HomeMy WebLinkAbout2022-02-07 City Council Agenda Packet1
City Council
Special Meeting
Monday, February 7, 2022
5:00 PM
VIRTUAL ONLY
Revised Packet -Added Missing Attachments
Pursuant to AB 361 this City of Palo Alto City Council Meeting
Will Be Held by Virtual Teleconference Only
To prevent the spread of Covid-19, this meeting will be held by virtual teleconference only,
with no physical location. Members of the public who wish to participate by computer or
phone can find the instructions below and at the end of this agenda.
HOW TO PARTICIPATE
VIRTUAL PARTICIPATION
CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/362027238)
Meeting ID: 362 027 238 Phone:1(669)900-6833
The meeting will be broadcast on Cable TV Channel 26, live on YouTube at
https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen Media
Center at https://midpenmedia.org.
TIME ESTIMATES
Time estimates are provided as part of the Council's effort to manage its time at
Council meetings. Listed times are estimates only and are subject to change
at any time, including while the meeting is in progress. The Council reserves
the right to use more or less time on any item, to change the order of items and/or
to continue items to another meeting. Particular items may be heard before or after
the time estimated on the agenda. This may occur in order to best manage the time
at a meeting or to adapt to the participation of the public.
PUBLIC COMMENTS
Public Comments will be accepted via Zoom meeting. All requests to speak will be taken
until 5 minutes after the staff’s presentation. Written public comments can be submitted in
advance to city.council@cityofpaloalto.org and will be provided to the Council and available
for inspection on the City’s website. Please clearly indicate which agenda item you are
referencing in your email subject line.
CALL TO ORDER
CLOSED SESSION (5:00 PM – 7:00 PM)
Public Comments: Members of the public may speak to the Closed Session item(s); three minutes per speaker.
1.CONFERENCE WITH CITY ATTORNEY Subject: Written Claim Against
the City of Palo Alto By Strawn Construction Inc. regarding work
performed on Palo Alto Fire Station No. 3 Authority: Government Code
Section 54956.9 (e)(3)
2 Special Meeting February 7, 2022
Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for
public inspection at www.CityofPaloAlto.org.
2.CONFERENCE WITH LABOR NEGOTIATORS City Designated
Representatives: City Manager and his Designees Pursuant to Merit
System Rules and Regulations (Ed Shikada, Kiely Nose, Rumi Portillo,
Sandra Blanch, Nicholas Raisch, Tori Anthony, Molly Stump, and
Terence Howzell) Employee Organization: Service Employees
International Union, (SEIU) Local 521, Utilities Management and
Professional Association of Palo Alto (UMPAPA)Palo Alto Peace Officers’
Association (PAPOA), Palo Alto Police Management Association (PMA),
International Association of Fire Fighters (IAFF) local 1319, Palo Alto
Fire Chiefs Association (FCA), Management and Professional
Employees (MGMT) ; Authority: Government Code Section 54957.6 (a)
BREAK (7:00 PM – 7:15 PM)
AGENDA CHANGES, ADDITIONS AND DELETIONS
PUBLIC COMMENT (7:15 PM – 7:30 PM)
Members of the public may speak to any item NOT on the agenda. Council reserves the right to limit the duration of
Oral Communications period to 30 minutes.
CONSENT CALENDAR (7:30 PM – 7:40 PM)
Items will be voted on in one motion unless removed from the calendar by three Council Members.
3.Approve Minutes from the January 24, 2022 City Council Meeting
4.Authorize and Approve a Three Million Dollars ($3,000,000) Loan From
the Housing In Lieu and Impact Fee Funds for the Development of an
Affordable Workforce Housing Project Located at 231 Grant Avenue;
Approve the Budget Amendment in the Residential Housing In-Lieu
Fund; Authorize the City Manager to Execute Associated Agreements
Supplemental Report Added
5.Policy and Services Committee Recommends Approval of the Office of
the City Auditor Construction Project Controls Report Missing
Attachments Added
6.Policy and Services Committee Recommends Approval of the Office of
the City Auditor's Initial Public Safety Building Monitoring Report
Missing Attachments Added
7.Policy and Services Committee Recommends Approval of the Office of
the City Auditor's Task Order to Perform a Wire Payment Process and
Controls Review
8.Adoption of a Resolution Authorizing Use of Teleconferencing for
Council Meetings During Covid-19 State of Emergency
Q&A
3 Special Meeting February 7, 2022
Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for
public inspection at www.CityofPaloAlto.org.
9.Policy and Services Committee Recommendation that City Council
Approve the 2022 Legislative Guidelines; Utilities Advisory Commission
Recommendation that City Council Approve the 2022 Utilities
Legislative Guidelines Missing Attachments Added
CITY MANAGER COMMENTS (7:40 PM – 8:00 PM)
ACTION ITEMS
Include: Reports of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Reports of Officials,
Unfinished Business and Council Matters.
10.Discuss the FY 2022 Mid-Year Budget Review and Approve the
Following: 1) FY 2022 Budget Amendments in Various Funds, and 2 )
Amendments to the FY 2022 Table of Organization to Add 11.00 FTE
Positions (8:00 PM – 9:30 PM) Missing Attachments Added
11.California Avenue and Ramona Street Temporary and Permanent
Closure: Direct Staff to Issue RFP for a Feasibility Study and Return for
Contract Approval, and Provide Direction to Staff on Activities and
Programming (9:30 PM – 10:30 PM)
COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS
Members of the public may not speak to the item(s)
ADJOURNMENT
INFORMATION REPORTS
Information reports are provided for informational purposes only to the Council and the public but are not listed for
action during this meeting’s agenda.
