlobID=75033 Since February, the City Council has adopted housing and sustainability workplans, guiding staff work associated with these priorities, and a revision to the existing transportation work- plan was planned by June 2020. While progress is being made on all priorities, the realignment needed to reflect current circumstances will severely impact our ability to continue this work. TRANSMITTAL LETTER TRANSMITTAL LETTER • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING & CAPITAL BUDGET III The budget direction below considers suspending much of the work on all three priorities, in order to focus on legally mandated activities and redeploying staff to focus on recovery efforts. Council Adopted Budget Principles As part of the FY 2021 - FY 2030 Long Range Financial Forecast, the City Council approved budget guidelines that have driven development of the FY 2021 Proposed operating and capital budgets. The budget principles include: 1. Develop a structurally balanced budget that brings ongoing revenues and expenses into alignment. Develop a plan for any structural imbalance to ensure that the City maintains it fiscal sustainability over the short, medium, and long-term. 2. Allocate one-time resources for one-time needs rather than committing one-time resources to ongoing services. Examine appropriate uses of revenue surpluses that exceed forecasted levels including planning for recession needs. 3. Ensure appropriate resource allocation for City Council's existing priorities. 4. Focus on business process redesign to enhance quality, flexibility, and cost effective- ness of service delivery (include examining opportunities to streamline, simplify, reor- ganize, and reallocate resources to avoid duplication of effort). 5. Explore alternative service delivery models (such as partnerships with non-profits or other public/private sector groups) to minimize overlap, maximize cost share, and effectively use resources. 6. Continue to thoroughly analyze non-personnel/equipment/other costs, such as con- tract services, for cost savings opportunities. 7.Explore the expansion of existing revenue sources or the addition of new revenue sources, including the alignment of existing charges for services and the opportunity to establish new fees, when appropriate. 8. Continue to analyze and prioritize resource augmentations, seeking to offset augmen- tations with reductions elsewhere for net-zero impacts to the budget whenever possi- ble. The FY 2021 - FY 2030 Long Range Financial Forecast can be found here: http://cityofpaloalto.org/civicax/filebank/documents/74907 Continuing Fiscal Sustainability Actions Previously Adopted The FY 2021 baseline budget reflects the current service levels approved by the City Council with revenue projections prior to the COVID-19 emergency. As a balanced budget, the assump- tions contain therein continues to follow conservative proactive fiscal management across all funds and includes a $2.7 million contribution to the Budget Stabilization Reserve in the General Fund. This reflects the significant progress the City has made towards ongoing cost contain- ment over the past several years and the reductions that have been made across the organiza- tion. It shows the continued push to proactively fund pensions with continuing the City Council approved additional annual payments to the City's irrevocable IRS Section 115 Pension Trust TRANSMITTAL LETTER IV TRANSMITTAL LETTER • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING & CAPITAL BUDGET Fund ("Pension Trust Fund") ($3.4 million General Fund, $5.5 million all funds), additional pay- ments to the City's OPEB Trust (approximately $3.0 million annually all funds). Investment in capital infrastructure has been a key priority as well and is funded by approval of two (2) Transient Occupancy Tax rate changes as well as a sizeable transfer from the General Fund to the Capital Improvement Fund for the catch-up and keep-up priorities identified by the Infrastructure Blue Ribbon Commission (IBRC). This capital budget continues to prioritize the 2014 Council approved Infrastructure Plan in the General Capital Improvement Fund. In order to accomplish this, some of the larger projects previously planned in the five-year CIP have been pushed out beyond the 2021-2025 timeframe. The ability to maintain these financial investments in capital and proactive payment of long- term liabilities, while funding Council priorities over the years, has resulted in service and staff- ing reductions and service delivery changes such as the animal shelter transition to a public/pri- vate partnership with Pets in Need. This prioritization of fiscal sustainability did not come without impacts. The FY 2020 Adopted Budget and the FY 2021 Proposed Budget continues reductions in the Fire Department, position eliminations in the Library Department and Public Works, as well as ongoing expense reductions in the Office of the City Clerk, the City Manager's Office, the Office of Emergency Services, and Information Technology. In addition, efforts to structurally balance the FY 2020 budget, the FY 2020 Adopted Budget included actions that were expected to start in FY 2021, such as the transition of Project Safety Net to a community-funded model with the City as a partner instead of the primary funder, and the realization of approximately $450,000 in additional savings in the Police Department. This FY 2021 Proposed Budget includes continuation of these efforts. These actions result in a baseline workforce of 1,034, which decreased by 1 position compared to the FY 2020 Adopted Budget. This is significantly less than the peak level of 1,076 citywide positions in 2009. In the General Fund, positions have decreased 11.9 percent, from 651 to 574, since 2009. Staff released the "City Services Guide" in December 2019 to assist in further con- versations about the exceptional services provided by the City and the resources necessary to provide them. You can find the City Services Guide and the appendix here: http://cityofpaloalto.org/civicax/filebank/documents/74888 http://cityofpaloalto.org/civicax/filebank/documents/74176 Fiscal Reality and Revised Budget Approach This year's proposed budget recognizes the need to set new priorities in light of the significant uncertainty the City faces. Per direction by the City Council on March 23, 2020, these proposed operating and capital budgets include less information and data than normal and are effectively a carryover budget. They reflect the cost of current service levels recalculated to FY 2021 rates and limited adjustments. The capital budget has been updated for the current status and cost estimates of projects based on engineering designs and only adds limited new projects for urgent health and safety needs. These budgets also begin what staff expects to be an ongoing conversation and difficult work ahead to plan for the return or recovery period once the shelter in place order is lifted. It is expected that these deliberations will require resetting expectations and many shared sacrifices moving forward. TRANSMITTAL LETTER TRANSMITTAL LETTER • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING & CAPITAL BUDGET V Despite reflecting most recent figures, revenue estimates contained in these budgets are none- theless likely overstated given the current state of the economy. It is expected that once the revenue estimates are revised, significant adjustments will be necessary to ensure a balanced budget in the several funds with economically sensitive revenues. This includes but is not lim- ited to the General Fund, Refuse Fund, Parking Funds, and Enterprise Utility Funds. Staff expects to begin these conversations with the release of these Proposed Budgets and continue through May and June. Ultimately, the City Council must adopt a balanced operating and capi- tal budget by June 30 for the new fiscal year FY 2021 beginning July 1, 2020. Staff will work to achieve this with the City Council. Depending on the length and depth of this current public health emergency, the severity of the financial ramifications remains unknown. In the General Fund, staff has worked to estimate the impacts on the potential loss in major tax revenues. Based on this, at the time of this transmittal, it is estimated that major General Fund taxes will decline at minimum by $20.0 million in FY 2021 compared to the estimates carried in this baseline budget. Sales Tax and Transient Occu- pancy Taxes (TOT) alone make up nearly 30 percent of the General Fund revenues. In addition, preliminary figures from CalPERS reflect that they will not meet their expected investment returns this year. Through March, CalPERS is reporting -4 to -5 percent losses and are currently hovering around -1 percent to 0 percent investment returns. It is expected that these costs will materialize in the City's FY 2022-2023 retirement rates and continue through a 20-year period. As we have all been reading in the current news, it is expected that society will be susceptible to restrictions and a possible resurgence of the infections of COVID-19. As we continue to grapple with these unknown effects, adding to the City Council's adopted Budget Principles highlighted above, I am recommending establishing a set of Budget and Fiscal Recovery Priorities to help guide our work to balance this significant change and continue to evolve through these uncer- tain times. These include: Support economic recovery through changes to our policies and programs Focus on resiliency over the long term while making service reductions and changes, ensuring that any services eliminated can be restored in future years Seek new ways to conduct our work through efficiencies and a learning environment Apply a broad-based approach to reductions, balancing impacts to the community Use temporary solutions to bridge extreme revenue losses expected in the short term Recognizing that some of the necessary measures may not be sustainable in the long term, some deferrals of longstanding priorities will be necessary to respond to the downturn and allow for an economic recovery before resuming. We must assume this may take years, as the actual duration is unknown. Through these new Budget and Fiscal Recovery Priorities, I've directed our Department Direc- tors to think differently about our budget approach and challenges ahead including the follow- ing service changes and themes listed below. This is not a recommended budget approach at this time, nor comprehensive list, however it is intended to demonstrate the magnitude of changes needed to address expected financial constraints. Note that some workforce strategies are subject to bargaining over decisions and/or impacts, in some cases requiring mutual agree- ment. The City will work with labor to explore savings through these and other strategies. TRANSMITTAL LETTER VI TRANSMITTAL LETTER • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING & CAPITAL BUDGET Citywide Strategies Citywide Cost Containment: We will explore additional cost containment through continuing a hiring freeze and freezing all nonessential travel, eliminating current vacancies and reducing future vacancies through attrition, and/or implementing furloughs with corresponding service reductions such as reduced walk-in office hours. City General Capital Infrastructure Fund Transfer Suspension: The City's General Fund transfers upwards of $30 million annually to the General Capital Infrastructure Fund, consisting of a baseline transfer as well as the allocation of TOT receipts as designated by the City Council. This is expected to be significantly impacted by the losses in TOT revenues and reduction in the General Fund transfer would help bridge operating budget impacts. Both will significantly reduce the capacity for capital investments in the near term. We must prioritize investments including the Public Safety Building, 2014 City Council approved Infrastructure Plan, Parks improvements such as Birch Street, the newly acquired property adjacent to Boulware Park, and various transportation projects including but not limited to grade separations. Proactive Funding of Long-Term Liabilities: The City Council approved a proactive funding strategy to contribute to the City's Pension Trust Fund assuming a normal cost for contribution with a 6.2 percent discount rate. This resulted in additional annual contribution of $5.5 million in all funds, $3.4 million in the General Fund. We will explore pausing this practice to soften the extreme revenue losses in the short-term. Support of Economic Recovery through Changes to our Policies and Programs: The City is initiating Business Roundtables and other programs and services to continue supporting the business community. While implementation of outputs from the Business Roundtables may require near-term investments, they will also assist in the long term economic recovery of our community. Initiatives include the implementation of our new online permit system to ensure, even while sheltering in place, review of planning and permitting processes and policy changes to support businesses in the City. Department Specific Strategies Public Safety: We will explore the suspension or elimination of specialized police units such as the traffic enforcement unit and investigation unit to maintain minimal police patrol services and shift the priority of police services to focus on urgent calls and reduce the level of service and ability to respond to non-urgent calls for services. Reduce officer training, promotional testing, uniform purchases and eliminate or change to full cost recovery for non-essential programming such as the Parent Project community education program, crossing guards, Stanford Athletics, and school resource officers. Explore the reduced availability of at least one of five fire stations and eliminate or freeze a staff vacancy in the Office of Emergency Services. Community & Library Services: We will explore reduced library hours, not opening select library branches, and not re-opening some community services facilities. This includes greater cost recovery through changes in service delivery, charges for services, and/or limiting operating hours, for facilities such as the new Junior Museum and Zoo (JMZ), one community center, the Children's Theatre, or the Art Center. We will also explore reducing the number of days or hours of operation that other Community Services facilities are open such as community centers, museums, theaters or open space preserves. Explore the reduction or elimination of programming such as special events, art exhibits, and teen TRANSMITTAL LETTER TRANSMITTAL LETTER • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING & CAPITAL BUDGET VII programs an re-evaluate the shared services between the City and Palo Alto Unified School District (PAUSD), including suspension of programs unless greater cost recovery can be achieved. Explore termination of the Cubberley lease or resetting to a shared revenue structure. Planning & Infrastructure: Explore restrictions to use of contract inspectors, elimination of next day inspections and explore scheduled inspections, understanding that this could delay services to our development community. Defer several Council adopted planning efforts such as the housing work plan, all electric commercial buildings initiatives and other work not legally mandated. Restructure work to in-house staff only, explore amendments to the City's municipal code to scale back on application processing requirements associated with wireless communication facilities. Explore other amendments to reduce the number of applications requiring review by the architectural review board and elimination of the individual review program to free up resources that support the Council's long-range planning policy interests. Explore reducing code enforcement staffing, eliminating the Crosstown and Embarcadero shuttle programs or redesigning the delivery of this service to reduce costs. Evaluate the current parking program including the Residential Preferential Parking (RPP) program to full cost recovery including implementation of license plate recognition for efficiencies in park- ing enforcement, and implementation of a paid parking program to increase revenues. Explore deferral or reduction in tree trimming, vehicle replacement, suspending rate changes in various utility enterprise funds for the coming year(s) and explore shifting the City's sidewalk replacement and repairs program to cost-sharing or full property owner responsibility. Internal Services & Council Appointed Officers: Internal Services departments include the Information Technology, Human Resources, and Administrative Services Departments as well as the Council and appointed officers (City Manager, City Attorney, City Auditor and City Clerk). We will explore reductions in these areas in line with the proposed changes in services, aligning timeframes for assistance and review in areas such as recruitments, procurements, and risk management. Technology solutions would be constrained to only essential contracts and systems. The City Council may similarly review its expenses and areas for reduction. Once again, we must recognize that many of these budget balancing strategies are not sustain- able over the long term. However, these or similar solutions are necessary to bridge the gap cre- ates by a steep economic downturn, contain costs, and support our economic recovery. Summary of Other Funds The City's Enterprise and other funds, including the General Capital Fund, have also been brought forward in these proposed operating and capital budgets as working budgets. They reflect the priorities from the FY 2020 budget development with updates for FY 2021 rates and limited adjustments. The capital budgets have been updated for the current status and cost estimates of projects based on engineering designs and only adds limited new projects for urgent health and safety needs. The City will continue to maintain services and facilities for the community and the region, such as Utilities, Palo Alto Airport, and Wastewater Collection and Treatment plant. Although these budgets in this FY 2021 assume rate increases in various utili- ties, as noted above, staff is working to explore suspension of rate changes. Minimal changes TRANSMITTAL LETTER VIII TRANSMITTAL LETTER • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING & CAPITAL BUDGET are recommended in the various parking funds, one-time funding approved in FY 2020 are rec- ommended to be continued for an additional year such as funding for the Transportation Man- agement Association (TMA) and a General Fund subsidy in the RPP program. Parking permit prices are also recommended to increase by 2.6 percent, consistent with most other fees, except for resident permits which are recommended to remain at $50. In FY 2021, a total of $96.4 million will be allocated towards the capital program for the Enter- prise Funds, with $390.5 million allocated over the five-year CIP, representing 52.1 percent of CIP expenditures for all funds. Major investments continue in the Wastewater Treatment Plant's cap- ital program, with approximately 64 percent of the expenses reimbursed by five contributing partner agencies outside of the City of Palo Alto, and the general Capital Improvement Fund, which is the second largest section of the 2021-2025 CIP, totals $335.0 million with 91 projects. It is expected, as noted above, that a prioritization of investments will be necessary with the expected reduction in TOT receipts. Budget Timeline Acknowledgements I would like to thank the City Council for your leadership and our Executive Leadership Team and the entire staff of the City for providing outstanding services to our community. While rec- ognizing the challenges ahead, the Palo Alto community should be proud of your leadership and commitment to service. A proposed budget takes countless hours of teamwork, collaboration, and patience to produce. I would like to offer special thanks to Kiely Nose, our Chief Financial Officer and the dedicated Office of Management and Budget Team - Christine Paras, Paul Harper, Steve Guagliardo, Jessie Deschamps, Alexandra Harris, Jamie Perez, Kayla Shapiro, and Chaitali Paliwal. Completing this budget could not have been accomplished without the skill, dedication, and professionalism of TRANSMITTAL LETTER TRANSMITTAL LETTER • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING & CAPITAL BUDGET IX this team. Their willingness to work through these unique circumstances and sacrifice countless hours are a testament to their commitment to this organization and to the community. Thanks are also due to David Ramberg, Assistant Director, Administrative Services Department, and Tarun Narayan, Treasury Manager. I am also grateful to the Department Directors of our Execu- tive Leadership Team and the department personnel who worked on the material. There are too many to list here by name, but the budget could not have been produced without the senior/ management analysts, division managers, administrative assistants, and others throughout the organization who helped produce this budget. Respectfully Submitted, Ed Shikada City Manager PROPOSED OPERATING BUDGET FISCAL YEAR 2021 TRANSMITTAL LETTER • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET I TRANSMITTAL LETTER Transmittal TRANSMITTAL LETTER April 20, 2020 To the Honorable Mayor and City Council 2021 Fiscal Year Operating & Capital Budget Transmittal Dear Mayor and Council Members: In accordance with the City Charter, I am presenting the City of Palo Alto's Fiscal Year 2021 Pro- posed Operating Budget and Fiscal Year 2021 Proposed Capital Budget along with the Fiscal Year 2021-2025 Capital Improvement Program (CIP) Plan. The operating budget totals $818.9 million and the capital budget totals $288.7 million in FY 2021 and $793.4 million over the five- year CIP. As required by the City Municipal Code, the Planning and Transportation Commission (PTC) will review the 2020-2024 CIP in May 2020 to evaluate the program's compliance with the Updated Comprehensive Plan which was adopted by City Council in November 2017. As dis- cussed previously with the City Council, this a baseline for us to continue conversations to ensure alignment of revenue and expenses and long-term fiscal sustainability in light of the global health crisis. At the time of the development of the FY 2021 budget, the world is grappling with the novel coronavirus (COVID-19), a global pandemic. Society through both government and industry are responding in order to slow the spread and contain the virus in order to safeguard as many lives as possible. The financial implications of this public health emergency are significant, with regional, national and global impacts on economies in response to shelter in place orders required by the State of California and the County of Santa Clara and related social distancing restrictions. Since the Santa Clara County Ordered a Shelter in Place on March 16, 2020, Palo Alto has seen retail stores, many hotels, and restaurants close their doors completely as the community struggles to adapt to this extraordinary challenge. We have also seen our daytime population drop as workers and visitors shelter in place, telework, and limit their movements to slow the spread of the virus. The impacts have been stark and immediate. On March 12, 2020 the City Manager, acting as the Director of Emergency Services, issued a Proclamation of Local Emergency regarding the presence and community spread of COVID-19 in Santa Clara County and our region. The Proclamation allows the City to exercise extraordi- nary police powers, should these be needed; provides immunity for emergency actions; autho- rizes issuance of certain necessary orders and regulations; activates pre-established emergency processes; and is a prerequisite for requesting state or federal assistance related to the emer- gency, should such assistance become available. On Sunday, March 15, 2020, the City Manager activated the Emergency Operations Center and since that time, the City has managed the EOC virtually through a cross-functional multi-departmental team. On March 16, 2020, the City Council ratified the Proclamation of Local Emergency. In the weeks since COVID-19 was detected and found to be transmitting via community spread, City staff have taken numerous actions to promote community safety and address existing and potential impacts on City services and operations. The City has transitioned a majority of its workforce to remote (telework) status, while maintaining essential services such as fire, police, public works, and utilities. II TRANSMITTAL LETTER • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET TRANSMITTAL LETTER Due to the immediate constraints on social activities, severe impacts to transient occupancy taxes, sales tax, documentary transfer tax, and revenue from licenses, permits, and charges for services are ongoing. Although anecdotal, staff expects hotel occupancy levels to be below 10 percent and restaurants and retail establishments to remain primarily closed while the current Shelter-in-Place Order and social distancing practices are in effect. The financial outlook beyond the current environment are also unknown as unemployment claims have reached unprecedented levels and the financial markets are volatile. Further, while the current County of Santa Clara Public Health Order runs to May 3, there are indications at both the local and State levels that the public health emergency will extend for months to come. While mindful of the unprecedented circumstances at hand, this Budget Message includes the following sections to outline the City's resource allocations for the year ahead and beyond: 1. City Council Priorities 2. Council Adopted Budget Principles 3. Continuing Fiscal Sustainability Actions Previously Adopted 4. Fiscal Reality and Budget Priorities 5. Summary of Other Funds (including the FY 2021-2025 Capital Improvement Plan) 6. Budget Timeline 7. Acknowledgments City Council Priorities In February of this year, which may seem like a lifetime ago, the City Council held a retreat and selected three priorities to focus on in 2020. The priorities include: Housing with an emphasis on affordable housing Sustainability, in the context of the changing climate Improving mobility for all In February of this year, which may seem like a lifetime ago, the City Council held a retreat and selected three priorities to focus on in 2020. The priorities include: "Housing with an emphasis on affordable housing "Sustainability, in the context of the changing climate "Improving mobility for all Two of these priorities, mobility, and sustainability, relate to City Council priorities from 2019. For the City Council Retreat staff report highlighting past Council priorities and community input gained to help inform this discussion, go here: https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=62811.92&BlobID=75033 Since February, the City Council has adopted housing and sustainability workplans, guiding staff work associated with these priorities, and a revision to the existing transportation work- plan was planned by June 2020. While progress is being made on all priorities, the realignment needed to reflect current circumstances will severely impact our ability to continue this work. The budget direction below considers suspending much of the work on all three priorities, in order to focus on legally mandated activities and redeploying staff to focus on recovery efforts. TRANSMITTAL LETTER • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET III TRANSMITTAL LETTER Council Adopted Budget Principles As part of the FY 2021 - FY 2030 Long Range Financial Forecast, the City Council approved budget guidelines that have driven development of the FY 2021 Proposed operating and capital budgets. The budget principles include: 1. Develop a structurally balanced budget that brings ongoing revenues and expenses into alignment. Develop a plan for any structural imbalance to ensure that the City maintains it fiscal sustainability over the short, medium, and long-term. 2. Allocate one-time resources for one-time needs rather than committing one-time resources to ongoing services. Examine appropriate uses of revenue surpluses that exceed forecasted levels including planning for recession needs. 3. Ensure appropriate resource allocation for City Council's existing priorities. 4. Focus on business process redesign to enhance quality, flexibility, and cost effective- ness of service delivery (include examining opportunities to streamline, simplify, reor- ganize, and reallocate resources to avoid duplication of effort). 5. Explore alternative service delivery models (such as partnerships with non-profits or other public/private sector groups) to minimize overlap, maximize cost share, and effectively use resources. 6. Continue to thoroughly analyze non-personnel/equipment/other costs, such as con- tract services, for cost savings opportunities. 7. Explore the expansion of existing revenue sources or the addition of new revenue sources, including the alignment of existing charges for services and the opportunity to establish new fees, when appropriate. 8. Continue to analyze and prioritize resource augmentations, seeking to offset augmen- tations with reductions elsewhere for net-zero impacts to the budget whenever possi- ble. The FY 2021 - FY 2030 Long Range Financial Forecast can be found here: http://cityofpaloalto.org/civicax/filebank/documents/74907 Continuing Fiscal Sustainability Actions Previously Adopted The FY 2021 baseline budget reflects the current service levels approved by the City Council with revenue projections prior to the COVID-19 emergency. As a balanced budget, the assump- tions contain therein continues to follow conservative proactive fiscal management across all funds and includes a $2.7 million contribution to the Budget Stabilization Reserve in the General Fund. This reflects the significant progress the City has made towards ongoing cost contain- ment over the past several years and the reductions that have been made across the organiza- tion. It shows the continued push to proactively fund pensions with continuing the City Council approved additional annual payments to the City's irrevocable IRS Section 115 Pension Trust Fund ("Pension Trust Fund") ($3.4 million General Fund, $5.5 million all funds), additional pay- ments to the City's OPEB Trust (approximately $3.0 million annually all funds). Investment in capital infrastructure has been a key priority as well and is funded by approval of two (2) Transient Occupancy Tax rate changes as well as a sizeable transfer from the General Fund to the Capital Improvement Fund for the catch-up and keep-up priorities identified by the IV TRANSMITTAL LETTER • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET TRANSMITTAL LETTER Infrastructure Blue Ribbon Commission (IBRC). This capital budget continues to prioritize the 2014 Council approved Infrastructure Plan in the General Capital Improvement Fund. In order to accomplish this, some of the larger projects previously planned in the five-year CIP have been pushed out beyond the 2021-2025 timeframe. The ability to maintain these financial investments in capital and proactive payment of long- term liabilities, while funding Council priorities over the years, has resulted in service and staff- ing reductions and service delivery changes such as the animal shelter transition to a public/pri- vate partnership with Pets in Need. This prioritization of fiscal sustainability did not come without impacts. The FY 2020 Adopted Budget and the FY 2021 Proposed Budget continues reductions in the Fire Department, position eliminations in the Library Department and Public Works, as well as ongoing expense reductions in the Office of the City Clerk, the City Manager's Office, the Office of Emergency Services, and Information Technology. In addition, efforts to structurally balance the FY 2020 budget, the FY 2020 Adopted Budget included actions that were expected to start in FY 2021, such as the transition of Project Safety Net to a community-funded model with the City as a partner instead of the primary funder, and the realization of approximately $450,000 in additional savings in the Police Department. This FY 2021 Proposed Budget includes continuation of these efforts. These actions result in a baseline workforce of 1,034, which decreased by 1 position compared to the FY 2020 Adopted Budget. This is significantly less than the peak level of 1,076 citywide positions in 2009. In the General Fund, positions have decreased 11.9 percent, from 651 to 574, since 2009. Staff released the "City Services Guide" in December 2019 to assist in further con- versations about the exceptional services provided by the City and the resources necessary to provide them. You can find the City Services Guide and the appendix here: http://cityofpaloalto.org/civicax/filebank/documents/74888 http://cityofpaloalto.org/civicax/filebank/documents/74176 Fiscal Reality and Revised Budget Approach This year's proposed budget recognizes the need to set new priorities in light of the significant uncertainty the City faces. Per direction by the City Council on March 23, 2020, these proposed operating and capital budgets include less information and data than normal and are effectively a carryover budget. They reflect the cost of current service levels recalculated to FY 2021 rates and limited adjustments. The capital budget has been updated for the current status and cost estimates of projects based on engineering designs and only adds limited new projects for urgent health and safety needs. These budgets also begin what staff expects to be an ongoing conversation and difficult work ahead to plan for the return or recovery period once the shelter in place order is lifted. It is expected that these deliberations will require resetting expectations and many shared sacrifices moving forward. Despite reflecting most recent figures, revenue estimates contained in these budgets are none- theless likely overstated given the current state of the economy. It is expected that once the revenue estimates are revised, significant adjustments will be necessary to ensure a balanced budget in the several funds with economically sensitive revenues. This includes but is not lim- ited to the General Fund, Refuse Fund, Parking Funds, and Enterprise Utility Funds. Staff TRANSMITTAL LETTER • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET V TRANSMITTAL LETTER expects to begin these conversations with the release of these Proposed Budgets and continue through May and June. Ultimately, the City Council must adopt a balanced operating and capi- tal budget by June 30 for the new fiscal year FY 2021 beginning July 1, 2020. Staff will work to achieve this with the City Council. Depending on the length and depth of this current public health emergency, the severity of the financial ramifications remains unknown. In the General Fund, staff has worked to estimate the impacts on the potential loss in major tax revenues. Based on this, at the time of this transmittal, it is estimated that major General Fund taxes will decline at minimum by $20.0 million in FY 2021 compared to the estimates carried in this baseline budget. Sales Tax and Transient Occu- pancy Taxes (TOT) alone make up nearly 30 percent of the General Fund revenues. In addition, preliminary figures from CalPERS reflect that they will not meet their expected investment returns this year. Through March, CalPERS is reporting -4 to -5 percent losses and are currently hovering around -1 percent to 0 percent investment returns. It is expected that these costs will materialize in the City's FY 2022-2023 retirement rates and continue through a 20-year period. As we have all been reading in the current news, it is expected that society will be susceptible to restrictions and a possible resurgence of the infections of COVID-19. As we continue to grapple with these unknown effects, adding to the City Council's adopted Budget Principles highlighted above, I am recommending establishing a set of Budget and Fiscal Recovery Priorities to help guide our work to balance this significant change and continue to evolve through these uncer- tain times. These include: Support economic recovery through changes to our policies and programs Focus on resiliency over the long term while making service reductions and changes, ensuring that any services eliminated can be restored in future years Seek new ways to conduct our work through efficiencies and a learning environment Apply a broad-based approach to reductions, balancing impacts to the community Use temporary solutions to bridge extreme revenue losses expected in the short term Recognizing that some of the necessary measures may not be sustainable in the long term, some deferrals of longstanding priorities will be necessary to respond to the downturn and allow for an economic recovery before resuming. We must assume this may take years, as the actual duration is unknown. Through these new Budget and Fiscal Recovery Priorities, I've directed our Department Direc- tors to think differently about our budget approach and challenges ahead including the follow- ing service changes and themes listed below. This is not a recommended budget approach at this time, nor comprehensive list, however it is intended to demonstrate the magnitude of changes needed to address expected financial constraints. Note that some workforce strategies are subject to bargaining over decisions and/or impacts, in some cases requiring mutual agree- ment. The City will work with labor to explore savings through these and other strategies. Citywide Strategies Citywide Cost Containment: We will explore additional cost containment through continuing a hiring freeze and freezing all nonessential travel, eliminating current vacancies and reducing future vacancies through attrition, and/or implementing furloughs with corresponding service reductions such as reduced walk-in office hours. VI TRANSMITTAL LETTER • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET TRANSMITTAL LETTER City General Capital Infrastructure Fund Transfer Suspension: The City's General Fund transfers upwards of $30 million annually to the General Capital Infrastructure Fund, consisting of a baseline transfer as well as the allocation of TOT receipts as designated by the City Council. This is expected to be significantly impacted by the losses in TOT revenues and reduction in the General Fund transfer would help bridge operating budget impacts. Both will significantly reduce the capacity for capital investments in the near term. We must prioritize investments including the Public Safety Building, 2014 City Council approved Infrastructure Plan, Parks improvements such as Birch Street, the newly acquired property adjacent to Boulware Park, and various transportation projects including but not limited to grade separations. Proactive Funding of Long-Term Liabilities: The City Council approved a proactive funding strategy to contribute to the City's Pension Trust Fund assuming a normal cost for contribution with a 6.2 percent discount rate. This resulted in additional annual contribution of $5.5 million in all funds, $3.4 million in the General Fund. We will explore pausing this practice to soften the extreme revenue losses in the short-term. Support of Economic Recovery through Changes to our Policies and Programs: The City is initiating Business Roundtables and other programs and services to continue supporting the business community. While implementation of outputs from the Business Roundtables may require near-term investments, they will also assist in the long term economic recovery of our community. Initiatives include the implementation of our new online permit system to ensure, even while sheltering in place, review of planning and permitting processes and policy changes to support businesses in the City. Department Specific Strategies Public Safety: We will explore the suspension or elimination of specialized police units such as the traffic enforcement unit and investigation unit to maintain minimal police patrol services and shift the priority of police services to focus on urgent calls and reduce the level of service and ability to respond to non-urgent calls for services. Reduce officer training, promotional testing, uniform purchases and eliminate or change to full cost recovery for non-essential programming such as the Parent Project community education program, crossing guards, Stanford Athletics, and school resource officers. Explore the reduced availability of at least one of five fire stations and eliminate or freeze a staff vacancy in the Office of Emergency Services. Community & Library Services: We will explore reduced library hours, not opening select library branches, and not re-opening some community services facilities. This includes greater cost recovery through changes in service delivery, charges for services, and/or limiting operating hours, for facilities such as the new Junior Museum and Zoo (JMZ), one community center, the Children's Theatre, or the Art Center. We will also explore reducing the number of days or hours of operation that other Community Services facilities are open such as community centers, museums, theaters or open space preserves. Explore the reduction or elimination of programming such as special events, art exhibits, and teen programs an re-evaluate the shared services between the City and Palo Alto Unified School District (PAUSD), including suspension of programs unless greater cost recovery can be achieved. Explore termination of the Cubberley lease or resetting to a shared revenue structure. Planning & Infrastructure: Explore restrictions to use of contract inspectors, elimination of next day inspections and explore scheduled inspections, understanding that this could delay TRANSMITTAL LETTER • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET VII TRANSMITTAL LETTER services to our development community. Defer several Council adopted planning efforts such as the housing work plan, all electric commercial buildings initiatives and other work not legally mandated. Restructure work to in-house staff only, explore amendments to the City's municipal code to scale back on application processing requirements associated with wireless communication facilities. Explore other amendments to reduce the number of applications requiring review by the architectural review board and elimination of the individual review program to free up resources that support the Council's long-range planning policy interests. Explore reducing code enforcement staffing, eliminating the Crosstown and Embarcadero shuttle programs or redesigning the delivery of this service to reduce costs. Evaluate the current parking program including the Residential Preferential Parking (RPP) program to full cost recovery including implementation of license plate recognition for efficiencies in park- ing enforcement, and implementation of a paid parking program to increase revenues. Explore deferral or reduction in tree trimming, vehicle replacement, suspending rate changes in various utility enterprise funds for the coming year(s) and explore shifting the City's sidewalk replacement and repairs program to cost-sharing or full property owner responsibility. Internal Services & Council Appointed Officers: Internal Services departments include the Information Technology, Human Resources, and Administrative Services Departments as well as the Council and appointed officers (City Manager, City Attorney, City Auditor and City Clerk). We will explore reductions in these areas in line with the proposed changes in services, aligning timeframes for assistance and review in areas such as recruitments, procurements, and risk management. Technology solutions would be constrained to only essential contracts and systems. The City Council may similarly review its expenses and areas for reduction. Once again, we must recognize that many of these budget balancing strategies are not sustain- able over the long term. However, these or similar solutions are necessary to bridge the gap cre- ates by a steep economic downturn, contain costs, and support our economic recovery. Summary of Other Funds The City's Enterprise and other funds, including the General Capital Fund, have also been brought forward in these proposed operating and capital budgets as working budgets. They reflect the priorities from the FY 2020 budget development with updates for FY 2021 rates and limited adjustments. The capital budgets have been updated for the current status and cost estimates of projects based on engineering designs and only adds limited new projects for urgent health and safety needs. The City will continue to maintain services and facilities for the community and the region, such as Utilities, Palo Alto Airport, and Wastewater Collection and Treatment plant. Although these budgets in this FY 2021 assume rate increases in various utili- ties, as noted above, staff is working to explore suspension of rate changes. Minimal changes are recommended in the various parking funds, one-time funding approved in FY 2020 are rec- ommended to be continued for an additional year such as funding for the Transportation Man- agement Association (TMA) and a General Fund subsidy in the RPP program. Parking permit prices are also recommended to increase by 2.6 percent, consistent with most other fees, except for resident permits which are recommended to remain at $50. VIII TRANSMITTAL LETTER • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET TRANSMITTAL LETTER In FY 2021, a total of $96.4 million will be allocated towards the capital program for the Enter- prise Funds, with $390.5 million allocated over the five-year CIP, representing 52.1 percent of CIP expenditures for all funds. Major investments continue in the Wastewater Treatment Plant's cap- ital program, with approximately 64 percent of the expenses reimbursed by five contributing partner agencies outside of the City of Palo Alto, and the general Capital Improvement Fund, which is the second largest section of the 2021-2025 CIP, totals $335.0 million with 91 projects. It is expected, as noted above, that a prioritization of investments will be necessary with the expected reduction in TOT receipts. Budget Timeline Acknowledgements I would like to thank the City Council for your leadership and our Executive Leadership Team and the entire staff of the City for providing outstanding services to our community. While rec- ognizing the challenges ahead, the Palo Alto community should be proud of your leadership and commitment to service. A proposed budget takes countless hours of teamwork, collaboration, and patience to produce. I would like to offer special thanks to Kiely Nose, our Chief Financial Officer and the dedicated Office of Management and Budget Team - Christine Paras, Paul Harper, Steve Guagliardo, Jessie Deschamps, Alexandra Harris, Jamie Perez, Kayla Shapiro, and Chaitali Paliwal. Completing this budget could not have been accomplished without the skill, dedication, and professionalism of this team. Their willingness to work through these unique circumstances and sacrifice countless hours are a testament to their commitment to this organization and to the community. Thanks are also due to David Ramberg, Assistant Director, Administrative Services Department, and Tarun Narayan, Treasury Manager. I am also grateful to the Department Directors of our Execu- tive Leadership Team and the department personnel who worked on the material. There are too TRANSMITTAL LETTER • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET IX TRANSMITTAL LETTER many to list here by name, but the budget could not have been produced without the senior/ management analysts, division managers, administrative assistants, and others throughout the organization who helped produce this budget. Respectfully Submitted, Ed Shikada City Manager X TRANSMITTAL LETTER • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET TRANSMITTAL LETTER Attachment A: Fiscal Year 2021 Budget Balancing The FY 2021 Operating Budget of $818.9 million reflects a 13.1 percent increase from the FY 2020 Operating Budget of $723.8 million. The increase primarily reflects the year-over-increase in programmed costs in the Capital Improvement Plan (CIP). The CIP expenses budgeted in FY 2020 were $154.3 million; FY 2021 includes programmed expenses of $254.2 million. The Gen- eral Fund has $238.8 million in budgeted expenses and represents 29.1% of the City's total expenditures. This FY 2021 baseline budget reflects the current service levels approved by the City Council with revenue projections prior to the COVID-19 emergency. As a balanced budget, the assump- tions contain therein continues to follow conservative proactive fiscal management across all funds and includes a $2.7 million contribution to the Budget Stabilization Reserve in the General Fund. This reflects the significant progress the City has made towards ongoing cost contain- ment over the past several years and the reductions that have been made across the organiza- tion prior to the impacts of COVID-19. Despite reflecting most recent figures, revenue estimates contained in these budgets are none- theless likely overstated given the current state of the economy. This budget begins what staff expects to be an ongoing conversation and difficult work ahead to plan for the return or recov- ery period once the shelter in place order is lifted and the impacts of COVID-19 continue to materialize financially. It is expected that these deliberations will require resetting expectations and many shared sacrifices moving forward. Budget summaries outlining the baseline budget presented in this proposed budget for the City's main funds are below and far greater detail is provided in their respective sections of the budget document. General Fund The FY 2021 Proposed Operating Budget includes revenues of $241.5 million in the General Fund, representing a 4.1% increase over the FY 2020 Adopted Budget of $232.1 million. General Fund expenses are budgeted at $238.8 million in FY 2021, representing an increase of 3.5% from the FY 2020 Adopted Budget of $230.8 million. These moderate increases in revenues and expenses which reflect activity prior to the public health emergency and current baseline ser- vice levels are discussed below. The FY 2020 Budget Stabilization Reserve (BSR) is anticipated to be $47.1 million, which would be 19.7% of General Fund expenses, and $2.9 million above the City Council target level of $44.2 million, which would be 18.5% of General Fund expenses. The General Fund Budget currently includes a contribution of $2.7 million to the BSR in FY 2021, since revenues in the budget exceed expenses by that amount, A significant draw on this reserve is forecasted for FY 2020 which would revise these figures due to the financial impact of the current shelter in place health order. TRANSMITTAL LETTER • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET XI TRANSMITTAL LETTER REVENUES Revenues of $241.5 million in the General Fund represent revenue estimates at the time the bud- get was developed, prior to the COVID-19 public health emergency. This $9.4 million increase over the FY 2020 Budget was diffused throughout the revenue categories, with $7.5 million of the increase attributed to various tax revenues. Each of these revenue estimates will be revised as more refined information becomes available and will be discussed with the City Council through budget hearings with the City Council. Below summarize the revenue estimates that this baseline budget assumes, however, it is expected that they are overstated. • Sales Tax was projected to increase by 9.5% (from $34.3 million to $37.6 million), • Property Taxes was anticipated to increase by 8.7% (from $48.6 million to $52.9 million), and • Transient Occupancy Tax (TOT) was expected to increase by 1.3% (from $29.3 million to $29.6 million). When the major tax categories are combined, including the above taxes as well as documentary transfer tax and Utilities User Tax, their revenues are anticipated to increase by $7.5 million, or approximately 5.4%, from FY 2020 Adopted Budget of $138.2 million to $145.7 million. The City will continue to monitor current revenues and analyze the economic and fiscal impacts of COVID-19. Additionally, funding from other sources, such as Measure B and SB1, are included in this budget to provide resources for Capital Infrastructure. They are discussed more in the FY 2020-FY 2024 Capital Budget, however impacts on external funding sources such as these will also need to be monitored and potentially adjusted. EXPENSES The City's FY 2021 General Fund expense budget is $238.8 million. As a service-driven organiza- tion, salaries and benefits, including the City's proactive pension funding contributions, repre- sent 58.9% of total General Fund expenses. This percentage is consistent with prior years. The next largest expense in the General Fund is transfers to other funds, which is increasing 9.1% from $34.0 million to $37.0 million. This category includes transfers to the infrastructure associ- ated with TOT revenues. As discussed earlier, the FY 2021 Proposed Budget does not yet contemplate the significant impacts of COVID-19. The FY 2021 Proposed budget includes current service delivery levels adjusted to FY 2021 costs and limited additional adjustments. The adjustments reflect only lim- ited changes to service delivery that were both known and quantifiable at the time this budget was developed. Budgetary impacts of COVID-19 will be discussed through the budget hearing process. Budgeted expenses will be revised based on the discussions during those hearings for the FY 2021 Adopted Budget. The increase in expenses year-over-year in the FY 2021 Proposed Budget reflects increased costs associated with salaries and benefits, which includes the City's contributions towards addressing long-term liabilities such as Retiree Health and Pension costs and the transfers to other funds discussed above. XII TRANSMITTAL LETTER • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET TRANSMITTAL LETTER In the FY 2021 Proposed Budget, there is a net 1.0 full-time position elimination in the General Fund. All changes to positions included in the FY 2021 Proposed Budget are discussed in Attachment B of the transmittal letter along with more detail regarding salary and benefit changes. Very limited one-time funding was included in the FY 2021 Proposed Budget, such as an expense for the November 2020 election in the Non-Departmental section of the Budget. The City is responsible for paying its proportional share of election costs, which is administered by Santa Clara County. All Funds This budget focuses not only on the General Fund but also on the City's other funds. Despite reflecting most recent figures, revenue estimates contained in this budget are nonetheless likely overstated given the current state of the economy. It is expected that once the revenue esti- mates are revised, significant adjustments will be necessary to ensure a balanced budget in the several funds with economically sensitive revenues. Staff expects to begin these conversations with the release of these Proposed Budgets and continue through May and June. Major activities in non-general funds in this FY 2021 baseline budget include: Wastewater Treatment Fund The FY 2021 Budget includes significant funding for the Wastewater Treatment plant's seven capital projects programmed through the FY 2021 - FY 2025 Capital Improvement plan. $9.7 million is budgeted in FY 2021 for these projects, including $5.0 million for the Primary Sedi- mentation Tank Replacement, and $3.9 million for the Outfall Line Construction. Through the five year CIP, expenses of $106.8 million are programmed across the seven projects. It is import- ant to note that approximately 64 percent of expenditures in the Wastewater Treatment Fund are reimbursed by five contributing partner agencies outside of the City of Palo Alto, based on each agency's expected capacity share. Details of these capital projects and expenses can be found in the Wastewater Treatment Fund section of the FY 2021 - FY 2025 Proposed Capital Budget. Airport Fund Revenues in the Airport Fund are anticipated to be $21.8 million with corresponding expenses of $23.4 million in FY 2021. While part of the Airport's increase in revenues are attributed to fees and charges that are scheduled to increase by 2.5 percent, $17.3 million comes from the Federal Aviation Administration (FAA), which provides a grant to cover 90% of Airport's major con- struction projects. In addition to the grant, the Airport is seeking a $2.0 million loan from the California Department of Transportation to offset some of the City's required 10% in matching funds to complete Phase III of the Apron project. The Airport continues to seek alternatives to ensure that there is sufficient funding for operating costs and continued services with minimal service delivery impact. In the past, the Airport Fund has received loans from the General Fund, totaling $3.1 million in principal since the City took over operations. The Airport Fund began repayment to the General Fund in FY 2020 in the amount of $272,000 annually for the next fif- teen years as part of its commitment to fiscal sustainability and financial viability. TRANSMITTAL LETTER • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET XIII TRANSMITTAL LETTER Various Parking Funds This FY 2021 Proposed budget recommends minimal changes to staffing levels. It includes the extension of one limited-term position to provide customer support services during the imple- mentation and transition to the new parking management software system. Similarly, capital improvement investments are relatively low due to the reprioritization of new projects and extension of timelines for existing projects. This budget recommends $750,000 in continued funding for the Transportation Management Association (TMA) o support the reduction of sin- gle occupancy vehicles (SOV) rates in Palo Alto. Similar to the prior year, the Residential Prefer- ential Parking (RPP) program continues to operate at a deficit and requires a General Fund subsidy of $185,000 in FY 2021, down from $683,000 in FY 2020. These expenditures are offset by recommended increases to parking permit revenue estimates to reflect the anticipated opening of the new California Avenue parking garage (345 parking spaces) and addition of a new residential parking district in Old Palo Alto. Parking permit prices are also recommended to increase by 2.6 percent, consistent with most other fees, with the exception of resident permits which are recommended to remain at $50. A more detailed presentation of the FY 2020 Bud- get for the University Avenue Parking District Fund and California Avenue Parking District Fund are available at the end of the Special Revenue Funds Overview section. Stormwater Management Fund In FY 2021, the Stormwater Management fee is scheduled to increase by 2.5 percent. The Storm- water Management fee was approved by property owners through a ballot measure in April 2017. The projects and infrastructure component of this fee has a sunset date of June 1, 2032 unless extended through a subsequent ballot measure. This fee provides financial resources for a number of projects and infrastructure components as outlined in the Storm Drain Blue Ribbon Committee's recommendations, which identified 13 Capital Improvement projects. Work on those projects began in FY 2019 and is programmed in the FY 2021 -FY 2025 Proposed Capital Budget. UTILITY RATE CHANGES Preliminary FY 2021 rate projections included rate increases for Electric, Gas and Wastewater Collection utilities to ensure the City's ability to replenish lower reserves, provide sufficient fund- ing to cover increasing expenses for commodity costs, and repair and replacement of the City's aging utility infrastructure. The median monthly residential utility bill is expected to increase by 2.4 percent, or $7.55, from $319.24 to $326.79. These rate proposals were made prior to the City's proclamation of local emergency regarding the spread of COVID-19. These rate adjust- ments are in the process of being evaluated by the Utilities Advisory Commission and the Finance Committee and are subject to change with the goal of no changes. XIV TRANSMITTAL LETTER • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET TRANSMITTAL LETTER Attachment B: Fiscal Year 2021 Salaries, Benefits, and Position Details The most significant asset the City has in serving our community is our employees. Local gov- ernment services are primarily delivered by employees, whether they are police officers, utility linemen, librarians, or planners. Therefore, it should not be surprising that nearly 60 percent of the FY 2021 General Fund Budget is attributable to salaries and benefits. The City has negoti- ated labor agreements with SEIU and safety units that extend through FY 2021 and anticipates developing new labor agreements with UMPAPA and the Management groups whose contracts expire June 30, 2020. As in prior years, the FY 2021 Budget presumes funding for those units consistent with City Council authority. This budget includes actions that are intended to maintain current service levels. These actions are primarily achieved through the realignment of resources, resulting in staffing levels that are generally consistent with the FY 2020 Adopted Budget. Staff anticipates bringing forward any additional changes as part of the public hearing process for the FY 2021 Adopted Budget. The changes that are included are discussed in detail below, and in the individual sections of the Budget document where the transactions occur. Position Changes This budget includes the net reduction of 1.00 FTEs across all funds from FY 2020 Adopted lev- els. This slight decrease from 1,034.85 in FY 2020 to 1,033.85 FTE in FY 2021 represents a 0.10 percent decrease. These adjustments are summarized in the following table that displays changes in full-time positions and discussed in more detail below. * Other Funds include Internal Service Funds, Special Revenue Funds, and the Capital Improvement Fund. Position Changes FY 2020 Adopted to FY 2021 Proposed Budget General Fund Enterprise Funds Other Funds*Total Fiscal Year 2020 Adopted Budget 574.93 358.61 101.31 1,034.85 Fiscal Year 2020 Approved Adjustments ---- Fiscal Year 2020 Modified Budget 574.93 358.61 101.31 1,034.85 Fiscal Year 2021 Increase 1.00 1.00 -2.00 Fiscal Year 2021 Decrease (2.00)(1.00)-(3.00) Fiscal Year 2021 Reallocation (0.25)-0.25 - Fiscal Year 2021 Proposed Budget 573.68 358.61 101.56 1,033.85 Net Difference (1.25)-0.25 (1.00) NOTE: This table does not include Hourly positions. TRANSMITTAL LETTER • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET XV TRANSMITTAL LETTER This budget recommends various net position changes, detailed below. In the General Fund, 2.0 FTE eliminations are partially offset by the addition of 1.00 FTE, and an additional 0.25 FTE are recommended to be shifted to the Cubberley Capital Fund, resulting in a total decrease of 1.25 FTE from the FY 2020 Adopted Budget. There is one recommended change in the Enterprise Funds in the Utility department, discussed below. Position Changes recommended in this bud- get include eliminations, reclassifications, and augmenting existing positions in order to best align the workforce with organizational needs. Outright position eliminations recommended in the Budget include: • Elimination of 1.0 Division Manager in the Community Services Department, reflecting a shift of responsibilities to the existing management resources. • Scheduled elimination of a limit-dated 1.0 Principal Management Analyst in Planning and Development Services that was authorized on a one-time basis for FY 2020 to assist in the merge of Planning and Community Environment and Development Services. The following position additions, augmentations/reclassifications, and realignments, augmenta- tions, s included in this budget. • Addition of 1.00 Producer of Arts and Sciences in the Community Services Department and reclassification of 1.0 Program Assistant I to 1.0 Program Assistant II for the reopening of the Junior Museum and Zoo (JMZ), reflecting the need for higher level oversight of operations, guest services, and animal care. Not included in the table above, an additional 5.79 part-time staff is requested as part of this action (CMR 11222). • Addition of 1.0 Compliance Technician in the Utilities Department to meet operational needs and increased inspection levels. This action is offset by the reduction of 1.0 Lineper- son Cablesplicer position. • Reclassification of 6.70 FTE Heavy Equipment Operators in the Utilities fund to 4.70 Water, Gas, Wastewater (WGW) Heavy Equipment Operators and 2.0 Electric Heavy Equipment Operators, in accordance with labor agreement terms that distinguished the activities of this classification (CMR 10214). • Reclassification of 1.0 Program Assistant I to 1.0 Program Assistant II in the Community Services Department to facilitate the development of a therapeutics program. • Reclassification of 1.0 Performance Auditor II to 1.0 Senior Performance Auditor to align with current workload needs. • Reclassification of 1.0 Senior Project Manager to 1.0 Senior Engineer in the Public Works Department to align the Parks and Open Space division with the management structure of other workgroups. • Realignment in the Community Services Department to shift 1.0 Administrative Associate III from general administration to the recreation and youth science division and minor adjustments to various staff to better align with the organizational needs and programs in the department. An additional adjustment is recommended to realign building service staff to the Cubberley Fund (This action results in a net 0.25 FTE decrease in the General Fund and a net 0.25 FTE increase in the Cubberley Capital Fund). XVI TRANSMITTAL LETTER • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET TRANSMITTAL LETTER • Realignment of 1.0 Performance Auditor II from the City Auditor Office to the Administra- tive Services Department to align staff with the shift the City's annual Performance Report, which was produced by the City Auditor Office in prior years. • Realignment of 0.75 Management Analyst from the City Manager's Office to the Public Works Department, reflecting the transition of the Office of Sustainability to Public Works. In addition, on a one-time basis, this Budget includes position freezes, recognizing savings equivalent to various positions throughout the organization in different departments. These positions will be held vacant through the duration of FY 2021 while the organization addresses the critical issue of long-term fiscal sustainability. This is beyond the normal vacancy savings presumed by the City as part of its regular budget process and will generate an additional $650,000 in savings on a one-time basis in FY 2021. • 2.0 Police Officers in the Police Department (which currently has 7 vacancies) • 1.0 Deputy Fire Chief in the Fire Department In addition to the changes to full-time positions discussed above, this budget also includes a net addition of 6.60 part-time positions, inclusive of the 5.59 positions requested for JMZ men- tioned above. These part-time position changes are discussed in greater detail in individual department sections of this document. Salary & Benefits The City Council has implemented multiple efforts to minimize the growth of pension and other benefit expenses through labor negotiations. These are an important part of the City’s overall cost-containment strategies. Past successful steps include: • Continued employee payment of the CalPERS employee contribution for all bargaining groups. • Employees contributing an additional amount between 1 percent and 4 percent of the employer portion of CalPERS. • Employees sharing the cost of health plans with almost all bargaining units receiving a flat- rate medical benefit. • Implementing a less costly second-tier pension plan, parallel to the state’s implementation of a third tier that went into effect January 1, 2013. As expected, new employees are hired into the lower tiers as existing employees retire, thereby lowering the City’s overall pension liability. PENSION This budget reflects the required employer pension contributions determined in the CalPERS actuarial valuation as of June 30, 2018 (discussed in City Manager's Report (CMR) 10641). The actuarial reports provide an update on the funding status, the results of assumption changes such as rate of return (ROR) which impacts the discount rate assumption, the new fiscal year Actuarial Determined Contribution (ADC) and the projected future ADC as a percentage of payroll. Discussed in more detail below, the contribution rates are highly dependent on the investment returns that CalPERS achieves. Therefore, there are likely significant impacts to the City's pension liability resulting from COVID-19 and associated current market volatility. Actuar- TRANSMITTAL LETTER • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET XVII TRANSMITTAL LETTER ial reports are completed two years in arrears and any potential losses will materialize beginning in the June 30, 2020 valuation and FY 2023 budget. The City will continue to work to under- stand what the impacts will be and strategize appropriate actions to minimize additional impacts on City service levels. The impacts may be lessened somewhat since CalPERS has taken a number of steps over the past few years that are intended to mitigate future impacts to cities even as they result in greater near-term costs. In December 2016, the CalPERS board voted to lower the discount rate (used in calculating investment returns) from 7.5 percent to 7.0 percent, phasing in the reduc- tion over three years. This phase-in began in 2019 and reaches the final phase in this FY 2021 Proposed Budget. The discount rate used by CalPERS to calculate the City's FY 2021 Actuarially Determined Contribution (ADC) was 7.00 percent, down from 7.25 percent used in FY 2020. When compared to FY 2020, FY 2021 employer contribution rates increased in line with previ- ous CalPERS projections. • The Miscellaneous Plan increased by 3.0 percentage points, an increase of 7.9 percent year-over-over, from 35.6 percent of payroll in FY 2020 to 38.4 percent of payroll in FY 2021. • The Safety plan increased by 3.8 percentage points, an increase of 9.4 percent year-over- year, from 59.4 percent of payroll in FY 2020 to 65.3 percent of payroll in FY 2021. CalPERS projected pension rates through FY 2026 are included in the table below (expressed in percent): Pension Rates By Plan (Fiscal Year) - CalPERS As the above table indicates, the City's pension costs will continue to increase through FY 2025. CalPERS use of a 7.0 percent discount rate results in greater costs than when it had used a higher discount rate (7.5 percent). This is representative of CalPERS' efforts to meet its invest- ment return more frequently. In a given year, if CalPERS meets or exceeds its investment return, the City's Unfunded Accrued Liability would shrink. This is because CalPERS provides, as part of its ADC to cities, not only a NormalCost (NC) which represents the 'pay-as-you-go' portion, but also an Unfunded Accrued Liability (UAL) payment calculation which represents the 'catch-up' payment. ,. Thus, if CalPERS investment target is met in a given year, the normal cost would cover the 'pay-as-you-go' portion, and the UAL payment lessens the long-term liability. Conversely, in a year when CalPERS does not meet its investment return, the UAL of the City would grow. In order to address this potential gap, the City Council directed that the City of Palo Alto fundamentally change its budgeting practice. Beginning in FY 2020, rather than use the CalPERS ADC (which is the standard practice for calculating pension costs in a given year) the City Council directed that the City use a discount rate of 6.2 percent, effectively decreasing the City's sensitivity to lower CalPERS returns. FY 2020 2021 2022 2023 2024 2025 2026 Miscellaneous (%)35.6 38.4 40.3 41.7 42.3 42.8 40.2 Safety (%)59.4 65.3 69.4 72.7 74.4 75.6 75.6 Discount Rate (%)7.0 7.0 7.0 7.0 7.0 7.0 7.0 XVIII TRANSMITTAL LETTER • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET TRANSMITTAL LETTER This additional normal cost (pay as you go) is included in the FY 2021 budget and will be sent to the City's irrevocable section 115 trust. The FY 2021 budget transmits a total of $5.5 million from all funds ($3.4 million General Fund) to the PARS trust fund. This brings total contributions through FY 2021 to $32.8 million ($21.4 million General Fund) since the trust was created in FY 2017. This funding represents important contributions towards addressing the City's long-term pension liability and will help insulate the City against potential future increases to the UAL. In comparison to the $50.1 million in CalPERS projected pension costs, this additional pay-as-you- go cost of $5.5 million is roughly 11 percent of the City's annual pension costs. Of note, the con- tribution levels from FY 2020 to FY 2021 decreased from $6.2 million to $5.5 million due to the change in CalPERS discount rate from 7.25 percent to 7.00 percent thereby narrowing the fund- ing gap to meet the 6.2 percent target. In October 2019, Staff met with the Finance Committee to review and discuss options and ele- ments to establish a Pension Funding Policy as discussed in CMR 10645. Staff anticipates con- tinuing the conversation about a Pension Funding Policy with the full City Council parallel to the public hearing process for budget adoption. Additional information regarding the City's plan for proactively addressing escalating pension costs, and the discussions that the City Council has already conducted to date, can be found in the Employee Information section of this document. RETIREE HEALTHCARE Consistent with past practice, this budget assumes the full payment of the Actuarial Deter- mined Contribution (ADC) for not only retiree pension but also healthcare costs. With the pay- ment of the ADC it is assumed that, all else being equal, the City will fully pay off its obligations for retiree healthcare costs. The City's outside actuarial consultant (Bartel Associates) performs an actuarial analysis of the City's OPEB funding every two years. The most recent report was completed on June 30, 2017 to inform both the FY 2019 and FY 2020 Operating Budgets. At the timing of the development of the FY 2021 Proposed Budget, the City had not yet received a finalized report for use in FY 2021 and FY 2022. Therefore, the FY 2021 Proposed Budget con- tains the long-range information provided in the most recent study. for the Proposed FY 2021 Budget for Retiree Healthcare increases to $16.8 million, representing a 2.3 percent increase from the FY 2020 Adopted Budget of $16.4 million. The current actuarial study is anticipated to be completed before the end of the fiscal year, which will provide an update on the fund's status as of June 30, 2019. Staff anticipates discuss- ing the latest actuarial valuation as part of the public hearing process for the adoption of the FY 2021 Budget. Additional information regarding Retiree Healthcare can be found in the Employee Information section of this document. •CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 1 Fiscal Year 2021 Proposed Operating Budget City Council Adrian Fine, Mayor Tom DuBois, Vice Mayor Alison Cormack Eric Filseth Liz Kniss Lydia Kou Greg Tanaka Ed Shikada, City Manager Kiely Nose, Director of Administrative Services/Chief Financial Officer David Ramberg, Assistant Director of Administrative Services Christine Paras, Assistant Director of Administrative Services Paul Harper, Budget Manager, Office of Management and Budget Greg Tanaka, Finance Committee Chair 2 • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET CITY OF PALO ALTO The government of the City of Palo Alto exists to promote and sustain a superior quality of life in Palo Alto. In partnership with our community, our goal is to deliver cost-effective services in a personal, responsive and innovative manner. Our Values Quality Superior delivery of services Courtesy Providing service with respect and concern Efficiency Productive, effective use of resources Integrity Straight-forward, honest and fair relations Innovation Excellence in creative thought and implementation • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 3 Table of Contents TABLE OF CONTENTS TABLE OF CONTENTS • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 5 Table of Contents I Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Budget Acknowledgments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9 City of Palo Alto Organizational Chart. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11 Palo Alto at a Glance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 The Budget Process and Document. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Budget Awards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29 II Citywide Funds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .33 Citywide Funds Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35 Citywide Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .37 Citywide Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39 Citywide Projected Operating Fund Balance . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Citywide Average Salary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43 III General Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .47 General Fund Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .49 General Fund Reserves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .58 General Fund Revenues. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .62 General Fund Expenditures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .63 IV Enterprise Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .67 Enterprise Funds Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .69 V Internal Service Funds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81 Internal Service Funds Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .83 VI Special Revenue Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .87 Special Revenue Funds Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .89 VII Debt Service Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103 Debt Service Funds Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105 VIII City Departments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .113 City Attorney . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .115 City Auditor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123 City Clerk. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .131 City Council. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137 City Manager. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143 Office of Transportation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .151 Administrative Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159 General Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163 Printing and Mailing Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168 Community Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .171 Fire . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .185 Human Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193 General Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197 General Liabilities Insurance Program. . . . . . . . . . . . . . . . . . . . . . . . . . . . 200 Workers’ Compensation Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203 TABLE OF CONTENTS 6 TABLE OF CONTENTS • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Information Technology. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207 Library . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215 Office of Emergency Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .223 Planning and Development Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .229 Police . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .239 Public Works. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .247 General Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 251 Airport Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .256 Refuse Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 261 Stormwater Management Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .267 Vehicle Replacement and Maintenance Fund. . . . . . . . . . . . . . . . . . . . . .272 Wastewater Treatment Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .277 Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .283 Electric Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .288 Fiber Optics Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .297 Gas Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 302 Wastewater Collection Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 309 Water Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 315 Non-Departmental . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .323 IX Employee Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .327 Employee Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .329 Retiree Health Benefit Fund Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .335 Table of Organization. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 339 X Supplemental Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .357 Financial Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .359 Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 363 Americans with Disabilities Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .367 • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 7 INTRODUCTION Introduction BUDGET ACKNOWLEDGEMENTS BUDGET ACKNOWLEDGMENTS • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 9 BUDGET ACKNOWLEDGMENTSBudget Acknowledgments Department Budget Coordinators Administrative Services David Ramberg City Attorney Tricia Hoover City Clerk Jessica Brettle City Manager/Office of Transportation Chantal Gaines Judy Ng Elizabeth Egli Community Services Jazmin LeBlanc Lindsay Wong Fire Amber Cameron Human Resources Frank Lee Information Technology Sherrie Wong Library Giovanna Erkanat Office of Emergency Services Nathan Rainey Planning & Development Services Khashayar Alaee Sherry Nikzat Sarah McRee Police Eric Jensen Public Works Michelle Austin Maybo AuYeung Dinaa Alcocer Utilities Anna Vuong Budget Document Producers - Office of Management & Budget Staff Kiely Nose Alexandra Harris Christine Paras Chaitali Paliwal Paul Harper Jamie Perez Jessie Deschamps Kayla Shapiro Steve Guagliardo CITY OF PALO ALTO ORGANIZATIONAL CHART CITY OF PALO ALTO ORGANIZATIONAL CHART • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 11 CITY OF PALO ALTO ORGANIZATIONAL CHARTCity of Palo Alto Organizational Chart Palo Alto Residents City Council City Attorney Molly Stump Office of Emergency Services Kenneth Dueker, Director Administrative Services %!(5ƫ+/hČƫDirector/Chief Financial Officer Plannin#ƫ* ƫ!2!(+,)!*0 ƫ +*0$*ƫ%0Čƫ%.!0+.ƫ Information Technology ..!*ƫ1)+0+Čƫ *0!.%) Chief Information Officer Public Works . ƫ##(!/0+*,ƫDirector Community Services ƫ .%/0!*ƫŏ*!Čƫ%.!0+. Human Resources 1)%ƫ+.0%((+, Director/Chief People Officer Fire Department !+"".!5ƫ('/$%.!Č Chief Police Department +!.0ƫ +*/!*ČƫChief Library 50$.%ƫ*0$,ƫ *0!.%) Director Utilities !*ƫ0$!(+.,ƫ%.!0+. City Clerk Beth Minor City Managerĵ ƫ$%' City Auditor ĵ$!ƫ""%!ƫ+"ƫ.*/,+.00%+*ƫ%/ƫ/%010! ƫ%*ƫ0$!ƫ%05ƫ *#!.ŏ/ƫ""%!ċ PALO ALTO AT A GLANCE • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 13 PALO ALTO AT A GLANCE PALO ALTO AT A GLANCEPalo Alto at a Glance INCORPORATION April 23, 1894 GOVERNMENT Palo Alto is a charter city operating under the Council-Manager form of government COUNTY Santa Clara County www.sccsgov.org SCHOOL DISTRICT Palo Alto Unified School District www.pausd.org LOCATION 33 miles south of San Francisco; 17 miles north of San Jose; and 356 miles north of Los Angeles CLIMATE Mediterranean climate with cool, wet winters and warm, dry summers AREA 25.85 square miles ELEVATION 30 feet above sea level PARKS, PRESERVES AND OPEN SPACE 4,385 acres CREDIT RATING AAA 14 PALO ALTO AT A GLANCE • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET PALO ALTO AT A GLANCE POPULATION Palo Alto’s population was 67,019 in 2019. This represents a 0.1 percent decrease over the previous year and a 13.17 percent increase since 2000. Approximately 23.6 percent of the population is under the age of 18, and the median age is 41.9. Approximately 50.9 per- cent of the population is female, and 49.1 per- cent of the population is male. EDUCATION Palo Alto has one of the most outstanding educational systems in the nation and was recently named one of California’s most edu- cated cities. Over 97.4 percent of Palo Alto residents aged 25 or over have received a high school diploma. Over 81.9 percent have obtained a bachelor’s degree or higher and 53.4 per cent have earned a post-graduate or professional degree. School enrollments in Palo Alto decreased to 11,938 from 12,230, or by 3.23 percent, between 2010 and 2019. In school-year 2018- 19, Palo Alto and Gunn high schools had a average SAT scores of 1331 and 1377 on a scale of 1600. The average scores for the United States and California were 1,059 and 1065, respectively. INCOME In 2018, Palo Alto’s median household income was $147,537 and the per capita income was $82,576. As of 2018, 64.9 percent of all house- holds in Palo Alto had an annual income of greater than $100,000. PERSONS PER HOUSEHOLD The average number of persons per house- hold in Palo Alto owner-occupied and renter occupied homes was 2.52 in 2018, compared to 2.26 per household in 2000. HOUSING UNITS In 2018, 55.1 percent of the 26,212 housing units were owner-occupied and 44.9 percent were renter-occupied. In 2000, there were 26,048 housing units – 55.4 percent owner- occupied, 41.4 percent renter-occupied, and 3.2 percent were vacant. There were 0.6 per- cent more total housing units from 2000 to 2018. PALO ALTO AT A GLANCE • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 15 PALO ALTO AT A GLANCE DEVELOPMENT The City issued approximately 2,395 residential and 525 commercial building permits in Fiscal Year (FY) 2019. The combined valuation for all permits was $435.9 million. OFFICE AND INDUSTRIAL RENTAL ACTIVITY Palo Alto’s net rentable office space totaled approximately 7.2 million square feet as of the fourth quarter of 2019. The vacancy rate during this same time period was 4.4 percent com- pared to 6.0 percent for the Silicon Valley mar- ket. Average asking rents in Palo Alto and the Silicon Valley were, respectively, $9.39 and $5.45 per square foot, as of the fourth quarter of 2019. Net rentable square footage for industrial facil- ities in Palo Alto was 1.1 million, with a vacancy rate of 1.6 percent and average asking rent of $2.20 per square foot for manufacturing and $2.85 per square foot for warehouse. The Sili- con Valley market had an average vacancy rate of 3.4 percent and asking rent averaged $1.19 per square foot for manufacturing and $1.10 for warehouse. Net rentable space for Research and Develop- ment (R&D) facilities in Palo Alto totaled 10.3 million square feet with a vacancy factor of 7.2 percent and average asking rent of $6.47 per square foot. The vacancy rate for the Silicon Valley market was 7.1 percent with an average asking rent of $2.73 per square foot. RETAIL SALES AND SALES TAX REVENUE Sales and use tax totaled $36.5 million in FY 2019 an increase of $5.4 million, or 17.3 percent, due to combination of economic performance in sectors such as auto sales, leasing factors and restaurants. In fiscal year 2018 the California Department of Tax and Fee Administration (CDTFA) was established. CDTFA introduced a new technology and a revamped collection process, which initially delayed distribution of FY 2018 sales tax. This resulted in lower sales tax in FY 2018 and higher sales tax in FY 2019. Included in the receipts are continued erosion of brick and mortar receipts that is resulting from steady growth in on-line retail sales. However, increase receipts from the county pool which includes a growing number of on-line retailers collecting sales and use tax, has been offsetting these losses. Top 25 Major Sales/Use Tax Contributors, FY 2019 Anderson Honda Lucile Packard Children’s Hospital Tencent Apple Stores Macy’s Department Store Tesla Audi Palo Alto Magnussen’s Toyota of Palo Alto Tesla Lease Trust Bloomingdales McLaren San Francisco Tiffany & Company Bon Appétit Management Co.Neiman Marcus Department Store Urban Outfitters Hermes Nest Labs Varian Medical Systems Houzz Shop Nordstrom Department Stores Volvo Cars Palo Alto Hp Enterprise Services Shell Service Stations Integrated Archive Systems Stanford Outpatient Clinic Pharmacy 16 PALO ALTO AT A GLANCE • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET PALO ALTO AT A GLANCE PALO ALTO BUSINESSES As the birthplace of the Silicon Valley, Palo Alto is the home to Stanford University and thousands of innovative companies including Hewlett-Packard, IDEO, Tesla, Flipboard, Palantir Technologies, Xerox’s Palo Alto Research Center (PARC), Wilson Sonsini Goodrich & Rosati, Manatt Phelps Phillips, Accel Partners, Google, Genencor, Tencent America, Skype Technologies, Nest, the Insti- tute for the Future, and many other leading technology and business services firms. Palo Alto continues to be a desirable place to live due to its economy, climate and natural beauty, parks and recreational activities, excellent public school system, university presence, proximity to three major airports (Oakland, San Jose and San Francisco), rail service, world-class medical facilities, excel- lent retail centers and restaurants, and its highly acclaimed City services. Businesses are drawn to Palo Alto not only because of its great location, workforce, and entrepreneurial culture but also because of incentives including: great local utilities (including dark fiber), no payroll tax, and no business license tax. Additionally, the City's Development Center is a "one-stop" service center staffed by the Planning and Develop- ment Services, Public Works, Utilities, and Fire departments. Principal Property Taxpayers, FY 2019 Rank Taxpayer Taxable Assessed Value 1 Leland Stanford Jr. University $5,446,309 2 Loral Space and Communications $248,247 3 Google Inc. $213,982 4 395 Page Mill LLC $118,303 5 ARE-San Francisco 69 LLC $114,575 6 SVF Sherman Palo Alto Corporation $97,856 7 Hohbach Realty Co. LP $94,642 8 SI 45 LLC $81,145 9 Gwin Property Inc. $78,540 10 BVK Hamilton Avenue LLC $73,189 Total $6,566,788 PALO ALTO AT A GLANCE • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 17 PALO ALTO AT A GLANCE EMPLOYMENT The City had 32,287 employed residents in 2019. Due to its location on the Peninsula and the presence of Stanford University, the City is a job importer versus exporter with a total of 99,420 jobs citywide. Palo Alto’s unem- ployment rate was 2.1 percent in 2019, which was considerably lower than the nation (3.7 percent), state (4.0 percent), and county (2.6 percent), during the same period. LARGEST EMPLOYERS Palo Alto’s top ten employers as of June 30, 2019 reflect jobs in industries ranging from education and healthcare to technology and research and development. Principal Employers, FY 2019 Rank Employer Number of Employees 1 Stanford Healthcare 5,500 2 Lucile Packard Children's Hospital 5,700 3 Stanford University 4,500 4 Veteran's Affairs Palo Alto Healthcare System 3,900 5 VMware, Inc.3,500 6 SAP Labs Inc.3,500 7 Space Systems/Loral 2,800 8 Hewlett-Packard Company 2,500 9 Palo Alto Medical Foundation 2,200 10 Varian Medical Systems 1,400 Total 35,500 18 PALO ALTO AT A GLANCE • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET PALO ALTO AT A GLANCE Parks, Recreation & Community Centers Item (FY 2019)Number Parks 36 Parks Acreage 174 Dog Parks 4 Playgrounds 30 Community Centers & Museums 5 Zoo 1 Golf Courses 1 Gymnasiums/Fitness Rooms 6 Youth Centers 1 Walking/Biking Trails (Miles)41 Libraries Item (FY 2019)Number Library Branches 5 Items Checked Out (Circulation)1,467,038 Books (Inventory)247,030 eBooks & eMusic (Inventory)191,449 Audio/Visual - DVD/CDs (Inventory)46,678 Reference Questions 14,924 Public Safety Item (FY 2019)Number Police Police Stations 1 Sworn Police Personnel 90 Police Vehicles 29 Motorcycles 3 Canine Units 2 Number of Calls for Service 54,979 Item (FY 2019)Number Fire Fire Stations 7 Sworn Fire Personnel 96 Fire Engines 9 Fire Trucks 2 Ambulances 6 Number of Calls for Service 9,086 PALO ALTO AT A GLANCE • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 19 PALO ALTO AT A GLANCE Infrastructure, Maintenance & Development Activity Item (FY 2019)Number Street Miles 471 Lane Miles Resurfaced Annually 9.78 Building Permits Issued Annually 2,918 Number of Fire Inspections 10,984 Active Capital Improvement Projects 231 Capital Improvement Projects Exp.$103.3 million Miles of Water Municipal Mains 235.3 Gallons of Water Delivered Daily 9 million Miles of Municipal Wastewater Mains 216 Gallons of Wastewater Treated 6,958 million Miles of Gas Mains 211 Miles of Overhead Electrical Line 211 Miles of Underground Electrical Line 267 Miles of Fiber Optic Backbone 48 20 PALO ALTO AT A GLANCE • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET PALO ALTO AT A GLANCE SOURCES: POPULATION: U.S. Census Bureau, 2018 American Commu- nity Survey, Demographic and Housing Esti- mates, 5-Year Estimates, Table DP05. 2020 Official City Data Set. EDUCATION: U.S. Census Bureau, 2018 American Community Survey, Social Characteristics in United States, Educational Attainment, 5- Year Estimates, Table DP02. City of Palo Alto 2018-2019 CAFR (Demographic and Economic Statistics- Last Ten Fiscal Years). 2019 average SAT scores on Prescholar.com for National and State level SAT scores. Data collected from College Board 2019 SAT reports. INCOME: 2018 American Community Survey 5-Year Estimates, Selected Economic Characteris- tics, Table DP03. PERSONS PER HOUSEHOLD AND HOUSING UNITS: 2018 American Community Survey 5-Year Estimates, Selected Housing Characteristics, Tables, DP04. DEVELOPMENT: City of Palo Alto Planning and Development Department OFFICE AND INDUSTRIAL RENTAL ACTIVITY: CBRE Silicon Valley MarketView Q4 2019 RETAIL SALES AND SALES TAX REVENUE: City of Palo Alto Sales Tax Digest Summary 2019 (Office of the City Auditor) City of Palo Alto 2018-2019 CAFR TOP 25 MAJOR SALES/USE TAX CONTRIBUTORS: City of Palo Alto Sales Tax Digest Summary Second Quarter Sales (April-June– 2019)-Top 25 Major Sales/Use Tax Contributors. PRINCIPAL PROPERTY TAXPAYERS: City of Palo Alto 2018-2019 CAFR- Principal Property Taxpayers-Current Year and Nine Years Ago. EMPLOYMENT: 2020 Official City Data Set. California Employment Development Department- Labor Market Information Division for State and County unemployment rate, US Depart- ment of Labor-Bureau of Labor Statistics for Nation unemployment rate. PALO ALTO BUSINESSES: City of Palo Alto Economic Development LARGEST EMPLOYERS: City of Palo Alto 2018-2019 CAFR Sustainability Item (FY 2019)Number Total Tons of Material Recycled or Composted 55,900 Total Megawatt-hours Purchased from Eligible Renewable Sources*560,245 Percent of Electric Portfolio Purchased from Eligible Renewable Sources 62% Percent of Electric Portfolio Purchased from Carbon Neutral Sources**100% * Fiscal year 2019. “Eligible Renewable Sources” are wind, solar, small hydroelectric, and biogas genera- tors whose output is directly purchased by the City under a power purchase agreement. ** Fiscal year 2019 “Carbon Neutral Sources” include eligible renewable (62%) and large hydroelectric power (62%). Due to the bountiful hydro conditions in 2019, the City was able to sell surplus carbon neu- tral electricity supplies to other utilities. THE BUDGET PROCESS AND DOCUMENT THE BUDGET PROCESS AND DOCUMENT • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 21 THE BUDGET PROCESS AND DOCUMENTThe Budget Process and Document Basis for Budget Development The budget is the City’s financial plan for delivering effective services and efficiently managing the revenues which support those services. The City’s charter and municipal code provide broad governance for preparation of the operating and capital budgets. The budget is also developed based on the following: The City Council’s top priorities and other City Council directives Organizational financial status and budgetary guidelines Service level prioritization, as identified by the City Manager Availability and sustainability of revenues Legal mandates Prioritization criteria, as outlined in the capital budget The City's policies regarding land use and community design, transportation, housing, natural environment, business, and economics, as outlined in the Comprehensive Plan The review of the operating and capital budgets is structured around public hearings con- ducted prior to City Council adoption of the budget in order to incorporate community input into the decision-making process. City Council Top Priorities The City is committed to providing high quality, cost effective services that reflect the City’s core values and strategic goals. In addition, each year the City Council establishes top priorities, which are topics or service areas that will receive particular, unusual, and significant attention during the year. The top priorities guide both budget development and department priority-set- ting. The following are the City Council’s top priorities for 2020, adopted in February 2020: Housing Sustainability Mobility THE BUDGET PROCESS AND DOCUMENT 22 THE BUDGET PROCESS AND DOCUMENT • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Operating and Capital Budgets - Calendar of Activities September - November: Operating budget preparation begins with determination of the base budget for the upcoming year. The base budget establishes the current year adopted budget service levels with updated costs, removes one-time revenue and expenses, and adds ongoing expenditures as approved by the City Council. The capital budget preparation process begins with department staff and appointed committees meeting to review and discuss potential modifications to the five-year capital plan. November - December: Budget guidelines and timeframes are developed and distributed for the operating and capital budgets as well as the annual municipal fee schedule. January: Departments submit requests to reallocate staffing and non-salary resources for the upcoming year to meet changing operational needs. The reallocation process results in no net change to the level of resources allocated to the department overall. The General Fund Capital Improvement Plan (CIP) Review Committee, consisting of senior managers in Public Works, Community Services, Administrative Services, and the Office of Transportation, reviews requests for General Fund capital projects. February: Departmental requests for changes and/or augmentations to the base budget are submitted to the Office of Management and Budget (OMB) for analysis. Departments provide targeted outcomes and performance measures associated with requests for resource or service level augmentations. Departments also submit updates to the budget document regarding goals and objectives, significant accomplishments, and key performance and workload mea- sures. OMB staff reviews operating and capital budget requests. March: Internal budget hearings are held with the City Manager to discuss department budget requests and OMB’s budget recommendations. April: OMB staff complete preparation of the proposed operating and capital budget docu- ments based on the City Manager’s direction. May: The City Manager releases and presents the proposed operating and capital budgets to the City Council and posts the budget document on the City’s website. Through a series of public hearings, the budget is discussed and amendments are proposed. June: Final adoption by the City Council occurs after a public hearing in June. All changes made during the public process are incorporated into the adopted budget documents which are dis- tributed to City libraries as well as posted on the City's website and Open Budget website by early August. THE BUDGET PROCESS AND DOCUMENT THE BUDGET PROCESS AND DOCUMENT • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 23 *Public meetings will be held by virtual teleconference pursuant to the provisions of California Governor’s Executive Order N-29-20, issued on March 17, 2020. To prevent the spread of COVID-19, these meetings will be held by virtual teleconference only, with no physical location. These meetings will be broadcast on Cable TV Channel 26, live on YouTube at www.youtube.com/c/cityofpaloalto, and Midpen Media Center at www.midpenmedia.org. Members of the public who wish to participate by computer or phone can access the meeting by going to www.zoom.us/join and entering meeting ID 362 027 238. If you are calling from a land line or non-smart phone call 1-669-900-6833 to join the meeting. BUDGET HEARINGS* With City Council and Finance Committee FY 2021 Budget Date Description Location Description Monday, April 20 City Council Teleconference City Manager comments reviewing the proposed Capital and Operating Budgets and notices the start of public budgetary discussions in May May, 2020 City Council Teleconference City Council Budget Hearings Monday, June 15 City Council Teleconference Public Hearing ‐ Budget Approval & Adoption THE BUDGET PROCESS AND DOCUMENT 24 THE BUDGET PROCESS AND DOCUMENT • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Understanding the Budget Document The operating budget document includes citywide information as well as information specific to each fund and each department. The City receives revenue from numerous sources, many of which have restrictions on how funds can be used. Separate funds are established to account for the different types of revenues and their allowable uses. The annual budget information is available after the publication of the Adopted Budget, which occurs in August. General Fund: This is the primary fund used to account for all general revenues of the City (e.g. property, sales, transient occupancy, and utility user taxes). In general, these funds are allo- cated at the discretion of the City Council. This revenue is used to support citywide services such as public safety, community services, planning and development services, and administra- tive support services. Enterprise Funds: These funds are established to function as self-supporting operations wherein expenditures are entirely offset by fees or charges for services. For example, the City of Palo Alto provides a variety of utility services (electric, gas, water, etc.) for the community. Revenues from fees or charges are accounted for in separate enterprise funds and can only be used to pay for expenses related to those services. Internal Service Funds: These funds are established to account for a variety of business services provided by one City department (or division) to other City departments. Information technol- ogy, fleet maintenance, printing and mailing, general employee benefits, general liability, and workers’ compensation services are provided to all City departments through internal service funds. Departments are charged for these services based on their respective utilization. Capital Funds: Revenues and expenses for capital projects are also accounted for in a separate fund. Capital projects are those that have a minimum cost of $50,000 for each standalone or combined project. Additionally, the project must have a useful life of at least five to seven years and/or extend the life of an existing asset or provide a new use for an existing asset for at least five years. The City produces a standalone budget document for capital projects with detailed information about each project. Special Revenue Funds: These funds are used to account for the proceeds of revenues that are designated for specific or restricted uses. These funds include gas tax funds from the state, in- lieu housing fees assessed for the City's Below Market Rate housing projects, and transporta- tion mitigation fees paid by developers. Other special revenue funds include assessments for parking lot bond payments, parking permit revenues, Community Development Block Grants (CDBG) funds from the federal government, and development impact fees related to libraries, parks, and community centers. Debt Service Funds: Debt financing is occasionally undertaken for the purchase, replacement, or rehabilitation of capital assets. A separate fund is established to account for these non-oper- ating expenses. THE BUDGET PROCESS AND DOCUMENT THE BUDGET PROCESS AND DOCUMENT • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 25 Open Budget In order to facilitate understanding and transparency of the budget document, the City pro- vides budget information through OpenGov, an online tool that provides users with different views of the City’s budget data by fund, department, revenues, and expenditures. The tool can be accessed by visiting www.paloalto.opengov.com. The City invites you to use the online tool to: Search budget and financial data View trends in revenues and expenditures over time Drill down into expenses by department or account type Display the data as graphs or charts Download into Excel Share with friends using email or social media Send comments directly to the City online HOW DOES IT WORK? Governmental budgets are composed of funds, departments, and accounts. Using a pull-down filter you can choose the combination you want to explore. By clicking on one of these icons, you can choose whether you want to display graphs showing changes over the years, a pie chart for a single year, or download portions into Excel. You can also cut and paste any illustration into another document, send it to friends using email or Twitter, or post it on Facebook. THE BUDGET PROCESS AND DOCUMENT 26 THE BUDGET PROCESS AND DOCUMENT • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Department and Enterprise Fund Information The budget document includes the following information for each department and enterprise fund: Mission Statement, Purpose, and Description: introduces the department. Organizational Chart: depicts full-time equivalent (FTE) positions that report to a department director. The total FTE count in the organizational chart may not match the total FTE count in a department section if positions are budgeted in a fund not included in the particular depart- ment section. For example, the Administrative Services Department (ASD) Assistant Director oversees the SAP functional team, as displayed on the organizational chart but the positions are budgeted in the Technology Fund so they do not appear in the ASD departmental budget sum- mary. **Accomplishments: identifies the department’s noteworthy accomplishments of the past fiscal year. **Initiatives: highlights the major work plan items for the department for the upcoming fiscal year. **Goals and Objectives: identifies major goals as well as activities that support achievement of those goals. **Key Performance Measures: lists key department performance measures related to some goals and objectives. **Workload Measures: identifys key quantifiable department outputs. Budget Summary: summarizes key expenditure, revenue, and position data for the department and/or fund for several fiscal years (for example, in the FY 2021 Proposed Budget you will see FY 2018 Actuals, FY 2019 Actuals, FY 2020 Adopted and FY 2021 Proposed Budget). Revenues are shown as either internal or external depending on their source. External revenues include grant funds as well as fees collected for the provision of services such as inspections, plan checks, and recreational programs. Internal revenues are those that are received from another City department. For example, the Utilities Department reimburses the Attorney's Office for legal services. In FY 2021, it should be noted that a variance will be seen between FY 2019 Actu- als and the FY 2020 Adopted Budget columns in the salary and benefits total expenses. This variance reflects the difference between estimated vacancies and staff costs actually incurred as well as the changes in labor terms from year to year. Staffing: lists all full-time equivalent (FTE) positions and their respective salaries in a depart- ment based on their actual levels of compensation. **The FY 2021 Proposed Budget will not include the following department information: accomplishments, initiatives, goals and objectives, key performance measures, nor workload measures. As approved by the City Council on March 23, 2020 in Staff Report 11208, the City of Palo Alto is producing a modified budget document that contains only essential financial information. This decision was made to allow greater time from the workforce to be spent on other critical and immediate issues related to the City’s emergency response to COVID-19. THE BUDGET PROCESS AND DOCUMENT THE BUDGET PROCESS AND DOCUMENT • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 27 Budget Reconciliation: outlines the major base budget and adopted budget expenditure and revenue changes from the previously adopted budget to the newly presented proposed or adopted budget. Base budget reconciliation changes include updated salary and benefits cost in accordance with the salary and benefits structure approved by the City Council, deletion of one-time expenditures, and/or the addition of ongoing expenditures as approved by the City Council. The budget change table itemizes expenditure and revenue recommendations and the net impact on the fund. Budget Adjustments: describes service level changes compared to the prior fiscal year as well as the anticipated performance impact as it relates to Quality, Cost, Cycle Time, Customer Sat- isfaction, and Sustainability, identified with icons as follows: BUDGETARY BASIS The budget is prepared in accordance with Generally Accepted Accounting Principles. The budget for governmental funds has been prepared on a modified accrual basis. The modified accrual basis recognizes expenditures when the related fund liability is incurred. Revenues are recognized when they become both measurable and available. “Measurable” means the amount of the transaction can be determined and “available” means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. FUND STRUCTURE AND ACCOUNTING BASIS The accounts of the City are made up of funds that help organize and account for restricted resources. A fund is defined as a fiscal and accounting entity with a self-balancing set of accounts (comprised of assets, liabilities, fund equity, revenues, and expenditures), which are segregated for the purpose of carrying out specific activities or attaining certain objectives in accordance with regulatory requirements. The City has the following fund type categories: Governmental Fund Types The Governmental funds include the General, Special Revenue, Debt Service, and Capital Proj- ect Funds. Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Proprietary Fund Types The Proprietary funds, which include the Enterprise and Internal Service Funds, are used to account for the City's business-type activities. Proprietary funds are reported using the eco- nomic resources measurement focus and the full accrual basis of accounting. Revenues are Quality Cost Cycle Time Customer Satisfaction Sustainability THE BUDGET PROCESS AND DOCUMENT 28 THE BUDGET PROCESS AND DOCUMENT • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET recorded when earned, and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Fiduciary Fund Types The Fiduciary funds track assets held by the City in trust or as an agent for various assessment and community facilities districts. These funds are not included in the budget process. Agency Fund Types The Agency funds are custodial in nature and do not involve measurement of results of opera- tions. The City maintains three agency funds, which are not included in the budget process. BUDGET AWARDS • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 29 BUDGET AWARDS BUDGET AWARDS CCalifornia Society of Municipal Finance Officers Certificate of Award Operating Budget Excellence Award Fiscal Year 2019-2020 Presented to the City of Palo Alto For meeting the criteria established to achieve the CSMFO Excellence Award in Budgeting. January 31, 2020 Steve Heide Yolanda Rodriguez, Chair CSMFO President Recognition Committee Dedicated Excellence in Municipal Financial Reporting 30 BUDGET AWARDS • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET BUDGET AWARDS BUDGET AWARDS • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 31 BUDGET AWARDS • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 33 CITYWIDE FUNDS Citywide Funds CITYWIDE FUNDS OVERVIEW CITYWIDE FUNDS OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 35 CITYWIDE FUNDS OVERVIEWFund Structure General Fund CapitalSpecial Revenue Fund Housing In-Lieu Street Improvement 2010 Library General ObligationUtility Users Tax Public Benefits Community Development 2002 Certificate of ParticipationCapital ProjectsGeneral Operating Special Districts Federal & State Revenues Business Improvement Stanford Development Traffic Mitigation & Parking in-Lieu Debt Service 1!.(!5 Projects +("ƫ+1./! (%"+.*%ƫ2!ċƫ .#! CITYWIDE FUNDS OVERVIEW 36 CITYWIDE FUNDS OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Fund Structure Wastewater Treatment Vehicle Replacement & MaintenanceRefuse Fiber Optics Retiree Health Benefits Information Technology General Liability Insurance Airport Storm30!.ƫ *#!)!*0 Workers’ CompensationGeneral BenefitsElectric Water Wastewater Collection Printing & Mailing ServicesGas Enterprise Internal Service CITYWIDE FUNDS OVERVIEW CITYWIDE FUNDS OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 37 CITYWIDE REVENUES Total Citywide Revenue by Category ($000s) FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % Charges for Services 28,699 32,298 31,440 32,065 625 2.0% Charges to Other Funds 12,706 11,361 11,477 12,590 1,113 9.7% Documentary Transfer Tax 9,229 6,923 8,369 8,016 (353)(4.2%) From Other Agencies 17,820 11,492 8,691 25,276 16,585 190.8% Net Sales 316,038 332,564 335,525 348,172 12,647 3.8% Other Revenue 42,968 69,846 60,864 145,972 85,108 139.8% Other Taxes and Fines 2,477 2,029 2,372 2,084 (288)(12.1%) Permits and Licenses 11,294 11,415 11,725 12,726 1,001 8.5% Property Taxes 47,242 51,776 53,217 57,562 4,345 8.2% Rental Income 16,507 17,059 17,186 16,852 (334)(1.9%) Return on Investments 9,150 14,768 10,057 9,684 (373)(3.7%) Sales Taxes 31,091 36,508 34,346 37,605 3,259 9.5% Transient Occupancy Tax 24,937 25,649 29,309 29,689 380 1.3% Utility Users Tax 15,414 16,402 17,581 17,553 (28)(0.2%) Total 585,572 640,090 632,159 755,846 123,867 19.6% CITYWIDE FUNDS OVERVIEW 38 CITYWIDE FUNDS OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET ‐ 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 3 Year Trend ‐Citywide Revenues By Category ($000s) FY 2019 Actuals FY 2020 Adopted FY 2021 Proposed CITYWIDE FUNDS OVERVIEW CITYWIDE FUNDS OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 39 CITYWIDE EXPENSESTotal Citywide Expense by Category FY 2018 Actuals* FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % Allocated Charges 43,024 42,770 54,911 55,125 214 (0.4%) Contract Services 36,473 44,806 48,993 48,686 (307)(0.6%) Debt Service 17,693 15,894 22,553 20,387 (2,166)(9.6%) Facilities & Equipment 437 613 904 519 (385)(42.6%) General Expense 32,491 17,225 19,408 17,799 (1,609)(8.3%) Rents & Leases 12,659 12,908 14,792 13,749 (1,043)(7.1%) Salary & Benefits 184,306 170,951 216,144 225,386 9,242 4.3% Supplies & Material 6,514 6,457 8,302 8,222 (80)(1.0%) Utility Purchase 154,157 152,748 169,713 164,135 (5,578)(3.3%) Capital Improvement Program 89,582 90,147 154,257 254,156 99,899 64.8% Net Transfers (1,264)(6,592)13,860 10,705 (3.155)(22.8%) Total 576,072 547,927 723,837 818,869 95,032 13.1% * FY 2018 Actuals as they appeared in the FY 2020 Adopted Budget inadvertently included an accounting transaction that should be excluded for budgetary purposes. The numbers in the table above correctly reflect the budgetary actuals for FY 2018. CITYWIDE FUNDS OVERVIEW 40 CITYWIDE FUNDS OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET ‐ 50,000 100,000 150,000 200,000 250,000 300,000 3 Year Trend ‐Citywide Expenses By Category ($000s) FY 2019 Actuals FY 2020 Adopted FY 2021 Proposed CITYWIDE FUNDS OVERVIEW CITYWIDE FUNDS OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 41 CITYWIDE PROJECTED OPERATING FUND BALANCECitywide Projected Operating Fund Balance ENDING FUND BALANCE 6/30/20 ESTIMATED REVENUES NET FUND TRANSFERS ESTIMATED EXPENDITURES ENDING FUND BALANCE 6/30/21 GENERAL FUND General Fund 44,398 220,150 (15,733)201,710 47,105 Total General Fund 44,398 220,150 (15,733)201,710 47,105 CAPITAL FUNDS Capital Improvement Fund 37,087 130,266 29,518 176,825 20,046 Cubberley Property Infrastructure Fund 3,578 0 1,864 2,190 3,252 Total Capital Funds 40,665 130,266 31,382 179,015 23,298 DEBT SERVICE FUNDS 2018 Golf Course 2002B Refinancing 248 0 530 530 248 2019 California Ave Parking Garage 18 0 2,380 2,380 18 Library Bonds 3,660 4,589 0 4,645 3,604 Total Debt Service Funds 3,926 4,589 2,910 7,555 3,870 ENTERPRISE FUNDS Electric Fund 55,247 175,547 (10,884)178,107 41,803 Fiber Optics Fund 32,022 5,563 (102)3,488 33,995 Gas Fund (2,920)40,995 (7,529)46,071 (15,525) Wastewater Collection Fund (178)22,433 (279)23,540 (1,564) Water Fund 15,956 48,406 421 53,223 11,560 Refuse Fund 2,910 33,727 (63)32,576 3,998 Stormwater Management Fund 475 7,909 (7)10,066 (1,689) Wastewater Treatment Fund (19,936)40,926 (14)47,094 (26,118) Airport Fund (10,641)21,813 (273)21,152 (10,253) Total Enterprise Funds 72,935 397,319 (18,730)415,317 36,207 INTERNAL SERVICE FUNDS General Benefits Fund 2,304 77,264 (2,384)74,243 2,941 Retiree Health Benefit Fund 1,135 14,467 2,384 16,849 1,137 Workers' Compensation Fund 959 6,178 0 6,961 176 Liability Insurance Fund 1,572 3,226 5 4,146 657 CITYWIDE FUNDS OVERVIEW 42 CITYWIDE FUNDS OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Printing and Mailing Services Fund 0 1,743 0 1,664 79 Technology Fund 18,293 15,285 1,355 21,353 13,580 Vehicle Replacement and Maintenance Fund 8,192 9,822 (819)14,016 3,179 Total Internal Service Funds 32,455 127,985 541 139,232 21,749 SPECIAL REVENUE FUNDS Community Development Fund 9,843 1,009 (3,355)0 7,497 Street Improvement Fund 330 3,063 (3,074)0 319 Federal and State Revenue Funds 5,713 645 0 851 5,507 Housing In-Lieu and BMR Fund 44,036 2,817 0 358 46,495 Special Districts Funds 4,834 5,646 355 5,389 5,446 Traffic Mitigation & Parking In-Lieu Fund 12,348 536 (400)0 12,484 Downtown Business Improvement District (32)140 0 148 (40) Stanford Development Agreement (SUMC) 19,408 370 (3,250)0 16,528 Public Art Funds 1,482 216 170 215 1,653 Total Special Revenue Funds 97,962 14,442 (9,554)6,961 95,889 TOTAL OPERATING FUND BALANCE 292,341 894,751 (9,184)949,790 228,118 CITYWIDE PROJECTED OPERATING FUND BALANCECitywide Projected Operating Fund Balance ENDING FUND BALANCE 6/30/20 ESTIMATED REVENUES NET FUND TRANSFERS ESTIMATED EXPENDITURES ENDING FUND BALANCE 6/30/21 CITYWIDE FUNDS OVERVIEW CITYWIDE FUNDS OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 43 CITYWIDE AVERAGE SALARYCitywide Average Salary Category Mgmt/ Prof Utilities Mgmt/ Prof Fire Chief Asscn. Fire Fighters Police Mgmt Asscn.PAPOA SEIU Total/ Average Full-Time Equivalent (FTE) 231.75 49.50 4.00 88.00 7.00 83.00 570.6 1,033.85 % of City 22.4%4.8%0.4%8.5%0.7%8.0%55.2%100.0% Salary ($) 1 149,306 178,871 199,790 142,092 227,779 147,255 100,293 123,618 In-Lieu Holiday ($)N/A N/A N/A 5,867 N/A 4,386 284 1,406 Incentive Pay ($) 2 N/A N/A N/A 943 N/A 1,226 396 554 Overtime (Average) ($)N/A N/A N/A 21,945 N/A 16,795 4,966 8,305 Management Leave (80 Hours) ($)5,743 6,880 7,684 N/A 8,761 N/A N/A 6,034 Pension Employer Portion ($) Misc 38.37%;Safety 65.33% 3 57,284 68,628 130,527 92,832 148,812 96,205 38,479 54,502 Medicare ($)2,165 2,594 2,897 2,060 3,303 2,135 1,454 1,792 Medical ($)18,821 20,021 24,114 19,506 22,111 19,394 18,173 18,668 Dental/Vision ($)1,946 2,179 2,274 2,129 2,166 1,971 1,898 1,951 Retiree Medical ($) 4 7,138 7,459 12,020 9,812 13,445 11,795 6,062 7,222 Workers' Comp ($)4,332 3,992 N/A 13,106 N/A 10,374 4,359 5,516 LIFE/LTD/SUI ($)665 668 668 668 668 668 669 668 Non-salary Benefits ($) 5 3,390 4,388 4,886 1,809 3,388 3,108 571 1,730 Average Salary & Benefits ($)250,791 295,679 384,860 312,767 430,432 315,312 177,605 231,968 City’s Proactive Contributions to Long-Term Pension Liabilities (Margin for using a 6.2% Discount Rate to calculate the Normal Cost) 5,533 6,672 13,346 9,492 15,216 9,649 3,741 5,362 Isolate Holiday Pay from Salary Salary, includes holidays ($)149,306 178,871 199,790 142,092 227,779 147,255 100,293 123,618 Holidays (assumes 11, 9 hour days) ($)7,106 8,514 9,509 6,763 10,841 7,009 4,774 5,884 Salary, excludes holidays ($)142,200 170,358 190,281 135,329 216,937 140,246 95,519 117,735 Notes: (1) Salary is calculated at actual pay rate (base pay and special pays, as applicable) as of February 2020 adjusted for step increases in accordance with applicable Memoranda of Understandings with the City's bargaining groups or pay for performance increases for Management and Professional employees. (2) Incentive pay includes: Fair Labor and Standards Act Charges and Night Shift Differential pay. (3) Safety employees will pick-up up to 4.0% of the employer share of 65.33% (PAPOA - 3.5%), while MGMT and SEIU Employees will pick up 1% of the 38.37%. (4) Annual amount incurred for active employees (normal cost only). (5) Non-salary Benefits include professional development for Mgmt, Utilities Mgmt, FCA and PMA; tuition reimbursement for FCA and PMA; and management excess benefit for Mgmt, Utilities Mgmt, FCA and PMA. Does not include administrative fees for General Benefits and Workers' Compensation Funds. CITYWIDE FUNDS OVERVIEW 44 CITYWIDE FUNDS OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 0 100 200 300 400 500 600 700 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 General Fund FTE Enterprise Fund FTE Other Funds FTE 10 Year Trend ‐Citywide FTE by Fund CITYWIDE FUNDS OVERVIEW CITYWIDE FUNDS OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 45 1,016.60 1,033.85 64,527 67,019 63,000 63,500 64,000 64,500 65,000 65,500 66,000 66,500 67,000 67,500 1,000 1,010 1,020 1,030 1,040 1,050 1,060 1,070 1,080 1,090 1,100 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 10 Year Trend ‐Citywide FTE Positions vs. Population Growth Total Citywide FTE Population • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 47 GENERAL FUND General Fund GENERAL FUND OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED BUDGET 49 GENERAL FUND OVERVIEW GENERAL FUND OVERVIEWOverview The Long Range Financial Forecast (LRFF) marks the beginning of the annual budget process and is produced to project the City’s General Fund financial position in the near-term and long- term horizon. The LRFF presents the fiscal health of the General Fund, based on City Council approved service levels, as well as alternative financial scenarios. The LRFF was accepted by the Finance Committee on December 3, 2019 and was accepted by the City Council on February 3, 2020. The forecast continues to incorporate direction from the City Council to budget pension costs more conservatively than CalPERS projections. The base forecast projected a $1.1 million General Fund surplus, followed by annual gaps where expenses outpace forecasted revenue growth ranging from a deficit of $2.4 million in FY 2023, that tapers to $1.1 million in FY 2025, before reaching significant surpluses in the final years of the forecast. The base forecast provided a preliminary baseline that assists in gauging effects of major policy changes against a "status quo" version of the future. It also assumed that the economy and world events continue to change and unfold in line with current expectations. It is shown below. FY 2021 - FY 2030 Long Range Financial Forecast Base Case The LRFF was developed at a time when national, state, and local economic indicators were mixed. Unemployment remained low, job growth slowed, and international trade had negative impacts on economic data. The nation continued to operate at "full employment" level with 3.6 percent unemployment as of October 2019. The Bay Area region boasted a 2.2 percent unem- ployment rate for the same month. Those levels have not occurred in 20 years, last appearing at the height of the Dot.Com Boom. Consumer consumption, government spending, and exports contributed to Growth Domestic Product (GDP) which grew by 1.9 percent in the third (calen- dar) quarter of 2019, which was expected to slow as real income and job growth further slowed in 2020. In addition to these indicators, economically sensitive revenue sources, such as tran- sient occupancy tax and documentary transfer tax, showed declines, while sales tax growth Adopted 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Total Revenue 232,101 241,527 248,358 255,808 263,083 271,318 280,028 289,307 299,625 310,488 321,728 4.1% 2.8% 3.0%2.8% 3.1% 3.2% 3.3% 3.6% 3.6% 3.6% Total Expenditures 230,809 240,447 250,168 258,194 265,396 272,465 277,743 283,366 291,169 298,276 304,382 4.2% 4.0% 3.2%2.8% 2.7% 1.9% 2.0% 2.8% 2.4% 2.0% Net One‐Time Surplus/(Gap)$1,292 $1,080 ($1,810)($2,386)($2,313)($1,147)$2,284 $5,941 $8,457 $12,212 $17,347 Cumulative Net Operating Margin (One‐Time)$39,664 Net Operating Margin $1,080 ($2,890)($576)$73 $1,166 $3,431 $3,657 $2,516 $3,755 $5,135 Cumulative Net Operating Margin $17,347 Assumes that the annual shortfalls are solved with ongoing solutions and annual surpluses are spent for ongoing expenditures. GENERAL FUND OVERVIEW 50 GENERAL FUND OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED BUDGET remained stable. The forecast continued the assumption that the strong foundations of the local economy – stable housing market, diverse and favorable mix of business segments lead by pro- fessional and technology industries, and academic and medical properties – would moderate the financial impact of a severe economic downturn. Tax revenues were modeled in correspon- dence with the health of the local economy and were projected to be $9.8 million, or 7.0 per- cent, above the FY 2020 Adopted Budget. While the LRFF is a valuable tool for extrapolating “status quo” financial scenarios and modeling the impacts of potential policy or economic changes, it is not meant to comprehensively fore- cast all impacts to the City’s Finances. The LRFF did not include several potential impacts to the FY 2021 budget and later in the forecast. Some of them were discussed in the LRFF itself for qualitative context. The list below details some of them; it is not intended to be a comprehen- sive list nor is the list in any priority order: Labor negotiations and changes to employee compensation in years where there is no agreement Operating costs associated with Capital Projects Grade separation Parks Master Plan funding strategy Other capital improvement projects Additional capital or operating investments for city owned assets operated by non-profit organizations Cubberley Community Center Concept Plan General Fund loans for special projects Legislative updates at the state and federal level Greater CalPERS contributions Tax revenue alignment with updated Comprehensive Plan Unknown changes in the local, regional, and national economy Based on the LRFF, staff continued to review and refine estimates to establish the FY 2021 Base Budget. FY 2021 Budget Development Guidelines were transmitted to Council together with the LRFF. The Guidelines were used as part of the City’s efforts to strategically plan and prioritize spending to ensure financial stability. World events have since redirected the City’s outlook, fis- cal and otherwise, towards the measures necessary to contain the spread of COVID-19. The eco- nomic impacts and disruptions to communities caused by COVID-19 are widespread and significant. Performance and volatility of markets contribute to an unprecedented challenge of minimizing the risk to our community while ensuring that crucial services continue uninter- rupted. As a result of the uncertainties and challenges we face, the Proposed General Fund bud- get represents, in large part, current service levels adjusted to FY 2021 levels with limited additional adjustments. The adjustments reflect the critical changes to service delivery that are both known and quantifiable. GENERAL FUND OVERVIEW GENERAL FUND OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED BUDGET 51 FISCAL YEAR 2021 GENERAL FUND BUDGET Subsequent to the development of the LRFF, revenue and expense estimates were reviewed to calculate the Base Budget. The details of these adjustments can be found throughout this doc- ument. Significant base changes, which reflect the change in revenues and/or expenses to maintain services at their current levels or incorporate policy direction from City Council issued after the LRFF, and their General Fund impact, are discussed below: Tax revenue Salary and Benefits Allocation charges Contract services Transfers The FY 2021 Proposed Budget assumes revenue totaling $241.5 million, a 4.1 percent, or $9.4 million increase compared to the FY 2020 Adopted Budget, and General Fund expenditures totaling $238.8 million, a 3.5 percent, or $8.0 million, increase over the FY 2020 Adopted Bud- get of $230.8 million. The Budget Stabilization Reserve (BSR) is estimated to be $47.1 million, or 19.7 percent of the FY 2021 Proposed Budget. As discussed in the Reserves section of the General Fund Overview, the Proposed Budget contributes $2.7 million to the BSR. With this funding level, the BSR would be $3.0 million, or 1.2 percent above the 18.5 percent target. The following sections discuss the General Fund’s major revenue and expense categories in the FY 2021 Proposed Budget com- pared to the FY 2020 Adopted Budget. REVENUES Revenues for the Proposed Budget were established based on a strong and stable overall U.S. economy albeit at slower growth rate. The Bay Area economy sustained better performance than the state and the nation with strong foreign trade, however challenges with expected slow- down in job growth and potential impacts to local housing markets posed uncertainty with pre- dicting whether robust growth could be expected throughout the forecast. Tax revenues constitute 60 percent of General Fund resources. Based on economic indicators at the time of development, cautiously optimistic modeling was used to develop the FY 2021 Proposed Bud- get. The 2021 Proposed Budget assumes an overall $9.4 million, 4.1 percent, increase compared to the FY 2020 Adopted Budget. Tax revenue represents $7.5 million of the overall increase. It is anticipated that the City will revise its revenue assumptions as a result of COVID-19’s economic impacts through conversations with the City Council as part of the public hearing process for the adoption of the FY 2021 Budget. SALES TAX The Proposed Budget assumes 9.5 percent growth, representing a $3.2 million increase from the FY 2020 Adopted Budget. Revenue from this source totals $37.6 million in the Proposed Budget. This estimate was developed assuming strong personal income and spending growth and a larger share of consumer spending online. As the nation transitions from a shopping cen- ter country to online sales, a surge in online retail sales will partially displace tax revenue from traditional industry segments to state and county pools. In addition, online sales data that can- GENERAL FUND OVERVIEW 52 GENERAL FUND OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED BUDGET not be tracked to a specific county jurisdiction are allocated to the Santa Clara County sales tax pool and then distributed to local jurisdictions based on local tax percentage. Palo Alto’s aver- age proportion of county pool sales tax allocation is approximately 7.3 percent. These trends will be monitored as the shift in consumer spending habits transition from brick and mortar to online and as economic impacts resulting from COVID-19 unfold. PROPERTY TAX Property tax revenue is the General Fund’s largest revenue source and represents 21.9 percent of total revenues. Property tax grew 20.2 percent from FY 2017 levels of $39.4 million to $47.3 million in FY 2019 due to higher assessed values. These higher assessed values reflect continued robust commercial and residential real estate markets during those periods. The FY 2021 Pro- posed Budget assumes $52.9 million in property tax revenue, a $4.3 million or 8.7 percent increase, compared to FY 2020 Adopted Budget level of $48.6 million. In addition, FY 2017, FY 2018, and FY 2019 included receipts of $0.7 million, $1.4 million, and $2.7 million, respectively, for excess Educational Revenue Augmentation Fund (ERAF) distributions from the County of Santa Clara. ERAF is the fund used to collect and disburse property taxes that are shifted to/from cities, the County, and special districts prior to their reallocation to K-14 school agencies. When the state shifts more local property tax than required to support schools these funds are returned and known as excess ERAF. Due to the uncertainty of whether local agencies will continue to receive excess ERAF funds, it is not considered a permanent local rev- enue source. The FY 2021 Proposed Budget assumes $2.8 million in excess ERAF revenue. TRANSIENT OCCUPANCY TAX (TOT) In FY 2021, TOT revenue is estimated to be $29.7 million, representing a $0.4 million, or 1.3 per- cent, increase compared to the FY 2020 Adopted Budget. This estimate assumes the opening of two new hotels and is offset by a decrease in average occupancy rates seen in the second quarter of Fiscal Year 2020. The decline seen in the second quarter of FY 2020 decreases the City’s revenue estimate for this category by 5.4 percent. This decrease corresponds with occu- pancy rate declines in San Francisco and the Silicon Valley markets. This segment is particularly impacted by COVID-19 and therefore includes considerable uncertainty. To address potential impacts to the City’s revenue estimates, staff anticipates discussing revisions to this budget as part of the public hearing process for the adoption of the budget. DOCUMENTARY TRANSFER TAX (DTT) The Proposed Budget assumes $8.0 million in DTT revenue, which is significantly lower than lev- els seen in recent years. As in past years, this revenue source is challenging to forecast since it is highly dependent on property sales volume and the mix of commercial and residential sales. The number of transactions through October 2019 (186) are running lower than those through October 2018 (217); however, the total value of these transactions has increased by 7.4 percent. Though the Palo Alto housing market remains strong, as discussed in the Property Taxes sec- tion, the residential median sales price in Palo Alto has declined. GENERAL FUND OVERVIEW GENERAL FUND OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED BUDGET 53 UTILITY USERS’ TAX (UUT) The UUT is levied on electric, gas, and water consumption, as well as on telephone usage. In total, FY 2020 revenues were budgeted at $17.6 million. The FY 2021 Proposed Budget assumes a consistent level of revenue. OTHER TAXES AND FINES The FY 2021 Proposed Budget assumes $1.9 million in other taxes and fines, which is generally consistent with the FY 2020 Adopted Budget. The primary component of this revenue category is parking citation revenue which was projected to be consistent with prior years. Given the impact of COVID-19 on activities such as parking citations, staff anticipates discussing any nec- essary adjustments to this budget category with the City Council as part of the public hearing process for the adoption of the budget. CHARGES FOR SERVICES This revenue category consists of charges to Stanford for fire services and paramedic services; fees related to the City’s golf course; arts and science classes, and plan check fees. The FY 2021 Proposed Budget assumes $30.5 million in revenue. This represents a $0.8 million, or 2.6 per- cent increase, compared to the FY 2020 Adopted Budget. The FY 2020 Adopted Budget levels for each category included reductions of revenue related to Animal Shelter services that were previously provided by the Police Department but are now provided by the City’s non-profit partner Pets-in-Need. Golf course revenues trends were also reviewed as part of the FY 2020 budget process. Based on activity and appropriately categorizing costs associated with the golf course, revenue estimates were reduced in FY 2020 and are at a similar level in FY 2021. Devel- opment Services has been modeled as cost neutral in FY 2021. Some of the revenues in this category offset operating expenses for certain services, such as Golf Course Operations. Staff anticipates discussing potential expense adjustments for service level changes resulting from COVID-19 as part of the public hearing process for the adoption of the FY 2021 Budget and wiill include commensurate revenue changes as appropriate. The City has completed negotiations with Stanford University in regard to the provision of fire services to Stanford including an agreement of both service level and cost. The budget assumes reimbursement levels consistent with this agreement, however the actual contract value may be change if updates to the Fire Department budget occur; City staff will communicate with Stan- ford as adjustments occur. Additional reimbursements from Stanford for Public Safety Dispatch Services are also budgeted, resulting in a net reimbursement of $7.7 million. PERMITS AND LICENSES Permits and licenses consist of payments to the City for issuance of Building Permits, Fire Per- mits, and miscellaneous health and safety-related licenses. Compared to the FY 2020 Adopted Budget, permit and licenses revenue increased $1.0 million, or 8.5 percent, to total $12.7 million in the FY 2021 Proposed Budget. This revenue source was modeled to assume cost neutral operations in Planning and Development Services. RETURN ON INVESTMENT The return on investment category reflects the interest earnings on the City’s investment port- folio. This category is a combination of past investments, new investments at current market GENERAL FUND OVERVIEW 54 GENERAL FUND OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED BUDGET rates, and available investable cash which fluctuates seasonally and annually. The average port- folio rate of return for FY 2019 was 2.3 percent, which is consistent with the rate of return at the end of the second quarter of FY 2020 of 2.3 percent. FY 2021 Return on investment revenue of $1.4 million remains consistent with the FY 2020 Adopted Budget. Given the market volatility seen as a result of COVID-19, adjustments to this category may be discussed through the public hearing process. RENTAL INCOME Rental Income of $16.0 million primarily reflects rent paid to the General Fund from the City’s Enterprise Funds and the Cubberley Community Center. There is a slight decrease in rental income from FY 2020 to FY 2021, which represents the phase-out of payments from the Refuse Fund to the General Fund associated with the Landfill. In FY 2020, the City conducted a Rent Study to analyze the appropriate rates for rental payments from Enterprise Funds. The FY 2021 Operating Budget includes these revised rates and changes are detailed in the respective Enter- prise Funds later in this document. CHARGES TO OTHER FUNDS The main source of revenues in this category is General Fund administrative cost allocation plan charges to the Enterprise and Internal Service Funds. Internal support departments such as Administrative Services, Human Resources, and Council Appointed Offices provide services to Enterprise and Internal Service Funds. The costs for these services are recovered through the administrative cost allocation plan charges. The FY 2021 estimate for Charges to Other Funds of $12.0 million reflects growth of 10.0 percent from the FY 2020 Adopted Budget of $10.9 million; this is primarily attributable to year over year increases in costs for salary and benefits and increased support for non-General Fund activities. OTHER REVENUE This revenue category is mainly comprised of Animal Services revenue from neighboring cities; the Palo Alto Unified School District’s (PAUSD) share of maintenance for athletic fields; Public, Education, and Government (PEG) revenue from Cable Franchise Fees; and other one-time rev- enue sources such as grants. Revenues in this category are anticipated to remain flat at $2.5 mil- lion in the FY 2021 Proposed Budget. OPERATING TRANSFERS-IN Overall, compared to the FY 2020 Adopted Budget, operating transfers-in increased by $0.4 million, from $21.0 million to $21.4 million. Operating Transfers-in materialize as expenses in other funds throughout the City and as a revenue in the General Fund. This budget category includes the equity transfer from the Electric and Gas funds that represents the return on the initial investment the City made when the Utilities Department was created more than 100 years ago. In accordance with a methodology approved by the City Council in June 2009, the equity transfer is calculated by applying a rate of return on the capital asset base of the Electric and Gas funds. This rate of return is based on PG&E’s rate of return on equity as approved by the California Public Utilities Commission (CPUC). The equity transfer from the Electric and Gas Funds is projected to be $20.6 million in FY 2021, an increase of $0.4 million from FY 2020. In addition, repayment of the loan to the Airport Fund began in FY 2020. The FY 2021 Proposed GENERAL FUND OVERVIEW GENERAL FUND OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED BUDGET 55 Budget continues the scheduled repayment of the loan and includes a $0.3 million transfer from the Airport Fund for that purpose. EXPENSES FY 2021 expenditures total $238.8 million in the Proposed Budget, representing an $8.0 million, or 3.5 percent, increase compared to the FY 2020 Adopted Budget. This increase is attributed to several adjustments that are discussed by budget category below, but is primarily driven by adjustments to salary and benefits, including increased CalPERS pensions costs, and increased transfers to the Capital Fund. As discussed earlier in this section and in the Transmittal Letter, the FY 2021 Proposed Budget represents current service levels adjusted to FY 2021 costs and limited additional adjustments that reflect only critical changes to service delivery that are known and quantifiable. SALARY AND BENEFITS Salary and benefit costs represent approximately 60 percent of the FY 2021 Proposed Budget. The salary and benefit budget in the General Fund totals $140.7 million, which is a 4.5 percent increase from the FY 2020 Adopted total of $134.5 million. This increase includes negotiated labor agreements completed in FY 2019 with public safety units and agreements with the mis- cellaneous units in the General Fund. In addition to labor terms outlined in employee agree- ments, CalPERS-determined retirement contribution levels, and offsetting attrition savings, the FY 2021 Proposed Budget also assumes $3.4 million in proactive funding contributions above CalPERS required costs. While this is a decrease of $0.4 million from the FY 2020 Adopted Budget’s proactive pension funding level, it is still a significant investment above and beyond CalPERS’ required funding and supports the City’s commitment to fiscal sustainability. The bud- get for the additional pension contributions is based on what the normal cost component would be if the contribution was calculated at a 6.2 percent discount rate instead of 7.0 percent, the current CalPERS discount rate. These funds are transferred to the City’s irrevocable pension trust fund, which is estimated to total $32.8 million at the end of FY 2021, of which $21.4 million is from the General Fund. Finally, the General Fund budget includes assumed vacancy savings of $2.0 million that are expected to materialize as positions are vacated and new employees are hired through the normal course of business. It should be noted that in the "Budget Summary" section of each document, a variance will be seen between FY 2019 Actuals and the FY 2020 Adopted Budget columns in the salary and benefits total expenses. This variance primarily reflects the difference between estimated vacancies and staff costs actually incurred. The variance also includes changes in labor terms from year to year, changes in CalPERS’ required contributions, and FY 2020’s proactive contri- butions to address the City’s long-term pension liability. Salaries: In FY 2021, salaries, including overtime, are projected to grow $3.7 million in the Gen- eral Fund, representing a 4.8 percent increase. Proposed actions to the base budget were lim- ited to adjustments that are full cost recovery, reallocating positions between departments, and minimal cost adjustments as a result of aligning the Proposed Budget with prior year trends. These Base Budget adjustments include: Supporting the transition of Project Safety Net to a non-profit GENERAL FUND OVERVIEW 56 GENERAL FUND OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED BUDGET Transferring the Animal Services administrative citation function from the Community Services Department to the Police Department Aligning the overtime budget with contractually obligated salary increases Pension Costs: CalPERS calculates an Actuarial Determined Contribution (ADC) for the City each year. The General Fund’s ADC costs are increasing by 8.8 percent, from $27.6 million to $30.1 million, on a year-over-year basis before contemplating the General Fund’s proactive con- tributions to prefund the City’s long-term pension liabilities. The pension costs are driven by pri- marily by CalPERS and the City Council’s direction to budget pension costs more conservatively than CalPERS. If the General Fund’s additional $3.4 million contribution towards the City’s irre- vocable trust is considered, the overall pension increase lessens to $2.0 million, or 6.4 percent, from $31.5 million to $33.5 million. CalPERS has been lowering its rate of return assumption (discount rate) since FY 2019 when it went from a 7.5 percent discount rate to 7.375 percent. In FY 2020, CalPERS used a 7.25 percent discount rate, and in FY 2021 it will use a 7.0 percent discount rate. From FY 2020 to FY 2021, the CalPERS pension ‘blended rate’ for Miscellaneous went from 35.6 percent to 38.4 percent and Safety went from 59.4 percent to 65.3 percent of salary. Including City Council’s direction to use a discount rate of 6.2 percent for calculating FY 2021 normal cost resulted in the percent- ages effectively going from CalPERS provided 38.4 percent for Miscellaneous and 65.3 percent for Safety to 41.8 percent and 72.0 percent, respectively. For example, for every $100,000 of sal- ary, an additional $3,700 to $6,700 was budgeted for this proactive funding. Retiree Health: The City’s Other Post-Employment Benefits (OPEB) costs, primarily Retiree Healthcare, are increasing from $9.1 million to $9.2 million, a 1.5 percent increase. The City is required to perform an actuarial review of its Other Post Employment Benefits (OPEB) every two years. The June 30, 2019 valuation is currently being developed and it is anticipated to be discussed in May as part of the public hearing process. Healthcare and Other Benefits: The budget includes negotiated increases for healthcare on a calendar year basis and moderate increases, consistent with past experience, for units who will not have a contract in place as of January 2021. Other benefits costs include special pays, long- term disability, Medicare, and management excess funding. These costs are generally consistent with FY 2020 levels. Workers’ Compensation: The City is self-insured for Workers’ Compensation. The Workers’ Compensation Fund operates as an internal service fund where the costs are centralized and recovered through allocated charges to departments. An outside consultant performs a valua- tion every year to inform the City’s financial planning. Workers’ Compensation costs in the Gen- eral Fund are consistent with the FY 2020 Adopted Budget, totaling $3.8 million in the FY 2021 Proposed Budget. NON-DEPARTMENTAL EXPENSES Non-departmental expenses include expenses that are not directly related to the operation of a single department, such as payments to the Palo Alto Unified School District (PAUSD) as part of the Cubberley Community Center lease, or debt service. The FY 2020 Adopted Budget included several one-time items that were removed from the FY 2021 Proposed Budget. These items are detailed in the Non-Departmental section of this docu- GENERAL FUND OVERVIEW GENERAL FUND OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED BUDGET 57 ment. The FY 2021 Proposed Budget includes one-time costs for the November 2020 City Council election. A transfer to offset the operating deficit in the Residential Preferential Parking Fund ($185,000) is also budgeted. As in prior years, ongoing funding is also included in the Non-Departmental section for property tax collection, which is administered by the County of Santa Clara. CONTINGENCY ACCOUNTS Contingency Accounts are budgeted appropriations that are used at the discretion of the City Council, City Manager, City Attorney, or Human Resources Director to fund unanticipated expenses. A $100,000 ongoing adjustment to reallocate the City Attorney’s Contingency Fund from the Non-Departmental Budget to the City Attorney’s Office is proposed in this budget. In FY 2020, an early reappropriation was included to shift the $100,000 of remaining funding in the Sustainability Contingency from FY 2019 to FY 2020. This has been removed from the FY 2021 budget, but it is anticipated that any funding remaining in the Sustainability Contingency may be included in the regular reappropriation process subsequent to the adoption of the bud- get. The other contingencies are maintained at levels previously approved by City Council OPERATING TRANSFERS-OUT Funds are transferred from the General Fund to various funds throughout the City, including the Capital Infrastructure Fund, the Cubberley Infrastructure Fund, the Debt Service Fund, and the Technology Fund on an annual basis. In FY 2021, a total of $37.1 million is included to be trans- ferred, with the majority of this ($32.6 million) being transferred to the Infrastructure Fund. As discussed above, a one-time operating transfer of $185,000 is included from the General Fund to the Residential Preferential Parking Fund to offset the operating deficit in that fund. The City will continue to evaluate the appropriate model and pricing for Residential Preferential Parking districts, led by the recently established Office of Transportation. The General Fund also trans- fers funds to the University Avenue parking fund to pay for employee parking permits; a total of $318,000 is included in FY 2021 for this purpose. If the proposed parking rates for the University Avenue parking district were to change, the General Fund’s transfer would need to be adjusted accordingly. The General Fund is also responsible for paying the electricity costs associated with streetlights and traffic signals. This is realized as a transfer to the Electric Fund of $2.1 mil- lion in FY 2021. RESERVES The City’s general reserve is referred to as the Budget Stabilization Reserve (BSR). By policy, the City maintains a reserve level of 15.0-20.0 percent of the General Fund operating budget, with a targeted goal of 18.5 percent. City Council approval is required prior to setting reserves lower than 15.0 percent. The City Manager is authorized to transfer any amount in excess of 18.5 percent to the Capital Projects Infrastructure Reserve at their discretion. At the time of this transmittal, the FY 2021 Proposed Budget is projected to have a $47.1 million BSR balance, which exceeds the 18.5 percent target by $2.9 million. Of the $2.9 million surplus, $2.7 million represents the difference between revenues and expenses in the FY 2021 Proposed Budget. This projected funding level is also predicated on a BSR of $44.4 million at the end of FY 2020 that does not include any impacts resulting from COVID-19. GENERAL FUND RESERVES 58 GENERAL FUND RESERVES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED BUDGET As discussed earlier, the economic impacts of COVID-19 are widespread and significant. The City will continue to revise its estimate for FY 2020 ending Budget Stabilization Reserve as the situation develops. The contribution of $2.7 million to the BSR presumed in this budget will be further discussed as part of the public hearing process for the adoption of the FY 2021 Budget. GENERAL FUND RESERVES General Fund Revenue Descriptions PROPERTY TAX Under current law, all taxable real and personal property is subject to a basic tax rate of one percent of assessed value collected by local jurisdictions and school districts for general service purposes. There are other taxes and levies on a typical property tax bill such as parcel, General Obligation bond, and special assessments. On June 6, 1978, California voters approved Proposition 13, a seminal change in property tax lev- ies. The proposition, which added Article XIII A to the state constitution, placed limits on increases in the valuation of real property. The major change was that the assessed value of real property could only be adjusted upward annually by the change in the California Consumer General Fund Reserves Fund Summary ($000) FY 2019 Actuals FY 2020 Adopted Changes FY 2020 Net Adjustments Projected FY 2020 Year-End FY 2021 Proposed Budget Projected FY 2021 Year-End Budget Stabilization Reserve (BSR) Activity: BSR 43,511 1,292 (405)44,398 2,707 47,105 Other Reserve Activity: Human Services Resource Allocation Process (HSRAP) Reserve 40 --40 -40 Encumbrance & Reappropriation 6,489 --6,489 -6,489 Inventory of Materials & Supplies 4,517 --4,517 -4,517 Notes Receivable, Prepaid Items, Interfund Advances, & Unrealized Gains and Losses 3,839 --3,839 -3,839 Total Reserves 58,396 1,292 (405)59,283 2,707 61,990 1. The BSR is projected to be 19.7 percent of the FY 2021 Proposed Expense Budget at the end of FY 2021. 2. City reserve policy indicates a 15-20 percent range, with an 18.5 percent target. 3. Minimum FY 2021 BSR $35.8 million (15 percent); Maximum FY 2021 BSR $47.8 million (20 percent). 4. Target FY 2021 BSR $44.2 million (18.5 percent) 5. Projected FY 2020 adjustments include BAOs through March 2020. 6.This assumes the remaining $40,000 in the Human Services Resource Allocation Process Reserve will not be spent in FY 2020 and will be recommended to be carried forward to FY 2021. GENERAL FUND RESERVES GENERAL FUND RESERVES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED BUDGET 59 Price Index (CCPI) up to a maximum of two percent per year. One exception to this rule, how- ever, is that when property changes ownership and/or is substantially altered or newly-con- structed, it would be reassessed at full market value in the first year and then subject to the CCPI or two percent cap thereafter. Another important exception to the formula for increasing assessed valuations and taxes is that during periods of declining property values (e.g., recessions), the County Assessor has the flexi- bility to decrease assessments whether through appeal by property owners or through the Assessor’s analysis of value declines. In effect, this reduces the property valuation and tax. As market conditions improve, however, and values return or increase, the Assessor can then increase assessed values and taxes. In following years, another amendment to the constitution was passed that allows local govern- ments and school districts to raise property taxes above one percent to finance general obliga- tion (GO) bond sales. This change has to be approved by two-thirds of those voting in a local GO bond election. For school districts, however, the voting threshold for approving GO bonds was subsequently lowered to fifty-five percent. Dating back to the early 1990s, the state has made numerous and complex adjustments to local jurisdiction property tax revenues to solve its budget shortfalls. In one such action in 1992, which is known as the "Educational Revenue Augmentation Funds (ERAF), the state shifted mil- lions of dollars in local government funds to school districts. As a consequence of this action the City of Palo Alto has foregone a cumulative $119 million through Fiscal Year 2018 limiting its ability to meet its infrastructure needs. The County of Santa Clara administers and collects property taxes and remits the appropriate amounts (based on law and a complex formula) to local jurisdictions. Contrary to commonly held views, the City receives a relatively small portion of the basic one percent property tax. The City receives around 9.4 percent or 9.4 cents for every property tax dollar a property owner pays to the county. The majority of the tax dollar paid, or 56.6 percent goes to the school dis- trict, community college and county school service, 15.9 percent goes to the county, and the remaining goes to special districts and to the State. SALES AND USE TAX The Sales Tax is a tax imposed on retailers for the privilege of selling tangible personal property such as clothing, automobiles, and computers. Currently, and according to State law, sales tax is not applied to personal services such as legal, dental, or consultant services. The Use Tax is a form of sales tax and is applied, for example, on the sale of tangible goods from an out-of-state vendor. The City receives a specific portion or percentage of the sales tax paid by a consumer. Of the current 9 percent tax rate paid for goods sold within Palo Alto, the City receives 1.0 percent of the purchase price or 11.1 percent for each tax dollar paid. The remaining sales tax dollars are dis- tributed as follows: State of California (5.5 percent), Public Safety Fund (0.5 percent), Transpor- tation Development Act (TDA) (0.25 percent), Santa Clara County – Measure A (0.125 percent), Santa Clara Valley Transportation Districts (1.625 percent). Sales tax rates may differ across jurisdictions since local jurisdictions have some flexibility on a countywide level (e.g. county or city) to increase the local portion of the sales tax with voter GENERAL FUND RESERVES 60 GENERAL FUND RESERVES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED BUDGET approval. The local Sales and Use Tax is collected and administered by the State Board of Equal- ization. TRANSIENT OCCUPANCY TAX The Transient Occupancy Tax rate in Palo Alto is 15.5 percent and is applied to the daily rate charged by a hotel, motel, and lodging establishment. The rate only applies to stays of 30 days or less. In November 2018, Palo Alto voters approved increasing the tax rate from 14 percent to 15.5 percent. The rate increase was effective as of January 1, 2019. DOCUMENTARY TRANSFER TAX This tax is applied to the sale of real property within Palo Alto at the time property ownership is transferred. The current rate is $3.30 per thousand dollars of sale value. A house that sells for $1.5 million, for example, would result in the City collecting $4,950. This tax is collected by Santa Clara County and then remitted to the City. The county also levies a transfer tax of $1.10 per thousand dollars of sales value that is in addition to Palo Alto’s tax. UTILITY USERS TAX The Utility Users Tax is charged to all users of electricity, gas, water, and telephone services. The current tax rate is for electricity, gas, and water is 5.0 percent and for telephone is 4.75 percent. In November 2014, Palo Alto voters approved decreasing the telephone utility user tax rate from 5 percent to 4.75 percent. This tax decrease became effective on April 1, 2015 due to Public Util- ity Commission advance noticing requirements. OTHER TAXES AND FINES The largest source of revenue in this category is derived from parking violations revenue. Other revenue items in this category include traffic violations, administrative citations, and library fines and fees. CHARGES FOR SERVICES Departmental charges are comprised of fees charged for services which are primarily provided by the following departments: Community Services, Development Services, Planning and Com- munity Environment, Police, and Public Works. Charges for Services from departments are approved annually by the City Council through the adoption of the Municipal Fee Schedule. The City has two separate agreements with Stanford University to provide Fire Response ser- vices and Dispatch services. As part of these agreements to reimburse the City for Stanford’s proportional share of these services, Stanford is charged 16 percent of the Police Department’s Communication and Dispatch Division. The Stanford contract for Fire Services is currently under negotiation. PERMITS AND LICENSES The City requires payment for the issuance of Building Permits, Fire Permits, and miscellaneous health and safety-related licenses and permits as approved annually by the City Council through the adoption of the Municipal Fee Schedule. GENERAL FUND RESERVES GENERAL FUND RESERVES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED BUDGET 61 RETURN ON INVESTMENT The City invests idle funds in order to earn interest. The total income varies with the market rates of interest and the funds available to invest. The basic principles underlying Palo Alto’s investment philosophy is to ensure the safety of public funds; provide that sufficient money is always available to meet current expenditures; and achieve a reasonable rate of return on its investments. RENTAL INCOME The General Fund charges rent to internal and external entities. The majority of rental income is derived from the Enterprise Funds and the Cubberley Community Center. REVENUE FROM OTHER AGENCIES This revenue category includes revenue received from a variety of other local government agen- cies, the state, and the federal government usually due to grants or contracts for services. CHARGES TO OTHER FUNDS The General Fund recuperates the cost for services provided by internal services departments such as Administrative Services, Council Appointees, and Human Resources to Enterprise, Inter- nal, and Special Revenue funds through allocated charges. OTHER REVENUE Major revenue sources in this category are Animal Services charges to Los Altos and Los Altos Hills, reimbursements from PAUSD for its share of Cubberley and athletic field maintenance, donations from non-profits for City libraries, and miscellaneous revenues. OPERATING TRANSFERS-IN Operating Transfers include the equity transfer from the Electric and Gas Funds. In accordance with a methodology approved by Council in June 2009, the equity transfer is calculated by applying a rate of return to the capital asset base of the Electric and Gas Funds. This rate of return is based on PG&E’s rate of return on equity as approved by the California Public Utilities Commission (CPUC). GENERAL FUND REVENUES 62 GENERAL FUND REVENUES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED BUDGET GENERAL FUND REVENUESTotal General Fund Revenue by Category Fund Summary ($000) FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % Charges for Services 26,344 26,669 29,719 30,504 785 2.6% Charges to Other Funds 11,476 10,684 10,908 11,992 1,084 9.9% Documentary Transfer Tax 9,229 6,923 8,369 8,016 (353)(4.2)% From Other Agencies 1,461 951 980 551 (429)(43.7)% Other Revenue 2,513 5,084 2,362 2,494 132 5.5% Other Taxes and Fines 2,141 1,888 2,032 1,927 (105)(5.2)% Permits and Licenses 9,035 9,088 9,076 9,546 470 5.2% Property Taxes 42,839 47,327 48,634 52,863 4,229 8.7% Rental Income 15,969 16,411 16,399 16,042 (357)(2.2)% Return on Investments 1,437 2,018 1,388 1,368 (20)(1.5)% Sales Taxes 31,091 36,508 34,346 37,605 3,259 9.5% Transient Occupancy Tax 24,937 25,649 29,309 29,689 380 1.3% Utility Users Tax 15,414 16,402 17,581 17,553 (28)(0.2)% Subtotal 193,886 205,602 211,103 220,150 9,047 4.3% Operating Transfers-In 20,385 20,154 20,999 21,359 360 1.7% Total 214,271 225,756 232,102 241,509 9,407 4.1% GENERAL FUND REVENUES GENERAL FUND REVENUES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED BUDGET 63 ‐ 10,000 20,000 30,000 40,000 50,000 60,000 3 Year Trend ‐General Fund Revenues By Category ($000s) FY 2019 Actuals FY 2020 Adopted FY 2021 Proposed Sales Taxes 15.6% Property Taxes 21.9% Transient Occupancy Tax 12.3%Documentary Transfer Tax 3.3% Utility Users Tax 7.3% Other Taxes and Fines 0.8% Charges for Services 12.6% 0.6% Permits and Licenses 4.0% Return on Investments Rental Income 6.6% From Other Agencies 0.2% 1.0% Charges to Other Funds 5.0% Other Revenue Operating Transfers‐In 8.8% $241.5 Million/FY 2021 Budget GENERAL FUND EXPENDITURES 64 GENERAL FUND EXPENDITURES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED BUDGET GENERAL FUND EXPENDITURES Total General Fund Expenditures by Category Fund Summary FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % 18,842 20,382 20,889 21,316 427 2.0% 21,144 28,966 23,429 23,744 315 1.3% 432 431 ————% 399 576 771 468 (303)(39.3)% 10,062 9,258 12,090 10,284 (1,806)(14.9)% 1,560 1,640 1,734 1,877 143 8.2% 120,798 121,953 134,546 140,649 6,103 4.5% 3,350 3,181 3,366 3,372 6 0.2% 176,588 186,387 196,825 201,710 4,885 2.5% 4,734 9,574 5,023 4,519 (504)(10.0)% 24,801 27,514 28,962 32,572 3,610 12.5% 29,535 37,088 33,985 37,091 3,106 9.1% ($000) Allocated Charges Contract Services Debt Service Facilities & Equipment General Expense Rents & Leases Salary & Benefits Supplies & Material Subtotal Operating Transfers-Out Transfer to Infrastructure Subtotal Total 206,122 223,475 230,810 238,801 7,991 3.5% GENERAL FUND EXPENDITURES GENERAL FUND EXPENDITURES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED BUDGET 65 Total General Fund Expenditures by Department Fund Summary ($000) FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % Administrative Services 7,680 7,588 8,519 9,375 856 10.0% City Attorney 3,307 3,651 3,387 3,825 438 12.9% City Auditor 1,233 1,183 1,235 1,057 (178)(14.4)% City Clerk 1,171 1,096 1,346 1,375 29 2.1% City Council 476 369 498 474 (24)(4.9)% City Manager 3,713 3,854 4,546 3,634 (912)(20.1)% Community Services 27,136 28,977 30,913 32,390 1,477 4.8% Fire 33,639 33,642 34,864 36,210 1,346 3.9% Human Resources 3,480 3,586 3,945 4,088 143 3.6% Library 9,121 9,288 10,314 10,448 134 1.3% Non-Departmental 6,402 12,177 9,024 7,211 (1,813)(20.1)% Office of Emergency Services 968 1,238 1,728 1,586 (142)(8.2)% Office of Transportation N/A N/A 2,312 2,436 123 5.3% Planning and Development Services 19,882 20,442 20,356 20,800 444 2.2% Police 39,983 42,177 44,666 47,109 2,443 5.4% Public Works 18,396 17,119 19,172 19,692 520 2.7% Subtotal 176,587 186,387 196,825 201,710 4,885 2.5% Transfer to Infrastructure 24,801 27,514 28,962 32,572 3,610 12.5% Operating Transfers-Out 4,734 9,574 5,023 4,519 (504)(10.0)% Subtotal 29,535 37,088 33,985 37,091 3,106 9.1% Total 206,122 223,476 230,810 238,801 7,991 3.5% GENERAL FUND EXPENDITURES 66 GENERAL FUND EXPENDITURES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED BUDGET ‐ 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 3 Year Trend ‐General Fund Expenses By Category ($000s) FY 2019 Actuals FY 2020 Adopted FY 2021 Proposed • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 67 ENTERPRISE FUNDS Enterprise Funds ENTERPRISE FUNDS OVERVIEW ENTERPRISE FUNDS OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 69 ENTERPRISE FUNDS OVERVIEWOverview The City of Palo Alto’s Utility and Public Works operations are comprised of the Airport, Elec- tric, Fiber Optics, Gas, Refuse, Stormwater Management, Wastewater Collection, Wastewater Treatment, and Water Funds. A financial summary of the funds follows this overview along with discussion and pertinent information in each fund section. REVENUES The total budgeted revenue of the Enterprise Funds for FY 2021 is $400.5 million, which rep- resents a $12.5 million, or 3.2 percent, increase from the FY 2020 Adopted Budget of $388.0 million. This recognizes increased revenues associated with Capital Projects in the Airport Fund and Electric Fund in FY 2021 partially offset by the decrease in revenue from partner agencies for Capital Projects in the WastewaterTreatment Fund. Wastewater Treatment revenues are expected to decrease by $17.6 million due to several major projects being postponed to FY 2022. Airport Fund revenues are expected to increase by approximately $19.3 million from FY 2020 as a result of Federal Aviation Administration (FAA) funding for the Apron project. Reve- nues in the Electric Fund are also expected to increase by approximately $9.6 million due to a proposed rate increase and higher market prices for local resource adequacy capacity sales. Utility services with rate increases for FY 2021 include Electric, Fiber Optics, Gas, Stormwater Management, and Wastewater. Water and Refuse rates will remain the same for FY 2021. Details on these changes are discussed below. EXPENDITURES The total budgeted expenditure of the Enterprise Funds for FY 2021 is $437.2 million. FY 2021 proposed expenses are $7.0 million, or 1.6 percent, higher than the FY 2020 Adopted level of $430.2 million. The primary driver for this year over year change is the rising costs for commod- ities, capital improvement projects, and maintaining or updating the infrastructure. UTILITY RATE CHANGES The FY 2021 Proposed Budget includes utility rate adjustments for Electric, Fiber Optics, Gas, Stormwater Management, and Wastewater charges based on preliminary rates that are in the process of being approved by the Utilities Advisory Commission (UAC) and the Finance Com- mittee. In general, the size and timing of rate adjustments take into account current and future revenue requirements, capital projects and reserve levels. They may also smooth the impacts on cus- tomer bills by spreading rate adjustments during consecutive or alternate years. Electric Fund - Scheduled rate increase is 3.0 percent overall to fund substantial capital investment and replacement in the aging electric distribution system, rising transmission ENTERPRISE FUNDS OVERVIEW 70 ENTERPRISE FUNDS OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET costs to accommodate new renewable projects coming online, increasing construction and contract expenses, and reduction in customer usage. Gas Fund - Scheduled rate increase is 5.0 percent due to increasing construction costs for gas main replacements and the Crossbore Gas Safety Program. Capital improvement program costs have the largest increase due to the City resuming a pattern of regular main replacement. Water Fund - No rate adjustment is scheduled for FY 2021 due to no change in supply costs and adequate reserves for capital improvement program. Wastewater Collection Fund - Scheduled rate increase is 6.0 percent due to significant increases in treatment costs due to rehabilitation of the aging Regional Water Quality Control Plant and increasing construction costs for sewer infrastructure replacement. Fiber Optics Fund - Scheduled rate increase is 2.5 percent, based on Consumer Price Index (CPI) for All Urban Consumers in the San Francisco Bay Area, for customers on the EDF-1 rate. Stormwater Management Fund - Scheduled rate increase of 2.5 percent per month based on CPI for All Urban Consumers in the San Francisco Bay Area. Refuse Fund - No rate adjustment is scheduled for FY 2021. RENT Enterprise Funds pay market-based rental fees for the sites needed to conduct their business operations. Rent is adjusted on an annual basis consistent with CPI and recently the City con- ducted a study to assess the appropriate rent expense for City-owned sites. As a result of that study, FY 2021 rents were adjusted throughout the enterprise funds. Additionally, the Refuse Fund will complete its payments associated with the landfill. As a result of these actions, the net change to rent year-over-year in the Enterprise Funds is a decrease of $1.2 million, or 9.0 per- cent, from $13.1 million to $11.9 million. EQUITY TRANSFERS In FY 2009, the City Council adopted a change to the methodology, beginning in FY 2010, used to calculate the equity transfer from Utilities Funds to the General Fund. Under this methodol- ogy, the equity transfers are based on the asset base in the Electric and Gas Funds, along with the rate of return for each utility, which is based on Pacific Gas and Electric’s (PG&E) rate of return on equity as approved by the California Public Utilities Commission (CPUC). For FY 2021, the equity transfers from the Electric and Gas Funds are projected to increase by approximately $358,000, or 1.8 percent, from $20.2 million to $20.6 million. RESERVES The financial revenue and expense forecasts are estimates at a single point in time. Some Utili- ties reserves serve as balancing accounts, which mitigate the risk of commodity price swings and insure against default by the City’s wholesale suppliers. Other reserves are used to provide cash for replacement parts during an emergency infrastructure failure or serve as temporary parking for planned expenditures. Reserve levels that are above guidelines are returned to cus- ENTERPRISE FUNDS OVERVIEW ENTERPRISE FUNDS OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 71 tomers in the form of lower future rates or used to pay for expenses, which also result in lower future rates. Based on the actions included in this budget, the total Enterprise Fund Reserve Balances are estimated to decrease by $37.7 million from FY 2020 to FY 2021. UTILITIES ENTERPRISE FUNDS The City of Palo Alto Utilities (CPAU) had to rely on its reserves more heavily over the past few years to offset rate increases. In order for CPAU to cover its operating costs while maintaining and continuing to provide safe and reliable utility services to customers, rate increases are pro- jected beyond FY 2021. Rate increases will ensure CPAU has the ability to replenish depleted reserves and provide sufficient funding for continued increasing expenses in commodity costs and repair and replacement of the City’s aging utility infrastructure through various capital proj- ects. Electric FY 2021 electric rates are scheduled to increase by 3.0 percent overall to recover costs for increasing transmission costs, new renewable projects coming online, and continued capital investment in the electric distribution system. Electricity purchase costs have increased sub- stantially since FY 2013 as new renewable projects have come online to fulfill the City’s environ- mental goals and as transmission costs have increased due to improvements being made to the California grid. Projected capital expenses include relocation of overhead lines for Caltrain, rebuilds of existing underground districts, substation improvements, 4kV to 12kV voltage con- version projects, foothills rebuild for fire mitigation, as well as the continuation of the Advanced Metering Infrastructure (AMI) and smart grid implementation. Once these larger, one-time proj- ect cost increases are completed, annual Capital Improvement Program (CIP) projects are antic- ipated to decline back to levels seen in recent years. The forecast also assumes that smart grid costs are funded from the Electric Special Projects Reserves. Gas FY 2021 gas rates are scheduled to increase by 5.0 percent due to increasing capital and opera- tion costs. In the short term, some increases in operations costs are related to the Crossbore Gas Safety Program, but CIP costs have increased substantially as the City resumes a pattern of regular main replacement. While CPAU has historically planned a new gas main replacement project every year, bids were received in amounts that exceeded originally anticipated expenses, resulting in the need to resize and redesign some previously planned projects. Higher bid amounts can be attributed to the national and regional focus on gas infrastructure improve- ments, which drives market demand and increases construction costs. Future CIP project costs have been revised upwards from prior forecasts to reflect higher bids on gas CIP projects. Water FY 2021 water rates remain unchanged. The San Francisco Public Utilities Commission (SFPUC) is projecting no increases in water supply rates until FY 2023. Capital projects were deferred in FY 2019 and FY 2020 leading to lower capital costs than budgeted. Many of these deferred capital projects are anticipated to be completed in FY 2021 and reserve CIP funds are estab- lished to complete these projects while holding rates steady in FY 2021. ENTERPRISE FUNDS OVERVIEW 72 ENTERPRISE FUNDS OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Wastewater Collection FY 2021 wastewater collection rates are scheduled to increase by 6.0 percent. Capital and oper- ating costs are anticipated to increase for the wastewater collection system. In addition, CPAU anticipates treatment costs to rise over the forecast period due to increasing operating costs and capital replacement needs at the Regional Water Quality Control Plan. Fiber Optics FY 2021 Fiber optics rates are scheduled to increase by 2.5 percent for customers on the EDF-1 rate schedule. CPAU provides commercial dark fiber optic services within the boundaries of the City. In September 2006, the City Council approved the Dark Fiber Licensing Agreement allow- ing the commercial fiber optic fees charged under the EDF-1 and EDF-2 rate schedules to be adjusted annually in accordance with CPI. EDF-1 was a promotional rate and was closed to new dark fiber licenses in 2006. Customer expenses for engineering, construction and connection to the fiber optic backbone are charged under the EDF-2 rates. New fiber customers are enrolled under the Dark Fiber Licensing Services Rate Schedule EDF-3. As CPI increases are imple- mented for the EDF-1 rate, some customers may voluntarily choose to move from the EDF-1 rate to the EDF-3 rate for cost saving purposes PUBLIC WORKS ENTERPRISE FUNDS Refuse FY 2021 refuse rates remain unchanged. FY 2022 rates are projected to increase at a rate based on CPI, which corresponds with the end date for two Refuse Fund related agreements for waste processing and disposal. The City Council approved 2018 Zero Waste Plan includes initiatives that will help the City continue making progress on its Zero Waste goals to divert 95.0 percent or more waste from landfills by 2030. Stormwater Management The FY 2021 stormwater management fee is scheduled to increase by 2.5 percent. The Storm- water Management fee was approved by property owners through a ballot measure in April 2017. The projects and infrastructure component of this fee has a sunset date of June 1, 2032 unless extended through a subsequent ballot measure. The Stormwater Management Fund maintains activities that ensure adequate local drainage of the City's storm drainage system. This fund also provides litter reduction, urban pollution prevention programs, and flooding emergency response services with the goals of reducing stormwater runoff and maintaining stormwater quality protection for discharge to creeks and the San Francisco Bay. ENTERPRISE FUNDS OVERVIEW ENTERPRISE FUNDS OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 73 Wastewater Treatment The City's Regional Water Quality Control Plant serves six communities including Palo Alto, East Palo Alto, Mountain View, Stanford, Los Altos, and Los Altos Hills. The Wastewater Treatment Fund works with the City and Partner Cities' regional service area to protect the environment and the public's health while ensuring compliance with regulations protecting the San Francisco Bay. FY 2021 revenues in the Wastewater Treatment Fund are expected to decrease by approxi- mately $17.6 million or 30.1 percent compared to FY 2020. The majority of the decrease resulted from funding sources programmed for multiple capital improvement projects being postponed to FY 2022. Airport The City assumed airport operations from Santa Clara County in August 2014 for the Palo Alto Airport, which ranks among the busiest general aviation airports in the country. Under previous terms, the County exercised the right to sublease to Fixed Base Operators (FBOs) with agree- ments that expired in April 2017 and the City worked on signing new lease agreements. As a result of new lease agreements signed, Airport Fund revenues from rentals are projected to increase by approximately $80,563 in FY 2021. The Airport's fees and charges are scheduled to increase by 2.5 percent. Expenses are also projected to increase due to major construction proj- ects that incur costs which are 90.0 percent offset by grants from the Federal Aviation Admin- istration. To ensure sufficient funding for operating costs and continued services with minimal service delivery impact, the Airport Fund is seeking a $2.0 million loan from the California Department of Transportation to offset the City’s 10 percent matching portion of the cost to complete Phase III of the Apron project. In addition to the state loan, the Airport fund has received loans from the General Fund, totaling $3.1 million in principle since the City took over operations. The Airport Fund began repayment to the General Fund in FY 2020 in the amount of $272,000 annually. ENTERPRISE FUNDS OVERVIEW 74 ENTERPRISE FUNDS OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Enterprise Funds Summary Fund Summary ($000) Electric Fund Gas Fund Water Fund Refuse Fund Wastewater Treatment Fund Wastewater Collection Fund Stormwater Management Fund Airport Fund Fiber Optics Fund Total Revenues Charges for Services 220 20 10 34 —10 118 ——412 Charges to Other Funds 145 105 91 161 62 33 ———597 From Other Agencies ——577 ————19,289 —19,866 Net Sales 164,200 39,335 46,026 30,732 30,852 21,843 7,635 627 4,716 345,966 Operating Transfers-In 2,645 —557 ——————3,202 Other Revenue 8,918 913 713 2,311 9,692 302 —1,094 200 24,143 Other Taxes and Fines ————4 —3 ——7 Rental Income ———————801 —801 Return on Investments 2,064 622 989 489 316 244 153 3 647 5,527 Total 178,192 40,995 48,963 33,727 40,926 22,432 7,909 21,814 5,563 400,521 Expenses Allocated Charges 9,655 4,969 5,030 1,767 6,217 2,981 1,434 620 757 33,430 Contract Services 6,677 2,441 800 6,497 3,819 249 916 140 455 21,994 Debt Service 8,443 803 3,223 197 1,469 129 949 ——15,213 Equity Transfer 13,479 7,114 ———————20,593 Facilities & Equipment 27 2 1 3 7 3 8 ——51 General Expense 3,442 778 670 112 432 122 147 36 12 5,751 Operating Transfers-Out 50 415 136 26 14 279 7 273 102 1,302 Rents & Leases 6,389 610 3,396 1,013 22 352 25 12 54 11,873 Salary & Benefits 25,938 10,654 9,922 3,046 14,203 5,663 2,793 1,073 1,557 74,849 Supplies & Material 924 495 619 143 1,970 381 94 56 9 4,691 Transfer to Infrastructure ———37 —————37 Utility Purchase 97,084 14,625 21,371 19,799 —11,256 ———164,35 Capital Improvement Program 19,528 10,693 8,191 —18,955 2,404 3,700 19,215 644 83,330 Total 191,636 53,599 53,359 32,640 47,108 23,819 10,073 21,425 3,590 437,249 ENTERPRISE FUNDS OVERVIEW ENTERPRISE FUNDS OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 75 Electric Fund $178.2/44.5% Gas Fund $41.0/10.2% Water Fund $49.0/12.2% Refuse Fund $33.7/8.4% WW Treatment Fund $40.9/10.2%WW Collection Fund $22.4/5.6% Stormwater Management Fund $7.9/2% Airport Fund $21.8/5.4% Fiber Optics Fund $5.6/1.4% FY 2021 REVENUES / $400.5 MILLION $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 Electric Fund Gas Fund Water Fund Refuse Fund WW Treatment Fund WW Collection Fund Stormwater Management Fund Airport Fund Fiber Optics Fund 3 YEAR TREND ‐ENTERPRISE FUNDS REVENUES BY FUND ($THOUSANDS) FY 2019 Actuals FY 2020 Adopted FY 2021 Proposed ENTERPRISE FUNDS OVERVIEW 76 ENTERPRISE FUNDS OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET $0 $20,000 $40,000 $60,000 $80,000 100,000 120,000 140,000 160,000 180,000 Electric Fund Gas Fund Water Fund Refuse Fund WW Treatment Fund WW Collection Fund Stormwater Management Fund Airport Fund Fiber Optics Fund 3 YEAR TREND ‐ENTERPRISE FUNDS EXPENSES BY FUND ($THOUSANDS) FY 2019 Actuals FY 2020 Adopted FY 2021 Proposed Electric Fund $191.6/43.8%Gas Fund $53.6/12.3% Water Fund $53.4/12.2% Refuse Fund $32.6/7.5% WW Treatment Fund $47.1/10.8%WW Collection Fund $23.8/5.4% Stormwater Management Fund $10.1/2.3% Airport Fund $21.4/4.9% Fiber Optics Fund $3.6/0.8% FY 2021 EXPENSES /$437.3 MILLION ENTERPRISE FUNDS OVERVIEW ENTERPRISE FUNDS OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 77 Enterprise Fund Reserves Reserves ($000) FY 2020 Projected Ending Balance FY 2021 Changes FY 2021 Projected Ending Balance FY 2021 Reserve Guideline Range Electric Fund Rate Stabilization 4,213 0 4,213 Operations 41,031 (13,444)27587 23,669-47,339 Hydro Stabilization 11,400 0 11,400 Electric Special Projects 41,665 0 41,665 Public Benefit 810 0 810 Underground Loan 727 0 727 CIP Reserves 880 0 880 GASB 68 Pension Reserve (31,323)0 (31,323) GASB 75 OPEB Reserve (14,156) 0 (14,156) Subtotal 55,247 (13,444)41,803 Gas Fund Rate Stabilization 0 0 0 Operations 8,814 (4,285)4,529 5,279-10,558 CIP Reserves 8,320 (8,320)0 GASB 68 Pension Reserve (13,824)0 (13,824) GASB 75 OPEB Reserve (6,230)0 (6,230) Subtotal (2,920)(12,605)(15,525) Wastewater Collection Fund Rate Stabilization 0 0 0 Operations 9,655 (1,386)8,269 3,102-7,755 CIP Reserves 0 0 0 GASB 68 Pension Reserve (7,449) 0 (7,449) GASB 75 OPEB Reserve (2,384) 0 (2,384) Subtotal (178)(1,386)(1,564) ENTERPRISE FUNDS OVERVIEW 78 ENTERPRISE FUNDS OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Water Fund Rate Stabilization 14,931 (1,081)13,850 Operations 12,721 (3,315)9,406 6,670-13,340 CIP Reserves 5,726 0 5,726 GASB 68 Pension Reserve (13,076)0 (13,076) GASB 75 OPEB Reserve (4,346)0 (4,346) Subtotal 15,956 (4,396)11,560 Refuse Fund Rate Stabilization 9,909 1,088 10,997 5,323-10,645 Landfill Corrective Action Reserve 758 0 758 CIP Reserves 268 0 268 GASB 68 Pension Reserve (5,374)0 (5,374) GASB 75 OPEB Reserve (2,651)0 (2,651) Subtotal 2,910 1,088 3,998 Stormwater Management Fund Rate Stabilization 5,133 (2,164)2,969 CIP Reserves 0 0 0 GASB 68 Pension Reserve (3,501)0 (3,501) GASB 75 OPEB Reserve (1,157)0 (1,157) Subtotal 475 (2,164)(1,689) Wastewater Treatment Fund Rate Stabilization 4,574 (6,182)(1,608)4,325-8,650 Emergency Plant Replacement 1,980 0 1,980 Notes and loans 559 0 559 CIP Reserves 0 0 0 GASB 68 Pension Reserve (19,716)0 (19,716) GASB 75 OPEB Reserve (7,333)0 (7,333) Subtotal (19,936)(6,182)(26,118) Enterprise Fund Reserves Reserves ($000) FY 2020 Projected Ending Balance FY 2021 Changes FY 2021 Projected Ending Balance FY 2021 Reserve Guideline Range ENTERPRISE FUNDS OVERVIEW ENTERPRISE FUNDS OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 79 Fiber Optics Fund Rate Stabilization 33,024 1,973 34,997 450-900 Emergency Plant Replacement 1,000 0 1,000 CIP Reserves 0 0 0 GASB 68 Pension Reserve (2,002)0 (2,002) GASB 75 OPEB Reserve 0 0 0 Subtotal 32,022 1,973 33,995 Airport Fund Rate Stabilization (9,526)388 (9,138) CIP Reserves 0 0 0 GASB 68 Pension Reserve (684)0 (684) GASB 75 OPEB Reserve (431) 0 (431) Subtotal (10,641)388 (10,253) TOTAL RESERVES 72,934 (36,728)35,125 Summary of Reserves Emergency Plant Replacement 2,980 0 2,980 Hydro Stabilization 11,400 0 11,400 Rate Stabilization 62,257 (5,978)56,279 Operations 72,221 (22,430)49,791 CIP Reserves 15,194 (8,320)6,874 Electric Special Projects 41,665 0 41,665 Public Benefit 810 0 810 Notes and loans 559 0 559 Underground Loan 727 0 727 Landfill Corrective Action Reserve 758 0 758 GASB 68 Pension Reserve (96,949)0 (96,949) GASB 75 OPEB Reserve (38,688)0 (38,688) TOTAL RESERVES 72,934 (36,728)36,206 Landfill Postclosure Care Liability 6,975 126 7,101 TOTAL RESERVES AND FULLY- FUNDED LIABILITY 79,909 (36,602)43,307 Enterprise Fund Reserves Reserves ($000) FY 2020 Projected Ending Balance FY 2021 Changes FY 2021 Projected Ending Balance FY 2021 Reserve Guideline Range ENTERPRISE FUNDS OVERVIEW 80 ENTERPRISE FUNDS OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Residential Monthly Utility Cost Information Utility FY 2020 Adjusted Bill1 FY 2021 Proposed Bill2 $ Difference % Difference Electric 57.31 59.03 1.72 3.0% Gas 55.24 58.00 2.76 5.0% Water 90.42 90.42 0.00 0.0% Wastewater 41.37 43.85 2.48 6.0% Refuse 50.07 50.07 0.00 0.0% Storm Drain 14.68 15.05 0.37 2.5% User Tax 10.15 10.37 0.22 2.2% Total Monthly Bill 319.24 326.79 7.55 2.4% 1. FY 2020 Rates were effective July 1, 2019. 2. Proposed amounts reflect preliminary rates as of December 2019 and are subject to change CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 81 INTERNAL SERVICE FUNDS Internal Service Funds INTERNAL SERVICE FUNDS OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 83 INTERNAL SERVICE FUNDS OVERVIEW INTERNAL SERVICE FUNDS OVERVIEWOverview Internal Service Funds provide services to City departments and recover their costs through user charges. Charges for employee benefits (health, pension, life insurance, etc.) and workers’ compensation are reflected in the departments’ salary and benefit accounts. The remaining user charges are included in the ’allocated charges’ expenditure category within each department or fund. GENERAL BENEFITS FUND This fund reflects costs for a variety of employee benefits including pension, health, dental, vision, and life insurance. Funds are also included for payments made to employees who elect to waive healthcare coverage under a City plan because they have other coverage. As discussed in the overview of this fund that appears in the ‘Employee Information’ section, costs for employee health benefits as well as pension benefits are projected to increase in Fiscal Year (FY) 2021 and will be allocated out to departments and funds in proportion to their share. In addition, the FY 2021 Proposed Budget continues to incorporate City Council’s direction to make additional contributions to the City’s irrevocable IRS Section 115 Pension Trust Fund. The General Benefits Fund displays the total Section 115 Pension Trust Fund contribution. GENERAL LIABILITIES INSURANCE PROGRAM FUND This fund reflects costs for the City’s General Liability Insurance Program. In FY 2021, costs are projected to increase compared to the FY 2020 Adopted Budget. This increase is based on an actuarial analysis of the City’s liability costs over the past few years and provides an 85 percent confidence level in the funding levels of the fund. This will ensure that the General Liabilities Insurance Program fund has the necessary resources to deal with unforeseen claims. The alloca- tion of these charges is reevaluated annually as part of the budget process to ensure that suffi- cient resources are available and that the fund balance is maintained at an appropriate level. PRINTING AND MAILING SERVICES FUND This fund reflects costs for central copying, printing, and mailing services provided to City departments. An overview of the Fund is included in the ‘Administrative Services Department’ section of this document. RETIREE HEALTH BENEFITS FUND This fund reflects costs for medical insurance provided to retired City employees. In addition, this fund includes payments for the unfunded liability for future medical benefits that will be provided to current and future retirees. An overview of the Fund is included in the ‘Employee Information’ section of this document. INTERNAL SERVICE FUNDS OVERVIEW 84 INTERNAL SERVICE FUNDS OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET TECHNOLOGY FUND This fund reflects costs associated with citywide Information Technology (IT) activities. IT staff maintain critical desktop, software, infrastructure, and maintenance activities for all City depart- ments. An overview of the Fund is included in the ‘Information Technology Department’ section of this document. VEHICLE REPLACEMENT AND MAINTENANCE FUND This fund reflects costs for providing maintenance and replacement of vehicles and equipment used by City departments. In FY 2021, $7.5 million is allocated for vehicles and equipment that are due for replacement. Of the $7.5 million, $4.2 million is for the continuation of projects approved by City Council in prior fiscal years. The 2021-2025 Capital Improvement Program (CIP) reflects funding totaling $20.0 million over the next five years for vehicle replacements. The current reserve balance in the Vehicle Replacement and Maintenance Fund reflects funding allocated from City departments and committed to this five year plan. WORKERS’ COMPENSATION FUND This fund reflects costs for the City’s Workers’ Compensation program. In FY 2021, costs are projected to increase compared to the FY 2020 Adopted Budget based on an actuarial analysis of the City’s workers’ compensation costs over the past few years and in order to provide an 85percent confidence level in the funding levels of the fund. This will ensure that the Workers’ Compensation Fund has the necessary resources to deal with unforeseen claims. The allocation of these charges is reevaluated annually as part of the budget process to ensure that sufficient resources are available and that the fund balance is maintained at an appropriate level. INTERNAL SERVICE FUNDS OVERVIEW INTERNAL SERVICE FUNDS OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 85 Internal Service Funds Summary Fund Summary ($000) Vehicle Replacement and Maintenance Fund Technology Fund Printing and Mailing Services General Benefits Fund Workers' Compensation Program Fund General Liabilities Insurance Program Fund Retiree Health Benefit Fund Total Revenues Charges to Other Funds 9,428 14,718 1,743 ——3,017 —28,906 Operating Transfers-In 50 1,386 ———5 2,384 3,825 Other Revenue 155 18 —76,902 5,703 41 14,403 97,222 Return on Investments 239 549 —363 475 168 64 1,858 Total 9,872 16,671 1,743 77,264 6,178 3,231 16,851 131,810 Expenses Allocated Charges 1,240 1,671 372 ————3,282 Contract Services 624 5,127 60 221 7 72 —6,110 Facilities & Equipment —874 —————874 General Expense 71 475 302 —650 4,074 —5,572 Operating Transfers- Out 124 31 —2,384 ———2,540 Rents & Leases 337 401 512 ————1,251 Salary & Benefits 2,302 8,939 243 74,022 6,303 —16,849 108,657 Supplies & Material 1,465 85 175 ————1,725 Transfer to Infrastructure 745 ——————745 Capital Improvement Program 7,978 3,781 —————11,759 Total 14,885 21,384 1,664 76,627 6,961 4,146 16,849 142,515 INTERNAL SERVICE FUNDS OVERVIEW 86 INTERNAL SERVICE FUNDS OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Internal Service Funds Reserves Vehicle Replacement and Maintenance Fund Technology Fund Printing and Mailing Services General Benefits Fund Workers' Compensation Program Fund Liability Insurance Fund Retiree Health Benefit Fund Total Internal Service Funds Changes to Unrestricted Assets June 30, 2020 Projected Unrestricted Assets 8,192 18,293 0 2,304 959 1,572 1,135 32,455 FY 2021 Proposed Changes (5,013) (4,713) 79 637 (783)(915)2 (10,706) June 30, 2021 Projected Unrestricted Assets 2,879 13,580 79 2,941 176 657 1,137 21,749 CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 87 Special Revenue Funds SPECIAL REVENUE FUNDS SPECIAL REVENUE FUNDS OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED BUDGET 89 SPECIAL REVENUE FUNDS OVERVIEW SPECIAL REVENUE FUNDS OVERVIEWOverview Special Revenue Funds have revenues with either restriction on their use or special reporting requirements, such as development impact fees for community centers, libraries, parks, public facilities, and transportation; gas tax revenues from the state; housing mitigation fees assessed on commercial and industrial projects; in-lieu fees for the City’s Below Market Rate (BMR) hous- ing program; transportation mitigation fees paid by developers; parking in-lieu fees from com- mercial projects in the downtown area; parking permit revenues; and Community Development Block Grants (CDBG) from the federal government. PUBLIC ART FUND Administered by the Community Services Department, the Public Art Fund was created in FY 2014 to support the City’s Public Art Program. The program seeks to increase the public’s daily exposure to art through the commissioning and acquisition of a diverse range of artworks inte- grated into the City’s urban environment. The Public Art Program strives to build the City’s rep- utation as a dynamic public art locale with works of diverse styles, disciplines, and the highest aesthetic standards. Funding for the Public Art Program is determined by the Municipal Code’s direction of 1 percent for Art in Private Development. Construction projects over 10,000 square feet that require Architectural Review and have an estimated construction value of more than $200,000 have the option of commissioning artwork on the development site equal to the cost of 1 percent of the estimated construction valuation or paying the 1 percent to the Public Art Fund. In FY 2021, the projected revenue for the Public Art Fund is $200,00 and includes a trans- fer of $170,000 from the General Fund to comply with requirements that limit the administra- tion costs that are funded through fees. Additionally, although not accounted for in this fund, the City requires that for specific City-funded capital projects a 1 percent public art expense is set aside (please refer to the FY 2021 - 2025 Capital Improvement Plan for further detail). COMMUNITY DEVELOPMENT FUNDS Revenue in this category comes from Development Impact Fees for community centers, librar- ies, parks, public facilities, and transportation. The Development Impact fees collected from new developments provide funding for the City’s infrastructure related to community centers, librar- ies, parks, public safety facilities, general government facilities, and the Charleston-Arastradero Corridor. The projected revenue within the Community Development Impact Fee Funds is $700,000 in FY 2021, primarily reflecting anticipated receipts in the Park Impact and Parkland Dedication Funds. The FY 2021 - 2025 Capital Improvement Plan includes a transfer of $3.4 mil- lion for the completion of Byxbee Park ($2.4 million), improvements at Fire Station six ($400,000), design and construction of a new Public Safety building ($350,000), renovations to the Junior Museum and Zoo ($125,500), and design and an Automated Material Handling (AMH) systems to sort returned Library materials ($80,000). SPECIAL REVENUE FUNDS OVERVIEW 90 SPECIAL REVENUE FUNDS OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED BUDGET Annually, the Administrative Services Department issues a report of the activities in these funds, including the remaining balances within them. The 2018 annual report ending June 30, 2019, is included in CMR 10796 found here:  https://www.cityofpaloalto.org/civicax/filebank/documents/74854 STREET IMPROVEMENT FUNDS (SIF) Revenue in this category comes from the state gas tax, including estimated receipts from the recently approved S.B.1 transportation funds and federal and state grants earmarked for street improvements. These funds are used for transportation and traffic-related capital projects. Based on preliminary estimates from the State Department of Finance, the projected revenues are estimated to be $3.1 million for FY 2021. This level of receipts remains relatively constant to the prior year and includes adjustments to Highway Users Tax Account (HUTA) allocations and the new S.B. 1 transportation funding bill, effective July 1, 2017. Under S.B. 1, it is anticipated that the City is allocated a total of $1.3 million in revenue from the Road Maintenance and Rehabilita- tion Account (RMRA). Repayments from the State General Fund were received over three years at $80,000 per year, ending in FY 2020. In FY 2021, $2.7 million is programmed to be transferred to the Capital Improvement Fund for various citywide transportation projects that include projects for street maintenance and safe routes to school. The City achieved its primary goal of reaching a citywide average Pavement Condition Index (PCI) score of 85 in 2018, three years earlier than the initial goal; however, fund- ing is maintained through the 2021 - 2025 Capital Improvement Plan to work towards the City’s secondary street maintenance goal of having no streets under a PCI score of 60. FEDERAL AND STATE REVENUE FUNDS The Federal and State Revenue Funds consist primarily of Community Development Block Grant (CDBG) funds. The City of Palo Alto receives funds annually from the U.S. Department of Housing and Urban Development (HUD) as an entitlement City under the CDBG program. This is the principal Federal program that provides funds to the CDBG Program to expand and main- tain affordable housing supply, promote housing opportunities, improve and maintain commu- nity facilities, and increase economic opportunities for persons of low and moderate-income. CDBG project expenditures draw upon program income and prior year allocations that have been unspent. The FY 2020-21 draft CDBG action plan includes agency requests totaling $851,000 as tenta- tively scheduled for Finance Committee review in April 2020 (CMR 11148). Staff intends to bring the FY 2020-21 Action Plan for City Council approval in May 2020 to finalize and submit the final application to the Department of Housing and Urban Development (HUD) by the May 15, 2020 deadline. Any necessary budget adjustments will be brought forward after confirmation of final allocations. A more detailed presentation of the FY 2021 Budget for the CDBG Fund is available at the end of the Special Revenue Funds Overview section. HOUSING IN-LIEU FUNDS In-lieu housing revenues come from fees required of commercial, industrial, and residential developers. These fees are used to provide housing for the City’s Subsidized Housing Program. SPECIAL REVENUE FUNDS OVERVIEW SPECIAL REVENUE FUNDS OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED BUDGET 91 For FY 2021, $2.3 million in in-lieu fees are anticipated. These estimates remain constant from FY 2020 and are based on historical tracking and Planning and Development Services (PDS) Department staff projections. Annually, the Administrative Services Department issues a report of the activities in these funds, including the remaining balances within them. The 2019 annual report ending June 30, 2019, is included in CMR 10796 found here:  https://www.cityofpaloalto.org/civicax/filebank/documents/74854 As of June 30, 2019, these funds had a balance of $51.6 million. The majority of this funding is committed to projects in progress. SPECIAL DISTRICTS FUNDS Special District Funds reflect the combined financial activity of the following funds: University Avenue Parking District Fund, California Avenue Parking District Fund, and Residential Preferen- tial Parking Fund. This grouping does not include Assessment District Funds. Revenue in these funds, generated from parking permits and citations, is used for maintenance, repair, enforce- ment, and beautification of parking facilities and public areas within the University and Califor- nia Avenue business districts and Residential Preferential Parking (RPP) districts. As of FY 2021, six neighborhoods are active in the RPP program to mitigate parking congestion in Palo Alto neighborhoods: College Terrace, Downtown, Evergreen Park/Mayfield, Crescent Park, Southgate, and Old Palo Alto (approved as a one-year pilot by City Council on October 21, 2019, in staff report 10612). In FY 2021, the new California Avenue parking garage will be opening to the public. This will add 345 new available employee parking permits, which is enough to accommodate the entire exist- ing waitlist. With this new garage coming online, additional revenue and expenses will occur in the California Avenue Parking Fund. One such additional cost is the increased custodial services needed to maintain the cleanliness of this new public space. A more detailed presentation of the FY 2021 Budget for the California Avenue Parking Fund is available at the end of the Special Revenue Funds Overview section. The FY 2020 budget established a separate Office of Transportation (OOT) situated in the City Manager’s Office. Transportation was previously a division in the Planning and Development Services Department; this change was in recognition of the significant need to develop and implement strategies that address the City Council priority to improve mobility and resolve traf- fic and transportation challenges. Additional information about the establishment and current operations of OOT can be found in the subsequent section for City Departments within the City Manager’s Office. This FY 2021 budget also includes a 2.6 percent increase, the General Rate of Increase (GRI) for FY 2021, to Employee Parking Permit rates. Employee Parking Permit rates are recommended to increase from $806 to $830 per year in University Avenue and Downtown RPP district and $403 to $620 per year in California Avenue, Evergreen Park/Mayfield RPP district, and South- gate RPP district. A price increase is not recommended in FY 2021 to annual residential parking permits so that these permits will remain at $50. A more detailed presentation of park- ing fees can be found in the FY 2021 Municipal Fee schedule. This FY 2021 Proposed Budget includes the following significant proposals: SPECIAL REVENUE FUNDS OVERVIEW 92 SPECIAL REVENUE FUNDS OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED BUDGET Extend the temporary 0.48 part-time Administrative Specialist II to provide customer support services during the implementation and transition to the new parking management software system (6-12 months, $34,750 one-time); Continue to provide funding to the Transportation Management Association (TMA) to support the reduction of single-occupancy vehicles (SOV) rates in Palo Alto, at $750,000 (one-time); Increase permit sales revenue estimates by $5,900 in University Avenue, $524,900 in California Avenue, and $110,000 in Residential Preferential Parking Funds to reflect parking permit increases; Increase in revenues of $185,000 recognizing an operating subsidy transfer from the General Fund to the RPP Fund to cover an operating deficit in FY 2021 (one-time); and Capital improvement investments in FY 20201 through a net transfer of $100,000 to the General Capital Improvement Fund. The transfer is relatively low because these funds are supporting no new projects, and several existing projects have had their timelines pushed out to FY 2021. Major projects funded in FY 20201 include Parking Management and System Implementation ($1.4 million) and University Avenue Parking Improvements ($100,000). Additional project details can be found in the FY 2021 - 2025 Capital Improvement Plan. The ability of these funds to meet future cash flow needs will be significantly impacted by existing projects in the pipeline and the design and complexity of the elements of the com- prehensive parking strategy, including permit pricing. In the upcoming year, staff will continue to develop and implement potential strategies for the organization and scaling of a comprehen- sive parking strategy. In order to strategically manage existing projects and programs in the pipeline and to enact a comprehensive parking strategy, a pause on new projects and initiatives is still recommended in the upcoming fiscal year to allow staff to fill critical vacancies and assess the various programs. A more detailed presentation of the FY 2021 Budget for the University Avenue Parking District Fund and California Avenue Parking District Fund is available at the end of the Special Revenue Funds Overview section. TRAFFIC MITIGATION AND PARKING IN-LIEU FUNDS Traffic mitigation fee revenue is derived from fees paid by developers of new, non-residential projects to alleviate additional traffic congestion resulting from new development. Parking in- lieu fees result from commercial projects in assessment district areas, which contribute a fee for parking spaces in lieu of providing the required spaces within the project area itself. In FY 2021, $276,000 in traffic mitigation and parking in-lieu fees are anticipated. These estimates remain steady with 2020 revenues and are based on historical tracking and Office of Transportation (OOT) staff projections. The FY 2021 - 2025 Capital Improvement Plan includes a transfer of $400,000 in FY 2021 for improvements to traffic signals. Of note, the City Council approved recommendations on April 22, 2019 (CMR 9531) to phase out all but one of the area-specific transportation impact fees and transition to a single citywide fee. The full staff report detailing these actions can be found here:  https://www.cityofpaloalto.org/civicax/filebank/documents/70517 SPECIAL REVENUE FUNDS OVERVIEW SPECIAL REVENUE FUNDS OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED BUDGET 93 PUBLIC BENEFIT FUNDS Revenue in these funds is a result of a senior housing project on Hamilton Avenue and contribu- tions and mitigation fees paid for Planned Community Zone approvals. The Hamilton Avenue funds will continue to be used by Avenidas (formerly Senior Coordinating Council) to provide services to seniors. DOWNTOWN BUSINESS IMPROVEMENT DISTRICT (BID) The Downtown Business Improvement District (BID) was established by an ordinance adopted in January 2004 to promote the economic revitalization and physical maintenance of the Palo Alto Downtown business district. The Council appointed the Board of Directors of the Palo Alto Downtown Business and Professional Association (PADBPA), a non-profit corporation, as the Advisory Board for the BID to advise the Council on the method and basis for levy of assess- ments in the BID and the expenditure of revenues derived from the assessments. In prior years, the BID has focused on street cleanliness, creating a safe downtown, and providing events and communication tools that bring business downtown. Annually, the BID advisory board issues an action plan for the upcoming period for City Council review and approval. Staff anticipates submitting the FY 2020-21 action plan for City Council approval by June 2020, which will inform the development of the FY 2021 budget. Any neces- sary budget adjustments as a result of the action plan will be incorporated into the annual bud- get process or completed through a budget amendment, as appropriate. The most recent action plan for FY 2019-20 was included in CMR 10315 and can be found here: https://www.cityofpaloalto.org/civicax/filebank/documents/72074 STANFORD UNIVERSITY MEDICAL CENTER (SUMC) In 2011, the City of Palo Alto entered into a Development Agreement between the City of Palo Alto and the Stanford University Medical Center Parties (SUMC). Funds received in FY 2012 as part of this agreement were used in FY 2013 - 2014, and beyond as outlined in the agreement and approved by the City Council. In FY 2018, the City received the final payment of $11.8 mil- lion, for a total amount of $44.3 million throughout the development agreement. The funds received per the development agreement are allocated for specific purposes, which include funding for the 2014 City Council approved Infrastructure Plan. As outlined in the agreement, expenses and revenues for each category must be accounted for separately. Annually the Planning and Development Services Department, formerly the Planning and Com- munity Environment Department, issues a report of activities during the prior period for Council review to ensure compliance with the agreement. Staff anticipates bringing forward the annual report for 2017-2018 in FY 2021. The most recent annual report for the 2016-2017 period is included in CMR 8999 found here:  https://www.cityofpaloalto.org/civicax/filebank/documents/65285 Community Health and Safety: Funds are to be distributed to selected community health pro- grams that benefit residents of the City. The projected beginning balance in this category is $2.8 million. There are no planned transfers in FY 2021 to the FY 2021 – 2025 Capital Improvement Plan. SPECIAL REVENUE FUNDS OVERVIEW 94 SPECIAL REVENUE FUNDS OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED BUDGET Stanford Hospital Expansion Cost Mitigation: Funds are being held in this category to assure that City costs associated with the project do not exceed revenues to the City and ensure cost neutrality of the development. The projected beginning balance for this category is $2.9 million. The FY 2021 – 2025 Capital Improvement Plan includes a $500,000 transfer in FY 2021 for rail- road grade separation and safety improvements. Intermodal Transit: Funds are to enhance the pedestrian and bicycle connection from the Transit Center to the El Camino/Quarry Road intersection. The projected beginning balance in this cat- egory is $1.2 million. There are no planned transfers in FY 2021 to the FY 2021 – 2025 Capital Improvement Plan. Quarry Road Improvements: Funds are to improve and enhance the public right-of-way at the pedestrian and bicycle connection from El Camino to Welch Road along Quarry Road. Begin- ning in FY 2019, there is no longer a fund balance in this category. The remaining funding for Quarry Road Improvements and Transit Center Access will be expended from the Intermodal Transit Fund in future periods, consistent with the development agreement and recognizing cost increases incurred as a result of Quarry Road delays and mobilization of two separate proj- ects rather than one combined project as initially planned. Infrastructure, Sustainable Neighborhoods and Communities, and Affordable Housing: Funds in this category are to be used in connection with infrastructure, sustainable neighborhoods and communities, and affordable housing. The projected beginning balance in this category is $10.9 million. The FY 2021 - 2025 Capital Improvement Plan includes a $1.5 million transfer for the replacement of Fire Station four ($750,000) and the design and construction of a new Public Safety building ($800,000). Climate Change: Funds are to be used for projects and programs for a sustainable community, including programs identified in the City’s Climate Action Plan. The projected beginning balance for this category is $2.8 million. The FY 2021 - 2025 Capital Improvement Plan includes a $1.2 million transfer for the Bicycle and Pedestrian Plan-Implementation Project. A more detailed presentation of the FY 2021 budget for the Stanford University Medical Center Fund is available at the end of the Special Revenue Funds Overview section. SPECIAL REVENUE FUNDS OVERVIEW SPECIAL REVENUE FUNDS OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED BUDGET 95 Special Revenue Summary by Fund Type Fund Summary ($000) Public Art Fund Com. Dev. Funds Bus. Improv. District Housing In-Lieu Funds Street Improv. Fund Federal & State Rev. Funds Special District Funds Traffic Mitig. & Parking In-Lieu Funds Stan. Univ. Medical Center Fund Total Revenues Charges for Services 200 673 —————276 —1,149 From Other Agencies ————3,054 501 ———3,555 Net Sales ——————2,206 ——2,206 Operating Transfers-In 170 —————585 ——755 Other Revenue ———2,345 —136 ———2,481 Other Taxes and Fines ——————150 ——150 Permits and Licenses ——————3,180 ——3,180 Property Taxes ——140 ——————140 Rental Income ———9 —————9 Return on Investments 16 337 —463 9 7 109 260 370 1,571 Total 386 1,010 140 2,817 3,063 645 6,231 536 370 15,197 Expenses Allocated Charges 2 ——1 —3 320 ——326 Contract Services ———247 ——2,586 ——2,833 General Expense 1 —148 53 —761 799 ——1,762 Operating Transfers-Out ————364 —130 ——494 Salary & Benefits 212 ——57 —87 1,564 ——1,920 Supplies & Material ——————121 ——121 Transfer to Infrastructure —3,355 ——2,711 —100 400 3,250 9,816 Total 215 3,355 148 358 3,074 851 5,619 400 3,250 17,271 SPECIAL REVENUE FUNDS OVERVIEW 96 SPECIAL REVENUE FUNDS OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED BUDGET Consolidated Special Revenue Funds Fund Summary ($000) FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % REVENUES Gas Tax 1,858 2,602 2,891 3,054 163 5.64 Federal CDBG 363 687 393 501 108 27.48 Housing In-Lieu 1,145 5,613 2,150 2,150 —— Traffic Mitigation Fees 3,077 2,301 276 276 — — Developer Impact Fees 1,296 2,212 673 673 — — Parking Mitigation Fees 3,643 4,505 4,728 4,715 (13)(0.27) BID Assessment 72 58 140 140 —— SUMC 11,745 —— —— — Interest Income 1,525 1,909 1,185 2,392 1,207 101.86 Other Revenue 717 1,117 375 540 165 44.00 Subtotal Revenue 25,440 21,004 12,811 14,441 1,630 12.72 Transfers In General Fund 426 453 453 674 221 48.79 Technology Fund 21 24 24 27 3 12.50 Utility Admin Fund 48 47 47 55 8 17.02 Subtotal Operating Transfers In 495 524 524 756 232 44.27 Total Source of Funds 25,935 21,528 13,335 15,197 1,862 13.96 EXPENDITURES General Expense 22,031 8,056 8,439 6,961 (1,478) (17.51) Subtotal Expenditures 22,031 8,056 8,439 6,961 (1,478)(17.51) Transfers Out General Fund 739 565 500 494 (6) (1.30) Capital Improvement Fund 10,696 4,886 26,377 9,816 (16,561)(62.79) General Benefits —11 13 —(13) (100.00) Subtotal Operating Transfers Out 11,435 5,462 26,890 10,310 (16,561) (61.66) Total Use of Funds 33,465 13,518 35,329 17,271 (18,058) (51.11) Net To (From) Reserves (7,530) 8,010 (21,994) (2,074) 19,920 (90.57) SPECIAL REVENUE FUNDS OVERVIEW SPECIAL REVENUE FUNDS OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED BUDGET 97 Community Development Block Grant Community Development Block Grant Fund FY 2020 Adopted Budget FY 2021 Agency Requests FY 2021 Proposed Budget SOURCE OF FUNDS Housing & Urban Development, current year 499,868 — 501,355 Housing & Urban Development, prior years —— — Prior Year Excess/Reallocation (1) 88,661 —213,167 Program Income Palo Alto Housing Corporation 136,049 —136,049 TOTAL SOURCE OF FUNDS 724,578 —850,571 USE OF FUNDS Public Service Palo Alto Housing Corporation - SRO Resident Support Services 31,831 50,697 29,220 Catholic Charities - Long-Term Care Ombudsman 10,000 10,000 10,000 YWCA/Support Network - Domestic Violence Services 5,000 10,000 5,000 LifeMoves (formerly InnVision) - Opportunity Service Center 31,832 46,575 29,220 Silicon Valley Independent Living - Housing and Emergency Services 12,000 28,826 12,000 Subtotal: Public Service 90,663 146,098 85,440 Planning and Administration Project Sentinel/Fair Housing Services 37,940 33,698 37,480 City of Palo Alto - CDBG Administration includes 0.10 FTE & 0.48 Hourly CDBG Administrative Staff 89,243 90,000 90,000 Subtotal: Planning and Administration 127,183 123,698 127,480 Housing, Economic Development, Capital Projects, & Public Facilities Downtown Streets Team/Workforce Development 361,473 336,400 336,400 MayView Community Health Center 145,259 — — Habitat for Humanity - Minor Home Repair —100,000 151,301 Palo Alto Housing - Alma Place —149,950 149,950 Subtotal: Housing, Economic Development & Capital Projects 506,732 586,350 637,651 TOTAL USE OF FUNDS 724,578 856,146 850,571 (1) Funds received in excess of revenue estimate for local program income (prior years) SPECIAL REVENUE FUNDS OVERVIEW 98 SPECIAL REVENUE FUNDS OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED BUDGET University Avenue Parking Permit Fund FY 2020 Adopted FY 2020 Adjusted FY 2021 Proposed Revenues Permit Sales 2,372,000 2,277,100 2,358,860 Day Passes 675,000 579,800 580,000 Ticket Machine 215,000 386,900 388,000 Transfer from Other Funds for City Share 380,250 380,250 400,060 Investment Income 68,200 68,200 77,500 Total Revenue 3,710,450 3,692,250 3,804,420 Expenditures Administration Positions 1.66 1.66 1.66 Salaries & Benefits 249,261 189,728 256,443 Contract Staffing 182,248 173,071 182,248 Parking Occupancy Services 77,031 32,772 35,000 Miscellaneous Supplies 21,048 21,048 21,048 Ticket Machine (bankcard services, transmission, maintenance) 28,100 28,100 28,100 Subtotal Administration 557,688 444,719 522,839 Maintenance Positions 3.87 3.87 3.87 Salaries & Benefits 547,542 456,469 531,205 Supplies 60,090 60,090 60,090 Twinkle/Tree Lights 30,000 30,000 30,000 Landscaping 20,090 20,090 20,593 Maintenance (garage, elevator, fire sprinkler) 78,024 78,024 78,024 Custodial (janitorial services, power washing, sweeping) 280,346 280,346 280,346 Steam Cleaning 94,660 94,660 94,660 Subtotal Maintenance 1,110,752 1,019,679 1,094,918 Police Patrol Positions 0.50 0.50 0.50 Salaries & Benefits 128,598 128,598 130,000 SPECIAL REVENUE FUNDS OVERVIEW SPECIAL REVENUE FUNDS OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED BUDGET 99 Subtotal Patrols 128,598 128,598 130,000 Other Valet Programs (Lots R, CC, CW, & S) 289,972 289,972 289,972 Temporary Valet Programs (garage construction) — 150,000 — Downtown Streets Team 118,744 118,744 118,744 Transportation Management Authority (TMA) 750,000 750,000 750,000 Utilities/Indirect costs 207,986 207,986 210,521 Transfer to CIP Fund 1,135,220 1,135,220 100,000 Subtotal Other 2,501,922 2,651,922 1,469,237 Total Operating Expenses 4,298,960 4,244,918 3,216,994 Income from Operations (588,510)(552,668)587,426 University Avenue Parking Permit Fund FY 2020 Adopted FY 2020 Adjusted FY 2021 Proposed SPECIAL REVENUE FUNDS OVERVIEW 100 SPECIAL REVENUE FUNDS OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED BUDGET California Avenue Parking Permit Fund FY 2020 Adopted FY 2020 Adjusted FY 2021 Proposed Revenues Permit Sales 296,625 251,788 821,500 Day Passes 225,000 287,178 290,000 Investment Income 12,000 12,000 12,800 Total Revenue 533,625 550,966 1,124,300 Expenditures Administration Positions 1.05 1.05 1.05 Salaries & Benefits 151,383 98,935 157,040 Miscellaneous Supplies 35,620 35,620 35,620 Contract Staffing 41,400 39,347 41,400 Parking Occupancy Services 17,545 13,497 17,545 Subtotal Administration 245,948 187,399 251,605 Maintenance Positions 0.43 0.43 0.43 Salaries & Benefits 73,601 55,812 72,544 Supplies 7,855 7,855 7,855 Contracts Garage maintenance 5,255 5,255 79,106 Sweeping Ted Thompson and Cambridge garages 4,008 4,008 4,008 Fire sprinkler maintenance 1,453 1,453 1,453 Steam Cleaning 7,060 7,060 7,060 Landscaping 10,597 10,597 10,597 Facilities repair 637 637 637 Custodial — — 54,650 Street Sweeping 82,101 82,101 82,101 Subtotal Maintenance 192,567 174,778 320,011 Utilities/Indirect costs 38,849 38,849 62,647 Transfer to CIP Fund 138,000 138,000 — Subtotal Other 176,849 176,849 62,647 Total Operating Expenses 615,364 539,026 634,263 Total Operating Expenses (81,739)11,940 490,037 SPECIAL REVENUE FUNDS OVERVIEW SPECIAL REVENUE FUNDS OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED BUDGET 101 Stanford Development Agreement Fund FY 2020 Estimated FY 2021 Proposed Change SOURCE OF FUNDS Unrestricted- Community Health and Safety 2,778,889 2,825,721 46,832 Unrestricted- Stanford Hospital Expansion Cost Mitigation 2,865,946 2,914,245 48,299 Unrestricted- Intermodal Transit 1,203,107 1,021,697 (181,410) Unrestricted- Quarry Road Improvements — —— Unrestricted- Neighborhoods and Communities and Affordable Housing 10,862,556 11,045,620 183,063 Unrestricted- Climate Change 2,771,602 1,608,199 (1,163,403) Total Beginning Fund Balance 20,482,100 19,415,482 (1,066,618) Revenue Interest - Community Health and Safety 46,832 53,893 7,062 Interest - Stanford Hospital Expansion Cost Mitigation 48,299 55,582 7,283 Interest - Intermodal Transit 18,590 19,486 896 Interest - Quarry Road Improvements —— — Interest - Neighborhoods/Communities/ Affordable Housing 183,063 210,667 27,603 and Affordable Housing Interest - Climate Change 36,597 30,672 (5,925) Total Revenue 333,382 370,300 36,918 TOTAL SOURCE OF FUNDS 20,815,482 19,785,782 (1,029,700) USE OF FUNDS Expenditures Transfers Out Community Health and Safety: Capital Improvement Fund ——— Stanford Hospital Expansion Cost Mitigation —500,000 — Intermodal Transit: Capital Improvement Fund 200,000 —(200,000) Quarry Road Improvements: Capital Improvement Fund — —— Neighborhood and Communities and Affordable Housing: Capital Improvement Fund —1,550,000 1,550,000 Climate Change: Capital Improvement Fund 1,200,000 1,200,000 — Total Transfers 1,400,000 3,250,000 1,350,000 SPECIAL REVENUE FUNDS OVERVIEW 102 SPECIAL REVENUE FUNDS OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED BUDGET Total Expenditures 1,400,000 3,250,000 1,850,000 Ending Fund Balance Unrestricted- Community Health and Safety 2,825,721 2,879,614 53,893 Unrestricted- Stanford Hospital Expansion Cost Mitigation 2,914,245 2,469,827 (444,418) Unrestricted- Intermodal Transit 1,021,697 1,041,183 19,486 Unrestricted- Quarry Road Improvements — — — Unrestricted- Neighborhoods and Communities and Affordable Housing 11,045,620 9,706,286 (1,339,333) Unrestricted- Climate Change 1,608,199 438,871 (1,169,328) Total Ending Fund Balance 19,415,482 16,535,782 (2,879,700) TOTAL USE OF FUNDS 20,815,482 19,785,782 (1,029,700) Stanford Development Agreement Fund FY 2020 Estimated FY 2021 Proposed Change •CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 103 DEBT SERVICE FUNDS Debt Service Funds DEBT SERVICE FUNDS OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED BUDGET 105 DEBT SERVICE FUNDS OVERVIEW DEBT SERVICE FUNDS OVERVIEWOverview CITY OF PALO ALTO DEBT POLICY The City of Palo Alto recognizes the need for spending a prudent amount every year for ongo- ing capital replacement and rehabilitation needs. An ongoing capital improvement plan is vital to ensuring the future viability of services. To achieve this priority, the City funds its regular and ongoing capital needs primarily on a "pay-as-you-go" basis. There are, however, special or extraordinary capital improvement projects, refinancing of existing debt, and purchase of major and multiple pieces of equipment in which it is appropriate to consider debt financing. The City’s Debt Policy establishes the guidelines to support the decision-making process for issuing debt. DEBT POLICY GUIDELINES The City’s Debt Policy provides guidelines for refinancing existing debt; detailing the responsi- bilities of City staff engaged in issuing debt; delineating the debt instruments or vehicles (e.g. General Obligation Bonds or Certificates of Participation) the City can utilize; and describing sit- uations in which tax-exempt and taxable debt can be used. The depth and breadth of the policy serve to guide current and future staff. Below are highlights of the Debt Policy guidelines for the use of debt and other financing. A. Debt may be judiciously used when some or all of the following conditions exist: Estimated future revenue is sufficient to ensure the payment of annual debt service. Other financing options have been explored and are not viable for the timely or economic acquisition or completion of a capital project. A capital project is mandated by federal or state authorities with no other viable funding option available. The capital project or asset lends itself to debt financing rather than pay-as-you-go funding based on the expected useful life of the project. Debt will not be used to fund ongoing operating expenses of the City except for situations in which cash flow problems arise and the City may need to issue short-term Tax or Revenue Anticipation Notes. Annual debt service shall not exceed 10 percent of annual operating expenses for the General Fund unless an exception is approved by City Council. For all other City funds annual debt service shall not exceed 15 percent of annual operating expenses unless an exception is approved by City Council. B. Minimize borrowing costs by: DEBT SERVICE FUNDS OVERVIEW 106 DEBT SERVICE FUNDS OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED BUDGET Maximizing the use of existing resources for capital projects and equipment needs. Issuing tax-exempt debt except in instances where IRS regulations require taxable bonds. Striving to obtain the highest credit ratings possible. Maintaining a competitive bid process on bond sales except for situations in which negotiated or private placement sales meet City objectives. In negotiated or private placement sales, City staff will work with its Municipal Advisor (aka Financial Advisor) to review proposed interest rates and proposed fees. Ensuring that the type of debt and debt structure developed ensure advantageous marketing of each issue. C. Linking debt to appropriate revenue sources and project users: When possible, tie project financing directly to users of a specific facility or use. Examples include renovation of the Golf Course where user fees can offset debt service or replacing gas mains where gas rates can be increased to cover debt expense. Debt financing in the Enterprise Funds so as to avoid significant spikes in user rates by smoothing out costs over time. In addition to capital projects, the City can finance essential equipment and vehicles. These assets range from public safety vehicles to utility equipment. The underlying asset must have a minimum useful life of three years. Short-term financings, including loans and capital lease pur- chase agreements, are executed to meet such needs. It has been the City’s practice to fund these purchases with existing resources; however, debt financing flexibility for future needs remains an option. Also, the Chief Financial Officer or Director of Administrative Services, supported by Treasury Division, will periodically evaluate its existing debt and execute refinancings when economically beneficial. A refinancing may include the issuance of bonds to refund existing bonds or the issu- ance of bonds in order to refund other obligations. A net present value analysis, both in dollar and percentage terms, will be conducted to determine whether a re-financing is optimal. As a "rule of thumb," a minimum 3 percent net present value savings will be used as a basis to begin re-financing efforts. As with new debt, all refinancings must be approved by City Council. In September 2016, the state legislature adopted Senate Bill (SB) 1029 (Hertzberg), amending Government Code section 8855 to place additional reporting obligations on issuers of public debt, effective January 1, 2017. The amendments require an issuer to certify that they have adopted a debt policy concerning the use of debt and that the proposed debt issuance is con- sistent with that Policy. Though the City’s Debt Policy prior to this legislation and practice sub- stantially complied with the new requirements, minor updates to the Debt Policy were approved by the City Council in April 2017, to explicitly comply with SB 1029 requirements. This statue also added additional reporting requirement to the California Debt and Investment Advisory Commission (CDIAC) such as the submission of annual report for any issue of debt. LEGAL DEBT LIMIT Based upon the assessed valuation of $36.8 billion for the fiscal year ending June 30, 2019, the City is limited to general obligation indebtedness of $1.4 billion per State law. As of June 30, 2019, the amount of debt applicable to the debt limit was $60.5 million, which is well below the DEBT SERVICE FUNDS OVERVIEW DEBT SERVICE FUNDS OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED BUDGET 107 City’s legal debt limit. The debt limit is applicable to voter-approved general obligation (GO) bonds that have been approved in prior years to fund capital improvement projects to renovate and build out the City’s libraries including the Mitchell Park Library and Community Center. DEBT OBLIGATION DESCRIPTIONS 2010A and 2013A General Obligation (GO) Bonds On June 30, 2010, the City issued the first series of $55.3 million and on June 26, 2013 the sec- ond series of $20.6 million of GO bonds to finance costs for constructing a new Mitchell Park Library and Community Center, as well as substantial improvements to the Main Library and the Downtown Library. Principal payments are due annually on August 1 and interest payments semi-annually on February 1 and August 1, from 2.0 percent to 5.0 percent, and are payable from property tax revenues. As of June 30, 2020, for the above 2010 and 2013 bonds, $43.3 million and $15.5 million princi- pal and $24.3 million and $8.0 million interest will be the remaining debt service on the bonds with final payment occurring in Fiscal Year 2041 and Fiscal Year 2042, respectively. 