12.Investment Activity Report for the Second Quarter, Fiscal Year 2022
13.Informational Report on Valley Water's Implementation of a new Model
Water Efficient New Development Ordinance
14.Sales Tax Digest Summary Calendar 2021 Q3
OTHER INFORMATION
Standing Committee Meetings
Finance Committee Meeting February 1, 2022
Policy & Services Committee Meeting February 8, 2022
Schedule of Meetings
Q&A
Q&A
Q&A
Public Comment
Public Comment
Presentation
Presentation
Presentation
City of Palo Alto (ID # 13991)
City Council Staff Report
Meeting Date: 2/7/2022
City of Palo Alto Page 1
Title: CONFERENCE WITH CITY ATTORNEY Subject: Written Claim Against the
City of Palo Alto By Strawn Construction Inc. regarding work performed on
Palo Alto Fire Station No. 3 Authority: Government Code Section 54956.9
(e)(3)
From: City Manager
Lead Departm ent: City Clerk
Attached is the documentation that will be discussed during Closed Session Item 1.
Attachments:
• Attachment1.a: Strawn Claim 010521
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City of Palo Alto (ID # 13979)
Office of the City Clerk
City Council CAO Report
Meeting Date: 2/7/2022
Title: Approve Minutes from the January 24, 2022 City Council Meeting
From: Lesley Milton, City Clerk
Staff recommends Council to review and approve the minutes as presented.
ATTACHMENTS:
• Attachment3.a: Attachment A: 20220124amCCs (PDF)
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CITY COUNCIL
DRAFT ACTION MINUTES
Page 1 of 4
Special Meeting
January 24, 2022
The City Council of the City of Palo Alto met on this date in virtual
teleconference at 5:00 P.M.
Participating Remotely: Burt, Cormack, DuBois, Filseth, Kou, Stone, Tanaka
Absent: None
Study Session
1. Report from the Human Relations Commission regarding their project
titled “100 Community Conversations on Race and the Lived
Experience in Palo Alto.”
NO ACTION TAKEN
Agenda Changes, Additions and Deletions
None
Consent Calendar
Council Member Tanaka registered a no vote on Agenda Item Number 4.
MOTION: Council Member DuBois moved, seconded by Vice Mayor Kou to
approve Items 2-10.
2. Approve Minutes from the January 10, 2022 City Council Meeting.
3. Approval of General Services Contract with Denali Water Solutions, LLC
for Sludge Hauling Services in an Amount Not to Exceed $2,427,084 for
a 3-Year Term ending March 30, 2025, from the Wastewater Treatment
Enterprise Fund.
4. Review and Acceptance of Annual Status Report on Development Impact
Fees for Fiscal Year 2021.
5. Acceptance of the Macias Gini & O’Connell Audit of the City of Palo Alto’s
Financial Statements as of June 30, 2021 and the Management Letter;
Approval of the FY 2021 Annual Comprehensive Financial Report
(ACFR); and Amendments to the FY 2021 Budget in Various Funds.
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DRAFT ACTION MINUTES
Page 2 of 4
Sp. City Council Meeting
Draft Action Minutes: 1/24/2022
6. Adoption of Resolution 10014 Declaring Weeds to be a Public Nuisance
and Setting January 24, 2022 for a Public Hearing for Objections to the
Proposed Weed Abatement.
7. Adoption of Resolution 10015 Scheduling the City Council Summer
Break and Winter Closure for 2022.
8. Adoption of Resolution 10016 Authorizing Use of Teleconferencing for
Council Meetings During Covid-19 State of Emergency.
9. SECOND READING: Adopt Park Improvement Ordinance 5541 for the
Replacement of the Palo Alto Flood Basin Tide Gate Structure in the
City's Baylands (FIRST READING: January 10, 2022 PASSED: 7-0).
10. SECOND READING: Adoption of Interim Ordinance 5542 Amending
Titles 16, 18 and 21 in Response to Senate Bills 9 and 478, Including
Amendment to the City's Affordable Housing Requirements for SB 9
Projects. CEQA Status: This Action is not Considered a Project or is
Exempt from CEQA in Accordance With Government Code Sections
66411.7(n) and 65852.21(j) or Section 15061 of the State CEQA
Guidelines. (FIRST READING: January 10, 2022 PASSED: 7-0).
ITEM 4 OF MOTION PASSED: 6-1, Tanaka no
ITEMS 2-3, 5-10 OF MOTION PASSED: 7-0
City Council went on break at 6:57 P.M. and returned at 7:07 P.M.
Action Items
11. Discuss Polling Results, Analysis, and Community and Stakeholder
Engagement Plan; Recommend Further Refined Parameters for a
Possible Local Tax Ballot Measure for November 2022 Election (Business
License Tax and Utility Tax Proposals); and Direct Staff on Related Items
such as Community and Stakeholder Engagement Plan.
MOTION: Council Member DuBois moved, seconded by Council Member
Filseth to direct Staff to:
A. Pursue preparation of a square footage business license tax with the
following characteristics, as recommended by the Finance Committee:
i. Continue to review the rates, adding option 3 (flat fee of $50 for
first 5,000 square footage occupied and apply a monthly tax rate
per square foot beyond the 5,000 threshold) as a starting point;
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DRAFT ACTION MINUTES
Page 3 of 4
Sp. City Council Meeting
Draft Action Minutes: 1/24/2022
ii. Exemptions for businesses subject to the Transient Occupancy Tax
and grocery stores;
iii. Annual escalator uses CPI as a basis;
B. Develop a proposal for voter ratification of the existing gas General Fund
Equity Transfer and eliminate the UUT option, with exploration of
whether to cap growth of the transfer to be explored via polling;
C. Amend the workplan to three polls, with the second poll developed and
executed by the City’s polling consultant, and the third to test potential
ballot language; and
D. Launch the Community and Stakeholder Engagement Plan, as outlined
in the staff report.
AMENDMENT: Council Member Cormack moved, seconded by Council
Member Tanaka to eliminate the .20 cent rate from Part A, Part i. of the
Motion.
AMENDMENT FAILED: 2-5, Burt, DuBois, Filseth, Kou, Stone no
MOTION PASSED: 6-1, Tanaka no
City Council went on break at 9:52 P.M. and returned at 9:57 P.M.
12. Public Hearing: Adoption of Ordinance Clarifying Ambiguities in Height
Transitions and Amending the Setback for the RM-40 Zone District.
Public Hearing opened at 10:20 P.M.
Public Hearing closed at 10:40 P.M.
MOTION: Council Member DuBois moved, seconded by Vice Mayor Kou to
direct Staff to:
A. Amend the proposed Ordinance to a 150 ft height transition zone, while
leaving the abutting conditions where they already exist;
B. Clarify if projects want to reduce the horizontal transition zone, they are
opting into the discretionary process;
C. Extend the height transition rules in Part A to RM40 adjacent non-
residential buildings; and
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DRAFT ACTION MINUTES
Page 4 of 4
Sp. City Council Meeting
Draft Action Minutes: 1/24/2022
D. Investigate 18.38.150 section (b), and to incorporate RMD into the
language.
MOTION PASSED: 5-2, Cormack, Tanaka no
Adjournment: The meeting was adjourned at 11:44 P.M. in honor and
memory of John Arrillaga, who contributed enormously to the Silicon Valley
as a developer, a philanthropist, and a pioneer.
ATTEST: APPROVED:
____________________ ____________________
City Clerk Mayor
NOTE: Action minutes are prepared in accordance with Palo Alto Municipal
Code (PAMC) 2.04.160(a) and (b). Summary minutes (sense) are prepared in
accordance with PAMC Section 2.04.160(c). Beginning in January 2018, in
accordance with Ordinance No. 5423, the City Council found action minutes
and the video/audio recordings of Council proceedings to be the official records
of both Council and committee proceedings. These recordings are available on
the City’s website.
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City of Palo Alto (ID # 13741)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 2/7/2022
City of Palo Alto Page 1
Summary Title: 231 Grant Ave: Affordable Housing Fund Contribution
Title: Authorize and Approve a Three Million Dollars ($3,000,000) Loan From
the Housing In Lieu and Impact Fee Funds for the Development of an
Affordable Workforce Housing Project Located a t 231 Grant Avenue; Approve
the Budget Amendment in the Residential Housing In -Lieu Fund; Authorize
the City Manager to Execute Associated Agreements
From: City Manager
Lead Department: Planning and Development Services
Recommendation:
Staff recommends that City Council take the following action to authorize and approve a Three-
million-dollar ($3,000,000) loan to Santa Clara County for the development of an affordable
workforce housing project located at 231 Grant Avenue:
1. Amend the Fiscal Year 2022 Budget Appropriation for Residential Housing In-Lieu Fund
(Fund 233), by a 2/3 vote, by:
a. Increasing Grants and Subsidies in the amount of $3,000,000; and
b. Decreasing the Ending Fund Balance in the amount of $3,000,000;
2. Authorize the City Manager or his designee to execute a Loan Agreement, Regulatory
Agreement, and related documents to implement Council direction in a form
substantially similar to prior agreements approved by the City.
Executive Summary:
Staff is requesting that the Council authorize and approve a $3 million loan and the associated
budget amendment for the proposed residential development located at 231 Grant Ave nue.
The City is partnering with the County of Santa Clara in the development of a 110 -unit
residential development. These units will be primarily for teachers and other school district
employees from participating school districts in Santa Clara and San Mateo counties. The
County of Santa Clara owns the project site and is the lead agency in the development of the
project.
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City of Palo Alto Page 2
The overall cost of the project is estimated to be a little over $87 million. The County has
dedicated $6 million of local funds and Facebook has dedicated an additional $25 million for the
project. The Council has already directed the City Manager to reserve the $3 million in housing
funds for the project. This action appropriates the committed funds, making them available to
be distributed to the loan grantee. The remaining sources of project funds will be from Measure
A funds, participating school districts and other sources.
Background:
Two years ago, the City Council adopted a Housing Work Plan, which staff prepared in response
to a City Council Colleagues’ Memorandum.1 The Colleagues’ Memorandum stated the desire
for zoning updates to encourage diverse housing near jobs, transit, and services. The memo
presented several specific concepts, many of which were also identified in the City’s Housing
Element (adopted November 2014) and the updated Comprehensive Plan (adopted November
13, 2017). The Housing Work Plan identified specific policies and other actions staff should take
in order to address the housing need of Palo Altans, including a policy supporting creation of
affordable housing for City and School District employees.
In June 2018, the President of the Santa Clara County Board of Supervisors, Joe Simitian, sent a
letter to the City requesting the City set aside $3 million for supportive funding of a concept
teacher housing project on County-owned land in Palo Alto. That same month, the City Council
authorized the City Manager to set aside $3 million in affordable housing funds for the project
to be disbursed when a suitable project concept and contract is determined to be agreeable by
final project partners. The $3 million in funds were reserved in June 2018. The action minutes
approving the reserved funds can be found here. On January 11, 2022, the Santa Clara County
Board of Supervisors certified the Final Environmental Impact Report and approved the project.