2018 Capital Improvement ("Golf Course") Project and 2002B ("Civic Center Refinancing and Downtown Parking Improvements Project") Refinancing Certificates of Participation (COPs) On June 5, 2018, the City issued taxable (Green Bonds) COPs of $8.4 million for the renovation of Palo Alto’s Municipal Golf Course and $0.6 million to refinance the 2002B COPs. Debt service payments are due semi-annually on May 1 and November 1. The 2018 Capital Improvement Proj- ect and 2002B refinancing COPs maturity dates and true interest costs are November 2047 and 4.14 percent and November 2022 and 3.11 percent, respectively. 2019 California Avenue Parking Garage Certificates of Participation (COPs) On March 21, 2019, the City issued $26.8 million tax-exempt and $10.6 million taxable COPs for the construction of a six story (four above ground levels and two below ground levels) parking garage in the California Avenue Business District. The new garage will replace existing parking stalls at two locations and provide 310 additional parking spaces, totaling 636 parking spaces in the new garage. Debt service payments on the $37.4 million COPs are due semi-annually on May 1 and Novem- ber 1, with the first payment due on November 1, 2019. The COPs mature in FY 2049 and have a combined true interest cost (TIC) of 3.75 percent with the tax-exempt bonds’ TIC being 3.52 percent and taxable bonds’ TIC being 4.32 percent. 1995 Utility Revenue Bonds, Series A On February 1, 1995 the City issued Utility Revenue Bonds to finance certain extensions and improvements to the City’s Storm Drainage and Surface Water systems. The bonds are special obligations of the City payable solely from and secured by a pledge of and lien upon the reve- nues derived by the City from the funds, services, and facilities of all Enterprise Funds except the Refuse Fund and the Fiber Optics Fund. Principal payments are payable annually on June 1, and interest payments semi-annually on June 1 and December 1. A $2.9 million 6.3 percent term DEBT SERVICE FUNDS OVERVIEW 108 DEBT SERVICE FUNDS OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED BUDGET bond is due June 1, 2020. In lieu of a reserve fund, the Bonds are secured by a Surety Bond issued by AMBAC Indemnity Corporation. The pledge of future net revenues for the above funds ends upon repayment of the $0.6 million principal and $40,313 interest as the remaining debt service on the bonds as of June 30, 2019 with final payment occurring in Fiscal Year 2020. 1999 Utility Revenue and Refunding Bonds, Series A On June 1, 1999 the City issued Utility Revenue Bonds to refund the 1990 Utility Revenue Refunding Bonds, Series A and the 1992 Utility Revenue Bonds, Series A, and to finance rehabil- itation of the Wastewater Treatment System’s two sludge incinerators. The 1990 Utility Revenue Refunding Bonds, Series A and the 1992 Utility Revenue Bonds, Series A, were subsequently retired. The 1999 Bonds are special obligations of the City payable solely from and secured by a pledge of, and lien upon, certain net revenues derived by the City’s sewer system and its storm and surface water system, the "Stormwater Management System". As of June 30, 2001, the 1999 Bonds had been allocated to and were repayable from net revenues of the following Enterprise Funds: Wastewater Collection (10.2 percent), Wastewater Treatment (64.6 percent) and Storm- water Management (25.2 percent). Principal payments are payable annually on June 1, and inter- est payments semi-annually on June 1 and December 1. In lieu of a reserve fund, the bonds are secured by a Surety Bond issued by AMBAC Indemnity Corporation. The pledge of future net revenues for the above funds ends upon repayment of the $6.7 million principal and $0.9 million interest as the remaining debt service on the bonds as of June 30, 2020, with final payment occurring in Fiscal Year 2024. 2009 Water Revenue Bonds, Series A On October 6, 2009, the City issued Water Revenue Bonds in the amount of $35.5 million to finance certain improvements to the City’s Water utility system. Principal payments are due annually on June 1, and interest payments are due semi-annually on June 1 and December 1, from 1.8 percent to 6.0 percent. The final debt service payment will be made in 2035. When these bonds were issued they were designated as ’Direct Payment Build America Bonds’ under the provisions of the American Recovery and Reinvestment Act of 2009 (’Build America Bonds’). The City expected to receive a cash subsidy payment from the United States Treasury equal to 35.0 percent of the interest payable on the 2009 bonds, however, due to the United States federal government budget (sequestration) cuts in calendar year 2013, the receipts declined to 32.5 percent in 2013 and were 33.3 percent in calendar year 2018. The lien on the 1995 Bonds on the net revenues is senior to the lien on net revenues securing the 2009 Bonds and the 2002 Bonds. The City received subsidy payments amounting to $0.5 million, which rep- resents 33.3 percent of the two interest payments due on June 1 and December 1 annually. The pledge of future net revenues of the above funds ends upon repayment of the $25.5 million principal and $13.3 million interest as the remaining debt service on the bonds as of June 30, 2020 with final payment occurring in Fiscal Year 2035. 2011 Utility Revenue Bonds, Series A On September 22, 2011 the City issued Utility Revenue Bonds to refinance the 2002 Utility Rev- enue Bonds, which were issued for certain improvements to the City’s Water and Natural Gas DEBT SERVICE FUNDS OVERVIEW DEBT SERVICE FUNDS OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED BUDGET 109 utility system. The refinancing resulted in net present value savings of 16.9 percent and cash savings over 15 years of $4.0 million. Principal payments are due annually on June 1, and interest payments are due semi-annually on June 1 and December 1 from 3.0 percent to 4.0 percent. The Revenue Bonds are secured by net revenues generated by the Water and Gas Funds. The pledge of future net revenues ends upon repayment of the $7.9 million principal and $0.9 million interest remaining debt service on the bonds as of June 30, 2020 with final payment occurring in Fiscal Year 2026. 2007 Electric System Clean Renewable Energy Tax Credit Bonds On November 1, 2007 the City issued $1.5 million of Electric Utility Clean Renewable Energy Tax Credit Bonds (CREBS), 2007 Series A, to finance the City’s photovoltaic solar panel project. The bonds do not bear interest. In lieu of receiving periodic interest payments, bondholders are allowed federal income tax credit in an amount equal to a credit rate for such CREBS multiplied by the outstanding principal amount of the CREBS owned by the bondholders. The bonds are payable solely from, and secured solely by, a pledge of the net revenues of the Electric system and other funds pledged therefore under the Indenture. The pledge of future Electric Fund net revenues ends upon repayment of the $0.2 million as the remaining debt service on the bonds as of June 30, 2020 with final payment occurring in Fiscal Year 2022. 2007 State Water Resources Loan In October 2007, the City approved the $9.0 million loan agreement with State Water Resources Control Board (SWRCB) to finance the City’s Mountain View/Moffett Area Reclaimed Water Pipeline Project. Under the terms of the contract, the City agreed to repay $9.0 million to the State in exchange for receiving $7.5 million in proceeds to be used to fund the project. The dif- ference between the repayment obligation and proceeds amounts to $1.5 million and represents in-substance interest on the outstanding balance. Loan proceeds are drawn down as the project progresses and debt service payments commenced on June 30, 2010. Concurrently with the loan, the City entered into various other agreements including a cost sharing arrangement with the City of Mountain View. Pursuant to that agreement, the City of Mountain View agreed to finance a portion of the project with a $5.0 million loan repayable to the City. This loan has been recorded as ’Due from other government agencies’ in the financial statements. The pledge of future net revenues of the above funds ends upon repayment of the $4.1 million principal and $0.7 million in-substance interest as the remaining debt service on the bonds as of June 30, 2020 with final payment occurring in Fiscal Year 2029. 2009 State Water Resources Loan In October 2009, the City approved an $8.5 million loan agreement with the State Water Resources Control Board (SWRCB) to finance the City’s Ultraviolet Disinfection Project. As of June 30, 2011, the full loan in the amount of $8.5 million was drawn down and became outstand- ing. Interest in the amount of $96,000 was accrued and added to the outstanding balance. The pledge of future net revenues of the above funds ends upon repayment of the $5.3 million principal and $0.9 million interest as the remaining debt service on the bonds as of June 30, 2020 with final payment occurring in Fiscal Year 2031. DEBT SERVICE FUNDS OVERVIEW 110 DEBT SERVICE FUNDS OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED BUDGET 2017 State Water Resources Loan In June 2017, the State Water Resources Control Board (SWRCB) and the City executed an agreement for an award up to $30.0 million at a rate of 1.8 percent, payable over 30 years, with the first annual installment due May 31, 2020 to finance the replacement of sewage sludge "bio- solids" incinerators at the City’s Regional Water Quality Control Plant (RWQCP). In September 2017, due to the projected lower project costs, the agreement was amended to reduce the SWRCB loan amount to $29.7 million. Under the terms of the contract, a portion of the loan amount, $4.0 million, is a federally funded grant (by the U.S. Environmental Protection Agency). The new facility will dewater the bio-solids and allow the material to be loaded onto trucks and taken to a separate facility for further treatment. The RWQCP provides treatment and disposal for wastewater for Palo Alto, Mountain View, Los Altos, Los Altos Hills, East Palo Alto Sanitary District, and Stanford University. Though Palo Alto is the recipient of the loan, the City’s agree- ment with the partner agencies obliges them to pay their proportionate share of the principal and interest of this loan. Palo Alto’s share of the loan payment is 38.2 percent with the partner agencies paying 61.8 percent. As of June 30, 2020, the City is anticipated to incur and draw down $25.0 million of the project costs from the loan award. Credit Rating Agencies Credit rating is a critical component of strong municipal management. According to Moody’s Investors Service, reserves are an important factor in the analysis of a municipality’s fiscal health and, therefore, a jurisdiction’s fiscal policies should include a plan for maintaining reserves. Rat- ing agencies view sound reserves favorably, thus improving a municipality’s rating and its ability to obtain low-cost financing for important projects. The City is proud to report that both Moody’s and Standard and Poor’s (S&P) awarded their highest credit ratings, Triple A, to the City’s General Obligation Bonds for library and community center capital improvements in 2010 and 2013 and reaffirmed these ratings a few times, the last one being in July 2018 by Moody’s and February 2019 by S&P. These ratings demonstrate that Palo Alto’s prudent financial man- agement and fiscal strength are viewed favorably by credit agencies. The four Utility bonds (1995, 1999, 2009, & 2011) that are rated also received S&P’s highest credit rating of Triple A. Moody’s has rated these Utility bonds with their second highest (Aa1) or third highest (Aa2) rat- ings. DEBT SERVICE FUNDS OVERVIEW DEBT SERVICE FUNDS OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED BUDGET 111 Debt Service Fund Fund Summary ($000) FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted FY 2021 Proposed FY 2021 Change $ FY 2021 Change % Revenues Bond Proceeds 595 301 0 0 0 0% Property Tax 4,331 4,390 4,443 4,558 115 2.6% Return on Investments 40 142 0 30 30 100% Transient Occupancy Tax 0 0 2,335 2,380 45 1.9% Subtotal Revenues 4,966 4,833 6,778 6,968 190 2.8% Operating Transfers In General Fund 233 339 530 530 0 0% Capital Projects Fund 0 18 0 0 0 0% Subtotal Operating Transfers 233 357 530 530 0 0% Total Source of Funds 5,199 5,190 7,308 7,498 190 2.6% Expenses Golf Course 2018A Interest 0 320 335 345 10 3.0% Golf Course 2018A Principal 0 35 35 185 150 428.6% Library GO Bonds Debt Service (11) 0 0 0 0 0.0% Library GO Bonds Interest 2,863 2,787 2,718 3,015 297 10.9% Library GO Bonds Principal 1,570 1,640 1,725 1,630 (95) (5.5)% Parking 2002B COPS Taxable Debt Service 14 0 0 0 0 0.0% Parking 2002B COPS Taxable/ 2018B Refinancing Interest 77 0 15 0 (15) (100.0)% Parking 2002B COPS Taxable/ 2018B Refinancing Principal 975 0 145 0 (145) (100.0)% Parking 2019A COPS Tax Exempt Interest 0 0 1,488 1,340 (148) (9.9)% Parking 2019B COPS Taxable Interest 0 0 470 410 (60) (12.8)% Parking 2019B COPS Taxable Principal 0 0 375 630 255 68.0% Parking 2019A&B COPS Issuance Expense 0 285 0 0 0 0.0% Total Use of Funds 5,499 5,067 7,306 7,555 249 3.4% Net to (from) Reserves (300)123 2 (57)(59)N/A •CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 113 CITY DEPARTMENTS City Departments CITY ATTORNEY CITY ATTORNEY • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 115 CITY ATTORNEYMission Statement The Office of the City Attorney’s mission is to serve Palo Alto and its policymakers by providing legal representation of the highest quality. Purpose The purpose of the Office of the City Attorney is to partner with City leaders to find creative approaches to the opportuni- ties and challenges that face Palo Alto; draft contracts, legislation, legal opinions, and other legal documents; negotiate on behalf of the City; provide training and advice on how to manage risk and comply with the law; enforce the municipal code; and defend the City when it is sued. CITY ATTORNEY 116 CITY ATTORNEY • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 1.00ƫƫ$%!"ƫ//%/0*0 City Attorneyƫ ă.00ƫ Assistant City Attorneyƫ 2.00 Deputy City Attorneyƫ 1.00 Legal Fellow āċĀĀƫ!*%+.ƫ *#!)!*0ƫ*(5/0 āċĀĀƫ!.!0.5ƫ0+ƫ%05ƫ00+.*!5 āċĀĀƫ(%)/ƫ *2!/0%#0+. FY 20Ăā POSITION TOTALSƫ 1ā.00 - Full-time This organizational chart represents citywide Full-Time Equivalents (FTEs) for this department. The Department Summary tables summarize FTEs by position allocation. CITY ATTORNEY Molly S. Stump CITY ATTORNEY CITY ATTORNEY • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 117 Description The Office of the City Attorney legally represents the City by providing legal advice and/or training to the City Council, City Manager, boards, commissions, and operating departments; investigating and resolving claims against the City; defending the City in litigation and administrative actions; initiating and prosecuting litigation on behalf of the City; and drafting and approving contracts, legislation, and other legal documents. CITY ATTORNEY 118 CITY ATTORNEY • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Budget Summary FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % Dollars by Division Administration 553,106 595,602 644,611 653,017 8,406 1.3% Consultation and Advisory 1,619,693 1,810,065 1,904,890 2,115,628 210,738 11.1% Litigation and Dispute Resolution 1,044,767 1,156,868 717,728 932,310 214,582 29.9% Official and Administration Duties 89,885 113,556 119,725 124,193 4,468 3.7% Total 3,307,450 3,676,092 3,386,954 3,825,148 438,195 12.9% Dollars by Category Salary & Benefits Healthcare 128,784 120,239 155,397 149,509 (5,889)(3.8)% Other Benefits 81,506 80,307 71,484 82,244 10,760 15.1% Pension 424,196 451,560 621,851 644,484 22,634 3.6% Retiree Medical 152,481 115,560 119,026 120,593 1,567 1.3% Salary 1,452,038 1,576,263 1,764,909 1,816,821 51,913 2.9% Workers' Compensation —42,882 60,951 63,420 2,469 4.1% Total Salary & Benefits 2,239,004 2,386,811 2,793,619 2,877,071 83,453 3.0% Allocated Charges 123,759 150,152 138,831 137,223 (1,607)(1.2)% Contract Services 910,987 1,063,494 372,301 728,650 356,349 95.7% Facilities & Equipment —1,545 1,000 1,000 ——% General Expense 13,709 30,831 52,642 52,642 ——% Operating Transfers-Out —24,857 ————% Rents & Leases 1,265 1,245 2,130 2,130 ——% Supplies & Material 18,725 17,157 26,432 26,432 ——% Total Dollars by Expense Category 3,307,450 3,676,092 3,386,954 3,825,148 438,195 12.9% Revenues Charges for Services ——28,052 28,052 ——% Charges to Other Funds 1,063,627 1,001,904 704,051 1,578,427 874,375 124.2% Other Revenue 16,000 2,015 10,789 10,789 ——% Total Revenues 1,079,627 1,003,919 742,892 1,617,268 874,375 117.7% CITY ATTORNEY CITY ATTORNEY • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 119 Positions by Division Administration 1.47 1.47 1.47 1.47 ——% Consultation and Advisory 7.31 6.46 6.46 6.46 ——% Litigation and Dispute Resolution 1.86 1.71 1.71 1.71 ——% Official and Administration Duties 0.36 0.36 0.36 0.36 ——% Total 11.00 10.00 10.00 10.00 ——% Staffing Job Classification FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Salary Assistant City Attorney 3.00 3.00 3.00 3.00 —596,024 Chief Assistant City Attorney 1.00 1.00 1.00 1.00 —254,405 City Attorney 1.00 1.00 1.00 1.00 —313,414 Claims Investigator 1.00 1.00 1.00 1.00 —84,989 Deputy City Attorney 1.00 1.00 1.00 1.00 —142,938 Legal Fellow 1.00 1.00 1.00 1.00 —104,416 Secretary to City Attorney 1.00 1.00 1.00 1.00 —77,792 Senior Legal Secretary 1.00 ————— Senior Management Analyst 1.00 1.00 1.00 1.00 —116,189 Sub-total: Full-Time Equivalent Positions 11.00 10.00 10.00 10.00 —1,690,166 Total Positions 11.00 10.00 10.00 10.00 —1,690,166 Budget Summary FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % CITY ATTORNEY 120 CITY ATTORNEY • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Budget Reconciliation Positions Expenditures Revenues Net General Fund Prior Year Budget 10.00 3,386,954 742,893 2,644,061 One-Time Prior Year Budget Adjustments None One-Time Prior Year Budget Adjustments Adjustments to Costs of Ongoing Activities Salary and Benefits Adjustments — 80,984 — 80,984 General Fund Cost Allocation Plan — — 874,375 (874,375) Contract Services — 256,349 — 256,349 Information Technology Allocated Charges — (8,574) — (8,574) Liability Insurance Allocated Charges — 5,920 — 5,920 Printing & Mailing Services Allocated Charges — 1,047 — 1,047 Workers' Compensation Allocated Charges — 2,469 — 2,469 Adjustments to Costs of Ongoing Activities —338,195 874,375 (536,181) Total FY 2021 Base Budget 10.00 3,725,148 1,617,268 2,107,880 Budget Adjustments 1 Shift City Attorney's Contingency Funds to City Attorney's Budget (From Non-Departmental)— 100,000 — 100,000 Total Budget Adjustments —100,000 —100,000 Total FY 2021 Proposed Budget 10.00 3,825,148 1,617,268 2,207,880 CITY ATTORNEY CITY ATTORNEY • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 121 Budget Adjustments Budget Adjustments Positions Expenditures Revenues Net General Fund 1 Shift City Attorney's Contingency Funds to City Attorney's Budget (From Non-Departmental)0.00 100,000 0 100,000 This ongoing action shifts the City Attorney's contingency funds into the City Attorney's budget. This funding alignment will streamline operations and decrease administrative work associated with the movement of authorized funding to the City Attorney's departmental budget. This change does not result in any increased cost, it is a technical adjustment. (Ongoing costs: $100,000) Performance Results This action aligns the contingency funding with the correct department and will decrease administrative work and increase efficiency. CITY AUDITOR CITY AUDITOR • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 123 CITY AUDITORMission Statement The mission of the Office of the City Auditor is to promote honest, efficient, effective, economical, fully accountable, and transparent City government. Purpose The purpose of the Office of the City Audi- tor is to conduct internal audits and exam- inations of any City department, program, service, activity, or fiscal transaction to provide the City Council and City manage- ment with information and evaluations regarding the effectiveness and efficiency with which City resources are employed, the adequacy of the system of internal controls, and compliance with City policies and procedures and regulatory requirements. In addition, the City Auditor’s Office ensures that City depart- ments and officers responsible for accounting and financial management activ- ities comply with statutory requirements and accounting standards, and provides other analyses of financial and operating data as directed by the City Council. CITY AUDITOR 124 CITY AUDITOR • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET ĂċĀĀƫ!*%+.ƫ!."+.)*!ƫ1 %0+.ƫ FY 20Ăā POSITION TOTALSƫ ă.00 - Full-time This organizational chart represents citywide Full-Time Equivalents (FTEs) for this department. The Department Summary tables summarize FTEs by position allocation. CITY AUDITORƫ CITY AUDITOR CITY AUDITOR • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 125 Description The Office of the City Auditor (OCA) conducts performance audits and reviews of City departments, programs, and services. Performance audits provide the City Council, City management, and public with independent and objective information regarding the economy, efficiency, and effectiveness of City programs and activities. Each fiscal year, the OCA presents an annual audit work plan for City Council approval. The OCA will continue to report quarterly to the City Council on the status of audit projects and the recommendations made as a result of those audits. The OCA contracts with an independent certified public accountant for the City’s annual external financial audit. The OCA also conducts and coordinates revenue monitoring of sales and use tax. CITY AUDITOR 126 CITY AUDITOR • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Budget Summary FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % Dollars by Division Audit Services 1,233,315 1,192,633 1,235,450 1,057,042 (178,409)(14.4)% Total 1,233,315 1,192,633 1,235,450 1,057,042 (178,409)(14.4)% Dollars by Category Salary & Benefits Healthcare 31,468 42,958 51,724 45,498 (6,226)(12.0)% Other Benefits 33,253 27,655 24,144 23,826 (318)(1.3)% Pension 173,254 151,515 202,989 178,762 (24,227)(11.9)% Retiree Medical 36,399 44,844 46,189 47,189 999 2.2% Salary 613,045 522,842 577,387 505,017 (72,370)(12.5)% Workers' Compensation —17,129 24,256 25,239 982 4.1% Total Salary & Benefits 887,418 806,944 926,690 825,530 (101,159)(10.9)% Allocated Charges 60,540 64,516 63,501 60,252 (3,249)(5.1)% Contract Services 248,993 299,786 228,000 155,000 (73,000)(32.0)% General Expense 33,817 10,681 14,279 13,279 (1,000)(7.0)% Operating Transfers-Out —9,505 ————% Supplies & Material 2,547 1,201 2,980 2,980 ——% Total Dollars by Expense Category 1,233,315 1,192,633 1,235,450 1,057,042 (178,409)(14.4)% Revenues Charges to Other Funds 363,802 318,326 1,012,636 965,884 (46,752)(4.6)% Sales Taxes 470,263 189,256 150,000 —(150,000)(100.0)% Total Revenues 834,065 507,582 1,162,636 965,884 (196,752)(16.9)% Positions by Division Audit Services 5.00 4.00 4.00 3.00 (1.00)(25.00)% Total 5.00 4.00 4.00 3.00 (1.00)(25.00)% CITY AUDITOR CITY AUDITOR • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 127 Staffing Job Classification FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Salary City Auditor 1.00 1.00 1.00 1.00 —195,042 Performance Auditor I 1.00 1.00 ———— Performance Auditor II 1.00 1.00 2.00 —(2.00)— Senior Performance Auditor 2.00 1.00 1.00 2.00 1.00 274,808 Sub-total: Full-Time Equivalent Positions 5.00 4.00 4.00 3.00 (1.00)469,850 Total Positions 5.00 4.00 4.00 3.00 (1.00)469,850 CITY AUDITOR 128 CITY AUDITOR • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Budget Reconciliation Positions Expenditures Revenues Net General Fund Prior Year Budget 4.00 1,235,450 1,162,636 72,814 One-Time Prior Year Budget Adjustments None One-Time Prior Year Budget Adjustments Adjustments to Costs of Ongoing Activities Salary and Benefits Adjustments — 34,314 — 34,314 General Fund Cost Allocation Plan — — (46,752) 46,752 Contract Services — 4,000 — 4,000 Information Technology Allocated Charges — (5,228) — (5,228) Liability Insurance Allocated Charges — 2,372 — 2,372 Printing & Mailing Services Allocated Charges — (393) — (393) Workers' Compensation Allocated Charges — 982 — 982 Adjustments to Costs of Ongoing Activities —36,047 (46,752)82,799 Total FY 2021 Base Budget 4.00 1,271,497 1,115,884 155,613 Budget Adjustments 1 Reclassification of 1.0 FTE Performance Auditor II to 1.0 FTE Senior Performance Auditor — 57,555 — 57,555 2 Tax Compliance and National Citizens Survey (Transfer from City Auditor to Administrative Services and City Managers' Office) — (77,000) (150,000) 73,000 3 Reallocate 1.0 FTE Performance Auditor II to Administrative Services for Performance Report (1.00) (195,011) — (195,011) Total Budget Adjustments (1.00)(214,456)(150,000)(64,456) Total FY 2021 Proposed Budget 3.00 1,057,042 965,884 (91,157) CITY AUDITOR CITY AUDITOR • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 129 Budget Adjustments Budget Adjustments Positions Expenditures Revenues Net General Fund 1 Reclassification of 1.0 FTE Performance Auditor II to 1.0 FTE Senior Performance Auditor 0.00 57,555 0 57,555 This ongoing action reclassifies a 1.0 FTE Performance Auditor II to a 1.0 FTE Senior Performance Auditor. This will align staffing with current workload needs. (Ongoing costs: $60,000) Performance Results This action aligns the duties of this position with the correct classification and will ensure clear communication and efficient audit support. 2 Tax Compliance and National Citizens Survey (Transfer from City Auditor to Administrative Services and City Managers' Office) 0.00 (77,000)(150,000)73,000 This ongoing action moves tax compliance service expenses ($50,000) and estimated revenues ($150,000) to the Administrative Services Department and the National Citizen Survey function and expenses ($27,000) to the City Manager's Office. The Administrative Services Department handles similar tax services and is best suited for tax analysis and compliance. The City Manager’s Office leads existing initiatives in citywide data gathering and assessment to ensure the City of Palo Alto services are accurately and meaningfully benchmarked against other similar jurisdictions, and is best suited to take on the National Citizen Survey function. A corresponding action is recommended in the Administrative Services Department and City Manager’s Office. (Ongoing savings: $73,000) Performance Results This action aligns the duties and associated funding of the City Auditor's Office, the Administrative Services Department, and the City Manager's Office. CITY AUDITOR 130 CITY AUDITOR • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 3 Reallocate 1.0 FTE Performance Auditor II to Administrative Services for Performance Report (1.00)(195,011)0 (195,011) This ongoing action reallocates 1.0 FTE Performance Auditor II from the City Auditor's Office to the Administrative Services Department, Office of Management and Budget (OMB). The move of this position will increase workload capacity and allow OMB to produce the City’s annual Performance Report which was produced by the Auditor’s Office in prior years. The City’s performance measure data for both the Operating Budget document and the annual Performance Report is stored in the City’s budget production software database, so this action will align the City’s performance reporting within OMB. A corresponding action is recommended in the Administrative Services Department. (Ongoing savings: $195,011) Performance Results This action aligns the duties of the City Auditor's Office and the Administrative Services Department. Budget Adjustments Budget Adjustments Positions Expenditures Revenues Net General Fund CITY CLERK CITY CLERK • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 131 CITY CLERKMission Statement The City Clerk’s Office promotes transparency and public engagement through coordinating the legislative process, records management, elections, and public records requests; supporting the Mayor and City Council; and acting as a liaison between the City Council and the public. Purpose The purpose of the City Clerk’s Office is to provide prompt, high quality public service by connecting the public with the legisla- tive process; ensuring the City’s legislative processes are open and transparent through friendly customer service, knowledgeable staff, and easily accessible technology; administering elections; facilitating the preservation of Palo Alto’s legislative history, including approved action minutes; coordinating public records requests, claims against the City, applications for boards and commis- sions, and updates and maintenance of City Ordinances and the Municipal Code; providing access to legislative meeting information; and coordinating Statements of Economic Interest as well as campaign and other financial disclo- sure related filings. CITY CLERK 132 CITY CLERK • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET FY 20Ăā POSITION TOTALSƫ 5.ĀĀ - Full-time This organizational chart represents citywide Full-Time Equivalents (FTEs) for this department. The Department Summary tables summarize FTEs by position allocation. 1.00 Assistant City Clerk 2.00 Administrative Associate III 1.00 Deputy City Clerk CITY CLERK Beth Minor CITY CLERK CITY CLERK • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 133 Description The City Clerk’s Office provides a wide range of public services including: supporting the City Council, City staff, and public by providing copies of agendas and associated reports; posting and publishing legal notices and scheduling public hearings; transcribing meeting minutes; recording Ordinances and Resolutions; engaging in records management, elections, and board and commission recruitments; and processing public records requests. CITY CLERK 134 CITY CLERK • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Budget Summary FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % Dollars by Division Administration 145,167 497,654 562,057 660,666 98,609 17.5% Administrative Citations 79,118 55,363 85,634 80,193 (5,441)(6.4)% Council Support Services 660,249 384,715 514,672 442,388 (72,285)(14.0)% Election/Conflict of Interest 110,879 109,186 120,772 125,203 4,432 3.7% Legislative Records Management 90,769 57,457 62,687 66,151 3,464 5.5% Public Information 84,626 ————(100.0)% Total 1,170,808 1,104,374 1,345,822 1,374,602 28,780 2.1% Dollars by Category Salary & Benefits Healthcare 37,875 33,391 37,961 48,361 10,400 27.4% Other Benefits 18,649 19,349 22,401 26,023 3,622 16.2% Overtime 2,586 3,842 7,048 7,232 183 2.6% Pension 139,312 145,547 191,630 196,199 4,569 2.4% Retiree Medical 84,602 40,532 41,748 41,945 197 0.5% Salary 474,887 488,284 539,752 551,392 11,640 2.2% Workers' Compensation 10,353 16,186 21,804 22,687 883 4.1% Total Salary & Benefits 768,264 747,131 862,344 893,839 31,494 3.7% Allocated Charges 151,503 144,826 159,999 155,683 (4,316)(2.7)% Contract Services 195,124 143,007 254,346 254,346 ——% General Expense 46,440 56,857 62,640 64,241 1,601 2.6% Operating Transfers-Out —8,510 ————% Supplies & Material 9,475 4,044 6,493 6,493 ——% Total Dollars by Expense Category 1,170,808 1,104,374 1,345,822 1,374,602 28,780 2.1% Revenues Charges for Services 6 135 2,043 2,043 ——% Charges to Other Funds 352,022 290,532 671,548 647,391 (24,157)(3.6)% Other Revenue 354 524 3,143 3,143 ——% Total Revenues 352,382 291,192 676,734 652,577 (24,157)(3.6)% CITY CLERK CITY CLERK • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 135 Positions by Division Administration 0.35 2.85 2.85 2.85 ——% Administrative Citations 1.23 0.48 ————% Council Support Services 2.85 1.30 1.30 1.30 ——% Election/Conflict of Interest 0.65 0.55 0.55 0.55 ——% Legislative Records Management 0.50 0.30 0.30 0.30 ——% Public Information 0.65 —————% Total 6.23 5.48 5.00 5.00 ——% Staffing Job Classification FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Salary Administrative Associate III 2.00 2.00 2.00 2.00 —168,064 Assistant City Clerk 1.00 1.00 1.00 1.00 —117,229 City Clerk 1.00 1.00 1.00 1.00 —159,182 Deputy City Clerk 1.00 1.00 1.00 1.00 —86,944 Hearing Officer 0.75 ————— Sub-total: Full-Time Equivalent Positions 5.75 5.00 5.00 5.00 —531,419 Temporary/Hourly 0.48 0.48 ———— Total Positions 6.23 5.48 5.00 5.00 —531,419 Budget Summary FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % CITY CLERK 136 CITY CLERK • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Budget Reconciliation Positions Expenditures Revenues Net General Fund Prior Year Budget 5.00 1,345,822 676,734 669,088 One-Time Prior Year Budget Adjustments None One-Time Prior Year Budget Adjustments Adjustments to Costs of Ongoing Activities Salary and Benefits Adjustments — 30,611 — 30,611 Association Membership Fees — 1,602 — 1,602 General Fund Cost Allocation Plan — — (24,157) 24,157 Information Technology Allocated Charges — (3,230) — (3,230) Liability Insurance Allocated Charges — 2,132 — 2,132 Printing & Mailing Services Allocated Charges — (3,218) — (3,218) Workers' Compensation Allocated Charges — 883 — 883 Adjustments to Costs of Ongoing Activities —28,779 (24,157)52,937 Total FY 2021 Proposed Budget 5.00 1,374,602 652,577 722,025 CITY COUNCIL CITY COUNCIL • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 137 CITY COUNCILMission Statement The City Council’s mission is to develop an overall vision for the community as a whole. Purpose The City Council is responsible for the scope, direction, and financing of City ser- vices; establishing policy based on infor- mation provided by staff, advisory boards and commissions, and the general public; and implementing policy through staff under the Council-Manager form of gov- ernment. CITY COUNCIL 138 CITY COUNCIL • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Description Under the Council-Manager form of government, the City Council is responsible for the legislative functions of the City such as establishing policies and priorities, developing an overall vision, and approving the annual spending plan for the City. The terms of the Mayor and the Vice- Mayor are one year, expiring at the first meeting in January. The terms of Council members are four years, and the General Municipal Election is held in even-numbered years on the first Tuesday after the first Monday in November. CITY COUNCIL CITY COUNCIL • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 139 Budget Summary FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % Dollars by Division City Council Operations 475,912 370,419 498,261 473,822 (24,440)(4.9)% Total 475,912 370,419 498,261 473,822 (24,440)(4.9)% Dollars by Category Salary & Benefits Healthcare 111,678 90,338 136,904 111,526 (25,378)(18.5)% Other Benefits 8,158 8,023 5,729 6,022 293 5.1% Pension 21,743 18,774 32,634 32,851 218 0.7% Retiree Medical 87,553 49,156 50,631 51,558 927 1.8% Salary 108,014 96,474 84,000 84,000 ——% Workers' Compensation —3,076 5,331 5,547 216 4.1% Total Salary & Benefits 337,148 265,842 315,228 291,504 (23,724)(7.5)% Allocated Charges 15,871 18,007 17,149 16,433 (716)(4.2)% Contract Services 80,460 43,233 108,000 108,000 ——% General Expense 41,020 39,877 54,955 54,955 ——% Operating Transfers-Out —1,686 ————% Supplies & Material 1,414 1,775 2,930 2,930 ——% Total Dollars by Expense Category 475,912 370,419 498,261 473,822 (24,440)(4.9)% Revenues Charges to Other Funds 138,473 103,376 94,792 155,566 60,774 64.1% Total Revenues 138,473 103,376 94,792 155,566 60,774 64.1% Positions by Division City Council Operations 9.00 7.00 7.00 7.00 ——% Total 9.00 7.00 7.00 7.00 ——% CITY COUNCIL 140 CITY COUNCIL • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Staffing Job Classification FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Salary City Council 9.00 7.00 7.00 7.00 —84,000 Sub-total: Full-Time Equivalent Positions 9.00 7.00 7.00 7.00 —84,000 Total Positions 9.00 7.00 7.00 7.00 —84,000 CITY COUNCIL CITY COUNCIL • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 141 Budget Reconciliation Positions Expenditures Revenues Net General Fund Prior Year Budget 7.00 498,261 94,792 403,469 One-Time Prior Year Budget Adjustments None One-Time Prior Year Budget Adjustments Adjustments to Costs of Ongoing Activities Salary and Benefits Adjustments — (23,940) — (23,940) General Fund Cost Allocation Plan — — 60,774 (60,774) Liability Insurance Allocated Charges — 522 — 522 Information Technology Allocated Charges — (1,237) — (1,237) Workers' Compensation Allocated Charges — 216 — 216 Adjustments to Costs of Ongoing Activities —(24,439)60,774 (85,213) Total FY 2021 Proposed Budget 7.00 473,822 155,566 318,256 CITY MANAGER CITY MANAGER • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 143 CITY MANAGERMission Statement The City Manager’s Office provides leadership and professional management to the City government organization and works with the City Council to develop and implement its policies to maintain and enhance Palo Alto’s quality of life. Purpose The City Manager’s Office adheres to guid- ing values that emphasize community, stewardship, and public service. CITY MANAGER 144 CITY MANAGER • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET SUPPORTƫ āċĀĀƫƫƫ4!10%2!ƫ//%/0*0ƫ0+ƫ0$!ƫ ƫƫƫƫƫƫƫƫ%05ƫ *#!. ĂċĀĀƫƫ )%*%/0.0%2!ƫ//%/0*0 OPERATIONS CITY MANAGERƫ FY 20Ăā POSITION TOTALSƫ ĂĆ.ĀĀ - Full-time Āċąĉƫġƫ+1.(5ƫƫ This organizational chart represents citywide Full-Time Equivalents (FTEs) for this department. The Department Summary tables summarize FTEs by position allocation. āċĀĀƫƫƫssistant City Manager āċĀĀƫƫƫ!,105ƫ%05ƫ *#!. ĂċĀĀƫƫ//%/0*0ƫ0+ƫ0$!ƫ%05ƫ *#!. COMMUNICATIONS 1.00 Chief Communications Officerƫ 1.00 Communications Manager ƫ$%' ƫƫ ĵ āĆċĀĀƫƫ1((ġ0%)! ĵƫ !0%(! ƫ.!' +3*ƫ+"ƫ0$!ƫ+.#*%60%+*(ƫ/0.101.!ƫ+"ƫ0$!ƫ""%!ƫ+"ƫ.*/,+.00%+*ƫ%/ƫ%*(1 ! ƫ(0!.ƫ%*ƫ0$%/ƫ/!0%+*ċ CITY MANAGER CITY MANAGER • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 145 Description The City Manager’s Office provides strategic leadership and guidance to the City operations and services for the City of Palo Alto through the following areas (including incubation of new programs): FACILITATE CITY COUNCIL LEGISLATIVE ACTIONS The City Council sets policy direction for the City of Palo Alto and confers that direction through legislative actions. To support the Council’s work, the City Manager’s Office (CMO) pre- pares City Manager Reports, including analysis and recommended Council action, and imple- ments Council actions. The CMO acts on priorities identified by the City Council during the annual Council Retreat and Council-initiated policies or programs. The CMO also engages other governments through participation in regional, statewide, and national organizations, and directs state and federal legislative advocacy efforts on behalf of the City. MANAGE SPECIAL INTERDEPARTMENTAL PROJECTS Each year, the City tackles special projects that, due to their scale and scope, require immense interdepartmental coordination, community outreach, and engagement with neighboring com- munities and public agencies. The CMO takes responsibility for managing these special projects in order to ensure efficient and effective coordination, implementation, and to achieve the City’s goals. Some projects may be planned and identified as Council priorities, such as grade separa- tion, and others may arise as the City responds to unfolding events and community concerns. DIRECT AND COORDINATE DEPARTMENT OPERATIONS The CMO provides strategic leadership and guidance to City’s executive leadership team to ensure the provision of high-quality, cost-effective, and focused services throughout Palo Alto. The CMO ensures City operations demonstrate transparency and fiduciary responsibility to the public. In this capacity, the CMO also provides timely, accurate, and results-oriented financial and operational reports. Through the budget and development of citywide business plans, the CMO ensures resources are allocated to the Council’s policies and priorities. SUPPORT A PRODUCTIVE AND HEALTHY WORKFORCE The CMO maintains a highly qualified, engaged, and effective workforce to successfully attain the City’s goals and objectives. To that end, the CMO cultivates a strong service culture and pro- vides ongoing, informative communications to City employees regarding key objectives, chal- lenges, and accomplishments. As vacancies occur within the organization, the CMO provides support to maintain service delivery. In addition, the CMO mentors junior and senior staff, devel- oping a pipeline of qualified managers within the organization. COORDINATE COMMUNICATIONS & COMMUNITY ENGAGEMENT Palo Alto stands out as a well-informed and engaged community. The CMO builds on this strength by proactively communicating public information, creating and supporting community partnerships, and facilitating citizen involvement in order to develop mutual understanding and support between City government and constituents. The CMO achieves this by supporting new CITY MANAGER 146 CITY MANAGER • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET community engagement efforts, such as Cool Block, while also promoting best communication practices throughout the City. In addition, communications staff respond to requests from media and the public, broadcast information on a range of platforms, and assist departments in their communication activities. FACILITATE BUSINESS ENGAGEMENT & ECONOMIC VITALITY The CMO maintains collaborative relationships with businesses and residents to facilitate desired economic activity. Local and regional associations serve as leaders and partners in this endeavor; accordingly, the City Manager assigns staff to these organizations. The CMO acts as an ombudsman for the City, connecting business with appropriate departments, answering questions, and addressing issues that arise. In addition, the CMO leads Palo Alto’s participation in Sister Cities, creating meaningful connections with cities around the world and integrating technology into our everyday operations. LEAD TRANSPORTATION & TRAFFIC IMPROVEMENTS The newly created Office of Transportation (OOT), situated within the City Manager’s Office, was established in recognition of the scale, complexity, and level of citizen engagement related to transportation. The Office was created to improve the safety of the users of all modes of transportation, reduce reliance on single-occupancy vehicles, address congestion, and reduce through traffic and non-resident parking in Palo Alto neighborhoods, leading to an integrated transportation system that serves local, regional, and intercity travel. CITY MANAGER CITY MANAGER • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 147 Budget Summary FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % Dollars by Division Administration and City Management 2,777,772 2,917,905 3,543,655 3,341,747 (201,908)(5.7)% Economic Development 163,802 41,253 111,447 26,393 (85,055)(76.3)% Public Communication 287,076 234,988 257,136 265,655 8,519 3.3% Sustainability 487,332 692,445 635,564 —(635,564)(100.0)% Total 3,715,982 3,886,591 4,547,803 3,633,795 (914,008)(20.1)% Dollars by Category Salary & Benefits Healthcare 182,623 179,667 220,033 212,172 (7,861)(3.6)% Other Benefits 127,634 110,832 71,067 76,036 4,969 7.0% Overtime 210 —————% Pension 489,601 490,421 700,537 662,230 (38,307)(5.5)% Retiree Medical 131,822 126,770 130,574 122,747 (7,827)(6.0)% Salary 1,846,341 1,821,458 1,986,232 1,871,175 (115,057)(5.8)% Workers' Compensation 5,188 42,653 69,863 67,621 (2,242)(3.2)% Total Salary & Benefits 2,783,419 2,771,802 3,178,306 3,011,981 (166,325)(5.2)% Allocated Charges 175,155 175,508 203,839 185,445 (18,395)(9.0)% Contract Services 532,169 764,712 1,074,935 338,185 (736,750)(68.5)% General Expense 212,202 134,197 77,641 88,391 10,750 13.8% Operating Transfers-Out 2,039 31,999 2,039 —(2,039)(100.0)% Rents & Leases 54 45 154 154 ——% Supplies & Material 10,945 8,329 10,889 9,639 (1,250)(11.5)% Total Dollars by Expense Category 3,715,982 3,886,591 4,547,803 3,633,795 (914,008)(20.1)% Revenues Charges to Other Funds 1,205,312 971,893 1,702,712 1,549,472 (153,240)(9.0)% From Other Agencies 42,374 340,807 260,000 —(260,000)(100.0)% Other Revenue 16,487 —————% Total Revenues 1,264,173 1,312,699 1,962,712 1,549,472 (413,240)(21.1)% CITY MANAGER 148 CITY MANAGER • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Positions by Division Administration and City Management 9.35 9.35 9.10 9.10 ——% Public Communication 0.90 0.90 0.90 0.90 ——% Sustainability 1.96 1.75 0.75 —(0.75)(100.00)% Total 12.21 12.00 10.75 10.00 (0.75)(6.98)% Staffing Job Classification FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Salary Administrative Assistant 1.00 1.00 2.00 2.00 —178,621 Administrative Associate III 1.00 1.00 ———— Assistant City Manager ——1.00 1.00 —256,838 Assistant City Manager/Utilities General Manager 0.25 0.25 ———— Assistant to the City Manager 2.00 2.00 2.00 2.00 —314,870 Chief Communications Officer 1.00 1.00 1.00 1.00 —180,003 Chief Sustainability Officer 1.00 1.00 ———— City Manager 1.00 1.00 1.00 1.00 —356,013 Deputy City Manager 2.00 2.00 1.00 1.00 —220,542 Executive Assistant to the City Manager 1.00 1.00 1.00 1.00 —107,328 Management Analyst —0.75 0.75 —(0.75)— Manager Communications 1.00 1.00 1.00 1.00 —126,360 Sub-total: Full-Time Equivalent Positions 11.25 12.00 10.75 10.00 (0.75)1,740,576 Temporary/Hourly 0.96 ————— Total Positions 12.21 12.00 10.75 10.00 (0.75)1,740,576 Budget Summary FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % CITY MANAGER CITY MANAGER • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 149 Budget Reconciliation Positions Expenditures Revenues Net General Fund Prior Year Budget 10.75 4,547,803 1,962,712 2,585,091 Base Adjustments One-Time Prior Year Budget Adjustments Recruitment and Retention Initiatives — (250,000) — (250,000) Contractural Funding for Office of Sustainability — (100,000) — (100,000) Economic Development Funding — (72,000) — (72,000) One-Time Prior Year Budget Adjustments —(422,000)—(422,000) Adjustments to Costs of Ongoing Activities Salaries and Benefits Adjustments — 473 — 473 Office of Sustainability Transition to Public Works (0.75) (263,994) (118,751) (145,243) Federal Transit Administration (FTA) Grant Completion — (260,000) (260,000) — Contract Services — (7,000) — (7,000) Transfer to Electric Fund for Canopy Contract — (2,039) — (2,039) General Fund Cost Allocation Plan — — (34,489) 34,489 City Manager Relocation Expense Reimbursement — 24,000 — 24,000 Information Technology Department Allocated Charges — (12,531) — (12,531) Liability Insurance Allocated Charges — 4,170 — 4,170 Printing & Mailing Allocated Charges — (10,033) — (10,033) Workers' Compensation Allocated Charges — 7,946 — 7,946 Adjustments to Costs of Ongoing Activities (0.75)(519,009)(413,240)(105,768) Total FY 2021 Base Budget 10.00 3,606,795 1,549,472 2,057,323 Budget Adjustments 1 National Citizens Survey (Transfer from City Auditor to City Managers' Office)— 27,000 — 27,000 Total Budget Adjustments —27,000 —27,000 Total FY 2021 Proposed Budget 10.00 3,633,795 1,549,472 2,084,323 CITY MANAGER 150 CITY MANAGER • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Budget Adjustments Budget Adjustments Positions Expenditures Revenues Net General Fund 1 National Citizens Survey (Transfer from City Auditor to City Managers' Office)0.00 27,000 0 27,000 This ongoing action moves the National Citizen Survey function and expenses ($27,000) to the City Manager's Office. The City Manager’s Office leads existing initiatives in citywide data gathering and assessment to ensure the City of Palo Alto services are accurately and meaningfully benchmarked against other similar jurisdictions, and is best suited to take on the National Citizen Survey function. A corresponding action is recommended in the City Auditor’s Office. (Ongoing costs: $27,000) Performance Results This action aligns the duties and associated funding of the City Auditor's Office and the City Manager's Office. CITY MANAGER CITY MANAGER • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 151 OFFICE OF TRANSPORTATION Mission Statement The Office of Transportation’s mission is to preserve and enhance the quality of life for Palo Alto residents, visitors, and businesses by providing efficient and cost-effective transportation services for all modes of transportation. Purpose The purpose of the Office of Transporta- tion is to improve the safety of the users of all modes of transportation, reduce reli- ance on single-occupancy vehicles, address congestion, and reduce through traffic and non-resident parking in Palo Alto neighborhoods, leading to an integrated transportation system that serves local, regional, and intercity travel. CITY MANAGER 152 CITY MANAGER • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET ƫĂĀĂāƫ ƫƫ āĆ.00 - Full-time 0ċąĉ - Hourly This organizational chart represents citywide Full-Time Equivalents (FTEs) for this department. The Department Summary tables summarize FTEs by position allocation. $%!"ƫ.*/,+.00%+*ƫ""%%( $%(%,ƫ)$%ƫƫ )%*%/0.0%+* āċĀĀƫ *#!)!*0ƫ*(5/0 āċĀĀƫ )%*%/0.0%2!ƫ//%/0*0ƫ +%(%05ƫ(**%*# āċĀĀƫƫ.*/,+.00%+*ƫ(**%*# ƫƫƫƫƫƫƫ *#!. āċĀĀƫƫ!*%+.ƫ.*/,+.00%+* ƫƫƫƫƫƫƫ(**!.ƫ āċĀĀƫƫ//+%0!ƫ(**!. ĂċĀĀƫƫ"!ƫ+10!/ƫ0+ƫ$++( ƫƫƫƫƫƫƫ++. %*0+./ .'%*#ƫĒƫ$100(!ƫ *#!)!*0ƫ āċĀĀƫƫ.*/,+.00%+*ƫ(**%*#ƫƫ ƫƫƫƫƫƫ *#!. āċĀĀƫƫ.'%*#ƫ,!.0%+*/ƫġƫ! ƫ *#%*!!.%*# āċĀĀƫ!*%+.ƫ*#%*!!.ƫ āċĀĀƫ.""%ƫ,!.0%+*/ƫġƫ! ƫ ĂċĀĀƫ.+&!0ƫ*#%*!!. āċĀĀƫ//+%0!ƫ*#%*!!. CITY MANAGER CITY MANAGER • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 153 Description The Office of Transportation (OOT) was established in recognition of the scale, complexity, and level of citizen engagement related to transportation. High-profile issues include the separation of at-grade rail crossings, neighborhood traffic safety and bike boulevards, permit parking, traffic mitigation, and the safety of vulnerable road users. The Office is responsible for mobility, engineering, and parking in coordination with other City departments and agencies (such as Valley Transportation Authority, Caltrain, Metropolitan Transportation Commission, California Public Utilities Commission, Palo Alto Unified School District and neighboring cities) through the following programs: MOBILITY Responsible for sustainable transportation systems that aim to reduce traffic congestion and auto emissions through increased pedestrian, bicycle, public transportation use, and other alter- native modes of transportation. Programs include: Bicycle and Pedestrian - This program includes the discrete capital improvement projects and the programmatic elements needed to implement goals of the Palo Alto Bicycle & Pedestrian Transportation Plan, including the Neighborhood Traffic Safety & Bicycle Boulevard project. This program also provides staffing to the Pedestrian and Bicycle Advisory Committee (PABAC). Palo Alto Shuttle - This program provides free shuttle services on two different routes - one from Downtown to the Baylands Business Park and the other from Downtown to South Palo Alto. Safe Routes to School - In partnership with the Palo Alto Unified School District (PAUSD) and Palo Alto PTA, this program aims to reduce risk, and educate and encourage more families to safely walk, bicycle, bus, and carpool to school. It also includes the development of capital improvement projects to provide safer routes to schools. PARKING Plan, develop, and administer the Residential Permit Parking (RPP) program, parking in the City’s garages and lots, and on-street parking in business districts. ENGINEERING Oversee the City’s traffic and transportation infrastructure investments through long- and short- range plans, corridor plans, traffic studies, and review of proposed private developments; transportation demand management initiatives; traffic impact fees; and regional coordination. Projects include: CITY MANAGER 154 CITY MANAGER • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Rail Grade Separations: This is a monumental capital improvement to improve safety at existing railroad crossings. This project will span more than a decade to complete planning, environmen- tal review, design, and construction. Traffic Operations & Capital Improvement Projects: These projects include the monitoring, oper- ations, and modifications of the traffic system; investigation and response to citizen inquiries; and development of plans and funding for capital improvement projects that provide enhanced safety and relieve traffic congestion. CITY MANAGER CITY MANAGER • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 155 Budget Summary FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % Dollars by Division Administration 261,621 473,466 624,274 693,552 69,278 11.1% Engineering and Planning 606,628 499,205 532,481 514,548 (17,933)(3.4)% Programs 796,624 861,232 1,155,380 1,227,533 72,153 6.2% Total 1,664,873 1,833,902 2,312,134 2,435,633 123,499 5.3% Dollars by Category Salary & Benefits Healthcare 67,804 50,920 121,341 106,652 (14,689)(12.1)% Other Benefits 12,328 11,358 24,821 30,715 5,894 23.7% Overtime 1,459 2,897 7,597 7,795 198 2.6% Pension 125,212 116,288 295,707 309,852 14,146 4.8% Retiree Medical 58,534 74,971 77,220 82,849 5,629 7.3% Salary 461,605 431,343 854,147 853,792 (355)—% Workers' Compensation —15,948 17,523 24,620 7,097 40.5% Total Salary & Benefits 726,942 703,726 1,398,355 1,416,276 17,920 1.3% Allocated Charges 121,435 133,778 —94,578 94,578 —% Contract Services 624,852 754,971 642,779 670,779 28,000 4.4% Facilities & Equipment ——21,000 5,000 (16,000)(76.2)% General Expense 189,595 233,380 244,750 228,750 (16,000)(6.5)% Operating Transfers-Out —7,780 ————% Supplies & Material 2,049 267 5,250 20,250 15,000 285.7% Total Dollars by Expense Category 1,664,873 1,833,902 2,312,134 2,435,633 123,499 5.3% Revenues Operating Transfers-In 128,000 128,000 128,000 128,000 ——% Other Revenue 1,195 —————% Permits and Licenses 33,460 13,332 13,332 13,332 ——% Total Revenues 162,655 141,332 141,332 141,332 ——% CITY MANAGER 156 CITY MANAGER • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Staffing Positions by Division Administration 0.50 0.50 2.18 2.33 0.15 6.4% Engineering and Planning 3.15 2.18 1.70 1.70 ——% Programs 2.20 2.21 2.80 2.80 ——% Total 5.85 4.89 6.68 6.83 0.15 2.25% Job Classification FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Salary Administrative Assistant ——0.50 0.50 —43,680 Administrative Associate III 0.70 0.30 ———— Associate Engineer 0.73 0.65 0.30 0.30 —37,421 Associate Planner —0.24 0.30 0.45 0.15 49,065 Chief Transportation Official 0.37 0.55 0.70 0.70 —133,006 Coordinator Transportation Systems Management 0.88 0.74 1.25 1.25 —139,308 Management Analyst —0.02 0.50 0.50 —55,130 Parking Operations - Lead —0.10 ———— Program Assistant II 0.60 ————— Project Engineer 0.50 0.50 0.45 0.45 —68,047 Senior Engineer ——0.20 0.20 —30,335 Senior Planner 0.15 0.28 0.50 0.50 —67,309 Traffic Engineering-Lead 0.38 0.65 0.35 0.35 —55,692 Transportation Planning Manager 0.20 0.36 1.15 1.15 —170,797 Sub-total: Full-Time Equivalent Positions 4.51 4.39 6.20 6.35 0.15 849,790 Temporary/Hourly 0.53 0.50 0.48 0.48 —30,122 Total Positions 5.04 4.89 6.68 6.83 0.15 879,912 FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % CITY MANAGER CITY MANAGER • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 157 Budget Reconciliation Positions Expenditures Revenues Net General Fund Prior Year Budget 6.68 2,312,134 141,332 2,170,802 One-Time Prior Year Budget Adjustments VMT Estimation Tool (one-time surcharge) — (14,000) — (14,000) One-Time Prior Year Budget Adjustments —(14,000)—(14,000) Adjustments to Costs of Ongoing Activities Salary and Benefits 0.15 10,823 — 10,823 Shuttle Service Contract Funding Alignment — 25,000 — 25,000 Information Technology Allocated Charges — 63,594 — 63,594 Liability Insurance Allocated Charges — 23,630 — 23,630 Printing & Mailing Services Allocated Charges — 7,354 — 7,354 Workers' Compensation Allocated Charges — 7,097 — 7,097 Adjustments to Costs of Ongoing Activities 0.15 137,498 —137,498 Total FY 2021 Proposed Budget 6.83 2,435,633 141,332 2,294,300 ADMINISTRATIVE SERVICES ADMINISTRATIVE SERVICES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 159 ADMINISTRATIVE SERVICESMission Statement The Administrative Services Department strives to provide proactive financial and analytical support to City departments and decision-makers and to safeguard and facilitate the optimal use of City resources. Purpose The purpose of the Administrative Services Department is to provide excellent cus- tomer service to decision-makers, the pub- lic, employees, and City departments; provide analytical, organizational, and administrative support for a wide variety of projects; record, monitor, and protect City assets in a responsible manner; provide essential financial management and forecasting reports; and prepare and present financial reporting to various committees and City Council. ADMINISTRATIVE SERVICES 160 ADMINISTRATIVE SERVICES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET ADMINISTRATIVE SERVICES DIRECTOR/CHIEF FINANCIAL OFFICER %!(5ƫ+/! ADMINISTRATION 1.00 Administrative Assistant 0.50 Senior Management Analyst āċĀĀƫƫƫƫƫ *#!)!*0ƫ*(5/0 INVESTMENT & DEBT 0.60 Manager of Treasury, Debt Investment 0.40 Senior Management Analyst ƫĂĀĂāƫ ƫ 5Ċ.50 Full-Time 1.46 Hourly This organizational chart represents citywide Full-Time Equivalents (FTEs) for this department. The Department Summary tables summarize FTEs by position allocation REAL ESTATE 1.00 Real Property Manager 1.00 Senior Management Analyst 1.00 Assistant Director ACCOUNTING 1.00 Finance Manager GENERAL LEDGER 1.00 Senior Accountant 1.00 Accountant 1.00 Lead Account Specialist ENTERPRISE FUND 1.00 Senior Accountant 1.00 Accountant 1.00 Accountant Specialist ACCOUNTS PAYABLE 1.00 Senior Accountant 1.00 Lead Account Specialist 2.00 Account Specialist PAYROLL 1.00 Senior Accountant 1.00 Accountant 2.00 Payroll Analyst PURCHASING & CONTRACTS 1.00 Chief Procurement Officer 4.00 Contract Administrator 1.00 Administrative Associate II 1.00 Buyer 2.00 Senior Buyer SAP FUNCTIONAL 1.00 Principal Business Analyst 2.00 Senior Business Analyst OFFICE OF MANAGEMENT AND BUDGET 1.00 Director 2.00 Budget Manager 1.00 Administrative Associate III 2.00 Senior Management Analyst āċĀĀƫƫƫƫƫƫ!."+.)*!ƫ1 %0+.ƫ 1.00 Management Analyst 1.00 Assistant Director REVENUE COLLECTIONS 1.00 Manager of Revenue Collections 2.00 Lead Account Specialist 5.50 Account Specialist STORES WAREHOUSE 1.00 Warehouse Supervisor 1.00 Lead Storekeeper 3.00 Storekeeper RISK MANAGEMENT 0.40 Manager of Treasury, Debt & Investment 0.10 Senior Management Analyst PRINT & MAIL SERVICES 2.00 Offset Equipment Operator ADMINISTRATIVE SERVICES ADMINISTRATIVE SERVICES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 161 Description The Administrative Services Department (ASD) is responsible for the following functions: ADMINISTRATION Provides financial, analytical, budget, strategic, and administrative support services for the department and organization. ACCOUNTING Performs financial transactions and provides accurate, timely, and reliable financial information for internal and external customers, including vendor payments, payroll, and financial reporting. PURCHASING AND CONTRACTS Facilitates negotiations, purchasing, and contracting needs in a timely, efficient, and customer- oriented manner. OFFICE OF MANAGEMENT AND BUDGET (OMB) Oversees the citywide operating and capital budget preparation, review, and analysis, perfor- mance measures, and budget monitoring. In addition, prepares the long-range financial forecast and provides independent analytical support to the organization. PROPERTY MANAGEMENT AND ACQUISITION Provides asset management, acquires property rights, manages leasing of City properties, pre- pares real estate agreements, completes easement acquisitions/vacations, negotiates real estate deals, and provides real estate services citywide. TREASURY AND REVENUE COLLECTIONS Treasury safeguards and invests the City’s portfolio, forecasts major General Fund tax revenues, issues and manages debt, and performs Utility Risk Management oversight. Revenue Collec- tions collects payment revenue and provides customer support for parking permits and pay- ment transactions. Provides print shop services to departments and warehouse services, including logistics, for the City’s Electric, Water, Gas, and Wastewater Utilities, as well as for Public Works and the Regional Water Quality Control Plant. ADMINISTRATIVE SERVICES 162 ADMINISTRATIVE SERVICES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Budget Summary FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % Dollars by Fund General Fund-Operating 7,680,331 7,653,228 8,519,330 9,375,006 855,675 10.0% Printing & Mailing Services Fund 1,644,249 1,608,751 1,730,856 1,663,767 (67,088)(3.9)% Total 9,324,580 9,261,979 10,250,186 11,038,773 788,587 7.7% Revenues Charges for Services 13,890 9,077 187,673 191,266 3,592 1.9% Charges to Other Funds 4,090,745 3,679,830 3,186,802 3,536,620 349,818 11.0% Other Revenue 145,266 168,531 171,400 171,400 ——% Return on Investments (1,100)(1,163)2,300 —(2,300)(100.0)% Sales Taxes ———150,000 150,000 —% Total Revenues 4,248,801 3,856,274 3,548,175 4,049,285 501,110 14.1% Positions by Fund General Fund 40.06 39.61 40.61 41.61 1.00 2.46% Printing and Mailing Services 2.10 2.10 2.10 2.10 ——% Total 42.16 41.71 42.71 43.71 1.00 2.34% ADMINISTRATIVE SERVICES ADMINISTRATIVE SERVICES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 163 GENERAL FUND Budget Summary FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % Dollars by Division Accounting 2,154,241 2,360,606 2,517,142 2,715,387 198,246 7.9% Administration 701,429 654,087 362,163 498,277 136,114 37.6% Office of Management and Budget 1,471,554 1,380,332 1,515,138 1,751,002 235,865 15.6% Purchasing 1,561,940 1,441,582 1,719,881 1,789,015 69,135 4.0% Real Estate 567,478 602,957 682,402 688,910 6,508 1.0% Treasury 1,223,689 1,213,665 1,722,605 1,932,413 209,808 12.2% Total 7,680,331 7,653,228 8,519,330 9,375,006 855,675 10.0% Dollars by Category Salary & Benefits Healthcare 659,957 640,224 786,754 785,789 (965)(0.1)% Other Benefits 164,532 152,448 169,450 200,918 31,468 18.6% Overtime 23,104 48,289 35,499 36,422 923 2.6% Pension 1,185,868 1,176,622 1,661,345 1,752,978 91,633 5.5% Retiree Medical 564,670 473,449 487,653 493,732 6,079 1.2% Salary 4,146,162 4,070,985 4,198,750 4,748,433 549,683 13.1% Workers' Compensation 39,412 108,269 171,647 178,599 6,952 4.1% Total Salary & Benefits 6,783,704 6,670,287 7,511,098 8,196,871 685,773 9.1% Allocated Charges 405,529 491,501 461,207 466,909 5,702 1.2% Contract Services 304,787 238,703 288,148 455,348 167,200 58.0% Facilities & Equipment 2,570 633 4,200 4,200 ——% General Expense 144,980 149,751 207,924 204,924 (3,000)(1.4)% Operating Transfers-Out —65,146 ————% Rents & Leases 12,856 12,856 12,856 12,856 ——% Supplies & Material 25,905 24,351 33,898 33,898 ——% Total Dollars by Expense Category 7,680,331 7,653,228 8,519,330 9,375,006 855,675 10.0% ADMINISTRATIVE SERVICES 164 ADMINISTRATIVE SERVICES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Revenues Charges for Services 13,890 9,077 187,673 191,266 3,592 1.9% Charges to Other Funds 2,333,469 2,075,728 1,466,507 1,793,879 327,372 22.3% Other Revenue 145,266 168,531 171,400 171,400 ——% Sales Taxes ———150,000 150,000 —% Total Revenues 2,492,625 2,253,336 1,825,580 2,306,544 480,964 26.3% Positions by Division Accounting 13.60 13.52 13.52 13.52 ——% Administration 1.60 1.60 1.60 1.60 ——% Office of Management and Budget 6.62 6.02 6.02 7.02 1.00 16.61% Purchasing 8.57 9.05 9.05 9.05 ——% Real Estate 2.32 2.32 2.32 2.32 ——% Treasury 7.35 7.10 8.10 8.10 ——% Total 40.06 39.61 40.61 41.61 1.00 2.46% Staffing Job Classification FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Salary Account Specialist 4.88 4.63 4.63 4.63 —362,392 Account Specialist-Lead 3.05 3.45 3.45 3.45 —289,121 Accountant 3.00 3.00 3.00 3.00 —306,966 Administrative Assistant 1.00 1.00 1.00 1.00 —90,480 Administrative Associate II 1.00 1.00 1.00 1.00 —78,395 Administrative Associate III 1.00 1.00 1.00 1.00 —84,032 Assistant Director Administrative Services 1.65 1.65 1.65 1.65 —330,318 Buyer 1.00 1.00 1.00 1.00 —104,416 Chief Procurement Officer 1.00 1.00 1.00 1.00 —149,864 Contracts Administrator 2.70 2.70 2.70 2.70 —293,372 Director Administrative Services/ CFO 0.80 0.80 0.80 0.80 —189,530 Budget Summary FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % ADMINISTRATIVE SERVICES ADMINISTRATIVE SERVICES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 165 Director Office of Management and Budget 1.00 1.00 1.00 1.00 —199,035 Management Analyst —1.00 2.00 2.00 —195,104 Manager Accounting 1.00 ————— Manager Budget 1.00 2.00 2.00 2.00 —328,640 Manager Real Property 1.00 1.00 1.00 1.00 —154,523 Manager Revenue Collections 0.62 0.62 0.62 0.62 —99,041 Manager Treasury, Debt & Investments 0.60 0.60 0.60 0.60 —93,026 Manager, Finance —1.00 1.00 1.00 —177,923 Payroll Analyst 2.00 2.00 2.00 2.00 —186,659 Performance Auditor II ———1.00 1.00 110,074 Senior Accountant 3.00 3.00 3.00 3.00 —382,450 Senior Buyer 1.00 1.00 1.00 1.00 —109,637 Senior Management Analyst 4.90 2.30 2.30 2.30 —293,632 Storekeeper 1.00 1.00 1.00 1.00 —79,498 Storekeeper-Lead 0.20 0.20 0.20 0.20 —17,019 Warehouse Supervisor 0.20 0.20 0.20 0.20 —20,688 Sub-total: Full-Time Equivalent Positions 38.60 38.15 39.15 40.15 1.00 4,725,833 Temporary/Hourly 1.46 1.46 1.46 1.46 —101,077 Total Positions 40.06 39.61 40.61 41.61 1.00 4,826,910 Staffing Job Classification FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Salary ADMINISTRATIVE SERVICES 166 ADMINISTRATIVE SERVICES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Budget Reconciliation Positions Expenditures Revenues Net General Fund Prior Year Budget 40.61 8,519,330 1,825,580 6,693,750 One-Time Prior Year Budget Adjustments Administrative Services Staffing Vacancies —277,547 — 277,547 One-Time Prior Year Budget Adjustments —277,547 —277,547 Adjustments to Costs of Ongoing Activities Salary and Benefits — 207,264 — 207,264 General Fund Cost Allocation Plan — — 288,872 (288,872) Tax and Fee Consulting Services (CMR 10493) — 59,700 — 59,700 Minimum Wage Compliance — 15,000 — 15,000 Business Registry Fee — — 3,592 (3,592) General Liability Insurance Allocated Charges — 12,473 — 12,473 Information Technology Allocated Charges — (14,073) — (14,073) Printing & Mailing Services Allocated Charges — 13,432 — 13,432 Vehicle Replacement & Maintenance Allocated Charges — (6,130) — (6,130) Workers' Compensation Allocated Charges — 6,952 — 6,952 Adjustments to Costs of Ongoing Activities —294,618 292,464 5,746 Total FY 2021 Base Budget 40.61 9,091,495 2,118,044 6,973,451 Budget Adjustments 1 Reallocate 1.0 FTE Performance Auditor II from City Auditor's Office for Performance Report 1.00 195,011 — 195,011 2 Tax Compliance (Transfer from City Auditor's Office)— 50,000 150,000 (100,000) 3 Real Estate Software — 38,500 38,500 — Total Budget Adjustments 1.00 283,511 188,500 95,011 Total FY 2021 Proposed Budget 41.61 9,375,006 2,306,544 7,068,462 ADMINISTRATIVE SERVICES ADMINISTRATIVE SERVICES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 167 Budget Adjustments Budget Adjustments Positions Expenditures Revenues Net General Fund 1 Reallocate 1.0 FTE Performance Auditor II from City Auditor's Office for Performance Report 1.00 195,011 0 195,011 This ongoing action reallocates 1.0 FTE Performance Auditor II from the City Auditor's Office to the Administrative Services Department, Office of Management and Budget (OMB). The move of this position will increase workload capacity and allow OMB to produce the City's annual Performance Report, which was produced by the Auditor's Office in prior years. This action will consolidate the City’s performance reporting within OMB by storing the City’s performance measure data for both the Operating Budget document and the Annual Performance Report in the City’s budget production software database. A corresponding action is recommended in the City Auditor's Office. (Ongoing costs: $195,011) Performance Results This action aligns the duties and associated funding of the City Auditor's Office and the Administrative Services Department. 2 Tax Compliance (Transfer from City Auditor's Office)0.00 50,000 150,000 (100,000) This action moves one-time funding for contractual tax compliance services and the ongoing estimated revenue generated by the compliance services to the Administrative Services Department. This will align the City's tax revenue services. A corresponding action is recommended in the City Auditor's Office. (Ongoing savings: $150,000) Performance Results This action aligns the duties and associated funding formerly in the City Auditor's Office, in the Administrative Services Department. 3Real Estate Software 0.00 38,500 38,500 0 This cost-neutral action allocates one-time funding ($20,000) to purchase and implement new lease administration software as well as ongoing funding for the annual licensing ($18,500). The costs are offset by recognizing increased lease revenue from outside vendors that rent City owned property. (Ongoing costs: $0) Performance Results The software will streamline and automate lease management for the City's various properties that are rented to external tenants as well as internal non-General Fund departments. In addition, the software will automate and standardize lease reporting to prepare for implementation of Government Accounting Standards Board (GASB) Pronouncement No. 87: Lease Accounting, ADMINISTRATIVE SERVICES 168 ADMINISTRATIVE SERVICES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET PRINTING AND MAILING SERVICES Budget Summary FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % Dollars by Division Printing and Mailing 1,644,249 1,608,751 1,730,856 1,663,767 (67,088)(3.9)% Total 1,644,249 1,608,751 1,730,856 1,663,767 (67,088)(3.9)% Dollars by Category Salary & Benefits Healthcare 28,566 29,760 28,291 31,872 3,581 12.7% Other Benefits 3,267 3,289 3,359 4,179 820 24.4% Overtime 4,779 1,582 ————% Pension 30,959 33,209 47,533 42,055 (5,478)(11.5)% Retiree Medical 62,960 14,663 15,103 14,856 (248)(1.6)% Salary 128,064 134,197 142,079 144,298 2,219 1.6% Workers' Compensation 462 3,289 5,387 5,605 218 4.1% Total Salary & Benefits 259,056 219,990 241,752 242,865 1,113 0.5% Allocated Charges 205,990 273,237 360,090 371,663 11,572 3.2% Contract Services —29,083 239,711 60,000 (179,711)(75.0)% General Expense 370,562 292,503 286,975 301,600 14,625 5.1% Operating Transfers-Out 3,154 1,598 9,200 400 (8,800)(95.7)% Rents & Leases 640,236 636,515 512,870 512,240 (630)(0.1)% Supplies & Material 165,252 155,826 80,258 175,000 94,742 118.0% Total Dollars by Expense Category 1,644,249 1,608,751 1,730,856 1,663,767 (67,088)(3.9)% Revenues Charges to Other Funds 1,757,276 1,604,102 1,720,295 1,742,741 22,446 1.3% ADMINISTRATIVE SERVICES ADMINISTRATIVE SERVICES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 169 Return on Investments (1,100)(1,163)2,300 —(2,300)(100.0)% Total Revenues 1,756,175 1,602,939 1,722,595 1,742,741 20,146 1.2% Positions by Division Printing and Mailing 2.10 2.10 2.10 2.10 ——% Total 2.10 2.10 2.10 2.10 ——% Staffing Job Classification FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Salary Manager Revenue Collections 0.10 0.10 0.10 0.10 —15,974 Offset Equipment Operator 1.52 1.52 1.52 1.52 —105,850 Sub-total: Full-Time Equivalent Positions 1.62 1.62 1.62 1.62 —121,825 Temporary/Hourly 0.48 0.48 0.48 0.48 —27,256 Total Positions 2.10 2.10 2.10 2.10 —149,081 Budget Summary FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % ADMINISTRATIVE SERVICES 170 ADMINISTRATIVE SERVICES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Budget Reconciliation Positions Expenditures Revenues Net Printing and Mailing Services Prior Year Budget 2.10 1,730,856 1,722,595 8,261 One-Time Prior Year Budget Adjustments Transfer to Technology Fund (TE-19001 City Council Chambers Upgrade)— (9,200) — (9,200) One-Time Prior Year Budget Adjustments —(9,200)—(9,200) Adjustments to Costs of Ongoing Activities Salary and Benefits Adjustments — 895 — 895 Return on Investments — — (2,300) 2,300 Rents & Leases Expenditure Alignment — (35,630) — (35,630) General Fund Cost Allocation Plan — 9,000 — 9,000 Transfer to Technology Fund (TE-19001 City Council Chambers Upgrade)—400 —400 Printer Maintenance and Repair — (35,344) — (35,344) General Liability Insurance Allocated Charges — 392 — 392 Information Technology Allocated Charges — 2,180 — 2,180 Printing & Mailing Services Allocated Charges — — 22,446 (22,446) Workers' Compensation Allocated Charges — 218 — 218 Adjustments to Costs of Ongoing Activities —(57,889)20,146 (78,035) Total FY 2021 Proposed Budget 2.10 1,663,767 1,742,741 (78,974) COMMUNITY SERVICES COMMUNITY SERVICES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 171 COMMUNITY SERVICESMission Statement The Community Services Department’s mission is to engage individuals and families in creating a strong and healthy community through parks, recreation, social services, arts, and sciences. Purpose The purpose of the Community Services Department is to provide a diverse range of quality programs and services that are highly valued and relevant to the needs of the community. Community Services aims to develop and provide programs for increased knowledge, creativity, artistic expression, physical activity, social help, and enjoyment of the outdoors; seeks to be responsible stewards of many unique community assets including open space, parks and their related interpretive centers, the Animal Shelter, Children’s Theatre, Palo Alto Art Center, Junior Museum and Zoo and three community centers at Cubberley, Mitchell Park and Lucie Stern, and the Palo Alto Public Art collection; seeks to provide comfortable, safe, and attractive facilities; strives for sustainable practices that lower the City’s carbon footprint; and develops and maintains mutually beneficial partnerships and collaborations with local organi- zations, businesses, individuals and foundations to achieve its mission. 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The division manages the Art Center, Junior Museum and Zoo (JMZ), Children’s Theatre, Community Theatre, Cubberley Theatre, the Public Art Program, the Cubberley Artist Studios Program, and the MakeX studio. OPEN SPACE, PARKS, AND GOLF Maintains nature interpretive centers and operates more than 4,000 acres of open space and urban parkland including 43 miles of trails, 4 community gardens, 4 dog parks, and dozens of sports fields. The division offers programs in ecology and natural history in open space, mainte- nance of facilities for outdoor recreational use in City parks, and a full-service golf complex. RECREATION Provides a diverse range of programs and activities for the community, establishing a culture of health and well-being for families and individuals of all ages. Programs include youth devel- opment and enrichment, teen services, summer camps, organized sports, aquatics, special events, and a wide variety of adult recreation classes. The Recreation Division manages and operates three community centers, a teen center, and through a contracted vendor, the Rinco- nada Pool. OFFICE OF HUMAN SERVICES Provides funding and coordinates grants to nonprofit organizations through the Human Ser- vices Resource Allocation Process (HSRAP). Provides oversight of the afterschool child care program, the Palo Alto Mediation Program, and the Family Resources database. Serves as a key liaison to local social services organizations and child care providers. COMMUNITY SERVICES 174 COMMUNITY SERVICES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Budget Summary FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % Dollars by Division Administration and Human Services 4,238,687 4,878,165 5,402,694 5,151,958 (250,735)(4.6)% Arts and Sciences 6,207,926 6,413,922 6,865,224 7,937,370 1,072,147 15.6% Open Space, Parks and Golf 10,433,800 11,662,062 12,059,618 12,598,023 538,405 4.5% Recreation and Cubberley 6,262,160 6,133,781 6,592,649 6,703,143 110,494 1.7% Total 27,142,572 29,087,930 30,920,184 32,390,494 1,470,310 4.8% Dollars by Category Salary & Benefits Healthcare 1,734,186 1,687,053 1,792,800 1,840,304 47,504 2.6% Other Benefits 250,676 251,024 260,263 326,309 66,046 25.4% Overtime 182,169 170,818 107,157 109,916 2,759 2.6% Pension 1,966,642 2,053,046 2,543,515 2,641,104 97,589 3.8% Retiree Medical 998,502 909,817 937,111 947,267 10,156 1.1% Salary 8,784,819 8,729,623 9,032,247 9,610,294 578,047 6.4% Workers' Compensation 84,027 240,516 345,719 359,722 14,003 4.1% Total Salary & Benefits 14,001,021 14,041,898 15,018,813 15,834,916 816,103 5.4% Allocated Charges 5,132,897 5,594,001 5,416,584 5,763,625 347,041 6.4% Contract Services 5,279,123 7,664,389 8,661,260 8,786,693 125,433 1.4% Facilities & Equipment 33,308 39,356 73,700 67,700 (6,000)(8.1)% General Expense 1,981,352 994,865 1,049,787 1,144,801 95,014 9.1% Operating Transfers-Out 6,990 110,605 6,990 —(6,990)(100.0)% Rents & Leases 19,753 16,858 25,983 25,983 ——% Supplies & Material 688,129 625,958 667,066 766,776 99,710 14.9% Total Dollars by Expense Category 27,142,572 29,087,930 30,920,184 32,390,494 1,470,310 4.8% Revenues Charges for Services 4,356,738 6,792,563 7,594,929 8,961,845 1,366,916 18.0% Charges to Other Funds 56,230 111,636 197,455 202,581 5,126 2.6% From Other Agencies 8,324 ——43,500 43,500 —% Other Revenue 650,289 528,085 820,882 861,086 40,205 4.9% COMMUNITY SERVICES COMMUNITY SERVICES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 175 Other Taxes and Fines 770 1,463 1,026 1,026 ——% Rental Income 1,204,639 1,383,915 1,107,654 1,109,094 1,440 0.1% Total Revenues 6,276,990 8,817,663 9,721,945 11,179,132 1,457,187 15.0% Positions by Division Administration and Human Services 6.24 6.24 6.72 6.79 0.07 1.04% Arts and Sciences 46.28 44.42 44.75 52.98 8.23 18.39% Open Space, Parks and Golf 32.87 30.59 30.59 29.59 (1.00)(3.27)% Recreation and Cubberley 59.65 42.85 42.85 41.35 (1.50)(3.50)% Total 145.04 124.10 124.91 130.71 5.80 4.64% Staffing Job Classification FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Salary Administrative Assistant 1.00 1.00 1.00 1.00 —95,826 Administrative Associate III 1.00 1.00 1.00 1.00 —84,032 Assistant Director Community Services 2.00 2.00 2.00 2.00 —371,467 Building Serviceperson 2.00 1.25 1.25 1.00 (0.25)64,563 Building Serviceperson-Lead 2.00 0.60 0.60 0.60 —41,471 Coordinator Recreation Programs 4.00 3.00 4.00 4.00 —363,834 Director Community Services 1.00 1.00 1.00 1.00 —222,498 Division Manager Open Space, Parks and Golf 1.00 1.00 1.00 —(1.00)— Heavy Equipment Operator 0.07 0.07 0.07 0.07 —7,331 Inspector, Field Services 2.00 2.00 2.00 2.00 —212,618 Junior Museum & Zoo Educator 3.60 3.60 3.60 3.60 —292,856 Management Analyst 1.00 1.00 1.00 1.00 —108,160 Management Assistant 1.00 1.00 1.00 1.00 —85,488 Manager Community Services 5.00 5.00 5.00 5.00 —499,179 Manager Community Services Senior Program 4.00 4.00 4.00 4.00 —392,218 Manager Human Services 1.00 1.00 1.00 1.00 —138,736 Budget Summary FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % COMMUNITY SERVICES 176 COMMUNITY SERVICES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Park Maintenance Person 6.00 6.00 6.00 6.00 —464,131 Park Maintenance-Lead 1.00 1.00 1.00 1.00 —89,648 Park Ranger 5.00 5.00 5.00 5.00 —438,880 Parks/Golf Crew-Lead 2.00 2.00 2.00 2.00 —168,272 Producer Arts/Science Program 11.00 11.00 11.00 12.00 1.00 1,153,173 Program Assistant I 8.00 8.00 8.00 6.00 (2.00)477,360 Program Assistant II 4.00 4.00 3.00 5.00 2.00 427,440 Project Manager 0.10 0.10 0.10 0.10 —11,985 Senior Management Analyst 1.00 1.00 1.00 1.00 —149,427 Sprinkler System Representative 4.00 4.00 4.00 4.00 —314,579 Superintendent Community Services 2.00 2.00 2.00 2.00 —269,318 Superintendent Recreation 1.00 1.00 1.00 1.00 —127,587 Theater Specialist 2.00 2.00 2.00 2.00 —210,912 Sub-total: Full-Time Equivalent Positions 78.77 75.62 75.62 75.37 (0.25)7,282,989 Temporary/Hourly 66.27 48.48 49.29 55.34 6.05 2,916,080 Total Positions 145.04 124.10 124.91 130.71 5.80 10,199,069 Staffing Job Classification FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Salary COMMUNITY SERVICES COMMUNITY SERVICES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 177 Budget Reconciliation Positions Expenditures Revenues Net General Fund Prior Year Budget 124.91 30,920,184 9,721,945 21,198,239 One-Time Prior Year Budget Adjustments Impact Fee Nexus Study — (60,000) — (60,000) One-Time Prior Year Budget Adjustments —(60,000)—(60,000) Adjustments to Costs of Ongoing Activities Salary and Benefits Adjustments — 255,892 — 255,892 Project Safety Net Transition (Year 2) (0.45) (196,790) — (196,790) Animal Control Staffing Realignment (0.48) (60,663) — (60,663) Youth Community Services Funding Expiration — (50,000) — (50,000) Realignment of Cubberley Staffing to Cubberley Fund (CMR #9925, approved by the City Council on December 17, 2018) (0.25) (29,662) — (29,662) Eliminate Funding for Downtown Streets Team Park Maintenance — (29,124) — (29,124) General Contract Adjustments — (12,701) — (12,701) Animal Services Shelter Transition from Police Department to Community Services Department with Pets-In-Need (CMR #9822 Approved by the City Council on November 26, 2018) (Year 2) — (6,840) — (6,840) Transfer to Electric Fund for Canopy Contract — (6,990) — (6,990) Arastradero Stewardship Consumer Price Index Adjustment —2,030 —2,030 Technical Clean-Up for Arts & Sciences Professional —5,369 —5,369 Supplies and Materials Adjustments — 9,000 9,000 — CSD Management Alignment (Year 2) and Net Benefit Adjustments (1.00) 33,942 — 33,942 Human Services Resource Allocation Program/ Avenidas/PACC (consumer price index)— 40,713 — 40,713 Golf Course Revenue and Expense (CMR #8848, approved by the City Council on April 6, 2018)— 41,280 1,440 39,840 Institute of Museum and Library Services Grant for Interns — 43,500 43,500 — Glyphosate (‘RoundUp’) Elimination at Road Medians Around 6 Schools — 67,000 — 67,000 Expansion of Special Interest Classes — 70,500 70,500 — Recreation Management System Software — 101,170 101,170 — COMMUNITY SERVICES 178 COMMUNITY SERVICES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Communication Services Allocated Charges — 8,600 — 8,600 Information Technology Allocated Charges — (50,183)— (50,183) Landscape Maintenance Contract/Allocated Charges —— 5,126 (5,126) Liability Insurance Allocated Charges — 36,094 — 36,094 Printing & Mailing Services Allocated Charges — 38,295 — 38,295 Refuse Allocated Charges — 14,236 — 14,236 Stormwater Management Allocated Charges — 1,102 — 1,102 Utilities Allocated Charges — 254,925 — 254,925 Vehicle Replacement & Maintenance Allocated Charges — 43,972 — 43,972 Workers' Compensation Allocated Charges — 14,003 — 14,003 Adjustments to Costs of Ongoing Activities (2.18)638,670 230,736 407,934 Total FY 2021 Base Budget 122.73 31,498,854 9,952,681 21,546,173 Budget Adjustments 1 New Junior Museum and Zoo Operating Plan 6.79 845,454 1,186,247 (340,793) 2 Therapeutics Staffing (Reclassification) — 5,982 — 5,982 3 Art Center Position Request & Contract Funding 0.20 40,205 40,205 — 4 Art Center and Public Art Installation Position Requests 0.99 — — — Total FY 2021 Budget Adjustments 7.98 891,640 1,226,452 (334,811) Total FY 2021 Proposed Budget 130.71 32,390,494 11,179,133 21,211,362 Budget Reconciliation Positions Expenditures Revenues Net General Fund COMMUNITY SERVICES COMMUNITY SERVICES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 179 Budget Adjustments Budget Adjustments Positions Expenditures Revenues Net General Fund 1 New Junior Museum and Zoo Operating Plan 6.79 845,454 1,186,247 (340,793) This ongoing action adds 6.79 FTE (3.16 in Animal Care and Experiences, 0.75 in Exhibitions and Museum Maintenance, and 2.88 in Guest Services), reclassifies 1.0 FTE Program Assistant I to a 1.0 FTE Program Assistant II, adds approximately $370,000 in operating expenses, and recognizes an estimated $733,000 in revenues. These actions constitute the implementation of the initial operating plan for the newly built Junior Museum and Zoo (JMZ), as approved by Finance Committee in Staff Report 11093 and presented to City Council on April 20, 2020 in Staff Report 11222. The JMZ will reopen as a state-of-the-art museum and zoo built with a focus on inclusion, accessibility and the highest standards in animal care. These actions are recommended in order to ensure a safe and enjoyable experience for users of the new facility. (Ongoing net costs: $346,800) Performance Results This action will enhance the quality of service and increase customer satisfaction at the Junior Museum and Zoo by expanding exhibit programming and animal collections, providing appropriate staffing levels, expanding hours of operation, and ensuring ongoing maintenance of the new facility. 2 Therapeutics Staffing (Reclassification)0.00 5,982 0 5,982 This ongoing action reclassifies a existing 1.0 FTE Program Assistant I to a 1.0 FTE Program Assistant II to create capacity for an existing 0.48 FTE Project Specialist to take on the role of therapeutics programming. The Community Services Department (CSD) strives to provide recreation services to all members of the Palo Alto community, and currently accommodates community members with special needs as requests are received. This action allows CSD to create a therapeutics program with a standardized approach to inclusion for existing programs. This action reallocates existing staffing resources to enable CSD to dedicate an existing 0.48 FTE Project Specialist position to evaluate the Department's existing programming and develop a comprehensive Therapeutic Recreation Plan that will guide the City's strategy to providing inclusionary services moving forward. (Ongoing costs: $6,500) Performance Results This action would expand and standardize Therapeutics programming and enhance the City's ability to provide services to those with special needs. 3 Art Center Position Request & Contract Funding 0.20 40,205 40,205 0 This ongoing, cost neutral action adds 0.20 FTE Arts & Sciences Professional I and contract services funding, and recognizes commensurate offsetting revenue from the Palo Alto Art Center Foundation. The Arts & Sciences Professional I will support the Community Services Department's Project Look program. Project Look is a school tour program that provides field trips and educational experiences at the Art Center to local schools with interactive tours led by Art Center volunteers, as well as hands-on activities taught by professional artist educators. The contract services funding will fund the Cultural Kaleidoscope teaching artists. Cultural Kaleidoscope is an artist-in-the-schools program that links the neighboring and diverse communities of Palo Alto, East Palo Alto, and Menlo Park, by building bridges through the arts and partnering with K-5 classrooms. The Arts & Sciences Professional I will be responsible for coordination of these programs and oversight of part-time staff and contracted teaching arts who implement the programs. Previously, this position was employed by the Palo Alto Art Center Foundation, however this action allows the City to hire a staff member directly while being reimbursed by the Foundation. (Ongoing costs: $0) Performance Results This action will be cost neutral and provides greater flexibility in Art Center staffing to continue to provide these high quality programs. COMMUNITY SERVICES 180 COMMUNITY SERVICES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 4 Art Center and Public Art Installation Position Requests 0.99 0 0 0 This ongoing action realigns staffing for the Palo Alto Art Center and Public Art program through a cost neutral reallocation of contract dollars to fund 1.06 total FTE Staff Specialist positions (one 0.38 FTE, three 0.17 FTE, one 0.10 FTE, and one 0.07 FTE). The 0.07 FTE will be funded by the ongoing capital project Art in Public Spaces, AC-86017, while all others will be funded within the General Fund. The Art Center and Public Art program host exhibits and manage art installations annually and skilled support is needed to prepare exhibition spaces and safely transport and handle the artwork. This action will ensure the Art Center and Public Art programs remain in compliance with state and local laws governing this type of work, as well as the insurance policies for valuable artworks. This action will also provide the necessary staffing support for both programs while maintaining service delivery levels by providing greater flexibility for seasonal staffing to assist with exhibition gallery maintenance, preparation, and shipping work. (Ongoing costs: $0) Performance Results This action will be cost neutral and ensure safe handling of artwork and high quality art exhibit installations. Budget Adjustments Budget Adjustments Positions Expenditures Revenues Net General Fund COMMUNITY SERVICES COMMUNITY SERVICES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 181 CSD Golf Course Financials FY 2017 Actuals1 FY 2018 Actuals2 FY 2019 Actuals FY 2020 Projected FY 2021 Proposed 40 0 211,290 58,470 118,390 0 532,552 2,231,690 2,406,680 2,565,755 227,072 199,251 359,495 345,115 402,850 1,236 0 362,810 348,300 449,300 13,175 12,677 239,190 229,620 228,355 32,657 2,222 0 48,000 49,440 16,500 1,500 0 18,000 18,000 4,039 6,738 15,180 14,575 0 REVENUES Tournament Fees Green Fees Driving Range Cart/Club Rentals Proshop Lease Restaurant Lease Restaurant Utilities Other Fee Total Revenue 294,719 754,940 3,419,655 3,468,760 3,832,090 EXPENDITURES Operating Expenses Salaries & Benefits 111,906 117,662 120,590 172,720 134,540 Advertising & Publishing 1,126 7,714 0 0 0 Supplies and Materials 27,008 42,669 0 0 0 General Expense 52 347 1,015 1,000 1,440 Facilities and Equipment Purchases 6,434 18,860 0 0 0 Allocated Charges 156,748 180,057 245,770 262,970 216,600 Subtotal 303,274 367,307 367,375 436,690 352,580 Contract Services Golf Maintenance 364,666 750,978 2,522,515 2,611,281 2,648,418 Miscellaneous 49,068 9,437 0 0 0 Range Fees 195,631 166,902 0 0 0 Cart Rentals 0 0 0 0 0 Club Rentals 0 0 0 0 0 Management Fees 30,500 924,477 108,000 111,240 114,577 Contract Contingency 0 0 0 26,825 27,630 Subtotal 639,865 1,851,795 2,630,515 2,749,346 2,790,625 Total Operating Expenses 943,139 2,219,102 2,997,890 3,186,036 3,143,205 Income From Operations (648,420) (1,464,162) 421,765 282,724 688,885 COMMUNITY SERVICES 182 COMMUNITY SERVICES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Debt Expenses Debt Service (Refunded) 432,150 432,271 431,154 0 0 Debt Service (New) 0 0 338,886 369,771 373,733 Subtotal 432,150 432,271 770,040 369,771 373,733 Net Income (Loss) (1,080,570) (1,896,433) (348,275)) (87,047)315,152 1. The Golf Course was closed during FY 2017 due to renovation. 2. The renovated Golf Course opened in May 2018 under the new management. CSD Golf Course Financials FY 2017 Actuals1 FY 2018 Actuals2 FY 2019 Actuals FY 2020 Projected FY 2021 Proposed COMMUNITY SERVICES COMMUNITY SERVICES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 183 CSD Human Service Contracts Human Services Contracts FY 2020 Adopted FY 2020 Agency Award FY 2021 Base Budget FY 2021 Agency Requests FY 2021 Proposed Budget GENERAL HUMAN SERVICES CONTRACTS1 Avenidas - Senior Services 508,356 508,356 521,065 508,356 521,065 PACCC - Child Care Subsidy and Outreach 515,013 515,013 527,888 515,013 527,888 Mediation Service Provider4 69,223 69,223 70,954 69,223 70,954 County of Santa Clara4 125,000 125,000 125,000 125,000 125,000 Youth Community Sv. (YCS) - Youth Connectedness Initiative4 50,000 50,000 50,000 50,000 0 General Human Service Contracts Subtotal 1,267,592 1,267,592 1,294,907 1,267,592 1,244,907 HUMAN SERVICES RESOURCE ALLOCATION PROCESS CONTRACTS 2 Abilities United 53,757 53,757 53,757 51,739 55,101 Ada's CafÈ 5,195 5,195 5,195 50,000 5,325 Adolescent Counseling Services (Outlet Program) 44,157 44,157 44,157 100,000 45,261 Blossom Birth 0 0 0 15,000 0 Counseling and Support Services for Youth (CASSY) 44,157 44,157 44,157 50,000 45,261 Downtown Streets Team 37,840 37,840 37,840 36,420 38,786 DreamCatchers 25,975 25,975 25,975 25,000 26,624 KARA 22,858 22,858 22,858 22,000 23,429 LifeMoves (formerly InnVision Shelter Network) 81,989 81,989 81,989 132,739 84,039 La Comida de California 48,181 48,181 48,181 46,372 49,386 MayView Community Health Center 41,560 41,560 41,560 40,000 42,599 Palo Alto Housing Corporation 31,170 31,170 31,170 36,000 31,949 Senior Adults Legal Assistance 15,949 15,949 15,949 15,350 16,348 The Health Trust 10,390 10,390 10,390 20,000 10,650 Vista Center for the Blind & Visually Impaired 41,560 41,560 41,560 42,070 42,599 Youth Community Sv. (YCS) 31,170 31,170 31,170 30,000 31,949 Two-Year Contractors Subtotal 535,908 535,908 535,908 712,690 549,306 TOTAL 1,803,500 1,803,500 1,830,815 1,980,282 1,794,213 COMMUNITY SERVICES 184 COMMUNITY SERVICES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET HSRAP Emerging Needs Fund3 50,000 50,000 50,000 50,000 50,000 1.Not part of the Human Services Resource Allocation Process. 2.Human Services Resource Allocation Process (HSRAP) contracts are requested as part of a two-year cycle, and once approved, the agencies receive the same level of funding across each year of the cycle. The Agency Request amounts reflect the request made for each year. 3.Funding is in the Non-Departmental section of this document. 4.These existing contracts have been added to this chart to provide a holistic display of all the General Human Services Contracts in the City. As these contracts are already established, there is no new budgetary impact as a result of their inclusion. CSD Human Service Contracts Human Services Contracts FY 2020 Adopted FY 2020 Agency Award FY 2021 Base Budget FY 2021 Agency Requests FY 2021 Proposed Budget FIRE FIRE • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 185 FIREMission Statement We are a professional team of individuals dedicated to safeguarding and enriching the lives of anyone, anytime, anywhere with compassion and pride. Purpose The purpose of the Fire Department is to protect life, property, and the environment from fire, hazardous materials, and other disasters; provide rapid emergency response, proactive code enforcement, modern fire prevention methods, and pro- gressive safety education for our citizens and coworkers; and promote customer satisfaction by maintaining quality, profes- sional, and friendly service to others. FIRE 186 FIRE • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 1.00 EMS Chief 1.00 EMS Data Specialist 0.50 GIS Specialist 1.00 Training Battalion Chief 1.00 Training Captainƫ 3.00 Battalion Chief 21.00 Fire Captain Ăć.00 Fire Apparatus Operatorƫ ăą.00 Fire Fighter 2.00 Hazardous Materials ƫInspector 4.00 Fire Inspector 1.00 Administrative Assistant 1.00 Senior Management Analyst 1.00 Administrative Associate II Ă.00 Administrative Associate II SUPPORT SERVICES 1.00 Deputy Chief OPERATIONS 1.00 Deputy Chief FIRE PREVENTION*ƫ 1.00 Deputy Chiefĥ%.!ƫ ƫĂĀĂāƫ ƫƫ 1Āă.Ć0 - Full-time 0.55 - Hourly This organizational chart represents citywide Full-Time Equivalents (FTEs) for this department. The Department Summary tables summarize FTEs by position allocation. * Fire Prevention is functionally a part of the (**%*#ƫ* ƫ !2!(+,)!*0ƫ!.2%!/ Department. The Fire Department retains administrative oversight over department personnel. ./$( FIRE CHIEFƫ !+"".!5ƫ('/$%.! FIRE FIRE • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 187 Description The Fire Department provides a wide range of community and employee related services for the City of Palo Alto through the following service programs: FIRE SUPPRESSION Maintain a state of readiness to effectively respond to emergency and non-emergency calls. Provide a means for a safer Palo Alto through community outreach, public education, and pre- vention. EMERGENCY MEDICAL SERVICES In an emergency setting, rapid assessment, treatment, and transport of patients to definitive care in a safe and efficient manner. FIRE PREVENTION BUREAU Improve the quality of life for the Palo Alto community through risk assessment, code enforce- ment, fire investigation, public education, and hazardous materials management. EMPLOYEE FIRE/EMS CERTIFICATION TRAINING Provide training to certify that staff maintain safe, efficient, and effective practices when responding to emergencies. Ensure personnel are familiar with and able to utilize the most up- to-date and proven techniques. Training specific to required EMT and/or Paramedic re-certifica- tion is also incorporated. FIRE 188 FIRE • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Budget Summary FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % Dollars by Division Administration 1,916,884 2,212,337 2,745,530 2,767,105 21,574 0.8% Emergency Response 29,345,212 30,441,361 30,703,654 31,969,489 1,265,835 4.1% Environmental Safety Management 151,752 433,531 558,962 603,693 44,732 8.0% Records and Information Management 342,412 384 ————% Training and Personnel 1,882,244 861,339 855,545 870,547 15,002 1.8% Total 33,638,504 33,948,953 34,863,692 36,210,834 1,347,143 3.9% Dollars by Category Salary & Benefits Healthcare 1,952,238 1,992,070 2,182,484 2,096,067 (86,418)(4.0)% Other Benefits 351,540 339,714 307,559 516,288 208,729 67.9% Overtime 3,568,300 2,914,480 1,672,872 1,931,121 258,249 15.4% Pension 6,030,222 6,665,085 8,091,590 8,638,189 546,599 6.8% Retiree Medical 2,559,706 2,223,229 2,289,926 2,320,105 30,179 1.3% Salary 13,191,022 13,685,234 14,211,642 14,642,324 430,681 3.0% Workers' Compensation 1,027,998 753,623 1,108,460 1,153,357 44,897 4.1% Total Salary & Benefits 28,681,026 28,573,435 29,864,533 31,297,451 1,432,917 4.8% Allocated Charges 3,144,612 3,071,942 3,282,610 3,353,461 70,850 2.2% Contract Services 762,479 590,569 566,625 546,000 (20,625)(3.6)% Facilities & Equipment 151,244 340,204 327,723 246,723 (81,000)(24.7)% General Expense 436,545 628,320 388,800 393,800 5,000 1.3% Operating Transfers-Out —306,850 ————% Supplies & Material 462,598 437,631 433,400 373,400 (60,000)(13.8)% Total Dollars by Expense Category 33,638,504 33,948,953 34,863,692 36,210,834 1,347,143 3.9% Revenues Charges for Services 9,815,952 9,589,264 10,649,581 10,388,794 (260,787)(2.4)% Charges to Other Funds 161,322 163,605 162,610 162,610 ——% From Other Agencies 1,093,263 259,946 170,000 175,000 5,000 2.9% Other Revenue 18,931 410,191 282,000 282,000 ——% FIRE FIRE • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 189 Other Taxes and Fines (275)—————% Total Revenues 11,089,193 10,423,007 11,264,190 11,008,403 (255,787)(2.3)% Positions by Division Administration 3.00 5.68 5.68 5.68 ——% Emergency Response 99.07 89.57 89.57 89.57 ——% Environmental Safety Management 0.48 1.15 1.15 1.15 ——% Records and Information Management 1.50 —————% Training and Personnel 5.15 2.00 2.00 2.00 ——% Total 109.20 98.40 98.40 98.40 ——% Staffing Job Classification FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Salary 40-Hour Training Battalion Chief 1.00 1.00 1.00 1.00 —203,070 40-Hour Training Captain 1.00 1.00 1.00 1.00 —164,486 Administrative Assistant 1.00 1.00 1.00 1.00 —86,549 Administrative Associate II 2.00 2.20 2.20 2.20 —172,469 Battalion Chief 3.00 3.00 3.00 3.00 —580,420 Business Analyst 0.80 0.80 0.80 0.80 —124,268 Deputy Chief/Fire Marshal 0.05 0.05 0.05 0.05 —10,758 Deputy Director Technical Services Division 0.20 0.20 0.20 0.20 —42,898 Deputy Fire Chief 2.00 2.00 2.00 2.00 —438,090 Emergency Medical Services Director 1.00 1.00 1.00 1.00 —177,133 Emergency Medical Services Data Specialist 1.00 1.00 1.00 1.00 —84,032 Fire Apparatus Operator 30.00 26.00 26.00 26.00 —3,738,018 Fire Captain 21.00 21.00 21.00 21.00 —3,343,791 Fire Chief 1.00 1.00 1.00 1.00 —258,024 Fire Fighter 41.00 34.00 34.00 34.00 —4,517,356 Fire Inspector 0.80 0.80 0.80 0.80 —131,589 Budget Summary FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % FIRE 190 FIRE • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Geographic Information System Specialist 0.50 0.50 0.50 0.50 —65,198 Hazardous Materials Inspector 0.30 0.30 0.30 0.30 —49,346 Senior Management Analyst 1.00 1.00 1.00 1.00 —154,586 Sub-total: Full-Time Equivalent Positions 108.65 97.85 97.85 97.85 —14,342,080 Temporary/Hourly 0.55 0.55 0.55 0.55 —54,739 Total Positions 109.20 98.40 98.40 98.40 —14,396,820 Staffing Job Classification FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Salary FIRE FIRE • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 191 Budget Reconciliation Positions Expenditures Revenues Net General Fund Prior Year Budget 98.40 34,863,692 11,264,190 23,599,502 One-Time Prior Year Budget Adjustments Fire Staffing Adjustment — 352,511 — 352,511 Firefighter New Hire Costs — (80,625) — (80,625) Equipment Replacement — (48,000) — (48,000) One-Time Prior Year Budget Adjustments —223,886 —223,886 Adjustments to Costs of Ongoing Activities Salary and Benefits Adjustments — 762,325 — 762,325 Overtime Adjustments — 63,958 — 63,958 Stanford Emergency Fire Services Annual Revenue Alignment — — (260,787) 260,787 State Quality Assurance Fee Alignment — 5,000 5,000 — Communication Services Allocated Charges — 14,800 — 14,800 Industrial Waste Discharge Fee Allocated Charges — 2,910 — 2,910 Information Technology Allocated Charges — (33,841) — (33,841) Liability Insurance Allocated Charges — 37,381 — 37,381 Printing & Mailing Services Allocated Charges — 339 — 339 Refuse Allocated Charges — (621) — (621) Stormwater Management Allocated Charges — (194) — (194) Utilities Allocated Charges — 13,178 — 13,178 Vehicle Replacement & Maintenance Allocated Charges —3,899 —3,899 Workers' Compensation Allocated Charges — 44,897 — 44,897 Adjustments to Costs of Ongoing Activities —914,031 (255,787)1,169,818 Total FY 2021 Base Budget 98.40 36,001,609 11,008,403 24,993,206 Budget Adjustments 1 Modified Staffing and Overtime Adjustment — 209,225 — 209,225 Total Budget Adjustments —209,225 —209,225 Total FY 2021 Proposed Budget 98.40 36,210,834 11,008,403 25,202,431 FIRE 192 FIRE • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Budget Adjustments Budget Adjustments Positions Expenditures Revenues Net General Fund 1 Modified Staffing and Overtime Adjustment 0.00 209,225 0 209,225 This one-time action restores Medic 61, recognizes savings of $353,500, equivalent to 1.0 FTE Deputy Fire Chief position as a temporary measure to create savings for the duration of FY 2021. With additional time to operate with fewer executive management positions in FY 2021, the department will continue to analyze and assess ongoing options for staffing adjustments to continue cost containment and return with recommendations. (Ongoing costs: $0) Performance Results This action is anticipated to help manage medical services call volume and maintain the department's current level of service. HUMAN RESOURCES HUMAN RESOURCES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 193 HUMAN RESOURCESMission Statement The Human Resources Department’s mission is to recruit, develop, and retain a diverse, well-qualified, and professional workforce that reflects the high standards of the community we serve, and to lead City departments in positive employee relations, talent management, succession planning, and employee engagement. Purpose The purpose of Human Resources is to support City departments in achieving key goals and objectives; to provide a range of services, including new employee orienta- tion, staffing and recruitment management, talent and skill development, per- formance assessment, safety and wellness programs; and to support employee relations, compensation, job classification, risk management, and organization development to City departments. HUMAN RESOURCES 194 HUMAN RESOURCES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET āċĀĀƫ *#!.Čƫ),(+5!!ƫ!(0%+*/ƫƫƫ āċĀĀƫ!*%+.ƫ1)*ƫ!/+1.!/ƫ )%*%/0.0+. āċĀĀƫ1)*ƫ!/+1.!/ƫ!,.!/!*00%2! HUMAN RESOURCES DIRECTOR/ CHIEF PEOPLE OFFICERƫ 1)%ƫ+.0%((+ FY 20Ăā POSITION TOTALSƫƫ 1Ĉ.00 - Full-time āċąąƫ- Hourly 1.00 Assistant Director of Humanƫ!/+1.!/ This organizational chart represents citywide Full-Time Equivalents (FTEs) for this department. The Department Summary tables summarize FTEs by position allocation. ŏƫ ƫ ĥƫ ƫĒƫ ƫ ƫ ƫ āċĀĀƫ *#!.Čƫ),(+5!!ƫ!*!"%0/ āċĀĀƫ1)*ƫ!/+1.!/ƫ!,.!/!*00%2!ƫ āċĀĀƫ1)*ƫ!/+1.!/ƫ!$*%%* ƫƫ ĂċĀĀƫ!*%+.ƫ1)*ƫ!/+1.!/ƫ )%*%/0.0+.ƫƫ āċĀĀƫƫ!*%+.ƫ *#!)!*0ƫ*(5/0 āċĀĀƫƫ1)*ƫ!/+1.!/ƫ!,.!/!*00%2!ƫ āċĀĀƫƫ1)*ƫ!/+1.!/ƫ!$*%%* ƫƫ ƫ ƫ āċĀĀƫƫ!*%+.ƫ *#!)!*0ƫ*(5/0ƫ ĂċĀĀƫ1)*ƫ!/+1.!/ƫ!$*%%* ƫāċĀĀƫƫ!*%+.ƫ1)*ƫ!/+1.!/ƫ )%*%/0.0+. HUMAN RESOURCES HUMAN RESOURCES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 195 Description The Human Resources Department provides guidance to City departments in the following areas: TOTAL COMPENSATION Administer salary, health, pension, and other benefits. EMPLOYEE AND LABOR RELATIONS Provide guidance to City staff to enhance performance, create a positive work environment, and effectively resolve complaints, grievances, and other problems, as well as lead the City through labor contract negotiations. ORGANIZATION AND EMPLOYEE DEVELOPMENT Identify and implement training and development opportunities to enhance skills, innovation, and leadership of City staff members. TALENT MANAGEMENT Recruit, select, and onboard employees who have a passion for public service and the right knowledge, skills, and abilities to take on increasingly complex public service roles. RISK MANAGEMENT, SAFETY, AND WORKERS COMPENSATION Support workplace safety, reduce injuries, and actively manage risk and other potential liabili- ties. HUMAN RESOURCES 196 HUMAN RESOURCES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Budget Summary FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % Dollars by Fund General Fund-Operating 3,479,721 3,614,677 3,945,119 4,087,691 142,572 3.6% Liability Insurance 2,647,980 4,481,136 2,971,622 4,146,146 1,174,524 39.5% Worker's Compensation 3,513,168 6,233,418 6,738,337 6,960,576 222,239 3.3% Total 9,640,869 14,329,231 13,655,078 15,194,413 1,539,335 11.3% Revenues Charges to Other Funds 2,842,356 3,901,219 4,333,860 4,931,659 597,799 13.8% Operating Transfers-In 5,000 5,000 5,000 5,000 ——% Other Revenue 2,025,670 4,595,511 5,522,040 5,744,040 222,000 4.0% Return on Investments 541,650 602,871 708,600 642,900 (65,700)(9.3)% Total Revenues 5,414,677 9,104,601 10,569,500 11,323,599 754,099 7.1% Positions by Fund General Fund 17.20 16.96 16.96 16.96 ——% Workers' Compensation Program Fund 1.00 1.00 1.48 1.48 ——% Total 18.20 17.96 18.44 18.44 ——% HUMAN RESOURCES HUMAN RESOURCES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 197 GENERAL FUND Budget Summary FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % Dollars by Division Administration, Employee Org Development and HR Systems 1,214,231 1,352,856 1,245,888 1,422,446 176,557 14.2% Benefits and Compensation 435,416 457,524 516,904 525,650 8,745 1.7% Employee and Labor Relations 1,180,702 1,156,530 1,339,974 1,304,201 (35,773)(2.7)% Recruitment 375,727 424,826 484,318 495,421 11,102 2.3% Risk Mgmt, Safety, Workers' Compensation 273,645 222,940 358,034 339,973 (18,060)(5.0)% Total 3,479,721 3,614,677 3,945,119 4,087,691 142,572 3.6% Dollars by Category Salary & Benefits Healthcare 237,758 260,430 314,498 292,772 (21,726)(6.9)% Other Benefits 75,229 85,945 94,705 107,349 12,644 13.4% Overtime 1,147 2,638 ————% Pension 482,170 532,637 702,839 741,743 38,903 5.5% Retiree Medical 201,668 190,587 196,305 199,241 2,936 1.5% Salary 1,746,388 1,860,870 1,956,231 2,148,808 192,577 9.8% Workers' Compensation —55,727 70,466 73,320 2,854 4.1% Total Salary & Benefits 2,744,360 2,988,834 3,335,044 3,563,231 228,188 6.8% Allocated Charges 155,613 193,988 218,126 212,510 (5,616)(2.6)% Contract Services 462,714 311,923 285,309 205,309 (80,000)(28.0)% Facilities & Equipment ——4,150 4,150 ——% General Expense 58,875 40,192 43,098 43,098 ——% Operating Transfers-Out —28,209 ————% Rents & Leases 43,000 43,000 43,000 43,000 ——% Supplies & Material 15,159 8,532 16,392 16,392 ——% Total Dollars by Expense Category 3,479,721 3,614,677 3,945,119 4,087,691 142,572 3.6% HUMAN RESOURCES 198 HUMAN RESOURCES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Revenues Charges to Other Funds 1,067,356 976,010 1,856,860 1,914,659 57,799 3.1% Other Revenue 41,593 —————% Total Revenues 1,108,949 976,010 1,856,860 1,914,659 57,799 3.1% Positions by Division Administration, Employee Org Development and HR Systems 5.56 5.56 5.56 5.56 ——% Benefits and Compensation 2.44 2.20 2.20 2.20 ——% Employee and Labor Relations 5.00 5.00 5.00 5.00 ——% Recruitment 2.60 2.60 2.60 2.60 ——% Risk Mgmt, Safety, Workers' Compensation 1.60 1.60 1.60 1.60 ——% Total 17.20 16.96 16.96 16.96 ——% Staffing Job Classification FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Salary Assistant Director Human Resources 1.00 1.00 1.00 1.00 —201,448 Director Human Resources/CPO 1.00 1.00 1.00 1.00 —237,806 Human Resources Representative 3.00 3.00 3.00 3.00 —278,346 Human Resources Technician 4.00 4.00 4.00 4.00 —309,379 Manager Employee Benefits 1.00 1.00 1.00 1.00 —149,968 Manager Employee Relations 1.00 1.00 1.00 1.00 —163,051 Senior Human Resources Administrator 3.00 3.00 3.00 3.00 —321,651 Senior Management Analyst 2.00 2.00 2.00 2.00 —287,914 Sub-total: Full-Time Equivalent Positions 16.00 16.00 16.00 16.00 —1,949,563 Temporary/Hourly 1.20 0.96 0.96 0.96 —103,324 Total Positions 17.20 16.96 16.96 16.96 —2,052,888 Budget Summary FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % HUMAN RESOURCES HUMAN RESOURCES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 199 Budget Reconciliation Positions Expenditures Revenues Net General Fund Prior Year Budget 16.96 3,945,119 1,856,860 2,088,259 One-Time Prior Year Budget Adjustments Candidate Screening Tools — (80,000) — (80,000) One-Time Prior Year Budget Adjustments —(80,000)—(80,000) Adjustments to Costs of Ongoing Activities Salary and Benefits Adjustments — 225,334 — 225,334 General Fund Cost Allocation Plan — — 57,799 (57,799) Liability Insurance Allocated Charges — 9,006 — 9,006 Information Technology Allocated Charges — (4,855) — (4,855) Printing & Mailing Services Allocated Charges — (9,767) — (9,767) Workers’ Compensation Allocated Charges — 2,854 — 2,854 Adjustments to Costs of Ongoing Activities —222,572 57,799 164,773 Total FY 2021 Proposed Budget 16.96 4,087,691 1,914,659 2,173,032 HUMAN RESOURCES 200 HUMAN RESOURCES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET GENERAL LIABILITIES INSURANCE PROGRAM Description The City’s General Liability Program provides funding to cover flood, property, and various other insurance policies for City-owned equipment and machinery. The City is self-insured for the first $1.0 million in losses per occurrence and participates in a Joint Powers Authority for coverage up to $150 million per occurrence. Reserves for this program are set at an 85 percent confidence level, calculated by an outside actuarial consultant, for financial planning to ensure adequate resources are available for anticipated expenses. HUMAN RESOURCES HUMAN RESOURCES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 201 Budget Summary FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % Dollars by Division Non-Departmental 2,647,980 4,481,136 2,971,622 4,146,146 1,174,524 39.5% Total 2,647,980 4,481,136 2,971,622 4,146,146 1,174,524 39.5% Dollars by Category Salary & Benefits Total Salary & Benefits ——————% Contract Services 52,139 41,938 71,820 71,820 ——% General Expense 2,595,841 4,439,116 2,899,802 4,074,326 1,174,524 40.5% Rents & Leases —81 ————% Total Dollars by Expense Category 2,647,980 4,481,136 2,971,622 4,146,146 1,174,524 39.5% Revenues Charges to Other Funds 1,775,000 2,925,209 2,477,000 3,017,000 540,000 21.8% Operating Transfers-In 5,000 5,000 5,000 5,000 ——% Other Revenue 42,900 536,912 41,040 41,040 ——% Return on Investments 126,629 141,817 168,200 168,200 ——% Total Revenues 1,949,529 3,608,938 2,691,240 3,231,240 540,000 20.1% Positions by Division Total ——————% HUMAN RESOURCES 202 HUMAN RESOURCES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Budget Reconciliation Positions Expenditures Revenues Net General Liabilities Insurance Program Prior Year Budget —2,971,622 2,691,240 280,382 One-Time Prior Year Budget Adjustments None ———— Adjustments to Costs of Ongoing Activities Charges to Other Funds — — 540,000 (540,000) Umbrella Excess Liability Insurance Increase — 896,704 — 896,704 Property Loss Insurance Increase — 121,820 — 121,820 General Liability Insurance Claims — 156,000 — 156,000 Adjustments to Costs of Ongoing Activities —1,174,524 540,000 634,524 Total FY 2021 Proposed Budget —4,146,146 3,231,240 914,906 HUMAN RESOURCES HUMAN RESOURCES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 203 WORKERS’ COMPENSATION FUND Description The Workers’ Compensation Program provides wage and medical benefits for employees who sustain an injury or develop an occupational illness within the course and scope of employment. Reserves for this fund are set at an 85 percent confidence level, calculated by an outside actuarial consultant, for financial planning to ensure adequate resources are available for anticipated expenses. HUMAN RESOURCES 204 HUMAN RESOURCES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Budget Summary FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % Dollars by Division Non-Departmental 3,513,168 6,233,418 6,738,337 6,960,576 222,239 3.3% Total 3,513,168 6,233,418 6,738,337 6,960,576 222,239 3.3% Dollars by Category Salary & Benefits Healthcare 10,020 10,183 11,166 10,310 (856)(7.7)% Other Benefits 198,412 280,276 251,514 251,577 63 —% Pension 35,757 37,780 52,034 48,535 (3,499)(6.7)% Salary 124,472 125,882 161,746 166,278 4,532 2.8% Workers' Compensation 2,704,248 5,190,579 5,604,340 5,826,340 222,000 4.0% Total Salary & Benefits 3,072,909 5,644,701 6,080,800 6,303,039 222,239 3.7% Contract Services 4,750 6,750 7,079 7,079 ——% General Expense 432,049 580,155 650,458 650,458 ——% Operating Transfers-Out 3,460 1,813 ————% Total Dollars by Expense Category 3,513,168 6,233,418 6,738,337 6,960,576 222,239 3.3% Revenues Other Revenue 1,941,177 4,058,599 5,481,000 5,703,000 222,000 4.1% Return on Investments 415,022 461,055 540,400 474,700 (65,700)(12.2)% Total Revenues 2,356,199 4,519,654 6,021,400 6,177,700 156,300 2.6% Positions by Division Non-Departmental 1.00 1.00 1.48 1.48 ——% Total 1.00 1.00 1.48 1.48 ——% HUMAN RESOURCES HUMAN RESOURCES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 205 Staffing Job Classification FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Salary Senior Human Resources Administrator 1.00 1.00 1.00 1.00 —127,566 Sub-total: Full-Time Equivalent Positions 1.00 1.00 1.00 1.00 —127,566 Temporary/Hourly ——0.48 0.48 —29,163 Total Positions 1.00 1.00 1.48 1.48 —156,730 Budget Reconciliation Positions Expenditures Revenues Net Workers’ Compensation Fund Prior Year Budget 1.48 6,738,337 6,021,400 716,937 Adjustments to Costs of Ongoing Activities Workers' Compensation Program Temporary Staffing (0.48) (30,386) — (30,386) One-Time Prior Year Budget Adjustments (0.48)(30,386)—(30,386) Adjustments to Costs of Ongoing Activities Salary and Benefit Adjustments — 1,039 — 1,039 Charges to Other Funds — — 222,000 (222,000) Workers' Compensation Insurance Claims Adjustments — 222,000 — 222,000 Investment Income Adjustment — — (65,700) — Adjustments to Costs of Ongoing Activities —223,039 156,300 1,039 Total FY 2021 Base Budget 1.00 6,930,990 6,177,700 687,590 Budget Adjustments 1 Workers' Compensation Program Temporary Staffing 0.48 29,586 — 29,586 Total Budget Adjustments 0.48 29,586 —29,586 Total FY 2021 Proposed Budget 1.48 6,960,576 6,177,700 717,176 HUMAN RESOURCES 206 HUMAN RESOURCES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Budget Adjustments Budget Adjustments Positions Expenditures Revenues Net Workers’ Compensatio n Fund 1 Workers' Compensation Program Temporary Staffing 0.48 29,586 0 29,586 This action extends a 0.48 FTE Management Specialist for an additional one-year term to assist with workloads in workers’ compensation and risk management administration. This request will add capacity to maintain ongoing operations and assist with correct salary continuation for injured workers and accuracy of department timecard coding, tracking injured worker and return to work status and maintaining Human Resources claim files. This position will also assist in completing reporting for community facilities special event insurance, scheduling annual hearing audiogram testing, and other risk management programs as time permits. Staff will continue to assess the needs in workers’ compensation and risk management loss control and bring forward recommendations for ongoing support as part of future budget cycles. (Ongoing costs: $0) Performance Results This action provides resources necessary to implement audit recommendations that streamline the workers’ compensation reporting process and improve the accuracy and completeness of claim forms. INFORMATION TECHNOLOGY INFORMATION TECHNOLOGY • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 207 INFORMATION TECHNOLOGY Mission Statement The Information Technology Department’s mission is to provide innovative technology solutions that support City departments in delivering quality services to the community. Purpose The purpose of the Information Technol- ogy Department is to champion an inspir- ing and forward-leaning vision for citywide technology that reflects the unique role of the City of Palo Alto as a global leader in technology innovation; to provide a broad range of high-quality technology-related solutions to employees, departments, council members, and the community in order for each to meet their respective goals; to support and continuously improve essential technology infrastructure for enabling the day-to-day opera- tions of the City; and to create and maintain an exciting workplace for the Infor- mation Technology Department team that inspires high-performance and provides career growth opportunities. INFORMATION TECHNOLOGY 208 INFORMATION TECHNOLOGY • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET INFORMATION SECURITY SERVICES 1.00 Security Manager IT OPERATIONSƫ āċĀĀƫƫ ƫ *#!. ĉċĀĀƫ!*%+.ƫ!$*+(+#%/0 ćċĀĀƫ!/'0+,ƫ!$*%%* ƫƫƫ āċĀĀƫƫ!*%+.ƫ *#!)!*0ƫ*(5/0ƫ āċĀĀƫƫ!*%+.ƫ!$*+(+#%/0 1.00ƫƫT!chnologist āċĀĀƫƫ )%*%/0.0%2!ƫ//%/0*0 IT ENTERPRISE SERVICESƫ 1.00 I T Manager ą.00 Senior Technologist CHIEF INFORMATION OFFICERƫ ..!*ƫ1)+0+ƫĨ *0!.%)ĩ ƫĂĀĂāƫ ƫƫ 3ă.00 - Full-time Ā.ą8 - Hourly This organizational chart represents citywide Full-Time Equivalents (FTEs) for this department. The Department Summary tables summarize FTEs by position allocation. IT ƫ ƫ ƫ āċĀĀƫ ƫ *#!. ĆċĀĀƫ!*%+.ƫ!$*+(+#%/0 āċĀĀƫ1/%*!//ƫ*(5/0 INFORMATION TECHNOLOGY INFORMATION TECHNOLOGY • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 209 Description The Information Technology Department’s vision statement is, “Build and enable a leading smart and digital city.” A digital city broadly adopts innovative internet-based technologies to enable quality services and processes among City employees, citizens, visitors, and businesses. A smart city integrates technology and digital capabilities with the physical environment to improve livability, workability, and sustainability. In Fiscal Year 2013, the Information Technology Department embarked on a multi-year journey to transform itself into being a provider of higher-value information technology solutions and make steady progress towards building a leading digital city. The Information Technology Department provides a wide range of services for the City of Palo Alto through the following operational divisions: OFFICE OF THE CIO (OCIO) Provides leadership and strategic direction for the City of Palo Alto’s use of technology. OCIO provides advisory services to City departments regarding opportunities to leverage technology to improve government services. In addition, the division sets IT policies and directions for the IT Department and the City. This division is often the public-facing component of the team and is responsible for fostering mutually beneficial public-private, technology-related partnerships. The core services include IT strategic planning, financial management, contract management, communications, work force development, overall department administration, and data analyt- ics. IT PROJECT MANAGEMENT OFFICE (PMO) The IT PMO ensures successful execution of technology projects in a consistent and cost-con- scious manner. Through IT project governance the department maintains project awareness and manages the project assessment lifecycle. The IT PMO is the City’s center of excellence for tech- nology projects, within IT and all other City departments, through the promotion of standards, awareness, and education. IT OPERATIONS Maintains and supports all deployed back-end and front-end City technologies, including the process of retiring products and services. The team also ratifies standards working alongside other IT divisions. Services include enterprise architecture, service desk, infrastructure support, INFORMATION TECHNOLOGY 210 INFORMATION TECHNOLOGY • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET server hosting, office automation software support, technical training and support, and asset management. IT ENTERPRISE SERVICES Maintains a core set of large enterprise systems such as the Enterprise Resource Planning (ERP), Utility Billing & Customer Information System (CIS), Customer Relationship Management (CRM), Business Intelligence & Warehouse systems (BI/BW) for supporting Financial, Human Resource, Utilities business processes, information flow, reporting, data analytics, and enterprise data governance for the City. These services include all aspects of enterprise systems management such as planning, archi- tecture, development, integration, administration, support, maintenance, governance, and change management. INFORMATION SECURITY SERVICES Develops and implements the citywide information security program that includes the preser- vation of the availability, integrity, and confidentiality of the City’s information resources. These services include security policy and procedures, legal compliance, risk management, disaster recovery, and security audit. INFORMATION TECHNOLOGY INFORMATION TECHNOLOGY • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 211 Budget Summary FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % Dollars by Division CIP Technology Fund 2,094,809 590,523 7,892,514 3,781,000 (4,111,514)(52.1)% Enterprise Systems 3,115,197 3,039,401 3,460,217 3,512,043 51,826 1.5% Office of the CIO 2,599,009 2,754,666 3,562,652 3,348,467 (214,185)(6.0)% Operations 6,782,791 6,761,641 8,506,210 8,609,031 102,821 1.2% Project Services 1,653,497 1,693,828 2,014,474 2,133,363 118,889 5.9% Total 16,245,303 14,845,934 25,436,067 21,383,905 (4,052,162)(15.9)% Dollars by Category Salary & Benefits Healthcare 752,469 772,301 877,401 838,588 (38,813)(4.4)% Other Benefits 185,468 184,640 188,658 218,729 30,071 15.9% Overtime 3,913 3,439 19,564 20,073 509 2.6% Pension 1,316,033 1,376,049 2,046,081 1,913,742 (132,339)(6.5)% Retiree Medical 314,799 347,609 358,038 360,905 2,868 0.8% Salary 4,500,068 4,614,661 5,206,438 5,536,907 330,469 6.3% Workers' Compensation 7,873 92,201 137,314 142,876 5,562 4.1% Total Salary & Benefits 7,080,624 7,390,900 8,833,494 9,031,821 198,327 2.2% Allocated Charges 998,111 1,436,029 1,721,906 1,670,601 (51,305)(3.0)% Contract Services 4,361,775 3,913,285 5,140,131 5,126,509 (13,622)(0.3)% Facilities & Equipment 644,357 549,739 868,296 874,425 6,129 0.7% General Expense 452,063 417,447 475,179 475,179 ——% Operating Transfers-Out 161,418 99,746 30,590 31,150 560 1.8% Rents & Leases 362,749 374,357 388,957 401,220 12,263 3.2% Supplies & Material 49,732 45,335 85,000 85,000 ——% Capital Improvement Program 2,134,475 619,097 7,892,514 3,688,000 (4,204,514)(53.3)% Total Dollars by Expense Category 16,245,303 14,845,934 25,436,067 21,383,905 (4,052,162)(15.9)% Revenues Charges to Other Funds 13,774,906 14,570,588 14,409,229 14,717,911 308,682 2.1% From Other Agencies —15,000 ————% Operating Transfers-In 2,031,612 1,365,708 2,137,482 1,386,005 (751,477)(35.2)% INFORMATION TECHNOLOGY 212 INFORMATION TECHNOLOGY • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Other Revenue —318,973 103,264 17,713 (85,551)(82.8)% Return on Investments 488,765 561,304 644,400 549,200 (95,200)(14.8)% Total Revenues 16,295,283 16,831,573 17,294,375 16,670,828 (623,547)(3.6)% Positions by Division Enterprise Systems 9.50 9.00 9.00 9.00 ——% Office of the CIO 6.10 6.10 5.10 5.10 ——% Operations 14.48 14.48 14.48 14.48 ——% Project Services 7.00 7.00 8.00 8.00 ——% Total 37.08 36.58 36.58 36.58 ——% Staffing Job Classification FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Salary Administrative Assistant 1.00 1.00 1.00 1.00 —95,826 Assistant Director Administrative Services 0.10 0.10 0.10 0.10 —21,509 Business Analyst 1.00 1.00 1.00 1.00 —155,334 Desktop Technician 6.00 6.00 6.00 6.00 —558,605 Director Information Technology/ CIO 1.00 1.00 1.00 1.00 —220,085 Manager Information Technology 4.00 3.00 3.00 3.00 —490,194 Manager Information Technology Security 1.00 1.00 1.00 1.00 —167,086 Principal Business Analyst 1.00 1.00 1.00 1.00 —165,027 Senior Business Analyst 2.00 2.00 2.00 2.00 —300,893 Senior Management Analyst 1.00 1.00 1.00 1.00 —147,264 Senior Technologist 17.00 18.00 18.00 18.00 —2,631,283 Technologist 1.00 1.00 1.00 1.00 —155,334 Sub-total: Full-Time Equivalent Positions 36.10 36.10 36.10 36.10 —5,108,440 Temporary/Hourly 0.98 0.48 0.48 0.48 —46,056 Total Positions 37.08 36.58 36.58 36.58 —5,154,497 Budget Summary FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % INFORMATION TECHNOLOGY INFORMATION TECHNOLOGY • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 213 Budget Reconciliation Positions Expenditures Revenues Net Technology Fund Prior Year Budget 36.58 25,436,067 17,294,375 8,141,692 One-Time Prior Year Budget Adjustments None Adjustments to Costs of Ongoing Activities Salary and Benefits — 99,765 — 99,765 Return on Investments & Other Revenue — — (94,752) 94,752 Contract Adjustments & Equipment Cost Changes — (6,933) — (6,933) Rents and Leases — 12,263 — 12,263 Transfer from General Fund-Technology Surcharge — — 29,523 (29,523) Charges to Other Funds-Technology Services — — 308,682 (308,682) Capital Improvement Funding —(4,111,514) (867,000) (3,244,514) General Fund Cost Allocation Plan — (61,200) — (61,200) Communication Services Allocated Charges — 1,500 — 1,500 General Liability Insurance Allocated Charges — 13,429 — 13,429 Printing & Mailing Services Allocated Charges — (1,262) — (1,262) Refuse Allocated Charges — 31 — 31 Utilities Allocated Charges — (5,534) — (5,534) Vehicle Replacement & Maint. Allocated Charges — 1,731 — 1,731 Workers' Compensation Allocated Charges — 5,562 — 5,562 Adjustments to Costs of Ongoing Activities —(4,052,162)(623,547)(3,428,615) Total FY 2021 Proposed Budget 36.58 21,383,905 16,670,828 4,713,077 LIBRARY LIBRARY • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 215 LIBRARYMission Statement The Palo Alto City Library connects our diverse community through knowledge, resources and opportunities. We nurture innovation, discovery, and delight. Purpose The purpose of the Library Department is to provide exceptional, responsive public service to Palo Alto residents and employ- ees; promote exploration of library resources to support learning, recreation, and personal enrichment; foster a love of reading, creative expression, and commu- nity engagement for all ages; and develop library facilities, technology, and staff to create a welcoming, inclusive environment in which to share valuable resources and skilled expertise. LIBRARY 216 LIBRARY • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET LIBRARY DIRECTOR 50$.%ƫ*0$ƫĨ *0!.%)ĩ PUBLIC SERVICES DIVISION 1.00 Assistant Director RINCONADA LIBRARY 1.00 Library Services Manager 1.00 Supervising Librarian ā.00 ƫSenior Librarian 1.00 Coordinator, Library Program ă.00 Librarian 1.00 Library Associate 3.00 Library Specialist CHILDREN’S LIBRARY ā.00ƫƫƫƫƫS1,!.2%/%*# Librarian ā.00 !*%+.ƫLibrarian 1.00ƫƫƫƫƫL%..%* 1.00ƫƫƫƫƫLibrary //+%0! MITCHELL PARK LIBRARY 1.00 Library Services Manager Ă.00ƫƫƫƫƫSupervising Librarian ā.00 ƫSenior Librarian 3.00 Librarian 1.00 Library Associate 5.00 Library Specialist COLLEGE TERRACE LIBRARY 1.00 Library Associate 0.50 Library Specialist DOWNTOWN LIBRARY 1.00 Library Associate INFORMATION TECHNOLOGY & COLLECTIONS DIVISION 1.00 Division Head, IT & Collections COLLECTIONS & TECHNOLOGY 2.00 Senior Librarian 2.00 Library Associate Ă.00 Library Specialist 1.00 Business Analyst DIGITAL SERVICES & E-BRANCH 1.00 2.00 1.00 Library Services Manager Senior Librarian Library Specialist FY 20Ăā POSITION TOTALS 4ć.50 – Full-Time 1ą.Ĉ8 - Hourly This organizational chart represents citywide Full-Time Equivalents (FTEs) for this department. The Department Summary tables summarize FTEs by position allocation ADMINISTRATION 1.00 Management Analyst 1.00 Administrative Associate III LIBRARY LIBRARY • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 217 Description The Library provides a wide range of public services for the City of Palo Alto through the following: PUBLIC SERVICES & PROGRAMS Offers a variety of programs free of charge to library users of all ages, interests, and abilities, to provide educational, self-help, recreational, technological, and multi-lingual outreach. When appropriate, partners with other civic, non-profit, business, and educational organizations to present these programs. INFORMATION, TECHNOLOGY, & COLLECTIONS Library collections include a diverse selection of print and non-print materials, and digital resources such as electronic books, magazines, and media, to meet the educational, informa- tional, and recreational needs of its clientele, reflecting the variety of languages, cultures, and interests of our community. Provides opportunities (sometimes through experimental partner- ships with other agencies) for the public to access a variety of technologies both inside and outside library facilities, including hardware devices, online databases, free WiFi, mobile applica- tions. BUILDINGS, SUPPORT, & ADMINISTRATION Provides information, training, and support for City employees and the public, and ensures that all aspects of library services and policies are delivered with the highest degree of public stew- ardship in mind. By funding major facility renovations and improvements to three libraries through a dedicated library bond and two previous renovation projects, Palo Alto has modern libraries offering comfortable, inviting, and flexible spaces for everyone in our community to gather and learn. LIBRARY 218 LIBRARY • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Budget Summary FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % Dollars by Division Administration 1,164,911 1,244,458 1,187,866 1,083,156 (104,710)(8.8)% Collection and Technical Services 2,591,757 2,785,373 2,817,967 2,955,456 137,489 4.9% Public Services 5,364,455 5,318,107 6,308,195 6,409,241 101,046 1.6% Total 9,121,123 9,347,938 10,314,028 10,447,853 133,825 1.3% Dollars by Category Salary & Benefits Healthcare 892,788 845,474 990,332 943,369 (46,963)(4.7)% Other Benefits 127,532 119,568 132,680 162,338 29,658 22.4% Overtime 12,020 10,079 72,406 74,289 1,883 2.6% Pension 1,096,212 1,087,781 1,484,589 1,537,777 53,188 3.6% Retiree Medical 458,425 444,128 457,452 461,399 3,947 0.9% Salary 4,329,080 4,302,479 4,624,038 4,756,815 132,776 2.9% Workers' Compensation 3,107 100,737 148,509 154,524 6,015 4.1% Total Salary & Benefits 6,919,165 6,910,246 7,910,006 8,090,510 180,504 2.3% Allocated Charges 1,024,363 1,132,770 1,259,768 1,207,897 (51,871)(4.1)% Contract Services 379,141 405,532 337,993 343,185 5,192 1.5% Facilities & Equipment 24,131 1,599 9,900 9,900 ——% General Expense 97,546 62,219 88,430 91,430 3,000 3.4% Operating Transfers-Out —59,859 ————% Supplies & Material 676,778 775,713 707,931 704,931 (3,000)(0.4)% Total Dollars by Expense Category 9,121,123 9,347,938 10,314,028 10,447,853 133,825 1.3% Revenues Charges for Services 22,988 20,240 25,461 25,461 ——% Operating Transfers-In —15,000 ————% Other Revenue 37,029 63,504 60,123 51,400 (8,723)(14.5)% Other Taxes and Fines 95,675 91,614 124,433 39,255 (85,178)(68.5)% Total Revenues 155,691 190,358 210,017 116,116 (93,901)(44.7)% LIBRARY LIBRARY • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 219 Positions by Division Administration 0.40 0.40 0.40 0.40 ——% Collection and Technical Services 13.24 13.55 13.55 13.59 0.04 0.3% Public Services 49.94 48.63 47.33 47.29 (0.04)(0.1)% Total 63.58 62.58 61.28 61.28 ——% Staffing Job Classification FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Salary Administrative Associate III 1.00 1.00 1.00 1.00 —84,032 Assistant Director Library Services 1.00 1.00 1.00 1.00 —173,326 Business Analyst 1.00 1.00 1.00 1.00 —155,334 Coordinator Library Programs 1.00 1.00 1.00 1.00 —92,706 Director Libraries 1.00 1.00 1.00 1.00 —237,994 Division Head Library Services 1.00 1.00 1.00 1.00 —161,824 Librarian 7.00 7.00 6.00 6.00 —489,840 Library Associate 7.00 7.00 7.00 7.00 —513,531 Library Specialist 12.50 11.50 11.50 11.50 —798,210 Management Analyst 1.00 1.00 1.00 1.00 —92,248 Manager Library Services 4.00 4.00 3.00 3.00 —364,104 Senior Librarian 9.00 9.00 8.00 8.00 —741,645 Supervising Librarian 2.00 2.00 4.00 4.00 —389,314 Sub-total: Full-Time Equivalent Positions 48.50 47.50 46.50 46.50 —4,294,108 Temporary/Hourly 15.08 15.08 14.78 14.78 —776,881 Total Positions 63.58 62.58 61.28 61.28 —5,070,989 Budget Summary FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % LIBRARY 220 LIBRARY • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Budget Reconciliation Positions Expenditures Revenues Net General Fund Prior Year Budget 61.28 10,314,028 210,017 10,104,011 One-Time Prior Year Budget Adjustments Pacific Library Partnership (PLP) Grant Funds Distribution — (8,723) (8,723) — One-Time Prior Year Budget Adjustments —(8,723)(8,723)— Adjustments to Costs of Ongoing Activities Salary and Benefits Adjustments — 174,489 — 174,489 Library Equipment Maintenance Expenses Adjustment — 13,915 — 13,915 General Liability Insurance Allocated Charges — 13,292 — 13,292 Information Technology Allocated Charges — (55,443) — (55,443) Printing & Mailing Allocated Charges — (128) — (128) Refuse Allocated Charges — 10,868 — 10,868 Stormwater Management Allocated Charges — 60 — 60 Utilities Allocated Charges — (20,934) — (20,934) Vehicle Replacement & Maintenance Charges — 413 — 413 Workers Compensation Allocated Charges — 6,015 — 6,015 Adjustments to Costs of Ongoing Activities —142,548 —142,548 Total FY 2021 Base Budget 61.28 10,447,853 201,294 10,246,559 Budget Proposals 1 Elimination of Library Late Fines for Overdue Adult Materials — — (85,178) 85,178 Budget Changes ——(85,178)85,178 Total FY 2021 Proposed Budget 61.28 10,447,853 116,116 10,331,737 LIBRARY LIBRARY • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 221 Budget Adjustments Budget Adjustments Positions Expenditures Revenues Net General Fund 1 Elimination of Library Late Fines for Overdue Adult Materials 0.00 0 (85,178)85,178 This ongoing action eliminates budgeted revenue from library late fines for overdue adult materials. This action aligns the budget with the updated policy to no longer charge these fines. This change is recommended in response to industry trends towards removing barriers to access, implementation of automatic renewals, and the recommendation of the Library Advisory Commission on August 22, 2019. Eliminating adult library late fines will also decrease administrative work associated with the collection and enforcement of fines. (Ongoing costs: $85,178) Performance Results This elimination of late fines for overdue adult materials will align the budget with Library policy, reduce barriers to access, and reduce administrative work. OFFICE OF EMERGENCY SERVICES OFFICE OF EMERGENCY SERVICES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 223 OFFICE OF EMERGENCY SERVICESMission Statement The mission of the Office of Emergency Services is to prevent, prepare for, mitigate, respond to, and recover from all hazards. Purpose The purpose of the Office of Emergency Services is to develop, maintain, and sus- tain a citywide, comprehensive, all-hazard, risk-based emergency management pro- gram that engages the whole community. OFFICE OF EMERGENCY SERVICES 224 OFFICE OF EMERGENCY SERVICES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET ƫĂĀĂāƫ ƫƫ 3.00 - Full-time 0.48 - Hourly This organizational chart represents citywide Full-Time Equivalents (FTEs) for this department. The Department Summary tables summarize FTEs by position allocation. 1.00 Office of Emergency Services Coordinator 1.00 Program Assistant EMERGENCY SERVICES DIRECTOR Kenneth Dueker OFFICE OF EMERGENCY SERVICES OFFICE OF EMERGENCY SERVICES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 225 Description The Office of Emergency Services (OES) develops, maintains, and sustains a citywide, comprehensive, all-hazard, risk-based emergency management program that engages the whole community. Budget Summary FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % Dollars by Division Emergency Services 968,477 1,243,411 1,728,080 1,585,814 (142,266)(8.2)% Total 968,477 1,243,411 1,728,080 1,585,814 (142,266)(8.2)% Dollars by Category Salary & Benefits Healthcare 35,781 37,365 42,910 60,871 17,961 41.9% Other Benefits 12,098 13,831 14,719 17,167 2,448 16.6% Overtime 2,283 5,300 ————% Pension 101,659 113,636 138,382 144,134 5,752 4.2% Retiree Medical 54,299 49,844 51,339 54,087 2,748 5.4% Salary 383,382 395,155 420,657 440,192 19,536 4.6% Workers' Compensation 1,596 16,272 22,402 24,229 1,827 8.2% Total Salary & Benefits 591,098 631,402 690,409 740,681 50,273 7.3% Allocated Charges 54,407 104,411 116,550 218,003 101,453 87.0% Contract Services 114,993 304,689 559,500 465,508 (93,992)(16.8)% Facilities & Equipment 134,493 122,131 277,000 77,000 (200,000)(72.2)% General Expense 28,788 29,276 34,700 34,700 ——% Operating Transfers-Out —5,631 ————% Supplies & Material 44,699 45,872 49,922 49,922 ——% Total Dollars by Expense Category 968,477 1,243,411 1,728,080 1,585,814 (142,266)(8.2)% OFFICE OF EMERGENCY SERVICES 226 OFFICE OF EMERGENCY SERVICES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Revenues Charges to Other Funds 94,623 96,336 95,589 95,589 ——% From Other Agencies 2,600 —200,000 —(200,000)(100.0)% Total Revenues 97,223 96,336 295,589 95,589 (200,000)(67.7)% Positions by Division Emergency Services 3.48 3.48 3.48 3.48 ——% Total 3.48 3.48 3.48 3.48 ——% Staffing Job Classification FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Salary Director Office of Emergency Services 1.00 1.00 1.00 1.00 —167,794 Office of Emergency Services Coordinator 1.00 1.00 1.00 1.00 —142,189 Program Assistant 1.00 ————— Program Assistant II —1.00 1.00 1.00 —85,488 Sub-total: Full-Time Equivalent Positions 3.00 3.00 3.00 3.00 —395,470 Temporary/Hourly 0.48 0.48 0.48 0.48 —35,942 Total Positions 3.48 3.48 3.48 3.48 —431,413 Budget Summary FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % OFFICE OF EMERGENCY SERVICES OFFICE OF EMERGENCY SERVICES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 227 Budget Reconciliation Positions Expenditures Revenues Net General Fund Prior Year Budget 3.48 1,728,080 295,589 1,432,491 One-Time Prior Year Budget Adjustments Mobile Solar Energy Generation and Storage Trailer — (200,000) (200,000) — One-Time Prior Year Budget Adjustments —(200,000)(200,000)— Adjustments to Costs of Ongoing Activities Salary and Benefits — 48,446 — 48,446 Contract Services Realignment (Shift to Communication Services and Utilities Allocation) — (100) — (100) Information Technology Allocated Charges — 423 — 423 Liability Insurance Allocated Charges — 2,046 — 2,046 Printing & Mailing Services Allocated Charges — 2,363 — 2,363 Vehicle Replacement & Maintenance Allocated Charges —2,729 —2,729 Workers' Compensation Allocated Charges — 1,827 — 1,827 Adjustments to Costs of Ongoing Activities —57,734 —57,734 Total FY 2021 Proposed Budget 3.48 1,585,814 95,589 1,490,225 PLANNING AND DEVELOPMENT SERVICES PLANNING AND DEVELOPMENT SERVICES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 229 PLANNING AND DEVELOPMENT SERVICESMission Statement The mission of the Planning and Development Services Department is to provide effective implementation of land use development, planning, housing and environmental policies, and efficient processing of building permit applications that maintain and enhance the City as a safe, vital, and attractive community. Purpose The Planning and Development Services Department is responsible for a range of actions aimed at preserving and enhancing the quality of life in Palo Alto, protecting the public health, safety, and general welfare while facilitating land use and development decisions through consistent and transparent processes. PLANNING AND DEVELOPMENT SERVICES 230 PLANNING AND DEVELOPMENT SERVICES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET āċĀĀƫƫ//%/0*0ƫ1%( %*#ƫ""%%( ƫ ĥƫ ƫƫ ƫ ƫ āċĀĀƫƫƫ(**%*#ƫ *#!.ƫ ăċĀĀƫƫ!2!(+,)!*0ƫ.+&!0 ƫƫƫƫƫƫƫƫƫ++. %*0+.ƫ ĂċĀĀƫƫ!2!(+,)!*0ƫ.+&!0 ƫƫƫƫƫƫƫƫƫ++. %*0+.ƫ ƫ ĥ ƫ āċĀĀƫƫ(**%*#ƫ *#!. ąċĀĀƫ1%( %*#ƫ */,!0+. ƫƫƫƫƫƫƫƫƫ,!%(%/0 ĥƫ Ă.00ƫSenior ManagementƫAnalystƫƫ ă.00ƫ )%*%/0.ativeƫAssociate IIIƫƫ Ă.00ƫ ministrative /sociate IIƫ āċĀĀƫƫ.+#.)ƫ//%/0*0ƫ ƫ ĥ āċĀĀƫƫ!*%+.ƫ1/%*!//ƫ*(5/0ƫ āċĀĀƫƫ!*%+.ƫ(**!. āċĀĀƫƫ )%*%/0.0%2!ƫ//+%0!ƫ ƫ āċĀĀƫƫ )%*%/0.0%2!ƫ//+%0!ƫ ƫ ƫĒƫ ƫ ƫ +*0$*ƫ%0 ƫĂĀĂāƫPOSITION TOTALS ĆĀċĀĀ - Full-timeƫƫ ăċĀă - Hourly ƫƫƫƫƫƫ ƫ ĥ ƫƫƫƫƫƫƫƫƫ āċĀĀƫƫ(**%*#ƫ *#!. āċĀĀƫƫ//+%0!ƫ(**!. ăċĀĀƫ1%( %*#ĥ(**%*#ƫ!$*%%*ƫ āċĀĀƫƫ+ !ƫ*"+.!)!*0ƫ! ƫ ĂċĀĀƫ+ !ƫ*"+.!)!*0ƫ""%!. ƫ ƫ āċĀĀƫƫ(**%*#ƫ *#!.ƫ āċĀĀƫƫ.%*%,(ƫ(**!.ƫ ĂċĀĀƫ!*%+.ƫ(**!. ăċĀĀƫ(**!. ĂċĀĀƫ//+%0!ƫ(**!. ƫƫ ƫ āċĀĀƫƫ(**%*#ƫ *#!. āċĀĀƫƫ.%*%,(ƫ(**!. āċĀĀƫƫ!*%+.ƫ(**!.ƫƫƫƫƫƫƫƫƫƫ āċĀĀƫƫ(**!. 1.00ƫAssistant Director 1.00ƫ$%!"ƫ1%( %*#ƫ""%%(1.00ƫ$%!"ƫ(**%*#ƫ""%%( 1.00ƫ )%*%/0.0%2!ƫ//%/0*0 PLANNING AND DEVELOPMENT SERVICES PLANNING AND DEVELOPMENT SERVICES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 231 Description The Planning and Development Services (PDS) Department is responsible for the following functions: ADMINISTRATION Provides personnel, contract, budget, operations, and project support, including managing and measuring performance metrics and responding to data requests for the department. The divi- sion also supports the Planning and Transportation Commission, Architectural Review Board, Historic Resources Board, and other public meetings. CODE ENFORCEMENT Responsible for enforcement of code requirements and conditions of approval. CURRENT PLANNING Responsible for the review of public and private projects pursuant to the California Environmen- tal Quality Act (CEQA), the City’s Zoning Ordinance, and the Comprehensive Plan. Activities include the review of applications submitted for planning entitlements, review of applications for building permits, and providing general information to the public regarding the City’s zoning and Comprehensive Plan provisions. DEVELOPMENT SERVICES Responsible for taking in applications for entitlements and permits, routing and coordinating with other departments such as Public Works, Fire, and Utilities to ensure that the proposed and completed construction complies with all state and local code requirements, including Green Building requirements. LONG RANGE PLANNING Responsible for updating and maintaining the City’s Comprehensive Plan, including its Housing Element. The division also prepares zoning ordinance amendments and site-specific plans and is responsible for data and analysis to support a wide variety of planning projects. PLANNING AND DEVELOPMENT SERVICES 232 PLANNING AND DEVELOPMENT SERVICES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Budget Summary FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % Dollars by Division Administration 4,337,696 4,371,624 4,943,202 5,253,633 310,431 6.3% Building 5,635,155 5,403,597 5,128,576 5,318,943 190,367 3.7% Fire 2,073,943 2,423,849 2,454,984 2,561,977 106,994 4.4% Green Building 386,349 200,378 304,000 304,000 ——% Planning Counter Support 644,137 634,305 789,567 870,620 81,053 10.3% Planning 4,230,918 4,607,829 5,492,973 5,177,747 (315,226)(5.7)% Public Works 942,688 1,096,344 1,249,830 1,312,712 62,882 5.0% Total 18,250,886 18,737,926 20,363,132 20,799,632 436,500 2.1% Dollars by Category Salary & Benefits Healthcare 1,018,091 965,048 1,334,024 1,205,912 (128,112)(9.6)% Other Benefits 193,234 182,876 217,265 264,609 47,344 21.8% Overtime 287,343 144,855 97,854 100,398 2,544 2.6% Pension 2,105,557 1,985,454 2,852,430 2,919,703 67,273 2.4% Retiree Medical 664,519 645,983 665,362 669,546 4,184 0.6% Salary 6,415,444 6,064,343 7,293,386 7,491,178 197,792 2.7% Workers' Compensation 101,488 172,769 241,480 244,873 3,393 1.4% Total Salary & Benefits 10,785,675 10,161,329 12,701,803 12,896,220 194,418 1.5% Allocated Charges 1,647,953 2,056,715 2,198,509 2,058,729 (139,780)(6.4)% Contract Services 4,161,066 4,682,121 3,634,699 3,909,899 275,200 7.6% Facilities & Equipment 2,405 13,483 15,650 15,650 ——% General Expense 468,571 452,650 522,514 521,514 (1,000)(0.2)% Operating Transfers-Out 33,933 121,412 7,607 —(7,607)(100.0)% Rents & Leases 1,092,015 1,216,867 1,241,381 1,356,650 115,269 9.3% Supplies & Material 59,268 33,349 40,969 40,969 ——% Total Dollars by Expense Category 18,250,886 18,737,926 20,363,132 20,799,632 436,500 2.1% Revenues Charges for Services 10,470,401 8,971,258 9,803,816 9,653,690 (150,125)(1.5)% Charges to Other Funds 362,500 761,268 21,797 22,364 567 2.6% PLANNING AND DEVELOPMENT SERVICES PLANNING AND DEVELOPMENT SERVICES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 233 Other Revenue 270,931 17,884 3,413 3,413 ——% Other Taxes and Fines 120,133 381,153 25,637 25,773 136 0.5% Permits and Licenses 8,055,975 7,582,819 8,209,915 8,756,691 546,777 6.7% Total Revenues 19,277,459 17,714,382 18,064,577 18,461,932 397,355 2.2% Positions by Division Administration 12.16 12.01 13.44 13.74 0.30 2.23% Building 17.81 17.28 15.60 15.60 ——% Fire 7.08 6.88 6.88 6.88 ——% Planning Counter Support 5.09 5.09 4.50 4.75 0.25 5.56% Planning 19.66 19.94 19.45 17.75 (1.70)(8.74)% Public Works 4.81 5.50 5.50 5.50 ——% Total 66.50 66.70 65.37 64.22 (1.15)(1.76)% Staffing Job Classification FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Salary Administrative Assistant 2.00 2.00 1.00 1.00 —79,830 Administrative Associate I 1.00 1.00 1.00 1.00 —72,176 Administrative Associate II 3.00 2.80 2.80 2.80 —213,287 Administrative Associate III 4.00 3.59 4.00 4.00 —330,491 Assistant Chief Building Official 1.00 1.00 1.00 1.00 —151,258 Assistant Director PCE 1.00 1.00 1.00 1.00 —190,549 Associate Engineer 0.75 0.67 0.22 0.22 —27,442 Associate Planner 1.00 3.27 3.15 3.00 (0.15)327,101 Building Inspector Specialist 4.00 4.00 4.00 4.00 —470,080 Building/Planning Technician 3.00 3.00 3.00 3.00 —265,262 Business Analyst 1.00 1.00 ———— Chief Building Official 1.00 1.00 1.00 1.00 —189,530 Chief Planning Official 1.00 1.00 1.00 1.00 —167,752 Chief Transportation Official 0.43 0.64 ———— Code Enforcement Officer 2.00 2.00 2.00 2.00 —211,494 Budget Summary FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % PLANNING AND DEVELOPMENT SERVICES 234 PLANNING AND DEVELOPMENT SERVICES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Code Enforcement-Lead 1.00 1.00 1.00 1.00 —113,110 Coordinator Transportation Systems Management 0.88 0.74 ———— Deputy Chief/Fire Marshal 0.80 0.80 0.80 0.80 —172,124 Development Project Coordinator II 2.00 2.00 2.00 2.00 —192,150 Development Project Coordinator III 3.00 3.00 3.00 3.00 —317,928 Development Services Director 1.00 1.00 ———— Director Planning/Community Environment 1.00 1.00 1.00 1.00 —245,523 Engineer 0.64 0.64 0.64 0.64 —89,923 Engineering Technician III 1.78 1.78 1.78 1.78 —175,420 Fire Inspector 3.20 3.20 3.20 3.20 —526,356 Hazardous Materials Inspector 1.60 1.60 1.60 1.60 —263,178 Industrial Waste Inspector 0.01 0.01 0.01 0.01 —974 Industrial Waste Investigator 0.35 0.35 0.35 0.35 —38,293 Inspector, Field Services 0.68 0.68 0.68 0.68 —72,290 Landscape Architect Park Planner —0.50 0.50 0.50 —59,509 Management Analyst 1.99 1.81 0.01 0.01 —1,082 Manager Development Center 1.00 1.00 ———— Manager Environmental Control Program 0.10 0.10 0.10 0.10 —12,921 Manager Planning 4.00 3.00 5.00 5.00 —714,377 Manager Urban Forestry 0.04 0.04 0.04 0.04 —6,528 Parking Operations-Lead —0.10 ———— Planner 4.00 4.00 4.00 4.00 —458,598 Planning Arborist 0.29 ————— Planning Division Manager —1.00 ———— Principal Management Analyst ——1.00 —(1.00)— Principal Planner —1.00 2.00 2.00 —245,606 Program Assistant ——1.00 —(1.00)— Program Assistant I ———1.00 1.00 79,560 Program Assistant II 0.60 ————— Project Engineer 0.53 0.83 0.13 0.13 —19,658 Staffing Job Classification FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Salary PLANNING AND DEVELOPMENT SERVICES PLANNING AND DEVELOPMENT SERVICES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 235 Senior Business Analyst ——1.00 1.00 —158,746 Senior Engineer 0.46 0.46 0.46 0.46 —79,472 Senior Industrial Waste Investigator 0.01 0.01 0.01 0.01 —1,247 Senior Management Analyst 2.00 1.88 2.00 2.00 —293,571 Senior Planner 6.75 3.88 3.60 3.60 —484,623 Supervisor Inspection and Surveying 0.27 0.27 0.27 0.27 —36,863 Traffic Engineering-Lead 0.38 0.65 0.10 0.10 —15,912 Transportation Planning Manager 0.20 0.41 ———— Sub-total: Full-Time Equivalent Positions 66.74 66.71 62.45 61.30 (1.15)7,571,797 Temporary/Hourly 4.91 4.88 2.92 2.92 —267,394 Total Positions 71.65 71.59 65.37 64.22 (1.15)7,839,190 Staffing Job Classification FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Salary PLANNING AND DEVELOPMENT SERVICES 236 PLANNING AND DEVELOPMENT SERVICES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Budget Reconciliation Positions Expenditures Revenues Net General Fund Prior Year Budget 65.37 20,363,132 18,064,577 2,298,555 One-Time Prior Year Budget Adjustments Planning and Development Services Department Staffing Reorganization (1.00) (267,683) — (267,683) Planning and Development Services Department Vacancies — 152,393 — 152,393 One-Time Prior Year Budget Adjustments (1.00)(115,290)—(115,290) Adjustments to Costs of Ongoing Activities Salary and Benefits (0.15) 305,315 — 305,315 Revenue Adjustment (align with cost recovery levels)— — 397,354 (397,354) On-Call Contracts Increase — 165,200 — 165,200 Rent and Lease Expenditure (office space lease at 526 Bryant St)— 115,269 — 115,269 Utilities Transfer for Electric Services — (7,607) — (7,607) Communication Services Allocated Charges — 800 — 800 Information Technology Allocated Charges — (101,606) — (101,606) Liability Insurance Allocated Charges — 11,979 — 11,979 Printing & Mailing Services Allocated Charges — (67,119) — (67,119) Utilities Allocated Charges — (30,600) — (30,600) Vehicle Replacement & Maintenance Allocated Charges — 46,767 — 46,767 Workers’ Compensation Allocated Charges — 3,393 — 3,393 Adjustments to Costs of Ongoing Activities (0.15)441,790 397,354 44,436 Total FY 2021 Base Budget 64.22 20,689,632 18,461,931 2,227,701 Budget Adjustments 1 Planning and Development Services Fee Study — 110,000 — 110,000 Total Budget Adjustments —110,000 —110,000 Total FY 2021 Proposed Budget 64.22 20,799,632 18,461,931 2,337,701 PLANNING AND DEVELOPMENT SERVICES PLANNING AND DEVELOPMENT SERVICES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 237 Budget Adjustments Budget Adjustments Positions Expenditures Revenues Net General Fund 1 Planning and Development Services Fee Study 0.00 110,000 0 110,000 This action provides one-time funding for a fee analysis of Planning and Development Services Department fees. In Fiscal Year 2020, the Planning and Community Environment Department (PCE) and Development Services Department (DSD) merged into a single Planning and Development Services (PDS) Department. With this merge, staff recommends a study of municipal fees to determine staff time and related costs spent on each fee-related activity. Adjustments to Planning and Development Services Department fees, and potential establishment of new fees, will be brought forward for City Council consideration during Fiscal Year 2021 or as part of the Fiscal Year 2022 Proposed Municipal Fee Schedule. (Ongoing costs: $0) Performance Results This action will ensure that fees are set at proper levels and will allow the City Council and the community to be informed about the cost recovery level for fee-related activities. POLICE POLICE • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 239 POLICEMission Statement To proudly serve and protect the public with respect and integrity. Purpose In line with the six pillars of the Depart- ment of Justice Implementation Guide- book on 21st Century Policing, the purpose of the Police Department is to build trust and legitimacy, provide for policy and oversight, implement modern technology solutions and social media platforms, focus on community policing and crime reduc- tion, implement officer training and educa- tion, and ensure officer safety and wellness. POLICE 240 POLICE • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET ƫ POLICE PERSONNEL SERVICES 1.00 Police Lieutenant 1.00 Police Agent/Officer 1.00 Administrative Associate II 1.00 Program Assistant II ADMINISTRATIONƫƫƫƫƫ 1.0Āƫƫ+))1*%0%+*/ƫ *#!.ƫƫƫƫƫƫƫ 1.00 Senior Management Analyst 1.00 Administrative Assistant TECHNICAL SERVICES 1.00 Deputy Director, Technical Services 1.00 Court Liaison 2.00 Business Analyst 1.00 Crime Analyst 1.00 Code Enforcement Officer 1.00 Communications Technician 0.50 GIS Specialistƫ DISPATCHING SERVICES 1.00 Public Safety Communications Manager 4.00 Public Safety Dispatcher - Lead āć.00 Public Safety Dispatcher INFORMATION MANAGEMENT 1.00 Public Safety Program Manager 1.00 Police Records Specialist - Lead 6.00 Police Records Specialist FIELD SERVICES 1.00 Police Captain 1.00 Police Agent/Officer 1.00 Administrative Associate II FIELD SERVICES (PATROL) 3.00 Police Lieutenant 10.00 Police Sergeant 50.00 Police Agent/ Officer INVESTIGATIVE SERVICES 1.00 Police Captain 1.00 Administrative Associate II 2.00 Police Sergeant 11.00 Police Agent/ Officer 2.00 Property/Evidence Technician POLICE CHIEFƫ +!.0ƫ +*/!* FY 20Ăā POSITION TOTALSƫ āĆĀċĆĀ - Full-time ăċăĀ - Hourly This organizational chart represents citywide Full-Time Equivalents (FTEs) for this department. The Department Summary tables summarize FTEs by position allocation. 1.00 Assistant Chief of Police āċĀĀƫƫ*%)(ƫ+*0.+(ƫ""%!. ƫƫƫƫƫƫƫƫġ! ƫƫƫƫƫ Čƫ ČƫĒƫ ƫƫ āċĀĀƫƫ+(%!ƫ%!10!**0ƫ ĂċĀĀƫƫ+(%!ƫ!.#!*0ƫ ćċĀĀƫƫ+(%!ƫ#!*0ĥ""%!.ƫ āċĀĀƫƫ1(%ƫ"!05ƫ .+#.)ƫ *#!. ĉċĀĀƫ+))1*%05ƫ!.2%!ƫ ""%!. ăċĀĀƫ*%)(ƫ+*0.+(ƫ""%!. POLICE POLICE • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 241 Description The Police Department provides a wide range of public safety services for the City of Palo Alto through the following divisions: FIELD SERVICES Responsible for police response, critical incident resolution, regional assistance response, and police services for special events. TECHNICAL SERVICES Provides 911 dispatch services for Police, Fire, Utilities, Public Works, Stanford, and Police infor- mation technology management. INVESTIGATIONS Conducts police investigations, oversees storage and maintenance of evidence, and coordinates some youth services activities. TRAFFIC SERVICES Responsible for traffic enforcement, complaint resolution, and school safety. PARKING SERVICES Responsible for parking enforcement, parking citations and adjudication, and abandoned vehi- cle abatement. POLICE PERSONNEL SERVICES Oversees police hiring, retention, personnel records, and training. ANIMAL CONTROL Provides regional animal control and enforcement. POLICE 242 POLICE • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Budget Summary FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % Dollars by Division Administration 1,306,311 1,703,481 1,253,980 1,261,088 7,109 0.6% Animal Control 1,591,383 1,392,255 888,578 769,203 (119,375)(13.4)% Field Services 20,053,299 21,122,982 22,695,327 24,720,801 2,025,474 8.9% Investigations and Crime Prevention Services 4,651,584 5,013,053 5,359,118 5,458,300 99,183 1.9% Parking Services 1,517,466 1,670,222 1,751,550 1,809,810 58,260 3.3% Police Personnel Selection 1,431,168 1,392,010 1,483,792 1,499,123 15,331 1.0% Technical Services 8,414,141 9,026,838 9,729,426 10,204,250 474,823 4.9% Traffic Services 1,017,739 1,254,156 1,504,711 1,387,498 (117,213)(7.8)% Total 39,983,091 42,574,997 44,666,482 47,110,074 2,443,592 5.5% Dollars by Category Salary & Benefits Healthcare 2,779,207 2,739,511 3,231,563 3,168,458 (63,105)(2.0)% Other Benefits 1,027,281 1,111,984 752,408 787,513 35,105 4.7% Overtime 2,286,527 2,604,366 1,842,231 1,948,180 105,949 5.8% Pension 7,108,339 7,930,395 10,147,394 11,183,243 1,035,849 10.2% Retiree Medical 2,805,449 2,575,256 2,652,514 2,686,345 33,831 1.3% Salary 16,950,029 18,094,964 19,030,233 20,111,140 1,080,906 5.7% Workers' Compensation 421,542 840,707 1,157,437 1,203,398 45,960 4.0% Total Salary & Benefits 33,378,375 35,897,184 38,813,780 41,088,275 2,274,495 5.9% Allocated Charges 3,202,873 3,626,937 3,511,437 3,504,778 (6,659)(0.2)% Contract Services 2,397,033 1,612,777 1,365,894 1,585,250 219,356 16.1% Facilities & Equipment 48,871 56,860 34,500 34,500 ——% General Expense 450,935 462,074 446,089 446,089 ——% Operating Transfers-Out —398,383 ————% Rents & Leases 3,335 3,408 3,560 4,960 1,400 39.3% Supplies & Material 501,670 517,375 491,221 446,221 (45,000)(9.2)% Total Dollars by Expense Category 39,983,091 42,574,997 44,666,482 47,110,074 2,443,592 5.5% POLICE POLICE • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 243 Revenues Charges for Services 1,211,543 1,161,326 1,379,804 1,205,235 (174,569)(12.7)% Charges to Other Funds 481,000 481,000 481,000 641,850 160,850 33.4% From Other Agencies 258,639 304,391 349,900 332,900 (17,000)(4.9)% Other Revenue 256,417 327,531 28,899 176,300 147,401 510.1% Other Taxes and Fines 1,890,505 1,360,237 1,881,255 1,861,358 (19,897)(1.1)% Permits and Licenses 289,090 242,505 230,302 153,675 (76,627)(33.3)% Rental Income 400 150 1,067 —(1,067)(100.0)% Total Revenues 4,387,594 3,877,140 4,352,227 4,371,318 19,091 0.4% Positions by Division Administration 5.30 5.30 5.30 5.30 ——% Animal Control 10.56 10.56 4.00 4.48 0.48 12.00% Field Services 73.55 73.55 73.55 73.55 ——% Investigations and Crime Prevention Services 16.38 16.38 16.38 16.38 ——% Parking Services 7.75 8.75 8.75 8.75 ——% Police Personnel Selection 4.10 4.10 4.22 4.22 ——% Technical Services 37.00 37.00 37.00 37.00 ——% Traffic Services 3.74 2.74 2.62 2.62 ——% Total 158.38 158.38 151.82 152.30 0.48 0.32% Staffing Job Classification FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Salary Administrative Assistant 1.00 1.00 1.00 1.00 —72,779 Administrative Associate II 3.00 3.00 3.00 3.00 —235,186 Animal Control Officer 3.00 3.00 3.00 3.00 —222,706 Animal Control Officer-Lead 1.00 1.00 1.00 1.00 —79,435 Animal Services Specialist II 2.00 2.00 ———— Assistant Police Chief 1.00 1.00 1.00 1.00 —212,243 Business Analyst 1.20 1.20 1.20 1.20 —186,401 Budget Summary FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % POLICE 244 POLICE • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Code Enforcement Officer 1.00 1.00 1.00 1.00 —105,747 Communications Manager 1.00 1.00 1.00 1.00 —131,997 Communications Technician 1.00 1.00 1.00 1.00 —108,326 Community Service Officer 7.50 7.50 7.50 7.50 —605,904 Court Liaison Officer 1.00 1.00 1.00 1.00 —105,123 Crime Analyst 1.00 1.00 1.00 1.00 —105,123 Deputy Director Technical Services Division 0.80 0.80 0.80 0.80 —171,592 Geographic Information System Specialist 0.50 0.50 0.50 0.50 —65,198 Police Agent 19.00 19.00 19.00 19.00 —3,010,405 Police Captain 2.00 2.00 2.00 2.00 —466,877 Police Chief 1.00 1.00 1.00 1.00 —278,658 Police Lieutenant 5.00 5.00 5.00 5.00 —1,066,250 Police Officer 50.00 50.00 50.00 50.00 —7,004,762 Police Records Specialist II 6.00 6.00 6.00 6.00 —468,998 Police Records Specialist-Lead 1.00 1.00 1.00 1.00 —83,637 Police Sergeant 14.00 14.00 14.00 14.00 —2,491,923 Program Assistant II 1.00 1.00 1.00 1.00 —85,488 Property Evidence Technician 2.00 2.00 2.00 2.00 —161,699 Public Safety Communications Manager 1.00 1.00 1.00 1.00 —136,677 Public Safety Dispatcher 16.00 16.00 16.00 16.00 —1,859,874 Public Safety Dispatcher-Lead 4.00 4.00 4.00 4.00 —534,061 Public Safety Program Manager 2.00 2.00 2.00 2.00 —264,160 Senior Management Analyst 1.00 1.00 1.00 1.00 —123,635 Superintendent Animal Services 1.00 1.00 ———— Veterinarian 1.00 1.00 ———— Veterinarian Technician 2.00 2.00 ———— Sub-total: Full-Time Equivalent Positions 155.00 155.00 149.00 149.00 —20,444,863 Temporary/Hourly 3.38 3.38 2.82 3.30 0.48 306,676 Total Positions 158.38 158.38 151.82 152.30 0.48 20,751,539 Staffing Job Classification FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Salary POLICE POLICE • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 245 Budget Reconciliation Positions Expenditures Revenues Net General Fund Prior Year Budget 151.82 44,666,482 4,352,227 40,314,255 One-Time Prior Year Budget Adjustments CAD Reporting System Update — (45,000) — (45,000) One-Time Prior Year Budget Adjustments —(45,000)—(45,000) Adjustments to Costs of Ongoing Activities Salary and Benefits — 2,053,362 — 2,053,362 Overtime Adjustment — 51,537 — 51,537 Animal Services Revenue Alignments/Adjustments — — (369,157) 369,157 SVRIA Subscription Fee Adjustments — 197,550 46,300 151,250 Staffing Vacancies Alignment — 88,636 — 88,636 Animal Control Staffing Realignment 0.48 35,000 — 35,000 Contractual Increases — 15,400 — 15,400 Revenue Alignments — — (13,000) 13,000 Crossing Guards (CMR #8952 approved June 25, 2018)—7,806 —7,806 Stanford Emergency Communication Services Revenue —— 64,098 (64,098) Task Force Reimbursement —— 130,000 (130,000) Communication Services Allocated Charges —— 160,850 (160,850) Information Technology Allocated Charges — (97,090)— (97,090) Liability Insurance Allocated Charges — 86,247 — 86,247 Printing & Mailing Services Allocated Charges — 10,893 — 10,893 Utilities Allocated Charges — (3,743)— (3,743) Vehicle Replacement & Maintenance Allocated Charges — (2,966)— (2,966) — 45,960 — 45,960 0.48 2,488,592 19,091 2,469,501 Workers' Compensation Allocated Charges Adjustments to Costs of Ongoing Activities Total FY 2021 Proposed Budget 152.30 47,110,074 4,371,318 42,738,756 POLICE 246 POLICE • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET PUBLIC WORKS PUBLIC WORKS • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 247 PUBLIC WORKSMission Statement To preserve and enhance the quality of life for Palo Alto residents and visitors by providing efficient, safe, and cost effective services in partnership with our citizens while maintaining City assets and being environmental stewards of the community. Purpose The purpose of the Public Works Depart- ment is to ensure the City’s valuable infra- structure is well-maintained and available well into the future; promote the protec- tion and enhancement of Palo Alto’s urban forest; enhance the quality of life for resi- dents and visitors by preventing pollution of the creeks and bay, promoting reuse and recycling, and encouraging use of alternative fuel vehicles; ensure continuous operation of the Regional Water Quality Control Plant; provide effi- cient and cost effective garbage, recyclables, and compostables collection, processing, and disposal; deliver timely support to City departments in the area of engineering services; operate a safe and financially sustainable general aviation airport; and effectively manage the City’s Capital Improvement Fund, including the Council Infrastructure Plan. PUBLIC WORKS 248 PUBLIC WORKS • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET PUBLIC WORKS DIRECTOR . ƫ##(!/0+* 1.00-Administrative Assistant 1.00-Senior Management Analyst PUBLIC SERVICES 1.00 Assistant Director, Public Services 1.00 Management Analyst 1.00 *#!)!*0ƫ//%/0*0 3.00 Administrative Associate II FACILITIES MAINTENANCE 1.00 Facilities Manager 1.00 Facilities Maintenance Operations 2.00 Facilities Maintenance-Lead 6.00 Facilities Technician 2.00 Facilities Painter 1.00 Project Manager 1.00 Facilities Carpenter 1.00 Electrician 1.00 Coordinator Public Works Projects 1.00 Building Service Person-Lead 1.00 Engineering Technician III FLEET 1.00 Fleet Manager 1.00 Assistant Fleet Manager 1.00 Project Manager ā.00 Fleet Services Coordinator 2.00 Motor Equipment Mechanic-Lead 2.00 Equipment Maintenance Service Person 6.00 Motor Equipment Mechanic II URBAN FORESTRY 1.00 Manager Urban Forest.5ĵ 1.00 * /,!ƫ.$%0!0* 2.00 Project Manager** 2.00 Tree Maintenance Special** 1.00 Tree Trim/Line Clear-Lead 7.00 Tree Trim/Line Clear TRAFFIC CONTROL / STREET SWEEPING 1.00 Manager, Maintenance Operations 1.00 Project Manager 2.00 Street Sweeper Operator 2.00 Street Maintenance Assistant 1.00 Coordinator, Public Works Projects 2.00 Traffic Control Maintenance II 2.00 Traffic Control Maintenance I STORM DRAIN / STREET MAINTENANCE 1.00 Manager, Maintenance Operations 2.00 Heavy Equipment Operator-Lead 3.00 Heavy Equipment Operator ă.00 Equipment Operator 1.00 Cement Finisher-Lead Ă.00 Cement Finisher ENVIRONMENTAL SERVICES 1.00 Assistant Director, Environmental Service 1.00 Management Analyst WATER QUALITY CONTROL PLANT 1.00 Water Quality Control Plant Manager 2.00 Administrative Associate II 2.00 Assistant Manager WQC 2.00 Senior Engineer 3.00 Supervisor WQC Operations 6.00 Senior Operator, WQC 16.00 Plant Operator II 1.00 Manager Laboratory Services 1.00 Senior Chemist 3.00 Chemist 3.00 Lab Technician 2.00 Electrician Lead 3.00 Electrician 1.00 Senior Mechanic 7.00 Plant Mechanic 1.00 Senior Technologist 1.00 Project Engineer 1.00 Technologist WATERSHED PROTECTION 1.00 Watershed Protection Manager 2.00 Manager Environmental Controls 2.00 Program Assistant II 1.00 Project Manager 1.00 Senior Engineer 3.00 Associate Engineer 1.00 Senior Waste Investigator 2.00 Industrial Waste Investigator 3.00 Industrial Waste Inspector ZERƫWASTE / REFUSE 1.00 Manager Solid Waste 3.00 Manager Environmental Controls 1.00 Zero Waste Coordinator 1.00 Program Assistant I 2.00 Environmental Specialist 1.00 Facilities Maintenance Lead 1.00 Landfill Technician 1.00 Landfill Maintenance Assistant ENGINEERING SERVICES 1.00 Assistant Director, Engineering Service 1.00 Management Analyst 1.00 Administrative Associate III 1.00 Administrative Associate I FIELD SERVICE (SURVEY AND INSPECTION) 1.00 Supervisor Inspections/Survey 2.00 Inspector-Field Service 1.00 Surveyor CIP PROGRAM (STRUCTURES, STREETS & SIDEWALKS, STORM DRAIN, PARKS) ą.00 Senior Engineer 1.00 Architect/Park Planner 7.00 Project Engineer 4.00 Engineer Ă.00 Associate Engineer 1.00 Project Manager PRIVATE DEVELOPMENT 1.00 Senior Engineer* 3.00 Engineering Technician III* 1.00 Engineer* FY 20Ăā POSITION TOTALS ĂĀĀ.ĂĆ – Full-Time āĀċāĂ - Hourly This organizational chart represents citywide Full-Time Equivalents (FTEs) for this department. The Department Summary tables summarize FTEs by position allocation * These positions serve functions that support the (**%*#ƫ* ƫ !2!(+,)!*0ƫ!.2%!/ƫDepartment ** These positions serve functions that support the Utilities Department AIRPORT DIVISION 1.00 Airport Manager 1.00 Manager, Maintenance Operations 1.00 Management Analyst 1.50 Facilities Technician ĀċĈĆ ƫ Manage)!*0ƫ*(5/0 PUBLIC WORKS PUBLIC WORKS • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 249 Description The Public Works Department is responsible for operations and capital projects in the following areas: ENGINEERING SERVICES Designs and constructs City-owned facilities, streets, sidewalks, storm drains, parks, and airport infrastructure; and provides engineering support to City departments for construction in the public right of way. PUBLIC SERVICES Maintains and renovates City-owned and leased structures, streets, sidewalks, storm drains, street signage and parking lots; manages the City’s urban forest; manages the street sweeping program; and maintains the City’s fleet. ENVIRONMENTAL SERVICES Operates and maintains the Regional Water Quality Control Plant; maintains a pretreatment program for control of industrial and commercial dischargers; provides pollution and waste prevention and stormwater management information and programs to residents and businesses; manages the City’s zero waste programs, household hazardous waste program, sus- tainability program, and the post-closure maintenance and monitoring of the City’s closed land- fill. AIRPORT OPERATIONS Operates the Palo Alto Airport; maintains airport facilities and grounds; manages agreements with airport tenants; serves as liaison with the Federal Aviation Administration (FAA) and the Palo Alto flying community; and maintains compliance with FAA regulations. PUBLIC WORKS 250 PUBLIC WORKS • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Budget Summary FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % Dollars by Fund Airport Enterprise Fund 11,884,689 8,211,989 2,447,323 21,424,863 18,977,540 775.4% General Fund-Operating 18,412,469 17,213,301 19,188,318 19,691,803 503,485 2.6% Refuse Fund - Operating 28,300,353 29,985,449 38,600,779 32,639,395 (5,961,384)(15.4)% Storm Drainage - Operating 9,873,062 5,684,038 9,944,891 10,072,681 127,790 1.3% Vehicle Replacement & Maintenance Fund 10,718,000 8,754,905 14,075,104 14,885,038 809,934 5.8% Wastewater Treatment - Operating 39,920,647 37,482,291 55,434,126 47,108,201 (8,325,925)(15.0)% Total 119,109,220 107,331,972 139,690,541 145,821,982 6,131,440 4.4% Revenues Charges for Services 202,666 166,454 199,208 199,208 ——% Charges to Other Funds 13,390,921 12,413,563 11,762,186 11,806,283 44,097 0.4% From Other Agencies 13,333,527 5,869,673 —19,288,640 19,288,640 —% Net Sales 65,334,402 66,097,248 69,427,158 69,845,759 418,601 0.6% Operating Transfers-In 222,433 196,107 196,107 246,107 50,000 25.5% Other Revenue 5,491,951 4,775,942 30,938,300 13,258,020 (17,680,280)(57.1)% Other Taxes and Fines 900 2,475 6,500 6,500 ——% Permits and Licenses 656,944 1,248,297 622,096 622,096 ——% Rental Income 527,173 631,362 778,100 801,443 23,343 3.0% Return on Investments 1,113,433 1,229,925 1,414,100 1,200,100 (214,000)(15.1)% Total Revenues 100,274,350 92,631,046 115,343,755 117,274,156 1,930,401 1.7% Positions by Fund* Airport Fund 5.46 5.46 5.94 5.94 ——% General Fund 56.66 52.49 50.45 51.20 0.75 1.49% Refuse Fund 15.65 15.65 15.93 15.93 ——% Stormwater Management Fund 13.55 13.55 13.55 13.55 ——% Vehicle Replacement and Maintenance Fund 17.26 16.53 16.01 16.01 ——% Wastewater Treatment Fund 71.26 71.26 71.26 71.26 ——% Total 179.84 174.94 173.14 173.89 0.75 0.43% *This table does not reflect positions in the Capital Improvement Fund nor the Cubberley Property Infrastructure Fund. PUBLIC WORKS PUBLIC WORKS • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 251 GENERAL FUND Budget Summary FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % Dollars by Division General Fund Administration 1,543,614 1,462,803 1,653,749 1,621,142 (32,607)(2.0)% General Fund Engineering Services 1,257,574 1,198,656 1,095,381 1,103,514 8,132 0.7% General Fund Public Services: Streets 3,763,354 3,191,234 3,878,053 4,042,929 164,876 4.3% General Fund Public Services: Structures and Grounds 7,655,871 7,117,954 8,029,740 8,120,600 90,860 1.1% General Fund Public Services: Trees 4,192,056 4,242,654 4,531,396 4,541,853 10,457 0.2% Sustainability ———261,767 261,767 —% Total 18,412,469 17,213,301 19,188,318 19,691,803 503,485 2.6% Dollars by Category Salary & Benefits Healthcare 1,116,308 1,004,852 1,137,805 1,094,827 (42,978)(3.8)% Other Benefits 151,664 137,372 146,112 184,622 38,510 26.4% Overtime 239,717 265,771 167,886 172,251 4,365 2.6% Pension 1,491,805 1,388,663 1,804,560 1,893,619 89,059 4.9% Retiree Medical 949,314 825,828 850,603 892,681 42,078 4.9% Salary 5,094,927 4,641,204 4,920,549 5,174,386 253,837 5.2% Workers' Compensation 127,270 133,352 199,115 212,252 13,136 6.6% Total Salary & Benefits 9,171,005 8,397,042 9,226,630 9,624,637 398,007 4.3% Allocated Charges 3,425,459 3,422,668 3,840,817 3,880,512 39,696 1.0% Contract Services 4,688,287 4,392,507 4,879,358 4,947,214 67,856 1.4% Facilities & Equipment 2,000 —2,146 2,146 ——% General Expense 67,588 58,001 125,009 138,259 13,250 10.6% Operating Transfers-Out 16,574 94,518 16,574 —(16,574)(100.0)% Rents & Leases 210,191 168,978 227,974 227,974 ——% Supplies & Material 831,365 679,589 869,811 871,061 1,250 0.1% Total Dollars by Expense Category 18,412,469 17,213,301 19,188,318 19,691,803 503,485 2.6% PUBLIC WORKS 252 PUBLIC WORKS • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Revenues Charges for Services 77,881 47,778 47,320 47,320 ——% Charges to Other Funds 3,796,696 3,331,386 2,355,516 2,155,112 (200,405)(8.5)% Operating Transfers-In 196,107 196,107 196,107 196,107 ——% Other Revenue 46,345 119,557 54,500 6,000 (48,500)(89.0)% Permits and Licenses 656,944 1,248,297 622,096 622,096 ——% Total Revenues 4,773,973 4,943,125 3,275,539 3,026,635 (248,905)(7.6)% Positions by Division General Fund Administration 3.05 3.05 3.05 3.05 ——% General Fund Engineering Services 5.29 4.92 3.38 3.38 ——% General Fund Public Services: Streets 18.22 15.74 15.74 15.74 ——% General Fund Public Services: Structures and Grounds 17.31 15.83 15.33 15.33 ——% General Fund Public Services: Trees 12.79 12.95 12.95 12.95 ——% Sustainability ———0.75 0.75 —% Total 56.66 52.49 50.45 51.20 0.75 1.49% Staffing Job Classification FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Salary Administrative Assistant 1.00 1.00 1.00 1.00 —93,205 Administrative Associate I 0.60 0.60 0.10 0.10 —7,218 Administrative Associate II 2.65 2.65 2.65 2.65 —207,747 Administrative Associate III 0.01 0.01 0.01 0.01 —840 Assistant Director Public Works 0.87 0.87 0.73 0.73 —138,014 Associate Engineer 0.30 0.30 ———— Building Serviceperson 1.00 ————— Building Serviceperson-Lead 1.00 1.00 1.00 1.00 —69,118 Cement Finisher 3.00 2.00 2.00 2.00 —190,154 Cement Finisher-Lead 0.26 0.26 0.26 0.26 —26,440 Coordinator Public Works Projects 1.50 1.50 1.50 1.50 —129,420 Director Public Works/City Engineer 1.00 1.00 1.00 1.00 —221,478 Budget Summary FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % PUBLIC WORKS PUBLIC WORKS • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 253 Electrician 0.80 0.80 0.80 0.80 —89,507 Engineer 0.66 0.66 0.36 0.36 —50,581 Engineering Technician III 1.47 1.47 1.47 1.47 —144,869 Equipment Operator 3.46 2.46 2.46 2.46 —215,264 Facilities Carpenter 1.00 1.00 1.00 1.00 —95,077 Facilities Maintenance-Lead 1.85 1.85 1.85 1.85 —227,147 Facilities Painter 1.75 1.75 1.75 1.75 —166,384 Facilities Technician 4.05 4.05 4.05 4.05 —400,224 Heavy Equipment Operator 2.33 2.33 2.33 2.33 —244,016 Heavy Equipment Operator-Lead 0.85 0.85 0.85 0.85 —95,189 Inspector, Field Services 0.11 0.11 0.11 0.11 —11,694 Landscape Architect Park Planner 0.10 0.60 0.60 0.60 —73,482 Management Analyst 0.70 0.70 0.70 1.45 0.75 172,132 Manager Facilities 0.90 0.90 0.90 0.90 —141,317 Manager Maintenance Operations 1.20 1.20 1.20 1.20 —168,605 Manager Urban Forestry 0.96 0.96 0.96 0.96 —156,669 Manager Watershed Protection 0.05 0.05 0.05 0.05 —8,060 Planning Arborist 0.71 ————— Project Engineer 0.50 0.50 ———— Project Manager 2.65 2.65 2.65 2.65 —293,679 Senior Engineer 0.79 0.79 0.59 0.59 —103,085 Senior Management Analyst 1.11 1.11 1.11 1.11 —144,172 Senior Project Manager 0.10 0.10 ———— Supervisor Inspection and Surveying 0.10 0.10 0.10 0.10 —13,653 Surveyor, Public Works 0.33 0.33 0.33 0.33 —35,507 Traffic Controller Maintainer I 1.94 1.94 1.94 1.94 —166,613 Traffic Controller Maintainer II 2.00 2.00 2.00 2.00 —159,078 Tree Maintenance Person 1.00 1.00 1.00 1.00 —88,150 Tree Trim/Line Clear 7.00 7.00 7.00 7.00 —607,443 Tree Trim/Line Clear-Lead 1.00 1.00 1.00 1.00 —92,810 Sub-total: Full-Time Equivalent Positions 54.66 51.45 49.41 50.16 0.75 5,248,044 Temporary/Hourly 2.00 1.04 1.04 1.04 —87,826 Total Positions 56.66 52.49 50.45 51.20 0.75 5,335,870 Staffing Job Classification FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Salary PUBLIC WORKS 254 PUBLIC WORKS • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Budget Reconciliation Positions Expenditures Revenues Net General Fund Prior Year Budget 50.45 19,188,318 3,275,539 15,912,779 One-Time Prior Year Budget Adjustments None One-Time Prior Year Budget Adjustments Adjustments to Costs of Ongoing Activities Salary and Benefits Adjustments — 227,090 — 272,245 Office of Sustainability Transition 0.75 261,767 (2,516) 264,283 Custodial Contract (Amendment #2) — 67,850 — 67,850 Custodial Contract (Year 4 & Contingency) — 60,455 — 60,455 Charges to Other Funds for Engineering Services — — (40,874) 40,874 San Francisquito Creek Joint Powers Authority (SFJPA) Annual Membership Fee —9,250 —9,250 Contract Services Alignment — 1,396 — 1,396 Urban Forestry Mitigation Fee for Tree Planting — (48,500) (48,500)— Urban Forestry Contract Alignment — (104,345)— (104,345) Transfer to Electric Fund — (16,574)— (16,574) General Fund Cost Allocation Plan —— (130,717) 130,717 Communication Services Allocated Charges — 35,150 — 35,150 Liability Insurance Allocated Charges — 45,584 — 45,584 Information Technology Allocated Charges — (19,268)— (19,268) Printing & Mailing Services Allocated Charges — 10,759 — 10,759 Public Works Administration Allocated Charges —— (26,297) 26,297 Refuse Allocated Charges — (4,888)— (4,888) Stormwater Management Allocated Charges —748 —748 Utilities Allocated Charges — (132,335)— (132,335) Vehicle Replacement & Maintenance Allocated Charges — 101,282 — 101,282 — 8,064 — 8,064 —503,485 (248,904)752,389 Workers' Compensation Allocated Charges Adjustments to Costs of Ongoing Activities Total FY 2021 Proposed Budget 51.20 19,691,803 3,026,635 16,665,168 PUBLIC WORKS PUBLIC WORKS • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 255 PUBLIC WORKS 256 PUBLIC WORKS • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET AIRPORT FUND Description The Palo Alto Airport serves as a general aviation reliever airport to the Bay Area’s major air carrier airports. It is the fourth busiest airport in the Bay Area, averaging 150,000 annual operations; open 24 hours each day, 365 days annually; and has a Federal Aviation Administration-staffed air traffic control tower. PUBLIC WORKS PUBLIC WORKS • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 257 Budget Summary FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % Dollars by Division Airport Administration 893,430 890,722 1,058,650 977,103 (81,547)(7.7)% Airport Operations 620,616 673,141 1,042,477 1,080,084 37,608 3.6% CIP Airport Fund 10,370,643 6,648,126 346,196 19,367,676 19,021,480 5,494.4% Total 11,884,689 8,211,989 2,447,323 21,424,863 18,977,540 775.4% Dollars by Category Salary & Benefits Healthcare 101,705 99,225 131,582 109,120 (22,462)(17.1)% Other Benefits 18,545 21,246 21,521 25,314 3,793 17.6% Overtime 11,972 24,407 ————% Pension 136,462 155,080 217,892 207,027 (10,865)(5.0)% Retiree Medical 11,804 43,990 45,310 45,441 131 0.3% Salary 531,225 574,373 632,325 664,363 32,038 5.1% Workers' Compensation —14,961 20,763 21,604 841 4.1% Total Salary & Benefits 811,714 933,283 1,069,393 1,072,869 3,476 0.3% Allocated Charges 647,135 637,851 669,891 620,486 (49,405)(7.4)% Contract Services 100,229 51,014 140,700 139,900 (800)(0.6)% General Expense 89,588 96,890 36,480 36,480 ——% Operating Transfers-Out 11,231 7,471 281,200 272,500 (8,700)(3.1)% Rents & Leases 10,322 6,123 11,630 11,630 ——% Supplies & Material 29,947 10,458 56,472 56,472 ——% Capital Improvement Program 10,184,522 6,468,900 181,556 19,214,526 19,032,970 10,483.2% Total Dollars by Expense Category 11,884,689 8,211,989 2,447,323 21,424,863 18,977,540 775.4% Revenues From Other Agencies 9,333,527 5,869,673 —19,288,640 19,288,640 —% Net Sales 641,868 667,142 654,767 626,767 (28,000)(4.3)% Other Revenue 1,145,804 1,155,324 1,008,800 1,094,020 85,220 8.4% Rental Income 593,303 631,362 778,100 801,443 23,343 3.0% Return on Investments 20,629 22,874 21,400 2,500 (18,900)(88.3)% Total Revenues 11,735,131 8,346,376 2,463,067 21,813,370 19,350,303 785.6% PUBLIC WORKS 258 PUBLIC WORKS • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Positions by Division Airport Administration 2.00 2.00 2.48 2.48 ——% Airport Operations 2.21 2.21 2.71 2.71 ——% CIP Airport Fund 1.25 1.25 0.75 0.75 ——% Total 5.46 5.46 5.94 5.94 ——% Staffing Job Classification FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Salary Facilities Technician 1.50 1.50 1.50 1.50 —148,231 Management Analyst 1.00 1.00 1.00 1.00 —121,098 Manager Airport 1.00 1.00 1.00 1.00 —174,907 Manager Maintenance Operations 1.00 1.00 1.00 1.00 —121,930 Sub-total: Full-Time Equivalent Positions 4.50 4.50 4.50 4.50 —566,166 Temporary/Hourly 0.96 0.96 1.44 1.44 —86,676 Total Positions 5.46 5.46 5.94 5.94 —652,842 Budget Summary FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % PUBLIC WORKS PUBLIC WORKS • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 259 Budget Reconciliation Positions Expenditures Revenues Net Airport Fund Prior Year Budget 5.94 2,447,323 2,463,067 (15,744) One-Time Prior Year Budget Adjustments None One-Time Prior Year Budget Adjustments Adjustments to Costs of Ongoing Activities Salary and Benefits Adjustments — 2,635 — 2,635 Revenue Adjustments — — 80,563 (80,563) Return on Investments — — (18,900) 18,900 Transfer to Technology Fund (TE-19001 Council Chambers Project)— (8,700) — (8,700) Capital Improvement Projects and FAA Grant Funding — 19,034,600 17,288,640 1,745,960 General Fund Cost Allocation Plan — (91,899) — (91,899) Industrial Waste Discharge Fee Allocated Charges — 582 — 582 Information Technology Allocated Charges — 2,003 — 2,003 Liability Insurance Allocated Charges — 4,753 — 4,753 Printing & Mailing Services Allocated Charges — (1,091) — (1,091) Public Works Administration Allocated Charges —(2,630) — (2,630) Refuse Allocated Charges — 49,564 — 49,564 Utilities Allocated Charges — (19,059) — (19,059) Vehicle Replacement & Maintenance Allocated Charges —5,941 —5,941 Workers' Compensation Allocated Charges — 841 — 841 Adjustments to Costs of Ongoing Activities —18,977,540 17,350,303 1,627,237 Total FY 2021 Base Budget 5.94 21,424,863 19,813,370 1,611,493 Budget Adjustments 1 Department of Transportation (DOT) Loan — 2,000,000 2,000,000 — Total Budget Adjustments —2,000,000 2,000,000 — Total FY 2021 Proposed Budget 5.94 23,424,863 21,813,370 1,611,493 PUBLIC WORKS 260 PUBLIC WORKS • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Budget Adjustments Budget Adjustments Positions Expenditures Revenues Net Airport Fund 1 Department of Transportation (DOT) Loan 0.00 2,000,000 2,000,000 0 This one-time cost-neutral action recognizes the acceptance of a $2,000,000 loan from the Department of Transportation (DOT) increasing both expenses and revenues by a commensurate amount. This loan will help support the Airport Apron Reconstruction Project (AP-16000) funding Phase III of the project. This is a 17-year loan with annual debt service payments beginning in FY 2022. (Ongoing Costs: $146,307) Performance Results This action will ensure that the Airport has adequate resources to support operations and implementation of the Airport Apron Project (AP-16000) in FY 2021. PUBLIC WORKS PUBLIC WORKS • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 261 REFUSE FUND Description Public Works provides refuse-related services on a user charge basis to Palo Alto’s residents and businesses. The Refuse Fund goals are to minimize waste generation, maximize recycling and reuse to meet and exceed the City’s Zero Waste goals, protect the environment by safely collecting and disposing of household hazardous waste, and maintain and monitor the City’s closed landfill. PUBLIC WORKS 262 PUBLIC WORKS • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Budget Summary FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % Dollars by Division Refuse Administration 3,771,780 3,486,653 3,652,067 2,325,509 (1,326,558)(36.3)% Refuse Collection, Hauling and Disposal: Operations 4,501,196 20,978,767 29,749,071 25,004,710 (4,744,361)(15.9)% Refuse Collection, Hauling and Disposal: Payment to GreenWaste 15,264,971 —————% Refuse Solid Waste: Operations 3,476,378 4,195,810 3,710,915 3,830,467 119,552 3.2% Refuse Street Sweeping 1,286,027 1,324,218 1,488,727 1,478,710 (10,017)(0.7)% Total 28,300,353 29,985,449 38,600,779 32,639,395 (5,961,384)(15.4)% Dollars by Category Salary & Benefits Healthcare 226,357 252,782 293,415 290,025 (3,390)(1.2)% Other Benefits 44,742 49,162 53,426 63,509 10,082 18.9% Overtime 41,215 39,379 43,990 45,134 1,144 2.6% Pension 409,227 445,520 650,896 601,497 (49,399)(7.6)% Retiree Medical 380,709 219,089 225,662 228,078 2,417 1.1% Salary 1,551,087 1,448,451 1,699,773 1,754,434 54,661 3.2% Workers' Compensation 29,936 41,152 60,728 63,188 2,460 4.1% Total Salary & Benefits 2,683,274 2,495,535 3,027,889 3,045,864 17,975 0.6% Allocated Charges 1,841,980 1,974,933 1,863,189 1,766,606 (96,583)(5.2)% Contract Services 6,103,675 6,921,151 6,355,681 6,497,221 141,540 2.2% Debt Service 155,637 196,299 195,864 196,509 645 0.3% Facilities & Equipment ——3,000 3,000 ——% General Expense 29,660 14,730 112,275 112,275 ——% Operating Transfers-Out 62,283 42,586 55,100 25,725 (29,375)(53.3)% Rents & Leases 2,277,759 2,191,696 2,161,066 1,013,231 (1,147,835)(53.1)% Supplies & Material 86,334 92,335 142,805 142,805 ——% Transfer to Infrastructure ——73,000 37,250 (35,750)(49.0)% Utility Purchase 15,059,752 16,056,182 24,610,909 19,798,909 (4,812,000)(19.6)% Total Dollars by Expense Category 28,300,353 29,985,449 38,600,779 32,639,395 (5,961,384)(15.4)% PUBLIC WORKS PUBLIC WORKS • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 263 Revenues Charges for Services 70,804 65,897 34,000 34,000 ——% Charges to Other Funds 251,309 160,552 160,552 160,552 ——% Net Sales 31,202,240 31,070,886 30,662,000 30,732,000 70,000 0.2% Other Revenue 3,186,411 2,704,985 2,311,000 2,311,000 ——% Other Taxes and Fines (1,300)(425)————% Rental Income (66,129)—————% Return on Investments 428,095 612,423 517,800 489,100 (28,700)(5.5)% Total Revenues 35,071,430 34,614,317 33,685,352 33,726,652 41,300 0.1% Positions by Division Refuse Administration 0.43 0.43 0.43 0.43 ——% Refuse Collection, Hauling and Disposal: Operations 1.00 1.00 1.00 1.00 ——% Refuse Solid Waste: Operations 11.54 11.54 11.82 11.82 ——% Refuse Street Sweeping 2.68 2.68 2.68 2.68 ——% Total 15.65 15.65 15.93 15.93 ——% Staffing Job Classification FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Salary Account Specialist 0.10 0.10 0.10 0.10 —7,827 Accountant 0.10 0.10 0.10 0.10 —9,707 Assistant Director Public Works 0.35 0.35 0.35 0.35 —71,531 Deputy Chief/Fire Marshal 0.03 0.03 0.03 0.03 —6,455 Environmental Specialist 2.00 2.00 2.00 2.00 —231,795 Facilities Maintenance Lead 1.00 1.00 1.00 1.00 —107,453 Hazardous Materials Inspector 0.02 0.02 0.02 0.02 —3,290 Landfill Technician 1.00 1.00 1.00 1.00 —107,453 Management Analyst 0.43 0.43 0.43 0.43 —48,910 Manager Environmental Control Program 3.00 3.00 3.00 3.00 —400,275 Manager Maintenance Operations 0.46 0.46 0.46 0.46 —60,881 Budget Summary FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % PUBLIC WORKS 264 PUBLIC WORKS • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Manager Solid Waste 1.00 1.00 1.00 1.00 —161,096 Program Assistant I 1.00 1.00 1.00 1.00 —79,560 Project Manager 0.20 0.20 0.20 0.20 —22,156 Senior Accountant 0.10 0.10 0.10 0.10 —13,237 Senior Management Analyst 0.08 0.08 0.08 0.08 —10,899 Street Maintenance Assistant 1.00 1.00 1.00 1.00 —73,382 Street Sweeper Operator 1.63 1.63 1.63 1.63 —142,363 Zero Waste Coordinator 1.00 1.00 1.00 1.00 —101,650 Sub-total: Full-Time Equivalent Positions 14.50 14.50 14.50 14.50 —1,659,921 Temporary/Hourly 1.15 1.15 1.43 1.43 —70,743 Total Positions 15.65 15.65 15.93 15.93 —1,730,664 Staffing Job Classification FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Salary PUBLIC WORKS PUBLIC WORKS • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 265 Budget Reconciliation Positions Expenditures Revenues Net Refuse Fund Prior Year Budget 15.93 38,600,779 33,685,352 4,915,427 One-Time Prior Year Budget Adjustments Refuse Hauling Fleet Replacement — (7,100,000) — (7,100,000) One-Time Prior Year Budget Adjustments —(7,100,000)—(7,100,000) Adjustments to Costs of Ongoing Activities Salary and Benefits Adjustments — 15,515 — 15,515 Refuse Hauling Fleet Replacement — 1,850,000 — 1,850,000 Residential and Commercial Refuse Hauling and Processing Services — 553,365 — 553,365 Rents & Leases — 64,645 — 64,645 Return on Investments — — (28,700) 28,700 Debt Service: City of Sunnyvale Solid Waste Revenue Refunding Bonds —645 —645 Contract Services Alignment — (5,460) — (5,460) Transfers to Technology Fund (Citywide Technology CIP)— (29,375) — (29,375) Transfers to Infrastructure Fund (City facilities CIP) — (35,750) — (35,750) Postclosure Landfill Rent — (1,212,480) — (1,212,480) General Fund Cost Allocation Plan — (71,244) — (71,244) Communication Services Allocated Charges — 4,850 — 4,850 General Liability Insurance Allocated Charges — 13,902 — 13,902 Industrial Waste Discharge Fee Allocated Charge — 3,423 — 3,423 Information Technology Allocated Charges — (28,187) — (28,187) Printing & Mailing Services Allocated Charges — 6,340 — 6,340 Public Works Administration Allocated Charges —(5,259) — (5,259) Refuse Allocated Charges — — 70,000 (70,000) Stormwater Management Allocated Charges — 41 — 41 Utilities Allocated Charges — (15,088) — (15,088) Vehicle Replacement & Maintenance Allocated Charges — (9,727) — (9,727) Workers' Compensation Allocated Charges — 2,460 — 2,460 Adjustments to Costs of Ongoing Activities —1,102,616 41,300 1,061,316 Total FY 2021 Base Budget 15.93 32,603,395 33,726,652 (1,123,257) PUBLIC WORKS 266 PUBLIC WORKS • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Budget Adjustments 1 Landfill Compressor Replacement — 25,000 — 25,000 2 Zero Waste Program Implementation — 11,000 — 11,000 Total Budget Adjustments —36,000 —36,000 Total FY 2021 Proposed Budget 15.93 32,639,395 33,726,652 (1,087,257) Budget Adjustments Budget Adjustments Positions Expenditures Revenues Net Refuse Fund 1 Landfill Compressor Replacement 0.00 25,000 0 25,000 This one-time action provides funding for the replacement of the landfill compressor nearing the end of its useful life. The compressor is used at the landfill to comply with federal, state, and local requirements for landfill leachate extraction operations. The compressor is a vital part of the landfill leachate collection system, supplying air to power the 24 pneumatic pumps within the leachate extraction wells. (Ongoing costs: $0) Performance Results This action ensures the necessary equipment is available to maintain compliance with federal, state, and local requirements and proper operation at the City's landfill. 