Discussion:
State law allows cities and counties to enjoy intergovernmental/sovereign immunity when
performing governmental functions. Since the County is serving a public purpose of providing
housing for public employees, the project is not required to comply with City zoning and
building regulations. The County is responsible for CEQA review and compliance with State
building codes. The County is in the process of entitling the project and completing its
environmental review. An Environmental Impact Report (EIR) has been prepared for this
project.
Project Description
1 Housing Work Plan: https://www.cityofpaloalto.org/Departments/Planning-Development-Services/Long-Range-
Planning/Housing-Policies-and-Programs/Housing-Work-Plan
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City of Palo Alto Page 3
The project will involve the demolition of the existing 6,800-square-foot office building at the
project site and construction of a new four-story building, totaling approximately 112,000
square feet. The project consists of 110 residential units made up of studios, one -, and two-
bedroom units. The units will serve primarily teachers and other school district employees from
participating school districts in Santa Clara and San Mateo County. The residential units are laid
out in two C-shaped buildings that outline three semiprivate courtyards and support residential
amenities that foster connection and community. Please see Attachment A for project plans.
Approximately 2,000 square feet of community space, including a lounge, activity room and
laundry, will be provided for residents’ use, as well as on-site property management. The
courtyard spaces provide outdoor spaces for residents to relax and gather. High activity uses
will occur in the central courtyard, near the central bridge, stair and elevator. Other courtyards
will be designed to include a variety of seating, planting, gardening, and gathering areas to
support a wide range of individual and small group activities.
Rents and Occupancy of the Apartments
The maximum rent for each household will be 30% of a household’s income. The project will
have units dedicated for a range of incomes from 60% AMI to 140% Area Median Income (AMI).
Below in Table 1 summarizes the type of unit, unit mix, proposed range of rents for the project.
For a more detailed breakdown of unit mixes and types for each income level and proposed
rent, please see Attachment B.
Table 1: Unit Types, Unit Mixes and Range of Proposed Rents
Unit Type No of Units Rent Range (60%-140% AMI)
Studio 24 $1,740 - $2,610
1 Bedroom 61 $1,864 - $2,795
2 Bedroom 25 $2,238 - $3,357
The overall development cost for the project is estimated to be over $87 million. Funding
sources will include the County, the City of Palo Alto, Facebook, and the participating school
districts. Below is a breakdown of all the funding uses and sources.
Table 2: Project Uses
Acquisition 10,000
Construction Costs 65,235,948
Design and Engineering 2,654,813
Permits and Fees 429,119
Financing Costs 2,851,637
Reserves 704,669
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City of Palo Alto Page 4
Soft Costs 15,270,430
Total $87,156,616
Table 3: Project Sources
Permanent Funding Sources
Permanent Loan (residential) 23,263,716
County of Santa Clara 6,000,000
City of Palo Alto 3,000,000
School Districts 3,850,000
Facebook Grant 25,000,000
Equity 7,000,000
County Funds - Measure A 19,042,900
Total $87,156,616
There are sufficient resources in the Residential Housing In-Lieu Fund to support this action, as
the $3 million has already been reserved for this project. If the loan is approved by City Council,
staff will amend the budget to allocate $3 million from the Residential fund to assist with the
development of 231 Grant.
The development cost for each unit is $792,332. The City’s $3 million loan is equivalent to
providing $27,272 per unit in exchange for 110 deed restricted units of affordable housing.
City Affordable Housing Fund Guidelines
Staff would like to note that the project will serve households earning up to 140% AMI.
However, the City Affordable Housing Fund Guidelines defines moderate income as households
earning up to 120% AMI. Therefore, the City will need to make clear in the loan agreement that
the City funds will be used solely for those units for households earning 120% AMI or below to
be consistent with the guidelines.
While the terms of this specific loan will be finalized at a later date, of note is that per the
Housing Funding Guidelines, the standard loan terms are a 3% interest rate, deferred, residual
receipts, 55-year term loan. The developer has also requested that the City defer any residual
receipts payments for the first 10 years of the loan. The loan may be forgiven at Council’s
discretion at the end of the loan.
Policy Implications:
The actions recommended in this report implements the City’s adopted 2015 -23 Housing
Element policies and programs supporting the development of low -income housing. The project
is consistent with the following Housing Element Policies:
Program H2.1.1: To allow for higher density residential development, consider amending the
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City of Palo Alto Page 5
zoning code to permit high-density residential in mixed use or single use projects in commercial
area within one-half mile of fixed rail stations and to allow limited exceptions to the 50-foot
height limit for Housing Element sites within one-quarter mile of fixed rail stations.
Policy H3.1: Encourage, foster, and preserve diverse housing opportunitie s for very low-, low-,
and moderate-income households.
Policy H 3.4: Pursue funding for the acquisition, construction, and rehabilitation of housing that
is affordable to very low-, low-, and moderate-income households.
In addition, the concept of teacher housing is one that has been discussed in the City Council
housing Colleagues’ Memo and the Comprehensive Plan (Policy L -2.5 and Program L-2.5.1). The
proposed development is generally consistent with the City’s housing goals, which express an
interest in providing high density multi-family housing near transit.
Resource Impact:
If approved, the project will receive $3.0 million from the City’s Residential Housing In- Lieu
Fund towards the development of the project. Sufficient funding is available to be appropriated
as this funding had been previously committed and earmarked.
Per the Housing Funding Guidelines, the standard loan terms are a 3% interest rate, deferred,
residual receipts, 55-year term loan. The loan may be forgiven at Council’s discretion at the end
of the loan. If the loan is repaid, staff will bring forward budgetary adjustments reflective of
that action during the budget process.
Timeline:
Staff will work with the County to execute loan documents and release funds by June 2022, if
approved by the City Council.