2 Zero Waste Program Implementation 0.00 11,000 0 11,000 This action increases the expense budget to fund initiatives identified in the City's Zero Waste Plan. Funding will support the continuation and expansion of the ReThink Disposable program, which provides tools to identify and redesign wasteful practices, products, and packaging, and promotes the purchase more environmentally preferred products. (Ongoing costs: $11,000) Performance Results This action aligns funding with the City's Zero Waste goals outlined in the Zero Waste Plan. Budget Reconciliation Positions Expenditures Revenues Net Refuse Fund PUBLIC WORKS PUBLIC WORKS • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 267 STORMWATER MANAGEMENT FUND Description The City’s stormwater management services are funded through user fees charged to property owners of developed parcels in Palo Alto. Stormwater management activities include inspection, clean-up, operation, maintenance, replacement of and improvement to the storm drainage system to ensure adequate local drainage consistent with the 2015 Stormwater Master Plan and the 2019 Green Stormwater Infrastructure Plan. The Fund also provides litter reduction, urban pollution prevention programs, commercial and residential rebates, and flooding emergency-response services with the goals of reducing stormwater runoff and maintaining stormwater quality protection for discharge to creeks and San Francisco Bay. PUBLIC WORKS 268 PUBLIC WORKS • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Budget Summary FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % Dollars by Division CIP Stormwater Management Fund 5,551,183 1,675,333 4,505,895 4,188,660 (317,235)(7.0)% Stormwater Environmental Compliance 935,125 982,027 1,156,254 1,249,481 93,227 8.1% Stormwater Management Administration 1,768,546 1,394,876 1,934,221 2,048,425 114,204 5.9% Stormwater Operations and Maintenance 1,425,879 1,425,569 1,646,677 1,877,383 230,705 14.0% Stormwater Systems Improvement Flood Control 192,330 206,232 701,845 708,734 6,889 1.0% Total 9,873,062 5,684,038 9,944,891 10,072,681 127,790 1.3% Dollars by Category Salary & Benefits Healthcare 236,012 210,877 242,292 252,378 10,086 4.2% Other Benefits 35,186 37,409 43,837 52,150 8,313 19.0% Overtime 17,655 35,883 52,032 53,385 1,353 2.6% Pension 406,962 404,257 605,953 584,843 (21,110)(3.5)% Retiree Medical 66,895 144,909 149,256 155,548 6,291 4.2% Salary 1,287,106 1,271,169 1,512,516 1,639,673 127,158 8.4% Workers' Compensation 94,896 28,410 53,111 55,262 2,151 4.1% Total Salary & Benefits 2,144,712 2,132,914 2,658,997 2,793,238 134,241 5.0% Allocated Charges 1,089,398 969,252 1,059,274 1,434,049 374,775 35.4% Contract Services 474,599 376,615 907,899 915,379 7,480 0.8% Debt Service 298,580 258,899 949,300 949,300 ——% Facilities & Equipment 7,881 —7,621 7,621 ——% General Expense 11,059 12,164 145,960 146,960 1,000 0.7% Operating Transfers-Out 34,722 25,403 36,700 7,050 (29,650)(80.8)% Rents & Leases 47,482 45,211 50,468 25,031 (25,437)(50.4)% Supplies & Material 63,949 87,720 94,726 93,726 (1,000)(1.1)% Transfer to Infrastructure 330,000 330,000 ————% Capital Improvement Program 5,370,680 1,445,861 4,033,947 3,700,328 (333,619)(8.3)% Total Dollars by Expense Category 9,873,062 5,684,038 9,944,891 10,072,681 127,790 1.3% PUBLIC WORKS PUBLIC WORKS • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 269 Revenues Charges for Services 53,980 52,779 117,888 117,888 ——% Charges to Other Funds —1,806 ————% Net Sales 6,911,617 7,194,560 7,449,209 7,635,439 186,230 2.5% Other Revenue 129 44 ————% Other Taxes and Fines 2,200 1,900 2,500 2,500 ——% Return on Investments 153,636 126,469 225,900 153,400 (72,500)(32.1)% Total Revenues 7,121,562 7,377,559 7,795,497 7,909,227 113,730 1.5% Positions by Division CIP Stormwater Management Fund 2.37 2.37 2.37 2.37 ——% Storm Drainage Operations and Maintenance ——5.00 —(5.00)(100.00)% Stormwater Environmental Compliance 4.59 4.59 4.59 4.59 ——% Stormwater Management Administration 0.80 0.80 0.80 0.80 ——% Stormwater Operations and Maintenance 5.00 5.00 —5.00 5.00 —% Stormwater Systems Improvement Flood Control 0.79 0.79 0.79 0.79 ——% Total 13.55 13.55 13.55 13.55 ——% Staffing Job Classification FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Salary Account Specialist 0.10 0.10 0.10 0.10 —7,827 Accountant 0.05 0.05 0.05 0.05 —4,854 Administrative Associate I 0.10 0.10 0.10 0.10 —7,218 Administrative Associate II 0.15 0.15 0.15 0.15 —11,759 Administrative Associate III 0.10 0.10 0.10 0.10 —8,403 Assistant Director Public Works 0.30 0.30 0.30 0.30 —59,172 Associate Engineer 1.19 1.19 1.19 1.19 —148,438 Electrician 0.10 0.10 0.10 0.10 —11,188 Electrician-Lead 1.00 1.00 1.00 1.00 —119,808 Budget Summary FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % PUBLIC WORKS 270 PUBLIC WORKS • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Engineer 0.90 0.90 0.90 0.90 —126,454 Engineering Technician III 0.25 0.25 0.25 0.25 —24,638 Equipment Operator 0.54 0.54 0.54 0.54 —47,253 Heavy Equipment Operator 0.90 0.90 0.90 0.90 —94,255 Heavy Equipment Operator-Lead 1.15 1.15 1.15 1.15 —128,785 Industrial Waste Inspector 0.40 0.40 0.40 0.40 —38,954 Industrial Waste Investigator 1.00 1.00 1.00 1.00 —109,408 Management Analyst 0.30 0.30 0.30 0.30 —34,409 Manager Environmental Control Program 0.70 0.70 0.70 0.70 —90,709 Manager Maintenance Operations 0.50 0.50 0.50 0.50 —67,309 Manager Watershed Protection 0.20 0.20 0.20 0.20 —32,240 Program Assistant II 0.60 0.60 0.60 0.60 —51,293 Project Engineer 0.83 0.83 0.83 0.83 —125,509 Project Manager 0.55 0.55 0.55 0.55 —66,238 Senior Accountant 0.10 0.10 0.10 0.10 —13,237 Senior Engineer 0.76 0.76 0.76 0.76 —119,256 Senior Industrial Waste Investigator 0.10 0.10 0.10 0.10 —12,474 Surveyor, Public Works 0.12 0.12 0.12 0.12 —12,912 Technologist 0.30 0.30 0.30 0.30 —46,600 Traffic Controller Maintainer I 0.06 0.06 0.06 0.06 —5,153 Sub-total: Full-Time Equivalent Positions 13.35 13.35 13.35 13.35 —1,625,752 Temporary/Hourly 0.20 0.20 0.20 0.20 —8,320 Total Positions 13.55 13.55 13.55 13.55 —1,634,072 Staffing Job Classification FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Salary PUBLIC WORKS PUBLIC WORKS • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 271 Budget Reconciliation Positions Expenditures Revenues Net Stormwater Management Fund Prior Year Budget 13.55 9,944,891 7,795,497 2,149,394 One-Time Prior Year Budget Adjustments None One-Time Prior Year Budget Adjustments Adjustments to Costs of Ongoing Activities Salary and Benefits Adjustments — 132,090 — 132,090 Return on Investments — — (72,500) 72,500 Contractual Adjustments — 7,480 — 7,480 Rents & Leases Expenditures — (25,437) — (25,437) Stormwater Rate Adjustment (CPI increase of 4.5%)— — 175,960 (175,960) Transfers to Technology Fund (Citywide Technology CIP)— (29,650) — (29,650) Capital Improvement Program — (335,941) — (335,941) General Fund Cost Allocation Plan — 147,166 — 147,166 Communication Services Allocated Charge — 2,250 — 2,250 Information Technology Allocated Charges — (13,200) — (13,200) Liability Insurance Allocated Charges — 12,159 — 12,159 Printing & Mailing Services Allocated Charges — (721) — (721) Public Works Administration Allocated Charges —(3,945) — (3,945) Stormwater Management Allocated Charges — — 10,270 (10,270) Utilities Allocated Charges — 239,365 — 239,365 Vehicle Replacement & Maintenance Allocated Charges — (5,977) — (5,977) Workers' Compensation Allocated Charges — 2,151 — 2,151 Adjustments to Costs of Ongoing Activities —127,790 113,730 14,060 Total FY 2021 Proposed Budget 13.55 10,072,681 7,909,227 2,163,454 PUBLIC WORKS 272 PUBLIC WORKS • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET VEHICLE REPLACEMENT AND MAINTENANCE FUND Description The Vehicle Replacement and Maintenance Fund is an internal service fund providing fleet management services for City vehicles and heavy equipment. Timely maintenance and replacement of vehicles and equipment ensures safe, reliable, and efficient use of resources. This program also provides for safe, efficient fuel storage and dispensing facilities while pursuing alternative fuel technologies, and minimizing the pollution and carbon footprint generated by the City’s vehicle fleet. PUBLIC WORKS PUBLIC WORKS • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 273 Budget Summary FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % Dollars by Division Vehicle Operations and Maintenance 5,399,075 5,264,698 7,389,956 6,906,820 (483,136)(6.5)% Vehicle Replacement and Additions 5,318,926 3,490,206 6,685,148 7,978,218 1,293,070 19.3% Total 10,718,000 8,754,905 14,075,104 14,885,038 809,934 5.8% Dollars by Category Salary & Benefits Healthcare 302,081 318,880 335,879 310,494 (25,384)(7.6)% Other Benefits 48,298 49,631 49,456 59,676 10,221 20.7% Overtime 9,277 14,935 59,592 61,141 1,549 2.6% Pension 394,672 430,641 577,445 549,165 (28,280)(4.9)% Retiree Medical 91,489 148,359 152,810 154,674 1,864 1.2% Salary 1,296,957 1,365,098 1,447,511 1,545,316 97,805 6.8% Workers' Compensation 69,959 38,855 57,764 60,104 2,340 4.1% Total Salary & Benefits 2,212,733 2,366,399 2,680,456 2,740,570 60,113 2.2% Allocated Charges 1,287,670 1,415,931 1,262,711 1,239,506 (23,205)(1.8)% Contract Services 437,272 379,511 517,748 623,940 106,192 20.5% Facilities & Equipment 126,894 (1,550)————% General Expense 82,805 78,267 70,630 70,630 ——% Operating Transfers-Out 38,394 142,786 184,769 124,069 (60,700)(32.9)% Rents & Leases 188,086 194,454 202,467 337,068 134,600 66.5% Supplies & Material 1,218,310 1,028,759 1,427,924 1,464,938 37,014 2.6% Transfer to Infrastructure ——1,460,000 745,000 (715,000)(49.0)% Capital Improvement Program 5,125,837 3,150,348 6,268,399 7,539,318 1,270,919 20.3% Total Dollars by Expense Category 10,718,000 8,754,905 14,075,104 14,885,038 809,934 5.8% Revenues Charges to Other Funds 9,305,728 8,875,562 9,192,300 9,428,100 235,800 2.6% Operating Transfers-In 26,326 ——50,000 50,000 —% Other Revenue 346,482 429,638 155,000 155,000 ——% PUBLIC WORKS 274 PUBLIC WORKS • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Return on Investments 203,870 220,163 260,000 239,100 (20,900)(8.0)% Total Revenues 9,882,406 9,525,363 9,607,300 9,872,200 264,900 2.8% Positions by Division Vehicle Operations and Maintenance 15.86 14.28 13.61 13.61 ——% Vehicle Replacement and Additions 1.40 2.25 2.40 2.40 ——% Total 17.26 16.53 16.01 16.01 ——% Staffing Job Classification FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Salary Administrative Associate III 1.00 1.00 ———— Assistant Director Public Works 0.25 0.25 0.25 0.25 —46,930 Assistant Fleet Manager 1.00 1.00 1.00 1.00 —112,882 Equipment Maintenance Service Person 2.00 2.00 2.00 2.00 —141,690 Fleet Services Coordinator 2.00 2.00 1.00 1.00 —90,459 Management Analyst 0.20 0.20 0.20 0.20 —25,172 Management Assistant ——1.00 1.00 —91,312 Manager Fleet 1.00 1.00 1.00 1.00 —138,382 Motor Equipment Mechanic II 6.00 6.00 6.00 6.00 —602,410 Motor Equipment Mechanic-Lead 2.00 2.00 2.00 2.00 —214,822 Project Manager 1.00 1.00 1.00 1.00 —108,077 Senior Management Analyst 0.08 0.08 0.08 0.08 —10,899 Sub-total: Full-Time Equivalent Positions 16.53 16.53 15.53 15.53 —1,583,035 Temporary/Hourly 0.73 —0.48 0.48 —21,935 Total Positions 17.26 16.53 16.01 16.01 —1,604,970 Budget Summary FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % PUBLIC WORKS PUBLIC WORKS • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 275 Budget Reconciliation Positions Expenditures Revenues Net Vehicle Replacement and Maintenance Fund Prior Year Budget 16.01 14,075,104 9,607,300 4,467,804 One-Time Prior Year Budget Adjustments None One-Time Prior Year Budget Adjustments Adjustments to Costs of Ongoing Activities Salary and Benefits Adjustments — 57,773 — 57,773 Rents & Leases Expenditure — 134,600 — 134,600 Vehicle Parts and Fuel Contractual and Managed Services — 41,566 — 41,566 Return on Investments — — (20,900) 20,900 Contract Services Alignment — 1,640 — 1,640 Transfer to Infrastructure Fund (Citywide Facilities CIP)— (715,000) — (715,000) Capital Improvements Program — 1,267,759 — 1,267,759 Transfer to Technology Fund (Citywide Technology CIP)— (60,700) — (60,700) General Fund Cost Allocation Plan — (30,320) — (30,320) Communication Services Allocated Charges — 1,150 — 1,150 Industrial Waste Discharge Fee Allocated Charges — 582 — 582 Information Technology Allocated Charges — (43,993) — (43,993) Liability Insurance Allocated Charges — 13,224 — 13,224 Printing & Mailing Services Allocated Charges — (488) — (488) Public Works Administration Allocated Charges —(9,204) — (9,204) Utilities Allocated Charges — 49,005 — 49,005 Vehicle Replacement & Maintenance Allocated Charges — — 235,800 (235,800) Workers' Compensation Allocated Charges — 2,340 — 2,340 Adjustments to Costs of Ongoing Activities —709,934 214,900 495,034 Total FY 2021 Base Budget 16.01 14,785,038 9,822,200 4,962,838 Budget Adjustments 1 Electric Vehicle Charger and Location Study — 100,000 50,000 50,000 Total Budget Adjustments —100,000 50,000 50,000 Total FY 2021 Proposed Budget 16.01 14,885,038 9,872,200 5,012,838 PUBLIC WORKS 276 PUBLIC WORKS • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Budget Adjustments Budget Adjustments Positions Expenditures Revenues Net Vehicle Replacement and Maintenance Fund 1 Electric Vehicle Charger and Location Study 0.00 100,000 50,000 50,000 This one-time action adds funding to conduct a study assessing current and potential future locations of electric vehicle chargers at City facility sites. The study will also explore the standardization of chargers to support fueling for existing and new City vehicles. With the expansion of electric vehicles in the City’s fleet, the number of chargers must also expand. Funding for this study is supported by the Vehicle Replacement and Maintenance Fund Reserve ($50,000) and the Utilities Department ($50,000) through a transfer from the Electric Fund. A corresponding action is proposed in the Electric Fund. (Ongoing Costs: $0) Performance Results This action supports the Sustainability and Climate Action Plan goal of expanding the electric vehicle deployment of the City’s fleet. PUBLIC WORKS PUBLIC WORKS • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 277 WASTEWATER TREATMENT FUND Description The City’s Regional Water Quality Control Plant (RWQCP) operates 24 hours a day to treat all wastewater from the City of Palo Alto and the City’s five partner agency regional service areas (Mountain View, Los Altos, Los Altos Hills, Stanford, and East Palo Alto Sanitary District) to ensure the compliance with regulations protecting the San Francisco Bay and the environment. PUBLIC WORKS 278 PUBLIC WORKS • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Budget Summary FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % Dollars by Division CIP Wastewater Treatment Fund 16,876,892 14,088,055 28,282,159 19,314,556 (8,967,604)(31.7)% Wastewater Treatment Administration 633,281 780,836 4,188,831 4,896,098 707,267 16.9% Wastewater Treatment Environmental Compliance 4,865,706 4,290,281 3,801,407 3,880,669 79,262 2.1% Wastewater Treatment Systems Improvement Operations 17,544,767 18,323,119 19,161,729 19,016,878 (144,850)(0.8)% Total 39,920,647 37,482,291 55,434,126 47,108,201 (8,325,925)(15.0)% Dollars by Category Salary & Benefits Healthcare 1,311,044 1,226,483 1,459,350 1,420,487 (38,863)(2.7)% Other Benefits 175,441 186,828 206,957 255,937 48,980 23.7% Overtime 310,868 332,744 326,462 334,950 8,488 2.6% Pension 1,986,062 2,003,517 3,059,763 2,848,677 (211,086)(6.9)% Retiree Medical 858,810 853,066 878,658 886,970 8,313 0.9% Salary 6,788,334 6,715,499 7,802,750 8,167,753 365,003 4.7% Workers' Compensation 102,448 195,136 277,378 288,613 11,235 4.1% Total Salary & Benefits 11,533,008 11,513,272 14,011,318 14,203,387 192,069 1.4% Allocated Charges 6,659,425 6,907,185 5,593,553 6,217,153 623,600 11.1% Contract Services 2,524,990 2,442,785 3,738,908 3,818,758 79,850 2.1% Debt Service 406,136 366,808 1,468,851 1,468,851 ——% Facilities & Equipment —3,210 7,500 7,500 ——% General Expense 452,963 713,092 389,029 431,729 42,700 11.0% Operating Transfers-Out 210,478 107,065 156,100 14,000 (142,100)(91.0)% Rents & Leases —1,496 —21,700 21,700 —% Supplies & Material 1,391,491 1,500,930 2,069,754 1,969,754 (100,000)(4.8)% Capital Improvement Program 16,742,155 13,926,447 27,999,113 18,955,369 (9,043,744)(32.3)% Total Dollars by Expense Category 39,920,647 37,482,291 55,434,126 47,108,201 (8,325,925)(15.0)% Revenues Charges to Other Funds 37,189 44,257 53,818 62,519 8,701 16.2% From Other Agencies 4,000,000 —————% PUBLIC WORKS PUBLIC WORKS • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 279 Net Sales 26,578,677 27,164,660 30,661,182 30,851,553 190,371 0.6% Other Revenue 766,779 366,393 27,409,000 9,692,000 (17,717,000)(64.6)% Other Taxes and Fines —1,000 4,000 4,000 ——% Return on Investments 307,203 247,996 389,000 316,000 (73,000)(18.8)% Total Revenues 31,689,848 27,824,306 58,517,000 40,926,072 (17,590,928)(30.1)% Positions by Division CIP Wastewater Treatment Fund 1.30 1.30 1.30 1.30 ——% Wastewater Treatment Administration 0.59 0.59 0.59 0.59 ——% Wastewater Treatment Environmental Compliance 13.21 13.21 13.21 13.21 ——% Wastewater Treatment Systems Improvement Operations 56.16 56.16 56.16 56.16 ——% Total 71.26 71.26 71.26 71.26 ——% Staffing Job Classification FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Salary Account Specialist 0.10 0.10 0.10 0.10 —7,827 Accountant 0.25 0.25 0.25 0.25 —24,268 Administrative Associate II 2.00 2.00 2.00 2.00 —156,790 Assistant Director Public Works 0.65 0.65 0.65 0.65 —137,174 Assistant Manager WQCP 2.00 2.00 2.00 2.00 —297,398 Associate Engineer 1.80 1.80 1.80 1.80 —224,528 Chemist 3.00 3.00 3.00 3.00 —317,616 Deputy Chief/Fire Marshal 0.04 0.04 0.04 0.04 —8,606 Electrician 2.90 2.90 2.90 2.90 —324,461 Electrician-Lead 1.00 1.00 1.00 1.00 —119,808 Hazardous Materials Inspector 0.02 0.02 0.02 0.02 —3,290 Industrial Waste Inspector 2.59 2.59 2.59 2.59 —252,229 Industrial Waste Investigator 0.15 0.15 0.15 0.15 —16,411 Laboratory Technician WQC 3.00 3.00 3.00 3.00 —284,107 Management Analyst 0.57 0.57 0.57 0.57 —62,742 Budget Summary FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % PUBLIC WORKS 280 PUBLIC WORKS • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Manager Environmental Control Program 1.20 1.20 1.20 1.20 —157,410 Manager Laboratory Services 1.00 1.00 1.00 1.00 —149,386 Manager Water Quality Control Plant 1.00 1.00 1.00 1.00 —192,733 Manager Watershed Protection 0.75 0.75 0.75 0.75 —120,900 Plant Mechanic 7.00 7.00 7.00 7.00 —722,904 Program Assistant II 1.40 1.40 1.40 1.40 —119,683 Project Engineer 1.00 1.00 1.00 1.00 —151,216 Project Manager 0.60 0.60 0.60 0.60 —74,431 Senior Accountant 0.10 0.10 0.10 0.10 —13,237 Senior Buyer 1.00 1.00 1.00 1.00 —109,637 Senior Chemist 1.00 1.00 1.00 1.00 —117,603 Senior Engineer 3.00 3.00 3.00 3.00 —475,197 Senior Industrial Waste Investigator 0.89 0.89 0.89 0.89 —111,016 Senior Management Analyst 0.13 0.13 0.13 0.13 —17,340 Senior Mechanic 1.00 1.00 1.00 1.00 —113,298 Senior Operator WQC 6.00 6.00 6.00 6.00 —706,867 Senior Technologist 1.00 1.00 1.00 1.00 —158,746 Storekeeper 1.00 1.00 1.00 1.00 —79,498 Supervisor WQCP Operations 3.00 3.00 3.00 3.00 —375,981 Technologist 0.70 0.70 0.70 0.70 —108,734 WQC Plant Operator II 16.00 16.00 16.00 16.00 —1,662,003 Sub-total: Full-Time Equivalent Positions 68.84 68.84 68.84 68.84 —7,975,075 Temporary/Hourly 2.42 2.42 2.42 2.42 —216,177 Total Positions 71.26 71.26 71.26 71.26 —8,191,252 Staffing Job Classification FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Salary PUBLIC WORKS PUBLIC WORKS • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 281 Budget Reconciliation Positions Expenditures Revenues Net Wastewater Treatment Fund Prior Year Budget 71.26 55,434,125 58,517,000 (3,082,875) One-Time Prior Year Budget Adjustments None One-Time Prior Year Budget Adjustments Adjustments to Costs of Ongoing Activities Salary and Benefits Adjustments — 180,835 — 180,835 FY 2020 Municipal Fee Revenue Adjustment —— (75,000) 75,000 Return on Investments —— (73,000) 73,000 Source Control Program Increases — 42,700 — 42,700 Strategic Plan (Revenue from Santa Clara Valley Water District) Recycled Water Year 3 — (9,000) (9,000)— Water Quality Control Plant (WQCP) Operations Alignment — (10,000)— (10,000) Tributary Agency Partner Contribution —— 243,591 (243,591) Transfer to Technology Fund (Citywide Technology CIP)— (142,100)— (142,100) Capital Improvements Projects — (9,044,943) (17,708,000) 8,663,057 General Fund Cost Allocation Plan — 412,416 — 412,416 Industrial Waste Discharge Fee Allocated Charges —— 7,497 (7,497) Information Technology Allocated Charges — 431,219 — 431,219 Liability Insurance Allocated Charges — 63,500 — 63,500 Printing & Mailing Services Allocated Charges — 4,406 — 4,406 Public Works Administration Allocated Charges —(5,259)— (5,259) Refuse Allocated Charges — (1,946)— (1,946) Stormwater Management Allocated Charges —249 —249 Utilities Allocated Charges — (298,731)— (298,731) Vehicle Replacement & Maintenance Allocated Charges — 17,795 — 17,795 Wastewater Treatment Allocated Charges —— 22,984 (22,984) Workers' Compensation Allocated Charges — 11,235 — 11,235 Adjustments to Costs of Ongoing Activities —(8,347,624)(17,590,928)9,243,304 PUBLIC WORKS 282 PUBLIC WORKS • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Total FY 2021 Base Budget 71.26 47,086,501 40,926,072 6,160,429 Budget Adjustments 1 Trailer Rental Lease — 21,700 — 21,700 Total Budget Adjustments —21,700 —21,700 Total FY 2021 Proposed Budget 71.26 47,108,201 40,926,072 6,182,129 Budget Adjustments Budget Adjustments Positions Expenditures Revenues Net Wastewater Treatment Fund 1 Trailer Rental Lease 0.00 21,700 0 21,700 This action increases the department's expenses by $21,700 for costs associated with a rental trailer used for temporary office space for City employees and contractors implementing Capital Improvement Program (CIP) projects at the Regional Water Quality Control Plant (RWQCP) where office spaces and work stations are at full capacity. The contractor currently leasing the trailer will be done with their work in early FY 2021, so the department will be taking over the trailer lease on a month to month basis. The department will continue to analyze ongoing options for the temporary office space and will return with recommendations. (Ongoing costs: $0) Performance Results This action will continue to provide temporary office space for City employees during planned rehabilitation and replacement of buildings at the RWQCP. Budget Reconciliation Positions Expenditures Revenues Net Wastewater Treatment Fund UTILITIES UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 283 UTILITIESMission Statement The City of Palo Alto Utilities’ mission is to provide safe, reliable, environmentally sustainable, and cost- effective services. Purpose The purpose of the City of Palo Alto Utili- ties is to provide high quality, cost-effec- tive electric, gas, fiber optics, water and wastewater collection services; promote effective energy and water effi- ciency programs; proactively manage infrastructure needs and replace deterio- rated or aging facilities with new technolo- gies to ensure safe and reliable delivery of services; and ensure the City’s utilities are in sound financial condition. UTILITIES 284 UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET FY 2021 POSITION TOTALS 245.0 - Full-time 9.46 - Hourly This organizational chart represents citywide Full-Time Equivalents (FTEs) for this department. The Department Summary tables summarize FTEs by position allocation. CUSTOMER SUPPORT SERVICES 1.00 Assistant Director Utilities Customer Support Services 2.00 Credit and Collections Specialist 2.00 Customer Service Specialist-Lead 7.00 Customer Service Representative 2.00 Customer Service Specialist 1.00 Manager Customer Service 1.00 Manager, Utilities Credit and Collections 6.00 Meter Reader 1.00 Meter Reader-Lead UTILITIES DIRECTOR Dean Batchelor ELECTRIC ENGINEERING & OPERATIONS 2.00 Administrative Associate II 1.00 Assistant Director Utilities Operations 1.00 Business Analyst 1.00 Coordinator Utilities Projects 3.00 Electrician Assistant I 1.00 Electric Equipment Technician 2.00 Electric Heavy Equipment Operator 4.00 Electric Project Engineer 2.00 Electric Underground Inspectors 1.00 ElectricUnderground Inspector-Lead 1.00 Engineering Manager – Electric .00 Engineer Technician III 10.00 Lineperson / Cable Splicer .00 Lineperson /Cable Splicer-Lead 1.00 Manager Electric Operations 3.00 Metering Technician 1.00 Metering Technician- Lead 2.00 Overhead/Underground Troubleman 1.00 Power Engineer 2.00 SCADA Technologist 4.00 Senior Electrical Engineer 5.00 Street Light, Traffic Signal & Fiber Technician 2.00 Street Light, Traffic Signal & Fiber Technician-Lead 6.00 Substation Electrician 2.00 Substation Electrician-Lead 6XSHUYLVRU(OHFWULF3URMHFW(QJLQHHU 3.00 Utilities Comp Tech 1.00 Utilities Comp Tech-Lead 3.00 Utilities Engineer Estimator 1.00 Utilities Engineer Estimator-Lead 3.00 Utilities Locator 6.00 Utilities Supervisor 5.00 Utilities System Operator WGW ENGINEERING & OPERATIONS RESOURCE MANAGEMENT 1.00 Assistant Director, Resource Management 1.00 Administrative Associate II 1.00 Business Analyst 3.00 Key Account Representative 1.00 Manager, Utility Program Services 4.00 Marketing Program Administrator 1.00 Program Assistant II 5.00 Resource Planner .5 Senior Resource Planner UTILITIES ADMINISTRATION 1.00 Administrative Assistant 1.00 Administrative Associate II 2.00 Business Analyst 1.00 Chief Operating Officer 1.00 Compliance Manager 1.00 Coordinator, Utilities Projects 1.00 Manager Communications 1.00 Manager Utilities Telecom 1.00 Principal Business Analyst 0.50 Program Assistant 6DIHW\2IILFHU 3.00 Senior Business Analyst 1.00 Senior Resource Planner 1.00 Strategic Business Manager 2.00 Administrative Associate II 1.00 Assistant Director Utilities Engineering 2.00 Business Analyst 1.00 Cathodic Protection Tech-Asst 1.00 Cathodic Technician 2.00 Cement Finisher 4.00 Coordinator Utilities Projects 4.00 Engineer 1.00 Engineering Manager – WGW (QJLQHHULQJ7HFKQLFLDQ,,, 1.00 Gas & Water Meter Measurement and Control Technician - Lead 4.00 Gas & Water Meter Measurement and Control Technician 4.00 Heavy Equipment Operator / Installer Repairer 5.00 Inspector, Field Services 2.00 Maintenance Mechanic Welding 1.00 Manager WGW Operations 1.00 Program Assistant 5.00 Project Engineer 1.00 Restoration Lead 5.00 Senior Project Engineer 1.00 Senior Mechanic 1.00 Senior Utilities Field Service Rep 2.00 Senior Water System Operator 2.00 Utilities Engineer Estimator 5.00 Utilities Field Service Rep 1.00 Utilities Installer/Repairer 8WLOLWLHV,QVWDOOHU5HSDLUHU$VVLVWDQW 5.00 Utilities Install/Rep-Lead 3.00 Utilities Install/Rep-Welding 2.00 Utilities Install/Rep-Welding-Lead 6.00 Utilities Supervisor 4.00 Water Systems Operator II 5.00 WGW Heavy Equipment Operator UTILITIES UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 285 Description Palo Alto is the only city in California that offers a full array of utility services to its citizens and businesses. Because of this, the City has a unique opportunity to partner with the Palo Alto community to enjoy the benefits and achievements of reliable, home-grown, and environmentally-focused utilities. Palo Alto has a tradition of over 100 years of successful public utility operations. It is a tradition that continues to provide the Palo Alto community with safe and reliable utilities service, local decision-making over policies, utility rate-making, environmental programs, and customized services. The City of Palo Alto Utilities (CPAU) continues to focus on customer service, infrastructure reliability, regulatory compliance, and cost containment. CPAU also supports the City’s sustainability goals by building a low-carbon energy supply through the use of renewable energy and offsets and by promoting programs to help customers use energy and water more efficiently, reduce their carbon footprint, and help them integrate new technologies. At CPAU, our people empower tomorrow’s ambitions while caring for today’s needs. We make this possible with our outstanding professional workforce, leading through collaboration, and optimizing resources to ensure a sustainable and resilient Palo Alto. ADMINISTRATION Utilities Administration is responsible for the overall management of the CPAU including com- munication, regulatory compliance, strategic planning, budget coordination, legislation and reg- ulatory policy analysis, and personnel and administrative support to the entire Department. CUSTOMER SUPPORT SERVICES Customer Support Services annually bills $250 million for the City’s electric, natural gas, water, commercial fiber optic, wastewater collection (operated by CPAU), storm drain, and refuse (operated by Public Works) services; operates the Customer Service Call Center with 75,000 annual customer interactions; reads 90,000 utility meters per month; and implements Credit and Collection policies and financial assistance programs. UTILITIES 286 UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET ENGINEERING Engineering is responsible for managing all phases of CPAU’s capital improvement projects which include providing new or upgrading existing service to customers and replacing and rehabilitating the City’s electric, fiber, gas, water, and wastewater distribution systems. OPERATIONS Utilities Operations is responsible for the operations, maintenance, and emergency response for the electric, fiber, gas, water, and wastewater distribution systems. RESOURCE MANAGEMENT Resource Management is responsible for the long-term resource acquisition plan for, electricity, natural gas, and water; contract negotiations to acquire renewable resources; financial planning; rate development; energy efficiency and water conservation programs; and management of key accounts. UTILITIES UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 287 Budget Summary FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % Dollars by Fund Electric Fund - Operating 51,443,024 56,136,690 76,606,602 79,254,105 2,647,503 3.5% Electric Supply 108,624,454 102,141,767 110,086,193 112,382,196 2,296,003 2.1% Fiber Optics 3,377,476 2,885,744 4,325,932 3,589,532 (736,400)(17.0)% Gas Fund - Operating 23,120,579 26,255,608 26,707,978 36,489,947 9,781,969 36.6% Gas Supply 14,110,302 17,293,927 17,866,764 17,109,788 (756,976)(4.2)% Wastewater Collection - Operating 17,880,581 18,415,551 27,310,057 23,818,873 (3,491,184)(12.8)% Water Fund - Operating 46,737,022 43,711,111 60,843,556 53,359,316 (7,484,240)(12.3)% Total 265,293,438 266,840,398 323,747,082 326,003,756 2,256,675 0.7% Revenues Charges for Services 459,431 509,624 420,000 260,000 (160,000)(38.1)% Charges to Other Funds 841,410 470,943 354,717 375,311 20,594 5.8% From Other Agencies 500,773 488,052 576,632 576,632 ——% Net Sales 248,735,959 264,444,785 264,139,740 276,120,189 11,980,448 4.5% Operating Transfers-In 3,977,536 3,873,979 3,163,724 3,202,109 38,385 1.2% Other Revenue 9,785,634 11,348,937 11,719,065 11,045,946 (673,119)(5.7)% Rental Income 5,000 10,000 ————% Return on Investments 4,131,918 4,908,650 5,160,700 4,565,900 (594,800)(11.5)% Total Revenues 268,437,661 286,054,971 285,534,578 296,146,086 10,611,508 3.7% Positions by Fund Electric Fund 111.23 111.33 110.95 111.34 0.39 0.35% Fiber Optics Fund 7.60 7.60 7.50 7.10 (0.40)(5.33)% Gas Fund 53.11 53.83 53.83 53.83 ——% Utilities Administration 19.21 19.21 19.46 19.46 ——% Wastewater Collection Fund 29.00 29.16 29.16 28.50 (0.66)(2.26)% Water Fund 47.90 46.92 46.94 47.61 0.67 1.43% Total 268.05 268.05 267.84 267.84 ——% UTILITIES 288 UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET ELECTRIC FUND Description On January 16, 1900, the City of Palo Alto began operation of its own electric system. A steam engine was the initial source of the City’s electricity and was replaced by a diesel engine in 1914. As demand for electricity and the population continued to grow, the City of Palo Alto Utilities (CPAU) connected to the Pacific Gas and Electric distribution system and purchased power from additional sources. The integrity of the infrastructure required for achieving a high level of reliability and value for customers is of paramount importance to CPAU. The Electric Fund strives to enhance the customer service connection experience, increase energy efficiency participation, and increase the percentage of electric supply obtained from renewable energy supplies. The City has entered into a number of contracts with producers of wind, landfill gas, and solar energy for more than 15-year terms. UTILITIES UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 289 Budget Summary FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % Dollars by Division CIP Electric Fund 10,315,316 15,615,817 23,765,466 25,675,767 1,910,301 8.0% Electric Administration 24,586,157 23,218,636 27,176,349 27,202,118 25,768 0.1% Electric Customer Service 2,292,027 2,306,400,2,665,595 2,702,805 37,211 1.4% Electric Demand Side Management 3,958,743 3,716,457 6,991,511 7,060,480 68,969 1.0% Electric Engineering (Operating)1,790,943 1,843,389 2,415,964 2,538,266 122,302 5.1% Electric Operations and Maintenance 11,664,339 11,606,585 16,103,804 17,465,526 1,361,722 8.5% Electric Resource Management 105,459,953 99,971,173 107,574,106 108,991,339 1,417,233 1.3% Total 160,067,478 158,278,458 186,692,795 191,636,301 4,943,506 2.6% Dollars by Category Salary & Benefits Healthcare 1,949,617 1,820,670 2,475,451 2,378,757 (96,694)(3.9)% Other Benefits 304,713 318,143 373,996 462,288 88,292 23.6% Overtime 929,360 1,017,707 517,920 531,386 13,466 2.6% Pension 3,103,244 3,214,302 5,290,653 5,332,020 41,367 0.8% Retiree Medical 1,617,277 1,555,185 1,601,840 1,626,258 24,418 1.5% Salary 10,816,735 10,846,696 13,384,300 15,147,711 1,763,411 13.2% Workers' Compensation 123,558 292,351 441,673 459,563 17,889 4.1% Total Salary & Benefits 18,844,505 19,065,053 24,085,834 25,937,983 1,852,149 7.7% Allocated Charges 5,506,903 4,253,400 10,434,079 9,655,240 (778,839)(7.5)% Contract Services 3,096,678 2,786,957 7,615,180 6,677,366 (937,814)(12.3)% Debt Service 8,770,695 8,368,513 8,476,576 8,442,678 (33,898)(0.4)% Equity Transfer 12,887,000 12,973,000 13,129,000 13,479,000 350,000 2.7% Facilities & Equipment 2,174 18,379 64,155 27,300 (36,855)(57.4)% General Expense 2,135,223 2,258,230 3,441,967 3,441,967 ——% Operating Transfers-Out 560,572 297,973 —50,000 50,000 —% Rents & Leases 5,612,918 5,784,139 6,276,636 6,389,015 112,379 1.8% Supplies & Material 474,977 533,907 924,207 924,207 ——% Transfer to Infrastructure —199,167 ————% Utility Purchase 94,659,116 89,680,963 95,678,373 97,084,000 1,405,627 1.5% UTILITIES 290 UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Capital Improvement Program 7,516,715 12,058,775 16,566,787 19,527,544 2,960,758 17.9% Total Dollars by Expense Category 160,067,478 158,278,458 186,692,795 191,636,301 4,943,506 2.6% Revenues Charges for Services 310,863 375,880 380,000 220,000 (160,000)(42.1)% Charges to Other Funds 460,890 193,480 139,712 145,401 5,689 4.1% Net Sales 145,962,397 154,155,483 154,329,190 164,199,920 9,870,730 6.4% Operating Transfers-In 3,465,100 3,334,701 2,615,588 2,644,849 29,261 1.1% Other Revenue 7,508,222 8,797,973 8,928,000 8,918,000 (10,000)(0.1)% Rental Income 5,000 10,000 ————% Return on Investments 1,941,997 2,431,950 2,158,000 2,063,800 (94,200)(4.4)% Total Revenues 159,654,470 169,299,467 168,550,490 178,191,970 9,641,480 5.7% Positions by Division CIP Electric Fund 31.90 31.90 31.90 24.35 (7.55)(23.67)% Electric Customer Service 11.70 12.00 11.90 11.90 ——% Electric Demand Side Management 6.17 6.17 5.59 5.59 ——% Electric Engineering (Operating)4.98 4.98 4.98 6.67 1.69 33.94% Electric Operations and Maintenance 48.10 48.10 48.10 54.35 6.25 12.99% Electric Resource Management 8.38 8.18 8.48 8.48 ——% Total 111.23 111.33 110.95 111.34 0.39 0.35% Staffing Job Classification FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Salary Account Specialist 0.31 0.31 0.31 0.31 —24,264 Administrative Associate II 3.90 3.90 3.30 3.30 —258,704 Assistant Director Administrative Services 0.20 0.20 0.20 0.20 —36,462 Assistant Director Utilities Customer Support Services 0.40 0.40 0.40 0.40 —81,178 Budget Summary FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % UTILITIES UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 291 Assistant Director Utilities Engineering 0.40 0.40 0.40 0.40 —86,969 Assistant Director Utilities Operations 0.60 0.60 0.60 0.60 —136,307 Assistant Director Utilities/Resource Management 0.50 0.50 0.50 0.50 —104,447 Business Analyst 1.94 1.60 1.60 1.60 —248,535 Contracts Administrator 0.10 0.10 0.10 0.10 —10,113 Coordinator Utilities Projects 1.55 1.55 1.55 1.55 —148,385 Customer Service Representative 1.87 1.87 1.87 1.87 —145,277 Customer Service Specialist 0.66 0.66 0.66 0.66 —56,381 Customer Service Specialist-Lead 0.58 0.58 0.58 0.58 —52,985 Electric Heavy Equipment Operator ———2.00 2.00 217,318 Electric Project Engineer 1.95 1.95 3.25 3.65 0.40 580,788 Electric Underground Inspector 2.00 2.00 2.00 2.00 —228,883 Electric Underground Inspector- Lead 1.00 1.00 1.00 1.00 —122,387 Electrical Equipment Technician 1.00 1.00 1.00 1.00 —116,958 Electrician Assistant I 3.00 3.00 3.00 3.00 —272,563 Engineering Manager - Electric 0.55 0.55 0.55 0.55 —118,244 Engineering Technician III 1.40 1.40 1.40 1.40 —137,971 Heavy Equipment Operator 2.00 2.00 2.00 —(2.00)— Inspector, Field Services 0.25 0.25 0.25 0.25 —26,577 Lineperson/Cable Specialist 11.00 11.00 11.00 10.00 (1.00)1,574,352 Lineperson/Cable Specialist-Lead 4.00 4.00 4.00 4.00 —673,837 Manager Customer Service 0.33 0.33 0.33 0.33 —52,070 Manager Electric Operations 1.00 1.00 1.00 1.00 —192,546 Manager Treasury, Debt & Investments 0.30 0.30 0.30 0.30 —46,513 Manager Utilities Compliance 0.15 0.15 0.15 0.15 —29,531 Manager Utilities Credit & Collection 0.15 0.15 0.15 0.15 —23,902 Manager Utilities Program Services 0.40 0.40 0.40 0.40 —61,718 Meter Reader 1.99 1.99 1.99 1.99 —145,286 Meter Reader-Lead 0.33 0.33 0.33 0.33 —25,781 Staffing Job Classification FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Salary UTILITIES 292 UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Metering Technician 3.00 3.00 3.00 3.00 —409,157 Metering Technician-Lead 1.00 1.00 1.00 1.00 —145,974 Offset Equipment Operator 0.48 0.48 0.48 0.48 —33,426 Overhead Underground Troubleman 2.00 2.00 2.00 2.00 —330,720 Power Engineer 2.30 2.30 1.00 1.00 —150,030 Principal Business Analyst 0.34 0.34 0.34 0.34 —62,064 Program Assistant II ——0.60 0.60 —51,293 Project Manager 0.75 0.75 0.75 0.75 —81,806 Resource Planner 3.85 3.65 2.85 2.85 —409,091 SCADA Technologist 1.00 1.00 1.00 1.01 0.01 154,031 Senior Business Analyst 0.68 1.02 1.02 1.02 —161,921 Senior Electrical Engineer 3.95 3.95 3.95 3.95 —766,016 Senior Management Analyst 0.10 0.10 0.10 0.10 —12,881 Senior Resource Planner 3.06 3.06 3.36 3.36 —600,182 Senior Utilities Field Service Representative 0.10 0.10 0.10 0.10 —11,588 Street Light, Traffic Signal & Fiber Technician 3.00 3.00 3.00 3.00 —391,310 Street Light, Traffic Signal & Fiber- Lead 1.00 1.00 1.00 1.00 —139,610 Substation Electrician 5.50 5.50 5.50 5.50 —782,839 Substation Electrician-Lead 2.00 2.00 2.00 2.00 —304,595 Supervising Electric Project Engineer 1.00 1.00 1.00 1.00 —162,968 Tree Maintenance Person 1.00 1.00 1.00 1.00 —88,150 Utilities Compliance Technician 2.00 2.00 2.00 3.00 1.00 472,306 Utilities Compliance Technician- Lead 1.00 1.00 1.00 1.00 —168,459 Utilities Credit/Collection Specialist 2.00 2.00 2.00 2.00 —201,469 Utilities Engineer Estimator 3.25 3.25 3.25 3.23 (0.02)422,605 Utilities Field Services Representative 0.50 0.50 0.50 0.50 —54,184 Utilities Key Account Representative 1.35 1.35 1.35 1.35 —162,106 Utilities Locator 1.95 1.95 1.95 1.95 —203,652 Staffing Job Classification FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Salary UTILITIES UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 293 Utilities Marketing Program Administrator 1.60 1.90 2.70 2.70 —307,981 Utilities Safety Officer 0.55 0.55 0.55 0.55 —72,781 Utilities Supervisor 5.00 5.00 5.00 5.00 —851,822 Utilities System Operator 5.00 5.00 5.00 5.00 —881,400 Utility Engineering Estimator - Lead 1.00 1.00 1.00 1.00 —141,336 Sub-total: Full-Time Equivalent Positions 107.12 107.22 107.52 107.91 0.39 15,226,987 Temporary/Hourly 4.11 4.11 3.43 3.43 —290,926 Total Positions 111.23 111.33 110.95 111.34 0.39 15,517,913 Staffing Job Classification FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Salary UTILITIES 294 UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Budget Reconciliation Positions Expenditures Revenues Net Electric Fund Prior Year Budget 110.95 186,692,795 168,550,490 18,142,305 One-time Prior Year Budget Adjustments Elwell Court Improvements — (170,791) — 170,791 Administrative Services Staffing Vacancies — 19,968 — 19,968 One-time Prior Year Budget Adjustments —(150,823)—190,759 Adjustments to Costs of Ongoing Activities Salary and Benefits Adjustments — 1,739,961 — 1,739,961 Electric Commodity Revenue Adjustments — — 5,969,877 (5,969,877) Electric Customer Sales Revenue (3% Rate Increase)— — 4,150,377 (4,150,377) Realignment of Contract Services — (937,814) — (937,814) Transfer from the General Fund (Traffic Signal and Streetlight Electric Costs)— — 62,471 (62,471) Radio Subscription Fees — (36,855) — (36,855) Utility Payment Processing — — 5,689 (5,689) Transfer from the General Fund (Canopy Contract CMR 10959)— — (33,210) 33,210 Utilities Capital Staffing Alignment 0.39 92,220 — 92,220 Return on Investments — — (94,200) 94,200 Surplus Energy Revenue — — (249,524) 249,524 Rents & Leases Expenditure Alignment — 283,170 — 283,170 Equity Transfer to the General Fund — 350,000 — 350,000 Electric Commodity Purchases Expenditure — 1,371,729 — 1,371,729 Capital Improvement Program — 2,960,758 (170,000) 3,130,758 General Fund Cost Allocation Plan — 218,681 — 218,681 General Liability Insurance Allocated Charges — 26,634 — 26,634 Grounds Maintenance Allocated Charges — 627 — 627 Print & Mail Allocated Charges — 14,182 — 14,182 Public Works Engineering & Inspection Allocated Charges — (4,812) — (4,812) Refuse Sales Allocated Charges — (333) — (333) Stormwater Management Allocated Charges — 856 — 856 Utilities Administration Allocated Charges Adjustment — (826,083) — (826,083) Utilities Allocated Charges — (215,318) — (215,318) UTILITIES UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 295 Utilities Allocated Charges Adjustment — (2,280)— (2,280) Vehicle Replacement & Maintenance Charges — 9,006 — 9,006 Adjustments to Costs of Ongoing Activities 0.39 5,044,329 9,641,480 (4,597,151) Total FY 2021 Base Budget 111.34 191,586,301 178,191,970 13,735,913 1 Compliance Group Staffing Realignment — 0 — — 2 Study of Electric Vehicle Chargers/Locations — 50,000 — 50,000 Total FY 2021 Proposed Budget 111.34 191,636,301 178,191,970 13,785,913 Budget Adjustments Budget Adjustments Positions Expenditures Revenues Net Electric Fund 1 Compliance Group Staffing Realignment 0.00 0 0 0 This ongoing action will add one vacant 1.0 FTE Compliance Technician and drop one vacant 1.0 FTE Linerperson Cablesplicer position to reallocate resources from the Linesperson group to the Compliance group. The Compliance group is responsible for inspecting and coordinating electrical line construction, including construction by contractors. Reallocating resources to the Compliance group aligns with the current business operational needs to meet the growing amount of inspections being conducted and will have minimal impact to the Linesperson group, which receives additional support through a third party contractor. Performance Results Reallocating resources from the Lineperson group to the Compliance group will help meet the current business operational needs with minimal to no impact to costs and service delivery. Budget Reconciliation Positions Expenditures Revenues Net Electric Fund UTILITIES 296 UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 2 Study of Electric Vehicle Chargers/Locations 0.00 50,000 0 50,000 This one-time action adds funding to conduct a study assessing current and potential future locations of electric vehicle chargers at City facility sites. The study will also explore the standardization of chargers to support fueling for existing and new City vehicles. With the expansion of electric vehicles in the City’s fleet, the number of chargers must also expand. Funding for this study is supported by the Vehicle Replacement and Maintenance Fund Reserve ($50,000) and the Utilities Department ($50,000) through a transfer from the Electric Fund. A corresponding action is proposed in the Vehicle Replacement and Maintenance Fund. (Ongoing Costs: $0) Performance Results This action supports the Sustainability and Climate Action Plan goal of expanding the electric vehicle deployment of the City's fleet. Budget Adjustments Budget Adjustments Positions Expenditures Revenues Net Electric Fund UTILITIES UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 297 FIBER OPTICS FUND Description In 1996, the City built a dark fiber ring around Palo Alto capable of supporting multiple network developers and service providers with significant growth potential. The fiber backbone network was routed to pass by and provide access to key City facilities and the Palo Alto business community, including research centers and commercial properties. Dark fiber optics service consists of providing the fiber optics cabling, splice points, service connections, and other infrastructure providing high-capacity bandwidth needed to transport large quantities of data. This service excludes the transmitters, receivers, and data itself, which are owned and operated by each customer. UTILITIES 298 UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Budget Summary FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % Dollars by Division CIP Fiber Optics Fund 1,047,968 791,530 1,525,441 749,961 (775,481)(50.8)% Fiber Optics Administration 188,357 205,681 919,370 897,311 (22,060)(2.4)% Fiber Optics Customer Service 678,580 633,076 1,241,621 1,234,507 (7,114)(0.6)% Fiber Optics Operations and Maintenance 1,462,572 1,255,457 639,500 707,753 68,254 10.7% Total 3,377,476 2,885,744 4,325,932 3,589,532 (736,400)(17.0)% Dollars by Category Salary & Benefits Healthcare 163,825 152,237 171,660 139,597 (32,063)(18.7)% Other Benefits 24,736 23,681 29,786 33,953 4,168 14.0% Overtime 21,055 20,229 25,521 26,184 664 2.6% Pension 242,846 247,607 358,230 329,389 (28,841)(8.1)% Salary 1,007,041 884,605 967,733 995,746 28,014 2.9% Workers' Compensation 666 19,047 30,967 32,221 1,254 4.1% Total Salary & Benefits 1,460,169 1,347,406 1,583,895 1,557,091 (26,804)(1.7)% Allocated Charges 542,597 412,690 747,422 756,600 9,178 1.2% Contract Services 161,241 173,912 454,646 454,646 ——% Facilities & Equipment —1,224 2,457 —(2,457)(100.0)% General Expense 2,430 2,125 12,000 12,000 ——% Operating Transfers-Out 129,531 123,557 102,176 102,176 ——% Rents & Leases 75,375 77,787 82,360 53,531 (28,829)(35.0)% Supplies & Material 8,738 1,661 9,000 9,000 ——% Transfer to Infrastructure 5,700 15,218 ————% Capital Improvement Program 991,695 730,163 1,331,975 644,488 (687,488)(51.6)% Total Dollars by Expense Category 3,377,476 2,885,744 4,325,932 3,589,532 (736,400)(17.0)% Revenues Charges for Services 37,224 26,712 ————% Charges to Other Funds 135,895 —————% Net Sales 4,356,872 4,566,484 4,594,824 4,716,421 121,597 2.6% UTILITIES UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 299 Other Revenue 66,032 163 200,000 200,000 ——% Return on Investments 582,095 683,895 749,500 646,700 (102,800)(13.7)% Total Revenues 5,178,117 5,277,254 5,544,324 5,563,121 18,797 0.3% Positions by Division CIP Fiber Optics Fund 0.79 0.79 0.79 0.39 (0.40)(50.63)% Fiber Optics Customer Service 3.68 3.68 3.58 3.58 ——% Fiber Optics Operations and Maintenance 3.13 3.13 3.13 3.13 ——% Total 7.60 7.60 7.50 7.10 (0.40)(5.33)% Staffing Job Classification FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Salary Administrative Associate II 0.20 0.20 0.20 0.20 —15,679 Assistant Director Utilities Customer Support Services 0.20 0.20 0.20 0.20 —40,589 Assistant Director Utilities Engineering 0.05 0.05 0.05 0.05 —10,871 Business Analyst 0.30 0.30 0.30 0.30 —46,600 Electric Project Engineer 0.05 0.05 0.45 0.05 (0.40)7,956 Manager Utilities Compliance 0.10 0.10 0.10 0.10 —19,687 Manager Utilities Credit & Collection 0.40 0.40 0.40 0.40 —63,740 Manager Utilities Program Services 0.20 0.20 0.20 0.20 —30,859 Manager Utilities Telecommunications 1.00 1.00 1.00 1.00 —154,586 Power Engineer 0.40 0.40 ———— Senior Electrical Engineer 0.05 0.05 0.05 0.05 —9,637 Street Light, Traffic Signal & Fiber Technician 2.00 2.00 2.00 2.00 —260,874 Street Light, Traffic Signal & Fiber- Lead 1.00 1.00 1.00 1.00 —139,610 Utilities Key Account Representative 0.80 0.80 0.80 0.80 —96,063 Budget Summary FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % UTILITIES 300 UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Utilities Locator 0.03 0.03 0.03 0.03 —3,133 Sub-total: Full-Time Equivalent Positions 6.78 6.78 6.78 6.38 (0.40)899,882 Temporary/Hourly 0.82 0.82 0.72 0.72 —74,506 Total Positions 7.60 7.60 7.50 7.10 (0.40)974,388 Staffing Job Classification FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Salary UTILITIES UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 301 Budget Reconciliation Positions Expenditures Revenues Net Fiber Optics Fund Prior Year Budget 7.50 4,325,932 5,544,324 (1,390,428) One-time Prior Year Budget Adjustments None One-time Prior Year Budget Adjustments Adjustments to Costs of Ongoing Activities Salary and Benefits Adjustments — 66,822 — 66,822 Utilities Capital Staffing Alignment (0.40) (93,626) — (93,626) Fiber Optics Revenue (Rate Increase of 2.5% CPI for EDF-1)— — 121,597 (121,597) Rents & Leases Expenditure Alignment — (28,829) — (28,829) Radio Subscription Fees — (2,457) — (2,457) Return on Investments — — (102,800) 102,800 Capital Improvement Program — (687,488) — (687,488) General Fund Cost Allocation Plan — 31,697 — 31,697 Liability Insurance Allocated Charges — 2,409 — 2,409 Utilities Administration Allocated Charges — (24,928) — (24,928) Adjustments to Costs of Ongoing Activities (0.40)(736,400)18,797 (755,197) Total FY 2021 Proposed Budget 7.10 3,589,532 5,563,121 (2,145,625) UTILITIES 302 UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET GAS FUND Description The municipal natural gas system began operations in 1917 when Palo Alto acquired a privately-owned gas business. During the early years, gas was manufactured from coal tar. This was replaced in the 1920s by natural gas from Pacific Gas and Electric. Today, gas is purchased from several sources. The Gas Utility services include Crossbore Safety, Gas Main Replacements, and Home Energy Audits. The Gas utility infrastructure and its crews maintain an excellent safety record. The gas fund is responsible for planning, designing, budgeting, and constructing major capital improvements to the City’s gas distribution system. UTILITIES UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 303 Budget Summary FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % Dollars by Division CIP Gas Fund 5,504,869 9,145,930 3,342,737 13,153,717 9,810,980 293.5% Gas Administration 11,065,620 10,587,695 13,182,008 12,930,773 (251,235)(1.9)% Gas Customer Service 1,529,936 1,564,025 1,911,680 1,942,647 30,968 1.6% Gas Demand Side Management 828,561 536,424 1,567,605 1,580,301 12,696 0.8% Gas Engineering (Operating)350,902 400,087 670,487 720,445 49,958 7.5% Gas Operations and Maintenance 4,673,257 4,957,368 7,101,687 7,853,574 751,887 10.6% Gas Resource Management 13,277,736 16,358,006 16,798,537 15,418,277 (1,380,260)(8.2)% Total 37,230,881 43,549,535 44,574,742 53,599,734 9,024,993 20.2% Dollars by Category Salary & Benefits Healthcare 883,093 911,670 1,143,407 1,098,276 (45,130)(3.9)% Other Benefits 120,687 134,145 176,172 205,324 29,152 16.5% Overtime 200,797 192,593 198,165 203,318 5,152 2.6% Pension 1,333,372 1,428,625 2,310,105 2,149,058 (161,047)(7.0)% Retiree Medical 625,662 667,617 687,645 704,333 16,688 2.4% Salary 4,151,790 4,384,864 5,432,855 6,098,587 665,733 12.3% Workers' Compensation 90,119 124,864 186,916 194,487 7,571 4.1% Total Salary & Benefits 7,405,521 7,844,377 10,135,265 10,653,383 518,118 5.1% Allocated Charges 2,690,914 2,527,804 5,033,119 4,969,057 (64,063)(1.3)% Contract Services 617,044 542,232 2,463,313 2,441,313 (22,000)(0.9)% Debt Service 203,683 179,933 802,615 802,615 ——% Equity Transfer 6,699,000 6,601,000 7,106,000 7,114,000 8,000 0.1% Facilities & Equipment 2,027 8,570 19,039 1,840 (17,199)(90.3)% General Expense 421,873 358,847 762,991 778,491 15,500 2.0% Operating Transfers-Out 972,491 713,892 410,403 414,965 4,562 1.1% Rents & Leases 735,359 757,276 851,539 610,121 (241,418)(28.4)% Supplies & Material 344,184 355,647 488,816 495,316 6,500 1.3% Transfer to Infrastructure 5,700 84,833 ————% Utility Purchase 12,921,050 15,957,533 16,012,329 14,625,296 (1,387,033)(8.7)% UTILITIES 304 UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Capital Improvement Program 4,212,033 7,617,592 489,312 10,693,338 10,204,026 2,085.4% Total Dollars by Expense Category 37,230,881 43,549,535 44,574,742 53,599,734 9,024,993 20.2% Revenues Charges for Services 28,560 34,269 20,000 20,000 ——% Charges to Other Funds 115,229 111,459 100,622 105,529 4,907 4.9% Net Sales 35,794,564 40,955,173 37,278,530 39,334,842 2,056,312 5.5% Other Revenue 1,109,304 1,023,183 1,124,303 913,000 (211,303)(18.8)% Return on Investments 568,475 596,995 802,300 621,800 (180,500)(22.5)% Total Revenues 37,616,132 42,721,079 39,325,755 40,995,171 1,669,416 4.2% Positions by Division CIP Gas Fund 15.80 15.80 15.80 11.73 (4.07)(25.76)% Gas Customer Service 9.03 9.13 9.03 9.03 ——% Gas Demand Side Management 1.94 1.54 1.54 1.54 ——% Gas Engineering (Operating)1.40 1.40 1.40 1.85 0.45 32.14% Gas Operations and Maintenance 23.98 24.30 24.30 27.92 3.62 14.90% Gas Resource Management 0.96 1.66 1.76 1.76 ——% Total 53.11 53.83 53.83 53.83 ——% Staffing Job Classification FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Salary Account Specialist 0.23 0.23 0.23 0.23 —18,002 Administrative Associate II 0.85 0.85 0.60 0.60 —47,037 Assistant Director Administrative Services 0.05 0.05 0.05 0.05 —9,116 Assistant Director Utilities Customer Support Services 0.20 0.20 0.20 0.20 —40,589 Assistant Director Utilities Engineering 0.20 0.20 0.20 0.20 —43,484 Assistant Director Utilities Operations 0.15 0.15 0.15 0.15 —34,077 Budget Summary FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % UTILITIES UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 305 Assistant Director Utilities/Resource Management 0.25 0.25 0.25 0.25 —52,224 Business Analyst 1.48 1.15 1.15 1.15 —178,635 Cathodic Protection Technician Assistant 1.00 1.00 1.00 1.00 —106,621 Cathodic Technician 1.00 1.00 1.00 1.00 —130,853 Cement Finisher 0.68 0.68 0.68 0.68 —64,652 Contracts Administrator 0.10 0.10 0.10 0.10 —10,113 Coordinator Utilities Projects 1.26 1.26 1.26 1.26 —144,092 Customer Service Representative 1.87 1.87 1.87 1.87 —145,277 Customer Service Specialist 0.68 0.68 0.68 0.68 —58,089 Customer Service Specialist-Lead 0.58 0.58 0.58 0.58 —52,985 Engineer 2.00 2.00 2.00 2.00 —281,008 Engineering Manager - Electric 0.15 0.15 0.15 0.15 —32,248 Engineering Manager - WGW 0.33 0.33 0.33 0.33 —66,540 Engineering Technician III 0.70 0.70 0.70 0.70 —68,985 Gas and Water Meter Measurement and Control Technician 3.20 3.20 3.20 3.40 0.20 345,326 Gas and Water Meter Measurement and Control Technician - Lead 0.80 0.80 0.80 0.80 —86,944 Heavy Equipment Operator 2.52 2.52 2.52 —(2.52)— Heavy Equipment Operator - Install/Repair 0.65 0.65 0.65 0.65 —68,635 Inspector, Field Services 1.42 1.42 1.42 2.05 0.63 217,933 Maintenance Mechanic-Welding 1.00 1.00 1.00 1.00 —106,538 Manager Customer Service 0.33 0.33 0.33 0.33 —52,070 Manager Treasury, Debt & Investments 0.10 0.10 0.10 0.10 —15,504 Manager Utilities Compliance 0.25 0.25 0.25 0.25 —49,218 Manager Utilities Credit & Collection 0.15 0.15 0.15 0.15 —23,902 Manager Utilities Operations WGW 0.20 0.20 0.20 0.20 —37,041 Manager Utilities Program Services 0.20 0.20 0.20 0.20 —30,859 Meter Reader 1.98 1.98 1.98 1.98 —144,556 Meter Reader-Lead 0.33 0.33 0.33 0.33 —25,781 Principal Business Analyst 0.33 0.33 0.33 0.33 —60,238 Staffing Job Classification FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Salary UTILITIES 306 UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Program Assistant I 0.33 0.33 0.33 0.33 —26,255 Program Assistant II ——0.25 0.25 —21,372 Project Engineer 1.00 1.00 1.00 1.00 —151,216 Resource Planner (0.05)0.65 0.45 0.45 —64,593 Restoration Lead 0.43 0.43 0.43 0.43 —48,530 SCADA Technologist 0.20 0.20 0.20 0.10 (0.10)15,251 Senior Business Analyst 0.66 0.99 0.99 0.99 —157,158 Senior Engineer 2.70 2.70 2.70 2.35 (0.35)400,449 Senior Mechanic 0.33 0.33 0.33 0.33 —37,388 Senior Resource Planner 0.46 0.46 0.56 0.56 —97,650 Senior Utilities Field Service Representative 0.41 0.41 0.41 0.41 —47,509 Substation Electrician 0.10 0.10 0.10 0.25 0.15 35,584 Utilities Engineer Estimator 0.85 0.85 0.85 0.73 (0.12)91,288 Utilities Field Services Representative 1.75 1.75 1.75 1.75 —189,644 Utilities Install Repair-Lead-Welding Certified 1.30 1.30 1.30 0.77 (0.53)90,859 Utilities Install Repair-Welding Certified 1.95 1.95 1.95 1.43 (0.52)141,077 Utilities Install/Repair 3.85 3.85 3.85 4.56 0.71 481,828 Utilities Install/Repair Assistant 0.65 0.65 0.65 0.65 —58,244 Utilities Install/Repair-Lead 1.98 1.98 1.98 1.93 (0.05)205,564 Utilities Key Account Representative 0.50 0.50 0.50 0.50 —60,039 Utilities Locator 0.29 0.29 0.29 0.29 —30,287 Utilities Marketing Program Administrator 1.00 0.70 0.90 0.90 —102,660 Utilities Safety Officer 0.20 0.20 0.20 0.20 —26,466 Utilities Supervisor 2.37 2.37 2.37 2.37 —363,019 Water System Operator II 0.66 0.66 0.66 0.66 —65,345 WGW Heavy Equipment Operator ———2.50 2.50 263,484 Sub-total: Full-Time Equivalent Positions 51.14 51.54 51.64 51.64 —6,121,931 Temporary/Hourly 1.97 2.29 2.19 2.19 —121,205 Total Positions 53.11 53.83 53.83 53.83 —6,243,137 Staffing Job Classification FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Salary UTILITIES UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 307 Budget Reconciliation Positions Expenditures Revenues Net Gas Fund Prior Year Budget 53.83 44,574,742 39,325,755 5,248,987 One-time Prior Year Budget Adjustments Elwell Court Improvements — (67,452) — (67,452) One-time Prior Year Budget Adjustments —(67,452)—(67,452) Adjustments to Costs of Ongoing Activities Salary and Benefits Adjustments — 565,917 — 565,917 Gas Customer Sales Revenue (5% Rate Increase) — — 2,061,219 (2,061,219) Rents & Leases Expenditure Alignment — (173,966) — (173,966) Utilities Capital Staffing Alignment — (47,798) — (47,798) Contract Services — (22,000) — (22,000) Radio Subscription Fees — (17,199) — (17,199) Transfer to the Water Fund — 4,562 — 4,562 Supplies & Material — 6,500 — 6,500 Equity Transfer to the General Fund — 8,000 — 8,000 General Expense — 15,500 — 15,500 Return on Investments — — (180,500) 180,500 Capital Improvement Program —10,204,025 (211,303) 10,415,328 General Fund Cost Allocation Plan — 205,498 — 205,498 General Liability Insurance Allocated Charges — 11,070 — 11,070 Landscape Maintenance Contract — 116 — 116 Printing & Mailing Allocated Charges — 4,472 — 4,472 Public Works Engineering & Inspection Allocated Charges — (4,811) — (4,811) Stormwater Management Allocated Charges — 2 — 2 Utilities Administration Allocated Charges Adjustment — (290,345) — (290,345) Utilities Allocated Charges Adjustment — (1,387,033) — (1,387,033) Vehicle Replacement & Maintenance Charges — 9,936 — 9,936 Adjustments to Costs of Ongoing Activities —9,092,444 1,669,416 7,423,028 Total FY 2021 Proposed Budget 53.83 53,599,734 40,995,171 12,604,563 UTILITIES 308 UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET UTILITIES UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 309 WASTEWATER COLLECTION FUND Description In 1898, Palo Alto approved $28,000 in bond money to fund construction of the City’s first sewer network, which was completed in 1899. Private cesspools and privies were banned, and the City Health Officer had residents connected to the sewer system within a few years. Wastewater Collection’s staff is responsible for design, construction, operation, and maintenance of approximately 216 miles of sewer mains and over 18,000 City-owned laterals. Staff continues overlapping the design and construction elements of rehabilitation and augmentation projects. Wastewater Collection’s priorities are maintaining infrastructure reliability, identifying problems in mains and service laterals through expanded use of video technology, complying with all regulatory requirements, and maintaining its excellent safety record. UTILITIES 310 UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Budget Summary FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % Dollars by Division CIP Wastewater Collection Fund 2,948,288 3,328,061 8,257,990 4,539,588 (3,718,402)(45.0)% Wastewater Collection Administration 2,024,750 1,755,355 3,038,712 2,914,040 (124,671)(4.1)% Wastewater Collection Customer Service 283,291 306,092 355,693 370,071 14,378 4.0% Wastewater Collection Engineering (Operating)345,136 328,587 560,183 517,053 (43,130)(7.7)% Wastewater Collection Operations and Maintenance 12,279,116 12,697,456 15,097,480 15,478,122 380,642 2.5% Total 17,880,581 18,415,551 27,310,057 23,818,873 (3,491,184)(12.8)% Dollars by Category Salary & Benefits Healthcare 530,834 521,663 659,170 602,798 (56,372)(8.6)% Other Benefits 65,624 66,144 88,978 103,544 14,566 16.4% Overtime 204,273 200,097 154,911 158,939 4,028 2.6% Pension 748,942 777,467 1,271,815 1,154,251 (117,564)(9.2)% Retiree Medical 143,626 259,629 267,418 271,771 4,354 1.6% Salary 2,238,681 2,307,005 3,192,081 3,262,834 70,753 2.2% Workers' Compensation 19,139 68,779 104,473 108,705 4,232 4.1% Total Salary & Benefits 3,951,119 4,200,783 5,738,846 5,662,842 (76,004)(1.3)% Allocated Charges 1,173,511 925,975 3,043,020 2,981,634 (61,385)(2.0)% Contract Services 95,622 142,314 248,986 248,986 ——% Debt Service 38,190 33,560 129,001 129,001 ——% Facilities & Equipment —4,897 12,828 3,000 (9,828)(76.6)% General Expense 67,985 91,013 122,900 122,900 ——% Operating Transfers-Out 442,062 340,672 274,068 278,630 4,562 1.7% Rents & Leases 432,531 420,220 480,121 351,729 (128,391)(26.7)% Supplies & Material 270,575 236,250 380,618 380,618 ——% Transfer to Infrastructure —47,444 ————% Utility Purchase 9,559,183 9,842,738 11,233,922 11,255,702 21,780 0.2% UTILITIES UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 311 Capital Improvement Program 1,849,801 2,129,686 5,645,748 2,403,831 (3,241,918)(57.4)% Total Dollars by Expense Category 17,880,581 18,415,551 27,310,057 23,818,873 (3,491,184)(12.8)% Revenues Charges for Services 22,450 21,253 10,000 10,000 ——% Charges to Other Funds 30,107 30,890 31,693 33,238 1,545 4.9% Net Sales 18,026,146 20,129,208 21,106,047 21,843,118 737,071 3.5% Other Revenue 229,212 313,720 1,082,534 302,000 (780,534)(72.1)% Return on Investments 169,663 201,076 297,700 244,400 (53,300)(17.9)% Total Revenues 18,477,578 20,696,146 22,527,974 22,432,756 (95,217)(0.4)% Positions by Division CIP Wastewater Collection Fund 12.52 12.52 12.52 9.82 (2.70)(21.57)% Wastewater Collection Customer Service 2.22 2.22 2.22 2.22 ——% Wastewater Collection Engineering (Operating)1.40 1.40 1.40 1.40 ——% Wastewater Collection Operations and Maintenance 12.86 13.02 13.02 15.06 2.04 15.66% Total 29.00 29.16 29.16 28.50 (0.66)(2.26)% Staffing Job Classification FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Salary Account Specialist 0.23 0.23 0.23 0.23 —18,002 Administrative Associate II 0.40 0.40 0.40 0.40 —31,358 Assistant Director Utilities Engineering 0.15 0.15 0.15 0.15 —32,613 Assistant Director Utilities Operations 0.10 0.10 0.10 0.10 —22,718 Business Analyst 0.75 0.75 0.75 0.75 —116,501 Cement Finisher 0.76 0.76 0.76 0.76 —72,258 Contracts Administrator 0.05 0.05 0.05 0.05 —5,056 Budget Summary FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % UTILITIES 312 UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Coordinator Utilities Projects 1.10 1.10 1.10 1.10 —125,794 Customer Service Representative 1.45 1.45 1.45 1.45 —112,648 Customer Service Specialist-Lead 0.25 0.25 0.25 0.25 —22,838 Engineer 1.00 1.00 1.00 1.00 —140,504 Engineering Manager - Electric 0.15 0.15 0.15 0.15 —32,248 Engineering Manager - WGW 0.34 0.34 0.34 0.34 —68,556 Engineering Technician III 0.45 0.45 0.45 0.45 —44,348 Heavy Equipment Operator 0.23 0.23 0.23 —(0.23)— Heavy Equipment Operator - Install/Repair 3.15 3.15 3.15 3.15 —315,006 Industrial Waste Investigator 0.50 0.50 0.50 0.50 —54,704 Inspector, Field Services 1.68 1.68 1.68 0.96 (0.72)102,056 Maintenance Mechanic-Welding 0.20 0.20 0.20 0.20 —21,308 Manager Utilities Credit & Collection 0.15 0.15 0.15 0.15 —23,902 Manager Utilities Operations WGW 0.30 0.30 0.30 0.30 —55,561 Program Assistant I 0.34 0.34 0.34 0.34 —27,050 Project Engineer 2.00 2.00 2.00 2.00 —302,432 Restoration Lead 0.26 0.26 0.26 0.26 —29,344 Senior Engineer 1.30 1.30 1.30 0.91 (0.39)148,083 Senior Mechanic 0.33 0.33 0.33 0.33 —37,388 Utilities Engineer Estimator 0.47 0.47 0.47 0.56 0.09 68,831 Utilities Field Services Representative 1.25 1.25 1.25 1.25 —135,460 Utilities Install Repair-Lead-Welding Certified 0.24 0.24 0.24 0.58 0.34 68,439 Utilities Install Repair-Welding Certified 0.36 0.36 0.36 0.63 0.27 67,816 Utilities Install/Repair 4.25 4.25 4.25 4.00 (0.25)422,656 Utilities Install/Repair-Lead 2.00 2.00 2.00 2.00 —230,589 Utilities Locator 0.39 0.39 0.39 0.39 —40,730 Utilities Safety Officer 0.10 0.10 0.10 0.10 —13,233 Utilities Supervisor 1.72 1.72 1.72 1.72 —253,660 Staffing Job Classification FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Salary UTILITIES UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 313 WGW Heavy Equipment Operator ———0.23 0.23 24,241 Sub-total: Full-Time Equivalent Positions 28.40 28.40 28.40 27.74 (0.66)3,287,933 Temporary/Hourly 0.60 0.76 0.76 0.76 —50,339 Total Positions 29.00 29.16 29.16 28.50 (0.66)3,338,272 Staffing Job Classification FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Salary UTILITIES 314 UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Budget Reconciliation Positions Expenditures Revenues Net Wastewater Collection Fund Prior Year Budget 29.16 27,310,057 22,527,974 2,662,015 One-time Prior Year Budget Adjustments Elwell Court Improvements — (48,087) — (48,087) One-time Prior Year Budget Adjustments —(48,087)—(48,087) Adjustments to Costs of Ongoing Activities Salary and Benefits Adjustments — 61,038 — 61,038 Wastewater Collection Customer Sales Revenue (6% Rate Increase)— — 1,238,616 (1,238,616) Utilities Capital Staffing Alignment (0.66) (141,273) — (141,273) Rents & Leases Expenditure Alignment — (80,304) — (80,304) Facilities and Equipment Alignment — (9,828) — (9,828) Transfer to Water Fund (WS-02014 Water, Gas, Wastewater Utility GIS Data)—4,562 —4,562 Wastewater Treatment Expenses — 21,780 — 21,780 Return on Investments — — (53,300) 53,300 Capital Improvement Program — (3,245,816) (1,280,534) (1,965,282) General Fund Cost Allocation Plan — 136,368 — 136,368 Liability Insurance Allocated Charges — 8,843 — 8,843 Printing & Mailing Allocated Charges — (79) — (79) Public Works Services Allocated Charges — (27,721) — (27,721) Utilities Administration Allocated Charges — (175,357) — (175,357) Vehicle Replacement & Maintenance Allocated Charges —458 —458 Workers' Compensation Allocated Charges — 4,232 — 4,232 Adjustments to Costs of Ongoing Activities (0.66)(3,443,097)(95,218)(3,352,111) Total FY 2021 Proposed Budget 28.50 23,818,873 22,432,756 (738,184) UTILITIES UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 315 WATER FUND Description From 1895 until 1928, the City’s water supply came from deep wells. When the groundwater supply started to decline, water was purchased from the San Francisco Regional Water System to supplement the local water system. Since 1962, when Palo Alto’s wells were discontinued as the primary water system, 100 percent of the water has come from the Regional Water System: 85 percent derived from snow melt flowing into the Hetch Hetchy Reservoir and the balance from runoff stored in San Francisco Bay Area reservoirs. The Water Fund focuses on increasing infrastructure reliability and responsiveness to meet the City’s water supply needs during an emergency; maintaining high-quality and reliable sources of water; updating water efficiency goals; and implementing water efficiency programs and services. Additionally, the engineering division is implementing a seismic upgrade to the existing reservoirs, wells and receiving stations to increase supply reliability during catastrophic emergencies. UTILITIES 316 UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Budget Summary FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % Dollars by Division CIP Water Fund 8,504,410 6,039,680 16,973,334 9,424,670 (7,548,664)(44.5)% Water Administration 7,639,414 7,482,882 9,042,889 9,154,922 112,033 1.2% Water Customer Service 1,625,334 1,628,726 2,443,155 2,491,312 48,157 2.0% Water Engineering (Operating)354,598 384,551 641,946 796,149 154,202 24.0% Water Operations and Maintenance 5,732,995 5,999,504 8,371,072 8,916,073 545,000 6.5% Water Resource Management 22,880,271 22,175,768 23,371,160 22,576,191 (794,968)(3.4)% Total 46,737,022 43,711,111 60,843,556 53,359,316 (7,484,240)(12.3)% Dollars by Category Salary & Benefits Healthcare 821,267 822,482 1,021,133 967,427 (53,706)(5.3)% Other Benefits 119,660 125,716 164,802 198,776 33,974 20.6% Overtime 199,089 196,939 282,078 289,412 7,334 2.6% Pension 1,246,740 1,306,588 2,091,774 2,019,119 (72,656)(3.5)% Retiree Medical 300,042 427,827 440,662 444,796 4,134 0.9% Salary 4,959,173 5,266,306 5,372,634 5,814,292 441,658 8.2% Workers' Compensation 92,187 118,581 181,202 188,541 7,339 4.1% Total Salary & Benefits 7,738,159 8,264,439 9,554,284 9,922,363 368,078 3.9% Allocated Charges 3,702,043 3,404,874 5,220,481 5,030,475 (190,006)(3.6)% Contract Services 190,454 386,318 819,002 799,502 (19,500)(2.4)% Debt Service 1,697,010 1,632,435 3,222,606 3,222,606 ——% Facilities & Equipment ——16,711 1,150 (15,561)(93.1)% General Expense 511,796 480,190 658,077 670,077 12,000 1.8% Operating Transfers-Out 698,113 551,820 136,335 136,335 ——% Rents & Leases 1,906,700 1,983,270 3,144,502 3,396,161 251,660 8.0% Supplies & Material 451,691 390,121 610,982 618,482 7,500 1.2% Transfer to Infrastructure 5,700 93,339 ————% Utility Purchase 21,957,711 21,210,399 22,177,643 21,371,296 (806,347)(3.6)% Capital Improvement Program 7,877,646 5,313,905 15,282,934 8,190,870 (7,092,064)(46.4)% Total Dollars by Expense Category 46,737,022 43,711,111 60,843,556 53,359,316 (7,484,240)(12.3)% UTILITIES UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 317 Revenues Charges for Services 60,334 51,511 10,000 10,000 ——% Charges to Other Funds 99,288 135,114 82,690 91,143 8,453 10.2% From Other Agencies 500,773 488,052 576,632 576,632 ——% Net Sales 44,595,981 44,638,437 46,831,149 46,025,887 (805,263)(1.7)% Operating Transfers-In 512,436 539,278 548,136 557,260 9,124 1.7% Other Revenue 872,864 1,213,898 384,228 712,946 328,718 85.6% Return on Investments 869,689 994,735 1,153,200 989,200 (164,000)(14.2)% Total Revenues 47,511,365 48,061,024 49,586,035 48,963,068 (622,967)(1.3)% Positions by Division CIP Water Fund 8.03 8.03 8.03 5.34 (2.69)(33.49)% Water Customer Service 9.66 9.66 9.58 9.58 ——% Water Engineering (Operating)1.35 1.35 1.35 2.33 0.98 72.59% Water Operations and Maintenance 25.34 24.85 24.85 27.23 2.38 9.58% Water Resource Management 3.52 3.02 3.12 3.12 ——% Total 47.90 46.92 46.94 47.61 0.67 1.43% Staffing Job Classification FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Salary Account Specialist 0.23 0.23 0.23 0.23 —18,002 Administrative Associate II 0.65 0.65 0.50 0.50 —39,198 Assistant Director Utilities Customer Support Services 0.20 0.20 0.20 0.20 —40,589 Assistant Director Utilities Engineering 0.20 0.20 0.20 0.20 —43,484 Assistant Director Utilities Operations 0.15 0.15 0.15 0.15 —34,077 Assistant Director Utilities/Resource Management 0.25 0.25 0.25 0.25 —52,224 Business Analyst 1.53 1.20 1.20 1.20 —186,401 Cement Finisher 0.56 0.56 0.56 0.56 —53,243 Contracts Administrator 0.10 0.10 0.10 0.10 —10,113 Budget Summary FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % UTILITIES 318 UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Coordinator Utilities Projects 1.09 1.09 1.09 1.09 —124,651 Customer Service Representative 1.81 1.81 1.81 1.81 —140,615 Customer Service Specialist 0.66 0.66 0.66 0.66 —56,381 Customer Service Specialist-Lead 0.59 0.59 0.59 0.59 —53,899 Electric Project Engineer ——0.30 0.30 —47,736 Engineer 1.00 1.00 1.00 1.00 —140,504 Engineering Manager - Electric 0.15 0.15 0.15 0.15 —32,248 Engineering Manager - WGW 0.33 0.33 0.33 0.33 —66,540 Engineering Technician III 0.45 0.45 0.45 0.45 —44,348 Gas and Water Meter Measurement and Control Technician 0.80 0.80 0.80 0.60 (0.20)60,940 Gas and Water Meter Measurement and Control Technician - Lead 0.20 0.20 0.20 0.20 —21,736 Heavy Equipment Operator 1.95 1.95 1.95 —(1.95)— Heavy Equipment Operator - Install/Repair 0.20 0.20 0.20 0.20 —21,086 Inspector, Field Services 1.65 1.65 1.65 1.74 0.09 184,977 Maintenance Mechanic-Welding 0.80 0.80 0.80 0.80 —85,230 Manager Customer Service 0.34 0.34 0.34 0.34 —53,648 Manager Utilities Compliance 0.50 0.50 0.50 0.50 —98,436 Manager Utilities Credit & Collection 0.15 0.15 0.15 0.15 —23,902 Manager Utilities Operations WGW 0.50 0.50 0.50 0.50 —92,602 Manager Utilities Program Services 0.20 0.20 0.20 0.20 —30,859 Meter Reader 2.03 2.03 2.03 2.03 —148,206 Meter Reader-Lead 0.34 0.34 0.34 0.34 —26,562 Power Engineer 0.30 0.30 ———— Principal Business Analyst 0.33 0.33 0.33 0.33 —60,238 Program Assistant I 0.33 0.33 0.33 0.33 —26,255 Program Assistant II ——0.15 0.15 —12,823 Project Engineer 2.00 2.00 2.00 2.00 —302,432 Resource Planner 1.20 0.70 0.70 0.70 —100,479 Restoration Lead 0.31 0.31 0.31 0.31 —34,987 SCADA Technologist 0.80 0.80 0.80 0.89 0.09 135,730 Staffing Job Classification FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Salary UTILITIES UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 319 Senior Business Analyst 0.66 0.99 0.99 0.99 —157,158 Senior Engineer 1.00 1.00 1.00 1.74 0.74 285,652 Senior Mechanic 0.34 0.34 0.34 0.34 —38,521 Senior Resource Planner 1.68 1.68 1.78 1.78 —322,997 Senior Utilities Field Service Representative 0.49 0.49 0.49 0.49 —56,780 Senior Water Systems Operator 2.00 2.00 2.00 2.00 —224,640 Substation Electrician 0.40 0.40 0.40 0.25 (0.15)35,584 Utilities Engineer Estimator 0.43 0.43 0.43 0.48 0.05 60,037 Utilities Field Services Representative 1.50 1.50 1.50 1.50 —162,552 Utilities Install Repair-Lead-Welding Certified 0.46 0.46 0.46 0.65 0.19 76,699 Utilities Install Repair-Welding Certified 0.69 0.69 0.69 0.94 0.25 96,201 Utilities Install/Repair 1.90 1.90 1.90 1.44 (0.46)152,156 Utilities Install/Repair Assistant 0.35 0.35 0.35 0.35 —31,362 Utilities Install/Repair-Lead 1.02 1.02 1.02 1.07 0.05 114,631 Utilities Key Account Representative 0.35 0.35 0.35 0.35 —42,027 Utilities Locator 0.34 0.34 0.34 0.34 —35,509 Utilities Marketing Program Administrator 0.40 0.40 0.40 0.40 —45,627 Utilities Safety Officer 0.15 0.15 0.15 0.15 —19,849 Utilities Supervisor 2.91 2.91 2.91 2.91 —459,430 Water System Operator II 3.34 3.34 3.34 3.34 —330,687 WGW Heavy Equipment Operator ———1.97 1.97 207,625 Sub-total: Full-Time Equivalent Positions 45.29 44.79 44.89 45.56 0.67 5,661,105 Temporary/Hourly 2.61 2.13 2.05 2.05 —171,414 Total Positions 47.90 46.92 46.94 47.61 0.67 5,832,519 Staffing Job Classification FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Salary UTILITIES 320 UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Budget Reconciliation Positions Expenditures Revenues Net Water Fund Prior Year Budget 46.94 60,843,556 49,586,035 13,756,527 One-time Prior Year Budget Adjustments Elwell Court Improvements — (69,643) — (69,643) One-time Prior Year Budget Adjustments —(69,643)—(69,643) Adjustments to Costs of Ongoing Activities Salary and Benefits Adjustments — 170,291 — 170,291 Water Commodity Purchases Expenditure — (806,347) — (806,347) Revenue from Water System Customer Connections — — 328,718 (328,718) Transfer From Wastewater and Gas Fund (WS- 02014 Water, Gas, Wastewater Utility GIS Data)— — 9,124 (9,124) Radio Subscription Fees — (15,561) — (15,561) Return on Investment — — (164,000) 164,000 Utilities Capital Staffing Alignment 0.67 190,447 — 190,447 Rents & Leases Expenditure Alignment — 321,303 — 321,303 Water Customer Sales Revenue (0% Rate Increase)— — (796,809) 796,809 Capital Improvement Program — (7,092,064) — (7,092,064) General Fund Cost Allocation Plan — 78,472 — 78,472 Liability Insurance Allocated Charges — 12,704 — 12,704 Printing & Mailing Services Allocated Charges — 5,158 — 5,158 Public Works Services Allocated Charges — (4,671) — (4,671) Stormwater Management Allocated Charges — 9 — 9 Utilities Administration Allocated Charges — (267,368) — (267,368) Utilities Allocated Charges — (30,881) — (30,881) Vehicle Replacement & Maintenance Allocated Charges — 16,572 — 16,572 Workers' Compensation Allocated Charges — 7,339 — 7,339 Adjustments to Costs of Ongoing Activities 0.67 (7,414,597)(622,967)(6,791,630) Total FY 2021 Proposed Budget 47.61 53,359,316 48,963,068 6,895,254 UTILITIES UTILITIES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 321 NON-DEPARTMENTAL NON-DEPARTMENTAL • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 323 NON-DEPARTMENTALDescription The General Fund Non-Departmental budget includes revenue and expenditure appropriations that are not related to a specific department or function. These costs typically benefit the City as a whole and include such items as Cubberley lease payments to Palo Alto Unified School Dis- trict (PAUSD). The Non-Departmental budget may also include estimated provisions or place- holders for certain revenues and expenditures that have not yet materialized or distributed at the time the budget is developed or adopted. These items can be one-time or ongoing depend- ing on the nature and frequency of the item. In Fiscal Year 2021, various one-time items that appeared in the Fiscal Year 2020 Budget, including one-time costs for contractual services such as a sea level rise and efforts related to airplane noise have been removed, as have reserves that were established in FY 2020. This proposed FY 2021 budget includes various adjustments in the Non-Departmental section, such as aligning costs for the City’s agreement with PAUSD, parking permits for City employees, and the operating subsidy necessary to ensure the continued operation of the Residential Park- ing Permit Program Fund. The proposed FY 2021 budget also includes one-time funding for costs associated with the November 2020 Election. The election is administered by the County Clerk and the City is charged a proportional share of expenses. This budget also recommends an ongoing realign- ment of funding that was in the City Attorney contingency to the City Attorney’s departmental budget to streamline operations. NON-DEPARTMENTAL 324 NON-DEPARTMENTAL • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Budget Summary FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % Dollars by Category Cubberly - Lease Payments to PAUSD 5,737,855 5,830,103 6,284,437 6,194,522 (89,915)(1.4)% Contingent Accounts City Manager ——200,000 200,000 ——% City Council ——125,000 125,000 ——% City Attorney ——100,000 —(100,000)(100.0)% Human Resources ——50,000 50,000 ——% Human Services Resource Allocation Process (HSRAP)10,000 —50,000 50,000 ——% Innovations & Special Events ——50,000 50,000 ——% Sustainability ——100,000 —(100,000)(100.0)% Budget Uncertainty Reserve ——1,625,899 —(1,625,899)(100.0)% Other Contract Services 2,200 5,693,384 170,000 245,000 75,000 44.1% Debt Service 432,271 431,154 ————% General Expense 42,026 44,931 91,326 93,700 2,374 2.6% Operating Transfers-Out 4,674,446 8,298,952 4,990,118 4,518,734 (471,384)(9.4)% Rents & Leases 177,786 177,127 177,127 203,000 25,873 14.6% Transfer to Infrastructure 24,800,953 27,513,960 28,961,724 32,572,248 3,610,524 12.5% Total Dollars by Expense 35,877,536 47,989,612 42,975,631 44,302,205 1,326,574 3.1% NON-DEPARTMENTAL NON-DEPARTMENTAL • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 325 Budget Reconciliation Positions Expenditures Revenues Net General Fund Prior Year Budget —42,975,631 —42,975,631 One-Time Prior Year Budget Adjustments Reserve: Budget Operations Reserve — (1,125,899) — (1,125,899) Residential Parking Permit Program Operating Deficit Transfer to RPP Fund — (683,810) — (683,810) Reserve: Recruitment and Retention Initiatives — (500,000) — (500,000) Airplane Noise Funding — (100,000) — (100,000) Sea Level Rise Study Funding — (50,000) — (50,000) Transfer to Business Improvement District Funding — (17,000) — (17,000) One-Time Prior Year Budget Adjustments —(2,476,709)—(2,476,709) Adjustments to Costs of Ongoing Activities Transfer to Infrastructure — 3,610,524 — 3,610,524 Residential Parking Permit Program Operating Deficit Transfer to RPP Fund — 185,000 — 185,000 Traffic and Streetlight Electricity Costs Adjustment — 62,472 — 62,472 CPI Adjustment for El Camino Park Lease — 25,873 — 25,873 Transfer to University Avenue Parking Fund — 16,470 — 16,470 Property Tax Administration — 2,374 — 2,374 Transfer to Public Art Fund — 2 — 2 Transfer to Debt Service Fund — (40) — (40) Transfer to Technology Fund (Technology Surcharge)— (34,477) — (34,477) Cubberley Lease Payments to PAUSD — (89,915) — (89,915) Sustainability Contingency (FY 2019 Reappropriation)— (100,000) — (100,000) Adjustments to Costs of Ongoing Activities —3,678,283 —3,778,283 Total FY 2020 Base Budget —44,177,205 —44,277,205 Budget Adjustments 1 November 2020 Elections — 225,000 — 225,000 2 Shift City Attorney's Contingency Funds to City Attorney's Budget — (100,000) — (100,000) Total Budget Adjustments —125,000 —125,000 Total FY 2020 Adopted Budget —44,302,205 —44,402,205 NON-DEPARTMENTAL 326 NON-DEPARTMENTAL • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Budget Adjustments Budget Adjustments Positions Expenditures Revenues Net General Fund 1 November 2020 Elections 0.00 225,000 0 225,000 This one-time action provides funding for the administration of the General FY 2020 Election. The City is responsible for paying the County for costs associated with the election. (Ongoing Costs: $0) Performance Results This funding supports the City's efforts to conduct elections in an open and transparent manner, improving the quality of the election. 2 Shift City Attorney's Contingency Funds to City Attorney's Budget 0.00 (100,000)0 (100,000) This ongoing action shifts the City Attorney's contingency funds from non-departmental into the City Attorney's departmental budget. This funding alignment will streamline operations and decrease administrative work associated with the movement of authorized funding to the City Attorney's departmental budget throughout the year. This change does not result in any increased cost; it is a technical adjustment. A corresponding action appears in the City Attorney's department section. (Ongoing Savings: $100,000) Performance Results This action ensures the continued quality of work products from the City Attorney's Office and decreases the cycle time of those products. CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 327 EMPLOYEE INFORMATION Employee Information EMPLOYEE INFORMATION EMPLOYEE INFORMATION • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 329 EMPLOYEE INFORMATIONGeneral Benefits Fund Overview The General Benefits Fund includes funding for employee pension benefits, health benefits (medical, dental, and vision) for current City employees and several other benefits, such as life insurance, the employee assistance program, and the employee commute program. Funding for retired employees’ healthcare costs is reflected in the Retiree Health Benefits Fund, discussed elsewhere in this document. There is an overall net $260,000, or 0.3 percent, increase in costs in the General Benefits Fund over FY 2020 Adopted levels of $76.4 million to $76.6 million. This reflects increases for pen- sion, healthcare, and other benefits. PENSION COSTS The City of Palo Alto provides a defined pension benefit to its employees through the State of California Pension Retirement System (CalPERS), which manages and administers the program. The CalPERS program maintains two trust accounts: 1) a plan for safety employees (sworn fire and police personnel), and 2) a plan for miscellaneous employees (all other non-safety person- nel employed by the City such as field personnel, administrative support, and managers). With the passage of the California Public Employees’ Pension Reform Act (PEPRA), the City has three retirement benefit tiers for Miscellaneous and Safety Plans. As of 2020, approximately 53 percent of the City’s employees are either in Tier 2 or Tier 3. Annually, CalPERS provides actuarial reports detailing the latest status of the City of Palo Alto Pension trust plans for employees and retirees. These actuarial reports are used to calculate the Actuarial Determined Contribution (ADC) which reflects the blended or combined cost of both the Normal Cost (NC) and Unfunded Accrued Liability (UAL) used in the annual billing of employer contributions to the trust for pension obligations. Staff transmits these valuation reports to the Finance Committee for review and discussion, most recently on September 24th, 2019, the June 30, 2018 CalPERS Annual Valuation Reports (CMR 10641). The total ADC for FY 2021 is $50.1 million ($33.4 million for the Miscellaneous Plan and $16.7 million for the Safety Plan). This reflects the blended cost of both the NC (percentage of payroll) and UAL (flat-rate) as outlined in more detail below: Miscellaneous plan: There is a blended cost increase of 3.0 percentage points, from an employer contribution rate of 35.6 percent to 38.4 percent (7.9 percent growth). Safety plan: Blended cost increase of 3.8 percentage points, from an employer contribution rate of 59.4 percent to 65.3 percent (9.4 percent growth). EMPLOYEE INFORMATION 330 EMPLOYEE INFORMATION • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Normal Cost (NC): The NC reflects the employer contribution for the plan retirement benefits provided to current employees assessed as a percentage of payroll. The CalPERS calculated normal cost is increasing by 0.8 percentage points, from 10.7 percent to 11.5 percent, for Miscel- laneous and by 1.4 percentage points, 20.2 percent to 21.6 percent, for Safety. Unfunded Accrued Liability (UAL): The UAL represents the employer amortization of unfunded accrued liability and is assessed as a flat rate. The City’s current net UAL is $455.6 million ($284.9 million for the Miscellaneous Plan and $170.7 million for the Safety Plan), a $40.7 million or 9.8 percent increase over the prior year. The annual UAL payment calculated by CalPERS and assumed in the development of the FY 2021 budget is $33.6 million ($22.7 million for the Miscellaneous Plan and $10.9 million for the Safety Plan). The budget assumes pre-payment of the UAL portion of the annual pension cost, which confers $1,150,000 in savings across the organization ($700,000 realized in the General Fund). These savings are calculated by CalPERS. The City’s current funded status is 65.8 percent for the Miscellaneous Plan and 62.2 percent for the Safety Plan. Timeline of the City’s Pension Discussions: The City has been diligent in its discussion and planning efforts to address the costs both known and forecasted for pension benefits. Below is a brief timeline of notable discussions or actions CalPERS and/or the City has taken in recent years. In December 2016, the CalPERS board voted to lower actuarial assumptions for the discount rate (assumed rate of return on investments) from 7.50 percent to 7.00 percent using a three-year phase-in beginning in FY 2019 and ending in FY 2021. The annual valuation report (using data as of June 30, 2018) was used for FY 2021 budget development and assumes a discount rate of 7.00 percent. During FY 2017 and FY 2018, the City staff and Council acted to establish an irrevocable IRS Section 115 Pension Trust Fund and began contributing funds above the ADC as additional funding was available. By the close of FY 2018, $5.4 million had been contributed to this trust citywide. As part of the FY 2019 Adopted Budget, the City Council approved a reduction of $4.0 million in budgeted expenses in the General Fund to proactively address pension obligations by assuming the normal cost at a more conservative discount rate and contributing proceeds above the CalPERS ADC to the pension trust fund. Staff developed two plans to address this referral: 1) “immediate action” and 2) “strategic action”. The immediate action was completed in December 2018 with the approval of $4.0 million in one-time and structural reductions in the FY 2019 budget. During FY 2019, the City Council directed staff to develop the Long Range Financial Forecast to include a base case that reflected a more conservative discount rate and adopted “Fiscal Sustainability” as one of four priorities in 2019, including initiatives to develop a policy that addresses unfunded liability. In April 2019, staff brought forward a Fiscal Sustainability Workplan that included strategic actions to address pension funding for review, feedback, and discussion. Included was a recommendation to use a 6.2 percent discount rate for the normal cost of pensions in EMPLOYEE INFORMATION EMPLOYEE INFORMATION • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 331 financial planning and a referral for the Finance Committee to look at ways to address the unfunded pension liability portion of the budget. Beginning with the FY 2020 Adopted Budget, staff implemented a practice to include a normal cost pension expense of 6.2 percent as part of financial planning. This resulted in budgeted retirement costs above required CalPERS levels of $6.2 million ($3.8 million General Fund). An additional one-time contribution of $2.3 million was made in FY 2020 to align other funds with the General Fund’s contributions to date. In October 2019, Staff returned to the Finance Committee to review and discuss the options for a Pension Funding Policy and elements to consider in the establishment of a Pension Funding Policy. Four scenarios were presented to the Committee including different timelines, mechanisms, and options available to reach a target funded status of 100 percent. This FY 2021 Proposed Budget continues the practice to include a normal cost pension expense of 6.2% as part of financial planning for all funds. This results in budgeted retirement costs above required CalPERS levels of $5.5 million ($3.4 million General Fund) in FY 2021. The contributions levels from FY 2020 to FY 2021 decreased from $6.2 million to $5.5 million due to the change in CalPERS discount rate from 7.25 percent to 7.00 percent; narrowing the gap to meet the 6.2 percent target. In total, planned contributions (principal) of $32.8 million to the pension Trust Fund will have been made since inception in FY 2017 through FY 2021 ($21.4 million, or 65 percent, of the total is from the General Fund), an average annual contribution of $6.6 million. As discussed above, one-time surpluses resulting from excess revenues or expense savings at year-end continue to be brought forward for City Council consideration as potential contribu- tions to the Trust Fund. During FY 2020, a total of $5.2 million ($3.5 million General Fund) from FY 2019 savings was made to the trust. In the prior year, a total of $2.0 million ($1.3 million Gen- eral Fund) was made from FY 2018 savings. The City continues to strive to contain costs with measures such as cost-sharing with employ- ees. New labor agreements with the Safety Units that extend through FY 2021 include employee contributions up to 4.0 percent. It is anticipated that additional cost-share agreements with the miscellaneous units, who currently pick-up 1.0 percent of the employer share, will also be explored through current and future negotiations. Staff anticipates returning to the City Council in April 2020 to continue the discussion of a Pen- sion Funding Policy, as a part of the 2019 Fiscal Sustainability Workplan. These options are intended to identify a path forward for the City to address its pension obligations on an ongoing basis in order to ensure prudent and proactive financial planning. HEALTHCARE COSTS The FY 2021 budget for healthcare is based on the health plan choices employees made for Cal- endar Year 2020. Increases for the various bargaining units’ healthcare costs are included in the memoranda of agreements and these costs are modeled appropriately throughout the budget per these terms. All bargaining units are now on a flat rate medical plan, with UMPAPA convert- ing from a 90/10 contribution structure to a flat rate plan in Fall 2018. The flat rate medical plan helps the City’s efforts to contain benefit costs as it provides a maximum exposure level to ris- EMPLOYEE INFORMATION 332 EMPLOYEE INFORMATION • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET ing health costs. For calendar year 2021, the budget models a four percent annual increase in flat rate medical costs. Consistent with the FY 2020 Adopted Budget and Government Accounting Standards Board pronouncements that require government agencies to recognize the true cost of medical health care by active employees and retirees, an implied subsidy for retiree healthcare was calculated. Health care premiums are contracted at a blended rate, they are the same regardless of age or active versus retired status, with the exception of Medicare premiums. Despite the contractually blended rate, the implied subsidy is calculated in order to recognize the higher cost of medical services for retirees, which is reduced from the active employees’ health care costs and identi- fied as a retiree medical cost. In FY 2021, the City’s full cost of active employee healthcare is budgeted in the various City departments and collected in the General Benefits Fund to be paid to CalPERS. In order to account for the implied subsidy, health care costs for active employees have been reduced in the General Benefits Fund by $2.4 million, and a corresponding transfer from the General Bene- fits Fund to the Retiree Health Benefits Fund has been continued to reflect the full payment of the City’s Actuarial Determined Contribution (ADC) for Retiree Healthcare in the Retiree Health Benefits Fund. Additional discussion of Retiree Healthcare costs and the ADC are located in the Retiree Health Benefits Fund section of this document. EMPLOYEE INFORMATION EMPLOYEE INFORMATION • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 333 Budget Summary FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % Dollars by Category Salary & Benefits Healthcare 18,505,699 17,663,571 19,662,524 21,049,492 1,386,968 7.1% Other Benefits 611,652 588,334 1,118,496 1,118,483 (13)(0.0)% Pension 32,031,449 35,854,780 53,141,658 51,831,417 (1,310,241)(2.5)% Salary 570,924 274,627 23,882 22,963 (919)(3.8)% Total Salary & Benefits 51,719,725 54,381,312 73,946,560 74,022,355 75,795 0.1% Contract Services 214,103 148,275 220,795 220,795 ——% General Expense 14,110 115,507 ————% Operating Transfers-Out 2,444,000 2,197,000 2,197,000 2,384,000 187,000 8.5% Supplies & Material —3,540 ————% Total Dollars by Expense Category 54,391,938 56,845,634 76,364,355 76,627,150 262,795 0.3% Revenues Charges for Services 535 —————% Operating Transfers-In 1,427,044 5,991,729 ————% Other Revenue 56,428,791 57,060,208 75,701,183 76,901,891 1,200,708 1.6% Return on Investments 197,653 152,730 433,000 362,600 (70,400)(16.3)% Total Revenues 58,054,023 63,204,667 76,134,183 77,264,491 1,130,308 1.5% EMPLOYEE INFORMATION 334 EMPLOYEE INFORMATION • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Budget Reconciliation Positions Expenditures Revenues Net Prior Year Budget 0.48 76,364,355 76,134,183 230,172 One-Time Prior Year Budget Adjustments None One-Time Prior Year Budget Adjustments 0.48 76,364,355 76,134,183 230,172 Adjustments to Costs of Ongoing Activities Salary and Benefits — (931) — (931) PARs Contributions and Expenses (Normal Cost Calculated at 6.2 Percent Discount Rate)— (3,005,290) (3,005,290) — Citywide Pension —4,079,049 — 4,079,049 Citywide Vision Insurance — 75,764 — 75,764 Citywide Healthcare Insurance — (842,549) — (842,549) Return on Investments — — (70,400) 70,400 Citywide Dental Insurance — (43,248) — (43,248) Department Charges for General Benefits — — 4,205,998 (4,205,998) Adjustments to Costs of Ongoing Activities —262,795 1,130,308 (867,513) Total FY 2021 Proposed Budget 0.48 76,627,150 77,264,491 (637,341) RETIREE HEALTH BENEFIT FUND OVERVIEW RETIREE HEALTH BENEFIT FUND OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 335 RETIREE HEALTH BENEFIT FUND OVERVIEWRetiree Health Benefit Fund Overview In addition to providing pension benefits, the City participates in the California Public Employ- ees’ Medical and Hospital Care Act (PEMHCA) program to provide certain health care benefits for retired employees. This fund reflects costs for this program as well as payments for the unfunded liability for future medical benefits that will be provided to current and future retirees. The City uses actuarial studies, completed on a biennial basis by Bartel Associates, to inform the development of annual operating budgets. The most recent report was completed on June 30, 2017 to inform both the FY 2019 and FY 2020 Operating Budgets. At the timing of the develop- ment of the FY 2021 Proposed Budget, the City had not yet received a finalized report for use in FY 2021 and FY 2022. Therefore, the FY 2021 Proposed Budget contains the long-range infor- mation provided in the most recent study, as of June 30, 2017. The current actuarial study is anticipated to be completed before the end of the fiscal year, which will provide an update on the fund’s status as of June 30, 2019. Any necessary budget adjustments will be brought forth as an amendment to the Adopted Budget. The City’s ADC for FY 2021 is $16.8 million, or a 2.3 percent increase from FY 2020 ($16.4 mil- lion). This increase aligns with actuarial expectations in the most recent report. Though the ADC assumed for the FY 2021 budget is $16.8 million, the charges to the City’s funds are budgeted at $14.4 million. The difference of $2.4 million represents the City’s implied subsidy for retiree healthcare. This is the same subsidy briefly mentioned in the General Benefits Fund Overview section preceding this. There is a requirement, first imposed in FY 2017, that government agen- cies must recognize the true cost of medical health care of active employees and retirees. The health care premiums are the same regardless of age or active status with the exception of Medicare premiums. The new requirement is intended to recognize that as people age, their medical costs increase; therefore, an actuarial calculation has been performed to recognize the higher cost of medical services for retirees, which is reduced from the active employees’ health care costs. This difference is known as the ‘implied subsidy’. In FY 2021, the full cost of active employee healthcare is budgeted in the various City departments and collected in the General Benefits Fund to be paid to CalPERS. In order to account for the implied subsidy, healthcare costs for active employees have been reduced in the General Benefits Fund by $2.4 million, and a transfer from the General Benefits Fund of $2.4 million to the Retiree Health Benefits Fund has been established. This transfer reflects the full payment of the City’s annual ADC for Retiree Healthcare in the Retiree Health Benefits Fund. RETIREE HEALTH BENEFIT FUND OVERVIEW 336 RETIREE HEALTH BENEFIT FUND OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Budget Summary FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change $ FY 2021 Change % Dollars by Category Salary & Benefits Other Benefits 42,599 24,221 61,560 61,560 ——% Retiree Medical 16,867,362 15,997,000 16,410,999 16,787,000 376,001 2.3% Total Salary & Benefits 16,909,962 16,021,221 16,472,559 16,848,560 376,001 2.3% Total Dollars by Expense Category 16,909,962 16,021,221 16,472,559 16,848,560 376,001 2.3% Revenues Operating Transfers-In 2,444,000 2,197,000 2,197,000 2,384,000 187,000 8.5% Other Revenue 14,526,970 13,800,000 14,213,999 14,403,000 189,001 1.3% Return on Investments 69,691 93,008 46,900 63,800 16,900 36.0% Total Revenues 17,040,661 16,090,008 16,457,899 16,850,800 392,901 2.4% RETIREE HEALTH BENEFIT FUND OVERVIEW RETIREE HEALTH BENEFIT FUND OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 337 Budget Reconciliation Positions Expenditures Revenues Net Prior Year Budget —16,472,559 16,457,899 14,660 One-Time Prior Year Budget Adjustments None One-Time Prior Year Budget Adjustments —16,472,559 16,457,899 14,660 Adjustments to Costs of Ongoing Activities Citywide Retiree Health Benefits Adjustment — 376,001 376,001 — Return on Investments — — 16,900 (16,900) Adjustments to Costs of Ongoing Activities —376,001 392,901 (16,900) Total FY 2021 Proposed Budget —16,848,560 16,850,800 (2,240) TABLE OF ORGANIZATION TABLE OF ORGANIZATION • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 339 TABLE OF ORGANIZATIONTable of Organization FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Change % General Fund Administrative Services Account Specialist 4.88 4.63 4.63 4.63 0.00 0.00% Account Specialist-Lead 3.05 3.45 3.45 3.45 0.00 0.00% Accountant 3.00 3.00 3.00 3.00 0.00 0.00% Administrative Assistant 1.00 1.00 1.00 1.00 0.00 0.00% Administrative Associate II 1.00 1.00 1.00 1.00 0.00 0.00% Administrative Associate III 1.00 1.00 1.00 1.00 0.00 0.00% Assistant Director Administrative Services 1.65 1.65 1.65 1.65 0.00 0.00% Buyer 1.00 1.00 1.00 1.00 0.00 0.00% Chief Procurement Officer 1.00 1.00 1.00 1.00 0.00 0.00% Contracts Administrator 2.70 2.70 2.70 2.70 0.00 0.00% Director Administrative Services/CFO 0.80 0.80 0.80 0.80 0.00 0.00% Director Office of Management and Budget 1.00 1.00 1.00 1.00 0.00 0.00% Management Analyst 0.00 1.00 2.00 2.00 0.00 0.00% Manager Accounting 1.00 0.00 0.00 0.00 0.00 0.00% Manager Budget 1.00 2.00 2.00 2.00 0.00 0.00% Manager Real Property 1.00 1.00 1.00 1.00 0.00 0.00% Manager Revenue Collections 0.62 0.62 0.62 0.62 0.00 0.00% Manager Treasury, Debt & Investments 0.60 0.60 0.60 0.60 0.00 0.00% Manager, Finance 0.00 1.00 1.00 1.00 0.00 0.00% Payroll Analyst 2.00 2.00 2.00 2.00 0.00 0.00% Performance Auditor II 0.00 0.00 0.00 1.00 1.00 0.00% Principal Management Analyst 0.00 0.00 0.00 0.00 0.00 0.00% Senior Accountant 3.00 3.00 3.00 3.00 0.00 0.00% Senior Buyer 1.00 1.00 1.00 1.00 0.00 0.00% Senior Management Analyst 4.90 2.30 2.30 2.30 0.00 0.00% Storekeeper 1.00 1.00 1.00 1.00 0.00 0.00% Storekeeper-Lead 0.20 0.20 0.20 0.20 0.00 0.00% Warehouse Supervisor 0.20 0.20 0.20 0.20 0.00 0.00% Total Administrative Services 38.60 38.15 39.15 40.15 1.00 2.55% City Attorney Assistant City Attorney 3.00 3.00 3.00 3.00 0.00 0.00% Chief Assistant City Attorney 1.00 1.00 1.00 1.00 0.00 0.00% City Attorney 1.00 1.00 1.00 1.00 0.00 0.00% Claims Investigator 1.00 1.00 1.00 1.00 0.00 0.00% Deputy City Attorney 1.00 1.00 1.00 1.00 0.00 0.00% Legal Fellow 1.00 1.00 1.00 1.00 0.00 0.00% TABLE OF ORGANIZATION 340 TABLE OF ORGANIZATION • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Principal Attorney 0.00 0.00 0.00 0.00 0.00 0.00% Secretary to City Attorney 1.00 1.00 1.00 1.00 0.00 0.00% Senior Assistant City Attorney 0.00 0.00 0.00 0.00 0.00 0.00% Senior Deputy City Attorney 0.00 0.00 0.00 0.00 0.00 0.00% Senior Legal Secretary 1.00 0.00 0.00 0.00 0.00 0.00% Senior Management Analyst 1.00 1.00 1.00 1.00 0.00 0.00% Total City Attorney 11.00 10.00 10.00 10.00 0.00 0.00% City Auditor Administrative Assistant 0.00 0.00 0.00 0.00 0.00 0.00% City Auditor 1.00 1.00 1.00 1.00 0.00 0.00% Performance Auditor I 1.00 1.00 0.00 0.00 0.00 0.00% Performance Auditor II 1.00 1.00 2.00 0.00 -2.00 (100.00)% Senior Performance Auditor 2.00 1.00 1.00 2.00 1.00 100.00% Total City Auditor 5.00 4.00 4.00 3.00 -1.00 (25.00)% City Clerk Administrative Associate III 2.00 2.00 2.00 2.00 0.00 0.00% Assistant City Clerk 1.00 1.00 1.00 1.00 0.00 0.00% City Clerk 1.00 1.00 1.00 1.00 0.00 0.00% Deputy City Clerk 1.00 1.00 1.00 1.00 0.00 0.00% Hearing Officer 0.75 0.00 0.00 0.00 0.00 0.00% Total City Clerk 5.75 5.00 5.00 5.00 0.00 0.00% City Manager Administrative Assistant 1.00 1.00 2.00 2.00 0.00 0.00% Administrative Associate III 1.00 1.00 0.00 0.00 0.00 0.00% Assistant City Manager 0.00 0.00 1.00 1.00 0.00 0.00% Assistant City Manager/Utilities General Manager 0.25 0.25 0.00 0.00 0.00 0.00% Assistant to the City Manager 2.00 2.00 2.00 2.00 0.00 0.00% Chief Communications Officer 1.00 1.00 1.00 1.00 0.00 0.00% Chief Sustainability Officer 1.00 1.00 0.00 0.00 0.00 0.00% City Manager 1.00 1.00 1.00 1.00 0.00 0.00% Deputy City Manager 2.00 2.00 1.00 1.00 0.00 0.00% Executive Assistant to the City Manager 1.00 1.00 1.00 1.00 0.00 0.00% Management Analyst 0.00 0.75 0.75 0.00 -0.75 (100.00)% Manager Communications 1.00 1.00 1.00 1.00 0.00 0.00% Manager Economic Development 0.00 0.00 0.00 0.00 0.00 0.00% Total City Manager 11.25 12.00 10.75 10.00 -0.75 (6.98)% Table of Organization FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Change % TABLE OF ORGANIZATION TABLE OF ORGANIZATION • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 341 Community Services Administrative Assistant 1.00 1.00 1.00 1.00 0.00 0.00% Administrative Associate III 1.00 1.00 1.00 1.00 0.00 0.00% Assistant Director Community Services 2.00 2.00 2.00 2.00 0.00 0.00% Building Serviceperson 2.00 1.25 1.25 1.00 -0.25 (20.00)% Building Serviceperson-Lead 2.00 0.60 0.60 0.60 0.00 0.00% Coordinator Recreation Programs 4.00 3.00 4.00 4.00 0.00 0.00% Director Community Services 1.00 1.00 1.00 1.00 0.00 0.00% Division Manager Open Space, Parks and Golf 1.00 1.00 1.00 0.00 -1.00 (100.00)% Heavy Equipment Operator 0.07 0.07 0.07 0.07 0.00 0.00% Inspector, Field Services 2.00 2.00 2.00 2.00 0.00 0.00% Junior Museum & Zoo Educator 3.60 3.60 3.60 3.60 0.00 0.00% Management Analyst 1.00 1.00 1.00 1.00 0.00 0.00% Management Assistant 1.00 1.00 1.00 1.00 0.00 0.00% Manager Community Services 5.00 5.00 5.00 5.00 0.00 0.00% Manager Community Services Senior Program 4.00 4.00 4.00 4.00 0.00 0.00% Manager Human Services 1.00 1.00 1.00 1.00 0.00 0.00% Park Maintenance Person 6.00 6.00 6.00 6.00 0.00 0.00% Park Maintenance-Lead 1.00 1.00 1.00 1.00 0.00 0.00% Park Ranger 5.00 5.00 5.00 5.00 0.00 0.00% Parks/Golf Crew-Lead 2.00 2.00 2.00 2.00 0.00 0.00% Producer Arts/Science Program 11.00 11.00 11.00 11.00 0.00 0.00% Producer Arts/Science Programs 0.00 0.00 0.00 1.00 1.00 0.00% Program Assistant I 8.00 8.00 8.00 6.00 -2.00 (25.00)% Program Assistant II 4.00 4.00 3.00 5.00 2.00 66.67% Project Manager 0.10 0.10 0.10 0.10 0.00 0.00% Senior Management Analyst 1.00 1.00 1.00 1.00 0.00 0.00% Sprinkler System Representative 4.00 4.00 4.00 4.00 0.00 0.00% Superintendent Community Services 2.00 2.00 2.00 2.00 0.00 0.00% Superintendent Recreation 1.00 1.00 1.00 1.00 0.00 0.00% Theater Specialist 2.00 2.00 2.00 2.00 0.00 0.00% Volunteer Coordinator 0.00 0.00 0.00 0.00 0.00 0.00% Total Community Services 78.77 75.62 75.62 75.37 -0.25 (0.33)% Fire 40-Hour Training Battalion Chief 1.00 1.00 1.00 1.00 0.00 0.00% 40-Hour Training Captain 1.00 1.00 1.00 1.00 0.00 0.00% Table of Organization FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Change % TABLE OF ORGANIZATION 342 TABLE OF ORGANIZATION • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Administrative Assistant 1.00 1.00 1.00 1.00 0.00 0.00% Administrative Associate II 2.00 2.20 2.20 2.20 0.00 0.00% Battalion Chief 3.00 3.00 3.00 3.00 0.00 0.00% Business Analyst 0.80 0.80 0.80 0.80 0.00 0.00% Deputy Chief/Fire Marshal 0.05 0.05 0.05 0.05 0.00 0.00% Deputy Director Technical Services Division 0.20 0.20 0.20 0.20 0.00 0.00% Deputy Fire Chief 2.00 2.00 2.00 2.00 0.00 0.00% Emergency Medical Service Director 1.00 1.00 1.00 1.00 0.00 0.00% Emergency Medical Services Data Specialist 1.00 1.00 1.00 1.00 0.00 0.00% Fire Apparatus Operator 30.00 26.00 26.00 26.00 0.00 0.00% Fire Captain 21.00 21.00 21.00 21.00 0.00 0.00% Fire Chief 1.00 1.00 1.00 1.00 0.00 0.00% Fire Fighter 41.00 34.00 34.00 34.00 0.00 0.00% Fire Inspector 0.80 0.80 0.80 0.80 0.00 0.00% Geographic Information System Specialist 0.50 0.50 0.50 0.50 0.00 0.00% Hazardous Materials Inspector 0.30 0.30 0.30 0.30 0.00 0.00% Police Chief 0.00 0.00 0.00 0.00 0.00 0.00% Senior Management Analyst 1.00 1.00 1.00 1.00 0.00 0.00% Senior Technologist 0.00 0.00 0.00 0.00 0.00 0.00% Total Fire 108.65 97.85 97.85 97.85 0.00 0.00% Human Resources Administrative Assistant 0.00 0.00 0.00 0.00 0.00 0.00% Assistant Director Human Resources 1.00 1.00 1.00 1.00 0.00 0.00% Director Human Resources/CPO 1.00 1.00 1.00 1.00 0.00 0.00% Human Resources Representative 3.00 3.00 3.00 3.00 0.00 0.00% Human Resources Technician 4.00 4.00 4.00 4.00 0.00 0.00% Manager Employee Benefits 1.00 1.00 1.00 1.00 0.00 0.00% Manager Employee Relations 1.00 1.00 1.00 1.00 0.00 0.00% Senior Human Resources Administrator 3.00 3.00 3.00 3.00 0.00 0.00% Senior Management Analyst 2.00 2.00 2.00 2.00 0.00 0.00% Total Human Resources 16.00 16.00 16.00 16.00 0.00 0.00% Library Administrative Assistant 0.00 0.00 0.00 0.00 0.00 0.00% Administrative Associate III 1.00 1.00 1.00 1.00 0.00 0.00% Assistant Director Library Services 1.00 1.00 1.00 1.00 0.00 0.00% Table of Organization FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Change % TABLE OF ORGANIZATION TABLE OF ORGANIZATION • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 343 Business Analyst 1.00 1.00 1.00 1.00 0.00 0.00% Coordinator Library Programs 1.00 1.00 1.00 1.00 0.00 0.00% Director Libraries 1.00 1.00 1.00 1.00 0.00 0.00% Division Head Library Services 1.00 1.00 1.00 1.00 0.00 0.00% Librarian 7.00 7.00 6.00 6.00 0.00 0.00% Library Assistant 0.00 0.00 0.00 0.00 0.00 0.00% Library Associate 7.00 7.00 7.00 7.00 0.00 0.00% Library Specialist 12.50 11.50 11.50 11.50 0.00 0.00% Management Analyst 1.00 1.00 1.00 1.00 0.00 0.00% Management Assistant 0.00 0.00 0.00 0.00 0.00 0.00% Manager Library Services 4.00 4.00 3.00 3.00 0.00 0.00% Senior Librarian 9.00 9.00 8.00 8.00 0.00 0.00% Supervising Librarian 2.00 2.00 4.00 4.00 0.00 0.00% Total Library 48.50 47.50 46.50 46.50 0.00 0.00% Office of Emergency Services Director Office of Emergency Services 1.00 1.00 1.00 1.00 0.00 0.00% Office of Emergency Services Coordinator 1.00 1.00 1.00 1.00 0.00 0.00% Program Assistant 1.00 0.00 0.00 0.00 0.00 0.00% Program Assistant II 0.00 1.00 1.00 1.00 0.00 0.00% Total Office of Emergency Services 3.00 3.00 3.00 3.00 0.00 0.00% Office of Transportationa Administrative Assistant 0.00 0.00 0.50 0.50 0.00 0.00% Administrative Associate III 0.70 0.30 0.00 0.00 0.00 0.00% Associate Engineer 0.73 0.65 0.30 0.30 0.00 0.00% Associate Planner 0.00 0.24 0.30 0.45 0.15 50.00% Chief Transportation Official 0.37 0.55 0.70 0.70 0.00 0.00% Coordinator Transportation Systems Management 0.88 0.74 1.25 1.25 0.00 0.00% Management Analyst 0.00 0.02 0.50 0.50 0.00 0.00% Parking Operations - Lead 0.00 0.10 0.00 0.00 0.00 0.00% Program Assistant II 0.60 0.00 0.00 0.00 0.00 0.00% Project Engineer 0.50 0.50 0.45 0.45 0.00 0.00% Senior Engineer 0.00 0.00 0.20 0.20 0.00 0.00% Senior Planner 0.15 0.28 0.50 0.50 0.00 0.00% Traffic Engineering-Lead 0.38 0.65 0.35 0.35 0.00 0.00% Transportation Planning Manager 0.20 0.36 1.15 1.15 0.00 0.00% Total Office of Transportation 4.51 4.39 6.20 6.35 0.15 2.42% Table of Organization FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Change % TABLE OF ORGANIZATION 344 TABLE OF ORGANIZATION • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Planning and Development Servicesb Administrative Assistant 2.00 2.00 1.00 1.00 0.00 0.00% Administrative Associate I 1.00 1.00 1.00 1.00 0.00 0.00% Administrative Associate II 3.00 2.80 2.80 2.80 0.00 0.00% Administrative Associate III 3.30 3.29 4.00 4.00 0.00 0.00% Assistant Chief Building Official 1.00 1.00 1.00 1.00 0.00 0.00% Assistant Director PCE 1.00 1.00 1.00 1.00 0.00 0.00% Assistant Director Public Works 0.00 0.00 0.00 0.00 0.00 0.00% Associate Engineer 0.02 0.02 0.22 0.22 0.00 0.00% Associate Planner 1.00 3.03 3.15 3.00 -0.15 (4.76)% Building Inspector Specialist 4.00 4.00 4.00 4.00 0.00 0.00% Building/Planning Technician 3.00 3.00 3.00 3.00 0.00 0.00% Business Analyst 1.00 1.00 0.00 0.00 0.00 0.00% Chief Building Official 1.00 1.00 1.00 1.00 0.00 0.00% Chief Planning Official 1.00 1.00 1.00 1.00 0.00 0.00% Chief Transportation Official 0.06 0.09 0.00 0.00 0.00 0.00% Code Enforcement Officer 2.00 2.00 2.00 2.00 0.00 0.00% Code Enforcement-Lead 1.00 1.00 1.00 1.00 0.00 0.00% Deputy Chief/Fire Marshal 0.80 0.80 0.80 0.80 0.00 0.00% Development Project Coordinator II 2.00 2.00 2.00 2.00 0.00 0.00% Development Project Coordinator III 3.00 3.00 3.00 3.00 0.00 0.00% Development Services Director 1.00 1.00 0.00 0.00 0.00 0.00% Director Planning/Community Environment 1.00 1.00 1.00 1.00 0.00 0.00% Engineer 0.64 0.64 0.64 0.64 0.00 0.00% Engineering Technician III 1.78 1.78 1.78 1.78 0.00 0.00% Fire Fighter 0.00 0.00 0.00 0.00 0.00 0.00% Fire Inspector 3.20 3.20 3.20 3.20 0.00 0.00% Hazardous Materials Inspector 1.60 1.60 1.60 1.60 0.00 0.00% Industrial Waste Inspector 0.01 0.01 0.01 0.01 0.00 0.00% Industrial Waste Investigator 0.35 0.35 0.35 0.35 0.00 0.00% Inspector, Field Services 0.68 0.68 0.68 0.68 0.00 0.00% Landscape Architect Park Planner 0.00 0.50 0.50 0.50 0.00 0.00% Management Analyst 1.99 1.79 0.01 0.01 0.00 0.00% Manager Development Center 1.00 1.00 0.00 0.00 0.00 0.00% Manager Environmental Control Program 0.10 0.10 0.10 0.10 0.00 0.00% Manager Planning 4.00 3.00 5.00 5.00 0.00 0.00% Manager Urban Forestry 0.04 0.04 0.04 0.04 0.00 0.00% Manager Watershed Protection 0.00 0.00 0.00 0.00 0.00 0.00% Planner 4.00 4.00 4.00 4.00 0.00 0.00% Table of Organization FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Change % TABLE OF ORGANIZATION TABLE OF ORGANIZATION • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 345 Planning Arborist 0.29 0.00 0.00 0.00 0.00 0.00% Planning Division Manager 0.00 1.00 0.00 0.00 0.00 0.00% Plans Check Engineer 0.00 0.00 0.00 0.00 0.00 0.00% Principal Management Analyst 0.00 0.00 1.00 0.00 -1.00 0.00% Principal Planner 0.00 1.00 2.00 2.00 0.00 0.00% Program Assistant 0.00 0.00 1.00 0.00 -1.00 (100.00)% Program Assistant I 0.00 0.00 0.00 1.00 1.00 0.00% Project Engineer 0.03 0.33 0.13 0.13 0.00 0.00% Project Manager 0.00 0.00 0.00 0.00 0.00 0.00% Senior Business Analyst 0.00 0.00 1.00 1.00 0.00 0.00% Senior Engineer 0.46 0.46 0.46 0.46 0.00 0.00% Senior Industrial Waste Investigator 0.01 0.01 0.01 0.01 0.00 0.00% Senior Management Analyst 2.00 1.88 2.00 2.00 0.00 0.00% Senior Planner 6.60 3.60 3.60 3.60 0.00 0.00% Senior Technologist 0.00 0.00 0.00 0.00 0.00 0.00% Supervisor Inspection and Surveying 0.27 0.27 0.27 0.27 0.00 0.00% Surveyor, Public Works 0.00 0.00 0.00 0.00 0.00 0.00% Traffic Engineering-Lead 0.00 0.00 0.10 0.10 0.00 0.00% Transportation Planning Manager 0.00 0.05 0.00 0.00 0.00 0.00% Total Planning and Community Environment 62.23 62.32 62.45 61.30 -1.15 (0.24)% Police Administrative Assistant 1.00 1.00 1.00 1.00 0.00 0.00% Administrative Associate II 3.00 3.00 3.00 3.00 0.00 0.00% Animal Control Officer 3.00 3.00 3.00 3.00 0.00 0.00% Animal Control Officer-Lead 1.00 1.00 1.00 1.00 0.00 0.00% Animal Services Specialist II 2.00 2.00 0.00 0.00 0.00 0.00% Assistant Police Chief 1.00 1.00 1.00 1.00 0.00 0.00% Business Analyst 1.20 1.20 1.20 1.20 0.00 0.00% Code Enforcement Officer 1.00 1.00 1.00 1.00 0.00 0.00% Communications Manager 1.00 1.00 1.00 1.00 0.00 0.00% Communications Technician 1.00 1.00 1.00 1.00 0.00 0.00% Community Service Officer 7.50 7.50 7.50 7.50 0.00 0.00% Court Liaison Officer 1.00 1.00 1.00 1.00 0.00 0.00% Crime Analyst 1.00 1.00 1.00 1.00 0.00 0.00% Deputy Director Technical Services Division 0.80 0.80 0.80 0.80 0.00 0.00% Geographic Information System Specialist 0.50 0.50 0.50 0.50 0.00 0.00% Police Agent 19.00 19.00 19.00 19.00 0.00 0.00% Table of Organization FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Change % TABLE OF ORGANIZATION 346 TABLE OF ORGANIZATION • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Police Captain 2.00 2.00 2.00 2.00 0.00 0.00% Police Chief 1.00 1.00 1.00 1.00 0.00 0.00% Police Lieutenant 5.00 5.00 5.00 5.00 0.00 0.00% Police Officer 50.00 50.00 50.00 50.00 0.00 0.00% Police Records Specialist II 6.00 6.00 6.00 6.00 0.00 0.00% Police Records Specialist-Lead 1.00 1.00 1.00 1.00 0.00 0.00% Police Sergeant 14.00 14.00 14.00 14.00 0.00 0.00% Program Assistant II 1.00 1.00 1.00 1.00 0.00 0.00% Property Evidence Technician 2.00 2.00 2.00 2.00 0.00 0.00% Public Safety Communications Manager 1.00 1.00 1.00 1.00 0.00 0.00% Public Safety Dispatcher 16.00 16.00 16.00 16.00 0.00 0.00% Public Safety Dispatcher - Lead 0.00 0.00 0.00 0.00 0.00 0.00% Public Safety Dispatcher I 0.00 0.00 0.00 0.00 0.00 0.00% Public Safety Dispatcher II 0.00 0.00 0.00 0.00 0.00 0.00% Public Safety Dispatcher-Lead 4.00 4.00 4.00 4.00 0.00 0.00% Public Safety Program Manager 2.00 2.00 2.00 2.00 0.00 0.00% Senior Management Analyst 1.00 1.00 1.00 1.00 0.00 0.00% Senior Technologist 0.00 0.00 0.00 0.00 0.00 0.00% Superintendent Animal Services 1.00 1.00 0.00 0.00 0.00 0.00% Veterinarian 1.00 1.00 0.00 0.00 0.00 0.00% Veterinarian Technician 2.00 2.00 0.00 0.00 0.00 0.00% Total Police 155.00 155.00 149.00 149.00 0.00 0.00% Public Works Administrative Assistant 1.00 1.00 1.00 1.00 0.00 0.00% Administrative Associate I 0.60 0.60 0.10 0.10 0.00 0.00% Administrative Associate II 2.65 2.65 2.65 2.65 0.00 0.00% Administrative Associate III 0.01 0.01 0.01 0.01 0.00 0.00% Assistant Director Public Works 0.87 0.87 0.73 0.73 0.00 0.00% Associate Engineer 0.30 0.30 0.00 0.00 0.00 0.00% Building Serviceperson 1.00 0.00 0.00 0.00 0.00 0.00% Building Serviceperson-Lead 1.00 1.00 1.00 1.00 0.00 0.00% Cement Finisher 3.00 2.00 2.00 2.00 0.00 0.00% Cement Finisher-Lead 0.26 0.26 0.26 0.26 0.00 0.00% Coordinator Public Works Projects 1.50 1.50 1.50 1.50 0.00 0.00% Director Public Works/City Engineer 1.00 1.00 1.00 1.00 0.00 0.00% Electrician 0.80 0.80 0.80 0.80 0.00 0.00% Engineer 0.66 0.66 0.36 0.36 0.00 0.00% Engineering Technician III 1.47 1.47 1.47 1.47 0.00 0.00% Table of Organization FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Change % TABLE OF ORGANIZATION TABLE OF ORGANIZATION • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 347 Equipment Operator 3.46 2.46 2.46 2.46 0.00 0.00% Facilities Carpenter 1.00 1.00 1.00 1.00 0.00 0.00% Facilities Maintenance-Lead 1.85 1.85 1.85 1.85 0.00 0.00% Facilities Mechanic 0.00 0.00 0.00 0.00 0.00 0.00% Facilities Painter 1.75 1.75 1.75 1.75 0.00 0.00% Facilities Technician 4.05 4.05 4.05 4.05 0.00 0.00% Heavy Equipment Operator 2.33 2.33 2.33 2.33 0.00 0.00% Heavy Equipment Operator-Lead 0.85 0.85 0.85 0.85 0.00 0.00% Inspector, Field Services 0.11 0.11 0.11 0.11 0.00 0.00% Landscape Architect Park Planner 0.10 0.60 0.60 0.60 0.00 0.00% Management Analyst 0.70 0.70 0.70 1.45 0.75 107.14% Manager Facilities 0.90 0.90 0.90 0.90 0.00 0.00% Manager Maintenance Operations 1.20 1.20 1.20 1.20 0.00 0.00% Manager Urban Forestry 0.96 0.96 0.96 0.96 0.00 0.00% Manager Watershed Protection 0.05 0.05 0.05 0.05 0.00 0.00% Planning Arborist 0.71 0.00 0.00 0.00 0.00 0.00% Project Engineer 0.50 0.50 0.00 0.00 0.00 0.00% Project Manager 2.65 2.65 2.65 2.65 0.00 0.00% Senior Engineer 0.79 0.79 0.59 0.59 0.00 0.00% Senior Management Analyst 1.11 1.11 1.11 1.11 0.00 0.00% Senior Project Manager 0.10 0.10 0.00 0.00 0.00 0.00% Supervisor Inspection and Surveying 0.10 0.10 0.10 0.10 0.00 0.00% Surveyor, Public Works 0.33 0.33 0.33 0.33 0.00 0.00% Traffic Controller Maintainer-Lead 0.00 0.00 0.00 0.00 0.00 0.00% Traffic Controller Maintainer I 1.94 1.94 1.94 1.94 0.00 0.00% Traffic Controller Maintainer II 2.00 2.00 2.00 2.00 0.00 0.00% Tree Maintenance Person 1.00 1.00 1.00 1.00 0.00 0.00% Tree Trim/Line Clear 7.00 7.00 7.00 7.00 0.00 0.00% Tree Trim/Line Clear-Lead 1.00 1.00 1.00 1.00 0.00 0.00% Total Public Works 54.66 51.45 49.41 50.16 0.75 1.52% Total General Fund 602.92 582.28 574.93 573.68 -1.25 (0.22)% Enterprise Fund Public Works Account Specialist 0.30 0.30 0.30 0.30 0.00 0.00% Accountant 0.40 0.40 0.40 0.40 0.00 0.00% Administrative Associate I 0.10 0.10 0.10 0.10 0.00 0.00% Administrative Associate II 2.15 2.15 2.15 2.15 0.00 0.00% Administrative Associate III 0.10 0.10 0.10 0.10 0.00 0.00% Table of Organization FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Change % TABLE OF ORGANIZATION 348 TABLE OF ORGANIZATION • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Assistant Director Public Works 1.30 1.30 1.30 1.30 0.00 0.00% Assistant Manager WQCP 2.00 2.00 2.00 2.00 0.00 0.00% Associate Engineer 2.99 2.99 2.99 2.99 0.00 0.00% Business Analyst 0.00 0.00 0.00 0.00 0.00 0.00% Buyer 0.00 0.00 0.00 0.00 0.00 0.00% Chemist 3.00 3.00 3.00 3.00 0.00 0.00% Chief Sustainability Officer 0.00 0.00 0.00 0.00 0.00 0.00% Coordinator Public Works Projects 0.00 0.00 0.00 0.00 0.00 0.00% Deputy Chief/Fire Marshal 0.07 0.07 0.07 0.07 0.00 0.00% Electrician 3.00 3.00 3.00 3.00 0.00 0.00% Electrician-Lead 2.00 2.00 2.00 2.00 0.00 0.00% Engineer 0.90 0.90 0.90 0.90 0.00 0.00% Engineering Technician III 0.25 0.25 0.25 0.25 0.00 0.00% Environmental Specialist 2.00 2.00 2.00 2.00 0.00 0.00% Equipment Operator 0.54 0.54 0.54 0.54 0.00 0.00% Facilities Maintenance Lead 1.00 1.00 1.00 1.00 0.00 0.00% Facilities Technician 1.50 1.50 1.50 1.50 0.00 0.00% Hazardous Materials Inspector 0.04 0.04 0.04 0.04 0.00 0.00% Heavy Equipment Operator 0.90 0.90 0.90 0.90 0.00 0.00% Heavy Equipment Operator-Lead 1.15 1.15 1.15 1.15 0.00 0.00% Industrial Waste Inspector 2.99 2.99 2.99 2.99 0.00 0.00% Industrial Waste Investigator 1.15 1.15 1.15 1.15 0.00 0.00% Laboratory Technician WQC 3.00 3.00 3.00 3.00 0.00 0.00% Landfill Technician 1.00 1.00 1.00 1.00 0.00 0.00% Maintenance Mechanic 0.00 0.00 0.00 0.00 0.00 0.00% Management Analyst 2.30 2.30 2.30 2.30 0.00 0.00% Manager Airport 1.00 1.00 1.00 1.00 0.00 0.00% Manager Environmental Control Program 4.90 4.90 4.90 4.90 0.00 0.00% Manager Laboratory Services 1.00 1.00 1.00 1.00 0.00 0.00% Manager Maintenance Operations 1.96 1.96 1.96 1.96 0.00 0.00% Manager Solid Waste 1.00 1.00 1.00 1.00 0.00 0.00% Manager Water Quality Control Plant 1.00 1.00 1.00 1.00 0.00 0.00% Manager Watershed Protection 0.95 0.95 0.95 0.95 0.00 0.00% Plant Mechanic 7.00 7.00 7.00 7.00 0.00 0.00% Program Assistant I 1.00 1.00 1.00 1.00 0.00 0.00% Program Assistant II 2.00 2.00 2.00 2.00 0.00 0.00% Project Engineer 1.83 1.83 1.83 1.83 0.00 0.00% Project Manager 1.35 1.35 1.35 1.35 0.00 0.00% Senior Accountant 0.30 0.30 0.30 0.30 0.00 0.00% Table of Organization FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Change % TABLE OF ORGANIZATION TABLE OF ORGANIZATION • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 349 Senior Buyer 1.00 1.00 1.00 1.00 0.00 0.00% Senior Chemist 1.00 1.00 1.00 1.00 0.00 0.00% Senior Engineer 3.76 3.76 3.76 3.76 0.00 0.00% Senior Industrial Waste Investigator 0.99 0.99 0.99 0.99 0.00 0.00% Senior Management Analyst 0.21 0.21 0.21 0.21 0.00 0.00% Senior Mechanic 1.00 1.00 1.00 1.00 0.00 0.00% Senior Operator WQC 6.00 6.00 6.00 6.00 0.00 0.00% Senior Technologist 1.00 1.00 1.00 1.00 0.00 0.00% Storekeeper 1.00 1.00 1.00 1.00 0.00 0.00% Street Maintenance Assistant 1.00 1.00 1.00 1.00 0.00 0.00% Street Sweeper Operator 1.63 1.63 1.63 1.63 0.00 0.00% Supervisor WQCP Operations 3.00 3.00 3.00 3.00 0.00 0.00% Surveyor, Public Works 0.12 0.12 0.12 0.12 0.00 0.00% Technologist 1.00 1.00 1.00 1.00 0.00 0.00% Traffic Controller Maintainer I 0.06 0.06 0.06 0.06 0.00 0.00% WQC Plant Operator II 16.00 16.00 16.00 16.00 0.00 0.00% Zero Waste Coordinator 1.00 1.00 1.00 1.00 0.00 0.00% Total Public Works 101.19 101.19 101.19 101.19 0.00 0.00% Utilities Account Specialist 1.70 1.70 1.70 1.70 0.00 0.00% Accountant 0.60 0.60 0.60 0.60 0.00 0.00% Administrative Assistant 1.00 1.00 1.00 1.00 0.00 0.00% Administrative Associate II 7.00 7.00 6.00 6.00 0.00 0.00% Assistant City Manager/Utilities General Manager 0.75 0.75 0.00 0.00 0.00 0.00% Assistant Director Administrative Services 0.25 0.25 0.25 0.25 0.00 0.00% Assistant Director Utilities Customer Support Services 1.00 1.00 1.00 1.00 0.00 0.00% Assistant Director Utilities Engineering 1.00 1.00 1.00 1.00 0.00 0.00% Assistant Director Utilities Operations 1.00 1.00 1.00 1.00 0.00 0.00% Assistant Director Utilities/Resource Management 1.00 1.00 1.00 1.00 0.00 0.00% Associate Engineer 0.00 0.00 0.00 0.00 0.00 0.00% Business Analyst 7.00 6.00 6.00 6.00 0.00 0.00% Cathodic Protection Technician Assistant 1.00 1.00 1.00 1.00 0.00 0.00% Cathodic Technician 1.00 1.00 1.00 1.00 0.00 0.00% Cement Finisher 2.00 2.00 2.00 2.00 0.00 0.00% Chief Sustainability Officer 0.00 0.00 0.00 0.00 0.00 0.00% Table of Organization FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Change % TABLE OF ORGANIZATION 350 TABLE OF ORGANIZATION • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Contracts Administrator 0.70 0.70 0.70 0.70 0.00 0.00% Coordinator Utilities Projects 6.00 6.00 6.00 6.00 0.00 0.00% Customer Service Representative 7.00 7.00 7.00 7.00 0.00 0.00% Customer Service Specialist 2.00 2.00 2.00 2.00 0.00 0.00% Customer Service Specialist-Lead 2.00 2.00 2.00 2.00 0.00 0.00% Deputy Chief/Fire Marshal 0.08 0.08 0.08 0.08 0.00 0.00% Deputy City Attorney 1.00 1.00 1.00 1.00 0.00 0.00% Director Administrative Services/CFO 0.20 0.20 0.20 0.20 0.00 0.00% Director Utilities 0.00 0.00 0.00 0.00 0.00 0.00% Electric Heavy Equipment Operator 0.00 0.00 0.00 2.00 2.00 0.00% Electric Project Engineer 2.00 2.00 4.00 4.00 0.00 0.00% Electric Underground Inspector 2.00 2.00 2.00 2.00 0.00 0.00% Electric Underground Inspector-Lead 1.00 1.00 1.00 1.00 0.00 0.00% Electrical Equipment Technician 1.00 1.00 1.00 1.00 0.00 0.00% Electrician Assistant I 3.00 3.00 3.00 3.00 0.00 0.00% Engineer 4.00 4.00 4.00 4.00 0.00 0.00% Engineering Manager - Electric 1.00 1.00 1.00 1.00 0.00 0.00% Engineering Manager - WGW 1.00 1.00 1.00 1.00 0.00 0.00% Engineering Technician III 3.00 3.00 3.00 3.00 0.00 0.00% Equipment Operator 0.00 0.00 0.00 0.00 0.00 0.00% Gas and Water Meter Measurement and Control Technician 4.00 4.00 4.00 4.00 0.00 0.00% Gas and Water Meter Measurement and Control Technician - Lead 1.00 1.00 1.00 1.00 0.00 0.00% Gas System Technician 0.00 0.00 0.00 0.00 0.00 0.00% Gas System Technician II 0.00 0.00 0.00 0.00 0.00 0.00% Hazardous Materials Inspector 0.06 0.06 0.06 0.06 0.00 0.00% Heavy Equipment Operator 6.70 6.70 6.70 0.00 -6.70 (100.00)% Heavy Equipment Operator - Install/ Repair 4.00 4.00 4.00 4.00 0.00 0.00% Industrial Waste Investigator 0.50 0.50 0.50 0.50 0.00 0.00% Inspector, Field Services 5.00 5.00 5.00 5.00 0.00 0.00% Lineperson/Cable Specialist 11.00 11.00 11.00 10.00 -1.00 (9.09)% Lineperson/Cable Specialist-Lead 4.00 4.00 4.00 4.00 0.00 0.00% Maintenance Mechanic-Welding 2.00 2.00 2.00 2.00 0.00 0.00% Manager Communications 1.00 1.00 1.00 1.00 0.00 0.00% Manager Customer Service 1.00 1.00 1.00 1.00 0.00 0.00% Manager Electric Operations 1.00 1.00 1.00 1.00 0.00 0.00% Manager Treasury, Debt & Investments 0.40 0.40 0.40 0.40 0.00 0.00% Manager Utilities Compliance 1.00 1.00 1.00 1.00 0.00 0.00% Table of Organization FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Change % TABLE OF ORGANIZATION TABLE OF ORGANIZATION • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 351 Manager Utilities Credit & Collection 1.00 1.00 1.00 1.00 0.00 0.00% Manager Utilities Marketing Services 0.00 0.00 0.00 0.00 0.00 0.00% Manager Utilities Operations WGW 1.00 1.00 1.00 1.00 0.00 0.00% Manager Utilities Program Services 1.00 1.00 1.00 1.00 0.00 0.00% Manager Utilities Strategic Business 1.00 1.00 1.00 1.00 0.00 0.00% Manager Utilities Telecommunications 1.00 1.00 1.00 1.00 0.00 0.00% Marketing Engineer 0.00 0.00 0.00 0.00 0.00 0.00% Meter Reader 6.00 6.00 6.00 6.00 0.00 0.00% Meter Reader-Lead 1.00 1.00 1.00 1.00 0.00 0.00% Metering Technician 3.00 3.00 3.00 3.00 0.00 0.00% Metering Technician-Lead 1.00 1.00 1.00 1.00 0.00 0.00% Offset Equipment Operator 0.48 0.48 0.48 0.48 0.00 0.00% Overhead Underground Troubleman 2.00 2.00 2.00 2.00 0.00 0.00% Planner 0.00 0.00 0.00 0.00 0.00 0.00% Power Engineer 3.00 3.00 1.00 1.00 0.00 0.00% Principal Business Analyst 1.00 1.00 1.00 1.00 0.00 0.00% Program Assistant I 1.50 1.50 1.50 1.50 0.00 0.00% Program Assistant II 0.00 0.00 1.00 1.00 0.00 0.00% Project Engineer 5.00 5.00 5.00 5.00 0.00 0.00% Project Manager 0.75 0.75 0.75 0.75 0.00 0.00% Resource Planner 6.00 6.00 5.00 5.00 0.00 0.00% Restoration Lead 1.00 1.00 1.00 1.00 0.00 0.00% SCADA Technologist 2.00 2.00 2.00 2.00 0.00 0.00% Senior Accountant 0.70 0.70 0.70 0.70 0.00 0.00% Senior Business Analyst 2.00 3.00 3.00 3.00 0.00 0.00% Senior Deputy City Attorney 0.00 0.00 0.00 0.00 0.00 0.00% Senior Electrical Engineer 4.00 4.00 4.00 4.00 0.00 0.00% Senior Engineer 5.00 5.00 5.00 5.00 0.00 0.00% Senior Management Analyst 0.70 0.70 0.70 0.70 0.00 0.00% Senior Mechanic 1.00 1.00 1.00 1.00 0.00 0.00% Senior Performance Auditor 1.00 1.00 1.00 1.00 0.00 0.00% Senior Resource Planner 6.00 6.00 6.50 6.50 0.00 0.00% Senior Technologist 0.00 0.00 0.00 0.00 0.00 0.00% Senior Utilities Field Service Representative 1.00 1.00 1.00 1.00 0.00 0.00% Senior Water Systems Operator 2.00 2.00 2.00 2.00 0.00 0.00% Storekeeper 1.00 1.00 1.00 1.00 0.00 0.00% Storekeeper-Lead 0.80 0.80 0.80 0.80 0.00 0.00% Street Light, Traffic Signal & Fiber Technician 5.00 5.00 5.00 5.00 0.00 0.00% Table of Organization FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Change % TABLE OF ORGANIZATION 352 TABLE OF ORGANIZATION • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Street Light, Traffic Signal & Fiber Technician Apprentice 0.00 0.00 0.00 0.00 0.00 0.00% Street Light, Traffic Signal & Fiber-Lead 2.00 2.00 2.00 2.00 0.00 0.00% Substation Electrician 6.00 6.00 6.00 6.00 0.00 0.00% Substation Electrician-Lead 2.00 2.00 2.00 2.00 0.00 0.00% Supervising Electric Project Engineer 1.00 1.00 1.00 1.00 0.00 0.00% Supervisor Inspection Services 0.00 0.00 0.00 0.00 0.00 0.00% Tree Maintenance Person 1.00 1.00 1.00 1.00 0.00 0.00% Utilities Account Representative 0.00 0.00 0.00 0.00 0.00 0.00% Utilities Chief Operating Officer 1.00 1.00 1.00 1.00 0.00 0.00% Utilities Compliance Technician 2.00 2.00 2.00 3.00 1.00 50.00% Utilities Compliance Technician-Lead 1.00 1.00 1.00 1.00 0.00 0.00% Utilities Credit/Collection Specialist 2.00 2.00 2.00 2.00 0.00 0.00% Utilities Director 0.00 0.00 1.00 1.00 0.00 0.00% Utilities Engineer Estimator 5.00 5.00 5.00 5.00 0.00 0.00% Utilities Field Services Representative 5.00 5.00 5.00 5.00 0.00 0.00% Utilities Install Repair-Lead-Welding Certified 2.00 2.00 2.00 2.00 0.00 0.00% Utilities Install Repair-Welding Certified 3.00 3.00 3.00 3.00 0.00 0.00% Utilities Install/Repair 10.00 10.00 10.00 10.00 0.00 0.00% Utilities Install/Repair Assistant 1.00 1.00 1.00 1.00 0.00 0.00% Utilities Install/Repair-Lead 5.00 5.00 5.00 5.00 0.00 0.00% Utilities Key Account Representative 3.00 3.00 3.00 3.00 0.00 0.00% Utilities Locator 3.00 3.00 3.00 3.00 0.00 0.00% Utilities Marketing Program Administrator 3.00 3.00 4.00 4.00 0.00 0.00% Utilities Safety Officer 1.00 1.00 1.00 1.00 0.00 0.00% Utilities Supervisor 12.00 12.00 12.00 12.00 0.00 0.00% Utilities System Operator 5.00 5.00 5.00 5.00 0.00 0.00% Utility Engineering Estimator - Lead 1.00 1.00 1.00 1.00 0.00 0.00% Warehouse Supervisor 0.80 0.80 0.80 0.80 0.00 0.00% Water Meter Cross Connection Technician 0.00 0.00 0.00 0.00 0.00 0.00% Water System Operator I 0.00 0.00 0.00 0.00 0.00 0.00% Water System Operator II 4.00 4.00 4.00 4.00 0.00 0.00% WGW Heavy Equipment Operator 0.00 0.00 0.00 4.70 4.70 0.00% Total Utilities 256.67 256.67 257.42 257.42 0.00 0.00% Total Enterprise Fund 357.86 357.86 358.61 358.61 0.00 0.00% Table of Organization FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Change % TABLE OF ORGANIZATION TABLE OF ORGANIZATION • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 353 Other Funds Capital Project Fund Administrative Assistant 0.00 0.00 0.15 0.15 0.00 0.00% Administrative Associate I 0.80 0.80 0.80 0.80 0.00 0.00% Administrative Associate III 0.89 1.09 0.89 0.89 0.00 0.00% Assistant Director Public Works 0.58 0.58 0.72 0.72 0.00 0.00% Associate Engineer 2.96 3.04 2.49 2.49 0.00 0.00% Associate Planner 0.00 0.31 0.30 0.30 0.00 0.00% Building Serviceperson 0.00 0.75 0.75 1.00 0.25 33.33% Building Serviceperson-Lead 0.00 1.40 1.40 1.40 0.00 0.00% Cement Finisher 0.00 0.00 0.00 0.00 0.00 0.00% Cement Finisher-Lead 0.74 0.74 0.74 0.74 0.00 0.00% Chief Transportation Official 0.52 0.36 0.30 0.30 0.00 0.00% Contracts Administrator 0.60 0.60 0.60 0.60 0.00 0.00% Coordinator Public Works Projects 1.30 1.30 1.30 1.30 0.00 0.00% Coordinator Transportation Systems Management 0.62 0.76 0.75 0.75 0.00 0.00% Engineer 2.80 2.80 3.10 3.10 0.00 0.00% Engineering Technician III 0.50 0.50 0.50 0.50 0.00 0.00% Facilities Technician 1.50 1.50 1.50 1.50 0.00 0.00% Heavy Equipment Operator 0.00 0.00 0.00 0.00 0.00 0.00% Inspector, Field Services 1.21 1.21 1.21 1.21 0.00 0.00% Landscape Architect Park Planner 0.90 0.90 0.90 0.90 0.00 0.00% Management Analyst 0.79 0.82 0.94 0.94 0.00 0.00% Manager Facilities 0.10 0.10 0.10 0.10 0.00 0.00% Manager Maintenance Operations 0.65 0.65 0.65 0.65 0.00 0.00% Parking Operations-Lead 1.00 0.35 0.40 0.40 0.00 0.00% Program Assistant I 0.00 0.00 0.00 0.00 0.00 0.00% Program Assistant II 0.40 0.00 0.00 0.00 0.00 0.00% Project Engineer 7.14 6.84 7.59 7.59 0.00 0.00% Project Manager 1.15 1.15 1.15 1.15 0.00 0.00% Senior Engineer 1.99 1.99 2.99 3.99 1.00 33.44% Senior Management Analyst 0.60 0.72 0.60 0.60 0.00 0.00% Senior Planner 0.85 0.72 0.50 0.50 0.00 0.00% Senior Project Manager 0.90 0.90 1.00 0.00 -1.00 (100.00)% Supervisor Inspection and Surveying 0.63 0.63 0.63 0.63 0.00 0.00% Surveyor, Public Works 0.55 0.55 0.55 0.55 0.00 0.00% Traffic Engineering-Lead 0.62 0.35 0.55 0.55 0.00 0.00% Transportation Planning Manager 0.50 0.35 0.35 0.35 0.00 0.00% Total Capital Project Fund 33.79 34.76 36.40 36.65 0.25 0.69% Table of Organization FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Change % TABLE OF ORGANIZATION 354 TABLE OF ORGANIZATION • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Printing and Mailing Services Manager Revenue Collections 0.10 0.10 0.10 0.10 0.00 0.00% Offset Equipment Operator 1.52 1.52 1.52 1.52 0.00 0.00% Total Printing and Mailing Services 1.62 1.62 1.62 1.62 0.00 0.00% Special Revenue Funds Account Specialist 1.62 1.87 1.87 1.87 0.00 0.00% Account Specialist-Lead 0.95 0.55 0.55 0.55 0.00 0.00% Administrative Assistant 0.00 0.00 0.35 0.35 0.00 0.00% Administrative Associate II 0.20 0.20 0.20 0.20 0.00 0.00% Administrative Associate III 0.00 0.21 0.00 0.00 0.00 0.00% Associate Planner 0.00 0.42 0.25 0.25 0.00 0.00% Building Serviceperson-Lead 0.00 0.00 0.00 0.00 0.00 0.00% Chief Transportation Official 0.05 0.00 0.00 0.00 0.00 0.00% Community Service Officer 0.50 0.50 0.50 0.50 0.00 0.00% Coordinator Public Works Projects 0.20 0.20 0.20 0.20 0.00 0.00% Electrician 0.20 0.20 0.20 0.20 0.00 0.00% Facilities Maintenance-Lead 0.15 0.15 0.15 0.15 0.00 0.00% Facilities Mechanic 0.00 0.00 0.00 0.00 0.00 0.00% Facilities Painter 0.25 0.25 0.25 0.25 0.00 0.00% Facilities Technician 0.45 0.45 0.45 0.45 0.00 0.00% Management Analyst 0.02 0.17 0.35 0.35 0.00 0.00% Manager Community Services Senior Program 1.00 1.00 1.00 1.00 0.00 0.00% Manager Maintenance Operations 0.19 0.19 0.19 0.19 0.00 0.00% Manager Revenue Collections 0.28 0.28 0.28 0.28 0.00 0.00% Parking Operations-Lead 0.00 0.55 0.60 0.60 0.00 0.00% Planner 0.00 0.00 0.00 0.00 0.00 0.00% Program Assistant II 0.00 0.00 0.00 0.00 0.00 0.00% Senior Planner 0.40 0.40 0.40 0.40 0.00 0.00% Street Maintenance Assistant 2.00 2.00 2.00 2.00 0.00 0.00% Street Sweeper Operator 0.37 0.37 0.37 0.37 0.00 0.00% Transportation Planning Manager 0.30 0.24 0.50 0.50 0.00 0.00% Total Special Revenue Funds 9.13 10.20 10.66 10.66 0.00 0.00% Technology Fund Administrative Assistant 1.00 1.00 1.00 1.00 0.00 0.00% Assistant Director Administrative Services 0.10 0.10 0.10 0.10 0.00 0.00% Business Analyst 1.00 1.00 1.00 1.00 0.00 0.00% Table of Organization FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Change % TABLE OF ORGANIZATION TABLE OF ORGANIZATION • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 355 Desktop Technician 6.00 6.00 6.00 6.00 0.00 0.00% Director Administrative Services/CFO 0.00 0.00 0.00 0.00 0.00 0.00% Director Information Technology/CIO 1.00 1.00 1.00 1.00 0.00 0.00% Management Analyst 0.00 0.00 0.00 0.00 0.00 0.00% Manager Information Technology 4.00 3.00 3.00 3.00 0.00 0.00% Manager Information Technology Security 1.00 1.00 1.00 1.00 0.00 0.00% Principal Business Analyst 1.00 1.00 1.00 1.00 0.00 0.00% Senior Business Analyst 2.00 2.00 2.00 2.00 0.00 0.00% Senior Management Analyst 1.00 1.00 1.00 1.00 0.00 0.00% Senior Technologist 17.00 18.00 18.00 18.00 0.00 0.00% Technologist 1.00 1.00 1.00 1.00 0.00 0.00% Total Technology Fund 36.10 36.10 36.10 36.10 0.00 0.00% Vehicle Replacement and Maintenance Fund Administrative Associate III 1.00 1.00 0.00 0.00 0.00 0.00% Assistant Director Public Works 0.25 0.25 0.25 0.25 0.00 0.00% Assistant Fleet Manager 1.00 1.00 1.00 1.00 0.00 0.00% Equipment Maintenance Service Person 2.00 2.00 2.00 2.00 0.00 0.00% Fleet Services Coordinator 2.00 2.00 1.00 1.00 0.00 0.00% Management Analyst 0.20 0.20 0.20 0.20 0.00 0.00% Management Assistant 0.00 0.00 1.00 1.00 0.00 0.00% Manager Fleet 1.00 1.00 1.00 1.00 0.00 0.00% Motor Equipment Mechanic II 6.00 6.00 6.00 6.00 0.00 0.00% Motor Equipment Mechanic-Lead 2.00 2.00 2.00 2.00 0.00 0.00% Project Manager 1.00 1.00 1.00 1.00 0.00 0.00% Senior Management Analyst 0.08 0.08 0.08 0.08 0.00 0.00% Total Vehicle Replacement and Maintenance Fund 16.53 16.53 15.53 15.53 0.00 0.00% Workers’ Compensation Program Fund Senior Human Resources Administrator 1.00 1.00 1.00 1.00 0.00 0.00% Workers’ Compensation Program Fund Total Workers’ Compensation Program Fund 1.00 1.00 1.00 1.00 0.00 0.00% Total Other Funds 98.17 100.21 101.31 101.56 0.25 0.25% Total Citywide Positions 1,058.95 1,040.35 1,034.85 1,033.85 (1.00)(0.10)% Table of Organization FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Proposed Budget FY 2021 Change FTE FY 2021 Change % TABLE OF ORGANIZATION 356 TABLE OF ORGANIZATION • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET a. The Office of Transportation was created within the City Manager’s Office in FY 2020 through the realloca- tion of staff and resources from the Planning and Development Services Department (previously the Planning and Community Environment Department). For demonstrative purposes, prior years in the Office of Trans-portation have been restated to include Transportation staff. b. The Planning and Development Services Department was established in FY 2020 through the merging of the Development Services Department and the Planning and Community Environment Department and the reallocation of resources to create a dedicated Office of Transportation within the City Manager’s Office. For demonstrative purposes, prior years have been restated to include staffing of the prior Development Services Department and the Planning and Community Environment Department. • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 357 SUPPLEMENTAL INFORMATION Supplemental Information FINANCIAL POLICIES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 359 FINANCIAL POLICIES FINANCIAL POLICIESReserve Policies One of the key components of a financially stable organization is the adherence to a policy of maintaining an appropriate level of reserves. The Government Finance Officers Association (GFOA) recommends, at a minimum, that general purpose governments, regardless of size, maintain reserves (unrestricted fund balance) in their General Fund of no less than two months of operating revenues or expenditures, or a minimum of approximately 16.6 percent of General Fund operating expenditures. The GFOA further recommends that reserve levels be directly related to the degree of uncertainty the local government faces; specifically, the greater the uncertainty, the greater the financial resources necessary. Since reserves are used to mitigate risk, during these uncertain economic times, it is crucial that the City continue its practice of adhering to this GFOA guidance. This will provide the City with resources to cope with unfore- seen expenditures, unanticipated events, or revenue shortfalls. General Fund Budget Stabilization Reserve The City's Budget Stabilization Reserve (BSR) serves as the primary General Fund reserve. By policy, the BSR is maintained in the range of 15.0 to 20.0 percent of General Fund operating expenditures, with a target of 18.5 percent. Any reduction to the reserve below 15.0 percent requires City Council approval. At the discretion of the City Manager, any BSR balance above 18.5 percent may be transferred to the Infrastructure Reserve (IR), which was established to provide funding for maintenance and rehabilitation of the City’s capital assets. The BSR is used to fund unanticipated one-time costs as opposed to ongoing or recurring operating expendi- tures. The City's intent is to fund ongoing programs and services with ongoing dollars. The City has held a long-standing practice of maintaining a BSR balance of no less than 15.0 percent of General Fund operating expenses. The table below depicts the BSR balances for seven years, the last five years of actual ending BSR balances, and two years of budgeted end- ing BSR balances. As discussed in this document, the Fiscal Year 2021 Budget assumes a BSR ending balance of $47.1 million or 19.7 percent; this is aligned with City Council direction. Over the years, the City's BSR has served as a repository for unspent operating funds at year- end and to fund one-time unexpected needs that arise outside of the regular budget prepara- tion process. Prudent financial management practices dictate that the BSR not be used to fund or solve on-going, recurring financial needs. The City has adhered to this practice and has not used the BSR to provide ongoing budget stabilization during periods of economic downturns. FY 2015 Actuals FY 2016 Actuals FY 2017 Actuals FY 2018 Actuals FY 2019 Adopted FY 2020 Adopted FY 2021 Proposed Ending BSR Balance (in millions) $48.2 $49.5 $48.1 $52.8 $41.0 $42.7 $47.1 % of Total Expenses 25.96%24.06%22.87%25.63%19.16%18.50%19.73% 360 FINANCIAL POLICIES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET FINANCIAL POLICIES HUMAN SERVICES RESOURCE ALLOCATION PROCESS (HSRAP) RESERVE In Fiscal Year 2015, the City Council set aside an earmarked reserve for the Human Resource Allocation Process (HSRAP) in the amount of $50,000 to be used during future budget cycles. Any remaining funds that are unspent at the conclusion of Fiscal Year 2020 will rec- ommended to be carried forward to Fiscal Year 2021. Credit Rating Agencies Credit rating agencies view General Fund reserves as a critical component of strong municipal management. According to Moody's Investors Service, reserves are an important factor in the analysis of a municipality's fiscal health and, therefore, a jurisdiction’s fiscal policies should include a plan for maintaining reserves. Rating agencies view sound reserves favorably, thus improving a municipality's rating and its ability to obtain low-cost financing for important proj- ects. The City is proud to report that both Moody's and Standard and Poor's (S&P) awarded their highest credit ratings, Triple A, to the City's General Obligation Bonds for library and com- munity center capital improvements in 2010 and 2013, and have reaffirmed these ratings in Feb- ruary 2019 by S&P and July 2019 by Moody’s. These ratings demonstrate that Palo Alto's prudent financial management and fiscal strength are viewed most favorably by credit agen- cies. The four Utility bonds that are rated by S&P also received their highest credit rate of Triple A. Moody’s has rated these Utility bonds with either their second highest (Aa1) or third highest (Aa2) ratings. Capital Fund Reserve Infrastructure Reserve (IR) The Infrastructure Reserve (IR) provides a mechanism for financing the City's infrastructure maintenance and rehabilitation requirements and allows the City to apply for reimbursable infrastructure grants and respond to urgent infrastructure needs. The primary purpose of the IR is to fund projects which are critical to the maintenance of existing infrastructure. Between FY 2012 and FY 2019 unspent monies from General Fund capital projects are returned to the IR and retained within the Capital Fund. General Fund Operating Budget surpluses of $40.5 million have been transferred to the Infrastructure Reserve beyond base budget transfers. Investment income from this reserve is also retained within the IR to fund future capital project needs. Other Policies Debt Policy The City of Palo Alto recognizes the need for spending a prudent amount every year for ongo- ing capital replacement and rehabilitation needs. An ongoing capital improvement plan is vital to ensuring the future viability of services. To achieve this priority, the City funds its regular and ongoing capital needs primarily on a “pay-as-you-go” basis. There are, however, special or FINANCIAL POLICIES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 361 FINANCIAL POLICIES extraordinary capital improvement projects, refinancing of existing debt, and purchase of major and multiple pieces of equipment in which it is appropriate to consider debt financing. The City’s Debt Policy establishes the guidelines to support the decision-making process for issuing debt. These guidelines were adopted by the City Council on May 13, 1997 (City Man- ager's Report 210:97). Staff revised the guidelines at the April 11, 2017 City Council meeting to explicitly comply with the recently passed SB 1029 amendments to Government Code section 8855. A summary of the Debt Service guidelines, including more information on the new report- ing requirements, is in the Debt Service Fund Overview section. Investment Policy The basic principles underlying Palo Alto’s investment philosophy are to ensure the safety of public funds, provide that sufficient money is always available to meet current expenditures, and achieve a reasonable rate of return on its investments. Safety is the top priority, followed by liquidity, and yield. The City pools cash from all sources and funds - except restricted bond proceeds with fiscal agents and/or with a trust - and invests its pooled idle cash in accordance with state law and the City’s charter. The City follows the “Prudent Investor Standard” cited in State Government Code (Section 53600.3). Under this standard, all governing bodies of local agencies or persons authorized to make investment decisions on behalf of the City are trustees and, therefore, fidu- ciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling or managing public funds, a trustee shall act with the same care, skill, prudence and diligence under the prevailing circumstances that a prudent person acting in a like capacity and familiarity with those matters would use in the same circumstances to safe- guard the principal and maintain the liquidity needs of the agency. Prevailing circumstances include, but are not limited to, economic conditions and the anticipated needs of the agency. The City’s preferred and chief practice is to buy securities and to hold them to their date of maturity rather than trade or sell securities prior to maturity. The City may, however, elect to sell a security prior to its maturity date should there be a significant financial need. If securities are purchased and held to their maturity date, then any changes in the market value of those secu- rities during their life will have no effect on the principal value. Under a buy and hold philosophy, the City is able to protect its invested principal. The economy, money markets and various finan- cial institutions (such as the Federal Reserve System) are monitored carefully to make prudent investments and assess the condition of the City’s portfolio. A detailed explanation of investment objectives, applicability, and general investment guidelines can be found on the City’s website. The Investment Policy also delineates authorized invest- ments, authorized investment personnel, and administrative procedures. City staff is evaluating possible recommendations to the City Council for changes to the Invest- ment Policy and other financial practices to encourage investments that support sound envi- ronmental, social, and governance (ESG) investing. This includes encouraging investments in entities that support community well-being through safe and environmentally sound practices and fair labor practices and equality of rights. Also, administratively, staff doesn’t invest in enti- ties that manufacture tobacco products, firearms, or nuclear weapons and production and/or drilling of fossil fuels. Staff will be looking at making a recommendation to formalize this prac- tice in the Investment Policy. GLOSSARY • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 363 GLOSSARY GLOSSARYKey Budget Terms Accrual Accounting: A method of accounting that recognizes expenses when incurred and revenues when earned rather than when payment is made or received Adopted Budget: The budget that is approved and enacted by the City Council annually on before June 30th. Appropriation: The allocation of an expense budget for a particular project or program usually for a spe- cific period of time. Balanced Budget: A balanced budget exists when total revenues are equal to, or greater than, total expenses. Bond: A debt investment in which an investor loans money to an entity (governmental or otherwise) that borrows the money for a defined period of time at a fixed interest rate to pay for a variety of projects. Budget Stabilization Reserve (BSR): The BSR was established as a prudent measure to maintain the City’s fiscal stability in the event that unanticipated events reduce revenue or create obligations that significantly impact the current-year budget. Examples of such events include a downturn in the economy, a natural disaster or actions that may be taken by another governmental agency that reduce revenues and/or increase expenses for the City. Capital Budget: A plan of proposed capital outlays and the means of financing them for the current fiscal period. In a two-year budget, the second year of the Capital Improvement Program is adopted-in-concept. Capital Improvement Program (CIP): The City’s plan for current and future projects related to the acquisi- tion, expansion, or rehabilitation of buildings, equipment, parks, streets, and other public infrastructure. Capital Projects Fund: A fund created to account for all resources to be used for the construction or acquisition of designated fixed assets by a governmental unit except those financed by proprietary or fidu- ciary funds. City Manager’s Report (CMR): Staff reports for City Council meetings as well as boards and commissions that are prepared by City staff and submitted through the City Manager’s Office. Comprehensive Plan: The Palo Alto Comprehensive Plan contains the City's official policies on land use and community design; transportation; natural environment; safety; community services and facilities; and business and economics. Its focus is on the physical form of the City and is applicable to both public and private properties. The Budget integrates the 2030 Comprehensive Plan into the budget process. Cost Accounting: The branch of accounting that provides for the assembling and recording of all the ele- ments of cost incurred to accomplish a purpose, carry on an activity or operation, or complete a unit of work or a specific job. Enterprise Funds: Funds used to account for services that are provided to the public on a user charge basis, similar to the operation of a commercial business. The City’s enterprise funds include the gas, elec- tric, water, fiber optics and wastewater collection and treatment funds. 364 GLOSSARY • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET GLOSSARY Fiduciary Fund: A fund used to account for assets held by the City acting in a fiduciary capacity for other individuals or entities. These funds are operated to carry out the specific actions required by the trust agreements, ordinances and other governing regulations. Fiscal Agent: A bank or other corporate fiduciary that performs the function of paying, on behalf of the governmental unit, or other debtor, interest on debt or principal of debt when due. Fiscal Year: A 12-month period of time to which the annual budget applies and at the end of which a gov- ernmental unit determines its financial position and the results of operations. Palo Alto’s fiscal year begins on July 1st and ends on June 30th. Fixed Assets: Assets such as land, structures and improvements, furniture and/or equipment that are expected to last and/or be used for more than one year. Full-Time Equivalent (FTE): Used to quantify staffing hours for permanent and temporary employees. A 1.00 FTE employee works full time; a 0.50 FTE employee works half-time. Fund Balance: An excess of the assets of a fund over its liabilities. General Fund: The primary fund used to account for the City’s general purpose revenues such as sales, property, utility users and transient occupancy taxes. General Fund revenues typically pay for citywide ser- vices such as public safety, community development, recreation, libraries and parks. The General Fund is distinguished from Special Funds in that the latter are used to account for revenues that have restricted uses (e.g. gas tax funds that must be used for street maintenance or repair). Governmental Funds: A generic classification used to refer to all funds other than proprietary and fidu- ciary funds. Governmental funds include the general fund, capital fund, special revenue funds and debt service funds. Infrastructure Assets: Roads, bridges, curbs and gutters, streets, sidewalks, drainage systems, and lighting systems installed for the common good. Infrastructure Management Plan (IMP): A portion of the General Fund capital improvement program which focuses on rehabilitating the City's infrastructure. In 1998-99, an outside consultant on the City's infrastructure prepared a report known as the Adamson report. Within this report the City's infrastructure was cataloged and ranked based on when the infrastructure needed to be upgraded or replaced and the cost for each item. At that time, the City Council decided to establish a plan using the Adamson report as a guide for both timeline and cost. Internal Service Funds: These funds provide services to City departments and recover their costs through user charges. For example the Vehicle Replacement Fund is an Internal Service Fund managing the replacement and maintenance of the City fleet. Method of Accounting: The City's General Fund budget is developed using a modified accrual basis of accounting, with revenues being recorded when measurable and available, and expenditures recorded when the liability is incurred. Enterprise Funds and Internal Service Funds are budgeted on a generally accepted accounting principles (GAAP) basis, which for Proprietary Funds is on a full accrual accounting basis. GLOSSARY • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 365 GLOSSARY Operating Transfer: Amounts transferred between funds, not considered a revenue or expense. For exam- ple, legally authorized transfers from a fund receiving revenue to the fund through which the resources are to be expended. Pay-As-You-Go-Basis: A term used to describe the financial policy of a governmental unit that finances all of its capital outlays from current revenues rather than by borrowing. Proposed Budget: The proposed budget is the preliminary version of the budget that is sent to the Finance Committee and City Council by the City Manager. The proposed budget is reviewed by the Finance Committee and the City Council, updated with any changes, and then adopted by the City Council prior to the beginning of the next fiscal year. Proprietary Funds: A generic classification used to refer to all funds other than governmental funds or fiduciary funds. Proprietary funds include internal service funds and enterprise funds. Reimbursements: Inter-fund transactions that constitute reimbursements to a fund for expenditures or expenses initially made from it but that properly apply to another fund. For example, the Enterprise Funds reimburse the Technology Fund for CIP projects from which the Enterprise Funds benefit. Reserve: Represents the portion of fund balance set aside for financing future financing needs and addressing one-time emergency or unanticipated events. Revenues: Revenues include compensation received by the project for specific services to the public (external revenues), as well as revenues received from other funds (internal revenues). Special Revenue Funds: These funds account for the proceeds derived from specific revenue sources that are legally restricted to expenditures for specified purposes. The Street Improvement Fund (SIF) is a Spe- cial Revenue Fund that derives its funding from state gas tax revenues. Capital appropriations from the SIF must be spent on the construction and maintenance of the road network system of the City. AMERICANS WITH DISABILITIES ACT • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 367 AMERICANS WITH DISABILITIES ACT AMERICANS WITH DISABILITIES ACT IN COMPLIANCE WITH AMERICANS WITH DISABILITIES ACT (ADA) OF 1990, THIS DOCUMENT MAY BE PROVIDED IN OTHER ACCESSIBLE FORMATS. For information contact: ADA Coordinator City of Palo Alto 285 Hamilton Ave (650) 329‐2550 CITY OF PALO ALTO 250 HAMILTON AVENUE, PALO ALTO, CA 94301 P 650.329.2100 W CITYOFPALOALTO.ORG Spanish explorers named the area for the tall, twin-trunked redwood tree they camped beneath in 1769. Palo Alto incorporated in 1894 and the State of California granted its first charter in 1909. The City has long been known for its innovative people and its exploration of ideas that have changed the world. In Palo Alto, our history has always been about the future. PALO ALTO PROPOSED CAPITAL BUDGET FISCAL YEAR 2021 TRANSMITTAL LETTER TRANSMITTAL LETTER • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET I TRANSMITTAL LE Transmittal LetterApril 20, 2020 To the Honorable Mayor and City Council 2021 Fiscal Year Operating & Capital Budget Transmittal Dear Mayor and Council Members: In accordance with the City Charter, I am presenting the City of Palo Alto's Fiscal Year 2021 Pro- posed Operating Budget and Fiscal Year 2021 Proposed Capital Budget along with the Fiscal Year 2021-2025 Capital Improvement Program (CIP) Plan. The operating budget totals $818.9 million and the capital budget totals $288.7 million in FY 2021 and $793.4 million over the five- year CIP. As required by the City Municipal Code, the Planning and Transportation Commission (PTC) will review the 2020-2024 CIP in May 2020 to evaluate the program's compliance with the Updated Comprehensive Plan which was adopted by City Council in November 2017. As dis- cussed previously with the City Council, this a baseline for us to continue conversations to ensure alignment of revenue and expenses and long-term fiscal sustainability in light of the global health crisis. At the time of the development of the FY 2021 budget, the world is grappling with the novel coronavirus (COVID-19), a global pandemic. Society through both government and industry are responding in order to slow the spread and contain the virus in order to safeguard as many lives as possible. The financial implications of this public health emergency are significant, with regional, national and global impacts on economies in response to shelter in place orders required by the State of California and the County of Santa Clara and related social distancing restrictions. Since the Santa Clara County Ordered a Shelter in Place on March 16, 2020, Palo Alto has seen retail stores, many hotels, and restaurants close their doors completely as the community struggles to adapt to this extraordinary challenge. We have also seen our daytime population drop as workers and visitors shelter in place, telework, and limit their movements to slow the spread of the virus. The impacts have been stark and immediate. On March 12, 2020 the City Manager, acting as the Director of Emergency Services, issued a Proclamation of Local Emergency regarding the presence and community spread of COVID-19 in Santa Clara County and our region. The Proclamation allows the City to exercise extraordi- nary police powers, should these be needed; provides immunity for emergency actions; autho- rizes issuance of certain necessary orders and regulations; activates pre-established emergency processes; and is a prerequisite for requesting state or federal assistance related to the emer- gency, should such assistance become available. On Sunday, March 15, 2020, the City Manager activated the Emergency Operations Center and since that time, the City has managed the EOC virtually through a cross-functional multi-departmental team. On March 16, 2020, the City Council ratified the Proclamation of Local Emergency. In the weeks since COVID-19 was detected and found to be transmitting via community spread, City staff have taken numerous actions to promote community safety and address existing and potential impacts on City services and operations. The City has transitioned a majority of its workforce to TRANSMITTAL LETTER II TRANSMITTAL LETTER • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET remote (telework) status, while maintaining essential services such as fire, police, public works, and utilities. Due to the immediate constraints on social activities, severe impacts to transient occupancy taxes, sales tax, documentary transfer tax, and revenue from licenses, permits, and charges for services are ongoing. Although anecdotal, staff expects hotel occupancy levels to be below 10 percent and restaurants and retail establishments to remain primarily closed while the current Shelter-in-Place Order and social distancing practices are in effect. The financial outlook beyond the current environment are also unknown as unemployment claims have reached unprecedented levels and the financial markets are volatile. Further, while the current County of Santa Clara Public Health Order runs to May 3, there are indications at both the local and State levels that the public health emergency will extend for months to come. While mindful of the unprecedented circumstances at hand, this Budget Message includes the following sections to outline the City's resource allocations for the year ahead and beyond: 1.City Council Priorities 2. Council Adopted Budget Principles 3. Continuing Fiscal Sustainability Actions Previously Adopted 4. Fiscal Reality and Budget Priorities 5.Summary of Other Funds (including the FY 2021-2025 Capital Improvement Plan) 6. Budget Timeline 7.Acknowledgments City Council Priorities In February of this year, which may seem like a lifetime ago, the City Council held a retreat and selected three priorities to focus on in 2020. The priorities include: Housing with an emphasis on affordable housing Sustainability, in the context of the changing climate Improving mobility for all In February of this year, which may seem like a lifetime ago, the City Council held a retreat and selected three priorities to focus on in 2020. The priorities include: "Housing with an emphasis on affordable housing "Sustainability, in the context of the changing climate "Improving mobility for all Two of these priorities, mobility, and sustainability, relate to City Council priorities from 2019. For the City Council Retreat staff report highlighting past Council priorities and community input gained to help inform this discussion, go here: https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=62811.92&BlobID=75033 Since February, the City Council has adopted housing and sustainability workplans, guiding staff work associated with these priorities, and a revision to the existing transportation work- plan was planned by June 2020. While progress is being made on all priorities, the realignment needed to reflect current circumstances will severely impact our ability to continue this work. TRANSMITTAL LETTER TRANSMITTAL LETTER • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET III The budget direction below considers suspending much of the work on all three priorities, in order to focus on legally mandated activities and redeploying staff to focus on recovery efforts. Council Adopted Budget Principles As part of the FY 2021 - FY 2030 Long Range Financial Forecast, the City Council approved budget guidelines that have driven development of the FY 2021 Proposed operating and capital budgets. The budget principles include: 1. Develop a structurally balanced budget that brings ongoing revenues and expenses into alignment. Develop a plan for any structural imbalance to ensure that the City maintains it fiscal sustainability over the short, medium, and long-term. 2. Allocate one-time resources for one-time needs rather than committing one-time resources to ongoing services. Examine appropriate uses of revenue surpluses that exceed forecasted levels including planning for recession needs. 3.Ensure appropriate resource allocation for City Council's existing priorities. 4. Focus on business process redesign to enhance quality, flexibility, and cost effective- ness of service delivery (include examining opportunities to streamline, simplify, reor- ganize, and reallocate resources to avoid duplication of effort). 5.Explore alternative service delivery models (such as partnerships with non-profits or other public/private sector groups) to minimize overlap, maximize cost share, and effectively use resources. 6. Continue to thoroughly analyze non-personnel/equipment/other costs, such as con- tract services, for cost savings opportunities. 7.Explore the expansion of existing revenue sources or the addition of new revenue sources, including the alignment of existing charges for services and the opportunity to establish new fees, when appropriate. 8. Continue to analyze and prioritize resource augmentations, seeking to offset augmen- tations with reductions elsewhere for net-zero impacts to the budget whenever possi- ble. The FY 2021 - FY 2030 Long Range Financial Forecast can be found here: http://cityofpaloalto.org/civicax/filebank/documents/74907 Continuing Fiscal Sustainability Actions Previously Adopted The FY 2021 baseline budget reflects the current service levels approved by the City Council with revenue projections prior to the COVID-19 emergency. As a balanced budget, the assump- tions contain therein continues to follow conservative proactive fiscal management across all funds and includes a $2.7 million contribution to the Budget Stabilization Reserve in the General Fund. This reflects the significant progress the City has made towards ongoing cost contain- ment over the past several years and the reductions that have been made across the organiza- tion. It shows the continued push to proactively fund pensions with continuing the City Council approved additional annual payments to the City's irrevocable IRS Section 115 Pension Trust TRANSMITTAL LETTER IV TRANSMITTAL LETTER • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Fund ("Pension Trust Fund") ($3.4 million General Fund, $5.5 million all funds), additional pay- ments to the City's OPEB Trust (approximately $3.0 million annually all funds). Investment in capital infrastructure has been a key priority as well and is funded by approval of two (2) Transient Occupancy Tax rate changes as well as a sizeable transfer from the General Fund to the Capital Improvement Fund for the catch-up and keep-up priorities identified by the Infrastructure Blue Ribbon Commission (IBRC). This capital budget continues to prioritize the 2014 Council approved Infrastructure Plan in the General Capital Improvement Fund. In order to accomplish this, some of the larger projects previously planned in the five-year CIP have been pushed out beyond the 2021-2025 timeframe. The ability to maintain these financial investments in capital and proactive payment of long- term liabilities, while funding Council priorities over the years, has resulted in service and staff- ing reductions and service delivery changes such as the animal shelter transition to a public/pri- vate partnership with Pets in Need. This prioritization of fiscal sustainability did not come without impacts. The FY 2020 Adopted Budget and the FY 2021 Proposed Budget continues reductions in the Fire Department, position eliminations in the Library Department and Public Works, as well as ongoing expense reductions in the Office of the City Clerk, the City Manager's Office, the Office of Emergency Services, and Information Technology. In addition, efforts to structurally balance the FY 2020 budget, the FY 2020 Adopted Budget included actions that were expected to start in FY 2021, such as the transition of Project Safety Net to a community-funded model with the City as a partner instead of the primary funder, and the realization of approximately $450,000 in additional savings in the Police Department. This FY 2021 Proposed Budget includes continuation of these efforts. These actions result in a baseline workforce of 1,034, which decreased by 1 position compared to the FY 2020 Adopted Budget. This is significantly less than the peak level of 1,076 citywide positions in 2009. In the General Fund, positions have decreased 11.9 percent, from 651 to 574, since 2009. Staff released the "City Services Guide" in December 2019 to assist in further con- versations about the exceptional services provided by the City and the resources necessary to provide them. You can find the City Services Guide and the appendix here: http://cityofpaloalto.org/civicax/filebank/documents/74888 http://cityofpaloalto.org/civicax/filebank/documents/74176 Fiscal Reality and Revised Budget Approach This year's proposed budget recognizes the need to set new priorities in light of the significant uncertainty the City faces. Per direction by the City Council on March 23, 2020, these proposed operating and capital budgets include less information and data than normal and are effectively a carryover budget. They reflect the cost of current service levels recalculated to FY 2021 rates and limited adjustments. The capital budget has been updated for the current status and cost estimates of projects based on engineering designs and only adds limited new projects for urgent health and safety needs. These budgets also begin what staff expects to be an ongoing conversation and difficult work ahead to plan for the return or recovery period once the shelter in place order is lifted. It is expected that these deliberations will require resetting expectations and many shared sacrifices moving forward. TRANSMITTAL LETTER TRANSMITTAL LETTER • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET V Despite reflecting most recent figures, revenue estimates contained in these budgets are none- theless likely overstated given the current state of the economy. It is expected that once the revenue estimates are revised, significant adjustments will be necessary to ensure a balanced budget in the several funds with economically sensitive revenues. This includes but is not lim- ited to the General Fund, Refuse Fund, Parking Funds, and Enterprise Utility Funds. Staff expects to begin these conversations with the release of these Proposed Budgets and continue through May and June. Ultimately, the City Council must adopt a balanced operating and capi- tal budget by June 30 for the new fiscal year FY 2021 beginning July 1, 2020. Staff will work to achieve this with the City Council. Depending on the length and depth of this current public health emergency, the severity of the financial ramifications remains unknown. In the General Fund, staff has worked to estimate the impacts on the potential loss in major tax revenues. Based on this, at the time of this transmittal, it is estimated that major General Fund taxes will decline at minimum by $20.0 million in FY 2021 compared to the estimates carried in this baseline budget. Sales Tax and Transient Occu- pancy Taxes (TOT) alone make up nearly 30 percent of the General Fund revenues. In addition, preliminary figures from CalPERS reflect that they will not meet their expected investment returns this year. Through March, CalPERS is reporting -4 to -5 percent losses and are currently hovering around -1 percent to 0 percent investment returns. It is expected that these costs will materialize in the City's FY 2022-2023 retirement rates and continue through a 20-year period. As we have all been reading in the current news, it is expected that society will be susceptible to restrictions and a possible resurgence of the infections of COVID-19. As we continue to grapple with these unknown effects, adding to the City Council's adopted Budget Principles highlighted above, I am recommending establishing a set of Budget and Fiscal Recovery Priorities to help guide our work to balance this significant change and continue to evolve through these uncer- tain times. These include: Support economic recovery through changes to our policies and programs Focus on resiliency over the long term while making service reductions and changes, ensuring that any services eliminated can be restored in future years Seek new ways to conduct our work through efficiencies and a learning environment Apply a broad-based approach to reductions, balancing impacts to the community Use temporary solutions to bridge extreme revenue losses expected in the short term Recognizing that some of the necessary measures may not be sustainable in the long term, some deferrals of longstanding priorities will be necessary to respond to the downturn and allow for an economic recovery before resuming. We must assume this may take years, as the actual duration is unknown. Through these new Budget and Fiscal Recovery Priorities, I've directed our Department Direc- tors to think differently about our budget approach and challenges ahead including the follow- ing service changes and themes listed below. This is not a recommended budget approach at this time, nor comprehensive list, however it is intended to demonstrate the magnitude of changes needed to address expected financial constraints. Note that some workforce strategies are subject to bargaining over decisions and/or impacts, in some cases requiring mutual agree- ment. The City will work with labor to explore savings through these and other strategies. TRANSMITTAL LETTER VI TRANSMITTAL LETTER • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Citywide Strategies Citywide Cost Containment: We will explore additional cost containment through continuing a hiring freeze and freezing all nonessential travel, eliminating current vacancies and reducing future vacancies through attrition, and/or implementing furloughs with corresponding service reductions such as reduced walk-in office hours. City General Capital Infrastructure Fund Transfer Suspension: The City's General Fund transfers upwards of $30 million annually to the General Capital Infrastructure Fund, consisting of a baseline transfer as well as the allocation of TOT receipts as designated by the City Council. This is expected to be significantly impacted by the losses in TOT revenues and reduction in the General Fund transfer would help bridge operating budget impacts. Both will significantly reduce the capacity for capital investments in the near term. We must prioritize investments including the Public Safety Building, 2014 City Council approved Infrastructure Plan, Parks improvements such as Birch Street, the newly acquired property adjacent to Boulware Park, and various transportation projects including but not limited to grade separations. Proactive Funding of Long-Term Liabilities: The City Council approved a proactive funding strategy to contribute to the City's Pension Trust Fund assuming a normal cost for contribution with a 6.2 percent discount rate. This resulted in additional annual contribution of $5.5 million in all funds, $3.4 million in the General Fund. We will explore pausing this practice to soften the extreme revenue losses in the short-term. Support of Economic Recovery through Changes to our Policies and Programs: The City is initiating Business Roundtables and other programs and services to continue supporting the business community. While implementation of outputs from the Business Roundtables may require near-term investments, they will also assist in the long term economic recovery of our community. Initiatives include the implementation of our new online permit system to ensure, even while sheltering in place, review of planning and permitting processes and policy changes to support businesses in the City. Department Specific Strategies Public Safety: We will explore the suspension or elimination of specialized police units such as the traffic enforcement unit and investigation unit to maintain minimal police patrol services and shift the priority of police services to focus on urgent calls and reduce the level of service and ability to respond to non-urgent calls for services. Reduce officer training, promotional testing, uniform purchases and eliminate or change to full cost recovery for non-essential programming such as the Parent Project community education program, crossing guards, Stanford Athletics, and school resource officers. Explore the reduced availability of at least one of five fire stations and eliminate or freeze a staff vacancy in the Office of Emergency Services. Community & Library Services: We will explore reduced library hours, not opening select library branches, and not re-opening some community services facilities. This includes greater cost recovery through changes in service delivery, charges for services, and/or limiting operating hours, for facilities such as the new Junior Museum and Zoo (JMZ), one community center, the Children's Theatre, or the Art Center. We will also explore reducing the number of days or hours of operation that other Community Services facilities are open such as community centers, museums, theaters or open space preserves. Explore the reduction or elimination of programming such as special events, art exhibits, and teen TRANSMITTAL LETTER TRANSMITTAL LETTER • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET VII programs an re-evaluate the shared services between the City and Palo Alto Unified School District (PAUSD), including suspension of programs unless greater cost recovery can be achieved. Explore termination of the Cubberley lease or resetting to a shared revenue structure. Planning & Infrastructure: Explore restrictions to use of contract inspectors, elimination of next day inspections and explore scheduled inspections, understanding that this could delay services to our development community. Defer several Council adopted planning efforts such as the housing work plan, all electric commercial buildings initiatives and other work not legally mandated. Restructure work to in-house staff only, explore amendments to the City's municipal code to scale back on application processing requirements associated with wireless communication facilities. Explore other amendments to reduce the number of applications requiring review by the architectural review board and elimination of the individual review program to free up resources that support the Council's long-range planning policy interests. Explore reducing code enforcement staffing, eliminating the Crosstown and Embarcadero shuttle programs or redesigning the delivery of this service to reduce costs. Evaluate the current parking program including the Residential Preferential Parking (RPP) program to full cost recovery including implementation of license plate recognition for efficiencies in park- ing enforcement, and implementation of a paid parking program to increase revenues. Explore deferral or reduction in tree trimming, vehicle replacement, suspending rate changes in various utility enterprise funds for the coming year(s) and explore shifting the City's sidewalk replacement and repairs program to cost-sharing or full property owner responsibility. Internal Services & Council Appointed Officers: Internal Services departments include the Information Technology, Human Resources, and Administrative Services Departments as well as the Council and appointed officers (City Manager, City Attorney, City Auditor and City Clerk). We will explore reductions in these areas in line with the proposed changes in services, aligning timeframes for assistance and review in areas such as recruitments, procurements, and risk management. Technology solutions would be constrained to only essential contracts and systems. The City Council may similarly review its expenses and areas for reduction. Once again, we must recognize that many of these budget balancing strategies are not sustain- able over the long term. However, these or similar solutions are necessary to bridge the gap cre- ates by a steep economic downturn, contain costs, and support our economic recovery. Summary of Other Funds The City's Enterprise and other funds, including the General Capital Fund, have also been brought forward in these proposed operating and capital budgets as working budgets. They reflect the priorities from the FY 2020 budget development with updates for FY 2021 rates and limited adjustments. The capital budgets have been updated for the current status and cost estimates of projects based on engineering designs and only adds limited new projects for urgent health and safety needs. The City will continue to maintain services and facilities for the community and the region, such as Utilities, Palo Alto Airport, and Wastewater Collection and Treatment plant. Although these budgets in this FY 2021 assume rate increases in various utili- ties, as noted above, staff is working to explore suspension of rate changes. Minimal changes TRANSMITTAL LETTER VIII TRANSMITTAL LETTER • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET are recommended in the various parking funds, one-time funding approved in FY 2020 are rec- ommended to be continued for an additional year such as funding for the Transportation Man- agement Association (TMA) and a General Fund subsidy in the RPP program. Parking permit prices are also recommended to increase by 2.6 percent, consistent with most other fees, except for resident permits which are recommended to remain at $50. In FY 2021, a total of $96.4 million will be allocated towards the capital program for the Enter- prise Funds, with $390.5 million allocated over the five-year CIP, representing 52.1 percent of CIP expenditures for all funds. Major investments continue in the Wastewater Treatment Plant's cap- ital program, with approximately 64 percent of the expenses reimbursed by five contributing partner agencies outside of the City of Palo Alto, and the general Capital Improvement Fund, which is the second largest section of the 2021-2025 CIP, totals $335.0 million with 91 projects. It is expected, as noted above, that a prioritization of investments will be necessary with the expected reduction in TOT receipts. Budget Timeline Acknowledgements I would like to thank the City Council for your leadership and our Executive Leadership Team and the entire staff of the City for providing outstanding services to our community. While rec- ognizing the challenges ahead, the Palo Alto community should be proud of your leadership and commitment to service. A proposed budget takes countless hours of teamwork, collaboration, and patience to produce. I would like to offer special thanks to Kiely Nose, our Chief Financial Officer and the dedicated Office of Management and Budget Team - Christine Paras, Paul Harper, Steve Guagliardo, Jessie Deschamps, Alexandra Harris, Jamie Perez, Kayla Shapiro, and Chaitali Paliwal. Completing this budget could not have been accomplished without the skill, dedication, and professionalism of TRANSMITTAL LETTER TRANSMITTAL LETTER • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET IX this team. Their willingness to work through these unique circumstances and sacrifice countless hours are a testament to their commitment to this organization and to the community. Thanks are also due to David Ramberg, Assistant Director, Administrative Services Department, and Tarun Narayan, Treasury Manager. I am also grateful to the Department Directors of our Execu- tive Leadership Team and the department personnel who worked on the material. There are too many to list here by name, but the budget could not have been produced without the senior/ management analysts, division managers, administrative assistants, and others throughout the organization who helped produce this budget. Respectfully Submitted, Ed Shikada City Manager TRANSMITTAL LETTER X TRANSMITTAL LETTER • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Attachment A: Capital Improvement Funds The Capital Improvement Fund category includes two funds, the Capital Improvement Fund and the Cubberley Property Infrastructure Fund, which make up the second largest section of the 2021-2025 CIP in terms of cost at $335.0 million, but have the largest number of projects with 91. Capital projects that do not directly benefit the Enterprise Funds, support technology improvements, or vehicle maintenance and replacement are funded in the Capital Improvement Fund and account for repairs to the City’s roads, parks and open space, and most City facilities. The Cubberley Property Infrastructure Fund supports repair and renovation of facilities at the Cubberley Community Center. Sources of Funding The Capital Improvement Fund has been supported primarily through a transfer from the Gen- eral Fund split into two classifications, a base amount and dedicated funding from Transient Occupancy Tax (TOT) revenue. Since FY 2013, the base transfer level has increased annually by an amount equal to the consumer price index, bringing the FY 2021 base transfer to $16.1 mil- lion. In addition to this base level of General Fund support, the City Council earmarked revenues from a total voter approved 3.5 percent TOT increase plus revenue from new hotels built after January 2015 to fund the Infrastructure Plan. The FY 2021 General Fund transfer to infrastruc- ture includes $14.6 million in TOT revenues; therefore, the total transfer to the Capital Improve- ment Fund is $31.9 million, which includes $1.2 million of estimated interest earnings in addition to the base and TOT amounts. As the City continues to address uncertainties surrounding the impact from COVID-19, these preliminary amounts are anticipated to change. Other major sources of funding for the Capital Improvement Fund include Certificates of Partic- ipation (COP) funding, grants from Federal, State, and other local agencies, and transfers from the Stanford University Medical Center Development Agreement, the Gas Tax Fund, and vari- ous Impact Fee Funds and Parking District Funds. Further discussion of these revenue sources can be found in the Summary of CIP Program Revenue section of this document. The Cubberley Property Infrastructure Fund is funded solely through a transfer from the Gen- eral Fund based on the November 2014 change to the lease with the Palo Alto Unified School District. The revised lease reallocated an ongoing annual $1.8 million “Covenant Not to Develop” payment that previously went to the school district to establish the Cubberley Property Infra- structure Fund and support infrastructure repair and renovation for the Cubberley Community Center. Expenditures The 2021-2025 CIP for the Capital Improvement Fund includes 87 projects at a cost of $331.6 million, of which $176.8 million is budgeted fin FY 2021, with $37.8 million being reappropriated TRANSMITTAL LETTER TRANSMITTAL LETTER • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET XI from FY 2020 for projects continuing into FY 2021. The Capital Improvement Fund budget is divided into six categories: Buildings and Facilities, Department Technology Upgrades and Improvements, Parks and Open Space, Streets and Sidewalks, Traffic and Transportation, and Unallocated Salaries and Benefits. Additional details on each of these categories can be found in the Capital Project Fund Overview section for each of the categories. Infrastructure Management System and Status of the “Catch-Up” Backlog A key recommendation of the IBRC report was the establishment of an Infrastructure Manage- ment System (IMS) that will maintain an inventory of the City’s infrastructure and track and budget for “catch-up” and “keep-up” needs. The IMS has been implemented utilizing two soft- ware applications, Maintenance Connection which is the repository for the infrastructure asset inventory information, and Questica, the City’s budget system, which is used for long term cap- ital planning. The combined use of both applications will allow the City to plan and report on long term capital funding needs and deferred maintenance, or “catch-up” balances for both operating and capital maintenance. The initial asset inventory and capital planning information has been transferred to the IMS, and reporting from the IMS began in FY 2019. The December 2011 IBRC Report identified a backlog of “catch-up” projects totaling $41.2 mil- lion. The 2021-2025 CIP includes a total of $23.8 million in catch-up projects, reducing the back- log amount to $17.4 million at the end of the five-year period as outlined in the table below. Buildings and Facilities $173.6M Department Technology Upgrades and Improvements $0.9M Parks and Open Space $31.1M Streets and Sidewalks $50.9M Traffic and Transportation $62.2M Administration $12.8M 2021‐2025 CAPITAL IMPROVEMENT FUND EXPENDITURES BY CATEGORY $331.5 MILLION TRANSMITTAL LETTER XII TRANSMITTAL LETTER • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET The 2021-2025 Capital Improvement Program continues significant investments in traffic and transportation initiatives. In November 2016, Santa Clara County passed Measure B, a 30-year half-cent county wide sales tax to enhance transit, highways, expressways and active transpor- tation (bicycles, pedestrians and complete streets). Measure B revenue for Palo Alto is antici- pated to be $1.3 million annually and has been recommended to be split, with $0.5 million for the Railroad Grade Separation project (PL-17001), $0.5 million for Street Maintenance (PE- 86070), and $0.3 million for Traffic Signal and Intelligent Transportation System Upgrades proj- ect (PL-05030). Similarly, S.B. 1 funding for Road Maintenance and Rehabilitation from the State of approximately $1.3 million annually is recommended to fund Street Maintenance (PE- 86070). In future years the addition of this funding to the City’s street maintenance program could potentially allow some funds to be reallocated to other capital projects with City Council approval. City Council Infrastructure Plan In 2013 the City Council established the Council Infrastructure Committee and tasked the Com- mittee with identifying a funding plan for infrastructure projects requiring funding above and beyond the base annual General Fund transfer to the Capital Improvement Fund. After meeting regularly for more than a year, the Committee arrived at a list of nine recommended projects and an associated funding plan, which was approved by the City Council in June 2014. At the time the plan was adopted, the total cost of Infrastructure Plan projects was estimated at $125.8 million. It is important to note that project costs for two of the projects only included the amounts that were unfunded in June 2014. For comparison to current Council Infrastructure Plan costs the original estimate should have been $136.6 million (rather than $125.8 million). Additionally, the project costs did not include staff salaries and benefits. Beginning in the 2019- 2023 CIP, staff budgeted the cost of staff salaries and benefits within the individual capital proj- ects to more accurately plan and account for the total cost of projects. These costs had previ- ously been budgeted in a single capital project (AS-10000) that accounted for the salaries and benefits of all staff that work on capital projects and are budgeted in the capital fund. The inclu- sion of staff salaries and benefits in individual project budgets can appear to increase the over- all cost of the projects. In reality, the apparent increase is simply a shift of budget allocation IBRC “Catch-Up” Backlog Status IBRC “CATCH-UP” CATEGORY IBRC FINAL REPORT “CATCH-UP” BACKLOG “CATCH-UP” AMOUNT FUNDED TO DATE OR INCLUDED IN THE CIP FISCAL YEAR 2021-2025 BACKLOG Buildings $5.0 million $2.2 million $2.8 million Cubberley Community Center $6.9 million $1.2 million $5.7 million Parks $14.4 million $8.1 million $6.3 million Surface $14.9 million $12.3 million $2.6 million TOTAL $41.2 million $23.8 million $17.4 million TRANSMITTAL LETTER TRANSMITTAL LETTER • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET XIII from AS-10000 to the individual projects. The primary reasons for increased project costs are the significant construction cost escalation that has occurred in recent years and additions to the scope of certain projects. As part of the 2020-2024 CIP, a tenth project was approved to be added to the Infrastructure Plan: the Downtown Automated Parking Guidance Systems, Access Controls & Revenue Collec- tion Equipment (PL-15002). Due to the City Council's decision to defer the New Downtown Parking Garage Project (PE-15007) in February 2019, PL-15002 will mitigate parking congestion in downtown while plans for the Downtown Garage are reevaluated. Funding from the Univer- sity Avenue Parking Permit Fund of approximately $1.1 million, previously planned to cover the costs for PL-15002, will now be reserved for future use toward capital needs in the University Avenue Parking District. Based on known estimates and including the tenth project, the total cost of the Infrastructure Plan is currently $287.3 million with $160.3 million (55.8%) programmed in the 2021-2025 CIP. These costs are detailed by project below: The IP relies on the two voter approved increases to the Transient Occupancy Tax (TOT) in November 2014 and November 2018 for a total 3.5 percent of TOT revenue which the City Coun- cil identified as a funding source to aid in infrastructure needs, including the Infrastructure Plan projects and the associated debt service payments from the COP issuances. The City Council also identified TOT funding from new hotels built after January 2015 for infrastructure needs, and the 2021-2025 CIP assumes the opening of new Marriott hotels in FY 2021. COPs were issued for the California Avenue Garage in March 2019 and a portion of the TOT revenues will be allocated to pay for the debt service, which is estimated to be $2.4 million annually. COPs for TRANSMITTAL LETTER XIV TRANSMITTAL LETTER • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET the Public Safety Building are programmed to be issued in FY 2021 and it’s estimated this will increase the annual debt service to $9.8 million annually. In addition to the TOT funding, there are a number of other funding sources that are dedicated towards the IP projects. For more information regarding the funding sources per IP project please see the individual project pages in this document. All ten projects are scheduled to be complete within the 2021-2025 CIP, and four of the projects are anticipated to be complete by the end of FY 2021. The Fire Station #3 Replacement project was awarded for construction in FY 2018 and it was opened in Spring 2020. Construction on phases 1 and 2 of the Charleston/Arastradero Corridor (PE-13011) project were substantially complete in Summer 2019, and the third and final phase is planned to be finished in Spring 2021. In addition, the California Avenue Garage (PE-18000) started construction in Spring 2019 and completion is estimated in Summer 202. A construction contract for the Highway 101 Pedes- trian/Bicycle Overpass (PE-11011) was awarded in Summer 2019 with completion estimated for Summer 2021. The construction contract for the New Public Safety Building (PE-15001) is antic- ipated to be awarded in Fall 2020 with completion in Spring 2023. Additional information on the status of all of the IP projects can be found on the City’s website: https://www.infrastruc- ture.cityofpaloalto.org/. In addition to the Council Infrastructure Plan, there are a number of other significant potential capital projects that have been identified as needs that do not have funding identified. While successful completion of the Council Infrastructure Plan has been identified as the highest infra- structure priority, the following are some other potential competing community asset projects: Junior Museum and Zoo rebuild (Phase II) Animal Shelter replacement or renovation Parks Master Plan implementation TRANSMITTAL LETTER TRANSMITTAL LETTER • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET XV To align with the City Council’s Fiscal Sustainability priority and set aside funding for community asset project like these, a Reserve for Future Capital Needs for $2.5 million will be established starting in FY 2024. This will enable a discussion to prioritize these projects and others that may rise in the years after the IP projects are complete before the funding is programmed into existing capital projects. New Projects There are two new projects in the Capital Improvement Fund for the 2021-2025 CIP and both have funding in FY 2021. They fall under the category of Facility Upgrades and include: Library Automated Material Handling (LB-21000): FY 2021 - $0.1 million; 2021-2021 CIP: $0.8 million Magical Bridge Playground Rubber and Synthetic Turf Resurfacing (PE-21003) - FY 2021: $0.4 million; 2021-2025 CIP: $0.9 million More information about these projects can be found on their respective project pages under the Capital Improvement Fund section in this document. Infrastructure Reserve The ending fund balance in the Capital Improvement Fund is referred to as the Infrastructure Reserve (IR). The IR is used to provide cash flow for reimbursable grants, address unanticipated cost increases, and provide funding for urgent and unanticipated projects. As seen in the Source and Use chart in the Capital Improvement Fund section of this document, the projected IR balance at the end of FY 2021 is estimated to be $28.6 million. This five-year CIP assumes keeping the Infrastructure Plan COP funding at a debt to revenue ratio under 60%, which is sim- ilar to the 2020-2024 CIP. Part of this reduced ratio can be attributed to the voter approved additional 1.5% increase in TOT funding that Council directed towards funding infrastructure. The IR is estimated to remain positive through all five years of the 2021-2025 CIP. This strategy has some risk and uncertainties due to the timing of the opening of the new Marriott hotels, uncertainties surrounding the impact from COVID-19,?and it assumes that current projects remain within budgeted levels, and no large unforeseen urgent capital needs happen prior to the completion of the IP projects. It is important to note that City Council only approves the FY 2021 portion of the five-year CIP, so these assumptions and risks will continue to be evaluated throughout FY 2021 and considered as part of the development of the 2022- 2026 CIP. Cubberley Property Infrastructure Fund The 2021-2025 CIP includes funding for infrastructure improvements at the Cubberley Commu- nity Center in accordance with the November 2014 change to the lease with the Palo Alto Uni- fied School District, which reallocated an annual $1.8 million “Covenant Not to Develop” payment benefiting the school district to infrastructure repair and renovation for the Cubberley Community Center. Work is currently being done by staff in partnership with the Palo Alto Uni- fied School District (PAUSD) to develop the Cubberley Master Plan for the Cubberley Commu- nity Center site. Once the Master Plan is complete, additional work will be required to align the XVI TRANSMITTAL LETTER • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Plan’s priorities with the City Council’s Direction for the site and the funding available to do the work. The 2021-2025 CIP for the Cubberley Community Center includes funding for emergency repairs at the site, scheduled roof replacements, and completion of the field restroom. The emergency repair and roof replacement work is needed to maintain safe building conditions for current use of the site. Completion of the field restroom will provide facilities near the fields that are heavily used for athletic events. TRANSMITTAL LETTER TRANSMITTAL LETTER TRANSMITTAL LETTER • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET XVII Attachment B: Enterprise and Internal Service Funds Enterprise Fund Capital Improvement Projects Enterprise Funds account for financial activities that are associated with a broad range of municipal services. Each year a significant investment is made from the City’s Enterprise Funds (Airport, Electric, Fiber Optics, Gas, Stormwater Management, Wastewater Collection, Waste- water Treatment, and Water). In FY 2021, a total of $96.4 million will be allocated towards the capital program for the Enterprise Funds, with $390.5 million allocated over the five-year CIP, representing 52.1 percent of CIP expenditures for all funds. Of the $96.4 million allocated in FY 2021, $18.5 million is for projects previously approved by the City Council that are recom- mended to be reappropriated from FY 2020 for continuation of the projects in FY 2021. The Utilities Department manages the Electric, Water, Gas, Fiber Optics, and Wastewater Collection Funds, while the Public Works Department manages the Airport, Storm Drainage, and Waste- water Treatment Funds. Following is a brief discussion of the City’s largest Enterprise Fund capital improvement programs. Additional information on each of these funds can be found in the fund summary sections of this document. Water Fund 14 Projects Electric Fund 30 Projects Gas Fund 7 Projects Wastewater Treatment Fund 7 Projects Wastewater Collection Fund 8 Projects Stormwater Management Fund 6 Projects Airport Fund 4 Projects Fiber Fund 3 Projects 2021‐2025 ENTERPRISE CIP PROJECTS BY FUND (79 TOTAL) TRANSMITTAL LETTER XVIII TRANSMITTAL LETTER • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Airport Fund The Airport receives a majority of its funding through grants from the Federal Aviation Adminis- tration (FAA) and the City is required to match ten percent of the award. A total of $26.0 million is allocated towards capital infrastructure over the 2021-2025 CIP, with $19.4 million allocated in FY 2021. The third phase of the Airport Apron Reconstruction project was moved from FY 2020 to FY 2021 as part of the development of the 2020-2024 CIP because generating enough reve- nue at the Airport to maintain and upgrade the Airport facilities without help from the General Fund was a challenge, especially if the cost of apron reconstruction continues to increase. Staff will continue to work with the FAA to complete the project as quickly as possible within the lim- ited resources available to fund the City’s portion of the project costs. There are no new projects programmed in the Airport Fund for the 2021-2025 CIP. Water, Gas, and Wastewater Collection Program Utilities implemented a new replacement schedule for gas, water, and wastewater main con- struction projects to avoid having all three types of projects going on simultaneously. This smooths out the amount of construction occurring and when prices are high. In the last few years there have been fewer bidders and higher prices on construction projects due to the increased demand for construction services. The new schedule also aligned the capital work- load with staffing resources most commonly shared between the three funds. Some of the larger projects planned in the previous five-year CIP have been pushed out beyond the 2021- 2025 timeframe also helped smooth out rate increases affected by capital needs. Stormwater Management Fund The Stormwater Management Fee ballot measure was approved by voters in April 2017, provid- ing funding for the Storm Drain Blue Ribbon Committee’s recommendations for capital projects related to maintenance and upgrades to the City’s storm water management system. The 2021- 2025 Capital Improvement Program includes expenditures of $13.8 million, with $4.2 million allo- cated in FY 2021. With the passage of the 2017 Storm Water Management Fee ballot measure, 13 drainage improvement projects will be recommended over the next 14 years, six of which have been programmed in the 2020-2024 CIP, and the first estimated to be completed in FY 2020. There are no new projects programmed in the Stormwater Management Fund for the 2021-2025 CIP. Wastewater Treatment Fund The Wastewater Treatment Fund accounts for activities related to the replacement and rehabil- itation of the Regional Water Quality Control Plant infrastructure. The 2021-2025 Capital Improvement Program includes expenditures of $133.1 million, with $19.3 million allocated in FY 2021. Approximately 64 percent of expenditures within this fund are reimbursed by five contrib- uting partner agencies (Cities of Mountain View and Los Altos, Town of Los Altos Hills, Stanford University, and East Palo Alto Sanitary District). Many of the Plant’s major systems are reaching the end of their useful life and new technology for systems such as advanced water purification, TRANSMITTAL LETTER TRANSMITTAL LETTER • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET XIX and secondary treatment upgrades are available and need to be integrated into the Plant while older systems are phased out. Staff has been exploring funding options for low interest state revolving fund loans or revenue bonds to mitigate the costs to the City and partner agencies for these large infrastructure investments. Internal Service Fund Capital Improvement Projects Internal Service Funds account for activity that provides goods or services to other funds, departments, or agencies within the City. Of the City’s Internal Service Funds, the Technology Fund and Vehicle Replacement and Maintenance Fund have capital projects budgeted throughout the 2021-2025 Capital Improvement Program. The Technology Fund has a total 2021-2025 budget of $4.2 million ($3.8 million in FY 2021), and the Vehicle Replacement Fund has a total 2021-2025 budget of $20.1 million ($7.5 million in FY 2021). Technology Fund Technology Fund projects enhance service delivery to the community and to City staff through efficient and effective implementation of information technology solutions. Of the $3.8 million in funding for FY 2021, $2.8 million is recommended to be reappropriated from FY 2020 for continuation of the projects in FY 2021. Vehicle Replacement Fund Vehicle Replacement and Maintenance Projects provide funding for maintaining and replacing City vehicles and heavy equipment to ensure safe, reliable, and efficient use of resources. Of the $7.5 million in funding for FY 2021, $4.2 million is recommended to be reappropriated from FY 2020 for continuation of the projects in FY 2021. To maintain a regular replacement schedule efficiently, staff has been standardizing the process for determining the replacement value and timing. There is one new project programmed for vehicle replacements scheduled in 2025 in the 2021-2025 CIP under the Vehicle and Equipment Replacement category: Scheduled Vehicle and Equipment Replacement-Fiscal Year 2025 (VR-25000) - FY 2021: $0.0 million; 2021-2025 CIP: $3.1 million •CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 1 Fiscal Year 2021 Proposed Capital Budget City Council Adrian Fine, Mayor Tom DuBois, Vice Mayor Alison Cormack Eric Filseth Liz Kniss Lydia Kou Greg Tanaka Ed Shikada, City Manager Kiely Nose, Director of Administrative Services/Chief Financial Officer David Ramberg, Assistant Director of Administrative Services Christine Paras, Assistant Director of Administrative Services Paul Harper, Budget Manager, Office of Management and Budget Greg Tanaka, Finance Committee Chair 2 • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET City of Palo Alto The government of the City of Palo Alto exists to promote and sustain a superior quality of life in Palo Alto. In partnership with our community, our goal is to deliver cost-effective services in a personal, responsive and innovative manner. CITY OF PALO ALTO The government of the City of Palo Alto exists to promote and sustain a superior quality of life in Palo Alto. In partnership with our community, our goal is to deliver cost-effective services in a personal, responsive and innovative manner. Our Values Quality Superior delivery of services Courtesy Providing service with respect and concern Efficiency Productive, effective use of resources Integrity Straight-forward, honest and fair relations Innovation Excellence in creative thought and implementation CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 3 TABLE OF CTable of Contents TABLE OF CONTENTS TABLE OF CONTENTS • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 5 TABLE OF CONTENTS I Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Budget Acknowledgments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 CIP Organizational Chart. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 The Budget Process and Document . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Budget Award . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25 II Financial Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27 Summary of CIP Program Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29 Summary Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35 Debt Policy and Obligations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43 III Capital Fund Projects. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 Capital Improvement Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .53 Buildings and Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .73 Americans With Disabilities Act Compliance. . . . . . . . . . . . . . . . . . . . . . . . . . . . .74 Animal Shelter Renovation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .76 Baylands Boardwalk Improvements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .78 Baylands Flood Protection Levee Improvements. . . . . . . . . . . . . . . . . . . . . . . . 80 Building Systems Improvements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .82 City Facilities Assessment and Record Plan Management System . . . . . . . . .86 City Facility Parking Lot Maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .88 City Hall Space Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90 Civic Center Electrical Upgrade & EV Charger Installation. . . . . . . . . . . . . . . . .92 Civic Center Fire Life Safety Upgrades . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .94 Civic Center Waterproofing Study and Repairs . . . . . . . . . . . . . . . . . . . . . . . . . .96 Facility Interior Finishes Replacement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .98 Fire Station 4 Replacement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .100 High and Bryant Street Garages Waterproofing and Repairs . . . . . . . . . . . . . 102 JMZ Renovation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .104 Library Automated Material Handling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .106 Municipal Service Center A, B, & C Roof Replacement . . . . . . . . . . . . . . . . . . .108 Municipal Service Center Lighting, Mechanical, and Electrical Improvements . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110 New Downtown Parking Garage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114 New Public Safety Building . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .118 Performing Arts Venues Seat Replacement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122 Roofing Replacement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124 Roth Building Maintenance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126 TABLE OF CONTENTS 6 TABLE OF CONTENTS • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET University Avenue Parking Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128 Ventura Buildings Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130 Water, Gas, Wastewater Office Remodel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132 Department Technology Upgrades and Improvements . . . . . . . . . . . . . . . . . . . . . 135 Automated External Defibrillator Replacement . . . . . . . . . . . . . . . . . . . . . . . . . 136 Extrication Tool Replacement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138 Police Video Recording Systems Replacement. . . . . . . . . . . . . . . . . . . . . . . . . .140 Self-Contained Breathing Apparatus (SCBA) Air Compressor Replacement . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142 Parks and Open Space . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145 Art In Public Spaces . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146 Athletic Courts Resurfacing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148 Baylands Athletic Center 10.5 Acre Expansion Plan. . . . . . . . . . . . . . . . . . . . . . 150 Baylands Comprehensive Conservation Plan. . . . . . . . . . . . . . . . . . . . . . . . . . . . 152 Baylands Levee Repair for Public Safety Access . . . . . . . . . . . . . . . . . . . . . . . . 154 Benches, Signage, Walkways, Perimeter Landscaping, and Site Amenities. 156 Bol Park Improvements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158 Boulware Park Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .160 Byxbee Park Completion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162 Cameron Park Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164 Dog Park Installation and Renovation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166 Foothills Park Boronda Lake Dock Replacement . . . . . . . . . . . . . . . . . . . . . . . . 168 Foothills Park Improvement Project. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170 Foothills Park, Pearson Arastradero Preserve, and Esther Clark Park Conserva- tion Plan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172 Golf Course Net and Artificial Turf Replacement . . . . . . . . . . . . . . . . . . . . . . . . 174 Heritage Park Site Amenities Replacement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176 Hoover Park Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178 Johnson Park Renovation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .180 Magical Bridge Playground Rubber and Synthetic Turf Resurfacing. . . . . . . 182 Mitchell Park Improvements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 184 Off-Road Pathway Resurfacing And Repair. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 186 Open Space Lakes And Pond Maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 188 Open Space Trails and Amenities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .190 Park and Open Space Emergency Repairs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192 Park Restroom Installation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194 Pearson Arastradero Improvement Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196 Pearson Arastradero Preserve Parking Lot Improvement . . . . . . . . . . . . . . . . 198 TABLE OF CONTENTS TABLE OF CONTENTS • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 7 Peers Park Improvements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200 Rinconada Park Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 202 Robles Park Improvements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206 Seale Park Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 208 Turf Management Plan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210 Werry Park Playground Improvements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 212 Streets and Sidewalks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215 City Bridge Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 216 Curb and Gutter Repairs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218 El Camino Median Landscape Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . 220 Newell Road/San Francisquito Creek Bridge Replacement. . . . . . . . . . . . . . .222 Sidewalk Repairs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .226 Sign Reflectivity Upgrade. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .228 Street Lights Condition Assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 230 Street Lights Improvements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .232 Street Maintenance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 234 Thermoplastic Lane Marking and Striping . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .238 Traffic and Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 241 Bicycle and Pedestrian Transportation Plan Implementation . . . . . . . . . . . . .242 Charleston/Arastradero Corridor Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 244 Churchill Avenue Enhanced Bikeway. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 248 Churchill Avenue/Alma Street Railroad Crossing Safety Improvements . . 250 Downtown Automated Parking Guidance Systems, Access Controls & Reve- nue Collection Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .252 El Camino Real Pedestrian Safety and Streetscape Project. . . . . . . . . . . . . . .254 Embarcadero Road at El Camino Improvements . . . . . . . . . . . . . . . . . . . . . . . .256 Highway 101 Pedestrian/Bicycle Overpass Project. . . . . . . . . . . . . . . . . . . . . . .258 Parking District Implementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .262 Parking Management and System Implementation . . . . . . . . . . . . . . . . . . . . . 264 Quarry Road Improvements and Transit Center Access. . . . . . . . . . . . . . . . . 266 Railroad Grade Separation and Safety Improvements . . . . . . . . . . . . . . . . . . 270 Safe Routes To School. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .274 Traffic Signal and Intelligent Transportation Systems. . . . . . . . . . . . . . . . . . . .276 Transportation and Parking Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . .278 Administration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 281 Capital Improvement Fund Administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . .282 Cubberley Property Infrastructure Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .285 TABLE OF CONTENTS 8 TABLE OF CONTENTS • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Buildings and Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 289 Cubberley Building Management Systems. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 290 Cubberley Repairs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .292 Cubberley Roof Replacements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 294 Parks and Open Space . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .297 Cubberley Field Restroom . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 298 IV Enterprise Fund Projects. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 301 Airport Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .303 Airport Apron, Runways, and Taxiways . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 309 Airfield Electrical Improvements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .310 Airport Apron Reconstruction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 312 Runway and Taxiway Reconstruction and Drainage Improvements . . . . . . . 316 Airport Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .319 Airport Layout Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 320 Automated Weather Observation System (AWOS) . . . . . . . . . . . . . . . . . . . . .322 Electric Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .325 Customer Connections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .333 Electric Customer Connections. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 334 System Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .337 230 kV Electric Intertie . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .338 Capacitor Bank Installation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 340 Coleridge/Cowper/Tennyson 4/12kV Conversion . . . . . . . . . . . . . . . . . . . . . . 342 Colorado Power Station Equipment Upgrades . . . . . . . . . . . . . . . . . . . . . . . . . 344 Colorado Substation Site Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 346 Colorado/Hopkins System Improvement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 348 Communications System Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 350 East Meadow Circles 4/12kV Conversion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .352 Edgewood/Wildwood 4kV Tie . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 354 Electric System Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .356 Electric Utility Geographic Information System . . . . . . . . . . . . . . . . . . . . . . . . .358 Foothills Rebuild (Fire Mitigation) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 360 Hopkins Substation 4/12kV Conversion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 364 Inter-substation Line Protection Relay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 366 Rebuild Underground District 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 368 Rebuild Underground District 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 370 Rebuild Underground District 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .372 Rebuild Underground District 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 374 TABLE OF CONTENTS TABLE OF CONTENTS • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 9 Rebuild Underground District 26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .376 Rebuild Underground District 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .378 Relocate Quarry/Hopkins Substation 60kV Line (A & B) . . . . . . . . . . . . . . . . 380 SCADA System Upgrades . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .382 Smart Grid Technology Installation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 384 Substation 60kV Breaker Replacement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 388 Substation Facility Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 390 Substation Physical Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .392 Substation Protection Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 394 Underground System Rebuild . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 396 Utility Site Security Improvements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 398 Wood Pole Replacement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400 Undergrounding Projects. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 403 Underground District 42 - Embarcadero Road, Emerson, Middlefield. . . . . 404 Underground District 43 - Alma/Embarcadero. . . . . . . . . . . . . . . . . . . . . . . . . 406 Fiber Optics Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 409 Capacity Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 413 Fiber Optics Network - System Improvements. . . . . . . . . . . . . . . . . . . . . . . . . . 414 Fiber Optics Network - System Rebuild . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 416 Customer Connections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 419 Fiber Optics Customer Connections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 420 Gas Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .423 Customer Connections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 429 Gas System, Customer Connections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 430 Gas Main Replacements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 433 Gas Main Replacement - Project 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 434 Gas Main Replacement - Project 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 436 Gas Main Replacement - Project 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 438 System Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 441 Gas Distribution System Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 442 Gas Equipment and Tools. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 444 Gas Meters and Regulators. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 446 Stormwater Management Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 449 Capacity Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 453 Corporation Way System Upgrades and Pump Station . . . . . . . . . . . . . . . . . 454 East Meadow Drive System Upgrades. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 456 Louis Road System Upgrades . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 458 TABLE OF CONTENTS 10 TABLE OF CONTENTS • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET West Bayshore Road Pump Station. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 460 West Bayshore Road Trunk Line Improvements. . . . . . . . . . . . . . . . . . . . . . . . 462 System Rehabilitation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 465 Storm Drainage System Replacement And Rehabilitation. . . . . . . . . . . . . . . 466 Wastewater Collection Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 469 Customer Connections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 473 Sewer System, Customer Connections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 474 System Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .477 Sewer Lateral/Manhole Rehabilitation and Replacement. . . . . . . . . . . . . . . . 478 Wastewater Collection System Rehabilitation/Augmentation Project 29 . 480 Wastewater Collection System Rehabilitation/Augmentation Project 30 . 482 Wastewater Collection System Rehabilitation/Augmentation Project 31. . 484 Wastewater Collection System Rehabilitation/Augmentation Project 32 . 486 Wastewater General Equipment and Tools . . . . . . . . . . . . . . . . . . . . . . . . . . . . 488 Wastewater System Improvements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 490 Wastewater Treatment Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .493 Buildings and Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 499 New Laboratory And Environmental Services Building . . . . . . . . . . . . . . . . . 500 System Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 503 Advanced Water Purification Facility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 504 Headworks Facility Replacement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 506 Outfall Line Construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 508 Plant Repair, Retrofit, and Equipment Replacement . . . . . . . . . . . . . . . . . . . . . 510 Primary Sedimentation Tank Rehabilitation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 512 Secondary Treatment Upgrades. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 514 Water Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 517 Customer Connections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .523 Water System Customer Connections. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .524 System Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .527 Mayfield Reservoir Subgrade and Venting Repair . . . . . . . . . . . . . . . . . . . . . . .528 Water Distribution System Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 530 Water General Equipment/Tools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .532 Water Meters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 534 Water Recycling Facilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .536 Water Regulation Station Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 540 Water Service and Hydrant Replacement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .542 Water System Supply Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 544 TABLE OF CONTENTS TABLE OF CONTENTS • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 11 Water Tank Seismic Upgrade and Rehabilitation . . . . . . . . . . . . . . . . . . . . . . . 546 Water, Gas, Wastewater Utility GIS Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 548 Water Main Replacements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 551 Water Main Replacement - Project 27. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .552 Water Main Replacement - Project 28. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 554 Water Main Replacement - Project 29. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .556 Water Main Replacement - Project 30. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .558 V Internal Service Fund Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 561 Technology Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .563 Citywide Technology Upgrades and Improvements . . . . . . . . . . . . . . . . . . . . . . . 569 City Council Chambers Upgrade. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 570 Enterprise Resource Planning Upgrade. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .574 Infrastructure Management System. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .578 IT Disaster Recovery Plan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 580 Radio Infrastructure Replacement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .582 Department Technology Upgrades and Improvements . . . . . . . . . . . . . . . . . . . . .585 Development Center Blueprint Technology Enhancements . . . . . . . . . . . . . 586 Public Safety Records Management System Replacement . . . . . . . . . . . . . . 588 Utilities Customer Bill System Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . 590 Vehicle Replacement Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .593 Vehicle and Equipment Replacement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 599 Emergency Repair and Replacement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 600 Scheduled Vehicle and Equipment Replacement - Fiscal Year 2018 . . . . . . 602 Scheduled Vehicle and Equipment Replacement - Fiscal Year 2019 . . . . . . 604 Scheduled Vehicle and Equipment Replacement - Fiscal Year 2020 . . . . . 606 Scheduled Vehicle and Equipment Replacement - Fiscal Year 2021 . . . . . . 608 Scheduled Vehicle and Equipment Replacement - Fiscal Year 2022. . . . . . .610 Scheduled Vehicle and Equipment Replacement - Fiscal Year 2023. . . . . . . 612 Scheduled Vehicle and Equipment Replacement - Fiscal Year 2024 . . . . . . 614 Scheduled Vehicle and Equipment Replacement - Fiscal Year 2025. . . . . . . 616 VI Supplemental Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 619 Glossary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .621 Project Name Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .625 Project Number Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 629 Americans with Disabilities Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 633 CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 13 INTRODUCTION Introduction BUDGET ACKNOWLEDGMENTS BUDGET ACKNOWLEDGMENTS • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 15 BUDGET ACKNOWLEDGMENTS Budget Acknowledgments Budget Acknowledgments Department Budget Coordinators Community Services Lam Do Jazmin LeBlanc Fire Amber Cameron Information Technology Sherrie Wong City Manager/Office of Transportation Chantal Gaines Elizabeth Egli Chitra Moitra (Special Assistance) Judy Ng Police Eric Jensen Public Works Michelle Austin Maybo AuYeung Dinaa Alcocer (Special Assistance) Jamie Allen (Special Assistance) Holly Boyd (Special Assistance) Loretta Olmos (Special Assistance) Utilities Anna Vuong Dave Yuan (Special Assistance) Office of Management and Budget Kiely Nose Christine Paras Paul Harper Jessie Deschamps Steve Guagliardo Alexandra Harris Chaitali Paliwal Jamie Perez Kayla Shapiro Capital Improvement Plan Review Committee Ed Shikada Brad Eggleston Kiely Nose Paul Harper CIP ORGANIZAT CIP Organizational Chart CIP ORGANIZATIONAL CHART 16 CIP ORGANIZATIONAL CHART • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 0.45-Asst Director Util Engineeringƫ 0.10-Cathodic Protection Tech. Asstƫ 0.10-Cathodic Technician 0.35-Contracts Administrator ā.Ć0-Electric Assistantƫ ĀċĉĊġ(!0.%ƫ!25ƫ-1%,)!*0ƫ ,!.0+. āċĂĉ-Electric .+&!0ƫ*#%*!!.ƫ ā.ăĈ-Electric * !.#.+1* ƫ */,!0+.ƫ 0.āĉ-Elec Underground InspectorġLeadƫ ĂċĉĊ-Engineer Ā.ćĀ-Engineering Technician III ĀċĂĆƫ/ƫ* ƫ0!.ƫ !0!.ƫ !/1.!)!*0ƫ+*0.+(ƫ!$*%%* ĂċĆĂġ!25ƫ-1%,ƫ,!.ĥ */0((ƫ!,ƫ āċĈĀ-Inspector, Field Services ăċĊă-Lineperson/Cable Sp!%(%/0ƫ 2.Ćą-Lineperson/Cable Sp!%(%/0ġLeadƫ 0.Āĉ-Metering Technician 0.05-Metering TechnicianġLead āċĀĀ-OverheadĥU* !.#.+1* Troubleman Total: ăĀċĈĈƫ Total: ĆĀċĆāƫ CUBBERLEYƫģƫĀċāĆƫ 0.ĀĆ-Projec0ƫManagerƫ 0.10-Senior Engineerƫ STREETS — ćċĆăƫ 0.25-Admin%/0.0%2! Associate IIIƫ 0.1Ă-Assistant Directorƫ 1.ĈĊ-Assoc%0! Engineerƫ ĀċāĆƫ++. %*0+.ƫ1(%ƫ+.'/ƫ.+&!0/ƫ 0.23-Engineer 0.6ĉ- Inspector, Field S!.v%c!/ƫ 0.30-Management Analyst āċāĊġ.+&!0ƫ*#%*!!.ƫ ĀċāĆġ.+&!0ƫ *#!.ƫ ĀċćĊġ!*%+.ƫ*#%*!!. Āċąăġ1,2ƫ */,!0+.ĥ1.2!5+.ƫƫ ĀċĆĆġ1.2!5+. PARKS AND LANDSCAPE — 3.ĂĂƫ 0.25-Admin%/0.0%2! Associate III 0.1Ă-Assistant Director 0.ą0-Engineer 0.90-*/,!ƫArchitect/Park Plannerƫ 0.20-Management Analyst 0.ąĀ-Project Engineer ĀċāĆġ.+&!0ƫ *#!. 0.ĉ0-Senior Project Manager SIDEWALKƫģƫăċĊą 0.1Ă-Assistant Director ĀċĂĀġ//+%0!ƫ*#%*!!. 0.74-Cement Finish!.ġ! āċĀĀġ*#%*!!. ĀċĆăġ */,!0+.Čƫ%!( ƫ!.2%!/ 0.50-Manager Maintenance Operations ĀċĂĆġ.+&!0ƫ*#%*!!.ƫ ĀċĂĀġ.+&!0ƫ *#!.ƫ ĀċĂĀġ!*%+.ƫ*#%*!!.ƫ ĀċĂĀġ1,2ƫ */,!0+.ĥ1.2!5+.ƫƫ STRUCTURES ƫƫģƫāĀċăāƫ ĀċĉĀġ )%*%/0.0%2!ƫ//+%0!ƫ ĀċăĊġ )%*%/0.0%2!ƫ//+%0!ƫ 0.ăć-Assistant Directorƫ āċąĈ-Engineer ĀċĆĀġ*#%*!!.%*#ƫ!$*%%*ƫ ĀċāĀġ%(%0%!/ƫ *#!.ƫ 0.Ă9-Management Analystƫ ĀċāĆġ *#!.ƫ %*0!**!ƫ ,!.0%+*/ ąċăĀ-Project Engineerƫ ĀċĆĆġ.+&!0ƫ *#!.ƫ 1.Ă0-Senior Engineerƫ ĀċĂĀġ!*%+.ƫ.+&!0ƫ *#!. STORMƫ — 2.1Ĉƫ 0.10-Admin%/0.0%2! Assoc%0! I 0.10-Admin%/0.0%2! Assoc%0! III 0.ĉ0-Engineer 0.10-Management Analystƫ 0.65-Project Engineer 0.30-Senior Engineer ĀċāĂġ1.2!5+. ƫƫƫƫƫVEHICLE ƫģ ĂċąĀƫ 0.15-Assistant Fleet Managerƫ 0.25-Fleet Manager 0.ăĀ-Fleet Service Coord%*0+.ƫ ĀċĆĀġ *#!)!*0ƫ//%/0*0 0.10-Motor Equip)!*0 Mech*%–Leadƫ 0.60-Motor Equip)!*0 Mech*% IIƫ 0.5Ā-Project Manage. WASTEWATER TREATMENTƫ— ā.30ƫ 0.10-Assistant Manager, WQCPƫ ā.20-Senior Engineer ƫģƫĀċĈĆ 0.ĂĆ-%(%0%!/ƫ!$*%%* ĀċĆĀġ *#!.ƫ %*0!**!ƫ,!.0%+*/ Āċăă-Power Engineer Ăċćă-Project Engineer 0.Ćā-SCADA Technologist 3.ăć-Senior Electrical Engineerƫ ĂċąĂ-Senior Engineer 0.30-St Light/Traffic/Fiber Tech ĀċĂĀġ0ƫ%#$0ĥ.""%ĥ%!.ġ! ƫƫ āċăĂ-Substation Electrician 0.Ćć-Substation ElectricianġLeadƫ 0.Ĉć-Sup Electrician Project Engineerƫƫ ąċĂĆ-Utility Engineer Estimator Āċāąġ0%(%05ƫ */0((ƫ!,%.ġ! ġƫ !( %*#ƫ!.0%"%! ĀċĆą-Utility Install Rep%.ġ!( %*#ƫ !.0%"%! ăċĈĆƫ0%(%05ƫ */0((ĥ!,%. ĀċĆąġ0%(%05ƫ */0((ƫ!,%.ƫ//%/0*0ƫ 2.āă-Utility Install Rep%.ġLead 0.76-Utility Locator Ă.19-Utility Supervisor ĀċćĂ-Water Systems Operatorƫ āċąĂƫƫ!25ƫ-1%,)!*0ƫ,!.0+. %05ƫ *#!.ĥ""%!ƫ+"ƫ .*/,+.00%+*ƫ Managed Projects Public Works Managed Projects Utilities Managed Projects Community Services Managed Projects Administrative Services Managed Projects ĀċāĆġ )%*%/0.0%2!ƫ//%/0*0 ĀċăĀġ//+%0!ƫ(**!. ĀċĆĀġ//+%0!ƫ*#%*!!. ĀċăĀġ$%!"ƫ.*/,+.00%+*ƫ""%%(ƫ ĀċāĆġ++. %*0+.ƫ1(%ƫ+.'/ƫ.+&!0/ƫ 0.ĈĆ-Coordinator Transp+00%+* Systems ĀċāĆġ *#!)!*0ƫ*(5/0 ĀċąĀġ.'%*#ƫ,!.0%+*/ġ! āċąĆġ.+&!0ƫ*#%*!!. 0.ĀĆ-P.+&!0 Manager ĀċĉĀƫ!*%+.ƫ*#%*!!. 0.ĆĀ-Senior (**!. ĀċĆĆġ.""%ƫ*#%*!!.%*#ġ! ĀċăĆġ.*/,+.00%+*ƫ(**%*#ƫ *#!. 0.6Ā-Contracts Administrator ĀċćĀġ!*%+.ƫ *#!)!*0ƫ*(5/0 1.00-Coordinator Public Works Pr+j!0/ +0(čƫćċąĀƫ +0(čƫāċĀĀƫ +0(čƫāċĂĀƫ FY 20ĂāƫPOSITION TOTALSƫƫ )%*%/0.0%2!ƫ!.2%!/ƫġƫāċĂĀƫ +))1*%05ƫ!.2%!/ƫġƫāċĀĀƫ ""%!ƫ+"ƫ.*/,+.00%+*ƫġƫćċąĀƫ 1blic Works - ăĀċĈĈ ƫƫUtilities - ĆĀċĆā +0(ƫ1((ġ%)!ƫġƫĉĊċĉĉ THE BUDGET PROCESS AND DOCUMENT THE BUDGET PROCESS AND DOCUMENT • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 17 THE BUDGET PROCESS AND DOCUMENT The Budget Process and Document Capital Budget and Five-Year Capital Improvement Plan The annual capital budget and five-year Capital Improvement Plan (CIP) is a spending plan for the City's infrastructure needs, which is based on the City Council priorities listed below. The City Council approved multi-year funding plans, such as the infrastructure keep-up and catch- up plan recommended by the Infrastructure Blue Ribbon Commission (December 2011), as well as the City Council 2014 Infrastructure Plan (June 2014). The review of the capital budget and five-year CIP is structured around public hearings conducted prior to City Council adoption. City Council Top Priorities At the start of the City's budget process, the City Council determines its main priorities for the upcoming budget period. The priorities guide both budget development and department prior- ity-setting. The public has the opportunity to provide input into this process as well as during the budget review by the Finance Committee. The following are the City Council’s Top Priorities for 2020, adopted in February 2020: Housing Sustainability Mobility Budget Preparation The City's annual budget process begins in September with the development of the base bud- get and concludes in August with the release of the adopted budget. The operating and capital budgets are developed on behalf of the City Manager, in consultation with senior management and the Director of Administrative Services, by the Administrative Services Department’s Office of Management and Budget (OMB) utilizing six main sources of information: The City Council’s top priorities and other City Council directives, such as the 2014 Infrastructure Plan Organizational financial status and budgetary guidelines Service level and infrastructure prioritization, as identified by the City Manager Community input (e.g. Infrastructure Blue Ribbon Commission) The City’s policies regarding land use and community design, transportation, housing, natural environment, business, and economics, as outlined in the Comprehensive Plan. THE BUDGET PROCESS AND DOCUMENT 18 THE BUDGET PROCESS AND DOCUMENT • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Capital Budget Calendar SEPTEMBER The capital budget process begins with the preparation of the capital budget guidelines and calendar by the Administrative Services Department’s Office of Management and Budget (OMB). The budget guidelines are then distributed to all departments. OCTOBER/NOVEMBER Departments review the prior year five-year CIP. Based on the previously outlined information sources, changes to the prior year budgets are developed by the respective departments man- aging the City’s infrastructure assets: Utilities, Information Technology, Community Services, Public Works, Office of Transportation, and Administrative Services. Changes to the CIP might include: addition of new projects, deletion of planned projects, reprioritization of planned proj- ects, alternative funding strategies, and revision of project costs or timelines. Revisions of proj- ect costs reflect a review of potential variables such as, but not limited to, revised construction estimates, annual Consumer Price Index (CPI) increases, and known contractual increased costs. DECEMBER/JANUARY Departments submit capital infrastructure funding requests to the OMB. For General Fund funded project requests, OMB, in conjunction with Public Works, prepares an initial prioritization of requests based on the previously outlined information sources for consideration by the Gen- eral Fund CIP Review Committee consisting of senior managers in Public Works, Community Services, Administrative Services, and the Office of Transportation. JANUARY/FEBRUARY The General Fund CIP Committee reviews the General Fund capital budget submissions to ensure that the proposed projects align with the City Council’s Top Priorities and other City Council directives, can be funded with available resources, and are aligned in the five-year plan to maximize City resources. MARCH The City Manager reviews and makes final decisions on the proposed capital budget and five- year Capital Improvement Program. APRIL/MAY Staff solicits input from the Planning and Transportation Commission on the proposed CIP, which reviews the CIP as it relates to the Comprehensive Plan. Comments from the PTC and staff response to comments from the PTC are reported during the public budget hearings. MAY/JUNE The City Manager releases and presents the proposed CIP to the City Council and posts the budget documents on the City’s website. Through a series of public hearings the budget is dis- cussed and amendments are proposed. Final adoption occurs at a public hearing in June. All changes made during the public hearings are incorporated into the adopted budget document, which is distributed to City libraries and posted on the City's website. THE BUDGET PROCESS AND DOCUMENT THE BUDGET PROCESS AND DOCUMENT • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 19 Capital Project Criteria The following are criteria for qualification as a capital project: Must have a minimum cost of $50,000 for each stand-alone unit or combined project. Must have a useful life of at least five to seven years (the purchase or project will still be functioning and not be obsolete at least five to seven years after implementation). Must extend the life of an existing asset or provide a new functional use for an existing asset for at least five years, for example extensive roof rehabilitations. These improvements are distinguished from ongoing maintenance work that may extend the life of the asset but is done on a routine basis. Project Prioritization Selection Criteria As part of developing the capital budget, staff must prioritize how to allocate limited resources over a variety of competing needs and demands. Projects and funding levels are prioritized uti- lizing several criteria, including: City Council priorities; Alignment with the City’s Infrastructure Blue Ribbon Commission (IBRC) report and Infrastructure Plan; Health and safety implications; Historical spending levels; and Certainty over the feasibility, scope, and level of resources required. In addition to the criteria outlined above, the prioritization of Enterprise Fund CIP projects is determined by the department that manages the Enterprise Fund, and planned using several more factors such as the department's operational needs, funding availability, CIP strategic plan, oversight committee direction, and specific City Council direction. Continuing Projects A change to the mechanism for previously approved projects that are continuing into the new fiscal year was approved during Fiscal Year 2015. Previously, unspent funding for capital proj- ects carried forward automatically from one year to the next as long as funds were spent within a two-year period. In September 2014, the City Council approved an amendment to Municipal Code Section 2.28.090, eliminating the provision allowing for the “reappropriations.” Continuing with this process that became effective with the FY 2016 Capital Budget, City Council authori- zation is required for funds to be carried forward from one fiscal year to the next. There are several opportunities for departments to request funds to be carried over from one fiscal year to the next. First, departments have the opportunity to request funds to be carried over from one year to the next through the budget process. By estimating lower than budgeted expenditures in the current year, funds not anticipated to be spent in the current year but still required for the completion of the project are reflected in the first year of the five-year CIP. The Fund Narrative for each fund indicates the total amount of reappropriations included in this budget. Additionally, as part of the year-end closing actions, anticipated to be brought forward for City Council approval in the Fall, all projects will be reviewed to determine if additional adjustments to reappropriations are required. THE BUDGET PROCESS AND DOCUMENT 20 THE BUDGET PROCESS AND DOCUMENT • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Operating Budget Impact The City uses the life cycle costing principle in planning for capital projects. All costs associated with a capital project, including operations and maintenance, will be included in the operating budget at the time of release of the applicable annual operating budget. Where applicable, the CIP budget document identifies the amount of operating expense associated with the project. Changes to the Adopted Budget Administrative policies and the Palo Alto Municipal Code provide guidelines on budget trans- fers, the authorization necessary to implement transfers, and appropriations after the budget is adopted. Budget Amendment This is an adjustment to the total project appropriated amount which was not included in the original adopted budget. These supplemental appropriations are presented to City Council in an agenda report and must be approved by the City Council. Reasons for initiating a Budget Amendment include: Recognizing unanticipated revenue, which was not projected in the budget, and appropriating related expenditure in the year received (requires 2/3 City Council approval) Changes in scope of work Higher than estimated costs Adding new projects to the budget due to an urgent need or City Council direction Budgetary Basis The budget is prepared in accordance with Generally Accepted Accounting Principles. The bud- get for governmental funds has been prepared on a modified accrual basis. The modified accrual basis recognizes expenditures when the related fund liability is incurred. Revenues are recognized when they become both measurable and available. “Measurable” means the amount of the transaction can be determined and “available” means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Fund Structure and Accounting Basis The accounts of the City are made up of funds that help organize and account for restricted resources. A fund is defined as a fiscal and accounting entity with a self-balancing set of accounts (comprised of assets, liabilities, fund equity, revenues, and expenditures), which are segregated for the purpose of carrying out specific activities or attaining certain objectives in accordance with regulatory requirements. The City has the following fund type categories: Governmental Fund Types The Governmental Funds include the General, Special Revenue, Debt Service, and Capital Proj- ect Funds. Governmental Funds are reported using the current financial resources measure- ment focus and the modified accrual basis of accounting. THE BUDGET PROCESS AND DOCUMENT THE BUDGET PROCESS AND DOCUMENT • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 21 Proprietary Fund Types The Proprietary Funds, which include the Enterprise and Internal Service Funds, are used to account for the City's business-type activities. Proprietary funds are reported using the eco- nomic resources measurement focus and the full accrual basis of accounting. Revenues are recorded when earned, and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Fiduciary Fund Types The Fiduciary Funds account for assets held by the City in trust or as an agent for various assessment and community facilities districts. The City budget process does not include fidu- ciary funds. Agency Fund Types The Agency Funds are custodial in nature and do not involve measurement of results of opera- tions. The City maintains three agency funds. The City budget process does not include agency funds. Document Layout The Capital Budget document provides readers with cost estimates, methods of financing, and project schedules for the City of Palo Alto's CIP for the next five years as well as estimates for current year activity. The document is organized by fund with each fund section containing the following elements: Capital Projects Fund Overview: A narrative for every fund is included in this document, which includes historical expenditure levels, budget comparisons to prior years, a summary of the infrastructure related to that particular fund, and a discussion of major capital projects grouped by category. Additionally, this section includes statistical information regarding the program such as miles of gas mains or number of vehicles in the City fleet. Project Detail Pages: After each fund summary, the reader finds information for each capital project, both recurring and non-recurring projects. The project pages include information regarding the project completion schedules (initial and revised), descriptions, justifications, a summary of significant changes to the cost or schedule of a project, revenue and expense infor- mation by fiscal year, and operating budget impacts for each project. This allows for the total cost of a project to be detailed. The information in the project detail pages is discussed further below. Project Maps: For the Adopted Capital Improvement Fund and the various Enterprise Funds, a map is included which shows the location of projects, for projects that have a singular defined location. At the end of the document, the reader will find a Glossary which defines frequently used terms. THE BUDGET PROCESS AND DOCUMENT 22 THE BUDGET PROCESS AND DOCUMENT • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Understanding the Details Project Numbering Sequence The project number contains seven charac- ters. The first two are letters related to the managing department or fund. The next two digits relate to the fiscal year in which the project first received funding or was identi- fied. The final three numbers are system- generated. For example, with project PE- 17006, the “PE” denotes Public Works Engi- neering, the “17” indicates Fiscal Year 2017 funding, and the “006” is the sequential project number. The “Managing Department or Fund” table can be used as a reference for the two-character alpha portion of the project number. Project Information The project detail pages include the follow- ing information: Fund – refers to the fund where the project is budgeted. Category – describes the type of activity that the project aligns to within the fund. A table at the end of this section provides a summary of the categories assigned to the various funds. Project Location – describes the location or area that will be improved as a result of the project. Managing Department – refers to the department or office that is responsible for the delivery of the project. IBRC Reference – refers to nomenclature devised by the Infrastructure Blue Ribbon Commission (IBRC) for certain General Fund projects; “keep-up” refers to projects which address the annual maintenance of existing infrastructure; “catch-up” refers to projects which address deferred maintenance needs; “new” refers to projects which address needs not identified by “keep-up” or “catch-up.” This category only applies to General Fund projects after the release of the Final IBRC report in 2011. Initial/Revised Project Start/Completion – indicates what the initial schedule for the project was, as well as any subsequent changes. Project Description – provides the scope of work for the project. Project Justification – outlines the reasons why funding is required. PROJECT CODE MANAGING DEPARTMENT OR FUND AC Arts & Culture AP Airport Fund AS Administrative Services CB Cubberley Fund EL Electric Fund FD Fire Department FO Fiber Optics Fund GS Gas Fund LB Library OS Open Space PD Police Department PE Public Works Engineering PF Public Works Facilities PG Parks & Golf Course PL City Manager/Office of Trans- portation PO Public Works Operations SD Stormwater Management Fund TE Technology Fund VR Vehicle Fund WC Wastewater Collection Fund WQ Wastewater Treatment Fund WS Water Fund THE BUDGET PROCESS AND DOCUMENT THE BUDGET PROCESS AND DOCUMENT • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 23 Supplemental Information – provides additional information that may enhance the project description and justification. Significant Changes – provides an explanation of the changes to the initial schedule or budget for a project. Funding Sources Schedule – outlines the sources of funding for the project by fiscal year. Gen- erally projects are not funded by a particular grant, fee, or transfer, but in instances where they are, these sources are indicated. In most cases, this section indicates the amount that the fund where the project is budgeted will contribute towards the project. This table also includes prior year revenues, a current year estimate, anticipated revenue beyond the five years of the CIP, and total revenue for the project. Expenditure Schedule – outlines the projected costs, by year for each project. Costs are broken into phases, such as design and construction, to indicate how the funds will be spent each year. Where applicable, salary and benefit estimates are included in the individual phases for a proj- ect, rather than reflected separately as in prior years. Salary and benefit costs are estimated for all five years of the CIP. In prior years, salary and benefit costs were reflected within the project for the first year of the CIP only. This table also includes prior year expenditures, a current year estimate, anticipated expenditures beyond the five years of the CIP, and the total cost of the project. Operating Impacts – describes estimated annual maintenance and operating costs associated with the project. Efforts have been made to include the operating cost impacts wherever possi- ble. Maintenance costs include utilities, equipment maintenance or service, facilities mainte- nance or service, grounds/landscape maintenance or service, custodial maintenance and others. Relationship to Comprehensive Plan – indicates how the project furthers the implementation of the Comprehensive Plan, citing specific Comprehensive Plan policies and programs. In instances where a secondary relationship to the Comprehensive Plan exists, this is notated as well. Potential Board/Commission Review – City Council-appointed advisory board, commission or ad hoc committee that has oversight responsibility on a project. A project may be reviewed by more than one board or commission. This body (bodies) provides the City Council input as to the merits of a project. Environmental Impact Analysis – indicates the California Environmental Quality Act (CEQA) sta- tus of the project and LEED status, if applicable. THE BUDGET PROCESS AND DOCUMENT 24 THE BUDGET PROCESS AND DOCUMENT • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET CAPITAL FUNDS Capital Improvement Fund Buildings and Facilities Department Technology Upgrades Parks and Open Space Streets and Sidewalks Traffic and Transportation Administration Cubberley Property Infrastructure Fund Buildings and Facilities Parks and Open Space ENTERPRISE FUNDS Airport Fund Airport Apron, Runways, and Taxiways Airport Facilities Electric Fund Customer Connections System Improvements Undergrounding Projects Fiber Optics Fund Capacity Improvements Customer Connections Gas Fund Customer Connections Gas Main Replacements System Improvements Stormwater Management Fund Capacity Improvements System Rehabilitation Wastewater Collection Fund Customer Connections System Improvements Wastewater Treatment Fund Buildings and Facilities System Improvements Water Fund Customer Connections System Improvements Water Main Replacements INTERNAL SERVICE FUNDS Technology Fund Citywide Technology Upgrades and Improvements Department Technology Upgrades and Improvements Vehicle Replacement Fund Fleet Infrastructure Improvements Vehicle and Equipment Replacement BUDGET AWARD BUDGET AWARD • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 25 BUDGET AWARD Budget Award CCalifornia Society of Municipal Finance Officers Certificate of Award Capital Budget Excellence Award Fiscal Year 2019-2020 Presented to the City of Palo Alto For meeting the criteria established to achieve the Capital Budget Excellence Award. January 31, 2020 Steve Heide Yolanda Rodriguez, Chair CSMFO President Recognition Committee Dedicated Excellence in Municipal Financial Reporting CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 27 FINANCIAL SUMMARY 'JOBODJBM4VNNBSZ SUMMARY OF CIP PROGRAM REVENUE SUMMARY OF CIP PROGRAM REVENUE • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 29 SUMMARY OF C Summary of CIP Program Revenue Transfer From General Fund The Capital Improvement Fund category includes two funds: the Capital Improvement Fund and the Cubberley Property Infrastructure Fund. These funds are primarily supported by an annual transfer from the General Fund, to support repairs to the City’s roads, parks and open space, and City facilities. The Cubberley Property Infrastructure Fund is supported by an annual $1.8 million transfer from the General Fund, approved by the City Council in 2015 as part of the Cubberley Lease Agreement. In the 2021-2025 CIP, the transfer to the Capital Improvement Fund ranges between $31.9 million and $34.4 million annually. This figure includes the base General Fund transfer to the Capital Improvement Fund, ranging from $16.1 million in Fiscal Year 2021 to $16.9 million in Fiscal Year 2025. In addition to the base transfer amount, voters approved two increases to the Transient Occupancy Tax (TOT) in November 2014 and Novem- ber 2018 for a total 3.5 percent of TOT revenue which the City Council identified as a funding source to aid in infrastructure needs. Preliminary estimates of revenue from the 3.5 percent of TOT plus TOT generated from new hotels built after January 2015 ranges between $14.6 million SUMMARY OF CIP PROGRAM REVENUE 30 SUMMARY OF CIP PROGRAM REVENUE • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET to $16.3 million over the five-year CIP which includes additional TOT revenue from new Marriott hotels that was anticipated to open in Fiscal Year 2021. As the City continues to address uncer- tainties surrounding the impact from COVID-19, these preliminary amounts are anticipated to change. The additional TOT revenue will support budgeted Infrastructure Plan projects as well as the debt service costs beginning in Fiscal Year 2020 as a result of expected debt financing to fund two of the Infrastructure Plan projects, the California Avenue Parking Garage and the new Public Safety Building. Finally, this amount includes estimated interest earnings in the Cap- ital Improvement Fund of $1.2 million annually. Transfers from the General Fund to the Internal Service Funds is comprised of funding for vehicle replacement costs in the Vehicle Replace- ments and Maintenance Fund ($2.1 million annually). Certificates of Participation/Debt Financing The Infrastructure Plan (IP), as approved by the City Council in June 2014 (CMR #4889), relied upon a borrowing mechanism known as Certificates of Participation (COPs) to fund a portion of the improvements outlined in the plan ($63.3 million). By pledging future revenues generated by voter-approved increases to the TOT (discussed in the Transfer from General Fund section), the City can finance, through issuance of debt, the cost of construction of IP projects such as the New California Avenue Area Parking Garage (PE-18000) and a New Public Safety Building (PE-15001). Bond funding for the California Avenue Parking Garage was approved by the City Council in October 2018 (CMR# 9689) and the bonds were sold generating $42.0 million in proceeds in March 2019. As part of the Proposed 2021-2025 CIP, $102.0 million in additional COP funding is recommended in Fiscal Year 2021 to fund the new Public Safety Building project. This will bring the total for debt financed IP projects to $144.0 million with an estimated annual debt service cost of $9.7 million. In 2012, the Regional Water Quality Control Plant (RWQCP) created a Long-Range Facilities Plan to evaluate the infrastructure needs at the RWQCP with regards to future regulations, replacement and rehabilitation needed, site planning, and flow and load projections. Due to the large expense of the major projects included in the 2021-2025 CIP, the RWQCP will require debt financing. Staff has applied for state revolving fund (SRF) loans and has received approval from the City Council to pursue revenue bonds for these projects (CMR #10011). Staff will return to Council once the debt financing mechanism, SRF, revenue bonds, or a blend of both is determined. Gas Tax Fund The Gas Tax Fund accounts for revenues received from the State gas tax and Federal and State grants earmarked for street improvements. Use of this fund is restricted to maintenance of the road network system of the City, including sidewalks. Transfers from the Gas Tax Fund sup- ports the following CIP Projects: Street Maintenance (PE-86070) and Safe Routes to School (PL-00026). The City achieved its primary goal of reaching a citywide average Pavement Con- dition Index (PCI) score of 85 in 2018, three years earlier than the initial goal. Funding in the 2021-2025 CIP will be used to work towards the City’s secondary street maintenance goal of having no streets under a PCI score of 60. The passage of S.B. 1 for Road Maintenance and Rehabilitation is estimated to provide an additional $1.3 million annually for street maintenance. SUMMARY OF CIP PROGRAM REVENUE SUMMARY OF CIP PROGRAM REVENUE • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 31 This funding could assist with the City’s street maintenance program, possibly allowing some funds to be reallocated to other capital projects with City Council approval. Development Impact Fees Development impact fees are collected from developers and provide funding for the City's infrastructure related to community centers, libraries, parks, public facilities, and transportation. The City Attorney provides guidance on whether a project qualifies for funding. In the 2021- 2025 CIP, two projects are supported by Parks Impact Fees: Dog Park Installation and Renovation (PG-18001) and Park Restroom Installation (PG-19000). The utilization of Park Dedication Fees for the Byxbee Park Completion project (PE-18006) was included in the City Council approved Infrastructure Plan. Work in this project has been programmed in Fiscal Year 2021 to coordinate with the Baylands Comprehensive Conservation Plan project (PG-17000) and the Byxbee Park Master Plan. Community Center Impact Fees are recommended to be used to complete Phase I of the JMZ Renovation (AC-18001) and Rinconada Park Improvements (PE-08001). Traffic Impact Fees are programmed to support the Traffic Signal and Intelligent Transportation Systems project (PL-05030), which maintains traffic safety and improves roadway operations including the reduction of roadway congestion with traffic signal retiming projects. Funding from the New Public Safety Facilities Impact Fees is programmed in the New Public Safety Building project (PE-15001) for the design and construction of a new Public Safety Building on Lot C-6 in the California Avenue commercial area. Funds from the Library Impact Fees are programmed to fund a new Library Automated Material Handling project (LB-21000). Lastly, transfers from the Downtown Parking In-Lieu Fund to the Capital Improvement Fund, totaling $5.5 million are anticipated in FY 2022 to support a portion of the costs associated with the construction of a new Downtown Parking Garage (PE-15007). Federal, State, & Local Agencies The City partners with local agencies to provide support to certain capital projects. This revenue is typically provided as reimbursement grants or direct transfer payments. In Fiscal Year 2021, the City is expected to receive approximately $14.9 million from other agencies in support of CIP projects some of which are: $8.6 million from Caltrans to fund $4.6 million for the Newell Road/San Francisquito Creek Bridge Replacement project (PE-12011) and another $4.0 million for the Churchill Avenue/Alma Street Railroad Crossing Safety Improvements project (PL-20000); $2.0 million from Santa Clara County and a One Bay Area Grant (OBAG) for the El Camino Real Pedestrian Safety and Streetscape Project (PL-18000); and $1.5 million from Santa Clara County for the Highway 101 Pedestrian/Bicycle Overpass project (PE-11011). In the remaining years of the Capital Improvement Program (Fiscal Years 2022 through 2025), it is anticipated that the City will receive an additional $16.5 million in funds from other agencies for projects programmed in the Capital Improvement Fund. This revenue category includes Measure B funding for transportation enhancements from the VTA, which is programmed to fund costs associated with Railroad Grade Separation (PL- 17001), Traffic Signal and Intelligent Transportation Systems (PL-05030), and Street Maintenance (PE-86070). In addition, funding from the Federal Aviation Administration to fund 90 percent of the upgrade projects at the Airport is recorded in the Airport Fund in this category, SUMMARY OF CIP PROGRAM REVENUE 32 SUMMARY OF CIP PROGRAM REVENUE • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Stanford University Medical Center Development Agreement In 2011, a development agreement was established between the City of Palo Alto and the Stan- ford University Medical Center Parties. The funds received by the City as a result of this devel- opment agreement represent a significant portion of the funding for the Infrastructure Plan projects. Over the course of the 2021-2025 CIP, transfers to the Capital Improvement Fund totaling $15.5 million are anticipated. This funding will support a variety of projects including the Bicycle and Pedestrian Transportation Implementation Plan (PL-04010), the New Public Safety Building (PE-15001), the reconstruction of Fire Station #4 (PE-18004), the New Downtown Garage (PE-15007) the Quarry Road Improvements and Transit Center (PL-16000), and Rail- road Grade Separation (PL-17000). For additional information about the development agree- ment, please refer to the Special Revenue Funds section of the Fiscal Year 2021 Operating Budget document. Parking Funds Over the 2021-2025 CIP, $0.4 million is expected to be transferred from the City’s parking funds for the University Avenue Parking Improvements project (PF-14003). Funding for parking related capital investments beginning in FY 2021 and beyond is contingent upon continued availability of revenues generated from parking permits within the respective parking dis- tricts. Transfers From Enterprise Funds The City of Palo Alto has nine Enterprise Funds that are managed by the Public Works Depart- ment and the Utilities Department. The Airport Fund, Refuse Fund, Stormwater Management Fund, and Wastewater Treatment Fund are collectively referred to as the “Public Works Funds,” while the Electric Fund, Fiber Optics Fund, Gas Fund, Water Fund, and Wastewater Collection Fund are collectively referred to as the “Utilities Funds.” For further information, please refer to The Budget Process and Document section of this book. In instances where the Enterprise Funds would benefit from a General Fund or Internal Service Fund project, the Enterprise Funds are charged for their proportional share. Several examples are included in the 2021-2025 CIP; including the Municipal Services Center (MSC) Building A, B, and C Roofing Replacement (PF-17000); MSC Lighting, Mechanical, and Electric Improvements (PF-16006); Water, Gas, Wastewater Office Remodel (PE-19001); City Facility Parking Lot Maintenance (PE- 09003); and City Council Chambers Upgrade (TE-19001) projects. A portion of the cost of these projects will be split among the various Enterprise Funds according to the proportional use by the various funds. SUMMARY OF CIP PROGRAM REVENUE SUMMARY OF CIP PROGRAM REVENUE • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 33 Enterprise Funds Utility Rate Charges Enterprise Funds operate on a full cost recovery basis. Accordingly, all costs related to opera- tions and capital projects are recovered through utility rate charges. The Fiscal Year 2021 Oper- ating Budget document contains a detailed discussion regarding the Fiscal Year 2021 utility rate increases. Transfers within Enterprise Funds Most of the Enterprise Funds are supported by rates, and the revenue is used for specific services provided by each fund. When a capital project supports multiple Enterprise Funds, the fund that manages the project is reimbursed through transfers from other funds to ensure the project’s costs are proportionally shared. An example of this type of project is the application of the Geographic Information System (GIS) (WS-02014) that benefits the Water, Gas and Wastewater Collection Funds. The Water Fund manages the GIS project, and the Gas and Wastewater Collection Funds reimburse the Water Fund for their share of the project cost. SUMMARY OF CIP PROGRAM REVENUE 34 SUMMARY OF CIP PROGRAM REVENUE • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET User Fees and Charges Certain CIP projects in the Enterprise Funds are supported by user fees. Included in this cate- gory are certain charges to telecommunication and cable television companies pertaining to undergrounding projects. The list of projects funded by user fees and the description of each user fee are summarized in the table above. Stormwater Management Fee In April 2005, property owners approved an increase in the Storm Drainage Fee through a mail ballot process conducted in accordance with Proposition 218. Under the provisions of the 2005 ballot measure, the base rate of $13.05 was scheduled to sunset on June 1, 2017, reverting to the pre-election rate of $4.25. In an effort to reauthorize the fee through another ballot measure, staff worked with a City Manager-appointed Blue-Ribbon Committee to generate a recommen- dation for stormwater management funding beyond Fiscal Year 2017 and a joint committee/ staff funding recommendation was presented to City Council in Spring 2016. In April 2017, the Stormwater Management Fee was approved by a majority of property owners via a ballot-by mail process, establishing a base rate of $13.65 per Equivalent Residential Unit (ERU) per month along with a provision that the City Council could increase the rate on an annual basis by the local inflation rate, as measured by the Consumer Price Index (CPI), or six percent, whichever is less. Under the provisions of the ballot measure, the fee is recommended to increase by 2.5 per- cent, based on the local CPI increase, to $15.03 per ERU for Fiscal Year 2021. Partner Agencies The Cities of Palo Alto, Mountain View, and Los Altos, along with the Town of Los Altos Hills, Stanford University, and the East Palo Alto Sanitary District (the partners) participate jointly in the cost of maintaining and operating the City of Palo Alto Regional Water Quality Control Plant (RWQCP). The City of Palo Alto is the owner and the administrator of the RWQCP, and the partners reimburse the City for their share of the cost of capital projects programmed to maintain or upgrade the RWQCP facilities. Internal Service Funds The General Fund, Capital Improvement Funds, and Enterprise Funds provide funding for their share of capital projects in the Internal Service Funds (ISF) through a cost allocation mecha- nism. Costs are allocated to the various funds based on proportional use of Vehicle Replace- ment and Technology related capital projects. SUMMARY INFORMATION SUMMARY INFORMATION • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 35 UMMARY INFORMAT Summary Information Capital Improvement Fund $179.2MCubberley Property Infrastructure Fund $1.4M Airport Fund $19.4M Vehicle Replacement & Maintenance Fund $8.0M Technology Fund $3.8M Electric Fund $25.7M Fiber Optics Fund $0.7M Gas Fund $13.2M Stormwater Management Fund $4.2M Wastewater Collection Fund $4.5M Wastewater Treatment Fund $19.3M Water Fund $9.4M 2021 CAPITAL BUDGET EXPENDITURES BY FUND $288.7 MILLION SUMMARY INFORMATION 36 SUMMARY INFORMATION • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Fund Balance/ Reserves $89.0MFederal and State Grants $20.6M Revenue from Other Agencies $14.9M Stanford University Medical Center $3.3M Transfer from Enterprise Funds $3.5M Utility Fees and Charges $4.5M Impact Fees/ In- Lieu Fees $3.8M Gas Tax $2.7M Transfer from Parking Funds $0.1M Transfer from General Fund $34.0M Transfer from Other Funds $0.8M Debt Financing $111.7M 2021 CAPITAL BUDGET REVENUES BY SOURCE $288.7 MILLION SUMMARY INFORMATION SUMMARY INFORMATION • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 37 Capital Improvement Fund $372.8M Cubberley Property Infrastructure Fund $3.5M Water Fund $45.6M Electric Fund $99.4M Gas Fund $45.3M Wastewater Treatment Fund $133.1M Wastewater Collection Fund $24.7M Stormwater Management Fund $13.8M Airport Fund $26.0M Fiber Optics Fund $2.5M Vehicle Replacement & Maintenance Fund Technology Fund $4.2M 2021 - 2025 CAPITAL IMPROVEMENT PLAN EXPENDITURES BY FUND $793.4 MILLION SUMMARY INFORMATION 38 SUMMARY INFORMATION • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Fund Balance/Reserves $272.4MFederal and State Grants $26.0M Revenue from Other Agencies $31.3M Stanford University Medical Center $15.5M Transfer from Enterprise Funds $13.4M Utility Fees and Charges $23.8M Impact Fees/ In- Lieu Fees $12.4M Gas Tax $13.6M Transfer from Parking Funds $0.4M Transfer from General Fund $175.0M Transfer from Other Funds $0.9M Debt Financing $208.8M 2021 - 2025 CAPITAL IMPROVEMENT PLAN REVENUES BY SOURCE $793.4 MILLION SUMMARY INFORMATION SUMMARY INFORMATION • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 39 Buildings and Facilities $127.2M Department Technology Upgrades and Improvements $0.4M Parks and Open Space $9.8M Streets and Sidewalks $14.6M Traffic and Transportation $24.5M Administration $0.3M 2021 CAPITAL IMPROVEMENT FUND EXPENDITURES BY CATEGORY $176.8 MILLION SUMMARY INFORMATION 40 SUMMARY INFORMATION • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Transfer from Parking Funds $1.6M Transfer from Enterprise Funds $1.2M Stanford University Medical Center $3.3M Revenue from Other Agencies $9.8M Impact Fees/ In-Lieu Fees $3.3M Gas Tax $2.7M Federal and State Grants $6.4M Debt Financing $102.0M Fund Balance/ Reserve $49.4M 2021 CAPITAL IMPROVEMENT FUND REVENUES BY SOURCE $176.8 MILLION SUMMARY INFORMATION SUMMARY INFORMATION • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 41 Buildings and Facilities $173.6M Department Technology Upgrades and Improvements $0.9M Parks and Open Space $31.1M Streets and Sidewalks $50.9M Traffic and Transportation $62.2M Administration $12.8M 2021-2025 CAPITAL IMPROVEMENT FUND EXPENDITURES BY CATEGORY $331.5 MILLION SUMMARY INFORMATION 42 SUMMARY INFORMATION • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Federal and State Grants $1.3M Revenue from Other Agencies $31.3M Stanford University Medical Center $15.5M Impact Fees/ In-Lieu Fees $12.4M Gas Tax $13.6M Transfer from Enterprise Funds $1.8M Transfer from Parking Funds $0.4M Debt Financing $102.0M Transfer from Other Funds $0.8M Transfer from General Fund $152.4M 2021-2025 CAPITAL IMPROVEMENT FUND REVENUES BY SOURCE $331.5 MILLION DEBT POLICY AND OBLIGATIONS DEBT POLICY AND OBLIGATIONS • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 43 DEBT POLICY Debt Policy and ObligationsSummary of Debt Obligations DEBT POLICY AND OBLIGATIONS 44 DEBT POLICY AND OBLIGATIONS • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Debt Policy and Obligations The City of Palo Alto recognizes the need for spending a prudent amount every year for ongo- ing capital replacement and rehabilitation needs. An ongoing capital improvement plan is vital to ensuring the future viability of services. To achieve this priority, the City funds its regular and ongoing capital needs primarily on a “pay-as-you-go” basis. However, for special or extraordi- nary capital improvement projects; refinancing of existing debt; and purchase of major and mul- tiple pieces of equipment it is appropriate to consider debt financing. The City’s updated Debt Policy establishes the guidelines to support the decision-making process for issuing debt. Debt Policy Guidelines The City’s Debt Policy provides guidelines for refinancing existing debt; detailing the responsi- bilities of City staff engaged in issuing debt; delineating the debt instruments or vehicles (e.g. General Obligation Bonds, Certificates of Participation, Utilities Revenue Bonds etc.) the City can utilize; and describing situations in which tax-exempt and taxable debt can be used. The depth and breadth of the policy serve to guide current and future staff. Below are highlights of the Debt Policy guidelines for the use of debt and other financing. A. Debt may be judiciously used when some or all of the following conditions exist: Estimated future revenue is sufficient to ensure the payment of annual debt service. Other financing options have been explored and are not viable for the timely or economic acquisition or completion of a capital project. A capital project is mandated by federal or state authorities with no other viable funding option available. The capital project or asset lends itself to debt financing rather than pay-as-you-go funding based on the expected useful life of the project. Debt will not be used to fund ongoing operating expenses of the City except for situations in which cash flow problems arise and the City may need to issue short-term Tax or Revenue Anticipation Notes. Annual debt service shall not exceed 10 percent of annual operating expenses for the General Fund unless an exception is approved by City Council. For all other City funds annual debt service shall not exceed 15 percent of annual operating expenses unless an exception is approved by City Council. B. Minimize borrowing costs by: Maximizing the use of existing resources for capital projects and equipment needs. Issuing tax-exempt debt except in instances where IRS regulations require taxable bonds. Striving to obtain the highest credit ratings possible. Maintaining a competitive bid process on bond sales except for situations in which negotiated or private placement sales meet City objectives. In negotiated or private DEBT POLICY AND OBLIGATIONS DEBT POLICY AND OBLIGATIONS • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 45 placement sales, City staff will work with its Municipal Advisor (aka Financial Advisor) to review proposed interest rates and proposed fees. Ensuring that the type of debt and debt structure developed result in advantageous marketing of each issue. C. Linking debt to appropriate revenue sources and project users: When possible, tie project financing directly to users of a specific facility or use. Examples include renovation of the Golf Course where user fees can offset debt service or replacing gas mains where gas rates can be increased to cover debt expense. Debt financing in the Enterprise Funds so as to avoid significant spikes in user rates by smoothing out costs over time. In addition to capital projects, the City can finance essential equipment and vehicles. These assets range from public safety vehicles to utility equipment. The underlying asset must have a minimum useful life of three years. Short-term financings, including loans and capital lease pur- chase agreements, are executed to meet such needs. It has been the City’s practice to fund these purchases with existing resources; however, debt financing flexibility for future needs remains an option. The Chief Financial Officer or Director of Administrative Services, supported by the Treasury Division, will periodically evaluate existing debt and execute refinancing when economically beneficial. Refinancing may include the issuance of bonds to refund existing bonds or the issu- ance of bonds in order to refund other obligations. A net present value analysis, both in dollar and percentage terms, will be conducted to determine whether refinancing is optimal. As a “rule of thumb,” a minimum 3.0 percent net present value savings will be used as a basis to begin refi- nancing efforts; however, a higher savings level may be considered. As with new debt, all refi- nancing must be approved by City Council. In September 2016, the state legislature adopted Senate Bill 1029, Hertzberg (SB 1029), amend- ing Government Code section 8855 to place additional reporting obligations on issuers of pub- lic debt, effective January 1, 2017. The amendments require an issuer to certify that they have adopted a debt policy concerning the use of debt and that the proposed debt issuance is con- sistent with that policy. Though the City’s Debt Policy and practice substantially complied with the new requirements prior to this legislation, minor updates to the Debt Policy were approved by the City Council in April 2017 to explicitly comply with SB 1029 requirements. This statute also added additional reporting requirement to the California Debt and Investment Advisory Commission (CDIAC), such as the submission of an annual report for any issuance of debt. Legal Debt Limit Based upon the assessed valuation of $36.8 billion for the fiscal year ending June 30, 2019, the City is limited to general obligation indebtedness of $1.4 billion per State law. As of June 30, 2019, the amount of debt applicable to the debt limit was $60.5 million, which is well below the City’s legal debt limit. The debt limit is applicable to voter-approved general obligation (GO) bonds that have been approved in prior years to fund capital improvement projects to reno- vate and build out the City’s libraries including the Mitchell Park Library and Community Center. DEBT POLICY AND OBLIGATIONS 46 DEBT POLICY AND OBLIGATIONS • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Debt Obligation Descriptions 2010A and 2013A General Obligation (GO) Bonds On June 30, 2010, the City issued the first series of $55.3 million and on June 26, 2013 the sec- ond series of $20.6 million of GO bonds to finance costs for constructing a new Mitchell Park Library and Community Center, as well as substantial improvements to the Main Library and the Downtown Library. Principal payments are due annually on August 1 and interest payments semi-annually on February 1 and August 1, from 2.0 percent to 5.0 percent, and are payable from property tax revenues. As of June 30, 2020, for the above 2010 and 2013 bonds, $43.3 million and $15.5 million princi- pal and $24.3 million and $8.0 million interest will be the remaining debt service on the bonds with final payment occurring in Fiscal Year 2041 and Fiscal Year 2042, respectively. 2018 Capital Improvement (“Golf Course”) Project and 2002B (“Civic Center Refinancing and Downtown Parking Improvements Project”) Refinancing Certificates of Participation (COPs) On June 5, 2018, the City issued taxable (Green Bonds) COPs of $8.4 million for the renovation of Palo Alto’s Municipal Golf Course and $0.6 million to refinance the 2002B COPs. Debt service payments are due semi-annually on May 1 and November 1. The 2018 Capital Improvement Proj- ect and 2002B refinancing COPs maturity dates and true interest costs are November 2047 and 4.14 percent and November 2022 and 3.11 percent, respectively. 2019 California Avenue Parking Garage Certificates of Participation (COPs) On March 21, 2019, the City issued $26.8 million tax-exempt and $10.6 million taxable COPs for the construction of a six story (four above ground levels and two below ground levels) parking garage in the California Avenue Business District. The new garage will replace existing parking stalls at two locations and provide 310 additional parking spaces, totaling 636 parking spaces in the new garage. Debt service payments on the $37.4 million COPs are due semi-annually on May 1 and Novem- ber 1, with the first payment due on November 1, 2019. The COPs mature in FY 2049 and have a combined true interest cost (TIC) of 3.75 percent with the tax-exempt bonds’ TIC being 3.52 percent and taxable bonds’ TIC being 4.32 percent. 1995 Utility Revenue Bonds, Series A On February 1, 1995 the City issued Utility Revenue Bonds to finance certain extensions and improvements to the City's Storm Drainage and Surface Water systems. The bonds are special obligations of the City payable solely from and secured by a pledge of and lien upon the reve- nues derived by the City from the funds, services, and facilities of all Enterprise Funds except DEBT POLICY AND OBLIGATIONS DEBT POLICY AND OBLIGATIONS • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 47 the Refuse Fund and the Fiber Optics Fund. Principal payments are payable annually on June 1, and interest payments semi-annually on June 1 and December 1. A $2.9 million 6.3 percent term bond is due June 1, 2020. In lieu of a reserve fund, the Bonds are secured by a Surety Bond issued by AMBAC Indemnity Corporation. The pledge of future net revenues for the above funds ends upon repayment of the $0.6 million principal and $40,313 interest as the remaining debt service on the bonds as of June 30, 2019 with final payment occurring in Fiscal Year 2020. 1999 Utility Revenue and Refunding Bonds, Series A On June 1, 1999 the City issued Utility Revenue Bonds to refund the 1990 Utility Revenue Refunding Bonds, Series A and the 1992 Utility Revenue Bonds, Series A, and to finance rehabil- itation of the Wastewater Treatment System's two sludge incinerators. The 1990 Utility Revenue Refunding Bonds, Series A and the 1992 Utility Revenue Bonds, Series A, were subsequently retired. The 1999 Bonds are special obligations of the City payable solely from and secured by a pledge of, and lien upon, certain net revenues derived by the City's sewer system and its storm and surface water system, the “Stormwater Management System”. As of June 30, 2001, the 1999 Bonds had been allocated to and were repayable from net revenues of the following Enterprise Funds: Wastewater Collection (10.2 percent), Wastewater Treatment (64.6 percent) and Storm- water Management (25.2 percent). Principal payments are payable annually on June 1, and inter- est payments semi-annually on June 1 and December 1. In lieu of a reserve fund, the bonds are secured by a Surety Bond issued by AMBAC Indemnity Corporation. The pledge of future net revenues for the above funds ends upon repayment of the $6.7 million principal and $0.9 million interest as the remaining debt service on the bonds as of June 30, 2020, with final payment occurring in Fiscal Year 2024. 2009 Water Revenue Bonds, Series A On October 6, 2009, the City issued Water Revenue Bonds in the amount of $35.5 million to finance certain improvements to the City's Water utility system. Principal payments are due annually on June 1, and interest payments are due semi-annually on June 1 and December 1, from 1.8 percent to 6.0 percent. The final debt service payment will be made in 2035. When these bonds were issued they were designated as 'Direct Payment Build America Bonds' under the provisions of the American Recovery and Reinvestment Act of 2009 ('Build America Bonds'). The City expected to receive a cash subsidy payment from the United States Treasury equal to 35.0 percent of the interest payable on the 2009 bonds, however, due to the United States federal government budget (sequestration) cuts in calendar year 2013, the receipts declined to 32.5 percent in 2013 and were 33.3 percent in calendar year 2018. The lien on the 1995 Bonds on the net revenues is senior to the lien on net revenues securing the 2009 Bonds and the 2002 Bonds. The City received subsidy payments amounting to $0.5 million, which rep- resents 33.3 percent of the two interest payments due on June 1 and December 1 annually. The pledge of future net revenues of the above funds ends upon repayment of the $25.5 million principal and $13.3 million interest as the remaining debt service on the bonds as of June 30, 2020 with final payment occurring in Fiscal Year 2035. DEBT POLICY AND OBLIGATIONS 48 DEBT POLICY AND OBLIGATIONS • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 2011 Utility Revenue Bonds, Series A On September 22, 2011 the City issued Utility Revenue Bonds to refinance the 2002 Utility Rev- enue Bonds, which were issued for certain improvements to the City's Water and Natural Gas utility system. The refinancing resulted in net present value savings of 16.9 percent and cash savings over 15 years of $4.0 million. Principal payments are due annually on June 1, and interest payments are due semi-annually on June 1 and December 1 from 3.0 percent to 4.0 percent. The Revenue Bonds are secured by net revenues generated by the Water and Gas Funds. The pledge of future net revenues ends upon repayment of the $7.9 million principal and $0.9 million interest remaining debt service on the bonds as of June 30, 2020 with final payment occurring in Fiscal Year 2026. 2007 Electric System Clean Renewable Energy Tax Credit Bonds On November 1, 2007 the City issued $1.5 million of Electric Utility Clean Renewable Energy Tax Credit Bonds (CREBS), 2007 Series A, to finance the City's photovoltaic solar panel project. The bonds do not bear interest. In lieu of receiving periodic interest payments, bondholders are allowed federal income tax credit in an amount equal to a credit rate for such CREBS multiplied by the outstanding principal amount of the CREBS owned by the bondholders. The bonds are payable solely from, and secured solely by, a pledge of the net revenues of the Electric system and other funds pledged therefore under the Indenture. The pledge of future Electric Fund net revenues ends upon repayment of the $0.2 million as the remaining debt service on the bonds as of June 30, 2020 with final payment occurring in Fiscal Year 2022. 2007 State Water Resources Loan In October 2007, the City approved the $9.0 million loan agreement with State Water Resources Control Board (SWRCB) to finance the City's Mountain View/Moffett Area Reclaimed Water Pipeline Project. Under the terms of the contract, the City agreed to repay $9.0 million to the State in exchange for receiving $7.5 million in proceeds to be used to fund the project. The dif- ference between the repayment obligation and proceeds amounts to $1.5 million and represents in-substance interest on the outstanding balance. Loan proceeds are drawn down as the project progresses and debt service payments commenced on June 30, 2010. Concurrently with the loan, the City entered into various other agreements including a cost sharing arrangement with the City of Mountain View. Pursuant to that agreement, the City of Mountain View agreed to finance a portion of the project with a $5.0 million loan repayable to the City. This loan has been recorded as 'Due from other government agencies' in the financial statements. The pledge of future net revenues of the above funds ends upon repayment of the $4.1 million principal and $0.7 million in-substance interest as the remaining debt service on the bonds as of June 30, 2020 with final payment occurring in Fiscal Year 2029. DEBT POLICY AND OBLIGATIONS DEBT POLICY AND OBLIGATIONS • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 49 2009 State Water Resources Loan In October 2009, the City approved an $8.5 million loan agreement with the State Water Resources Control Board (SWRCB) to finance the City's Ultraviolet Disinfection Project. As of June 30, 2011, the full loan in the amount of $8.5 million was drawn down and became outstand- ing. Interest in the amount of $96,000 was accrued and added to the outstanding balance. The pledge of future net revenues of the above funds ends upon repayment of the $5.3 million principal and $0.9 million interest as the remaining debt service on the bonds as of June 30, 2020 with final payment occurring in Fiscal Year 2031. 2017 State Water Resources Loan In June 2017, the State Water Resources Control Board (SWRCB) and the City executed an agreement for an award up to $30.0 million at a rate of 1.8 percent, payable over 30 years, with the first annual installment due May 31, 2020 to finance the replacement of sewage sludge “bio- solids” incinerators at the City’s Regional Water Quality Control Plant (RWQCP). In September 2017, due to the projected lower project costs, the agreement was amended to reduce the SWRCB loan amount to $29.7 million. Under the terms of the contract, a portion of the loan amount, $4.0 million, is a federally funded grant (by the U.S. Environmental Protection Agency). The new facility will dewater the bio-solids and allow the material to be loaded onto trucks and taken to a separate facility for further treatment. The RWQCP provides treatment and disposal for wastewater for Palo Alto, Mountain View, Los Altos, Los Altos Hills, East Palo Alto Sanitary District, and Stanford University. Though Palo Alto is the recipient of the loan, the City’s agree- ment with the partner agencies obliges them to pay their proportionate share of the principal and interest of this loan. Palo Alto’s share of the loan payment is 38.2 percent with the partner agencies paying 61.8 percent. As of June 30, 2020, the City is anticipated to incur and draw down $25.0 million of the project costs from the loan award. Credit Rating Agencies Credit rating is a critical component of strong municipal management. According to Moody's Investors Service, reserves are an important factor in the analysis of a municipality's fiscal health and, therefore, a jurisdiction's fiscal policies should include a plan for maintaining reserves. Rat- ing agencies view sound reserves favorably, thus improving a municipality's rating and its ability to obtain low-cost financing for important projects. The City is proud to report that both Moody's and Standard and Poor's (S&P) awarded their highest credit ratings, Triple A, to the City's General Obligation Bonds for library and community center capital improvements in 2010 and 2013 and reaffirmed these ratings a few times, the last one being in July 2018 by Moody’s and February 2019 by S&P. These ratings demonstrate that Palo Alto's prudent financial man- agement and fiscal strength are viewed favorably by credit agencies. The four Utility bonds (1995, 1999, 2009, & 2011) that are rated also received S&P's highest credit rating of Triple A. Moody's has rated these Utility bonds with their second highest (Aa1) or third highest (Aa2) rat- ings. CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 51 CAPITAL FUND PROJECTS $BQJUBM Fund1SPKFDUT CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 53 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND CAPITAL IMPRO Overview The Capital Improvements Fund, supported by the General Fund and grants and reimburse- ments from other agencies, accounts for general capital investments such as public safety and community facilities. This fund is equivalent to the General Fund Operating Budget; however, it is focused on capital investments. Examples of projects accounted for within the Capital Improvement Fund include street maintenance, traffic signal and sidewalk modifications, park renovations, and improvements to libraries, community centers, and public safety facilities. For the entire Capital Improvement Fund, 87 projects are programmed over the 2021-2025 CIP, with a cumulative total cost of $331.6 million. Of this amount, $176.8 million is appropriated in FY 2021 which includes $37.8 million recommended to be reappropriated from FY 2020 for the continuation of projects previously approved by the City Council. The budget for the Capital Improvement Fund is divided into six categories: Buildings and Facilities, Department Technol- ogy Upgrades and Improvements, Parks and Open Space, Streets and Sidewalks, Traffic and Transportation, and Administration. The primary funding source for the Capital Improvement Fund is the annual transfer from the General Fund. In FY 2021, this transfer will be $30.7 million, which includes the annual base transfer of $15.7 million and the City Council approved Transient Occupancy Tax transfer of $15.0 million to support the City Council approved Infrastructure Plan. The Infrastructure Plan (IP) consists of ten top priority capital projects accounted for within the Capital Improvement Fund. The first nine were recommended by the Council Infrastructure Committee and approved by the Council in June 2014, with a tenth project, the Downtown Automated Parking Guidance Systems, Access Controls & Revenue Collection Equipment (PL-15007) approved and added as part of the 2020-2024 CIP. The Infrastructure Plan is estim- ated at $287.3 million, with $160.3 million programmed over the 2021-2025 CIP. 54 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 55 The Infrastructure Plan includes the following projects: a new public safety building two fire station replacements the Charleston/Arastradero Corridor Improvements the Bicycle and Pedestrian Transportation Plan the Highway 101 Pedestrian/Bicycle Bridge a new parking garage in the downtown area a new garage in the California Avenue area the completion of Byxbee Park enhanced parking systems and revenue collections equipment in the Downtown area The Fire Station #3 Replacement project was the first of the IP projects to begin construction in FY 2018 and was completed in March 2020. The construction of the Charleston/Arastradero Corridor Project (phases 1 and 2) began in Summer 2018 and were completed in December 2019. The New California Avenue Area Parking Garage project began construction in FY 2019 and is anticipated to be completed in Summer 2020 and the Highway 101 Pedestrian/Bicycle Bridge construction started in January 2020 and will be completed in Summer 2021. Buildings and Facilities The Buildings and Facilities category includes projects to maintain the City’s existing buildings and facilities as well as projects that provide funding for new facilities. Buildings and facilities include City Hall, other City staff office locations, community centers, libraries, theaters, fire sta- tions, park restrooms, parking garages, and City-owned facilities leased to private parties. Proj- ects to improve the Cubberley Community Center are included separately within the Cubberley Property Infrastructure Fund and discussed later in this document. The 2021-2025 CIP includes projects totaling $173.6 million in this category, with $127.2 million allocated in FY Year 2021. Of this amount, $19.4 million is recommended to be reappropriated for the continuation of projects approved by the City Council in prior fiscal years. The Buildings and Facilities category includes the following Council Infrastructure Plan projects: Public Safety Building, Fire Station #3 Replacement (completed), Fire Station #4 Replacement, Downtown Parking Garage, and Cali- fornia Avenue Area Parking Garage. These projects account for $143.1 million or 49.80 percent of the total Infrastructure Plan. The total funding amount of $173.6 million for Building and Facil- ities over the 2021-2025 CIP represents approximately 52.37 percent of the total Capital Improvement Fund expenses. CAPITAL IMPROVEMENT FUND 56 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Infrastructure Inventory - Summary of Buildings & Facilities CLASSIFICATION QUANTITY SQUARE FOOTAGE Civic Center & Municipal Ser- vices Center 2 157,593 Community Centers 3 68,752 Libraries 5 91,916 Fire Stations 6 25,847 Parking Garages 8 982,966 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 57 Recent Accomplishments Completion of the Fire Station #3 Replacement project. Construction of the California Avenue Parking Garage is anticipated to be completed in Summer 2020. 2021-2025 Capital Improvement Program Recurring Projects There are six recurring projects in the Buildings and Facilities category: Americans With Disabilities Act Compliance (2021: $0.7 million, 2021-2025 CIP: $2.4 million) Building Systems Improvements (2021: $0.7 million, 2021-2025 CIP: $1.7 million) City Facility Parking Lot Maintenance (2021: $0.8 million, 2021-2025 CIP: $1.5 million) Facility Interior Finishes Replacement (2021: $1.0 million, 2021-2025 CIP: $2.2 million) Roofing Replacement (2021: $0.9 million, 2021-2025 CIP:$2.9 million) University Avenue Parking Improvements (2021: $0.5 million, 2021-2025 CIP: $0.9 million) Activities planned for FY 2021 under these projects include parking lot resurfacing at Fire Sta- tion #8. Other work includes LED lighting conversion for the Rinconada and Mitchell Park tennis courts, re-roofing the Baylands Athletic Center Snack Bar and Restrooms and Mitchell Park Tiny-Tot Restroom, and interior finishes at the Municipal Service Center (MSC) Lunchrooms and Hallways. Finally, the Americans with Disabilities Act Compliance project will begin to imple- ment the updates recommended in the ADA Transition Plan. Non-Recurring Projects Final design work on the Public Safety Building will be a high priority in FY 2021, and construc- tion of the California Avenue Parking Garage project will continue. Other significant activities planned for FY 2021 include completion of the Ventura Building Improvements project and the MSC Electrical and Mechanical Upgrade project. Additional funding provided in FY 2020 ($4.6 million), offset by additional reimbursement funding from Enterprise Funds, will allow the con- struction of the full scope for the Municipal Service Center (MSC) Electrical and Mechanical Upgrades project. Department Technology Upgrades and Improvements This category includes projects to replace public safety related technology equipment based on its useful life and standard replacement schedule. In the 2021-2025 CIP there are seven projects in this category, six for the Fire Department and one for the Police Department. The total fund- ing amount of $0.9 million for Department Technology Upgrades and Improvements over the 2021-2025 CIP represents 0.27 percent of the total Capital Improvement Fund expenses. CAPITAL IMPROVEMENT FUND 58 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 2021-2025 Capital Improvement Program Non-Recurring Projects All of the projects in this category are non-recurring projects, but the equipment will be pro- grammed to be replaced on a regular schedule to ensure it is not used beyond its useful life. Automated External Defibrillator Replacement (FY 2021 and 2021-2025 CIP: $0.2 million) Self Contained Breathing Apparatus (SCBA) Replacement (2021-2025 CIP: $0) Cardiac Monitor Replacement (2021-2025 CIP: $0) Extrication Tool Replacement (2021-2025 CIP: $0.3 million) Police Video Recording Systems Replacement (FY 2021 and 2021-2025 CIP: $0.1 million) Self-Contained Breathing Apparatus (SCBA) Air Compressor Replacement (FY 2021 and 2021-2025 CIP: $0.1 million) Thermal Imaging Cameras Replacement (2021-2025 CIP: $0) Parks and Open Space Maintenance, repair, and replacement of parks and open space amenities are managed jointly by the Community Services and Public Works Departments. Generally, Community Services oversees smaller projects as well as recurring projects while Public Works Engineering Services facilitates major one-time projects. The 2021-2025 CIP includes funding totaling of $31.1 million in this category, with $9.8 million allocated in FY 2021. Of this amount, $3.4 million is recom- mended to be reappropriated for the continuation of projects approved by the City Council in prior fiscal years. The Parks and Open Space category includes the Council Infrastructure Plan project for Byxbee Park Completion. This project accounts for $3.6 million or one percent of the total Infrastructure Plan. The total funding amount of $31.1 million for Parks and Open Space over the 2021-2025 CIP represents approximately 9.4 percent of total Capital Improvement Fund expenses. Recent Accomplishments Brick pathway and landscape improvements at the Lucie Stern Community Center. Repaired and opened two closed sections of Los Trancos and Coastanoan Trails in Foothills Park. Dock repairs to Sailing Station in Baylands. Infrastructure Inventory - Summary of Parks & Open Space CLASSIFICATION QUANTITY Parks 33 City Open Space/Conservation Lands 4 Parks, Preserves, and Open Space Acreage 4,385 Picnic Areas 39 Athletic Fields 33 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 59 2021-2025 Capital Improvement Program Recurring Projects There are nine recurring projects in the Parks and Open Space category: Art in Public Spaces (2021: $1.7 million, 2021-2025 CIP: $2.7 million) Athletic Courts Resurfacing (2021: $0.2 million, 2021-2025 CIP: $1.4 million) Benches, Signage, Fencing, Walkways, and Perimeter Landscaping (2021: $0.2 million, 2021- 2025 CIP: $1.2 million) Dog Park Installation (2021: $0.2 million, 2021-25 $0.6 million) Off Road Pathway Resurfacing and Repair (2021: $0.3 million, 2021-2025 CIP: $0.9 million) Open Space Lakes and Ponds (2021: $0.1 million, 2021-2025 CIP: $0.4 million) Open Space Trails and Amenities (2021: $0.2 million, 2021-2025 CIP: $1.2 million) Parks and Open Space Emergency Repairs (2021: $0.2 million, 2021-2025 CIP: $1.3 million) Park Restroom Installation (2021-2025 CIP: $0.9 million) Non-Recurring Projects Significant projects in this category during the 2021-2025 CIP include improvements at various parks (Boulware, Byxbee, Cameron, Ramos, and Rinconada). Other investments in open space areas are also included in the CIP plan, such as Golf Course Driving Range Net and Artificial Turf Replacement, a Baylands Comprehensive Conservation Plan, and a Byxbee Park Completion project. The Baylands Comprehensive Conservation Plan will examine native vegetation, wildlife habitat resources, and wildlife-appropriate public access for the entire Baylands, including Byx- bee Park. The preparation of this plan will provide needed information on the best areas to maintain as wildlife habitat and appropriate areas to develop trails or other recreation amenities. The project now also includes design for interpretive messaging and design for placement of public art. Funding in the 2021-2025 CIP plan includes $3.2 million for a Byxbee Park Comple- tion project, which is part of the Infrastructure Plan, mostly offset with funds from park dedica- tion impact fees, to complete improvements to Byxbee Park since the landfill capping work is finished. Streets and Sidewalks The Streets and Sidewalks category includes projects to maintain and repair the City’s streets, sidewalks, bridges, streetlights, and other related infrastructure such as curb and gutter, medi- ans, and thermoplastic lane markings. This category has seen significant funding increases in recent years in response to City Council goals and recommendations of the Infrastructure Blue Ribbon Commission (IBRC). The 2021-2025 CIP includes funding totaling $50.9 million in this category, with $14.6 million allocated in FY 2021. Of this amount, $2.4 million is recommended to be reappropriated for the continuation of projects approved by the City Council in prior fiscal years. In 2011, the City Council increased funding for the Street Maintenance program and set a goal of raising the citywide average Pavement Condition Index (PCI) score from 72 to 85 by 2021. A PCI score of 85 represents “very good“ to “excellent“ pavement conditions and the goal was reached in 2018, three years earlier than the initial goal. The funding level for Sidewalk CAPITAL IMPROVEMENT FUND 60 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Repairs was also increased to allow the Sidewalks program to eliminate its accumulation of deferred maintenance or “catch-up“ work and to achieve its 1986 goal of completing work in all 23 sidewalk “districts“ by 2016. An assessment study for sidewalk repairs was completed in early 2019 and offers suggestions for establishing goals and priorities for the sidewalk repair project moving forward. The total funding amount of $50.9 million for Streets and Sidewalks over the 2021-2025 CIP represents approximately 15.4 percent of the total Capital Improvement Fund expenses. Recurring Projects There are seven recurring projects in the Streets and Sidewalks category: Curb and Gutter Repairs (2021: $0.1 million, 2021-2025 CIP: $0.7 million) Sidewalk Repairs (2021: $2.2 million, 2021-2025 CIP: $7.8 million) Sign Reflectivity Upgrade (2021: $0.1 million, 2021-2025 CIP: $0.4 million) Street Lights Improvements (2021: $0.5 million, 2021-2025 CIP: $1.4 million) Street Maintenance (2021: $5.1 million, 2021-2025 CIP: $25.5 million) Thermoplastic Lane Marking and Striping (2021: $0.1 million, 2021-2025 CIP: $0.6 million) City Bridge Improvements (2021: $0.1 million, 2021-2025 CIP: $1.0 million) Activities for FY 2021 under these projects consist of ongoing planned repair activities, as well as providing funding for unplanned needs that may arise. The Street Maintenance project will continue to implement its five-year plan in close coordination with Utilities and Transportation projects. With the Pavement Condition Index (PCI) goal met in 2018, the annual Street Mainte- nance project budget will be reassessed to be funded at a level sufficient to maintain the new street conditions while continuing to focus on streets that have a PCI score of less than 60. The passage of SB1 for Road Maintenance and Rehabilitation is estimated to provide an additional $1.2 million annually starting in FY 2019. This funding could supplement and enhance the City’s street maintenance program, possibly allowing some funds to be reallocated to other capital projects with Council approval. Non-Recurring Projects While most Streets and Sidewalks work is completed through recurring projects, there are a few non-recurring projects with activities planned for FY 2021. The Street Lights Condition Assess- ment project, which will continue to compile an inventory of the City’s entire lighting system to determine the best approach to prolong the life of the system. Infrastructure Inventory - Summary of Streets and Sidewalks CLASSIFICATION QUANTITY Streets maintained 471 lane miles Sidewalks maintained 7.5 million square feet Streetlights maintained 6,500 Bridges maintained 74 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 61 Traffic and Transportation Projects in this category support the development and implementation of a sustainable trans- portation system, including walking, biking, ridesharing, transit, and other methods of non-sin- gle occupancy vehicle (SOV). Planning, design, and construction of Traffic and Transportation projects are managed jointly by the Office of Transportation and the Public Works Department. The 2021-2025 CIP includes funding totaling $62.2 million in this category, with $24.5 million allocated in FY 2021. Of this amount, $12.3 million is recommended to be reappropriated from FY 2020 for projects that are continuing into FY 2021. The Traffic and Transportation category includes the following Council Infrastructure Plan projects: Bicycle and Pedestrian Transporta- tion Plan Implementation, Charleston/Arastradero Corridor, the Downtown Automated Parking Guidance Systems, Access Controls, and Revenue Collection Equipment, and the Highway 101 Pedestrian/Bicycle Overpass. These projects account for $5.0 million or 1.7 percent of the total Infrastructure Plan. The overall funding level of $62.2 million for Traffic and Transportation proj- ects over the 2021-2025 CIP represents 18.8 percent of the total Capital Improvement Fund expenses. Recent Accomplishments Completed Phases 1 and 2 of the Charleston/Arastradero Corridor Improvements project. Started construction on the Highway 101 Pedestrian/Bicycle Overpass project. 2021-2025 Capital Improvement Program Recurring Projects There are five recurring projects within the Traffic and Transportation category. Bicycle and Pedestrian Transportation Plan Implementation (2021: $2.3 million, 2021-2025 CIP: $11.3 million) Parking District Implementation (2021: $0.2 million, 2021-2025 CIP: $1.1 million) Safe Routes to Schools (2021: $0.7 million, 2021-2025 CIP: $2.1 million) Traffic Signal and Intelligent Transportation Systems (2021: $1.7 million, 2021-2025 CIP: $5.6 million) Transportation and Parking Improvements (2021: $0.5 million, 2021-2025 CIP: $2.8 million) Together, these projects improve transportation and safety and implement the Palo Alto Bicycle and Pedestrian Plan, which represents the majority of funding within this category. This project provides funding for the design and construction of bicycle boulevards, enhanced bikeways, shared-use paths, bicycle parking, and a citywide bicycle sharing system. This project is part of the Infrastructure Plan, and partially funded through transfers from the Stanford University Medical Center Development Agreement Fund. Non-Recurring Projects Non-recurring projects within this category include parking, intersection, and street projects. These projects are for discrete activities such as parking signage, parking wayfinding, intersec- tion improvements, railroad grade separation, or projects not included within the Bicycle and CAPITAL IMPROVEMENT FUND 62 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Pedestrian Transportation Plan. There are several significant projects that fall within this cate- gory: Churchill Avenue/Alma Street Railroad Crossing (FY 2021 and 2021-2025 CIP: $4.6 million) El Camino Real Pedestrian Safety and Streetscape (2021: $3.0 million, 2021-2025 CIP: $6.5 million) Embarcadero Road at El Camino Improvements (2021-2025 CIP: $7.4 million) Quarry Road Improvements and Transit Center Access (2021: $0.9 million, 2021-2025 CIP: $5.0 million) Railroad Grade Separation (2021: $4.3 million, 2021-2025 $9.3 million) Summary of Capital Activity CAPITAL IMPROVEMENT FUND Project Number Project Title FY 2019 Actuals FY 2020 Estimate FY 2021 Proposed FY 2022 FY 2023 FY 2024 FY 2025 5-Year Total Source of Funds Beginning Fund Balance Infrastructure Reserve - Beginning Fund Balance 51,519,893 51,456,186 45,644,885 28,603,410 27,306,155 22,579,245 4,774,778 45,644,885 Reserve: Debt Service 0 0 0 0 0 2,500,000 5,000,000 0 Reserve: Infrastructure Plan 25,537,577 58,812,390 0 0 0 0 0 0 Reserve: Library Bond Proceeds 638,000 588,000 588,000 588,000 588,000 588,000 588,000 588,000 Reserve: Roth Building & Sea Scout Building TDRs 4,687,468 4,919,782 4,919,782 4,919,782 4,919,782 4,919,782 4,919,782 4,919,782 Reserve: Future Capital Needs 0 0 0 0 0 0 2,500,000 0 Total Beginning Fund Balance 82,382,938 115,776,358 51,152,667 34,111,192 32,813,937 30,587,027 17,782,560 51,152,667 General Fund Contributions Annual General Fund Capital Transfer 16,958,000 18,823,000 15,697,000 16,081,000 16,473,000 16,875,000 17,288,000 82,414,000 Transfer from General Fund - TOT Funding 8,691,712 10,335,003 15,011,000 14,604,000 15,020,000 15,456,000 15,920,000 76,011,000 Interest Income 1,279,833 1,178,500 1,189,600 1,189,600 1,189,600 1,189,600 1,189,600 5,948,000 Total General Fund Contributions 26,929,545 30,336,503 31,897,600 31,874,600 32,682,600 33,520,600 34,397,600 164,373,000 Project Reimbursements & Fund Transfers Transfer from California Avenue Parking District Fund PL-16002 Parking Management and System Implementation 0 138,000 0 0 0 0 0 0 Total Transfer 0 138,000 0 0 0 0 0 0 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 63 Transfer from Charleston/Arastradero Fund PE-13011 Charleston/Arastradero Corridor Project 0 18,000 0 0 0 0 0 0 Total Transfer 0 18,000 0 0 0 0 0 0 Transfer from Community Center Impact Fee Fund AC-18001 JMZ Renovation 1,025,717 1,671,860 125,498 0 0 0 0 125,498 PE-08001 Rinconada Park Improvements 0 1,999,529 400,000 0 0 0 0 400,000 Total Transfer 1,025,717 3,671,389 525,498 0 0 0 0 525,498 Transfer from Gas Tax Fund PE-13011 Charleston/Arastradero Corridor Project 1,170,237 0 0 0 0 0 0 0 PL-00026 Safe Routes To School 100,000 100,000 100,000 100,000 100,000 100,000 100,000 500,000 PE-86070 Street Maintenance 1,300,000 2,453,997 2,610,690 2,610,690 2,610,690 2,610,690 2,610,690 13,053,450 Total Transfer 2,570,237 2,553,997 2,710,690 2,710,690 2,710,690 2,710,690 2,710,690 13,553,450 Transfer from Library Impact Fee Fund LB-21000 Library Automated Material Handling 0 0 80,000 180,000 180,000 190,000 0 630,000 Total Transfer 0 0 80,000 180,000 180,000 190,000 0 630,000 Transfer from New Public Safety Facilities Impact Fee Fund PE-15001 New Public Safety Building 0 0 350,000 0 0 0 0 350,000 Total Transfer 0 0 350,000 0 0 0 0 350,000 Transfer from Parks Dedication Fee Fund PE-14018 Baylands Boardwalk Improvements 470,000 0 0 0 0 0 0 0 PE-18006 Byxbee Park Completion 0 0 2,400,000 0 0 0 0 2,400,000 Total Transfer 470,000 0 2,400,000 0 0 0 0 2,400,000 Transfer from Parks Development Impact Fee Fund PE-19003 Birch Street Improvements 0 2,720,000 0 0 0 0 0 0 PG-19001 Baylands Athletic Center 10.5 Acre Expansion Plan 100,000 0 0 0 0 0 0 0 PG-18001 Dog Park Installation and Renovation 0 150,000 0 0 150,000 0 150,000 300,000 PG-19000 Park Restroom Installation 0 350,000 0 350,000 0 350,000 0 700,000 PG-18002 Turf Management Plan 0 0 0 0 0 0 0 0 Total Transfer 100,000 3,220,000 0 350,000 150,000 350,000 150,000 1,000,000 Project Number Project Title FY 2019 Actuals FY 2020 Estimate FY 2021 Proposed FY 2022 FY 2023 FY 2024 FY 2025 5-Year Total CAPITAL IMPROVEMENT FUND 64 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Transfer from Refuse Fund PF-17000 Municipal Service Center A, B, & C Roof Replacement 0 9,500 10,250 0 0 0 0 10,250 PF-16006 Municipal Service Center Lighting, Mechanical, and Electrical Improvements 0 27,000 27,000 0 0 0 0 27,000 Total Transfer 0 36,500 37,250 0 0 0 0 37,250 Transfer from Residential Parking Permits Program Fund PL-16002 Parking Management and System Implementation 0 255,000 0 0 0 0 0 0 Total Transfer 0 255,000 0 0 0 0 0 0 Transfer from San Antonio/West Bayshore Fund PL-05030 Traffic Signal and Intelligent Transportation System Upgrades 0 1,283,400 0 0 0 0 0 0 Total Transfer 0 1,283,400 0 0 0 0 0 0 Transfer from Stanford University Medical Center Development Agreement Fund PL-04010 Bicycle and Pedestrian Plan-Implementation Project 0 0 1,200,000 1,200,000 0 0 0 2,400,000 PE-18004 Fire Station 4 Replacement 0 0 750,000 0 0 0 0 750,000 PE-15007 New Downtown Parking Garage 0 0 0 5,541,000 9,072,000 0 0 14,613,000 PE-15001 New Public Safety Building 0 0 800,000 0 0 0 0 800,000 PL-16000 Quarry Road Improvements 0 200,000 0 1,493,513 0 0 0 1,493,513 Pl-17001 Railroad Grade Separation 0 0 500,000 500,000 0 0 0 1,000,000 PL-19000 Traffic Signal Emergency Vehicle Preemption 11,200 0 0 0 0 0 0 0 Total Transfer 11,200 200,000 3,250,000 8,734,513 9,072,000 0 0 21,056,513 Transfer from Storm Drainage Fund PE-13011 Charleston/Arastradero Corrider Project 330,000 0 0 0 0 0 0 0 Total Transfer 330,000 0 0 0 0 0 0 0 Transfer from Traffic Impact Fee Fund PL-05030 Traffic Signal and Intelligent Transportation System Upgrades 506,475 0 400,000 395,000 395,000 395,000 395,000 1,980,000 Total Transfer 506,475 0 400,000 395,000 395,000 395,000 395,000 1,980,000 Transfer from University Avenue Parking District Fund PL-15004 Downtown Parking Wayfinding 280,015 40,000 0 0 0 0 0 0 PE-18002 High Street Parking Garage Waterproofing Study 300,000 0 0 0 0 0 0 0 PF-18000 Parking Lot J Elevator Modernization 50,000 0 0 0 0 0 0 0 Project Number Project Title FY 2019 Actuals FY 2020 Estimate FY 2021 Proposed FY 2022 FY 2023 FY 2024 FY 2025 5-Year Total CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 65 PL-16002 Parking Management & System Implementation 0 752,220 0 0 0 0 0 0 PF-14003 University Avenue Parking Improvements 63,517 343,000 100,000 115,000 75,000 65,000 355,000 Total Transfer 693,532 1,135,220 100,000 115,000 75,000 65,000 0 355,000 Transfer from University Avenue Parking In Lieu Fund PE-15007 New Downtown Parking Garage 0 0 0 5,541,000 0 0 0 5,541,000 Total Transfer 0 0 0 5,541,000 0 0 0 5,541,000 Transfer from Utilities Administration Fund PE-09003 City Facility Parking Lot Maintenance 0 0 0 0 100,000 0 0 100,000 PF-02022 Facility Interior Finishes Replacement 370,000 0 169,000 176,000 0 0 0 345,000 PF-17000 Municipal Service Center A, B, & C Roof Replacement 0 342,000 369,000 0 0 0 0 369,000 PF-16006 Municipal Service Center Lighting, Mechanical, and Electrical Improvements 0 972,000 972,000 0 0 0 0 972,000 PE-19001 Water, Gas, Wastewater Office Remodel 70,000 654,000 0 0 0 0 0 0 Total Transfer 440,000 1,968,000 1,510,000 176,000 100,000 0 0 1,786,000 Transfer from Vehicle Maintenance Fund PF-02022 Facility Interior Finishes Replacement 0 0 0 0 68,000 0 0 68,000 PF-17000 Municipal Service Center A, B, & C Roof Replacement 0 190,000 205,000 0 0 0 0 205,000 PF-16006 Municipal Service Center Lighting, Mechanical, and Electrical Improvements 0 540,000 540,000 0 0 0 0 540,000 Total Transfer 0 730,000 745,000 0 68,000 0 0 813,000 Grants/Other Revenue AC-86017 Art in Public Spaces: Federal Grant and Private Donations 175,000 0 0 0 0 0 0 0 FD-21000 Automated External Defibrillator Replacement: Stanford 0 0 38,000 0 0 0 0 38,000 FD-20000 Cardiac Monitor Replacement: Stanford 0 142,000 0 0 0 0 0 0 PE-13011 Charleston/Arastradero Corridor Project: VTA Grant 315,929 206,290 1,303,710 0 0 0 0 1,303,710 PL-20000 Churchill Avenue/Alma Street Railroad Crossing Safety Improvements: CalTrans Section 130 0 500,000 4,000,000 0 0 0 0 4,000,000 PE-17010 Civic Center Electrical Upgrade & EV Charger Installation: BAAQMD Grant 0 243,000 0 0 0 0 0 0 PL-18000 El Camino Real Pedestrian Safety and Streetscape Project: VTA Grant 0 0 2,000,000 2,000,000 1,138,750 0 0 5,138,750 FD-22000 Extrication Tool Replacement: Stanford 0 0 0 42,700 0 0 0 42,700 FD-14002 Fire Ringdown System Replacement: Stanford 0 45,000 0 0 0 0 0 0 PG-13003 Golf Reconfiguration & Baylands Athletic Center Improvements: SF Creek Joint Powers and Certificates of Participation 0 2,250,000 0 0 0 0 0 0 Project Number Project Title FY 2019 Actuals FY 2020 Estimate FY 2021 Proposed FY 2022 FY 2023 FY 2024 FY 2025 5-Year Total CAPITAL IMPROVEMENT FUND 66 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET PE-11011 Highway 101 Pedestrian/Bicycle Overpass Project: Santa Clara County & OBAG Grants and Google Reimbursement 0 9,350,000 1,500,000 0 0 0 0 1,500,000 AC-18001 JMZ Renovation: IMLS Grant 18,956 240,200 0 0 0 0 0 0 PE-18000 New California Avenue Area Parking Garage: Certificates of Participation 41,995,000 0 0 0 0 0 0 0 PE-15001 New Public Safety Building: Certificates of Participation 0 0 102,000,000 0 0 0 0 102,000,000 PE-12011 Newell Road/San Francisquito Creek Bridge Replacement: Caltrans & Silicon Valley Water 56,797 1,949,600 5,075,000 5,775,000 0 0 0 10,850,000 PL-17001 Railroad Grade Separation: Measure B 0 2,000,000 500,000 500,000 1,000,000 1,000,000 1,000,000 4,000,000 PL-00026 Safe Routes To School: VTA Grant 0 0 459,677 459,677 0 0 0 919,354 FD-20001 Self-Contanied Breathing Apparatus (SCBA) Air Compressor Replacement: Stanford 0 0 16,300 0 0 0 0 16,300 FD-18000 Self-Contained Breathing Apparatus (SCBA) Replacement: Stanford 5,958 3,700 0 0 0 0 0 0 PE-86070 Street Maintenance: State Grant 505,463 2,172,180 965,000 965,000 465,000 465,000 465,000 3,325,000 PL-12000 Transportation and Parking Improvements ( Local Community Reimbursement)8,060 0 0 0 0 0 0 0 FD-20002 Thermal Imaging Cameras Replacement: Stanford 0 8,500 0 0 0 0 0 0 PL-05030 Traffic Signal and Intelligent Transportation System Upgrades: Measure B 52,552 700,000 300,000 300,000 300,000 300,000 300,000 1,500,000 Total Grants/Other Revenue 43,133,715 19,810,470 118,157,687 10,042,377 2,903,750 1,765,000 1,765,000 134,633,814 Total Revenue 76,210,421 65,356,479 162,163,725 54,578,180 48,337,040 38,996,290 39,418,290 343,493,525 Total Sources 158,593,359 181,132,837 213,316,392 88,689,372 81,150,977 69,583,317 57,200,850 394,646,192 Use of Funds Buildings & Facilities PF-93009 Americans With Disabilities Act Compliance 227,637 200,000 671,826 342,800 369,000 447,400 530,000 2,361,026 PE-19002 Animal Shelter Renovation 270,962 2,939,971 582,657 0 0 0 0 582,657 PE-14018 Baylands Boardwalk Improvements 1,417,456 164,657 110,519 0 0 0 0 110,519 PE-17006 Baylands Flood Protection Levee Improvements 133,333 0 1,098,000 0 0 0 0 1,098,000 AC-14001 Baylands Nature Interpretive Center Exhibit Improvements 15,200 0 0 0 0 0 0 0 PE-15029 Baylands Nature Interpretive Center Facility Improvements 0 2,008 0 0 0 0 0 0 PF-01003 Building Systems Improvements 26,223 250,008 715,883 239,954 237,400 258,200 282,200 1,733,637 PE-20001 City Bridge Improvements 0 0 94,400 137,900 348,600 185,200 198,600 964,700 PE-20002 City Facilities Assessment and Record Plan Management System 0 150,000 164,800 0 0 0 0 164,800 PE-09003 City Facility Parking Lot Maintenance 27,831 319,725 819,941 233,500 489,200 0 0 1,542,641 PE-12017 City Hall First Floor Renovations 14,959 188,402 0 0 0 0 0 0 PE-17002 City Hall Floor 3 Remodel 22,355 0 0 0 0 0 0 0 Project Number Project Title FY 2019 Actuals FY 2020 Estimate FY 2021 Proposed FY 2022 FY 2023 FY 2024 FY 2025 5-Year Total CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 67 PE-17008 City Hall Floor 4 Remodel 466,360 7,500 0 0 0 0 0 0 PE-17009 City Hall Floor 5 Remodel 432,096 32,002 0 0 0 0 0 0 PE-19000 City Hall Space Planning 0 0 631,700 0 0 0 0 631,700 PE-17010 Civic Center Electrical Upgrade & EV Charger Installation 18,360 243,000 679,800 0 0 0 0 679,800 PE-18016 Civic Center Fire Life Safety and Electrical Upgrades 14,088 269,104 356,956 0 0 0 0 356,956 PE-15020 Civic Center Waterproofing Study and Repairs 968 49,800 617,255 0 0 0 0 617,255 PF-15005 Emergency Facilities Improvement 0 14,370 0 0 0 0 0 0 PF-02022 Facility Interior Finishes Replacement 75,238 564,100 960,626 261,331 365,414 270,146 315,700 2,173,217 FD-14002 Fire Ringdown System Replacement 244,144 156,000 0 0 0 0 0 0 PF-14002 Fire Station 1 Improvements 15,242 84,800 0 0 0 0 0 0 PE-15003 Fire Station 3 Replacement 3,878,007 2,423,274 0 0 0 0 0 0 PE-18004 Fire Station 4 Replacement 0 350,000 1,700,000 4,075,000 4,075,000 0 0 9,850,000 PE-18002 High and Bryant Street Garages Waterproofing and Repairs 26,472 213,454 210,446 0 0 0 0 210,446 PD-14000 Internal Alarm System Replacement 50,759 26,800 0 0 0 0 0 0 AC-18001 JMZ Renovation 474,155 1,202,200 2,231,551 0 0 0 0 2,231,551 LB-21000 Library Automated Material Handling 0 0 95,500 220,900 232,500 255,000 0 803,900 PE-14015 Lucie Stern Buildings Mechanical and Electrical Upgrades 2,420,500 505,455 0 0 0 0 0 0 PF-17000 Municipal Service Center A, B, & C Roof Replacement 0 0 2,169,800 0 0 0 0 2,169,800 PF-16006 Municipal Service Center Lighting, Mechanical, and Electrical Improvements 69,649 257,000 6,038,732 0 0 0 0 6,038,732 PE-18000 New California Avenue Area Parking Garage 5,044,555 43,587,279 0 0 0 0 0 0 PE-15007 New Downtown Parking Garage 510,437 1,073,121 35,172 5,103,000 8,197,500 13,299,500 0 26,635,172 PE-15001 New Public Safety Building 1,563,200 7,000,000 102,800,000 3,400,000 400,000 0 0 106,600,000 PF-18000 Parking Lot J Elevator Modernization 413,998 286,001 0 0 0 0 0 0 AC-18000 Performing Arts Venue Seat Replacement 0 0 439,400 0 0 0 0 439,400 PF-00006 Roofing Replacement 770,934 184,435 867,602 474,900 285,629 674,076 621,886 2,924,093 PF-07011 Roth Building Maintenance 1,420 10,000 31,973 0 0 0 0 31,973 PF-14003 University Avenue Parking Improvements 48,116 0 462,400 160,500 133,300 137,200 893,400 PE-15011 Ventura Buildings Improvements 143,871 25,000 2,034,197 0 0 0 0 2,034,197 PE-19001 Water, Gas, Wastewater Office Remodel 5,996 90,765 692,035 0 0 0 0 692,035 Total Building & Facilities 18,844,521 62,870,231 127,313,171 14,649,785 15,133,543 15,526,722 1,948,386 174,571,607 Department Technology Upgrades and Improvements FD-21000 Automated External Defibrillator Replacement 0 0 219,700 0 0 0 0 219,700 FD-20000 Cardiac Monitor Replacement 0 850,000 0 0 0 0 0 0 FD-22000 Extrication Tool Replacement 0 0 0 283,400 0 0 0 283,400 PD-20000 Police Video Recording Systems Replacement 0 48,000 114,400 182,700 0 0 0 297,100 FD-20001 Self-Contanied Breathing Apparatus (SCBA) Air Compressor Replacement 0 0 94,500 0 0 0 0 94,500 Project Number Project Title FY 2019 Actuals FY 2020 Estimate FY 2021 Proposed FY 2022 FY 2023 FY 2024 FY 2025 5-Year Total CAPITAL IMPROVEMENT FUND 68 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET FD-18000 Self-Contained Breathing Apparatus (SCBA) Replacement 31,356 20,000 0 0 0 0 0 0 FD-20002 Thermal Imaging Cameras Replacement 0 99,000 0 0 0 0 0 0 Total Department Technology Upgrades and Improvements 31,356 1,017,000 428,600 466,100 0 0 0 894,700 Parks & Open Space AC-86017 Art In Public Spaces 208,945 1,239,055 1,738,194 280,700 190,800 225,372 245,900 2,680,966 PG-06001 Athletic Courts Resurfacing 55,378 950,000 236,200 270,800 286,600 303,700 323,300 1,420,600 PG-19001 Baylands Athletic Center 10.5 Acre Expansion Plan 10,402 10,000 81,400 0 0 0 0 81,400 PG-17000 Baylands Comprehensive Conservation Plan 205,089 90,000 7,100 0 0 0 0 7,100 OS-09002 Baylands Levee Repair for Public Safety Access 0 0 0 0 0 375,202 0 375,202 PG-06003 Benches, Signage, Walkways, Perimeter Landscaping 420,374 150,000 247,920 223,300 236,900 251,700 268,700 1,228,520 PE-19003 Birch Park Improvements 0 2,720,000 0 0 0 0 0 0 PE-16000 Bol Park Improvements 0 0 0 0 0 685,100 0 685,100 PE-17005 Boulware Park Improvements 23,830 20,102 442,499 0 0 0 0 442,499 PE-18006 Byxbee Park Completion 187,251 16,074 3,181,146 0 0 0 0 3,181,146 PG-14002 Cameron Park Improvements 0 20,000 197,800 0 0 0 0 197,800 PG-18001 Dog Park Installation and Renovation 15,746 0 164,800 0 200,000 0 225,600 590,400 OS-18000 Foothills Park Boronda Lake Dock Replacement 0 0 230,700 0 0 0 0 230,700 PE-20000 Foothills Park Dam Seepage Investigation & Repairs 0 30,000 0 0 0 0 0 0 PE-21000 Foothills Park Improvement Project 0 0 0 0 83,300 397,200 0 480,500 PG-17001 Foothills Park, Pearson Arastradero Preserve, and Esther Clark Park Comprehensive Conservation Plan 0 0 319,200 0 0 170,400 0 489,600 PG-18000 Golf Course Net and Artificial Turf Replacement 0 0 0 970,000 0 0 0 970,000 PG-13003 Golf Course Reconfiguration & Baylands Athletic Center Improvements 2,455 10,000 0 0 0 0 0 0 PG-21000 Heritage Park Site Amenities Replacement 0 0 0 0 0 0 195,500 195,500 PE-18012 Hoover Park Improvements 0 0 0 0 0 0 1,255,700 1,255,700 PE-21002 Johnson Park Renovation 0 0 0 0 0 474,800 1,573,900 2,048,700 PE-21003 Magical Bridge Playground Rubber and Synthetic Turf Resurfacing 0 0 404,050 463,250 0 0 0 867,300 PE-17000 Mitchell Park Adobe Creek Bridge Replacement 306,499 0 0 0 0 0 0 0 PE-18010 Mitchell Park Improvements 0 0 0 0 374,000 1,059,895 0 1,433,895 OS-09001 Off-Road Pathway Resurfacing And Repair 0 173,000 324,000 136,900 147,300 158,600 171,500 938,300 OS-00002 Open Space Lakes And Pond Maintenance 14,406 71,350 113,350 59,900 64,200 68,700 74,000 380,150 OS-00001 Open Space Trails and Amenities 286,674 355,175 192,300 220,400 233,300 247,200 263,200 1,156,400 PG-09002 Parks and Open Space Emergency Repairs 177,434 40,000 211,721 201,500 266,100 306,900 325,000 1,311,221 PG-19000 Park Restroom Installation 0 0 0 440,900 0 494,400 0 935,300 Project Number Project Title FY 2019 Actuals FY 2020 Estimate FY 2021 Proposed FY 2022 FY 2023 FY 2024 FY 2025 5-Year Total CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 69 PE-13003 Parks, Trails, Open Space, & Recreation Master Plan 3,637 0 0 0 0 0 0 0 PE-21001 Pearson Arastradero Improvement Project 0 0 0 0 70,800 306,700 0 377,500 OS-18001 Pearson Arastradero Preserve Parking Lot Improvement 0 0 170,300 0 0 0 0 170,300 PG-14001 Peers Park Improvements 0 0 0 0 0 289,600 0 289,600 PG-14000 Ramos Park Improvements 0 20,000 0 0 0 0 0 0 PE-08001 Rinconada Park Improvements 232,671 1,402,933 1,457,296 0 538,300 0 3,073,800 5,069,396 PE-12003 Rinconada Park Master Plan and Design 8,938 0 0 0 0 0 0 0 PE-18015 Robles Park Improvements 0 0 0 0 0 953,500 0 953,500 PG-14003 Seale Park Improvements 0 0 0 67,800 360,000 0 0 427,800 PG-18002 Turf Management Plan 0 0 109,900 0 0 0 0 109,900 PG-22000 Werry Park Playground Improvements 0 0 0 126,700 0 0 0 126,700 Total Parks & Open Space 2,159,729 7,317,689 9,829,876 3,462,150 3,051,600 6,768,969 7,996,100 31,108,695 Streets and Sidewalks PE-17004 California Ave District Gateway Signs 729 142,886 0 0 0 0 0 0 PE-18001 CalTrain Corridor Video Management System Installation 749,178 99,232 0 0 0 0 0 0 PO-12001 Curb and Gutter Repairs 450,166 744,397 123,853 126,700 134,200 142,400 151,800 678,953 PE-13017 El Camino Median Landscape Improvements 0 0 108,300 0 0 0 901,500 1,009,800 PE-12011 Newell Road/San Francisquito Creek Bridge Replacement 244,356 2,449,600 6,017,111 6,354,300 0 0 0 12,371,411 PO-89003 Sidewalk Repairs 1,658,872 1,534,312 2,195,982 1,395,500 1,400,900 1,406,500 1,410,500 7,809,382 PO-11000 Sign Reflectivity Upgrade 10,207 60,660 131,400 66,900 71,700 76,800 82,700 429,500 PE-13014 Street Lights Condition Assessment 0 0 241,778 0 0 0 0 241,778 PO-05054 Street Lights Improvements 100,374 38,306 456,287 203,800 219,000 235,500 254,000 1,368,587 PE-86070 Street Maintenance 5,353,373 13,386,539 5,053,700 5,074,200 5,091,900 5,110,200 5,123,400 25,453,400 PO-11001 Thermoplastic Lane Marking and Striping 13,006 98,328 133,400 97,100 103,300 110,100 117,800 561,700 Total Streets and Sidewalks 8,580,261 18,554,260 14,461,811 13,318,500 7,021,000 7,081,500 8,041,700 49,924,511 Traffic and Transportation PL-04010 Bicycle and Pedestrian Plan-Implementation Project 2,367,931 402,385 2,273,595 3,000,000 2,950,000 3,100,000 0 11,323,595 PE-13011 Charleston/Arastradero Corridor Project 4,589,736 12,300,000 0 0 0 0 0 0 PL-20000 Churchill Avenue/Alma Street Railroad Crossing Safety Improvements 0 400,000 4,636,200 0 0 0 0 4,636,200 PL-14000 Churchill Avenue Enhanced Bikeway 113 181,534 3,159,466 0 0 0 0 3,159,466 PL-15002 Downtown Automated Parking Guidance Systems, Access Controls, and Revenue Collection Equipment 2,359 448 2,726,860 0 0 0 0 2,726,860 PL-16001 Downtown Mobility and Safety Improvements 1,803,034 100,000 0 0 0 0 0 0 PL-15004 Downtown Parking Wayfinding 346,824 589,038 0 0 0 0 0 0 PL-18000 El Camino Real Pedestrian Safety and Streetscape Project 108,594 43,167 2,954,181 2,202,700 1,349,050 0 0 6,505,931 Project Number Project Title FY 2019 Actuals FY 2020 Estimate FY 2021 Proposed FY 2022 FY 2023 FY 2024 FY 2025 5-Year Total CAPITAL IMPROVEMENT FUND 70 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET PL-15001 Embarcadero Road at El Camino Real Improvements 88,607 0 0 1,506,400 2,525,300 3,394,900 0 7,426,600 PL-19000 Emergency Vehicle Traffic Signal Preemption System Pilot 0 597,500 0 0 0 0 0 0 PE-11011 Highway 101 Pedestrian/Bicycle Overpass Project 1,084,589 17,792,509 0 0 0 0 0 0 PL-15003 Parking District Implementation 32,760 307,257 173,674 201,900 218,800 236,700 256,800 1,087,874 PL-16002 Parking Management & System Implementation 248 627,000 563,600 0 0 0 0 563,600 PL-16000 Quarry Road Improvements 555,425 6,000 928,400 1,353,900 2,748,000 0 0 5,030,300 PL-17001 Railroad Grade Separation 1,232,373 1,706,421 4,260,625 1,233,600 1,271,900 1,311,400 1,190,700 9,268,225 PL-00026 Safe Routes To School 89,373 218,800 661,177 677,477 241,200 266,500 260,600 2,106,954 PL-05030 Traffic Signal and Intelligent Transportation System 368,200 1,695,700 1,672,355 935,950 886,250 980,700 1,076,400 5,551,655 PL-12000 Transportation and Parking Improvements 290,303 330,811 471,342 487,000 518,600 552,900 819,200 2,849,042 Total Traffic and Transportation 12,960,469 37,298,570 24,481,475 11,598,927 12,709,100 9,843,100 3,603,700 62,236,302 Administration AS-10000 Capital Improvement Fund Administration 169,401 587,420 310,267 2,713,973 2,987,707 2,924,466 3,933,422 12,869,835 Total Administration 169,401 587,420 310,267 2,713,973 2,987,707 2,924,466 3,933,422 12,869,835 Total Project Expenses 42,745,737 127,645,170 176,825,200 46,209,435 40,902,950 42,144,757 25,523,308 331,605,650 Transfers to Other Funds Debt Service Fund 0 0 2,380,000 2,380,000 2,375,000 2,370,000 2,365,000 11,870,000 General Benefits Funds (New California Avenue Parking Garage)53,757 2,335,000 0 0 0 0 0 0 Total Transfers to Other Funds 53,757 2,335,000 2,380,000 2,380,000 2,375,000 2,370,000 2,365,000 11,870,000 Debt Service Certificates of Participation Debt Repayment (New Public Safety Building)0 0 0 7,286,000 7,286,000 7,286,000 7,286,000 29,144,000 Golf Course Certificates of Participation Bond Issuance 17,507 0 0 0 0 0 0 0 Total Debt Service 17,507 0 0 7,286,000 7,286,000 7,286,000 7,286,000 29,144,000 Total Expenses 42,817,001 129,980,170 179,205,200 55,875,435 50,563,950 51,800,757 35,174,308 372,619,650 Reserves Reserve: Roth Building & Sea Scout Building TDRs 4,919,782 4,919,782 4,919,782 4,919,782 4,919,782 4,919,782 4,919,782 4,919,782 Reserve: Library Bond Proceeds 588,000 588,000 588,000 588,000 588,000 588,000 588,000 588,000 Reserve: Infrastructure Plan 58,812,390 0 0 0 0 0 0 0 Project Number Project Title FY 2019 Actuals FY 2020 Estimate FY 2021 Proposed FY 2022 FY 2023 FY 2024 FY 2025 5-Year Total CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 71 Reserve: Debt Service 0 0 0 0 2,500,000 5,000,000 7,500,000 7,500,000 Reserve: Future Capital Needs 0 0 0 0 0 2,500,000 5,000,000 5,000,000 Total Reserves 64,320,172 5,507,782 5,507,782 5,507,782 8,007,782 13,007,782 18,007,782 18,007,782 Total Ending Fund Balance (Infrastructure Reserve)51,456,186 45,644,885 28,603,410 27,306,155 22,579,245 4,774,778 4,018,760 4,018,760 Total Uses 158,593,359 181,132,837 213,316,392 88,689,372 81,150,977 69,583,317 57,200,850 394,646,192 Project Number Project Title FY 2019 Actuals FY 2020 Estimate FY 2021 Proposed FY 2022 FY 2023 FY 2024 FY 2025 5-Year Total CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 73 Buildings and Facilities CAPITAL IMPROVEMENT FUND 74 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Americans With Disabilities Act Compliance Americans With Disabilities Act Compliance Description This project provides funding for accessibility upgrades to City facilities and equipment. It includes continued funding for improvements such as path of travel, restroom upgrades, drink- ing fountains, and counters. This funding will also be utilized for other CIP project design or con- struction phases where accessibility improvements are identified. Justification In order to comply with the Americans with Disabilities Act (ADA) of 1990 and related regula- tions, the City prepared a Transition Plan and Self-Evaluation Final Study that identified physical obstacles and described improvements to make facilities, programs, and services accessible. Implementation of this program is ongoing. Supplemental Information The ADA Transition Plan, updated in 2019, established a schedule for accessibility upgrades to City facilities. Significant Changes 2021-2025 CIP: Funding increased for implementation of updated ADA Transition Plan. 2020-2024 CIP: Funding added to begin implementation of updated ADA Transition Plan that identified additional needs for City facilities. Fund: Capital Improvement Fund Category: Buildings and Facilities Project Location: Various Managing Department: Public Works IBRC Reference: Keep-up Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: PF-93009 Palo Alto Airport Terminal, January 2015 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 75 Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund N/A 929,916 200,000 671,826 342,800 369,000 447,400 530,000 2,361,026 0 N/A Total N/A 929,916 200,000 671,826 342,800 369,000 447,400 530,000 2,361,026 0 N/A Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 822,220 200,000 671,826 342,800 369,000 447,400 530,000 2,361,026 0 N/A Design N/A 107,696 0 0 0 0 0 0 0 0 N/A Total N/A 929,916 200,000 671,826 342,800 369,000 447,400 530,000 2,361,026 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Efficient and Effective Service Delivery Goal: C-1 Policy: C-1.8 Potential Board/Commission Review: Architectural Review Board Historic Resources Board Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. CAPITAL IMPROVEMENT FUND 76 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Animal Shelter Renovation Animal Shelter Renovation Description This project provides funding for interim facility improvements to the Animal Shelter that accompany operation of the shelter by a contractor. The improvements include expanding and remodeling the medical suite, providing a new 900 square foot modular building for office space, public educational programs, and expanded kennels. Justification The Animal Shelter, built in 1972, is outdated and does not meet modern standards for medical care. Fundraising for construction of a new, modern animal shelter will be needed but interim improvements to the current shelter are needed for Pets In Need to successfully operate the facility. Significant Changes 2020-2024 CIP: The agreement with Pets In Need was approved by Council in November 2018 and included an increase of $2.8 million in this project. This project was originally intended to fund works by Pets In Need but the work will now be managed by Public Works. Fund: Capital Improvement Fund Category: Buildings and Facilities Project Location: 3281 East Bayshore Road Managing Department: Public Works IBRC Reference: New Initial Project Start: Summer 2018 Initial Project Completion: Winter 2018 Revised Project Start: Revised Project Completion: Summer 2020 Project Number: PE-19002 City of Palo Alto Animal Shelter Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund 270,962 3,470,328 2,939,971 582,657 0 0 0 0 582,657 0 3,793,590 Total 270,962 3,470,328 2,939,971 582,657 0 0 0 0 582,657 0 3,793,590 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 77 Operating Impact There are no additional operating impacts anticipated from this project. Maintenance costs at the facility will be covered by Pets In Need as stipulated in the agreement with the City. Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 270,959 3,470,328 2,939,971 582,657 0 0 0 0 582,657 0 3,793,587 Total 270,959 3,470,328 2,939,971 582,657 0 0 0 0 582,657 0 3,793,587 Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.2 Potential Board/Commission Review: Architectural Review Board Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. CAPITAL IMPROVEMENT FUND 78 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Baylands Boardwalk Improvements Baylands Boardwalk Improvements Description This project provides funding for design and construction to replace the existing boardwalk at the Lucy Evans Baylands Nature Interpretive Center (Interpretive Center). Justification The Interpretive Center serves 80,000 visitors annually, approximately 2,900 of whom are ele- mentary school students. The Interpretive Center Boardwalk provides a unique opportunity for visitors to view a pristine salt marsh habitat that is home to the endangered Ridgeway's Rail and Salt Marsh Harvest Mouse. In 2014, the boardwalk was closed due to safety concerns. A seg- ment of the boardwalk was re-opened in 2015 after minor repair and structural improvements addressed safety issues. The replacement structure will be ADA accessible. Supplemental Information Council awarded a construction contract to Vortex Marine Construction, Inc. in June 2018 and the Boardwalk construction was completed in January 2019. During construction, a temporary access zone created within marsh per project requirements was impacted and will need to be restored. The restoration project anticipated to be completed by was completed in January 2020 and will need to be monitored and reported to the regulatory agencies one year after completion of the project. Significant Changes 2021-2025 CIP: The project completion date has been extended to complete restoration of the temporary construction access zone and monitoring and reporting to the regulatory agencies. Fund: Capital Improvement Fund Category: Buildings and Facilities Project Location: Baylands Nature Interpretive Center (2775 Embarcadero Road) Managing Department: Public Works IBRC Reference: Catch-up Initial Project Start: Spring 2015 Initial Project Completion: Fall 2015 Revised Project Start: Summer 2016 Revised Project Completion: Winter 2021 Project Number: PE-14018 Baylands Boardwalk, February 2015 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 79 2018-2022 CIP: Completion date extended to accommodate two construction phases and a lengthy permitting process. To avoid nesting birds in the baylands, the construction window is limited to five months from September 1 through January 31. The project schedule extension assumes approximately 18 months for environmental and permitting review and approval. 2017-2021 CIP: Project schedule revised to include design and construction phases. Design and construction budget added through Fiscal Year 2016 Council action included in project budget. Operating Impact This project is not anticipated to impact operating expenses. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund 1,741,782 265,276 164,657 110,519 0 0 0 0 110,519 0 2,016,958 Transfer from Parks Development Impact Fee Fund 470,000 0 0 0 0 0 0 0 0 0 470,000 Total 2,211,782 265,276 164,657 110,519 0 0 0 0 110,519 0 2,486,958 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 1,263,438 190,603 164,657 110,519 0 0 0 0 110,519 0 1,538,614 Design 948,335 74,673 0 0 0 0 0 0 0 0 948,335 Total 2,211,773 265,276 164,657 110,519 0 0 0 0 110,519 0 2,486,949 Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.3 Potential Board/Commission Review: Architectural Review Board Historic Resources Board Parks and Recreation Commission Environmental Impact Analysis: This project requires a CEQA Environmental Impact Report CAPITAL IMPROVEMENT FUND 80 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Baylands Flood Protection Levee Improvements Baylands Flood Protection Levee Improvements Description This project provides funding for the design and environmental review of improvements to the existing network of flood protection levees in the Palo Alto Baylands between the San Francis- quito Creek and Mountain View. The project will be designed to provide one percent (100-year) protection from tidal flooding, including the impacts of 50 years of future sea level rise. Justification Approximately 2,700 properties in Palo Alto are subject to tidal flooding and are thereby required to purchase flood insurance and face restrictions on construction of new or remodeled buildings. Future construction of this project would provide flood protection, as well as relief to residents and businesses from flood insurance costs and building restrictions. Supplemental Information This project will be implemented as an element of the San Francisquito Creek Joint Powers Authority (JPA) SAFER Bay Project, which is designing improvements to the Bayfront levees between Mountain View and Redwood City. The project will also be coordinated with the Santa Clara Valley Water District and the City of Mountain View, who are pursuing independent stud- ies of potential levee improvements. Construction funding will likely be sought through a regional ballot measure for a special tax or assessment in the affected communities. Fund: Capital Improvement Fund Category: Buildings and Facilities Project Location: Baylands Nature Preserve (2500 Embarcadero Road) Managing Department: Public Works IBRC Reference: New Initial Project Start: Summer 2016 Initial Project Completion: Fall 2017 Revised Project Start: Spring 2019 Revised Project Completion: Fall 2021 Project Number: PE-17006 Baylands Levee, 2016 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 81 Significant Changes 2020-2024 CIP: The project has been delayed due to staffing constraints and required coordi- nation with other agencies. 2018-2022 CIP: The project start and completion dates have been extended due to staff work- load constraints. 2017-2021 CIP: Project established. Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund 266,666 1,048,000 0 1,098,600 0 0 0 0 1,098,600 0 1,365,266 Total 266,666 1,048,000 0 1,098,600 0 0 0 0 1,098,600 0 1,365,266 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 133,333 1,048,000 0 1,098,600 0 0 0 0 1,098,600 0 1,231,933 Design Total 133,333 266,666 0 1,048,000 0 0 0 1,098,600 0 0 0 0 0 0 0 0 0 1,098,600 0 0 133,333 1,365,266 Relationship to Comprehensive Plan Primary Connection Element: Safety Section: Natural Hazards Goal: S-2 Policy: S-2.12 Program: S2.12.2 Potential Board/Commission Review: Architectural Review Board Parks and Recreation Commission Planning and Transportation Commission San Francisquito Creek Joint Powers Authority Environmental Impact Analysis: This project will require an environmental assessment in accordance with CEQA guidelines. CAPITAL IMPROVEMENT FUND 82 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Building Systems Improvements Building Systems Improvements Description This project provides funding for electrical, mechanical, plumbing, structural, and security upgrades as required at various City facilities. Upgrades may include main and emergency power sources, light fixtures, fire alarm systems, heating and ventilation equipment, Building Management System (BMS) controls, structural reinforcements or repair, security card access, and camera systems. Justification This project provides funding for system upgrades in facilities with systems that are overloaded or are no longer efficient. Heating and air-conditioning units in many older buildings are at the end of their useful life and require replacement. BMS control systems in some facilities are out- dated and have limited or no vendor support. Structural systems have become damaged or fatigued due to heavier equipment requirements or increased loading. Increased security requirements for facilities and IT network systems require the need for the installation of card access and camera systems. This project also provides funding for replacement of unforeseen equipment failures. While upgrading equipment, staff selects the most energy efficient equip- ment, including premium efficiency motors, and incorporates the use of energy saving technol- ogies such as variable frequency drives whenever possible. Supplemental Information The Department of Public Works uses a computerized asset management tracking software to assist in identifying the maintenance and replacement needs addressed through this CIP. Proj- ects identified for upcoming work include: Fund: Capital Improvement Fund Category: Buildings and Facilities Project Location: Various Managing Department: Public Works IBRC Reference: Keep-up Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: PF-01003 AC gas package unit Municipal Services Center Building C, January 2015 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 83 Fiscal Year 2021: Convert Rinconada and Mitchell Park tennis court lights to LED. New lighting controls for Rinconada and Mitchell Park tennis courts and new cooling tower fill media for City Hall. Also, new built-in generator for Fire Station #8. Fiscal Year 2022: Replace electrical panels at Fire Station #5 and replace domestic water con- trol system at City Hall. Fiscal Year 2023: Install HVAC equipment in the Art Center basement. Replace BMS controls for the Lucie Stern Community Theater. Fiscal Year 2024: Upgrade LED lighting in City parks. New Children's Pool boilers (4ea), roof top furnaces, exhaust fans, and dehumidifiers. Fiscal Year 2025: Replace electrical panel at the Golf Club House and Café. Significant Changes 2021-2025 CIP: All programmed projects were pushed out a year due to staffing constraints. 2020-2024 CIP: All programmed projects were pushed out a year since FY 2019 funding was needed for a new chiller located at City Hall. Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund N/A 639,991 250,008 715,883 239,954 237,400 258,200 282,200 1,733,637 0 N/A Total N/A 639,991 250,008 715,883 239,954 237,400 258,200 282,200 1,733,637 0 N/A Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 639,991 250,008 715,883 239,954 237,400 258,200 282,200 1,733,637 0 N/A Total N/A 639,991 250,008 715,883 239,954 237,400 258,200 282,200 1,733,637 0 N/A CAPITAL IMPROVEMENT FUND 84 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.2 Potential Board/Commission Review: Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. CAPITAL IMPROVEMENT FUND 86 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET City Facilities Assessment and Record Plan Management System City Facilities Assessment and Record Plan Management System Description The last City-wide facility condition assessment was performed in 2008. This condition assess- ment is known as the Kitchell Report. Since that assessment was performed, building codes have changed dramatically. A new condition assessment is warranted. It is also an ideal oppor- tunity 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 hard- copy sets and compiling all records into a new indexed system that will be easily accessible to all City staff. Justification This project provides funding for a comprehensive City-wide condition assessment of existing buildings. All City-owned buildings will be evaluated to determine the existing condition of mechanical systems, electrical systems, plumbing systems, conveyance systems, exterior enve- lope, interior finishes, roofing, structural systems, and fire/life safety systems. The project also provides funding for a new electronic record management system to hold record plans and related information on each facility. Supplemental Information The Facility Record Plan Management System will save many hours of staff time. Currently, facil- ity record plan data is scattered between multiple different electronic systems and sometimes only contained in hardcopy format. The project will scan (if necessary), catalog, and archive the Fund: Capital Improvement Fund Category: Buildings and Facilities Project Location: Various City Facilities Managing Department: Public Works IBRC Reference: Keep-up Initial Project Start: Summer 2019 Initial Project Completion: Fall 2020 Revised Project Start: Revised Project Completion: Project Number: PE-20002 Current Record Plan Management at Municipal Services Center CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 87 documents in an open-format electronic database system that will allow staff to easily search, access, and retrieve record plans. Significant Changes 2021-2025 CIP: Project completion date revised to reflect the assessment time needed for the extensive number of city facilities to be inspected. Operating Impact This project will require ongoing maintenance costs that will be reassessed once the full scope of the project is determined. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund 0 314,000 150,000 164,800 0 0 0 0 164,800 0 314,800 Total 0 314,000 150,000 164,800 0 0 0 0 164,800 0 314,800 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 314,000 150,000 164,800 0 0 0 0 164,800 0 314,800 Total 0 314,000 150,000 164,800 0 0 0 0 164,800 0 314,800 Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.3 Program: C3.3.1 Potential Board/Commission Review: Architectural Review Board Historic Resources Board Parks and Recreation Commission Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under section 15301. CAPITAL IMPROVEMENT FUND 88 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET City Facility Parking Lot Maintenance City Facility Parking Lot Maintenance Description This project provides funding for the repair, resurfacing, or reconstruction of parking lots and walkways at various City facilities, including restriping and signage. Justification Uneven paved surfaces are a safety hazard and shorten the useful life of walkways and parking lots. Repairing the paved walkways and parking lots at various City facilities will eliminate these safety hazards and extend useful life. Supplemental Information Work programmed for this project includes parking lot resurfacing for the following locations: Fiscal Year 2021: Fire Station #8, and College Terrace Library pathways. Fiscal Year 2022: Foothill Parks Parking Lot Fiscal Year 2023: Municipal Service Center, Municipal Service Center North Employee Lot. Fiscal Year 2024: No work planned. Fiscal Year 2025: No work planned. Funding will be offset by $0.1 million from the Utilities Enterprise Funds for the work in Fiscal Year 2023 at the Municipal Service Center (MSC). Significant Changes 2021-2025 CIP: Foothills Park parking lot work was moved to FY 2022 to coordinate with Foot- hills Park Roadway Paving Project. Fund: Capital Improvement Fund Category: Buildings and Facilities Project Location: Various Managing Department: Public Works IBRC Reference: Keep-up Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: PE-09003 Lucie Stern Parking Lot, February 2015 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 89 2020-2022 CIP: Parking lots were inspected in October 2018 and cost estimates were updated based on current pavement conditions. 2018-2022 CIP: A $215,000 increase in FY 2018 funding is for the Midtown Shopping Center. Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund N/A 1,144,466 319,725 819,941 233,500 389,200 0 0 1,442,641 0 N/A Transfer from Utilities Administration Fund N/A 0 0 0 0 100,000 0 0 100,000 0 N/A Total N/A 1,144,466 319,725 819,941 233,500 489,200 0 0 1,542,641 0 N/A Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 1,133,218 319,725 808,244 233,500 489,200 0 0 1,530,944 0 N/A Design N/A 11,248 0 11,697 0 0 0 0 11,697 0 N/A Total N/A 1,144,466 319,725 819,941 233,500 489,200 0 0 1,542,641 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.2 Potential Board/Commission Review: Planning and Transportation Commission Environmental Impact Analysis: Worked performed under this project is typically categorically exempt from CEQA under Section 15301. CAPITAL IMPROVEMENT FUND 90 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET City Hall Space Planning City Hall Space Planning Description This project provides funding for space planning to determine future workgroup space needs and programming for the City Hall office building. Justification Upon completion of the new Public Safety Building in 2023, the Police wing of City Hall and the Fire Administration group on the 6th floor will move into the new building. The departure of these workgroups provides an opportunity to plan for the best use of the newly available City Hall space and to consider other potential improvements such as remodeling the A level cafete- ria space. Additionally, a potential opportunity has been identified to reduce the size of the Information Technology Department's 2nd floor data center and make the space available for other uses. Supplemental Information The scope of this project includes the initial space planning and preliminary design of the improvements. Following completion of space planning and preliminary design, additional fund- ing will be required to complete the design and construct renovations to the affected areas. Significant Changes 2021-2025 CIP: Project extended to Fiscal Year 2021 as a result of staffing constraints and fund- ing increased to reflect increased scope needed to study and plan for the space availability and needs at City Hall resulting from the completion of the Public Safety Building in Fiscal Year 2023. Fund: Capital Improvement Fund Category: Buildings and Facilities Project Location: Palo Alto City Hall (250 Hamilton Avenue) Managing Department: Public Works IBRC Reference: New Initial Project Start: Fall 2018 Initial Project Completion: Fall 2019 Revised Project Start: Spring 2020 Revised Project Completion: Fall 2024 Project Number: PE-19000 City Hall A Level Lobby CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 91 2020-2024 CIP: Project completion extended to reflect staffing constraints and the revised expected completion of the Public Safety Building. Operating Impact Operating impacts of potential space uses will be assessed as part of the planning process. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund 0 79,000 0 631,700 0 0 0 0 631,700 0 631,700 Total 0 79,000 0 631,700 0 0 0 0 631,700 0 631,700 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Design 0 79,000 0 631,700 0 0 0 0 631,700 0 631,700 Total 0 79,000 0 631,700 0 0 0 0 631,700 0 631,700 Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.2 Potential Board/Commission Review: Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. CAPITAL IMPROVEMENT FUND 92 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Civic Center Electrical Upgrade & EV Charger Installation Civic Center Electrical Upgrade & EV Charger Installation Description This project provides funding to replace the aging Civic Center electrical switchgear and motor control centers and to purchase and install approximately 43 new Level 2 Electric Vehicle (EV) charging stations at City parking garages, including the Civic Center garage. Justification The main electrical switch gear is over 40 years old and must be replaced and upgraded to ensure the reliability of electrical power at City Hall. Other parts of the electrical system have been recently upgraded, leaving this as one of the last remaining items. With increased owner- ship of electric vehicles, additional public spaces with EV chargers are needed. Funding in this project allows the City to leverage grants that substantially cover the costs of EV charger pur- chases and installation on a reimbursement basis. Supplemental Information The funding for the electrical upgrade work ($0.35 million) has been moved from PE-18016, Civic Center Fire Life Safety Upgrades, to this new project, while approximately 90 percent of the EV charger costs are expected to be reimbursed by Bay Area Air Quality Management Dis- trict grants. A portion of the grant reimbursement is deferred for three years to allow demon- stration of compliance with grant usage criteria. Fund: Capital Improvement Fund Category: Buildings and Facilities Project Location: Palo Alto City Hall (250 Hamilton Avenue), Various Managing Department: Public Works IBRC Reference: Keep-up Initial Project Start: Summer 2016 Initial Project Completion: Fall 2017 Revised Project Start: Spring 2017 Revised Project Completion: Fall 2020 Project Number: PE-17010 Electrical System Access Door at City Hall CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 93 Significant Changes 2020-2024 CIP: In Fiscal Year 2018, an invitation for Design-Build proposals received no response. Staff began the process for a traditional Design-Bid Build approach. Timing of the project was extended to accommodate this approach and allow for a new window of opportu- nity to perform construction when City Hall can be closed for a brief time duration. Funding added to account for the complexity of construction and replacement of both motor control centers (MCC) on Levels A and 8. 2019-2023 CIP: Anticipated project completion date adjusted to reflect delays due to staff workload and available options for scheduling a full shutdown of City Hall for construction work. 2018-2022 CIP: Project start was delayed due to staff workload. Staff plans to use Design-Build project delivery method for Civic Center switchgear and motor control center replacements. 2017-2021 CIP: Project established. Operating Impact This project is anticipated to impact operating expenses in the future. As these costs are quan- tified, adjustments will be brought forward in the next budget cycle. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund 70,858 618,897 0 679,800 0 0 0 0 679,800 0 750,658 Revenue from Other Agencies 17,000 243,000 243,000 0 0 0 0 0 0 0 260,000 Total 87,858 861,897 243,000 679,800 0 0 0 0 679,800 0 1,010,658 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 43,325 788,748 243,000 679,800 0 0 0 0 679,800 0 966,125 Design 44,529 73,149 0 0 0 0 0 0 0 0 44,529 Total 87,854 861,897 243,000 679,800 0 0 0 0 679,800 0 1,010,654 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Air Quality Goal: N-5 Policy: N-5.2 Potential Board/Commission Review: Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. CAPITAL IMPROVEMENT FUND 94 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Civic Center Fire Life Safety Upgrades Civic Center Fire Life Safety Upgrades Description This project provides funding for an assessment and upgrade of the fire life safety systems in City Hall. Justification The fire life safety system is approaching the end of its useful life. The fire alarm panels and associated equipment are in need of upgrade in order to meet current code requirements. City Hall is a vital facility for all functions and departments. Supplemental Information The fire life safety system is approaching the end of its useful life. The fire alarm panels and associated equipment needed to meet current codes will be upgraded. The cost estimate for this project will likely need to be reevaluated and adjusted to account for escalation. Significant Changes 2020-2024 CIP: Project completion schedule revised due to re-evaluation of the procurement methodology for the system. 2019-2023 CIP: Project schedule and scope revised to reflect staff workload. 2017-2021 CIP: The scope and budget ($0.35 million) for the City Hall electrical upgrade portion of this project have been moved to a new project, PE-17010, Civic Center Electrical Upgrade & EV Charger Installation. Fund: Capital Improvement Fund Category: Buildings and Facilities Project Location: Palo Alto City Hall (250 Hamilton Avenue) Managing Department: Public Works IBRC Reference: Keep-up Initial Project Start: Summer 2018 Initial Project Completion: Spring 2019 Revised Project Start: Fall 2018 Revised Project Completion: Summer 2020 Project Number: PE-18016 Civic Center Fire Life Safety and Electrical Upgrades CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 95 Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund 16,623 602,000 269,104 356,956 0 0 0 0 356,956 0 642,683 Total 16,623 602,000 269,104 356,956 0 0 0 0 356,956 0 642,683 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 13,914 602,000 269,104 356,956 0 0 0 0 356,956 0 639,974 Design 2,707 0 0 0 0 0 0 0 0 0 2,707 Total 16,621 602,000 269,104 356,956 0 0 0 0 356,956 0 642,681 Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.2 Potential Board/Commission Review: Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. CAPITAL IMPROVEMENT FUND 96 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Civic Center Waterproofing Study and Repairs Civic Center Waterproofing Study and Repairs Description This project provides funding to address the condition assessment of the Civic Center plaza deck waterproofing deficiencies. The completed assessment evaluated the main expansion joint waterproof seal on the plaza in front of the main City Hall entrance. The assessment report rec- ommended repairs to the expansion joint that are anticipated to be complete in Fiscal Year 2020. Justification Previous studies concluded that the Civic Center plaza deck waterproofing membrane under- neath the red and white decorative concrete needs to be replaced due to the age of the mate- rial. However, investigations in 1999 revealed the membrane still possessed good elasticity. The plaza planter waterproofing was found to be in poor condition. The expansion joint requires immediate replacement. Significant Changes 2020-2024 CIP: Additional funding and time added to restore waterproofing membrane within planter boxes along the Civic Center plaza perimeter. 2019-2023 CIP: Anticipated completion date adjusted to reflect delays due to staff workload. 2018-2022 CIP: Additional funding added for implementation of the repairs. Fund: Capital Improvement Fund Category: Buildings and Facilities Project Location: Palo Alto City Hall (250 Hamilton Avenue) Managing Department: Public Works IBRC Reference: New Initial Project Start: Summer 2015 Initial Project Completion: Summer 2017 Revised Project Start: Summer 2016 Revised Project Completion: Spring 2021 Project Number: PE-15020 Civic Center Parking Garage, February 2015 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 97 Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund 54,491 638,655 49,800 617,255 0 0 0 0 617,255 0 721,546 Total 54,491 638,655 49,800 617,255 0 0 0 0 617,255 0 721,546 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 2,684 635,153 49,800 617,255 0 0 0 0 617,255 0 669,739 Design 51,806 3,502 0 0 0 0 0 0 0 0 51,806 Total 54,490 638,655 49,800 617,255 0 0 0 0 617,255 0 721,545 Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.2 Potential Board/Commission Review: Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. CAPITAL IMPROVEMENT FUND 98 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Facility Interior Finishes Replacement Facility Interior Finishes Replacement Description This project provides funding for replacement or improvements to interior finishes such as floor- ing, walls, cabinets, paint, lighting, ceiling tiles, soundproofing, fixed office furniture, doors, win- dows, and associated fire/life safety, mechanical, electrical, and plumbing code compliance requirements at various City facilities. Justification Interior finishes throughout City facilities are designated for replacement as part of an ongoing capital maintenance plan. Finishes are typically coordinated and upgraded as other renovation projects are undertaken. Supplemental Information Planned carpet replacement and other interior finishes projects include: Fiscal Year 2021: Municipal Service Center (MSC) Building C Lunchrooms and Hallways Fiscal Year 2022: MSC Building C Water, Gas, and Wastewater Locker Room Improvements Fiscal Year 2023: MSC Building B Shower and Locker Room Fiscal Year 2024: Lucie Stern Community Theater Kitchen and Restroom Improvements Fiscal Year 2025: Will be determined based on facility needs as reassessed closer to Fiscal Year 2025 Significant Changes 2021-2025 CIP: Staffing vacancies may push some programming out to future years. Fund: Capital Improvement Fund Category: Buildings and Facilities Project Location: Various Managing Department: Public Works IBRC Reference: Keep-up Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: PF-02022 Lucie Stern Community Center Ballroom CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 99 2020-2024 CIP: MSC Building C Lunchrooms and Hallways was moved to FY 2021 from FY 2022. The Golf Course Club House Restrooms, previously programmed in FY 2021, were com- pleted as part of the Golf Course Reconfiguration project (PG-13003). 2019-2023 CIP: Elwell Court has moved from FY 2022 to FY 2019, Children's Library will be added for FY 2020, and MSC Building C will be moved to FY 2022. 2018-2022 CIP: MSC Building C Water-Gas-Wastewater, Lucie Stern Community Theatre will be replacing Municipal Services Center Building A, Parks Department and Stores in FY 2020. Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund N/A 1,177,986 564,100 791,626 85,331 297,414 270,146 315,700 1,760,217 0 N/A Transfer from Utilities Administration Fund N/A 0 0 169,000 176,000 0 0 0 345,000 0 N/A Transfer from Vehicle Replacement and Maintenance N/A 0 0 0 0 68,000 0 0 68,000 0 N/A Total N/A 1,177,986 564,100 960,626 261,331 365,414 270,146 315,700 2,173,217 0 N/A Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 1,175,656 564,100 960,626 261,331 365,414 270,146 315,700 2,173,217 0 N/A Design N/A 2,330 0 0 0 0 0 0 0 0 N/A Total N/A 1,177,986 564,100 960,626 261,331 365,414 270,146 315,700 2,173,217 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.2 Potential Board/Commission Review: Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. CAPITAL IMPROVEMENT FUND 100 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Fire Station 4 Replacement Fire Station 4 Replacement Description 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. Justification The current Fire Station #4 facility is operationally and technologically deficient. This project will provide a new facility built to essential services standards with a high likelihood of being fully operational after a major disaster such as a significant earthquake. Supplemental Information The Fire Station #4 Replacement project is included in the Council Infrastructure Plan. The cost estimate for this project has been adjusted from the amount derived during the Coun- cil Infrastructure Plan's development because older estimates were not escalated to the current year or to future years when construction would actually occur. Significant Changes 2021-2025 CIP: Project start and end dates delayed; this reflects the revised project start date following completion of Fire Station 3 due to staff workload. 2020-2024 CIP: Project end date adjusted to reflect expected construction timeline based on construction starting in the beginning of FY 2021. 2019-2023 CIP: Project increased by $0.3 million and the timeline was pushed out to begin con- struction in FY 2021. Fund: Capital Improvement Fund Category: Buildings and Facilities Project Location: 3600 Middlefield Road Managing Department: Public Works IBRC Reference: New Initial Project Start: Summer 2017 Initial Project Completion: Winter 2020 Revised Project Start: Spring 2020 Revised Project Completion: Summer 2023 Project Number: PE-18004 Fire Station #4, April 2015 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 101 2018-2022 CIP: Timeline adjusted to reflect initial funding availability. Operating Impact This project is anticipated to impact operating expenses in the future. Maintenance is estimated to increase by $9,200 in FY 2024 and increase by 3% annually thereafter. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund 0 850,000 350,000 950,000 4,075,000 4,075,000 0 0 9,100,000 0 9,450,000 Transfer from Stanford University Medical Ctr Fund 0 0 0 750,000 0 0 0 0 750,000 0 750,000 Total 0 850,000 350,000 1,700,000 4,075,000 4,075,000 0 0 9,850,000 0 10,200,000 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 1,200,000 4,075,000 4,075,000 0 0 9,350,000 0 9,350,000 Design 0 850,000 350,000 500,000 0 0 0 0 500,000 0 850,000 Total 0 850,000 350,000 1,700,000 4,075,000 4,075,000 0 0 9,850,000 0 10,200,000 Anticipated Operating Budget Needs Fund FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 General Fund-Operating 0 0 0 9,200 9,500 Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.2 Potential Board/Commission Review: Architectural Review Board Planning and Transportation Commission Environmental Impact Analysis: This project is exempt from CEQA in accordance with Section 15302. CAPITAL IMPROVEMENT FUND 102 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET High and Bryant Street Garages Waterproofing and Repairs High and Bryant Street Garages Waterproofing and Repairs Description This project provides funding to investigate and repair observed water damage along the southeast wall of the Lot R and Lot S/L parking garage. In addition, this project will research waterproofing methods and, if feasible, implement waterproofing on the southeast wall to pre- vent further problems. Justification The Lot R parking garage was constructed in 2003. Recently, water has been observed dripping into the ground floor maintenance room. Spalling concrete was also observed above the ramps on each level over the maintenance room. The cause appears to be water intrusion along the southeast wall. Weatherproofing behind the concrete is compromised and water is seeping through the wall. Injecting epoxy to fill the cracks. Supplemental Information Lot R/Bryant Street is complete. Significant Changes 2021-2025 CIP: Additional funding added and completion date extended due to further water intrusion problems found in subterranean basement parking levels and subterranean stairwells in the Bryant Street Garage. Fund: Capital Improvement Fund Category: Buildings and Facilities Project Location: 511 High Street & 445 Bryant Street Managing Department: Public Works IBRC Reference: New Initial Project Start: Fall 2017 Initial Project Completion: Spring 2019 Revised Project Start: Revised Project Completion: Spring 2021 Project Number: PE-18002 High Street Parking Garage CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 103 2020-2024 CIP: Bid protests were received for the High Street Garage (S/L) Waterproofing project and ultimately rejected. The project timeline has been extended to reflect the rebidding process. 2019-2023 CIP: FY 2018 Adopted Budget title was "High Street Garage Waterproofing Study and Repair." The scope of work needed at the High Street garage is not as much as initially esti- mated. Adding scope for waterproofing and repairs at the Bryant Street garage. Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund (318,271)330,000 213,454 210,446 0 0 0 0 210,446 0 105,629 Transfer from University Ave Parking Permit Fund 350,000 0 0 0 0 0 0 0 0 0 350,000 Total 31,729 330,000 213,454 210,446 0 0 0 0 210,446 0 455,629 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 31,726 330,000 213,454 210,446 0 0 0 0 210,446 0 455,626 Total 31,726 330,000 213,454 210,446 0 0 0 0 210,446 0 455,626 Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.2 Potential Board/Commission Review: Architectural Review Board Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. CAPITAL IMPROVEMENT FUND 104 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET JMZ Renovation JMZ Renovation Description This project provides funding to relocate the Palo Alto Junior Museum & Zoo (JMZ) for two years to the Cubberley Community Center to facilitate construction of a new JMZ at the current site. This project also includes funding for permit and inspection fees related to the JMZ rebuild project, new exhibitions (including temporary staffing to design and prototyping), deck con- struction costs (partial), park signage (partial), furniture and equipment costs, payment and performance bonds, re-opening marketing and outreach expenses. Justification The Cubberley campus provides a suitable temporary location for JMZ operations to remain open to the public. Classrooms will be used for programing, exhibits, education, and summer camps. The Auditorium provides space for staff, teachers, administration, collections, and indoor animals. The nearby parking lot would be converted to an animal compound to house outdoor animals unable to be placed at another zoo or facility. Supplemental Information An agreement between the City of Palo Alto and the Friends of the Palo Alto Junior Museum and Zoo to replace the existing JMZ with a new building and facilities requires City contribu- tions. Significant Changes 2019-2023 CIP: The budget for this project increased by $2.8 million, with the majority of fund- ing for new educational exhibits. Other costs include the temporary relocation of the JMZ to the Cubberley Community Center, permit costs, and electrical and plumbing work. Fund: Capital Improvement Fund Category: Buildings and Facilities Project Location: 1451 Middlefield Road Managing Department: Community Services IBRC Reference: N/A Initial Project Start: Summer 2017 Initial Project Completion: Summer 2019 Revised Project Start: Summer 2018 Revised Project Completion: Fall 2021 Project Number: AC-18001 Junior Museum Exhibit, March 2017 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 105 Operating Impact Additional staffing, exhibit, maintenance, and custodial costs are expected to have a net impact of approximately $340,000 in FY 2021 and ongoing. Additional information about costs associ- ated with opening the JMZ can be found in the Community Services Department section of the FY 2021 Operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund (25,245)1,195,896 (710,000)2,106,053 0 0 0 0 2,106,053 0 1,370,808 Revenue from the Federal Government 40,829 240,200 240,200 0 0 0 0 0 0 0 281,029 Transfer from Community Center Impact Fee Fund 0 1,671,860 1,671,860 125,498 0 0 0 0 125,498 0 1,797,358 Transfer from Parks Development Impact Fee Fund 1,025,717 0 0 0 0 0 0 0 0 0 1,025,717 Total 1,041,301 3,107,956 1,202,060 2,231,551 0 0 0 0 2,231,551 0 4,474,912 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 900,193 3,044,260 1,202,060 2,231,551 0 0 0 0 2,231,551 0 4,333,804 Design 141,099 63,696 0 0 0 0 0 0 0 0 141,099 Total 1,041,292 3,107,956 1,202,060 2,231,551 0 0 0 0 2,231,551 0 4,474,903 Anticipated Operating Budget Needs Fund FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 General Fund-Operating 340,000 340,000 340,000 340,000 340,000 Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.2 Potential Board/Commission Review: Architectural Review Board Historic Resources Board Parks and Recreation Commission Planning and Transportation Commission Environmental Impact Analysis: Relocation portion of this project is CEQA Exempt under 15301 and 15303. A separate Initial Study/Mitigated Negative Declaration is being prepared for the renovation portion of this project. CAPITAL IMPROVEMENT FUND 106 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Library Automated Material Handling Library Automated Material Handling Description The scope of this project is to provide the design and construction of three new Automated Material Handling (AMH) Systems for the College Terrace, Children’s, and Downtown Libraries. AMH systems efficiently sort returned library materials based on the Radio Frequency Identifi- cation Devices (RFID) on the materials. This project has been approved for use of Library Impact Fees. Justification The Library has made a significant investment in RFID tagging of the entire collection. This proj- ect leverages that RFID investment to improve overall library system efficiency and improves the speed at which materials can be moved to shelves for library patrons hold requests. These machines speed materials processing by 200-400%. Each machine will reduce staff time needed for processing books (20 hours from 41 hours per week currently) which will increase staff efficiencies in the library. Increased automated handling of materials allows staff time to be freed up to focus on public projects (public programs, public services) and revenue earning projects (space rentals, grant writing). Increased circulation in the past 5 years has increased the burden on staff while staff FTE have decreased. Supplemental Information The project is proposed to be spread over 4 years: Year 1 planning, Year 2 Children's Library, Year 3 College Terrace, Year 4 Downtown (Years 3/4 could be swapped or combined to be done in a single year). Staff capacity can handle implementing multiple libraries at a time. Priority is Fund: Capital Improvement Fund Category: Buildings and Facilities Project Location: Various Libraries: College Terrace, Children's, and Downtown Libraries. Managing Department: Library IBRC Reference: N/A Initial Project Start: Summer 2021 Initial Project Completion: Summer 2024 Revised Project Start: Revised Project Completion: Project Number: LB-21000 Library Material Handling System CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 107 Children's Library due to high number of returns (2nd highest circulation out of 5 libraries) and current number of staff needed there to respond to high circulation. Operating Impact The equipment will cause a slight increase in electric bills and does require annual equipment maintenance. Ongoing operating costs include annual maintenance of about $10,000-$20,000 per machine. The Fiscal Year 2023 Library operating budget will be adjusted accordingly to compensate for these impacts. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund 0 0 0 15,500 40,900 52,500 65,000 0 173,900 0 173,900 Transfer from Library Development Impact Fee Fund 0 0 0 80,000 180,000 180,000 190,000 0 630,000 0 630,000 Total 0 0 0 95,500 220,900 232,500 255,000 0 803,900 0 803,900 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 15,500 220,900 232,500 255,000 0 723,900 0 723,900 Design 0 0 0 80,000 0 0 0 0 80,000 0 80,000 Total 0 0 0 95,500 220,900 232,500 255,000 0 803,900 0 803,900 Anticipated Operating Budget Needs Fund FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 General Fund-Operating 0 0 45,000 46,000 47,000 Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Planning for Parks and Community Facilities Goal: C-4 Policy: C-4.4 Relationship to Comprehensive Plan Secondary Connection Element: Governance Section: Public Participation Goal: G-1 Policy: G-1.2 Program: G1.2.4 Potential Board/Commission Review: Library Advisory Commission Environmental Impact Analysis: This project is exempt from CEQA in accordance with Section 15302. CAPITAL IMPROVEMENT FUND 108 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Municipal Service Center A, B, & C Roof Replacement Municipal Service Center A, B, & C Roof Replacement Description This project provides funding for 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. Justification This project provides the means to rehabilitate the existing roof to avoid further deterioration of the roofing system, which would cause failure and structural damage to the building. Compared to rehabilitation costs, structural repairs and a full roof replacement would be more expensive. Supplemental Information Transfers from various funding sources will support this project. The various transfers were cal- culated based on the anticipated benefit to each fund, according to square footage. Significant Changes 2021-2025 CIP: Project dates adjusted due to staffing workload constraints. 2020-2024 CIP: Project dates adjusted to coordinate with the Municipal Service Center Light- ing, 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. Fund- ing added to account for cost escalation. Fund: Capital Improvement Fund Category: Buildings and Facilities Project Location: 3201 East Bayshore Road Managing Department: Public Works IBRC Reference: Keep-up Initial Project Start: Summer 2016 Initial Project Completion: Spring 2017 Revised Project Start: Spring 2020 Revised Project Completion: Fall 2020 Project Number: PF-17000 Municipal Service Center Building C Roof, January 2015 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 109 2019-2023 CIP: Project start adjusted to reflect current schedule of the Municipal Service Cen- ter Lighting, Mechanical, and Electrical Improvements project (PF-16006). 2018-2022 CIP: Project start adjusted to immediately follow the "Municipal Service Center Lighting, Mechanical, and Electrical Improvements" project (PF-16006) so roof replacement will follow installation of new rooftop equipment. 2017-2021 CIP: Timeline extended to reflect direction from Finance Committee and City Council during budget approval process. Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund 0 908,000 (541,500)1,585,550 0 0 0 0 1,585,550 0 1,044,050 Transfer from Refuse Fund 0 19,000 9,500 10,250 0 0 0 0 10,250 0 19,750 Transfer from Utilities Administration Fund 0 684,000 342,000 369,000 0 0 0 0 369,000 0 711,000 Transfer from Vehicle Replacement and Maintenance 0 380,000 190,000 205,000 0 0 0 0 205,000 0 395,000 Total 0 1,991,000 0 2,169,800 0 0 0 0 2,169,800 0 2,169,800 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 1,991,000 0 2,169,800 0 0 0 0 2,169,800 0 2,169,800 Total 0 1,991,000 0 2,169,800 0 0 0 0 2,169,800 0 2,169,800 Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.2 Program: C3.2.1 Potential Board/Commission Review: Architectural Review Board Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. CAPITAL IMPROVEMENT FUND 110 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Municipal Service Center Lighting, Mechanical, and Electrical Improvements Municipal Service Center Lighting, Mechanical, and Electrical Improvements Description This project provides funding for the replacement of original mechanical and electrical systems and lighting installed in 1966 in the Municipal Service Center's (MSC) Buildings A, B, and C. The project also includes the renovation of office space and shop areas in Building C. Justification Lighting, mechanical, and electrical equipment at the MSC is outdated and inefficient. Various remodels have occurred in the administrative and shop areas adding load to the mechanical and electrical systems. The use of many areas has changed over the years without adequate upgrades to the building systems. The systems no longer support the current operation of this site. Supplemental Information The Refuse Fund, Vehicle Replacement and Maintenance Fund, and Utilities Administration Fund will reimburse the Capital Improvement Fund for a portion of this project, as fund-related operations benefit from the building improvements. Fund: Capital Improvement Fund Category: Buildings and Facilities Project Location: 3201 East Bayshore Road Managing Department: Public Works IBRC Reference: Keep-up Initial Project Start: Summer 2016 Initial Project Completion: Spring 2018 Revised Project Start: Revised Project Completion: Spring 2021 Project Number: PF-16006 Municipal Services Center Building C, March 2015 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 111 Significant Changes 2021-2025 CIP: Project timeline extended to reflect additional project redesign work to allow for more Electric Vehicle (EV) chargers and future electrification of the newer mechanical sys- tems at the MSC. 2020-2024 CIP: Bids received were rejected due to budget exceedance. Funding added to account for severe construction cost escalation and partial redesign to provide additional infra- structure for future electrification of vehicle fleet. Project end date adjusted due to the redesign and rebidding required. 2019-2023 CIP: Project cost estimates indicate mechanical and electrical work in Building B require additional funding of $0.8 million. 2017-2021 CIP: Additional funding of $0.4 million added for Building C office space renovation. Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund 77,395 3,187,510 (1,282,000)4,499,732 0 0 0 0 4,499,732 0 3,295,127 Transfer from Refuse Fund 28,070 54,000 27,000 27,000 0 0 0 0 27,000 0 82,070 Transfer from Utilities Administration Fund 530,835 1,944,000 972,000 972,000 0 0 0 0 972,000 0 2,474,835 Transfer from Vehicle Replacement and Maintenance 294,909 1,080,000 540,000 540,000 0 0 0 0 540,000 0 1,374,909 Total 931,209 6,265,510 257,000 6,038,732 0 0 0 0 6,038,732 0 7,226,941 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 445,574 6,265,223 257,000 6,038,732 0 0 0 0 6,038,732 0 6,741,306 Design 485,620 287 0 0 0 0 0 0 0 0 485,620 Total 931,194 6,265,510 257,000 6,038,732 0 0 0 0 6,038,732 0 7,226,926 CAPITAL IMPROVEMENT FUND 112 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.2 Potential Board/Commission Review: Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. CAPITAL IMPROVEMENT FUND 114 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET New Downtown Parking Garage New Downtown Parking Garage Description This project provides funding for a new public parking garage in the University Avenue com- mercial 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 develop- ment of preliminary plans and cost estimates, and completion of the project's environmental review. Justification A new parking garage is part of a multi-pronged strategy to address excessive spillover parking from the University Avenue commercial area into nearby residential neighborhoods. Supplemental Information The New Downtown Parking Garage project is included in the City Council Infrastructure Plan. In Fiscal Year 2022, a transfer of $5.5 million from the University In-Lieu Parking Fund is scheduled to fund a portion of the construction of the new garage. The cost estimate for this project will likely need to be adjusted based on estimated construction costs in future years. Significant Changes 2021-2025 CIP: Funding for this project to Fiscal Year 2024 due to funding constraints as well as to allow time for further planning related to downtown parking initiatives. 2020-2024 CIP: Funding for this project has been moved out per City Council direction in Feb- ruary 2019 to postpone the project until downtown parking initiatives are determined. Fund: Capital Improvement Fund Category: Buildings and Facilities Project Location: Parking Lot D (Hamilton Avenue/ Waverley Street) Managing Department: Public Works IBRC Reference: New Initial Project Start: Spring 2015 Initial Project Completion: Fall 2018 Revised Project Start: Winter 2017 Revised Project Completion: Spring 2024 Project Number: PE-15007 Hamilton Avenue/Waverley Street, March 2015 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 115 2019-2023 CIP: Budget increased to reflect total project cost estimate of $29.1 million. 2018-2022 CIP: In December 2016, a design contract was awarded to Watry Design, Inc. Fund- ing was included in FY 2017 for Phase I of the design work, including environmental review and design through design development. Additional funding is required in FY 2018 to complete the design and construction documents and in FY 2019 for construction administration and project close out. Operating Impact This project is anticipated to impact operating expenses in the future. Custodial and mainte- nance costs are estimated to be $94,000 in FY 2025 and increase 3% annually thereafter. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund 107,818 1,073,121 1,073,121 35,172 (438,000)(874,500)13,299,500 0 12,022,172 0 13,203,111 Transfer from Stanford University Medical Ctr Fund 0 0 0 0 0 9,072,000 0 0 9,072,000 0 9,072,000 Transfer from University Ave Parking In Lieu Fund 1,300,000 0 0 0 5,541,000 0 0 0 5,541,000 0 6,841,000 Total 1,407,818 1,073,121 1,073,121 35,172 5,103,000 8,197,500 13,299,500 0 26,635,172 0 29,116,111 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 238,861 0 0 0 0 0 13,299,500 0 13,299,500 0 14,611,482 Design 1,168,948 0 1,073,121 35,172 5,103,000 8,197,500 0 0 13,335,672 0 14,504,620 Total 1,407,809 1,073,121 1,073,121 35,172 5,103,000 8,197,500 13,299,500 0 26,635,172 0 29,116,102 Anticipated Operating Budget Needs Fund FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 University Avenue Parking Permits 0 0 0 0 94,000 CAPITAL IMPROVEMENT FUND 116 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Planning for Parks and Community Facilities Goal: C-4 Policy: C-4.4 Environmental Impact Analysis: This project is exempt from CEQA in accordance with Section 15302. Potential Board/Commission Review: Architectural Review Board Historic Resources Board Planning and Transportation Commission CAPITAL IMPROVEMENT FUND 118 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET New Public Safety Building New Public Safety Building Description This project provides funding for the design and construction of a new Public Safety Building on Lot C-6 in the California Avenue commercial area. Design and environmental consultant services will be needed, including the development of preliminary plans, cost estimates and special stud- ies as part of an Environmental Impact Report (EIR), and site evaluation for the approximately 44,500 square foot facility. The size and programming of the new facility were developed by the 2006 Blue Ribbon Task Force. Justification The current Police Department facility is structurally, operationally, and technologically defi- cient. This project will provide a new facility for the Police Department, Office of Emergency Services, the Emergency Operations Center, emergency dispatch, and Fire Department Admin- istration. It will be built to essential services standards with a high likelihood of being fully oper- ational after a major disaster such as a significant earthquake. Supplemental Information The new Public Safety Building has been identified as the top priority project in the City Council Infrastructure Plan. The majority of the expenses will be financed using Certificates of Participa- tion with Transient Occupancy Tax (TOT) used to fund the debt service. Significant Changes 2021-2025 CIP: The complexity of the construction required to complete the building requires more time so the anticipated completion date has been revised to Spring 2023. Fund: Capital Improvement Fund Category: Buildings and Facilities Project Location: Parking Lot C-6 (250 Sherman Avenue) Managing Department: Public Works IBRC Reference: New Initial Project Start: Spring 2015 Initial Project Completion: Fall 2020 Revised Project Start: Revised Project Completion: Spring 2023 Project Number: PE-15001 New Public Safety Building Rendering CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 119 2020-2024 CIP: Project construction will begin after the new California Avenue Area Parking Garage is complete. Anticipated completion of the Public Safety Building is revised to Fall 2022. 2019-2023 CIP: Budget increased to reflect total project cost estimate of $92.2 million. Con- struction funding and expenditures moved to FY 2020 due to design delays relating the Archi- tectural Review Board (ARB) and EIR processes. Anticipated project completion also revised to summer 2021. 2018-2022 CIP: Timeline adjusted to reflect sequential construction to follow the California Ave- nue Area Parking Garage (CIP PE-18000). Operating Impact This project is anticipated to impact operating expenses in the future. Custodial and mainte- nance costs are estimated to be $355,000 in FY 2024 and increase by 3% annually thereafter. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Bond Proceeds 0 0 0 102,000,000 0 0 0 0 102,000,000 0 102,000,000 Capital Improvement Fund 507,022 3,359,740 7,000,000 (350,000)3,400,000 400,000 0 0 3,450,000 0 10,957,022 Transfer frm New Pub. Fac. Impact Fee Fund 0 0 0 350,000 0 0 0 0 350,000 0 350,000 Transfer from Stanford University Medical Ctr Fund 3,900,000 0 0 800,000 0 0 0 0 800,000 0 4,700,000 Total 4,407,022 3,359,740 7,000,000 102,800,000 3,400,000 400,000 0 0 106,600,000 0 118,007,022 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 647 0 0 100,060,186 3,400,000 400,000 0 0 103,860,18 6 0 103,860,833 Design 4,406,365 3,359,740 7,000,000 2,739,814 0 0 0 0 2,739,814 0 14,146,179 Total 4,407,012 3,359,740 7,000,000 102,800,000 3,400,000 400,000 0 0 106,600,00 0 0 118,007,012 Anticipated Operating Budget Needs Fund FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 General Fund-Operating 0 0 0 355,000 366,000 CAPITAL IMPROVEMENT FUND 120 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Relationship to Comprehensive Plan Primary Connection Element: Safety Section: Community Safety Goal: S-1 Policy: S-1.7 Program: S1.7.2 Potential Board/Commission Review: Architectural Review Board Planning and Transportation Commission Environmental Impact Analysis: This project will require an environmental impact report, combined with the California Avenue Area Parking Garage Project, in accordance with CEQA guidelines. CAPITAL IMPROVEMENT FUND 122 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Performing Arts Venues Seat Replacement Performing Arts Venues Seat Replacement Description This project provides funding for the replacement of damaged or non-functioning seats at the City's three performing arts venues: Children's Theater, Community Theater, and Cubberley The- ater. Justification The seats at the City's three theater sites are beyond their useful life and due for replacement based on their age and condition. Supplemental Information Beginning July 1, 2019, the Resident Theater Companies that use the Lucie Stern Community Theater (West Bay Opera, Palo Alto Players, and Theaterworks), signed a contract with the City to collect a fee of $2.00 for each ticket sold for events with paid admission. This fee will be used to offset the costs of enhancements, upgrades, improvements, repairs, preservation, and new equipment and furnishings for the Lucie Stern Community Theater. This seating upgrade project qualifies for use of this funding source and could be used to partially reimburse the costs for project. Significant Changes 2020-2024 CIP: Project scope changed from replacing damaged and non-functioning seats to replacing all seats and funding increased by $0.3 million. 2017-2021 CIP: Project established. Fund: Capital Improvement Fund Category: Buildings and Facilities Project Location: Children's Theatre, Community Theatre, and Cubberley Theatre Managing Department: Community Services IBRC Reference: New Initial Project Start: Summer 2017 Initial Project Completion: Summer 2018 Revised Project Start: Summer 2019 Revised Project Completion: Fall 2020 Project Number: AC-18000 Children's Theatre, January 2016 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 123 Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund 0 419,000 0 439,400 0 0 0 0 439,400 0 439,400 Total 0 419,000 0 439,400 0 0 0 0 439,400 0 439,400 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 419,000 0 439,400 0 0 0 0 439,400 0 439,400 Total 0 419,000 0 439,400 0 0 0 0 439,400 0 439,400 Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.2 Potential Board/Commission Review: Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. CAPITAL IMPROVEMENT FUND 124 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Roofing Replacement Roofing Replacement Description This project provides funding for ongoing roofing maintenance at various City facilities includ- ing major repairs, rehabilitation, replacement, roof deck, drainage systems, and sheet metal repair/replacement. Roofs scheduled for replacement are based on an annual evaluation of their condition. Justification The life expectancy of most roofs at City facilities is 20 to 25 years. There are facilities in the inventory with roof systems that are beyond or near their useful life. Supplemental Information Facilities scheduled for re-roofing are as follows: Fiscal Year 2021: Baylands Athletic Center Snack Bar & Restrooms and Mitchell Park Tiny Tots Restroom Fiscal Year 2022: Lucie Stern Community Center Fiscal Year 2023: Peers Park Club House and Lucie Stern Community Theater Flat Roof Fiscal Year 2024: Baylands Interpretive Center and Police Department Lower Roof Fiscal Year 2025: Foothills Equipment and Storage Building Significant Changes 2021-2025 CIP: Baylands Athletic Center Snack Bar & Restrooms and Mitchell Park Tiny Tots Restroom added for FY21 and all other projects moved out a year. Fund: Capital Improvement Fund Category: Buildings and Facilities Project Location: Various Managing Department: Public Works IBRC Reference: Keep-up Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: PF-00006 Fire Station 2, January 2015 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 125 2020-2024 CIP: Avenidas Senior Center moved to FY 2020 from FY 2021 and Lucie Stern Com- munity Center moved from FY 2020 to FY 2021. Lucie Stern Community Theater Flat Roof added to FY 2022 and Foothills Equipment and Storage Building added for FY 2024. 2019-2023 CIP: Mitchell Park Storage Pool Filter Facility and Arastradero Gate Way will replace the animal shelter in FY 2019. 2018-2022 CIP: Funding for Ventura Unit 3 has been moved from FY 2021 to 2018 due to its condition and the scheduled work on other Ventura units. The Avenidas Senior Center has been added to FY 2021. Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund N/A 891,179 184,435 867,602 474,900 285,629 674,076 621,886 2,924,093 0 N/A Total N/A 891,179 184,435 867,602 474,900 285,629 674,076 621,886 2,924,093 0 N/A Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 891,179 184,435 867,602 474,900 285,629 674,076 621,886 2,924,093 0 N/A Total N/A 891,179 184,435 867,602 474,900 285,629 674,076 621,886 2,924,093 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.2 Potential Board/Commission Review: Architectural Review Board Historic Resources Board Parks and Recreation Commission Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301 except for historic buildings. CAPITAL IMPROVEMENT FUND 126 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Roth Building Maintenance Roth Building Maintenance Description This project provides funding 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 occu- pied. Justification In Fiscal Year 2004, the City removed the non-historic wings and secured the building. Cur- rently, the building is empty waiting for the Palo Alto History Museum to take possession. Fund- ing was provided on a one-time basis for roofing repair and the installation of downspouts. The building's roof will require on-going maintenance and repair to prevent further leaking. Water is also entering the building through the basement walls. In order to prevent mildew and further deterioration of the building, roof repair, waterproofing, perimeter drainage, and installation of a ventilation/dehumidification system are necessary. Supplemental Information Funding was provided as a one-time addition and will be continued until all funding is used or Palo Alto History Museum takes possession. Small repairs are needed on a continual basis. Significant Changes 2017-2021 CIP: Project completion extended to reflect continuing vacancy of the building. Fund: Capital Improvement Fund Category: Buildings and Facilities Project Location: 300 Homer Avenue Managing Department: Public Works IBRC Reference: N/A Initial Project Start: Summer 2006 Initial Project Completion: Spring 2007 Revised Project Start: Revised Project Completion: Spring 2021 Project Number: PF-07011 Roth Building, January 2015 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 127 Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund 25,897 41,073 10,000 31,973 0 0 0 0 31,973 0 67,870 Total 25,897 41,073 10,000 31,973 0 0 0 0 31,973 0 67,870 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 25,897 41,073 10,000 31,973 0 0 0 0 31,973 0 67,870 Total 25,897 41,073 10,000 31,973 0 0 0 0 31,973 0 67,870 Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.2 Potential Board/Commission Review: Historic Resources Board Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. CAPITAL IMPROVEMENT FUND 128 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET University Avenue Parking Improvements University Avenue Parking Improvements Description This project provides funding for improvements in the University Avenue parking district includ- ing parking lot resurfacing; striping and signing; parking structure painting or staining; electrical system upgrades needed to support improved lighting; and security systems and/or other sys- tems. Justification This project is intended to maintain the existing parking lots and garages in the University Ave- nue parking district to extend the useful life of the pavement surfaces and buildings. Supplemental Information This project is dependent on the availability of funding in the University Avenue Parking Permit Fund. Fiscal Year 2021: No work currently planned. Funding will maintain the existing parking lots and garages in the University Avenue parking district. Fiscal Year 2022: Resurface and restripe Lot E (Gilman/Bryant), Lot G (Waverley/Gilman), Lot N (Emerson/Hamilton), and Lot T (Lytton/Kipling). Fiscal Year 2023: Resurface and restripe Lot F (Florence/Lytton) and Lot O (Emerson/High). Fiscal Year 2024: Resurface and restripe Lot K (Lytton/Waverley). Fiscal Year 2024: No work planned. Fund: Capital Improvement Fund Category: Buildings and Facilities Project Location: Various Managing Department: Public Works IBRC Reference: N/A Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: PF-14003 Lot N, January 2015 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 129 Significant Changes 2019-2023 CIP: Parking Lot C resurfacing will be coordinated with the Avenidas project. With the exception of Lot C, all University Avenue parking district lots were resurfaced and no addi- tional work is needed at this time. Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund N/A 18,100 (343,000)362,400 45,500 58,300 72,200 0 538,400 0 N/A Transfer from University Ave Parking Permit Fund N/A 343,000 343,000 100,000 115,000 75,000 65,000 0 355,000 0 N/A Total N/A 361,100 0 462,400 160,500 133,300 137,200 0 893,400 0 N/A Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 361,100 0 462,400 160,500 133,300 137,200 0 893,400 0 N/A Total N/A 361,100 0 462,400 160,500 133,300 137,200 0 893,400 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Transportation Section: Parking Goal: T-5 Policy: T-5.9 Potential Board/Commission Review: Architectural Review Board Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. CAPITAL IMPROVEMENT FUND 130 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Ventura Buildings Improvements Ventura Buildings Improvements Description This project provides funding to replace or upgrade the mechanical and electrical systems and provide accessibility improvements to the Ventura Community Center facility. To comply with the Americans with Disabilities Act, accessibility improvements are included; these needs are typically addressed concurrently with City-planned projects. Justification Mechanical and electrical systems are original and have reached the end of their useful lives. To meet current code requirements and increase efficiency and reliability, these systems need to be replaced. Under the lease agreement with Palo Alto Community Child Care (PACCC), the City is responsible for capital maintenance. Significant Changes 2021-2025 CIP: Project completion date revised due to staffing constraints and other high pri- ority projects. 2020-2024 CIP: Project deferred from FY 2019 to FY 2020 due to excessive bid pricing and low contractor interest. Budget adjusted to current market rates. 2019-2023 CIP: Anticipated completion date adjusted due to delays in design and obtaining building permit approval. 2018-2022 CIP: Project deferred by an additional half year due to workload of other projects in progress. 2017-2021 CIP: Project deferred by half a year due to workload of other projects in progress. Fund: Capital Improvement Fund Category: Buildings and Facilities Project Location: 3990 Ventura Court Managing Department: Public Works IBRC Reference: Catch-up Initial Project Start: Summer 2015 Initial Project Completion: Spring 2016 Revised Project Start: Fall 2016 Revised Project Completion: Fall 2020 Project Number: PE-15011 Ventura Community Center, February 2015 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 131 Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund 560,859 1,966,597 25,000 2,034,197 0 0 0 0 2,034,197 0 2,620,056 Total 560,859 1,966,597 25,000 2,034,197 0 0 0 0 2,034,197 0 2,620,056 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 141,703 1,966,597 25,000 2,034,197 0 0 0 0 2,034,197 0 2,200,900 Design 419,154 0 0 0 0 0 0 0 0 0 419,154 Total 560,857 1,966,597 25,000 2,034,197 0 0 0 0 2,034,197 0 2,620,054 Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.2 Potential Board/Commission Review: Architectural Review Board Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. CAPITAL IMPROVEMENT FUND 132 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Water, Gas, Wastewater Office Remodel Water, Gas, Wastewater Office Remodel Description This project provides funding for 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 space so it is more efficient for department operations and replace aging furniture and finishes such as cubicle fur- niture, carpet, paint, and lighting. Enclosed offices may be demolished and relocated. Addition- ally, electrical, mechanical (HVAC), and fire systems work will be required. Justification The current office space configuration and furnishing have been in place for about 20 years. Reconfiguring the space will allow staff from the same work groups to be located together and next to their supervisors/managers and create additional space and offices for new staff. The WGW kitchen/lunchroom size will be reduced to further allow for more office space. The proj- ect will also add a small reception/waiting area for visitors. Significant Changes 2021-2025 CIP: Project timeline extended to reflect coordination with the additional redesign work for PF-16006, Municipal Service Center Lighting, Mechanical, and Electrical Improvements, and staffing workload constraints. 2020-2024 CIP: Project timeline extended due to staffing constraints. Fund: Capital Improvement Fund Category: Buildings and Facilities Project Location: MSC Building C Managing Department: Public Works IBRC Reference: N/A Initial Project Start: Fall 2018 Initial Project Completion: Fall 2019 Revised Project Start: Spring 2019 Revised Project Completion: Fall 2020 Project Number: PE-19001 Entryway to the Water, Gas, Wastewater Offices CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 133 Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund (64,003)97,700 (563,235)692,035 0 0 0 0 692,035 0 64,797 Transfer from Utilities Administration Fund 70,000 654,000 654,000 0 0 0 0 0 0 0 724,000 Total 5,997 751,700 90,765 692,035 0 0 0 0 692,035 0 788,797 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 882 720,700 90,765 692,035 0 0 0 0 692,035 0 783,682 Design 5,113 31,000 0 0 0 0 0 0 0 0 5,113 Total 5,995 751,700 90,765 692,035 0 0 0 0 692,035 0 788,795 Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.2 Potential Board/Commission Review: Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 135 Department Technology Upgrades and Improvements CAPITAL IMPROVEMENT FUND 136 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Automated External Defibrillator Replacement Automated External Defibrillator Replacement Description This project provides funding for the replacement of the entire compliment of Automated External Defibrillators (AEDs) throughout City facilities and emergency response vehicles, which currently totals 93 AEDs. Justification The Fire Department maintains the Automated External Defibrillators (AEDs) throughout City facilities and emergency response vehicles. These devices allow for intervention during a car- diac arrest while awaiting first responders. The current AEDs were purchased in 2013, and the recommended replacement cycle is between 5-8 years. This project will replace all AEDs throughout City facilities. Fund: Capital Improvement Fund Category: Department Technology Upgrades and Improvements Project Location: Various Managing Department: Fire IBRC Reference: N/A Initial Project Start: Fall 2020 Initial Project Completion: Summer 2021 Revised Project Start: Revised Project Completion: Project Number: FD-21000 Automated External Defibrillator at City Hall Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund 0 0 0 181,700 0 0 0 0 181,700 0 181,700 Revenue from Other Agencies 0 0 0 38,000 0 0 0 0 38,000 0 38,000 Total 0 0 0 219,700 0 0 0 0 219,700 0 219,700 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 137 Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Costs for future replacements will be budgeted according to a replacement cycle of 5- 8 years. Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Other 0 0 0 219,700 0 0 0 0 219,700 0 219,700 Total 0 0 0 219,700 0 0 0 0 219,700 0 219,700 Relationship to Comprehensive Plan Primary Connection Element: Safety Section: Natural Hazards Goal: S-2 Policy: S-1.13 Program: S2.13.1 Potential Board/Commission Review: Planning and Transportation Commission Environmental Impact Analysis: None Required CAPITAL IMPROVEMENT FUND 138 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Extrication Tool Replacement Extrication Tool Replacement Description This project provides funding for the replacement of all extrication tools for the Fire Depart- ment. Extrication tools, also known as "Jaws of Life", are used to rescue victims of car accidents and other emergencies where the victims are trapped in confined spaces. Justification Extrication tools are used for large scale rescue incidents, such as car accidents. These tools allow first responders to cut through most materials in order to rescue patients. These tools require replacement every 8-10 years. The current fleet was purchased in 2012. Fund: Capital Improvement Fund Category: Department Technology Upgrades and Improvements Project Location: Various Managing Department: Fire IBRC Reference: N/A Initial Project Start: Fall 2021 Initial Project Completion: Summer 2022 Revised Project Start: Revised Project Completion: Project Number: FD-22000 Extrication tools stored on the fire engine Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund 0 0 0 0 240,700 0 0 0 240,700 0 240,700 Revenue from Other Agencies 0 0 0 0 42,700 0 0 0 42,700 0 42,700 Total 0 0 0 0 283,400 0 0 0 283,400 0 283,400 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Other 0 0 0 0 283,400 0 0 0 283,400 0 225,000 Total 0 0 0 0 283,400 0 0 0 283,400 0 283,400 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 139 Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Costs for future replacements will be budgeted according to a replacement cycle of 8- 10 years. Relationship to Comprehensive Plan Primary Connection Element: Safety Section: Natural Hazards Goal: S-2 Policy: S-1.13 Potential Board/Commission Review: Planning and Transportation Commission Environmental Impact Analysis: None Required CAPITAL IMPROVEMENT FUND 140 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Police Video Recording Systems Replacement Police Video Recording Systems Replacement Description This project provides funding for the replacement of Palo Alto Police Department video record- ing systems used to record events in the field with in-car cameras as well as Body-Worn Cam- eras (BWC). The in-car camera technology was introduced in 2013 while BWCs were implemented in Fiscal Year 2019 after a one-year pilot program. 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. Images captured by in-car systems and BWCs are stored both locally and in the cloud on a secure platform. Justification The useful life is approximately 5 years for in-car systems and 4 years for BWCs. Public requests for more access to police video, particularly of "critical incidents" (yet to be legally defined), has increased over the last year with the passage of two state laws that hold agencies accountable for a higher level of transparency. The adoption of these technologies, along with the desire of the public for more accountability, prioritizes the need for police departments to maintain video recording systems. While video does not replace a written report, video can be helpful for reconstructing an incident for both criminal investigations and use of force incidents. Supplemental Information There are two components impacting the timeline of this project: Fund: Capital Improvement Fund Category: Department Technology Upgrades and Improvements Project Location: Palo Alto Police Department (275 Forest Ave) Managing Department: Police IBRC Reference: N/A Initial Project Start: Summer 2019 Initial Project Completion: Winter 2021 Revised Project Start: Revised Project Completion: Project Number: PD-20000 Police In-Car Video System CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 141 - Coordinating efforts of Information Technology and the Police Department for the replace- ment of the servers and subsequent utilization of cloud storage. - Syncing up the camera replacements with the vehicle replacement cycle will mitigate installing new camera system equipment in soon-to-be replaced vehicles. Funding is specifically for the replacement of the in-car cameras and system as well as the replacement of a server used for video data storage, due to the in-car system being at the end of its useful life. The BWC equipment will be at the end of its useful life in FY 2022, and funding for replacement will be recommended in this project as part of the next budget cycle. Operating Impact Software licensing costs of approximately $23,000 are already budgeted in the Police Depart- ment's operating budget. There are no additional operating impacts anticipated from this proj- ect. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Costs for future replacements will be budgeted accord- ing to a replacement cycle of 5 years for in-car systems and 4 years for Body-Worn Cameras. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund 0 150,000 48,000 114,400 182,700 0 0 0 297,100 0 345,100 Total 0 150,000 48,000 114,400 182,700 0 0 0 297,100 0 345,100 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Other 0 150,000 48,000 114,400 182,700 0 0 0 297,100 0 345,1000 Total 0 150,000 48,000 114,400 182,700 0 0 0 297,100 0 345,100 Relationship to Comprehensive Plan Primary Connection Element: Safety Section: Community Safety Goal: S-1 Policy: S-1.6 Program: S1.6.2 Potential Board/Commission Review: Planning and Transportation Commission Environmental Impact Analysis: Not Applicable CAPITAL IMPROVEMENT FUND 142 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Self-Contained Breathing Apparatus (SCBA) Air Compressor Replacement Self-Contained Breathing Apparatus (SCBA) Air Compressor Replacement Description This project provides funding for the replacement of the central air compressor that provides air for Self-Contained Breathing Apparatus (SCBA) tanks to ensure firefighter safety when enter- ing environments with hazardous air quality. Justification The Fire Department has one central air compressor at Fire Station 2 that is used to fill air tanks. The current compressor is over 20 years old, requires extensive repairs, and is due for replace- ment. Fund: Capital Improvement Fund Category: Department Technology Upgrades and Improvements Project Location: Fire Station 2 Managing Department: Fire IBRC Reference: N/A Initial Project Start: Fall 2020 Initial Project Completion: Summer 2021 Revised Project Start: Revised Project Completion: Project Number: FD-20001 Firefighter filling an SCBA tank with air Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund 0 69,700 0 78,200 0 0 0 0 78,200 0 78,200 Revenue from Other Agencies 0 16,300 0 16,300 0 0 0 0 16,300 0 16,300 Total 0 86,000 0 94,500 0 0 0 0 94,500 0 94,500 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 143 Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Costs for future replacements will be budgeted according to a replacement cycle of 15- 20 years. Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Other 0 86,000 0 94,500 0 0 0 0 94,500 0 94,500 Total 0 86,000 0 94,500 0 0 0 0 94,500 0 94,500 Relationship to Comprehensive Plan Primary Connection Element: Safety Section: Natural Hazards Goal: S-2 Policy: S-2.13 Program: S2.13.1 Potential Board/Commission Review: Planning and Transportation Commission Environmental Impact Analysis: N/A CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 145 Parks and Open Space CAPITAL IMPROVEMENT FUND 146 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Art In Public Spaces Art In Public Spaces Description This project provides funding for innovative public art for both interior and exterior public spaces in accordance with the City Council-approved Art in City Capital Improvement Projects ordinance. Justification This project places art in public buildings, plazas, gateways, parks, and other sites frequented by residents and visitors alike. It is expected that public art will enhance community pride and own- ership in the City of Palo Alto. Public Art preserves the long-term viability of the built environ- ment and helps set a standard for aesthetic variety and creativity in the community. Supplemental Information The Art in City Capital Improvement Projects ordinance states that the City will budget one per- cent of its CIP budget for public art, with certain exceptions. A base level of funding in the amount of $50,000 is included each year, and a portion of this funding pays for staff to install and replace temporary and rotating art pieces around the City. Prior to Fiscal Year 2015, one percent for public art was included in the budget for each applica- ble project. Beginning in Fiscal Year 2015, public art funding is accounted for within this capital project. This change provides a clearer picture of how much funding is available for public art, allows for the pooling of funds for more impactful projects, and ensures that the funds are pre- served for public art. Fund: Capital Improvement Fund Category: Parks and Open Space Project Location: Various Managing Department: Community Services IBRC Reference: Keep-up Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: AC-86017 Brilliance, by Joe O'Connell and Blessing Hancock CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 147 Operating Impact Annual funding of $30,000 for public art maintenance is allocated to the Community Services Department in the General Fund. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund N/A 1,639,500 1,239,055 1,738,194 280,700 190,800 225,372 245,900 2,680,966 0 N/A Total N/A 1,639,500 1,239,055 1,738,194 280,700 190,800 225,372 245,900 2,680,966 0 N/A Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 1,639,500 1,239,055 1,738,194 280,700 190,800 225,372 245,900 2,680,966 0 N/A Total N/A 1,639,500 1,239,055 1,738,194 280,700 190,800 225,372 245,900 2,680,966 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Land Use and Community Design Section: Parks and Gathering Places Goal: L-8 Policy: L-8-5 Relationship to Comprehensive Plan Secondary Connection Element: Land Use and Community Design Section: Commercial Centers Goal: L-4 Policy: L-4.4 Potential Board/Commission Review: Architectural Review Board Parks and Recreation Commission Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. CAPITAL IMPROVEMENT FUND 148 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Athletic Courts Resurfacing Athletic Courts Resurfacing Description This project provides funding for repair and resurfacing of various athletic courts such as tennis, pickleball, and basketball courts and gathering bowls in Palo Alto parks. Justification Athletic courts and gathering bowls in Palo Alto parks require ongoing repairs and resurfacing due to wear and tear. Resurfacing of courts will enhance the safety, quality, and condition of these athletic facilities. Supplemental Information Work to be completed under this project is scheduled as follows: Fiscal Year 2021: Briones Park, Greer Park, Hoover Park, Johnson Park, Ramos Park, Robles Park, Seale Park, and Scott Park basketball courts resurfacing or reconstruction. Fiscal Year 2022: Terman Park and Weisshaar Park tennis courts resurfacing or reconstruction. Fiscal Year 2023: Terman Park basketball courts resurfacing or reconstruction. Fiscal Year 2024: Hopkins Park tennis courts resurfacing or reconstruction. Fiscal Year 2025: Will be determined based on facility needs as reassessed closer to Fiscal Year 2025 Fund: Capital Improvement Fund Category: Parks and Open Space Project Location: Various Managing Department: Community Services IBRC Reference: Keep-up Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: PG-06001 Rinconada Tennis Courts, February 2015 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 149 Significant Changes 2020-2024 CIP: The project name was changed from Tennis and Basketball Court Resurfacing to broaden the scope of the project and include more types of athletic courts such as tennis, basketball, pickleball, and gathering bowls in Palo Alto parks. 2017-2021 CIP: Tennis courts at Cubberley Community Center have been removed from this project and now are covered in a separate project within the Cubberley Infrastructure Fund. Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund N/A 957,949 950,000 236,200 270,800 286,600 303,700 323,300 1,420,600 0 N/A Total N/A 957,949 950,000 236,200 270,800 286,600 303,700 323,300 1,420,600 0 N/A Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 957,949 950,000 236,200 270,800 286,600 303,700 323,300 1,420,600 0 N/A Total N/A 957,949 950,000 236,200 270,800 286,600 303,700 323,300 1,420,600 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.2 Program: C3.2.1 Relationship to Comprehensive Plan Secondary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.3 Program: C3.3.1 Potential Board/Commission Review: Parks and Recreation Commission Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. CAPITAL IMPROVEMENT FUND 150 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Baylands Athletic Center 10.5 Acre Expansion Plan Baylands Athletic Center 10.5 Acre Expansion Plan Description This project provides funding for conceptual plans and public outreach for future use of the Baylands Athletic Center due to the addition of 10.5 acres from land previously part of the golf course. Justification During the golf course reconstruction, 10.5 acres were set aside for future park use and incorpo- ration into the adjacent Baylands Athletic Center. The Parks, Trails, Open Space, and Recreation Master Plan calls for evaluating optimal usage including open space for the 10.5 acre land bank. Fund: Capital Improvement Fund Category: Parks and Open Space Project Location: Adjacent to Baylands Athletic Center (1900 Geng Road) Managing Department: Community Services IBRC Reference: New Initial Project Start: Summer 2018 Initial Project Completion: Summer 2019 Revised Project Start: Fall 2018 Revised Project Completion: Summer 2000 Project Number: PG-19001 Baylands, March 2017 Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund (89,598)105,553 10,000 81,400 0 0 0 0 81,400 0 1,802 Transfer from Parks Development Impact Fee Fund 100,000 0 0 0 0 0 0 0 0 0 100,000 Total 10,402 105,553 10,000 81,400 0 0 0 0 81,400 0 101,802 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 151 Operating Impact The conceptual plans funded in this project do not have operating budget impacts, but once a conceptual plan is adopted and built, there will be operating budget impacts which will be brought forward as part of future budget cycles. Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Design 10,401 105,553 10,000 81,400 0 0 0 0 81,400 0 101,801 Total 10,401 105,553 10,000 81,400 0 0 0 0 81,400 0 101,801 Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.3 Program: C3.3.1 Relationship to Comprehensive Plan Secondary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.2 Program: C3.2.1 Potential Board/Commission Review: Architectural Review Board Parks and Recreation Commission Planning and Transportation Commission Environmental Impact Analysis: Environmental Review Required CAPITAL IMPROVEMENT FUND 152 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Baylands Comprehensive Conservation Plan Baylands Comprehensive Conservation Plan Description This project provides funding for a conservation plan that will examine the native vegetation, wildlife habitat resources, and wildlife-appropriate public access for the entire Baylands, includ- ing Byxbee Park. This plan will provide needed information on best areas to maintain wildlife habitat and appropriate areas to develop trails or other recreation amenities; provide a design overlay for appropriate types and locations of public art in the Baylands; and design interpretive messaging throughout the Baylands. The plan seeks to optimize opportunities for low impact recreation ensuring that these are compatible with the Baylands Master Plan direction for a pas- sive park and nature preserve. The Conservation Plan will also provide input to the Byxbee Park Completion project. Justification Staff needs a guiding plan to provide insight on best management practices for wildlife, habitat, vegetation, and recreation management. The plan will also provide priorities, which will help staff and volunteers guide resources to the most important projects. With numerous changes taking place in environmentally significant areas, it is vital to have a holistic vision for the corri- dor that will balance the diverse needs of stakeholders. Supplemental Information A prior project to create a Baylands Comprehensive Conservation Plan was initiated in June 2006 but due to funding cuts the project was not completed. This project will involve hiring a consultant to complete the plan. Fund: Capital Improvement Fund Category: Parks and Open Space Project Location: Baylands Nature Preserve (2500 Embarcadero Road) Managing Department: Community Services IBRC Reference: Catch-up Initial Project Start: Fall 2016 Initial Project Completion: Winter 2018 Revised Project Start: Revised Project Completion: Fall 2020 Project Number: PG-17000 Baylands, July 2014 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 153 Significant Changes 2021-2025 CIP: CEQA work has been extended to FY 2021. 2019-2023 CIP: Additional funding of $90,000 added for CEQA. Completion date revised to FY 2019. 2017-2021 CIP: Additional funding of $60,000 was added to include design for interpretive messaging and design overlay for appropriate types and locations of public art. 2016-2020 CIP: Project established. Operating Impact This project is anticipated to impact operating expenses in the future. As these costs are quan- tified, adjustments will be brought forward in future budgets, as necessary. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund 322,219 97,738 90,000 7,100 0 0 0 0 7,100 0 419,319 Total 322,219 97,738 90,000 7,100 0 0 0 0 7,100 0 419,319 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Design 322,219 97,738 90,000 7,100 0 0 0 0 71,100 0 419,319 Total 322,219 97,738 90,000 7,100 0 0 0 0 7,100 0 419,319 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Open Space Goal: N-3 Policy: N-3.4 Potential Board/Commission Review: Architectural Review Board Parks and Recreation Commission Planning and Transportation Commission Environmental Impact Analysis: This project may be subject to CEQA review. CAPITAL IMPROVEMENT FUND 154 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Baylands Levee Repair for Public Safety Access Baylands Levee Repair for Public Safety Access Description This project provides funding to restore the width and height of the earthen flood levee between Harbor Road near the Baylands Interpretive Center and the perimeter levee of the air- port to six inches above its original height. Justification This section of City-maintained levee has significantly subsided since it was built in the early 1960s. High winter tides now overflow the top of the levee, causing significant erosion along both edges of the levee. This levee is important not only for flood control of the Baylands, but also for emergency response by fire and paramedic vehicles for fires, plane crashes and rescue of injured trail users. The section of levee between the road and the Nature Center is essential for public access. Supplemental Information Information from the Bay Conservation and Development Commission on sea level rise projec- tions will be incorporated into the design of the restoration of the levee in order for the struc- ture to function against increasing tide levels. This project is pending a cost estimate update as regulatory agencies have informed staff that this project will require mitigation. Significant Changes 2020-2024 CIP: Project funding has been pushed out to FY 2024 and is pending an updated cost estimate. Fund: Capital Improvement Fund Category: Parks and Open Space Project Location: Harbor Road near Baylands Nature Interpretive Center (2775 Embarcadero Road) Managing Department: Community Services IBRC Reference: New Initial Project Start: Spring 2012 Initial Project Completion: Summer 2014 Revised Project Start: Summer 2024 Revised Project Completion: Summer 2026 Project Number: OS-09002 Baylands Levee, January 2015 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 155 2019-2023 CIP: Project funding has been pushed out to FY 2021 and is pending an updated cost estimate. 2018-2022 CIP: Securing the regulatory permits remain delayed and now may require mitiga- tion. 2016-2020 CIP: Project completion has been extended by 2 1/2 years due to delays in securing the regulatory permits needed to construct the project. Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund 54,298 0 0 0 0 0 375,202 0 375,202 0 429,500 Total 54,298 0 0 0 0 0 375,202 0 375,202 0 429,500 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 54,298 0 0 0 0 0 109,600 0 109,600 0 163,898 Design 0 0 0 0 0 0 265,602 0 265,602 0 265,602 Total 54,298 0 0 0 0 0 375,202 0 375,202 0 429,500 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Open Space Goal: N-1 Policy: N-1.5 Program: N1.5.1 Potential Board/Commission Review: Planning and Transportation Commission San Francisquito Creek Joint Powers Authority Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. CAPITAL IMPROVEMENT FUND 156 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Benches, Signage, Walkways, Perimeter Landscaping, and Site Amenities Benches, Signage, Walkways, Perimeter Landscaping, and Site Amenities Description This project provides funding for the restoration and replacement of existing benches, signage, fencing, walkways, and landscaping at various City facilities. Justification Benches, signage, fencing, walkways, and perimeter landscaping at various sites are due for replacement or upgrade based on their age and/or condition. Supplemental Information Replacements will be evaluated and recommended by the Community Services Department on a per park basis with actual work dependent upon bid results. Significant Changes 2020-2024 CIP: On-going project budget increased by $25,000 annually for a total of $0.2 mil- lion per year. Fund: Capital Improvement Fund Category: Parks and Open Space Project Location: Various Managing Department: Community Services IBRC Reference: Keep-up Initial Project Start: 1997 Initial Project Completion: Recurring Project Number: PG-06003 Greer Park, January 2015 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 157 Operating Impact This project is not anticipated to impact operating expenses and if any maintenance costs increase, costs will be absorbed with the available maintenance funding in the annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund N/A 207,003 150,000 247,920 223,300 236,900 251,700 268,700 1,228,520 0 N/A Total N/A 207,003 150,000 247,920 223,300 236,900 251,700 268,700 1,228,520 0 N/A Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 207,003 150,000 247,920 223,300 236,900 251,700 268,700 1,228,520 0 N/A Total N/A 207,003 150,000 247,920 223,300 236,900 251,700 268,700 1,228,520 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.2 Program: C3.2.1 Relationship to Comprehensive Plan Secondary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.3 Program: C3.3.1 Potential Board/Commission Review: Parks and Recreation Commission Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. CAPITAL IMPROVEMENT FUND 158 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Bol Park Improvements Bol Park Improvements Description This project provides funding for safety renovations and accessibility improvements, including repairs to the decomposed granite pathways, park lighting, and replacement of the playground equipment. Irrigation renovations and turf restoration are also included in this project, as well as the replacement of site amenities. Justification The decomposed granite pathway need regrading and resurfacing. The childrenís playground equipment will reach its 20 years life expectancy by 2024 and will need replacement. Park light- ing and other site amenities including benches, tables, and trash receptacles are very old and need to be replaced. Significant Changes 2021-2025 CIP: The playground replacement was added to the scope of the project as it will reach its 20 years life expectancy in 2024. 2020-2024 CIP: Project moved from Fiscal Year 2020 to Fiscal Year 2024 due to some interim improvements that were made, prolonging the remaining park structures to last until Fiscal Year 2024. This allows for work at other projects with more immediate needs. Fund: Capital Improvement Fund Category: Parks and Open Space Project Location: 3590 Laguna Avenue Managing Department: Public Works IBRC Reference: Catch-up Initial Project Start: Summer 2019 Initial Project Completion: Summer 2020 Revised Project Start: Summer 2023 Revised Project Completion: Summer 2024 Project Number: PE-16000 Bol Park, February 2015 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 159 Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund 0 0 0 0 0 0 685,100 0 685,100 0 685,100 Total 0 0 0 0 0 0 685,100 0 685,100 0 685,100 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 0 0 0 635,808 0 635,808 0 635,808 Design 0 0 0 0 0 0 49,292 0 49,292 0 49,292 Total 0 0 0 0 0 0 685,100 0 685,100 0 685,100 Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.3 Potential Board/Commission Review: Parks and Recreation Commission Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. CAPITAL IMPROVEMENT FUND 160 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Boulware Park Improvements Boulware Park Improvements Description This project provides funding for improvements to the existing children's playgrounds, fencing, lighting, and site amenities, as well as accessibility upgrades at Boulware Park. Playground improvements include the installation of a new play structure and replacement of existing light pole fixtures, drinking fountains, benches, and trash receptacles. Rubberized surfacing will also be replaced and expanded to increase accessibility. Justification The existing playground equipment, installed in 1993, is approaching the end of its useful life and needs to be replaced. In addition, light poles and site amenities, including drinking foun- tains, benches and trash/recycle receptacles are aged and need replacing. Significant Changes 2021-2025 CIP: Depending on the funding and timeline for PE-19003, Birch Street Improve- ments, work to update the playground equipment may be coordinated with PE-19003, as the two properties are adjacent to each other. 2019-2023 CIP: Project construction funding moved to Fiscal Year 2020 to address workload plus project priorities. 2018-2022 CIP: Project shifted back to Fiscal Year 2018 following consideration of staff work- load and park priorities. 2017-2021 CIP: Project shifted from Fiscal Year 2018 to Fiscal Year 2021 pending completion of the Parks Master Plan and a reprioritization of parks projects. Fund: Capital Improvement Fund Category: Parks and Open Space Project Location: 410 Fernando Avenue Managing Department: Public Works IBRC Reference: Catch-up Initial Project Start: Fall 2017 Initial Project Completion: Fall 2018 Revised Project Start: Fall 2019 Revised Project Completion: Fall 2020 Project Number: PE-17005 Boulware Park, February 2015 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 161 Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund 100,461 473,000 20,102 442,499 0 0 0 0 442,499 0 563,062 Total 100,461 473,000 20,102 442,499 0 0 0 0 442,499 0 563,062 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 468,912 20,102 442,499 0 0 0 0 442,499 0 462,601 Design 100,459 4,088 0 0 0 0 0 0 0 0 100,459 Total 100,459 473,000 20,102 442,499 0 0 0 0 442,499 0 563,060 Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.3 Potential Board/Commission Review: Parks and Recreation Commission Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. CAPITAL IMPROVEMENT FUND 162 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Byxbee Park Completion Byxbee Park Completion Description This project provides funding for the remaining improvements to Byxbee Park per the concep- tual plan developed in the Baylands Comprehensive Conservation Plan. The conceptual plan calls for additional native planting islands, park seating, interpretive signage, and an expanded parking lot. Justification While some improvements and amenities have already been provided through the Byxbee Park Trails Project, this project will revisit the vision for the entire park, and implement the plan for the final park. Design of the project will incorporate recommendations from the Baylands Com- prehensive Conservation Plan Project. Supplemental Information The Byxbee Park Completion Project is included in the Council Infrastructure Plan. Funds for the project are provided by the Parks Development Impact Fee Fund. The Parks, Trails, Natural Open Space and Recreational Master Plan projects were reviewed and adjusted according to staff availability as well as community and IBRC needs. Significant Changes 2020-2024 CIP: A majority of the funding, including the transfer from the Parks Dedication Fund, has been moved to Fiscal Year 2021 to coordinate with the Baylands Comprehensive Con- servation Plan and the Byxbee Park Master Plan. 2019-2023 CIP: Budget increased to reflect total project cost estimate of $3.6 million. Fund: Capital Improvement Fund Category: Parks and Open Space Project Location: 2500 Embarcadero Road Managing Department: Public Works IBRC Reference: New Initial Project Start: Summer 2017 Initial Project Completion: Fall 2019 Revised Project Start: Fall 2019 Revised Project Completion: Spring 2021 Project Number: PE-18006 Byxbee Park , March 2015 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 163 2018-2022 CIP: Funding has been moved to Fiscal Year 2019 to coordinate with the findings from the Baylands Comprehensive Conservation Plan project. Operating Impact This project is anticipated to impact operating expenses in the future. Byxbee Park is main- tained under a large parks maintenance contract which will be bid out for services. As these costs are quantified, adjustments will be brought forward in future budget cycles. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund (57,175)597,220 16,074 781,146 0 0 0 0 781,146 0 740,045 Transfer from Parks Dedication Fund 0 0 0 2,400,000 0 0 0 0 2,400,000 0 2,400,000 Transfer from Parks Development Impact Fee Fund 400,000 0 0 0 0 0 0 0 0 0 400,000 Total 342,825 597,220 16,074 3,181,146 0 0 0 0 3,181,146 0 3,540,045 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 342,823 214,600 16,074 3,181,146 0 0 0 0 3,181,146 0 3,540,043 Design 0 382,620 0 0 0 0 0 0 0 0 0 Total 342,823 597,220 16,074 3,181,146 0 0 0 0 3,181,146 0 3,540,043 Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.3 Potential Board/Commission Review: Architectural Review Board Parks and Recreation Commission Planning and Transportation Commission Environmental Impact Analysis: This project is anticipated to require an environmental assessment in accordance with CEQA guidelines. CAPITAL IMPROVEMENT FUND 164 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Cameron Park Improvements Cameron Park Improvements Description This project provides funding to upgrade and renovate safety and accessibility features at Cam- eron Park with a primary focus on the park playground. Justification As park infrastructure ages, safety and compliance issues need to be addressed. This project will ensure compliance and address accessibility needs as well as safety issues. Significant Changes 2021-2025 CIP: Project moved to Fiscal Year 2021 due to staffing constraints and other high pri- ority projects. 2020-2024 CIP: Project shifted from Fiscal Year 2022 to Fiscal Year 2020 due to acceleration of playground damage, aging, and replacements needs. Also, funding increased by $95,000 to account for construction cost increases. 2018-2022 CIP: Project shifted from Fiscal Year 2020 to Fiscal Year 2022 due to a reprioritiza- tion of parks projects. 2017-2021 CIP: Project shifted from Fiscal Year 2018 to Fiscal Year 2020 pending completion of the Parks Master Plan and a reprioritization of parks projects. Fund: Capital Improvement Fund Category: Parks and Open Space Project Location: 2101 Wellesley Street between College and Stanford Avenues Managing Department: Community Services IBRC Reference: Catch-up Initial Project Start: Summer 2017 Initial Project Completion: Summer 2018 Revised Project Start: Summer 2019 Revised Project Completion: Spring 2021 Project Number: PG-14002 Cameron Park, January 2015 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 165 Operating Impact This project is not anticipated to impact operating expenses and if any maintenance costs increase, costs will be absorbed with the available maintenance funding in the annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund 0 237,000 20,000 197,800 0 0 0 0 197,800 0 217,800 Total 0 237,000 20,000 197,800 0 0 0 0 197,800 0 217,800 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 237,000 0 197,800 0 0 0 0 197,800 0 197,800 Design 0 0 20,000 0 0 0 0 0 0 0 20,000 Total 0 237,000 20,000 197,800 0 0 0 0 197,800 0 217,800 Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.3 Program: C3.3.1 Relationship to Comprehensive Plan Secondary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.2 Program: C3.2.1 Potential Board/Commission Review: Parks and Recreation Commission Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. CAPITAL IMPROVEMENT FUND 166 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Dog Park Installation and Renovation Dog Park Installation and Renovation Description This project provides funding for building dog parks at various City parks and facilities that cur- rently do not have dog parks, as well as renovating existing dog parks. Justification The Parks, Trails, Natural Open Space, and Recreation Master Plan provides guidance on dog parks. The policy states that Palo Alto should actively pursue adding dedicated, fenced, dog parks in multiple neighborhoods, equitably distributed between North and South Palo Alto. The size of the dog parks will vary, but should strive to be at least .25 acres and each new dog park installation will require a Park Improvement Ordinance. When this project was established, Palo Alto had three dog parks at Mitchell Park, Hoover Park, and Greer Park. These dog parks were undersized and located only in the south side of the City. Funding from this project expanded the dog parks and provided a fourth dog park to serve the north side of the City, at Peers Park. Continued funding from this project allows additional dog parks to be built throughout Palo Alto. Fund: Capital Improvement Fund Category: Parks and Open Space Project Location: Various Managing Department: Community Services IBRC Reference: New Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: PG-18001 Mitchell Park Dog Run, March 2017 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 167 Operating Impact Cleaning costs of $2,000 per year, per dog park, are currently budgeted in the Community Ser- vices Department operating budget. However, the addition of more dog parks may cause this amount to increase. Additional funding needs will be brought forward as part of future budget cycles. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund N/A 27,000 (150,000)164,800 0 50,000 0 75,600 290,400 0 N/A Transfer from Parks Dedication Fund N/A 0 0 0 0 0 0 0 0 0 N/A Transfer from Parks Development Impact Fee Fund N/A 150,000 150,000 0 0 150,000 0 150,000 300,000 0 N/A Total N/A 177,000 0 164,800 0 200,000 0 225,600 590,400 0 N/A Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 167,000 0 164,800 0 190,000 0 215,600 570,400 0 N/A Design N/A 10,000 0 0 0 10,000 0 10,000 20,000 0 N/A Total N/A 177,000 0 164,800 0 200,000 0 225,600 590,400 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.3 Program: C3.3.1 Relationship to Comprehensive Plan Secondary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.2 Program: C3.2.1 Potential Board/Commission Review: Parks and Recreation Commission Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have possible exemption from CEQA under Section 15301 CAPITAL IMPROVEMENT FUND 168 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Foothills Park Boronda Lake Dock Replacement Foothills Park Boronda Lake Dock Replacement Description This project provides funding for the replacement of an aged and deteriorating Boronda Lake Dock. Justification The dock was originally built in 1965 and was last refurbished in 2010 with repairs to the wood decking. The current condition of the dock is declining and now requires a complete replace- ment of the dock with new decking, ramp, floats, and pilings. Significant Changes 2021-2025 CIP: Project funding increased due to escalation of repair/construction costs. 2019-2023 CIP: Project funding has been pushed out to FY 2021. Fund: Capital Improvement Fund Category: Parks and Open Space Project Location: Foothills Park Boronda Lake (3300 Page Mill Road between Central and Moody) Managing Department: Community Services IBRC Reference: Keep-up Initial Project Start: Fall 2017 Initial Project Completion: Spring 2018 Revised Project Start: Fall 2020 Revised Project Completion: Spring 2021 Project Number: OS-18000 Boronda Lake Dock, February 2017 Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund 0 0 0 230,700 0 0 0 0 230,700 0 230,700 Total 0 0 0 230,700 0 0 0 0 230,700 0 230,700 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 169 Operating Impact This project is not anticipated to impact operating expenses and if any maintenance costs increase, costs will be absorbed with the available maintenance funding in the annual operating budget. Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 143,046 0 0 0 0 143,046 0 143,046 Design 0 0 0 87,654 0 0 0 0 87,654 0 87,654 Total 0 0 0 230,700 0 0 0 0 230,700 0 230,700 Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.2 Program: C3.2.1 Potential Board/Commission Review: Architectural Review Board Parks and Recreation Commission Planning and Transportation Commission Environmental Impact Analysis: Possible exemption from CEQA under Section 15302 CAPITAL IMPROVEMENT FUND 170 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Foothills Park Improvement Project Foothills Park Improvement Project Description This project provides funding to replace the bridge to Sunfish Island, design and permitting to replace the footbridge in Los Trancos Valley, and to replace the grade control structures along Buckeye Creek. Justification The Sunfish Island Bridge (located at Boronda Lake) is in disrepair and needs to be replaced. The footbridge in Los Trancos Valley and grade control structures along Buckeye Creek are deteriorating and approaching the end of their useful life. If no action is taken, the footbridge and grade control structures will likely fail in the next 5-10 years. This would lead to severe ero- sion in several areas of Foothills Park, especially Wild Horse Valley where the existing utility cor- ridors would be threatened. Supplemental Information Sunfish Island Bridge was built in the early 1960's and significant exterior wear and erosion have deteriorated the condition of this bridge as well as the Los Trancos Valley footbridge. The City recently completed a hydrology study of Buckeye Creek to provide recommendations to reduce erosion, sediment deposition, and flooding conditions in Foothills Park. The study recom- mended options to resolve the current erosion issues and to restore the creek channel, including replacement of the footbridge and grade control structures along Buckeye Creek. Fund: Capital Improvement Fund Category: Parks and Open Space Project Location: Foothills Park (3300 Page Mill Road between Central and Moody) Managing Department: Public Works IBRC Reference: Keep-up Initial Project Start: Summer 2021 Initial Project Completion: Fall 2022 Revised Project Start: Fall 2023 Revised Project Completion: Summer 2024 Project Number: PE-21000 Foothills Park Orchard Glen picnic area, January 2016 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 171 Significant Changes 2021-2025 CIP: Project design and construction funding delayed from Fiscal Year 2021 to Fiscal Year 2023 for design and Fiscal Year 2024 for construction due to staffing constraints and other high-priority projects. 2019-2023 CIP: The Los Trancos Valley footbridge and Buckeye Creek grade control structures replacement has been added to the scope of this project. Funding has been increased by $150,000 to address added scope. 2018-2022 CIP: Funding has been moved from Fiscal Year 2020 to Fiscal Year 2021 to coordi- nate with the findings from the Foothills Park, Pearson Arastradero Preserve, and Esther Clark Park Comprehensive Conservation Plan project. Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund 0 0 0 0 0 83,300 397,200 0 480,500 0 480,500 Total 0 0 0 0 0 83,300 397,200 0 480,500 0 480,500 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 0 0 0 397,200 0 397,200 0 397,200 Design 0 0 0 0 0 83,300 0 0 83,300 0 83,300 Total 0 0 0 0 0 83,300 397,200 0 480,500 0 480,500 Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.3 Potential Board/Commission Review: Architectural Review Board Parks and Recreation Commission Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301 CAPITAL IMPROVEMENT FUND 172 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Foothills Park, Pearson Arastradero Preserve, and Esther Clark Park Conservation Plan Foothills Park, Pearson Arastradero Preserve, and Esther Clark Park Conservation Plan Description This project provides funding to create 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. Justification Staff needs a guiding plan to provide insight on best management practices for wildlife, habitat, vegetation, and recreation management. The plan will also provide priorities, which will help staff and volunteers guide resources to the most important projects. Significant Changes 2021-2025 CIP: Funding for CEQA shifted to Fiscal Year 2024 due to a reprioritization of parks projects. 2020-2024 CIP: Added $0.1 million for CEQA and project shifted to Fiscal Year 2022 due to a reprioritization of parks projects. 2018-2022 CIP: Project shifted from Fiscal Year 2021 to Fiscal Year 2019 due to a reprioritization of parks projects. 2017-2021 CIP: Project established. Fund: Capital Improvement Fund Category: Parks and Open Space Project Location: Foothills Park, Pearson Arastradero Preserve, and Esther Clark Park Managing Department: Community Services IBRC Reference: Keep-up Initial Project Start: Summer 2020 Initial Project Completion: Summer 2022 Revised Project Start: Summer 2022 Revised Project Completion: Summer 2024 Project Number: PG-17001 Pearson-Arastradero Preserve, January 2016 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 173 Operating Impact Although this project is only to develop a conservation plan, it may result in increased operating expenses that will be brought forward as part of future budget recommendations. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund 0 355,000 0 319,200 0 0 170,400 0 489,600 0 489,600 Total 0 355,000 0 319,200 0 0 170,400 0 489,600 0 489,600 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Design 0 355,000 0 319,200 0 0 170,400 0 489,600 0 489,600 Total 0 355,000 0 319,200 0 0 170,400 0 489,600 0 489,600 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Open Space Goal: N-3 Policy: N-3.4 Potential Board/Commission Review: Parks and Recreation Commission Planning and Transportation Commission Environmental Impact Analysis: This project may be subject to CEQA review. CAPITAL IMPROVEMENT FUND 174 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Golf Course Net and Artificial Turf Replacement Golf Course Net and Artificial Turf Replacement Description This project provides funding for the removal and replacement of golf course driving range net- ting and synthetic turf. Justification Based on age, condition, and useful life expectancy, replacement golf course driving range net- ting and synthetic turf will be needed. The golf course driving range is a popular facility, and is used as a teaching area. The facility is an important source of revenue to the City, and keeping it in a state of good repair will aid in maintaining this revenue stream. Supplemental Information This project is pending a cost estimate update as current estimate was made in Fiscal Year 2013. Significant Changes 2020-2024 CIP: Project shifted from Fiscal Year 2020 to Fiscal Year 2022 due to a reprioritiza- tion of parks projects. 