In addition, here is the County’s project development timeline for 231 Grant Ave nue:
Community Outreach Ongoing
Draft EIR Early Summer 2021
Draft EIR Community Meeting Early Summer 2021
Board of Supervisors Meeting (project approval) Late Summer 2021
Design and Permitting Jan 2021 – June 2022
Construction August 2022 – February 2024
Lease Up January 2024 – June 2024
Environmental Review:
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City of Palo Alto Page 6
Review and submittal of the attached report and the approval of the loan and relate d financing
regulatory documents are exempt from the California Environmental Quality Act (CEQA). On
January 11, 2022, the Santa Clara County Board of Supervisors certified the Final Environmental
Impact Report for the project.
Attachments:
Attachment4.a: Attachment A: 231 Grant Educator Workforce Housing Study Session
Presentation (PDF)
Attachment4.b: Attachment B: 231 Grant Ave Educator Workforce Housing Project
Description by County of Santa Clara (PDF)
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231 Grant
Educator Workforce Housing
City of Palo Alto Study Session
February 8, 2021
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30-day
Public
Scoping
Notice of Preparation
12/6/2020
Draft EIR
Late-Spring/ Early-
Summer 2021
Final EIR & BOS
Consideration
Late-Summer / Early
Fall 2021
Findings,Notice of
Determination
45-day
Public
Review
Public
Notice
Environmental Impact Report (EIR)
Process and Schedule
Sign Up for Project Updates
to be Notified
www.sccgov.org/231grant
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Developers:
•Mercy Housing California
•Abode Communities
Architect:
•Van Meter Williams Pollack
Outreach:
•Sarah Chaffin
Development Team 4.a
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Residential
•Total Units: 110 units including studio, 1 bedroom, 2 bedrooms
•Four Story Building totaling approximately 112,000 s.f.
•2,000 s.f.of residential community space
•Amenities: On-site laundry, landscaped private courtyards, on-site property management
Population Served
•Teachers, Educators and School District Employees
•Range of household incomes served
Project Description
Survey Data 231 Grant
Income Range Total # Units % of Total
60% AMI 27%27 25%
80% AMI 19%12 11%
>90%AMI 54%70 64%
Manager Unit 1
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Parking
•112 vehicular parking spaces
•1 space per unit
•Controlled access garage
•At grade double car stackers
•134 secured bike parking spaces
Public Space
•Three public plazas along Grant Avenue
•5,600 s.f.of outdoor plazas
•1,120 s.f.Flex space –to be determined
Project Description 4.a
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Innovative Solutions
All Electric Building
Solar PV Generation
EV Charging Stations
Open Air CorridorsDouble stacker car lifts
Modular Construction
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Community Engagement
Groups Engaged During Initial Outreach Period
•Palo Alto Unified School District
•Palo Alto Educator Association
•California School Employee Association-Palo Alto Chapter
•Palo Alto Chamber of Commerce
•Palo Alto Forward
•Palo Alto Neighborhood Association
•League of Women Voters
•College Terrace Residents Association
•Nearby residents, businesses and property owners
•Mountain View Los Altos School District
•Mountain View Los Altos Teachers Association
•California School Employee Association-Mountain View Los Altos Chapter
•Los Altos School District
•Los Altos Teachers Association
•California School Employee Association-Los Altos Chapter
•Mountain View Whisman School District
•Mountain View Whisman Teachers Association
•California School Employee Association-Mountain View Whisman Chapter
•Foothill De Anza College District
JANUARY –FEBRUARY 2021
Direct communication with adjacent residents
Launch of 231grant.org website
Mailing to 1000’ radius plus additional contacts
FEBRUARY –APRIL 2021
Study Sessions with Design Team
Focus Groups: Teachers and Classified Unions
Community Meetings
Listening Sessions / Office Hours
MAY 2021
Additional Mailings
Open House(s)
ONGOING
Nearby businesses
School District Superintendents, teachers,
classified unions, school boards
Community Organizations
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Timeline
2021
Community Outreach
Draft EIR/Community Meeting
Board of Supervisors Meeting (project approval)
Project Design
Ongoing
Early Summer
Late Summer/Early Fall
Ongoing
2022
Community Outreach
Project Design
Project Permitting
Construction Start
Ongoing
January -June
February –June
August
2023
Community Outreach
Construction
Ongoing
Ongoing
2024
Community Outreach
Leasing Process
Construction Completion
Ongoing
January –June
February
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Thank you
For more information, please visit:
www.231grant.org
www.sccgov.org/231grant
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County of Santa Clara
Facilities and Fleet Department
County Center at Charcot
2310 North First Street, Suite 200
San Jose, California 95131-1011
(408) 993-4600
_____________________________________________________________________________________________
Board of Supervisors: Mike Wasserman, Cindy Chavez, Otto Lee, Susan Ellenberg, S. Joseph Simitian
County Executive: Jeffrey V. Smith
231 GRANT EDUCATOR WORKFORCE HOUSING
Project Address: 231 Grant Avenue, Palo Alto, 94306
Developer: 231 Grant Avenue LLC
(Comprised of Abode Communities and Mercy Housing California)
A. Project Description
The 231 Grant Educator Workforce Housing is currently sponsored by the County of Santa Clara,
Facebook, the City of Palo Alto, and certain school districts in Santa Clara County. The project will
involve the demolition of the existing 6,800-square-foot office building at the project site and
construction of a new four-story building, totaling approximately 112,000 square feet. The project
consists of 110 residential units made up of studios, one and two bedroom units. The units will serve
primarily teachers and other school district employees from participating school districts in Santa Clara
and San Mateo County. The residential units are laid out in two C-shaped buildings which outline three
semiprivate courtyards and support residential amenities that foster connection and community.