2018-2022 CIP: Project shifted from Fiscal Year 2018 to Fiscal Year 2020 due to a reprioritiza- tion of parks projects. Fund: Capital Improvement Fund Category: Parks and Open Space Project Location: Palo Alto Municipal Golf Course (1875 Embarcadero Road) Managing Department: Community Services IBRC Reference: Keep-up Initial Project Start: Spring 2018 Initial Project Completion: Summer 2018 Revised Project Start: Winter 2022 Revised Project Completion: Spring 2022 Project Number: PG-18000 Golf Course Net and Artificial Turf CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 175 Operating Impact This project is not anticipated to impact operating expenses and if any maintenance costs increase, costs will be absorbed with the available maintenance funding in the annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund 0 0 0 0 970,000 0 0 0 970,000 0 970,000 Total 0 0 0 0 970,000 0 0 0 970,000 0 970,000 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 0 945,000 0 0 0 945,000 0 945,000 Design 0 0 0 0 25,000 0 0 0 25,000 0 25,000 Total 0 0 0 0 970,000 0 0 0 970,000 0 970,000 Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.2 Program: C3.2.1 Relationship to Comprehensive Plan Secondary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.3 Program: C3.3.1 Potential Board/Commission Review: Parks and Recreation Commission Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. CAPITAL IMPROVEMENT FUND 176 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Heritage Park Site Amenities Replacement Heritage Park Site Amenities Replacement Description The project provides funding for replacement of select walkways and all of the site amenities in Heritage Park including: benches, picnic tables, trash receptacles, playground arbor, bicycle racks and drinking fountain. Justification Installed in 2005, the current site amenities have reached the use expectancy and need replace- ment. As park infrastructure ages, safety and compliance issues need to be addressed. This project will ensure compliance and address accessibility needs as well as safety issues. Significant Changes 2021-2025 CIP: Project shifted from Fiscal Year 2022 to Fiscal Year 2025 due to a reprioritiza- tion of parks projects. Fund: Capital Improvement Fund Category: Parks and Open Space Project Location: 300 Homer Avenue (bounded by Waverley, Homer, and Bryant) Managing Department: Community Services IBRC Reference: Keep-up Initial Project Start: Summer 2020 Initial Project Completion: Summer 2022 Revised Project Start: Summer 2024 Revised Project Completion: Summer 2025 Project Number: PG-21000 Heritage Park Bench, March 2017 Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund 0 0 0 0 0 0 0 195,500 195,500 0 195,500 Total 0 0 0 0 0 0 0 195,500 195,500 0 195,500 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 177 Operating Impact This project is not anticipated to impact operating expenses and if any maintenance costs increase, costs will be absorbed with the available maintenance funding in the annual operating budget. Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 0 0 0 0 165,500 165,500 0 165,500 Design 0 0 0 0 0 0 0 30,000 30,000 0 30,000 Total 0 0 0 0 0 0 0 195,500 195,500 0 195,500 Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.3 Program: C3.3.1 Relationship to Comprehensive Plan Secondary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.2 Program: C3.2.1 Potential Board/Commission Review: Parks and Recreation Commission Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have possible exemption from CEQA under Section 15301 CAPITAL IMPROVEMENT FUND 178 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Hoover Park Improvements Hoover Park Improvements Description This project provides funding for the replacement of the existing concrete walkway, playground, repairs to the existing decomposed granite walkway and replacement of site amenities, includ- ing playfield backstops, benches, drinking fountains, tables, and trash receptacles. Also included are repairs to the existing brick wall surrounding the children’s playground. Justification The concrete walkway and decomposed granite pathway are cracked and/or uneven, creating safety hazards. The playground was installed in 2005 and will reach the end of its useful life by 2025. The brick wall at the playground and other site amenities, including the playfield back- stops, are old or damaged. Significant Changes 2021-2025 CIP: Replacement of the children’s playground and drinking fountains have been added to the scope of work and the project has shifted from Fiscal Year 2023 to Fiscal Year 2025 due to a reprioritization of parks projects. 2020-2024 CIP: Project shifted from Fiscal Year 2022 to Fiscal Year 2023 due to a reprioritiza- tion of parks projects. 2018-2022 CIP: The Parks, Trails, Natural Open Space and Recreational Master Plan projects were reviewed and adjusted according to staff availability as well as community and Infrastruc- ture Blue Ribbon Commission (IBRC) needs. 2017-2021 CIP: Project shifted from Fiscal Year 2018 to Fiscal Year 2021 pending completion of the Parks Master Plan and a reprioritization of parks projects. Fund: Capital Improvement Fund Category: Parks and Open Space Project Location: 2901 Cowper Street Managing Department: Public Works IBRC Reference: Keep-up Initial Project Start: Fall 2018 Initial Project Completion: Spring 2019 Revised Project Start: Summer 2024 Revised Project Completion: Summer 2025 Project Number: PE-18012 Hoover Park, February 2015 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 179 2016-2020 CIP: Project moved from 2018 to 2017 based on review of staff work load. Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund 0 0 0 0 0 0 0 1,255,700 1,255,700 0 1,255,700 Total 0 0 0 0 0 0 0 1,255,700 1,255,700 0 1,255,700 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 0 0 0 0 1,170,700 1,170,700 0 1,170,700 Design 0 0 0 0 0 0 0 85,000 85,000 0 85,000 Total 0 0 0 0 0 0 0 1,255,700 1,255,700 0 1,255,700 Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.3 Potential Board/Commission Review: Parks and Recreation Commission Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. CAPITAL IMPROVEMENT FUND 180 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Johnson Park Renovation Johnson Park Renovation Description This project provides funding for the renovation of existing park elements, including asphalt concrete and brick pathways, site furnishings, playground equipment and resurfacing, fencing, and improvements to irrigation and lighting. Justification Pathways and park amenities are in need of repair or improvements to maintain functionality. Significant Changes 2021-2025 CIP: Design and construction costs increased to align with increased scope of work and project shifted from Fiscal Years 2021 and 2022 to Fiscal Years 2024 and 2025 due to repri- oritization of parks projects. Fund: Capital Improvement Fund Category: Parks and Open Space Project Location: 251 Waverley Street Managing Department: Public Works IBRC Reference: Keep-up Initial Project Start: Spring 2021 Initial Project Completion: Winter 2022 Revised Project Start: Fall 2023 Revised Project Completion: Summer 2025 Project Number: PE-21002 Johnson Park Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund 0 0 0 0 0 0 474,800 1,573,900 2,048,700 0 2,048,700 Total 0 0 0 0 0 0 474,800 1,573,900 2,048,700 0 2,048,700 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 181 Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 0 0 0 289,800 1,573,900 1,863,700 0 1,863,700 Design 0 0 0 0 0 0 185,000 0 185,000 0 185,000 Total 0 0 0 0 0 0 474,800 1,573,900 2,048,700 0 2,048,700 Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.3 Potential Board/Commission Review: Architectural Review Board Parks and Recreation Commission Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. CAPITAL IMPROVEMENT FUND 182 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Magical Bridge Playground Rubber and Synthetic Turf Resurfacing Magical Bridge Playground Rubber and Synthetic Turf Resurfacing Description This project provides funding for the replacement of all rubberized and synthetic turf surfacing in the playground and play equipment. Justification The Magical Bridge Playground was opened to the public in March of 2015 and is the most heav- ily used playground in Palo Alto. Rubberized and synthetic surfacing has a life span of approxi- mately 7 to 10 years depending upon the sun exposure and use and will need replacement by 2021. Play equipment including, but not limited to, swings, climbing net, and the playhouse would also reach the end of their useful life and will need replacement and repair by 2022. Since its installation, portions of the playground failed prematurely and have required periodic clo- sures for repairs. Supplemental Information The City will work with internal and external stakeholders including the Friends of the Magical Bridge Playground to inform the community of the project schedule as the playground will need to be closed for a period of approximately two weeks to complete the work. Fund: Capital Improvement Fund Category: Parks and Open Space Project Location: Mitchell Park: 600 E Meadow Drive, Palo Alto, CA 94306 Managing Department: Community Services IBRC Reference: N/A Initial Project Start: Spring 2021 Initial Project Completion: Summer 2021 Revised Project Start: Revised Project Completion: Project Number: PE-21003 Magical Bridge Playground CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 183 Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund 0 0 0 404,050 463,250 0 0 0 867,300 0 867,300 Total 0 0 0 404,050 463,250 0 0 0 867,300 0 867,300 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 344,050 463,250 0 0 0 807,300 0 807,300 Design 0 0 0 60,000 0 0 0 0 60,000 0 60,000 Total 0 0 0 404,050 463,250 0 0 0 867,300 0 867,300 Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.3 Potential Board/Commission Review: Parks and Recreation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under section 15302. CAPITAL IMPROVEMENT FUND 184 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Mitchell Park Improvements Mitchell Park Improvements Description This project provides funding for repair and replacement of equipment and amenities through- out Mitchell Park. The improvements include replacement of the playground equipment located along East Meadow Drive, renovation of the water-play element, repair of the covered wood walkway structure, replacement of playground and water play area fencing, and new rubberized surfacing. Also included are irrigation renovations, turf restoration, and replacement of site ame- nities and decomposed granite pathways. Justification The playground equipment, water-play element, fencing, covered wood walkway structure, decomposed granite pathways, and site amenities have surpassed their expected lifecycle. Repair and/or replacement is necessary. Loss of vegetation has been linked to poor irrigation. Supplemental Information Design of the new playground equipment will include outreach to nearby schools that have pro- vided input regarding the playground equipment in the past. The Parks, Trails, Natural Open Space and Recreational Master Plan projects were reviewed and adjusted according to staff availability as well as community needs and recommendations from the Infrastructure Blue Rib- bon Committee (IBRC). Significant Changes 2020-2024 CIP: This project has been deferred due to staffing constraints. 2019-2023 CIP: This project has been deferred due to staffing constraints. Fund: Capital Improvement Fund Category: Parks and Open Space Project Location: 600 East Meadow Drive Managing Department: Public Works IBRC Reference: Keep-up Initial Project Start: Fall 2018 Initial Project Completion: Summer 2019 Revised Project Start: Summer 2022 Revised Project Completion: Summer 2024 Project Number: PE-18010 Mitchell Park, February 2015 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 185 2018-2022 CIP: Design shifted from Fiscal Year 2021 to Fiscal Year 2020. 2016-2020 CIP: Based on the IBRC keep-up schedule for the park, irrigation renovations, turf restoration and park amenities replacement were added to the project's scope with an addi- tional budget allocation of $946,000. This additional work was scheduled for Fiscal Year 2020, and the project schedule was adjusted accordingly. Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund 0 0 0 0 0 374,000 1,059,895 0 1,433,895 0 1,433,895 Total 0 0 0 0 0 374,000 1,059,895 0 1,433,895 0 1,433,895 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 0 0 86,000 1,059,895 0 1,145,895 0 1,145,895 Design 0 0 0 0 0 288,000 0 0 288,000 0 288,000 Total 0 0 0 0 0 374,000 1,059,895 0 1,433,895 0 1,433,895 Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.3 Potential Board/Commission Review: Architectural Review Board Parks and Recreation Commission Planning and Transportation Commission Environmental Impact Analysis: This project may require an environmental assessment in accordance with CEQA guidelines. CAPITAL IMPROVEMENT FUND 186 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Off-Road Pathway Resurfacing And Repair Off-Road Pathway Resurfacing And Repair Description This project provides funding for the maintenance of Palo Alto's 9-miles of off-road paved trail system that is 35 years old and requires on-going, phased repairs. This project removes and and replaces severely damaged sections of asphalt, repairs, cracks and base failures, and resurfaces worn or uneven surfaces of off-road asphalt pathways and bicycle trails. Priority will be given to the repair of the most uneven sections of pathway. Staff uses surface assessment data prepared by Public Works Engineering and input from the public to prioritize repair or replacement proj- ects. Justification This project is intended to maintain the existing system of off-road pathways and trails through- out Palo Alto in order to extend the useful like of pathway surfaces. The project will ensure safe, even and handicap-accessible surfaces for pedestrians, cyclists, and skaters. Repair of uneven trail surfaces will greatly reduce accidents. Significant Changes 2019 -2023 CIP: The Adobe Creek Reach Trail is a 600 foot long segment of the existing Santa Clara Valley Water District’s maintenance road on the east side of Adobe Creek, between West Bayshore Road and East Meadow Drive. This trail will provide an off-road, more direct access to the Highway 101 Pedestrian and Bicycle Overcrossing. The project includes trail pavement, grad- ing, and drainage, and installation of safety railing and fencing. Fund: Capital Improvement Fund Category: Parks and Open Space Project Location: Various Managing Department: Community Services IBRC Reference: Keep-up Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: OS-09001 Byxbee Park pole field, January 2015 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 187 2018 -2022 CIP: In accordance with the Funding Agreement for the project, a payment of approximately $170,000 will be made to the Joint Power Agreement (JPA) "Highway 101 to Bay Flood Control" project in FY 2018. The remaining balance will be used for off-road trail repairs. Operating Impact This project is not anticipated to impact operating expenses and if any maintenance costs increase, costs will be absorbed with the available maintenance funding in the annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund N/A 499,675 173,000 324,000 136,900 147,300 158,600 171,500 938,300 0 N/A Total N/A 499,675 173,000 324,000 136,900 147,300 158,600 171,500 938,300 0 N/A Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 499,675 173,000 324,000 136,900 147,300 158,600 171,500 938,300 0 N/A Total N/A 499,675 173,000 324,000 136,900 147,300 158,600 171,500 938,300 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.2 Potential Board/Commission Review: Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. CAPITAL IMPROVEMENT FUND 188 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Open Space Lakes And Pond Maintenance Open Space Lakes And Pond Maintenance Description This project rehabilitates lakes and ponds in open space nature preserves to protect wildlife habitat and recreational safety as well as to meet State Division of Safety of Dams require- ments. The project funds annual harvesting of non-native pond weeds and cattails at Boronda Lake in Foothills Park. The project also funds maintenance of the Duck Pond aerator for improved water quality. Justification Pond weeds and cattails must be regularly removed from Boronda Lake to prevent non-native plants from displacing native plants that are essential to the survival of fish and foraging ani- mals. This also will provide access for recreational fishing and boating safety. The State Division of Safety of Dams mandates cattail removal to maintain the Boronda Dam. The Baylands Duck Pond aeration system maintains water quality for wildlife. Significant Changes 2016-2020 CIP: This project was converted to annual recurring status, rather than past practice of receiving additional funding every other year. The change addressed the changing needs of Boronda Lake. The aquatic weeds that are harvested need to be cleared more thoroughly every year. Fund: Capital Improvement Fund Category: Parks and Open Space Project Location: Foothills Park Boronda Lake (3300 Page Mill Road between Central and Moody) Managing Department: Community Services IBRC Reference: Keep-up Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: OS-00002 Boronda Lake, January 2015 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 189 Operating Impact This project is not anticipated to impact operating expenses and if any maintenance costs increase, costs will be absorbed with the available maintenance funding in the annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund N/A 143,000 71,350 113,350 59,900 64,200 68,700 74,000 380,150 0 N/A Total N/A 143,000 71,350 113,350 59,900 64,200 68,700 74,000 380,150 0 N/A Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction Total N/A N/A 143,000 143,000 71,350 71,350 113,350 113,350 59,900 59,900 64,200 64,200 68,700 68,700 74,000 74,000 380,150 380,150 0 0 N/A N/A Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Open Space Goal: N-1 Policy: N-1.5 Program: N1.5.1 Potential Board/Commission Review: Parks and Recreation Commission Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. CAPITAL IMPROVEMENT FUND 190 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Open Space Trails and Amenities Open Space Trails and Amenities Description This project provides funding to restore unpaved trails, fences, picnic areas, and campgrounds at Foothills Park, the Baylands, and the Pearson-Arastradero Nature Preserves. The project also provides habitat protection by guiding park users towards areas dedicated for hiking, biking, and assembling. Benches, tables, footbridges, and fences that are at the end of their useful life will systematically be replaced. Justification Open Space trails require ongoing repair of natural erosion, storm damage, and control of aggressive plants, such as thistle and poison oak to ensure that facilities are safe, accessible, and maintained for recreational uses. These restoration projects are consistent with the Aras- tradero Preserve Trails Management Plan and the Foothills Park Trails Maintenance Plan. Supplemental Information Improvements to the trails within Pearson-Arastradero Preserve move trails away from environ- mentally sensitive areas and to correct the steeply sloped trails, thereby reducing erosion and providing better access to park users with disabilities. These restoration projects are consistent with the Arastradero Preserve Trails Management Plan and the Foothills Park Trails Maintenance Plan. Significant Changes 2017-2021 CIP: Additional $55,000 in funding added in Fiscal Year 2017 for one-time repairs of the Los Trancos Trail. Fund: Capital Improvement Fund Category: Parks and Open Space Project Location: Various Managing Department: Community Services IBRC Reference: Keep-up Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: OS-00001 Baylands Bench, January 2015 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 191 Operating Impact This project is not anticipated to impact operating expenses and if any maintenance costs increase, costs will be absorbed with the available maintenance funding in the annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund N/A 355,175 355,175 192,300 220,400 233,300 247,200 263,200 1,156,400 0 N/A Total N/A 355,175 355,175 192,300 220,400 233,300 247,200 263,200 1,156,400 0 N/A Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 355,175 355,175 192,300 220,400 233,300 247,200 263,200 1,156,400 0 N/A Total N/A 355,175 355,175 192,300 220,400 233,300 247,200 263,200 1,156,400 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Open Space Goal: N-1 Policy: N-1.5 Program: N1.5.1 Potential Board/Commission Review: Parks and Recreation Commission Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. CAPITAL IMPROVEMENT FUND 192 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Park and Open Space Emergency Repairs Park and Open Space Emergency Repairs Description This project provides funding for the replacement or extensive repair of playgrounds, play yard surfaces, wooden structures, park amenities, and play equipment in the event of storms, fire, vandalism, or structural failure. Justification This project allows for the replacement or repair of damaged equipment or play structures for the convenience of the public. Significant Changes 2019-2023 CIP: Funding is gradually increasing from $75,000 to $0.2 million annually over the 5 year CIP. The project is used to address unpredicted issues like trails closed due to strong storm damage, failing infrastructure that can be repaired (the Baylands Sailing Station), and prema- ture failure of playground equipment and surfacing. Fund: Capital Improvement Fund Category: Parks and Open Space Project Location: Various Managing Department: Community Services IBRC Reference: Keep-up Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: PG-09002 Briones Park, January 2015 Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund N/A 142,000 40,000 211,721 201,500 266,100 306,900 325,000 1,311,221 0 N/A Total N/A 142,000 40,000 211,721 201,500 266,100 306,900 325,000 1,311,221 0 N/A CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 193 Operating Impact This project is not anticipated to impact operating expenses and if any maintenance costs increase, costs will be absorbed with the available maintenance funding in the annual operating budget. Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 142,000 40,000 211,721 201,500 266,100 306,900 325,000 1,311,221 0 N/A Total N/A 142,000 40,000 211,721 201,500 266,100 306,900 325,000 1,311,221 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.2 Program: C3.2.1 Relationship to Comprehensive Plan Secondary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.3 Program: C3.3.1 Potential Board/Commission Review: Parks and Recreation Commission Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. CAPITAL IMPROVEMENT FUND 194 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Park Restroom Installation Park Restroom Installation Description This project provides funding for installation of 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. Justification Many parks in the City have no restroom facilities within the park boundaries. This project will provide for one park restroom installation every other year in parks that are approximately two acres or larger, have amenities that encourage visitors to stay in the park, have high level of use, and where there are no nearby public restrooms available. The Parks, Trails, Natural Open Space, and Recreation Master Plan provides guidance on potential restroom locations. Supplemental Information Public outreach will occur as specific parks are considered for restroom installation. Significant Changes 2021-2022 CIP: Fiscal Year 2021 funding moved to Fiscal Year 2022 to align with other park projects. 2020-2024 CIP: Fiscal Year 2019 funding moved to Fiscal Year 2020 as next restroom installa- tion is being coordinated with other park renovation projects. Fund: Capital Improvement Fund Category: Parks and Open Space Project Location: Various Managing Department: Community Services IBRC Reference: New Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: PG-19000 Park Restroom, February 2017 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 195 Operating Impact Cleaning costs of $8,400 per year, per restroom are currently budgeted in the Community Ser- vices Department, however the addition of more park restrooms may cause this amount to increase. Additional funding needs will be brought forward as part of future budget cycles. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund N/A 64,000 (350,000)0 90,900 0 144,400 0 235,300 0 N/A Transfer from Parks Development Impact Fee Fund N/A 350,000 350,000 0 350,000 0 350,000 0 700,000 0 N/A Total N/A 414,000 0 0 440,900 0 494,400 0 935,300 0 N/A Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 384,000 0 0 410,900 0 464,400 0 875,300 0 N/A Design N/A 30,000 0 0 30,000 0 30,000 0 60,000 0 N/A Total N/A 414,000 0 0 440,900 0 494,400 0 935,300 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.3 Program: C3.3.1 Relationship to Comprehensive Plan Secondary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.2 Program: C3.2.1 Potential Board/Commission Review: Architectural Review Board Parks and Recreation Commission Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have possible exemption from CEQA under Section 15303 CAPITAL IMPROVEMENT FUND 196 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Pearson Arastradero Improvement Project Pearson Arastradero Improvement Project Description This project provides funds for replacing fencing, signs, gates, bridge decking, and making improvements to some of the seasonal trails to help reduce winter trail closures. Justification The fencing, signs, gates, and bridge decking have exceeded their useful lifespans, and need to be replaced. There are a number of seasonal trails that must be closed during the rainy season. The Parks, Trails, Natural Open Space and Recreational Master Plan projects were reviewed and adjusted according to staff availability as well as community needs and Infrastructure Blue Rib- bon Committee recommedations. Significant Changes 2020-2024 CIP: Project construction shifted from Fiscal Year 2021 to Fiscal Year 2023 due to a reprioritization of parks projects. 2018-2022 CIP: Design was advanced from Fiscal Year 2021 to Fiscal Year 2020. 2017-2021 CIP: Project established. Fund: Capital Improvement Fund Category: Parks and Open Space Project Location: 1530 Arastradero Road Managing Department: Public Works IBRC Reference: Keep-up Initial Project Start: Summer 2020 Initial Project Completion: Fall 2021 Revised Project Start: Fall 2019 Revised Project Completion: Fall 2023 Project Number: PE-21001 Pearson Arastradero Preserve CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 197 Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund 0 0 0 0 0 70,800 306,700 0 377,500 0 377,500 Total 0 0 0 0 0 70,800 306,700 0 377,500 0 377,500 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 0 0 0 306,700 0 306,700 0 306,700 Design 0 0 0 0 0 70,800 0 0 70,800 0 70,800 Total 0 0 0 0 0 70,800 306,700 0 377,500 0 377,500 Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.2 Program: C3.2.1 Potential Board/Commission Review: Architectural Review Board Parks and Recreation Commission Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301 CAPITAL IMPROVEMENT FUND 198 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Pearson Arastradero Preserve Parking Lot Improvement Pearson Arastradero Preserve Parking Lot Improvement Description This project provides funding to improve the Pearson Arastradero Preserve parking lot by improving the base rock surfacing, adding drainage and fencing, and widening the entrance for safety. The improvement will allow the overflow parking area to be open year round, rather than only during the dry periods of the year. Justification The existing parking lot and overflow lot are in poor condition. The main parking lot holds approximately 32 cars when carefully parked. The adjacent overflow lot holds approximately 15 cars, and cannot be used during the rainy season. The parking lot fills typically on weekends by 9:00 am. On weekdays the lot fills with users by late afternoon to sunset. Significant Changes 2019-2023 CIP: Completion date revised to FY 2021. Fund: Capital Improvement Fund Category: Parks and Open Space Project Location: 1530 Arastradero Road Managing Department: Community Services IBRC Reference: Keep-up Initial Project Start: Fall 2017 Initial Project Completion: Spring 2018 Revised Project Start: Fall 2020 Revised Project Completion: Winter 2020 Project Number: OS-18001 Pearson Arastradero Parking Lot - Overflow Area, February 2017 Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund 0 0 0 170,300 0 0 0 0 170,300 0 170,300 Total 0 0 0 170,300 0 0 0 0 170,300 0 170,300 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 199 Operating Impact This project is not anticipated to impact operating expenses and if any maintenance costs increase, costs will be absorbed with the available maintenance funding in the annual operating budget. Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 155,772 0 0 0 0 155,772 0 155,772 Design 0 0 0 14,528 0 0 0 0 14,528 0 14,528 Total 0 0 0 170,300 0 0 0 0 170,300 0 170,300 Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.2 Program: C3.2.1 Potential Board/Commission Review: Parks and Recreation Commission Planning and Transportation Commission Environmental Impact Analysis: This project may be exempt from CEQA under Section 15302. CAPITAL IMPROVEMENT FUND 200 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Peers Park Improvements Peers Park Improvements Description This project provides funding for upgrades and renovations of the irrigation system and turf at Peers Park. The project will also replace the park benches and drinking fountains, resurface the basketball and tennis court playing surfaces, and repair court fencing. Justification The existing irrigation system, benches, and drinking fountains have exceeded their useful lives. Significant Changes 2021-2025 CIP: Project shifted from Fiscal Year 2023 to Fiscal Year 2024 due to reprioritization of parks projects. 2019-2023 CIP: Project shifted from Fiscal Year 2021 to Fiscal Year 2023 due to reprioritization of parks projects. 2018-2022 CIP: Project shifted from Fiscal Year 2020 to Fiscal Year 2021 due to reprioritization of parks projects. 2017-2021 CIP: Project shifted from Fiscal Year 2018 to Fiscal Year 2020 pending completion of the Parks Master Plan and a reprioritization of parks projects. Fund: Capital Improvement Fund Category: Parks and Open Space Project Location: 1899 Park Boulevard Managing Department: Community Services IBRC Reference: Catch-up Initial Project Start: Summer 2017 Initial Project Completion: Summer 2018 Revised Project Start: Summer 2023 Revised Project Completion: Summer 2024 Project Number: PG-14001 Peers Park, January 2015 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 201 Operating Impact This project is not anticipated to impact operating expenses and if any maintenance costs increase, costs will be absorbed with the available maintenance funding in the annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund 0 0 0 0 0 0 289,600 0 289,600 0 289,600 Total 0 0 0 0 0 0 289,600 0 289,600 0 289,600 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 0 0 0 289,600 0 289,600 0 289,600 Total 0 0 0 0 0 0 289,600 0 289,600 0 289,600 Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.3 Program: C3.3.1 Relationship to Comprehensive Plan Secondary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.2 Program: C3.2.1 Potential Board/Commission Review: Parks and Recreation Commission Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. CAPITAL IMPROVEMENT FUND 202 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Rinconada Park Improvements Rinconada Park Improvements Description Upon completion of the Rinconada Park Long Range Plan (LRP) adopted in 2017, funding was secured to begin these park improvements. Phase 1 improvements at Rinconada Park will be implemented in the western half of the park in fall 2020 and include funding for upgrades to safety, site amenities, playground facilities, irrigation, drainage, restrooms, and accessibility improvements. Phase 2 improvements will include renovation of the eastern half of the park by 2024 including pathway improvements, a new restroom facility, renovated and expanded group picnic areas, native and habitat planting, irrigation improvements, ADA upgrades, directional signage, site furnishing, lighting and green infrastructure elements. According to the LRP, future improvement phases would include renovation to the arbor area, development around the electrical substation, and renovation to the pool area. Justification Rinconada Park has not been renovated for several decades with the pathways in poor condi- tion and aging playgrounds and site amenities. The Rinconada Park Long Range Plan outlined new restroom and improvements related to deferred maintenance items at the park, such as installing new, wider pathways rather than repairing the existing pathways. Supplemental Information The City will conduct a community based design process to determine the final scope of work for Rinconada Park Phase 2 improvements. Phase 1 improvements will be implemented in fall 2020. Fund: Capital Improvement Fund Category: Parks and Open Space Project Location: 777 Embarcadero Road Managing Department: Public Works IBRC Reference: New Initial Project Start: Summer 2015 Initial Project Completion: Spring 2019 Revised Project Start: Summer 2019 Revised Project Completion: Spring 2025 Project Number: PE-08001 Rinconada Park February 2015 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 203 Significant Changes 2021-2025 CIP: Funding included in Fiscal Year 2021 to add a new restroom facility. Rinconada Park Phase 2 design scheduled for Fiscal Year 2023 and construction in Fiscal Year 2025. 2020-2024 CIP: Funding moved from Fiscal Year 2019 to Fiscal Year 2020 to align with work being done in the JMZ Renovation project (AC-18001). 2019-2023 CIP: The project increased by $1.3 million to reconstruct the parking lot, update park signage, and renovate the playground and reconstruct the paths on the west end of the park. Funding from the Community Center Impact Fee Fund will be used for these items. 2018-2022 CIP: The project was delayed to coordinate with environmental assessments for the Junior Museum and Zoo (JMZ), Rinconada Park Long Range Plan and the Parks, Trails, Natural Open Space and Recreation Master Plan Parks (Master Plan), to be complete by Fiscal Year 2018. Park construction will be coordinated to follow the proposed JMZ rebuilding. $706,000 of the construction phase funding will be utilized for costs associated with relocation of the existing JMZ operation to Cubberley and permit & inspection fees needed for the JMZ rebuild- ing. 2017-2021 CIP: Timeline extended to reflect direction from Finance Committee and City Coun- cil during budget approval process. 2016-2020 CIP: Project was delayed to await the completion of the Rinconada Park Long Range Plan and environmental review. Funding for construction was advanced from Fiscal Year 2018 to 2017 and combined with funding from Fiscal Year 2015 to implement a single phase project. The total budget has been reduced by $600,000 from the budget shown in the Fiscal Years 2015-2019 CIP to focus on deferred maintenance items. Funding to enhance the park will be considered as part of the funding needs for the entire City park system once the Rinconada Park Long Range Plan and the Parks Master Plan are completed. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund 2,280,050 310,100 (596,596)1,057,296 0 538,300 0 3,073,800 4,669,396 0 6,352,850 Transfer from Community Center Impact Fee Fund 0 1,999,529 1,999,529 400,000 0 0 0 0 400,000 0 2,399,529 Total 2,280,050 2,309,629 1,402,933 1,457,296 0 538,300 0 3,073,800 5,069,396 0 8,752,379 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 1,862,074 2,309,629 1,402,933 1,417,296 0 163,300 0 3,073,800 4,654,396 0 7,919,403 Design 417,972 0 0 40,000 0 375,000 0 0 415,000 0 832,972 Total 2,280,046 2,309,629 1,402,933 1,457,296 0 538,300 0 3,073,800 5,069,396 0 8,752,375 CAPITAL IMPROVEMENT FUND 204 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.3 Potential Board/Commission Review: Parks and Recreation Commission Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. CAPITAL IMPROVEMENT FUND 206 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Robles Park Improvements Robles Park Improvements Description This project provides funding for the replacement of play equipment and resurfacing in two children’s playground areas, repairs to a basketball court and adjacent concrete wall, and replacement of perimeter fencing, pathways, and other site amenities. Irrigation renovations and turf restoration are also included in this project. Justification The playground areas, backstop, basketball court, concrete pathways, and site amenities have surpassed their intended useful lives and are in need of replacement or repairs. Damaged and/ or dead vegetation necessitates irrigation renovation as well as turf restoration. Supplemental Information The Parks, Trails, Natural Open Space and Recreational Master Plan projects were reviewed and adjusted according to staff availability as well as community and IBRC needs. Significant Changes 2021-2025 CIP: Design and construction for this project shifted to Fiscal Year 2024 due to repri- oritization of parks projects. 2020-2024 CIP: Design and construction for this project was shifted to Fiscal Year 2022. 2018-2022 CIP: Design was shifted from Fiscal Year 2020 to Fiscal Year 2021. Construction was shifted from Fiscal Year 2020 to Fiscal Year 2022. 2017-2021 CIP: Project shifted from Fiscal Year 2018 to Fiscal Year 2021 pending completion of the Parks Master Plan and a reprioritization of parks projects. Fund: Capital Improvement Fund Category: Parks and Open Space Project Location: 4116 Park Boulevard Managing Department: Public Works IBRC Reference: Keep-up Initial Project Start: Fall 2018 Initial Project Completion: Summer 2019 Revised Project Start: Summer 2023 Revised Project Completion: Summer 2024 Project Number: PE-18015 Robles Park, February 2015 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 207 2016-2020 CIP: Project schedule moved forward by one year based on review of staff workload and resources. Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund 0 0 0 0 0 0 953,500 0 953,500 0 953,500 Total 0 0 0 0 0 0 953,500 0 953,500 0 953,500 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 0 0 0 873,500 0 873,500 0 873,500 Design 0 0 0 0 0 0 80,000 0 80,000 0 80,000 Total 0 0 0 0 0 0 953,500 0 953,500 0 953,500 Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.3 Potential Board/Commission Review: Parks and Recreation Commission Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. CAPITAL IMPROVEMENT FUND 208 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Seale Park Improvements Seale Park Improvements Description This project provides funding for upgrades and renovations for safety and accessibility improve- ments at Seale Park. The project will replace existing park amenities, picnic tables, and play- ground structures including a playhouse and swings, refinish the playground perimeter fencing, and repair damaged decomposed granite and concrete pathways. Turf restoration and irrigation renovations will also be included as well as replacement of bollards at the park entrances, the park sign, and a small stone wall located in the middle of the park. Justification As park infrastructure ages, safety and compliance issues need to be addressed. This project will ensure compliance and address accessibility needs as well as safety issues. Drainage issues will be resolved with repairs to the damaged pathways. Irrigation renovations and turf resto- ration is required where existing areas are damaged or dead. Significant Changes 2021-2025 CIP: Project shifted from Fiscal Year 2021 to Fiscal Years 2022 and 2023 due to a reprioritization of parks projects. 2018-2022 CIP: Project shifted from Fiscal Year 2020 to Fiscal Year 2021 due to a reprioritiza- tion of parks projects. 2017-2021 CIP: Project shifted from Fiscal Year 2018 to Fiscal Year 2020 pending completion of the Parks Master Plan and a reprioritization of parks projects. Fund: Capital Improvement Fund Category: Parks and Open Space Project Location: 3100 Stockton Place Managing Department: Community Services IBRC Reference: Keep-up Initial Project Start: Summer 2018 Initial Project Completion: Winter 2018 Revised Project Start: Summer 2021 Revised Project Completion: Summer 2023 Project Number: PG-14003 Seale Park, February 2015 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 209 2016-2020 CIP: Based on the IBRC keep-up schedule for the park, replacement of the play- ground structure has been added to the project's scope with an additional budget allocation of $209,000. Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund 0 0 0 0 67,800 360,000 0 0 427,800 0 427,800 Total 0 0 0 0 67,800 360,000 0 0 427,800 0 427,800 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 0 42,800 360,000 0 0 402,800 0 402,800 Design 0 0 0 0 25,000 0 0 0 25,000 0 25,000 Total 0 0 0 0 67,800 360,000 0 0 427,800 0 427,800 Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.3 Program: C3.3.1 Relationship to Comprehensive Plan Secondary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.2 Program: C3.2.1 Potential Board/Commission Review: Parks and Recreation Commission Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. CAPITAL IMPROVEMENT FUND 210 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Turf Management Plan Turf Management Plan Description This project provides funding to evaluate select natural turf athletic fields maintained and bro- kered by the City for organized sports activities, and provides recommendations for improving the quality and durability of the fields. Justification The Parks, Trails, Open Space, and Recreation Master Plan emphasizes a high community prior- ity to maintain quality turf fields to accommodate high demand and high use of the fields. With such volume of usage, the ability to maintain natural turf fields becomes difficult. The Turf Man- agement Plan will make recommendations to upgrade the fields making them more durable for heavy use and recommend maintenance practices to ensure extensive use. Significant Changes 2021-2025 CIP: Project funding moved to FY 2021 due to reprioritization of parks projects. 2020-2024 CIP: Project funding moved to FY 2020 as project will be solicited for proposals in Summer 2019. 2019-2023 CIP: Completion date revised to FY 2020. Fund: Capital Improvement Fund Category: Parks and Open Space Project Location: Various Managing Department: Community Services IBRC Reference: New Initial Project Start: Fall 2017 Initial Project Completion: Spring 2018 Revised Project Start: Fall 2018 Revised Project Completion: Spring 2021 Project Number: PG-18002 Cubberley Fields, March 2017 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 211 Operating Impact This project evaluates select athletic fields to provide recommendation plans and does not have an operating budget impact. Upon implementation of recommended plans, there will be operat- ing budget impact that will be brought forward as part of future budget cycles. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund (100,000)118,000 0 109,900 0 0 0 0 109,900 0 9,900 Transfer from Parks Development Impact Fee Fund 100,000 0 0 0 0 0 0 0 0 0 100,000 Total 0 118,000 0 109,900 0 0 0 0 109,900 0 109,900 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Design 0 118,000 0 109,900 0 0 0 0 109,900 0 109,900 Total 0 118,000 0 109,900 0 0 0 0 109,900 0 109,900 Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.3 Program: C3.3.1 Relationship to Comprehensive Plan Secondary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.2 Program: C3.2.1 Potential Board/Commission Review: Parks and Recreation Commission Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have possible exemption from CEQA under Section 15301 CAPITAL IMPROVEMENT FUND 212 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Werry Park Playground Improvements Werry Park Playground Improvements Description This project provides funding for the replacement and ADA upgrades of the existing play- ground. The benches, tables, trash receptacles, bicycle rack, and drinking fountain have reached the end of their useful life and need replacement as well. Perimeter landscaping will be replaced as part of this project. Justification Built in 2002, the existing playground equipment has reached its use expectancy with limited accessibility. As park infrastructure ages, safety and compliance issues need to be addressed. This project will ensure compliance and address accessibility needs as well as safety issues. Fund: Capital Improvement Fund Category: Parks and Open Space Project Location: 2100 Dartmouth Street between College and Stanford Avenues Managing Department: Community Services IBRC Reference: Keep-up Initial Project Start: Fall 2021 Initial Project Completion: Spring 2022 Revised Project Start: Revised Project Completion: Project Number: PG-22000 Werry Playground, March 2017 Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund 0 0 0 0 126,000 0 0 0 126,000 0 126,000 Total 0 0 0 0 126,000 0 0 0 126,000 0 126,000 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 0 116,000 0 0 0 116,000 0 116,000 Design 0 0 0 0 10,000 0 0 0 10,000 0 10,000 Total 0 0 0 0 126,000 0 0 0 126,000 0 126,000 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 213 Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.3 Program: C3.3.1 Relationship to Comprehensive Plan Secondary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.2 Program: C3.2.1 Potential Board/Commission Review: Parks and Recreation Commission Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have possible exemption from CEQA under Section 15301 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 215 Streets and Sidewalks CAPITAL IMPROVEMENT FUND 216 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET City Bridge Improvements City Bridge Improvements Description A Structural Bridge Assessment Study was completed in 2017, as part of the study, fifty City- owned bridges were inspected by a structural consulting firm. A recurring inspection and repair program defined a bridge maintenance, repair, and 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 struc- tural standards in accordance with industry standards. Recurring inspections may vary from 2 to 5 years depending on the age and structural conditions. Justification There are 110 bridges maintained by the City of Palo Alto and by local agencies, of these, 80 are City-owned. There are 50 City-owned culvert and bridge structures that are inspected by the City and 30 City-owned structures inspected by Caltrans. The remaining 30 of 110 bridges are private (3) or owned by local agencies. Estimates were developed at a conceptual level and will be adjusted in the design phase. Fund: Capital Improvement Fund Category: Streets and Sidewalks Project Location: Various Managing Department: Public Works IBRC Reference: Keep-up Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: PE-20001 Laguna Avenue Bridge Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund N/A 16,000 0 94,400 137,900 348,600 185,200 198,600 964,700 0 N/A Total N/A 16,000 0 94,400 137,900 348,600 185,200 198,600 964,700 0 N/A CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 217 Operating Impact This project may impact operating expenses in the future as the bridges are assessed and main- tenance costs are determined. As these costs are quantified, adjustments will be brought for- ward in future budgets as necessary. Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 1,000 0 54,400 37,900 348,600 135,200 148,600 724,700 0 N/A Design N/A 15,000 0 40,000 100,000 0 50,000 50,000 240,000 0 N/A Total N/A 16,000 0 94,400 137,900 348,600 185,200 198,600 964,700 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Land Use and Community Design Section: Public Streets and Public Spaces Goal: L-9 Policy: L-9.10 Relationship to Comprehensive Plan Secondary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.2 Potential Board/Commission Review: Architectural Review Board Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. CAPITAL IMPROVEMENT FUND 218 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Curb and Gutter Repairs Curb and Gutter Repairs Description This project provides funding to repair curbs and gutters that have been uplifted by tree roots and allows for the installation of valley gutters in the Barron Park neighborhood to address ponding and poor drainage. Justification Ponding related to curb and gutter problems is a health hazard. Standing water can be a breed- ing ground for mosquitoes and encourage algae growth, becoming a hazard for bicyclists and pedestrians. The annual street maintenance project does not address these problems on small isolated sections of curb and gutter found on streets with good road surfaces. Significant Changes 2020-2024 CIP: Additional funding in the amount of $150,000 for Fiscal Year 2020 to continue installing valley gutters as needed in the Barron Park neighborhood in coordination with Street Resurfacing Program work occurring in Barron Park. 2018-2022 CIP: Additional funding in the amount of $250,000 for Fiscal Year 2018 to install val- ley gutters as needed in the Barron Park neighborhood in coordination with Street Resurfacing Program work occurring in Barron Park. Fund: Capital Improvement Fund Category: Streets and Sidewalks Project Location: Various Managing Department: Public Works IBRC Reference: Keep-up Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: PO-12001 Byron Street (1200 Block), January 2013 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 219 Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund N/A 865,150 744,397 123,853 126,700 134,200 142,400 151,800 678,953 0 N/A Total N/A 865,150 744,397 123,853 126,700 134,200 142,400 151,800 678,953 0 N/A Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 863,485 744,397 120,180 120,796 127,614 142,400 151,800 662,790 0 N/A Design N/A 1,665 0 3,673 5,904 6,586 0 0 16,163 0 N/A Total N/A 865,150 744,397 123,853 126,700 134,200 142,400 151,800 678,953 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Land Use and Community Design Section: Public Streets and Public Spaces Goal: L-9 Policy: L-9.10 Potential Board/Commission Review: Architectural Review Board Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. CAPITAL IMPROVEMENT FUND 220 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET El Camino Median Landscape Improvements El Camino Median Landscape Improvements Description This project provides funding for median improvements on El Camino Real. The improvements 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 March 2007 El Camino Real Master Planning Study and will also consider any relevant guidance from the Grand Boulevard Initiative. Justification Medians, planters, and islands along El Camino Real have fallen into disrepair. Landscape plants and materials have exceeded their useful lives. These structures are primarily designed to regu- late traffic and provide attractive landscapes and welcoming gateways to the City. Supplemental Information The provision of adequate landscaping and irrigation reduces siltation and runoff and removes carbon dioxide from the environment. The Fiscal Year 2025 improvements will address medians from City limits to University Avenue and from Page Mill Road to Arastradero Road. Significant Changes 2021-2025 CIP: Project design is pending coordination with Grand Boulevard plan implementa- tion. A majority of project funding has been pushed out from Fiscal Year 2022 to Fiscal Year 2025 as a result of capital project reprioritization. Fund: Capital Improvement Fund Category: Streets and Sidewalks Project Location: Various Managing Department: Public Works IBRC Reference: Catch-up Initial Project Start: Summer 2015 Initial Project Completion: Spring 2017 Revised Project Start: Summer 2024 Revised Project Completion: Summer 2025 Project Number: PE-13017 El Camino Median Landscape Improvements March 2015 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 221 2018-2022 CIP: The Cambridge to Grant median scope of work previously included in this proj- ect is now included in the El Camino Real Pedestrian Safety and Streetscape Project, PL-18002. 2017-2021 CIP: The Cambridge to Grant median work has been moved to Fiscal Year 2017. The City limits to University Avenue and Page Mill Road to Arastradero Road work has been moved to Fiscal Year 2021. Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund 12,329 83,000 0 108,300 0 0 0 901,500 1,009,800 0 1,022,129 Total 12,329 83,000 0 108,300 0 0 0 901,500 1,009,800 0 1,022,129 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 5,846 0 108,300 0 0 0 901,500 1,009,800 0 1,009,800 Design 12,328 77,154 0 0 0 0 0 0 0 0 12,328 Total 12,328 83,000 0 108,300 0 0 0 901,500 1,009,800 0 1,022,128 Relationship to Comprehensive Plan Primary Connection Element: Land Use and Community Design Section: Employment Districts Goal: L-5 Policy: L-5.3 Potential Board/Commission Review: Architectural Review Board Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. CAPITAL IMPROVEMENT FUND 222 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Newell Road/San Francisquito Creek Bridge Replacement Newell Road/San Francisquito Creek Bridge Replacement Description This project will provide funding to remove and replace the Newell Road bridge over San Fran- cisquito Creek. Design considerations include a clear span over the creek to allow the channel to convey a flow consistent with the San Francisquito Joint Powers Authority's (JPA) initial flood protection project as well as bicycle and pedestrian traffic. Justification The existing bridge, constructed in 1911, acts as a flow restriction of San Francisquito Creek as its abutments encroach into the channel cross-section. Removal of the existing bridge is a neces- sary element of the San Francisquito Creek Joint Powers Authority (JPA) comprehensive flood management program. Additionally, the existing bridge does not have accommodations for either pedestrians or bicyclists. Supplemental Information Staff has secured grant funding from Caltrans Highway Bridge Program (HBP) for the design and environmental assessment/permitting of the project. HBP funds will likely be approved to pay for 88.53% of project construction costs. As the bridge links to East Palo Alto and is part of the JPAs comprehensive flood management plan, staff of all three agencies will coordinate closely on the design and public outreach elements of this project. Due to community concern for traffic and the visual impacts of a replacement bridge, the scope of the project has expanded to include a CEQA Environmental Impact Report/NEPA Environ- Fund: Capital Improvement Fund Category: Streets and Sidewalks Project Location: Newell Rd at San Francisquito Creek Managing Department: Public Works IBRC Reference: New Initial Project Start: Spring 2012 Initial Project Completion: Spring 2015 Revised Project Start: Revised Project Completion: Winter 2022 Project Number: PE-12011 Newell Road Bridge, February 2015 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 223 mental Assessment (EIR/EA) process that will evaluate multiple project alternatives, addressing flood control, traffic, aesthetics, and other potential impacts of the project. The cost estimate on this project will likely need to be reevaluated and adjusted since last done in 2015. The cost will likely increase due to escalation, project delays, and the need for more coordination with other agencies than initially anticipated. Significant Changes 2021-2025 CIP: The design and construction cost increases include additional scope of work for street conforms, wall along adjacent properties, utility replacement and relocation, tree removal, landscape and in-creek restoration. 2020-2024 CIP: The project completion date has been revised to Winter 2022. This delay is a result of changes to Caltrans environmental assessment format and comments provided by oth- ers regarding the Draft Environmental Impact Report. 2017-2021 CIP: The project completion date has been extended to Fall 2018 to account for the expanded environmental analysis and project permitting requirements. 2016-2020 CIP: Construction funding moved to Fiscal Year 2017 to reflect delays in securing State funding for environmental work. Timeline extended to reflect project duration through construction phase. 2015-2020 CIP: Construction funding moved to Fiscal Year 2016 to reflect the time needed to complete the additional CEQA work. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund 954,900 887,951 500,000 942,111 579,300 0 0 0 1,521,411 0 2,976,311 Revenue from Other Agencies 59,167 100,200 0 0 0 0 0 0 0 0 59,167 Revenue from the Federal Government 8,630 0 0 0 0 0 0 0 0 0 8,630 Revenue from the State of California 344,599 2,349,400 1,949,600 5,075,000 5,775,000 0 0 0 10,850,000 0 13,144,199 Total 1,367,296 3,337,551 2,449,600 6,017,111 6,354,300 0 0 0 12,371,411 0 16,188,307 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 548,422 2,838,469 2,449,600 5,442,111 6,354,300 0 0 0 11,796,411 0 14,794,433 Design 818,870 499,082 0 575,000 0 0 0 0 575,000 0 1,393,870 Total 1,367,292 3,337,551 2,449,600 6,017,111 6,354,300 0 0 0 12,371,411 0 16,188,303 CAPITAL IMPROVEMENT FUND 224 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Relationship to Comprehensive Plan Primary Connection Element: Safety Section: Natural Hazards Goal: S-2 Policy: S-2.8 Program: S2.8.4 Relationship to Comprehensive Plan Secondary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.2 Potential Board/Commission Review: Architectural Review Board Historic Resources Board Planning and Transportation Commission Environmental Impact Analysis: An Environmental Impact Report and NEPA analysis are being completed for this project. CAPITAL IMPROVEMENT FUND 226 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Sidewalk Repairs Sidewalk Repairs Description This project provides funding for sidewalk repairs as part of an annual district-based rehabilita- tion program, alleviating the backlog of sidewalk repairs and enhancing pedestrian comfort and safety. Additionally, a sidewalk program assessment to evaluate options for improving the City's Sidewalk Repair Program was completed in Spring 2019 and provided suggestions for establish- ing goals and priorities related to repairs and replacements throughout the City. Justification The result of this project is better sidewalk conditions and a potential reduction in sidewalk- related injuries. Supplemental Information There are 23 sidewalk districts throughout the City. The district program began in 1986 with a goal of completing work in all 23 districts within 30 years. Work for all 23 districts was com- pleted in early 2017 and the sidewalk program assessment was completed in 2016. Significant Changes 2018-2022 CIP: Funding for this project has been reduced by $500k per year pending comple- tion of the assessment study. Fund: Capital Improvement Fund Category: Streets and Sidewalks Project Location: Various Managing Department: Public Works IBRC Reference: Keep-up Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: PO-89003 Middlefield Road (1500 Block), January 2013 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 227 Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund N/A 2,546,579 1,534,312 2,195,982 1,395,500 1,400,900 1,406,500 1,410,600 7,809,482 0 N/A Total N/A 2,546,579 1,534,312 2,195,982 1,395,500 1,400,900 1,406,500 1,410,600 7,809,482 0 N/A Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 2,506,191 1,534,312 2,165,986 1,364,382 1,368,724 1,406,500 1,410,600 7,716,192 0 N/A Design N/A 40,388 0 29,995 31,118 32,175 0 0 93,287 0 N/A Total N/A 2,546,579 1,534,312 2,195,981 1,395,500 1,400,899 1,406,500 1,410,600 7,809,479 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.2 Potential Board/Commission Review: Parks and Recreation Commission Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. CAPITAL IMPROVEMENT FUND 228 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Sign Reflectivity Upgrade Sign Reflectivity Upgrade Description This project provides funding for inventorying, upgrading, and maintaining all traffic signs owned by the City of Palo Alto in order to comply with new federal requirements for sign reflec- tivity standards. Justification The FHWA (Federal Highway Administration) passed regulations requiring minimum retrore- flectivity levels for traffic signs. The new retroreflectivity regulations require regular annual sign inspections and replacement of signs not meeting the new minimum retroreflectivity standards. Fund: Capital Improvement Fund Category: Streets and Sidewalks Project Location: Various Managing Department: Public Works IBRC Reference: Keep-up Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: PO-11000 Traffic sign, April 2015 Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund N/A 294,183 60,660 131,400 66,900 71,700 76,800 82,700 429,500 0 N/A Total N/A 294,183 60,660 131,400 66,900 71,700 76,800 82,700 429,500 0 N/A Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 294,183 60,660 131,400 66,900 71,700 76,800 82,700 429,500 0 N/A Total N/A 294,183 60,660 131,400 66,900 71,700 76,800 82,700 429,500 0 N/A CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 229 Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Relationship to Comprehensive Plan Primary Connection Element: Land Use and Community Design Section: Public Streets and Public Spaces Goal: L-9 Policy: L-9.10 Potential Board/Commission Review: Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. CAPITAL IMPROVEMENT FUND 230 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Street Lights Condition Assessment Street Lights Condition Assessment Description This project provides funding to assess the condition of the streetlight system. The assessment will include an inventory of the entire lighting system, including age and condition of conduit, wiring, street light poles, foundations, luminaires, and lighting coverage. Determining the inspection, maintenance, repair, and rehabilitation necessary to prolong the life of the City’s streetlight system is also included in this project. Justification There are over 6,000 streetlights in Palo Alto. In some areas, existing conduit is over 40 years old and in such poor condition that no repairs can be made. Streetlight systems are integral as they afford safe routes for motorists and pedestrians. An assessment is needed to evaluate the age and condition of each element of the streetlight system in order to plan cost-effective maintenance and replacement programs for the future. Supplemental Information The Infrastructure Blue Ribbon Commission recommended that a streetlight system assessment be conducted to determine the condition of and replacement program for the City's streetlight infrastructure. The assessment will also consider appropriate recommendations for streetlights determined to be historic, or in neighborhoods with unique streetlights. Significant Changes 2021-2025 CIP: Due to other high priority projects, this project has been delayed until Summer 2020. Fund: Capital Improvement Fund Category: Streets and Sidewalks Project Location: Various Managing Department: Public Works IBRC Reference: N/A Initial Project Start: Summer 2012 Initial Project Completion: Spring 2013 Revised Project Start: Summer 2020 Revised Project Completion: Spring 2021 Project Number: PE-13014 Streetlight, Guinda Street, November 2014 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 231 2020-2024 CIP: Due to other high priority projects, this project has been delayed until Summer 2019. 2019-2023 CIP: Due to other high priority projects, this project has been delayed until Spring 2018. 2018-2022 CIP: Due to other high priority projects, this project has been delayed until Summer 2017. 2017-2021 CIP: Due to other high priority projects, initiation of this project has been delayed until Spring 2016. Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund 8,798 224,078 0 241,778 0 0 0 0 241,778 0 250,576 Total 8,798 224,078 0 241,778 0 0 0 0 241,778 0 250,576 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Design 8,798 224,078 0 241,778 0 0 0 0 241,778 0 250,576 Total 8,798 224,078 0 241,778 0 0 0 0 241,778 0 250,576 Relationship to Comprehensive Plan Primary Connection Element: Land Use and Community Design Section: Public Streets and Public Spaces Goal: L-9 Policy: L-9.3 Potential Board/Commission Review: Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. CAPITAL IMPROVEMENT FUND 232 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Street Lights Improvements Street Lights Improvements Description This project provides funding to replace street light poles, pole foundations, luminaires, and wir- ing as needed to restore or improve street lighting. Justification There are over 6,000 street lights in Palo Alto. In some areas existing concrete or cast iron street light poles are failing and no longer serviceable. Additionally, poles damaged due to accidents must be replaced immediately. Luminaires are replaced to improve lighting levels and therefore safety. The Electric Fund maintains the poles, luminaires, and circuits and installs new street lights as requested by the Public Works Department. Supplemental Information The Street Lights Condition Assessment project (PE-13014) is expected to be completed in 2021 and will result in recommendations for replacement of street lights. Where desired, efforts to match existing streetlight design will be made. Fund: Capital Improvement Fund Category: Streets and Sidewalks Project Location: Various Managing Department: Public Works IBRC Reference: Keep-up Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: PO-05054 East Bayshore Road street lights, February 2015 Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund N/A 374,352 38,306 456,287 203,800 219,000 235,500 254,400 1,368,987 0 N/A Total N/A 374,352 38,306 456,287 203,800 219,000 235,500 254,400 1,368,987 0 N/A CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 233 Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 374,352 38,306 456,287 203,800 219,000 235,500 254,400 1,368,987 0 N/A Total N/A 374,352 38,306 456,287 203,800 219,000 235,500 254,400 1,368,987 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Land Use and Community Design Section: Public Streets and Public Spaces Goal: L-9 Policy: L-9.3 Potential Board/Commission Review: Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. CAPITAL IMPROVEMENT FUND 234 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Street Maintenance Street Maintenance Description This project provides funding for annual resurfacing, slurry sealing, crack sealing, and recon- struction of various City streets. Justification The Pavement Maintenance Management System (PMMS) and Metropolitan Transportation Agency's StreetSaver software are used to identify streets requiring maintenance (based on the biennial Pavement Condition Index (PCI) survey of all City streets). City Council established a goal of achieving an average citywide PCI of 85, excellent pavement condition, by 2021 with no street below a PCI of 60. The citywide average PCI of 85 was achieved in December 2018. Supplemental Information Staff is supplementing the City's PMMS with Metropolitan Transportation Agency's StreetSaver software, whose modeling capabilities will be used to determine future funding levels to con- tinue to work on streets with a PCI below 60 while still maintaining the citywide PCI average of 85. The list of streets to be included in this project will be prioritized and coordinated with Utilities Department projects and in the 2012 Bicycle and Pedestrian Transportation Plan. This project is partially funded by revenues from gas taxes and vehicle registration fees. Significant Changes 2021-2025 CIP: Additional funding was added for construction to offset inflation of material prices. Fund: Capital Improvement Fund Category: Streets and Sidewalks Project Location: Various Managing Department: Public Works IBRC Reference: Keep-up Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: PE-86070 Curtner Avenue (300 Block), February 2015 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 235 2020-2024 CIP: The $0.9 million from the San Antonio/W. Bayshore Impact Fee Fund will be moved to the Traffic Signal and Intelligent Transportation Systems project (PL-05053) for traffic signal improvements at San Antonio and Charleston in FY 2020. 2019-2023 CIP: FY 2019 costs are offset by One Bay Area Grant (OBAG) Cycle 2 guaranteed funding and San Antonio/W.Bayshore Impact Fee Fund in the amount of $1.0 million and $0.9 million, respectively. The impact fee funding will be used to make improvements on the San Antonio/Charleston intersection and repave the San Antonio overpass. Funding increased by $1.2 million annually from Road Maintenance and Rehabilitation Account (RMRA - S.B.1 funding) from the State of California in FY 2020. 2018-2022 CIP: The last phase of work on Alma Street (Rinconada Avenue to Palo Alto Avenue) is postponed until FY 2018 to incorporate additional transportation improvements that are cur- rently in design. Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund N/A 8,760,342 8,760,342 1,478,010 1,498,510 2,016,210 2,034,510 2,047,710 9,074,950 0 N/A Revenue from Other Agencies N/A 344,980 344,980 965,000 965,000 465,000 465,000 465,000 3,325,000 0 N/A Revenue from the Federal Government N/A 1,009,000 1,009,000 0 0 0 0 0 0 0 N/A Revenue from the State of California N/A 818,220 818,220 0 0 0 0 0 0 0 N/A Transfer from Gas Tax Fund N/A 2,453,997 2,453,997 2,610,690 2,610,690 2,610,690 2,610,690 2,610,690 13,053,450 0 N/A Total N/A 13,386,539 13,386,539 5,053,700 5,074,200 5,091,900 5,110,200 5,123,400 25,453,400 0 N/A Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 13,203,071 13,203,071 4,739,042 4,515,361 4,474,817 5,060,200 5,073,400 23,862,820 0 N/A Design N/A 183,468 183,468 314,658 558,839 617,083 50,000 50,000 1,590,580 0 N/A Total N/A 13,386,539 13,386,539 5,053,700 5,074,200 5,091,900 5,110,200 5,123,400 25,453,400 0 N/A CAPITAL IMPROVEMENT FUND 236 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.2 Potential Board/Commission Review: Architectural Review Board Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. CAPITAL IMPROVEMENT FUND 238 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Thermoplastic Lane Marking and Striping Thermoplastic Lane Marking and Striping Description This project provides funding for thermoplastic pavement markings on paved roadways to pro- vide guidance and information to motorists, bicyclists, and pedestrians. By 2010, most pave- ment markings had been converted from paint to thermoplastic. While thermoplastic is a durable, long lasting pavement marking, most streets will require a second or third application of thermoplastic during the pavement’s useful lifespan. Justification Upgrading all street painting to thermoplastic has improved roadway safety for motorists, pedestrians, and bicyclists as the reflectivity and durability of thermoplastic exceeds that of paint. Fund: Capital Improvement Fund Category: Streets and Sidewalks Project Location: Various Managing Department: Public Works IBRC Reference: Keep-up Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: PO-11001 Park and Oxford lane lines, February 2015 Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund N/A 231,457 98,328 133,400 97,100 103,300 110,100 117,800 561,700 0 N/A Total N/A 231,457 98,328 133,400 97,100 103,300 110,100 117,800 561,700 0 N/A CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 239 Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 231,457 98,328 133,400 97,100 103,300 110,100 117,800 561,700 0 N/A Total N/A 231,457 98,328 133,400 97,100 103,300 110,100 117,800 561,700 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Land Use and Community Design Section: Public Streets and Public Spaces Goal: L-9 Policy: L-9.10 Potential Board/Commission Review: Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 241 Traffic and Transportation CAPITAL IMPROVEMENT FUND 242 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Bicycle and Pedestrian Transportation Plan Implementation Bicycle and Pedestrian Transportation Plan Implementation Description This project provides funding for the design and construction of bicycle boulevards, enhanced bikeways, shared-use paths, bicycle parking, and pedestrian improvements in accordance with the Palo Alto Bicycle and Pedestrian Transportation Plan, which was adopted by City Council in 2012. Justification Projects identified in the Palo Alto Bicycle and Pedestrian Transportation Plan, as well as bicycle parking facilities and bicycle/pedestrian project planning activities, will facilitate safer, traffic calmed biking and walking routes and provide better commute alternatives. Supplemental Information The elements installed as part of Phase 1 of this project include the implementation of improve- ments along Louis, Amarillo, Moreno, E. Meadow, and Ross. Improvements included widened sidewalks, roundabouts, a bicycle boulevard, and other traffic calming devices. Significant Changes 2021-2025 CIP: Funding for this project spread to Fiscal Year 2024 due to funding constraints as well as to allow time for further planning related to implementing a citywide bicycle and pedestrian plan. 2020-2024 CIP: The Neighborhood Traffic Safety and Bicycle Boulevards Project - Phase 1 has been partially implemented. The rest of Phase 1 of the project has been paused for additional Fund: Capital Improvement Fund Category: Traffic and Transportation Project Location: Various Managing Department: Office of Transportation IBRC Reference: New Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: PL-04010 Ramona Street Bike Corral, March 2019 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 243 review and evaluation. Upon direction to move forward, the project will resume with increased community engagement. The schedule for the initiation of Phase 2 will be determined at a later date. Operating Impact This project is anticipated to impact operating expenses in the future. As these costs are quan- tified, adjustments will be brought forward in future budgets, as necessary. There may be increased operating impacts due to ongoing maintenance of protected and separate bikeways. Certain types of bikeways may require special equipment or services to maintain them. The amount of impacts are unknown at this time. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund N/A 1,565,980 402,385 1,073,595 1,800,000 2,950,000 3,100,000 0 8,923,595 0 N/A Transfer from Stanford University Medical Ctr Fund N/A 1,200,000 0 1,200,000 1,200,000 0 0 0 2,400,000 0 N/A Total N/A 2,765,980 402,385 2,273,595 3,000,000 2,950,000 3,100,000 0 11,323,595 0 N/A Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 2,616,365 252,770 2,273,595 3,000,000 2,950,000 3,100,000 0 11,323,595 0 N/A Design N/A 149,615 149,615 0 0 0 0 0 0 0 N/A Total N/A 2,765,980 402,385 2,273,595 3,000,000 2,950,000 3,100,000 0 11,323,595 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Transportation Section: Sustainable Transportation Goal: T-1 Policy: T-1.19 Program: T1.19.2 Relationship to Comprehensive Plan Secondary Connection Element: Transportation Section: Streets Goal: T-3 Policy: T-3-5 Program: T3.5.1 Potential Board/Commission Review: Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. CAPITAL IMPROVEMENT FUND 244 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Charleston/Arastradero Corridor Project Charleston/Arastradero Corridor Project Description This project provides funding for the reconfiguration of the Charleston/Arastradero corridor, including engineering design and construction of new landscaped median islands, bulb outs, enhanced bike lanes, new street trees, and lighting. During the design phase, opportunities for including "green infrastructure" features such as infiltration basins and porous hardscape sur- faces were explored. The conceptual design and California Environmental Quality Act (CEQA) review for the entire corridor was completed in September 2015 and the National Environmental Protection Act (NEPA) was completed in October 2016. Final design for the corridor was com- pleted in Fall 2017. Justification The project will result in enhanced travel safety, increased use of environmentally friendly travel alternatives, reduced motor vehicle congestion, and enhanced aesthetics on the Charleston- Arastradero Corridor. Construction will be addressed in phases due to grant funding deadlines starting with Arastradero Road (Clemo Avenue to Foothill Expressway) and Charleston Road (Middlefield Road to Alma Street). The last phase is Arastradero Road (Clemo Avenue to El Camino Real) and Charleston Road (El Camino Real to Alma Street and Middlefield Road to Fabian Way). Fund: Capital Improvement Fund Category: Traffic and Transportation Project Location: Charleston/Arastradero Corridor Managing Department: Public Works IBRC Reference: New Initial Project Start: Spring 2013 Initial Project Completion: Summer 2016 Revised Project Start: Spring 2014 Revised Project Completion: Spring 2021 Project Number: PE-13011 Charleston-Arastradero, Arastradero at Clemo, January 2013 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 245 Supplemental Information The Charleston/Arastradero Corridor project was adopted by City Council in January 2003, and included in the City Council Infrastructure Plan in 2014. City Council approved the permanent retention of the new lane configurations on Charleston in 2008 and on Arastradero in 2012. Grant proceeds and funding from the State will be used to partially offset the costs of this proj- ect, including: a $0.50 million Caltrans Safe Routes to School (SR2S) grant, awarded in 2012; a $1.0 million Valley Transportation Authority - Vehicle Emissions Reductions Based at Schools (VERBS) grant, awarded in 2013; a $0.10 million CalRecycle grant for rubberized asphalt pave- ment, awarded in 2017; and $1.20 million for Road Maintenance and Rehabilitation (S.B.1 fund- ing) from the State of California. Significant Changes 2021-2025 CIP: Due to a delay obtaining the Caltrans Encroachment permit, Phase 3 will start construction in early 2020. 2020-2024 CIP: Phase 1 and 2 are expected to be complete in Summer 2019. Phase 3 will start construction in August 2019 and is anticipated to be complete in FY 2020. 2019-2023 CIP: Budget increased to reflect total project cost estimate of $19.6 million. This project will be completed in three phases, and the first phase is anticipated to be awarded at the end of Fiscal Year 2018. 2018-2022 CIP: This project is expected to be constructed in phases. The first phase of con- struction is anticipated to begin in November 2017. 2016-2020 CIP: The project completion date has been extended to reflect the full funding of the project's estimated cost. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund 2,711,321 10,835,612 12,075,710 (1,303,710)0 0 0 0 (1,303,710)0 13,483,321 Revenue from the State of California 315,929 1,510,000 206,290 1,303,710 0 0 0 0 1,303,710 0 1,825,929 Transfer frm Charleston/ Arastradero Dev Impct Fund 847,000 0 18,000 0 0 0 0 0 0 0 865,000 Transfer from Gas Tax Fund 1,170,237 0 0 0 0 0 0 0 0 0 1,170,237 Transfer from Stanford University Medical Ctr Fund 1,550,000 0 0 0 0 0 0 0 0 0 1,550,000 Transfer From Stormwater Management Fund 660,000 0 0 0 0 0 0 0 0 0 660,000 Total 7,254,487 12,345,612 12,300,000 0 0 0 0 0 0 0 19,554,487 CAPITAL IMPROVEMENT FUND 246 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Operating Impact Landscaping and irrigation maintenance is estimated to increase by $52,000 in FY 2021 and by 3 percent annually thereafter. Tree trimming maintenance is estimated to be $20,000 per year. Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 4,685,200 12,302,812 12,300,000 0 0 0 0 0 0 0 16,985,200 Design 2,569,273 42,800 0 0 0 0 0 0 0 0 2,569,273 Total 7,254,473 12,345,612 12,300,000 0 0 0 0 0 0 0 19,554,473 Anticipated Operating Budget Needs Fund FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 General Fund-Operating 72,000 74,000 75,000 77,000 79,000 Relationship to Comprehensive Plan Primary Connection Element: Transportation Section: Road Safety Goal: T-6 Policy: T-6.7 Relationship to Comprehensive Plan Secondary Connection Element: Transportation Section: Road Safety Goal: T-6 Policy: T-6.6 Program: T6.6.6 Potential Board/Commission Review: Architectural Review Board Planning and Transportation Commission Environmental Impact Analysis: A Mitigated Negative Declaration was completed in 2004, with an addendum completed in September 2015 for CEQA. CAPITAL IMPROVEMENT FUND 248 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Churchill Avenue Enhanced Bikeway Churchill Avenue Enhanced Bikeway Description This project includes planning, design and construction of a shared-use path along the north side of Churchill Avenue between the existing shared-use path at Castelleja Avenue and the Stanford Perimeter Trail. It also includes intersection improvements at Churchill Avenue and El Camino Real, which will include a new dedicated westbound right-turn lane. Justification As a priority project within the Palo Alto Bicycle + Pedestrian Transportation Plan, this project advances objective three, which develops a core network of shared paths, bikeways, and traffic- calmed streets that connect residential districts, schools, and parks. Significant Changes 2020-2024 CIP: Project delays occurred mainly due to additional time needed for easement acquisitions. The project timeline has been adjusted to reflect those changes as well as allowing for more time for enhanced community engagement and Caltrans review. 2019-2023 CIP: Acquisition of necessary easements has been more time-consuming that was originally estimated. Project completion timeline has also been adjusted in light of project man- agement staff departures and a focus on enhanced community engagement. 2016-2020 CIP: Possible delays to this project could occur as the design goes through the Cal- trans permitting process. Fund: Capital Improvement Fund Category: Traffic and Transportation Project Location: El Camino Real & Churchill Avenue Managing Department: Office of Transportation IBRC Reference: New Initial Project Start: Fall 2013 Initial Project Completion: Fall 2015 Revised Project Start: Revised Project Completion: Fall 2021 Project Number: PL-14000 Bicyclists on Churchill Ave, December 2015 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 249 Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund (760,321)3,132,400 181,534 3,159,466 0 0 0 0 3,159,466 0 2,580,679 Transfer from Traffic Impact Fee Fund 1,000,000 0 0 0 0 0 0 0 0 0 1,000,000 Total 239,679 3,132,400 181,534 3,159,466 0 0 0 0 3,159,466 0 3,580,679 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 233,037 3,132,400 181,534 3,159,466 0 0 0 0 3,159,466 0 3,574,037 Design 6,640 0 0 0 0 0 0 0 0 0 6,640 Total 239,677 3,132,400 181,534 3,159,466 0 0 0 0 3,159,466 0 3,580,677 Relationship to Comprehensive Plan Primary Connection Element: Transportation Section: Road Safety Goal: T-6 Policy: T-6.1 Relationship to Comprehensive Plan Secondary Connection Element: Transportation Section: Sustainable Transportation Goal: T-1 Policy: T-1.19 Potential Board/Commission Review: Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. CAPITAL IMPROVEMENT FUND 250 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Churchill Avenue/Alma Street Railroad Crossing Safety Improvements Churchill Avenue/Alma Street Railroad Crossing Safety Improvements Description This project provides funding for the design and construction of pedestrian and bicycle safety improvements on the west side of the Churchill Avenue and Alma Street railroad crossing inter- section. Design includes, but is not limited to, traffic signal modifications, street lighting improvements, roadway resurfacing, sidewalk realignment and/or widening, drainage improve- ments, utility relocations, signage and striping, innovative bicycle treatments, traffic calming elements, and way-finding improvements. Justification The rail crossing at Alma Street and Churchill Avenue experiences a large amount of bicycle traffic for Palo Alto High School and Stanford during the morning and afternoon commute hours. It is difficult for the existing sidewalk and roadway intersection to accommodate the large number of bicyclists using this intersection. Widening the sidewalk and new bicycle lane improvements will help move the bicyclists and pedestrians safely through the crossing. Supplemental Information In Fiscal Year 2019, this project was included in PL-17001, Railroad Grade Separation. Since the projects need to be tracked against different funding sources, the safety improvements at Chur- chill Avenue/Alma Street have been separated into this project. This crossing was identified through the Federal Section 130 funds, a federally funded program administered by the states, for increasing safety at at-grade highway-rail crossings. All construction and design costs are fully reimbursable by Section 130 funding from Caltrans. Fund: Capital Improvement Fund Category: Traffic and Transportation Project Location: Churchill Avenue and Alma Street Managing Department: Office of Transportation IBRC Reference: N/A Initial Project Start: Fall 2019 Initial Project Completion: Summer 2021 Revised Project Start: Revised Project Completion: Project Number: PL-20000 Churchill Avenue/Alma Street Railroad Crossing Safety Improvements: photo taken September 2018 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 251 Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund 0 13,000 (100,000)636,200 0 0 0 0 636,200 0 536,200 Revenue from Other Agencies 0 500,000 500,000 4,000,000 0 0 0 0 4,000,000 0 4,500,000 Total 0 513,000 400,000 4,636,200 0 0 0 0 4,636,200 0 5,036,200 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 13,000 0 4,536,200 0 0 0 0 4,536,200 0 4,536,200 Design 0 500,000 400,000 100,000 0 0 0 0 100,000 0 500,000 Total 0 513,000 400,000 4,636,200 0 0 0 0 4,636,200 0 5,036,200 Relationship to Comprehensive Plan Primary Connection Element: Transportation Section: Road Safety Goal: T-6 Policy: T-6.1 Program: T6.1.4 Potential Board/Commission Review: Architectural Review Board Planning and Transportation Commission Environmental Impact Analysis: This project requires Environmental Impact Review CAPITAL IMPROVEMENT FUND 252 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Downtown Automated Parking Guidance Systems, Access Controls & Revenue Collection Equip. Downtown Automated Parking Guidance Systems, Access Controls & Revenue Collection Equip. Description This project provides funding to address infrastructure and capital improvements for parking facilities. This includes a facility management system, lane equipment, lane access controls, and pay-on-foot pay stations. This project includes design and installation of new downtown park- ing guidance systems, access controls and revenue collection equipment that will be coordi- nated with the Downtown Parking Wayfinding project (PL-15004). This project includes cameras in garages for added security for patrons. Justification This project is identified in the City's Comprehensive Plan as a means to reduce congestion, minimize air quality impacts from motorist, and provide live occupancy counts of open parking spaces. Supplemental Information Due to the City Council's decision to defer the New Downtown Parking Garage Project (PE- 15007) in February 2019, this project is recommended to be added as the tenth Infrastructure Plan project to mitigate parking congestion in downtown. Funding from the University Avenue Parking Permit Fund ($1.1 million) that was previously planned to be used to cover the costs for this project, will now be reserved in the University Avenue Parking Permit Fund for future use towards PE-15007 or other ongoing costs. Fund: Capital Improvement Fund Category: Traffic and Transportation Project Location: Downtown Managing Department: Office of Transportation IBRC Reference: New Initial Project Start: Summer 2015 Initial Project Completion: Summer 2020 Revised Project Start: Revised Project Completion: Spring 2021 Project Number: PL-15002 Parking Facility Management System CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 253 Significant Changes 2021-2025 CIP: Due to workload capacity constraints, this project was not started in Fiscal Year 2020 and will now be done solely in Fiscal Year 2021. 2020-2024 CIP: This project was delayed as part of the work to develop an more comprehen- sive downtown parking plan and is now scheduled to go out to bid in the summer of 2020. Implementation will span Fiscal Years 2020 and 2021. 2019-2023 CIP: This project is scheduled to go out to bid in summer of 2018. Implementation will span Fiscal Years 2019 and 2020. The budget has been increased to cover the cost of secu- rity cameras in garages in Fiscal Year 2020. Operating Impact The ongoing operating costs for cameras and other equipment is not know at this time; how- ever, as these costs are quantified, adjustments will be brought forward in the next budget cycle. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund 130,027 1,319,400 448 2,726,860 0 0 0 0 2,726,860 0 2,857,335 Total 130,027 1,319,400 448 2,726,860 0 0 0 0 2,726,860 0 2,857,335 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 1,319,400 448 2,726,860 0 0 0 0 2,726,860 0 2,727,308 Design Total 130,027 130,027 0 1,319,400 0 448 0 2,726,860 0 0 0 0 0 0 0 0 0 2,726,860 0 0 130,027 2,857,335 Relationship to Comprehensive Plan Primary Connection Element: Transportation Section: Motor Vehicle and Bycle Parking Goal: T-5 Policy: T-5.2 Program: T5.2.1 Potential Board/Commission Review: Planning and Transportation Commission Environmental Impact Analysis: This project is expected to be eligible for an exemption from CEQA under Section 15302. CAPITAL IMPROVEMENT FUND 254 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET El Camino Real Pedestrian Safety and Streetscape Project El Camino Real Pedestrian Safety and Streetscape Project Description The El Camino Real Pedestrian Safety and Streetscape Project will install 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. Justification This segment of El Camino Real has a history of reported collisions for all modes, particularly the most vulnerable roadway users. The City of Palo Alto Bicycle and Pedestrian Transportation Plan (BPTP, 2012), the Grand Boulevard Multimodal Transportation Corridor Plan (2010), and the El Camino Real Master Planning Study (2007) all document the collision history of this stretch of El Camino Real. The Palo Alto BPTP reported that some of the highest frequency of active mode collisions in the city occurred on the project segment, highlighting the California Avenue/ El Camino Real intersection as one of the top five locations for reported pedestrian collisions in Palo Alto. The design of El Camino Real will be enhanced to improve pedestrian safety. With its multi-lane cross-section, El Camino Real carries high volumes of traffic as a primary arterial con- nection between Peninsula cities in Santa Clara and San Mateo Counties, but it also has some of the highest levels of observed pedestrian activity along the Palo Alto segment of the corridor - particularly at the El Camino Real/Stanford Avenue and El Camino Real/California Avenue inter- sections, as documented in the El Camino Real Master Planning Study (2007). Despite the high Fund: Capital Improvement Fund Category: Traffic and Transportation Project Location: El Camino Real between Stanford and Sheridan Avenues Managing Department: Office of Transportation IBRC Reference: New Initial Project Start: Fall 2018 Initial Project Completion: Summer 2020 Revised Project Start: Revised Project Completion: Summer 2021 Project Number: PL-18000 El Camino Real and California Avenue Intersection CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 255 volumes of pedestrians, the high volumes of autos and general auto-orientation of the roadway design is uninviting and not conducive to pedestrian travel. The long crossing distances and infrequency of crossing opportunities in particular pose safety concerns on the corridor, which can be observed in the reported collision data. Supplemental Information The majority of construction of this project will be funded by an OBAG 2 grant through VTA. Significant Changes 2020-2024 CIP: The construction for this project has been delayed to avoid a negative impact to traffic and parking while the New California Avenue Parking Garage is under construction. Construction cost estimates have been revised and the total cost of the project increased by $500,000 based on the current costs of construction. Operating Impact The maintenance costs are unknown at this time; however, as these costs are quantified, adjust- ments will be brought forward in the next budget cycle. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund 113,422 823,448 43,167 954,181 202,700 210,300 0 0 1,367,181 0 1,523,770 Revenue from Other Agencies 0 0 0 2,000,000 2,000,000 1,138,750 0 0 5,138,750 0 5,138,750 Total 113,422 823,448 43,167 2,954,181 2,202,700 1,349,050 0 0 6,505,931 0 6,662,520 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 2,193,900 2,202,700 1,349,050 0 0 5,745,650 0 5,745,650 Design 113,422 823,448 43,167 760,281 0 0 0 0 760,281 0 916,870 Total 113,422 823,448 43,167 2,954,181 2,202,700 1,349,050 0 0 6,505,931 0 6,662,520 Relationship to Comprehensive Plan Primary Connection Element: Transportation Section: Road Safety Goal: T-6 Policy: T-6.1 Program: T6.1.4 Relationship to Comprehensive Plan Secondary Connection Element: Transportation Section: Streets Goal: T-3 Policy: T-3-6 Potential Board/Commission Review: Architectural Review Board Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have possible exemption from CEQA CAPITAL IMPROVEMENT FUND 256 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Embarcadero Road at El Camino Improvements Embarcadero Road at El Camino Improvements Description This project provides funding for 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 City 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 realign- ments at High Street, Emerson Street and Kingsley Avenue, new landscaping, transit amenities, and pedestrian safety enhancements. Justification This project provides mobility and safety improvements in response to resident and City Coun- cil concerns regarding congestion along Embarcadero Road. Significant Changes 2020-2024 CIP: Construction of this project is being delayed to Fiscal Year 2022 as the City evaluates options for traffic mitigation related to railroad grade separation alternatives resulting from the Railroad Grade Separation Project (PL-17001). 2019-2023 CIP: Budget increased by $1.2 million due to estimated increases in construction costs. 2017-2021 CIP: Project name changed from Embarcadero Road Corridor Improvements. Fund: Capital Improvement Fund Category: Traffic and Transportation Project Location: Embarcadero Road & El Camino Real Managing Department: Office of Transportation IBRC Reference: New Initial Project Start: Summer 2015 Initial Project Completion: Spring 2019 Revised Project Start: Revised Project Completion: Spring 2023 Project Number: PL-15001 El Camino Real and Embarcadero Road Intersection Rendering, February 2018 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 257 Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund 769,395 0 0 0 1,506,400 2,525,300 3,394,900 0 7,426,600 0 8,195,995 Other 102,151 0 0 0 0 0 0 0 0 0 102,151 Total 871,546 0 0 0 1,506,400 2,525,300 3,394,900 0 7,426,600 0 8,298,146 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 598,401 0 0 0 1,506,400 2,525,300 3,394,900 0 7,426,600 0 8,025,001 Design 273,144 0 0 0 0 0 0 0 0 0 273,144 Total 871,545 0 0 0 1,506,400 2,525,300 3,394,900 0 7,426,600 0 8,298,145 Relationship to Comprehensive Plan Primary Connection Element: Transportation Section: Road Safety Goal: T-6 Policy: T-6.6 Relationship to Comprehensive Plan Secondary Connection Element: Transportation Section: Road Safety Goal: T-6 Policy: T-6.1 Program: T6.1.1 Potential Board/Commission Review: Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. CAPITAL IMPROVEMENT FUND 258 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Highway 101 Pedestrian/Bicycle Overpass Project Highway 101 Pedestrian/Bicycle Overpass Project Description This project provides funding for a new pedestrian/bicycle bridge across Highway 101 at Adobe Creek. Justification The Highway 101 Pedestrian/Bicycle Overpass project is a priority project in the City's Bicycle & Pedestrian Transportation Plan 2012, providing safe, year-round access across Highway 101 in South Palo Alto to the Baylands and regional employment centers. Supplemental Information The Highway 101 Pedestrian/Bicycle Overpass project is included in the Council Infrastructure Plan. The project will replace the existing seasonal Benjamin Lefkowitz Underpass. A Santa Clara County - Recreation Trails Program grant, awarded to the City in November 2012, will pro- vide $4 Million for the project. An additional $4.35 million will be provided by a grant from One Bay Area Grant (OBAG) Program Cycle 2. A contribution of $1 million from Google is also planned. Project design completed in early 2019. Caltrans granted Right-of-Way certification, encroachment permit, and Authorization of Proceed with construction (E-76) in Summer 2019. Project was issued for bids in Summer 2019 and Council awarded the construction contract in November 2019. Construction began in January 2019 and is anticipated to be completed by Summer 2021 and construction is anticipated from Fall 2019 through Spring 2021. Fund: Capital Improvement Fund Category: Traffic and Transportation Project Location: Highway 101 Corridor North of San Antonio Rd. Interchange by Adobe Creek Managing Department: Public Works IBRC Reference: New Initial Project Start: Summer 2012 Initial Project Completion: Summer 2018 Revised Project Start: Summer 2016 Revised Project Completion: Summer 2021 Project Number: PE-11011 Bike path along E. Bayshore, Feb. 2015 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 259 Significant Changes 2021-2025 CIP: Budget increased to $22.9 million when the project was awarded for construc- tion in November 2019. Additional funding of $1.5 million from Santa Clara County is anticipated to recognized in Fiscal Year 2021 to offset costs associated with this project. 2019-2023 CIP: Budget increased to reflect total project cost estimate of $18.5 million. 2018-2022 CIP: The project budget has been increased by $1.0 million to include a contribution from Google toward the cost of the bridge. Additional design funding is budgeted in FY 2018. 2017-2021 CIP: The estimate for the project included in the prior budget document was $10 mil- lion. The City Council increased the total project budget to $13 million to account for construc- tion cost escalation. The total project budget of $13 million includes a feasibility study, conceptual design, design competition, environmental assessment, and design costs. The $13 million figure does not include City staff time to support design and construction of the project Operating Impact This project is anticipated to impact operating expenses in the future. As these costs are quan- tified, adjustments will be brought forward in future budgets, as necessary. Maintenance and repairs will be provided through maintenance agreement executed in December 2018 between the City and Caltrans. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund 5,096,950 8,451,786 8,442,509 (1,500,000)0 0 0 0 (1,500,000)0 12,039,459 Revenue from Other Agencies 0 9,350,000 9,350,000 1,500,000 0 0 0 0 1,500,000 0 10,850,000 Total 5,096,950 17,801,786 17,792,509 0 0 0 0 0 0 0 22,889,459 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 264,258 17,143,404 17,792,509 0 0 0 0 0 0 0 18,056,767 Design 4,832,686 658,382 0 0 0 0 0 0 0 0 4,832,686 Total 5,096,944 17,801,786 17,792,509 0 0 0 0 0 0 0 22,889,453 CAPITAL IMPROVEMENT FUND 260 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Relationship to Comprehensive Plan Primary Connection Element: Transportation Section: Sustainable Transportation Goal: T-1 Policy: T-1.19 Program: T1.19.2 Potential Board/Commission Review: Architectural Review Board Parks and Recreation Commission Planning and Transportation Commission Environmental Impact Analysis: This project will require CEQA and NEPA environmental assessments. CAPITAL IMPROVEMENT FUND 262 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Parking District Implementation Parking District Implementation Description This project will fund the introduction of additional parking permit programs throughout the City. One aspect of this project is the City Council approved Residential Preferential Parking (RPP) ordinance to establish uniform procedures to implement RPP districts through the pro- cess outlined in the Municipal Code 10.50. Justification Implementing parking districts, including RPP, is a parking management strategy that regulates parking where it was previously unregulated. Parking management strategies are critical to maximizing the use of existing parking supply and prioritizing the "right space for the right use" concept. RPP prioritizes parking on residential streets for residents and business who reside within the boundaries of the district. Significant Changes 2020-2024 CIP: The name of this project was changed from Residential Preferential Parking to accommodate a broader parking district strategy. In addition this project was changed to a recurring project in anticipation of implementing future parking districts. Fund: Capital Improvement Fund Category: Traffic and Transportation Project Location: Various Managing Department: Office of Transportation IBRC Reference: New Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: PL-15003 Parking Mitigation, March, 2019 Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund N/A 314,231 307,257 173,674 201,900 218,800 236,700 256,800 1,087,874 0 N/A Total N/A 314,231 307,257 173,674 201,900 218,800 236,700 256,800 1,087,874 0 N/A CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 263 Operating Impact RPPs and other City parking programs, are expected to have operating impacts to maintain the programs. The amounts of impact are not yet quantified and depend on the programs initiated. Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 264,231 257,257 122,174 148,900 164,200 180,500 198,900 814,674 0 N/A Design N/A 50,000 50,000 51,500 53,000 54,600 56,200 57,900 273,200 0 N/A Total N/A 314,231 307,257 173,674 201,900 218,800 236,700 256,800 1,087,874 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Transportation Section: Motor Vehicle and Bycle Parking Goal: T-5 Policy: T-5.1 Program: T5.11.1 Potential Board/Commission Review: Planning and Transportation Commission Environmental Impact Analysis: This project is expected to be eligible for an exemption from CEQA under Section 15301. CAPITAL IMPROVEMENT FUND 264 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Parking Management and System Implementation Parking Management and System Implementation Description This project provides funding for the design and installation of the Comprehensive Parking Per- mit and Citation Management System. The all-inclusive system is a management tool staff will utilize in the management of parking permits for seven parking permit programs and associated on and off-street parking citations. Justification As part of the integrated strategy to address traffic and parking concerns, staff conducted a comprehensive study of parking management strategies, including paid parking and permit parking. The study included an evaluation on how to best use the City's existing parking supply and recommended comprehensive strategies in Palo Alto. Supplemental Information This project is funded proportionally by parking revenues from all parking funds. This may require a loan from the General Fund, to be repaid by the appropriate parking funds. Significant Changes 2020-2024 CIP: The project name was changed from Downtown Parking Management and System Implementation to broaden the scope of the project. The bid for the Comprehensive Parking Permit and Citation System was released in the Spring of 2018 with complete system implementation expected by September 2020. Fund: Capital Improvement Fund Category: Traffic and Transportation Project Location: Downtown Managing Department: Office of Transportation IBRC Reference: New Initial Project Start: Summer 2016 Initial Project Completion: Winter 2017 Revised Project Start: Summer 2018 Revised Project Completion: Fall 2021 Project Number: PL-16002 Parking and Citation Management CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 265 2019-2023 CIP: Recent accomplishments include the completion of the Downtown Parking Management Plan and development of a finance and implementation plan. The bid for the Com- prehensive Parking Permit and Citation System is expected to be released in Summer of 2018 with system implementation expected by September, 2018. Operating Impact The permit and citation system is designed to cover its own costs. No operating impacts are anticipated. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund 248 25,781 (518,220)563,600 0 0 0 0 563,600 0 45,628 Transfer from California Ave Parking Permit Fund 0 138,000 138,000 0 0 0 0 0 0 0 138,000 Transfer from Residential Parking Fund 0 255,000 255,000 0 0 0 0 0 0 0 255,000 Transfer from University Ave Parking Permit Fund 0 752,220 752,220 0 0 0 0 0 0 0 752,220 Total 248 1,171,001 627,000 563,600 0 0 0 0 563,600 0 1,190,848 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 1,171,000 627,000 563,600 0 0 0 0 563,600 0 1,190,600 Design 248 1 0 0 0 0 0 0 0 0 248 Total 248 1,171,001 627,000 563,600 0 0 0 0 563,600 0 1,190,848 Relationship to Comprehensive Plan Primary Connection Element: Transportation Section: Motor Vehicle and Bycle Parking Goal: T-5 Policy: T-5.2 Program: T5.2.3 Potential Board/Commission Review: Planning and Transportation Commission Environmental Impact Analysis: This project is expected to be eligible for an exemption from CEQA under Section 15302. CAPITAL IMPROVEMENT FUND 266 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Quarry Road Improvements and Transit Center Access Quarry Road Improvements and Transit Center Access Description This project provides funding for the planning, design and construction of bicycle and pedes- trian 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. Justification The August 2011 Development Agreement between Stanford Hospitals and Clinics, the Lucille Salter Packard Children's Hospital at Stanford, the Board of Trustees of the Leland Stanford Junior University and the City of Palo Alto obligates the City to design and construct enhance- ments of various pedestrian and bicycle connections between the Palo Alto Intermodal Transit Center and the Stanford University Medical Center Campus (SUMC). Stanford provided funds for these projects. New to this project is a transit improvement element. The Comprehensive Plan Update 2030 identified the need for a transit, bicycle, and pedestrian linkage between the Palo Alto Transit Center bus depot and the Quarry Road and El Camino Real intersection to improve bus transit connectivity and service efficiency. As this project would directly benefit transit service between the Transit Center and the Medical Center campus, it would draw from the Stanford University Medical Center Development Agreement Intermodal Transit budget. Fund: Capital Improvement Fund Category: Traffic and Transportation Project Location: Quarry Road between El Camino Real and Welch Road Managing Department: Office of Transportation IBRC Reference: Catch-up Initial Project Start: Winter 2016 Initial Project Completion: Spring 2017 Revised Project Start: Revised Project Completion: Fall 2022 Project Number: PL-16000 Quarry Road Multi-Use Path, December 2017 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 267 Implementation is timed to support expanded operations of the hospital and the completion of Caltrain electrification in 2022. Supplemental Information This project is funded by the Quarry Road Improvements and Intermodal Transit funds from the Stanford University Medical Center Development Agreement via transfer to the Capital Improvement Fund. Design and construction of the temporary bicycle and pedestrian Transit Center pathway was completed in Summer, 2017. The pathway is accented with seating, decora- tive lighting, and new landscaping. Design and construction was also completed for bicycle and pedestrian improvements along the Quarry Road corridor between El Camino Real and Welch Road. Significant Changes 2021-2025 CIP: Funding for this project spread to Fiscal Year 2023 due to funding constraints and capital project prioritization. 2020-2024 CIP: Project increased by $1.1 million to account for increased construction costs, and construction moved to Fiscal Year 2022 to better align the workload with staff availability. 2019-2023 CIP: Changes include planning, design, and construction for a new bicycle, pedes- trian, and transitway between El Camino Real and Quarry Road and the Palo Alto Transit Center. The location, project characteristics, and funding source are consistent with the portion of the project already completed. 2018-2022 CIP: The construction of the Quarry Road improvements (signing and striping along Quarry Road) has been delayed due to underground (trenching) electrical work needed to be done by Stanford. The project delay will most likely increase the cost to complete construction due to increasing construction costs. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund (159,953)313,000 (194,000)928,400 (139,613)2,748,000 0 0 3,536,787 0 3,182,834 Transfer from Stanford University Medical Ctr Fund 1,442,004 200,000 200,000 0 1,493,513 0 0 0 1,493,513 0 3,135,517 Total 1,282,051 513,000 6,000 928,400 1,353,900 2,748,000 0 0 5,030,300 0 6,318,351 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 1,021,902 195,599 0 634,400 1,353,900 2,748,000 0 0 4,736,300 0 5,758,202 Design 260,144 317,401 6,000 294,000 0 0 0 0 294,000 0 560,144 Total 1,282,046 513,000 6,000 928,400 1,353,900 2,748,000 0 0 5,030,300 0 6,318,346 CAPITAL IMPROVEMENT FUND 268 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Operating Impact Street and landscaping maintenance of the street connection would be supported by the Public Works Department's operations fund. Costs are still being determined and will be brought for- ward as part of the next budget cycle. Relationship to Comprehensive Plan Primary Connection Element: Transportation Section: Road Safety Goal: T-3 Policy: T-3-10 Program: T3.10.4 Potential Board/Commission Review: Architectural Review Board Planning and Transportation Commission Environmental Impact Analysis: May Require Environmental Review CAPITAL IMPROVEMENT FUND 270 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Railroad Grade Separation and Safety Improvements Railroad Grade Separation and Safety Improvements Description This project, Connecting Palo Alto, 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. Justification This project is essential to support the City Council work related to the Council rail grade sepa- ration priority. It provides engineering support, circulation studies, community engagement efforts, and other subsequent tasks needed to advance the City's goal of grade separating rail- road crossings in Palo Alto. Supplemental Information Recent accomplishments include: - Narrowing of grade separation ideas from 34 to 6 ideas currently being considered - Successful engagement through community meetings and the establishment of a Community Advisory Panel (CAP) - Further engaged with other agencies and narrowed the focus of the project Fund: Capital Improvement Fund Category: Traffic and Transportation Project Location: Various Managing Department: Office of Transportation IBRC Reference: New Initial Project Start: Summer 2016 Initial Project Completion: Summer 2018 Revised Project Start: Revised Project Completion: Summer 2024 Project Number: PL-17001 Caltrain Crossing at Charleston Road, July 2018 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 271 Significant Changes 2021-2025 CIP: Funding of $1.0 million from the Stanford University Medical Center Fund pro- grammed in this project, spread over Fiscal Years 2021 and 2022. $1.0 million of Measure B fund- ing shifted to PO-86070, Street Maintenance. 2020-2024 CIP: 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 Rail- road Crossing Safety Improvement Project (PL-20001). 2019-2023 CIP: The City has received a reimbursement grant from Caltrans for safety improve- ments at the railroad crossing at Alma Street and Churchill Avenue, an intersection with Palo Alto High School located in the northwest quadrant and a bicycle lane through the crossing for eastbound traffic. In addition, $1.0 million in annual funding from the VTA Measure B has been programmed for this project. Operating Impact Operating impacts, if any, will depend upon the grade separation alternative selected. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund 2,101,073 2,879,846 (293,579)3,260,625 233,600 271,900 311,400 190,700 4,268,225 0 6,075,719 Revenue from Other Agencies 0 2,000,000 2,000,000 500,000 500,000 1,000,000 1,000,000 1,000,000 4,000,000 0 6,000,000 Transfer from Stanford University Medical Ctr Fund 0 0 0 500,000 500,000 0 0 0 1,000,000 0 1,000,000 Total 2,101,073 4,879,846 1,706,421 4,260,625 1,233,600 1,271,900 1,311,400 1,190,700 9,268,225 0 13,075,719 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 40,637 4,178,800 1,706,421 4,260,625 1,233,600 1,271,900 1,311,400 1,190,700 9,268,225 0 11,015,283 Design 2,060,434 701,046 0 0 0 0 0 0 0 0 2,060,434 Total 2,101,071 4,879,846 1,706,421 4,260,625 1,233,600 1,271,900 1,311,400 1,190,700 9,268,225 0 13,075,717 Relationship to Comprehensive Plan Primary Connection Element: Transportation Section: Streets Goal: T-3 Policy: T-3-15 Program: T3.15.1 Potential Board/Commission Review: Architectural Review Board Planning and Transportation Commission CAPITAL IMPROVEMENT FUND 272 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Environmental Impact Analysis: This project includes the completion of the necessary environmental analysis. CAPITAL IMPROVEMENT FUND 274 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Safe Routes To School Safe Routes To School Description This project provides funding for the City's Safe Routes to Schools program, including school commute planning, encouragement activities, and capital improvements along local and collec- tor streets that may be impacted by school commute activities. Typical capital improvements include traffic calming devices, enhanced crosswalks, and improved signage along suggested routes to school. In Fiscal Year 2019, traffic calming projects from prior years will continue and traffic studies will be pursued for locations in need of traffic calming and other safety counter- measures. Justification In collaboration with the Palo Alto Unified School District and Parent Teacher Associations, the City is leading the design and construction of capital improvements for suggested routes to school, helping to reduce risks to students and encouraging more families to use alternatives to driving. The budget in Fiscal Years 2020 and 2021 reflects the award of a grant from the Santa Clara Valley Transportation Authority for 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 Waverly Bike Path between East Meadow Drive and Charleston Road. Supplemental Information The City was awarded a Vehicle Emissions Reductions Based at Schools (VERBS) grant of $0.9 million for the Meadow-Fabian protected bikeway. The local match is $0.2 million. Both amounts are included in the 2020-2024 CIP, and construction is scheduled for Fiscal Years 2021 and 2022. Fund: Capital Improvement Fund Category: Traffic and Transportation Project Location: Streets on Suggested Walk and Roll Routes for PAUSD schools Managing Department: Office of Transportation IBRC Reference: Keep-up Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: PL-00026 Fletcher Students Using New Bike Box, April 2018 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 275 Significant Changes 2020-2024 CIP: The East Meadow Drive/Fabian Way and Waverley Bike path, originally planned to be completed in Fiscal Years 2020 and 2021 is now expected to be undertaken in Fiscal Years 2021 and 2022 due to current staffing shortages and fully engage the community in coordination with other bicycle projects. Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund N/A 158,290 118,800 101,500 117,800 141,200 166,500 160,600 687,600 0 N/A Revenue from Other Agencies N/A 0 0 459,677 459,677 0 0 0 919,354 0 N/A Transfer from Gas Tax Fund N/A 100,000 100,000 100,000 100,000 100,000 100,000 100,000 500,000 0 N/A Total N/A 258,290 218,800 661,177 677,477 241,200 266,500 260,600 2,106,954 0 N/A Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 223,290 218,800 591,177 642,477 206,200 231,500 235,600 1,906,954 0 N/A Design N/A 35,000 0 70,000 35,000 35,000 35,000 25,000 200,000 0 N/A Total N/A 258,290 218,800 661,177 677,477 241,200 266,500 260,600 2,106,954 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Transportation Section: Road Safety Goal: T-6 Policy: T-6.4 Program: T6.4.2 Relationship to Comprehensive Plan Secondary Connection Element: Transportation Section: Sustainable Transportation Goal: T-1 Policy: T-1.16 Potential Board/Commission Review: Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. CAPITAL IMPROVEMENT FUND 276 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Traffic Signal and Intelligent Transportation Systems Traffic Signal and Intelligent Transportation Systems Description This project provides funding for the design and construction of traffic signals, traffic signal communications networks, video surveillance projects for transportation use, and maintenance of the City’s traffic signal central system. The project includes the replacement of traffic signal controllers/cabinets, video detection systems, and other field equipment. Justification Traffic signal upgrades are essential in maintaining traffic safety and improving roadway opera- tions including the reduction of roadway congestion with traffic signal retiming projects. To accomplish this, there is a need to add new traffic signals at locations throughout the city. This project replaces or adds traffic signal controller inventory in the field with new controllers and expands the current central management system to allow for communications to all signalized intersections. The new controllers enable additional traffic signal timing strategies and improve the reliability of the City's traffic signals. Supplemental Information Funding from this project contributed to signal improvements related to the Upgrade Down- town project, which was completed in March 2019. Significant Changes 2020-2024 CIP: Although anticipated last fiscal year, this project will not include a new signal at Hamilton and Waverly since construction of a new downtown garage at that site is not proceed- Fund: Capital Improvement Fund Category: Traffic and Transportation Project Location: Various Managing Department: Office of Transportation IBRC Reference: Keep-up Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: PL-05030 Installation of new traffic signal equipment at Embarcadero Road and Middlefield Road, April 2018 CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 277 ing at this time. An additional $900,000 from the San Antonio/West Bayshore Transportation Impact Fund has been added in Fiscal Year 2020 for traffic signal improvements at San Antonio and Charleston. Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund N/A 612,913 (287,700)972,355 240,950 191,250 285,700 381,400 2,071,655 0 N/A Revenue from Other Agencies N/A 700,000 700,000 300,000 300,000 300,000 300,000 300,000 1,500,000 0 N/A Transfer from SA/W Bayshore Traffic Impact Fee Fnd N/A 900,000 1,283,400 0 0 0 0 0 0 0 N/A Transfer from Traffic Impact Fee Fund N/A 383,362 0 400,000 395,000 395,000 395,000 395,000 1,980,000 0 N/A Total N/A 2,596,275 1,695,700 1,672,355 935,950 886,250 980,700 1,076,400 5,551,655 0 N/A Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 2,466,275 1,695,700 1,610,555 872,250 820,650 913,100 1,006,800 5,223,355 0 N/A Design N/A 130,000 0 61,800 63,700 65,600 67,600 69,600 328,300 0 N/A Total N/A 2,596,275 1,695,700 1,672,355 935,950 886,250 980,700 1,076,400 5,551,655 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Transportation Section: Traffic Delay and Congestion Goal: T-2 Policy: T-2.1 Program: T2.1.1 Relationship to Comprehensive Plan Secondary Connection Element: Transportation Section: Streets Goal: T-3 Policy: T-3-6 Potential Board/Commission Review: Planning and Transportation Commission Environmental Impact Analysis: This project is expected to be eligible for an exemption from CEQA under Section 15302. CAPITAL IMPROVEMENT FUND 278 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Transportation and Parking Improvements Transportation and Parking Improvements Description This project provides funding for the implementation of 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 proj- ects. Justification Traffic calming is identified as a high priority in the adopted Transportation element of the Com- prehensive Plan. Traffic studies and miscellaneous traffic calming improvements help to improve the quality of life for residents and visitors. Fund: Capital Improvement Fund Category: Traffic and Transportation Project Location: Various Managing Department: Office of Transportation IBRC Reference: Keep-up Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: PL-12000 New Crosswalk at Colorado Ave and Sandra Place, June 2018 Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund N/A 390,653 330,811 471,342 487,000 518,600 552,900 819,200 2,849,042 0 N/A Total N/A 390,653 330,811 471,342 487,000 518,600 552,900 819,200 2,849,042 0 N/A CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 279 Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 310,928 304,928 342,500 412,000 443,600 177,900 444,200 1,820,200 0 N/A Design N/A 79,725 25,883 128,842 75,000 75,000 375,000 375,000 1,028,842 0 N/A Total N/A 390,653 330,811 471,342 487,000 518,600 552,900 819,200 2,849,042 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Transportation Section: Streets Goal: T-4 Policy: T-4.2 Program: T4.2.1 Relationship to Comprehensive Plan Secondary Connection Element: Transportation Section: Road Safety Goal: T-6 Potential Board/Commission Review: Planning and Transportation Commission Environmental Impact Analysis: This project is expected to be eligible for an exemption from CEQA under Section 15301. CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 281 Administration CAPITAL IMPROVEMENT FUND 282 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Capital Improvement Fund Administration Capital Improvement Fund Administration Description This project provides funding for estimated administrative costs, including salaries and benefits costs of City staff assigned to manage the oversight of the General Fund Capital Improvement program. Justification Administrative costs are associated with the completion of CIP projects. As such, these costs are capitalized and are added to the total costs of projects. Supplemental Information Salaries and benefits have been included in CIP projects where appropriate and possible, in all fiscal years. The amounts included in this project represent salaries and benefits expense not associated with any particular project (for example, administration and oversight of the CIP pro- cess). As part of the annual year-end process, the annually incurred amount will be allocated to all projects in the Capital Improvement Fund, on a proportional basis, and any unused balance will be returned to the Infrastructure Reserve. Significant Changes 2019-2023 CIP: Salary and benefit expenses have been allocated to capital projects in all years of the CIP. In prior years, costs were allocated only in the first year of the CIP. Fund: Capital Improvement Fund Category: Unallocated Salaries and Benefits Project Location: N/A Managing Department: Administrative Services IBRC Reference: N/A Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: AS-10000 Capital Management Team CAPITAL IMPROVEMENT FUND CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 283 Operating Impact There are no operating or maintenance expenses associated with this project. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Capital Improvement Fund N/A 469,123 469,123 293,977 2,697,243 2,970,525 2,906,821 3,915,300 12,783,866 0 N/A Total N/A 469,123 469,123 293,977 2,697,243 2,970,525 2,906,821 3,915,300 12,783,866 0 N/A Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Other N/A 469,123 469,123 293,977 2,697,243 2,970,525 2,906,821 3,915,300 12,783,866 0 N/A Total N/A 469,123 469,123 293,977 2,697,243 2,970,525 2,906,821 3,915,300 12,783,866 0 N/A Relationship to Comprehensive Plan Primary Connection Environmental Impact Analysis: N/A CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 285 CUBBERLEY PROPERTY INFRASTRUCTURE FUND CUBBERLEY PROPERTY INFRASTRUCTURE FUND 286 CUBBERLEY PROPERTY INFRASTRUCTURE FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET CUBBERLEY PROP Overview The Cubberley Property Infrastructure Fund accounts for expenditures related to the mainte- nance and renovation of the Cubberley Community Center property, which was formerly Cubberley High School from 1955 to 1979. Due to budget constraints resulting from the passage of Proposition 13 and declining enrollment, the Palo Alto Unified School District (PAUSD) was forced to close and sell school properties, including Terman Middle School, which the City of Palo Alto acquired, while PAUSD retained ownership of the Cubberley site. In 1989, the City and PAUSD entered into a lease agreement with the City providing annual revenue to PAUSD in exchange for 1) a lease of the 35-acre Cubberley site; 2) a Covenant Not to Develop for five other neighborhood school sites; and 3) an agreement that PAUSD provide space for extended day care at each of the eleven remaining elementary school sites. In 2001, the City relinquished ownership of the Terman site in exchange for ownership of eight acres of the Cubberley site. After several lease extensions and amendments in the years follow- ing, a restructured lease agreement was finalized in 2014. As part of the lease agreement, the previous Covenant Not to Develop clause, which required the City to transfer $1.86 million to the school district, was eliminated and the funds were dedicated towards repairing, renovating and/ or improving the Cubberley site, which is jointly owned by the City and PAUSD. The budget for the Cubberley Property Infrastructure Fund is divided into two project catego- ries: Buildings and Facilities and Parks and Open Space. Addi- tional categories may be estab- lished in future years once needs are identified through the Master Plan process. Buildings and Facilities The Buildings and Facilities cate- gory accounts for the projects funded to maintain the facilities on the Cubberley Community Center campus. $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 FY 2017 Actuals FY 2019 Actuals FY 2021 Proposed FY 2023 Projected FY 2025 Projected Cubberley Fund Capital Expenditures CUBBERLEY PROPERTY INFRASTRUCTURE FUND CUBBERLEY PROPERTY INFRASTRUCTURE FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 287 Recent Accomplishments Continued the joint City of Palo Alto and Palo Alto Unified School District development of the Master Plan with consultant assistance, anticipated to be completed in Fiscal Year 2020. Completed roof replacements for the Pavillion and Wing L. Implemented minor improvements to rental classrooms. Addressed safety issues identified concerning asphalt, sidewalk, and trees. 2021-2025 Capital Improvement Program For the 2021-2025 Capital Improvement Program (CIP), $3.5 million is budgeted, with $1.4 mil- lion allocated in Fiscal Year 2021 for three projects in the Buildings and Facilities category. Recurring Projects Cubberley Roofing Replacements (Fiscal Year 2021: $0.4 million; 5-Year CIP: $2.2 million) Cubberley Repairs (Fiscal Year 2021: $0.8 million; 5-Year CIP: $1.3 million) Non-Recurring Projects Cubberley Building Management Systems (Fiscal Year 2021 and 5-Year CIP: $0.03 million) Parks and Open Space The Parks and Open Space category accounts for projects that maintain Cubberley outdoor space and facilities improvements. Recent Accomplishments Completed the field restroom, which was anticipated to be installed in Fiscal Year 2020. Infrastructure Inventory CLASSIFICATION QUANTITY City-owned acres 8 PAUSD-owned acres 27 Total square footage of buildings 175,540 (94,402 City-owned) Parking spaces 750 (130 City-owned) Artist studios 22 Dance studios 3 Schools 2 Childcare facilities 2 Nonprofit community organizations 9 CUBBERLEY PROPERTY INFRASTRUCTURE FUND 288 CUBBERLEY PROPERTY INFRASTRUCTURE FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 2021-2025 Capital Improvement Program For the 2021-2025 CIP, $0.08 million is budgeted and allocated in Fiscal Year 2021 for one proj- ect in the Parks and Open Space category. Non-Recurring Projects Cubberley Field Restrooms (Fiscal Year 2021 and 5-Year CIP: $0.08 million) Summary of Capital Activity CUBBERLEY PROPERTY INFRASTRUCTURE FUND Project Number Project Title FY 2019 Actuals FY 2020 Estimate FY 2021 Proposed FY 2022 FY 2023 FY 2024 FY 2025 5-Year Total Source of Funds Revenue from Other Agencies CB-16001 Cubberley Community Center Master Plan 282,986 0 0 0 0 0 0 0 Total Revenue from Other Agencies 282,986 0 0 0 0 0 0 0 Transfers from the General Fund General Fund Annual Capital Transfer 1,864,248 1,864,248 1,864,248 1,864,248 1,864,248 1,864,248 1,864,248 9,321,240 Total Transfers from the General Fund 1,864,248 1,864,248 1,864,248 1,864,248 1,864,248 1,864,248 1,864,248 9,321,240 Total Sources 2,147,234 1,864,248 1,864,248 1,864,248 1,864,248 1,864,248 1,864,248 9,321,240 Use of Funds Buildings and Facilities CB-19001 Cubberley Building Management Systems 0 320,000 30,000 0 0 0 0 30,000 CB-16001 Cubberley Community Center Master Plan 505,301 264,000 0 0 0 0 0 0 CB-17001 Cubberley Repairs 84,889 28,684 831,778 106,600 106,800 111,200 110,500 1,266,878 CB-16002 Cubberley Roof Replacements 282,779 1,110,806 432,692 561,211 383,249 358,318 412,000 2,147,470 Buildings and Facilities Total 872,970 1,723,490 1,294,470 667,811 490,049 469,518 522,500 3,444,348 Parks and Open Space CB-17002 Cubberley Field Restrooms 31,265 259,167 79,684 0 0 0 0 79,684 CB-19000 Cubberley Track and Field Replacement 23,862 1,865,811 0 0 0 0 0 0 Parks and Open Space Total 55,127 2,124,978 79,684 0 0 0 0 79,684 Total Uses 928,097 3,848,468 1,374,154 667,811 490,049 469,518 522,500 3,524,032 CUBBERLEY PROPERTY INFRASTRUCTURE FUND CUBBERLEY PROPERTY INFRASTRUCTURE FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 289 Buildings and Facilities CUBBERLEY PROPERTY INFRASTRUCTURE FUND 290 CUBBERLEY PROPERTY INFRASTRUCTURE FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Cubberley Building Management Systems Cubberley Building Management Systems Description This project provides funding for replacement of the Building Management System (BMS) con- trols for the Pavilion, Theater, Wing I, and Gyms A and B boiler rooms at the Cubberley Commu- nity Center. The BMS is a software program that controls building systems such as air conditioning and heating. Justification The old BMS is no longer supported by the City's IT Department or the BMS vendor. The new BMS controls will align the buildings mentioned above with the City's current standard BMS. Significant Changes 2021-2025 CIP: Installation work for the new BMS was not able to be fully completed in FY 2020. Funding to finalize the work will be reappropriated to FY 2021 to complete the project. 2020-2024 CIP: This project will be completed in the Fall of 2019 instead of the Spring due to specifications and bidding timeline. Fund: Cubberley Property Infrastructure Fund Category: Buildings and Facilities Project Location: 4000 Middlefield Road Managing Department: Public Works Initial Project Start: Summer 2018 Initial Project Completion: Spring 2019 Revised Project Start: Revised Project Completion: Fall 2019 Project Number: CB-19001 Building Management System Controls, March 2018 Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Cubberley Property Infrastructure Fund 0 354,000 320,000 30,000 0 0 0 0 30,000 0 350,000 Total 0 354,000 320,000 30,000 0 0 0 0 30,000 0 350,000 CUBBERLEY PROPERTY INFRASTRUCTURE FUND CUBBERLEY PROPERTY INFRASTRUCTURE FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 291 Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 354,000 320,000 30,000 0 0 0 0 30,000 0 350,000 Total 0 354,000 320,000 30,000 0 0 0 0 30,000 0 350,000 Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.2 Potential Board/Commission Review: Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. CUBBERLEY PROPERTY INFRASTRUCTURE FUND 292 CUBBERLEY PROPERTY INFRASTRUCTURE FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Cubberley Repairs Cubberley Repairs Description This project provides funding to make repairs and minor improvements at the Cubberley Com- munity Center. Work completed under this project may include items such as painting, sidewalk repairs, breezeway pavement resurfacing, landscaping improvements, minor equipment replacement, and improvements to interior finishes. Justification This project allows minor improvements to occur that will address safety concerns, functionality of building systems, and aesthetics. Supplemental Information Repairs in various parts of the facility are scheduled on a per year basis. Funding is pro- grammed for exterior maintenance, repairs to concrete and asphalt, tree removals, and interior maintenance and repairs including heating and ventilation, radiant floor heating, lighting, and painting. Significant Changes 2021-2025 CIP: All projects pushed out one year due to staffing constraints. 2020-2024 CIP: Major projects for Fiscal Year 2020 will include Pavilion ceiling tile replacement, Theater lobby carpet replacement, and Wing M hallway flooring and carpet replacement. 2019-2023 CIP: This project has shifted from non-recurring to recurring to address repairs needed annually throughout the property. Funding will continue to be allocated on an annual basis until completion of the Cubberley Master Plan. Fund: Cubberley Property Infrastructure Fund Category: Buildings and Facilities Project Location: 4000 Middlefield Road Managing Department: Public Works Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: CB-17001 Cubberley Pavement, 2016 CUBBERLEY PROPERTY INFRASTRUCTURE FUND CUBBERLEY PROPERTY INFRASTRUCTURE FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 293 2017-2021 CIP: Project established. Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Cubberley Property Infrastructure Fund N/A 761,862 28,684 831,778 106,600 106,800 111,200 110,500 1,266,878 0 N/A Total N/A 761,862 28,684 831,778 106,600 106,800 111,200 110,500 1,266,878 0 N/A Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 761,862 28,684 831,778 106,600 106,800 111,200 110,500 1,266,878 0 N/A Total N/A 761,862 28,684 831,778 106,600 106,800 111,200 110,500 1,266,878 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.2 Potential Board/Commission Review: Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. CUBBERLEY PROPERTY INFRASTRUCTURE FUND 294 CUBBERLEY PROPERTY INFRASTRUCTURE FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Cubberley Roof Replacements Cubberley Roof Replacements Description This project provides funding for the replacement or restoration of failing roofs at the Cubberley Community Center. Justification Most of the existing mineral cap roofs at Cubberley have exceeded their useful lives and are in poor condition. Rehabilitation is needed to prevent significant problems that may cause struc- tural damage to buildings. In some cases, a more cost-effective roof restoration process is planned while in other cases a full replacement is necessary. A fluid, reinforced waterproofing system can be applied over the existing roof that also meets current cool roofing codes to opti- mize energy efficiency. Supplemental Information Facilities scheduled for re-roofing with a fluid applied system or for major repairs are: Fiscal Year 2021: Cubberley Wing H and D Fiscal Year 2022: Cubberley Pavilion Flat Section Fiscal Year 2023: Cubberley Wing T1 and T2 Fiscal Year 2024: Cubberley Wing U Fiscal Year 2025: Cubberley Wing A Fund: Cubberley Property Infrastructure Fund Category: Buildings and Facilities Project Location: 4000 Middlefield Road Managing Department: Public Works Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: CB-16002 Cubberley Wing P, January 2015 CUBBERLEY PROPERTY INFRASTRUCTURE FUND CUBBERLEY PROPERTY INFRASTRUCTURE FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 295 Significant Changes 2021-2025 CIP: Cubberley Wings H and D were moved to Fiscal Year 2021 while Wings T1 and T2 were move to Fiscal Year 2023. Wing A was added for Fiscal Year 2025. 2020-2024 CIP: Cubberley Wings F and FH were postponed to Fiscal Year 2020 from Fiscal Year 2019 to prioritize Wings J and K from Fiscal Year 2021 to Fiscal Year 2019. 2016-2020 CIP: Project established in the Cubberley Property Infrastructure Fund. Funding was allocated in prior years for roofing replacements at Cubberley Community Center in the Capital Improvement Fund. Funding is now recommended in the Cubberley Property Infrastructure Fund for this purpose, consistent with the revised lease agreement with the Palo Alto Unified School District, approved by the City Council in 2014. Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Cubberley Property Infrastructure Fund N/A 1,253,848 1,110,806 432,692 561,211 383,249 358,318 412,000 2,147,470 0 N/A Total N/A 1,253,848 1,110,806 432,692 561,211 383,249 358,318 412,000 2,147,470 0 N/A Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 577,200 1,110,806 432,692 561,211 383,249 358,318 412,000 2,147,470 0 N/A Design N/A 676,648 0 0 0 0 0 0 0 0 N/A Total N/A 1,253,848 1,110,806 432,692 561,211 383,249 358,318 412,000 2,147,470 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.2 Potential Board/Commission Review: Architectural Review Board Historic Resources Board Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. CUBBERLEY PROPERTY INFRASTRUCTURE FUND CUBBERLEY PROPERTY INFRASTRUCTURE FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 297 Parks and Open Space CUBBERLEY PROPERTY INFRASTRUCTURE FUND 298 CUBBERLEY PROPERTY INFRASTRUCTURE FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Cubberley Field Restroom Cubberley Field Restroom Description This project provides the installation of restroom at the Cubberley Community Center Fields. The restroom will be a prefabricated structure. Justification This project will provide a restroom facility to the Cubberley Community Center Fields due to intensive sports league and recreational usage. The facility consists of soccer and softball fields as well as tennis courts and a running track. It is the City's largest field complex without a restroom. Significant Changes 2021-2025 CIP: This project was delayed from being completed in FY 2020 to FY 2021 due to staffing constraints. 2020-2024 CIP: This project was delayed from being completed in FY 2019 to FY 2020 due to staffing constraints and issues purchasing the prefabricated restroom. 2019-2023 CIP: Funding has been increased by $150,000 due to the placement, associated util- ity connections, and updated cost estimates. 2017-2021 CIP: Project established. Fund: Cubberley Property Infrastructure Fund Category: Parks and Open Space Project Location: 4000 Middlefield Road Managing Department: Public Works Initial Project Start: Summer 2016 Initial Project Completion: Summer 2018 Revised Project Start: Fall 2019 Revised Project Completion: Fall 2020 Project Number: CB-17002 Cubberley Fields, February 2016 CUBBERLEY PROPERTY INFRASTRUCTURE FUND CUBBERLEY PROPERTY INFRASTRUCTURE FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 299 Operating Impact This project is anticipated to impact operating expenses in the future. Custodial and mainte- nance costs are estimated to be $15,965 in Fiscal Year 2021 and increase by 3% annually thereaf- ter. These costs will be included as part of the City's custodial contract Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Cubberley Property Infrastructure Fund 104,276 338,851 259,167 79,684 0 0 0 0 79,684 0 443,127 Total 104,276 338,851 259,167 79,684 0 0 0 0 79,684 0 443,127 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 13,589 335,901 256,217 79,684 0 0 0 0 79,684 0 349,490 Design 90,682 2,950 2,950 0 0 0 0 0 0 0 93,632 Total 104,271 338,851 259,167 79,684 0 0 0 0 79,684 0 443,122 Anticipated Operating Budget Needs Fund FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 Cubberley Property Infrastructure Fund 15,965 16,444 16,937 17,445 17,968 Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.3 Potential Board/Commission Review: Architectural Review Board Parks and Recreation Commission Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible categorical exemption from CEQA under section 15301. CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 301 ENTERPRISE FUND PROJECTS Enterprise FundT CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 303 AIRPORT FUND AIRPORT FUND 304 AIRPORT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET AIRPORT FUND Overview The Airport Fund Capital Improvement Program (CIP) accounts for activities related to the con- struction and replacement of infrastructure necessary to operate and maintain the airport. The Palo Alto Airport (PAO) is a federally obligated airport, which receives federal funds for airport capital improvement projects based on Federal Aviation Administration (FAA) established grant assurances that airport operators must adhere to in order to receive funds. For detailed infor- mation on the maintenance and operations of the airport, please refer to the Airport Fund sec- tion in the Operating Budget. The 2021-2025 CIP includes projects totaling $26.0 million with Fiscal Year 2021 projects total- ing $19.4 million. The FAA provides grants to public agencies for the planning and development of public-use airports and reimburses up to 90 percent of the non-salary cost of eligible proj- ects. Staff intends to continue applying for FAA grants for eligible capital improvement projects to ensure a safe and well-maintained airport. Staff will also apply for state grant-matching opportunities when available. The budget for the Airport Fund CIP is divided into two catego- ries: Airport Apron, Runways, and Taxiways and Airport Facilities. Airport Apron, Runways, and Taxiways The Airport Apron, Runways, and Taxiways category accounts for the design and construction of improvements and enhance- ments, which include pavement, lighting, drainage, and perimeter fencing. The Palo Alto Airport includes one runway of approxi- mately 2,400 feet in length, one parallel taxiway of the same length, and four connector taxiways for entering and exiting the runway. In Fiscal Year 2015, staff conducted a survey to determine the pavement condition index (PCI) values for all airfield pavement. PCI values are rated as follows: 80+ = very good or excellent, 70-79 = good, 60-69 = fair, 50-59 = at risk, 25-49 = poor, 0-24 = failed. Based on visual inspection, the average apron PCI value was 36, indicating the need for full pavement recon- struction. The apron score of 36 is anticipated to improve when the next PCI evaluation is con- ducted with the completed Apron and Taxi Lane Reconstruction (AP-15003) and current Airport Apron Reconstruction (AP-16000) projects. The average PCI target range anticipated is a score between 75-80. $0 $4,000,000 $8,000,000 $12,000,000 $16,000,000 $20,000,000 FY 2017Actuals FY 2019Actuals FY 2021Proposed FY 2023Projected FY 2025Projected Airport Fund Capital Expenditures AIRPORT FUND AIRPORT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 305 Recent Accomplishments Completed construction of Phase II of the Apron Reconstruction project (AP-16000) in FY 2019 utilizing an FAA grant reimbursement awarded for 90 percent of project costs. 2021-2025 Capital Improvement Program Recurring Projects There are no recurring projects scheduled at this time. Non-Recurring Projects There are two non-recurring, multi-phase projects scheduled in the 2021-2025 CIP: Airport Apron Reconstruction project (Fiscal Year 2021 and 5-year CIP: $19.4 million) Airfield Electrical Improvements (5-year CIP:$5.3 million) The FAA prioritized the Apron Reconstruction project to be completed before all other airport projects, deferring the Airfield Electrical Improvements project to Fiscal Year 2024. In 2015, the FAA requested a Pavement Maintenance Management Plan (PMMP) to document conditions and prioritize future airport pavement projects. The completed PMMP showed all areas in disre- pair, with the apron being most critical. In total, the Apron Reconstruction project will recon- struct 38 acres of pavement.The final phase of construction costs and associated grant reimbursements for this multi-phased project are primarily budgeted in Fiscal Year 2021. Airport Facilities The Airport Facilities category accounts for buildings, security systems, parking lot and all other infrastructure improvements. Prior to April 2017, Fixed Base Operators (FBO) leased spaces at the Airport and were responsible for the maintenance of their structures with the exception of the terminal. In April 2017, the FBO leases expired and the City became responsible for the maintenance of these structures. Interim lease agreements (1-3 years) between the City and existing businesses were executed with the understanding that agreements will need to be renegotiated based on the completion of the Airport Business Plan. Infrastructure Inventory - Summary of Airport Taxiways CLASSIFICATION QUANTITY DESCRIPTION Apron or Ramp 468 Tie-down spots Runway 1 2443 x 70 feet Taxiway 5 4 connector taxiways1 paral- lel taxiway AIRPORT FUND 306 AIRPORT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Recent Accomplishments Adopted Airport Hangars into the Palo Alto Airport Schedule of Fees and Charges for Fiscal Year 2020. Completed a comprehensive facilities assessment for all buildings owned by the City at the Airport. 2021-2025 Capital Improvement Program Recurring Projects There are no recurring projects scheduled at this time. Non-Recurring Projects There are two non-recurring projects during the 2021-2025 CIP: Airport Layout Plan (5-Year CIP: $0.7 million) Automated Weather Observation System (AWOS) (5-Year CIP: $0.6 million) The Airport Layout Plan is required by the FAA to ensure grant eligibility and will include exist- ing facilities and planned development, air traffic activity, noise contours, environmental docu- mentation and 20-year demand forecasts. Infrastructure Inventory - Summary of Airport Facilities CLASSIFICATION QUANTITY DESCRIPTION Buildings 2 Offices Hangars 12 Medium Conventional Box Hangar Hangars 2 Large Conventional Box Han- gar Hangars 45 Small Nested T-Hangar Hangars 3 Large Conventional Multi-Air- craft Hangar Trailers 2 Airport Terminal Building and Offices AIRPORT FUND AIRPORT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 307 Summary of Capital Activity AIRPORT FUND Project Number Project Title FY 2019 Actuals FY 2020 Estimate FY 2021 Proposed FY 2022 FY 2023 FY 2024 FY 2025 5-Year Total Source of Funds Revenue from Federal Government AP-19001 Airfield Electrical Improvements 0 0 0 0 0 433,350 3,997,800 4,431,150 AP-16000 Airport Apron Reconstruction 1,643,483 10,363,100 17,288,640 0 0 0 0 17,288,640 AP-21000 Airport Layout Plan 0 0 0 544,500 0 0 0 544,500 AP-19000 Automated Weather Observation System (AWOS)0 0 0 79,200 311,850 0 0 391,050 Revenue from the Federal Government Total 1,643,483 10,363,100 17,288,640 623,700 311,850 433,350 3,997,800 22,655,340 Revenue from State of California AP-16000 Airport Apron Reconstruction 0 0 2,000,000 0 0 0 0 2,000,000 Revenue from the State of California Total 0 0 2,000,000 0 0 0 0 2,000,000 Total Sources 1,643,483 10,363,100 19,288,640 623,700 311,850 433,350 3,997,800 24,655,340 Use of Funds Airport Apron, Runways, and Taxiways AP-19001 Airfield Electrical Improvements 0 0 0 0 0 640,500 4,626,000 5,266,500 AP-16000 Airport Apron Reconstruction 4,954,464 11,654,568 19,367,600 51,000 0 0 0 19,418,600 Airport Apron, Runways, and Taxiways Total 4,954,464 11,654,568 19,367,600 51,000 0 640,500 4,626,000 24,685,100 Airport Facilities AP-20000 Airport Facilities Electrical Improvements 0 206,000 0 0 0 0 0 0 AP-21000 Airport Layout Plan 0 0 0 710,000 30,000 0 0 740,000 AP-16003 Airport Perimeter Fence 13,129 0 0 0 0 0 0 0 AP-19000 Automated Weather Observation System (AWOS)0 0 0 98,000 489,500 20,000 0 607,500 AP-16002 Wildlife Hazard Plan 5,121 0 0 0 0 0 0 0 Airport Facilities Total 18,250 206,000 0 808,000 519,500 20,000 0 1,347,500 Total Uses 4,972,714 11,860,568 19,367,600 859,000 519,500 660,500 4,626,000 26,032,600 AIRPORT FUND AIRPORT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 309 Airport Apron, Runways, and Taxiways AIRPORT FUND 310 AIRPORT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Airfield Electrical Improvements Airfield Electrical Improvements Description This project provides funding for electrical and lighting improvements to the airfield. Justification The last known airfield electrical improvements were performed in 1993. Results of the electrical assessment conducted as part of the Airport Apron Reconstruction project will inform the nec- essary above ground electrical infrastructure needs including lighting, signage, and possible vault modifications. Supplemental Information The design and construction of underground infrastructure being utilized will be completed in the Airport Apron Reconstruction project. LED lighting may be installed for greater efficiency and to comply with City sustainability goals. Significant Changes 2021-2025 CIP: The FAA deferred grant funding for this project from Fiscal Year 2023 to Fiscal Year 2024. Funding was increased due to project design cost estimates. 2020-2024 CIP: This project was changed from four phases to three phases and moved up from Fiscal Year 2024 to Fiscal Year 2023, in conjunction with the Airport Apron Reconstruction project (AP-16000). The project was increased to anticipate extra costs that are likely to result from the Airport Layout Plan in order to meet FAA design standards such as costs for the emer- gency generator, vault building, runway end identifier lights (REIL), precision approach path indicator (PAPI) units, and windcone installation. Fund: Airport Enterprise Fund Category: Airport Apron, Runways, and Taxiways Project Location: 1925 Embarcadero Road Managing Department: Public Works Initial Project Start: Fall 2019 Initial Project Completion: Summer 2020 Revised Project Start: Fall 2023 Revised Project Completion: Spring 2025 Project Number: AP-19001 Airfield Electrical, July 2017 AIRPORT FUND AIRPORT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 311 2019-2023 CIP: The FAA deferred grant funding for this project from Fiscal Year 2019 to Fiscal Year 2024 to complete the Airport Apron Reconstruction project (AP-16000). Operating Impact This project is anticipated to have operating expenses related to pavement maintenance. As these costs are quantified, adjustments will be brought forward in future budgets, as necessary. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Airport Fund 0 0 0 0 0 0 207,150 628,200 835,350 0 835,350 Revenue from the Federal Government 0 0 0 0 0 0 433,350 3,997,800 4,431,150 0 4,431,150 Total 0 0 0 0 0 0 640,500 4,626,000 5,266,500 0 5,266,500 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 0 0 0 0 4,626,000 4,626,000 0 4,626,000 Design 0 0 0 0 0 0 640,500 0 640,500 0 640,500 Total 0 0 0 0 0 0 640,500 4,626,000 5,266,500 0 5,266,500 Relationship to Comprehensive Plan Primary Connection Element: Land Use and Community Design Section: Airport Goal: L-10 Policy: L-10.1 Potential Board/Commission Review: Architectural Review Board Planning and Transportation Commission Environmental Impact Analysis: This project may be exempt from CEQA under Section 15301. AIRPORT FUND 312 AIRPORT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Airport Apron Reconstruction Airport Apron Reconstruction Description This project provides funding for the design and reconstruction of the Palo Alto Airport apron in multiple phases within the existing footprint. Justification The pavement surfaces at the airport are failing and uneven and the need to reconstruct the air- craft parking apron is critical to airport safety. The City conducted a Pavement Management Study in Fiscal Year 2015 to determine the pavement condition index (PCI) and to assist in prior- itization of pavement improvement projects. The average apron PCI value from the study was 36, which indicated a need for full pavement reconstruction. Supplemental Information This project is being implemented in multiple phases. Design commenced in FY 2016 and was completed in FY 2017. Construction began in FY 2018 and is expected to be complete in FY 2022. Construction of Phase I was completed in June 2018 and Phase II is anticipated to be completed in June 2019. FAA grants will fund 90 percent of design and construction costs while staff will pursue other funding opportunities to offset the City obligation for the remaining 10% where available. Additionally, the FAA will use the average apron PCI information to prioritize the Palo Alto Air- port against other airport applicants. Due to the condition of the airport infrastructure, staff anticipates the Palo Alto Airport will rank high in eligibility for grant funding of this project. Fund: Airport Enterprise Fund Category: Airport Apron, Runways, and Taxiways Project Location: 1925 Embarcadero Road Managing Department: Public Works Initial Project Start: Summer 2015 Initial Project Completion: Spring 2020 Revised Project Start: Revised Project Completion: Summer 2022 Project Number: AP-16000 Airport Apron, March 2019 AIRPORT FUND AIRPORT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 313 Significant Changes 2021-2025 CIP: Additional funding was added for construction to offset inflation of material prices and scope changing to meet new FAA subgrade treatment standards. A $2.0 million loan from the California Department of Transportation is anticipated to offset the City’s 10 percent matching portion of the cost to complete Phase III. 2020-2024 CIP: Funding for the Airport Apron Reconstruction project was scheduled in FY 2019 for Phase III in FY 2020 and Phase IV in FY 2021. Now, both phases of the project have been combined into Phase III, with the final year of construction in FY 2021. 2019-2023 CIP: The apron reconstruction costs substantially increased from the previous esti- mate of $18.0 million to $39.3 million. Budget estimates for the project increased to include all remaining phases of the project as well as reconstruction design changes, solar infrastructure, and construction escalation costs identified while constructing Phase I. 2018-2022 CIP: Due to the findings of a geotechnical study, the subgrade requires more stabili- zation. The FAA recognizing the safety implications, has agreed to accelerate funding to expe- dite pavement corrections. Funding of $17.3 million added to the project to account for the multiple phases of this project over the 5-year CIP. 2017-2021 CIP: Additional funding of $715,845 in Fiscal Year 2017 to complete Phase I. 2016-2020 CIP: Project established. Operating Impact This project will have operating expenses related to pavement maintenance for asphalt slurry seal estimated every five years. As these costs are quantified, adjustments will be brought for- ward in future budgets, as necessary. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Airport Fund 2,174,784 940,168 1,291,468 78,960 51,000 0 0 0 129,960 0 3,596,212 Revenue from the Federal Government 8,038,198 10,714,400 10,363,100 17,288,640 0 0 0 0 17,288,640 0 35,689,938 Revenue from the State of California 0 0 0 2,000,000 0 0 0 0 2,000,000 0 2,000,000 Total 10,212,982 11,654,568 11,654,568 19,367,600 51,000 0 0 0 19,418,600 0 41,286,150 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 11,705,094 11,652,541 11,654,568 19,367,600 51,000 0 0 0 19,418,600 0 42,778,262 Design 1,794,848 2,027 0 0 0 0 0 0 0 0 1,794,848 Total 13,499,942 11,654,568 11,654,568 19,367,600 51,000 0 0 0 19,418,600 0 44,573,110 AIRPORT FUND 314 AIRPORT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Relationship to Comprehensive Plan Primary Connection Element: Land Use and Community Design Section: Airport Goal: L-10 Policy: L-10.1 Potential Board/Commission Review: Architectural Review Board Planning and Transportation Commission Environmental Impact Analysis: This project may be exempt from CEQA under Section 15301. AIRPORT FUND 316 AIRPORT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Runway and Taxiway Reconstruction and Drainage Improvements Runway and Taxiway Reconstruction and Drainage Improvements Description This project will provide funding for the design and implementation of runway and taxiway reconstruction and drainage improvements for the Palo Alto Airport. Justification In 2015, the Airport Pavement Management Plan identified integrity deficiencies beyond the immediate safety concerns addressed in the Airport Apron Reconstruction project (AP-16000). This project will address the lower priority repairs and drainage improvements after the Airport Apron Reconstruction project is completed in Fall 2022. Significant Changes 2021-2025 CIP: The FAA is deferring grand funding for this project from Fiscal Year 2024 to Fis- cal Year 2026. This project is included in the FY 2021 - FY 2025 CIP to document and memori- alze the deferral of grant funding and the corresponding postponement of the project. 2020-2024 CIP: This CIP is pending FAA grant funding in Fiscal Year 2024. 2019-2023 CIP: The FAA is deferring grant funding for this project from Fiscal Year 2022 to Fis- cal Year 2024 to complete the Airport Apron Reconstruction project (AP-16000). Fund: Airport Enterprise Fund Category: Airport Apron, Runways, and Taxiways Project Location: 1925 Embarcadero Road Managing Department: Public Works Initial Project Start: Summer 2014 Initial Project Completion: Summer 2015 Revised Project Start: Summer 2025 Revised Project Completion: Summer 2026 Project Number: AP-22000 Runway and Taxiway, July 2017 AIRPORT FUND AIRPORT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 317 Funding Sources Schedule Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Airport Fund 0 0 0 0 0 0 0 0 0 463,950 463,950 Revenue from the Federal Government 0 0 0 0 0 0 0 0 0 4,175,550 4,175,550 Total 0 0 0 0 0 0 0 0 0 4,639,500 4,639,500 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 0 0 0 0 0 0 3,606,000 3,606,000 Design Total 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,033,500 4,639,500 1,033,500 4,639,500 Relationship to Comprehensive Plan Primary Connection Element: Land Use and Community Design Section: Airport Goal: L-10 Policy: L-10.1 Potential Board/Commission Review: Architectural Review Board Planning and Transportation Commission Environmental Impact Analysis: This project may be exempt from CEQA under Section 15301. AIRPORT FUND AIRPORT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 319 Airport Facilities AIRPORT FUND 320 AIRPORT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Airport Layout Plan Airport Layout Plan Description This project provides funding for an update to the Airport Layout Plan (ALP), including a narra- tive report and environmental study. Justification The ALP serves as a critical planning tool that depicts both existing facilities and planned devel- opment for an airport and is required by the FAA to ensure eligibility for the highest level of grant funding available for construction of safety and infrastructure improvements. A key objec- tive of airport planning is to assure the effective use of airport resources to satisfy aviation demand in a financially feasible manner. Additionally, the plan will include air traffic activity, noise contours, environmental documentation, and 20-year demand forecasts. Significant Changes 2021-2025 CIP: Funding increased due to revised engineer estimate. This project is dependent on FAA funding for Fiscal Year 2022. 2020-2024 CIP: Grant funding from the FAA was moved from Fiscal Year 2023 to Fiscal Year 2021. The anticipated increases in cost includes additional scope to complete a required air- space study identified by the FAA. 2019-2023 CIP: The FAA is deferring grant funding for this project from Fiscal Year 2021 to Fis- cal Year 2023 to complete the Airport Apron Reconstruction project (AP-16000). Fund: Airport Enterprise Fund Category: Airport Facilities Project Location: 1925 Embarcadero Road Managing Department: Public Works Initial Project Start: Fall 2021 Initial Project Completion: Summer 2022 Revised Project Start: Summer 2021 Revised Project Completion: Spring 2022 Project Number: AP-21000 Airport Layout, March 2019 AIRPORT FUND AIRPORT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 321 Operating Impact This project is not anticipated to impact operating costs in the future. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Airport Fund 0 0 0 0 165,500 30,000 0 0 195,500 0 195,500 Revenue from the Federal Government 0 0 0 0 544,500 0 0 0 544,500 0 544,500 Total 0 0 0 0 710,000 30,000 0 0 740,000 0 740,000 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Design 0 0 0 0 710,000 30,000 0 0 740,000 0 740,000 Total 0 0 0 0 710,000 30,000 0 0 740,000 0 740,000 Relationship to Comprehensive Plan Primary Connection Element: Land Use and Community Design Section: Airport Goal: L-10 Policy: L-10.1 Program: L10.1.2 Potential Board/Commission Review: Architectural Review Board Planning and Transportation Commission Environmental Impact Analysis: Requires Environmental Review AIRPORT FUND 322 AIRPORT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Automated Weather Observation System (AWOS) Automated Weather Observation System (AWOS) Description This project provides funding for a new weather information system to be installed at the Palo Alto Airport. Justification The FAA tower is staffed from 7:00am to 9:00pm and uses ceilometers, wind indicators, altime- ters, and known distances to communicate weather and visibility to users. The new Automated Weather Observation System (AWOS) will provide users more information about weather con- ditions, feed all weather services, and give present weather 24 hours a day, 7 days a week. Pro- viding users with accurate and up-to-date weather information is essential to the safe and economic operation of the airport. Significant Changes 2021-2025 CIP: Project funding was split between two phases: Phase I for design and Phase II for construction. 2020-2024 CIP: This project was moved from Fiscal Year 2024 to Fiscal Year 2022 by the FAA so that grant funding for 90 percent of the project cost will most likely be available. Design will begin in Fiscal Year 2022 and construction will begin in Fiscal Year 2023. 2019-2023 CIP: The FAA is deferring grant funding for this project from Fiscal Year 2019 to Fis- cal Year 2024 to complete the Airport Apron Reconstruction project (AP-16000). Fund: Airport Enterprise Fund Category: Airport Facilities Project Location: 1925 Embarcadero Road Managing Department: Public Works Initial Project Start: Fall 2019 Initial Project Completion: Summer 2020 Revised Project Start: Summer 2022 Revised Project Completion: Summer 2024 Project Number: AP-19000 Automated Weather Observation System, July 2017 AIRPORT FUND AIRPORT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 323 Operating Impact This project is anticipated to have annual operating expenses related to maintenance and certi- fication after project completion. These costs will be brought forward in future budgets, as nec- essary. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Airport Fund 0 0 0 0 18,800 177,650 20,000 0 216,450 0 216,450 Revenue from the Federal Government 0 0 0 0 79,200 311,850 0 0 391,050 0 391,050 Total 0 0 0 0 98,000 489,500 20,000 0 607,500 0 607,500 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 0 0 489,500 20,000 0 509,500 0 509,500 Design 0 0 0 0 98,000 0 0 0 98,000 0 98,000 Total 0 0 0 0 98,000 489,500 20,000 0 607,500 0 607,500 Relationship to Comprehensive Plan Primary Connection Element: Land Use and Community Design Section: Airport Goal: L-10 Policy: L-10.1 Potential Board/Commission Review: Architectural Review Board Planning and Transportation Commission Environmental Impact Analysis: May Require Environmental Review CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 325 ELECTRIC FUND ELECTRIC FUND 326 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET ELECTRIC FUND Overview The City of Palo Alto is the only municipality in California that operates a full suite of City- owned utility services. The municipal electric power system began operation in 1900 and con- tinues to provide safe, reliable, and cost effective electric service to residents and customers of Palo Alto. For the 2021-2025 Capital Improvement Program (CIP), approximately $99.5 million in expenses is projected, with $25.7 million budgeted in Fiscal Year 2021, of which $3.7 million is recommended to be reappropriated from Fiscal Year 2020. Overall, a total of 28 projects are planned over the 5-year CIP. Major projects funded in the 2021-2025 CIP include Foothills System Rebuild ($4.0 million), Substation 60kV Breaker Replacements ($3.0 million), Smart Grid Technology Installa- tion ($19.0 million), Electric Cus- tomer Connections ($13.5 million), total 4/12kV conversion projects ($5.2 million), Wood Pole Replacement ($7.5 million), Electric System Improvements ($12.5 million), various under- ground system rebuild projects ($7.8 million), and Overhead to Underground Conversion ($4.1 million). The budget for the Electric Fund CIP is categorized into three types of projects: Customer Connections, System Improvements, and Undergrounding Projects. Infrastructure Inventory CLASSIFICATION QUANTITY Miles of 60kV sub transmission lines 18 miles Substations (w/300 MVA total capacity)9 Traffic Signals (intersections) maintained 101 Streetlights maintained 6,600 Overhead Primary Distribution 116 miles Underground Primary Distribution 188 miles Overhead Secondary Distribution 93 miles Underground Secondary Distribution 75 miles $0 $4,000,000 $8,000,000 $12,000,000 $16,000,000 $20,000,000 $24,000,000 $28,000,000 2017Actuals FY 2019Actuals FY 2021Proposed FY 2023Projected FY 2025Projected Electric Fund Capital Expenditures ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 327 Customer Connections As customers’ electric power needs continually change due to equipment additions, new con- struction, building expansions, building remodels, teardowns and rebuilds, and new building occupancy types, the electric system must evolve to meet these needs. The Electric Customer Connections Project, which is one of the largest projects within the Electric Fund ($2.7 million in Fiscal Year 2021, $13.5 million over the 2021-2025 CIP), is accounted for within this category. Projects can range from new buildings associated with the Veterans Administration Hospital to residential electric panel upgrades. These projects allow for the completion of work required to meet the needs of customers who have applied for new or upgraded electric service, need tem- porary power for construction, or require other services. The Electric Fund pays for a portion of these projects, while remaining costs are supported by reimbursements from customers for project work performed by the City. Recent Accomplishments In Fiscal Year 2019 the Utilities Electric Division completed over 400 customer service projects with a total cost of $2.4 million and revenue of $1.7 million. Many projects in are progress with no major completions to report yet. 2021-2025 Capital Improvement Program Recurring Projects The Electric Customer Connections project discussed above is the only recurring project in this category. Actual costs vary year-over-year depending on activity levels. Non-Recurring Projects VA Hospital - Customer Load Requirements Project. This project has been reduced in scope and folded into the Electric Customer Connections project. Utilities is working with the VA on their plans and awaits a decision from VA on the interim electric feeder enhancement solution until the new 60kV VA substation is built. Electric Engineering has received close to 200 applications for small cell attachments to Elec- tric utility streetlight and wood poles. The Electric Utility has about 6,500 wood poles and 6,500 streetlight poles citywide, which are of interest to mobile phone companies. This trend of small cell applications is anticipated to rapidly increase in the next few years, which would increase both the workload and associated revenue in the Electric Customer Connections project. As these projects and associated costs solidify, they will be brought forward for consid- eration in future Capital Improvement Plans. System Improvements Key elements for ensuring reliable electric service to City of Palo Alto residents and customers include replacing electric system components before they reach their end of life; ensuring there is adequate capacity for the projected electric load; and installing protective equipment to min- imize the impact of system problems. Projects in the System Improvements category allow for a ELECTRIC FUND 328 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET variety of improvements, including the replacement/upgrade of old cables and equipment and bringing designs up to current standards, installation of protective equipment and switches, conversion of the electric system from 4,160 Volts (4kV) to 12,470 Volts (12kV), and installation of capacitors to improve efficiency. The 2021-2025 CIP includes total funding of $81.9 million in this category, with $23.0 million allo- cated in FY 2021. Significant projects in this category include Smart Grid Technology Installation ($19.0 million), 4/12kV conversion projects ($5.2 million), Electric System Improvements ($12.6 million), Wood Pole Replacements ($7.5 million), 60kV Circuit Breaker Replacements ($3.0 mil- lion), and various projects to rebuild underground districts and substation components. Recent Accomplishments Completed replacement of one of twenty-four 60kV circuit breaker. Physical installation of new line relays and relay cabinets for protection of Colorado Bank #2. Commissioning to occur in FY 2020. Completed other miscellaneous system improvement projects dealing with replacement of deteriorated facilities or to improve system operation and reliability. Completed phase II of Supervisory Control and Data Acquisition (SCADA) cybersecurity upgrade. Engineered replacement of 85 wood utility poles. Facility Relocation for Caltrain Modernization Project engineering is scheduled to be completed in end of 2020. 2021-2025 Capital Improvement Program Recurring Projects A total of $28.5 million is programmed for System Improvements recurring projects in the 2021- 2025 CIP, with $6.2 million allocated in Fiscal Year 2021. Recurring projects in this category include the following: Communication System Improvements (Fiscal Year 2021: $0.02 million; 5-Year CIP: $0.6 million) Electric Distribution System Improvements (Fiscal Year 2021: $2.5 million; 5-Year CIP: $12.5 million) Electric Utility Geographic Information System (Fiscal Year 2021: $0.2 million; 5-Year CIP: $0.8 million) SCADA System Upgrades (Fiscal Year 2021: $0.1 million; 5-Year CIP: $1.0 million) Substation Facility Improvements (Fiscal Year 2021: $0.7 million; 5-Year CIP: $2.0 million) Substation Protection Improvements (Fiscal Year 2021: $0.6 million; 5-Year CIP: $2.0 million) Underground System Rebuild (Fiscal Year 2021: $0.4 million; 5-Year CIP: $1.8 million) Wood Pole Replacements (Fiscal Year 2021: $1.5 million; 5-Year CIP: $7.5 million) ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 329 Non-Recurring Projects A total of $53.4 million is allocated in the 2021-2025 CIP for non-recurring System Improvement projects. Significant projects include: Rebuild Underground Districts: (Fiscal Year 2021: $03.9 million; 5-Year CIP: $7.8 million) Colorado/Hopkins System Improvement: (5-Year CIP: $3.0 million) Smart Grid Technology Installation: (Fiscal Year 2021: $5.0 million; 5-Year CIP: $19.0 million) Foothills Distribution System Rebuild (Fiscal Year 2021: $2.0 million; 5-year CIP: $4.0 million) Undergrounding Projects The City of Palo Alto began a program to underground overhead electric, telephone, and cable TV facilities in 1965 with a project along Oregon Expressway. Since that time, 47 Underground Districts have been formed. The undergrounding of electrical lines is a joint process between the City and AT&T, due to joint ownership of the poles, and Comcast, which leases pole space from AT&T. All three entities share in the cost of the installation of underground conduit and boxes necessary to enclose and protect wires and equipment. The City typically takes the lead in the design, bidding, and construction processes with AT&T and Comcast reimbursing the City for construction and administrative costs. Recent Accomplishments Underground District 46 – Design of the substructure installation is complete and installation of underground cables is in progress to facilitate conversion of the overhead lines portion near the intersection of El Camino Real and Arastradero Road/ West Charleston Road. Underground District 47 - ninety-nine percent of customers have completed the service conversions and connections to the underground system bound by Middlefield Road / Addision Avenue / Cowper Street / Homer Avenue. 2021-2025 Capital Improvement Program Non-Recurring Projects A total of $4.1 million is allocated in the 2021-2025 CIP for non-recurring Undergrounding proj- ects, with projects starting in FY 2022. Significant projects in this category include the follow- ing: Underground District 42 ($2.0 million), which will underground overhead utility facilities in the area near Embarcadero Road/Emerson Street/Middlefield Road. Underground District 43 ($2.1 million), which will underground overhead utility facilities in the area along Alma Street and Embarcadero Road. ELECTRIC FUND 330 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Summary of Capital Activity ELECTRIC FUND Project Number Project Title FY 2019 Actuals FY 2020 Estimate FY 2021 Proposed FY 2022 FY 2023 FY 2024 FY 2025 5-Year Total Source of Funds Transfers from Other Funds Gas Fund EL-11014 Smart Grid Technology Installation 180,000 0 0 0 0 0 800,000 800,000 Total Gas Fund Transfers 180,000 0 0 0 0 0 800,000 800,000 Water Fund EL-11014 Smart Grid Technology Installation 290,000 0 0 0 0 0 1,300,000 1,300,000 Total Water Fund Transfers 290,000 0 0 0 0 0 1,300,000 1,300,000 Total Transfers from Other Funds 470,000 0 0 0 0 0 2,100,000 2,100,000 Reimbursement from Customers, Telephone, and Cable Television Companies EL-89028 Electric Customer Connections 3,149,534 1,700,000 1,700,000 1,700,000 1,700,000 1,700,000 1,700,000 8,500,000 EL-08001 Underground District 42 - Embarcadero Road, Emerson, Middlefield 0 0 0 0 0 300,000 0 300,000 EL-11009 Underground District 43 - Alma/Embarcadero 0 0 0 0 300,000 0 0 300,000 EL-12001 Underground District 46 - Charleston/El Camino Real 319,257 0 0 0 0 0 0 0 EL-19004 Wood Pole Replacement 0 0 150,000 150,000 150,000 150,000 150,000 750,000 Reimbursement from Customers, Telephone, and Cable Television Companies Total 3,468,791 1,700,000 1,850,000 1,850,000 2,150,000 2,150,000 1,850,000 9,850,000 Total Sources 3,938,791 1,700,000 1,850,000 1,850,000 2,150,000 2,150,000 3,950,000 11,950,000 Use of Funds Customer Connections EL-89028 Electric Customer Connections 2,691,341 2,400,000 2,700,000 2,700,000 2,700,000 2,700,000 2,700,000 13,500,000 EL-17003 VA Hospital Customer Load Requirements 4,825 0 0 0 0 0 0 Customer Connections Total 2,696,166 2,400,000 2,700,000 2,700,000 2,700,000 2,700,000 2,700,000 13,500,000 System Improvements EL-06001 230 kV Electric Intertie 0 0 177,481 0 0 0 0 177,481 EL-16002 Capacitor Bank Installation 179,545 0 300,000 0 0 0 0 300,000 EL-14000 Coleridge/Cowper/Tennyson 4/12Kv Conversion 29,827 0 880,000 0 0 0 0 880,000 EL-19001 Colorado Power Station Equipment Upgrade 922,316 3,200,000 900,000 2,800,000 1,700,000 900,000 400,000 6,700,000 ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 331 EL-19002 Colorado Substation Improvements 16,360 50,000 340,000 340,000 240,000 0 0 920,000 EL-15000 Colorado/Hopkins System Improvement 0 0 0 0 2,000,000 1,000,000 0 3,000,000 EL-89031 Communications System Improvements 800,766 100,000 170,000 170,000 100,000 100,000 103,000 643,000 EL-17001 East Meadow Circles 4/12kV Conversion 37,709 0 166,000 0 0 0 0 166,000 EL-98003 Electric System Improvements 2,407,460 1,320,645 2,504,700 2,597,000 2,406,000 2,505,000 2,549,700 12,562,400 EL-02011 Electric Utility Geographic Information System 68,904 327,700 165,000 165,000 165,000 165,000 169,950 829,950 EL-17007 Facility Relocation for Caltrain Modernization Project 83,487 300,000 0 0 0 0 0 0 EL-21001 Foothills Rebuild (Fire Mitigation)0 0 2,000,000 2,000,000 0 0 0 4,000,000 EL-20000 Hopkins Substation 4/12kV Conversion 0 0 50,000 50,000 120,000 2,120,000 1,820,000 4,160,000 EL-17005 Inter-Substation Line Protection Relay 94,563 124,101 230,000 150,000 0 0 0 380,000 EL-14004 Maybell 1&2 4/12kV Conversion 52,417 0 0 0 0 0 0 0 EL-11003 Rebuild Underground District 15 6,844 0 1,169,609 0 0 0 0 1,169,609 EL-13003 Rebuild Underground District 16 3,270 0 699,667 0 0 0 0 699,667 EL-14002 Rebuild Underground District 20 0 50,000 0 0 0 1,400,000 100,000 1,500,000 EL-17000 Rebuild Underground District 23 0 0 214,000 0 0 1,100,000 0 1,314,000 EL-10006 Rebuild Underground District 24 156,277 579,651 0 0 0 0 0 0 EL-19000 Rebuild Underground District 25 9,266 0 0 0 0 0 0 0 EL-16000 Rebuild Underground District 26 3,469 0 1,845,500 0 0 0 0 1,845,500 EL-19003 Rebuild Underground District 30 0 0 0 0 50,000 1,200,000 0 1,250,000 EL-14005 Reconfigure Quarry Feeders 101,121 0 0 0 0 0 0 0 EL-02010 SCADA System Upgrades 63,805 180,000 135,000 380,000 140,000 175,000 178,900 1,008,900 EL-11014 Smart Grid Technology Installation 97,288 0 5,000,000 7,000,000 7,000,000 0 0 19,000,000 EL-17002 Substation 60kV Breaker Replacement 79,472 720,000 600,000 600,000 600,000 600,000 618,000 3,018,000 EL-89044 Substation Facility Improvements 375,144 348,332 740,000 450,000 400,000 200,000 206,000 1,996,000 EL-16003 Substation Physical Security 88,039 0 2,168,852 300,000 200,000 165,000 165,000 2,998,852 EL-89038 Substation Protection Improvements 690,592 80,000 620,000 480,000 300,000 300,000 309,000 2,009,000 EL-16001 Underground System Rebuild 22,478 350,000 400,000 350,000 350,000 350,000 360,500 1,810,500 EL-13008 Upgrade Estimating Software 23,148 0 0 0 0 0 0 0 EL-17008 Utility Control Center Upgrades 437,831 0 0 0 0 0 0 0 EL-04012 Utility Site Security Improvements 42,758 50,000 0 0 0 0 0 0 EL-19004 Wood Pole Replacement 26,395 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,545,000 7,545,000 System Improvements Total 6,920,551 9,280,429 22,975,809 19,332,000 17,271,000 13,780,000 8,525,050 81,883,859 Undergrounding Projects EL-08001 Underground District 42 - Embarcadero Road, Emerson, Middlefield 0 0 0 0 1,750,000 250,000 0 2,000,000 EL-11009 Underground District 43 - Alma/Embarcadero 0 0 0 56,000 2,000,000 0 0 2,056,000 Project Number Project Title FY 2019 Actuals FY 2020 Estimate FY 2021 Proposed FY 2022 FY 2023 FY 2024 FY 2025 5-Year Total ELECTRIC FUND 332 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET EL-12001 Underground District 46 - Charleston/El Camino Real 1,894,650 0 0 0 0 0 0 0 EL-11010 Underground District 47 - Middlefield/Homer/ Webster/Addison 25,365 0 0 0 0 0 0 0 Undergrounding Projects Total 1,920,015 0 0 56,000 3,750,000 250,000 0 4,056,000 Total Uses 11,536,732 11,680,429 25,675,809 22,088,000 23,721,000 16,730,000 11,225,050 99,439,859 Project Number Project Title FY 2019 Actuals FY 2020 Estimate FY 2021 Proposed FY 2022 FY 2023 FY 2024 FY 2025 5-Year Total ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 333 Customer Connections ELECTRIC FUND 334 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Electric Customer Connections Electric Customer Connections Description This project allows for the installation of services, transformers, meters for new customers, upgrades of existing services, temporary service connections, and overhead/underground extensions for new/existing customers. Justification The project provides funding for installing electric services for new customer connections and the upgrading existing services. These are critical functions for providing electrical service to the City's customers. During a typical year, over 200 electric services are installed or upgraded in the City. Supplemental Information Budget amounts requested for work covered by this project are based on historical expendi- tures and growth projections. The Electric Fund pays for a portion of this project while remain- ing costs are supported by reimbursements from customers, telephone, and cable television companies for project work performed by the City. Fund: Electric Fund Category: Customer Connections Project Location: Various locations Managing Department: Utilities Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: EL-89028 Electric Troubleman installing an electric meter to provide service to a customer Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund N/A 822,862 700,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 5,000,000 0 N/A Other N/A 1,700,000 1,700,000 1,700,000 1,700,000 1,700,000 1,700,000 1,700,000 8,500,000 0 N/A Total N/A 2,522,862 2,400,000 2,700,000 2,700,000 2,700,000 2,700,000 2,700,000 13,500,000 0 N/A ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 335 Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 2,522,862 2,400,000 2,700,000 2,700,000 2,700,000 2,700,000 2,700,000 13,500,000 0 N/A Total N/A 2,522,862 2,400,000 2,700,000 2,700,000 2,700,000 2,700,000 2,700,000 13,500,000 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-7 Policy: N-7.1 Potential Board/Commission Review: Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 337 System Improvements ELECTRIC FUND 338 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 230 kV Electric Intertie 230 kV Electric Intertie Description Funding for this project is used to perform technical feasibility studies to determine the general project requirements to establish another transmission line to the City of Palo Alto along a dif- ferent transmission corridor. The City’s discussions with Stanford University and Stanford Linear Accelerator Laboratory (SLAC), on sharing interest and benefits in a new 230 kV intertie have come to an end with the decision by Stanford to withdraw from the project. Staff is seeking funding for an alternative solution to provide a second transmission source to Palo Alto. Justification This transmission line will provide the City with an alternate source of power during emergen- cies, such as the plane crash in 2010 that impacted electric power to the entire City. Significant Changes 2021-2025 CIP: Stanford has withdrawn from the project. Staff will evaluate alternative solu- tions with PG&E/CAISO that will require new/updated technical feasibility studies. 2019-2023 CIP: The City presented its findings to Stanford and SLAC/DOE and is waiting for a response from SLAC to determine whether this project will move forward. 2017-2021 CIP: Project completion has been moved out as discussions with Stanford and SLAC/DOE are ongoing and no agreement has been finalized. Cooperation between these two entities is necessary for this project to move forward. Fund: Electric Fund Category: System Improvements Project Location: National Accelerator Laboratory Substation Managing Department: Utilities Initial Project Start: Spring 2013 Initial Project Completion: Fall 2015 Revised Project Start: Revised Project Completion: Winter 2020 Project Number: EL-06001 Possible electric substation connection point to existing 60 kV system ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 339 Operating Impact Projected net annual savings resulting from the interconnection fee reduction will be approxi- mately $2.0 million based on projected energy purchases and the price difference between 115 kV and 230 kV service as lower voltage services are more expensive than higher voltage ser- vices. This project is just for the technical feasibility studies; as the timeline for operating impacts becomes clearer recommendations will be included in future budgets. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund 262,564 177,481 0 177,481 0 0 0 0 177,481 0 440,045 Total 262,564 177,481 0 177,481 0 0 0 0 177,481 0 440,045 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 210,049 177,481 0 0 0 0 0 0 0 0 210,049 Design 52,510 0 0 177,481 0 0 0 0 177,481 0 229,991 Total 262,559 177,481 0 177,481 0 0 0 0 177,481 0 440,040 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-7 Policy: N-7.1 Potential Board/Commission Review: Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. ELECTRIC FUND 340 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Capacitor Bank Installation Capacitor Bank Installation Description The City of Palo Alto is required to maintain a power factor greater than 0.95 at its main supply point as part of its agreement with the Northern California Power Association. The power factor is the ratio of power drawn from the main supply and the power that it actually consumes. This project will install capacitor banks at electric substations and on distribution lines to ensure this requirement is met. Justification In recent years, the power factor, as measured at the service point from PG&E transmission lines, has dropped below the required 0.95 lagging amount. To raise the power factor to an amount above the required limit the Utilities Department will install up to 10 mega volt ampere reactive (MVAR) of capacitors at various locations on the electric system. With the installation of the capacitor bank, this project will increase the power factor to meet current requirements and maintain a sufficient power factor for the next 7 years. Significant Changes 2021-2025 CIP: Funding will allow for completion of the capacity installations to comply with NCPA member requirements. Installation is expected to be completed by Winter 2021. 2020-2024 CIP: Capacitor banks will be installed at Hanover, Hansen Way, Quarry Road and Park Boulevard Substations. Capacitor banks have been ordered, and installation is expected to be completed by fall 2019. Fund: Electric Fund Category: System Improvements Project Location: Electric Substation Managing Department: Utilities Initial Project Start: Fall 2014 Initial Project Completion: Spring 2016 Revised Project Start: Fall 2015 Revised Project Completion: Winter 2021 Project Number: EL-16002 Capacitor Bank ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 341 2019-2023 CIP: Staff has performed an analysis on where capacitors are needed to provide MVAR support to the system. This project has become a lower priority due to a decrease in the system electric load and staff shortages that have elevated other projects above this one. 2017-2021 CIP: Shifting project priorities have delayed the completion of this project. Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund 180,434 469,596 0 300,000 0 0 0 0 300,000 0 480,434 Total 180,434 469,596 0 300,000 0 0 0 0 300,000 0 480,434 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 180,252 469,596 0 300,000 0 0 0 0 300,000 0 480,252 Design 177 0 0 0 0 0 0 0 0 0 177 Total 180,429 469,596 0 300,000 0 0 0 0 300,000 0 480,429 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-7 Policy: N-7.1 Potential Board/Commission Review: Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. ELECTRIC FUND 342 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Coleridge/Cowper/Tennyson 4/12kV Conversion Coleridge/Cowper/Tennyson 4/12kV Conversion Description This project will convert the primary electric distribution system in the Coleridge/Cowper/Ten- nyson area from 4kV to 12kV. Justification Because of the difference in voltage, the 4kV and 12kV systems cannot be directly connected and used to back up one another. Due to prior conversions to 12kV in adjacent areas, this 4kV area needs to be converted to 12kV so that adequate circuit connections can be restored. This will allow customers to be switched from one circuit to another during normal or emergency conditions, improve operating flexibility of the system, and enhance service reliability to cus- tomers in this area. Converting to 12kV will eliminate the need to replace this equipment as it is not needed at that voltage level. Significant Changes 2021-2025 CIP: This project converts the primary electric distribution system in the Coleridge/ Cowper/Tennyson area from 4 kV to 12 kV. This project is a necessary precursor to work being planned for Colorado/Hopkins Substations. 2020-2024 CIP: The majority of the project funding is moving to FY 2020 to coordinate with other projects planned in conjunction with the Colorado/Hopkins System Improvements. Fund: Electric Fund Category: System Improvements Project Location: Coleridge/Cowper/Tennyson area Managing Department: Utilities Initial Project Start: Spring 2016 Initial Project Completion: Spring 2017 Revised Project Start: Spring 2019 Revised Project Completion: Winter 2022 Project Number: EL-14000 Overhead crews working on overhead lines ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 343 2019-2023 CIP: This project is a precursor to work being planned for Colorado/Hopkins System Improvements (EL-15000). The purpose of this project converts the primary electric distribution system in the Coleridge/Cowper/Tennyson area from 4kV to 12kV. The start date has been pushed out to coordinate with other projects planned in conjunction with the Colorado/Hop- kins System Improvements. Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund 29,827 930,000 0 880,000 0 0 0 0 880,000 0 909,827 Total 29,827 930,000 0 880,000 0 0 0 0 880,000 0 909,827 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 930,000 0 880,000 0 0 0 0 880,000 0 880,000 Design 29,826 0 0 0 0 0 0 0 0 0 29,826 Total 29,826 930,000 0 880,000 0 0 0 0 880,000 0 909,826 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-7 Policy: N-7.1 Potential Board/Commission Review: Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. ELECTRIC FUND 344 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Colorado Power Station Equipment Upgrades Colorado Power Station Equipment Upgrades Description This project will replace aging peripheral equipment used on the substation transformer banks at the Colorado Power Station. The Colorado Power Station is on the 115kV/60kV transmission side of the Colorado Substation, which transforms the electricity to a lower sub-transmission voltage that feeds the individual distribution stations around the city. Justification A project was done in 2015 to replace all the original primary and secondary bushings. With these preventative maintenance and operating practices, the transformers have a life expec- tancy well beyond the industry expectations; however, the condition of the auxiliary equipment is not as good. The tanks and radiators are rusty and the paint is chalky and faded, contributing to the breakdown of the steel. The transformers have many minor oil leaks around the radiator flanges, inspection covers and valve packings from old and compressed cork gaskets. The leaks are a potential environmental hazard if the oil migrates to the ground and into storm water. Additionally, wherever oil leaks out, water can seep in. This will eventually increase the moisture in the oil that could result in failure of the transformer. The temperature and level gauges show signs of long term UV exposure and the plastics have become brittle and cracked. Significant Changes 2021-2025 CIP Due to the discoveries made during replacement of transformer #2, staff is assessing the need and timing of the replacement of transformer #3 and the associated 115kV Fund: Electric Fund Category: System Improvements Project Location: Colorado Substation Managing Department: Utilities Initial Project Start: Fall 2018 Initial Project Completion: Fall 2019 Revised Project Start: Revised Project Completion: Spring 2027 Project Number: EL-19001 Colorado Power Substation ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 345 circuit breaker GCB-3. Funding requested in FY 2021 is considering the possibility of early replacement. 2020-2024 CIP The replacement of aging peripheral equipment at the Colorado Power Station has been reassigned to replacing the failed COP-2 transformer. The unexpected cost of replac- ing the failed transformer increased the project from $900,000 to $2,500,000. The aging peripheral equipment will be dealt with in a future year. Operating Impact There are no additional operating impacts anticipated from this project. Normal maintenance costs that will be absorbed within the available maintenance schedule and annual budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund 922,315 3,377,671 3,200,000 900,000 2,800,000 1,700,000 900,000 400,000 6,700,000 0 10,822,315 Total 922,315 3,377,671 3,200,000 900,000 2,800,000 1,700,000 900,000 400,000 6,700,000 0 10,822,315 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 922,313 3,377,671 3,200,000 900,000 2,800,000 1,700,000 900,000 400,000 6,700,000 0 10,822,313 Total 922,313 3,377,671 3,200,000 900,000 2,800,000 1,700,000 900,000 400,000 6,700,000 0 10,822,313 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-7 Policy: N-7.3 Potential Board/Commission Review: Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. ELECTRIC FUND 346 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Colorado Substation Site Improvements Colorado Substation Site Improvements Description 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 and build concrete barri- ers between transformers #1 and #3. Justification The Colorado Power Station (COP) site contains three large utility power transformers. It also contains the 60kV main bus that forms the backbone of the 60kV loop throughout the City. COP transformers #1 and #3 are situated near each other where catastrophic failure of one transformer can damage the other. In addition to the existing electrical protection systems a barrier between the two transformers reduces the damage risk to these assets. Significant Changes 2021-2025 CIP: This is an ongoing project over several years to improve the accessibility in the substation for trucks and other machinery. Work will be planned in conjunction with work under EL-16003, Substation Physical Security. 2019-2023 CIP: Project established. Fund: Electric Fund Category: System Improvements Project Location: Colorado Substation Managing Department: Utilities Initial Project Start: Fall 2018 Initial Project Completion: Summer 2020 Revised Project Start: Fall 2021 Revised Project Completion: Spring 2023 Project Number: EL-19002 Colorado Electric Substation Driveway ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 347 Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund 16,359 475,780 50,000 340,000 340,000 240,000 0 0 920,000 0 986,359 Total 16,359 475,780 50,000 340,000 340,000 240,000 0 0 920,000 0 986,359 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 16,358 475,780 50,000 340,000 340,000 240,000 0 0 920,000 0 986,358 Total 16,358 475,780 50,000 340,000 340,000 240,000 0 0 920,000 0 986,358 Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.2 Relationship to Comprehensive Plan Secondary Connection Element: Land Use and Community Design Section: Public Streets and Public Spaces Goal: L-9 Policy: L-9.11 Potential Board/Commission Review: Architectural Review Board Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. ELECTRIC FUND 348 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Colorado/Hopkins System Improvement Colorado/Hopkins System Improvement Description This project will replace deteriorating equipment, which will increase system capacity and improve service reliability for the areas served by the Hopkins and Colorado substations and adjacent substations. Justification Transformers at both the Hopkins and Colorado Substations are near the end of their useful life, along with much of the other equipment at Hopkins. Hopkins is a 4kV substation and has no connections to other substations, so there is no backup to serve customers should there be a catastrophic problem at that substation. Supplemental Information Improvements are necessary to serve future electrical load projections and provide backup ser- vice to Hopkins. This project will evaluate solutions to best solve the multitude of issues facing these substations, such as how best to accommodate the replacement of this equipment, how best to provide backup power to the Downtown University Avenue area, and how best to ensure adequate capacity for the area considering load increase around the Stanford Hospital area. Significant Changes 2021-2025 CIP: This project is contingent on completion of other work in the area to convert the 4kV distribution system to 12kV. Fund: Electric Fund Category: System Improvements Project Location: Hopkins and Colorodo Substations Managing Department: Utilities Initial Project Start: Spring 2015 Initial Project Completion: Spring 2018 Revised Project Start: Spring 2023 Revised Project Completion: Summer 2024 Project Number: EL-15000 Electric Substation ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 349 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. 2020-2024 CIP: The revised project total of $3.0 million includes the complete demolition of 4kV equipment at Hopkins Substation and rebuild with new 12kV equipment. The project is still in the planning phase and staff will return to Council once the design is complete. 2019-2023 CIP: Staff has completed the initial cost/benefit analysis to assess various alterna- tives to meet distribution system needs and increased the budget accordingly. 2018-2022 CIP: Revised load projections associated with new loads in the Stanford Hospital area and has necessitated adjustment to the project plans. Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund 0 0 0 0 0 2,000,000 1,000,000 0 3,000,000 0 3,000,000 Total 0 0 0 0 0 2,000,000 1,000,000 0 3,000,000 0 3,000,000 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 0 0 2,000,000 1,000,000 0 3,000,000 0 3,000,000 Total 0 0 0 0 0 2,000,000 1,000,000 0 3,000,000 0 3,000,000 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-7 Policy: N-7.1 Potential Board/Commission Review: Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. ELECTRIC FUND 350 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Communications System Improvements Communications System Improvements Description This project installs copper wire cable systems, high frequency coaxial cable, fiber optic cable, and related equipment to provide communications services for traffic signal coordination, tele- phone links, computer data transmission, and the Electric Supervisory Control and Data Acqui- sition (SCADA) system. Justification Installation of communication lines is essential for the provision of City services. The broadband system provides communication between the Utility Control Center to substations and field equipment and between substation protection equipment. This annual project funds, as neces- sary, expansion of the system and replacement of deteriorating facilities. Fund: Electric Fund Category: System Improvements Project Location: Various locations Managing Department: Utilities Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: EL-89031 Traffic/Fiber technicians repairing the city fiber optic cables Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund N/A 100,001 100,000 170,000 170,000 100,000 100,000 103,000 643,000 0 N/A Total N/A 100,001 100,000 170,000 170,000 100,000 100,000 103,000 643,000 0 N/A ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 351 Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 100,000 100,000 170,000 170,000 100,000 100,000 103,000 643,000 0 N/A Total N/A 100,000 100,000 170,000 170,000 100,000 100,000 103,000 643,000 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-7 Policy: N-7.1 Potential Board/Commission Review: Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302 ELECTRIC FUND 352 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET East Meadow Circles 4/12kV Conversion East Meadow Circles 4/12kV Conversion Description This project will convert the primary electric distribution system in the East Charleston/Alma Street/East Meadow Drive/Middlefield Road area from 4kV to 12kV. Justification Because of the difference in voltage, the 4kV and 12kV systems cannot be directly connected and used to back up one another. Due to prior 12kV conversions in adjacent areas, this 4kV area needs to be converted to 12kV so that adequate circuit connections can be restored. This will allow customers to be switched from one circuit to another during normal or emergency condi- tions, and improve operating flexibility of the system and service reliability to customers in this area. Converting to 12kV will eliminate the need to replace this equipment as it is not needed at that voltage level. Significant Changes 2021-2025 CIP: Project design is in progress and additional funding is requested to facilitate construction. 2019-2023 CIP: The project converts the primary electric distribution system in the East Charleston/Alma Street/East Meadow Drive/Middlefield Road area from 4kV to 12kV. This proj- ect is in the preliminary stages of assessment for engineering design and is being reevaluated to determine the scope of work that should be involved. Issues with replacing the rear-easement Fund: Electric Fund Category: System Improvements Project Location: East Charleston/Alma Street/East Meadow Drive/Middlefield Road area Managing Department: Utilities Initial Project Start: Summer 2017 Initial Project Completion: Spring 2018 Revised Project Start: Fall 2021 Revised Project Completion: Spring 2022 Project Number: EL-17001 Electric Lineperson working on utility pole ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 353 facilities may dictate a change in direction of the project scope. Project funding has been decreased by $0.9 million and pushed out. 2017-2021 CIP: Project established. Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund 38,704 800,000 0 166,000 0 0 0 0 166,000 0 204,704 Total 38,704 800,000 0 166,000 0 0 0 0 166,000 0 204,704 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 795 800,000 0 166,000 0 0 0 0 166,000 0 166,795 Design 37,906 0 0 0 0 0 0 0 0 0 37,906 Total 38,701 800,000 0 166,000 0 0 0 0 166,000 0 204,701 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-7 Policy: N-7.1 Potential Board/Commission Review: Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. ELECTRIC FUND 354 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Edgewood/Wildwood 4kV Tie Edgewood/Wildwood 4kV Tie Description This project will install new overhead wires to connect the Hopkins electric feeders #3 (HO-3) and #7 (HO-7) in the Edgewood/Wildwood area. Justification Because of the voltage difference, the 4kV and 12kV systems cannot be directly connected and provide redundancy. When the East Meadow 4kV feeders are converted to 12kV (EL-17001), the 4kV back-up connections from East Meadow to Hopkins substations will be eliminated. In order to maintain reliable service in the event of a feeder outage at the Hopkins Substation, this proj- ect will construct a tie between the HO-3 and HO-7 feeders. Significant Changes 2021-2025 CIP: This project has been cancelled and the proposed work will be incorporated into EL-20000, phases 3 and 4. Project displayed here to memorialize the project cancellation. 2019-2023 CIP: The project has shifted to begin in Fiscal Year 2021 after completion of project EL-17001. Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Fund: Electric Fund Category: System Improvements Project Location: Edgewood/Wildwood area Managing Department: Utilities Initial Project Start: Spring 2016 Initial Project Completion: Spring 2017 Revised Project Start: N/A Revised Project Completion: N/A Project Number: EL-13000 Electric linemen working on overhead electric connection ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 355 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-7 Policy: N-7.1 Potential Board/Commission Review: Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. ELECTRIC FUND 356 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Electric System Improvements Electric System Improvements Description This project provides funding, as needed, to improve the Electric Distribution System. Typical activities include: increasing system capacity for load growth, replacing deteriorated capital facilities, reconfiguring/adding to the system to improve service reliability, repairing and replac- ing storm damaged equipment, and making general improvements to the system. Justification Electric system service reliability and adequate system capacity are critical to providing a high level of service to customers in Palo Alto. When service interruptions occur, customers may experience significant economic losses. The City must continuously evaluate service reliability needs and make improvements to the system to maintain top-level service to City customers. Supplemental Information Other funding sources include reimbursements from the telephone company for work per- formed on their behalf by City staff. Significant Changes 2021-2025 CIP: Additional funding is requested to fund additional service reliability work and SF6 switch replacements. Fund: Electric Fund Category: System Improvements Project Location: Various locations Managing Department: Utilities Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: EL-98003 Electric crews working in an underground vault terminating cables ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 357 Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund N/A 1,725,749 1,320,645 2,504,700 2,597,000 2,406,000 2,505,000 2,549,700 12,562,400 0 N/A Total N/A 1,725,749 1,320,645 2,504,700 2,597,000 2,406,000 2,505,000 2,549,700 12,562,400 0 N/A Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 1,725,749 1,320,645 2,504,700 2,597,000 2,406,000 2,505,000 2,549,700 12,562,400 0 N/A Total N/A 1,725,749 1,320,645 2,504,700 2,597,000 2,406,000 2,505,000 2,549,700 12,562,400 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-7 Policy: N-7.1 Potential Board/Commission Review: Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. ELECTRIC FUND 358 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Electric Utility Geographic Information System Electric Utility Geographic Information System Description This project will enhance the citywide Geographical Information System (GIS). The primary emphasis will be to provide a compatible user interface and estimating software to edit and update data, which will reside in the citywide GIS. The project includes the migration of the existing electric and fiber networks to a unified mapping solution compatible with the citywide GIS. Justification GIS has grown from being a set of special purpose computer applications to being an informa- tion tool that serves all segments of the City. Applications have been developed that make GIS information accessible to hundreds of users, which has greatly increased the value of the sys- tem. Funding in the CIP is for ongoing mapping system modifications to facilitate technical requirements, external contractor system support, anticipated system upgrades, and to meet future needs and facilitate integration to the new citywide GIS. This could include recommenda- tions for upgrade or replacement of existing systems. Significant Changes 2021-2025 CIP: In conjunction with the City effort to convert the city’s GIS data from GIST (Geodesy) to an Esri Mapping platform, Electric Engineering will begin investigating the transi- tion of the electric information to Esri. This transition will eventually support other utility appli- cations, such as the Outage Management System, System Restoration practices, customer notifications, and system modeling and analysis. Fund: Electric Fund Category: System Improvements Project Location: Various locations Managing Department: Utilities Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: EL-02011 View of City of Palo Alto GIS System ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 359 2020-2024 CIP: The City will move to a new GIS platform, Esri, in FY 2020. Annual funding will support Electric's portion of the implementation and ongoing support of the new GIS system. Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund N/A 378,306 327,700 165,000 165,000 165,000 165,000 169,950 829,950 0 N/A Total N/A 378,306 327,700 165,000 165,000 165,000 165,000 169,950 829,950 0 N/A Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 378,306 327,700 165,000 165,000 165,000 165,000 169,950 829,950 0 N/A Total N/A 378,306 327,700 165,000 165,000 165,000 165,000 169,950 829,950 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Efficient and Effective Service Delivery Goal: C-1 Policy: C-1.3 Potential Board/Commission Review: Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. ELECTRIC FUND 360 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Foothills Rebuild (Fire Mitigation) Foothills Rebuild (Fire Mitigation) Description Devastating wildfires throughout the State of California have prompted electric utilities throughout the state to identify areas within their jurisdiction that are susceptible to power-line ignited wildfires and to take steps to prevent their occurrence. This project proposes to rebuild the approximately 11 miles of overhead line, as necessary to mit- igate the possibility of a wildfire due to overhead electric lines. This could include: utilization of more robust equipment or construction practices; rerouting to avoid vegetation and improve access for inspection and maintenance; or converting the overhead lines to underground where feasible. Justification At the direction of the CPUC all electric Utilities in the state of California were required to review their service territories and determine areas that may be susceptible to wildfire that should be considered for inclusion on statewide Fire Threat Map. CPAU, with the assistance of a Fire Sci- ence Consultant, determined that the area within our service territory west of 280 had an "Ele- vated Risk" (categories: Moderate, Elevated, Extreme) of wildfire, requiring more stringent construction, inspection, and vegetation management requirements. Subsequent state legislation required all utilities to prepare Wildfire Mitigation Plans outlining the processes and procedures CPAU will undertake to mitigate the threat of wildfires associated with overhead electric lines and equipment. In 2011 CPAU hired a consultant to perform a hazard risk assessment to assess natural and man made hazard risks associated with Utilities depart- ment assets, focusing on risk exposure and financial responsibility. Of all of the hazards evalu- ated, wildfire due to wind and in the foothills posed the highest financial risk. Fund: Electric Fund Category: System Improvements Project Location: Foothills Managing Department: Utilities Initial Project Start: Summer 2020 Initial Project Completion: Fall 2022 Revised Project Start: Revised Project Completion: Project Number: EL-21001 Overhead electric lines in Foothills Park ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 361 Supplemental Information This project proposes to solicit a design/build contractor to rebuild/relocate/replace the over- head portions of the CPAU electric system serving customers in the High Fire Threat areas of Palo Alto to reduce the probability of a wildfire caused by overhead electric facilities. CPAU will solicit bids from qualified engineering/construction contractors to design, engineer, and con- struct a 12kV electric distribution line to replace, reinforce, reroute, and in some places expand, the existing city-owned overhead electric and fiber optic lines in the Foothills in Palo Alto. Design and construction will be performed in several phases, starting with the upper portion of the 12 kV line, including a new fiber optic cable installation between two CPAU water reservoirs and working down the hill. The estimated cost of this project is assuming replacement of the existing overhead system with overhead facilities in the same locations. Relocation or undergrounding of the lines will increase this cost but the amount will not be known until we start a design process with the contractor. Significant Changes 2021-2025 CIP: Project established. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund 0 0 0 2,000,000 2,000,000 0 0 0 4,000,000 0 4,000,000 Total 0 0 0 2,000,000 2,000,000 0 0 0 4,000,000 0 4,000,000 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 2,000,000 2,000,000 0 0 0 4,000,000 0 4,000,000 Total 0 0 0 2,000,000 2,000,000 0 0 0 4,000,000 0 4,000,000 Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual oper- ating budget. ELECTRIC FUND 362 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Relationship to Comprehensive Plan Primary Connection Element: Safety Section: Natural Hazards Goal: S-2 Policy: S-2.13 Program: S1.3.1 Relationship to Comprehensive Plan Secondary Connection: Element: Natural Environment Section: Open Space Goal: N-1 Policy: N-1.1 Potential Board/Commission Review: Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under section 15302. ELECTRIC FUND 364 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Hopkins Substation 4/12kV Conversion Hopkins Substation 4/12kV Conversion Description This project will fund the conversion of the distribution system connected to the Hopkins Sub- station from 4kV to 12kV. Justification The future conversion of the Hopkins Substation from 4kV to 12kV requires that all the areas currently served at 4kV from the Hopkins Substation be converted to 12kV. This project will improve operating flexibility of the system, service reliability, and back-up to customers in downtown and other adjacent areas. Supplemental Information This project will be completed in the following seven phases, (schedule subject to change): FY 2024 - 1) Louis/California/Middlefield/Moreno and 2) Louis/Oregon/Embarcadero/St. Fran- cis FY 2025 - 3) St. Francis/Oregon/Amarillo/Louis; 4) Channing/Edgewood/Jackson/Greer; and 5) Channing/Embarcadero/Newell/Greer FY 2026 - 6) Channing/Center/Dana and 7) Channing/Embarcadero/Melville/Newell Significant Changes 2021-2025 CIP: This project has been deferred until related work in the area is completed. Fund: Electric Fund Category: System Improvements Project Location: Louis/Oregon/Embarcadero/St Francis Managing Department: Utilities Initial Project Start: Fall 2019 Initial Project Completion: Spring 2023 Revised Project Start: Spring 2022 Revised Project Completion: Fall 2026 Project Number: EL-20000 Garland Drive ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 365 2019-2023 CIP: Project established. Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund 0 0 0 50,000 50,000 120,000 2,120,000 1,820,000 4,160,000 0 4,160,000 Total 0 0 0 50,000 50,000 120,000 2,120,000 1,820,000 4,160,000 0 4,160,000 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 0 0 120,000 2,120,000 1,820,000 4,060,000 0 4,060,000 Design 0 0 0 50,000 50,000 0 0 0 100,000 0 100,000 Total 0 0 0 50,000 50,000 120,000 2,120,000 1,820,000 4,160,000 0 4,160,000 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-7 Policy: N-7.1 Potential Board/Commission Review: Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. ELECTRIC FUND 366 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Inter-substation Line Protection Relay Inter-substation Line Protection Relay Description This project funds the replacement of existing wire relays with new microprocessor-based line differential protective relays to protect the City’s 60kV sub-transmission line sections and equipment from damage due to faults (i.e. short circuits) on the 60kV line sections. Justification The existing electro-mechanical wire differential relays are approaching the end of their useful life and rely on a copper pilot wire cable system running between each substation to maintain communication between the relay pairs located at the ends of each 60kV line section. These pilot wire cables have aged significantly and are the source of repeated failures due to corrosion in connections and splices, which cause open circuits, particularly during the rainy season. During these periods of interrupted pilot wire communication, the existing pilot wire relays do not provide adequate back-up protection, putting the City at risk of an outage should a fault occur on the 60kV line section. Significant Changes 2020-2024 CIP: Project title change from HCB Pilot Wire Replay Replacement to Inter-substa- tion Line Protection Relay. The scope and funding for the project have increased as staff has determined that replacing the entire 60kV protection system is the best way to ensure reliable service. 2019-2023 CIP: Staff completed the relay replacements between Quarry and Hopkins Substa- tions, installation of fiber optic communication cables between Colorado, Maybell, East Meadow Fund: Electric Fund Category: System Improvements Project Location: Various locations Managing Department: Utilities Initial Project Start: Summer 2017 Initial Project Completion: Spring 2019 Revised Project Start: Winter 2019 Revised Project Completion: Summer 2022 Project Number: EL-17005 Aging electric equipment ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 367 and Adobe Creek Substations, and is now working on installation of the relays at Maybell and East Meadow and placing them in service. 2017-2021 CIP: Project established. Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund 305,121 215,928 124,101 230,000 150,000 0 0 0 380,000 0 809,222 Total 305,121 215,928 124,101 230,000 150,000 0 0 0 380,000 0 809,222 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 244,088 130,927 124,101 230,000 150,000 0 0 0 380,000 0 748,189 Design 61,015 85,001 0 0 0 0 0 0 0 0 61,015 Total 305,103 215,928 124,101 230,000 150,000 0 0 0 380,000 0 809,204 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-7 Policy: N-7.1 Potential Board/Commission Review: Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. ELECTRIC FUND 368 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Rebuild Underground District 15 Rebuild Underground District 15 Description This project will rebuild and replace the underground electric system in Underground District 15. The area is bounded by Los Palos, Glenbrook, Pomona, and Arastradero. Work will include the replacement of deteriorated electrical cables, transformers and enclosures. Installation of new equipment will bring the electrical system up to current construction standards. Justification The underground system serving Underground District 15 was installed in 1973. The cables and equipment in the area have exceeded their expected life of 30 years. In addition, most of the equipment and cables were installed in subsurface enclosures that have standing water in win- ter. The water reduces the life of the equipment and electrical connections and requires the rebuilding of the facilities. Significant Changes 2021-2025 CIP: The project has been delayed to facilitate a request from residents to place the transformer below ground. Staff is working on the added cost to residents and will prepare an agreement. The project is planned for construction in FY 2021, and will be combined with the work in EL-13003 and El-16000 in a single bid package to solicit a construction contractor. 