Approximately 2,000 square feet of community space, including a lounge, activity room and laundry, will
be provided for residents’ use, as well as on-site property management. The courtyard spaces provide
outdoor spaces for residents to relax and gather. High-activity uses will occur in the central courtyard,
near the central bridge, stair and elevator. Other courtyards will be designed to include a variety of
seating, planting, gardening and gathering areas to support a wide range of individual and small group
activities.
Public space in the project, provided at street level, is centered on three existing trees. Each space
features a different active public use so residents, workers and community members can live, work and
mingle in a variety of ways. The existing palm, camphor, and redwood trees each define a “public living
room” to create almost 5,600 square feet of open public space. At Palm Plaza, at the corner of Birch and
Grant, an outdoor area is coupled with a nook carved into the building, next to the five ground floor
residential units. Camphor Plaza, in the middle of the block, is the central heart of the project. Plantings
and paving circle the camphor tree to welcome residents into the plaza and main residential entry. A
community use room, management offices, and the residential lobby all are centered on the ground
floor and activate the street level plaza. Redwood Plaza anchors the corner of Park Blvd and Grant, just
off the Park Blvd bikeway. A 1,120 SF flex space invites the neighborhood in, while outdoor seating
frames the redwood.
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Behind the active Grant Avenue edge, a compact, at-grade parking structure holds 112 parking spaces.
To achieve parking efficiency and to reduce costs, the at-grade concrete garage uses efficient double car
stackers, which is more cost efficient than a below grade garage. The garage has the ability to be
accessed from both Birch and Park Street. A secure bike room is included that can hold up to 134
bicycle parking spaces to encourage bicycling. Proximity to transit and to farmers markets, groceries,
shops, restaurants, parks, and libraries, can help residents reduce car trips for daily tasks, cutting down
on vehicle miles traveled and greenhouse gas emissions.
B. Site Plan – See attached site plan and massing
C. Community Outreach
1. Commitment to Community Involvement
Mercy Housing and Abode Communities is committed to incorporating the local community into the
development process through meetings with neighbors, neighborhood associations, and local leaders, as
well as through public meetings and regular written and electronic communications. In addition, they
are collaborating with local teachers and school employees from San Mateo and Santa Clara County
School Districts, including Los Altos, Palo Alto, Mountain View Whisman, Mountain View Los Altos, and
the Foothill-De Anza Community College District. In observance of health guidelines related to COVID-
19, community input will be sought through virtual meetings, email, regular mail, and the development
website 231grant.org (in development).
2. Teacher and School Employee Survey – June 2020
A survey conducted amongst the school districts in June 2020 produced the following results:
• 1300 Respondents
• 938 Interested in teacher & school employee housing
• 204 Palo Alto teachers & school employees interested in housing
• 94% Unit mix design meets the needs of future residents
3. Commitment to Continuous Communication
Community outreach will occur throughout pre-entitlement, entitlement, construction and during
operations. All communication will be timely, concise, and easily understood by all stakeholders. During
the initial outreach period, numerous stakeholder and community groups were engaged, as follows:
• Groups Engaged During Initial Outreach Period
o Palo Alto Unified School District
o Palo Alto Educator Association
o California School Employee Association- Palo Alto Chapter
o Palo Alto Chamber of Commerce
o Palo Alto Forward
o Palo Alto Neighborhood Association
o League of Women Voters
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o College Terrace Residents Association
o Nearby residents, businesses and property owners
o Mountain View Los Altos School District
o Mountain View Los Altos Teachers Association
o California School Employee Association- Mountain View Los Altos Chapter
o Los Altos School District
o Los Altos Teachers Association
o California School Employee Association- Los Altos Chapter
o Mountain View Whisman School District
o Mountain View Whisman Teachers Association
o California School Employee Association- Mountain View Whisman Chapter
o Foothill De Anza College District
In addition, ongoing and future outreach efforts will include the following:
• Ongoing and Future Outreach Efforts
• January 2021
o Direct communication with residents of adjacent apartment property
o Launch of 231grant.org website
o Mailing to 1000‘ radius plus additional contacts: share Fact Sheet, introduce website,
describe community design process, provide mailing address and phone contact for
“non-web” input and participation
• February, March, April
o Community meetings with design team
o Focus groups with teacher and classified union groups
o Community meetings
o Office hours/listening sessions
• May
o Additional mailing
o Open House(s)
• On-going outreach to
o Nearby businesses
o School district superintendents, teachers and classified unions, and school boards
o Community Organizations
Palo Alto for Sensible Zoning
Canopy
Kiwanis Club
Lions Club
Rotary Club
Chamber of Commerce
• See attached Fact Sheet for distribution to stakeholders and community groups
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4. Entitlements
As the Lead Agency, the County of Santa Clara will prepare an Environmental Impact Report (EIR) for the
proposed project. The EIR Scoping Meeting was held on December 16, 2020. Because this is a public
project undertaken by the County, approval of the project will require actions by the County of Santa
Clara, including approval by the County Board of Supervisors.
The EIR will identify the significant environmental effects anticipated to result from implementation of
the proposed project. As allowed by CEQA Guidelines §15063(a), an Initial Study has not been prepared
for the proposed project because an EIR will clearly be required. Due to the location of the project site in
an urban area that is not within or close to any farmlands or forestry resources, known mineral deposits,
or wildfire hazard areas, these environmental topics will not be addressed in detail in the EIR.