2020-2024 CIP: Work on this project has been delayed due to public input regarding the design of the project. 2019-2023 CIP: This project rebuilds and replaces the underground electric system in Under- ground District 15, the area bounded by Los Palos, Glenbrook, Pomona, and Arastradero. This project is in the preliminary stages of assessment for engineering design and work will be coor- Fund: Electric Fund Category: System Improvements Project Location: Area bounded by Los Palos, Glenbrook, Pomona, and Arastradero Managing Department: Utilities Initial Project Start: Spring 2010 Initial Project Completion: Summer 2012 Revised Project Start: Spring 2018 Revised Project Completion: Winter 2022 Project Number: EL-11003 Underground transformer and cable after years of service ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 369 dinated with Rebuild Underground District 26 (EL-16000) which is rebuilding the electric sys- tem along Arastradero Road. Work on this project has been delayed due to staffing shortages. 2017-2021 CIP: Shifting project priorities and the loss of Engineering staff have delayed the completion of this project. Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund 43,345 459,609 0 1,169,609 0 0 0 0 1,169,609 0 1,212,954 Total 43,345 459,609 0 1,169,609 0 0 0 0 1,169,609 0 1,212,954 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 34,513 419,609 0 1,169,609 0 0 0 0 1,169,609 0 1,204,122 Design 8,824 40,000 0 0 0 0 0 0 0 0 8,824 Total 43,337 459,609 0 1,169,609 0 0 0 0 1,169,609 0 1,212,946 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-7 Policy: N-7.1 Potential Board/Commission Review: Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. ELECTRIC FUND 370 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Rebuild Underground District 16 Rebuild Underground District 16 Description This project will rebuild and replace the underground electric system in Underground District 16. The area is located along Louis Road between Greer Street and Loma Verde Avenue. Work will include the replacement of deteriorated electrical cables, transformers, and enclosures. Installa- tion of new equipment will bring the electrical system up to current construction standards. Justification The underground system serving Underground District 16 was installed in 1974, and cables and equipment in the area have exceeded their expected life of 30 years. In addition, most of the equipment and cables were installed in subsurface enclosures that have standing water in them in the winter. The water reduces the life of the equipment and electrical connections and requires the rebuilding of the facilities. Significant Changes 2021-2025 CIP: Design engineering is underway and project construction will be combined with the work for EL-11003 and EL-16000 in a single bid package to solicit a construction contractor. 2020-2024 CIP: Work on this project has been delayed as Staff continues with the process of receiving public input regarding the design of the project. 2019-2023 CIP: This project is in the preliminary stages of assessment for engineering design and work will be coordinated with Rebuild Underground District 26 (EL-16000), which is rebuilding the electric system along Arastradero Road. Funding has increased to reflect market prices and moved to FY 2019. Fund: Electric Fund Category: System Improvements Project Location: Louis Road between Greer Street and Loma Verde Avenue Managing Department: Utilities Initial Project Start: Winter 2016 Initial Project Completion: Spring 2018 Revised Project Start: Spring 2019 Revised Project Completion: Winter 2022 Project Number: EL-13003 Electric crews installing new underground cables ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 371 Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund 10,857 387,667 0 699,667 0 0 0 0 699,667 0 710,524 Total 10,857 387,667 0 699,667 0 0 0 0 699,667 0 710,524 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 6,069 387,667 0 699,667 0 0 0 0 699,667 0 705,736 Design 4,785 0 0 0 0 0 0 0 0 0 4,785 Total 10,854 387,667 0 699,667 0 0 0 0 699,667 0 710,521 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-7 Policy: N-7.1 Potential Board/Commission Review: Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. ELECTRIC FUND 372 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Rebuild Underground District 20 Rebuild Underground District 20 Description This project will rebuild and replace the underground electric system in Underground District 20. Work will include the replacement of deteriorated electrical cables, transformers, and enclo- sures. Installation of new equipment will bring the electrical system up to current construction standards. Justification The underground system serving Underground District 20 was installed in 1979, and cables and equipment in the area have exceeded their expected life of 30 years. In addition, most of the equipment and cables were installed in subsurface enclosures that have standing water during winter. The water reduces the life of the equipment and electrical connections and requires the rebuilding of the facilities. Significant Changes 2021-2025 CIP: This project has been deferred to later years due to delays in completing related work in the area. 2019-2023 CIP: This project rebuilds and replaces the underground electric system in Under- ground 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. Fund: Electric Fund Category: System Improvements Project Location: Channing Avenue; Center Street; Hamilton Avenue; and Lincoln Avenue Managing Department: Utilities Initial Project Start: Winter 2017 Initial Project Completion: Spring 2018 Revised Project Start: Spring 2020 Revised Project Completion: Spring 2024 Project Number: EL-14002 Utility Engineer planning out the next underground rebuild project ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 373 Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund 9,968 50,000 50,000 0 0 0 1,400,000 100,000 1,500,000 0 1,559,968 Total 9,968 50,000 50,000 0 0 0 1,400,000 100,000 1,500,000 0 1,559,968 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 7,974 50,000 50,000 0 0 0 1,400,000 100,000 1,500,000 0 1,557,974 Design 1,991 0 0 0 0 0 0 0 0 0 1,991 Total 9,965 50,000 50,000 0 0 0 1,400,000 100,000 1,500,000 0 1,559,965 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-7 Policy: N-7.1 Potential Board/Commission Review: Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. ELECTRIC FUND 374 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Rebuild Underground District 23 Rebuild Underground District 23 Description This project will rebuild and replace the underground electric system in the area of the City bounded by Hamilton Avenue, San Francisquito Creek, Southwood Drive, and Chaucer Street. Work will include the replacement of deteriorated electrical cables, transformers, switches and enclosures. Justification The underground electric distribution system in the area bounded by Hamilton Avenue, San Francisquito Creek, Southwood Drive, and Chaucer Street was installed in 1983. Typical under- ground cable and equipment expected life is approximately 30 years in ideal conditions and now needs to be replaced. Installation of new equipment will bring the electrical system up to current construction standards. Significant Changes 2021-2025 CIP: This project has been deferred to later years due to delays in completing related work in the area. 2020-2024 CIP: The budget has increased $600,000 to account for increased substructure work and construction costs. 2019-2023 CIP: This project rebuilds and replaces the underground electric system in the area bounded by Chaucer Street, San Francisquito Creek, Hamilton Avenue, and Southwood Drive. This project is in the preliminary stages of assessment for engineering design. 2017-2021 CIP: Project established. Fund: Electric Fund Category: System Improvements Project Location: Hamilton Avenue, San Francisquito Creek, Southwood Drive and Chaucer Street Managing Department: Utilities Initial Project Start: Fall 2016 Initial Project Completion: Summer 2019 Revised Project Start: Spring 2021 Revised Project Completion: Spring 2024 Project Number: EL-17000 Electric underground cable vault ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 375 Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund 0 164,000 0 214,000 0 0 1,100,000 0 1,314,000 0 1,314,000 Total 0 164,000 0 214,000 0 0 1,100,000 0 1,314,000 0 1,314,000 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 164,000 0 214,000 0 0 1,100,000 0 1,314,000 0 1,314,000 Total 0 164,000 0 214,000 0 0 1,100,000 0 1,314,000 0 1,314,000 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-7 Policy: N-7.1 Potential Board/Commission Review: Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. ELECTRIC FUND 376 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Rebuild Underground District 26 Rebuild Underground District 26 Description This project will rebuild and replace the underground electric system in Underground District 26. Work will include the replacement of deteriorated electrical cables, transformers, switches, and enclosures. Installation of new equipment will bring the electrical system up to current con- struction standards. Justification The electric system included in the scope of work of Underground District 26 was installed in 1984. Underground District 26 includes Arastradero Road between El Camino Real and Hillview Avenue. The cables are nearing the end of their expected life of 30 years and the fused switches that were installed at that time have operation issues and need to be replaced. In addition, most of the other equipment (transfomers, junctions, etc.) were installed in subsurface enclosures that have standing water, garden chemicals, oil, and other corrosive materials that impact equipment life. Significant Changes 2021-2025 CIP: Design engineering is underway and project construction will be combined with the work for EL-11003 and EL-13003 in a single bid package to solicit a construction contractor. 2019-2023 CIP: This project is in the preliminary stages of assessment for engineering design and will be designed in conjunction with the Underground District 15 project, which is rebuilding the electric system on Los Palos/Glenbrook/Pomona area. 2017-2021 CIP: Shifting project priorities and turnover of engineering staff have caused the delay for the completion of this project. Fund: Electric Fund Category: System Improvements Project Location: Arastradero Road between El Camino Real and Hillview Avenue Managing Department: Utilities Initial Project Start: Spring 2016 Initial Project Completion: Spring 2016 Revised Project Start: Spring 2019 Revised Project Completion: Winter 2022 Project Number: EL-16000 Arastradero Road (part of Underground District 26) ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 377 Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund 4,798 307,458 0 1,845,500 0 0 0 0 1,845,500 0 1,850,298 Total 4,798 307,458 0 1,845,500 0 0 0 0 1,845,500 0 1,850,298 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 3,837 194,000 0 0 0 0 0 0 0 0 3,837 Design 957 113,458 0 1,845,500 0 0 0 0 1,845,500 0 1,846,457 Total 4,794 307,458 0 1,845,500 0 0 0 0 1,845,500 0 1,850,294 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-7 Policy: N-7.1 Potential Board/Commission Review: Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. ELECTRIC FUND 378 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Rebuild Underground District 30 Rebuild Underground District 30 Description 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. Work will include the replacement of deteriorated electrical cables, transformers, switches, and enclosures. Justification The underground electric distribution system in the area bounded by San Francisquito Creek, Edgewood Drive, Island Drive, Hamilton Avenue, Center Drive, Dana Avenue, Alester Avenue, and Jackson Drive was installed in 1987. Typical underground cable and equipment expected life is approximately 30 years in ideal conditions and now need to be replaced. Installation of new equipment will bring the electrical system up to current construction standards. Rebuild of this area is being done ahead of other older underground areas to facilitate the 4/12kV conversions needed for changes at Hopkins Substation (EL-20000). Significant Changes 2021-2025 CIP: This project is deferred to later years because of delays in completing related work in the area. 2020-2024 CIP: The budget has increased $300,000 to account for increased substructure work and construction costs. 2019-2023 CIP: Project established Fund: Electric Fund Category: System Improvements Project Location: Louis/California/Middlefield/ Moreno Managing Department: Utilities Initial Project Start: Fall 2018 Initial Project Completion: Spring 2020 Revised Project Start: Spring 2020 Revised Project Completion: Winter 2024 Project Number: EL-19003 Underground Utilities Enclosure ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 379 Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund 0 0 0 0 0 50,000 1,200,000 0 1,250,000 0 1,250,000 Total 0 0 0 0 0 50,000 1,200,000 0 1,250,000 0 1,250,000 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 0 0 50,000 1,200,000 0 1,250,000 0 1,250,000 Total 0 0 0 0 0 50,000 1,200,000 0 1,250,000 0 1,250,000 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-7 Policy: N-7.1 Potential Board/Commission Review: Planning and Transportation Commission San Francisquito Creek Joint Powers Authority Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. ELECTRIC FUND 380 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Relocate Quarry/Hopkins Substation 60kV Line (A & B) Relocate Quarry/Hopkins Substation 60kV Line (A & B) Description This project relocates the Quarry/Hopkins (QR/HO) 60kV sub-transmission line and associated facilities in Lanes A & B, and the nearby Alma Street area to a more physically accessible route for electric crews and equipment. When the Alma Substation was removed, the current trans- mission line route was no longer required. This project will investigate relocating this line to a more acceptable location that meets technical and aesthetic requirements. Justification The old 60kV overhead lines are located in a congested area of downtown and are difficult to access and maintain. The existing configuration is awkward and space consuming. Significant Changes 2021-2025 CIP: This project has been deferred to focus on higher priority work. Project dis- played here to memorialize the project deferral. 2019-2023 CIP: This project relocates the Quarry/Hopkins (QR/HO) 60kV sub-transmission line and associated facilities in Lanes A & B, and the nearby Alma Street area to a more physically accessible route for electric crews and equipment. The engineering design has been delayed to FY 2020 with construction anticipated to begin in FY 2021. Fund: Electric Fund Category: System Improvements Project Location: Various locations Managing Department: Utilities Initial Project Start: Spring 2018 Initial Project Completion: Spring 2020 Revised Project Start: Spring 2020 Revised Project Completion: Fall 2019 Project Number: EL-13002 Electric linemen working on 60kV overhead lines ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 381 Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-7 Policy: N-7.1 Potential Board/Commission Review: Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. ELECTRIC FUND 382 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET SCADA System Upgrades SCADA System Upgrades Description This project will upgrade the Supervisory Control and Data Acquisition (SCADA) system hard- ware. The SCADA system is used to monitor and control critical assets of the City's Electric, Gas, and Water utility systems from the Utility Control Center. Justification An upgrade to peripheral equipment is necessary each year to keep the hardware and software current in order to handle the ever-increasing demands on the system and maintain manufac- turer/industry support. Supplemental Information Annual budget amounts are for minor system upgrades/replacements. Full system upgrades are on a 3 to 4 year cycle. Significant Changes 2021-2025 CIP: This is an annual budget to fund various upgrades to the SCADA system and peripheral equipment. Increases reflect the increased cost of equipment and support. 2020-2024 CIP: The increase in FY 2021 budget increase is to fund the purchase and installa- tion of a demilitarized zone (DMZ) to add an additional layer of security to the City's local area network (LAN). An external network node can access only what is exposed in the DMZ, while the rest of the organization's network is firewalled. The DMZ functions as a small, isolated net- work positioned between the Internet and the LAN which will allow the City extra time to detect and address breaches before they further penetrate into the internal networks. Fund: Electric Fund Category: System Improvements Project Location: SCADA System at Utility Control Center Managing Department: Utilities Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: EL-02010 SCADA Technologist configuring SCADA software ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 383 Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund N/A 265,000 180,000 135,000 380,000 140,000 175,000 178,900 1,008,900 0 N/A Total N/A 265,000 180,000 135,000 380,000 140,000 175,000 178,900 1,008,900 0 N/A Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 265,000 180,000 135,000 380,000 140,000 175,000 178,900 1,008,900 0 N/A Total N/A 265,000 180,000 135,000 380,000 140,000 175,000 178,900 1,008,900 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.2 Program: C3.2.1 Potential Board/Commission Review: Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. ELECTRIC FUND 384 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Smart Grid Technology Installation Smart Grid Technology Installation Description This project will implement portions of the Smart Grid Road Map that can be cost effectively applied to the City's Electric, Gas, and Water utility systems resulting in operating cost savings, environmental benefits, plus an increased quality of life and productivity for the residents and businesses of Palo Alto. Justification The Smart Grid will help the City of Palo Alto achieve its goals in: energy conservation, carbon emission reduction, efficient utilization of aging infrastructure, improved system reliability, inte- gration of distributed energy resources, accommodation of battery charging demands, cost- effective commodity purchases, and meeting customer demands for information. Supplemental Information This project could include aspects of data management system, smart metering, fiber optic infrastructure improvement, distribution system automation, outage management system, load management system, demand-side management system, leak and revenue protection, cus- tomer interface to energy usage, and customer equipment control. Significant Changes 2021-2025 CIP: This project will implement portions of the Smart Grid Road Map that can be cost effectively applied to the City's electric, gas, and water utility systems, resulting in operat- ing cost savings, environmental benefits, plus an increased quality of life and productivity for the residents and businesses of Palo Alto. Staff completed a Request for Proposal to solicit bids Fund: Electric Fund Category: System Improvements Project Location: Various locations Managing Department: Utilities Initial Project Start: Fall 2016 Initial Project Completion: Fall 2022 Revised Project Start: Fall 2021 Revised Project Completion: Fall 2029 Project Number: EL-11014 Sample of energy use information that could be available to customers to evaluate the implementation of Smart Grid technologies in Palo Alto incorporating informa- tion gathered from completed pilot projects. 2020-2024 CIP: In December 2018, the City Council accepted the ‘Smart Grid and Utilities Tech- nology Implementation Plan’ that recommended the implementation of an Automated Metering Infrastructure (AMI) based smart grid system at an estimated cost of $19 million. The Smart Grid will help the City achieve its goals in: energy and water conservation, carbon emission reduc- tion, efficient utilization of aging infrastructure, improved system reliability, integration of dis- tributed energy resources, cost-effective commodity purchases, and meeting customer demands for information. The cost is estimated to be borne by the Electric ($10.5 million), Gas ($3.4 million) and Water ($5.1 million) Funds. The actual project implementation is not expected to begin until 2023, upon the implementation of the customer information system upgrade project. It is also antici- pated the funds from the Electric Special Projects (ESP) reserves will be used to cover the initial capital costs. The Gas and Water Funds will then repay the ESP reserve loan over 10 years at 3.5% interest with an annualized payment of $0.41 million and $0.61 million respectively. 2019-2023 CIP: Project activities in 2019 include consultant development of system specifica- tions in preparation for an RFP to solicit contracts with meter data management systems and advanced metering infrastructure vendors for delivery in 2021 and 2022, respectively. Imple- mentation will begin in 2021 once the upgrade of Utilities' Customer Information System is com- plete. Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund (965,279)932,763 0 5,000,000 7,000,000 7,000,000 0 (2,100,000)16,900,000 (8,400,000)7,534,721 Transfer from Gas Fund 616,335 0 0 0 0 0 0 800,000 800,000 3,200,000 4,616,335 Transfer from Water Fund 726,335 0 0 0 0 0 0 1,300,000 1,300,000 5,200,000 7,226,335 Total 377,391 932,763 0 5,000,000 7,000,000 7,000,000 0 0 19,000,000 0 19,377,391 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 299,136 932,763 0 5,000,000 7,000,000 7,000,000 0 0 19,000,000 0 19,299,136 Design 78,255 0 0 0 0 0 0 0 0 0 78,255 Total 377,391 932,763 0 5,000,000 7,000,000 7,000,000 0 0 19,000,000 0 19,377,391 ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 385 ELECTRIC FUND 386 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Relationship to Comprehensive Plan Primary Connection Element: Transportation Section: Sustainable Transportation Goal: T-1 Policy: T-1.5 Potential Board/Commission Review: Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: P4 This project is expected to have a possible exemption from CEQA under Section 15301. ELECTRIC FUND 388 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Substation 60kV Breaker Replacement Substation 60kV Breaker Replacement Description This project funds the purchase and replacement of high voltage circuit breakers that intercon- nect the nine electric substations and two power switching stations. There are 25 circuit break- ers reaching the end of their recommended reliable useful life expectancy and/or are now underrated for the use. Justification A recent 60kV circuit breaker study performed for the City of Palo Alto found that the inter- rupting current rating of two of these circuit breakers on the system is not high enough to han- dle the expected maximum fault current level. Three other circuit breakers are marginal with respect to their interrupting current rating. Six additional older oil circuit breakers are obsolete and have reached or are reaching the ends of their operable lives. One oil circuit breaker has experienced a non-catastrophic failure. Should there be a fault, it could result in a failure of any one of these twelve circuit breakers to operate properly, damaging the breaker and leading to a prolonged electric outage. These circuit breakers are integral and critical components of the electric utility transmission system. Significant Changes 2021-2025 CIP: This is an ongoing project over several years to replace 60 kV breakers at sub- stations. The increased cost is to cover anticipated increases in material and installation cost. Fund: Electric Fund Category: System Improvements Project Location: Various locations Managing Department: Utilities Initial Project Start: Summer 2017 Initial Project Completion: Summer 2020 Revised Project Start: Summer 2020 Revised Project Completion: Summer 2028 Project Number: EL-17002 High voltage circuit breakers ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 389 2020-2024 CIP: Staff has increased the project scope to include all 60 kV circuit breakers in the distribution system, bringing the number of circuit breakers to replace from 12 to 25. This proj- ect will be a 10-year program replacing 5 breakers per year. The annual budget of $600,000 includes engineering consulting services, material, and construction. 2017-2021 CIP: Project established. Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund 242,650 770,000 720,000 600,000 600,000 600,000 600,000 618,000 3,018,000 0 3,980,650 Total 242,650 770,000 720,000 600,000 600,000 600,000 600,000 618,000 3,018,000 0 3,980,650 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 210,009 720,000 720,000 600,000 600,000 600,000 600,000 618,000 3,018,000 0 3,948,009 Design 32,630 50,000 0 0 0 0 0 0 0 0 32,630 Total 242,639 770,000 720,000 600,000 600,000 600,000 600,000 618,000 3,018,000 0 3,980,639 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-7 Policy: N-7.1 Potential Board/Commission Review: Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. ELECTRIC FUND 390 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Substation Facility Improvements Substation Facility Improvements Description This project involves several improvements to each of the nine substation facilities in Palo Alto, including installation and replacement of capacitors, replacement of various substation equip- ment, renovation of security fences and entry gates, paving of driveways and parking areas in substations, upgrading of substation drainage systems, replacement of Remote Terminal Unit (RTU) equipment, bus voltage monitoring and local area network (LAN) connections, as well as other improvements. Justification The electric substations are the link between the transmission and distribution systems. At the substations, voltage levels are converted and distribution circuits branch out to provide power throughout the City. They are a key element to providing reliable electric service to residents and customers in Palo Alto. Work completed under this project helps to ensure reliable opera- tion and electric service. Significant Changes 2021-2025 CIP: Budget increase in FY 2021 for grounding upgrades. Fund: Electric Fund Category: System Improvements Project Location: Various locations Managing Department: Utilities Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: EL-89044 Electric Substation transformer and bus structure Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund N/A 348,332 348,332 740,000 450,000 400,000 200,000 206,000 1,996,000 0 N/A Total N/A 348,332 348,332 740,000 450,000 400,000 200,000 206,000 1,996,000 0 N/A ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 391 Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 348,332 348,332 740,000 450,000 400,000 200,000 206,000 1,996,000 0 N/A Total N/A 348,332 348,332 740,000 450,000 400,000 200,000 206,000 1,996,000 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-7 Policy: N-7.1 Potential Board/Commission Review: Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. ELECTRIC FUND 392 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Substation Physical Security Substation Physical Security Description The electric substations are a key element of the Electric Distribution System used to provide electricity to residents and customers of Palo Alto. This project will evaluate options for protect- ing electric substations from outside vandalism and intrusion. If necessary, fences and other protections will be repaired. If warranted and approved, a request for proposal will be issued for construction. Justification The 2013 incident involving PG&E's Metcalf Substation in South San Jose prompted increased security concerns regarding utility sites and systems. A severe disruption to one of Palo Alto's substations could result in outages of an extended period. The Utility Site Security Improve- ments project (EL-04012) addresses the aspects of visual security such as digital cameras, while this project addresses the need for physical protection. Significant Changes 2021-2025 CIP: This is an ongoing project over several years to improve security of electric sub- stations. Project work will be coordinated with work proposed in EL-19002, Colorado Substation Site Improvements. 2020-2024 CIP: Project title changed from Substation Security to Substation Physical Security. The project budget has increased by $1.0 million to account for increased project scope at Col- orado and Hansen Substations and construction cost escalation. 2019-2023 CIP: Project budget increased by $0.3 million to account for construction escalation. Fund: Electric Fund Category: System Improvements Project Location: Colorado Substation Managing Department: Utilities Initial Project Start: Fall 2015 Initial Project Completion: Spring 2017 Revised Project Start: Fall 2018 Revised Project Completion: Winter 2025 Project Number: EL-16003 Substation perimeter wall providing security for the enclosed equipment ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 393 2017-2021 CIP: Shifting project priorities have caused the delay for the completion of this proj- ect. A consultant assessed and recommended security measures in 2017. Staff will review rec- ommendations and issue bids for selected improvements. Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund 212,716 707,507 0 2,168,852 300,000 200,000 165,000 165,000 2,998,852 0 3,211,568 Total 212,716 707,507 0 2,168,852 300,000 200,000 165,000 165,000 2,998,852 0 3,211,568 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 164,231 627,743 0 2,168,852 300,000 200,000 165,000 165,000 2,998,852 0 3,163,083 Design 48,458 79,764 0 0 0 0 0 0 0 0 48,458 Total 212,689 707,507 0 2,168,852 300,000 200,000 165,000 165,000 2,998,852 0 3,211,541 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-7 Policy: N-7.1 Potential Board/Commission Review: Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. ELECTRIC FUND 394 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Substation Protection Improvements Substation Protection Improvements Description This project funds the purchase of protective overcurrent relays, circuit breakers, high voltage fuses, and other equipment used at electric substations to protect the equipment and circuits emanating from the substation from damage due to faults (i.e. short circuits) on the electric sys- tem. Justification The electric substations are the link between the transmission and distribution systems. At the substations, voltage levels are converted and distribution circuits branch out to provide power throughout the City. They are a key element to providing reliable electric service to residents and customers in Palo Alto. Protective equipment is used to stop power flow when there are problems on the electric system. As the Electric Distribution System becomes more complex and reliability more critical, maintenance of these systems is imperative. This project includes replacement of old protective devices and controls that no longer provide the level of functionality now required for more sophisticated and sensitive devices. Properly designed and operating protective systems are required to ensure public safety, reduce equip- ment damage, and minimize the impact of faults such as reduction in outage durations. Significant Changes FY 2020-2024 CIP: Staff completed the 60kV coordination study and is working on designs for replacement of current transformers that would be overloaded during faults. Staff is also work- ing on the designs to replace the relays on the Maybell Substation feeders. Due to the size and Fund: Electric Fund Category: System Improvements Project Location: Electric Substations Managing Department: Utilities Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: EL-89038 Electric Substation used to distribute power to City of Palo Alto customers ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 395 complexity of this project, staff is in the process of procuring an Engineering Consultant to do the detailed design of the equipment layout and wiring. Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund N/A 426,518 80,000 620,000 480,000 300,000 300,000 309,000 2,009,000 0 N/A Total N/A 426,518 80,000 620,000 480,000 300,000 300,000 309,000 2,009,000 0 N/A Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 426,518 80,000 620,000 480,000 300,000 300,000 309,000 2,009,000 0 N/A Total N/A 426,518 80,000 620,000 480,000 300,000 300,000 309,000 2,009,000 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-7 Policy: N-7.1 Potential Board/Commission Review: Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. ELECTRIC FUND 396 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Underground System Rebuild Underground System Rebuild Description Underground primary electric cables and equipment have a limited life span and need to be replaced before they fail and cause outages. This project will replace underground electric equipment in areas that were originally installed underground instead of as a part of an Under- ground District. Work will include the replacement of deteriorated electrical cables, transform- ers, switches and enclosures. Installation of new equipment will bring the electrical system up to current construction standards. Justification The underground system cables and equipment installed prior to 1990 have an expected life of 30 years and now need to be replaced. In addition, most of the equipment and cables were installed in subsurface enclosures that have standing water in them in the winter. Exposure to water reduces the life of the equipment and electrical connections and require the rebuilding of the facilities. Utilities has specific projects to address rebuilding Underground Districts. This project will address replacing underground equipment that was installed originally as under- ground and not part of an Underground District. Significant Changes 2021-2025 CIP: This is an annual budget to fund various projects to replace underground cable as the need is identified. Increases reflect the increased cost of materials and installation. 2020-2024 CIP: Staff is working to identify areas that are high priority for cable replacement based on the age of the existing cables. This currently includes areas in the Stanford Research Park, Arastradero Road, and along East Bayshore Road. Fund: Electric Fund Category: System Improvements Project Location: Various locations Managing Department: Utilities Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: EL-16001 Electric crews preparing to enter underground vault ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 397 2019-2023 CIP: Shifting project priorities and staffing shortages have delayed identification and development of projects to replace underground facilities that fall under this project. 2016-2021 CIP: Project established. Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund N/A 350,000 350,000 400,000 350,000 350,000 350,000 360,500 1,810,500 0 N/A Total N/A 350,000 350,000 400,000 350,000 350,000 350,000 360,500 1,810,500 0 N/A Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 350,000 350,000 400,000 350,000 350,000 350,000 360,500 1,810,500 0 N/A Total N/A 350,000 350,000 400,000 350,000 350,000 350,000 360,500 1,810,500 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-7 Policy: N-7.1 Potential Board/Commission Review: Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. ELECTRIC FUND 398 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Utility Site Security Improvements Utility Site Security Improvements Description The Utilities Electric, Water, and Gas Distribution Systems provide services to residents and businesses that are fundamental necessities of living and working in Palo Alto. This project will add electronic security systems at utility sites to protect equipment at electric substations, water pumping plants, reservoirs, and gas stations from intrusion and vandalism. Justification This project addresses security risks and mitigation methods for City utility facilities identified in a utility site assessment that was completed in 2003. The 2013 vandalism incident at PG&E's Metcalf Substation has heightened security concerns regarding utility sites and systems. This project implements the recommendations in the site assessment report and installs equipment at two to three facilities per year. Significant Changes 2021-2025 CIP: This project adds electronic security systems at utility sites to protect equip- ment at electric substations, water pumping plants, reservoirs, and gas stations from intrusion and vandalism. To date, cameras and detection systems have been installed at seven (7) electric substations, three (3) water stations, and one (1) natural gas station to monitor facilities. Staff is working on finalizing software agreements and assessing the need for electronic security at remaining substations. 2020-2024 CIP: To date, cameras and detection systems have been installed at seven of nine electric substations, three water stations, and one natural gas station to monitor the facilities. Software agreements and assessing the need for electronic security at the remaining substa- Fund: Electric Fund Category: System Improvements Project Location: Various locations Managing Department: Utilities Initial Project Start: Spring 2004 Initial Project Completion: Spring 2016 Revised Project Start: Summer 2014 Revised Project Completion: Summer 2021 Project Number: EL-04012 Security cameras for system security and monitoring ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 399 tions continue to be finalized. After FY 2021, any scope improvements to physical substation security will be absorbed in Substation Physical Security (EL-16003). 2017-2021 CIP: Shifting project priorities have caused the delay for the completion of this proj- ect. Operating Impact After Fiscal Year 2021, operating and maintenance cost will increase by $30,000 annually for ongoing maintenance of the cameras and detection equipment installed as part of this project. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund 1,458,939 133,500 50,000 0 0 0 0 0 0 0 1,508,939 Total 1,458,939 133,500 50,000 0 0 0 0 0 0 0 1,508,939 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 1,171,285 133,500 50,000 0 0 0 0 0 0 0 1,221,284 Design 287,639 0 0 0 0 0 0 0 0 0 287,639 Total 1,458,924 133,500 50,000 0 0 0 0 0 0 0 1,508,923 Anticipated Operating Budget Needs Fund FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 Electric Fund 0 30,000 30,000 30,000 30,000 Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.2 Potential Board/Commission Review: Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. Wood Pole Replacement Wood Pole Replacement Description This project will fund the annual replacement of deteriorated wood poles. Justification Wood poles are used to support overhead utility lines throughout the City of Palo Alto. Though poles are inspected, tested, and treated to maintain their integrity, over time poles will deterio- rate to the point that they are no longer safe for utility workers. Replacement of wood poles has been funded under the Electric System Improvement project (EL-98003); however, wood pole replacement competes with other system improvement and service reliability work for funding. A new specific project for pole replacement is being established to give pole replacement a higher priority, as poles are getting older, and to ensure proper funding is approved and allo- cated each year. Significant Changes 2021-2025 CIP: This is an annual project to replace deteriorated poles. The increased costs are due to increases in cost of materials and construction labor. 2020-2024 CIP: Project revenues updated to reflect estimated shared costs from AT&T for joint pole access. 2019-2023 CIP: Project established. Fund: Electric Fund Category: System Improvements Project Location: Various locations Managing Department: Utilities Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: EL-19004 Aging pole that needs to be replaced. ELECTRIC FUND 400 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 401 Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund N/A 1,350,000 1,500,000 1,350,000 1,350,000 1,350,000 1,350,000 1,395,000 6,795,000 0 N/A Other N/A 150,000 0 150,000 150,000 150,000 150,000 150,000 750,000 0 N/A Total N/A 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,545,000 7,545,000 0 N/A Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,545,000 7,545,000 0 N/A Total N/A 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,545,000 7,545,000 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-7 Policy: N-7.1 Potential Board/Commission Review: Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301 ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 403 Undergrounding Projects ELECTRIC FUND 404 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Underground District 42 - Embarcadero Road, Emerson, Middlefield Underground District 42 - Embarcadero Road, Emerson, Middlefield Description This project will replace the existing overhead electrical distribution system with an under- ground system along Embarcadero between Emerson and Middlefield. This project involves cre- ating 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 distribu- tion system and the property owners to bear the cost of undergrounding their services. Justification Benefits of undergrounding include system improvement, higher reliability, reduced tree trim- ming, and improved aesthetics. Undergrounding has been approved to continue the ongoing underground conversion program and also because the area meets the California Public Utilities Commission rules dictating the areas where a telephone company can underground their lines. Significant Changes 2021-2025 CIP: This project is deferred to later years to focus on higher priority work. 2020-2024 CIP: Design and construction are being spread over two years. Fund: Electric Fund Category: Undergrounding Projects Project Location: Managing Department: Utilities Initial Project Start: Spring 2017 Initial Project Completion: Spring 2019 Revised Project Start: Spring 2023 Revised Project Completion: Spring 2025 Project Number: EL-08001 Intersection of Embarcadero Road and Waverley Street (part of Underground District 42) ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 405 Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund 0 50,000 0 0 0 1,750,000 (50,000)0 1,700,000 0 1,700,000 Other 0 0 0 0 0 0 300,000 0 300,000 0 300,000 Total 0 50,000 0 0 0 1,750,000 250,000 0 2,000,000 0 2,000,000 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 0 0 1,750,000 250,000 0 2,000,000 0 2,000,000 Design 0 50,000 0 0 0 0 0 0 0 0 0 Total 0 50,000 0 0 0 1,750,000 250,000 0 2,000,000 0 2,000,000 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-7 Policy: N-7.1 Potential Board/Commission Review: Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is expected to be categorically exempt from CEQA under Section 15301. Underground District 43 - Alma/Embarcadero Underground District 43 - Alma/ Embarcadero Description This project will replace the existing overhead electrical distribution system with an under- ground system in the area bounded by Alma, Addison, Bryant, and Melville. This project involves creating an Underground Utilities District and performing the work on a general benefit basis under the provisions of Utility Rule 17, which requires the Utility to bear the cost of the distribu- tion system and the property owners to bear the cost of undergrounding their services. Justification Benefits of undergrounding include system improvement, higher reliability, reduced tree trim- ming, and improved aesthetics. Undergrounding has been approved to continue the ongoing underground conversion program and also because the area meets California Public Utilities Commission rules dictating the areas where a telephone company can underground their lines. Significant Changes 2021-2025 CIP: This project is deferred to FY 2022 to focus on higher priority work. 2020-2024 CIP: Design and construction work is being spread over two years. Fund: Electric Fund Category: Undergrounding Projects Project Location: Alma, Addison, Bryant, and Melville Managing Department: Utilities Initial Project Start: Spring 2018 Initial Project Completion: Spring 2019 Revised Project Start: Spring 2022 Revised Project Completion: Spring 2024 Project Number: EL-11009 Alma Street at Embarcadero Road (part of Underground District 43) ELECTRIC FUND 406 ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET ELECTRIC FUND ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 407 Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Electric Fund 0 0 0 0 56,000 1,700,000 0 0 1,756,000 0 1,756,000 Other 0 0 0 0 0 300,000 0 0 300,000 0 300,000 Total 0 0 0 0 56,000 2,000,000 0 0 2,056,000 0 2,056,000 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 0 0 2,000,000 0 0 2,000,000 0 2,000,000 Design 0 0 0 0 56,000 0 0 0 56,000 0 56,000 Total 0 0 0 0 56,000 2,000,000 0 0 2,056,000 0 2,056,000 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-7 Policy: N-7.1 Potential Board/Commission Review: Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 409 FIBER OPTICS FUND FIBER OPTICS FUND 410 FIBER OPTICS FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET FIBER OPTIC Overview The City of Palo Alto is the only municipality in the State of California that operates a full suite of City-owned utility services. The most recent addition to this list of services provided to City of Palo Alto residents and commercial customers is the licensing of dark fiber service connec- tions on a dark optical fiber backbone network (fiber network), originally designed and built by the City in the mid to late 1990s. For the 2021-2025 Capital Improvement Program (CIP), expenditures of $2.6 million are programmed, with $0.8 million allocated in Fiscal Year 2021. Major projects funded in the 2021-2025 CIP include Fiber Optics Customer Connections ($1.3 million), Fiber Network Sys- tem Improvements ($1.0 million) and Fiber Network System Rebuild ($0.3 million). The bud- get for the Fiber Optics CIP can be categorized into two types of projects: Capacity Improvements and Customer Connections. Capacity Improvements With advances in various technologies dependent on high-bandwidth broadband connectivity, increases in online services and applications, and significant increases in data transmission over fiber optic networks, access to fiber optic cables is increasingly in demand. To ensure reliable fiber optic service to City of Palo Alto residents and commercial customers, network compo- nents such as fiber optic cables and splice cabinets need to be upgraded or added to increase capacity; replaced or protected from damage by animals; and rerouted away from hazardous conditions. Infrastructure Inventory CLASSIFICATION QUANTITY Route Miles of Underground Backbone Fiber Optic Cable 33 Route Miles of Overhead Backbone Fiber Optic Cable 16 Total Route Miles of Backbone Fiber Cable 49 $0 $400,000 $800,000 $1,200,000 $1,600,000 FY 2017 Actuals FY 2019 Actuals FY 2021 Proposed FY 2023 Projected FY 2025 Projected Fiber Optics Fund Capital Expenditures FIBER OPTICS FUND FIBER OPTICS FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 411 Recent Accomplishments Added new fiber conduit on University Avenue as part of the Upgrade Downtown project. Completed field investigation and design of new fiber backbone cables from Park Boulevard Substation to Stanford Research Park area. 2021-2025 Capital Improvement Program Recurring Projects There is one recurring project in the Capacity Improvements category in the 2021-2025 CIP: Fiber Network System Improvements (Fiscal Year 2021: $0.2 million; 2021-2025 CIP: $1.0 million) Non-Recurring Projects There is one non-recurring project in the Capacity Improvements category in the 2021-2025 CIP: Fiber Network System Rebuild (Fiscal Year 2021: $0.3 million; 2021-2025 CIP: $0.3 million) The Fiber Network System Rebuild project is expected to extend through Fiscal Year 2021 and will rebuild portions of the network that have reached capacity, which limits the City’s ability to provide dark fiber optic service connections to all potential customers. Rebuilding portions of the fiber network includes installation of additional fiber optic cables in the Stanford Research Park area and replacement of several below ground splice closures with pad-mounted pedestals. Rebuild work scheduled for Fiscal Year 2021 includes installing substructure and dark fiber for a new fiber path from Park Boulevard Substation to the Stanford Research Park area. Customer Connections As customers continually change their fiber optic needs due to equipment additions, new con- struction, building expansions, building remodels, teardowns and rebuilds, and new building occupancy types, the fiber network must evolve to meet these needs. Projects in this category include work required to meet the needs of customers who have applied for new or upgraded dark fiber optic service connections. The connection costs associated with new or upgraded connections are offset by non-recurring charges (NRC) to establish the connections and monthly recurring charges (MRC) or dark fiber license fees. Recent Accomplishments Installed public Wi-Fi to unserved City facilities, including community areas in Cubberley Community Center, Lucie Stern Community Center, and Baylands Golf Links. 2021-2025 Capital Improvement Program Recurring Projects In the Customer Connections category there is one recurring project: Fiber Optics Customer Connections. In the 2021-2025 Capital Improvement Program, recurring funding in this project FIBER OPTICS FUND 412 FIBER OPTICS FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET remains at $0.25 million annually. This project provides funding for the installation of fiber optic infrastructure for new service connections. Non-Recurring Projects There are no non-recurring projects in this category. Summary of Capital Activity FIBER OPTICS FUND Project Number Project Title FY 2019 Actuals FY 2020 Estimate FY 2021 Proposed FY 2022 FY 2023 FY 2024 FY 2025 5-Year Total Source of Funds Other Revenues FO-10000 Fiber Optics Customer Connections: Connection Charges 42,396 35,000 200,000 200,000 200,000 200,000 200,000 1,000,000 Other Revenues Total 42,396 35,000 200,000 200,000 200,000 200,000 200,000 1,000,000 Total Sources 42,396 35,000 200,000 200,000 200,000 200,000 200,000 1,000,000 Use of Funds Capacity Improvements FO-10001 Fiber Optics Network System Improvements 1,009,942 125,000 200,000 200,000 200,000 200,000 200,000 1,000,000 FO-16000 Fiber Optics System Rebuild 0 150,000 300,000 0 0 0 0 300,000 Capacity Improvements Total 1,009,942 275,000 500,000 200,000 200,000 200,000 200,000 1,300,000 Customer Connections FO-10000 Fiber Optics Customer Connections 133,326 77,000 250,000 250,000 250,000 250,000 250,000 1,250,000 Customer Connections Total 133,326 77,000 250,000 250,000 250,000 250,000 250,000 1,250,000 Total Uses 1,143,268 352,000 750,000 450,000 450,000 450,000 450,000 2,550,000 FIBER OPTICS FUND FIBER OPTICS FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 413 Capacity Improvements FIBER OPTICS FUND 414 FIBER OPTICS FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Fiber Optics Network - System Improvements Fiber Optics Network - System Improvements Description This project provides funding to improve reliability within the existing fiber network. Typical activities in this project include: purchasing, upgrading, and installing fiber optic cables, con- duits, and splice enclosures. Justification This project promotes the formation of a competitive market for telecommunications in Palo Alto by accelerating the pace at which high-quality, low-cost, advanced telecommunications services are delivered to the residents and businesses in Palo Alto. This occurs while limiting the negative impacts on Palo Alto's environment by using existing conduit and wood utility poles in the public rights-of-way. This also enables the Fiber Optics Fund to generate additional reve- nues through the enhanced use of its existing conduit and wood utility poles. Supplemental Information The Fiber Optics Utility continues to add capacity improvements in the form of additional fiber in congested areas as well as areas of predicted growth. Significant Changes 2021-2025 CIP: Changed project title from Fiber Optic System Improvements to Fiber Optic Network - System Improvements. Fund: Fiber Optics Fund Category: Capacity Improvements Project Location: Various locations Managing Department: Utilities Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: FO-10001 Fiber optic crew installing new fiber optic cables FIBER OPTICS FUND FIBER OPTICS FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 415 2020-2024 CIP: The Fiber Optics Fund will build emergency water supply resiliency at Monte- bello reservoir to enable the Utilities Supervisory Control and Data Acquisition (SCADA) system to add full remote-control valves at the reservoir. Montebello is the only reservoir (1 of 7) remaining without available fiber service connections. Staff must manually turn on/off the valves which may be difficult after a major earthquake or unsafe during a wildfire or similar emergencies. In addition, intermittent loss of cellular and radio coverage in the foothills area where the reservoir is located may occur. This is a major impediment for emergency response calls. Finally, if fiber is available at Montebello Reservoir, Utilities can use this fiber for backhaul communication links for Advanced Metering Infrastructure (AMI) collectors to serve customers. Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Fiber Optics Fund N/A 791,665 125,000 200,000 200,000 200,000 200,000 200,000 1,000,000 0 N/A Total N/A 791,665 125,000 200,000 200,000 200,000 200,000 200,000 1,000,000 0 N/A Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 791,665 125,000 200,000 200,000 200,000 200,000 200,000 1,000,000 0 N/A Total N/A 791,665 125,000 200,000 200,000 200,000 200,000 200,000 1,000,000 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Business & Economics Section: Culture of Innovation and Business Diversity Goal: B-4 Policy: B-4.1 Potential Board/Commission Review: Architectural Review Board Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is categorically exempt form CEQA under section 15302. FIBER OPTICS FUND 416 FIBER OPTICS FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Fiber Optics Network - System Rebuild Fiber Optics Network - System Rebuild Description This project rebuilds portions of the fiber network to improve capacity, which facilitates licens- ing of dark fiber to companies providing telecommunication services to residents and busi- nesses in Palo Alto. The project will install new aerial duct or substructures (conduit and boxes) and additional fiber backbone cables to increase capacity for sections of the network that are at or near capacity. This will allow the Utilities Department to meet customer requests for ser- vice connections. The main rebuild project areas are the Stanford Research Park, the Palo Alto Internet Exchange (PAIX) at 529 Bryant Street, and the downtown business district. Justification The fiber network was planned, designed, and constructed in the mid to late 1990s by the City of Palo Alto’s Utilities Department. The Utilities Department began to license dark fiber service connections for commercial purposes in the late 1990s. Since then, several sections of the fiber network have reached capacity and limited the City's ability to efficiently serve its customers. This project will increase network capacity and improve reliability, allowing the City to maintain a competitive market for telecommunications by accelerating the pace at which high-quality and low-cost advanced telecommunications services are delivered to residents and businesses. Supplemental Information Coordination of FTTP with electric and natural gas utility planning enables an integrated approach to strategies such as building electrification and electric vehicle support infrastructure at the scale of neighborhood blocks and potentially entire neighborhoods. Contingent on com- Fund: Fiber Optics Fund Category: Capacity Improvements Project Location: Various locations Managing Department: Utilities Initial Project Start: Spring 2016 Initial Project Completion: Spring 2018 Revised Project Start: Spring 2019 Revised Project Completion: Spring 2021 Project Number: FO-16000 Fiber optic splice closer ready for inspection and work FIBER OPTICS FUND FIBER OPTICS FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 417 pleting a competitive Request for Proposals process and seeking Council approval, a telecom- munications consulting firm will be retained under a Professional Services Agreement to develop a fiber network expansion plan in four (4) phases. The scope of work entails the follow- ing: Phase 1 seeks a high-level design and cost estimate for fiber expansion to support AMI, SCADA) and wireless communication for City field staff and other City services; Phase 2 seeks a detailed engineering design and cost estimate for fiber expansion to support AMI, SCADA, and wireless communication for City field staff and other City services; Phase 3 seeks a business case and high-level design for a citywide FTTP network. The FTTP network and high-level design in the business case should expand on the fiber network for AMI, SCADA and wireless communication; and Phase 4 seeks a detailed engineering design, cost estimate and a phased deployment approach for FTTP. Upon the completion of each phase, staff will return to the Council with findings and recom- mendations and request authorization to proceed to the next phase. Note: The Electric Reserve Fund will pay one hundred percent (100%) of the fiber optic connec- tions for AMI implementation and connections for the existing SCADA system. Significant Changes 2021-2025 CIP: Changed project title from Fiber Optic System Rebuild to Fiber Optic Network - System Rebuild. In November 2018, the Council accepted the Smart Grid and Technology Imple- mentation Plan and directed staff to align fiber network expansion with the Advanced Metering Infrastructure (AMI) implementation plan. In June 2019, the Council directed staff to expand the fiber network to support a communica- tion platform for AMI, Supervisory Control and Data Acquisition (SCADA) systems, and emerg- ing Smart City initiatives (e.g. traffic management, smart streetlights, parking garage sensors, data collection). Additionally, staff was directed to deploy wireless technologies to support Public Safety and Utilities staff working in the field to enhance the delivery of essential City ser- vices. The objective is to pursue a comprehensive fiber expansion strategy from an integrated cross-utility perspective. This strategy is focused on evaluating the feasibility of integrating fiber network expansion into other ongoing utility capital improvement projects and programs, if practical, to fully leverage the City’s fiber asset. This integrated strategy for fiber expansion planning includes the above-noted fiber network rebuild project and may also become a foun- dation for fiber-to-the-premises (FTTP), because the City is adding new telecommunication infrastructure which may reduce the incremental cost to extend fiber and wireless communica- tions infrastructure to residential and commercial areas. FIBER OPTICS FUND 418 FIBER OPTICS FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 2019-2023 CIP: Due to limited staffing, this project has shifted to start in FY 2019. Additionally, $0.3 million has been added to the following two years to address additional site locations. Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Fiber Optics Fund 167,165 775,000 150,000 300,000 0 0 0 0 300,000 0 617,165 Total 167,165 775,000 150,000 300,000 0 0 0 0 300,000 0 617,165 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 133,727 775,000 150,000 300,000 0 0 0 0 300,000 0 583,727 Design 33,429 0 0 0 0 0 0 0 0 0 33,429 Total 167,156 775,000 150,000 300,000 0 0 0 0 300,000 0 617,156 Relationship to Comprehensive Plan Primary Connection Element: Business & Economics Section: Culture of Innovation and Business Diversity Goal: B-4 Policy: B-4.1 Potential Board/Commission Review: Architectural Review Board Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is categorically exempt form CEQA under section 15302. FIBER OPTICS FUND FIBER OPTICS FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 419 Customer Connections FIBER OPTICS FUND 420 FIBER OPTICS FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Fiber Optics Customer Connections Fiber Optics Customer Connections Description This project provides funding for the installation of fiber optic infrastructure for new service connections. Typical activities in this project include: purchasing, upgrading, and installing fiber optic cables, conduits, and splice enclosures at customer sites. Justification This project promotes the formation of a competitive market for telecommunications in Palo Alto, accelerating the pace at which high-quality, low-cost, advanced telecommunications ser- vices are delivered to businesses while limiting the negative impacts on Palo Alto's environment by using existing conduits and wood utility poles rather than adding additional infrastructure to support the system. Finally, it enables the Fiber Optics Fund to generate additional revenues through the enhanced use of its conduits and poles. Supplemental Information The cost to the Fiber Optics Fund associated with new service connections and the City's cost of ownership are billed to the requesting parties. Fund: Fiber Optics Fund Category: Customer Connections Project Location: Various locations Managing Department: Utilities Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: FO-10000 Technician installing new fiber optic cables Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Fiber Optics Fund N/A 75,000 77,000 50,000 50,000 50,000 50,000 250,000 450,000 0 N/A Other N/A 200,000 0 200,000 200,000 200,000 200,000 0 800,000 0 N/A Total N/A 275,000 77,000 250,000 250,000 250,000 250,000 250,000 1,250,000 0 N/A FIBER OPTICS FUND FIBER OPTICS FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 421 Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 275,000 77,000 250,000 250,000 250,000 250,000 250,000 1,250,000 0 N/A Total N/A 275,000 77,000 250,000 250,000 250,000 250,000 250,000 1,250,000 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Business & Economics Section: Culture of Innovation and Business Diversity Goal: B-4 Policy: B-4.1 Potential Board/Commission Review: Architectural Review Board Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is categorically exempt form CEQA under section 15302. CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 423 GAS FUND GAS FUND 424 GAS FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET GAS FUND Overview The City of Palo Alto is the only municipality in California that operates a full suite of City- owned utility services. The municipal natural gas distribu- tion system began operation in 1917 and provides safe, reliable, and cost effective gas service to residents and customers of Palo Alto. For the 2021-2025 Capital Improvement Program (CIP), approximately $45.3 million is projected, with $13.2 million allo- cated in Fiscal Year 2021. Overall, a total of seven projects are planned for the 5-year CIP. Major projects funded in the 2021-2025 CIP include Gas Main Replacements (cumulative total of $32.6 million), Gas System, Customer Connections ($5.8 million), and Gas Meters and Regula- tors ($3.9 million). The budget for the Gas Fund CIP can be categorized into three separate types of projects: Customer Connections, Gas Main Replacements, and System Improvements. Infrastructure Inventory CLASSIFICATION QUANTITY Total miles of gas main distribution system 211 Total miles of gas service extension to resi- dents and businesses 205 Number of gas receiving stations 4 Natural Gas System MATERIAL TYPE MILES OF MAINS IN SYSTEM NUMBER OF SERVICES IN SYSTEM MILES OF SERVICES IN SYSTEM (AVG 62’/ SERVICE) Steel 62.68 1,735 20.37 Plastic, PVC 33.70 691 8.11 Plastic, PE 114.02 14,129 165.94 Plastic, ABS 0.11 50 0.59 Plastic, Other 0.01 35 0.41 Other 0 766 8.99 TOTAL 210.52 17,406 204.41 $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 FY 2017Actuals FY 2019Actuals FY 2021Proposed FY 2023Projected FY 2025Projected Gas Fund Capital Expendiures GAS FUND GAS FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 425 Customer Connections As customers continually change their gas needs due to equipment additions, building expan- sions, building remodels, and new building occupancy types, the gas system must evolve to meet these needs. The Gas System Customer Connections project, which is one of the largest recurring projects within the Gas Fund ($1.1 million in Fiscal Year 2021, $5.8 million over the 2021- 2025 CIP), is accounted for within this category. This project allows for the completion of work required to meet the needs of customers who have applied for new or upgraded gas service. The Gas Fund pays for a portion of this project, while remaining costs are supported by reim- bursements from customers for connection work performed by the City. The only project in the FY 2021 - FY 2025 CIP in this category is a recurring project. Recent Accomplishments In Fiscal Year 2019, the Utilities Gas Division completed approximately 153 customer service projects, at a cost of $0.9 million. 2021-2025 Capital Improvement Program Recurring Projects A total of $5.8 million is programmed for Customer Connections recurring projects in the 2021- 2025 CIP, with $1.1 million allocated in Fiscal Year 2021. Recurring projects in this category include the following: Gas System, Customer Connections (Fiscal Year 2021: $1.1 million; 5-Year CIP: $5.8 million) Gas Main Replacements The Gas Main Replacements (GMR) category accounts for the replacement of inadequately- sized and structurally deficient gas mains and services that are subject to corrosion or reaching the end of their expected life. The Utilities Department coordinates with the Public Works Department’s street maintenance projects to minimize damage to the City’s pavement and maximize cost efficiency. In the next five years, it is anticipated that approximately 90,000 lin- ear feet of gas mains, or eight percent of the entire system, will be replaced. The 2021-2025 CIP includes $32.6 million in funding for projects within this category, which are each non-recurring. Recent Accomplishments Finalizing designs of the Gas Main Replacement 23 project within business districts to replace approximately 27,000 linear feet of natural gas mains and 350 natural gas service pipelines made of Polyvinyl Chloride (PVC) and Steel Black Wrap Pipe (BWP). 2021-2025 Capital Improvement Program Non-Recurring Projects Three GMR projects are included in the 2021-2025 CIP (Fiscal Year 2021: $10.6 million; 5-Year CIP: $32.6 million). GAS FUND 426 GAS FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET System Improvements To ensure reliable gas services for the City of Palo Alto residents and customers, gas infrastruc- ture must be replaced upon reaching the end of its expected life. The System Improvements category includes three projects during the 2021-2025 CIP at a total cost of $6.9 million, with $1.5 million allocated in Fiscal Year 2021. There are three projects in this category in the FY 2021 - FY 2025 CIP; each is recurring. Recent Accomplishments Addressed 102 Grade 1, 2, and 3 Leaks throughout the City. Established an outreach program to address gas meter abnormal operating conditions (AOC) through the notification of property owners, initiating a coordinated effort to relocate the gas meter classified as an AOC. These notifications resulted in a 50% response rate. Completed replacement of approximately 85 of the 103 natural gas services with pipeline material of Acrylonitrile Butadiene Styrene (ABS) or Tenite, at various locations within the City. Completed inspection of 360 of the 1250 sanitary sewer laterals to be inspected in year one under the Phase II Crossbore Gas Safety Program. The Crossbore Gas Safety Program is to inspect existing sanitary sewer laterals for damages caused during the installation of natural gas main and service pipelines. Purchased new 6” and 8” Mueller tapping and stopping equipment for City Staff operations and maintenance work on 6” and 8” steel pipelines. Acquisition of this equipment is crucial to safely perform maintenance or complete improvements on the City’s larger steel mains which transport gas from the distribution stations to the smaller distribution mains throughout the City. 2021-2025 Capital Improvement Program Recurring Projects There are three funded recurring projects in the System Improvements category in the 2021- 2025 CIP: Gas Distribution System Improvements (Fiscal Year 2021: $0.5 million; 5-Year CIP: $2.5 million) Gas Equipment and Tools (Fiscal Year 2021: $0.1 million; 5-Year CIP: $0.5 million) Gas Meters and Regulators (Fiscal Year 2021: $0.9 million; 5-Year CIP: $3.9 million) Please refer to the City of Palo Alto Utilities webpage to confirm project details: http://www.cityofpaloalto.org/gov/depts/utl/projects/default.asp GAS FUND GAS FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 427 Summary of Capital Activity GAS FUND Project Number Project Title FY 2019 Actuals FY 2020 Estimate FY 2021 Proposed FY 2022 FY 2023 FY 2024 FY 2025 5-Year Total Source of Funds Other Revenues GS-12001 Gas Main Replacement - Project 22 8,548 0 0 0 0 0 0 0 GS-80017 Gas System, Customer Connections 1,001,785 1,110,303 900,000 900,000 900,000 900,000 900,000 4,500,000 Other Revenue Total 1,010,333 1,110,303 900,000 900,000 900,000 900,000 900,000 4,500,000 Total Sources 1,010,333 1,110,303 900,000 900,000 900,000 900,000 900,000 4,500,000 Use of Funds Customer Connections GS-80017 Gas System, Customer Connections 1,039,110 1,403,926 1,082,688 1,124,169 1,166,894 1,210,901 1,247,228 5,831,880 GS-03009 System Extensions - Unreimbursed 38,679 40,000 0 0 0 0 0 0 Customer Connections Total 1,077,789 1,443,926 1,082,688 1,124,169 1,166,894 1,210,901 1,247,228 5,831,880 Gas Main Replacements GS-12001 Gas Main Replacement - Project 22 8,400,336 968,137 0 0 0 0 0 0 GS-13001 Gas Main Replacement - Project 23 90,291 289,655 10,620,046 0 0 0 0 10,620,046 GS-14003 Gas Main Replacement - Project 24 0 0 0 2,000,000 9,000,000 0 0 11,000,000 GS-15000 Gas Main Replacement - Project 25 0 0 0 0 0 2,000,000 9,000,000 11,000,000 Gas Main Replacements Total 8,490,627 1,257,792 10,620,046 2,000,000 9,000,000 2,000,000 9,000,000 32,620,046 System Improvements GS-18000 Gas ABS/Tenite Replacement Project 31,015 1,500,000 0 0 0 0 0 0 GS-11002 Gas Distribution System Improvements 9,600 500,000 500,000 500,000 500,000 500,000 500,000 2,500,000 GS-14004 Gas Distribution System Model 2,157 0 0 0 0 0 0 0 GS-13002 Gas Equipment and Tools 117,005 273,576 100,000 100,000 100,000 100,000 100,000 500,000 GS-80019 Gas Meters and Regulators 45,551 171,000 850,001 1,000,000 1,000,000 500,000 500,000 3,850,001 GS-15001 Security at City’s Gas Receiving Stations 31,134 0 0 0 0 0 0 0 System Improvements Total 236,462 2,444,576 1,450,001 1,600,000 1,600,000 1,100,000 1,100,000 6,850,001 Total Uses 9,804,878 5,146,294 13,152,735 4,724,169 11,766,894 4,310,901 11,347,228 45,301,927 GAS FUND GAS FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 429 Customer Connections GAS FUND 430 GAS FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Gas System, Customer Connections Gas System, Customer Connections Description This funding allows for the Gas Distribution System to be extended in order to provide gas ser- vice to new customers and augment service to customers with increased natural gas demands. Improvements include new mains, services, valves, regulators, meters, and accessories. Justification This project upgrades infrastructure to provide gas service connections to new customers, meet changes in existing customer service demands, and respond to changes in gas service require- ments due to new development or redevelopment. This project is funded partially from reim- bursements by customers. Significant Changes 2021-2025 CIP: Funding was decreased slightly to reflect actual expenditures from prior years. 2015-2019 CIP: Project was retitled from Gas Systems Extensions. Fund: Gas Fund Category: Customer Connections Project Location: Various locations Managing Department: Utilities Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: GS-80017 Gas System Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Gas Fund N/A 292,623 1,403,926 182,688 224,169 266,894 310,901 347,228 1,331,880 0 N/A Other N/A 1,111,303 0 900,000 900,000 900,000 900,000 900,000 4,500,000 0 N/A Total N/A 1,403,926 1,403,926 1,082,688 1,124,169 1,166,894 1,210,901 1,247,228 5,831,880 0 N/A GAS FUND GAS FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 431 Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 1,403,926 1,403,926 1,082,688 1,124,169 1,166,894 1,210,901 1,247,228 5,831,880 0 N/A Total N/A 1,403,926 1,403,926 1,082,688 1,124,169 1,166,894 1,210,901 1,247,228 5,831,880 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-7 Policy: N-7.1 Potential Board/Commission Review: Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. GAS FUND GAS FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 433 Gas Main Replacements GAS FUND 434 GAS FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Gas Main Replacement - Project 23 Gas Main Replacement - Project 23 Description This project replaces approximately 27,136 linear feet (which represents 1.8% of the City's Gas Distribution System) of gas mains that may be leaking, inadequately-sized, and/or structurally deficient. These replacements are located on various streets in Evergreen Park, College Terrace, Ventura, Green Acres, and Midtown neighborhoods. Staff identifies problematic mains/services by researching maintenance and leak histories, analyzing performance of the entire Gas Distri- bution System, and considering risks ratings of the Distribution Integrity Management Plan. Justification The project will target replacing PVC mains and services located in business districts and steel mains and services with ineffective corrosion protection, also known as cathodic protection. This project is mandatory due to the need to replace aging infrastructure and to reduce the City's liability exposure due to PVC and steel gas facilities with ineffective cathodic protection. Supplemental Information The City of Palo Alto Distribution Integrity Management Plan's mathematical model is used to evaluate risks presented by PVC and steel facilities located within business districts that have been assigned the highest probability and consequence scores. Targeted streets will be coordi- nated with the Public Works Street Maintenance Program to complete replacement before streets are paved. Linear footage and locations are subject to change. Please refer to the City of Palo Alto Utilities webpage for the most recent project details. Fund: Gas Fund Category: Gas Main Replacements Project Location: Various locations Managing Department: Utilities Initial Project Start: Summer 2016 Initial Project Completion: Winter 2018 Revised Project Start: Summer 2019 Revised Project Completion: Winter 2021 Project Number: GS-13001 Installation of new HDPE gas service main GAS FUND GAS FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 435 Significant Changes 2021-2025 CIP: The construction is postponed to start later in FY 2021 due to GMR 22 being delayed. 2020-2024 CIP: City staff has proposed a new replacement schedule of completing a water, gas and wastewater construction project every other year instead of annually to reduce the amount of construction when prices are high. In the last few years there have been fewer bid- ders and higher prices on construction projects due to the increased demand for construction services. Revised total project estimate to $11.0 million, an increase of $3.8 million, due to higher construction costs. The project scope has also increased by 7,136 in linear footage. 2019-2023 CIP: The budget has been revised to account for construction cost escalation. 2018-2022 CIP: The construction is postponed to start in FY 2018 due to GMR 22 being delayed. Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Gas Fund 154,871 909,701 289,655 10,620,046 0 0 0 0 10,620,046 0 11,064,572 Total 154,871 909,701 289,655 10,620,046 0 0 0 0 10,620,046 0 11,064,572 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 51,664 850,001 289,655 10,620,046 0 0 0 0 10,620,046 0 10,961,365 Design 103,205 59,700 0 0 0 0 0 0 0 0 103,205 Total 154,869 909,701 289,655 10,620,046 0 0 0 0 10,620,046 0 11,064,570 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-7 Policy: N-7.1 Potential Board/Commission Review: Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. GAS FUND 436 GAS FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Gas Main Replacement - Project 24 Gas Main Replacement - Project 24 Description This project replaces approximately 33,050 linear feet (which represents 2.9% of the City's Gas Distribution System) of leaking, inadequately-sized, and structurally deficient gas mains and services located on various streets in neighborhoods of the Stanford Research Park, Green Acres, Charleston Terrace, and the Stanford Industrial business districts. Staff identifies prob- lematic mains/services by researching maintenance and leak histories, analyzing performance of the entire Gas Distribution System, and considering risks ratings of the Distribution Integrity Management Plan. Justification The project will target replacing PVC mains and services located in business districts and steel mains and services with ineffective corrosion protection, also known as cathodic protection. This project is mandatory due to the need to replace aging infrastructure and to reduce the City's liability exposure due to PVC and steel gas facilities with ineffective cathodic protection. Supplemental Information The City of Palo Alto Distribution Integrity Management Plan's mathematical model is used to evaluate risks presented by PVC and steel facilities, located within business districts that have been assigned the highest probability and consequence scores. Targeted streets will be coordi- nated with the Public Works Street Maintenance Program to complete replacement before streets are paved. Linear footage and locations are subject to change. Please refer to the City of Palo Alto Utilities webpage for the most recent project details. Fund: Gas Fund Category: Gas Main Replacements Project Location: Various locations Managing Department: Utilities Initial Project Start: Summer 2017 Initial Project Completion: Winter 2020 Revised Project Start: Summer 2022 Revised Project Completion: Fall 2023 Project Number: GS-14003 Installation of new HDPE gas service main GAS FUND GAS FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 437 Significant Changes 2021-2025 CIP: Due to delays of GMR 23, construction for GMR 24 is being postponed to FY 2023. 2020-2024 CIP: City staff has proposed a new replacement schedule of completing a water, gas and wastewater construction project every other year instead of annually to reduce the amount of construction when prices are high. In the last few years there have been fewer bid- ders and higher prices on construction projects due to the increased demand for construction services. Revised total project estimate to $11.0 million, an increase of $3.8 million, due to higher construction costs. Project scope increased by 4,030 in linear footage. 2019-2023 CIP: The budget has been revised to account for construction cost escalation. 2018-2022 CIP: Due to delays of GMR 22 and GMR 23, GMR 24 is being postponed to FY 2019. Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Gas Fund 0 0 0 0 2,000,000 9,000,000 0 0 11,000,000 0 11,000,000 Total 0 0 0 0 2,000,000 9,000,000 0 0 11,000,000 0 11,000,000 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 0 0 9,000,000 0 0 9,000,000 0 9,000,000 Design 0 0 0 0 2,000,000 0 0 0 2,000,000 0 2,000,000 Total 0 0 0 0 2,000,000 9,000,000 0 0 11,000,000 0 11,000,000 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-7 Policy: N-7.1 Potential Board/Commission Review: Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. GAS FUND 438 GAS FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Gas Main Replacement - Project 25 Gas Main Replacement - Project 25 Description This project replaces approximately 31,260 linear feet (which represents 2.8% of the City's Gas Distribution System) of leaking, inadequately-sized, and structurally deficient gas mains and services located on various streets in the neighborhoods of Palo Verde, Midtown, Evergreen, and Ventura. Staff identifies problematic mains/services by researching maintenance and leak histories, analyzing performance of the entire Gas Distribution System, and considering risks ratings of the Distribution Integrity Management Plan. Justification The project will target replacing PVC mains and services, also known in the industry as cathodic protection, located in business districts and steel mains and services with ineffective corrosion protection. This project is mandatory due to the need to replace aging infrastructure and to reduce the City's liability exposure due to PVC and steel gas facilities with ineffective cathodic protection. Supplemental Information The City of Palo Alto Distribution Integrity Management Plan's mathematical model is used to evaluate risks presented by PVC facilities located within business districts that have been assigned the highest probability and consequence scores. Targeted streets will be coordinated with the Public Works Street Maintenance Program to complete replacement before streets are paved. Linear footage and locations are subject to change. Please refer to the City of Palo Alto Utilities webpage for the most recent project details. Fund: Gas Fund Category: Gas Main Replacements Project Location: Various locations Managing Department: Utilities Initial Project Start: Summer 2018 Initial Project Completion: Winter 2020 Revised Project Start: Summer 2024 Revised Project Completion: Winter 2026 Project Number: GS-15000 New gas service meter and regulating equipment GAS FUND GAS FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 439 Significant Changes 2021-2025 CIP: Due to delays of GMR 22, GMR 23, and GMR 24, GMR 25 postponed to FY 2024. 2020-2024 CIP: City staff has proposed a new replacement schedule of completing a water, gas and wastewater construction project every other year instead of annually to reduce the amount of construction when prices are high. Revised total project estimate to $12.0 million, an increase of $3.8 million, due to higher construction costs. In the last few years there have been fewer bidders and higher prices on construction projects due to the increased demand for con- struction services. 2019-2023 CIP: The budget has been revised to account for construction cost escalation. 2018-2022 CIP: Project postponed to begin in FY 2020 due to GMR 22 being delayed. Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Gas Fund 0 0 0 0 0 0 2,000,000 9,000,000 11,000,000 0 11,000,000 Total 0 0 0 0 0 0 2,000,000 9,000,000 11,000,000 0 11,000,000 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 0 0 0 941,000 6,131,000 7,072,000 0 7,072,000 Design 0 0 0 0 0 0 1,059,000 2,869,000 3,928,000 0 3,928,000 Total 0 0 0 0 0 0 2,000,000 9,000,000 11,000,000 0 11,000,000 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-7 Policy: N-7.1 Potential Board/Commission Review: Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. GAS FUND GAS FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 441 System Improvements GAS FUND 442 GAS FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Gas Distribution System Improvements Gas Distribution System Improvements Description This project provides funding as needed to improve the Gas Distribution System. Typical activi- ties include: increasing distribution system capacity for load growth, replacing deteriorated cap- ital facilities, re-configuring/adding to the system to improve service reliability, conducting research related to performance of the Gas Distribution System or its various components, and making general improvements to the system. Justification Gas Distribution System reliability and adequate capacity are critical to providing a high level of service to customers. When service interruptions occur, customers may experience significant economic losses. The City must continuously evaluate service reliability needs and make improvements to the system to maintain top-level service to City customers. Significant Changes 2020-2024 CIP: Project funding increased in Fiscal Years 2020 to 2024 by $254,000 each year. This project has been consolidated with GS-03009 as the project activities are similar in nature. Fund: Gas Fund Category: System Improvements Project Location: Various locations Managing Department: Utilities Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: GS-11002 Gas system improvements Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Gas Fund N/A 500,000 500,000 500,000 500,000 500,000 500,000 500,000 2,500,000 0 N/A Total N/A 500,000 500,000 500,000 500,000 500,000 500,000 500,000 2,500,000 0 N/A GAS FUND GAS FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 443 Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 500,000 500,000 500,000 500,000 500,000 500,000 500,000 2,500,000 0 N/A Total N/A 500,000 500,000 500,000 500,000 500,000 500,000 500,000 2,500,000 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-7 Policy: N-7.1 Potential Board/Commission Review: Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. GAS FUND 444 GAS FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Gas Equipment and Tools Gas Equipment and Tools Description This project funds the purchase of polyethylene (PE) fusion equipment and tools, directional boring/locating equipment and tools, and general shop equipment and tools. Justification In order to safely operate and maintain a natural gas distribution system and support operating personnel safety and productivity, PE fusion, directional boring/locating, and general equip- ment and tools need to be upgraded on an annual basis. Significant Changes 2019-2023 CIP: Project funding increased to include purchase of new tapping and stopping equipment for Operations. This equipment is required to safely interrupt the flow of gas without performing large shutdowns of service to customers. 2015-2019 CIP: Project was retitled from General Shop Equipment and Tools. Fund: Gas Fund Category: System Improvements Project Location: Municipal Service Center Managing Department: Utilities Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: GS-13002 New HDPE gas pipe being fused prior to installation Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Gas Fund N/A 273,576 273,576 100,000 100,000 100,000 100,000 100,000 500,000 0 N/A Total N/A 273,576 273,576 100,000 100,000 100,000 100,000 100,000 500,000 0 N/A GAS FUND GAS FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 445 Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 273,576 273,576 100,000 100,000 100,000 100,000 100,000 500,000 0 N/A Total N/A 273,576 273,576 100,000 100,000 100,000 100,000 100,000 500,000 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-7 Policy: N-7.1 Potential Board/Commission Review: Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. GAS FUND 446 GAS FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Gas Meters and Regulators Gas Meters and Regulators Description This project provides replacement of the existing meters and regulators at approximately 1,000 meter sets per year. Justification The meter replacement program ensures accuracy of gas consumption measurement, reduces possible revenue loss due to under-registering gas, and provides customers with accurate monthly bills. The program exchanges large meters (630 cubic feet per hour and larger) every 10 years and smaller meters every 17 to 20 years. Significant Changes 2021-2025 CIP: The Advanced Metering Infrastructure (AMI) project, funded through this Capi- tal Project, is expected to replace up to 11,906 gas meters with meters that are compatible with a smart grid system to collect usage information remotely. The remaining 12,287 meters will be assessed for their compatibility with the AMI smart grid and will either be retrofitted or replaced. 2020-2024 CIP: The number of meters replaced annually was updated from 2,000 to 1,000 meters and the annual funding was reduced to $250,000 throughout the 2020-2024 CIP. The division has adjusted the replacement number and budget accordingly after reviewing their workload and available resources. Fund: Gas Fund Category: System Improvements Project Location: Various locations Managing Department: Utilities Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: GS-80019 Gas Meters and Regulators GAS FUND GAS FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 447 Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Gas Fund N/A 250,001 171,000 850,001 1,000,000 1,000,000 500,000 500,000 3,850,001 0 N/A Total N/A 250,001 171,000 850,001 1,000,000 1,000,000 500,000 500,000 3,850,001 0 N/A Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 250,001 171,000 850,001 1,000,000 1,000,000 500,000 500,000 3,850,001 0 N/A Total N/A 250,001 171,000 850,001 1,000,000 1,000,000 500,000 500,000 3,850,001 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Energy Goal: N-7 Policy: N-7.1 Potential Board/Commission Review: Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 449 STORMWATER MANAGEMENT FUND STORMWATER MANAGEMENT FUND 450 STORMWATER MANAGEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET STORMWATER MANAGEM Overview The Stormwater Management Fund Capital Improvement Program (CIP) accounts for activities related to the improvement of the City’s storm drain system (including pipelines, manholes, catch basins, and pump stations). The 2021-2025 CIP includes projects totaling $13.8 million with Fiscal Year 2021 projects totaling $4.2 million. The budget for the Stormwater Management CIP is divided into two categories: Capacity Improvements (projects to upgrade the conveyance capacity of the storm drain system as a whole) and System Rehabilitation (projects for the replacement and rehabilitation of the existing storm drain infrastructure). In April 2017, the Storm Water Management Fee was approved by a majority of property owners via a ballot-by-mail process, establishing a base rate of $13.65 per Equivalent Residential Unit (ERU) per month along with a provision that the City Council could increase the rate on an annual basis by the local inflation rate (as measured by the Consumer Price Index) or 6%, which- ever is less. Under the provisions of the ballot measure, the fee is recommended to be increased by 2.5%, from $14.68 in FY 2020 to $15.04 per ERU for Fiscal Year 2021. Capacity Improvements The Capacity Improvements cat- egory accounts for new or enhanced infrastructure added to the storm drain system, increasing its capacity to convey stormwater runoff to local creeks and San Francisco Bay. In Fiscal Year 2015, an update to the Storm Drain Master Plan resulted in the identification of $98.0 mil- lion in additional recommended storm drainage improvements, with $22.0 million identified as high-priority projects. With the passage of the 2017 Storm Water Management Fee ballot mea- sure, 13 drainage improvement projects will be recommended over the next 13 years. Recent Accomplishments Completed design of the Loma Verde Avenue Trunk Line Improvements project, the first of the 13 high-priority projects included in the 2017 Storm Water Management Fee ballot measure. Initiated the combined design for the Corporation Way System Upgrades and Pump Station project, West Bayshore Road Pump Station project and West Bayshore Road Trunk Line Improvements project with one design consultant. $0 $2,000,000 $4,000,000 $6,000,000 FY 2017 Actuals FY 2019 Actuals FY 2021 Proposed FY 2023 Projected FY 2025 Projected Stormwater Management Fund Capital Expenditures STORMWATER MANAGEMENT FUND STORMWATER MANAGEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 451 2021-2025 Capital Improvement Program Recurring Projects There are no recurring Capacity Improvement projects scheduled. Non-Recurring Projects There are five projects in this category during the 2021-2025 CIP: Corporation Way System Upgrades and Pump Station (Fiscal Year 2021: $1.9 million; 5-Year CIP: $3.7 million) East Meadow Drive System Upgrades (5-Year CIP: $0.8 million) Louis Road System Upgrades (5-Year CIP: $1.8 million) West Bayshore Road Pump Station (Fiscal Year 2021: $0.2 million; 5-Year CIP: $1.5 million) West Bayshore Road Trunk Line Improvements (Fiscal Year 2021: $0.1 million; 5-Year CIP: $2.4 million) Improvements to the trunk storm drain pipelines along Loma Verde Avenue to the Matadero Creek Pump Station will increase capacity, benefiting a watershed area of 1,250-acres including the Midtown and Palo Verde neighborhoods. The upgrade of pipes located under East Meadow Drive between East Meadow Circle and the Adobe Pump Station will reduce flooding in the area. The design and construction of the two new pump stations at Corporation Way and West Bayshore Road will reduce flooding where stormwater is discharged into Adobe Creek. System Rehabilitation The System Rehabilitation category accounts for the replacement or rehabilitation of deterio- rated components of the storm drain system. Funding is budgeted annually to replace or reha- bilitate storm drain pipelines, manholes, catch basins, and pump station equipment. Funding is also budgeted for system modifications needed to accommodate new operational require- ments, such as the mandate in the Municipal Regional Stormwater Discharge Permit to incorpo- rate trash capture devices into the storm drain system to reduce the amount of trash entering local creeks and San Francisco Bay. Recent Accomplishments Completed the design for rehabilitation project to a damaged box culver located at Oregon Expressway to prevent long-term leakage, and began construction of the project. Infrastructure Inventory CLASSIFICATION QUANTITY Storm drain pipelines 130 miles Catch Basins 3,000 Manholes 800 Stormwater pump stations 8 STORMWATER MANAGEMENT FUND 452 STORMWATER MANAGEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 2021-2025 Capital Improvement Program Recurring Projects The 2021-2025 CIP includes funding for one project in this category: Storm Drain System Replacement and Rehabilitation (Fiscal Year 2021: $2.1 million; 5-Year CIP: $3.6 million), focused on the replacement and rehabilitation of the existing storm drain pipelines, manholes, and catch basins. Non-Recurring Projects There are no non-recurring System Rehabilitation projects scheduled. Summary of Capital Activity STORMWATER MANAGEMENT FUND Project Number Project Title FY 2019 Actuals FY 2020 Estimate FY 2021 Proposed FY 2022 FY 2023 FY 2024 FY 2025 5-Year Total Use of Funds Capacity Improvements SD-21000 Corporation Way System Upgrades and Pump Station 0 231,000 1,879,186 1,862,147 0 0 0 3,741,333 SD-22000 East Meadow Drive System Upgrades 0 0 0 0 0 70,757 722,567 793,324 SD-19000 Loma Verde Avenue Trunk Line Improvements 45,028 2,385,900 0 0 0 0 0 0 SD-24000 Louis Road System Upgrades 0 0 0 0 0 291,477 1,488,500 1,779,977 SD-13003 Matadero Creek Storm Water Pump Station and Trunk Line Improvements 1,013,135 10,500 0 0 0 0 0 0 SD-20000 West Bayshore Road Pump Station 2,624 231,000 190,039 438,000 912,990 0 0 1,541,029 SD-23000 West Bayshore Road Trunk Line Improvements 0 0 49,840 0 1,031,635 1,315,000 0 2,396,475 Capacity Improvements Total 1,060,787 2,858,400 2,119,065 2,300,147 1,944,625 1,677,234 2,211,067 10,252,138 System Rehabilitation SD-06101 Storm Drain System Replacement and Rehabilitation 461,993 753,534 2,069,475 282,000 588,000 628,000 0 3,567,475 System Rehabilitation Total 461,993 753,534 2,069,475 282,000 588,000 628,000 0 3,567,475 Total Uses 1,522,780 3,611,934 4,188,540 2,582,147 2,532,625 2,305,234 2,211,067 13,819,613 STORMWATER MANAGEMENT FUND STORMWATER MANAGEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 453 Capacity Improvements STORMWATER MANAGEMENT FUND 454 STORMWATER MANAGEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Corporation Way System Upgrades and Pump Station Corporation Way System Upgrades and Pump Station Description This project provides funding for the design of a new small pump station with 25 cubic feet per second capacity and the upgrade of 700 linear feet of storm drain pipe to 30-inch High Density Polyethylene. Justification The invert elevations of the existing storm drain lines are lower than the outfall and, as a result, this area is subject to flooding problems. Adding a pump in advance of the outfall will eliminate the routine flooding along East Bayshore Road and upsizing the pipe from 21 inches will elimi- nate ponding and increase capacity to convey runoff from a 10-year storm event. Due to hydraulics requirements, the pump station will be constructed before the storm drain line will be replaced. The pump station design is scheduled in Fiscal Year 2020, construction in Fiscal Year 2021, and associated pipe upgrades are scheduled in Fiscal Year 2022 due to funding con- straints. Supplemental Information This project is funded by the Storm Water Management Fee approved via a ballot measure by Palo Alto voters in April 2017. On the ballot, this project is referred to as 2. Corporation Way/E. Bayshore Road Pump Station to Adobe Creek. The need for this project was identified in Fiscal Year 2015 in the Storm Drain Master Plan dated June 2015. The funding amount is based on the engineer's cost estimate prepared for the Storm Drain Master Plan, which references the 2014 Current Construction Cost, Saylor Publications Inc. Fund: Stormwater Management Fund Category: Capacity Improvements Project Location: East Bayshore Road- from Corporation Way to Adobe Creek Managing Department: Public Works Initial Project Start: Summer 2020 Initial Project Completion: Winter 2021 Revised Project Start: Summer 2021 Revised Project Completion: Winter 2022 Project Number: SD-21000 E. Bayshore Road at Corporation Way, 2017 STORMWATER MANAGEMENT FUND STORMWATER MANAGEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 455 Significant Changes 2021-2025 CIP: This project will be designed concurrently with West Bayshore Road Pump Sta- tion (SD-20000), and construction will take place in FY 2021 and FY 2022. 2020-2024 CIP: Design and construction expenses were adjusted by 3% to account for escala- tion. 2019-2023 CIP: Previously split between Storm Drainage Pump Stations to Adobe Creek (SD- 20000) and Storm Drainage System Upgrades-East Bayshore Road and East Meadow Drive (SD-22000), the scope of this project was combined in alignment with the 13 projects approved in April 2017 as part of the Storm Water Management Fee ballot measure. Operating Impact This project is anticipated to impact operating expenses in the future with costs for electricity to serve the pump station; future routine inspections; and maintenance of the mechanical, elec- trical, and fiber operating systems. As these costs are quantified, and if the department deter- mines they cannot be absorbed within the available maintenance schedule and annual operating budget, adjustments will be brought forward in future budgets, as necessary. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Stormwater Management Fund 0 231,000 231,000 1,879,186 1,862,147 0 0 0 3,741,333 0 3,741,333 Total 0 231,000 231,000 1,879,186 1,862,147 0 0 0 3,741,333 0 3,972,333 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 1,699,147 1,862,147 0 0 0 3,561,294 0 3,792,294 Design 0 231,000 231,000 180,039 0 0 0 0 180,039 0 411,039 Total 0 231,000 231,000 1,879,186 1,862,147 0 0 0 3,741,333 0 3,972,333 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-4.14 Potential Board/Commission Review: Storm Drain Oversight Committee Environmental Impact Analysis: This project is expected to have an exemption from CEQA under Section 15302. STORMWATER MANAGEMENT FUND 456 STORMWATER MANAGEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET East Meadow Drive System Upgrades East Meadow Drive System Upgrades Description This project provides funding for the upgrade of approximately 400 linear feet of 36-inch pipe located in East Meadow Drive between East Meadow Circle and the Adobe Pump Station. Justification Upgrading this segment of pipe to 48-inches will reduce flooding, contain runoff from a 10-year storm event, and allow for upstream improvements at a later date. Along with the new pipelines, this project will also replace storm drain manholes, reconnect and/or install new inlets, and con- nect lines to the pump station. Supplemental Information This project is funded by the Storm Water Management Fee approved via a ballot measure by Palo Alto voters in April 2017. On the ballot, this project is referred to as 7. East Meadow Drive to Adobe Creek Pump Station capacity upgrades. The need for this project was identified in Fiscal Year 2015 and ranked as highest priority on the Storm Drain Master Plan dated June 2015. The funding amount shown here is based on the engineer's cost estimate prepared for the 2015 Storm Drain Master Plan, which references the 2014 Current Construction Cost, Saylor Publica- tions Inc. Significant Changes 2021-2025 CIP: Due to limited funds, rising construction costs, and prioritization of other higher ranked projects, the design of this project is scheduled for FY 2024 and construction for FY 2025. Fund: Stormwater Management Fund Category: Capacity Improvements Project Location: East Meadow Drive from East Meadow Circle to Adobe Creek Pump Station Managing Department: Public Works Initial Project Start: Winter 2021 Initial Project Completion: Winter 2022 Revised Project Start: Summer 2023 Revised Project Completion: Winter 2024 Project Number: SD-22000 East Meadow Drive STORMWATER MANAGEMENT FUND STORMWATER MANAGEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 457 2020-2024 CIP: Design and construction expenses were adjusted by 3% to account for escala- tion. 2019-2023 CIP: Previously incorporating two separate projects, the scope of this project was separated in alignment with the 13 projects approved in April 2017 as part of the Storm Water Management Fee ballot measure. SD-22000 was renamed East Meadow Drive System Upgrades from the previous title Storm Drainage System Upgrades - East Bayshore Road and East Meadow Drive in the 2018-2022 CIP. Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Stormwater Management Fund 0 0 0 0 0 0 70,757 722,567 793,324 0 793,324 Total 0 0 0 0 0 0 70,757 722,567 793,324 0 793,324 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 0 0 0 0 722,567 722,567 0 722,567 Design 0 0 0 0 0 0 70,757 0 70,757 0 70,757 Total 0 0 0 0 0 0 70,757 722,567 793,324 0 793,324 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-4.14 Potential Board/Commission Review: Storm Drain Oversight Committee Environmental Impact Analysis: This project is expected to have an exemption from CEQA under Section 15302. STORMWATER MANAGEMENT FUND 458 STORMWATER MANAGEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Louis Road System Upgrades Louis Road System Upgrades Description This project provides funding to install 1,100 linear feet of new high density polyethylene storm drain pipe, concrete inlets and manholes northwest of Sycamore Drive to a new outfall with a flap-gate at Matadero Creek. Justification Installing new storm drain improvements will divert flows that currently drain into Colorado Ave- nue directly into Matadero Creek. In addition the proposed 72-inch pipe will provide storage during the storm peak. This is recommended to alleviate flooding in the pipes northwest of Syc- amore Drive and achieve a 10 year level of service. Supplemental Information This project is funded by the Storm Water Management Fee approved via a ballot measure by Palo Alto residents in April 2017. The need for this project was identified in Fiscal Year 2015 and this project ranked as high-priority on the Storm Drain Master Plan dated June 2015. This is the eleventh project on the Storm Drain Blue Ribbon Committee Recommended list that was described to voters. Once this project is complete, other upstream improvements along Louis Road can be scheduled. The funding amount shown is based on the engineer's estimate pre- pared for the Storm Drain Master Plan, which references the 2014 Current Construction Cost, Saylor Publications Inc., and includes a 3% annual increase for escalation. Fund: Stormwater Management Fund Category: Capacity Improvements Project Location: Louis Road from Sycamore Drive to Matadero Creek Managing Department: Public Works Initial Project Start: Fall 2023 Initial Project Completion: Winter 2024 Revised Project Start: Revised Project Completion: Summer 2025 Project Number: SD-24000 Intersection of Louis Road and Clara Drive STORMWATER MANAGEMENT FUND STORMWATER MANAGEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 459 Significant Change 2021-2025 CIP: Construction delayed due to staffing constraints and moved to FY 2025 and FY 2026. Design funding increased to add scope for surveying and potholing. Construction increased using 3% escalation. Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Stormwater Management Fund 0 0 0 0 0 0 291,477 1,488,500 1,779,977 1,140,725 2,920,702 Total 0 0 0 0 0 0 291,477 1,488,500 1,779,977 1,140,725 2,920,702 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 0 0 0 0 1,488,500 1,488,500 1,140,725 2,629,225 Design 0 0 0 0 0 0 291,477 0 291,477 0 291,477 Total 0 0 0 0 0 0 291,477 1,488,500 1,779,977 1,140,725 2,920,702 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-4.14 Potential Board/Commission Review: Storm Drain Oversight Committee Environmental Impact Analysis: This project is expected to have an exemption from CEQA under Section 15302. STORMWATER MANAGEMENT FUND 460 STORMWATER MANAGEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET West Bayshore Road Pump Station West Bayshore Road Pump Station Description This project provides funding for the design and construction of a new small pump station with 15 cubic feet per second capacity. Justification The invert elevations of the existing storm drain lines are lower than the outfall. As such, this area is subject to flooding problems. Adding a pump in advance of the outfall would eliminate the routine flooding along West Bayshore Road. The pump station design is scheduled for Fis- cal Year 2020 and construction is scheduled for Fiscal Year 2021. Supplemental Information This project is funded by the Storm Water Management Fee approved via a ballot measure by Palo Alto voters in April 2017. On the ballot, this project is referred to as 4. West Bayshore Road Pump Station to Adobe Creek. The need for this project was identified in Fiscal Year 2015 and ranked as highest priority on the Storm Drain Master Plan dated June 2015. The funding amount shown here is based on the engineer's cost estimate prepared for the Storm Drain Master Plan, which references the 2014 Current Construction Cost, Saylor Publications Inc. Significant Changes 2021-2025 CIP: This project will be designed concurrently with Corporation Way System Upgrades and Pump Station (SD-21000). However, due to limited funds these projects cannot be constructed in the same year. Since SD-21000 is ranked as the highest priority on the Storm Drain Master Plan, construction of SD-20000 is now scheduled for FY 2023. Fund: Stormwater Management Fund Category: Capacity Improvements Project Location: West Bayshore Road at Adobe and Barron Creek junction Managing Department: Public Works Initial Project Start: Summer 2019 Initial Project Completion: Winter 2021 Revised Project Start: Winter 2019 Revised Project Completion: Winter 2022 Project Number: SD-20000 Location of New West Bayshore Pump Station STORMWATER MANAGEMENT FUND STORMWATER MANAGEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 461 2020-2024 CIP: Design and construction expenses were adjusted by 3% to account for escala- tion. 2019-2023 CIP: Previously incorporating two separate projects, the scope of this project was separated in alignment with the 13 projects approved in April 2017 as part of the Storm Water Management Fee ballot measure. SD-20000 was renamed West Bayshore Road Pump Station from the previous title Storm Drain Pump Stations to Adobe Creek in the 2018-2022 CIP. Operating Impact This project is anticipated to impact operating expenses in the future with costs for electricity to serve the pump station; future routine inspections; and maintenance of the mechanical, elec- trical, and fiber operating systems. As these costs are quantified, and if the department deter- mines they cannot be absorbed within the available maintenance schedule and annual operating budget, adjustments will be brought forward in future budgets, as necessary. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Stormwater Management Fund 2,624 231,000 231,000 190,039 438,000 912,990 0 0 1,541,029 0 1,774,653 Total 2,624 231,000 231,000 190,039 438,000 912,990 0 0 1,541,029 0 1,774,653 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 0 438,000 912,990 0 0 1,350,990 0 1,350,990 Design 2,624 231,000 231,000 190,039 0 0 0 0 190,039 0 423,663 Total 2,624 231,000 231,000 190,039 438,000 912,990 0 0 1,541,029 0 1,774,653 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-4.14 Potential Board/Commission Review: Storm Drain Oversight Committee Environmental Impact Analysis: This project is expected to have an exemption from CEQA under Section 15302. STORMWATER MANAGEMENT FUND 462 STORMWATER MANAGEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET West Bayshore Road Trunk Line Improvements West Bayshore Road Trunk Line Improvements Description This project provides funding to upgrade 1,400 linear feet of storm drain pipe with 36-inch High Density Polyethylene. Justification Upsizing the existing 15-inch pipes will eliminate ponding and increase the capacity required to convey runoff from a 10-year storm event along West Bayshore Road. Supplemental Information This project is funded by the Storm Water Management Fee approved via ballot measure by Palo Alto voters in April 2017. The need for this project was identified in Fiscal Year 2015 and ranked as a high priority in the Storm Drain Master Plan dated June 2015. This is the third project on the Storm Drain Blue Ribbon Committee Recommended list that was described to voters. The funding amount shown is based on the engineer's estimate prepared for the Storm Drain Master Plan, which references the 2014 Current Construction Cost, Saylor Publications Inc., and includes a 3% annual increase for escalation. Significant Changes 2021-2025 CIP: This project is part of the same system as SD-20000 and SD-21000, so a con- sultant will analyze and design the entire system up to and including the associated pump sta- tion. Design is scheduled to occur in FY 2021, but construction of SD-23000 will be delayed to FY 2023. Fund: Stormwater Management Fund Category: Capacity Improvements Project Location: West Bayshore Road from Adobe Creek to Loma Verde Avenue Managing Department: Public Works Initial Project Start: Spring 2021 Initial Project Completion: Summer 2024 Revised Project Start: Revised Project Completion: Project Number: SD-23000 West Bayshore Road, North of Adobe and Barron Creek confluence STORMWATER MANAGEMENT FUND STORMWATER MANAGEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 463 Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Stormwater Management Fund 0 0 0 49,840 0 1,031,635 1,315,000 0 2,396,475 0 2,396,475 Total 0 0 0 49,840 0 1,031,635 1,315,000 0 2,396,475 0 2,396,475 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 0 0 1,031,635 1,315,000 0 2,346,635 0 2,346,635 Design 0 0 0 49,840 0 0 0 0 49,840 0 49,840 Total 0 0 0 49,840 0 1,031,635 1,315,000 0 2,396,475 0 2,396,475 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-4.14 Program: N4.14.2 Potential Board/Commission Review: Storm Drain Oversight Committee Environmental Impact Analysis: This project is expected to have an exemption from CEQA under Section 15302. STORMWATER MANAGEMENT FUND STORMWATER MANAGEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 465 System Rehabilitation STORMWATER MANAGEMENT FUND 466 STORMWATER MANAGEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Storm Drainage System Replacement And Rehabilitation Storm Drainage System Replacement And Rehabilitation Description This project provides funding for annual replacement and rehabilitation projects, identified by a previous condition assessment, to help maintain the integrity of the storm drain system, includ- ing the replacement or rehabilitation of deteriorated storm drain pipes, manholes, and storm drain inlets. Justification The project implements the recommendations established by the 1993 Storm Drain Condition Assessment Report. The specific pipes and drainage structures selected for replacement and/or rehabilitation were determined based on their 1993 condition score and recommendations by field maintenance staff. The pipelines and structures need to be replaced since they are approaching the end of their intended useful life. Supplemental Information The proposed improvements are feasible due to the passing of the Storm Water Management Fee ballot measure. Several of the highest priority projects are located under Page Mill Road and will be coordinated as part of a resurfacing project. Pipe and structure replacements also include recommendations by field maintenance staff who inspect structures during routine inlet and pipe cleaning, identifying broken segments or structures. Lastly, if an existing storm drain line is located near or within another public improvement project, replacement may be war- ranted to extend useful life and/or avoid limited future access. Fund: Stormwater Management Fund Category: System Rehabilitation Project Location: Various Managing Department: Public Works Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: SD-06101 Storm Drain Repair & Rehabilitation STORMWATER MANAGEMENT FUND STORMWATER MANAGEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 467 Fiscal Year 2021: New program logic controllers (PLC) will be installed to operate the pump sta- tions associated with SD-21000 and SD-20000. Fiscal Year 2022: Replace or line a low priority lines as identified by staff during the 2017 inspections. Fiscal Year 2023: Remove sediment and debris within the 6'x6' box culvert located above Ore- gon Expressway to improve flows. Fiscal Year 2024: Hire a consultant to design a cat-walk along Matadero Creek pump station trash rack to facilitate clean-up. Fiscal Year 2025: No work planned. Significant Changes 2021-2025 CIP: Reappropriated funding will be used to replace or rehabilitate broken pipes and catch basins identified in the last inspection. Additional funding will return to the storm drain fund to help support other Storm capital improvement program project increases. 2019-2023 CIP: Replace pipes within Page Mill ranked high priority and pipes within public util- ity easements associated with public infrastructure. Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Stormwater Management Fund N/A 2,737,784 753,534 2,069,475 282,000 588,000 628,000 0 3,567,475 0 N/A Total N/A 2,737,784 753,534 2,069,475 282,000 588,000 628,000 0 3,567,475 0 N/A Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 2,701,957 753,534 2,069,475 282,000 588,000 628,000 0 3,567,475 0 N/A Design N/A 35,827 0 0 0 0 0 0 0 0 N/A Total N/A 2,737,784 753,534 2,069,475 282,000 588,000 628,000 0 3,567,475 0 N/A STORMWATER MANAGEMENT FUND 468 STORMWATER MANAGEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-4.14 Potential Board/Commission Review: Storm Drain Oversight Committee Environmental Impact Analysis: This project is exempt from CEQA under Section 15302. CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 469 WASTEWATER COLLECTION FUND WASTEWATER COLLECTION FUND 470 WASTEWATER COLLECTION FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET WASTEWATER COLLE Overview The City of Palo Alto is the only municipality in California that operates a full suite of City- owned utility services. The municipal Wastewater Collection System began operation in 1898 and continues to provide safe, reliable, and cost effective services to residents and customers of Palo Alto. For the 2021-2025 Capital Improvement Program (CIP), approximately $24.7 million in expenses is projected, with $4.5 million allocated in Fiscal Year 2021. Overall, a total of 8 proj- ects are programmed for the 5-year CIP. Major projects funded in the 2021-2025 CIP include Wastewa- ter Collection System Rehabilita- tion/Augmentation projects (cumulative total of $16.9 mil- lion), Sewer Lateral/Manhole Rehabilitation and Replacement ($4.3 million), and Sewer System, Customer Connections ($2.2 mil- lion). The budget for the Waste- water Collection Fund CIP is categorized into two separate types of projects: Customer Connections and System Improvements. Customer Connections As customers continually change their wastewater needs due to equipment additions, new con- struction, building expansions, building remodels, teardowns and rebuilds, and new building occupancy types, the Wastewater Collection System must evolve to meet these needs. The Sewer System Customer Connections project is the only project within this category and includes work required to meet the needs of customers who have applied for new sewer later- als. The Wastewater Collection Fund pays for a portion of this project while remaining costs are supported by reimbursements from customers for project work performed by the City. Recent Accomplishments In Fiscal Year 2019, the Utilities Wastewater Division completed over 56 customer service projects with a total cost of $0.7 million. Infrastructure Inventory CLASSIFICATION QUANTITY Total miles of sanitary sewer lines 216.3 Total number of sanitary laterals 18,028 $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 FY 2017Actuals FY 2019Actuals FY 2021Projected FY 2023Projected FY 2024Projected Wastewater Collection Fund Capital Expenditures WASTEWATER COLLECTION FUND WASTEWATER COLLECTION FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 471 2021-2025 Capital Improvement Program Recurring Projects There is one project within this category, the Sewer System, Customer Connections project, with funding of $2.2 million over the 5 year CIP. This project funds changes to customer connec- tions and costs are partially offset by reimbursements from customers requesting the service. System Improvement To ensure reliable wastewater services for the City of Palo Alto residents and customers, infra- structure must be replaced upon reaching the end of its useful life. The infrastructure replace- ment program includes projects that will rehabilitate or replace deteriorated pipelines. In the next five years, it is estimated that approximately 40,000 linear feet of wastewater mains will be replaced. Recent Accomplishments Completed construction of Sanitary Sewer Replacement Project (SSR 28) Part B to replace approximately 7,655 feet of sewer pipes, 77 service laterals, and 12 manholes on Oregon Expressway and rehabilitate 2,000 linear feet of sewer main pipelines on lower Page Mill Road and Colorado Avenue. Completed design and solicitation package of Sanitary Sewer Replacement Project (SSR 29) to replace approximately 8,952 linear feet of sanitary sewer mains, as well as replacement and rehabilitation of 41 sewer manholes in the Charleston Meadows neighborhood. The existing clay pipe mains will be replaced with High Density Polyethylene pipe. In addition, 154 existing City-owned sewer service laterals and cleanouts will be replaced with new 4“ and 6“ service laterals and cleanouts. 2021-2025 Capital Improvement Program Recurring Projects A total of $5.6 million is programmed for System Improvement recurring projects in the 2021- 2025 CIP, with $1.3 million allocated in Fiscal Year 2021. Recurring projects in this category include the following: Wastewater System Improvements (Fiscal Year 2021: $0.2 million; 5-Year CIP: $1.0 million) Wastewater General Equipment and Tools (Fiscal Year 2021: $0.2 million; 5-Year CIP: $0.4 million) Sewer Lateral/Manhole Rehabilitation and Replacement (Fiscal Year 2021: $0.9 million; 5- Year CIP: $4.3 million) Non-Recurring Projects The majority of funding within this category is allocated towards Wastewater Collection System Rehabilitation/Augmentation Projects (cumulative total of $16.9 million). These projects imple- ment high-priority rehabilitation, augmentation, and lateral replacement work which reduces inflow of rainfall and groundwater into the collection system. The Utilities Department coordi- WASTEWATER COLLECTION FUND 472 WASTEWATER COLLECTION FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET nates with the Public Works Department’s street maintenance projects to minimize damage to the City’s pavement and maximize cost efficiencies. Linear footage and locations are subject to change, please refer to the City of Palo Alto Utilities webpage to confirm project details: www.cityofpaloalto.org/gov/depts/utl/projects/default.asp. Summary of Capital Activity WASTEWATER COLLECTION FUND Project Number Project Title FY 2019 Actuals FY 2020 Estimate FY 2021 Proposed FY 2022 FY 2023 FY 2024 FY 2025 5-Year Total Source of Funds Other Revenues WC-80020 Sewer System, Customer Connections 597,315 430,534 300,000 300,000 300,000 300,000 300,000 1,500,000 Other Revenue Total 597,315 430,534 300,000 300,000 300,000 300,000 300,000 1,500,000 Total Sources 597,315 430,534 300,000 300,000 300,000 300,000 300,000 1,500,000 Use of Funds Customer Connections WC-80020 Sewer System, Customer Connections 301,755 445,000 420,000 450,000 450,000 450,000 450,000 2,220,000 Customer Connections Total 301,755 445,000 420,000 450,000 450,000 450,000 450,000 2,220,000 System Improvements WC-99013 Sewer Lateral/Manhole Rehabilitation and Replacement 802,497 944,728 876,000 800,000 825,000 850,000 875,500 4,226,500 WC-15001 Wastewater Collection System Rehabilitation/ Augmentation Project 28 430,621 0 0 0 0 0 0 0 WC-16001 Wastewater Collection System Rehabilitation/ Augmentation Project 29 113,466 300,000 1,638,000 0 0 0 0 1,638,000 WC-17001 Wastewater Collection System Rehabilitation/ Augmentation Project 30 0 200,000 1,221,000 5,500,000 0 0 0 6,721,000 WC-19001 Wastewater Collection System Rehabilitation/ Augmentation Project 31 0 0 0 0 1,650,000 5,200,000 0 6,850,000 WC-20000 Wastewater Collection System Rehabilitation/ Augmentation Project 32 0 0 0 0 0 0 1,650,000 1,650,000 WC-13002 Wastewater General Equipment and Tools 0 30,000 185,000 50,000 50,000 50,000 50,000 385,000 WC-15002 Wastewater System Improvements 0 260,000 200,000 200,000 200,000 200,000 200,000 1,000,000 System Improvements Total 1,346,584 1,734,728 4,120,000 6,550,000 2,725,000 6,300,000 2,775,500 22,470,500 Total Uses 1,648,339 2,179,728 4,540,000 7,000,000 3,175,000 6,750,000 3,225,500 24,690,500 WASTEWATER COLLECTION FUND WASTEWATER COLLECTION FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 473 Customer Connections WASTEWATER COLLECTION FUND 474 WASTEWATER COLLECTION FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Sewer System, Customer Connections Sewer System, Customer Connections Description This project provides for the installation of sewer lateral connections, additions of existing mains, and extensions of mains for new or existing customers. Justification It is necessary to provide sewer connections to serve new customers and to respond to changes in sewer requirements due to redevelopment. Old existing non-plastic sewer service laterals become cracked and broken by tree root intrusion, ground movement, and third party excava- tion damages requiring the laterals to be replaced. Supplemental Information Other funding sources include customer connection and capacity fees for connecting to the Wastewater Collection System. Capacity fees are collected through connection charges to cover the proportionate cost of system improvements required to serve new customers. Significant Changes 2021-2025 CIP: The annual amount budgeted for this project has been decreased to align with actual costs experienced in prior years for this project. 2015-2019 CIP: This project was previously titled Sewer System Extension. As part of the Fiscal Year 2015 budget, it was retitled to more accurately reflect the work done with this funding. Fund: Wastewater Collection Fund Category: Customer Connections Project Location: Various locations Managing Department: Utilities Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: WC-80020 Sewer System, Customer Connections WASTEWATER COLLECTION FUND WASTEWATER COLLECTION FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 475 Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Other N/A 430,534 430,534 300,000 300,000 300,000 300,000 300,000 1,500,000 0 N/A Wastewater Collection Fund N/A 189,649 14,466 120,000 150,000 150,000 150,000 150,000 720,000 0 N/A Total N/A 620,183 445,000 420,000 450,000 450,000 450,000 450,000 2,220,000 0 N/A Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 620,183 445,000 420,000 450,000 450,000 450,000 450,000 2,220,000 0 N/A Total N/A 620,183 445,000 420,000 450,000 450,000 450,000 450,000 2,220,000 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-4.16 Program: N4.16.1 Potential Board/Commission Review: Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. WASTEWATER COLLECTION FUND WASTEWATER COLLECTION FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 477 System Improvements WASTEWATER COLLECTION FUND 478 WASTEWATER COLLECTION FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Sewer Lateral/Manhole Rehabilitation and Replacement Sewer Lateral/Manhole Rehabilitation and Replacement Description This project will replace defective sewer laterals, cleanouts, and manholes; install backwater devices; and purchase equipment to support these activities in order to maintain the Wastewa- ter Collection System. Information collected during routine annual maintenance activities is used to prioritize work. Defective laterals, for example, will be replaced to re-establish existing services, reduce maintenance expenses, and eliminate ground water intrusion. Backwater devices will be installed to reduce backflows of sewage. New manholes will be installed or reha- bilitated to improve structural integrity. Justification The work will help reduce both the backflow of sewage onto private property and the City's treatment expenses. This project also cleans and takes videos of sewer collection mains and lat- erals as necessary. Significant Changes 2021-2025 CIP: Due to the anticipated cost for construction, the budget was increased for this multi-year lateral replacement project. Upon analysis, the bid result indicated that the contrac- tor’s cost is dramatically higher than in-house cost, therefore WWC Operations decided to per- form the work themselves. It is anticipated that this budget will be adjusted downward to align with refined estimates of completing it in-house. Fund: Wastewater Collection Fund Category: System Improvements Project Location: Various locations Managing Department: Utilities Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: WC-99013 Sewer manhole base WASTEWATER COLLECTION FUND WASTEWATER COLLECTION FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 479 Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Wastewater Collection Fund N/A 848,228 944,728 876,000 800,000 825,000 850,000 875,500 4,226,500 875,000 N/A Total N/A 848,228 944,728 876,000 800,000 825,000 850,000 875,500 4,226,500 875,000 N/A Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 848,228 944,728 876,000 800,000 825,000 850,000 875,500 4,226,500 875,000 N/A Total N/A 848,228 944,728 876,000 800,000 825,000 850,000 875,500 4,226,500 875,000 N/A Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-4.16 Program: N4.16.1 Potential Board/Commission Review: Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. WASTEWATER COLLECTION FUND 480 WASTEWATER COLLECTION FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Wastewater Collection System Rehabilitation/Augmentation Project 29 Wastewater Collection System Rehabilitation/Augmentation Project 29 Description This project funds the design and construction of high priority main and lateral replacement work, which reduces inflow of rainfall and groundwater into the collection system. The project replaces 9,965 linear feet (which represents 0.9% of the City's Wastewater Collection System) for large sections in the Charleston neighborhood and along several streets on El Camino Real. The project will be comprised of laterals identified in video inspection work or through mainte- nance records as deficient and in need of replacement. Priority will be given to areas identified by Public Works as targeted work zones ensuring infrastructure coordination among different City departments. Justification The 2004 Collection System Master Plan (Master Plan Study) update indicated certain facilities are in need of enlargement to handle growth and peak flows. The mains selected for replace- ment and/or rehabilitation are informed by the Master Plan Study; research and analysis of sewer main maintenance records; cleaning and videotaping of sanitary sewer mains; condition assessment; real time flow monitoring of existing sewers; and hydraulic computer modeling. Supplemental Information Linear footage and locations are subject to change, please refer to the City of Palo Alto Utilities webpage to confirm project details. Fund: Wastewater Collection Fund Category: System Improvements Project Location: Various locations Managing Department: Utilities Initial Project Start: Summer 2017 Initial Project Completion: Winter 2019 Revised Project Start: Summer 2019 Revised Project Completion: Fall 2020 Project Number: WC-16001 Rehabilitation Equipment WASTEWATER COLLECTION FUND WASTEWATER COLLECTION FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 481 Significant Changes 2020-2024 CIP: Project footage has been decreased by 4,387 linear feet. 2019-2023 CIP: Project budget has increased by $0.9 million to account for construction cost escalation. 2018-2022 CIP: Due to delays in SSR 24, 25, 26, and 27, the construction for this project is post- poned to FY 2020. Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Wastewater Collection Fund 113,466 4,394,839 300,000 1,638,000 0 0 0 0 1,638,000 0 2,051,466 Total 113,466 4,394,839 300,000 1,638,000 0 0 0 0 1,638,000 0 2,051,466 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 4,024,466 300,000 1,638,000 0 0 0 0 1,638,000 0 1,938,000 Design 113,466 370,373 0 0 0 0 0 0 0 0 113,466 Total 113,466 4,394,839 300,000 1,638,000 0 0 0 0 1,638,000 0 2,051,466 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-4.16 Program: N4.16.1 Potential Board/Commission Review: Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. WASTEWATER COLLECTION FUND 482 WASTEWATER COLLECTION FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Wastewater Collection System Rehabilitation/Augmentation Project 30 Wastewater Collection System Rehabilitation/Augmentation Project 30 Description 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. Justification The 2004 Collection System Master Plan (Master Plan Study) update indicated certain facilities are in need of enlargement to handle growth and peak flows. The mains selected for replace- ment and/or rehabilitation are informed by the Master Plan Study; research and analysis of sewer main maintenance records; cleaning and videotaping of sanitary sewer mains; condition assessment; real time flow monitoring of existing sewers; and hydraulic computer modeling. Supplemental Information Linear footage and locations are subject to change, please refer to the City of Palo Alto Utilities webpage to confirm project details. Fund: Wastewater Collection Fund Category: System Improvements Project Location: Managing Department: Utilities Initial Project Start: Summer 2018 Initial Project Completion: Winter 2020 Revised Project Start: Summer 2020 Revised Project Completion: Winter 2022 Project Number: WC-17001 Trenching for installation of High Density Polyethylene (HDPE) sewer main by open trench method WASTEWATER COLLECTION FUND WASTEWATER COLLECTION FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 483 Significant Changes 2020-2024 CIP: City staff has proposed a new replacement schedule of completing a water, gas and wastewater construction project every other year instead of annually to reduce the amount of construction when prices are high. In the last few years there have been fewer bid- ders and higher prices on construction projects due to the increased demand for construction services. The overall project budget has increased by $2.3 million to account for a reduction of 3,614 in linear feet and construction cost escalation. 2019-2023 CIP: Project budget has increased by $0.9 million to account for construction cost escalation. 2018-2022 CIP: Due to delays in SSR 24, 25, 26, and 27, the construction for this project is post- poned to FY 2021. Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Wastewater Collection Fund 0 421,684 200,000 1,221,000 5,500,000 0 0 0 6,721,000 0 6,921,000 Total 0 421,684 200,000 1,221,000 5,500,000 0 0 0 6,721,000 0 6,921,000 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 1,000,000 5,500,000 0 0 0 6,500,000 0 6,500,000 Design 0 421,684 200,000 221,000 0 0 0 0 221,000 0 421,000 Total 0 421,684 200,000 1,221,000 5,500,000 0 0 0 6,721,000 0 6,921,000 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-4.16 Program: N4.16.1 Potential Board/Commission Review: Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. WASTEWATER COLLECTION FUND 484 WASTEWATER COLLECTION FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Wastewater Collection System Rehabilitation/Augmentation Project 31 Wastewater Collection System Rehabilitation/Augmentation Project 31 Description This project funds the design and construction of high priority lateral replacement work, which reduces inflow of rainfall and groundwater into the collection system. The project replaces 12,874 linear feet (which represents 1.1% of the City's Wastewater Collection System) for various streets in the City, including Old Palo Alto, Ventura, and Green Acres neighborhoods. The proj- ect will be comprised of laterals identified in video inspection work or through maintenance records as deficient and in need of replacement. Priority will be given to areas identified by Pub- lic Works as targeted work zones ensuring coordination between departments. Justification The 2004 Collection System Master Plan (Master Plan Study) update indicated certain facilities are in need of enlargement to handle growth and peak flows. The mains selected for replace- ment and/or rehabilitation are informed by the Master Plan Study; research and analysis of sewer main maintenance records; cleaning and videotaping of sanitary sewer mains; condition assessment; real time flow monitoring of existing sewers; and hydraulic computer modeling. Supplemental Information Linear footage and locations are subject to change, please refer to the City of Palo Alto Utilities webpage to confirm project details. Fund: Wastewater Collection Fund Category: System Improvements Project Location: Various locations Managing Department: Utilities Initial Project Start: Summer 2019 Initial Project Completion: Winter 2021 Revised Project Start: Summer 2023 Revised Project Completion: Winter 2024 Project Number: WC-19001 Sewer Trench Line WASTEWATER COLLECTION FUND WASTEWATER COLLECTION FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 485 Significant Changes 2020-2024 CIP: City staff has proposed a new replacement schedule of completing a water, gas and wastewater construction project every other year instead of annually to reduce the amount of construction when prices are high. In the last few years there have been fewer bid- ders and higher prices on construction projects due to the increased demand for construction services. The overall project budget has increased by $2.3 million and decreased in linear foot- age by 12,109 to account for construction cost escalation. 2019-2023 CIP: Project budget has increased by $1.0 million to account for construction cost escalation. 2018-2022 CIP: Due to delays in WCSR 24, 25, 26, and 27, the construction for this project is postponed to FY 2022. Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Wastewater Collection Fund 0 0 0 0 0 1,650,000 5,200,000 0 6,850,000 0 6,850,000 Total 0 0 0 0 0 1,650,000 5,200,000 0 6,850,000 0 6,850,000 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 0 0 475,000 4,994,000 0 5,469,000 0 5,469,000 Design 0 0 0 0 0 1,175,000 206,000 0 1,381,000 0 1,381,000 Total 0 0 0 0 0 1,650,000 5,200,000 0 6,850,000 0 6,850,000 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-4.16 Program: N4.16.1 Potential Board/Commission Review: Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. WASTEWATER COLLECTION FUND 486 WASTEWATER COLLECTION FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Wastewater Collection System Rehabilitation/Augmentation Project 32 Wastewater Collection System Rehabilitation/Augmentation Project 32 Description This project funds the design and construction of high priority main and lateral replacement work, which reduces inflow of rainfall and groundwater into the collection system. The project replaces approximately 15,437 linear feet (which represents 1% of the City's Wastewater Collec- tion System) for various streets in the City, including sections in the Midtown/Midtown West and Palo Verde neighborhoods and a portion of University Avenue in the Crescent Park neigh- borhood. 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. Justification The 2004 Collection System Master Plan (Master Plan Study) update indicated certain facilities are in need of enlargement to handle growth and peak flows. The mains selected for replace- ment and/or rehabilitation are informed by the Master Plan Study; research and analysis of sewer main maintenance records; cleaning and videotaping of sanitary sewer mains; condition assessment; real time flow monitoring of existing sewers; and hydraulic computer modeling. Supplemental Information Linear footage and locations are subject to change, please refer to the City of Palo Alto Utilities webpage to confirm project details. Fund: Wastewater Collection Fund Category: System Improvements Project Location: Various locations Managing Department: Utilities Initial Project Start: Summer 2020 Initial Project Completion: Winter 2022 Revised Project Start: Summer 2024 Revised Project Completion: Winter 2026 Project Number: WC-20000 Sewer Main Replacement Project using Pipe Bursting Method WASTEWATER COLLECTION FUND WASTEWATER COLLECTION FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 487 Significant Changes 2020-2024 CIP: City staff has proposed a new replacement schedule of completing a water, gas and wastewater construction project every other year instead of annually to reduce the amount of construction when prices are high. In the last few years there have been fewer bid- ders and higher prices on construction projects due to the increased demand for construction services. The overall project budget has increased by $2.3 million to account for construction cost escalation. 2019-2023 CIP: Project budget has increased by $1.0 million to account for construction cost escalation. 2018-2022 CIP: Due to delays in WCSR 24, 25, 26, and 27, the construction for this project is postponed to FY 2023. Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Wastewater Collection Fund 0 0 0 0 0 0 0 1,650,000 1,650,000 5,500,000 7,150,000 Total 0 0 0 0 0 0 0 1,650,000 1,650,000 5,500,000 7,150,000 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 0 0 0 0 1,490,000 1,490,000 5,500,000 6,990,000 Design 0 0 0 0 0 0 0 160,000 160,000 0 160,000 Total 0 0 0 0 0 0 0 1,650,000 1,650,000 5,500,000 7,150,000 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-4.16 Program: N4.16.1 Potential Board/Commission Review: Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. WASTEWATER COLLECTION FUND 488 WASTEWATER COLLECTION FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Wastewater General Equipment and Tools Wastewater General Equipment and Tools Description This funding allows for the acquisition of new fusion equipment and other associated tools. This equipment is used to fuse together pipe joints in the City's Wastewater Collection System. Justification As the equipment ages, the quality of the fusion joints begin to decline and the operators must spend more time scraping, aligning, and fusing construction joints. In order to maintain high quality standards for the installation of the City's wastewater collection mains, along with the associated service standards and worker safety and productivity measures, equipment and tools require continuous upgrades. Significant Changes 2021-2024 CIP: Project increased from $50,000 to $185,000 for FY 2021. This funding enables the purchase of a new trailer flusher (pressure washer) and replacement of new closed-circuit television equipment. 2015-2019 CIP: Project was retitled from Wastewater Fusion and General Equipment/Tools. Fund: Wastewater Collection Fund Category: System Improvements Project Location: Municipal Service Center Managing Department: Utilities Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: WC-13002 Equipment used to install fuse High Density Polyethylene (HDPE) pipe WASTEWATER COLLECTION FUND WASTEWATER COLLECTION FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 489 Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Wastewater Collection Fund N/A 50,000 30,000 185,000 50,000 50,000 50,000 50,000 385,000 0 N/A Total N/A 50,000 30,000 185,000 50,000 50,000 50,000 50,000 385,000 0 N/A Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 50,000 30,000 185,000 50,000 50,000 50,000 50,000 385,000 0 N/A Total N/A 50,000 30,000 185,000 50,000 50,000 50,000 50,000 385,000 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-4.1 Program: N4.13.2 Potential Board/Commission Review: Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. WASTEWATER COLLECTION FUND 490 WASTEWATER COLLECTION FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Wastewater System Improvements Wastewater System Improvements Description This project provides funding as needed to improve the Wastewater Collection System. Typical activities include: increasing system capacity for growth, flow monitoring, hydraulic modeling and system analysis, load simulations, asset management analysis and assessment, system inflow/infiltration analysis, and sanitary sewer overflow monitoring and reduction. Justification Wastewater Collection System reliability and adequate capacity are critical to providing a high level of service to customers. Mainline sewer backups and overflows into homes and businesses are costly and a health risk. Reducing the losses associated with these backup claims requires a continuous evaluation of system needs and making improvements to maintain a high level of service. Significant Changes 2021-2025 CIP: This budget is lowered based on past expenditures. In the upcoming years, the proposed budget will be used to improve the system due to unexpected conditions, purchase and implement a new wastewater collection system maintenance software, conduct system assessment, etc. Currently acquiring a new asset management software platform to replace the current software used to manage Wastewater Operations maintenance activities. All maintenance history, records, and attachments stored in the current database will be exported from cloud-based database and converted or migrated into the new software system. The new wastewater man- agement system will be used by Utilities Wastewater Operations staff to generate work orders, Fund: Wastewater Collection Fund Category: System Improvements Project Location: Various locations Managing Department: Utilities Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: WC-15002 Trenching for installation of High Density Polyethylene (HDPE) sewer main by directional drilling method WASTEWATER COLLECTION FUND WASTEWATER COLLECTION FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 491 schedule planned or unplanned maintenance work in order to help plan/prioritize pipeline capi- tal improvement replacement. Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Wastewater Collection Fund N/A 426,682 260,000 200,000 200,000 200,000 200,000 200,000 1,000,000 303,000 N/A Total N/A 426,682 260,000 200,000 200,000 200,000 200,000 200,000 1,000,000 303,000 N/A Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 426,682 260,000 200,000 200,000 200,000 200,000 200,000 1,000,000 303,000 N/A Total N/A 426,682 260,000 200,000 200,000 200,000 200,000 200,000 1,000,000 303,000 N/A Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-4.16 Program: N4.16.1 Potential Board/Commission Review: Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 493 WASTEWATER TREATMENT FUND WASTEWATER TREATMENT FUND 494 WASTEWATER TREATMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET WASTEWATER TREAT Overview Activities related to the replacement, rehabilitation, optimization, and upgrading of the City’s wastewater treatment plant infrastructure are accounted for in the Wastewater Treatment Fund. For detailed information on the maintenance and operation of the wastewater treatment plant, please refer to the Wastewater Treatment Fund section of the Operating Budget. As part of the 2021-2025 Capital Improvement Program (CIP) expenditures of $133.3 million are programmed with $19.3 million allocated in Fiscal Year 2021. The Wastewater Treatment Fund recovers approximately 65 percent of its costs from the Palo Alto Wastewater Collection Fund, Stanford University, East Palo Alto Sanitary District, Mountain View, Los Altos, and Los Altos Hills based on each agency’s expected share of the capacity. Each agency bills their respective sewer rate- payers for associated sewer and treatment costs as well as the Wastewater Treatment Fund’s capital projects. Approximately 250,000 residents are served by the six agencies contributing sewage to the Regional Water Quality Control Plant (RWQCP). Overall, a total of seven projects are programmed in the 2021-2025 CIP with the budget accounted for in two categories: Build- ings and Facilities and System Improvements. The 2012 Long Range Facilities Plan evaluated the infrastructure needs of the RWQCP. It analyzed and made recommendations on future regulations, replacement and rehabilitation needed, site planning, and flow and load projections. Funding for the major projects included in the 2021-2025 CIP requires debt financing and approval by the partners, per the individual agreements between the City and each of the partners. Over the years, staff has met with partner agencies at the staff and board/council level to discuss major capital projects. It should be noted that a portion of the expenses for these projects are expected to be incurred after the five years included in the 2021-2025 CIP. Staff has applied for state revolving fund loans and has considered revenue bonds for these projects. Major projects planned include: Advanced Water Purification Facility (5-Year CIP: $21.1 million) Headworks Facility Replacement (5-Year CIP: $20.3 million) New Laboratory and Environmental Services Building (Fiscal Year 2021: $1.1 million; 5-Year CIP: $22.7 million) Outfall Line Construction (Fiscal Year 2021: $3.9 million; 5-Year CIP: $5.0 million) $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 FY 2017Actuals FY 2019Actuals FY 2021Proposed FY 2023Projected FY 2025Projected Wastewater Treatment Fund Capital Expenditures WASTEWATER TREATMENT FUND WASTEWATER TREATMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 495 Primary Sedimentation Tank Rehabilitation (Fiscal Year 2021: $6.3 million; 5-Year CIP: $11.9 million) Secondary Treatment Upgrades (Fiscal Year 2021: $0.7 million; 5-Year CIP: $30.7 million) Minor CIP projects are funded through recurring payments to the City by the partner agencies, with the total dollar amount for the minor CIP projects capped by the partner agreements and adjusted annually for inflation. Minor projects are budgeted in Plant Repair, Retrofit, and Equip- ment Replacement (Fiscal Year 2021: $7.3 million; 5-Year CIP: $21.5 million). Buildings and Facilities The Buildings and Facilities category accounts for projects that will improve or construct facili- ties that house equipment related to wastewater treatment at the RWQCP. During the 2021- 2025 CIP, one project is programmed in this category. Recent Accomplishments Began operation of the Dewatering and Loadout Facility and retired two sludge-burning incinerators. 2021-2025 Capital Improvement Program Recurring Projects There are no recurring projects scheduled. Non-Recurring Projects There is one non-recurring project in this category as part of the 2021-2025 CIP. New Labora- tory and Environmental Services Building (Fiscal Year 2021: $1.1 million; 5-Year CIP: $22.7 mil- lion). System Improvements The System Improvements category accounts for all infrastructure and equipment related to the safe and efficient treatment of wastewater received at the RWQCP. Over the course of the 2021-2025 CIP, approximately $110.5 million is allocated towards System Improvements projects, with $18.2 million allocated in Fiscal Year 2021. Infrastructure Inventory CLASSIFICATION TYPE Liquid Treatment Systems Preliminary, Primary, Secondary, and Tertiary Treatment, UV Disinfection, and Outfall Solids Treatment Systems Solids Handling Staff Buildings Staff Buildings and Support Systems Recycled Water Recycled Water Treatment WASTEWATER TREATMENT FUND 496 WASTEWATER TREATMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Recent Accomplishments Completed environmental review on the Advanced Water Purification Facility. 2021-2025 Capital Improvement Program Recurring Projects There is one recurring project in this category: Plant Repair, Retrofit, and Equipment Replace- ment (Fiscal Year 2021: $7.3 million; 5-Year CIP: $21.5 million). This project provides funding for the assessment, repair, and retrofit of the concrete and metal structural condition of the plant; the replacement of necessary plant equipment to maintain treatment reliability and ancillary facilities to maintain existing infrastructure; and the replacement of large diameter flow meters built into the wastewater treatment system on sewers, pipes, and water lines. The United States Environmental Protection Agency mandates that funding is allocated for equipment replace- ment to ensure adequate wastewater treatment reliability. Non-Recurring Projects There are five non-recurring projects in this category: Advanced Water Purification Facility (5-Year CIP: $21.1 million) Headworks Facility Replacement (5-Year CIP: $20.3 million) Outfall Line Construction (Fiscal Year 2021: $3.9 million; 5-Year CIP: $5.0 million). Primary Sedimentation Tank Rehabilitation (Fiscal Year 2021: $6.3 million; 5-Year CIP: $11.9 million) Secondary Treatment Upgrades (Fiscal Year 2021: $0.7 million; 5-Year CIP: $30.7 million) Summary of Capital Activity WASTEWATER TREATMENT FUND Project Number Project Title FY 2019 Actuals FY 2020 Estimate FY 2021 Proposed FY 2022 FY 2023 FY 2024 FY 2025 5-Year Total Source of Funds Revenue from the State of California WQ-14001 Dewatering and Loadout Facility 1,368,530 0 0 0 0 0 0 0 WQ-10001 Plant Master Plan 12,961 0 0 0 0 0 0 0 Revenue from the State of California Total 1,381,491 0 0 0 0 0 0 0 Miscellaneous Revenue WQ-19003 Advanced Water Purification Facility 0 3,000,000 0 15,400,000 5,500,000 0 0 20,900,000 WQ-16002 Headworks Facility Replacement 0 0 0 1,500,000 1,500,000 1,500,000 15,360,000 19,860,000 WQ-14002 New Laboratory and Environmental Services Building 0 1,910,000 150,000 6,750,000 6,750,000 7,850,000 0 21,500,000 WQ-19000 Outfall Line Construction 0 3,850,000 3,850,000 1,100,000 0 0 0 4,950,000 WQ-14003 Primary Sedimentation Tank Rehabilitation 0 8,148,000 4,954,000 4,530,000 0 0 0 9,484,000 WASTEWATER TREATMENT FUND WASTEWATER TREATMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 497 WQ-19001 Secondary Treatment Upgrades 0 2,300,000 700,000 3,800,000 19,800,000 5,830,000 0 30,130,000 Miscellaneous Revenue Total 0 19,208,000 9,654,000 33,080,000 33,550,000 15,180,000 15,360,000 106,824,000 Total Sources 1,381,491 19,208,000 9,654,000 33,080,000 33,550,000 15,180,000 15,360,000 106,824,000 Use of Funds Buildings and Facilities WQ-14001 Dewatering and Loadout Facility 13,408,858 2,018,300 0 0 0 0 0 0 WQ-04011 Facility Condition Assessment and Retrofit 266,874 142,881 0 0 0 0 0 0 WQ-14002 New Laboratory and Environmental Services Building 76,175 1,357,993 1,069,292 6,819,000 6,822,000 8,023,000 0 22,733,292 WQ-10001 Plant Master Plan 319,864 1,973,804 0 0 0 0 0 0 Buildings and Facilities Total 14,071,771 5,492,978 1,069,292 6,819,000 6,822,000 8,023,000 0 22,733,292 System Improvements WQ-19003 Advanced Water Purification Facility 0 3,000,000 0 15,557,000 5,559,000 0 0 21,116,000 WQ-16002 Headworks Facility Replacement 0 0 0 1,515,000 1,516,000 1,533,000 15,704,000 20,268,000 WQ-19000 Outfall Line Construction 0 3,890,000 3,925,000 1,111,000 0 0 0 5,036,000 WQ-80021 Plant Equipment Replacement 1,707,357 1,352 0 0 0 0 0 0 WQ-19002 Plant Repair, Retrofit, and Equipment Replacement 327,099 3,855,894 7,311,890 3,381,000 3,476,000 3,612,000 3,713,000 21,493,890 WQ-14003 Primary Sedimentation Tank Rehabilitation 508,477 8,148,000 6,294,187 5,586,000 0 0 0 11,880,187 WQ-19001 Secondary Treatment Upgrades 483,059 1,824,921 714,000 3,840,000 20,212,000 5,958,000 0 30,724,000 System Improvements Total 3,025,992 20,720,167 18,245,077 30,990,000 30,763,000 11,103,000 19,417,000 110,518,077 Total Uses 17,097,763 26,213,145 19,314,369 37,809,000 37,585,000 19,126,000 19,417,000 133,251,369 Project Number Project Title FY 2019 Actuals FY 2020 Estimate FY 2021 Proposed FY 2022 FY 2023 FY 2024 FY 2025 5-Year Total WASTEWATER TREATMENT FUND WASTEWATER TREATMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 499 Buildings and Facilities WASTEWATER TREATMENT FUND 500 WASTEWATER TREATMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET New Laboratory And Environmental Services Building New Laboratory And Environmental Services Building Description This project provides funding for a new building to consolidate staff into a larger updated lab. Justification The existing laboratory does not have adequate space for staff, instruments, chemical storage, and microbiology testing. Staff is currently located in four separate buildings, which house industrial pumps, limiting the number of staff that can be assigned to each building. Supplemental Information This project was identified in the Long Range Facilities Plan accepted by City Council in 2012. Construction funding via a low interest state revolving fund loan (SRF) or a revenue bond will be pursued for this project, which is subject to approval from partner agencies (Stanford Uni- versity, Mountain View, Los Altos, Los Altos Hills, and the East Palo Alto Sanitary District). Part- ners have already approved repayment of an SRF design and planning loan, while staff evaluate the revenue bond option as an alternative funding source. Significant Changes 2021-2025 CIP: Construction has been delayed and projected to begin in Fiscal Year 2022. 2020-2024 CIP: Design contract slightly delayed and awarded in February 2019. Fund: Wastewater Treatment Fund Category: Buildings and Facilities Project Location: 2501 Embarcadero Way Managing Department: Public Works Initial Project Start: Winter 2015 Initial Project Completion: Fall 2021 Revised Project Start: Spring 2019 Revised Project Completion: Fall 2024 Project Number: WQ-14002 Water Quality Control Plant Laboratory WASTEWATER TREATMENT FUND WASTEWATER TREATMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 501 2019-2023 CIP: Design phase of the project is expected to start in Fall 2018. The City is explor- ing funding alternatives; therefore the funding source is no longer stated as Revenue from the State of California. 2018-2022 CIP: Partners approved repayment of the SRF design and planning loan, but secur- ing the loan took longer than expected and there was uncertainty about availability of State funds. The City will explore alternate methods of funding such as a revenue bond. Project plan- ning/design can commence once the funds are secured, but the timeline has been impacted. 2017-2021 CIP: Approval by partner agencies was required for project approval and to guaran- tee repayment of any state loans. 2016-2020 CIP: Project budget in Fiscal Year 2016 now captures an additional $4.0 million more in Fiscal Year 2020 for final design and start of construction. Operating Impact This project is anticipated to impact operating expenses in the future such as utilities, janitorial services, and alarm/security systems. Once the design, including features and square feet, is complete, costs will be quantified and adjustments will be brought forward in future budgets. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Other 0 1,910,000 1,910,000 150,000 6,750,000 6,750,000 7,850,000 0 21,500,000 0 23,410,000 Wastewater Treatment Fund 76,174 371,819 (552,007)919,292 69,000 72,000 173,000 0 1,233,292 0 757,459 Total 76,174 2,281,819 1,357,993 1,069,292 6,819,000 6,822,000 8,023,000 0 22,733,292 0 24,167,459 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 0 6,669,000 6,672,000 7,873,000 0 21,214,000 0 21,214,000 Design 76,174 2,281,819 1,357,993 1,069,292 150,000 150,000 150,000 0 1,519,292 0 2,953,459 Total 76,174 2,281,819 1,357,993 1,069,292 6,819,000 6,822,000 8,023,000 0 22,733,292 0 24,167,459 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-4.16 Program: N4.16.1 Potential Board/Commission Review: Architectural Review Board Planning and Transportation Commission Environmental Impact Analysis: CEQA will be required. WASTEWATER TREATMENT FUND WASTEWATER TREATMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 503 System Improvements WASTEWATER TREATMENT FUND 504 WASTEWATER TREATMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Advanced Water Purification Facility Advanced Water Purification Facility Description This project provides funding for 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 (TDS). Justification The Regional Water Quality Control Plant (RWQCP) currently provides tertiary-treated recycled water to permitted users in its service area, mostly for irrigation. The current recycled water delivered has a TDS level of 800-900 mg/L. City Council adopted a goal to reduce the TDS level to 600 mg/L in 2010. In 2015, City Council adopted an Environmental Impact Report for the Phase III Recycled Water Pipeline to South Palo Alto and Stanford Research Park, which specifi- cally mentioned recycled water quality would be improved through additional treatment at the RWQCP. In addition, there are approximately 40 potential recycled water users in the service area with their connection still pending until the RWQCP lowers the recycled water TDS level. Supplemental Information The RWQCP, in collaboration with Valley Water (formerly known as the Santa Clara Valley Water District) and the City of Mountain View, conducted an Advanced Water Purification System Feasibility Study. This study recommended microfiltration or ultrafiltration followed by reverse osmosis after comparing different water quality improvement options. The study also included evaluations of greenhouse gas emissions, storage requirements, facility sites, concentrate treat- ment options, and initial design and construction cost estimates. Fund: Wastewater Treatment Fund Category: System Improvements Project Location: 2501 Embarcadero Way Managing Department: Public Works Initial Project Start: Winter 2018 Initial Project Completion: Spring 2021 Revised Project Start: Summer 2020 Revised Project Completion: Summer 2022 Project Number: WQ-19003 Filtration system testing unit WASTEWATER TREATMENT FUND WASTEWATER TREATMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 505 This project was also identified in the Long Range Facilities Plan accepted by City Council in 2012. Funding via contributions from Valley Water, the City of Mountain View, and other external sources such as a low interest state revolving fund loan or revenue bond will be pursued for this project. Significant Changes 2021-2025 CIP: Construction of project has been delayed and projected to begin in Fiscal Year 2022. 2020-2024 CIP: Project start delayed from Winter 2018 to Winter 2019 due to lack of funding as staff is still negotiating with the City of Mountain View and Valley Water to secure funding for this project. Operating Impact This project is anticipated to impact operating expenses in the future such as utilities, janitorial services, and alarm/security systems. Once the design, including features and square feet, is complete, costs will be quantified and adjustments will be brought forward in future budgets. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Other 0 3,000,000 3,000,000 0 15,400,000 5,500,000 0 0 20,900,000 0 23,900,000 Wastewater Treatment Fund 0 113,000 0 0 157,000 59,000 0 0 216,000 0 216,000 Total 0 3,113,000 3,000,000 0 15,557,000 5,559,000 0 0 21,116,000 0 24,116,000 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 82,377 0 0 15,557,000 5,559,000 0 0 21,116,000 0 21,116,000 Design 0 3,030,623 3,000,000 0 0 0 0 0 0 0 3,000,000 Total 0 3,113,000 3,000,000 0 15,557,000 5,559,000 0 0 21,116,000 0 24,116,000 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-4.17 Relationship to Comprehensive Plan Secondary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-4.16 Program: N4.16.1 Potential Board/Commission Review: Architectural Review Board Planning and Transportation Commission Environmental Impact Analysis: An addendum to the existing EIR completed in 2015 for the expansion of the Palo Alto recycled water distribution system will be required. WASTEWATER TREATMENT FUND 506 WASTEWATER TREATMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Headworks Facility Replacement Headworks Facility Replacement Description This project provides funding for replacing influent pumping, including the suction and dis- charge piping, pipe manifolds, valves, the electrical and controls system, screening equipment, grit handling equipment, the force main to the primaries and modifying headworks building, and yard piping. Justification This project was identified in the Long Range Facilities Plan (LRFP) report accepted by City Council in 2012. The existing headworks are at the end of their useful life and replacement is required for operational reliability of pumping the raw sewage from the influent sewers into the treatment plant. Supplemental Information Partner agencies' approval to repay design and construction loans is needed as a low interest state revolving fund loan or a revenue bond will be pursued to fund the project. Significant Changes 2021-2025 CIP: Project is delayed from Winter 2020 to Winter 2021 due to budget constraints, staffing resources, and construction logistics with other projects in progress. 2020-2024 CIP: Project start delayed from Summer 2019 to Winter 2020 due to budget con- straints, staffing resources, and construction logistics with other projects in progress. 2019-2023 CIP: Staff is evaluating alternative funding options, therefore the funding source is no longer stated explicitly as Revenue from the State of California. Fund: Wastewater Treatment Fund Category: System Improvements Project Location: 2501 Embarcadero Way Managing Department: Public Works Initial Project Start: Spring 2020 Initial Project Completion: Winter 2024 Revised Project Start: Winter 2020 Revised Project Completion: Summer 2027 Project Number: WQ-16002 Headworks Facility WASTEWATER TREATMENT FUND WASTEWATER TREATMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 507 2018-2022 CIP: Staff revised the Funding Sources Schedule and the Expenditure Schedule to better reflect the project timeline recommended in the LRFP, where design will take place from 2020 to 2022, with CEQA and construction to follow. Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Other 0 0 0 0 1,500,000 1,500,000 1,500,000 15,360,000 19,860,000 14,960,000 34,820,000 Wastewater Treatment Fund 0 0 0 0 15,000 16,000 33,000 344,000 408,000 0 408,000 Total 0 0 0 0 1,515,000 1,516,000 1,533,000 15,704,000 20,268,000 14,960,000 35,228,000 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 0 0 0 0 15,304,000 15,304,000 14,960,000 30,264,000 Design 0 0 0 0 1,515,000 1,516,000 1,533,000 400,000 4,964,000 0 4,964,000 Total 0 0 0 0 1,515,000 1,516,000 1,533,000 15,704,000 20,268,000 14,960,000 35,228,000 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-4.16 Program: N4.16.1 Potential Board/Commission Review: Architectural Review Board Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. WASTEWATER TREATMENT FUND 508 WASTEWATER TREATMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Outfall Line Construction Outfall Line Construction Description This project consists of the construction of a new parallel outfall pipe to convey final plant efflu- ent to San Francisco Bay. Justification Installation of a new outfall line is needed to address outfall age (built in 1964) and, more impor- tantly, to address the outfall capacity in light of peak wet-weather flow, peak tide, and future sea level rise scenarios. The existing system of a 54-inch outfall line and a 36-inch emergency backup outfall line are inadequate to pass the Plant's peak wet-weather hydraulic flow capacity of 80 million gallons per day. Supplemental Information This project was identified in the Long Range Facilities Plan report accepted by City Council in 2012. Construction funding via a low-interest state revolving fund loan will be pursued for this project, while staff evaluate revenue bond options as an alternative funding source. The existing 54-inch outfall needs rehabilitation, which can only be completed after the new outfall is operational. Rehabilitating the existing 54-inch outfall will be a future project. Once rehabilitated, the 54-inch outfall along with the new parallel outfall in this project are anticipated to work together to convey peak flows for another 50 or more years. The 36-inch emergency backup line will be plugged and abandoned in place. Fund: Wastewater Treatment Fund Category: System Improvements Project Location: Wastewater Treatment Plant and Palo Alto Airport Managing Department: Public Works Initial Project Start: Summer 2018 Initial Project Completion: Fall 2019 Revised Project Start: Summer 2020 Revised Project Completion: Fall 2022 Project Number: WQ-19000 Outfall, Winter 2017 WASTEWATER TREATMENT FUND WASTEWATER TREATMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 509 Significant Changes 2021-2025 CIP: Construction cost for the project is estimated to be increased by approximately $660,000 as staff finalized the SRF loan application. The SRF loan funding, including this bud- get increased, is being secured and finalized. 2020-2024 CIP: Project design was completed and construction has not begun due to permit- ting and finalization on the lease agreement with California State Lands Commission (CSLC). 2019-2023 CIP: Staff is evaluating alternative funding options, therefore the funding source is no longer stated explicitly as Revenue from the State of California. Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Other 0 3,850,000 3,850,000 3,850,000 1,100,000 0 0 0 4,950,000 0 8,800,000 Wastewater Treatment Fund 0 40,000 40,000 75,000 11,000 0 0 0 86,000 0 126,000 Total 0 3,890,000 3,890,000 3,925,000 1,111,000 0 0 0 5,036,000 0 8,926,000 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 3,890,000 3,890,000 3,925,000 1,111,000 0 0 0 5,036,000 0 8,926,000 Total 0 3,890,000 3,890,000 3,925,000 1,111,000 0 0 0 5,036,000 0 8,926,000 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-4.16 Program: N4.16.1 Relationship to Comprehensive Plan Secondary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-4.16 Program: N4.16.2 Potential Board/Commission Review: Planning and Transportation Commission Environmental Impact Analysis: This project had a mitigated negative declaration from CEQA under Section 15070. WASTEWATER TREATMENT FUND 510 WASTEWATER TREATMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Plant Repair, Retrofit, and Equipment Replacement Plant Repair, Retrofit, and Equipment Replacement Description This project provides funding for the assessment, repair, and retrofit of the RWQCP's concrete and metal structures; the replacement of necessary RWQCP equipment and ancillary facilities to maintain treatment reliability and existing infrastructure; and the replacement of large diame- ter flow meters built into the wastewater treatment system on sewers, pipes, and water lines. Tasks and funding previously budgeted in three separate maintenance related projects, WQ- 80021, WQ-80022, and WQ-04011, will now be consolidated and budgeted in this one recurring project. Justification Plant facilities are subject to many adverse conditions and plant equipment requires periodic replacement to maintain reliability. Concrete and metal structures are evaluated for evidence of damage caused by corrosion, weathering, age, and ground movement. Facilities with repair and retrofit deficiencies need to be repaired to good structural condition to ensure that the plant continues to operate safely and reliably. In addition, United States Environmental Protection Agency and State Water Resources Control Board regulations and permits require ongoing allo- cated funding for equipment replacement to ensure adequate treatment reliability. In addition to equipment physically located at the plant, there are 13 key magnetic flow meters throughout the collection system. Meters have an average life of ten years, however when the meter's reliability fails, the meter must be replaced immediately to continue accurate partner billing, process control, and regulatory reporting. Fund: Wastewater Treatment Fund Category: System Improvements Project Location: 2501 Embarcadero Way Managing Department: Public Works Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: WQ-19002 Old pumping plant WASTEWATER TREATMENT FUND WASTEWATER TREATMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 511 Supplemental Information Planned projects include replacement of equipment mechanisms for secondary clarifiers and sludge thickeners; and replacement of wire, transformers, switches, and electrical components in the medium voltage electrical network. Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Wastewater Treatment Fund N/A 7,772,784 3,855,894 7,311,890 3,381,000 3,476,000 3,612,000 3,713,000 21,493,890 0 N/A Total N/A 7,772,784 3,855,894 7,311,890 3,381,000 3,476,000 3,612,000 3,713,000 21,493,890 0 N/A Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 7,230,216 3,313,326 6,920,890 2,979,000 3,063,000 3,188,000 3,277,000 19,427,890 0 N/A Design N/A 542,568 542,568 391,000 402,000 413,000 424,000 436,000 2,066,000 0 N/A Total N/A 7,772,784 3,855,894 7,311,890 3,381,000 3,476,000 3,612,000 3,713,000 21,493,890 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-4.16 Program: N4.16.1 Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. WASTEWATER TREATMENT FUND 512 WASTEWATER TREATMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Primary Sedimentation Tank Rehabilitation Primary Sedimentation Tank Rehabilitation Description This project provides funding for new protective coatings on each of the four concrete primary sedimentation tanks and replacement of worn rotating parts and aging power distribution equipment. The tanks, installed in 1972, are 220 feet long by 41 feet wide by 14 feet deep and remove settleable solids and floatable grease with mechanical and electrical equipment. The new coating ensures steel reinforcing bars within the concrete are protected from corrosive sewer gases and extends the concrete's life for another 30 years. Justification Without recoating, the concrete will lose its structural integrity, gradually spalling and harming pumps, pipes, and treatment systems as a result. In a mild seismic event, weakened concrete could potentially collapse, endangering staff and the treatment system. Rehabilitation of the concrete slabs will extend the life of the tanks, preserving capital resources for other uses. Supplemental Information This project was identified in the Long Range Facilities Plan report accepted by the City Council in 2012. Construction funding via a low-interest state revolving fund loan (SRF) will be pursued, which is subject to approval from the partner agencies. The partners already approved repay- ment of an SRF design and planning loan, while staff evaluate a revenue bond as an alternative to an SRF for construction. Fund: Wastewater Treatment Fund Category: System Improvements Project Location: 2501 Embarcadero Way Managing Department: Public Works Initial Project Start: Spring 2014 Initial Project Completion: Fall 2019 Revised Project Start: Winter 2017 Revised Project Completion: Fall 2022 Project Number: WQ-14003 Primary Sedimentation Tank WASTEWATER TREATMENT FUND WASTEWATER TREATMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 513 Significant Changes 2021-2025 CIP: Construction has been delayed, moving the estimated completion to Fall 2022. SRF loan funding is being secured and finalized. 2019-2023 CIP: Design started in January-March of 2018. The City is exploring funding alterna- tives; therefore, the funding source is no longer stated as Revenue from the State of California. 2018-2022 CIP: All partner agencies approved repayment of a planning/design loan. Securing the loan took longer than expected, and there is uncertainty about availability of State funds. The City will explore alternative methods of funding such as a revenue bond, but the project planning/design can commence once the funds are secured. Project timeline is impacted. 2017-2021 CIP: Approval by the partner agencies was required for project approval and to guar- antee repayment of any state loans. Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Other 0 8,302,000 8,148,000 4,954,000 4,530,000 0 0 0 9,484,000 0 17,632,000 Wastewater Treatment Fund 653,662 220,187 0 1,340,187 1,056,000 0 0 0 2,396,187 0 3,049,849 Total 653,662 8,522,187 8,148,000 6,294,187 5,586,000 0 0 0 11,880,187 0 20,681,849 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 7,896,080 7,521,893 5,981,806 5,386,000 0 0 0 11,367,806 0 18,889,699 Design 653,662 626,107 626,107 312,381 200,000 0 0 0 512,381 0 1,792,150 Total 653,662 8,522,187 8,148,000 6,294,187 5,586,000 0 0 0 11,880,187 0 20,681,849 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-4.16 Program: N4.16.1 Potential Board/Commission Review: Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. WASTEWATER TREATMENT FUND 514 WASTEWATER TREATMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Secondary Treatment Upgrades Secondary Treatment Upgrades Description This project provides funding for upgrades to the Secondary Treatment process at the Regional Water Quality Control Plant. The existing Secondary Treatment process has two main compo- nents; the Fixed Film Reactors (FFR) and the Activated Sludge (AS) Process. This project includes the reconfiguration of the aeration basins, modification of the AS Process, and the elimination of the FFRs. The AS Aeration Basins will be subdivided with concrete walls creating different zones where different pollutants can be treated. Some of the zones will operate with- out oxygen, treating nitrogen and cutting the nitrogen in the treated wastewater by roughly half. The project will not only reduce organics and ammonia in the existing processes, but will also reduce total nitrogen, the next pollutant being targeted for more stringent regulation. Justification The components of the Secondary Treatment process are between 35 and 45 years old and show extreme signs of wear and structural weakness. The rehabilitation of both the FFRs and the AS Process were identified in the Long Range Facilities Plan accepted by Council in 2012. In addition, regulatory agencies are developing new compliance and permit requirements for total nitrogen. A special study was completed in 2017, which proposed a complete Secondary Treat- ment process upgrade instead of individual rehabilitation projects. The completion of the upgrades will meet several objectives. Supplemental Information The project cost is estimated to be $30.6 million, which is less than the combined estimated cost for the FFRs, AS Aeration Basins rehabilitation, and large-scale Denitrification System (or other nutrients removal) projects. Fund: Wastewater Treatment Fund Category: System Improvements Project Location: 2501 Embarcadero Way Managing Department: Public Works Initial Project Start: Summer 2018 Initial Project Completion: Fall 2021 Revised Project Start: Fall 2018 Revised Project Completion: Fall 2024 Project Number: WQ-19001 Aeration basins WASTEWATER TREATMENT FUND WASTEWATER TREATMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 515 Significant Changes 2021-2025 CIP: The expenses for design have increased as the plans have been refined to reflect anticipated completion of a a feasibility assessment to intensify the treatment process. As a result of the assessment, construction has been delayed and projected to begin in Fiscal Year 2022. 2020-2024 CIP: Design phase began in October 2018. Project start delayed from Summer 2018 to Fall 2018 with project completion now estimated to be in Winter 2022. Operating Impact This project is anticipated to impact operating expenses in the future, potentially by lowering utilities usage. As these costs are quantified, adjustments will be brought forward in future bud- gets, as necessary. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Other 0 2,300,000 2,300,000 700,000 3,800,000 19,800,000 5,830,000 0 30,130,000 0 32,430,000 Wastewater Treatment Fund 483,058 (475,079)(475,079)14,000 40,000 212,000 128,000 0 394,000 0 401,979 Total 483,058 1,824,921 1,824,921 714,000 3,840,000 20,012,000 5,958,000 0 30,524,000 0 32,831,979 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 0 3,340,000 20,012,000 5,958,000 0 29,310,000 0 29,310,000 Design 483,058 1,824,921 1,824,921 714,000 500,000 0 0 0 1,214,000 0 3,521,979 Total 483,058 1,824,921 1,824,921 714,000 3,840,000 20,012,000 5,958,000 0 30,524,000 0 32,831,979 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-4.16 Program: N4.16.1 Potential Board/Commission Review: Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 517 WATER FUND WATER FUND 518 WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET WATER FUND Overview The City of Palo Alto is the only municipality in California that operates a full suite of City- owned utility services. The municipal Water Distribution System began operation in 1896 and continues to provide safe, reliable, and cost-effective water service to residents and customers of Palo Alto. For the 2021-2025 Capital Improvement Program (CIP), approximately $45.6 mil- lion in expenses are projected, with $9.4 million allocated in Fiscal Year 2021. Overall, a total of 14 projects are planned for the 5-year CIP. Major projects funded in the 2021-2025 CIP include Water Main Replacements (cumulative total of $21.7 million), Water Sys- tem Customer Connections ($4.5 million), Water Meters ($3.8 million) and Water, Gas, and Wastewater Utility GIS Data ($2.5 million). The budget for the Water Fund CIP is categorized into three types of projects: Cus- tomer Connections, System Improvements, and Water Main Replacements. Infrastructure Inventory Classification Quantity Miles of water main 233.16 Number of wells 1 active standby and 7 emergency standby Number of reservoirs 4 steel and 3 reinforced concrete 0 4,000,000 8,000,000 12,000,000 16,000,000 FY 2017Actuals FY 2019Actuals FY 2021Proposed FY 2023Projected FY 2025Projected Water Fund Capital Expenditures WATER FUND WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 519 Customer Connections As customers continually change their water needs due to equipment additions, new construc- tion, building expansions, building remodels, teardowns and rebuilds, and new building occu- pancy types, the water system must evolve to meet these needs. The Water System Customer Connections is the only project in this category and includes work required to meet the needs of customers who have applied for new or upgraded water service. The Water Fund pays for a portion of this project, while remaining costs are supported by reimbursements from customers for project work performed by the City. Recent Accomplishments In Fiscal Year 2019 the Water Utility completed over 100 water service projects with a total cost of $1.3 million. 2021-2025 Capital Improvement Program Recurring Projects The Water System Customer Connections is the only project within this category. Over the course of the 2021-2025 CIP, $4.5 million is forecasted, with $0.85 million allocated in Fiscal Year 2021. System Improvements To ensure reliable water services for the City of Palo Alto’s residents and customers, infrastruc- ture must be replaced at the end of its expected life. The System Improvements category includes 9 projects as part of the 2021-2025 CIP at a total cost of $19.4 million, with $5.6 million allocated in Fiscal Year 2021. Recent Accomplishments Repaired water main transmission pipeline on Old Page Mill Road and installed associated hydrants and valves. Water Distribution System Main Materials MATERIAL TYPE TOTAL LENGTH PERCENT Asbestos Cement Pipe 132.57 mi 56.86% Concrete Cylinder Pipe 16.81 mi 7.21% Cast Iron Pipe 21.22 mi 9.10% Ductile Iron Pipe 4.59 mi 1.97% Polyethylene 14.73 mi 6.32% Polyvinyl Chloride 42.54 mi 18.24% Steel 0.7 mi 0.3% Total:233.16 mi WATER FUND 520 WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Completed the design of the Mayfield Reservoir Vent and Crack Repair project. Completed the El Camino Real Pump Station and Mayfield Pump Station modifications to the system and control programs to improve operational flexibility and system resiliency. Completed the steady state and extended period simulation water models that will assist in storage and operational recommendations. Started development of the Water Infrastructure Risk and Resilience Assessment document as required by America’s Water Infrastructure Act of 2018 (AWIA ’18). AWAI ‘18 requires community water systems serving 3,300 or more persons to conduct a risk and resilience assessment and develop an emergency response plan that must be actively updated every five years. Developed the test procedure for collecting data to evaluate the condition of our aging Asbestos Cement Pipe (ACP). The test result is a tool to help determine the life expectancy of ACPs. 2021-2025 Capital Improvement Program Recurring Projects A total of $12.4 million is programmed for System Improvement recurring projects during the 2021-2025 CIP, with $3.4 million allocated in Fiscal Year 2021. Recurring projects in this category include the following: Water Distribution System Improvements (Fiscal Year 2021: $0.3 million; 5-Year CIP: $1.4 million) Water General Equipment/Tools (Fiscal Year 2021: $0.05 million; 5-Year CIP: $0.25 million) Water, Gas, Wastewater Utility GIS Data (Fiscal Year 2021: $0.5 million; 5-Year CIP: $2.5 million) Water Meters (Fiscal Year 2021: $1.5 million; 5-Year CIP: $3.8 million) Water Service Hydrant Replacement (Fiscal Year 2021: $0.4 million; 5-Year CIP: $2.0 million) Water System Supply Improvements (Fiscal Year 2021: $0.7 million; 5-Year CIP: $2.4 million) Non-Recurring Projects A total of $6.3 million is programmed for non-recurring projects during the 2021-2025 CIP, with $1.4 million allocated in Fiscal Year 2021. Non-recurring projects in this category include the fol- lowing: Water Recycling Facilities (Fiscal Year 2021: $0.4 million) Water Tank Seismic Upgrade and Rehabilitation (Fiscal Year 2021: $1.0 million; 5-year CIP: $5.9 million) Water Main Replacements The Water Main Replacements category accounts for the replacement of inadequately sized and structurally deficient water mains. In the next five years, it is estimated that approximately 50,000 linear feet of water mains will be replaced. The annual linear feet replacement totals were reduced by approximately 23% due to significant increases in labor and material WATER FUND WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 521 costs. City staff has proposed a new replacement schedule of water & wastewater construction every even year and gas construction every odd year to reduce the amount of construction when prices are high and allow staff to focus on other priorities such as ABS/Tenite gas services replacement, water tank replacement and cross-bore inspections. In 2019 the annual replacement footage was reduced to compensate for some of the market changes that forced a rebid and a single bid in the past. Rebids and the reduction of total foot- age completed annually will extend the overall time it will take to complete the entire system replacement; however, a recent study indicated that the City has already replaced many of the most leak-prone and deteriorated pipes from the past water main replacement projects 1 through 26. This study recommended replacing 13.5 miles of mains within the next decade, and confirmed that the every-other-year construction program will allow staff to replace these 13.5 miles of water mains within the next 10 years. Recent Accomplishments Started construction of Water Main Replacement project (WMR 27) to replace approximately 5,000 linear feet of water main pipelines in the Sand Hill Road and Fulton Street areas. Star ted design of the remaining 3800 linear feet in an easement off of Sand Hill Road.  2021-2025 Capital Improvement Program Non-Recurring Projects The 2021-2025 CIP includes $21.7 million in funding for 4 non-recurring projects within this cate- gory, with $3.0 million appropriated for Fiscal Year 2021. The Utilities Department coordinates with the Public Works Department’s street maintenance projects to minimize damage to the City’s pavement and maximize cost efficiencies when replacing water mains. Summary of Capital Activity WATER FUND Project Number Project Title FY 2019 Actuals FY 2020 Estimate FY 2021 Proposed FY 2022 FY 2023 FY 2024 FY 2025 5-Year Total Source of Funds Transfer from Other Funds Gas Fund WS-02014 Water Gas Wastewater GIS Data 147,630 152,059 156,621 161,320 166,160 166,160 176,266 826,527 Total Gas Fund Transfers 147,630 152,059 156,621 161,320 166,160 166,160 176,266 826,527 Wastewater Collection Fund WS-02014 Water Gas Wastewater GIS Data 147,630 152,059 156,621 161,320 166,160 166,160 176,266 826,527 Total Wastewater Collection Fund 147,630 152,059 156,621 161,320 166,160 166,160 176,266 826,527 Total Transfer from Other Funds 295,260 304,118 313,242 322,640 332,320 342,286 352,532 1,653,054 WATER FUND 522 WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Other Revenues WS-80013 Water System, Customer Connections 1,766,050 957,228 1,285,946 1,315,524 1,345,990 1,495,819 1,539,875 6,983,154 Other Revenue Total 1,766,050 957,228 1,285,946 1,315,524 1,345,990 1,495,819 1,539,875 6,983,154 Total Sources 2,061,310 1,261,346 1,599,188 1,638,164 1,678,310 1,838,105 1,892,407 8,646,174 Use of Funds Customer Connections WS-80013 Water System, Customer Connections 851,385 761,424 850,000 877,250 904,595 931,955 960,500 4,524,300 Customer Connections Total 851,385 761,424 850,000 877,250 904,595 931,955 960,500 4,524,300 System Improvements WS-19000 Mayfield Reservoir Subgrade and Venting Repair 0 200,000 0 0 0 0 0 0 WS-11003 Water Distribution System Improvements 148,016 495,741 269,469 277,553 285,880 294,456 305,000 1,432,358 WS-13002 Water General Equipment/Tools 0 50,000 50,000 50,000 50,000 50,000 50,000 250,000 WS-02014 Water, Gas, Wastewater Utility GIS Data 178,991 1,066,277 469,862 483,958 498,477 513,431 528,800 2,494,528 WS-80015 Water Meters 122,265 300,000 1,530,450 546,364 562,755 579,638 600,000 3,819,207 WS-07001 Water Recycling Facilities 0 0 395,649 0 0 0 0 395,649 WS-07000 Water Regulation Station Improvements 74,430 0 759,000 0 0 0 0 759,000 WS-08001 Water Reservoir Coating Improvements 90,707 0 0 0 0 0 0 0 WS-80014 Water Service Hydrant Replacement 72,158 449,673 400,000 400,000 400,000 400,000 412,000 2,012,000 WS-11004 Water System Supply Improvements 61,673 263,327 749,469 277,553 285,880 345,131 715,000 2,373,033 WS-09000 Water Tank Seismic Upgrade and Rehabilitation 752,256 5,252,188 951,000 500,000 3,800,000 0 600,000 5,851,000 System Improvements Total 1,500,496 8,077,206 5,574,899 2,535,428 5,882,992 2,182,656 3,210,800 19,386,775 Water Main Replacements WS-12001 Water Main Replacement - Project 26 4,574,968 746,315 0 0 0 0 0 0 WS-13001 Water Main Replacement - Project 27 105,524 4,568,639 2,500,000 0 0 0 0 2,500,000 WS-14001 Water Main Replacement - Project 28 0 80,000 500,000 8,500,000 0 0 0 9,000,000 WS-15002 Water Main Replacement - Project 29 0 0 0 850,000 0 8,500,000 0 9,350,000 WS-16001 Water Main Replacement - Project 30 0 0 0 0 0 850,000 0 850,000 Water Main Replacements Total 4,680,492 5,394,954 3,000,000 9,350,000 0 9,350,000 0 21,700,000 Total Uses 7,032,373 14,233,584 9,424,899 12,762,678 6,787,587 12,464,611 4,171,300 45,611,075 Project Number Project Title FY 2019 Actuals FY 2020 Estimate FY 2021 Proposed FY 2022 FY 2023 FY 2024 FY 2025 5-Year Total WATER FUND WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 523 Customer Connections WATER FUND 524 WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Water System Customer Connections Water System Customer Connections Description This project allows for improvements that include new main extensions, valves, domestic ser- vices, meters on upgraded services, backflow devices, fire services, and fire hydrants. Justification System extensions are required to provide service to new customers and to serve existing cus- tomers requesting expanded service. Supplemental Information Revenues appear to exceed expense budget due to the addition of capacity fees. Significant Changes 2015-2019 CIP: This project was previously titled Water System Extensions. As part of the Fiscal Year 2015 budget, it was re-titled to more accurately reflect the work done with this funding. Fund: Water Fund Category: Customer Connections Project Location: Various locations Managing Department: Utilities Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: WS-80013 Installation of 8" HDPE pipe by directional drilling method Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Other N/A 957,228 957,228 1,285,946 1,315,524 1,345,990 1,495,819 1,539,875 6,983,154 0 N/A Water Fund N/A (195,804)(195,804)(435,946)(438,274)(441,395)(563,864)(579,375)(2,458,854)0 N/A Total N/A 761,424 761,424 850,000 877,250 904,595 931,955 960,500 4,524,300 0 N/A WATER FUND WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 525 Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 761,424 761,424 850,000 877,250 904,595 931,955 960,500 4,524,300 0 N/A Total N/A 761,424 761,424 850,000 877,250 904,595 931,955 960,500 4,524,300 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-4.1 Program: N4.13.2 Potential Board/Commission Review: Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. WATER FUND WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 527 System Improvements WATER FUND 528 WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Mayfield Reservoir Subgrade and Venting Repair Mayfield Reservoir Subgrade and Venting Repair Description As part of the City’s recent Seismic Upgrade and Emergency Water Supply and Storage proj- ects, 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. While the reser- voir was empty, a number of cracks developed in the concrete slabs. After construction was completed and the reservoir was refilled, the cracks that had formed in the concrete caused the reservoir to leak. It was determined that the cracking had not been caused by construction activities but was due to the age of the concrete and the expansion and contraction of the structure during the extended period of time the reservoir was empty Justification In order to minimize the risk of further damage to the reservoir and adjacent properties, the City hired a contractor to perform a crack assessment within the reservoir. Once the assessment was complete the contractor sealed cracks in the concrete slabs and filled voids that had developed under the concrete slabs. The reservoir was filled and all leaks appeared to be sealed. However, during a recent inspection of the reservoir it was found that a large number of additional cracks had formed on the concrete slabs, indicating potential problems with the structure and sub- grade support. Furthermore, the perimeter venting was also found inadequate for keeping debris out and preserving water quality as required by the State Water Resources Control Board (SWRCB). To protect the reservoir's existing subgrade, this project will include coring Fund: Water Fund Category: System Improvements Project Location: Mayfield Reservoir Managing Department: Utilities Initial Project Start: Fall 2019 Initial Project Completion: Fall 2021 Revised Project Start: Revised Project Completion: Summer 2020 Project Number: WS-19000 Exterior view of Mayfield Reservoir WATER FUND WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 529 through the floor to grout a void and sealing the new cracks that were found on the reservoir floor. The project will also include State required improvements to the existing venting system. Significant Changes 2021-2025 CIP: The work based on the crack assessment and geotechnical study did not require all of the budgeted amount. The proposed funds for FY 2021 were reduced by $200,000. 2019-2023 CIP: Project established. Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Water Fund 0 400,000 200,000 0 0 0 0 0 0 0 200,000 Total 0 400,000 200,000 0 0 0 0 0 0 0 200,000 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 400,000 200,000 0 0 0 0 0 0 0 200,000 Total 0 400,000 200,000 0 0 0 0 0 0 0 200,000 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-4.1 Program: N4.13.2 Potential Board/Commission Review: Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. WATER FUND 530 WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Water Distribution System Improvements Water Distribution System Improvements Description This project provides funds to improve Water Distribution System deliverability and reliability. Typical activities include: installing restraining joints at critical pipelines and bridge crossings, increasing the size of inadequate facilities, system leakage surveys, network modeling, and fire flow studies or other system improvements as required. Justification Water Distribution System reliability and adequate capacity are critical to providing a high level of service to customers in Palo Alto. Continuous evaluation of system needs and making required improvements are necessary to maintain adequate quantities of quality water, that meets local, state, and federal safe drinking water standards. Fund: Water Fund Category: System Improvements Project Location: Various locations Managing Department: Utilities Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: WS-11003 Installation of a new fire hydrant with FlowGuard fire hydrant check valve Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Water Fund N/A 495,471 495,741 269,469 277,553 285,880 294,456 305,000 1,432,358 0 N/A Total N/A 495,471 495,741 269,469 277,553 285,880 294,456 305,000 1,432,358 0 N/A WATER FUND WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 531 Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 495,471 495,741 269,469 277,553 285,880 294,456 305,000 1,432,358 0 N/A Total N/A 495,471 495,741 269,469 277,553 285,880 294,456 305,000 1,432,358 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-4.1 Program: N4.13.2 Potential Board/Commission Review: Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. WATER FUND 532 WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Water General Equipment/Tools Water General Equipment/Tools Description This funding allows for the acquisition of new equipment and tools, 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. Justification As equipment ages, the quality of the fusion joints begins to decline, and the operators must spend more time scraping, aligning, and fusing construction joints. In order to maintain high quality standards for the installation of the City's water distribution mains, along with the asso- ciated service standards and worker safety and productivity measures, equipment and tools are required to be upgraded on an annual basis. Significant Changes 2015-2019 CIP: Project was retitled from Water Fusion and General Equipment/Tools. Fund: Water Fund Category: System Improvements Project Location: Various locations Managing Department: Utilities Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: WS-13002 16" HDPE pipe being fused prior to installation Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Water Fund N/A 50,000 50,000 50,000 50,000 50,000 50,000 50,000 250,000 0 N/A Total N/A 50,000 50,000 50,000 50,000 50,000 50,000 50,000 250,000 0 N/A WATER FUND WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 533 Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 50,000 50,000 50,000 50,000 50,000 50,000 50,000 250,000 0 N/A Total N/A 50,000 50,000 50,000 50,000 50,000 50,000 50,000 250,000 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-4.1 Program: N4.13.2 Potential Board/Commission Review: Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. WATER FUND 534 WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Water Meters Water Meters Description This funding allows for the purchase of meters for new customers, upgrading meters for current customers, installing meter bypasses, and replacing obsolete meters that are no longer repair- able. This funding also allows for annual testing and calibration of select meters. Justification This project will maintain meter accuracy, reliability, and stock meter equipment and replace- ment parts. Meter replacements enhance information on system water volume; align the Utility's ten-year meter testing and replacement cycle in accordance with industry-standard best man- agement practices; and provide accurate data for the Water Utility billing system. Significant Changes 2021-2025 CIP: The Advanced Metering Infrastructure (AMI) Project is expected to replace up to 9,000 water meters to install meters that are compatible with a smart grid system to collect usage information remotely. The remaining meters will be assessed for their compatibility with the AMI smart grid and will either be retrofitted or replaced. Fund: Water Fund Category: System Improvements Project Location: Various locations Managing Department: Utilities Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: WS-80015 5/8" Badger water meter Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Water Fund N/A 1,292,700 300,000 1,530,450 546,364 562,755 579,638 600,000 3,819,207 0 N/A Total N/A 1,292,700 300,000 1,530,450 546,364 562,755 579,638 600,000 3,819,207 0 N/A WATER FUND WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 535 Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 1,292,700 300,000 1,530,450 546,364 562,755 579,638 600,000 3,819,207 0 N/A Total N/A 1,292,700 300,000 1,530,450 546,364 562,755 579,638 600,000 3,819,207 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-4.1 Program: N4.13.2 Potential Board/Commission Review: Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. WATER FUND 536 WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Water Recycling Facilities Water Recycling Facilities Description This funding allows the City to hire a consultant to prepare a business plan, prepare a 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. A key part of the proposed business plan will be evaluating potential alter- native uses of the new pipeline to serve future needs in Direct Potable Reuse and Indirect Pota- ble Reuse. This more detailed plan follows the successful completion and certification of the project’s environmental impact report in September 2015. The next phase of the project is to evaluate the results of this business plan and other deliverables, and pending a satisfactory assessment, move forward with the full design work of the proposed expansion of the recycled water delivery system. Justification Palo Alto is aggressively pursuing all options to meet future water supply needs. Recycled water provides a stable, drought-proof supply of water that replaces the need to use Hetch Hetchy potable supplies for irrigation purposes and other non-potable uses in anticipation of extended periods of drought and mandatory potable water reduction imposed by the State. The City is taking an integrated approach to evaluating the most flexible and robust strategic plan for non- potable recycled water, shallow aquifer groundwater, deep aquifer groundwater, and Direct Potable Reuse and Indirect Potable Reuse. Fund: Water Fund Category: System Improvements Project Location: Various locations Managing Department: Utilities Initial Project Start: Spring 2011 Initial Project Completion: Spring 2015 Revised Project Start: Revised Project Completion: Fall 2021 Project Number: WS-07001 Recycled water piping WATER FUND WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 537 Significant Changes 2021-2025 CIP: On November 18, 2019, Council approved a Partnership Agreement that gives the Santa Clara alley Water District (Valley Water) an option to acquire about half of the treated wastewater produced by the Regional Water Quality Control Plant (RWQCP). The Agreement addresses multiple objectives, including diverting treated wastewater discharge from the San Francisco Bay, increasing the use of treated wastewater from the RWQCP, and displacing pota- ble imported water where appropriate and feasible. Construction funding is supported through RWQCP project WQ-19003. 2020-2024 CIP: The remaining build portion of this project will be implemented in the RWQCP's project WQ-19003, Advanced Water Purification Facility. 2018-2022 CIP: While staff has addressed many issues regarding a future recycled water proj- ect, including the completion and certification by the Council of the project’s environmental impact report (EIR), the replacement of high quality potable water with recycled water remains a concern for the landscape community among others. Completion of the EIR was essential for securing Federal or State grant or loan funding for the construction of the project, and now the City needs to reassess a more exhaustive number of potential end uses, assess customer demand, prepare a business plan, finish a preliminary design, and secure funding. Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Revenue from the Federal Government 111,013 0 0 0 0 0 0 0 0 0 111,013 Water Fund 346,037 395,649 0 395,649 0 0 0 0 395,649 0 741,686 Total 457,050 395,649 0 395,649 0 0 0 0 395,649 0 852,699 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 365,639 395,649 0 395,649 0 0 0 0 395,649 0 761,288 Design 91,409 0 0 0 0 0 0 0 0 0 91,409 Total 457,048 395,649 0 395,649 0 0 0 0 395,649 0 852,697 WATER FUND 538 WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-4.1 Program: N4.13.2 Potential Board/Commission Review: Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. WATER FUND 540 WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Water Regulation Station Improvements Water Regulation Station Improvements Description This project will improve fourteen underground vaults and two above-ground water regulation facility locations. The improvements include: supervisory control and data acquisition (SCADA) chloramine monitors, pipe coating, wall sealing/painting, vault door replacement, lighting, valve replacement, and electrical upgrades. Justification These critical components in the water system require various improvements to increase reli- ability, safety and to prolong their service life. The San Francisco Public Utility Commission (SFPUC) turnouts are the main source of water supply to Palo Alto residents and need mainte- nance improvements. The pressure regulating stations protect pipelines from over-pressuriza- tion, which prevents water main breaks and customer outages. The electrical systems for these facilities need to be improved for staff safety. Supplemental Information The work locations of this project include Page Mill, Arastradero, California, Charleston, Mayfield, Hillview, Hewlett, Foothill 6, Foothill 7, Corte Madera, Boronda, Park, Dahl, Montebello vaults, Dahl booster, and Lytton pump station. Significant Changes 2019-2023 CIP: Seismic and vault improvements were completed at Page Mill and Arastradero. In Fiscal Year 2019, staff will address the turnout at California. Fund: Water Fund Category: System Improvements Project Location: Various locations Managing Department: Utilities Initial Project Start: Fall 2006 Initial Project Completion: Summer 2008 Revised Project Start: Summer 2014 Revised Project Completion: Spring 2021 Project Number: WS-07000 Siesmic Upgrade, Arastradero Turnout, June 2010 WATER FUND WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 541 Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Water Fund 1,302,909 797,100 0 759,000 0 0 0 0 759,000 0 2,061,909 Total 1,302,909 797,100 0 759,000 0 0 0 0 759,000 0 2,061,909 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 1,042,323 797,100 0 759,000 0 0 0 0 759,000 0 1,801,323 Design 260,575 0 0 0 0 0 0 0 0 0 260,575 Total 1,302,898 797,100 0 759,000 0 0 0 0 759,000 0 2,061,898 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-4.1 Program: N4.13.2 Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. WATER FUND 542 WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Water Service and Hydrant Replacement Water Service and Hydrant Replacement Description This project replaces system control valves, deteriorated galvanized service lines, lead goose- necks, and fire hydrant valves and assemblies needed for Fire Department flow testing; upgrades fire hydrants in main replacement project areas; and replaces existing undersized or deteriorated copper water services. Upgrading hydrants and system control valves is consistent with fire protection policies. Justification In order to maintain a high water quality standard for Palo Alto's water supplies, it is necessary to replace old, lead, galvanized, and corroded copper water service lines. Fund: Water Fund Category: System Improvements Project Location: Various locations Managing Department: Utilities Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: WS-80014 Newly installed fire hydrant service line and assembly on Greenwood Avenue Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Water Fund N/A 449,673 449,673 400,000 400,000 400,000 400,000 412,000 2,012,000 0 N/A Total N/A 449,673 449,673 400,000 400,000 400,000 400,000 412,000 2,012,000 0 N/A Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 449,673 449,673 400,000 400,000 400,000 400,000 412,000 2,012,000 0 N/A Total N/A 449,673 449,673 400,000 400,000 400,000 400,000 412,000 2,012,000 0 N/A WATER FUND WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 543 Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-4.1 Program: N4.13.2 Potential Board/Commission Review: Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. WATER FUND 544 WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Water System Supply Improvements Water System Supply Improvements Description This project provides funding to improve the City’s Water Distribution System, which connects facilities between the City’s and the San Francisco Public Utility Commission’s pipelines, emer- gency water wells within the City, pumping stations, and water reservoirs. Justification It is critical that the City has an adequate supply of water that meets federal and state drinking water requirements. To meet these objectives, the City must continually evaluate the system and make improvements as needed. Supplemental Information Typical activities performed under this project include: piping modifications, equipment replacements associated with water delivery, Supervisory Control software upgrades, system modifications for water system quality compliance, implementation of an asset management system, conditional assessment of the reliability of transmission mains, and security system installations. Significant Changes 2021-2025 CIP: SCADA router and firewall components are in the process of being upgraded. Budget increases in FY 2021 and FY 2025 are for upgrading the PLCs (Programmable Logic Controllers (Computers) that control the equipment in the system. Fund: Water Fund Category: System Improvements Project Location: Various locations Managing Department: Utilities Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: WS-11004 Installation of 8" HDPE pipe and valve between two main connection points on El Camino Real at El Camino Way WATER FUND WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 545 Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Water Fund N/A 263,327 263,327 749,469 277,553 285,880 345,131 715,000 2,373,033 0 N/A Total N/A 263,327 263,327 749,469 277,553 285,880 345,131 715,000 2,373,033 0 N/A Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 263,327 263,327 749,469 277,553 285,880 345,131 715,000 2,373,033 0 N/A Total N/A 263,327 263,327 749,469 277,553 285,880 345,131 715,000 2,373,033 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-4.1 Program: N4.13.2 Potential Board/Commission Review: Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. WATER FUND 546 WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Water Tank Seismic Upgrade and Rehabilitation Water Tank Seismic Upgrade and Rehabilitation Description This project will provide tank rehabilitation, seismic upgrades, and/or tank replacement struc- tural reinforcement for the Corte Madera, Park, Boronda, and Dahl reservoirs in order to improve earthquake resistance in compliance with the American Society of Civil Engineers (ASCE 7) seismic codes. Work at the reservoir sites will also include the installation of: new seismic shut off valves between the reservoirs and valve vaults, new plug valves, piping and pipe supports in the valve vaults, and recoating of the interior and exterior reservoir walls. Justification Palo Alto's water tanks have no protection from water loss in a seismic event. If an earthquake causes a significant water leak, various impacts such as loss of water for fire fighting purposes, loss of water storage for drinking, property damage from flooding or mudslides, and environ- mental damages could occur. The seismic protection systems will preserve potable water after a seismic event. Additionally, during the seismic upgrade of the Montebello reservoir the struc- tural condition of the tank required significant repair, which is now anticipated in the remaining three tanks constructed in a similar time period. Significant Changes 2021-2025 CIP: The Corte Madera reservoir is in the process of being replaced using the Design-Build method. Construction is anticipated to start in FY 2021. Staff is currently evaluat- ing the plan for both Dahl and Park Reservoirs. These reservoirs will need to be replaced in the future at their current locations or at a location that improves the reliability and resiliency of the Fund: Water Fund Category: System Improvements Project Location: Various locations Managing Department: Utilities Initial Project Start: Spring 2014 Initial Project Completion: Winter 2017 Revised Project Start: Revised Project Completion: Fall 2021 Project Number: WS-09000 Seismic Upgrade, Boronda Reservoir, December 2014 WATER FUND WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 547 system. The budget for FY 2023 was increased to cover the replacement of Dahl Reservoir. Park Reservoir will follow in FY 2026. 2019-2023 CIP: Project was retitled from "Seismic Water System Upgrade". Budget has also increased to account for scope changes and construction cost escalation. Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Water Fund 3,459,192 5,252,188 5,252,188 951,000 500,000 3,800,000 0 600,000 5,851,000 0 14,562,380 Total 3,459,192 5,252,188 5,252,188 951,000 500,000 3,800,000 0 600,000 5,851,000 0 14,562,380 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 2,767,349 5,252,188 5,252,188 951,000 500,000 3,800,000 0 600,000 5,851,000 0 13,870,537 Design 691,830 0 0 0 0 0 0 0 0 0 691,830 Total 3,459,179 5,252,188 5,252,188 951,000 500,000 3,800,000 0 600,000 5,851,000 0 14,562,367 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-4.1 Program: N4.13.2 Potential Board/Commission Review: Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. WATER FUND 548 WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Water, Gas, Wastewater Utility GIS Data Water, Gas, Wastewater Utility GIS Data Description This project covers the annual maintenance and support contract to improve the ability of Utili- ties Department staff to use the Geographic Information System (GIS). As with other GIS activi- ties, continuing the completion of data-related tasks is the primary emphasis. Because field personnel still need accurate paper maps in the field, standard map books will be produced to meet their specific needs. Funding is also included to improve the GIS user interface to better serve the unique requirements of Utility Department users. Justification The GIS program is used for interfacing with modeling software to perform engineering analysis and master planning, develop and prioritize cost-effective capital improvement designs, and asset management of the City's utility enterprise system to enhance the level of service to utility customers. Significant Changes 2020-2024 CIP: The City will transition to a new GIS platform in FY 2020. Remaining FY 2019 funds are being reappropriated to fund the conversion activities required to bring the maps to the new platform. Fund: Water Fund Category: System Improvements Project Location: Software maintenance & update Managing Department: Utilities Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: WS-02014 Staff collecting data for GIS system WATER FUND WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 549 Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Transfer from Gas Fund N/A 152,059 152,059 156,621 161,320 166,160 171,143 176,266 831,510 0 N/A Transfer from Wastewater Collection Fund N/A 152,059 152,059 156,621 161,320 166,160 171,143 176,267 831,511 0 N/A Water Fund N/A 762,159 762,159 156,620 161,318 166,157 171,145 176,267 831,507 0 N/A Total N/A 1,066,277 1,066,277 469,862 483,958 498,477 513,431 528,800 2,494,528 0 N/A Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 736,399 1,066,277 469,862 483,958 498,477 513,431 528,800 2,494,528 0 N/A Design N/A 329,878 0 0 0 0 0 0 0 0 N/A Total N/A 1,066,277 1,066,277 469,862 483,958 498,477 513,431 528,800 2,494,528 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Efficient and Effective Service Delivery Goal: C-1 Policy: C-1.3 Program: C1.3.1 Potential Board/Commission Review: Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. WATER FUND WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 551 Water Main Replacements WATER FUND 552 WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Water Main Replacement - Project 27 Water Main Replacement - Project 27 Description This project will fund the design and replacement of structurally deficient water mains and appurtenances, starting in Fiscal Year 2020. Mains are selected by researching the maintenance history of the system and identifying those that are undersized, corroded, and subject to breaks. The project scope includes approximately 9,150 linear feet (which represents 0.8% of the City's Water Distribution System) of mains and services on various streets within the City, including areas in the Oak Creek and Greenmeadow neighborhoods. Justification Some mains are inadequate in size to supply required flows and pressures for fire protection, some are located in areas of high liquefaction, and others are subject to recurring breaks. Supplemental Information Each year the projects are re-evaluated and the highest priority is given to the most deterio- rated portions of the system. Linear footage and locations are subject to change; please refer to the City of Palo Alto Utilities webpage to confirm project details. Significant Changes 2019-2023 CIP: Project budget has increased by $0.6 million to account for construction cost escalation. 2018-2022 CIP: The construction is postponed to start in the later part of FY 2019 due to delays of WMR 26. Fund: Water Fund Category: Water Main Replacements Project Location: Various locations Managing Department: Utilities Initial Project Start: Summer 2016 Initial Project Completion: Winter 2018 Revised Project Start: Summer 2019 Revised Project Completion: Summer 2020 Project Number: WS-13001 Installed 16" HDPE pipe waiting to be backfilled WATER FUND WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 553 Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Water Fund 148,885 7,068,639 4,568,639 2,500,000 0 0 0 0 2,500,000 0 7,217,524 Total 148,885 7,068,639 4,568,639 2,500,000 0 0 0 0 2,500,000 0 7,217,524 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 34,689 7,068,639 4,568,639 2,500,000 0 0 0 0 2,500,000 0 7,103,328 Design 114,194 0 0 0 0 0 0 0 0 0 114,194 Total 148,883 7,068,639 4,568,639 2,500,000 0 0 0 0 2,500,000 0 7,217,522 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-4.1 Program: N4.13.2 Potential Board/Commission Review: Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. WATER FUND 554 WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Water Main Replacement - Project 28 Water Main Replacement - Project 28 Description This project will fund the design and replacement of structurally deficient water mains and appurtenances in Fiscal Years 2021 and 2022. Mains are selected by researching the mainte- nance history of the system and identifying those that are undersized, corroded, and subject to breaks. The project scope includes approximately 14,985 linear feet (which represents 1.2% of the City's Water Distribution System) of mains and services on various streets within the City, including areas in the Crescent ParK, Barron Park, and Charleston Meadows neighborhoods. Justification Some mains are inadequate in size to supply required flows and pressures for fire protection, some are located in areas of high liquefaction, and others are subject to recurring breaks. Supplemental Information Each year the projects are re-evaluated and the highest priority is given to the most deterio- rated portions of the system. Linear footage and locations are subject to change; please refer to the City of Palo Alto Utilities webpage to confirm project details. Significant Changes 2020-2024 CIP: City staff has proposed a new replacement schedule of completing a water, gas and wastewater construction project every other year instead of annually to reduce the amount of construction when prices are high. In the last few years there have been fewer bid- ders and higher prices on construction projects due to the increased demand for construction services. The total project cost increased to $9.0 million to account for an additional 1,400 in lin- ear feet and escalating construction costs. Fund: Water Fund Category: Water Main Replacements Project Location: Various locations Managing Department: Utilities Initial Project Start: Summer 2017 Initial Project Completion: Winter 2019 Revised Project Start: Summer 2020 Revised Project Completion: Spring 2022 Project Number: WS-14001 New HDPE main connecting to side street with new valve WATER FUND WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 555 2018-2022 CIP: Due to delays of WMR 26 and 27, the project design and construction will be delayed to FY 2019 and FY 2020. Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Water Fund 0 585,107 80,000 500,000 8,500,000 0 0 0 9,000,000 0 9,080,000 Total 0 585,107 80,000 500,000 8,500,000 0 0 0 9,000,000 0 9,080,000 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 0 8,500,000 0 0 0 8,500,000 0 8,500,000 Design 0 585,107 80,000 500,000 0 0 0 0 500,000 0 580,000 Total 0 585,107 80,000 500,000 8,500,000 0 0 0 9,000,000 0 9,080,000 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-4.1 Program: N4.13.2 Potential Board/Commission Review: Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. WATER FUND 556 WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Water Main Replacement - Project 29 Water Main Replacement - Project 29 Description This project will fund the design and replacement of structurally deficient water mains and appurtenances in Fiscal Years 2022 and 2024. Mains are selected by researching the mainte- nance history of the system and identifying those that are undersized, corroded, and subject to breaks. The project scope includes approximately 13,425 linear feet (which represents 1.2% of the City's Water Distribution System) of mains and services on various streets within the City, including areas in the Evergreen Park, Ventura, and Midtown/Midtown West neighborhoods. Justification Some mains are inadequate in size to supply required flows and pressures for fire protection, some are located in areas of high liquefaction, and others are subject to recurring breaks. Supplemental Information Each year the projects are re-evaluated and the highest priority is given to the most deterio- rated portions of the system. Linear footage and locations are subject to change, please refer to the City of Palo Alto Utilities webpage to confirm project details. Significant Changes 2020-2024 CIP: City staff has proposed a new replacement schedule of completing a water, gas and wastewater construction project every other year instead of annually to reduce the amount of construction when prices are high. In the last few years there have been fewer bid- ders and higher prices on construction projects due to the increased demand for construction services. The total project linear footage increased by 1,475 and overall project cost increased to $9.4 million to account for escalating construction costs. Fund: Water Fund Category: Water Main Replacements Project Location: Various locations Managing Department: Utilities Initial Project Start: Summer 2018 Initial Project Completion: Winter 2020 Revised Project Start: Summer 2022 Revised Project Completion: Spring 2024 Project Number: WS-15002 16" HDPE pipe ready to be installed by open trench method WATER FUND WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 557 2018-2022 CIP: Due to delays of WMR 26, 27 and 28, the project design and construction will be postponed to FY 2020 and FY 2021. Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Water Fund 0 0 0 0 850,000 0 8,500,000 0 9,350,000 0 9,350,000 Total 0 0 0 0 850,000 0 8,500,000 0 9,350,000 0 9,350,000 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 0 0 0 8,500,000 0 8,500,000 0 8,500,000 Design 0 0 0 0 850,000 0 0 0 850,000 0 850,000 Total 0 0 0 0 850,000 0 8,500,000 0 9,350,000 0 9,350,000 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-4.1 Program: N4.13.2 Potential Board/Commission Review: Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. WATER FUND 558 WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Water Main Replacement - Project 30 Water Main Replacement - Project 30 Description This project will fund the design and replacement of structurally deficient water mains and appurtenances in Fiscal Years 2024 and 2026. Mains are selected by researching the mainte- nance history of the system and identifying those that are undersized, corroded, and subject to breaks. The project scope includes approximately 13,025 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 Midtown/Midtown West, Palo Verde, and Greenmeadow neighborhoods. Justification Some mains are inadequate in size to supply required flows and pressures for fire protection, some are located in areas of high liquefaction, and others are subject to recurring breaks. Supplemental Information Each year the projects are re-evaluated and the highest priority is given to the most deterio- rated portions of the system. Linear footage and locations are subject to change; please refer to the City of Palo Alto Utilities webpage to confirm project details. Significant Changes 2020-2024 CIP: City staff has proposed a new replacement schedule of completing a water, gas and wastewater construction project every other year instead of annually to reduce the amount of construction when prices are high. In the last few years there have been fewer bid- ders and higher prices on construction projects due to the increased demand for construction services. The project increased by 2,600 linear footage and the overall cost increased to $9.4 million to account for escalating construction costs. Fund: Water Fund Category: Water Main Replacements Project Location: Managing Department: Utilities Initial Project Start: Summer 2019 Initial Project Completion: Winter 2021 Revised Project Start: Summer 2024 Revised Project Completion: Spring 2026 Project Number: WS-16001 HDPE pipe waiting to be fused WATER FUND WATER FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 559 2018-2022 CIP: Due to delays of WMR 26 - 29, the project design and construction is post- poned to FY 2021 and FY 2022. Operating Impact There are no additional operating impacts anticipated from this project. Any maintenance costs that arise will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Water Fund 0 0 0 0 0 0 850,000 0 850,000 8,500,000 9,350,000 Total 0 0 0 0 0 0 850,000 0 850,000 8,500,000 9,350,000 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Design 0 0 0 0 0 0 850,000 0 850,000 8,500,000 9,350,000 Total 0 0 0 0 0 0 850,000 0 850,000 8,500,000 9,350,000 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Water Resources Goal: N-4 Policy: N-4.1 Program: N4.13.2 Potential Board/Commission Review: Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15302. CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 561 INTERNAL SERVICE FUND PROJECTS Internal Service Fund1SPKFDUT CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 563 TECHNOLOGY FUND TECHNOLOGY FUND 564 TECHNOLOGY FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET TECHNOLOGY FUND Overview The Technology Fund accounts for expenses associated with citywide Information Technology activities. Technology Fund capital projects enhance service delivery to the community and to City staff through the delivery and implementation of Information Technology infrastructure. It is important to note that all expenditures in the Technology Fund are reimbursed by transfers from the other City funds benefiting from the services and purchases incurred in the Technol- ogy Fund. Overall, a total of seven capital projects are programmed over the five-year Capital Improvement Program (CIP). The projects outlined in the capital program represent only a small subset of the total number of technology projects delivered to the City, as most technology projects are funded through the operating budget and do not meet the criteria of a capital proj- ect. Please refer to the Information Technology Department section of the Operating Budget for additional information. The budget for the Technology Fund Capital Improvement Program is accounted for in two separate categories: Citywide Technology Upgrades and Department Technology Upgrades and Improvements. Citywide Technology Upgrades The Citywide Technology Upgrades category includes projects that benefit multiple City departments. They tend to have a larger scope than projects for individual departments and thus entail more coordination and complexity. For the 2021- 2025 Capital Improvement Pro- gram, $2.4 million is allocated within this category, all of which was approved by the City Coun- cil in prior years. Recent Accomplishments: Implemented additional disaster recovery and security software/hardware to further bolster the City’s network security presence. Purchased additional radios and related equipment to move to the new countywide radio communication system. The upgrade implementation of the City’s Enterprise Resource Planning (ERP) system is fully underway. $0 $2,000,000 $4,000,000 $6,000,000 FY 2017 Actuals FY 2019 Actuals FY 2021 Proposed FY 2023 Projected FY 2025 Projected Technology Fund Capital Expenditures TECHNOLOGY FUND TECHNOLOGY FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 565 2021-2025 Capital Improvement Program Recurring Projects: There is one recurring project within this category: Radio Infrastructure Replacement: This project, which is funded by annual transfers from the General Fund and Utility Enterprise Funds as well as funding from Stanford, allows for the replacement of various items in the City’s Public Safety infrastructure inventory (Fiscal Year 2021 and 5-Year CIP: $0.2 million). Non-Recurring Projects: IT Disaster Recovery: This initiative identifies and addresses gaps in business continuity. There are $0.03 million in additional enhancements remaining for this project, which is scheduled to be completed by the end of Fiscal Year 2021 (Fiscal Year 2021 and 5-Year CIP: $0.03 million). Enterprise Resource Planning Upgrade: This project will upgrade the existing Enterprise Resource Planning (ERP) system and replace the existing Customer Information System (CIS) to better meet the City’s needs (Fiscal Year 2021 and 5-Year CIP: $2.0 million). City Council Chambers Upgrade: This project will upgrade the necessary audio visual equipment in Council Chambers as the equipment in place now is unsupportable and outdated. This project will also bring the identified Americans with Disabilities Act (ADA) components to compliance (Fiscal Year 2021 and 5-Year CIP: $0.1 million). Infrastructure Management System: This project establishes an Enterprise Asset Management System (EAMS) to maintain an up-to-date inventory of the City’s infrastructure, its catch-up and keep-up needs, and available funding (Fiscal Year 2021 and 5-Year CIP: $0.02 million). Department Technology Upgrades and Improvements The Department Technology Upgrades and Improvements category includes projects that ben- efit one or a limited number of City departments. For the 2021-2025 Capital Improvement Pro- gram, $1.4 million is programmed within this category. Recent Accomplishments: The new customer self-service portal, MyCPAU, went live to all customers in March 2020. This new portal replaced the My Utilities Account (MUA). Continued technology enhancements at the Development Center to increase efficiency and effectiveness of the services offered. 2021-2025 Capital Improvement Program Recurring Projects: The 2021-2025 CIP includes one recurring project within this category: TECHNOLOGY FUND 566 TECHNOLOGY FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Utilities Customer Bill System Improvements: This project allows for enhancements to the Utilities Billing system particularly in response to new legislative, regulatory, and security requirements. Other system enhancements may include third party or hosted services for bill printing and invoicing, customer self-service portal, and reporting capabilities. This project will continue to be recurring until the upgrade of the ERP and replacement of the Utilities Billing system is completed. After the systems are implemented, the project will be reevaluated to determine if recurring funding is required (Fiscal Year 2021: $0.2 million; 5- Year CIP: $0.6 million). Non-Recurring Projects: Public Safety Records Management System: This replacement of the Records Management System (RMS) is a Tri-City Consortium coordinated effort between Mountain View, Los Altos, and Palo Alto (Fiscal Year 2021 and 5-Year CIP: $0.8 million). Development Center Blueprint Technology Enhancements: This project allows for the introduction of new technologies to support business processes and optimize customer service at the Development Center. Major enhancements to the existing Accela permitting system are included in this initiative (Fiscal Year 2021 and 5-Year CIP: $0.5 million). Summary of Capital Activity TECHNOLOGY FUND Project Number Project Title FY 2019 Actuals FY 2020 Estimate FY 2021 Proposed FY 2022 FY 2023 FY 2024 FY 2025 5-Year Total Source of Funds Transfers from Other Funds Transfers from Airport Fund TE-19001 City Council Chambers Upgrade 0 9,200 500 0 0 0 0 500 Transfers from Airport Fund Total 0 9,200 500 0 0 0 0 500 Transfers from General Fund TE-05000 Radio Infrastructure Replacement 64,000 64,000 0 0 0 0 0 0 Transfers from General Fund Total 64,000 64,000 0 0 0 0 0 0 Transfers from Print and Mail Fund TE-19001 City Council Chambers Upgrade 0 9,200 400 0 0 0 0 400 Transfers from Print and Mail Fund Total 0 9,200 400 0 0 0 0 400 Transfers from Refuse Fund TE-19001 City Council Chambers Upgrade 0 55,100 5,600 0 0 0 0 5,600 TE-10001 Utilities Customer Bill System Improvements 20,103 0 20,125 14,950 11,500 11,500 11,500 69,575 Transfers from Refuse Fund Total 20,103 55,100 25,725 14,950 11,500 11,500 11,500 75,175 TECHNOLOGY FUND TECHNOLOGY FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 567 Transfers from Stormwater Management Fund TE-19001 City Council Chambers Upgrade 0 36,700 2,500 0 0 0 0 2,500 TE-10001 Utilities Customer Bill System Improvements 4,299 0 4,550 3,380 2,600 2,600 2,600 15,730 Transfers from Stormwater Management Fund Total 4,299 36,700 7,050 3,380 2,600 2,600 2,600 18,230 Transfers from Utilities Administration Fund TE-19001 City Council Chambers Upgrade 0 587,500 19,500 0 0 0 0 19,500 TE-05000 Radio Infrastructure Replacement 20,000 20,000 0 0 0 0 0 0 TE-10001 Utilities Customer Bill System Improvements 150,598 0 150,325 111,670 85,900 85,900 85,900 519,695 Transfers from Utilities Administration Fund Total 170,598 607,500 169,825 111,670 85,900 85,900 85,900 539,195 Transfer from Vehicle Replacement Fund TE-19001 City Council Chambers Upgrade 0 64,200 3,500 0 0 0 0 3,500 Transfers from Vehicle Replacement Fund Total 0 64,200 3,500 0 0 0 0 3,500 Transfers from Wastewater Treatment Fund TE-19001 City Council Chambers Upgrade 0 156,100 14,000 0 0 0 0 14,000 Transfers from Wastewater Treatment Fund Total 0 156,100 14,000 0 0 0 0 14,000 Total Transfers from Other Funds 259,000 1,002,000 221,000 130,000 100,000 100,000 100,000 651,000 Other Revenue TE-05000 Radio Infrastructure Replacement: Stanford 0 362,000 0 0 0 0 0 0 Other Revenue Total 0 362,000 0 0 0 0 0 0 Total Sources 259,000 1,364,000 221,000 130,000 100,000 100,000 100,000 651,000 Use of Funds Citywide Technology Upgrades and Improvements TE-19001 City Council Chambers Upgrade 0 1,700,000 93,000 0 0 0 0 93,000 TE-19000 Enterprise Resource Planning Upgrade 0 2,921,000 2,029,000 0 0 0 0 2,029,000 TE-13004 Infrastructure Management System 3,650 75,600 21,800 0 0 0 0 21,800 TE-01012 IT Disaster Recovery Plan 31,148 50,000 33,600 0 0 0 0 33,600 TE-05000 Radio Infrastructure Replacement 319,863 366,400 201,000 0 0 0 0 201,000 Total Citywide Technology Upgrades and Improvements 354,661 5,113,000 2,378,400 0 0 0 0 2,378,400 Project Number Project Title FY 2019 Actuals FY 2020 Estimate FY 2021 Proposed FY 2022 FY 2023 FY 2024 FY 2025 5-Year Total TECHNOLOGY FUND 568 TECHNOLOGY FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Department Technology Upgrades and Improvements TE-12001 Development Center Blueprint Technology Enhancement 23,844 25,000 477,600 0 0 0 0 477,600 TE-11001 Library Computer System Software 50,108 48,700 0 0 0 0 0 0 TE-95016 Permit Information Tracking System 60,442 0 0 0 0 0 0 0 TE-09000 Public Safety Computer-Aided Dispatch Replacement 0 133,000 0 0 0 0 0 0 TE-21000 Public Safety Records Management System Replacement 0 0 750,000 0 0 0 0 750,000 TE-10001 Utilities Customer Bill System Improvements 15,399 271,300 175,000 130,000 100,000 100,000 100,000 605,000 Total Department Technology Upgrades and Improvements 149,793 478,000 1,402,600 130,000 100,000 100,000 100,000 1,832,600 Total Uses 504,454 5,591,000 3,781,000 130,000 100,000 100,000 100,000 4,211,000 Project Number Project Title FY 2019 Actuals FY 2020 Estimate FY 2021 Proposed FY 2022 FY 2023 FY 2024 FY 2025 5-Year Total TECHNOLOGY FUND TECHNOLOGY FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 569 Citywide Technology Upgrades and Improvements TECHNOLOGY FUND 570 TECHNOLOGY FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET City Council Chambers Upgrade City Council Chambers Upgrade Description On December 17th, 2018, the City Council approved upgrading the City Council Chambers with- out using a phased approach as recommended by the Finance Committee. Funding will be used to upgrade outdated electronic equipment that has become unsupportable in City Council Chambers. This will help address technical issues and ensure compliance with Americans with Disabilities Act (ADA) requirements. This project will: - Replace and upgrade outdated audio/visual equipment and make the City Council Chambers ADA compliant - Upgrade the City Council Chambers broadcast booth, overhead display equipment, and dais equipment (including a supportable voting system) - Make the City Council Chambers broadcast booth compliant with ADA and State regulations - Obtain adequate support, maintenance, and warranty for all equipment - Integrate the City Hall Lobby Video Wall, Community Meeting Room, and Council Conference Room with new City Council Chambers equipment to enable viewing and/or broadcasting Justification Most of the electronic equipment in the City Council Chambers is obsolete and unsupportable. The City's recent ADA transition plan update identified accessibility deficiencies in the City Council Chambers. The broadcast booth contains some equipment with expired warranties, unused equipment, and cabling that is not well managed. These issues pose potential hazards for the broadcasting operators. The broadcast booth also lacks back-up power supplies, which Fund: Technology Fund Category: Citywide Technology Upgrades and Improvements Project Location: City Hall Managing Department: Information Technology Initial Project Start: Summer 2019 Initial Project Completion: Summer 2020 Revised Project Start: Revised Project Completion: Project Number: TE-19001 City Council Chambers TECHNOLOGY FUND TECHNOLOGY FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 571 could hinder broadcasting and recording of the session. The rear projected overhead display is not clear, presents dissimilar sizes, and can only display two inputs. These issues unnecessarily hinder the City Clerks' administrative function during Council meetings. The existing voting sys- tem has been deemed unsupportable and unrepairable by electricians and could stop function- ing at any time. The broadcast booth is not currently integrated with the upgraded equipment that has been installed in the Community Meeting Room, Council Conference Room, Flexible Training Room, and several library meeting rooms, which prevents the City from fully utilizing the new capabilities and functionality this upgraded equipment offers. Significant Changes FY 2021-2025 CIP: RFP is in the process of being issued to procure a vendor to help with the upgrade. Contract award is anticipated in June or July of 2020. Operating Impact Operating costs have not been determined at this time as the RFP has not been released. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Technology Fund 0 782,000 782,000 47,000 0 0 0 0 47,000 0 829,000 Transfer from Airport Fund 0 9,200 9,200 500 0 0 0 0 500 0 9,700 Transfer from Print & Mail Fund 0 9,200 9,200 400 0 0 0 0 400 0 9,600 Transfer from Refuse Fund 0 55,100 55,100 5,600 0 0 0 0 5,600 0 60,700 Transfer From Stormwater Management Fund 0 36,700 36,700 2,500 0 0 0 0 2,500 0 39,200 Transfer from Utilities Administration Fund 0 587,500 587,500 19,500 0 0 0 0 19,500 0 607,000 Transfer from Vehicle Replacement and Maintenance 0 64,200 64,200 3,500 0 0 0 0 3,500 0 67,700 Transfer from Wastewater Treatment Fund 0 156,100 156,100 14,000 0 0 0 0 14,000 0 170,100 Total 0 1,700,000 1,700,000 93,000 0 0 0 0 93,000 0 1,793,000 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 1,700,000 1,700,000 93.000 0 0 0 0 93,000 0 1,700,000 Total 0 1,700,000 1,700,000 93,000 0 0 0 0 93,000 0 1,793,000 TECHNOLOGY FUND 572 TECHNOLOGY FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Maintenance of Parks and Community Facilities Goal: C-3 Policy: C-3.2 Potential Board/Commission Review: Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. TECHNOLOGY FUND 574 TECHNOLOGY FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Enterprise Resource Planning Upgrade Enterprise Resource Planning Upgrade Description This project provides funding to upgrade the existing Enterprise Resource Planning (ERP) sys- tem and Customer Information System (CIS) to better meet the City's needs. Justification The City's existing ERP system, SAP, was selected in 2002 with the purpose of integrating vari- ous business processes and moving towards electronic Government (eGovernment). In Fiscal Year 2003, the implementation of SAP's Enterprise Central Component (ECC 4.6C) core mod- ules was completed and since then the City has been running SAP to support Accounting, Finance, Purchasing, Project Management, Plant Maintenance, Budgeting, Payroll, Human Resource Management, and Service Order Management. In 2009, the City completed a major upgrade to SAP (ECC 6.0). The City also replaced the former utility billing system (Banner) with the implementation of SAP's Customer Relationship Management (CRM) Utilities Customer Electronic Services (also known as My Utilities Account customer portal) and Business Intelli- gence Systems (BI). Supplemental Information Technology and business needs have changed dramatically since the current ERP solution was selected and implemented. The upgrade of the existing ERP is anticipated to address a number of issues currently facing the City, including the following: - The City is currently running an old version of SAP which does not support increasing demands in business and technology. Fund: Technology Fund Category: Citywide Technology Upgrades and Improvements Project Location: Various Managing Department: Information Technology Initial Project Start: Summer 2018 Initial Project Completion: Summer 2022 Revised Project Start: Revised Project Completion: Summer 2021 Project Number: TE-19000 New Financial System TECHNOLOGY FUND TECHNOLOGY FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 575 - The City requires a system that is user friendly with faster response times for any add/modify needs. - The upgraded system will facilitate automation of additional business processes which are not supported in the current software. - The City anticipates improvements to quality and reliability of information that will enhance decision making and strengthen the reporting capacity of the City in a user-friendly manner. Funds currently recommended reflect only estimated costs. Once a vendor is selected, full sys- tem and implementation costs will be updated. Significant Changes FY 2021-2025 CIP: The necessary licensing has been purchased for the SAP upgrade and the contract is in place with LSI, Inc to help the City upgrade the SAP system. Implementation has started and is anticipated to be finished in FY 2021. FY 2020-2024 CIP: After thorough consideration, it was determined that an upgrade to the current SAP environment would be more appropriate than a complete system replacement at this time. The request for proposal (RFP) was therefore canceled on November 14th, 2018 and the vendors were notified of the cancellation. An upgrade to the current SAP system will avoid the risks, costs, and management challenges associated with migration to a new ERP. The upgrade cost of the current SAP environment is estimated at $4.0 million, which includes Financial/Human Resources system software and services, hardware, project staffing and other costs. The scope of this upgrade includes moving from the current SAP ECC 6.0 Enhancement Package (EHP) 2.0 to SAP ECC 6.0 EHP 8.0. The recurring annual SAP licensing cost for EHP 8.0 is estimated at $0.4 million. The annual licensing cost is approximately $0.6 million less annually when compared to a new ERP. The difference in cost to implement the upgrade versus a new ERP saves the City approximately $2.0 million. With this upgrade, the City will be able to benefit from a more user-friendly interface, mobile friendly workflows and timesheets, and faster and easier access to necessary operational reports enabling data driven decisions. Staff can anticipate tight integration with key external solutions such as Geographic Information System (GIS) Spatial Mapping solution, Smart Water Metering Technologies, and SAP Business Intelligence and reporting solution. While it is expected that all major Financial and Human Resource functions will be maintained within this upgraded SAP, many business processes will see improvements or changes to increase effi- ciency and improved controls. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Technology Fund 0 4,949,976 2,921,000 2,029,000 0 0 0 0 2,029,000 0 4,950,000 Total 0 4,949,976 2,921,000 2,029,000 0 0 0 0 2,029,000 0 4,950,000 TECHNOLOGY FUND 576 TECHNOLOGY FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Operating Impact Annual licensing fees of $0.4 million are anticipated to begin in FY 2021 for this project once the ERP system is upgraded, which is approximately $0.1 million more than the current licensing costs. Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 3,700,000 1,250,000 2,029,000 0 0 0 0 2,029,000 0 3,279,000 Design 0 1,249,976 1,671,000 0 0 0 0 0 0 0 1,671,000 Total 0 4,949,976 2,921,000 2,029,000 0 0 0 0 2,029,000 0 4,950,000 Anticipated Operating Budget Needs Fund FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 Technology Fund 100,000 100,000 100,000 100,000 100,000 Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Efficient and Effective Service Delivery Goal: C-1 Policy: C-1.3 Potential Board/Commission Review: Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. TECHNOLOGY FUND 578 TECHNOLOGY FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Infrastructure Management System Infrastructure Management System Description This project establishes an Enterprise Asset Management System (EAMS) to maintain an up-to- date inventory of the City's infrastructure, its catch-up and keep-up needs, and available fund- ing. Such a management tool will support ongoing staff and Council attention to infrastructure budgeting, planning, and accountability. This system will be integrated with the programs the City now uses to manage infrastructure and finance. Justification As recommended by the Infrastructure Blue Ribbon Commission, an Infrastructure Management System (IMS) is needed to enable staff to monitor facility conditions, forecast maintenance needs, factor inflation, and assemble usage data. An IMS would provide decision makers with invaluable cost and funding data. Currently, the relevant information is not maintained within a single system. Several outside consultants, as well as the City Auditor (2008), have recom- mended that the City put in place such a system, widely used in industry and government and available commercially. Supplemental Information Based on the results of the needs assessment study, two software applications already in use by the City will be used to form an integrated IMS. One application will be used to maintain an asset inventory and to track maintenance and condition information, while the other will be used to schedule projected capital maintenance needs and to track catch-up and keep-up. Fund: Technology Fund Category: Citywide Technology Upgrades and Improvements Project Location: Various Managing Department: Information Technology Initial Project Start: Summer 2013 Initial Project Completion: Summer 2014 Revised Project Start: Revised Project Completion: Fall 2020 Project Number: TE-13004 Infrastructure Management System TECHNOLOGY FUND TECHNOLOGY FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 579 Significant Changes 2021-2025 CIP: Customization and configuration work was not able to be fully completed in FY 2020. Funding to finalize the integration will be reappropriated to FY 2021 to complete the proj- ect. 2020-2024 CIP: Additional work is required for the integrated Infrastructure Management Sys- tem, such as further professional service hours required for customization and configuration for the two systems that have been identified as the integrated IMS. This CIP is anticipated to close at the end of Fiscal Year 2020. Operating Impact No operating costs have been identified after the completion of this project. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Technology Fund 171,445 97,410 75,600 21,800 0 0 0 0 21,800 0 268,845 Total 171,445 97,410 75,600 21,800 0 0 0 0 21,800 0 268,845 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 171,445 97,410 75,600 21,800 0 0 0 0 21,800 0 268,845 Total 171,445 97,410 75,600 21,800 0 0 0 0 21,800 0 268,845 Relationship to Comprehensive Plan Primary Connection Element: Land Use and Community Design Section: Public Streets and Public Spaces Goal: L-9 Policy: L-9.11 Program: L9.11.2 Potential Board/Commission Review: Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. TECHNOLOGY FUND 580 TECHNOLOGY FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET IT Disaster Recovery Plan IT Disaster Recovery Plan Description Provide the means to resume mission critical business operations should any disaster occur that renders the City's primary computer system infrastructure inoperable. The funding within this project allows for the City to deploy appropriate disaster recovery and business continuity solu- tions. Justification Over the last five years the City has deployed disaster recovery solutions for the City's data and mission critical applications. Remaining funds from this CIP will be used to further enhance the disaster recovery and business continuity solutions. Significant Changes 2021-2025 CIP: This CIP is anticipated to close in Fiscal Year 2021. Staff is currently reviewing further security solutions to enhance cybersecurity threat detection at the City. This analysis is anticipated to be completed at the end of FY 2020 and a solution implemented in FY 2021. 2020-2024 CIP: This CIP is anticipated to close in the fall of Fiscal Year 2020. Fund: Technology Fund Category: Citywide Technology Upgrades and Improvements Project Location: Various Managing Department: Information Technology Initial Project Start: Summer 2012 Initial Project Completion: Summer 2015 Revised Project Start: Summer 2015 Revised Project Completion: Fall 2020 Project Number: TE-01012 IT Disaster Recovery Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Technology Fund 495,054 83,600 50,000 33,600 0 0 0 0 33,600 0 578,654 Total 495,054 83,600 50,000 33,600 0 0 0 0 33,600 0 578,654 TECHNOLOGY FUND TECHNOLOGY FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 581 Operating Impact $40,000 in operating costs starting in FY 2021 to be used for Data Loss Prevention (DLP) tools. DLP is used to ensure that sensitive data is not lost, misused, or accessed by unauthorized users. Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 463,112 83,600 50,000 33,600 0 0 0 0 33,600 0 546,712 Design 31,941 0 0 0 0 0 0 0 0 0 31,941 Total 495,053 83,600 50,000 33,600 0 0 0 0 33,600 0 578,653 Anticipated Operating Budget Needs Fund FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 Technology Fund 40,000 40,000 40,000 40,000 40,000 Relationship to Comprehensive Plan Primary Connection Element: Safety Section: Natural Hazards Goal: S-2 Policy: S-2.1 Potential Board/Commission Review: Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. TECHNOLOGY FUND 582 TECHNOLOGY FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Radio Infrastructure Replacement Radio Infrastructure Replacement Description This project funds the transition from the City's legacy analog radio system to the new Silicon Valley Regional Communications System (SVRCS). The City is participating with 14 other local agencies in an effort organized by the Silicon Valley Regional Interoperability Authority (SVRIA) to move to a countywide 700 Mhz radio communication system. This project provides funding for the City's share of establishing an interoperable radio communication system within the region and radios for all Palo Alto City users. Upon completion of the project, the law enforce- ment, fire and rescue service, emergency medical response, and disaster recovery units within the participating agencies will be able to communicate via an integrated voice and data com- munications system. Justification Communications systems require continued replacement as infrastructure and equipment ages. Within the region, the communications systems have been fragmented. The new SVRCS will provide interoperable communications compliant with Department of Homeland Security com- munications guidelines. Supplemental Information 2021-2025 CIP: Migration of the remaining City radios was not able to be fully completed in FY 2020. Funding to finalize this work will be reappropriated to FY 2021 to complete the project. 2020-2024 CIP: The infrastructure for the West Cell (location of multiple transmit/receive sites) is close to complete. The City has installed all of the required consoles and base stations. Public Fund: Technology Fund Category: Citywide Technology Upgrades and Improvements Project Location: Various Managing Department: Information Technology Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: TE-05000 Public Safety Radios TECHNOLOGY FUND TECHNOLOGY FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 583 Works and Utilities migrated to the new system in November of 2018 and Public Safety and the remaining City radio users will be on the new system in FY 2020. Operating Impact City departments will fund the maintenance of their department's radios out of their respective departmental operating budgets. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Revenue from Other Agencies N/A 86,000 362,000 0 0 0 0 0 0 0 N/A Technology Fund N/A 397,416 (79,600)201,000 0 0 0 0 201,000 0 N/A Transfer from General Fund N/A 64,000 64,000 0 0 0 0 0 0 0 N/A Transfer from Utilities Administration Fund N/A 20,000 20,000 0 0 0 0 0 0 0 N/A Total N/A 567,416 366,400 201,000 0 0 0 0 201,000 0 N/A Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 567,416 366,400 201,000 0 0 0 0 201,000 0 N/A Total N/A 567,416 366,400 201,000 0 0 0 0 201,000 0 N/A Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Service to the Public Goal: C-2 Policy: C-2.2 Potential Board/Commission Review: Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. TECHNOLOGY FUND TECHNOLOGY FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 585 Department Technology Upgrades and Improvements TECHNOLOGY FUND 586 TECHNOLOGY FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Development Center Blueprint Technology Enhancements Development Center Blueprint Technology Enhancements Description This project will focus on installing an operating electronic permitting system, including the hardware, software, and training for system operations. Project funds may also be used to pro- vide continued enhancement and integration with the City’s permitting software Accela. The department, in collaboration with the City Manager’s Office and Information Technology Department, may also utilize funds for new emerging technologies, which increase customer service or improve service delivery. Justification This project falls under the scope of the Development Center Blueprint Project that was approved by the City Council in December of 2011 and will enhance the efficiency and effective- ness of the Planning and Development Services Department. Supplemental Information This project has funded many software and customer service based enhancements, which include advances associated with the Department's core software system, Accela, through sys- tem upgrades, customized reporting tools, and customer service portals. A mobile application (app) was developed for scheduling building inspections and for inspectors to use in the field for reporting along with an electronic document management system to organize the filing of permits and plans. Remaining projects include implementation of a customer queuing system and electronic plan review. Fund: Technology Fund Category: Department Technology Upgrades and Improvements Project Location: Various Managing Department: Information Technology Initial Project Start: Summer 2011 Initial Project Completion: Spring 2014 Revised Project Start: Revised Project Completion: Summer 2021 Project Number: TE-12001 Development Center TECHNOLOGY FUND TECHNOLOGY FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 587 Significant Changes 2021-2025 CIP: Due to the reorganization of the Planning and Development Services Depart- ment and other high priority projects, this project has not been completed. The Department will continue working on the transition to electronic plan review, including the hardware, software, and training for system operations as well as the implementation of a customer queuing system. 2020-2024 CIP: The Department will continue working on transition to electronic plan review, including the hardware, software, and training for system operations as well as a customer queuing system. 2018-2022 CIP: The Department will focus on installing an operating electronic permitting sys- tem, including the hardware, software and training for system operations. Other projects in progress are the creation of web self-service and publications sites; development of permit-cen- tric mobile apps; purchase of field ready hardware and associated data plans to support inspec- tions; and creation of performance reports/metrics. Operating Impact This project is anticipated to impact operating expenses in the future. As these costs are quan- tified, adjustments will be brought forward in future budgets, as necessary. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Technology Fund 1,235,378 502,614 25,000 477,600 0 0 0 0 477,600 0 1,737,978 Total 1,235,378 502,614 25,000 477,600 0 0 0 0 477,600 0 1,737,978 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 1,204,229 502,614 25,000 477,600 0 0 0 0 477,600 0 1,706,829 Design 31,149 0 0 0 0 0 0 0 0 0 31,149 Total 1,235,378 502,614 25,000 477,600 0 0 0 0 477,600 0 1,737,978 Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Service to the Public Goal: C-2 Policy: C-2.2 Potential Board/Commission Review: Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. TECHNOLOGY FUND 588 TECHNOLOGY FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Public Safety Records Management System Replacement Public Safety Records Management System Replacement Description This project provides funding for the replacement of the Records Management System (RMS) utilized by the Police Department. This project will be implemented in conjunction with the cit- ies of Mountain View and Los Altos. Justification This project provides law enforcement records database system upgrades to meet mandatory security, regulatory, and governing requirements. This includes integrating with the current Computer Aided Dispatch (CAD) database and online reporting system. The system was last upgraded in 1999. Supplemental Information This project was previously included in the Public Safety Computer Aided Dispatch (CAD) Replacement project (TE-09000). It consisted of two phases. Phase one, the Computer Aided Dispatch (CAD) installation was completed in 2014, replacing the original system from 1999. The Records Management System (RMS) replacement phase was intended to be the second phase of the project but, due to vendor product development and resource management, encoun- tered delays and RMS was separated into this project for better management and tracking. Significant Changes 2021-2025 CIP: A new RMS has been selected and is in the contracting phase. Full implementa- tion is anticipated to be complete in FY 2021. Fund: Technology Fund Category: Department Technology Upgrades and Improvements Project Location: Police Department Managing Department: Information Technology Initial Project Start: Summer 2020 Initial Project Completion: Spring 2021 Revised Project Start: Revised Project Completion: Project Number: TE-21000 Folders of Police cases TECHNOLOGY FUND TECHNOLOGY FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 589 Operating Impact This project is anticipated to impact operating expenses in the future. The current RMS annual costs are $33,000. The upgraded system would increase the annual cost $43,000 to $65,000 annually. The variability is dependent on how much the other two cities integrate the software into their current reporting infrastructure. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Technology Fund 0 0 0 750,000 0 0 0 0 750,000 0 750,000 Total 0 0 0 750,000 0 0 0 0 750,000 0 750,000 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction 0 0 0 750,000 0 0 0 0 750,000 0 750,000 Total 0 0 0 750,000 0 0 0 0 750,000 0 750,000 Anticipated Operating Budget Needs Fund FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 Technology Fund 0 65,000 65,000 65,000 65,000 Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Efficient and Effective Service Delivery Goal: C-1 Policy: C-1.3 Program: C1.3.1 Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. TECHNOLOGY FUND 590 TECHNOLOGY FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Utilities Customer Bill System Improvements Utilities Customer Bill System Improvements Description This project provides regulatory enhancements and improved security for the Utilities Billing system. Through the implementation of this recurring project the Utilities Department will be responsive to new legislation and legal requirements. Securing customer sensitive information and complying with Payment Card Industry (PCI) data security standards will continue to be a priority as well. Justification This project provides software system updates to meet mandatory security, regulatory, and governing requirements. This includes reviewing the various Meter-to-Cash business processes, the My Utilities Account online customer portal, reporting tools, bill print software, and the Cus- tomer Relationship Management (CRM) solution for the Utilities Billing system. The Enterprise Funds share proportionately in the costs of this project. Supplemental Information During the FY 2016 budget cycle, the ongoing budget for system enhancements was removed in anticipation of the City's Enterprise Resource Planning (ERP) system and Utilities Billing sys- tem implementations. Those projects have been delayed and as such, this project will continue to be recurring until the upgrade or replacements are complete. After the systems are imple- mented, the project will be reevaluated to determine if recurring funding is required. Fund: Technology Fund Category: Department Technology Upgrades and Improvements Project Location: Various Managing Department: Information Technology Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: TE-10001 Utilities Customer Bill System Improvements TECHNOLOGY FUND TECHNOLOGY FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 591 Significant Changes 2021-2025 CIP: The customer portal went live to all customers in March 2020. In conjunction with the launch of MyCPAU, minor cosmetic enhancement to the utilities invoice were made including the update of the logo. Additional enhancements to the MyCPAU portal are planned for FY 2021 and FY 2022 including the integration of MyCPAU to the new third party energy efficiency portals. Funds will also be used for any critical billing system enhancements for legis- lation and regulatory requirements. 2020-2024 CIP: Continuing replacement of the My Utilities Account (MUA) self-service cus- tomer portal, initiated in Summer 2017, to provide new online services and functionality. The design and implementation of the portal have taken longer than initially anticipated and the portal is now expected to be fully operational in Summer 2019. 2019-2023 CIP: Enhancements to the new customer portal will continue to allow for enhance- ments to the bill print software and Utilities Billing system, particularly in response to new legis- lative, regulatory, and security requirements. 2018-2022 CIP: A replacement of the MUA self-customer service portal is scheduled to be com- pleted by Summer 2018 and will provide new online self-services and functionality. Operating Impact There are no additional operating impacts. The maintenance costs of this new customer portal is offset by the old utilities account portal. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Technology Fund N/A 271,263 271,300 0 0 0 0 0 0 0 N/A Transfer from Refuse Fund N/A 0 0 20,125 14,950 11,500 11,500 11,500 69,575 0 N/A Transfer from Stormwater Management Fund N/A 0 0 4,550 3,380 2,600 2,600 2,600 15,730 0 N/A Transfer from Utilities Administration Fund N/A 0 0 150,325 111,670 85,900 85,900 85,900 519,695 0 N/A Total N/A 271,263 271,300 175,000 130,000 100,000 100,000 100,000 605,000 0 N/A Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Construction N/A 107,263 107,300 0 0 0 0 0 0 0 N/A Design N/A 164,000 164,000 175,000 130,000 100,000 100,000 100,000 605,000 0 N/A Total N/A 271,263 271,300 175,000 130,000 100,000 100,000 100,000 605,000 0 N/A TECHNOLOGY FUND 592 TECHNOLOGY FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Relationship to Comprehensive Plan Primary Connection Element: Community Services & Facilities Section: Service to the Public Goal: C-2 Policy: C-2.2 Potential Board/Commission Review: Planning and Transportation Commission Utilities Advisory Commission Environmental Impact Analysis: This project is categorically exempt from CEQA under section 15301. CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 593 VEHICLE REPLACEMENT FUND VEHICLE REPLACEMENT FUND 594 VEHICLE REPLACEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET VEHICLE REPLA Overview Activities related to the replacement, maintenance, and operations of the City’s fleet and equip- ment are accounted for within the Vehicle Replacement and Maintenance Fund (VRF). The VRF Capital Improvement Program (CIP) accounts for activities related to the replacement of the City’s fleet and equipment and infrastructure necessary to operate and maintain the fleet and equipment. For detailed information on the maintenance and operation of the fleet, please refer to the Vehicle Replacement and Maintenance Fund section of the Operating Budget. Over the 2021-2025 CIP, approximately 28.4% of the fleet is programmed for replacement at a cost of $20 million, with $7.5 million allocated in Fiscal Year 2021. Of the $7.5 million, $4.2 million is rec- ommended to be reappropriated for the continuation of projects approved by City Council in prior fiscal years. It is important to note that all expenditures in the fund are reimbursed by transfers from the funds benefiting from the services and purchases incurred in the fund. A total of nine capital projects are programmed over the five-year program. The budget for the VRF Capital Improvement Program is divided into two categories: Fleet Infrastructure Improvements and Vehicle and Equipment Replacement. Fleet Infrastructure Improvements The Fleet Infrastructure Improve- ments category accounts for the repair or improvement of exist- ing systems or structures. Exam- ples of projects previously funded in this category include fuel management software, die- sel particulate filters required by Bay Area Air Quality Manage- ment District, and new fuel tanks. No projects are recommended in this category for the 2021- 2025 CIP. Recent Accomplishments Awarded 3-year contract for AssetWorks/Verizon GPS monitoring services. Continued evaluation and revision to rates to ensure cost-recovery is being achieved for Compressed Natural Gas (CNG), shop and commercial maintenance and repairs, and parts. Vehicle and Equipment Replacement The Vehicle and Equipment Replacement Category accounts for the purchase, repair, and replacement of vehicles/equipment. Over the projected life of the vehicle/equipment, funds are $2,000,000 $4,000,000 $6,000,000 $8,000,000 FY 2017 Actuals FY 2019 Actuals FY 2021 Proposed FY 2023 Projected FY 2025 Projected Vehicle Fund Capital Expenditures VEHICLE REPLACEMENT FUND VEHICLE REPLACEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 595 collected in the Vehicle Fund from the department/fund that will utilize the asset so funding will be available to replace the asset when its reached the end of its useful life. When a vehicle or piece of equipment is estimated to meet replacement criteria and has been reviewed and approved for replacement by the Fleet Review Committee, it is programmed into the Vehicle and Equipment Replacement CIP that corresponds to the year the useful life of the vehicle/ equipment will expire. Key replacements in the 2021-2025 CIP include four ambulances ($1.3 million); two fire engines ($1.70 million); 19 marked patrol vehicles ($1.30 million); two aerial tree trucks ($0.75 million); one air support unit ($0.5 million); and one wildland unit ($0.6 million). 1 Vehicle classification aligned with recommended study results, shifting budgeted inventory within these categories 2 Budgeted inventory in this category shifted due to restricted availability of fuel types from the manufacturer Infrastructure Inventory TYPE/GROSS VEHICLE WEIGHT (GVW)UNLEADED DIESEL CNG HYBRID ELECTRIC NO ENGINE TRAILER TOTAL Sedans/SUVs 27 -19 10 4 -60 Police marked units 24 -----24 Motorcycles 4 -----4 Scooters 5 ---1 -6 Truck/Van 6k GVW1 68 -----68 Truck/Van 6K-11K GVW2 69 4 19 -3 -95 Trucks 11K-15K GVW1 10 3 ----13 Trucks 15K-26K GVW1 5 13 ----18 Dump Truck 11K GVW1 19 16 ----35 Large Equip: Boom & crane trucks, aerials -15 ----15 Wildland patrol vehicles 3 -----3 Water truck -2 ----2 Fire safety -19 ----19 Sweepers -5 ----5 Backhoe, mowers, tractors, forklifts, rollers, air com- pressors, chippers, trailers1 6 51 --4 58 119 Asphalt rollers, water pumps, spray rigs1 2 7 ---4 13 Generators, ditch witches, cable reelers1 11 41 4 ---56 TOTAL 253 176 42 10 12 62 555 VEHICLE REPLACEMENT FUND 596 VEHICLE REPLACEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Recent Accomplishments Delivered 23 vehicles and 4 pieces of equipment in FY 2020 to maintain safe, reliable, and efficient use of resources. Continued a pilot program to evaluate the performance of Plug-in Hybrid electric pick-up trucks assigned to field operations in all departments. This pilot will provide assistance in evaluating total cost of ownership, maintenance and repair issues, and the operational compatibility for user departments. 20201-2025 Capital Improvement Program Recurring Projects The 2021-2025 CIP includes one recurring project, Emergency Repair and Replacement, provid- ing $100,000 annually, plus salary and benefits for maintenance staff, to repair and/or replace vehicles/equipment that sustain damage due to accidents or unpreventable failure. This project mitigates impact to service delivery that could occur if these vehicles experienced lengthy times out of service. Since the inception of this project in Fiscal Year 2015, it has funded 56 repairs on vehicles/equipment and five replacements. Non-Recurring Projects The 2021-2025 CIP includes eight projects, with $19.5 million allocated for vehicle and equip- ment replacements. All replacements are programmed for vehicles/equipment at the end of their useful life. Criteria for vehicles/equipment replacement include but are not limited to: utili- zation based on mileage or hours of operation, age, maintenance/repair records, and funding availability. As part of the replacement policy, and wherever possible, electric vehicles are con- sidered first, then vehicles that use alternative fuels. Summary of Capital Activity VEHICLE REPLACEMENT FUND Project Number Project Title FY 2019 Actuals FY 2020 Estimate FY 2021 Proposed FY 2022 FY 2023 FY 2024 FY 2025 5-Year Total Use of Funds Vehicle and Equipment Replacement VR-15001 Emergency Repair and Replacement 33,685 67,000 113,000 114,000 114,000 120,000 120,000 581,000 VR-16000 Scheduled Vehicle and Equipment Replacement - Fiscal Year 2016 30,348 0 0 0 0 0 0 0 VR-17000 Scheduled Vehicle and Equipment Replacement - Fiscal Year 2017 405,478 177,000 0 0 0 0 0 0 VR-18000 Scheduled Vehicle and Equipment Replacement - Fiscal Year 2018 1,395,343 627,000 630,000 0 0 0 0 630,000 VR-19000 Scheduled Vehicle and Equipment Replacement - Fiscal Year 2019 1,165,766 1,020,000 1,338,000 0 0 0 0 1,338,000 VR-20000 Scheduled Vehicle and Equipment Replacement - Fiscal Year 2020 0 1,042,000 2,268,000 0 0 0 0 2,268,000 VEHICLE REPLACEMENT FUND VEHICLE REPLACEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 597 VR-21000 Scheduled Vehicle and Equipment Replacement - Fiscal Year 2021 0 0 3,191,000 0 0 0 0 3,191,000 VR-22000 Scheduled Vehicle and Equipment Replacement - Fiscal Year 2022 0 0 0 3,163,000 0 0 0 3,163,000 VR-23000 Scheduled Vehicle and Equipment Replacement - Fiscal Year 2023 0 0 0 0 3,434,000 0 0 3,434,000 VR-24000 Scheduled Vehicle and Equipment Replacement - Fiscal Year 2024 0 0 0 0 0 2,392,000 0 2,392,000 VR-25000 Scheduled Vehicle and Equipment Replacement - Fiscal Year 2025 0 0 0 0 0 0 3,050,000 3,050,000 Vehicle and Equipment Replacement Total 3,030,620 2,933,000 7,540,000 3,277,000 3,548,000 2,512,000 3,170,000 20,047,000 Total Uses 3,030,620 2,933,000 7,540,000 3,277,000 3,548,000 2,512,000 3,170,000 20,047,000 Project Number Project Title FY 2019 Actuals FY 2020 Estimate FY 2021 Proposed FY 2022 FY 2023 FY 2024 FY 2025 5-Year Total VEHICLE REPLACEMENT FUND VEHICLE REPLACEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 599 Vehicle and Equipment Replacement VEHICLE REPLACEMENT FUND 600 VEHICLE REPLACEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Emergency Repair and Replacement Emergency Repair and Replacement Description This project provides funding to replace or repair vehicles/equipment that sustain damage due to accidents or unpreventable failure. Justification Service levels are impacted when critical vehicles/equipment such as utility trucks and police sedans experience lengthy down times. Therefore, when damage or failure occurs, these critical vehicles/equipment need to be replaced or repaired quickly to ensure uninterrupted service. In some cases, reserve vehicles/equipment exist; however, it is unrealistic to have a back-up for each vehicle and piece of equipment in the City. Fund: Vehicle Replacement & Maintenance Fund Category: Vehicle and Equipment Replacement Project Location: 3201 East Bayshore Road Managing Department: Public Works Initial Project Start: Recurring Initial Project Completion: Recurring Project Number: VR-15001 Marked Police & Fire Vehicle, February 2013 Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Vehicle Replacement Fund N/A 113,000 67,000 113,000 114,000 114,000 120,000 120,000 581,000 0 N/A Total N/A 113,000 67,000 113,000 114,000 114,000 120,000 120,000 581,000 0 N/A Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Other N/A 113,000 67,000 113,000 114,000 114,000 120,000 120,000 581,000 0 N/A Total N/A 113,000 67,000 113,000 114,000 114,000 120,000 120,000 581,000 0 N/A VEHICLE REPLACEMENT FUND VEHICLE REPLACEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 601 Operating Impact Costs to operate and maintain the City's fleet are budgeted annually in the Vehicle Replacement Fund and allocated to other City departments based on historical maintenance and repair needs. There are no additional operating impacts anticipated from this project and maintenance will be absorbed within the available maintenance schedule and annual operating budget. Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Air Quality Goal: N-5 Policy: N-5.2 Potential Board/Commission Review: Fleet Review Committee Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. VEHICLE REPLACEMENT FUND 602 VEHICLE REPLACEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Scheduled Vehicle and Equipment Replacement - Fiscal Year 2018 Scheduled Vehicle and Equipment Replacement - Fiscal Year 2018 Description This project provides funding for the existing City fleet vehicles and equipment scheduled for replacement in Fiscal Year 2018. Justification The ongoing replacement of City fleet vehicles and equipment is prescribed by the City's policy for vehicle replacement, which includes guidelines based on age, mileage accumulation, and obsolescence. Timely replacement of vehicles lowers maintenance costs, helps to maintain or even increase the productivity of client departments, and allows the City to take advantage of new technology. As part of the policy, staff will first consider electric vehicles and then other alternative fuel vehicles when replacing existing vehicles. Supplemental Information Funding in this project allows for the following replacements: one sedan; five pickups; eight patrol vehicles; three SUVs; six vans; one aerial truck; three wildland trucks; one dump truck; and seven miscellaneous equipment units. Of the 35 vehicles and pieces of equipment, 22 support the operations in the General Fund ($1.7 million) and 13 support the operations of various Enter- prise Funds ($1.5 million). Significant Changes 2021-2025 CIP: All vehicles ordered and one vehicle remaining to be delivered and outfitted. Fund: Vehicle Replacement & Maintenance Fund Category: Vehicle and Equipment Replacement Project Location: 3201 East Bayshore Road Managing Department: Public Works Initial Project Start: Summer 2017 Initial Project Completion: Spring 2019 Revised Project Start: Revised Project Completion: Winter 2020 Project Number: VR-18000 Freightliner with aerial, February 2012 VEHICLE REPLACEMENT FUND VEHICLE REPLACEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 603 2020-2024 CIP: One vehicle deferred to FY 2021; 31 vehicles/equipment ordered, delivered and outfitted; awaiting delivery and outfitting of last two vehicles. 2019-2023 CIP: 10 vehicles/equipment have been delivered; 10 vehicles still to be ordered, 15 vehicles are expected to be delivered by Fall 2018 and outfitting on those 15 should be com- pleted by Winter 2019. One vehicle moved to VR-19000. 2018-2022 CIP: Current backlog is being addressed. A generator and forklift were taken off the list for this year and five other vehicles were added instead due to maintenance exceeding the surplus value for each vehicle. Operating Impact Costs to operate and maintain the City's fleet are budgeted annually in the Vehicle Replacement Fund and allocated to other City departments based on historical maintenance and repair needs. There are no additional operating impacts anticipated from this project and maintenance will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Vehicle Replacement Fund 2,076,114 1,338,856 627,000 630,000 0 0 0 0 630,000 0 3,333,114 Total 2,076,114 1,338,856 627,000 630,000 0 0 0 0 630,000 0 3,333,114 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Other 2,076,087 1,338,856 627,000 630,000 0 0 0 0 630,000 0 3,333,087 Total 2,076,087 1,338,856 627,000 630,000 0 0 0 0 630,000 0 3,333,087 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Air Quality Goal: N-5 Policy: N-5.2 Potential Board/Commission Review: Fleet Review Committee Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. VEHICLE REPLACEMENT FUND 604 VEHICLE REPLACEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Scheduled Vehicle and Equipment Replacement - Fiscal Year 2019 Scheduled Vehicle and Equipment Replacement - Fiscal Year 2019 Description This project provides funding for the existing City fleet vehicles and equipment scheduled for replacement in Fiscal Year 2019. Justification The ongoing replacement of City fleet vehicles and equipment is prescribed by the City's policy for vehicle replacement, which includes guidelines based on age, mileage accumulation, and obsolescence. Timely replacement of vehicles lowers maintenance costs, helps to maintain or even increase the productivity of client departments, and allows the City to take advantage of new technology. As part of the policy, staff will first consider electric vehicles and then other alternative fuel vehicles when replacing existing vehicles. Supplemental Information Funding in this project allows for the following replacements: two ambulances; two Compressed Natural Gas (CNG) sedans; eight CNG pickups; eight gasoline pickups; seven patrol vehicles; two SUVs; two dump trucks; one patch truck; seven miscellaneous equipment units; and two sweepers. Of the 41 vehicles and pieces of equipment, 23 support the operations in the General Fund ($2.1 million) and 18 support the operations of various Enterprise Funds ($1.3 million). Significant Changes 2021-2025 CIP: Two vehicles to be ordered; six vehicles to be delivered and outfitted; and one vehicle moved to FY 2022. Fund: Vehicle Replacement & Maintenance Fund Category: Vehicle and Equipment Replacement Project Location: 3201 East Bayshore Road Managing Department: Public Works Initial Project Start: Summer 2018 Initial Project Completion: Spring 2020 Revised Project Start: Revised Project Completion: Spring 2021 Project Number: VR-19000 Ambulance, January 2011 VEHICLE REPLACEMENT FUND VEHICLE REPLACEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 605 2020-2024 CIP: 36 vehicles/equipment were ordered, leaving a remaining five to be ordered; 14 vehicles/equipment were delivered and outfitted, leaving a remaining 27 to be delivered and outfitted. Project completion date extended to FY 2021. 2019-2023 CIP: Five trailers were deferred to a future year and nine vehicles were added to the list, including one forklift, one grappler, one marked Interceptor, one GMC Terrain Code 3, one F- 250, two F-150s, and two sweepers. General Fund increased by $0.2 million. Enterprise Funds increased by $0.4 million. There was shift in vehicle fuel type due to restricted availability from manufactures on inventory for the 8 CNG F-150 pickups, and therefore they will be replaced with regular fueled pickups. 2018-2022 CIP: One patrol vehicle was removed from the Fiscal Year 2019 replacement list. Operating Impact Costs to operate and maintain the City's fleet are budgeted annually in the Vehicle Replacement Fund and allocated to other City departments based on historical maintenance and repair needs. There are no additional operating impacts anticipated from this project and maintenance will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Vehicle Replacement Fund 1,165,766 2,512,069 1,020,000 1,338,000 0 0 0 0 1,338,000 0 3,523,766 Total 1,165,766 2,512,069 1,020,000 1,338,000 0 0 0 0 1,338,000 0 3,523,766 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Other 1,165,744 2,512,069 1,020,000 1,338,000 0 0 0 0 1,338,000 0 3,523,744 Total 1,165,744 2,512,069 1,020,000 1,338,000 0 0 0 0 1,338,000 0 3,523,744 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Air Quality Goal: N-5 Policy: N-5.2 Potential Board/Commission Review: Fleet Review Committee Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. VEHICLE REPLACEMENT FUND 606 VEHICLE REPLACEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Scheduled Vehicle and Equipment Replacement - Fiscal Year 2020 Scheduled Vehicle and Equipment Replacement - Fiscal Year 2020 Description This project provides funding for the existing City fleet vehicles and equipment scheduled for replacement in Fiscal Year 2020. Justification The ongoing replacement of City fleet vehicles and equipment is prescribed by the City's policy for vehicle replacement, which includes guidelines based on age, mileage accumulation, and obsolescence. Timely replacement of vehicles lowers maintenance costs, helps to maintain or even increase the productivity of client departments, and allows the City to take advantage of new technology. As part of the policy, staff will first consider electric vehicles and then other alternative fuel vehicles when replacing existing vehicles. Supplemental Information Funding in this project allows for the following replacements: five sedans; one motorcycle; one marked patrol vehicle; 18 pickups; two vans; two dump trucks; one aerial truck; seven miscella- neous equipment units. Of the 37 vehicles and pieces of equipment, 25 support the operations in the General Fund ($1.5 million) and 12 support the operations of various Enterprise Funds ($1.8 million). Significant Changes 2021-2025 CIP: Seven vehicles to be ordered; twenty-six vehicles to be delivered and outfitted; and one vehicle removed from list. Fund: Vehicle Replacement & Maintenance Fund Category: Vehicle and Equipment Replacement Project Location: 3201 East Bayshore Road Managing Department: Public Works Initial Project Start: Summer 2019 Initial Project Completion: Spring 2021 Revised Project Start: Revised Project Completion: Project Number: VR-20000 Isuzu cab chasis with custom utility body, February 2014 VEHICLE REPLACEMENT FUND VEHICLE REPLACEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 607 2020-2024 CIP: The replacement list is reviewed each year and changes are tracked but not finalized until the year preceding replacement. Changes in the FY 2020 list include the addition of six vehicles and the removal of 12 vehicles, bringing the total number of vehicles and pieces of equipment to be replaced to 37 and an overall funding increase of $31,000. 2019-2023 CIP: Five vehicles/pieces of equipment were removed including two sedans, one van, one generator, and one mower; while three were added including one F-150 and two F- 350s with utility bodies. General Fund reduced by $0.3 million. Enterprise funds increased by $0.2 million. Operating Impact Costs to operate and maintain the City's fleet are budgeted annually in the Vehicle Replacement Fund and allocated to other City departments based on historical maintenance and repair needs. There are no additional operating impacts anticipated from this project and maintenance will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Vehicle Replacement Fund 0 3,469,000 1,042,000 2,268,000 0 0 0 0 2,268,000 0 3,310,000 Total 0 3,469,000 1,042,000 2,268,000 0 0 0 0 2,268,000 0 3,310,000 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Other 0 3,469,000 1,042,000 2,268,000 0 0 0 0 2,268,000 0 3,310,000 Total 0 3,469,000 1,042,000 2,268,000 0 0 0 0 2,268,000 0 3,310,000 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Air Quality Goal: N-5 Policy: N-5.2 Potential Board/Commission Review: Fleet Review Committee Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. VEHICLE REPLACEMENT FUND 608 VEHICLE REPLACEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Scheduled Vehicle and Equipment Replacement - Fiscal Year 2021 Scheduled Vehicle and Equipment Replacement - Fiscal Year 2021 Description This project provides funding for the existing City fleet vehicles and equipment scheduled for replacement in Fiscal Year 2021. Justification The ongoing replacement of City fleet vehicles and equipment is prescribed by the City's policy for vehicle replacement, which includes guidelines based on age, mileage accumulation, and obsolescence. Timely replacement of vehicles lowers maintenance costs, helps to maintain or even increase the productivity of client departments, and allows the City to take advantage of new technology. As part of the policy, staff will first consider electric vehicles and then other alternative fuel vehicles when replacing existing vehicles. Supplemental Information Funding in this project will allow for the replacement of 34 vehicles and pieces of equipment scheduled for replacement in Fiscal Year 2021. Of those vehicles, 22 support the operations of the General Fund ($1.7 million) and 12 support the operations of various Enterprise Funds ($1.5 million). Significant Changes 2020-2024 CIP: The replacement list is reviewed each year and changes are tracked but not finalized until the year preceding replacement. Changes in the FY 2021 list include the addition Fund: Vehicle Replacement & Maintenance Fund Category: Vehicle and Equipment Replacement Project Location: 3201 East Bayshore Road Managing Department: Public Works Initial Project Start: Summer 2020 Initial Project Completion: Spring 2022 Revised Project Start: Revised Project Completion: Project Number: VR-21000 Ford F-550 Saw Truck, March 2019 VEHICLE REPLACEMENT FUND VEHICLE REPLACEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 609 of four vehicles and the removal of eight vehicles, bringing the total number of vehicles and pieces of equipment to be replaced to 34. Operating Impact Costs to operate and maintain the City's fleet are budgeted annually in the Vehicle Replacement Fund and allocated to other City departments based on historical maintenance and repair needs. There are no additional operating impacts anticipated from this project and maintenance will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Vehicle Replacement Fund 0 0 0 3,191,000 0 0 0 0 3,191,000 0 3,191,000 Total 0 0 0 3,191,000 0 0 0 0 3,191,000 0 3,191,000 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Other 0 0 0 3,191,000 0 0 0 0 3,191,000 0 3,191,000 Total 0 0 0 3,191,000 0 0 0 0 3,191,000 0 3,191,000 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Air Quality Goal: N-5 Policy: N-5.2 Potential Board/Commission Review: Fleet Review Committee Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. VEHICLE REPLACEMENT FUND 610 VEHICLE REPLACEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Scheduled Vehicle and Equipment Replacement - Fiscal Year 2022 Scheduled Vehicle and Equipment Replacement - Fiscal Year 2022 Description This project provides funding for the existing City fleet vehicles and equipment scheduled for replacement in Fiscal Year 2022. Justification The ongoing replacement of City fleet vehicles and equipment is prescribed by the City's policy for vehicle replacement, which includes guidelines based on age, mileage accumulation, and obsolescence. Timely replacement of vehicles lowers maintenance costs, helps to maintain or even increase the productivity of client departments, and allows the City to take advantage of new technology. As part of the policy, staff will first consider electric vehicles and then other alternative fuel vehicles when replacing existing vehicles. Supplemental Information Funding in this project will allow for the replacement of 43 vehicles and pieces of equipment scheduled for replacement in Fiscal Year 2022. Of those vehicles, 25 support the operations of the General Fund ($1.8 million) and 18 support the operations of various Enterprise Funds ($1.4 million). The replacement list is reviewed each year and changes are tracked but not finalized until the year preceding replacement. Fund: Vehicle Replacement & Maintenance Fund Category: Vehicle and Equipment Replacement Project Location: 3201 East Bayshore Road Managing Department: Public Works Initial Project Start: Summer 2021 Initial Project Completion: Spring 2023 Revised Project Start: Revised Project Completion: Project Number: VR-22000 Pierce Heavy Rescue Unit, February 2012 VEHICLE REPLACEMENT FUND VEHICLE REPLACEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 611 Significant Changes 2020-2024 CIP: Changes in the FY 2022 list include the addition of 11 vehicles and the removal of seven vehicles, bringing the total number of vehicles and pieces of equipment to be replaced to 43. Operating Impact Costs to operate and maintain the City's fleet are budgeted annually in the Vehicle Replacement Fund and allocated to other City departments based on historical maintenance and repair needs. There are no additional operating impacts anticipated from this project and maintenance will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Vehicle Replacement Fund 0 0 0 0 3,163,000 0 0 0 3,163,000 0 3,163,000 Total 0 0 0 0 3,163,000 0 0 0 3,163,000 0 3,163,000 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Other 0 0 0 0 3,163,000 0 0 0 3,163,000 0 3,163,000 Total 0 0 0 0 3,163,000 0 0 0 3,163,000 0 3,163,000 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Air Quality Goal: N-5 Policy: N-5.2 Potential Board/Commission Review: Fleet Review Committee Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. VEHICLE REPLACEMENT FUND 612 VEHICLE REPLACEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Scheduled Vehicle and Equipment Replacement - Fiscal Year 2023 Scheduled Vehicle and Equipment Replacement - Fiscal Year 2023 Description This project provides funding for the existing City fleet vehicles and equipment scheduled for replacement in Fiscal Year 2023. Justification The ongoing replacement of City fleet vehicles and equipment is prescribed by the City's policy for vehicle replacement, which includes guidelines based on age, mileage accumulation, and obsolescence. Timely replacement of vehicles lowers maintenance costs, helps to maintain or even increase the productivity of client departments, and allows the City to take advantage of new technology. As part of the policy, staff will first consider electric vehicles and then other alternative fuel vehicles when replacing existing vehicles. Supplemental Information Funding in this project will allow for the replacement of 30 vehicles and pieces of equipment scheduled for replacement in Fiscal Year 2023. Of those vehicles, 22 support the operations of the General Fund ($2.8 million) and eight support the operations of various Enterprise Funds ($0.6 million). The replacement list is reviewed each year and changes are tracked but not finalized until the year preceding replacement. Fund: Vehicle Replacement & Maintenance Fund Category: Vehicle and Equipment Replacement Project Location: 3201 East Bayshore Road Managing Department: Public Works Initial Project Start: Summer 2022 Initial Project Completion: Spring 2024 Revised Project Start: Revised Project Completion: Project Number: VR-23000 Peterbilt Dump Truck, March 2018 VEHICLE REPLACEMENT FUND VEHICLE REPLACEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 613 Operating Impact Costs to operate and maintain the City's fleet are budgeted annually in the Vehicle Replacement Fund and allocated to other City departments based on historical maintenance and repair needs. There are no additional operating impacts anticipated from this project and maintenance will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Vehicle Replacement Fund 0 0 0 0 0 3,434,000 0 0 3,434,000 0 3,434,000 Total 0 0 0 0 0 3,434,000 0 0 3,434,000 0 3,434,000 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Other 0 0 0 0 0 3,434,000 0 0 3,434,000 0 3,434,000 Total 0 0 0 0 0 3,434,000 0 0 3,434,000 0 3,434,000 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Air Quality Goal: N-5 Policy: N-5.2 Potential Board/Commission Review: Fleet Review Committee Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. VEHICLE REPLACEMENT FUND 614 VEHICLE REPLACEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Scheduled Vehicle and Equipment Replacement - Fiscal Year 2024 Scheduled Vehicle and Equipment Replacement - Fiscal Year 2024 Description This project provides funding for the existing City fleet vehicles and equipment scheduled for replacement in Fiscal Year 2024. Justification The ongoing replacement of City fleet vehicles and equipment is prescribed by the City's policy for vehicle replacement, which includes guidelines based on age, mileage accumulation, and obsolescence. Timely replacement of vehicles lowers maintenance costs, helps to maintain or even increase the productivity of client departments, and allows the City to take advantage of new technology. As part of the policy, staff will first consider electric vehicles and then other alternative fuel vehicles when replacing existing vehicles. Supplemental Information Funding in this project will allow for the replacement of 12 vehicles and pieces of equipment scheduled for replacement in Fiscal Year 2024. Of those vehicles, nine support the operations of the General Fund ($2.1 million) and three support the operations of various Enterprise Funds ($0.3 million). The replacement list is reviewed each year and changes are tracked but not finalized until the year preceding replacement. Fund: Vehicle Replacement & Maintenance Fund Category: Vehicle and Equipment Replacement Project Location: Managing Department: Public Works Initial Project Start: Summer 2023 Initial Project Completion: Spring 2024 Revised Project Start: Revised Project Completion: Project Number: VR-24000 Freightliner FL-70 Aerial, March 2019 VEHICLE REPLACEMENT FUND VEHICLE REPLACEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 615 Operating Impact Costs to operate and maintain the City's fleet are budgeted annually in the Vehicle Replacement Fund and allocated to other City departments based on historical maintenance and repair needs. There are no additional operating impacts anticipated from this project and maintenance will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Vehicle Replacement Fund 0 0 0 0 0 0 2,392,000 0 2,392,000 0 2,392,000 Total 0 0 0 0 0 0 2,392,000 0 2,392,000 0 2,392,000 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Other 0 0 0 0 0 0 2,392,000 0 2,392,000 0 2,392,000 Total 0 0 0 0 0 0 2,392,000 0 2,392,000 0 2,392,000 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Air Quality Goal: N-5 Policy: N-5.2 Potential Board/Commission Review: Fleet Review Committee Planning and Transportation Commission Environmental Impact Analysis: This project is expected to have a possible exemption from CEQA under Section 15301. VEHICLE REPLACEMENT FUND 616 VEHICLE REPLACEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Scheduled Vehicle and Equipment Replacement - Fiscal Year 2025 Scheduled Vehicle and Equipment Replacement - Fiscal Year 2025 Description This project provides funding for the existing City fleet vehicles and equipment scheduled for replacement in Fiscal Year 2025. Justification The ongoing replacement of City fleet vehicles and equipment is prescribed by the City's policy for vehicle replacement, which includes guidelines based on age, mileage accumulation, and obsolescence. Timely replacement of vehicles lowers maintenance costs, helps to maintain or even increase the productivity of client departments, and allows the City to take advantage of new technology. As part of the policy, staff will first consider electric vehicles and then other alternative fuel vehicles when replacing existing vehicles. Supplemental Information Funding in this project will allow for the replacement of 30 vehicles and pieces of equipment scheduled for replacement in Fiscal Year 2025. Of those vehicles, twenty-one support the oper- ations of the General Fund ($2.0 million) and nine support the operations of various Enterprise Funds ($1.0 million). The replacement list is reviewed each year and changes are tracked but not finalized until the year preceding replacement. Fund: Vehicle Replacement & Maintenance Fund Category: Vehicle and Equipment Replacement Project Location: Managing Department: Public Works Initial Project Start: Summer 2024 Initial Project Completion: Spring 2026 Revised Project Start: Revised Project Completion: Project Number: VR-25000 Isuzu NPR with Utility Body VEHICLE REPLACEMENT FUND VEHICLE REPLACEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 617 Operating Impact Costs to operate and maintain the City's fleet are budgeted annually in the Vehicle Replacement Fund and allocated to other City departments based on historical maintenance and repair needs. There are no additional operating impacts anticipated from this project and maintenance will be absorbed within the available maintenance schedule and annual operating budget. Funding Sources Schedule Funding Source Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Vehicle Replacement Fund 0 0 0 0 0 0 0 3,050,000 3,050,000 0 3,050,000 Total 0 0 0 0 0 0 0 3,050,000 3,050,000 0 3,050,000 Expenditure Schedule Project Phase Prior Years FY 2020 Budget FY 2020 Est.FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 5 Year CIP Total Beyond 5 Year CIP Total Other 0 0 0 0 0 0 0 3,050,000 3,050,000 0 3,050,000 Total 0 0 0 0 0 0 0 3,050,000 3,050,000 0 3,050,000 Relationship to Comprehensive Plan Primary Connection Element: Natural Environment Section: Air Quality Goal: N-5 Policy: N-5.2 Potential Board/Commission Review: Fleet Review Committee Environmental Impact Analysis: Not Applicable CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 619 SUPPLEMENTAL INFORMATION Supplemental Information GLOSSARY GLOSSARY • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 621 GLOSSARYGlossary Key Budget Terms Accrual Accounting: A method of accounting that recognizes expenses when incurred and revenues when earned rather than when payment is made or received Adopted Budget: The budget that is approved and enacted by the City Council annually on before June 30th. Appropriation: The allocation of an expense budget for a particular project or program usually for a spe- cific period of time. Balanced Budget: A balanced budget exists when total revenues are equal to, or greater than, total expenses. Bond: A debt investment in which an investor loans money to an entity (governmental or otherwise) that borrows the money for a defined period of time at a fixed interest rate to pay for a variety of projects. Budget Stabilization Reserve (BSR): The BSR was established as a prudent measure to maintain the City’s fiscal stability in the event that unanticipated events reduce revenue or create obligations that significantly impact the current-year budget. Examples of such events include a downturn in the economy, a natural disaster or actions that may be taken by another governmental agency that reduce revenues and/or increase expenses for the City. Capital Budget: A plan of proposed capital outlays and the means of financing them for the current fiscal period. In a two-year budget, the second year of the Capital Improvement Program is adopted-in-concept. Capital Improvement Program (CIP): The City’s plan for current and future projects related to the acquisi- tion, expansion, or rehabilitation of buildings, equipment, parks, streets, and other public infrastructure. Capital Projects Fund: A fund created to account for all resources to be used for the construction or acquisition of designated fixed assets by a governmental unit except those financed by proprietary or fidu- ciary funds. City Manager’s Report (CMR): Staff reports for City Council meetings as well as boards and commissions that are prepared by City staff and submitted through the City Manager’s Office. Comprehensive Plan: The Palo Alto Comprehensive Plan contains the City's official policies on land use and community design; transportation; natural environment; safety; community services and facilities; and business and economics. Its focus is on the physical form of the City and is applicable to both public and private properties. The Budget integrates the 2030 Comprehensive Plan into the budget process. GLOSSARY 622 GLOSSARY • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Cost Accounting: The branch of accounting that provides for the assembling and recording of all the ele- ments of cost incurred to accomplish a purpose, carry on an activity or operation, or complete a unit of work or a specific job. Enterprise Funds: Funds used to account for services that are provided to the public on a user charge basis, similar to the operation of a commercial business. The City’s enterprise funds include the gas, elec- tric, water, fiber optics and wastewater collection and treatment funds. Fiduciary Fund: A fund used to account for assets held by the City acting in a fiduciary capacity for other individuals or entities. These funds are operated to carry out the specific actions required by the trust agreements, ordinances and other governing regulations. Fiscal Agent: A bank or other corporate fiduciary that performs the function of paying, on behalf of the governmental unit, or other debtor, interest on debt or principal of debt when due. Fiscal Year: A 12-month period of time to which the annual budget applies and at the end of which a gov- ernmental unit determines its financial position and the results of operations. Palo Alto’s fiscal year begins on July 1st and ends on June 30th. Fixed Assets: Assets such as land, structures and improvements, furniture and/or equipment that are expected to last and/or be used for more than one year. Full-Time Equivalent (FTE): Used to quantify staffing hours for permanent and temporary employees. A 1.00 FTE employee works full time; a 0.50 FTE employee works half-time. Fund Balance: An excess of the assets of a fund over its liabilities. General Fund: The primary fund used to account for the City’s general purpose revenues such as sales, property, utility users and transient occupancy taxes. General Fund revenues typically pay for citywide ser- vices such as public safety, community development, recreation, libraries and parks. The General Fund is distinguished from Special Funds in that the latter are used to account for revenues that have restricted uses (e.g. gas tax funds that must be used for street maintenance or repair). Governmental Funds: A generic classification used to refer to all funds other than proprietary and fidu- ciary funds. Governmental funds include the general fund, capital fund, special revenue funds and debt service funds. Infrastructure Assets: Roads, bridges, curbs and gutters, streets, sidewalks, drainage systems, and lighting systems installed for the common good. Infrastructure Management Plan (IMP): A portion of the General Fund capital improvement program which focuses on rehabilitating the City's infrastructure. In 1998-99, an outside consultant on the City's infrastructure prepared a report known as the Adamson report. Within this report the City's infrastructure was cataloged and ranked based on when the infrastructure needed to be upgraded or replaced and the cost for each item. At that time, the City Council decided to establish a plan using the Adamson report as a guide for both timeline and cost. GLOSSARY GLOSSARY • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 623 Internal Service Funds: These funds provide services to City departments and recover their costs through user charges. For example the Vehicle Replacement Fund is an Internal Service Fund managing the replacement and maintenance of the City fleet. Method of Accounting: The City's General Fund budget is developed using a modified accrual basis of accounting, with revenues being recorded when measurable and available, and expenditures recorded when the liability is incurred. Enterprise Funds and Internal Service Funds are budgeted on a generally accepted accounting principles (GAAP) basis, which for Proprietary Funds is on a full accrual accounting basis. Operating Transfer: Amounts transferred between funds, not considered a revenue or expense. For exam- ple, legally authorized transfers from a fund receiving revenue to the fund through which the resources are to be expended. Pay-As-You-Go-Basis: A term used to describe the financial policy of a governmental unit that finances all of its capital outlays from current revenues rather than by borrowing. Proposed Budget: The proposed budget is the preliminary version of the budget that is sent to the Finance Committee and City Council by the City Manager. The proposed budget is reviewed by the Finance Committee and the City Council, updated with any changes, and then adopted by the City Council prior to the beginning of the next fiscal year. Proprietary Funds: A generic classification used to refer to all funds other than governmental funds or fiduciary funds. Proprietary funds include internal service funds and enterprise funds. Reimbursements: Inter-fund transactions that constitute reimbursements to a fund for expenditures or expenses initially made from it but that properly apply to another fund. For example, the Enterprise Funds reimburse the Technology Fund for CIP projects from which the Enterprise Funds benefit. Reserve: Represents the portion of fund balance set aside for financing future financing needs and addressing one-time emergency or unanticipated events. Revenues: Revenues include compensation received by the project for specific services to the public (external revenues), as well as revenues received from other funds (internal revenues). Special Revenue Funds: These funds account for the proceeds derived from specific revenue sources that are legally restricted to expenditures for specified purposes. The Street Improvement Fund (SIF) is a Spe- cial Revenue Fund that derives its funding from state gas tax revenues. Capital appropriations from the SIF must be spent on the construction and maintenance of the road network system of the City. PROJECT NAME INDEX PROJECT NAME INDEX • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 625 PROJECT NAME INDEX Project Name Index Numerics 230 kV Electric Intertie . . . . . . . . . . . . . . . . 338 A Advanced Water Purification Facility . . . 504 Airfield Electrical Improvements . . . . . . . . 310 Airport Apron Reconstruction . . . . . . . . . . .312 Airport Layout Plan . . . . . . . . . . . . . . . . . . . 320 Americans With Disabilities Act Compliance . 74 Animal Shelter Renovation . . . . . . . . . . . . . . 76 Art In Public Spaces . . . . . . . . . . . . . . . . . . .146 Athletic Courts Resurfacing . . . . . . . . . . . . .148 Automated External Defibrillator Replacement . . . . . . . . . . . . . . . . . . . . . . .136 Automated Weather Observation System (AWOS) . . . . . . . . . . . . . . . . . . . . . . . . . . . 322 B Baylands Athletic Center 10.5 Acre Expansion Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150 Baylands Boardwalk Improvements . . . . . . 78 Baylands Comprehensive Conservation Plan . 152 Baylands Flood Protection Levee Improvements . . . . . . . . . . . . . . . . . . . . . . 80 Baylands Levee Repair for Public Safety Access . . . . . . . . . . . . . . . . . . . . . . . . . . . . .154 Benches, Signage, Walkways, Perimeter Landscaping, and Site Amenities . . . . .156 Bicycle and Pedestrian Transportation Plan Implementation . . . . . . . . . . . . . . . . . . . . 242 Bol Park Improvements . . . . . . . . . . . . . . . . .158 Boulware Park Improvements . . . . . . . . . . 160 Building Systems Improvements . . . . . . . . . 82 Byxbee Park Completion . . . . . . . . . . . . . . .162 C Cameron Park Improvements . . . . . . . . . . .164 Capacitor Bank Installation . . . . . . . . . . . . 340 Capital Improvement Fund Administration . . 282 Charleston/Arastradero Corridor Project .244 Churchill Avenue Enhanced Bikeway . . . .248 Churchill Avenue/Alma Street Railroad Crossing Safety Improvements . . . . . . .250 City Bridge Improvements . . . . . . . . . . . . . 216 City Council Chambers Upgrade . . . . . . . .570 City Facilities Assessment and Record Plan Management System . . . . . . . . . . . . . . . .86 City Facility Parking Lot Maintenance . . . .88 City Hall Space Planning . . . . . . . . . . . . . . . .90 Civic Center Electrical Upgrade & EV Charger Installation . . . . . . . . . . . . . . . . . . . . . . . . . . 92 Civic Center Fire Life Safety Upgrades . . .94 Civic Center Waterproofing Study and Repairs . . . . . . . . . . . . . . . . . . . . . . . . . . . . .96 Coleridge/Cowper/Tennyson 4/12kV Conversion . . . . . . . . . . . . . . . . . . . . . . . .342 Colorado Power Station Equipment Upgrades . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .344 Colorado Substation Site Improvements .346 Colorado/Hopkins System Improvement .348 Communications System Improvements .350 Corporation Way System Upgrades and Pump Station . . . . . . . . . . . . . . . . . . . . . . . . . . . .454 Cubberley Building Management Systems . . 290 Cubberley Field Restroom . . . . . . . . . . . . .298 Cubberley Repairs . . . . . . . . . . . . . . . . . . . .292 Cubberley Roof Replacements . . . . . . . . .294 Curb and Gutter Repairs . . . . . . . . . . . . . . . 218 D Development Center Blueprint Technology Enhancements . . . . . . . . . . . . . . . . . . . . .586 Dog Park Installation and Renovation . . . 166 Downtown Automated Parking Guidance Systems, Access Controls & Revenue Collection Equip. . . . . . . . . . . . . . . . . . . . 252 E East Meadow Circles 4/12kV Conversion .352 East Meadow Drive System Upgrades . . .456 Edgewood/Wildwood 4kV Tie . . . . . . . . . .354 El Camino Median Landscape Improvements PROJECT NAME INDEX 626 PROJECT NAME INDEX • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 220 El Camino Real Pedestrian Safety and Streetscape Project . . . . . . . . . . . . . . . . 254 Electric Customer Connections . . . . . . . . . 334 Electric System Improvements . . . . . . . . . 356 Electric Utility Geographic Information System . . . . . . . . . . . . . . . . . . . . . . . . . . . 358 Embarcadero Road at El Camino Improvements . . . . . . . . . . . . . . . . . . . . . 256 Emergency Repair and Replacement . . .600 Enterprise Resource Planning Upgrade . . 574 Extrication Tool Replacement . . . . . . . . . . .138 F Facility Interior Finishes Replacement . . . . 98 Fiber Optics Customer Connections . . . . 420 Fiber Optics Network - System Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 414 Fiber Optics Network - System Rebuild . .416 Fire Station 4 Replacement . . . . . . . . . . . . 100 Foothills Park Boronda Lake Dock Replacement . . . . . . . . . . . . . . . . . . . . . . .168 Foothills Park Improvement Project . . . . . .170 Foothills Park, Pearson Arastradero Preserve, and Esther Clark Park Conservation Plan . 172 Foothills Rebuild (Fire Mitigation) . . . . . . 360 G Gas Distribution System Improvements . 442 Gas Equipment and Tools . . . . . . . . . . . . . . 444 Gas Main Replacement - Project 23 . . . . . 434 Gas Main Replacement - Project 24 . . . . . 436 Gas Main Replacement - Project 25 . . . . . 438 Gas Meters and Regulators . . . . . . . . . . . . 446 Gas System, Customer Connections . . . . 430 Golf Course Net and Artificial Turf Replacement . . . . . . . . . . . . . . . . . . . . . . .174 H Headworks Facility Replacement . . . . . . . 506 Heritage Park Site Amenities Replacement . . 176 High and Bryant Street Garages Waterproofing and Repairs . . . . . . . . . .102 Highway 101 Pedestrian/Bicycle Overpass Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . 258 Hoover Park Improvements . . . . . . . . . . . . .178 Hopkins Substation 4/12kV Conversion .364 I Infrastructure Management System . . . . .578 Inter-substation Line Protection Relay . . .366 IT Disaster Recovery Plan . . . . . . . . . . . . . .580 J JMZ Renovation . . . . . . . . . . . . . . . . . . . . . . 104 Johnson Park Renovation . . . . . . . . . . . . . . 180 L Library Automated Material Handling . . . 106 Louis Road System Upgrades . . . . . . . . . .458 M Magical Bridge Playground Rubber and Synthetic Turf Resurfacing . . . . . . . . . . 182 Mayfield Reservoir Subgrade and Venting Repair . . . . . . . . . . . . . . . . . . . . . . . . . . . . .528 Mitchell Park Improvements . . . . . . . . . . . . 184 Municipal Service Center A, B, & C Roof Replacement . . . . . . . . . . . . . . . . . . . . . . . 108 Municipal Service Center Lighting, Mechanical, and Electrical Improvements 110 N New Downtown Parking Garage . . . . . . . . .114 New Laboratory And Environmental Services Building . . . . . . . . . . . . . . . . . . . . . . . . . . 500 New Public Safety Building . . . . . . . . . . . . . .118 Newell Road/San Francisquito Creek Bridge Replacement . . . . . . . . . . . . . . . . . . . . . . . 222 O Off-Road Pathway Resurfacing And Repair . 186 Open Space Lakes And Pond Maintenance . . 188 Open Space Trails and Amenities . . . . . . . 190 Outfall Line Construction . . . . . . . . . . . . . .508 P Park and Open Space Emergency Repairs . . 192 Park Restroom Installation . . . . . . . . . . . . . 194 Parking District Implementation . . . . . . . .262 Parking Management and System Implementation . . . . . . . . . . . . . . . . . . . .264 Pearson Arastradero Improvement Project . . 196 PROJECT NAME INDEX PROJECT NAME INDEX • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 627 Pearson Arastradero Preserve Parking Lot Improvement . . . . . . . . . . . . . . . . . . . . . . .198 Peers Park Improvements . . . . . . . . . . . . . 200 Performing Arts Venues Seat Replacement . . 122 Plant Repair, Retrofit, and Equipment Replacement . . . . . . . . . . . . . . . . . . . . . . 510 Police Video Recording Systems Replacement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140 Primary Sedimentation Tank Rehabilitation . . 512 Public Safety Records Management System Replacement . . . . . . . . . . . . . . . . . . . . . . 588 Q Quarry Road Improvements and Transit Center Access . . . . . . . . . . . . . . . . . . . . . 266 R Radio Infrastructure Replacement . . . . . . 582 Railroad Grade Separation and Safety Improvements . . . . . . . . . . . . . . . . . . . . . 270 Rebuild Underground District 15 . . . . . . . . 368 Rebuild Underground District 16 . . . . . . . . 370 Rebuild Underground District 20 . . . . . . . 372 Rebuild Underground District 23 . . . . . . . 374 Rebuild Underground District 26 . . . . . . . 376 Rebuild Underground District 30 . . . . . . . 378 Relocate Quarry/Hopkins Substation 60kV Line (A & B) . . . . . . . . . . . . . . . . . . . . . . . 380 Rinconada Park Improvements . . . . . . . . . 202 Robles Park Improvements . . . . . . . . . . . . 206 Roofing Replacement . . . . . . . . . . . . . . . . . .124 Roth Building Maintenance . . . . . . . . . . . . .126 Runway and Taxiway Reconstruction and Drainage Improvements . . . . . . . . . . . . .316 S Safe Routes To School . . . . . . . . . . . . . . . . 274 SCADA System Upgrades . . . . . . . . . . . . . 382 Scheduled Vehicle and Equipment Replacement - Fiscal Year 2018 . . . . . . 602 Scheduled Vehicle and Equipment Replacement - Fiscal Year 2019 . . . . . .604 Scheduled Vehicle and Equipment Replacement - Fiscal Year 2020 . . . . . 606 Scheduled Vehicle and Equipment Replacement - Fiscal Year 2021 . . . . . . 608 Scheduled Vehicle and Equipment Replacement - Fiscal Year 2022 . . . . . 610 Scheduled Vehicle and Equipment Replacement - Fiscal Year 2023 . . . . . . 612 Scheduled Vehicle and Equipment Replacement - Fiscal Year 2024 . . . . . . 614 Scheduled Vehicle and Equipment Replacement - Fiscal Year 2025 . . . . . . 616 Seale Park Improvements . . . . . . . . . . . . . .208 Secondary Treatment Upgrades . . . . . . . . 514 Self-Contained Breathing Apparatus (SCBA) Air Compressor Replacement . . . . . . . . 142 Sewer Lateral/Manhole Rehabilitation and Replacement . . . . . . . . . . . . . . . . . . . . . . .478 Sewer System, Customer Connections . . .474 Sidewalk Repairs . . . . . . . . . . . . . . . . . . . . . .226 Sign Reflectivity Upgrade . . . . . . . . . . . . . .228 Smart Grid Technology Installation . . . . . .384 Storm Drainage System Replacement And Rehabilitation . . . . . . . . . . . . . . . . . . . . . .466 Street Lights Condition Assessment . . . . .230 Street Lights Improvements . . . . . . . . . . . . 232 Street Maintenance . . . . . . . . . . . . . . . . . . . .234 Substation 60kV Breaker Replacement . .388 Substation Facility Improvements . . . . . . .390 Substation Physical Security . . . . . . . . . . .392 Substation Protection Improvements . . . .394 T Thermoplastic Lane Marking and Striping . . . 238 Traffic Signal and Intelligent Transportation Systems . . . . . . . . . . . . . . . . . . . . . . . . . . .276 Transportation and Parking Improvements . . 278 Turf Management Plan . . . . . . . . . . . . . . . . . 210 U Underground District 42 - Embarcadero Road, Emerson, Middlefield . . . . . . . . . 404 Underground District 43 - Alma/ Embarcadero . . . . . . . . . . . . . . . . . . . . . 406 Underground System Rebuild . . . . . . . . . .396 University Avenue Parking Improvements 128 Utilities Customer Bill System Improvements 590 Utility Site Security Improvements . . . . . .398 V Ventura Buildings Improvements . . . . . . . 130 W Wastewater Collection System Rehabilitation/ Augmentation Project 29 . . . . . . . . . . . 480 PROJECT NAME INDEX 628 PROJECT NAME INDEX • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET Wastewater Collection System Rehabilitation/ Augmentation Project 30 . . . . . . . . . . . 482 Wastewater Collection System Rehabilitation/ Augmentation Project 31 . . . . . . . . . . . . 484 Wastewater Collection System Rehabilitation/ Augmentation Project 32 . . . . . . . . . . . 486 Wastewater General Equipment and Tools . . . 488 Wastewater System Improvements . . . . . 490 Water Distribution System Improvements . . . 530 Water General Equipment/Tools . . . . . . . . 532 Water Main Replacement - Project 27 . . . 552 Water Main Replacement - Project 28 . . . 554 Water Main Replacement - Project 29 . . . 556 Water Main Replacement - Project 30 . . . 558 Water Meters . . . . . . . . . . . . . . . . . . . . . . . . . 534 Water Recycling Facilities . . . . . . . . . . . . . 536 Water Regulation Station Improvements 540 Water Service and Hydrant Replacement 542 Water System Customer Connections . . . 524 Water System Supply Improvements . . . . 544 Water Tank Seismic Upgrade and Rehabilitation . . . . . . . . . . . . . . . . . . . . . . 546 Water, Gas, Wastewater Office Remodel . .132 Water, Gas, Wastewater Utility GIS Data . 548 Werry Park Playground Improvements . . .212 West Bayshore Road Pump Station . . . . . 460 West Bayshore Road Trunk Line Improvements . . . . . . . . . . . . . . . . . . . . . 462 Wood Pole Replacement . . . . . . . . . . . . . .400 PROJECT NUMBER INDEX PROJECT NUMBER INDEX • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 629 PROJECT NUMBER INDEX Project Number Index A AC-18000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .122 AC-18001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104 AC-86017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .146 AP-16000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .312 AP-19000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 322 AP-19001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 310 AP-21000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 320 AP-22000 . . . . . . . . . . . . . . . . . . . . . . . . . . . .316 AS-10000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 282 C CB-16002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 294 CB-17001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 292 CB-17002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 298 CB-19001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 290 E EL-02010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 382 EL-02011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 358 EL-04012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 398 EL-06001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 338 EL-08001 . . . . . . . . . . . . . . . . . . . . . . . . . . . .404 EL-11003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 368 EL-11009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .406 EL-11014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 384 EL-13000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 354 EL-13002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 380 EL-13003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 370 EL-14000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 342 EL-14002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 372 EL-15000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 348 EL-16000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 376 EL-16001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 396 EL-16002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 340 EL-16003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 392 EL-17000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 374 EL-17001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 352 EL-17002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 388 EL-17005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 366 EL-19001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 344 EL-19002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 346 EL-19003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 378 EL-19004 . . . . . . . . . . . . . . . . . . . . . . . . . . . 400 EL-20000 . . . . . . . . . . . . . . . . . . . . . . . . . . . .364 EL-21001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .360 EL-89028 . . . . . . . . . . . . . . . . . . . . . . . . . . . .334 EL-89031 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .350 EL-89038 . . . . . . . . . . . . . . . . . . . . . . . . . . . .394 EL-89044 . . . . . . . . . . . . . . . . . . . . . . . . . . . .390 EL-98003 . . . . . . . . . . . . . . . . . . . . . . . . . . . .356 F FD-20001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142 FD-21000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136 FD-22000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138 FO-10000 . . . . . . . . . . . . . . . . . . . . . . . . . . . .420 FO-10001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 414 FO-16000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 416 G GS-11002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .442 GS-13001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .434 GS-13002 . . . . . . . . . . . . . . . . . . . . . . . . . . . 444 GS-14003 . . . . . . . . . . . . . . . . . . . . . . . . . . . .436 GS-15000 . . . . . . . . . . . . . . . . . . . . . . . . . . . .438 GS-80017 . . . . . . . . . . . . . . . . . . . . . . . . . . . .430 GS-80019 . . . . . . . . . . . . . . . . . . . . . . . . . . . .446 L LB-21000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106 O OS-00001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 190 OS-00002 . . . . . . . . . . . . . . . . . . . . . . . . . . . 188 OS-09001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 186 OS-09002 . . . . . . . . . . . . . . . . . . . . . . . . . . . 154 OS-18000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168 OS-18001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198 P PD-20000 . . . . . . . . . . . . . . . . . . . . . . . . . . . 140 PE-08001 . . . . . . . . . . . . . . . . . . . . . . . . . . . .202 PE-09003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88 PE-11011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .258 PE-12011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 222 PROJECT NUMBER INDEX 630 PROJECT NUMBER INDEX • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET PE-13011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 244 PE-13014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 230 PE-13017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 220 PE-14018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78 PE-15001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118 PE-15007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114 PE-15011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130 PE-15020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96 PE-16000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .158 PE-17005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160 PE-17006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 PE-17010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92 PE-18002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .102 PE-18004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100 PE-18006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .162 PE-18010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .184 PE-18012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .178 PE-18015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206 PE-18016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94 PE-19000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90 PE-19001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .132 PE-19002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 PE-20001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .216 PE-20002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86 PE-21000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .170 PE-21001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .196 PE-21002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180 PE-21003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .182 PE-86070 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 234 PF-00006 . . . . . . . . . . . . . . . . . . . . . . . . . . . .124 PF-01003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82 PF-02022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98 PF-07011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .126 PF-14003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .128 PF-16006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110 PF-17000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108 PF-93009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 PG-06001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .148 PG-06003 . . . . . . . . . . . . . . . . . . . . . . . . . . . .156 PG-09002 . . . . . . . . . . . . . . . . . . . . . . . . . . . .192 PG-14001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200 PG-14002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .164 PG-14003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 208 PG-17000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .152 PG-17001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .172 PG-18000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .174 PG-18001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .166 PG-18002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .210 PG-19000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .194 PG-19001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150 PG-21000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .176 PG-22000 . . . . . . . . . . . . . . . . . . . . . . . . . . . .212 PL-00026 . . . . . . . . . . . . . . . . . . . . . . . . . . . .274 PL-04010 . . . . . . . . . . . . . . . . . . . . . . . . . . . .242 PL-05030 . . . . . . . . . . . . . . . . . . . . . . . . . . . .276 PL-12000 . . . . . . . . . . . . . . . . . . . . . . . . . . . .278 PL-14000 . . . . . . . . . . . . . . . . . . . . . . . . . . . .248 PL-15001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .256 PL-15002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 252 PL-15003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .262 PL-16000 . . . . . . . . . . . . . . . . . . . . . . . . . . . .266 PL-16002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .264 PL-17001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .270 PL-18000 . . . . . . . . . . . . . . . . . . . . . . . . . . . .254 PL-20000 . . . . . . . . . . . . . . . . . . . . . . . . . . . .250 PO-05054 . . . . . . . . . . . . . . . . . . . . . . . . . . . 232 PO-11000 . . . . . . . . . . . . . . . . . . . . . . . . . . . .228 PO-11001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .238 PO-12001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218 PO-89003 . . . . . . . . . . . . . . . . . . . . . . . . . . . .226 S SD-06101 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .466 SD-20000 . . . . . . . . . . . . . . . . . . . . . . . . . . 460 SD-21000 . . . . . . . . . . . . . . . . . . . . . . . . . . . .454 SD-22000 . . . . . . . . . . . . . . . . . . . . . . . . . . . .456 SD-23000 . . . . . . . . . . . . . . . . . . . . . . . . . . . .462 SD-24000 . . . . . . . . . . . . . . . . . . . . . . . . . . . .458 T TE-01012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .580 TE-05000 . . . . . . . . . . . . . . . . . . . . . . . . . . . .582 TE-10001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .590 TE-12001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .586 TE-13004 . . . . . . . . . . . . . . . . . . . . . . . . . . . .578 TE-19000 . . . . . . . . . . . . . . . . . . . . . . . . . . . .574 TE-19001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .570 TE-21000 . . . . . . . . . . . . . . . . . . . . . . . . . . . .588 V VR-15001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 600 VR-18000 . . . . . . . . . . . . . . . . . . . . . . . . . . . .602 VR-19000 . . . . . . . . . . . . . . . . . . . . . . . . . . . 604 VR-20000 . . . . . . . . . . . . . . . . . . . . . . . . . . .606 VR-21000 . . . . . . . . . . . . . . . . . . . . . . . . . . . .608 VR-22000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 610 VR-23000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 612 VR-24000 . . . . . . . . . . . . . . . . . . . . . . . . . . . 614 VR-25000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 616 W WC-13002 . . . . . . . . . . . . . . . . . . . . . . . . . . . .488 WC-15002 . . . . . . . . . . . . . . . . . . . . . . . . . . . 490 PROJECT NUMBER INDEX PROJECT NUMBER INDEX • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 631 WC-16001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 480 WC-17001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 482 WC-19001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 484 WC-20000 . . . . . . . . . . . . . . . . . . . . . . . . . . 486 WC-80020 . . . . . . . . . . . . . . . . . . . . . . . . . . . 474 WC-99013 . . . . . . . . . . . . . . . . . . . . . . . . . . . 478 WQ-14002 . . . . . . . . . . . . . . . . . . . . . . . . . . .500 WQ-14003 . . . . . . . . . . . . . . . . . . . . . . . . . . . .512 WQ-16002 . . . . . . . . . . . . . . . . . . . . . . . . . . . 506 WQ-19000 . . . . . . . . . . . . . . . . . . . . . . . . . . . 508 WQ-19001 . . . . . . . . . . . . . . . . . . . . . . . . . . . .514 WQ-19002 . . . . . . . . . . . . . . . . . . . . . . . . . . . 510 WQ-19003 . . . . . . . . . . . . . . . . . . . . . . . . . . . 504 WS-02014 . . . . . . . . . . . . . . . . . . . . . . . . . . . 548 WS-07000 . . . . . . . . . . . . . . . . . . . . . . . . . . . 540 WS-07001 . . . . . . . . . . . . . . . . . . . . . . . . . . . 536 WS-09000 . . . . . . . . . . . . . . . . . . . . . . . . . . 546 WS-11003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 530 WS-11004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 544 WS-13001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 552 WS-13002 . . . . . . . . . . . . . . . . . . . . . . . . . . . 532 WS-14001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 554 WS-15002 . . . . . . . . . . . . . . . . . . . . . . . . . . . 556 WS-16001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 558 WS-19000 . . . . . . . . . . . . . . . . . . . . . . . . . . . 528 WS-80013 . . . . . . . . . . . . . . . . . . . . . . . . . . . 524 WS-80014 . . . . . . . . . . . . . . . . . . . . . . . . . . . 542 WS-80015 . . . . . . . . . . . . . . . . . . . . . . . . . . . 534 AMERICANS WITH DISABILITIES ACT AMERICANS WITH DISABILITIES ACT • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED CAPITAL BUDGET 633 AMERICANS WITH Americans with Disabilities Act IN COMPLIANCE WITH AMERICANS WITH DISABILITIES ACT (ADA) OF 1990, THIS DOCUMENT MAY BE PROVIDED IN OTHER ACCESSIBLE FORMATS. For information contact: ADA Coordinator City of Palo Alto 285 Hamilton Ave (650) 329-2550 CITY OF PALO ALTO 250 HAMILTON AVENUE, PALO ALTO, CA 94301 P 650.329.2100 W CITYOFPALOALTO.ORG Spanish explorers named the area for the tall, twin-trunked redwood tree they camped beneath in 1769. Palo Alto incorporated in 1894 and the State of California granted its first charter in 1909. The City has long been known for its innovative people and its exploration of ideas that have changed the world. In Palo Alto, our history has always been about the future. PALO ALTO CITY OF PALO ALTO OFFICE OF THE CITY CLERK April 20, 2020 The Honorable City Council Palo Alto, California Update and Discussion Regarding the Spring 2020 Board and Commission Recruitment for Positions on the Human Relations Commission, Public Art Commission, and Utilities Advisory Commission Recommendation Staff is requesting direction from the City Council on how to proceed with the Spring 2020 Board and Commission recruitments. Options for how to proceed have been provided by Staff for Council consideration. Human Relations Commission • Option 1: Continue to pause the recruitment for this Commission to a later date as determined by the City Council. Current members’ terms will roll over until replacements are appointed. • Option 2: Re-open the recruitment for a minimum of 15 days as required by the Municipal Code. Current members’ terms will roll over until replacements are appointed by the City Council. Note: The City has only received 1 application to fill 3 expiring positions on this Commission. Public Art Commission • Option 1: Continue to pause the recruitment for this Commission to a later date as determined by the City Council. Current members’ terms will roll over until replacements are appointed. • Option 2: Re-open recruitment for a minimum of 15 days as required by the Municipal Code. Current members’ terms will roll over until replacements are appointed by the City Council. • Option 3: Proceed with scheduling interviews with current applicants with a goal of appointments by May 31, 2020. Note: The City has received 4 applications to fill 4 expiring positions on this Commission. One incumbent has re-applied. Page 2 Utilities Advisory Commission • Option 1: Proceed with scheduling interviews with current applicants with a goal of appointments by May 31, 2020. • Option 2: Re-appoint the two incumbents who have applied to fill the two expiring positions. This would be an alternative to the interview process. • Option 3: Re-open recruitment for a minimum of 15 days as required by the Municipal Code. Current members’ terms will roll over until replacements are made by the City Council. Note: The City has received 4 applications to fill 2 expiring positions on this Commission. Two incumbents have re-applied. Background and Discussion The Spring 2020 Board and Commission recruitment for positions on the Human Relations Commission, Library Advisory Commission, Public Art Commission, and Utilities Advisory Commission began on February 11, 2020 with an initial application deadline of March 31, 2020 at 4:30 P.M. At the February 24, 2020 City Council meeting, City Council directed Staff to disband the Library Advisory Commission. The recruitment for positions on the Library Advisory Commission was closed on February 25, 2020. No applications were received, and no action is required for this Commission at this time. The City proceeded with recruitment for the following positions: • Three positions on the Human Relations Commission, with two positions with terms ending May 31, 2023, and one position filling a vacancy with an unexpired term ending May 31, 2021 • Four positions on the Public Art Commission, with terms ending on May 31, 2023 • Two positions on the Utilities Advisory Commission, with terms ending May 31, 2023 Due to the COVID-19 health emergency and shelter-in-place order, Staff made the decision on March 23, 2020 to temporarily pause the recruitment for the Human Relations Commission and the Public Art Commission. Since the Utilities Advisory Commission has a higher level of decision-making authority, the recruitment for those positions was left open with an extended application deadline of April 7, 2020 at 4:30 P.M. Terms for all open positions on these Boards and Commissions expire May 31, 2020. It is important to note members with terms ending May 31 will automatically roll over until a replacement is appointed by the City Council. Page 3 Here is a summary of applications received to date: Human Relations Commission (3 positions) 1. David Morales Public Art Commission (4 positions) 1. Djibril Drame 2. Shannon Rose McEntee 3. Katherine Talbot 4. Nia Taylor (Incumbent) Utilities Advisory Commission (2 positions) 1. Claude Ezran 2. Lisa Forssell (Incumbent) 3. Phil Metz 4. Lauren Segal (Incumbent) Staff believes the recruitments for the Human Relations Commission and Public Art Commission should be reopened with a new 15-day recruitment period. However, we are looking for further direction from the City Council on how to proceed with the Spring 2020 Board and Commission recruitments. Department Head: Beth Minor, City Clerk Page 4 CITY OF PALO ALTO OFFICE OF THE CITY CLERK April 20, 2020 The Honorable City Council Attention: Finance Committee Palo Alto, California Approval of Action Minutes for the April 6, 2020 Council Meeting Staff is requesting Council review and approve the attached Action Minutes. ATTACHMENTS: • Attachment A: 4-6-20 DRAFT Action Minutes (PDF) Department Head: Beth Minor, City Clerk Page 2 CITY OF PALO ALTO CITY COUNCIL DRAFT ACTION MINUTES Page 1 of 4 Regular Meeting April 6, 2020 The City Council of the City of Palo Alto met on this date by virtual teleconference at 6:04 P.M. Participating Remotely: Cormack, DuBois, Filseth, Fine, Kniss, Kou, Tanaka Absent: Special Action Item 1. Update and Discussion of the COVID-19 Health Emergency and the City's Response. MOTION: Council Member Filseth moved, seconded by Council Member Kniss to agendize the discussion about workforce leave policy for April 13, 2020. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “Extend the paid administrative leave to cover COVID-related loss of hours (Option A) until the end of June 2020.” (New Part A) INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “Include a cost analysis of Option A.” (New Part B) MOTION AS AMENDED RESTATED: Council Member Filseth moved, seconded by Council Member Kniss to agendize the discussion about workforce leave policy for the April 13, 2020 Agenda; and: A. Extend the paid administrative leave to cover COVID-related loss of hours (Option A) until the end of June 2020; and B. Include a cost analysis of Option A. MOTION AS AMENDED PASSED: 7-0 Council took a break at 8:30 P.M. and returned at 8:42 P.M. DRAFT ACTION MINUTES Page 2 of 4 City Council Meeting Draft Action Minutes: 04/06/2020 MOTION: Council Member Tanaka moved, seconded by Vice Mayor Dubois to look at Mountain View’s program for small businesses and direct Staff to create a proposal that could work for Palo Alto. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the motion, “Direct the City Manager to create a roundtable for businesses and non-profits.” (New Part B) INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, Part A, “and other Santa Clara County cities.” AMENDMENT: Council Member Cormack moved, seconded by Mayor Fine to change the Motion, Part A to state, “Direct Staff to create proposals to support small businesses in Palo Alto, which could include utility bill relief, considering Mountain View and other jurisdiction’s programs; and” AMENDMENT PASSED: 7-0 AMENDMENT: Council Member Tanaka moved, seconded by Council Member XX to explore utility bill relief for residents. AMENDMENT WITHDRAWN BY THE MAKER MOTION AS AMENDED RESTATED: Council Member Tanaka moved, seconded by Vice Mayor DuBois to: A. Direct Staff to create proposals to support small businesses in Palo Alto, which could include utility bill relief, considering Mountain View and other jurisdiction’s programs; and B. Direct the City Manager to create a roundtable for businesses. MOTION AS AMENDED PASSED: 7-0 MOTION: Mayor Fine moved, seconded by Vice Mayor DuBois to bring the Fiscal Year 2021 budget to the full Council for development and analysis. MOTION PASSED: 7-0 MOTION: Vice Mayor DuBois moved, seconded by Mayor Fine to direct Staff to agendize a discussion on rental assistance for low income housing and return to Council within two months. MOTION PASSED: 7-0 DRAFT ACTION MINUTES Page 3 of 4 City Council Meeting Draft Action Minutes: 04/06/2020 Minutes Approval 2. Approval of Action Minutes for the March 16, 2020 Palo Alto Public Improvement Corporation Meeting and the March 16 and March 23, 2020 Council Meetings. MOTION: Vice Mayor Dubois moved, seconded by Mayor Fine to approve the Action Minutes for the March 16, 2020 Palo Alto Public Improvement Corporation Meeting and the March 16 and March 23, 2020 Council Meetings. MOTION PASSED: 7-0 Consent Calendar MOTION: Mayor Fine moved, seconded by Council Member Cormack to approve Agenda Item Numbers 3-4. 3. Adoption of a Resolution 9883 Entitled, “Resolution of the Council of the City of Palo Alto for Senate Bill 1, the Road Repair and Accountability Act, for Fiscal Year 2021, Providing the Project List for Capital Improvement Program Project PE-86070, Street Maintenance Projects.” 4. SECOND READING: Adoption of two Ordinances, Ordinance 5493 Entitled, “Ordinance of the Council of the City of Palo Alto;”, Ordinance 5494 Entitled, “Ordinance of the Council of the City of Palo Alto Amending Various Sections of Chapter 2.08 (Officers and Departments), Chapter 2.30 (Contracts and Purchasing Procedures); Chapter 10.50 (Residential Preferential Parking Districts), Chapter 10.51 (Crescent Park no Overnight Parking Program); and Title 18 (Zoning) to Reflect Updates to the Organization of Some City Departments and Duties; Clean up the City’s Purchasing Procedures; add a new Exemption From Competitive Solicitation for Some Types of Personnel-related Services Contracts; and Update Enforcement and Hearing Procedures in the Zoning Code (FIRST READING: March 16, 2020 PASSED: 7-0).” MOTION PASSED: 7-0 Action Items 5. SECOND READING: Adoption of an Ordinance 5495 Entitled, “Ordinance of the Council of the City of Palo Alto Establishing a Temporary Moratorium on Residential Tenant Evictions Resulting From the COVID- 19 Emergency (FIRST READING: MARCH 23, 2020, PASSED 7-0);” and Discussion and Direction on Extending the Evictions Moratorium to Businesses, Nonprofit Organizations, and Other Commercial Tenants. DRAFT ACTION MINUTES Page 4 of 4 City Council Meeting Draft Action Minutes: 04/06/2020 Council Member Kniss announced she would not be participating in this Agenda Item due to owning rental property. MOTION: Council Member Kou moved, seconded by Mayor Fine to: A. Find the proposed Ordinance exempt from the California Environmental Quality Act pursuant to Section 15301 of the CEQA Guidelines and adopt the Ordinance Establishing a Temporary Moratorium on Residential Evictions for Tenants with Substantial Income Loss Due to the COVID- 19 State of Emergency; and B. Make sure that local businesses are aware of the Santa Clara County Ordinance that protects against commercial evictions. MOTION PASSED: 6-0 Kniss recused Adjournment: The meeting was adjourned at 11:11 P.M. in deep gratitude of the work of our healthcare and public safety workers. City of Palo Alto (ID # 11012) City Council Staff Report Report Type: Consent Calendar Meeting Date: 4/20/2020 City of Palo Alto Page 1 Summary Title: Contract Approval for Street Sweeping Services Title: Approval of Contract Number C20177684 With Contract Sweeping Services, Inc., for Street Sweeping Services With a Five-year Term and Total Not-to-Exceed Amount of $5,608,23; and Authorization of the City Manager or Designee to Execute Contract Amendments to Memorialize any Annual Consumer Price Index Adjustments to the Compensation Rates as Provided in the Contract From: City Manager Lead Department: Public Works Recommendation Staff recommends that Council: 1.Approve and authorize the City Manager or his designee to execute Contract No. C20177684 with Contract Sweeping Services, Inc. (Attachment A),for street sweeping services, for a term of five years and a total amount not to exceed $5,608,232; and 2.Authorize the City Manager or his designee to execute contract amendments to memorialize the annual Consumer Price Index adjustments to the contractor’s compensation rates, as described in Section 6 of the contract. Background The Public Works Department’s Public Services Division is responsible for maintaining cleanliness throughout various City-owned public areas, including sweeping over 18,000 curb miles of streets annually. Street sweeping is a key maintenance task and requirement of State and Federal laws, including the federal Clean Water Act National Pollution Discharge Elimination System (NPDES) and the California State Water Resources Control Board. Street sweeping removes leaves, trash, and particulate debris such as metal particles from street surfaces and gutters, preventing these materials from entering the storm drain system and San Francisco Bay.The current street sweeping contract expires on April 24, 2020. Discussion Staff recommends Council approve a five-year contract with Contract Sweeping Services, Inc., to allow for the continuation of street sweeping, debris management, and unscheduled or City of Palo Alto Page 2 emergency services from April 27, 2020 through April 25, 2025. The sweeping services and frequency will remain unchanged from previous years for University and California Avenue business districts (3 times per week), El Camino Real (weekly), and biweekly for residential and light commercial areas. Frequency for residential and light commercial areas increases to weekly during “leaf season,”which typically occurs between mid-October and mid-February. This contract is on the City’s General Services template, which permits the City to terminate without cause/for convenience by providing written notice to the contractor. In the event the City finds itself facing a challenging budget situation, and it is determined that City resources need to be refocused elsewhere, the City can terminate for convenience. Other options include termination due to non-appropriation of funds or amending the contract to reduce the cost, for example, by reducing the scope of work. A Request for Proposal (RFP) for street sweeping services was distributed to potential sweeping contractors via planetbids.com and builder’s exchanges on February 5, 2020. A proposal was received from one qualified contractor on February 26, 2020. A summary of the proposal is included in Table 1. Table 1: Summary of Request for Proposal Received Proposal Number /Name RFP 177684 / Street Sweeping Services Proposed Length of Project 5 Years Vendors Notified 11 Total Days to Respond to RFP 21 Number of Firms at Pre-Proposal Meeting 3 Number of Proposals Received 1 Proposal Price for Base Services for First Year $941,302 The single proposal was received from the City’s current street sweeping contractor. Staff contacted two contractors who did not submit proposals and inquired why the vendors chose not to participate. The primary reasons include the large size of the service area and complexity of work, that includes sweeping the entire City;alternating services between “leaf season” and “non-leaf season”which creates logistical problems for both equipment and staffing; sweeping of two business districts three nights a week;debris hauling;unscheduled and emergency services required to handle unforeseen events such as auto accidents or disaster events; handwork that may require additional equipment to address areas inaccessible to street sweepers; and, due to the complexity of the work, are unable to provide the needed labor and equipment to perform what is required in the scope of work. An evaluation committee consisting of three staff members from the Public Works Department’s Public Services and Environmental Services Divisions evaluated the one proposal received. Staff determined Contract Sweeping Services, Inc. was responsive to the City’s needs, met all evaluation criteria and is a qualified proposer. In addition, Contract Sweeping Services, City of Palo Alto Page 3 Inc. has been providing reliable street sweeping and sweeping debris hauling services for the City for the past five years and has provided a level of service that is acceptable to City staff. Their personnel, from management to office and field staff, are flexible and responsive to the City’s service requests and adept at responding to any complaints from City staff or residents. Staff has also checked with the Contractors State License Board and confirmed the contractor has an active license on file. The price for basic services for the first contract year is $941,302. This is 39 percent higher than the current contract’s fifth year amount of $677,002 for base services (see Attachment B for a comparison).This higher amount includes an additional $25,000 for handwork and equipment (Task 3 –Non-routine Street Sweeping) that are now required for cleaning areas not accessible to street sweepers and areas that contain recently-built features such as protected bike lanes along Middlefield Road and Arastradero Road.In addition to handwork that is included in this contract, there are several drivers that resulted in a cost increase for these services. First, the Contractor must purchase two new sweepers to meet the City’s requirement that all sweepers operating in the City shall be five years or newer for the duration of the Contract. Operationally, a minimum of four street sweepers operate during leaf season on residential streets, one operates for night work within business districts, and spare sweepers are needed due to the high rate of failure for this type of equipment. New regulatory requirements by the California Air Resource Board (CARB) and Environmental Protection Agency (EPA) have driven sweeper prices from $160,000 to upwards of $250,000. The second driver of the cost increase is increased wages that include adjustments for minimum wage, staff retention and job market competitiveness in the Bay Area, and higher costs to insure and maintain equipment. The previous contract with the vendor was bid at a much lower cost than the other proposer by approximately $600,000 annually. The proposed pricing in this new contract partially adjusts for this difference plus adjustments for labor, equipment, maintenance,and insurance as described above. Timeline The five-year contract with Contract Sweeping Services, Inc. has a contract term from April 27, 2020 through April 25, 2025. Resource Impact Funding for the street sweeping contract is appropriated in the Refuse Fund Operating Budget. There is an increase of $264,300 (39 percent, as above) in the cost for the first contract year compared to the last contract year of the existing (expiring) contract; however, there is sufficient funding encumbered in FY 2020 in the current contract to cover the increased cost of the new contract. As a result, a budget adjustment is not being recommended for FY 2021 as the budget for the contract was already allocated in the FY 2020 adopted budget and funding for FY 2021 will be allocated through current encumbered funding.The annual estimated budget for the subsequent contract years is shown in Table 2, which includes an estimated annual average of four percent increase based on the Consumer Price Index for Urban Wage City of Palo Alto Page 4 Earners and Clerical Workers for the San Francisco-Oakland-San Jose area (CPI).Any future need for an annual contract budget adjustment for a subsequent contract year will be addressed in the development of the FY 2022 budget and recommended to Council through the annual budget development process. Table 2: Estimated Contract Costs assuming 4%annual CPI adjustments Year Base Service Additional Services Total Amount Refuse Fund -FY21 $941,302 $94,130 $1,035,432 Refuse Fund -FY22 $978,954 $97,895 $1,076,849 Refuse Fund -FY23 $1,018,112 $101,811 $1,119,923 Refuse Fund -FY24 $1,058,836 $105,884 $1,164,720 Refuse Fund -FY25 $1,101,189 $110,119 $1,211,308 Total for five years $5,098,393 $509,839 $5,608,232 Policy Implications This recommendation does not represent any change to existing City policies. Stakeholder Engagement Stakeholder engagement is not required for this contract because it is a continuation of the same level and frequency of street sweeping services. Environmental Review The recommended action is CEQA-exempt under the California Environmental Quality Act pursuant to CEQA Guidelines Section 15061(b)(3)because it can be seen with certainty that there is no possibility of a significant effect on the environment. Attachments: ·ATTACHMENT A -GENERAL SERVICES CONTRACT NO. C20177684 WITH CONTRACT SWEEPING SERVICES, INC. ·ATTACHMENT B -FEE COMPARISON OF 2014 CONTRACT AND PROPOSED PRICING City of Palo Alto General Services Agreement 1 Rev. March 29, 2018 CITY OF PALO ALTO CONTRACT NO. C20177684 GENERAL SERVICES AGREEMENT THIS AGREEMENT made and entered into on the 20th day of APRIL, 2020, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and CONTRACT SWEEPING SERVICES, INC., a California corporation, located at 760 E. Capitol Avenue, Milpitas, Ca 95035, Telephone Number: 408-639-6005 (“CONTRACTOR”). In consideration of their mutual covenants, the parties hereto agree as follows: 1. SERVICES. CONTRACTOR shall provide or furnish the services (the “Services”) described in the Scope of Services, attached at Exhibit A. 2. EXHIBITS. The following exhibits are attached to and made a part of this Agreement: “A” - Scope of Services “A-2” - Maps “B” - Schedule of Performance “C” – Schedule of Fees “D” - Insurance Requirements CONTRACT IS NOT COMPLETE UNLESS ALL INDICATED EXHIBITS ARE ATTACHED. 3. TERM. The term of this Agreement is from April 27, 2020 to April 25, 2025 inclusive, subject to the provisions of Sections R and W of the General Terms and Conditions. 4. SCHEDULE OF PERFORMANCE. CONTRACTOR shall complete the Services within the term of this Agreement in a reasonably prompt and timely manner based upon the circumstances and direction communicated to CONTRACTOR, and if applicable, in accordance with the schedule set forth in the Schedule of Performance, attached at Exhibit B. Time is of the essence in this Agreement. 5. COMPENSATION FOR ORIGINAL TERM. CITY shall pay and CONTRACTOR agrees to accept as not-to-exceed compensation for the full performance of the Services and reimbursable expenses, if any: The total maximum lump sum compensation of dollars ($ ); DocuSign Envelope ID: E85C7149-A6F4-4663-AEF6-A37A61F55548 City of Palo Alto General Services Agreement 2 Rev. March 29, 2018 OR The sum of dollars ($ ) per hour, not to exceed a total maximum compensation amount of dollars ($ ); OR A sum calculated in accordance with the fee schedule set forth at Exhibit C, not to exceed a total maximum compensation amount of Five Million Six Hundred Eight Thousand Two Hundred Thirty-Two ($5,608,232.00). CONTRACTOR agrees that it can perform the Services for an amount not to exceed the total maximum compensation set forth above. Any hours worked or services performed by CONTRACTOR for which payment would result in a total exceeding the maximum amount of compensation set forth above for performance of the Services shall be at no cost to CITY. CITY has set aside the sum of Ninety-Four Thousand One Hundred Thirty dollars ($94,130) for Additional Services for contract year 1, adjusted for successive contract years within the term of the Agreement in relation to the Consumer Price Index as detailed in Section 6 (Compensation for Successive Contract Years During the Term). CONTRACTOR shall provide Additional Services only by advanced, written authorization from the City Manager or designee. CONTRACTOR, at the CITY’s request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONTRACTOR’s proposed maximum compensation, including reimbursable expense, for such services. Compensation shall be based on the hourly rates set forth above or in Exhibit C (whichever is applicable), or if such rates are not applicable, a negotiated lump sum. CITY shall not authorize and CONTRACTOR shall not perform any Additional Services for which payment would exceed the amount set forth above for Additional Services. Payment for Additional Services is subject to all requirements and restrictions in this Agreement. 6. COMPENSATION FOR SUCCESSIVE CONTRACT YEARS DURING THE TERM. CONTRACTOR’S compensation rates for each successive contract year during the term shall be the same; OR CONTRACTOR’s compensation rates for each successive contract year during the term shall be adjusted effective on the commencement of each such successive contract year. The lump sum compensation amount, hourly rates, or fees, whichever is applicable as set forth in Section 5 DocuSign Envelope ID: E85C7149-A6F4-4663-AEF6-A37A61F55548 City of Palo Alto General Services Agreement 3 Rev. March 29, 2018 above, shall be adjusted by a percentage equal to the change in the Consumer Price Index for Urban Wage Earners and Clerical Workers for the San Francisco-Oakland- San Jose area, published by the United States Department of Labor Statistics (CPI) which is published most immediately preceding the commencement of the applicable successive contract year, which shall be compared with the CPI published most immediately preceding the commencement date of the then expiring contract year. Notwithstanding the foregoing, in no event shall CONTRACTOR’s compensation rates be increased by an amount exceeding five percent (5%) of the rates effective during the immediately preceding contract year during the term. Any adjustment to CONTRACTOR’s compensation rates shall be reflected in a written amendment to this Agreement. 7. CLAIMS PROCEDURE FOR “9204 PUBLIC WORKS PROJECTS”. For purposes of this Section 7, a “9204 Public Works Project” means the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind. Public Contract Code Section 9204 mandates certain claims procedures for Public Works Projects, which are set forth in “Appendix __ Claims for Public Contract Code Section 9204 Public Works Projects”. This project is a 9204 Public Works Project and is required to comply with the claims procedures set forth in Appendix __, attached hereto and incorporated herein. OR This project is not a 9204 Public Works Project. 8. INVOICING. Send all invoices to CITY, Attention: Project Manager. The Project Manager is: Roger Nguy Dept.: Pubic Works, Public Services Division, Telephone: 650-496-6913 email: Roger.Nguy@Cityofpaloalto.org. Invoices shall be submitted in arrears for Services performed. Invoices shall not be submitted more frequently than monthly. Invoices shall provide a detailed statement of Services performed during the invoice period and are subject to verification by CITY. CITY shall pay the undisputed amount of invoices within 30 days of receipt. GENERAL TERMS AND CONDITIONS DocuSign Envelope ID: E85C7149-A6F4-4663-AEF6-A37A61F55548 City of Palo Alto General Services Agreement 4 Rev. March 29, 2018 A. ACCEPTANCE. CONTRACTOR accepts and agrees to all terms and conditions of this Agreement. This Agreement includes and is limited to the terms and conditions set forth in sections 1 through 8 above, these general terms and conditions and the attached exhibits. B. QUALIFICATIONS. CONTRACTOR represents and warrants that it has the expertise and qualifications to complete the services described in Section 1 of this Agreement, entitled “SERVICES,” and that every individual charged with the performance of the services under this Agreement has sufficient skill and experience and is duly licensed or certified, to the extent such licensing or certification is required by law, to perform the Services. CITY expressly relies on CONTRACTOR’s representations regarding its skills, knowledge, and certifications. CONTRACTOR shall perform all work in accordance with generally accepted business practices and performance standards of the industry, including all federal, state, and local operation and safety regulations. C. INDEPENDENT CONTRACTOR. It is understood and agreed that in the performance of this Agreement, CONTRACTOR and any person employed by CONTRACTOR shall at all times be considered an independent CONTRACTOR and not an agent or employee of CITY. CONTRACTOR shall be responsible for employing or engaging all persons necessary to complete the work required under this Agreement. D. SUBCONTRACTORS. CONTRACTOR may not use subcontractors to perform any Services under this Agreement unless CONTRACTOR obtains prior written consent of CITY. CONTRACTOR shall be solely responsible for directing the work of approved subcontractors and for any compensation due to subcontractors. E. TAXES AND CHARGES. CONTRACTOR shall be responsible for payment of all taxes, fees, contributions or charges applicable to the conduct of CONTRACTOR’s business. F. COMPLIANCE WITH LAWS. CONTRACTOR shall in the performance of the Services comply with all applicable federal, state and local laws, ordinances, regulations, and orders. G. PALO ALTO MINIMUM WAGE ORDINANCE. CONTRACTOR shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as it may be amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the City, CONTRACTOR shall pay such employees no less than the minimum wage set forth DocuSign Envelope ID: E85C7149-A6F4-4663-AEF6-A37A61F55548 City of Palo Alto General Services Agreement 5 Rev. March 29, 2018 in Palo Alto Municipal Code section 4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, CONTRACTOR shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code section 4.62.060. H. DAMAGE TO PUBLIC OR PRIVATE PROPERTY. CONTRACTOR shall, at its sole expense, repair in kind, or as the City Manager or designee shall direct, any damage to public or private property that occurs in connection with CONTRACTOR’s performance of the Services. CITY may decline to approve and may withhold payment in whole or in part to such extent as may be necessary to protect CITY from loss because of defective work not remedied or other damage to the CITY occurring in connection with CONTRACTOR’s performance of the Services. CITY shall submit written documentation in support of such withholding upon CONTRACTOR’s request. When the grounds described above are removed, payment shall be made for amounts withheld because of them. I. WARRANTIES. CONTRACTOR expressly warrants that all services provided under this Agreement shall be performed in a professional and workmanlike manner in accordance with generally accepted business practices and performance standards of the industry and the requirements of this Agreement. CONTRACTOR expressly warrants that all materials, goods and equipment provided by CONTRACTOR under this Agreement shall be fit for the particular purpose intended, shall be free from defects, and shall conform to the requirements of this Agreement. CONTRACTOR agrees to promptly replace or correct any material or service not in compliance with these warranties, including incomplete, inaccurate, or defective material or service, at no further cost to CITY. The warranties set forth in this section shall be in effect for a period of one year from completion of the Services and shall survive the completion of the Services or termination of this Agreement. J. MONITORING OF SERVICES. CITY may monitor the Services performed under this Agreement to determine whether CONTRACTOR’s work is completed in a satisfactory manner and complies with the provisions of this Agreement. K. CITY’S PROPERTY. Any reports, information, data or other material (including copyright interests) developed, collected, assembled, prepared, or caused to be prepared under this Agreement will become the property of CITY without restriction or limitation upon their use and will not be made available to any individual or organization by CONTRACTOR or its subcontractors, if any, without the prior written approval of the City Manager. DocuSign Envelope ID: E85C7149-A6F4-4663-AEF6-A37A61F55548 City of Palo Alto General Services Agreement 6 Rev. March 29, 2018 L. AUDITS. CONTRACTOR agrees to permit CITY and its authorized representatives to audit, at any reasonable time during the term of this Agreement and for three (3) years from the date of final payment, CONTRACTOR’s records pertaining to matters covered by this Agreement. CONTRACTOR agrees to maintain accurate books and records in accordance with generally accepted accounting principles for at least three (3) following the terms of this Agreement. M. NO IMPLIED WAIVER. No payment, partial payment, acceptance, or partial acceptance by CITY shall operate as a waiver on the part of CITY of any of its rights under this Agreement. N. INSURANCE. CONTRACTOR, at its sole cost, shall purchase and maintain in full force during the term of this Agreement, the insurance coverage described at Exhibit D. Insurance must be provided by companies with a Best’s Key Rating of A- :VII or higher and which are otherwise acceptable to CITY’s Risk Manager. The Risk Manager must approve deductibles and self-insured retentions. In addition, all policies, endorsements, certificates and/or binders are subject to approval by the Risk Manager as to form and content. CONTRACTOR shall obtain a policy endorsement naming the City of Palo Alto as an additional insured under any general liability or automobile policy. CONTRACTOR shall obtain an endorsement stating that the insurance is primary coverage and will not be canceled or materially reduced in coverage or limits until after providing 30 days prior written notice of the cancellation or modification to the Risk Manager. CONTRACTOR shall provide certificates of such policies or other evidence of coverage satisfactory to the Risk Manager, together with the required endorsements and evidence of payment of premiums, to CITY concurrently with the execution of this Agreement and shall throughout the term of this Agreement provide current certificates evidencing the required insurance coverages and endorsements to the Risk Manager. CONTRACTOR shall include all subcontractors as insured under its policies or shall obtain and provide to CITY separate certificates and endorsements for each subcontractor that meet all the requirements of this section. The procuring of such required policies of insurance shall not operate to limit CONTRACTOR’s liability or obligation to indemnify CITY under this Agreement. O. HOLD HARMLESS. To the fullest extent permitted by law and without limitation by the provisions of section N relating to insurance, CONTRACTOR shall indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents from and against any and all demands, claims, injuries, losses, or liabilities of any nature, including death or injury to any person, property damage or any other loss and including without limitation all damages, penalties, fines and judgments, associated investigation and administrative expenses and defense costs, including, but not limited to reasonable attorney’s fees, courts costs and DocuSign Envelope ID: E85C7149-A6F4-4663-AEF6-A37A61F55548 City of Palo Alto General Services Agreement 7 Rev. March 29, 2018 costs of alternative dispute resolution), arising out of, or resulting in any way from or in connection with the performance of this Agreement. CONTRACTOR’s obligations under this Section apply regardless of whether or not a liability is caused or contributed to by any negligent (passive or active) act or omission of CITY, except that CONTRACTOR shall not be obligated to indemnify for liability arising from the sole negligence or willful misconduct of CITY. The acceptance of the Services by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section survive the completion of the Services or termination of this Agreement. P. NON-DISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510, CONTRACTOR certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person. CONTRACTOR acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. Q. WORKERS' COMPENSATION. CONTRACTOR, by executing this Agreement, certifies that it is aware of the provisions of the Labor Code of the State of Califor- nia which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that Code, and certifies that it will comply with such provisions, as applicable, before commencing and during the performance of the Services. R. TERMINATION. The City Manager may terminate this Agreement without cause by giving ten (10) days’ prior written notice thereof to CONTRACTOR. If CONTRACTOR fails to perform any of its material obligations under this Agreement, in addition to all other remedies provided by law, the City Manager may terminate this Agreement immediately upon written notice of termination. Upon receipt of such notice of termination, CONTRACTOR shall immediately discontinue performance. CITY shall pay CONTRACTOR for services satisfactorily performed up to the effective date of termination. If the termination is for cause, CITY may deduct from such payment the amount of actual damage, if any, sustained by CITY due to CONTRACTOR’s failure to perform its material obligations under this Agreement. Upon termination, CONTRACTOR shall immediately deliver to the City Manager any and all copies of studies, sketches, drawings, computations, and other material or products, whether or not completed, prepared by CONTRACTOR or given to CONTRACTOR, in connection with this Agreement. Such materials shall become the property of CITY. DocuSign Envelope ID: E85C7149-A6F4-4663-AEF6-A37A61F55548 City of Palo Alto General Services Agreement 8 Rev. March 29, 2018 S. ASSIGNMENTS/CHANGES. This Agreement binds the parties and their successors and assigns to all covenants of this Agreement. This Agreement shall not be assigned or transferred without the prior written consent of CITY. No amendments, changes or variations of any kind are authorized without the written consent of CITY. This Agreement may be amended only by written instrument executed by the authorized representatives of the parties and approved as required under Palo Alto Municipal Code. T. CONFLICT OF INTEREST. In accepting this Agreement, CONTRACTOR covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of this Agreement. CONTRACTOR further covenants that, in the performance of this Agreement, it will not employ any person having such an interest. CONTRACTOR certifies that no CITY officer, employee, or authorized representative has any financial interest in the business of CONTRACTOR and that no person associated with CONTRACTOR has any interest, direct or indirect, which could conflict with the faithful performance of this Agreement. CONTRACTOR agrees to advise CITY if any conflict arises. U. GOVERNING LAW. This Agreement shall be governed and interpreted by the laws of the State of California. V. ENTIRE AGREEMENT. This Agreement, including all exhibits, represents the entire agreement between the parties with respect to the services that may be the subject of this Agreement. Any variance in the exhibits does not affect the validity of the Agreement and the Agreement itself controls over any conflicting provisions in the exhibits. This Agreement supersedes all prior agreements, representations, statements, negotiations and undertakings whether oral or written. W. NON-APPROPRIATION. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This Section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. X. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONTRACTOR shall comply with CITY’s Environmentally Preferred Purchasing policies which are available at CITY’s Purchasing Division, DocuSign Envelope ID: E85C7149-A6F4-4663-AEF6-A37A61F55548 City of Palo Alto General Services Agreement 9 Rev. March 29, 2018 which are incorporated by reference and may be amended from time to time. CONTRACTOR shall comply with waste reduction, reuse, recycling and disposal requirements of CITY’s Zero Waste Program. Zero Waste best practices include first minimizing and reducing waste; second, reusing waste and third, recycling or composting waste. In particular, CONTRACTOR shall comply with the following zero waste requirements: • All printed materials provided by CONTRACTOR to CITY generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double- sided and printed on a minimum of 30% or greater post-consumer content paper, unless otherwise approved by CITY’s Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post-consumer material and printed with vegetable based inks. • Goods purchased by Contractor on behalf of CITY shall be purchased in accordance with CITY’s Environmental Purchasing Policy including, but not limited to, Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Division’s office. • Reusable/returnable pallets shall be taken back by CONTRACTOR, at no additional cost to CITY, for reuse or recycling. CONTRACTOR shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed. Y. AUTHORITY. The individual(s) executing this Agreement on behalf of the parties represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities. Z. PREVAILING WAGES This Project is not subject to prevailing wages. CONTRACTOR is not required to pay prevailing wages in the performance and implementation of the Project in accordance with SB 7, if the Agreement is not a public works contract, if Agreement does not include a public works construction project of more than $25,000, or the Agreement does not include a public works alteration, demolition, repair, or maintenance (collectively, ‘improvement’) project of more than $15,000. OR DocuSign Envelope ID: E85C7149-A6F4-4663-AEF6-A37A61F55548 City of Palo Alto General Services Agreement 10 Rev. March 29, 2018 Contractor is required to pay general prevailing wages as defined in Subchapter 3, Title 8 of the California Code of Regulations and Section 16000 et seq. and Section 1773.1 of the California Labor Code. Pursuant to the provisions of Section 1773 of the Labor Code of the State of California, the City Council has obtained the general prevailing rate of per diem wages and the general rate for holiday and overtime work in this locality for each craft, classification, or type of worker needed to execute the Agreement for this Project from the Director of the Department of Industrial Relations (“DIR”). Copies of these rates may be obtained at the Purchasing Division’s office of the City of Palo Alto. Contractor shall provide a copy of prevailing wage rates to any staff or subcontractor hired, and shall pay the adopted prevailing wage rates as a minimum. Contractor shall comply with the provisions of all sections, including, but not limited to, Sections 1775, 1776, 1777.5, 1782, 1810, and 1813, of the Labor Code pertaining to prevailing wages. AA. DIR REGISTRATION. In regard to any public work construction, alteration, demolition, repair or maintenance work, CITY will not accept a bid proposal from or enter into this Agreement with CONTRACTOR without proof that CONTRACTOR and its listed subcontractors are registered with the California Department of Industrial Relations (“DIR”) to perform public work, subject to limited exceptions. City requires CONTRACTOR and its listed subcontractors to comply with the requirements of SB 854. CITY provides notice to CONTRACTOR of the requirements of California Labor Code section 1771.1(a), which reads: “A contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any contract for public work, as defined in this chapter, unless currently registered and qualified to perform public work pursuant to Section 1725.5. It is not a violation of this section for an unregistered contractor to submit a bid that is authorized by Section 7029.1 of the Business and Professions Code or Section 10164 or 20103.5 of the Public Contract Code, provided the contractor is registered to perform public work pursuant to Section 1725.5 at the time the Agreement is awarded.” CITY gives notice to CONTRACTOR and its listed subcontractors that CONTRACTOR is required to post all job site notices prescribed by law or regulation and CONTRACTOR is subject to SB 854-compliance monitoring and enforcement by DIR. CITY requires CONTRACTOR and its listed subcontractors to comply with the requirements of Labor Code section 1776, including: DocuSign Envelope ID: E85C7149-A6F4-4663-AEF6-A37A61F55548 City of Palo Alto General Services Agreement 11 Rev. March 29, 2018 Keep accurate payroll records, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by, respectively, CONTRACTOR and its listed subcontractors, in connection with the Project. The payroll records shall be verified as true and correct and shall be certified and made available for inspection at all reasonable hours at the principal office of CONTRACTOR and its listed subcontractors, respectively. At the request of CITY, acting by its project manager, CONTRACTOR and its listed subcontractors shall make the certified payroll records available for inspection or furnished upon request to the project manager within ten (10) days of receipt of CITY’s request. [For state- and federally-funded projects] CITY requests CONTRACTOR and its listed subcontractors to submit the certified payroll records to the project manager at the end of each week during the Project. If the certified payroll records are not produced to the project manager within the 10-day period, then CONTRACTOR and its listed subcontractors shall be subject to a penalty of one hundred dollars ($100.00) per calendar day, or portion thereof, for each worker, and CITY shall withhold the sum total of penalties from the progress payment(s) then due and payable to CONTRACTOR. Inform the project manager of the location of CONTRACTOR’s and its listed subcontractors’ payroll records (street address, city and county) at the commencement of the Project, and also provide notice to the project manager within five (5) business days of any change of location of those payroll records. BB. CONTRACT TERMS. All unchecked boxes do not apply to this Agreement. In the case of any conflict between the terms of this Agreement and the exhibits hereto or CONTRACTOR’s proposal (if any), the Agreement shall control. In the case of any conflict between the exhibits hereto and CONTRACTOR’s proposal, the exhibits shall control. DocuSign Envelope ID: E85C7149-A6F4-4663-AEF6-A37A61F55548 City of Palo Alto General Services Agreement 12 Rev. March 29, 2018 IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement on the date first above written. CITY OF PALO ALTO CONTRACT SWEEPING SERVICES, INC. ______________________________ By________________________________________ City Manager or Designee Name _____________________________________ Title_______________________________________ Approved as to form: By________________________________________ ___________________________ City Attorney or Designee Name _____________________________________ Title_______________________________________ DocuSign Envelope ID: E85C7149-A6F4-4663-AEF6-A37A61F55548 Joe Vella Owner President Gina Vella City of Palo Alto General Services Agreement 13 Rev. March 29, 2018 EXHIBIT A SCOPE OF SERVICES The CONTRACTOR will provide the Services as detailed in this Exhibit A, Scope of Services, and elsewhere in this Agreement. CONTRACTOR’s Proposal, submitted in response to the City’s Request for Proposals (RFP) no. 177684 for Street Sweeping Services, is hereby attached and incorporated into this Agreement as though fully set forth herein. In the event of a conflict between this Agreement and the Proposal, this Agreement shall control. DEFINITIONS AND TERMS Curb Mile - Curb mile shall be defined as the distance the sweeping machine travels with an effective sweeping width of eight (8) feet from the curb face along an improved or unimproved street. Leaf Season - The four months of the year when leaf fall is the heaviest. This period typically runs from October 15th until February 15th. This timeframe is subject to change, and will be communicated to CONTRACTOR by the Director of Public Works or his/her designee. Non-Leaf Season – The eight months of the year where leaf fall is not expected to be heavy. This period typically runs from February 16th through October 14th. This timeframe is subject to change, and will be communicated to CONTRACTOR by the Director of Public Works or his/her designee. Street Debris - All loose, inert, dry waste material including refuse, dirt, rocks, sticks (including small tree branches), cardboard, sand, glass, metal fragments, cans, bottles, leaves and typical street litter. Street debris does not include waste materials in the catch basins of storm drains. Sweeping Path - Specified paved surface distance from curb face or pavement edge in which Scheduled Service is to be performed. Scheduled Service - Sweeping frequency as defined in this Agreement which must be performed on the schedule set forth herein unless mutually agreed upon in advance by the CITY and CONTRACTOR. Unscheduled Service - That service which can be requested by the CITY to be performed outside the bounds of the scheduled service which can be requested a minimum of twenty-four (24) hours in advance DocuSign Envelope ID: E85C7149-A6F4-4663-AEF6-A37A61F55548 City of Palo Alto General Services Agreement 14 Rev. March 29, 2018 Emergency Service - That service which can be requested by the CITY to be performed outside the bounds of the scheduled service within two (2) hours of being notified to provide such service. SERVICES OVERVIEW The CONTRACTOR will provide street sweep services for the CITY’s residential and light commercial streets at the frequencies specified below. CONTRACTOR shall also collect and transport the sweeping debris and material to the Sunnyvale Materials Recovery and Transfer Station (SMaRT) where the CITY will pay the disposal fees. CONTRACTOR shall also provide additional services as requested by the CITY that includes: 1) Emergency responses; 2) unscheduled services; and 3) additional debris management and transportation services. Sweeping of parking lots, garages, and bike path is not included in this Agreement, this work is currently being completed by a separate contract and by in-house staff and equipment. A map detailing the sweeping operations in the CITY is located online and available here: https://www.cityofpaloalto.org/streetsweeping CONTRACTOR STAFFING QUALIFICATIONS All employees of CONTRACTOR shall be properly licensed to operate assigned equipment used for sweeping the City, as determined by local, state, and federal regulations. TASKS The CONTRACTOR’s provision of the Services under this Agreement shall include all of the supervision, vehicles, fuel, labor, materials, tools, equipment, daily/monthly reports and all other items necessary to complete said work in accordance with this Agreement. Task 1 – STREET SWEEPING SERVICES Types of Sweeping Services: Scheduled Service - CONTRACTOR shall furnish scheduled sweeping service for all streets designated by CITY at the time of the execution of this Agreement. All designated streets require sweeping along the curb and gutter, including the flowline, and some streets also require sweeping along the median curb or centerline. Sweeping shall be up to the edge of pavement on unimproved streets, as designated by the CITY’s Project Manager. After execution of the contract, CITY at its sole discretion, may add or delete streets or portions of streets at the agreed contract rate. DocuSign Envelope ID: E85C7149-A6F4-4663-AEF6-A37A61F55548 City of Palo Alto General Services Agreement 15 Rev. March 29, 2018 Frequency of Service - Residential and Light Commercial areas as shown on the attached map shall be swept once a week during the leaf season, as defined by CITY, and bi-weekly during the rest of the year. University Avenue and California Avenue Routes (BA) shall be swept three times a week (Monday, Wednesday, and Friday) year round. In the event one of these three days falls on a holiday, frequency shall be twice a week, as determined by CITY. Center medians and centerlines that exist in any given route shall be swept in conjunction with regular sweeping. The Breakdown of Routes is as follows: Monday – BA, B9, B5B, B5A, B1, B3 Tuesday – D1, D2 RES, D2 IND, A6, A3, B2 Wednesday – BA, D3, A1, A2, A5 Thursday – A5 IND, B8 IND, B8 RES, A7, B7, B6 Friday – BA, A4, B4 CITY may reorganize the daily breakdown of routes at its sole discretion. In the event of any changes being made to the routine sweeping service, a two (2) week notice will be provided to CONTRACTOR. Curb Mileage - The following table illustrates the current sweeping inventory and frequency: Category Curb Miles Frequency Average Miles/Month Average Miles/Year Residential / Leaf Season 345.11 Weekly 1,495.50 5,982 Residential / Non-Leaf Season 345.11 Bi-Weekly 747.75 5,982 Light Commercial / Leaf Season 47.69 Weekly 206.66 826.64 Light Commercial / Non-Leaf Season 47.69 Bi-Weekly 103.33 826.64 Downtown University Ave & California Ave 23.92 3 times / Week 310.96 3,731.52 El Camino Real* 18.68 Weekly 80.95 971.36 Total 18,320.16 DocuSign Envelope ID: E85C7149-A6F4-4663-AEF6-A37A61F55548 City of Palo Alto General Services Agreement 16 Rev. March 29, 2018 *Prior to the issuance of a Notice To Proceed (NTP), CONTRACTOR shall obtain an encroachment permit for sweeping on El Camino Real. This permit is available from CalTrans, and all costs associated with the encroachment permit will be assumed by CONTRACTOR. The cost of the encroachment permit is approximately $164 renewable on an annual basis. Permits can be obtained by calling CalTrans at (510) 286-4401. Actual total will be reduced by holidays, weather, and any other reasons CONTRACTOR does not provide scheduled service. Days and Hours of Operation - Scheduled service shall be Monday through Friday only. Sweeping of residential areas shall not start before 7:00 a.m. or continue after 4:30 p.m, on the same day, unless otherwise directed by the Project Manager. Light commercial areas shall be swept between 3:30 a.m. and 12:00 noon on the same day. Sweeping shall be scheduled to maximize the area of street being swept by minimizing interference by parked vehicles. Sweeping shall be scheduled and done in such a way as to minimize noise complaints in residential areas. Downtown University and California Avenue (Route BA) sweeping shall be three times a week on Monday, Wednesday, and Friday between 10:00 p.m. and 7:00 a.m. Posted No Parking sweeping area, currently labeled “C” on sweeping map, shall be swept one side of street each Tuesday, year round, at time specified and according to existing program. Additional Posted No Parking sweeping areas may be added to the map in the future, the CONTRACTOR will receive a minimum of two week notice prior to any changes taking place, at that time, the CONTRACTOR shall make appropriate adjustments to accommodate the new route requirements, at no additional cost to the CITY. The Public Works Director, or his designee, may require revisions in the hours and/or manner of operation as necessary to maximize sweeping coverage, to minimize noise complaints, or to coincide with CITY staff working hours. CONTRACTOR shall provide an adequate number of sweepers to perform work on a daily basis to sufficiently remove the amount of debris that may be on the roads for both “leaf season” and non-leaf season. CITY recommends a minimum of four (4) sweepers on a daily basis during leaf season, which typically runs from October 15th through February 15th. CITY recommends a minimum of two (2) sweepers on a daily basis during non-leaf season, which typically occurs from February 16th to October 14th. The number of sweepers listed in the proposal by the CONTRACTOR on a daily basis (four (4) sweepers during leaf season and two (2) sweepers during non-leaf season) may be reduced with prior written approval from the CITY’s Project Manager, which typically requires proof that the same or better level of service can be achieved with less equipment. On the contrary, CITY may require CONTRACTOR to provide additional sweepers, at no additional cost to CITY, if CITY determines at any time that the number of sweepers mobilized by the CONTRACTOR are inadequate to complete the work in a timely manner. DocuSign Envelope ID: E85C7149-A6F4-4663-AEF6-A37A61F55548 City of Palo Alto General Services Agreement 17 Rev. March 29, 2018 Street sweeping is a very important service provided by the CITY and residents have high expectations. CONTRACTOR shall minimize or eliminate disruptions to this important service, by providing 24/7 management support to CITY and with the availability of multiple spare sweepers, to help mitigate the occasional missed street sweeping due to a variety of reasons, including operator errors or equipment malfunctions. University Avenue Sweeping – Sweeping of University Ave. (Route BA) – CONTRACTOR shall coordinate with a Palo Alto employee who will assist with the sweeping. The employee will use a backpack leaf blower to push debris directly into the path of the sweeper. Sweeping of this area typically occurs three (3) times a week, and shall commence at approximately 3:45 A.M. Contact information for the Palo Alto employee(s) responsible for these duties will be furnished to CONTRACTOR for coordination purposes. Additions and Deletions - CITY reserves the right to add or delete curb miles and to increase or reduce the sweeping frequency called for in these specifications. The bid price per curb mile for Task 1 under Schedule of Fees will be used to calculate the amount paid to CONTRACTOR for additions or deletions of curb miles. Holidays - There will be no sweeping on the following observed holidays: New Year's Day, Martin Luther King Day, Presidents' Day, Memorial Day, Independence Day, Labor Day, Columbus Day, Veteran’s Day, Thanksgiving, and Christmas. When routes are not swept due to a holiday, CONTRACTOR shall make-up the missed routes on either the previous business day or the following business day by sweeping the routes missed due to the holiday, along with the regularly scheduled routes. Vehicles - It is understood that if vehicles are parked on the streets when services are being performed by CONTRACTOR, then CONTRACTOR's operations will be impeded and CONTRACTOR will be required to bypass said parked vehicles. In such events, the rates charged by CONTRACTOR shall not be reduced. Trees – If trees along the sweeping route impede CONTRACTOR’s ability to effectively sweep curbed area, CONTRACTOR shall note the location of tree on the “Daily Report of Street Sweeper” form. This information shall be reported to the CITY by CONTRACTOR within 24 hours. If a downed tree or limb from a tree is observed in the street, CONTRACTOR shall immediately notify the Palo Alto Tree Section at (650) 496- 5953. Level of Cleanliness - Level of cleanliness shall be defined as the absence of "street debris" in the streets and gutters upon the completion of the sweeping operation. Payment - Payment will be for one pass only, and no separate payment will be made for additional passes needed to remove street debris. However, if CONTRACTOR does DocuSign Envelope ID: E85C7149-A6F4-4663-AEF6-A37A61F55548 City of Palo Alto General Services Agreement 18 Rev. March 29, 2018 not pick up the debris in one pass, then CONTRACTOR shall make two or more passes as necessary to remove the street debris. Weather - In the event of heavy rain or other severe weather conditions, the scheduled sweeping service may be suspended. The decision to sweep will be made by the CITY after consultation with the CONTRACTOR. CONTRACTOR shall contact the CITY’s Project Manager to determine if sweeping has been suspended. Water – CONTRACTOR shall furnish all water necessary for street sweeping. Water may be obtained from any CITY reclaimed water fire hydrant. CONTRACTOR shall obtain a fire hydrant meter permit (renewable every three months). A deposit fee is required for the fire hydrant meter. Contact the CITY’s Utilities Department Business Office, Customer Service Department, at (650) 329-2161 for instructions. CONTRACTOR shall be responsible for paying all of the water bills used for street sweeping operations for the entire term of this Agreement. CONTRACTOR shall not use residential or business water services for any purpose. Dust Control - The proper volume and pressure of water will be supplied by the sweeper and shall be in good working condition at all times to adequately control dust during the sweeping operation, and shall meet all regulatory requirements for dust control Traffic Counters - CONTRACTOR is cautioned that at various times and locations, CITY may install temporary portable traffic counters which utilize a hose placed in the roadway. When an area with a counter is swept, care should be taken to avoid the counter hose. Any damage made by CONTRACTOR’s vehicles to traffic counters shall be immediately reported to the CITY’s Project Manager. Speed - CONTRACTOR shall operate the sweepers between four and six miles per hour when sweeping, unless it can be proven, to the satisfaction of CITY, the sweeper can operate at a higher speed and still operate efficiently. Call Backs - Whenever, in the opinion of the CITY, a section of street is inadequately swept, CONTRACTOR shall, within 24 hours after notification, re-sweep the section in question and may, at the discretion of the Public Works Director, or his designee, forfeit as a penalty Fifty Dollars ($50.00) for each time a street is inadequately swept. No additional payment will be made for call-back sweeping. In addition to inspection work performed by CITY, the CONTRACTOR shall provide evidence of the work performed, when required by CITY. Proof may include, but not limited to, date/time stamped GPS routes, daily logs, etc. CONTRACTOR shall provide CITY login information to log into the CONTRACTOR’s GPS equipment tracking system as proposed in the proposal. DocuSign Envelope ID: E85C7149-A6F4-4663-AEF6-A37A61F55548 City of Palo Alto General Services Agreement 19 Rev. March 29, 2018 EQUIPMENT Equipment - The equipment used to complete the sweeping required by this Agreement is subject to the approval of the CITY, and CONTRACTOR must be in possession of equipment capable of being able to remove a variety of material that can be found on streets (e.g. leaves, glass, gravel, dirt, mud, etc.). Placarding – All sweepers operating in Palo Alto shall have magnetic placards attached to both the driver and passenger doors of the sweeper identifying the vehicle as being a CONTRACTOR for the CITY of Palo Alto. CITY will provide one (1) set of placard for each sweeper designated as being a primary sweeper. Two spare sets of placards will be provided to CONTRACTOR for use on spare sweepers in the event of a breakdown. These signs will be furnished by the CITY, and shall be returned upon request. A penalty of Fifty Dollars ($50.00) shall be imposed for each lost or misplaced placard. Proof of Ownership - CONTRACTOR must have proof of ownership or a signed lease for the term of this Agreement for each sweeping machine used in the performance of this Agreement . Registration - Sweeping machines must be properly registered and insured in accordance with California State Motor Vehicle Laws. Safety Regulations - Sweeping machines must conform to all federal, state and local safety regulations and be properly licensed through the State of California. Condition of Equipment - All sweeping machines must not be over five (5) years old for the duration of the contract. Machines must be in good working condition capable of removing dirt, rocks, glass, mud, cans, sticks, leaves, litter and other debris for the duration of the contract. The outside body must be free from dents and large scratches, and paint must be well maintained. Machines must be equipped with dual gutter brooms not shorter than six (6) inches, which shall be operating during all sweeping operations, and a main broom not shorter than seven (7) inches capable of sweeping at minimum an eight (8)-foot path, or vacuum sweep if approved by the Public Works Director, or his designee. Machines must be equipped with a hopper of minimum six yards or larger in capacity. Machines must be equipped with all necessary advance warning safety devices needed to protect the public. This may include, but not limited to, light directional arrow boards, rotating beacons, strobe lights, reflective tape and backup alarms. DocuSign Envelope ID: E85C7149-A6F4-4663-AEF6-A37A61F55548 City of Palo Alto General Services Agreement 20 Rev. March 29, 2018 Machines shall at a minimum meet City of Palo Alto noise ordinance of less than 90dBA from twenty-five (25) feet of machine as specified in the Palo Alto Municipal Code Section 9.10 Noise Ordinance. However, the CITY still frequently receive noise complaints for nighttime sweeping within business districts, the CONTRACTOR shall provide a procedure or method to alleviate these noise concerns, if possible, while still able to perform the work efficiently. Machines shall be tested and approved prior to start of work and at anytime thereafter by the Project Manager for compliance. CONTRACTOR shall promptly replace any equipment found to be noncompliant. In addition to noise complaints, sustainability and minimizing carbon footprint is very important to the City of Palo Alto, CONTRACTOR shall provide a feasible method, procedure, and/or equipment that may contribute to this important goal if they become available. Equipment such as modernized computer routing system, electric sweepers, hybrid sweepers, or other technologies that may exist. The use of a steel plate on the sweeper wheel to prevent tire scuffing against the curb will not be permitted. Maintenance of Equipment - All required maintenance, parts and fuel are part of this Agreement and furnished by CONTRACTOR, and all major mechanical problems must be corrected at CONTRACTOR's yard. A sufficient supply of spare brooms and other parts must be kept on hand to ensure the timely and continuous fulfillment of this Agreement. All CONTACTOR vehicles shall be outfitted with spill kits, in order to minimize any damage caused by potential spills. At a minimum, these kits will include absorbent material, and towels for cleaning up spills on City streets. Breakdown of Equipment - At all times CONTRACTOR shall properly maintain a fleet of sweeping machines, both as to condition and appearance, for the use on the work performed under this Agreement. CONTRACTOR shall have multiple spare sweepers on hand in the event of a breakdown by the primary sweeper. In case of breakdown by the main sweeper, backup service is required to complete the daily schedule. If any route has not been completed due to a breakdown of equipment by the end of the next business day, CONTRACTOR shall forfeit as a penalty Five Hundred Dollars ($500). Storage of Equipment - CONTRACTOR shall provide his own storage for equipment such as sweeping machines, brooms, tires, gas, oil and other required parts and materials. CITY will not provide storage for any CONTRACTOR equipment. COMMUNICATIONS AND REPORTS Office - CONTRACTOR shall maintain an office or such other facility through which he/she can be contacted and from which he/she can maintain radio or pager contact with sweeping vehicles. It shall be equipped with sufficient telephones and shall have a responsible person in charge from 7:30 a.m. to 4:00 p.m., Monday through Friday. DocuSign Envelope ID: E85C7149-A6F4-4663-AEF6-A37A61F55548 City of Palo Alto General Services Agreement 21 Rev. March 29, 2018 CONTRACTOR shall also provide a 24-hour emergency contact telephone number. Complaints - Complaints regarding the street sweeping operations, which the CITY considers justifiable and the responsibility of CONTRACTOR, will be referred to CONTRACTOR for immediate attention. Within two (2) days, CONTRACTOR shall submit to the Public Works Director, or his designee, a report of the action taken to address or reconcile each complaint. Reports - CONTRACTOR shall submit a monthly report to the CITY calculating the volume (cubic yards) collected each month from the residential and commercial routes, the types of sweepers used to complete daily routes (i.e. regenerative air or mechanical broom), a report by day of tonnages deposited at the SMaRT Station, and a report stating the number of curb miles completed each month. Reports to the CITY shall be submitted within 10 days from the beginning of each month for the previous month collected. Forms for reporting will be provided by the City of Palo Alto. TASK 2 – DEBRIS MANAGEMENT Removal of Debris – CONTRACTOR shall remove all street sweeping debris from City streets by 5:00 P.M. each day that sweeping occurs in the City. This could be accomplished through the use of roll-off dumpsters, dumping in the field, or any other method deemed acceptable by the CITY. CONTRACTOR shall haul debris directly to the SMaRT Station during the non-leaf season. During this time, dumping will not be permitted on the street without prior approval of the CITY’s Project Manager. These requests will be evaluated on a case-by-case basis. During the leaf season, CONTRACTOR may dump debris from the sweeping operation directly onto the street, and then transfer the debris to a roll-off container. The roll-off shall then be hauled to the SMaRT Station. During the leaf season, up to twelve (12) locations may be provided to CONTRACTOR by the CITY. The locations provided by the CITY are the only acceptable locations to deposit debris. Should CONTRACTOR deposit debris at a location not provided by the CITY, a penalty of Five Hundred Dollars ($500.00) shall be assessed. CITY will also assess a Five Hundred Dollar ($500.00) penalty for each location in which debris is left on CITY streets overnight. CONTRACTOR shall also provide a sweeping machine to clean up any dump location used within one hour of the debris being removed from the CITY. Should the dump location not be cleaned by the end of the day, liquidated damages of One Hundred Dollars ($100.00) shall be assessed. Disposal of Debris – CONTRACTOR shall be responsible for hauling all debris collected to the SMaRT Station, 301 Carl Rd., Sunnyvale, CA. This includes all debris removed from the streets by CONTRACTOR and by CITY Sweepers (during the entire DocuSign Envelope ID: E85C7149-A6F4-4663-AEF6-A37A61F55548 City of Palo Alto General Services Agreement 22 Rev. March 29, 2018 term of the contract). CONTRACTOR shall assume all responsibility for transporting material to the SMaRT Station, and all disposal fees will be assumed by the CITY. Additional Debris Removal – On a periodic basis, CONTRACTOR shall remove debris from the Palo Alto MSC, 3201 E. Bayshore Rd., which is associated with in-house operations. There may be other locations where debris removal will occur, and CONTRACTOR shall be provided these locations when the need exists for debris removal. The method for this removal shall be through the use of dump trucks or, roll- off containers, and shall be completed within three (3) business days of notification by the CITY. Services provided under this section shall be billed per ton, with all costs for dumping at the SMaRT Station assumed by the CITY. TASK 3 – NON-ROUTINE SWEEPING SERVICES There are various streets throughout the CITY where installed traffic control devices may impede or block access to standard street sweepers, and may require handwork or special equipment for proper cleaning. Listed below are examples of locations where such traffic control devices can be found, and are not inclusive of all possible locations. CONTRACTOR shall provide a feasible plan altogether with the proper equipment to address all locations throughout the CITY. CONTRACTOR has defined in the proposal that approximately three hours are required to clean each location listed below, the actual hours required for the work and to be paid by the CITY for each location will require field verification by the CITY’s Project Manager, all future added locations will be paid on the basis of Time and Materials based on bid price for Task 3. Along Middlefield Rd, mainly near intersections between Embarcadero Rd and Oregon Expwy, there are small sections of bike lanes that are protected and separated from vehicular traffic by white plastic bollards. Some of these protected bike lane sections are too narrow for access by a street sweeper, and may require handwork such as a leaf blower for proper cleaning. CONTRACTOR shall provide the labor and appropriate equipment to properly clean these locations. Along Middlefield Rd, near the intersections of Everett Ave and Hawthorne Ave, there are left turn lanes protected by plastics traffic control devices, these devices collect lots of debris and may need handwork to properly clean. CONTRACTOR shall provide the labor and appropriate equipment to properly clean these locations. Along Charleston/Arastradero Rd are sections of protected bike lanes that are separated from vehicular traffic by concrete islands. These areas may be too narrow for street sweeper to access, the CONTRACTOR shall provide the labor and appropriate equipment to properly clean these locations. Along Ross Road, mainly between Oregon Expressway and East Meadow Dr, there are traffic circles, concrete islands and bulb-out curbs. CONTRACTOR shall provide the labor and appropriate equipment to properly clean these locations. DocuSign Envelope ID: E85C7149-A6F4-4663-AEF6-A37A61F55548 City of Palo Alto General Services Agreement 23 Rev. March 29, 2018 CONTRACTOR shall avoid sweeping or cleaning areas near schools while children are present. TASK 4 – ADDITIONAL SERVICES – AS NEEDED T&M (Time & Materials) Unscheduled Service - CONTRACTOR shall provide, if required by the CITY, unscheduled sweeping of any street or streets or portions of streets. CITY will provide CONTRACTOR a minimum twenty-four (24) hour notice for unscheduled sweeping. CONTRACTOR shall provide up to an additional 500 hours per year of contingency sweeping to deal with problematic areas throughout the CITY. CONTRACTOR shall satisfactorily complete any contingency sweeping within two (2) business days after notification from CITY. These sweeping services shall be billed at an hourly rate. These services will be used only when necessary, so it is possible that all, few or none of the additional hours will be used during a year. CITY will only pay for actual hours swept, and will not pay for any unused contingency hours. Emergency Service - CONTRACTOR shall also respond to emergency calls for service 24 hours a day, seven days a week, during the term of this Agreement, and provide requested service within two (2) hours of being notified. Emergency calls for service generally include either sweeping and/or hauling, which may include, but not limited to, traffic accident cleanup of debris on the roadways, storm or other disasters debris clean up (natural or manmade), and/or mud/debris on the roadway as a result of water main breaks. For emergency service, CONTRACTOR shall bill CITY on an hourly basis, with an emergency mobilization charge added per occurrence. DocuSign Envelope ID: E85C7149-A6F4-4663-AEF6-A37A61F55548 City of Palo Alto General Services Agreement 24 Rev. March 29, 2018 EXHIBIT B SCHEDULE OF PERFORMANCE CONTRACTOR shall perform the Services according to the following schedule: Service Schedule Sweeping Residential/Light Commercial Areas • Weekly During Leaf Season • Every Other Week During Non-Leaf Season Sweeping El Camino Real Weekly Year-Round Sweeping Downtown University Avenue and California Avenue Three (3) Times a Week Year-Round (weeks with a Holiday that falls on a regularly scheduled sweeping day shall be adjusted to twice a week) Debris Removal Year-Round Non-routine Street Sweeping As Needed (not to exceed 500 hours annually) Unscheduled Service – T&M As Needed (not to exceed 500 hours annually) Emergency Service – T&M As Needed (not to exceed 100 hours annually) DocuSign Envelope ID: E85C7149-A6F4-4663-AEF6-A37A61F55548 City of Palo Alto General Services Agreement 25 Rev. March 29, 2018 EXHIBIT C SCHEDULE OF FEES ALTERNATIVE 3. Compensation based upon fee schedule CITY shall pay CONTRACTOR according to the following rate schedule. The maximum amount of compensation to be paid to CONTRACTOR, including both payment for services and reimbursable expenses, shall not exceed the amounts set forth in Sections 5 and 6 of the Agreement. Any services provided or hours worked for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to CITY. DETAILED RATE SCHEDULE COMPENSATION BY CONTRACT YEAR* Services (Tasks 1-4) Additional Services (Per Section 5) Subtotals / Totals Contract Year 1 $941,302 $94,130 $1,035,432 Contract Year 2 $978,954 $97,895 $1,076,849 Contract Year 3 $1,018,112 $101,811 $1,119,923 Contract Year 4 $1,058,836 $105,884 $1,164,720 Contract Year 5 $1,101,189 $110,119 $1,211,308 Subtotals / Totals $5,098,393 $509,839 $5,608,232 * The parties understand and agree that the compensation by contract year amounts in Scope Labor Categories Estimated Quantity Unit Rate Extended (Annual) Task 1 Routine Street Sweeping 18,320 Curb Miles $42.32 $775,302.40 Task 2 Debris Removal/Hauling 2,500 Tons $30.00 $75,000.00 Task 3 Non-routine Street Sweeping 500 Hrs. Annually $50.00 $25,000.00 Task 4 Unscheduled Service – T&M 500 Hrs. Annually $110.00 $55,000.00 Emergency Service – T&M 100 Hrs. Annually $110.00 $11,000.00 Emergency Mobilization Per Occurrence $150.00 TOTAL NOT TO EXCEED (TASKS 1 – 4) (ANNUAL) $941,302.40 DocuSign Envelope ID: E85C7149-A6F4-4663-AEF6-A37A61F55548 City of Palo Alto General Services Agreement 26 Rev. March 29, 2018 the table above assume consistent annual CPI increases of 4%, and are provided for illustration purposes only. As set forth in Section 6 (Compensation for Successive Contract Years During the Term) of the Agreement, actual compensation rates for contract years 2-5 will be determined in relation to the applicable CPI, and will be documented by written amendment to this Agreement as provided for herein. HOURLY RATE SCHEDULE Reg Time Burdened Name Position Base Reg Time Over Time James (Darcel) Driver $ 24.00 $ 32.65 $ 47.30 Pela Driver $ 22.00 $ 28.31 $ 40.03 Julio Driver $ 22.50 $ 30.78 $ 41.27 Daryl Driver $ 32.70 $ 43.02 $ 59.98 Blower - Training Laborer $ 20.00 $ 25.18 $ 36.69 DocuSign Envelope ID: E85C7149-A6F4-4663-AEF6-A37A61F55548 City of Palo Alto General Services Agreement 27 Rev. March 29, 2018 EXHIBIT D INSURANCE REQUIREMENTS CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS, AS SPECIFIED, BELOW: REQUIRED TYPE OF COVERAGE REQUIREMENT MINIMUM LIMITS EACH OCCURRENCE AGGREGATE YES YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED. $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 NO PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR’S AGREEMENT TO INDEMNIFY CITY II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE AT THE FOLLOWING URL: https://www.planetbids.com/portal/portal.cfm?CompanyID=25569 III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO “ADDITIONAL INSUREDS” DocuSign Envelope ID: E85C7149-A6F4-4663-AEF6-A37A61F55548 City of Palo Alto General Services Agreement 28 Rev. March 29, 2018 A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. B. CROSS LIABILITY THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY. C. NOTICE OF CANCELLATION 1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. Vendors are required to file their evidence of insurance and any other related notices with the City of Palo Alto at the following URL: https://www.planetbids.com/portal/portal.cfm?CompanyID=25569 OR http://www.cityofpaloalto.org/gov/depts/asd/planet_bids_how_to.asp DocuSign Envelope ID: E85C7149-A6F4-4663-AEF6-A37A61F55548 D B D A A B A B A B A A C B B B A A Al e x i s D r & a d j o i n i n g s t r e e t s El C a m i n o R e a l Sw e p t E a c h T u e s d a y (D a s h e d L i n e ) ST R E E T S W E E P I N G S C H E D U L E Mo n d a y Tu e s d a y We d n e s d a y Th u r s d a y Fr i d a y Mo n / W e d / F r i A = A W e e k s B = B W e e k s C = O n e s i d e o f s t r e e t e a c h T u e p e r e x i s t i n g p r o g r a m D = W e e k l y o n M / W / F B B SC A L E : 1 " = 6 5 0 ' PW D - P u b l i c S e r v i c e s M a s t e r p i e c e C o l l e c t i o n # 4 Ea s t e n d o f Em b a r c a d e r o R d & a d j o i n i n g s t r e e t s At t a c h m e n t A- 2 - S t r e e t S w e e p i n g M a p DocuSign Envelope ID: E85C7149-A6F4-4663-AEF6-A37A61F55548 ATTACHMENT B SCHEDULE OF FEES DETAILED RATE SCHEDULE – 2014 Contract (Fifth year of 5‐year contract) Scope Labor Category Estimated Quantity Unit Rate Extended Task 1 Routine Street Sweeping 17,272 Curb Miles $32.06 $553,740.32 Task 2 Debris Removal/Hauling 2,500 Tons $31.66 $79,150 Task 3 Unscheduled Service – T&M 500 Hrs. Annually $73.52 $36,760 Emergency Service – T&M 100 Hrs. Annually $73.52 $7,352 Emergency Mobilization Per Occurrence $107.43 Total Not To Exceed (Tasks 1‐3) $677,002.32 DETAILED RATE SCHEDULE – 2020 Contract (First year) Scope Labor Category Estimated Quantity Unit Rate Extended Task 1 Routine Street Sweeping 18,320 Curb Miles $42.32 $775,302.40 Task 2 Debris Removal/Hauling 2,500 Tons $30.00 $75,000.00 Task 3 Non‐routine Street Sweeping 500 Hrs. Annually $50.00 $25,000.00 Task 4 Unscheduled Service – T&M 500 Hrs. Annually $110.00 $55,000.00 Emergency Service – T&M 100 Hrs. Annually $110.00 $11,000.00 Emergency Mobilization Per Occurrence $150.00 TOTAL NOT TO EXCEED (TASKS 1 – 4) $941,302.40 City of Palo Alto (ID # 11165) City Council Staff Report Report Type: Consent Calendar Meeting Date: 4/20/2020 City of Palo Alto Page 1 Summary Title: 840 Kipling: Variance Approval Title: 840 Kipling Street [18PLN-00185]: Variance Associated With an Individual Review Application for Modifications to an Existing Historic 1,192 SF, One-Story Single-Family Home Allowing: (1) a Second-Story Home Addition on a Substandard, Irregular R-2 Zoned Lot, and (2) Extension of a Non-Complying Wall That Encroaches 2.5 Feet Into an Interior Side Setback; On February 26, 2020, the Planning and Transportation Commission Unanimously Recommended Approval of the Variance. This Project is Exempt from the California Environmental Quality Act (CEQA) in Accordance with CEQA Guidelines Section 15301(e). From: City Manager Lead Department: Planning and Development Services Recommendation: The Planning and Transportation Commission (PTC) recommends Council approve the Record of Land Use Action (Attachment A) approving the requested variance application at 840 Kipling for: • A second-story addition with a height of 26 feet 8-¼ inches to a historic home on a substandard lot, where development is otherwise limited to one habitable floor with a maximum height of 17 feet, and • A six-foot horizontal extension of a noncomplying wall encroaching 2 feet 6 inches into the required six-foot side setback, providing additional area at the first floor and basement levels. Executive Summary: This report recommends the City Council approve on consent calendar the variance application requests for a two-story single-family home on a substandard, R-2 zoned lot. The project site is located within the boundaries of the South of Forest Area I Coordinated Area Plan (SOFA I). The director of planning and development services (Director) tentatively approved applications for a City of Palo Alto Page 2 variance and the individual review (IR). A representative of the neighboring 441 Channing Avenue property requested a hearing on the variance. The PTC is the reviewing body for variances when a public hearing has been requested following the Director’s tentative decision. On February 26, 2020, the PTC held a public hearing and unanimously recommended City Council approve the requested variances. If three Council members vote to remove the project from the consent calendar, the Council would have the opportunity to hear the variance application de novo at a future, noticed hearing. Background: The property is developed with a 1,192 square floor (sf) single-story single-family residence and a detached garage containing 336 sf of floor area. The main residence is a one-story bungalow with an attic, constructed in 1912. The residence is located on a substandard R-2 zoned lot. The home is a noncomplying facility, due to the 2’-6” encroachment into the right-side yard setback. The applicant requested approvals for an IR and variance applications to allow: • a 184 sf ground floor addition at the rear part of the main residence, • a 397 sf partial basement beneath the rear addition, and • a 489 sf second floor addition. Along with the proposed additions, the applicant proposes modifications to existing windows and doors for all exterior walls of the building. In 1998, the Historic Resources Board (HRB) determined the existing residence was eligible as a ‘contributing residence’. The HRB reviewed the project on February 14, 20191 and December 12, 20192. The HRB found the project, as conditioned, is consistent with all ten Secretary of Interior’s Standards for Rehabilitation (SOI standards). City staff determined the project conforms with all applicable zoning and municipal code requirements, including the Single-Family Individual Review Guidelines and Variance regulations set forth in the Palo Alto Municipal Code (PAMC) Chapter 18.76.030. The Director tentatively approved the project applications on January 15, 2020 (Attachment B). The Director’s determination was based upon a review of all information contained in the project file, which included neighbor letters received during the review process. On January 23, 2020, a representative of the neighboring property at 441 Channing Avenue submitted a hearing request on the variance application. The requestor initially asked for a 1 February 14, 2019 HRB staff report can be found at this link: https://www.cityofpaloalto.org/civicax/filebank/documents/68958 2 December 12, 2019 HRB staff report can be found at this link: https://www.cityofpaloalto.org/civicax/filebank/documents/74373 City of Palo Alto Page 3 hearing of the IR application, but later withdrew that request. The Director’s approval of the IR application is effective, subject to City Council’s approval of the requested variance. Discussion: On February 26, 2020, the PTC conducted a public hearing, received public testimony and provided its recommendation to City Council in support of the Variance application, with minor modifications to staff’s recommended variance findings (Attachment D). In addition to hearing from the 441 Channing hearing requestor, PTC received one written letter from a neighbor and heard from three other speakers who were in support of the project. The hearing requestor’s issues appeared in a letter to PTC, dated February 3, 2020 (Attachment C). In summary, the hearing requestor expressed concerns that: - The project would not meet findings for the granting of two variance requests. - The project, with the proposed density and setbacks, would conflict with the R-2 zoning designation. - The design option of a one-and-one-half story addition was not considered. - A rear addition is possible if the tree protection zone (TPZ) is reduced, in the same way TPZ reductions occurred for nearby recent developments. The PTC reviewed the information on file, received public testimony, and unanimously recommended City Council approve the two variance requests. The PTC concluded that the project would meet all four Variance approval findings and recommended including these additional findings: - The request to exceed the 17-foot height limit is a privilege supported by development on other properties in the immediate neighborhood. - The requested encroachment into the right-side yard would replace an existing encroachment. These PTC-recommended modifications to the findings appear in Variance Finding 2 in the draft Record of Land Use Action (Attachment A). Design Alternatives During the hearing, PTC commissioners considered other potential design alternatives given the site constraints. Commissioner Hechtman noted his support for the appropriate placement of a portion of the permitted floor area at the second story. He compared the current project with a potential alternative that would place all permitted floor area at grade—an option that would need a lot coverage variance. He also concurred that the project would enable the preservation of protected trees and historic resource, which are in alignment with existing policies in the SOFA I and Comprehensive Plan. Though his comments were not included in the formal motion City of Palo Alto Page 4 for recommendation, PTC commissioners suggested inclusion of these comments in Council staff report. The PTC also acknowledged that: - Additions and alterations to the front façade are generally discouraged as they would alter the character of a building having historic merit. - Along with the R-2 zone regulations, the oddly shaped lot and the location of existing structures limit the configuration of floor area on the ground floor. - The recommended 35-foot TPZ constitutes the remaining undisturbed open area that is crucial to preserve the two protected trees, but will limit buildable area at the rear side. - Aside from the variance requests, the first- and second- floor additions substantially comply with the R-2 zoning regulations and other applicable requirements. - The first-floor addition would replace an existing and similar side-setback encroachment, extend to the edge of the TPZ, and enable detached garage access. - The second-floor addition, with an appropriate height within the daylight planes and permitted building envelope, will respect the privacy and scale of neighboring properties. - Granting a variance to allow a second story addition for this property is appropriate relative to other design options that will further intrude into the tree protection zone. The excerpt minutes of the PTC hearing on February 26, 2020 are attached (Attachment D). City Council Purview: The Council’s purview is limited to the variance request allowing: (1) A second-story addition with a height of 26 feet 8 ¼ inches on a substandard lot, on which development is limited to one habitable floor with a maximum height of 17 feet, and (2) An approximately 6’-4” horizontal extension to the existing noncomplying first floor and basement walls on the west elevation that encroaches 2’-6” into the required six-foot, right-side yard setback. City Council is requested to approve the variance on consent calendar, consistent with existing municipal code procedures. Three councilmembers would be needed to pull the item off the consent agenda to schedule a public hearing. Policy Implications: The process for evaluating a variance is set forth in PAMC Chapter 18.76.030. A variance is intended to provide a way for a site with special physical constraints to be used in ways similar to other sites in the same vicinity and zoning district. Variances provide a way to grant relief from strict application of the zoning regulations. Strict application of codes can subject City of Palo Alto Page 5 development of a site to substantial hardships, constraints, or practical difficulties that do not normally arise on other sites in the same vicinity and zoning district. Variance applications are evaluated to specific findings. All findings must be made in the affirmative to approve the project. City Council may approve the variance requests, as recommended by staff and PTC, in accordance to the objectives and findings for variance as outlined in the Municipal Code. Timeline: If three Council members vote to remove the project from the consent calendar, the Council would have the opportunity to hold a future public hearing on the variance application. If approved on consent, the decision is effective immediately. Environmental Review: Staff assessed the potential impacts of the subject project in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), the State CEQA Guidelines, and the environmental regulations of the City. The project is exempt from the provisions of the California Environmental Quality Act per CEQA Guidelines Section 15301(e) (Additions to Existing Structure). Attachments: Attachment A - Record of Land Use Action Attachment B - Proposed Director's Approval Letter and Findings dated January 15, 2020 Attachment C - Hearing Requestor Letter dated February 3, 2020 Attachment D - Excerpt Minutues of PTC Hearing dated February 26, 2020 Attachment E - Project Plans Attachment A Draft ACTION NO. 2020-_______: RECORD OF THE COUNCIL OF THE CITY OF PALO ALTO LAND USE ACTION 840 KIPLING STREET 18PLN-00185 VARIANCE, INDIVIDUAL REVIEW AND HISTORIC REVIEW On April 20, 2020, the City Council held a duly noticed public hearing, and after considering all of the evidence presented, upheld the Planning and Development Services (PDS) Director’s January 15, 2020 decisions to approve Variance to allow (1) a second-story addition to a historic home on a substandard, irregular lot; and (2) an horizontal extension of a noncomplying wall that encroaches 2’-6” into a 6-foot side setback (File No. 18PLN-00185). SECTION 1. Background. The City Council of the City of Palo Alto (“City Council”) make the following findings, determination and declarations: A. On June 6, 2018, the applicant filed Variance, Individual Review and Historic Review Applications for exterior modifications and additions to a historic residence on a substandard, irregular Lot in the R-2 zone district within the boundaries of South of Forest Area I Coordinated Area Plan (SOFA I). B. The project was reviewed by Staff in conformance to applicable zoning and municipal code requirements, including the Single-Family Individual Review Guidelines and the Variance regulations set forth in the Palo Alto Municipal Code Chapter 18.76.030. C. On January 15, 2020, the PDS Director tentatively approved the applications, following review by the Historic Resource Board on February 14, 2019 and December 12, 2019. Notices of the Director’s decision were mailed to adjacent neighbors. D. Timely hearing requests on both Variance and Individual Review applications were made by a representative of the neighboring property at 441 Channing Avenue. E. The Planning and Transportation Commission (PTC) is the reviewing body for Variance applications for which a hearing has been requested after the Director has issued a tentative decision. On February 26, 2020, the PTC held a duly noticed public hearing, at which evidence was presented and all person were afforded an opportunity to be heard in accordance with the Palo Alto Municipal Code and the Council’s Policies and Procedures. F. A Director’s Hearing is the reviewing body for Individual Review applications for which a hearing has been requested after the Director has issued a tentative decision. A Director’s Hearing was initially scheduled on March 5, 2020. However, the hearing Attachment A requestor withdrew the hearing request following the PTC hearing on February 26, 2020. G. On April 20, 2020, the City Council held a duly noticed public hearing to act on the Variance application, at which evidence was presented and all persons were afforded an opportunity to be heard in accordance with the Palo Alto Municipal Code and the Council’s Policies and Procedures. The decision on the Variance, Individual Review and Historic Review applications will become final upon City Council’s approval on the Variance application. SECTION 2. Environmental Review. The project is exempt from the provisions of the California Environmental Quality Act per CEQA Guidelines Section 15301(e) (Additions to Existing Structure). SECTION 3. Variance Findings. 1. Because of special circumstances applicable to the subject property, including (but not limited to) size, shape, topography, location, or surroundings, the strict application of the requirements and regulations prescribed in this title substantially deprives such property of privileges enjoyed by other property in the vicinity and in the same zoning district as the subject property. Special circumstances that are expressly excluded from consideration are: (A) The personal circumstances of the property owner, and (B) Any changes in the size or shape of the subject property made by the property owner or his predecessors in interest while the property was subject to the same zoning designation. The subject site was developed in 1912 with a detached garage and a single-story residence that is non-complying with regards to the right-side yard setback. The subject site has a lot area of 4,893 square feet (SF) and a lot width of 39.5 feet. The site is considered as substandard because it does not meet the minimum lot width of 50 feet and the lot area is less than 4,980 SF (83% of the minimum 6,000 SF) than what are allowed in the R-2 zoning district. Most of the substandard lots found on this block have a lot width of 25’ and the lot areas are ranging from approximately 1,970 SF to 2,840 SF, where the remaining properties on this block have a consistent lot width of 50’ and consistent lot area of 5,625 SF. The subject property with a lot width of 39.5’ and lot area of 4,983 SF is unique to the general lot pattern found in the neighborhood, which offers reasonable space for a second story addition to meet the daylight plane requirement unlike other substandard lots in the area. The subject property includes a residence with historic merit. In order to be consistent with the Secretary of Interior’s Standards for Rehabilitation (SOI standards), additions and alterations to the front façade are generally discouraged as they would alter the historic Attachment A character of the building. Therefore, this historic home is limited to expansion on the rear part of the building. The subject property is the only lot on the block that has a non-rectangular shape. The oddly shaped lot includes setbacks that limit the configuration of buildable area. Furthermore, two protected redwood trees in diameters of 42” and 26” are identified in the rear side of the subject property. These trees share a tree protection zone (TPZ) of 35’ in radius. After considering prior impacts and existing intrusions to the root system within the TPZ area, the 27% of undisturbed area is crucial to maintain for the preservation of these trees. The TPZ of 35’ in radius in the rear yard limits the property owner’s ability to construction by approximately 530 SF of the 2268 SF buildable area on the subject property. The purpose of the granting of a variance, as outlined in PAMC Section 18.76.030(a) is to provide a way to grant relief when strict application of the zoning regulation would subject development of a site to substantial hardships, constraints, or practical difficulties that do not normally arise on other sites in the vicinity and same zoning district. As noted above, the subject property may share similar zoning and historic characteristics as other properties within the immediately vicinity. While the unique size present opportunities for expansion, the shape and natural surrounding impose constraints to the configuration and the size of the buildable area. These site characteristics differentiate this property from other substandard and regular lots within the same zoning district. 2. The granting of the application shall not affect substantial compliance with the regulations or constitutes a grant of special privileges inconsistent with the limitations upon other properties in the vicinity and in the same zoning district as the subject property, and The R-2 zoning regulation prohibits second floor additions on substandard lots and encourages expansion on the ground floor. As noted above, the subject property presents various limitations for expansion on the ground floor. With the loss of approximately 530 SF development potential within the buildable area on the ground floor, the project will expand about 184 SF on the first floor outside of the TPZ to preserve the protected trees and requests a 489 SF addition (roughly 22% of total floor area) to be placed on the second floor. The additions would be built within the limitations set forth for floor area and lot coverage in the R-2 zoning district. The granting of second story addition is in compliance with the regulations of daylight planes and setbacks. The project with a variance request to exceed the 17-foot height limit is a privilege that is supported by other properties in the immediate neighborhood. The proposed second floor addition is consistent with the height restriction for two-story development in the R-2 zoning district. It will not constitute a grant of privileges inconsistent with the limitation upon other properties in the vicinity and in the same zoning district as the subject property. Attachment A The granting of an approximate 6 foot extension of the existing legal non-complying wall, that is setback 3.5 feet from the west side property line, is minor in nature. The project with a variance request to encroach into the right side yard would replace an existing encroachment. This request would normally fit within the specific limits set forth for Home Improvement Exception. The design of this small addition will be consistent with the SOI standards. With the objective to locate available floor area for the site on the first floor, the granting of this extension will not constitute a grant of privileges inconsistent with the limitation upon other properties in the vicinity and in the same zoning district as the subject property. 3. The granting of the application is consistent with the Palo Alto Comprehensive Plan and the purposes of this title (Zoning), and The project is generally consistent with the objectives and relevant policies in the Comprehensive Plan. The project will rehabilitate a residence with historic merit by preserving its historic integrity consistent with the SOI Standards (Policy L-2.9, L-6.4, L-7.1, L-7.8). The proposed site plan is sensitive to surrounding landscape and will minimize impact to two protected trees (Policy N-2.9, N-2.10). The project includes additions with appropriate scale and height that are compatible with the neighborhood and adjacent structures (Policy L-3.1, L-6.1). The proposed additions will preserve natural light exposure for nearby single-family residences by complying to current regulations for daylight planes and setbacks (Policy L-6.8). The project is consistent with the Comprehensive Plan as a whole. The subject property is located within the South of Forest Area Phase I Coordinated Area Plan (SOFA I CAP) area. It is in a transitional area between R-2 and DHS (Detached Housing on Small Lots) zoning districts. The project, with increased living space, will support a range of housing options for various ages, household sizes, lifestyles and incomes in the neighborhood (Policy H-6). Through a request of granting exception to development standards, the project will reconfigure the house footprint and massing to preserve significant trees (Policy DC-7). The project is designed to be consistent with the SOI standards, which will reinforce its original architectural style and use (Policy DC-9). Overall, the project is compatible with the historical patterns of the surrounding single-family areas and is generally consistent with the SOFA I CAP objectives and policies. The purpose of R-2 zoning district is ‘intended to allow a second dwelling unit under the same ownership as the initial dwelling unit on appropriate sites in areas designated for single-family use by the Palo Alto Comprehensive Plan, under regulations that preserve the essential character of single-family use.’ (PAMC 18.10.010(b)). The project will maintain its original use as single-family residential and the proposed additions will be consistent with the existing architecture to preserve the essential character of single-family use. Although two dwelling unit is encouraged on appropriate sites within the area, the project site will not meet the minimum site area of 7,500 square feet, that was established by the Attachment A Comprehensive Plan (Housing Element) and R-2 zoning regulations, to permit additional residential units. The project may; however, include a separate, self-contained accessory dwelling unit for rental. Such option is available but is not mandatory for developments in the R-2 zoning district. Given the site constraints, the project is generally consistent with the purpose of R-2 zoning regulations. 