The EIR will evaluate all other environmental issues contemplated for consideration under CEQA
and the CEQA Guidelines, including:
• Aesthetics
• Air Quality
• Biological Resources
• Cultural Resources
• Energy
• Geology and Soils
• Greenhouse Gas Emissions
• Hazards and Hazardous Materials
• Hydrology and Water Quality
• Land Use and Planning
• Noise and Vibration
• Recreational Resources
• Population and Housing
• Public Services
• Transportation
• Utilities and Service Systems
• Tribal Cultural Resources
The EIR will also include other sections required by CEQA, including alternatives, cumulative
impacts, growth inducing impacts, significant and irreversible environmental changes, significant
unavoidable impacts, references, EIR preparers, and appendices.
5. Development Timeline
Community Outreach Ongoing
Draft EIR Early Summer 2021
Draft EIR Community Meeting Early Summer 2021
Board of Supervisors Meeting (project approval) Late Summer 2021
Design and Permitting Jan 2021 – June 2022
Construction August 2022 – February 2024
Lease Up January 2024 – June 2024
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|231 GRANT AVE
PALO ALTO, CA |
SITE CONTEXT
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|231 GRANT AVE
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CALIFORNIA AVENUE BUSINESS DISTRICT
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|231 GRANT AVE
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COUNTY COURTHOUSE
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|231 GRANT AVE
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ADJACENT BUILDINGS
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|231 GRANT AVE
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PARKING GARAGE
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|231 GRANT AVE
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MULTIFAMILY ALONG GRANT
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|231 GRANT AVE
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MULTIFAMILY ALONG BIRCH
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|231 GRANT AVE
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2555 PARK BLVD
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|231 GRANT AVE
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EXISTING SITE AERIAL
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PROPOSED - AXONOMETRIC VIEW
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TRASHMAINTENANCEELECTRICAL PARCEL BIKE PARKING
RESIDENTIAL
COMMUNITY
ROOM
PROP.
MGMT
FLEX SPACE
BFP
UTIL.MECHANICAL
1-BR1-BR1-BR1-BR
2-BR
PARKING GARAGE
LOBBY
MAIL
ELEV
ELEV
CAMPHOR COURT
REDWOOD
PLAZA
PALM
PLAZA
GRANT AVENUE
BI
R
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H
A
V
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N
U
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PA
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B
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COMMERCIAL BLDG RESIDENTIAL BLDG
COMMUNITY PLAZA
0'15' 30' 60'
|231 GRANT AVE
PALO ALTO, CA |
FIRST FLOOR PLAN
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COURTYARD 1 COURTYARD 2 COURT
YARD 3
LAUNDTRASH
1-BR1-BR
STUDIO
2-BR
1-BR
STUDIO
2-BR
STUDIO
1-BR1-BR
2-BR 2-BR
BRIDGE
1-BR
1-BR
STUDIO
1-BR
1-BR 1-BR
GRANT AVENUE
BI
R
C
H
A
V
E
N
U
E
1-BR 1-BR 1-BR1-BR 1-BR
STUDIO
2-BR
STUDIO
2-BR
1-BR1-BR
STUDIO
2-BR 2-BR
1-BR 1-BR
STUDIO
INDICATES SITE-BUILT SCOPE
0'4' 8' 16'
|231 GRANT AVE
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SECOND LEVEL PLAN (3RD & 4TH SIM)
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GRANT AVENUE
BI
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PA
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0'4' 8' 16'
|231 GRANT AVE
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ROOF PLAN
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1ST FLOOR
0"
2ND FLOOR
16' -0"
3RD FLOOR
27' -0"
4TH FLOOR
38' -0"
ROOF
50' -0"
ROOF PARAPET
55' -0"
14
'
-
0
"
12
'
-
6
"
1ST FLOOR
0"
2ND FLOOR
16' -0"
3RD FLOOR
27' -0"
4TH FLOOR
38' -0"
ROOF
50' -0"
ROOF PARAPET
55' -0"
12
'
-
6
"
14
'
-
0
"
0'16' 32' 64'
|231 GRANT AVE
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SECTIONS
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SCALE: 1/32" = 1'-0"
SECTION - LONG1
SCALE: 1/32" = 1'-0"
SECTION - CROSS2
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231 GRANT
Housing for teachers and school employees
Mercy Housing California (MHC) and Abode Communities are working
in conjunction with the County of Santa Clara, represented by
County Supervisor Joe Simitian, Facebook, the City of Palo Alto,
and participating school districts in Santa Clara and San Mateo
Counties to develop new housing on a county-owned site. The
property, located at 231 Grant Avenue in Palo Alto, offers an exciting
opportunity to create new high-quality, and much needed, rental
housing affordable for teachers, school employees, and their families.
This new community will include studio, one- and two-bedroom
apartments, amenity spaces, and landscaped gardens.
COMMITMENT TO COMMUNITY INVOLVEMENT
Mercy Housing California and Abode Communities are committed
to incorporating the local community into the development process
through meetings with neighbors, neighborhood associations, and
local leaders, as well as public meetings and regular written and
electronic communications. In addition, they are collaborating with
local teachers and school employees from San Mateo and Santa Clara
County School Districts, including Los Altos, Palo Alto, Mountain
View Whisman, Mountain View Los Altos, and the Foothill-De Anza
Community College District. In observance of health guidelines related
to COVID-19, MHC and Abode will solicit community input through
virtual meetings, email, regular mail, and the development website
231grant.org (in development).
231 GRANT AVENUE
PALO ALTO, CA
94306
UNITS
Approximately 110
PROPERTY TYPE
Teacher &
School Employee Housing
CONTACT
Sarah Chaffin
Community Liaison
650.906.6650
Chaffin.Sarah@outlook.com
mercyhousing.org/california | abodecommunities.org
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Mercy Housing California and Abode Communities are the state’s
most experienced owners/managers of service-enriched affordable
housing for families.