4. The granting of the application will not be detrimental or injurious to property or improvements in the vicinity, will not be detrimental to the public health, safety, general welfare, or convenience. The granting of the variance application would not be detrimental or injurious to property or improvements in the vicinity. The subject property is not located in proximity to designated view corridors or scenic routes. Obstructed view from neighboring properties is not considered as detrimental or injurious in nature. Though, the granting of the variance application shall consider neighbor’s concerns with respect to privacy, height and scale at the neighborhood scale. The proposed additions are in substantial compliance with the five Individual Review Guidelines for single-family homes with the goals to promote new construction that is compatible with existing residential neighborhoods. The proposed second story window size and placement with above 5’ sill height on both left and right elevations will mitigate privacy impact by minimizing the opportunity for direct sight lines into windows and patios of neighboring properties. The proposed second floor addition is rectangular in shape and is setback from the first floor wall planes so that massing is not highly expressed from all sides. In addition, the proposed second floor addition will be built within the required side and rear daylight planes at a height of about 26’-8”. The existing building height is 18’ and the height limit for two-story development in the R-2 zoning district is 30’. The overall height is still considerably lower than some nearby homes on this block. The existing west side wall is setback 3’ 6” from the west interior property line, therefore this wall is non-conforming. The project will replace one window on this existing wall. This replacement will not exceed the thresholds contained within Code Section 18.70.100, therefore the wall may remain. Additionally, an approximate 6 foot extension to this existing 40.5 foot wall will be added to the rear part of the home and will not be visible from the street. The proposed extension will not decrease privacy and the scale is compatible with the existing home. The proposed extension will not be detrimental to public health and safety, general welfare or convenience. As conditioned, the project is required to be in compliance with the Municipal Code and other relevant regulations. The proposed additions are not found to pose potential risk to public health, safety, general welfare or convenience. The granting of the variance Attachment A application would not be detrimental or injurious to property or improvements in the vicinity. SECTION 4. CONDITIONS OF APPROVAL PLANNING DIVISION CONDITIONS: 1. CONFORMANCE WITH PLANS. Construction and development shall conform to the approved plans entitled, “Reyna/Kutlu Residence, 840 Kipling Street, Palo Alto, CA 94301, APN 120-17-028,” stamped as received by the City on November 20, 2019 on file with the Planning Department, 250 Hamilton Avenue, Palo Alto, California except as modified by these conditions of approval. 2. BUILDING PERMIT. Apply for a building permit and meet any and all conditions of the Planning, Fire, Public Works, and Building Departments. 3. BUILDING PERMIT PLAN SET. A copy of this cover letter and conditions of approval shall be printed on the second page of the plans submitted for building permit. Project plans submitted for Building permits shall incorporate the following changes: a. Eliminate all windows in the proposed stairway under the gable on the east elevation b. Replicate the size and style of the existing small historic window on the east elevation (Sheet A5) and locate the said window in the proposed new bathroom on the first floor. c. Allow the relocation of existing double French doors from the proposed entry hall to the living room on the first floor. d. Allow the relocation of the single door from the proposed living room to the entry hall on the first floor. A new sidelite shall be installed to fill in the existing opening facing the street. 4. HISTORIC BUILDING. As conditioned above (Condition #3), all exterior alterations and additions proposed in the building permit submittal shall be in substantial compliance with the Secretary of the Interior’s Standards for Rehabilitation. All exterior changes shall not impact the historic nature of existing home and shall not affect the primary façade that retains architectural integrity. Any work involving with the removal or modification of the historic character of the existing home is subject to review by the Chief Planning Official for compliance with the Secretary of the Interior Standards. 5. SOI STANDARDS. The ten Secretary of the Interior’s (SOI) Standards for Rehabilitation shall be printed on one of the initial sheets of the Building Permit Plan Set. 6. NONCOMPLYING FACILITY WALLS. The applicant has agreed to maintain all non-complying walls with the exception of proposed windows changes as shown on Sheet A5.2. These Attachment A improvements have been reviewed and found to be in conformance with PAMC Section 18.70.100(b) as described below. Any additional changes would require prior Planning approval. a. When the damage or destruction of a noncomplying facility affects a portion of the facility that constituted or contributed to the noncompliance, any replacement or reconstruction to such damaged portion shall be accomplished in such manner as not to reinstate the noncompliance or degree of noncompliance caused by the destroyed or damaged portion of the facility, and otherwise in full compliance with this title; however, if the cost to replace or reconstruct the noncomplying portion of the facility to its previous configuration does not exceed fifty percent of the total cost to replace or reconstruct the facility in conformance with this subsection, then the damaged noncomplying portion may be replaced or reconstructed to its previous configuration. In no event shall such replacement or construction create, cause, or increase any noncompliance with the requirements of this title. 7. PROJECT MODIFICATIONS. All modifications to the approved project shall be submitted for review and approval prior to construction. If during the Building Permit review and construction phase, the project is modified by the applicant, it is the responsibility of the applicant to contact the Planning Division/project planner directly to obtain approval of the project modification. It is the applicant’s responsibility to highlight any proposed changes to the project and to bring it to the project planner’s attention. 8. REQUIRED PARKING. All single family homes shall be provided with a minimum of one covered parking space (10 foot by 20 foot interior dimensions) and one uncovered parking space (8.5 feet by 17.5 feet). 9. UTILITY LOCATIONS. In no case shall utilities be placed in a location that requires equipment and/or bollards to encroach into a required parking space. In no case shall a pipeline be placed within 10 feet of a proposed tree and/or tree designated to remain. 10. NOISE PRODUCING EQUIPMENT. All noise producing equipment shall be located outside of required setbacks, except they may project 6 feet into the required street side setbacks. In accordance with Section 9.10.030, No person shall produce, suffer or allow to be produced by any machine, animal or device, or any combination of same, on residential property, a noise level more than six dB above the local ambient at any point outside of the property plane. 11. DAYLIGHT PLANE. The daylight plane must clear the point where the wall plane intersects the top of the roof material. 12. IMPERVIOUS SURFACE. A minimum of 60 % of the required front yard shall have a permeable surface that permits water absorption directly into the soil (Section 18.12.040 (h)). The building permit plan set shall include a diagram demonstrating compliance. Attachment A 13. REQUIRED IR LANDSCAPING/TREES. The following landscaping is required to ensure the project’s conformance with the City’s IR Guidelines and therefore must remain for the life of the structure. Required screening trees and shrubs shall be a minimum size of 24 inch box and measure at least eight (8) feet tall. a. All shrubs and/or trees, shown on the site plan, shall be maintained on the property. b. Two existing redwood trees protected by construction fencing located along the rear property line on the site plan shall be maintained. 14. NO NET LOSS OF CANOPY. Any proposal of tree removal must be reviewed or approved by Planning Division prior to signing off the final inspection for the building permit. 15. PROJECT ARBORIST. The property owner shall hire a certified arborist to ensure the project conforms to all Planning and Urban Forestry conditions related to landscaping/trees. 16. TREE PROTECTION FENCING. Tree protection fencing shall be required for the front street tree and the rear yard redwood trees. 17. FENCES. Fences and walls shall comply with the applicable provisions of Chapter 16.24, Fences, of the Palo Alto Municipal Code (PAMC). Heights of all new and existing fencing must be shown on the Building Permit plans. a. Where the existing fence is located off the subject property and/or where the existing fence is failing, a new Code compliant fence shall be constructed. 18. BASEMENT WALLS: Basement retaining walls shall not extend beyond the exterior wall plane of the first floor of the house, excluding lightwells, below grade patios and approved extensions, to the satisfaction of the Director of Planning. 19. BASEMENT CONSTRUCTION WALLS: Any walls, temporary or otherwise, installed to facilitate construction of a basement shall be removed or constructed in such a way as to not significantly restrict the growth of required landscaping, to the satisfaction of the Director of Planning. 20. DECONSTRUCTION SURVEY: A Deconstruction Survey is required for demolition permit applications submitted on or after January 1, 2017. This survey submittal shall include a list of materials that are salvageable from the project as well as the values of such materials. At this time, the City’s only approved vendor for this service is The ReUse People. Contact them to schedule this FREE service by phone (888)588-9490 or e-mail info@thereusepeople.org. More information can be found at www.TheReusePeople.org. If you have further questions, please contact Scott McKay at scott.mckay@cityofpaloalto.org. 21. PLANNING FINAL INSPECTION. A Planning Division Final inspection will be required to determine substantial compliance with the approved plans prior to the scheduling of a Attachment A Building Division final. Any revisions during the building process must be approved by Planning, including but not limited to; materials, fenestration and hard surface locations. Contact your Project Planner at the number below to schedule this inspection. 22. PERMIT EXPIRATION. The project approval shall be valid for a period of two years from the original date of approval. Application for a one year extension of this entitlement may be made prior to expiration, by emailing the Current Planning Support Staff (Alicia Spotwood - Alicia.Spotwood@CityofPaloAlto.org). If a timely extension is not received, or the project has already received an extension and the applicant still wishes to pursue this project, they must first file for a new Planning application and pay the associated fees. This new application will be reviewed for conformance with the regulations in place at that time. 23. INDEMNITY: To the extent permitted by law, the Applicant shall indemnify and hold harmless the City, its City Council, its officers, employees and agents (the “indemnified parties”) from and against any claim, action, or proceeding brought by a third party against the indemnified parties and the applicant to attack, set aside or void, any permit or approval authorized hereby for the Project, including (without limitation) reimbursing the City for its actual attorneys’ fees and costs incurred in defense of the litigation. The City may, in its sole discretion, elect to defend any such action with attorneys of its own choice. GREEN BUILDING & ENERGY REACH CODE REQUIREMENTS: NOTICE FOR PERMIT APPLICATIONS SUBMITTED ON OR AFTER 1/1/17: Please be advised that the Palo Alto City Council has approved Energy Ordinance 5383 and Green Building Ordinance 5393 for all new permit applications with an effective date for January 1st, 2017. To review the upcoming changes, visit the Development Services webpage .On the left-hand side under “EXPLORE”, hover over “Green Building” and select “Compliance.” For information regarding the Model Water Efficient Landscape Ordinance, please see the Outdoor Water Efficiency Webpage for compliance documentation. You may also email Green Building at GreenBuilding@cityofpaloalto.org for specific questions about your project. 24. GREEN BUILDING CONDITIONS OF APPROVAL a) The project is a residential addition or alterations that increased the building’s conditioned area volume, or size and the altered area is less than 1000 square feet and therefore must meet the California Green Building Code mandatory requirements outlined in Chapter 4, (with local amendments). (Ord. 5393 §1, 2016) b) Model Water Efficient Landscape Ordinance (MWELO): The project is a residential new construction project with an aggregate landscape area of 500 square feet or more included in the project scope of work and therefore shall comply with the requirements of the Landscape Documentation Package (§492.3). Please see the Outdoor Water Efficiency Webpage for compliance documentation. (MWELO Title 23, Chapter 2.7) Attachment A c) The project includes a residential alteration or addition that is not considered a repair or maintenance and therefore the building permit applicant shall replace all noncompliant plumbing fixtures within the building with water conserving plumbing fixtures in compliance with California Senate Bill 407. (SB 407/California Civil Code Sections 1101.1 through 1101.8, 2013 CGBC Section 301) d) The project is a residential construction project of any size and therefore must meet the enhanced construction waste reduction at Tier 2 (80% construction waste reduction). PAMC 16.14.260 (Ord. 5393 § 1 (part), 2016) 25. LOCAL ENERGY REACH CODE CONDITIONS OF APPROVAL a) The project includes new residential construction of any size and therefore triggers the Local Energy Efficiency Reach Code. For all new single-family residential there are two compliance options and one all-electric exception. i) Single-Family Residential Options: (1) OPTION 1: Performance: New single- family residential construction projects without a solar photovoltaic (PV) system, the performance approach specified within the 2016 California Energy Code shall be used to demonstrate that the TDV Energy of the proposed building is at least 10% less than the TDV Energy of the Standard Design, if the proposed building does not include a PV systems. (a) Solar Ready Infrastructure: A dedicated solar zone shall be located on the rood or overhang of the building and have a total area no less than 500 square feet. Install a conduit extending from the roofline and terminating at the electrical panel. (2) OPTION 2: Performance: New single- family residential construction projects with a solar photovoltaic (PV) system, the performance approach specified within the 2016 California Energy Code shall be used to demonstrate that the TDV Energy of proposed single-family residential construction is at least 20% less than the TDV Energy of the Standard Design, if the proposed building includes a photovoltaic system. (a) Solar Ready Infrastructure: A dedicated solar zone shall be located on the rood or overhang of the building and have a total area no less than 500 square feet. Install a conduit extending from the roofline and terminating at the electrical panel. b) All Electric Exemption: i) All- Electric Exception to the Local Energy Reach Code: New single-family residential construction that is designed and built to be all-electric shall be exempt from the requirements of Section 100.3. Local Energy Efficiency Reach Code. 26. Additional Green Building and Energy Reach Code information, ordinances and applications can be found at http://www.cityofpaloalto.org/gov/depts/ds/green_building/default.asp. If Attachment A you have any questions regarding Green Building requirements please call the Green Building Consultant at (650) 329-2179. PUBLIC WORKS URBAN FORESTRY CONDITIONS – Walter Passmore walter.passmore@cityofpaloalto.org PRIOR TO DEMOLITION, BUILDING OR GRADING PERMIT ISSUANCE 27. TREE PROTECTION COMPLIANCE. The owner and contractor shall implement all protection and inspection schedule measures, design recommendations and construction scheduling as stated in the TPR & Sheet T-1, and is subject to code compliance action pursuant to PAMC 8.10.080. The required protective fencing shall remain in place until final landscaping and inspection of the project. Project arborist approval must be obtained and documented in the monthly activity report sent to the City. The mandatory Contractor and Arborist Monthly Tree Activity Report shall be sent monthly to the City (pwps@cityofpaloalto.org) beginning with the initial verification approval, using the template in the Tree Technical Manual, Addendum 11. 28. PLAN CHANGES. Revisions and/or changes to plans before or during construction shall be reviewed and responded to by the (a) project site arborist, or (b) landscape architect with written letter of acceptance before submitting the revision to the Building Department for review by Planning, PW or Urban Forestry. 29. TREE DAMAGE. Tree Damage, Injury Mitigation and Inspections apply to Contractor. Reporting, injury mitigation measures and arborist inspection schedule (1-5) apply pursuant to TTM, Section 2.20-2.30. Contractor shall be responsible for the repair or replacement of any publicly owned or protected trees that are damaged during the course of construction, pursuant to Title 8 of the Palo Alto Municipal Code, and city Tree Technical Manual, Section 2.25. 30. GENERAL. The following general tree preservation measures apply to all trees to be retained: No storage of material, topsoil, vehicles or equipment shall be permitted within the tree enclosure area. The ground under and around the tree canopy area shall not be altered. Trees to be retained shall be irrigated, aerated and maintained as necessary to ensure survival. Minimal excavation work shall be allowed within the tree enclosure area. Air, water movement to the soil and soil compaction shall be protected to the possible extent. Landscape changes may enhance root growth or health in areas outside the limit of construction. The project arborist shall be responsible for supervising any construction activities within the tree protection zone. 31. BUILDING PERMIT SUBMITTAL- PROJECT ARBORIST CERTIFICATION LETTER. Prior to submittal for staff review, attach a Project Arborist Certification Letter that he/she has; (a) reviewed the entire building permit plan set submittal and, (b) affirm that ongoing Contractor/Project Arborist site monitoring inspections and reporting have been arranged with the contractor or owner (see Sheet T-1) and, (c) understands that design revisions (site Attachment A or plan changes) within a TPZ will be routed to Project Arborist/Contractor for review prior to approval from City. 32. TREE PROTECTION VERIFICATION. Prior to any site work verification from the contractor that the required protective fencing is in place shall be submitted to the Urban Forestry Section. The fencing shall contain required warning sign and remain in place until final inspection of the project. 33. EXCAVATION RESTRICTIONS APPLY (TTM, Sec. 2.20 C & D). Any approved grading, digging or trenching beneath a tree canopy shall be performed using ‘air-spade’ method as a preference, with manual hand shovel as a backup. For utility trenching, including sewer line, roots exposed with diameter of 1.5 inches and greater shall remain intact and not be damaged. If directional boring method is used to tunnel beneath roots, then Table 2-1, Trenching and Tunneling Distance, shall be printed on the final plans to be implemented by Contractor. PRIOR TO OCCUPANCY 34. PROJECT ARBORIST INSPECTION LETTER. The contractor shall call for a final inspection by the Project Arborist to evaluate all trees to be retained and protected, as indicated in the approved plans, of the activity, health, welfare, mitigation remedies for injuries, if any, and for the long term care of the trees for the new owner. The final project arborist letter report shall be provided to the Planning Department prior to written request for temporary or final occupancy. The final report may be used to navigate any outstanding issues, concerns or security guarantee return process, when applicable. PUBLIC WORKS ENGINEERING CONDITIONS – Christina Thurman Christina.thurman@cityofpaloalto.org 35. GRADING & DRAINAGE PLAN: The plan set must include a basic grading & drainage plan that includes drainage flow arrows to demonstrate proper drainage of the site. Adjacent grades must slope away from the house a minimum of 2% or 5% for 10-feet per 2013 CBC section 1804.3. Downspouts and splash blocks should be shown on this plan, as well as any site drainage features such as swales, area drains, bubblers, etc. Grading that increases drainage onto, or blocks existing drainage from neighboring properties, will not be allowed. Public Works generally does not allow rainwater to be collected and discharged into the street gutter, but encourages the developer to keep rainwater onsite as much as feasible by directing runoff to landscaped and other pervious areas of the site. See the Grading & Drainage Plan Guidelines for New Single Family Residences on the City’s website. http://www.cityofpaloalto.org/civicax/filebank/documents/2717 36. Provide the following note on the Site Plan and adjacent to the work within the Public road rightof-way. “Any construction within the city’s public road right-of-way shall have an approved Permit for Construction in the Public Street prior to commencement of this work. Attachment A THE PERFORMANCE OF THIS WORK IS NOT AUTHORIZED BY THE BUILDING PERMIT ISSUANCE BUT SHOWN ON THE BUILDING PERMIT FOR INFORMATION ONLY.” 37. Provide the following note on the Site Plan and Grading and Drainage Plan: “Contractor shall not stage, store, or stockpile any material or equipment within the public road right-of- way.” Construction phasing shall be coordinate to keep materials and equipment onsite. 38. STORM WATER POLLUTION PREVENTION: The City's full-sized "Pollution Prevention - It's Part of the Plan" sheet must be included in the plan set. Copies are available from Public Works on our website http://www.cityofpaloalto.org/civicax/filebank/documents/2732 5. 39. Provide the following as a note on the Site Plan: “The contractor may be required to submit a logistics plan to the Public Works Department prior to commencing work that addresses all impacts to the City’s right-of-way, including, but not limited to: pedestrian control, traffic control, truck routes, material deliveries, contractor’s parking, concrete pours, crane lifts, work hours, noise control, dust control, storm water pollution prevention, contractor’s contact, noticing of affected surrounding properties , and schedule of work. The requirement to submit a logistics plan will be dependent on the number of applications Public Works Engineering receives within close proximity to help mitigate and control the impact to the public-right-of-way. If necessary, Public Works may require a Logistics Plan during construction.” PUBLIC WORKS ELECTRIC ENGINEERING CONDITIONS –Gregory McKernan Gregory.mckernan@cityofpaloalto.org GENERAL 40. The applicant shall comply with all the Electric Utility Engineering Department service requirements noted during plan review. 41. The applicant shall be responsible for identification and location of all utilities, both public and private, within the work area. Prior to any excavation work at the site, the applicant shall contact Underground Service Alert (USA) at 1-800-227-2600, at least 48 hours prior to beginning work. 42. The applicant shall submit a request to disconnect all existing utility services and/or meters including a signed affidavit of vacancy, on the form provided by the Building Inspection Division. Utilities will be disconnected or removed within 10 working days after receipt of request. The demolition permit will be issued after all utility services and/or meters have been disconnected and removed. SUBMITTALS FOR ELECTRIC SERVICE 43. A completed Electric Load Sheet and a full set of plans must be included with all applications involving electrical work. The load sheet must be included with the preliminary submittal. Attachment A 44. Only one electric service lateral is permitted per parcel. Utilities Rule & Regulation #18. 45. If this project requires padmount transformers, the location of the transformers shall be shown on the site plan and approved by the Utilities Department and the Architectural Review Board. Utilities Rule & Regulations #3 & #16 (see detail comments below). 46. The developer/owner shall provide space for installing padmount equipment (i.e. transformers, switches, and interrupters) and associated substructure as required by the City. 47. The customer shall install all electrical substructures (conduits, boxes and pads) required from the service point to the customer’s switchgear. The design and installation shall be according to the City standards and shown on plans. Utilities Rule & Regulations #16 & #18. 48. Location of the electric panel/switchboard shall be shown on the site plan and approved by the Architectural Review Board and Utilities Department. 49. All utility meters, lines, transformers, backflow preventers, and any other required equipment shall be shown on the landscape and irrigation plans and shall show that no conflict will occur between the utilities and landscape materials. In addition, all aboveground equipment shall be screened in a manner that is consistent with the building design and setback requirements. 50. For underground services, no more than four (4) 750 MCM conductors per phase can be connected to the transformer secondary terminals; otherwise, bus duct must be used for connections to padmount transformers. If customer installs a bus duct directly between the transformer secondary terminals and the main switchgear, the installation of a transition cabinet will not be required. 51. The customer is responsible for sizing the service conductors and other required equipment according to the National Electric Code requirements and the City standards. Utilities Rule & Regulation #18. 52. Any additional facilities and services requested by the Applicant that are beyond what the utility deems standard facilities will be subject to Special Facilities charges. The Special Facilities charges include the cost of installing the additional facilities as well as the cost of ownership. Utilities Rule & Regulation #20. 53. Projects that require the extension of high voltage primary distribution lines or reinforcement of offsite electric facilities will be at the customer’s expense and must be coordinated with the Electric Utility. Attachment A DURING CONSTRUCTION Contractors and developers shall obtain permit from the Department of Public Works before digging in the street right-of-way. This includes sidewalks, driveways and planter strips. 54. At least 48 hours prior to starting any excavation, the customer must call Underground Service Alert (USA) at 1-800-227-2600 to have existing underground utilities located and marked. The areas to be check by USA shall be delineated with white paint. All USA markings shall be removed by the customer or contractor when construction is complete. 55. The customer is responsible for installing all on-site substructures (conduits, boxes and pads) required for the electric service. No more than 270 degrees of bends are allowed in a secondary conduit run. All conduits must be sized according to National Electric Code Page 3 of 3 requirements and no 1/2 – inch size conduits are permitted. All off-site substructure work will be constructed by the City at the customer’s expense. Where mutually agreed upon by the City and the Applicant, all or part of the off-site substructure work may be constructed by the Applicant. 56. All new underground conduits and substructures shall be installed per City standards and shall be inspected by the Electrical Underground Inspector before backfilling. 57. The customer is responsible for installing all underground electric service conductors and other required equipment. The installation shall meet the National Electric Code and the City Standards. 58. Meter and switchboard requirements shall be in accordance with Electric Utility Service Equipment Requirements Committee (EUSERC) drawings accepted by Utility and CPA standards for meter installations. 59. Shop/factory drawings for switchboards (400A and greater) and associated hardware must be submitted for review and approval prior to installing the switchgear to: Gregory McKernan, P.E. Power Engineer Utilities Engineering (Electrical) 1007 Elwell Court Palo Alto, CA 94303 60. Catalog cut sheets may not be substituted for factory drawing submittal. 61. All new underground electric services shall be inspected and approved by both the Building Inspection Division and the Electrical Underground Inspector before energizing. AFTER CONSTRUCTION & PRIOR TO FINALIZATION 62. The customer shall provide as-built drawings showing the location of all switchboards, conduits (number and size), conductors (number and size), splice boxes, vaults and switch/transformer pads. PRIOR TO ISSUANCE OF BUILDING OCCUPANCY PERMIT 1. The applicant shall secure a Public Utilities Easement for facilities installed on private property for City use. Attachment A 63. All required inspections have been completed and approved by both the Building Inspection Division and the Electrical Underground Inspector. 64. All fees must be paid. 65. All Special Facilities contracts or other agreements need to be signed by the City and applicant. SECTION 5. Variance Approved. This Record finds that the project was approved with conditions. INTRODUCED AND PASSED: AYES: () NOES: () ABSENT: ABSTENTIONS: ATTEST: City Clerk Mayor APPROVED AS TO FORM: APPROVED: __________________________ ____________________________ Deputy City Attorney City Manager ____________________________ Director of Planning and Development Services ____________________________ Director of Administrative Services Attachment B Attachment B Attachment B Attachment B Attachment B Attachment B Attachment B Attachment B Attachment B Attachment B Attachment B Attachment B Attachment B Attachment B Law Offices Of Charles S. Bronitsky Telephone 533 Airport Blvd, Suite 326 Fax (650) 918-5760 Burlingame, California 94010 (650) 649-2316 www.bronitskylaw.com February 3, 2020 Planning and Traffic Commission City of Palo Alto Planning & Community Environment 250 Hamilton Avenue Palo Alto, CA 94301 Re: 840 Kipling Street - 18PLN-00185 Dear Chair and PTC Members: I am writing today on behalf of Alexander Gubbens and Karen Han, owners of 441 Channing Avenue, in connection with the variance and Historic Resource applications submitted by the owners of 840 Kipling Street, their immediate neighbors. The owners of 840 Kipling are seeking a variance to add a 489 square foot second story to their property. The applications have been conditionally approved by City Staff. Mr. Gubbens and Ms. Han want to make it clear that they do not oppose an addition. Rather, they oppose a second story addition for the simple reason that the ground floor has ample space on which to build an addition, whereas a second story requires a variance and would be injurious to the value and enjoyment of the Gubbens/Han home. It is important to note at the outset that Mr. Gubbens and Ms. Han first informed the owners of 840 Kipling of their opposition to a second story addition in January 2016 and proactively informed the City’s Planning Department of their concerns back in May 2017, more than a year before any plans were even submitted. Mr. Gubbens and Ms. Han have, since the very beginning, supported an addition on the ground floor. Despite this, the property owners have steadfastly refused to look at options available to them that would avoid a second story and use more of the ground floor. From various written communication Mr. Gubbens and Ms. Han have seen they are further concerned that the owners of 840 Kipling were not required to fully study a number of feasible alternatives to a second story addition but were instead required to make only minor revisions to their design and obtain conditional approval of their proposed second- story addition. Since a variance should be a last resort, City Staff should have required additional studies be done. Mr. Gubbens and Ms. Han believe, as shown below, that such a zoning-compliant reward Attachment C Planning and Transportation Commission February 3, 2020 Page 2 expansion is highly feasible and should be explored. Thus, we are asking that the PTC deny the variance. 840 Kipling is zoned R-2 which Zone is entitled “Low Density Residential”. 840 Kipling is also part of the South of Forest Avenue Coordinated Area Plan Phase I (“SOFA I CAP”) and has been determined to be an historic property by the Historic Resources Board (“HRB”). Within the R-2 zone 840 Kipling, is a substandard lot meaning that it is less than 50 feet wide and the total area of the lot is less than 83% of the minimum lot size. (Palo Alto Municipal Code §18.10.040(b)(1)(A)). Thus, to even be classified as a substandard lot is already a statement that the lot is very small. Palo Alto Municipal Code § 18.10 contains the regulations that determine what can and cannot be built on 840 Kipling. § 18.10.040(a) provides that the minimum lot size for an R-2 zoned property is 6,000 square feet. The parcel at 840 Kipling is 4,893 square feet and is therefore a substandard lot under Municipal Code § 18.10.040(b). Moreover, at thirty-nine (39) feet, the width of the 840 Kipling lot is less than 80% of the minimum fifty- foot width required in the Palo Alto Municipal Code for a standard lot in the R-2 Zone. Thus, when viewing the property from the street, the proposed remodeled home all but overwhelms the substandard lot size. As a substandard lot the Municipal Code expressly provides that “[t]here shall be a limit of one habitable floor.” Municipal Code § 18.10.040(b)(1)(B)(ii) (emphasis added). Thus, the law in Palo Alto is clear that no second story is allowed on a substandard lot in the R-2 zone. Because of that limitation, the property owner applied for a variance. Palo Alto Municipal Code § 18.76.030(c) (1) (A) specifically states that “Special circumstances that are expressly excluded from consideration are . . . The personal circumstances of the property owner.” However, in arguing in favor of their request for a variance to build a second story, the property owners made it expressly clear that the need for the second story addition was driven entirely by personal circumstances. As the property owner told the City Staff: “We were actually looking originally for a three bedroom two bathrooms so that we could have some space to grow in because we were looking for a family. Then when we walked into 840 Kipling this was home. This was the first home we’d walked into that just grabbed us and said this is where we want to live. You know it’s smaller than we wanted but the beauty of it the charm of it just made our decision when we walked in … Now we’ve been there 20 years. We now have a teenage son we have two aging moms that want to visit and take of as best we can and this two in one is just not working." Attachment C Planning and Transportation Commission February 3, 2020 Page 3 While it is understandable that the property owner wants a larger home than the one purchased due to family concerns, the fact is that such personal issues are not a proper consideration for the granting of a variance. “Special circumstances that are expressly excluded from consideration are . . . The personal circumstances of the property owner.” Palo Alto Municipal Code § 18.76.030(c) (1) (A). Thus, whether or not the property owner’s family is getting larger is not a proper basis on which to grant a variance. In addition, the house at 840 Kipling is also only 3.5 feet away from the property line with its nearest neighbor at 836 Kipling versus the 6-foot interior side yard setback that is required. 836 Kipling, also a substandard lot, has only a 2.5 ft side yard setback with 840 Kipling and no side yard setback at all with 834 Kipling. 836 in fact overhangs 2 ft into 834’s lot! 840 and 836 together have only 6 ft of interior side yard setbacks, far short of the total 18 ft (3 x 6 ft) required by current zoning. This section of Kipling is already far too densely developed. This overall configuration should have been given significant consideration by City Staff, but it does not appear from the January 15, 2020 letter that it did. Plan Sheet C.0 of the plans submitted for 840 Kipling, shows that there is ample room in the rear yard of the property to construct an addition that would comply with the “one habitable floor” limit for a substandard lot in the R-2 zone. It appears from the Findings, that one of the primary features about this property that make it appropriate for a variance, at least according to City Staff, is the thirty-five foot (35’) Tree Protection Zone (TPZ). In fact, the property owner has pointed out that the intrusion into the Tree Protection Zone is already seventy-three percent according to Plan Sheet T2. What the property owner neglects to address is that most of the intrusion is from structures owned by neighbors, including a neighboring home, cottage and garage. All of these structures intrude much further than the property owners would even if they built the entire addition in the rear yard! Moreover, it appears that there was no attempt to look at whether there were roots in the area where a ground floor addition could be built and whether or not those roots could be cut or blocked without harming the tree. Again, why such a study was not required prior to staff conditionally granting a variance is unknown. The property owners also do not address that back in 2013 they dug a trench and cut major roots within feet of the very trees that they now claim are so sensitive and important to protect! Finally, neither the City nor the property owner address that just on the other side of the Gubbens/Han property, at 400 Channing, new development with basements was allowed wherein the new homes all but touch a number of protected oak and redwood trees!! There were three different reports prepared by the property owner relating to the TPZ. One concludes that it should be twenty-five feet, another thirty-five feet and another 42 feet! Clearly this is not an exact science and given how close other structures, including Attachment C Planning and Transportation Commission February 3, 2020 Page 4 the garage at the property, are to the trees, some additional consideration, engineering and study could have and should have been done to determine whether the entire addition could be built in the real yard. As to the TPZ being a critical aspect for granting the variance, as suggested by the Findings, there is no explanation for how those findings are consistent with even just the three new construction projects nearest to the property that received City approval. 441 Channing was built with a basement within 10 feet of a large protected oak tree. 458 Channing was built deep into the TPZ of an even larger protected oak tree than the trees on 840 Kipling. The development at 400 Channing is right now finishing two new homes with basements within 10 feet of a number of protected oak and redwood trees. All of the trees at 400, 458 and 441 Channing continue to do very well despite the far more significant intrusion into the tree protection zone on those properties than is being considered here! In addition, in early correspondence with the assigned planner, Mr. Gubbens and Ms. Han were promised that the applicants would be required to fully expand the first floor before the City would even consider a variance for a second-floor addition. It does not appear, however, that such a policy was meaningully applied in this case. Every substandard lot presents special circumstances and so under that rationale, every substandard lot should be granted a variance to allow construction not in conformance with existing law. However, other than the substandard lot, which should not in and of itself be a factor, and the heritage trees which could be addressed in the same manner as they were addressed in the three most recent projects closest to 840 Kipling at 441, 458 and 400 Channing, there are really no other extraordinary circumstances that would justify the granting of a variance in this matter. The January 15, 2020 decision letter states: The purpose of the granting of a variance, as outlined in PAMC Section 18.76.030(a) is to provide a way to grant relief when strict application of the zoning regulation would subject development of a site to substantial hardships, constraints, or practical difficulties that do not normally arise on other sites in the vicinity and same zoning district. The term “and same zoning district” in this case must be used when comparing to other substandard lots, not to other standard lots. Of course, substandard lots have their limitations, that is why the designation exists and that is why certain types of development, such as the development being proposed here, are prohibited. The constraints imposed by zoning rules for substandard lots cannot be used as the argument to ignore them. Allowing that argument would render any zoning regulations irrelevant. Attachment C Planning and Transportation Commission February 3, 2020 Page 5 The Findings also claim that the granting of the application does not constitute a grant of special privilege. As noted above, however, many projects have been approved that clearly have structures built well within the TPZ and clearly structures, including mostly neighboring structures, were built in the TPZ of the trees on this property. Back in 2013, the City allowed the property owners of 840 Kipling to trench and cut roots within feet of the trees. There is, however, no finding that root cutting would even be required were the entire addition to be constructed in the rear yard. In addition, the initial historical study, which will be discussed in more detail below, opposed the project as submitted and recommended a rear one-and-one-half story addition to reduce the overall impact that the proposed construction would have on the historical aspects of the home. There appears to have been no effort at all to study that option. The granting of a variance should require extraordinary circumstances. In an effort to see what has been done in similar situations, a search on the City of Palo Alto’s Building Eye application was done for the term “variance.” The search, which goes back to January 1, 2014 revealed only nine instances in which the term was even used and after looking at the details of each of these nine instances there were none in which a variance was granted in a similar situation. In fact, in almost all of these instances the variance application was denied and none of them presented facts as contrary to the existing Municipal Code as those presented in this instance. Thus, it appears that this application was, for some reason, treated more favorably than most others. That should not happen. In this case the owners of 840 Kipling and the City Staff appear to have gone out of their way to use the TPZ as the very reason to justify a second story addition. In addition, as noted above, the property owners were never required to do a fuller study and better explore a ground-floor only addition. Allowing the second story addition based on the TPZ would be treating this property different from the treatment afforded to others. One need only look only at the nearest three other projects at 441, 458 and 400 Channing where the construction was allowed deep into many TPZs. The fact is that even if the full 673 square foot addition that the 840 Kipling property owners desire is built on the ground floor, the intrusion into the TPZ would be significantly less than what was allowed at 400 Channing, 458 Channing and 441 Channing. Also conveniently ignored are the existing deck and back yard hard surfaces that could readily be for a rearward expansion with no impact on the trees. Turning next to the review by the HRB which is referenced in the Findings, the original March 19, 2019 report the City commissioned from Page & Turnbull specifically recommended against allowing the proposed development: Overall, the project as currently designed does not appear to be in compliance with the Secretary of the Interior’s Standards for Rehabilitation. RECOMMENDATIONS Attachment C Planning and Transportation Commission February 3, 2020 Page 6 This section includes recommendations to better comply with the Secretary of the Interior’s Standards for Rehabilitation: • Consider a rear, one-and-a-half story addition, rather than a second story addition, which would have a more minimal impact on the historic roofline and form of the residence When compared to the second report which recommended approval, it is readily clear that there were very few changes. Moreover, as noted above, alternatives such as a rear one- and-one-half story addition were completely disregarded. In fact, all that changed were a few windows and a few exterior treatments, but when the plans for the proposed house with the new addition is compared to the existing house, it seems that there was a significant disregard for the fact that the structure has historic significance. Additionally problematic, is the fact that the property owners were represented at the HRB by its chair. While it appears that he obtained a letter saying that the Fair Political Practices Act did not prohibit him from representing the property owner, the fact is that it presents the appearance of unfair practice. I spent four years as a Planning Commissioner and then nine years as a member of the Foster City City Counsel with two terms as mayor. Much like you, I took the required ethics programs and from those I remember, and hope you do as well, that what is legal is not necessarily what is ethical. Appearance of impropriety can often be as problematic as actual impropriety. In this case, Mr. Bernstein first sat as the Chair of an HRB meeting and then stepped down to recuse himself to represent the property owners in a hearing before the very same body. In fact, the original minutes of the meeting refer to him as Chair Bernstein even though he had recused himself. Later, the minutes were changed to refer to him as Mr. Bernstein. If City Staff was confused as to his role, imagine how the public and other interested parties must have felt. While perhaps this is not the forum to address this issue, it seems to be an issue that should be addressed as the public and residents have a right to have an unbiased government and for their processes and hearings to appear unbiased as well. Finally, 840 Kipling is located in the SOFA I CAP, and so that too is relevant to the Findings and is therefore addressed therein. Having reviewed the SOFA I CAP Report myself it appears to me that the proposed addition at 840 Kipling does not comply with the policies established. The Report, in Chapter II states: “The livability and the walkability of the neighborhood will be preserved and enhanced through the provision of open space with a proposed neighborhood park, through the maintenance of pedestrian scale urban design improvements, the calming of traffic on area streets, and the creation of new housing for a variety of household types. The area's traditional grid street pattern, its historical buildings, its mature tree canopy, and its mix of land uses will also be preserved.” Attachment C Planning and Transportation Commission February 3, 2020 Page 7 “Land vacated by PAMF adjacent to existing lower density residential uses on Channing Avenue between Waverley and Kipling Street will be developed with detached single family homes on small lots (typically 5,000 square feet) consistent with the existing development pattern of these neighborhoods. The Plan allows increased floor area ratios (FAR) as incentives to construct second units as accessory cottages in the rear of the property, usually beside or above the garage, or attached second units as found in many older Palo Alto neighborhoods. These second units will expand the range of available housing types and will increase the total number of housing units in the area.” Housing and a mix of housing types seems a common theme of the Report. “The Plan has also addressed the City's desire to create housing for a variety of users beyond the traditional single family neighborhood. This interest has been furthered by the desire to maintain compatibility of land uses and density with the surroundings and has resulted in the plan facilitating a range of housing types. These include moderately- sized detached single family homes on small lots with or without rear cottages, multiple- family attached apartments and/or condominiums, and rental housing units in mixed use projects, along with provisions for the inclusion of special housing types such as affordable housing, senior housing, or co-housing.” Chapter III(C) (emphasis added). This is specifically addressed in Policy H-2 which calls for lower density housing in the area where 840 Kipling is located with increased density closer to downtown and Alma Street. This policy of preserving neighborhoods and having a broad variety of residential unit types would be violated by allowing the variance requested by the applicant. One need not look very far to see that small detached “starter homes” like what is currently located at 840 Kipling are being developed into larger, more expensive and less affordable homes at an alarming rate. Allowing the type of development requested by the variance application in this case will only serve to reduce the pool of “starter homes” in Palo Alto by yet one more, making it difficult, if not impossible for young people and young families to own anything other than a condominium. A pool of “starter homes” is essential for diversity and opportunity and from my reading of the SOFA I CAP Report, a clear and strong policy adopted by the City of Palo Alto. At the very least that issue should be evaluated, and a determination made as to whether yet one more overbuilt lot is a better community option than stabilizing the already limited pool of “starter homes.” As stated above, the granting of a variance should require exceptional circumstances. It seems from the initial application itself that the basis for the addition consisted of circumstances personal to the property owners, which is circumstances are under the Palo Alto Municipal Code expressly excluded from consideration. It also appears from the January 15, 2020 that the primary factor relied up by City Staff was the Tree Protection Zone. As discussed above in detail, further study could have an should have been done. In addition, the City has been inconsistent in applying the TPZ ordinance, allowing a Attachment C Planning and Transportation Commission February 3, 2020 Page 8 number of developments in the neighborhood to be built well into the TPZ. At the very least, credible further study should be done. The January 15, 2020 decision letter also seems to disregard the problems and potential solutions offered in the first Page & Turnbull letter, including the possibility of a one-and- one-half story rear yard addition. Clearly those options should be explored before a variance is granted. In general, we see nothing that would support the granting of a variance in this instance. There is nothing exceptional about the particular lot or situation and the neighborhood is already much denser than current zoning requirements would allow. Making it even more dense by granting a variance for no compelling reason is, in my opinion, poor policy and legally it fails to meet the applicable standards set forth in the Palo Alto Municipal Code. It also makes it problematic for other residents who select particular properties to purchase understanding what can and what cannot be built on adjacent lots. As shown on the very first page of the Plans submitted by the property owners, this property is being built out to the maximum allowed and obtaining a variance to do so. Allowing what is prohibited by the current law be built by the granting of a variance, undermines the expectations of adjacent property owners and creates problems where none would exist by the simple application of the existing laws. These laws have a reason and there should therefore be compelling reasons to ignore them. That the property owners are nice people and would like a large home to care for their growing family is, for better or worse, not a compelling reason and certainly no reason to give them a variance to do so. In summary: • 840 Kipling is a substandard lot with only one habitable story allowed under the Palo Alto Municipal Code. • The existing zoning regulations allow the owners of 840 Kipling to expand on the ground floor without having to build a second story. • 840 Kipling does not suffer substantial hardships, constraints, or practical difficulties that do not normally arise on other substandard sites in the vicinity and same zoning district that should allow a variance for a second story addition. • The owners of 840 Kipling clearly describe their desire for a variance as driven entirely by personal circumstances. Palo Alto Municipal Code § 18.76.030(c) (1) (A) expressly excludes such personal circumstances from being considered. • Allowing a second story addition to 840 Kipling would be injurious to the value and enjoyment of 441 Channing. • 840 Kipling has only a 3.5 side yard setback with 836 Kipling. 836 Kipling Kipling has only a 2.5 ft side yard setback with 840 Kipling and no side yard setback at all on the other side. 840 and 836 Kipling together have only 6 ft of the required total 18 ft side setback. From a street side perspective this section of Kipling is already much denser than Attachment C Planning and Transportation Commission February 3, 2020 Page 9 allowed by current zoning. Allowing a second story would increase the density even further directly in conflict with the R-2, Low Density Residential zoning designation. • The City’s commissioned historic review by Page & Turnbull specifically recommended against allowing the proposed development recommending instead a rear one-and-one-half story addition. There is no evidence that this credible option was seriously considered. • There are significant ethical concerns with respect to the HRB review given that its chair was representing the owners of 840 Kipling at the same meeting at which he presided. • Adding a rear one-and-half story addition to the “allowable” square footage would leave a significant TPZ. In fact, the TPZ would still be much more than was left for all of the protected oak and redwood trees at the 3 nearest and most recent developments at 400, 441, at 458 Channing Ave. • The project history shows the owners shifted to a strategy using the TPZ as the reason to justify a variance allowing a second story addition. However, back in 2013 these same owners dug a trench and cut major roots of the two redwood trees much closer to the trees that they would be with a ground floor addition. No attempt was made to see if the trees could be protected with a ground floor only addition. That should have been required as it would be much less intrusive and much more consistent with the applicable zoning than granting a variance. • A rearward addition on the ground floor is readily possible in ways that do not or only minimally affect the trees. An above ground suspension should, for instance, be considered. Such a construction method was used for instance at 458 Channing. • The property owners of 840 Kipling were not but should have been asked to seriously consider obvious alternatives to a second story addition. At the very least, the project should be returned to staff and the owners to undertake such a study. • The owners of 840 Kipling understood the limitations of their substandard lot and accordingly purchased 840 Kipling at the lower price these properties sell for. Mr. Gubbens and Ms. Han trusted they understood what could and could not be built on 840 Kipling and accordingly paid a higher price for the enjoyment they believed was guaranteed with their property. Granting a variance here directly undermines the very reasons zoning regulations exist and makes it impossible for future property owners who select particular properties to purchase understanding what can and what cannot be built on adjacent lots. We respectfully ask that the variance for a second story addition be denied. Thank you for reading and considering our concerns, Charles S. Bronitsky Attorney at Law Attachment C Attachment D Planning & Transportation Commission Excerpt Minutes: February 26, 2020 Council Chambers 250 Hamilton Avenue 6:00 PM Call to Order / Roll Call 6:05pm 3. PUBLIC HEARING / QUASI-JUDICIAL. 840 Kipling Street [18PLN-00185]: Recommendation on a Variance to allow (1) a Second-Story Addition to a Historic Home on a Substandard, Irregular Lot, and (2) an Extension of a Noncomplying Wall That Encroaches Into a Side Setback. Environmental Assessment: Exempt from CEQA in Accordance with CEQA Guidelines Section 15301 (Additions to Existing Structure). Zoning District: R-2 (Two Family Residential). For More Information Contact the Project Planner Christy Fong at cfong@m-group.us Chair Templeton: Ok we’re going to move onto Item Three and there’s a lot of moving parts in this item. I believe the first step is for us to deal is disclosures. So, we’ll go down the line start with Commissioner Riggs for any contacts on these matters including meetings, conversations with individuals, site visits, mailings or presentations where substantial factual information was obtained by the Commissioner. Will disclose any contact in which the Commissioner learned new and pertinent information that’s not part of the public record, explain the nature of the contact and a substance of the information learned. Contacts and receiving of information prior to the PTC is not by itself grounds for disqualification unless they have affected your ability to make an impartial decision. So, you may have engaged with the participants in this discussion but it may not be disqualifying so just speak to your engagement. Huh? Attachment D Commissioner Riggs: Yeah so, the applicant called me to try to schedule a visit but I declined. Commissioner Lauing: I met with the applicant of 840 Kipling and reviewed plans and took a site tour. Vice-Chair Roohparvar: The applicant emailed me to schedule a site visit, I met with them, reviewed plans, took a tour. I learned information about trenching on the two-neighbor side that impacted the tree growth but I do believe that that’s included on Sheet T.2 but I did want to point that out. Chair Templeton: Thank you. I have not had any contact with the participants in this hearing. Commissioner Hechtman: I met with the applicants at 840 Kipling, had them explain to me some of the information that’s in the Staff report and the associated documents. So that’s already part of the record and did the site with them and looked at a couple of trees in the neighborhood that are referenced in the site report… sorry in the record. Commissioner Summa: I also met with the applicant at 840 Kipling, at their home, and looked at the plans and associated documents and did a site tour. Chair Templeton: Thank you and brief hold while we are seeking our last input. Alright sorry about that Commissioner Alcheck you’re on for disclosures. Attachment D Commissioner Alcheck: I met with the I guess Reyna family if I’m pronouncing it correctly of 840 Kipling yesterday. They walked me through many of the comments they made in the letters. I don’t believe they shared any information with me that wasn’t already in the Packet and I asked them that same question and they confirmed that. So other than that meeting I have nothing else to disclose. Chair Templeton: Great thank you and just to check in with our legal team, do we feel comfortable proceeding with no recusals? Ms. Sandra Lee, Assistant City Attorney: Yes, Madam Chair. Chair Templeton: Thank you very much. Alright so oh I have the Order of Operations here, please hold. Vice-Chair to the rescue, thank you so much. Alright so the way we’re going to proceed through this is we will start with a Staff report and then we’ll hear from the hearing requester for 15-minutes and the applicant for 15-minutes. That’s… after that, we will do public comment and I have the cards here but if there’s anyone who has not filled out a public comment card please hand them into that box behind Ms. French. Alright, then the hearing requester and applicant will each have a 3-minute rebuttal after public comment in case there’s topics that come up that you’d like to address and then the Commission will discuss, alright? Thank you very much. Attachment D Ms. Rachael Tanner, Assistant Director of Planning: So, Commissioners I want to introduce Christy Fong who will be doing our Staff report this evening. Christy has over 9-years of planning experience including subdivisions, long-range planning, current planning and she began her planning career in Canada but we are very happy to have her working on this project. As you have seen the project history, this project has been underway for some time and so we are happy we are bringing it before you for its next phase. I’ll hand it over to Christy, thank you. Ms. Christy Fong, Planner: Thank you for the introduction and good evening Board Members [note – Commissioners]. I’m the project planner for the proposed project located at 840 Kipling Street. So just to give you some history on the project, the project is presented at PTC tonight in respond to a hearing request made by a neighbor residing at 441 Channing Avenue. This project involves an Individual Review and a Variance Application at 840 Kipling Street when the project was first submitted in 2018. Since this property is a historic resource the Historic Review Board reviewed this project on February and December of last year for its consistency with the Secretary of Interior Standard. Upon review, the Director of Planning and Development Services determined that the project is in conformance with the applicable zoning requirements and tentatively approved the project which is the Individual Review and the Variance applications on January 15 of this year. A Timely Hearing request was received from the neighbors at 441 Channing Avenue on the Tentative Decision. PTC is the reviewing body for the Variance after Attachment D the Director has issued a Tentative Decision, your recommendations will be forward to the City Council for final decision. For tonight’s agenda, the PTC will review the project, conduct a public hearing, receive public testimony, and provide recommendation to City Council on the Variance request for 840 Kipling Street. The Variance Request includes a second story addition to a historic resource on a substandard, irregular R-2 zoned lot, a 6-foot extension to a non-complying wall which is currently encroaching 2 ½-feet into the required 6-foot required side yard setback on the West elevation. Just to give you some information on the context of where the project site is. 840 Kipling Street is located that the southwest corner of Kipling Street and Channing Avenue in the SOFA South of Forest Area Coordinated Area Plan Phase I, SOFA CAP I. The project site is zoned as R-2, two- family residential surround by single-family, low density and multi-family residential uses. The area north and rest of the site are zoned R-2 and the area east to the site is zoned has DHS, Detached Housing on Small Lot. It is a special zoning district created by SOFA I. The hearing requester is locating at 441 Channing which is on the left side of the subject property. 836 Kipling is a substandard lot with a smaller, one-story home located on the left side of the subject property. The project is located on a non-rectangular shape substandard lot. This lot is considered substandard because it does not meet the minimum lot requirement in the R-2 Zone District. Attachment D The subject area has a width of 39.5-feet where the minimum width for a regular lot in the R-2 Zone District is 50-feet. The lot area for this project site is 4,893-square feet where the minimum lot requirement for a standard lot in an R-2 Zone District 4,980-square feet. The existing property has 1,192-square feet single-family residences with a one-car detached garage at the back. The main residence is a single-story bungalow with an attic that was constructed in 1912. This residence was previously determined by the Historic Review Board as a contributing residence as it retained historic merit. So, this diagram is to provide you some information on the project. The project involves an Individual Review and Variance application for 184-square feet ground floor additions at the rear part of the residence, 397-square feet of partial basement beneath the rear addition, and 489-square feet of second-floor addition. The project site has two protected trees, they are Redwood, at the rear property line at the back which shares a Tree Protection Zone of 35-feet in radius from the tree location. The Tree Protection Zone limits part of the buildable area by the rear side of the property. The need to maintain these Tree Protection Zone from further intrusion qualifies this project site as unique and is eligible to request for a Variance. The PTC review for this project is the two proposed Variance requests which included the height and the side yard setback encroachment. There are zoning regulations restricting development on substandard lot with one habitable floor at a maximum height of 17-feet. The Attachment D proposed project includes a second story addition and the proposed height would be 26-feet 8- inches that would require a height Variance. The existing main residence is non-complying facility with a wall on the west elevation that is located 2 ½-feet into the required side yard setback. The project would extend approximately 6- feet to the rear part of the home which would not be visible from the street. This request would normally fit within the specific limit set forth in the Home Improvement Exemption that would allow a legal, nonconforming wall building that is located 3 ½-feet from the side property line to be extended to a quarter of the length of the existing wall or 10-feet horizontal, whichever is lesser. To clarify on the point that we state in the Staff report at Packet Page 18 because this project would alter just above 25 percent of the existing wall and it becomes ineligible to request for a Home Improvement Exception. As noted above the subject property presents limitations for ground for expansion. The PTC can review the project, assess the property conditions, and determine whether the project would meet the four findings for granting of a Variance. This is the generic findings that is in our code right now. Proposed finding on a tentative decision is presented in Packet Page 46 in the Staff report. In summary, Staff found that the 35-feet Tree Protection Zone for the two protected Redwood trees on-site would restrict the subject property to expand on the ground floor when such expansion is allowed in the R-2 Zone District for a substandard lot. The project with the granting of the request height side setback Variance would not affect the project’s compliance with other R-2 Zone Development Standards. The project meets the Individual Review Attachment D Guidelines and also meets the Secretary of Interior Standards for rehabilitation. The project is generally consistent with the goal and policy identified in the Comprehensive Plan and in SOFA CAP I. The proposed second story addition would be built within the required building envelope and the proposed extension to the first-floor wall to an existing noncomplying wall is appropriate in scale and would not reduce the current side setback. At last, the proposed additions were not found detrimental and would not pose potential risks to public health, safety, general welfare, or convenience. PTC can assess whether the current project would meet the four findings for Variance and Staff would forward your recommendation to City Council on Consent Calendar. The hearing requesters have also requested for Director’s Hearing for the Individual Review application which is scheduled for March 5, 2020. If the Director hearing decision is appealed the Individual Review application will be placed on the same Consent Calendar with the Variance and that concludes Staff’s presentation. Chair Templeton: Thank you very much. Alright so let’s move onto the hearing requester and Vice-Chair please set for 15-minutes. Ms. Tanner: Did you have a presentation? Mr. Charlie Bronitsky: Pardon? Attachment D Ms. Tanner: Did you have a presentation? Ms. Fong: No. Mr. Bronitsky: No, I have… unfortunately, every thing’s printed but I think you all have it. It’s that. So, pardon me for starting so rudely but Commissioner… excuse me, Chair Templeton and Commissioners, good evening. My name is Charlie Bronitsky and I’m here today representing Alexander Gubbens and Karen Han, they own 441 Channing which is right next door to 840 Kipling. My apology that is paper, I usually don’t do paper but I just had a minor technology explosion today, so I hope you’ll forgive me for that. What we’re going to talk about today really is whether or not a Variance should be granted to build a second story at 840 Kipling. And the critical thing that I’m going ask you to remember is that Variance are rare and exceptional. My background, real estate land-use lawyer for 33-years, I live in Foster City, 4-years on its Planning Commission, 9-years on its City Council. I think in all those years and all those capacities I’ve done six Variance requests. And the reason that Variances are unusual and exceptional is because you’re asking someone to make an exception to the law. So, the law, in this case, would say that the property owner at 840 Kipling cannot build a second story and why is that, because it’s a substandard lot. There’s no dispute, the applicant agrees with that, the City agrees with that, we agree with that. And so, the issue is whether or not there’s something Attachment D about this particular property that allows for a Variance and it should be exceptional because otherwise, the reliance on the rule of law dissolves into chaos. And what I’m going to talk about today is that there is no… there are no… excuse me, there is nothing exceptional that would allow for the granting of a variance in this case. So, let’s, if you wouldn’t mind, let’s turn to the second page of the… this is from… your Packet 20… Page 12 and it talks about… mostly about things we agree with. And on the first section, it says that because the lot is substandard the law in Palo Alto is that development is limited to one habitable floor with a maximum height of 17-feet and as we saw the house is already 18- feet. The next paragraph talks about extending an existing nonconforming wall but what I mostly want to draw your attention to is the third paragraph here which Staff says there’s really two reasons to grant a Variance. One is the tree in the rear yard and the need for a 35-foot Tree Protection Zone and the other is the odd shape of the lot. I’d also like to note that there’s kind of an anomaly here in that and I’ll show you the numbers as I go through this. If the law were just applied the largest house that could be built on that would be a little over 1,900-square feet but if you then grant a Variance there’s an additional several hundred square feet that’s allowed. So not only is this lot going to… the proposal is to build this lot to a second-story which isn’t allowed, but to a great extent than what would be allowed if the law as applied and it was only limited to 1,900-feet. So, I know on the bottom is says 64 percent but that’s my hopefully only other mistake. It should be 57 percent. I think I corrected it in the other areas. Attachment D So as Staff pointed out this project went through the Historic Resources Board and the City retained Page and Turnbull who prepared the initial report. And I have the first and last page are the next two pages and if you turn to the second page I have here it talks about Page and Turnbull’s recommendation to consider a rear 1 ½-story addition rather than a second-story addition. And I’ve been graciously been given access to pretty much everything that was submitted to the City by the applicant and there was absolutely no attempt to do that. Instead, the applicant continued to go forward wanting to build a second-story on this lot where second-stories are not permitted. So, I’m going to talk about the two issues, the first if the Tree Protection Zone. So, if you turn to the next page, this is I believe also part of the Staff report, you can see that the Tree Protection Zone of 35-feet has already been violated in numerous times. Including once by the applicant themselves when they not only dug trenches but cut roots and as I’m about to show you there is some significant disagreement among various arborists as to what the appropriate Tree Protection Zone should be here to actually protect the tree. And what concerned me was that there was no request by the City and no attempt by the applicant to actually do a little bit of digging and see where the roots are. Could you extend this property out a little bit more than 35-feet and not harm the tree? We really don’t know that. All that was ultimately applied was a formula. So, turning to the next page, it’s the Kielty Arborist letter of May 27th and on the second page of that letter in the highlighted red box, Kielty believes 25-feet is sufficient to protect the tree. And then on the third page of that letter Kielty goes on to talk about the Attachment D protentional for root cutting, the potential for trenching [unintelligible] and or excuse me, excavation. A number of alternatives that could have been but weren’t studied that would have made a Variance unnecessary. So, for reasons that I’m not privy to a second arborist report was done, if you just turn two pages in it’s the August 14, 2018 letter from Dave Doctor. And back on August 14, 2018, Mr. Doctor concludes that the Tree Protection Zone ought to be 42-feet but again it’s not very clear whether any studies where done, any excavation was done, any investigation was done into where the actual roots of this tree are located. And then for some reason just a little under a year later there’s yet another letter, it’s the June 23rd letter, also from Mr. Doctor and he now for reasons that aren’t really clearly explained in the letter goes from 42-feet to 35-feet. So exactly what’s needed here isn’t really supported by any, as I can see it, valid arborist report. They’re all disagreeing with one another and no one’s bothered to go into the yard and actually find out. When the applicant needed to do some trenching, at that point it was ok to cut roots of the tree but apparently, in this instance, it’s not even appropriate to investigate. And I would ask this Commission to at the very least send them back to do further investigation because it might make it possible that the Tree Protection Zone can be shortened and the house expanded just on the first floor as the law provides and there would be no need for a Variance. I also heard that a number of you went out there and I hope that you took a walk along the 400 block of Channing because you’ll see that there are at least a half of dozen trees that I saw today that are clearly protected trees, Redwoods and Oaks, and clearly within what should be calculated as the Tree Protection Zone. In fact, right across the street at 400 Channing there’s Attachment D two new houses and there’s… the next document I have here is the plan for that. And as you can see from the plan for 400 Channing in these two new homes these protected trees are vertically challenged and I’m not sure that I could lay myself down between the truck of the tree and the house. And right after that, you’ll see in my package is a photograph of just how close that tree is and really if you go out there it looks even closer. So, this is a pretty recent project, these houses are just now being put up for sale. So, from a community basis and you represent the community here, why the 35-foot Tree Protection Zone that requires… that’s there… then gives them a basis for a Variance on one side of the street and yet allow construction of two homes on what had formally been a lot with one home on it within 5 to 10- feet of protected trees? My client’s own property, 441, there’s an Oak in the front. That Oak if you went ten times the diameter is to close to the house. There’s… I think it’s 465 or 456, I think it’s 4… it’s got to be 456 because it's across the street. There’s a house there also there’s I think both a Redwood and an Oak and both of those are well within what would be the calculated amount. So, it seems to me that as to the Tree Protection Zone, further study should have been done or there should have been some consideration of allowing for a Variance from just the technical calculation. So, you can have up to the 1,900 and so square feet on that first floor and again, no Variance is required. So, Staff showed us kind of the generic code for Variances and the next page I have here is just some comments I have on that as to just how they apply in this case. So, what’s shown as Attachment D Attachment C, it’s also part of your packages Page 22, and among the things that you’re not supposed to consider in connection with granting a Variance are the personal circumstances or the property owner. And if you turn to the very next page you’ll see a statement from the property owner when they first got started on trying to get this Variance basically saying they needed it because they had a growing family. I understand that I started out the first time shortly after I got married at a condo in Daily City and we had a child and moved to a house in San Mateo. And our family continued to grow and we moved to a bigger house in Foster City. So, I understand that but this house has been on a substandard lot since long before the current owners have it. It’s had those restrictions on it to not build a second-story for quite some time and so there are alternatives if you’re personal circumstances require that you have a larger home but among those is not granting a Variance under the Palo Alto Municipal Code. The other thing is B, changes in the size or shape of the subject property made by the property owner. So, I mean technically it’s not a change in the size or the shape of the property but the decision as shown in the Tree Protection Plan diagram to have trenched and cut roots is something that they chose to do which ultimately impacts where we are today. So, if they didn’t do that perhaps the Tree Protection Zone wouldn’t need to be as large as it is, could be investigated further but again, they chose to take action and there appears to be no consequences to that. Again, the granting of the application shall not affect substantial requirements where there are regulations or constitute a grant of special privileges. Like I said and I think if you look at the Attachment D next to last page, it was Attachment B but it’s the next to the last page of what I have, you’ll see that if this was a single-story it would be limited 1,957.2-square feet but the proposed development is going to be 2,201.4-square feet. So as a result of a Variance they get to burden… overburden that lot by an additional 57 percent beyond what they could build if they just were required to follow the law. So, if they’re required to follow the law they could build about 420 or 440-square feet but they get to build 600 and some square feet on that very same lot. I see I got a little yellow light so I’m going to make the following points quickly. There’s a… this… so it’s showing you the lot layout. Again, the lot layout doesn’t constrict development, if it was a square lot it would have actually fewer square feet and therefore you could put a smaller home on it. Nothing about the slightly odd shape of this lot is actually a constraint. It’s actually an advantage because it gives you additional square footage. Which gets me again to my point that’s shown in the map, Building Eyes, one of your systems. I don’t know if your… I assume you’re familiar with it but basically you can go on there and look at all the things the Planning Staff has done. Since 2014… am I done? Chair Templeton: Yes, your 15-minutes have passed. Mr. Bronitsky: Ok. Chair Templeton: You’ll have more time during rebuttal if anything comes up. Attachment D Mr. Bronitsky: Understood, thank you. Chair Templeton: Thank you. Alright and we’re ready for applicant, thank you. Alright please begin. Mr. Martin Bernstein: Thank you, Chair Templeton. I’m Martin Bernstein, architect for Steve and Aysen, I’m also a member of the Palo Alto Historic Resources Board, and I just wanted to for members to the public to know that I’ve gotten authorization from the California Fair Pollical Practice Commission that as the architect and without any employees, that the state of California allows me to present this project in front of the Commission. The purpose for that is twofold one, the state of California Fair Pollical Practice Commission doesn’t expect a homeowner to know the technical aspects of building constructions or processes nor does the state of California expect homeowners to be able to respond to question regarding technical aspects from the Commission. So that’s why I have authorization to present this to you, thank you. Two simple statements one, during the course of the project we received excellent counsel from the Historic Preservation consultant for the City of Palo Alto, Page and Turnbull and we’ve incorporated all of their recommendations into their report into our project. And then also we’ve received good counsel from the City of Palo Alto’s Individual Review consultant Mammarella and we’ve incorporated all of his comments into that project. Attachment D So, my… just my three simple statements are with all these recommendations that have been incorporated into the project, Historic Review has been approved by the Planning Department, the Individual Review process has been approved the Planning Department and the Variance has been approved by the Planning Department. So now I’d like to introduce Mr. Reyna, the property owner, to continue. Thank you. Mr. Steven Reyna: Chair Templeton, Commissioners, good evening. Chairperson Roohparvar [note -Vice-Chair] could you give me the proverbial 2-minute warning? Vice-Chair Roohparvar: Yes. Mr. Reyna: Ok thank you. Good evening, my name is Steve Reyna, my wife Aysen Kutlu and I are the owners of 840 Kipling. We’re here this evening to present our project to you which includes a Variance application for a modest second story addition to our house. Our application has already received as Mr. Bernstein had said, tentative approval for Variance, Individual Review, and Historic Review from the Director of Planning. From the beginning, our goal has been a modest addition to our historic house which is compatible with the neighborhood and maintains and expands on its historic character. Per R-2 zoning we have 673-square feet of unused FAR and due to the new unique circumstances of our Attachment D irregular lot and restrictions on how we can place the square footage, we needed to apply for a second-story Variance. Alright so some of the unique properties of the lot itself, it is irregular. As you can see we have… we’re not a rectangle, we’re like a box on a box. One of the… this lot and location of the associated driveway has existed since before 1924 and it’s documented on a 1924 sandboard map. Since the house was building in 1912 the lot is probably 108-years old as you see it. The irregular lot shape and the driveway access along the left side significantly constrains how we can utilize our buildable area. Any additions towards the rear are confined within a very narrow width exactly behind the house and the lot does however had adequate Daylight Plane to support our second story addition. Here’s a quick picture of the driveway with the easement itself show on the right-hand side and the 1 ½-foot extra land for the exclusive and… exclusive use Variance in perpetuity. Sorry. There’s always… wait a minute. Pardon me. Another unique condition of our property is that is effectively a conforming lot. The lot we fully own which is shown in light blue up there is 4, 893 so we are only 87-square feet less than a conforming lot. And with that exclusive use easement there which is 1 ½-feet by 75, that’s another 112-square foot, our total useable land is 5,005-square feet. We are effectively a conforming lot and as such we would not have needed a Variance for this project. We have an administrative problem with that but in terms of useable land, we effectively have 5,005-square Attachment D feet. I would add that the easement itself acts as a zoning function. It acts as additional side setback next to the house where it’s needed most to provide additional open space between us and the adjacent property. Now we go to the picture of the driveway and you can see the easement there and to the person on the street, it is indistinguishable from the property that we own. So, anybody standing on the street, this would look exactly like a conforming lot. We talk again… we’re back to the Tree Protection Zone. You know about the trees, the two protected Redwoods in the back right there show with the green circles with a 35-foot TPZ. So, this TPZ is significantly impacted by the structures and the features around there. The dark black are the garage and the cottage next to us and whatnot and when you total up the total intrusion impact on the TPZ its 73 percent impacted. When Planning and Forestry allows up to a 25 percent intrusion. In addition to the structures and the driveway around it, the previous owner of the property behind us in this are up there, we found out that they had trenched along that fence line for their own irrigation and had installed root blocks. And that’s the left- right dash line there and the remaining 27 percent undistributed TPZ is shown in green. The areas essentially only what’s between the trees and the back of our house and in forward back direction and the driveway and essentially our property line on the right-hand side. Back in 2013, 2013 we became concerned about potential damage between our trees and the neighbor’s cottage at 836 Kipling on the right-hand side because of how close they were. We consulted with arborist Kevin Raftery who advised us to dig a trench and look for… look at what roots are there and we discovered significant roots going directly underneath the cottage. Under advisement from Kevin Raftery, we cut those roots going… we cut those roots to prevent Attachment D damage to the cottage and to preserve our Redwood trees. If we had not done that we would eventually have been forced to remove those trees because of the hazard they would cause to the cottage. We did not want to damage our neighbor’s cottage, we did not want to lose our Redwood tree which is a very real possibility because it happened to our neighbors. Our neighbors at 836 Kipling, the one-story next to us, use to have, use to have a very large and healthy Redwood tree whose diameter is substantially bigger than ours. There’s a picture on the left as it uses to exist and then there’s the… you can see the picture of where it is referenced to the back of the house. They loved this tree, we loved it too but because of ongoing issues with the tree and the house, they felt it necessary to call in an arborist to say what’s going on with this? And the arborist told them this house is destroying your foundation… I’m sorry, this tree is destroying your foundation, this tree is pushing in on your house. Reluctantly to perverse the house they removed the tree and that’s what happened. We all lost a beautiful large Redwood tree, we don’t want this to happen to our trees, we don’t want this to happen to our house. Turning now to the how the project would present itself to the neighborhood. We have an expert of the streetscape from the plan set. As you can see the proposed second story addition is centered on the house and significantly imbedded into the roof. In fact, more than 50 percent of the second story is embedded in the existing house structure. So, this can reasonable be called a 1 ½-story house or addition. It’s a modest addition, it fits well within the neighborhood, it’s compatible in size, and even smaller than some of the nearby R-2 homes off to the right and is much smaller in height and massing than the DHS home on the far left, 441 Channing. One Attachment D point I’d like to highlight here is that the primary concern that the City Council has with second- story additions on substandard lots is the violation of Daylight Planes and setbacks. Our lot, almost a conforming lot by 87-square feet we’re missing it, has sufficient Daylight Plane to support out addition. And the second story addition fits entirely within the R-2 Daylight Plane, including the eaves. Here’s a brief chart that shows the comparison of living space between the different lots along the streetscape. Living space, in this case, is all the built space above ground, not including garages. So, as you can see, first of all including our proposal, almost all the houses on that street are two-story already and that the R-2 houses range from 38 to 40 percent FAR. The DHS house on the far left, 441 Channing, .58 FAR. Now the submission from the appellant is actually fairly vague about what they are opposed… why they are opposing our application. On the first page, second paragraph of their written submission from the beginning they write “whereas a second story requires a Variance and would be injurious of the value and enjoyment of the Gubbens/Han home. Now the submission doesn’t explain this statement but the owners have been very focused and very consistent over the last 4-years about they are concerned about. Up there are quotes, one is an email directly to us, the other three are in your Packet, these are emails to the City. The most recent one was on December 2nd of 2019, that was only 3-months ago. I won’t read all of this but I’ve added emphasis to the key points. Its views from their second-story windows across our property and the most clear expression is the third bullet down, July 2018, which starts out “I realize that the Attachment D second-floor addition… that with the second-floor addition we would not be able to see sunsets anymore.” And jumping down to the last sentence “with some very nice views over 840 Kipling, those would disappear.” The most… they have been consistently reiterating this primary concern over the years. However, I’d like to bring some more historic context into the views of owners that the owners of 441 Channing are concerned about. Above is a dictation of the condition of the property as they bought it in 2007. There were a row of Canary Island Pine Tree, 40-foot plus height along the common property line. These trees existed prior to the construction of their home and were designated protected trees by the then Director of Planning Ed Goff back in 2001 as a part of the SOFA I process. In 2009 Mr. Gubbens approached us asking if he could remove those and replace them with new screening trees because there were maintenance issues for him. Vice-Chair Roohparvar: Two minutes. Mr. Reyna: Aw, thank you. Had the original… sorry. They became a maintenance issue for us, these trees were removed in 2009 when the owners 441 Channing were first able to enjoy the views across our property. Here’s a Google street view, on the top you can see the trees as it existed in 2008; very substantial. We are very heavily shaded there. On the bottom left, 2-years after the trees it’s… there’s nothing there and in May of last year, you can see that the screening trees are still not there. So, what is the appellant asking for? The owners of 441 Channing are asking the City to deny our second story Variance request in order to protect their views across our property. A view they created when they removed the tall Canary Island Pine Attachment D screen trees between our properties. The remedy being requested is for the City to violate its own Tree Protection Code to force the addition onto the ground floor, jeopardizing the trees as well as the future structural integrity of the house. I’d like to emphasize that even without the screening trees, there is no significant impact of our second story addition to their house. We fully fit within the Daylight Plane and their second story is 48-feet away from our second story. And if owners of 441 Channing are suffering an injurious loss of light from our second story addition, then anyone building a second story addition would be causing injurious loss to their neighbors even when adhering to the Daylight Plane. I’ll skip that. I’ll skip that. This is a picture that shows the neighbor's support. Three adjacent neighbors including two of them here. Thank you. Chair Templeton: Than you very much. Just a reminder you’ll have an opportunity to respond as well after public comment. Alright so public comment cards, I have some that were submitted earlier on. Have any additional cards been handed in Ms. French? Ms. Tanner: No more cards. Chair Templeton: No more cards, ok. We’re going to start with Charlie Bronitsky. Mr. Bronitsky: (from the audience) Well, that’s me. I’m sorry. Attachment D Chair Templeton: Oh, yeah you don’t need to submit a card. Ok and then William Cane followed by Kevin Morris and Steven Chanin and we only have three so you can have 3-minutes each. Thank you. Mr. William Cane: My name is William Cane, I live at 832 Kipling, I’ve lived there since 1918…1995. The house was built in 1895 or so and when Steve Reyna first approached me, he’s kept me apprised of this project from the beginning, I was really pleased to discover that he was planning to just to enlarge and make an addition to his house and not to sell it because of his needs. Because it were sold, what I see driving around town is houses like his get torn down, being replaced by things that would not be nearly as consistent with the architect in our neighborhood. And so, I think this project is very deserving, it will add I think to the neighborhood, it will probably improve my property value, and I think it’s very modest. So, I hope you will approve it. Thank you. Chair Templeton: Thank you very much for your comments, Mr. Cane. Kevin Morris. Mr. Kevin Morris: Hi, good evening, my name’s Kevin Morris, I live at 836 Kipling Street, we bought our house in 2011 and I just want to say we’re very supportive of this project. We’re obviously the neighbors on the other side. Steve and Aysen invited us over several… almost… more than a year ago now to kind of be considerately show them the plans for the project. We’re fully in support of the project. Attachment D That large Redwood… we’re the owner that actually had the large Redwood tree in the back of our house that we had to take down. Again, there were some tears in our house because when we got… that tree was kind of the flagship of our backyard. If… you didn’t see, it’s the picture of the foundation where our foundation is literally was kind of bent by the tree. That tree was planted before we purchased the house and it was one of the reasons why we purchased the house in 2011 because it was just gorgeous. So obviously you have… trees are an issue in this hearing and actually, we were the ones that lost the tree. And I just wanted to kind of let the Commission know that we’re fully in support of the project. So, thank you very much. Chair Templeton: Thank you very much for your comments, Mr. Morris. Steven Chanin. Mr. Steven Chanin: So, I’m just… I’m 857 Waverley so on one of the two greenhouses on the Waverley side. Just wanted to say that I’m speaking in support of the project as well. My wife and I both understood what was going on a couple years ago and Steven came by and explained that they were trying to do this. And our take basically is that the whole community benefits by people who are investing and improving their house and the housing stock in the area. It keeps things well maintained, in good condition, it adds value to the neighborhood, it contributes taxes that pay for schools and services we all benefit from. So, we look at it as the community wins when people invest in improving their housing so anyway. You know and every change has impacts so right now we’re… our backyard faces the subject properties back yard and our master bedroom is on the backside of our house. So, we have a whole bunch of windows. Right now, if you look out those windows you don’t see anybody else because there’s walls and Attachment D garages and trees. The only thing that you’d really see would be the place where the second story addition is going to go and our takes is it’s nice that we had this privacy windfall for all these years since we moved in 2008 but it’s not like god grated us the right to have nobody to be able to see through our window ever. So, we have curtains if we’re going to run around butt naked after getting out of the shower, we’ll pull our curtains closed. But it’s not (interrupted) Chair Templeton: Let’s keep it appropriate Mr. Chanin. Mr. Chanin: Exactly but it’s… you got to look at it as if I were… I look at it as if I were on the other side and now we’re trying to change… build an addition on my house or renovate it, how would I feel about somebody blocking me because they don’t want to lose this privacy windfall that they’ve had any right to in the first place? They just benefited from and so I think you got to adapt and be reasonable. And so anyways so my take is you should approve the project and we’ll close our curtains and I think everybody will be better off. Chair Templeton: Thank you very much for your comments, Mr. Chanin. At this time, we will close public comment and begin the rebuttal period. So, hearing requester will have 3-minutes followed by the applicant. Thank you. Mr. Bronitsky: Thank you. The gentleman who just spoke is right, God didn’t grant anybody rights, the City of Palo Alto has a Municipal Code and that granted the rights. The right is a substandard lot, this is a substandard lot, it’s not near a standard lot, it’s a substandard lot. I’m Attachment D not near 6-feet, it’s a substandard lot. There’s really no argument about that. We’re sorry about the loss of someone’s else tree. Is this tree going to be lost if they expand further? We don’t know that. We had three different opinions from three different arborists. This isn’t simply just granting someone an addition, this is granting them a Variance. Meaning that we’re not going to require you to follow the law in this case. We’re going to say that there’s something unique about this and what did the Staff say? Two things, the Tree Protection Zone, and the odd shape of the lot. I showed you the odd shape of the lot really isn’t a constraint and the Tree Protection Zone. We prepared a little chart and I’ll… if someone could (interrupted) Chair Templeton: Ms. French? Ms. French? Mr. Bronitsky: I can come up there. (off mic) Here’s some extras. You could build the full… as you’ll see in this and we’re not architects or engineers. It’s just sort of trying to eyeball this. You’ll see in this chart that you could go to the full 1,900 and some odd square feet on the first floor and still be more than 30-feet away from this tree and no Variance would be necessary. And if there is a Variance necessary because of the Tree Protection Zone calculation then it should be granted for that purpose because again, just like everybody bought their home and enjoyed their views. So, did Alexander and Karen and they bought their home because the place next… in part because the place next door was on a substandard lot and no second story could ever be added to it. And they’ve enjoyed those views and really if you look at the reasons for a Variances, the very last one is an impact. That’s an impact. Again, this property could be expanded, it doesn’t necessarily have to be expanded to the full 1,900 and some odd feet. If Attachment D they’re concerned about staying out of the 35-foot zone they could expand to about 1,900-feet and you could still fit a significate expansion in that property. No Variance ever needs to be granted and the law should be applied. Again, what we’re asking you to do is apply the law and not grant the Variance because the exceptional circumstances required for a Variance simply done exist in this instance. Thank you all very much. Chair Templeton: Thank you very much for your comments. Applicant? Mr. Reyna: Good evening, thank you. So, I guess it’s a collection of things to comment on. He talked about 25-feet, 35-feet, 42-feet from the arborist. The 25-foot was a typo and we could not get ahold of that arborist to correct it. The 42-feet was the recommending addition space because of the Redwood trees and he’s trying to deal with the… the arborist is recommending additional space to deal with the Redwood tree’s aggressive root growth tendencies. However, in a meeting on September 12th, 2018 the arborist with the City came to an agreement that 35- feet is acceptable and the house and the trees would be fine. Hence 35-feet showed up in his final report. So, I’d also like to point out or at least point out here that granting of the Variance is to grant relief from strict application of the law. This is not breaking the law. Zoning is a general process where you try to capture as much as you can but the understanding… the recognition is that Attachment D there are cases where the general zoning doesn’t necessarily apply. And therefore, the Variance is created as a process to deal with those cases one by one. So, to apply for a Variance, it’s not breaking the law. To be granted a Variance is not breaking the law, it’s following the law if we meet the findings and Staff and the Director of Planning agree that we meet the findings. And the question before you is do you agree with that? And I have to say that the City’s Tree Protection Regulations, they align well with our wish to preserve our trees because they matter to us at least. And one thing that is kind of clear is that as the appellant raises issues about not seeing this done, not seeing that done, all I can say is that they have not been apart of the process. They don’t see what we’ve gone through. We’ve reviewed and reviewed and tried all… considered all sorts of options including the ones that they have suggested but considering that with the narrow bit of land that we have between the driveway and the property and the setback on it and between the TPZ and the house that we have. As we extend back we cannot recreate multiple bedrooms back there because of the narrowness. You can’t a room and hallway and a kitchen across a very narrow stretch of land there which is a consequence of the irregular lot and the driveway access. We have limitations, we have a lot of limitations and they are strong limitations that have crossed the threshold for a Variance. Thank you very much. Chair Templeton: Thank you very much for your comments. Before we turn it over to the Commission I want to ask advice. Would it be alright if we asked the hearing requestor and the applicant to stay in case we have questions directly for them or should we only ask Staff? Attachment D Ms. Tanner: I believe that they can… you can ask the hearing requestor or applicant questions. Chair Templeton: Ok so if you wish to stay in case any of the Commissioners have questions you’re welcome too. Alright, so the first light I see is Commissioner Alcheck. Commissioner Alcheck: Great, good evening. I just want to thank all of you who’ve spoken tonight, for making the effort to participate in our local process. This sort of shared perspective is the essence of why our meetings take place. So, thank you for coming if this is your first time. I want to start this discussion at the end by talking about the findings and what I’m going to do is I’m going to talk about Findings Two and Findings Three first. Presuming that those are sort of less complex and maybe if that’s the case then we can avoid having to rehash each of the four findings as we go through. So, I’m going to start with the second finding that needs to be made; the granting of the application shall not affect substantial compliances of the regulations or constitute a grant of special privileges inconsistent with the limitations upon other properties in this vicinity and in the same zone district as the subject property. I think that this finding can be made based on the information we’ve received tonight from the Staff report and from the several letters that we’ve got. I think the remarkable component here is that the second floor complies with R-2 zoning regulations and in particular as well within the envelope of our Daylight Plane which is the right that… which is the threshold that we use to evaluate the inconsistency and compliance, so I think that finding can be made. I also think that the Attachment D secondary Variance element, the issue with the wall also considering that if this was just an HIE discussion, it would be compliant. I think that suggests plainly that this finding can once again be made because this wouldn’t violate again the substantial compliance with our regulations if this had sort of felled within the HIE exemption; the improvement exemption. Ok, I’m going to move to Finding Three, that the application is consistent with the Palo Alto Comprehensive Plan and the purposes of the title. And I think in this case Staff did a good job of outlining that in their determination. I’m happy to go through this if we need but unless somebody feels strongly that our Comprehensive Plan policies somehow are violated. I think that the Staff report speaks strongly to the case that the Comprehensive Plan as a whole and particularly the policies that were enumerated in our Staff report satisfy Finding Number Three. But I’m happy too (interrupted) Chair Templeton: Pardon me Commissioner Alcheck. I want to just clarify. Commissioner Alcheck: I know this is not from Staff. Chair Templeton: Oh, I want… who provided this document? Ok, the applicant. Thank you, I just wanted to clarify that. Thank you. Commissioner Alcheck: No, I mean I’m referring to Packet Page 18 for the findings that we need and then I thought in particular if we are… hold on a minute (interrupted) Attachment D Chair Templeton: Thank you for helping us follow along with your thoughts Commissioner Alcheck. Commissioner Hechtman: [unintelligible – off mic] Commissioner Alcheck: Yeah (interrupted) Commissioner Lauing: 47 as well. Commissioner Alcheck: And then Page… I was going to say Packet Pages 46 through (interrupted) Commissioner Lauing: 47. Commissioner Alcheck: 49 or excuse me 49 are the crux of the Director’s report and I think that if… unless there’s… I’m happy to double back on it but I’m going to suggest that the statements made on Packet Page 48 regarding Finding Number Three are… really sufficiently make the case that the finding can be made and I would agree with that analysis. Ok, I’m going to go to Finding Four which I think is a little more complicated and in particular the question about whether the applications would be detrimental or injurious to property or Attachment D improvements in the vicinity. And then how it reflects on the public health and public safety and general welfare and general convenience. I think one of the… one of our speakers tonight has spoke quite humorously and elegantly about this notion of privacy and you know we’ve grappled with these ideas of single-story overlays in the past. And one of the things that I use when I consider these notions of second story… single story overlays, our code creates a set of strict regulations regarding Daylight Planes and second story additions for example within our R-2 zones like this one. And I think that if a Variance requested some flexibility with respect to encroaching over a Daylight Plane this would be a very different story. And I think when I think about the notion that we’re going to evaluate whether something can be detrimental or injurious to a property or an improvement in the vicinity I think about value. And from my perspective the bar of determining whether you can be injured by the execution of let’s say an improvement on your property is whether it would conflict with the standards that we set within a zoning… within a zone that applies to all projects within that zone. So regardless whether a lot is substandard in the R-2 Zone, I don’t… I would suggest that we consider injury to be present when a project would exceed regulations general to the zone as opposed to specific to the lot. And the reason why is because if you don’t then the entire concept of a Variance is impossible. If adhering to your zone’s regulations would injury your neighbor then you couldn’t evaluate a property for its special circumstance to determine whether it should theoretically be allowed to do something that it would otherwise would be allowed to do except for X, Y, and Z. That wouldn’t be possible and so I think this would be an entirely different scenario if for example what was being asked and supported by the planning Staff was something that would actually cross the line of what is permitted in an R-2. So, considering that the application is Attachment D within the envelope for example, because we talked a lot about privacy and views, within the envelope of the Daylight Plane. I think that should reflect how we evaluate whether such an improvement could injury a neighboring property. And so that’s how I’m approaching the finding in number four, that the expectation should not be that the neighboring properties entitled to anything more than what is strictly provided for by the zone. And if the zone allows for this Daylight Plane than anything up to that daylight plan, in theory, can’t by definition injure the property. Ok, I’m going to move on. I’m not sure it bears mentioning but I think that the alternative build- out suggestions here if they did in fact negatively impact trees I think we could be in a very similar situation. Were a lawful application to develop on this site, if somehow could be approved by the City in contradiction to the City’s arborist findings could theoretically be appealed because if it did pose a risk to a tree. That could very much be a qualitative injurious to the community so it’s sort of interesting. Not that the part of the evaluation from a Variance perspective but I just wanted to add that. Ok, I’m going to move now to Finding One and I appreciate you guys letting me have all this extra… extended time. The special… the critical Finding Number One which goes to the heart of all Variances; because of special circumstances applicable to the subject property including but not limited to size, shape, topography, location, or surroundings. The strict application of the requirements regulations prescribed in this title substantially deprives the property… such property owner such property privileges enjoyed by other property in the vicinity and in the Attachment D same zoning district as the subject property. We’re not to consider the personal circumstances of the owner and any changes in the size or shape of the subject property made by the owner or its predecessor in interest. So, I’ll just acknowledge one thing, I was not made aware of personal circumstances of the owner except for in the letters that I received from the applicant of this matter. So, I’m not sure if that was a component, I imagine it wasn’t of the Staff’s review considering their familiarity with the code. I think that… well let me say this, I… first I appreciate the invitation by the project applicant to sort of get out there. I think so much of our review requires us to assess factors like size, shape, topography, and the opportunity to get out in the community and see these things is profoundly helpful. And so, for those of you that we're able to do that I think it probably improved your analysis. So, one of the components of the finding that I think or one of the components of why I think this first findings can be made is number one, they’re irregularly shaped lot. I think that the shape of the lot has forced us to approach any improvements on the site in a unique way and then but for the TPZ Zone we would be able to do something very different here. So, it’s not necessarily that they’re irregularly shaped lot causes all the problems but the irregularly shaped lot in conjunction with the TPZ Zone set by the arborist creates an almost impossible situation where the homeowner, despite being able to improve the lot based on his current size, can’t effectively do so. And I think it’s… there was an interesting discussion about the easement. I’m not really clear why this easement stretches almost the length of the property was recorded as an easement as opposed to a lot line adjustment. It seems… I don’t know that it falls within the special circumstances precisely but the notion that there is effectively a non-legal defined property line that encompasses enough land to make this potentially not substandard. I don’t know if that would still be the case Attachment D because of the width but potentially not a substandard lot I think is interesting. I don’t know that it is a component of… I don’t know that it is a valid special circumstance because if for example, the property owner acquired the land that forms that easement, that would be a change in the size of the lot which is something we’re not supposed to consider. Although I will say that we have experienced in our review on this Commission situation like this that go back before time. That’s what… anything that happened 112-years ago is essentially prehistoric and one of the things that I think is problematic here is that looking at the shape of the lot you have to wonder why was it set up like this? So, I don’t know that that falls into the category of special circumstances but it is a component that I would suggest should be considered by the Council when they review it. So, one of the arguments that the appellant or applicant… I’m not really sure what the title is. Is it applicant tonight? Commissioner Alcheck: The appellant is the applicant? Ms. Tanner: The applicant is the applicant and the person who’s bringing this before us is the hearing requester. Commissioner Alcheck: The hearing… ok, I will continue… so all previous references to appellant is hearing requestor and from now on I’ll use that word. So, I’ll suggest some of the comments made by the hearing requester that… regarding the arborist report. Look, it's been Attachment D my experience that Dave Doctor may be the most highly regarded arborist in this City. Am I surprised that his initial finding was 42-feet and Staff and whoever pushed and he went down to 35, not surprising. I feel like arborists are consistently pushed into corners and asked to be more conservative. My impression is that he’s spent more than enough time evaluating the TPZ which is a significant component of the special circumstances that I think make Finding One possible. And I think it would be a waste of time to reassess or reinvestigate and a waste of resources. I think we should be able to rely on those two reports just based on his tenor. And then I would add that I think when you review the Staff report, I’m drawing your attention to Packet Page 47, the Staff… so Staff addresses all these special circumstances. That there’s a historic relevance here that makes this property unique so reshaping it or demolishing it or rebuilding would be an undesirable result to achieve the solution within the framework that’s allowed. Yeah and… I’ll end on this because I feel like I’m taking to much time. I’ll end on this. This is not the first Variance that I’ve reviewed as a Commissioner in 8-years but it is, to the best of my recollection, the first time Staff has recommended approval of one. And I mention that because it is true, Variances are supposed to… Staff has set an exceedingly high bar for Variances and but if we never grant one, in particular, one with this much supportive evidence then it’s essentially not a tool that our City uses. So, I take the recommendation by Staff to be quite influential on my conclusion but that’s it for me tonight. Thank you. Attachment D Chair Templeton: Thank you very much. Commissioner Riggs followed by Commissioner Summa. Commissioner Riggs: Well, I’ll be simple, I have four points. I evaluated the application in the Packet and I don’t really have questions. Point number two, I can make the findings and I think that too irritated the points that were just made. I find this a very good case for the application of a Variance, particularly I think some of the special considerations that Commissioner Alcheck mentioned. The tension with the Tree Protection Zone as well as the… I find the easement really provocative and I’m ready to move to the Staff recommendation when everybody else is ready. Chair Templeton: Thank you very much, Commissioner Riggs. Commissioner Summa. Commissioner Summa: Thank you very much and thank you to the Staff and all the presenters. There was a lot of really great information here and I have to say that I agree with the comments of Commissioner Alcheck. I think the fact this Variance… we have a Variance so it can be used basically and used in the right way. And this project has checked all the boxes in IR, Daylight Plane. It is effectively a… in terms of lot size compliant. I mean it’s odd to have an easement that only one property owner has a right to so it’s effectively part of their lot since there’s no other party that has any access or rights to that easement. Attachment D I am also struck by the thorough review of this project and I… in addition to making the findings which I won’t go into detail because I think Commissioner Alcheck did a great job. I also think that this property and this applicant adds value to the neighborhood. They are preserving a historic resource and a precious tree resource for the whole community. And I don’t… I’m not sure it’s appropriate really for someone else to suggest how they might build on their property but I think that it does look like kind of a half story from the front. More like a dormer than a full story and I think it’s appropriate with the architecture. And I think also that substandard lots in really old part of Palo Alto, there’s all kinds of crazy lot lines in situations that people… that you want to resolve in the best way for a homeowner that wants to bring all this value to the community. And I’m also struck by the support from nearly all of the neighbors and the fact that they feel this will improve their property values. So, I’m also ready to move the Staff recommendation. Chair Templeton: Thank you, Commissioner Summa. Commissioner Lauing. Commissioner Lauing: Yes, first I’d just like to acknowledge that this is a very complicated issue relative to Staff presentation and I thought it was just an unusually thorough report that came to us to really lay this thing out. And if you don’t come to every meeting you realize… you don’t realize that I don’t say that every meeting. Commissioner Riggs: (off mic) Nice job. Attachment D Commissioner Lauing: So, it’s particularly well done, really well done. I wanted to ask a couple questions before getting back to the substance. From the applicant… of the City from the applicant’s letter and so… no, not the applicant, the appeal person. [note – many people spoke at once:] Hearing requester. Commissioner Lauing: On Page 62. Vice-Chair Roohparvar: Hearing requester. Commissioner Lauing: Right we’ll work this out later. Page 62 which is the letter from Mr. Bronitsky and the last three paragraphs on that are basically all talking about the Tree Protection Zone and that’s been addressed by the homeowner as well. So, I take it… I’m just confirming this, I take it that the City is very comfortable saying that 35-feet is the thing that we’re supposed to be looking at right now? Ms. Tanner: That’s a great question Commissioner Lauing. We are comfortable with that 35- foot Tree Protection Zone. We do have a member of the Urban Forestry Staff here if you do have further questions. She can go into detail about the calculation method used for that zone if that was desired by the Commission. Attachment D Commissioner Lauing: No, I just wanted to confirm that that’s the City’s firm position and then on the next Page 63 there was also reference to a number of other properties that seem to be closer than 25. And assuming that’s true, can we just get some guidance on how that could occur? What’s there or? I know they’re not part of the Variance but I understand the appealer’s question there. Ms. Tanner: Yeah, I don’t think we need slide Christy but in case we do you’ll have the… mise well bring it back over here. Ms. Fong did look into other properties that we were made aware of by the hearing requester. And we did look at the Redwoods that were similar there and of similar size and stature and found that I think the Tree Protection Zone was consistent. There are certainly other types of trees on some of those properties, Oaks mainly, that are also protected but of a different size and stature and different root system than the Redwood trees. And so, we did compare the Redwood tree Tree Protection Zone on those neighboring properties. Do you want to speak to that any further Ms. Fong? Ms. Fong: So, I just want to speak on that from my planner perspective. I was looking at those trees and evaluated past permits and also the existing situation there. It appeared that those Tree Protection Zone is consistent with the previous building footprint. So basically, what is new right now on the site is pretty similar to a previous situation on-site when the development was built close to the tree. So, we are not supporting anything more than we are currently seeing on-site from the existing situation. We are just basically approving what was existed there. Attachment D Commissioner Lauing: Approving what? I didn’t hear that. Ms. Fong: What is existing on-site right now. So, we are not pushing the new building more toward the tree, we are maintaining what is already there as an existing impact. Commissioner Lauing: Ok and then I also just wanted to confirm what I think we’re saying and this is on the plan T-2 where it just shows that… I don’t know if I can get this number that quickly but it seems like about 75 percent because of the neighbor's houses and cottages and so of the existing tree zone is already been penetrated. So, if I understand that graph correctly that makes even more severe that fact that these trees are going to be at higher risk if there’s anymore building than what’s left of the free root growing zone for that tree are, correct? Ms. Tanner: Yes, I believe you’re referring to the neighboring properties where the root system of this tree stretch and there are perhaps some challenges maybe for the root system that currently exists. Commissioner Lauing: That’s right. Ms. Tanner: Yeah, we certainly wouldn’t… I think that’s part of what we want to look at with this tree is not just what is on property but the totality of the root system of the tree. And so, we certainly want to make sure that it is protected. Christy, do you want to speak to the impact? Are you asking if there are other proposed plans on the rest of the root system? Attachment D Commissioner Lauing: No. Ms. Tanner: Just the current condition? Commissioner Lauing: No, I’m asking if the situation is particularly severe because (interrupted) Ms. Tanner: Because of that. Commissioner Lauing: So much of the complete circle has already been penetrated and so there’s not as much left. It looks like a reasonable portion on this property is left but in terms of the entire growing area for the trees (interrupted) Ms. Tanner: That is correct. Commissioner Lauing: There’s not much left. Ms. Tanner: Yes, that is correct Commissioner Lauing. Commissioner Lauing: So, the severity is increased in this particular location because there were some comments from the folks that appealed that there’s another invasion in there so Attachment D why can’t we have an invasion and that’s the answer. Because there are already too many invasions and we need some space for that tree to spread its roots. Without going off on a tangent I think in some cases homeowners can say I need to take these trees out in order to continue… like the neighbor but in order to do my building and I can’t get it done. But the choice if the City or we are trying to opine on that of removing two Redwood trees or having a small addition as a second floor, I think is just… there’s no sense of spending any time on that as opposed to having it recorded that as a position. And just a comment on the perceived problem here, the perceived problem from the one who is appealing is that it is the views of a house I guess instead of nature but they took the trees down. The large trees so there are other large trees that can be put up at frankly any size depending on how much you want to spend per tree. That can be happening in the next month. So, I am… I just want to associate my thoughts on this thing with what Commissioner Alcheck had already said and what Commissioner Summa added. I do think the findings could be made and I’d be supportive. Chair Templeton: Thank you very much. Commissioner Hechtman. Commissioner Hechtman: Thank you. I’d like to actually start with a question before I begin my remarks. In the hearing requesters remarks tonight as in one of their… their second letter, the Attachment D Council second letter, he referred to the Page and Turnbull report. We saw the first page of it here in the Packet… in the supplemental Packet dated March 19th, 2019 discussing the possibility of I think a 1 ½-story addition in the back of the property. But as you read in the Staff report ultimately Page and Turnbull found ten of the ten factors for this proposed… the proposed plan before us tonight. And so, I’m wondering if was there a Page and Turnbull letter after the March 19th, 2019 that… and perhaps that could be explained to me. Ms. Tanner: Ms. French who is our historic expert will answer that question. Ms. Amy French, Chief Planning Official: Well, at least I’m the Historic Resources Board liaison. I see a lot of these things. So, the Secretary of Interior Standards, ten of them, yes, Page and Turnbull submitted a subsequent letter. This was an early version so we have version control issues. You’re not seeing the later version that the HRB did have a look at and did get to consider as they were looking at the revised plans that came back in. So, they did make the findings that all ten Secretary of Interior Standards for rehabilitation where met with the proposed plans. Commissioner Hechtman: Ok thank you for that clarification. So, I’d like to start with the function of the Variance generally and of course, it’s a state law. Same Variance findings apply in every jurisdiction throughout the state. We actually had a couple more to the state law, the Findings Three and Four but the… really the function is to look at a site and ask that if… ask if it's constrained in some unique way from enjoying the same privileges its neighbors do in the Attachment D same zoning district. And those constraints it says clear in case law, those constraints are often physical like a creek running through your property that squeezes you toward a setback but they can also be legal. Legal constraints on your property are constraints and those count too and so that was kind of the framework that I came with when I looked at this application for these Variances. And so, what I see is today there’s a single-story house on that property and there is some room at the front of that house between the face of that house where the door is and the front setback where there could be an expansion but there’s a law that says you can’t build out that direction. And that’s a law of the City and it has to do with the historic nature of this property and the importance of retaining the historic façade and so that is a constraint of this site. That’s one reason limiting available development moving forward and then looking backward from the back of the house where the current design does move back to the… basically to almost the edge of the 35-foot recommended setback from the tree. We have another legal constraint and that’s the TPZ and so this house is squeezed at front and back. And that raises the question of whether some modification of some law of the City is appropriate to allow this house to enjoy the same benefits of its neighbors in the R-2 Zone. So, I do appreciate the concerns of the neighbors at 441 and your articulation both in your personal emails and the comments and letters of your counsel. But one place that I felt that I was constrained in considering them and that is that our decision, our recommendation needs to be based on something called substantial evidence. And those are essentially facts and expert opinions on expert subjects supported by facts. One thing that’s clear and I know this better than most as a land-use lawyer who is occasionally reminded of this, lawyers’ arguments Attachment D are not substantial evidence. They can contain facts that are evidence but they are not themselves substantial evidence and so while I was interested in the position the 441 neighbors have on whether or not a further incursion into the TPZ is advisable. Recognizing as I know they do that the recommend incursion is 27 percent leaving 73 percent uninvaded and in fact, it’s already squeezed down to only 27 percent uninvaded. But recognizing that I don’t have in front of me an arborist analysis that says it’s ok to further invade that. The one I have says it’s not ok and I do understand that the TPZ is not just an issue of distance of a tree from a structure. I know it’s more complicated than that because that’s evident in the record. And so, to me, that’s one of the things that I found constraining in my desire in wanting to give full credit to that position and look at the… whether the TPZ could be reduced. I don’t have any… I don’t have an arborist it could be. Another aspect that of substantial evidence that I think is… that I’m guided by is, of course, it needs to be relevant. And I thought the neighbors at 441, their counsel made a good point that the personal circumstances of the applicant are not relevant and I agree with that and but I note that in the Director’s findings which are the findings from which the hearing request springs. Those didn’t make reference to those personal circumstances so I don’t believe that they’re part of the findings. So, while I agree with the point I think that Staff and the Director appropriately handled those. Another frankly irrelevant in my view aspect which I’ve heard in both directions here is value. That’s not apart of any finding here and I think experts may… well, we had a disagreement in Attachment D this room as to whether value would be affected. But I can… it’s not to my thinking part of any of the findings. So, as I’m looking at this what I am seeing is we have a Director’s decision with a series of findings and I’ve reviewed those and I agree with the findings. There are three additional findings that I think support the granting of a Variance and I’d like to… and those are all based on information in the record. I’d like to provide those because I don’t think they are clearly delineated in the Director’s findings. And so, I’d ask to the extent my fellow Commissioners are intending to support the Staff recommendation, that they’d consider whether or not they’d want to include these additional findings of fact with the findings that are made by the Director. So, the first one is a finding of fact supporting the Findings One and Two, these are the… the Findings One and Two are the state law findings for a Variance. As reflected on Sheet A 2.0 of the current plan, 840 Kipling has a current height of approximately 18-feet. And the adjacent properties at 836, 834 and 832 Kipling, all of which are in the same zoning district as 840, are approximately 18-feet, 23-feet, and 26-feet respectively. So, therefore, exceeding the 17-foot height is a privilege enjoyed by other properties in the same R-2 Zoning District. And I think again that is a finding of fact that supports the granting of this Variance, the first Variance, which is to allow construction to exceed 17-feet. Then the second additional finding of fact, this also addresses the state law Findings One and Two. This one relates to the other Variance which is at the side… the side… the rear sidewall of Attachment D the property. The 6-foot segment of wall which is the subject of the second Variance is replacing an existing 6-foot wall segment which currently encroaches in the side yard set back area. The replacement does not lengthen the area of encroachment and modestly reduces the square footage which would otherwise have been added to the second floor. And then the last additional finding of fact, this one supports Finding Number Three which relates to the Comp Plan and the local area plan, the SOFA CAP. The plan is proposed for two- stories, it’s consistent with the .35 site coverage max which is applicable to a… as I understand it to a two-story home in the R-2 and to the .45 FAR max which again, is applicable to the R-2 Zone. And incidentally that .45 FAR max does not require a Variance so that plan is consistent with the applicable site coverage max and the FAR max but it does require a Variance to exceed 17-feet in height. If alternatively, we take the 489-square feet which… and construct those on the first floor at the back of the house, in addition to further invading the TPZ against the recommendation of the arborist, it would require another Variance for a 40… for a .45 site coverage where .4 site coverage is allowed for a single-family home. So really here what we have is not a choice between a Variance and no Variance but a choice between two different Variances. One to go up and one to go back and again, that’s ignoring the TPZ. In this choice between the two Variances, the Variance to exceed 17-feet is more consistent with the Comprehensive Plan and the SOFA CAP because both of these plans include policies to protect and preserve Heritage Trees. And so that’s the third, again supplemental finding of fact that I would suggest be included with the recommendation to the Council. Thank you. Attachment D Chair Templeton: Thank you very much, Commissioner Hechtman. Commissioner Roohparvar [note -Vice-Chair Roohparvar] did you… you’re good? Ok. I just have a few quick comments before we move onto the considerations of the findings. So first of all, I just want to thank Ms. Fong for a very thorough presentation and report. We all found it… a lot of the details we were looking for were already there and it just an absolute pleasure to read so thank you. I would also like to thank the hearing requester and the applicant. You both gave very compelling presentations and presented your case very strongly. I will also be agreeing with my fellow Commissioners who have spoken about moving forward with this Variance request for all the reasons that were given. Specifically, or especially that the Variance is meant to… the Variance process is meant to address edge cases like this. I particularly appreciated Commissioner Alcheck’s point about the Variance being specific to a lot but that the proposals conforms with the zone requirements. I also wanted to say that many of the constraints where addressed on an individual basis rather the problem is we have these multiple constraints and because like Commissioner Hechtman said because we have the multiple constraints you can’t address them individually. You have to think of them in a combination so I think that strengthens the justification for approval of this Variance. Also, I appreciate Commissioner Hechtman’s comments about legal constraints and site coverage. I thought those were good points that we had not seen through that lens earlier. Attachment D And then another comment about the push/pull aspect of how we can view this and it may help the hearing requester come to terms. I would also say that the view could be harmed if the tree were to be damaged or to die as well. Like there are multiple ways that a view can change and it’s not just the building of a structure. There are a variety of risks that have been evaluated by the team, by the Staff and the applicant. And I think that it is admirable to the extent to which that the applicant has been thoughtful and considerate and engaging in the various processes and getting the input and the feedback from as many applicable sources as possible including the HRB and the tree protection. So those are the reasons I’m inclined to support the Variance request. Thank you. It looks like we two comments, Commissioner Riggs and then Vice-Chair Roohparvar. Commissioner Riggs: I was going to make a motion so Vice-Chair Roohparvar. Chair Templeton: Oh thanks. Vice-Chair Roohparvar: Yeah, I’ll be brief. I just had one follow up question for counsel, City Council [note – she addressed her question to legal Staff]. Correct me if I’m wrong, does a property owner have a right to their view? I don’t believe they have a legal right to views. I think that (interrupted) Attachment D Chair Templeton: (off mic) Daylight Plane. Vice-Chair Roohparvar: No, no, not Daylight Plane, just plane right to it. Ms. Lee: Yes. Vice-Chair Roohparvar: Do they have a right… you have a right to (interrupted) Ms. Lee: You’re correct Commissioner [note – Vice-Chair]. Under California law, there’s no general right to a view. Vice-Chair Roohparvar: Right to a view. Ok, that’s right, there’s Daylight Plane privacy but no general right to a view. That’s just the point of clarification I wanted, thank you. Commissioner Lauing: That’s actually stated on Page 49 of the report so. Vice-Chair Roohparvar: Thank you. Commissioner Lauing: In different words so. Chair Templeton: Thank you though it’s a good point to bring up for both of you. Alright, Commissioner Riggs, you wanted to make a motion? Attachment D MOTION Commissioner Riggs: Yes, so I’ll make a motion to support the Staff recommendation to support the second story addition and the Variance and I’ll… but also, I recommend that Staff include the three additional findings suggested by my fellow Commissioner. The first two being tied to Findings One and Two and you can correct me, Commissioner Hechtman. The first two are exceeding the 17-foot height limit is a privilege supported by other landowners. The second one would be the rear side wall replaces an existing encroachment. I’m just paraphrasing and then the third finding that he had which supported I believe Finding Three was the idea that you have limitations with regards to site coverage and FAR. And basically, you’re choosing between two different Variances and a 17-foot Variance is more consistent with the neighborhood than adjusting the FAR given the limitations of the site. Hopefully, Staff can adjust those but I think that we should include those in the recommendation. SECOND Commissioner Lauing: I’ll second. Chair Templeton: You beat me to it. I was going to recognize Commissioner Roohparvar… Vice- Chair Roohparvar. Alright so seconded by Commissioner Lauing. Any discussion? Commissioner Alcheck. Attachment D Commissioner Alcheck: Ok so I just… I have to ask because we’re going to vote on it. I didn’t take note while you were talking but it is the notion that there is… this is to the number three. Is the notion that there is… it’s a choice between two Variances. Is the notion that because of the… excluding the TPZ for the moment which I don’t think we need to do that but excluding the TPZ Zones, that the theoretical FAR there allowable would exceed the lot coverage requirement somehow would be (interrupted) Commissioner Riggs: (off mic) Consistent with R-2. Commissioner Alcheck: Relevant to (interrupted) Commissioner Lauing: With R-2. Commissioner Alcheck: Pursuing a Variance? And the reason I ask that is because if you are theoretically allowed to add a certain amount of FAR but your site coverage would be violated. My impress was you’re not entitled to that FAR. So, it wouldn’t necessarily be something that you could (interrupted) Commissioner Hechtman: Right that was the… that’s the point. Sorry through the Chair, so the point was if they wanted to pursue that same square footage, right now they have .45 FAR, Attachment D right which happens to be in two levels. If you push the top level down to the bottom, it’s still .45, it's just all on the ground level which makes it a .45 site coverage and a .45 FAR, right? Commissioner Alcheck: Right, no (interrupted) Commissioner Hechtman: So, the .45 FAR is allowed but the site coverage would exceed and you’re correct that the law doesn’t allow it but if you wanted it, you’d be seeking a Variance. Commissioner Alcheck: Right no I guess what I’m suggesting is I would find it would unlikely that Staff would support the rationale for a Variance in that particular situation. You take for example a single-overlay area, they’re not entitled to a second story, they may be entitled by the… it’s hard to imagine a scenario where they’re lot size would entitle them to a FAR that would be larger than their site coverage maximum. It seems like those are intentionally similar but (interrupted) Chair Templeton: Commissioners I’m going to reign you in here on this one. It’s a bit of a hypothetical and I love the thought (interrupted) Commissioner Alcheck: Yeah, it’s a little (interrupted) Chair Templeton: I love the thought exercise but (interrupted) Attachment D Commissioner Riggs: Alright, wait, can I weigh in? I (interrupted) Chair Templeton: Is there any adjustment you’d make? Yes, Commissioner Riggs. Chair Templeton: Well I think that we can condition it by tweaking the motion a little. That we can make them that Staff consider these suggestions in the report to Council. I don’t know that we need to be prescriptive on these because there will be a Staff report to Council. These were suggestions by Commissioner Hechtman. If we build them into the motion as suggestions to Staff then they’ll be presented as such if appropriate. And so, I would assume that spirit would be carried forward in the motion. If I need to be explicative in the motion I will. Commissioner Alcheck: Can I… I’ll just say this. I did find it very compelling the notion that the SOFA guidelines specifically made a preference for tree preservation. So, I think from that perspective that is a good finding of fact and I actually think that adding the finding of facts would be great so I support the idea of making a hard recommendation. I just… forget it. Forget I said anything. I apologize. I just got… it was confusing and complex and I apologize for asking the question. Chair Templeton: Alright I have to check in with our seconder, do we want to make the change that (interrupted) Commissioner Riggs: I believe Staff (interrupted) Attachment D Chair Templeton: Oh, did you… ok, Staff? Ms. Tanner: I just wanted to, if I may support what Commissioner Riggs is suggesting. I think it would be unlikely for us to… in the findings and not that this is what Commissioner Hechtman was suggesting, to compare it to a hypothetical Variance because that’s not what’s before us. But what I did take from that and do appreciate is both the Comprehensive Plan and SOFA how they would prefer for tree preservation, historic source preservation which is in line with the spirit of what you’re saying and kind of the thrust of that. So, whether you need to amend the motion to be that Staff consider the spirit of these things, I will say that’s what I was taking from that and if that is indeed the spirit of the suggestion. I think that is fine and consistent with what Staff would be comfortable pursuing. Chair Templeton: Commissioner Riggs. Commissioner Riggs: Thanks. I mean given what I think what this dialog we just had, I think the motion is fine it said. I think the way I phrased it was that they consider Commissioner Hechtman’s suggestions and I think Staff… I would trust that Staff would carry those forward to Council. So, I would prefer to just leave the motion as is. Chair Templeton: Sounds good. Seconder, we’re good? Attachment D Commissioner Lauing: Yeah no I thought you were going to try to take them out again which I think they should… they should stay in there. Ok, we got… aright vote. VOTE Chair Templeton: I… any other discussion? Alright, let’s vote. If you are in support of the motion on the table by Commissioner Riggs please raise your hand. Alright, any opposed? Any abstain? Oh no, I’m just kidding. We’re… it was a 7 to 0 so. Alright well thank you very much and thank you again for your time and coming before us. And especially to the folks outside the application process who came to chime in, I appreciate that so much. MOTION PASSED 7(Summa, Alcheck, Hechtman, Templeton, Roohparvar, Lauing, Riggs)-0 Commission Action: Motion by Riggs, seconded by Lauing. 7-0 Attachment E Project Plans Hardcopies of project plans are provided to Director’s Hearing members. These plans are available to the public online and by visiting the Planning and Community Environmental Department on the 5th floor of City Hall at 250 Hamilton Avenue. Directions to review Project plans online: 1. Go to: https://paloalto.buildingeye.com/planning 2. Search for “840 Kipling Street” and open record by clicking on the green dot 3. Review the record details and open the “more details” option 4. Use the “Records Info” drop down menu and select “Attachments” 5. Open the attachment named “Proposed Approved Plan- Received on November 20, 2019” City of Palo Alto (ID # 11204) City Council Staff Report Report Type: Consent Calendar Meeting Date: 4/20/2020 City of Palo Alto Page 1 Summary Title: Amended and Restated Agreement for the San Francisquito Creek Joint Powers Authority Title: Approval of the Amended and Restated Agreement for the San Francisquito Creek Joint Powers Authority between the Cities of Palo Alto, Menlo Park, and East Palo Alto, the Santa Clara Valley Water District, and the San Mateo County Flood and Sea Level Rise Resiliency District, to Reflect the Recent Name Change of the Latter Agency and the Current Administrative Practices of the JPA From: City Manager Lead Department: Public Works Recommendation Staff recommends that Council approve and authorize the City Manager or his designee to execute the Amended and Restated San Francisquito Creek Joint Powers Agreement (Attachment A) between the Cities of Palo Alto, Menlo Park, and East Palo Alto, the Santa Clara Valley Water District, and the San Mateo Flood and Sea Level Rise Resiliency District to reflect the recent name change of the latter agency and the current administrative practices of the JPA, which was formed for the primary purpose of managing the joint contribution of services and providing policy direction on issues of mutual concern relating to San Francisquito Creek. Background In 1998, the San Francisquito Creek flooded and damaged approximately 1,700 properties. On May 18, 1999, the City Council approved the Joint Powers Agreement (Staff Report #214:99), forming the San Francisquito Creek Joint Powers Authority (SFCJPA) and enabling the five member agencies to jointly exercise their powers and make decisions on creek policies and improvements. Since entering into the Joint Powers Agreement, changes have occurred which prompt the amendment of the original agreement. Discussion On January 1, 2020, the San Mateo County Flood Control District changed its name to the San Mateo Flood and Sea Level Rise Resiliency District. This name change necessitated an update to the JPA agreement. In addition, the JPA board of directors recommended other updates to the CITY OF PALO ALTO City of Palo Alto Page 2 agreement. Many of these updates involved minor language changes to reflect current practices of the JPA or updates to State law related to JPAs. Other updates involved larger policy issues relative to expanding the JPA’s enumerated purposes and powers. At the City manager/executive director meeting, staff discussed dividing the amendment process into two phases. The first phase would address the administrative amendments and the second phase would address the more substantive policy-oriented updates. The reason for this is the substantive amendments needed more time for discussion amongst the member entities. The administrative amendments encompassed in this first phase are shown in track changes on Attachment B and include clarifications and modifications regarding the San Mateo County Flood Control District’s name change; who can serve as a JPA Board member timing of Board elections; maintenance of both operating and capital budgets; designation of fiscal year; updated insurance and bonding provisions; expanded options for audits and other financial controls; modification to JPA expulsion and termination voting provisions; JPA agreement amendment process and inclusion of a standard “no third party beneficiaries” provision. While the SFCJPA is not a signatory agency to this agreement, on February 27, 2020 the SFCJPA Board voted unanimously to approve the amended and restated agreement to show to their respective member agencies that the SFCJPA Board members support the proposed updates. Council Member Cormack serves as Palo Alto’s representative on the SFCJPA Board, with Council Member DuBois serving as the alternate. Resource Impact This recommendation does not represent any changes to the existing agreement in terms of resources. Policy Implications This recommendation does not represent any changes to existing City policies. Stakeholder Engagement Stakeholder engagement is not required as part of this agreement amendment. Environmental Review Council approval of the Amended and Restated San Francisquito Creek Joint Powers Agreement is exempt from the California Environmental Quality Act (CEQA) because it can be seen with certainty that entering into the agreement will not result in any environmental impacts. Attachments:  A - Amended and Restated JPA Agreement  B - Amended and Restated JPA Agreement - track changes San Francisquito Creek Joint Powers Authority Amended and Restated Joint Powers Agreement 04/02/20 JOINT POWERS AGREEMENT FOR THE SAN FRANCISQUITO CREEK JOINT POWERS AUTHORITY AMENDED AND RESTATED as of January 1, 2020 Attachment A San Francisquito Creek Joint Powers Authority Amended and Restated Joint Powers Agreement 04/02/20 i JOINT POWERS AGREEMENT TABLE OF CONTENTS 1. CREATION OF THE SAN FRANCISQUITO CREEK JOINT POWERS AUTHORITY ......................................................................................................................1 2. PURPOSES ..........................................................................................................................2 3. PARTIES TO AGREEMENT .............................................................................................2 4. TERM OF AGREEMENT ...................................................................................................2 5. POWERS OF THE AUTHORITY ......................................................................................2 6. MEMBER ENTITY APPROVALS AND RESPONSIBILITIES .......................................3 7. PROJECT PARTICIPATION APPROVAL AUTHORITY ...............................................3 8. MEMBERSHIP....................................................................................................................3 9. BOARD OF DIRECTORS ..................................................................................................3 10. BOARD MEMBERS ...........................................................................................................4 11. OFFICERS ...........................................................................................................................5 12. FISCAL YEAR ....................................................................................................................5 13. BUDGET .............................................................................................................................5 14. ANNUAL AUDIT AND AUDIT REPORTS......................................................................5 15. ESTABLISHMENT AND ADMINISTRATION OF FUNDS ...........................................6 16. WITHDRAWAL..................................................................................................................6 17. EXPULSION .......................................................................................................................6 18. TERMINATION AND DISTRIBUTION ...........................................................................7 19. NOTICES .............................................................................................................................7 20. PROHIBITION AGAINST ASSIGNMENT .......................................................................7 Attachment A San Francisquito Creek Joint Powers Authority Amended and Restated Joint Powers Agreement 04/02/20 ii 21. AMENDMENTS .................................................................................................................7 22. SEVERABILITY .................................................................................................................7 23. LIABILITY OF THE AUTHORITY; RELEASE AND INDEMNITY..............................7 24. GOVERNING LAW ............................................................................................................8 25. COUNTERPART ................................................................................................................8 26. AGREEMENT COMPLETE ...............................................................................................8 27. NO THIRD-PARTY BENEFICIARIES..............................................................................8 Attachment A San Francisquito Creek Joint Powers Authority Amended and Restated Joint Powers Agreement 04/02/20 1 SAN FRANCISQUITO CREEK JOINT POWERS AGREEMENT This Amended and Restated Agreement (“Agreement”) is made by and among the City of Menlo Park, the City of Palo Alto, the City of East Palo Alto, the Santa Clara Valley Water District, and the San Mateo County Flood and Sea Level Rise Resiliency District (“Member Entities”), all of which are public entities organized and operating under the laws of the State of California and each of which is a public agency as defined in California Government Code section 6500. RECITALS A. The Joint Exercise of Powers Act, being Government Code sections 6500 et seq. (the “JPA Law”), permits two or more local public entities by agreement to jointly exercise any power common to them. B. Following years of effort to address environmental and flooding concerns related to the watershed and floodplain of San Francisquito Creek (encompassing approximately 50 square miles from the Santa Cruz Mountains to San Francisco Bay), and soon after the flood of record in 1998 damaged approximately 1,700 properties, the Member Entities established the San Francisquito Creek Joint Powers Authority pursuant to that certain “Joint Exercise Agreement Creating the San Francisquito Creek Joint Powers Authority,” dated as of May 18, 1999, to collectively contribute resources and implement policies and projects of mutual interest relating to the primary natural features that unite them, including the San Francisquito Creek (“Creek”). C. The governing body of each Member Entity has determined that it is in the Member Entity’s best interest and in the public interest that this Amended and Restated Agreement be executed to make minor procedural updates, including the change on January 1, 2020 of the San Mateo County Flood Control District to the San Mateo County Flood and Sea Level Rise Resiliency District. NOW, THEREFORE, the Member Entities, by, between and among themselves, in consideration of the mutual benefits, promises, and agreements set forth below, hereby agree as follows: 1. CREATION OF THE SAN FRANCISQUITO CREEK JOINT POWERS AUTHORITY. Pursuant to the JPA Law, the Member Entities create a public agency, separate and apart from the Member Entities to be known as the San Francisquito Creek Joint Powers Authority (the “Authority”). Pursuant to Government Code section 6508.1, the debts, liabilities, and obligations of the Authority shall not constitute debts, liabilities, or obligations of any party to this Agreement. A Member Entity may separately contract for or assume responsibility for specific debts, liabilities, or obligations of the Authority. For purposes of, and to the extent required by, Government Code section 6509, in exercising its powers, the Authority shall be Attachment A San Francisquito Creek Joint Powers Authority Amended and Restated Joint Powers Agreement 04/02/20 2 subject to the restrictions upon the manner of exercising the powers of the City of Menlo Park, except as otherwise authorized or permitted by the JPA Law. 2. PURPOSES. This Agreement is entered into by Member Entities under the JPA Law for the following purposes: a. To facilitate and perform bank stabilization, channel clearing and other Creek maintenance. b. To plan flood control measures for the San Francisquito Creek watershed. c. To take actions necessary to preserve and enhance environmental values and instream uses of San Francisquito Creek. d. To coordinate emergency mitigation and response activities relating to San Francisquito Creek. e. To make recommendations to Member Entities for funding and alternatives for long term flood control for Member Entity consideration. 3. PARTIES TO AGREEMENT. Each Member Entity certifies that it intends to and does contract with every other Member Entity which is a signatory to this Agreement. Each Member Entity also certifies that the deletion of any Member Entity from this Agreement does not affect this Agreement nor each Member Entity’s intent to contract with the Member Entities then remaining. Pursuant to Assembly Bill 825 (Chapter 292, Statutes of 2019), which amended the San Mateo County Flood Control District Act to provide for the San Mateo County Flood and Sea Level Rise Resiliency District, the Member Entities agree that the San Mateo County Flood and Sea Level Rise Resiliency District is the entity formerly known as the San Mateo County Flood Control District, and as such is subject to the terms and conditions of this Agreement. 4. TERM OF AGREEMENT. This Agreement became effective as of May 18, 1999 and continues in full force until terminated in accordance with Paragraph 18. (Termination and Distribution). 5. POWERS OF THE AUTHORITY. The Authority through its Board of Directors is authorized, in its own name and subject to the limitations set forth below, to do all acts necessary to fulfill the purposes of this Agreement referred to in Paragraph 2. (Purposes) including, but not limited to, each of the following: a. Make and enter into contracts; b. Incur debts, liabilities, and obligations, provided that no debt, liability, or obligation of the Authority shall be a debt, liability, or obligation of a Member Entity except as separately agreed to by a Member Entity; Attachment A San Francisquito Creek Joint Powers Authority Amended and Restated Joint Powers Agreement 04/02/20 3 c. Receive contributions and donations of property, funds, services, and other forms of assistance from any source; d. Sue and be sued in its own name; e. Contract with independent consultants and/or contractors; f. Receive, collect, and disburse monies; g. Carry out other duties as required to accomplish other responsibilities as set forth in this Agreement; h. Assign, delegate, or contract with a Member Entity or third party to perform any of the duties of the Board including, but not limited to, acting as administrator for the Authority; and i. Exercise all other powers necessary and proper to carry out the provisions of this Agreement. These powers shall be exercised in the manner provided by applicable law and as expressly set forth in this Agreement. 6. MEMBER ENTITY APPROVALS AND RESPONSIBILITIES. Each Member Entity has the approval authority, obligations and responsibilities set forth in this Agreement. No action of the Authority shall be effective or binding unless and until such action has been approved in accordance with Subparagraph “e.” (Action of the Board) of Paragraph 10. (Board Members) by the Board of Directors consistent with a budget approved by independent action of each Member Entity’s governing body. 7. PROJECT PARTICIPATION APPROVAL AUTHORITY. Member Entities shall have the right to determine independently whether to participate in any capital improvement project. No capital improvement project shall be approved by the Authority unless and until Member Entities sufficient to fund the project fully have approved the project by independent action of each such funding Member Entity’s governing body. 8. MEMBERSHIP. New Member Entities may be added to the Authority by amending this Agreement, as described in Paragraph 21. (Amendments), and Member Entities may withdraw or be expelled, as described in Paragraph 16. (Withdrawal) and Paragraph 17. (Expulsion). 9. BOARD OF DIRECTORS. a. Directors. There shall be a Board of Directors (the “Board”) to govern the affairs of the Authority. The Board shall be comprised of one director, and one alternate director, from each Member Entity. Each director has one vote. An alternate director may cast a vote as a member of the Board of Directors only in the absence of the director from that same Attachment A San Francisquito Creek Joint Powers Authority Amended and Restated Joint Powers Agreement 04/02/20 4 Member Entity. Each director and alternate director shall be a member of the governing body of the Member Entity and shall be designated by its governing body; provided, however, that no two directors and no two alternate directors shall be from the same governing body of any Member Entity. b. Compensation. Directors and alternate directors are not entitled to compensation by the Authority. The Board may authorize reimbursement of expenses incurred by directors or alternate directors. c. Powers. The powers of the Board are each of the powers of the Authority not specifically reserved to the Member Entities by this Agreement. The Member Entities retain the following powers: (1) The designation of the Board as specified in Subparagraph “a.” of Paragraph 9. (Board of Directors); (2) Approval of an amendment to this Agreement as specified in Paragraph 21. (Amendments); (3) Approval of actions pursuant to Paragraph 6. (Member Entity Approvals and Responsibilities); (4) Approval of project participation as specified in paragraph 7. (Project Participation Approval Authority); and (5) Approval of the annual budget of the Authority as specified in Paragraph 13. (Budget). 10. BOARD MEMBERS. a. Meetings. The Board shall hold at least one regular meeting each year, at which time the Board shall elect its officers as appropriate to comply with Paragraph 11. (Officers). The Board shall fix the date, hour, and place at which each regular meeting is to be held. To the extent practicable, each Board meeting shall be held in Northern Santa Clara County or Southern San Mateo County. The Chair presides at all meetings. A special meeting may be called upon written request by the Chair or at least two directors. b. Brown Act. Each regular, adjourned regular, or special meeting of the Board shall be called, noticed, held, and conducted in accordance with the Ralph M. Brown Act (Sections 54950, et seq., of the Government Code). c. Minutes. The Clerk of the Board shall draft minutes of each regular and special meeting of the Board, which shall be considered for approval by the Board at a subsequent regular meeting. Attachment A San Francisquito Creek Joint Powers Authority Amended and Restated Joint Powers Agreement 04/02/20 5 d. Quorum. No business may be transacted by the Board without a quorum of members of the Board being present except that less than a quorum may adjourn from time to time. A quorum consists of a majority of the members of the Board. e. Action of the Board. Except as otherwise specified in this Agreement, any action of the Board shall require a vote of a majority of the Board. 11. OFFICERS. a. Officers. The officers of the Authority are the Chair, Vice-Chair, and Secretary. b. Election/Term/Duties. The officers shall be elected or appointed by the Board at its first meeting of the calendar year, unless that is delayed by an action of the Board. The term of office for Chair, Vice-Chair, and Secretary is one year. The officers shall assume the duties of their offices upon being elected or appointed, as appropriate. If any of the Chair, Vice-Chair, or Secretary ceases to be a member of the Board, the Board shall elect or appoint a new officer at the next regular meeting of the Board held after the vacancy occurs. c. Compensation. Officers are not entitled to compensation by the Authority. The Board may authorize reimbursement of expenses incurred by officers. d. Appointment/Contract. The Board may appoint such officers and may hire or contract with such persons or firms as it considers necessary to carry out the purposes of this Agreement. 12. FISCAL YEAR. The first fiscal year of the Authority is July 1, 1999 through June 30, 2000. Each subsequent fiscal year of the Authority shall begin on July 1st and end on June 30th. 13. BUDGET. The Board shall adopt an annual operating budget, which shall be separate from the Authority’s capital projects budget. The operating budget shall include the proposed contribution from each Member Entity for the fiscal year and other sources of income. The operating budget shall not be effective unless and until the governing body of each Member Entity has approved that Member Entity’s contribution to the budget. Member Entity contributions shall become immediately due and payable to the Authority upon adoption of the budget, unless expressly provided otherwise in the budget. 14. ANNUAL AUDIT AND AUDIT REPORTS. The Board shall cause an annual financial audit to be made by an independent certified public accountant with respect to all Authority receipts, disbursements, other transactions, and entries into the books. A report of the financial audit shall be filed as a public record with each Member Entity. The audit shall be filed no later than as required by State law. The Authority shall pay the cost of the financial audit from its annual operating budget in the same manner as other administrative costs. Attachment A San Francisquito Creek Joint Powers Authority Amended and Restated Joint Powers Agreement 04/02/20 6 15. ESTABLISHMENT AND ADMINISTRATION OF FUNDS. a. Accountability. The Authority is responsible for the strict accountability of all funds and reports of all receipts and disbursements. It shall comply with every provision of law relating to the establishment and administration of funds, particularly Section 6505 of the California Government Code. The funds shall be accounted for on a full accrual basis. b. Investment/Disbursement. The Authority shall receive and disburse funds only in accordance with policies and procedures established by the Board and in conformity with applicable law. c. Insurance/Bond. The Authority shall procure, carry and maintain, in full force and effect, at all times during the term of this Agreement, such insurance and bonds to protect the Authority and its members of the Board, officers, employees, agents and Member Entities, as deemed appropriate by the Board. d. Depository and Auditor Controller. The Board shall designate one of its officers, employees or a third party to perform all acts required by Government Code Sections 6505 (regarding an annual audit), 6505.1 (regarding charge of and access to property), 6505.5 (regarding the depository and custodian of money), and 6505.6 (regarding independent audit where an officer or employee acts as treasurer, auditor or both), as such laws are amended from time to time. 16. WITHDRAWAL. Member Entities may withdraw from the Authority for subsequent fiscal years by providing written notice to the Authority and each Member Entity on or before May 1 of any fiscal year. Withdrawal shall be effective on July 1 of the next fiscal year. This shall be the exclusive means by which a Member Entity may withdraw from the Authority. Any Member Entity that withdraws shall remain liable for any budget contributions or capital improvement project participation approved before withdrawal. Any Member Entity that withdraws shall remain liable for any and all demands, claims, or liabilities of any nature, including death or injury to any person, property damage, or any other loss caused by or arising out of that party’s performance or failure to perform the obligations assumed before the Member Entity withdraws from this Agreement. Any Member Entity that withdraws shall remain subject to the provisions of Paragraph 23. (Liability of the Authority; Release and Indemnity) with respect to any event or occurrence taking place before the Member Entity withdraws. 17. EXPULSION. The Authority may expel a Member Entity from the Authority by a four-fifths (4/5) vote of the Board for a breach of this Agreement determined by the Board to be a material breach. Any Member Entity that has been expelled pursuant to this paragraph shall have no further liability or obligation pursuant to this Agreement after the effective date of such expulsion; except such Member Entity shall remain liable for any and all demands, claims, or liabilities of any nature, including death or injury to any person, property damage, or any other loss caused by or arising out of that party’s performance or failure to perform the obligations assumed before the Member Entity was expelled, including any budget contributions or capital improvement project participation approved before expulsion. Any Member Entity that has been Attachment A San Francisquito Creek Joint Powers Authority Amended and Restated Joint Powers Agreement 04/02/20 7 expelled shall remain subject to the provisions of Paragraph 23. (Liability of the Authority; Release and Indemnity) with respect to any event or occurrence taking place before the Member Entity was expelled. 18. TERMINATION AND DISTRIBUTION. a. Termination. This Agreement shall continue until terminated. This Agreement may be terminated by the written consent of four-fifths (4/5) of the Member Entities; provided, however, this Agreement and the Authority shall continue to exist after termination for the purpose of disposing of all claims, distribution of assets, and all other functions necessary to conclude the obligation and affairs of the Authority. b. Surplus. In the event that the Authority is terminated, any surplus money on deposit in any fund or account of the Authority shall be returned in proportion to the contributions made as required by Section 6512 of the California Government Code. The Board is vested with all powers of the Authority for the purpose of concluding and dissolving the business affairs of the Authority, including for the disposition, division, or distribution of any property acquired as a result of the joint exercise of powers. 19. NOTICES. Notices to each Member Entity under this Agreement are sufficient if mailed to its respective address on file with the Authority. 20. PROHIBITION AGAINST ASSIGNMENT. No Member Entity may assign a right, claim, or interest it may have under this Agreement, and any such assignment shall be void. No creditor, assignee, or third-party beneficiary of a Member Entity has a right, claim, or title to any part, share, interest, fund, or asset of the Authority. 21. AMENDMENTS. This Agreement may be amended by approval by the governing body for each and every Member Entity. A proposed amendment must be submitted to each Member Entity at least thirty (30) days in advance of the date when the Member Entity considers it. An amendment is to be effective immediately unless otherwise designated. 22. SEVERABILITY. If a portion, term, condition, or provision of this Agreement is determined by a court to be illegal or in conflict with the law of the State of California, or is otherwise rendered unenforceable or ineffectual, the validity of the remaining portions, terms, conditions, and provisions is not affected. 23. LIABILITY OF THE AUTHORITY; RELEASE AND INDEMNITY. Funds of the Authority may be used to defend, indemnify, and hold harmless the Authority, any Member Entity, any member of the Board, and each officer, employee and agent of the Authority for their actions taken within the scope of their duties while acting on behalf of the Authority. The parties to this Agreement release each other and agree to hold each other harmless, as well as their officers and employees, for any loss or liability arising from their respective activities pursuant to this Agreement. Except as otherwise provided herein, each party agrees to indemnity, defend and hold harmless the other parties, their officers, agents, and employees from any and all Attachment A San Francisquito Creek Joint Powers Authority Amended and Restated Joint Powers Agreement 04/02/20 8 demands, claims, or liabilities of any nature, including death or injury to any person, property damage, or any other loss caused by or arising out of that party’s performance or failure to perform the obligations assumed under this Agreement. Each Member Entity agrees that legal counsel for any Member Entity may be designated by the Board to represent the Authority by performing legal services, including litigation, and that any potential conflict of interest arising from such representation shall be deemed waived by the Authority and Member Entity, unless an actual adverse relationship exists between the Member Entity and the Authority with respect to the particular matter. The designation of legal counsel from a Member Entity shall be with the approval of that Member Entity. 24. GOVERNING LAW. This Agreement shall be governed by and construed in accordance with the laws of the State of California. 25. COUNTERPART. This Agreement may be executed in counterparts, each of which shall be an original, but all of which shall constitute one instrument. 26. AGREEMENT COMPLETE. The foregoing constitutes the full and complete Agreement of the Member Entities. There are no oral understandings or agreements not set forth in writing herein. 27. NO THIRD-PARTY BENEFICIARIES. Nothing in this Agreement, whether express or implied, shall be construed to give any person or entity, other than the parties hereto, any legal or equitable right, remedy or claim under or in respect of this Agreement or any covenants, conditions, or provisions contained herein. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the dates set forth below. [SIGNATURES TO FOLLOW ON SEPARATE PAGES] Attachment A San Francisquito Creek Joint Powers Authority Amended and Restated Joint Powers Agreement 04/02/20 9 DATED: , 2020 CITY OF MENLO PARK By: ___________________________ Cecilia Taylor, Mayor ATTEST: By: ___________________________ Judi Herren, City Clerk APPROVE AS TO FORM: ___________________________ Cara E. Silver Interim City Attorney Attachment A San Francisquito Creek Joint Powers Authority Amended and Restated Joint Powers Agreement 04/02/20 10 DATED:____________________, 2020 CITY OF PALO ALTO By: ________________________________ Adrian Fine, Mayor ATTEST: By: ________________________________ Beth Minor, City Clerk APPROVE AS TO FORM: ___________________________ Cassie Coleman Assistant City Attorney Attachment A San Francisquito Creek Joint Powers Authority Amended and Restated Joint Powers Agreement 04/02/20 11 DATED: _____________________, 2020 CITY OF EAST PALO ALTO By: __________________________ Regina Wallace-Jones, Mayor ATTEST: By: __________________________ Walfred Solorzano, City Clerk APPROVE AS TO FORM: _____________________________ Rafael Alvarado City Attorney Attachment A San Francisquito Creek Joint Powers Authority Amended and Restated Joint Powers Agreement 04/02/20 12 DATED: ____________________, 2020 SANTA CLARA VALLEY WATER DISTRICT By: _____________________________ Nai Hsueh, Chair ATTEST: By: _____________________________ Michele L. King, CMC, Board Clerk APPROVE AS TO FORM: ____________________________ District Counsel By Leslie Orta Senior Assistant District Counsel Attachment A San Francisquito Creek Joint Powers Authority Amended and Restated Joint Powers Agreement 04/02/20 13 DATED: ___________________, 2020 SAN MATEO COUNTY FLOOD AND SEA LEVEL RISE RESILIENCY DISTRICT By: ________________________________ Dave Pine, Chair ATTEST: By: ________________________________ Christine Boland, Interim Board Clerk APPROVE AS TO FORM: ____________________________ Brian Kulich Lead Deputy County Counsel General Counsel Attachment A Dated 3/10/20 12267-0001\2387532v4.doc JOINT POWERS AGREEMENT CREATINGFOR THE SAN FRANCISQUITO CREEK JOINT POWERS AUTHORITY Dated AMENDED AND RESTATED as of May 18, 1999 January 1, 2020 Attachment B 12267-0001\2387532v4.doc i JOINT POWERS AGREEMENT TABLE OF CONTENTS Page 1. CREATION OF THE SAN FRANCISQUITO CREEK JOINT POWERS AUTHORITY ......................................................................................................................1 2. PURPOSES ..........................................................................................................................2 3. DEFINITIONS .....................................................................................................................2 3. 4. PARTIES TO AGREEMENT .........................................................................................2 4. 5. TERM OF AGREEMENT .............................................................................................32 5. 6. POWERS OF THE AUTHORITY ................................................................................32 6. 7. MEMBER ENTITY APPROVALS AND RESPONSIBILITIES ...................................3 7. 8. PROJECT PARTICIPATION APPROVAL AUTHORITY ...........................................3 8. 9. MEMBERSHIP..............................................................................................................43 9. 10. BOARD OF DIRECTORS ..........................................................................................43 10. 11. BOARD MEMBERS ...................................................................................................54 11. 12. OFFICERS .....................................................................................................................5 12. 13. FISCAL YEAR ............................................................................................................65 13. 14. BUDGET .....................................................................................................................65 14. 15. ANNUAL AUDIT AND AUDIT REPORTS..............................................................65 15. 16. ESTABLISHMENT AND ADMINISTRATION OF FUNDS ...................................65 17. ADMINISTRATIVE COST ................................................................................................7 16. 18. WITHDRAWAL..........................................................................................................76 17. 19. EXPULSION ...............................................................................................................76 18. 20. TERMINATION AND DISTRIBUTION ...................................................................76 19. 21. NOTICES .....................................................................................................................87 Attachment B 12267-0001\2387532v4.doc ii 20. 22. PROHIBITION AGAINST ASSIGNMENT ...............................................................87 21. 23. AMENDMENTS .........................................................................................................87 22. 24. SEVERABILITY .........................................................................................................87 23. 25. LIABILITY OF THE AUTHORITY; RELEASE AND INDEMNITY......................87 24. 26. GOVERNING LAW ....................................................................................................87 25. 27. COUNTERPART ..........................................................................................................8 26. 28. AGREEMENT COMPLETE .......................................................................................98 27. NO THIRD-PARTY BENEFICIARIES..............................................................................8 Attachment B 12267-0001\2387532v4.doc 1 SAN FRANCISQUITO CREEK JOINT POWERS AGREEMENT This Amended and Restated Agreement (“Agreement”) is made by and among the City of Menlo Park, the City of Palo Alto, the City of East Palo Alto, the Santa Clara Valley Water District, and the San Mateo County Flood Controland Sea Level Rise Resiliency District (“Member Entities”), all of which are public entities organized and operating under the laws of the State of California and each of which is a public agency as defined in California Government Code section 6500. RECITALS A. The Joint Exercise of Powers Act, being Government Code sections 6500-6515, permitting et seq. (the “JPA Law”), permits two or more local public entities by agreement to jointly exercise any power common to them, authorizes the Member Entities to enter in this San Francisquito Creek Joint Powers Agreement (“Agreement”). B. Each Member Entity desires to join together with the other Member Entities for the primary purpose of managing the joint contribution of services and providing policy direction on issues of mutual concern relating to the San Francisquito Creek (“Creek”), including bank stabilization, channel clearing and other Creek maintenance, planning of flood control measures, preserving and enhancing environmental values and instream uses, and emergency response coordination. Following years of effort to address environmental and flooding concerns related to the watershed and floodplain of San Francisquito Creek (encompassing approximately 50 square miles from the Santa Cruz Mountains to San Francisco Bay), and soon after the flood of record in 1998 damaged approximately 1,700 properties, the Member Entities established the San Francisquito Creek Joint Powers Authority pursuant to that certain “Joint Exercise Agreement Creating the San Francisquito Creek Joint Powers Authority,” dated as of May 18, 1999, to collectively contribute resources and implement policies and projects of mutual interest relating to the primary natural features that unite them, including the San Francisquito Creek (“Creek”). C. The governing boardbody of each Member Entity has determined that it is in the Member Entity’s best interest and in the public interest that this Amended and Restated Agreement be executed and that it is participating as a member of the public entity created by this Agreement. to make minor procedural updates, including the change on January 1, 2020 of the San Mateo County Flood Control District to the San Mateo County Flood and Sea Level Rise Resiliency District. NOW, THEREFORE, the Member Entities, by, between and among themselves, in consideration of the mutual benefits, promises, and agreements set forth below, hereby agree as follows: 1. CREATION OF THE SAN FRANCISQUITO CREEK JOINT POWERS AUTHORITY. Pursuant to Chapter 5, Division 7, Title 1 of the Government Code of the State of California (commencing with Section 6500) (as amended from time to time, the “JPA Law”)the Attachment B 12267-0001\2387532v4.doc 2 JPA Law, the Member Entities create a public agency, separate and apart from the Member Entities to be known as the San Francisquito Creek Joint Powers Authority (the “Authority”). Pursuant to Government Code section 6508.1, the debts, liabilities, and obligations of the Authority shall not constitute debts, liabilities, or obligations of any party to this Agreement. A Member Entity may separately contract for or assume responsibility for specific debts, liabilities, or obligations of the Authority. The Authority shall require indemnification on behalf of itself and its members as determined by its Board of Directors from entities with which it enters into agreements. For purposes of, and to the extent required by, Government Code section 6509, in exercising its powers, the Authority shall be subject to the restrictions upon the manner of exercising the powers of the city or county Member Entity specified in this AgreementCity of Menlo Park, except as otherwise authorized or permitted by the JPA Law. 2. PURPOSES. This Agreement is entered into by Member Entities under the JPA Law for the following purposes: a. To facilitate and perform bank stabilization, channel clearing and other Creek maintenance. b. To plan flood control measures for the San Francisquito Creek watershed. c. To take actions necessary to preserve and enhance environmental values and instream uses of San Francisquito Creek. d. To coordinate emergency mitigation and response activities relating to San Francisquito Creek. e. To make recommendations to Member Entities for funding and alternatives for long term flood control for Member Entity consideration. 3. DEFINITIONS. In this Agreement unless the context otherwise requires: a. “Administrative Cost” means the amount charged to each Member Entity by the Authority for the Authority’s general operating costs and expenses. b. “Authority” means the San Francisquito Creek Joint Powers Authority. c. “Board” or “Board of Directors” means and is the governing body of the Authority constituted as set forth in Paragraph 10 of this Agreement. d. “JPA Law” means Chapter 5 of Division 7 of Title 1 (commencing with Section 6500) of the California Government Code, as amended from time to time. e. “Member Entity” means and shall include each public agency (as defined in Section 6500 of the JPA law), which is a party to this Agreement. f. “Creek” means and is the San Francisquito Creek. 4.PARTIES TO AGREEMENT. Each Member Entity certifies that it intends to and does contract with every other Member Entity which is a signatory to this Agreement. Each Member Entity also certifies that the deletion of any Member Entity from this Agreement does not affect this Agreement nor each Member Entity’s intent to contract with the Member Entities then remaining. Pursuant to Assembly Bill 825 (Chapter 292, Statutes of 2019), Attachment B 12267-0001\2387532v4.doc 3 which amended the San Mateo County Flood Control District Act to provide for the San Mateo County Flood and Sea Level Rise Resiliency District, the Member Entities agree that the San Mateo County Flood and Sea Level Rise Resiliency District is the entity formerly known as the San Mateo County Flood Control District, and as such is subject to the terms and conditions of this Agreement. 5.4. TERM OF AGREEMENT. This Agreement became effective as of May 18, 1999, and continues in full force until terminated in accordance with Paragraph 20.18 (Termination and Distribution). 6.5. POWERS OF THE AUTHORITY. The Authority through its Board of Directors is authorized, in its own name and subject to the limitations set forth below, to do all acts necessary to fulfill the purposes of this Agreement referred to in Paragraph 2 (Purposes) including, but not limited to, each of the following: a. Make and enter into contracts; b. Incur debts, liabilities, and obligations, provided that no debt, liability, or obligation of the Authority shall be a debt, liability, or obligation of a Member Entity except as separately agreed to by a Member Entity; c. Receive contributions and donations of property, funds, services, and other forms of assistance from any source; d. Sue and be sued in its own name; e. Contract with independent consultants and/or contractors; f. Receive, collect, and disburse monies; g. Carry out other duties as required to accomplish other responsibilities as set forth in this Agreement; h. Assign, delegate, or contract with a Member Entity or third party to perform any of the duties of the Board including, but not limited to, acting as administrator for the Authority; and i. Exercise all other powers necessary and proper to carry out the provisions of this Agreement. These powers shall be exercised in the manner provided by applicable law and as expressly set forth in this Agreement. 7.6. MEMBER ENTITY APPROVALS AND RESPONSIBILITIES. Each Member Entity has the approval authority, obligations and responsibilities set forth in this Agreement. No action of the Authority shall be effective or binding unless and until such action has been approved in accordance with Subparagraph “e” (Action of the Board) of Paragraph 11.e10 (Board Members) Attachment B 12267-0001\2387532v4.doc 4 by the Authority Board of Directors consistent with a budget approved by independent action of each Member Entity’s governing body. 8.7. PROJECT PARTICIPATION APPROVAL AUTHORITY. Member Entities shall have the right to determine independently whether to participate in any capital improvement project. No capital improvement project shall be approved by the Authority unless and until Member Entities sufficient to fund the project fully have approved the project by independent action of each such funding Member Entity’s governing body. 9. MEMBERSHIP.8..... MEMBERSHIP. New Member Entities may be added to the Authority by amending this Agreement, as described in Paragraph 21 (Amendments); and Member Entities may withdraw or be expelled, as described in Paragraph 16 (Withdrawal) and Paragraph 17 (Expulsion). a. Voting Members. All Member Entities shall be Voting Members. b. Associate Membership. (1) Nonprofit corporations and academic and charitable organizations located or operating within the jurisdictional limits of a Member Entity shall be eligible to join the Authority as Associate Members, subject to the approval of the Board of Directors. (2) Associate Members shall be entitled to attend all meetings of the Board of Directors and participate in discussion of all items of business but shall not be entitled to vote or participate in formal debate of a motion on the floor. Further, no representative of an Associate Member may become an officer or director of the Authority. (3) For purposes of this Agreement, only Voting Members shall be referred to as “Member Entities.” 10.9. BOARD OF DIRECTORS. a. Directors. There shall be a Board of Directors (the “Board”) to govern the affairs of the Authority. The Board shall be comprised of one director, and one alternate director, from each Member Entity. Each director has one vote. An alternate director may cast a vote as a member of the Board of Directors only in the absence of the director from that same Member Entity. Each director and alternate director shall be a member of the governing body of the Member Entity. Each director and shall be designated by theits governing board of the respective Member Entity. Thebody; provided, however, that no two directors and no two alternate directors shall be appointed by the Director designated by a Member Entity in the absence of designation of alternates by afrom the same governing body of any Member Entity. b. Compensation. Directors and alternate directors are not entitled to compensation by the Authority. The Board may authorize reimbursement of expenses incurred by directors or alternate directors. Attachment B 12267-0001\2387532v4.doc 5 c. Powers. The powers of the Board are each of the powers of the Authority not specifically reserved to the Member Entities by this Agreement. The Member Entities retain the following powers: (1) The designation of the Board as specified in Subparagraph “a” of Paragraph 9 (Board of Directors as specified in Paragraph 10); (2) Approval of an amendment to this Agreement as specified in Paragraph 2321 (Amendments); (3) Approval of actions pursuant to Paragraph 7, above6 (Member Entity Approvals and Responsibilities); (4) Approval of project participation as specified in paragraph 87 (Project Participation Approval Authority); and (5) Approval of the annual budget of the Authority as specified in Paragraph 14. 13 (Budget). 11.10. BOARD MEMBERS. a. Meetings. The Board shall hold at least one regular meeting each year, at which time the Board shall elect its officers as appropriate to comply with Paragraph 12.11 (Officers). The Board shall fix the date, hour, and place at which each regular meeting is to be held. To the extent practicable, each Board meeting shall be held in Northern Santa Clara County or Southern San Mateo County. The Chair presides at all meetings. A special meeting may be called upon written request by the Chair or at least one-third of the Member Entitiestwo directors. b. Brown Act. Each regular, adjourned regular, or special meeting of the Board shall be called, noticed, held, and conducted in accordance with the Ralph M. Brown Act (Sections 54950, et seq., of the Government Code). c. Minutes. The SecretaryClerk of the Board shall keep or have keptdraft minutes of each regular and special meeting of the Board. As soon as possible after each meeting, the Secretary shall have a copy of those minutes forwarded to each member of the Board, which shall be considered for approval by the Board at a subsequent regular meeting. d. Quorum. No business may be transacted by the Board without a quorum of members of the Board being present except that less than a quorum may adjourn from time to time. A quorum consists of a majority of the members of the Board. e. Action of Board. AnyExcept as otherwise specified in this Agreement, any action of the Board shall require a vote of a majority of the voting members of the Board. Attachment B 12267-0001\2387532v4.doc 6 12.11. OFFICERS. a. Officers. The officers of the Authority are the Chair, Vice-Chair, and Secretary. b. Election/Term/Duties. The officers shall be elected or appointed by the Board at its first meeting of the calendar year, unless that is delayed by an action of the Board. The term of office for Chair, Vice-Chair, and Secretary is one year. The officers shall assume the duties of their offices upon formation of the Authority orbeing elected or appointed, as appropriate. If eitherany of the Chair, Vice-Chair, or Secretary ceases to be a member of the Board, the resulting vacancyBoard shall be filledelect or appoint a new officer at the next regular meeting of the Board held after the vacancy occurs. c. Compensation. Officers are not entitled to compensation by the Authority. The Board may authorize reimbursement of expenses incurred by officers. d. Appointment/Contract. The Board may appoint such officers and may hire or contract with such persons or firms as it considers necessary to carry out the purposes of this Agreement. 13.12. FISCAL YEAR. The first fiscal year of the Authority is July 1, 1999, through June 30, 2000. Each subsequent fiscal year of the Authority shall begin on July 1st and end on June 30th. 14.13. BUDGET. The Board shall adopt an annual operating budget, which shall include each Member Entity’sbe separate from the Authority’s capital projects budget. The operating budget shall include the proposed contribution from each Member Entity for the fiscal year and other sources of income. The operating budget shall not be effective unless and until it is approved by the governing body of each Member Entity has approved that has aMember Entity’s contribution to the budget. Member Entity contributions shall become immediately due and payable to the Authority upon adoption of the budget, unless expressly provided otherwise in the budget. 15.14. ANNUAL AUDIT AND AUDIT REPORTS. The Board shall cause an annual financial audit to be made by an independent certified public accountant with respect to all Authority receipts, disbursements, other transactions, and entries into the books. A report of the financial audit shall be filed as a public record with each Member Entity. The audit shall be filed no later than as required by State law. The Authority shall pay the cost of the financial audit and charge the cost against the Member Entitiesfrom its annual operating budget in the same manner as other administrative costs. 16.15. ESTABLISHMENT AND ADMINISTRATION OF FUNDS. a. Accountability. The Authority is responsible for the strict accountability of all funds and reports of all receipts and disbursements. It shall comply with every provision of law relating to the establishment and administration of funds, particularly Section 6505 of the California Government Code. The funds shall be accounted for on a full accrual basis. Attachment B 12267-0001\2387532v4.doc 7 b. Investment/Disbursement. The Authority shall receive and disburse funds only in accordance with policies and procedures established by the Board and in conformity with applicable law. c. Insurance/Bond. The Authority shall require the Board to procure errors and omissions insurance or a fidelity bondprocure, carry and maintain, in full force and effect, at all times during the term of this Agreement, such insurance and bonds to protect the Authority and its members of the Board, officers, employees, agents and Member Entities, as deemed appropriate by the Board. d. Fiscal Agent. The Authority shall designate a fiscal agent who shall be responsible for the administration of all funds and accounts. The fiscal agent may be one of the Member Entities or an officer or employee of one of the Member Entities, subject to the approval of the selected Member Entity. Depository and Auditor Controller. The Board shall designate one of its officers, employees or a third party to perform all acts required by Government Code Sections 6505 (regarding an annual audit), 6505.1 (regarding charge of and access to property), 6505.5 (regarding the depository and custodian of money), and 6505.6 (regarding independent audit where an officer or employee acts as treasurer, auditor or both), as such laws are amended from time to time. 17. ADMINISTRATIVE COST. In connection with preparation of the Annual Budget pursuant to Paragraph 14, above, the Board may establish the Administrative Costs of the Authority, if any, for each fiscal year and shall propose a formula for allocating these Administrative Costs among Member Entities for each fiscal year, which shall be approved by the Member Entities as a part of the budget. 18.16. WITHDRAWAL. Member Entities may withdraw from the Authority for subsequent fiscal years by providing written notice to the Authority and each Member Entity on or before May 1 of any fiscal year. Withdrawal shall be effective on July 1 of the next fiscal year. This shall be the exclusive means by which a Member Entity may withdraw from the Authority. Any Member Entity that withdraws shall remain liable for any budget contributions or capital improvement project participation approved before withdrawal. Any Member Entity that withdraws shall remain liable for any and all demands, claims, or liabilities of any nature, including death or injury to any person, property damage, or any other loss caused by or arising out of that party’s performance or failure to perform the obligations assumed before the Member Entity withdraws from this Agreement. Any Member Entity that withdraws shall remain subject to the provisions of Paragraph 2523 (Liability of the Authority; Release and Indemnity) with respect to any event or occurrence taking place before the Member Entity withdraws. 19.17. EXPULSION. The Authority may expel a Member Entity from the Authority by a three-fourths (3/four-fifths (4/5) vote of the Board of Directors for a breach of this Agreement determined by the Board to be a material breach. Any Member Entity that has been expelled pursuant to this paragraph shall have no further liability or obligation pursuant to this Agreement after the effective date of such expulsion; except such Member Entity shall remain liable for any and all demands, claims, or liabilities of any nature, including death or injury to any person, property damage, or any other loss caused by or arising out of that party’s performance or failure to perform the obligations assumed before the Member Entity was expelled, including any budget Attachment B 12267-0001\2387532v4.doc 8 contributions or capital improvement project participation approved before expulsion. Any Member Entity that has been expelled shall remain subject to the provisions of Paragraph 2523 (Liability of the Authority; Release and Indemnity) with respect to any event or occurrence taking place before the Member Entity was expelled. 20.18. TERMINATION AND DISTRIBUTION. a. Termination. This Agreement shall continue until terminated. This Agreement may be terminated by the written consent of two-thirdsfour-fifths (24/35) of the Member Entities; provided, however, this Agreement and the Authority shall continue to exist after termination for the purpose of disposing of all claims, distribution of assets, and all other functions necessary to conclude the obligation and affairs of the authorityAuthority. b. Surplus. After completion ofIn the event that the Authority’s purposes is terminated, any surplus money on deposit in any fund or account of the Authority shall be returned in proportion to the contributions made as required by Section 6512 of the California Government Code. The Board is vested with all powers of the Authority for the purpose of concluding and dissolving the business affairs of the Authority, including for the disposition, division, or distribution of any property acquired as a result of the joint exercise of powers. 21.19. NOTICES. Notices to each Member Entity under this Agreement are sufficient if mailed to its respective address on file with the Authority. 22.20. PROHIBITION AGAINST ASSIGNMENT. No Member Entity may assign a right, claim, or interest it may have under this Agreement, and any such assignment shall be void. No creditor, assignee, or third -party beneficiary of a Member Entity has a right, claim, or title to any part, share, interest, fund, or asset of the Authority. 23.21. AMENDMENTS. This Agreement may be amended by a unanimous vote of the Member Entities of the Authority acting through theirapproval by the governing bodiesbody for each and every Member Entity. A proposed amendment must be submitted to each Member Entity at least thirty (30) days in advance of the date when the Member Entity considers it. An amendment is to be effective immediately unless otherwise designated. 24.22. SEVERABILITY. If a portion, term, condition, or provision of this Agreement is determined by a court to be illegal or in conflict with the law of the State of California, or is otherwise rendered unenforceable or ineffectual, the validity of the remaining portions, terms, conditions, and provisions is not affected. 25.23. LIABILITY OF THE AUTHORITY; RELEASE AND INDEMNITY. Funds of the Authority may be used to defend, indemnityindemnify, and hold harmless the Authority, any Member Entity, any member of the Board, and each officer, employee and agent of the Authority for their actions taken within the scope of their duties while acting on behalf of the Authority. The parties to this Agreement release each other and agree to hold each other harmless, as well as their officers and employees, for any loss or liability arising from their respective activities pursuant to this Agreement. Except as otherwise provided herein, each party agrees to indemnity, defend and hold harmless the other parties, their officers, agents, and employees from any and all demands, claims, or liabilities of any nature, including death or injury to any person, property damage, or any Attachment B 12267-0001\2387532v4.doc 9 other loss caused by or arising out of that party’s performance or failure to perform the obligations assumed under this Agreement. Each Member Entity agrees that legal counsel for any Member Entity may be designated by the Board to represent the Authority by performing legal services, including litigation, and that any potential conflict of interest arising from such representation shall be deemed waived by the Authority and Member Entity, unless an actual adverse relationship exists between the Member Entity and the Authority with respect to the particular matter. The designation of legal counsel from a Member Entity shall be with the approval of that Member Entity. 26.24. GOVERNING LAW. This Agreement shall be governed by and construed in accordance with the laws of the State of California. 27.25. COUNTERPART. This Agreement may be executed in counterparts, each of which shall be an original, but all of which shall constitute one instrument. 28.26. AGREEMENT COMPLETE. The foregoing constitutes the full and complete Agreement of the Member Entities. There are no oral understandings or agreements not set forth in writing herein. 27. NO THIRD-PARTY BENEFICIARIES. Nothing in this Agreement, whether express or implied, shall be construed to give any person or entity, other than the parties hereto, any legal or equitable right, remedy or claim under or in respect of this Agreement or any covenants, conditions or provisions contained herein. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the dates set forth below. DATED: ____________________, 20042020 CITY OF MENLO PARK By: ________________________________ Cecilia Taylor, Mayor ATTEST: By: ________________________________ Judi Herren, City Clerk DATED: ____________________, 20042020 CITY OF PALO ALTO By: ________________________________ Adrian Fine, Mayor ATTEST: Attachment B 12267-0001\2387532v4.doc 10 By: ________________________________ Beth Minor, City Clerk Attachment B 12267-0001\2387532v4.doc 11 DATED: ____________________, 20042020 CITY OF EAST PALO ALTO By: ________________________________ Regina Wallace-Jones, Mayor ATTEST: By: ________________________________ Walfred Solorzano, City Clerk DATED: ____________________, 20042020 SANTA CLARA VALLEY WATER DISTRICT By: ________________________________ (Signature)Nai Hsueh, Chair ________________________________ (Print Title) ATTEST: By: ________________________________ Secretary Michele L King, CMC, Board Clerk DATED: ____________________, 20042020 SAN MATEO COUNTY FLOOD CONTROLAND SEA LEVEL RISE RESILIENCY DISTRICT By: ________________________________ BoardDave Pine, Chair ATTEST: By: ________________________________ SecretaryChristine Boland, Interim Board Clerk Attachment B 1 of 1 TO: HONORABLE COUNCIL MEMBERS FROM: PHILIP KAMHI, CHIEF TRANSPORTATION OFFICIAL DATE: APRIL 20, 2020 SUBJECT: AGENDA ITEM NUMBER 8 - Approval of Amendment Number 1 to Contract C16162436 With TJKM Transportation Consultants and Amendment Number 1 to Contract Number C16163381 With Fehr and Peers for Provision of On-call Transportation Engineering Project Support Services; Each Amendment will Extend Each Term Through April 30, 2021 and Increase Maximum Compensation by $200,000 to Each Contract for a Total Not-to-Exceed Amount of $1,000,000 per Contract Staff requests this item be removed to be heard at a later undetermined date. _______________________ _________________________ Philip Kamhi Ed Shikada Chief Transportation Official City Manager 8 City of Palo Alto (ID # 11249) City Council Staff Report Report Type: Consent Calendar Meeting Date: 4/20/2020 City of Palo Alto Page 1 Summary Title: Planning & Building Permit Extensions Title: Adoption of an Ordinance Temporarily Suspending the Expiration of and Automatically Extending all Planning Entitlements, Building Permits, and Building Permit Applications Valid as of March 16, 2020. The Ordinance Also Suspends and Extends Municipal Code Application Processing Timelines. This Action is Exempt From the California Environmental Quality Act (CEQA) in Accordance with CEQA Guidelines Section 15061(b)(3). From: City Manager Lead Department: Planning and Development Services Recommendation Staff recommends that Council adopt the attached ordinance that: 1. Temporarily suspends the expiration all planning entitlements, building permits, and building permit applications valid as of March 16, 2020, or issued during applicable shelter in place order; 2. Automatically extends the expiration date of planning entitlements, building permits, and building permit applications for 180 days following the cessation of any applicable shelter in place order; and, 3. Suspends municipal code application processing timelines during and for 180 days following any applicable shelter in place order. Background and Discussion As highlighted on April 6, staff recommends the City Council adopt the attached ordinance. The ordinance extends various planning entitlements and building permits that were valid at the time Santa Clara County issued a public health order requiring residents to shelter in place. This order limited construction activity and the ability of applicants to continue moving their previously approved projects toward completion. The attached ordinance temporarily suspends the expiration of any entitlement or permit through the duration of any applicable State or County shelter in place orders. Moreover, the ordinance recognizes that it may take applicants City of Palo Alto Page 2 time to re-engage their project teams and construction crews, or secure funding for their projects; an additional 180-day extension would automatically be applied to these entitlements and permits. This ordinance does not extend or re-activate planning entitlements or building permits that lapsed prior to the start of the County’s Shelter in Place order. Lastly, the ordinance suspends the application certain processing time provisions in the municipal code. These provisions relate to making determinations on planning applications or scheduling items for hearing before the Architectural Review Board, Planning and Transportation Commission, and City Council. Staff will continue to make every effort to efficiently process applications and will ensure compliance with any state or federal law that requires more timely action. We are also working on solutions that will allow the public to submit more applications online and allow city staff and contractors to review plans, comment and, when appropriate, expand they types of permits that can be offered online. Policy Implications State and local jurisdictions are beginning to take similar actions to preserve the rights of applicants that have previously obtained planning entitlements and building permits; the subject ordinance is aligned with those other efforts. It is anticipated other jurisdictions will do the same. This action will extend to all active planning entitlements (not yet built), including entitlements that are granted during the Shelter-in-Place order, and active building permits (starting or under construction). This ordinance applies to all private and public projects for new buildings, remodels, land uses, wireless communication facilities, even construction projects that have stalled or taken longer than expected, but retain valid permits. Resource Impact This action has no significant budget or fiscal impact. Timeline If approved by Council, the ordinance would return for a second reading in May and become effective on the 31st day thereafter. However, the ordinance will reach back to March 16, 2020. Stakeholder Engagement Staff has received inquries from local property owners and applicants asking about the status of their permits. Staff has also been engaged with other communities discussing similar actions. Environmental Review This action is exempt from the California Environmental Quality Act (CEQA) in accordinance with section 15061(b)(3) of the CEQA Guidelines because it can be seen with certainty that temporarily extending certain permit approvals and application processing timelines for a limited period of time will not have a significant effect on the environment. City of Palo Alto Page 3 Attachments: Attachment A - ORD Extending Permit Length *NOT YET APPROVED* 1 20200402_ay_016_0160024 Ordinance No. ____ Ordinance of the Council of the City of Palo Alto Extending the Validity of Planning Entitlements and Permits Issued by the Department of Planning and Development Services and Extending the Time for City Review and Action on Development Applications. The Council of the City of Palo Alto ORDAINS as follows: SECTION 1. Findings and declarations. The City Council finds and declares as follows: A. On March 4, 2020, California Governor Gavin Newsom declared a State of Emergency due to the threat of Coronavirus Disease 2019 (“COVID-19”). B. On March 9, 2020, Santa Clara County reported there were 43 cases of persons testing positive for COVID-19, an increase of 23 confirmed cases in 5 days. The County also experienced its first death due to the virus. Due to the increased threat and evidence of community transmission of the virus, the County Public Health Officer issued an order prohibiting mass gatherings attended by 1,000 persons until March 31, 2020. C. On March 12, 2020, due to the escalating increase in cases and community spread of COVID-19 in Santa Clara County, City Manager Ed Shikada, acting as the Director of Emergency Services, issued a Proclamation of Local Emergency. The City Council ratified the issuance of the proclamation on March 16, 2020. D. On March 13, 2020, the County Public Health Officer issued a new order mandating a countywide moratorium on gatherings of more than 100 persons and a conditional countywide moratorium on gatherings between 35-100 persons. Most school districts throughout the San Francisco Bay Area also announced closures for three weeks commencing the following week on March 16, 2020. E. On March 15, 2020, Governor Newsom directed the closing of all bars, nightclubs, brewpubs, and wineries in the state, and called for residents age 65 and older to self- isolate, to increase social distancing and protect persons most vulnerable to COVID-19. At the same time, he emphasized the plight of the thousands of unsheltered persons in the state as a top public health concern. F. On March 16, 2020, the public health officers for the six Bay Area counties, including Santa Clara County, took the unprecedented and dramatic step of issuing “shelter-in- place” orders directing county residents to shelter at home for three weeks beginning March 17. The Order limited activity, travel, and business functions to only the most essential needs. In particular, the Order allowed some residential construction to continue, but required most commercial construction to cease. *NOT YET APPROVED* 2 20200402_ay_016_0160024 G. On March 31, 2020, the public health officers for the six Bay Area counties, including Santa Clara County, issued an updated “shelter-in-place” order effective from April 1, 2020 through May 3, 2020 (the “Shelter-in-Place Order” or “Order”). The Order further prohibited most residential and almost all commercial construction. H. In an effort to reduce the spread of COVID-19, the City has cancelled several meetings of the City Council and other City Boards and Commissions in March and April 2020. I. The Order and other efforts to slow the spread of COVID-19 have resulted in the delay or cessation of land use development activity and permit processing, effectively shortening the validity of planning entitlements and building permits. J. The City Council finds that it is necessary for the public health, safety, and welfare to temporarily extend the validity of certain planning entitlements and other permits issued by the Department of Planning and Development Services and to extend the time provided for City review of and action on such applications. SECTION 2. Notwithstanding the provisions of Palo Alto Municipal Code (“PAMC”) Sections 16.04.085 and 16.04.090, the following permit applications and permits issued by the Chief Building Official pursuant to PAMC Chapter 16.04 are hereby extended until the Shelter-in-Place Order is lifted, plus an additional 180 days: (1) any permit application or permit that had not expired as of March 16, 2020; and (2) any permit application submitted or permit issued during the pendency of the Shelter-in-Place Order. This extension shall be provided automatically and at no cost to a project applicant. SECTION 3. Notwithstanding the provisions of PAMC Section 18.77.090 and any Record of Land Use Action or Final Director’s Decision, the time to commence construction for the following Planning Approvals is hereby extended until the Shelter-in-Place Order is lifted, plus an additional 180 days: (1) Planning Approvals for which the time to commence construction had not expired as of March 16, 2020; and (2) Planning Approvals issued during the pendency of the Shelter-in-Place Order. This extension shall be provided automatically and at no cost to a project applicant. SECTION 4. The times established in the Municipal Code for the City to act on any application pursuant to PAMC Titles 16, 18, or 20, including without limitation, Building Permits, Architectural Review, Standard Staff Review, Low Density Project Review, and Subdivisions, are hereby extended until the Shelter-in-Place Order is lifted, plus an additional 180 days. This extension shall be applied in a manner consistent with timelines dictated by state law, including any emergency orders issued by the Governor. SECTION 5. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each *NOT YET APPROVED* 3 20200402_ay_016_0160024 and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the Ordinance would be subsequently declared invalid or unconstitutional. SECTION 6. The City Council finds that adoption of this ordinance is exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15061(b)(3), because it can be seen with certainty that temporarily extending certain permit approvals and application processing timelines for a limited period of time will not have a significant effect on the environment. SECTION 7. This Ordinance shall be effective on the thirty-first date after the date of its adoption. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: NOT PARTICIPATING: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ Assistant City Attorney City Manager ____________________________ Director of Planning & Development Services 1 of 1 TO: HONORABLE COUNCIL MEMBERS FROM: KIELY NOSE, DIRECTOR OF ADMINISTRATIVE SERVICES/CFO DATE: APRIL 20, 2020 SUBJECT: AGENDA ITEM NUMBER 10- Adoption of a Resolution Waiving the Business Registration Fee for Calendar Year 2020 in Calendar Year 2020; Adoption of a Resolution Rescinding the Levy of Assessments for the Downtown Business Improvement District (BID) for FY20; and Approval of the Reimbursement of Business Registration Fees and BID Assessments Due in 2020 This Staff Report is pending additional data, Staff is requested to remove this item from the agenda to an undetermined date. _______________________ _________________________ Kiely Nose Ed Shikada Administrative Services Director City Manager 10 Certificate Of Completion Envelope Id: AD9EB7F3D89D4AF3AFE714F8012348EF Status: Completed Subject: Approval for Deferring 4/20 Agenda Item #10 Source Envelope: Document Pages: 1 Signatures: 2 Envelope Originator: Certificate Pages: 2 Initials: 0 Jennifer Davis AutoNav: Enabled EnvelopeId Stamping: Disabled Time Zone: (UTC-08:00) Pacific Time (US & Canada) 250 Hamilton Ave Palo Alto , CA 94301 Jennifer.Davis@CityofPaloAlto.org IP Address: 24.6.221.94 Record Tracking Status: Original 4/16/2020 3:00:28 PM Holder: Jennifer Davis Jennifer.Davis@CityofPaloAlto.org Location: DocuSign Security Appliance Status: Connected Pool: StateLocal Storage Appliance Status: Connected Pool: City of Palo Alto Location: DocuSign Signer Events Signature Timestamp Kiely Nose Kiely.Nose@CityofPaloAlto.org Director, Administrative Services/CFO City of Palo Alto Security Level: Email, Account Authentication (None) Signature Adoption: Uploaded Signature Image Using IP Address: 174.194.210.158 Sent: 4/16/2020 3:14:00 PM Viewed: 4/16/2020 3:45:19 PM Signed: 4/16/2020 3:45:33 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Ed Shikada ed.shikada@cityofpaloalto.org Ed Shikada, City Manager City of Palo Alto Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 73.223.182.51 Sent: 4/16/2020 3:45:35 PM Viewed: 4/16/2020 3:53:09 PM Signed: 4/16/2020 3:53:27 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign In Person Signer Events Signature Timestamp Editor Delivery Events Status Timestamp Agent Delivery Events Status Timestamp Intermediary Delivery Events Status Timestamp Certified Delivery Events Status Timestamp Carbon Copy Events Status Timestamp Witness Events Signature Timestamp Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 4/16/2020 3:45:35 PM Envelope Summary Events Status Timestamps Certified Delivered Security Checked 4/16/2020 3:53:10 PM Signing Complete Security Checked 4/16/2020 3:53:27 PM Completed Security Checked 4/16/2020 3:53:27 PM Payment Events Status Timestamps