20,616 8,261 Family
Residents
Family
Homes
MERCY HOUSING CALIFORNIA AND ABODE COMMUNITIES
CURRENTLY OPERATE
AND
SERVE
Gra
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t
A
v
e
.
NOVEMBER 2020
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mercyhousing.org/California | abodecommunities.org
ABOUT MERCY HOUSING
Mercy Housing California is a California-based
nonprofit housing development organization
with the mission of creating and strengthening
healthy communities. Mercy Housing California
has created and preserved affordable housing for
Californians for over 35 years. Today MHC owns
and manages 151 communities with over 10,300
homes statewide for more than 19,600 people.
Mercy Housing Management Group (MHMG)
will be the management agent for the property
and is committed to providing quality property
management services that reinforce the
philosophy that all residents deserve respect,
dignity, and a place to call home. MHC and MHMG
are affiliates of Mercy Housing, Inc., a national
nonprofit housing development, management,
and resident services organization founded by six
congregations of Women Religious including the
Daughters of Charity, the Sisters of Mercy, and
the Sisters of St. Joseph of Orange.
ABOUT ABODE COMMUNITIES
Abode Communities works to create service-
enhanced affordable housing and socially
beneficial community facilities that promote the
social, economic, and physical transformation
of underserved communities. Through the
development, design, and long-term operation
of service-enhanced affordable and supportive
housing, we stabilize housing for families,
seniors, and individuals. Abode Communities
has previously built two school district housing
developments in partnership with Los Angeles
Unified School District, representing 116 units.
Abode Communities owns and manages 41
affordable housing communities with over 3,000
homes serving almost 7,000 residents.
MERCY
HOUSING
CALIFORNIA
& ABODE
COMMUNITIES
PROPERTY
LOCATIONS
— Abode Communities
— Mercy Housing
ABODE COMMUNITIES
1149 S. Hill Street, Suite 700
Los Angeles, CA 90015
213.629.2702
MERCY HOUSING
CALIFORNIA
1256 Market Street
San Francisco, CA 94102
415.355.7100
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CITY OF PALO ALTO
Supplemental Report - Item 4
MEETING DATE: FEBRUARY 7, 2022
TO: HONORABLE CITY COUNCIL
FROM: JONATHAN LAIT, DIRECTOR OF PLANNING & DEVELOPMENT SERVICES
SUBJECT: AGENDA ITEM NUMBER 4 – AUTHORIZE AND APPROVE A THREE
MILLION DOLLARS ($3,000,000) LOAN FROM THE HOUSING IN LIEU AND
IMPACT FEE FUNDS FOR THE DEVELOPMENT OF AN AFFORDABLE
WORKFORCE HOUSING PROJECT LOCATED AT 231 GRANT AVENUE;
APPROVE THE BUDGET AMENDMENT IN THE RESIDENTIAL HOUSING IN-
LIEU FUND; AUTHORIZE THE CITY MANAGER TO EXECUTE ASSOCIATED
AGREEMENTS.
This memorandum clarifies that the money provided by the City to support this project would be
transferred to the project developers (Mercy Housing and Abode Communities) as opposed to Santa
Clara County as indicated in the report. Accordingly, the staff recommendation for this action is as
follows:
Staff recommends that City Council take the following action to authorize and approve a three million-
dollar ($3,000,000) loan to Santa Clara County for the development of an affordable workforce housing
project located at 231 Grant Avenue:
1.Amend the Fiscal Year 2022 Budget Appropriation for Residential Housing In-Lieu Fund
(Fund 233), by a 2/3 vote, by: a. Increasing Grants and Subsidies in the amount of
$3,000,000; and b. Decreasing the Ending Fund Balance in the amount of $3,000,000;
2.Authorize the City Manager or his designee to execute a Loan Agreement, Regulatory
Agreement, and related documents to implement Council direction in a form
substantially similar to prior agreements approved by the City.
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City of Palo Alto (ID # 13888)
City Council Staff Report
Meeting Date: 2/7/2022
City of Palo Alto Page 1
Title: Policy and Services Committee Recommends Approval of the Office of
the City Auditor Construction Project Controls Report
From: City Manager
Lead Department: City Auditor
Recommendation
The Policy and Services Committee, City Auditor, and Staff recommend that the City
Council approve the Construction Project Controls report.
Executive Summary
Baker Tilly, in its capacity serving as the Office of the City Auditor, performed a review
of construction project controls as approved in the FY2021 Audit Plan approved by City
Council.
Through the audit activity, the Office of the City Auditor identified five (5)
recommendations. The Public Works Department concurred with each finding and has
drafted action plans for each item.
The Policy & Services Committee unanimously approved the report at the November 9,
2021 meeting (ID #13605; Video).
The Office of City Auditor will perform periodic follow up procedures to validate that
corrective actions have been implemented.
Background
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City of Palo Alto Page 2
The Office of the City Auditor included an assessment in the FY2021 Audit Plan
approved by City Council. The objectives of this review were to:
The Policy & Services Committee unanimously approved the report at the November 9,
2021 meeting (ID #13605; Video).
Environmental review is not applicable to this activity.
Attachments:
• Attachment5.a: OCA - Construction Controls Review (Final Draft - City Council)
The City of Palo Alto Public Works Department currently has approximately 150 active
projects in various stages of planning and construction. Per the Semiannual Update on
the Status of Capital Improvement Program Projects that reflected the status of all
active projects through December 2020, the total budget for the active projects is
approximately $670 million. The active projects include those identified in the Council
Infrastructure Plan introduced in 2014. This is a $235 million plan that includes ten
major capital projects ranging in value from $2 million to $118 million, in addition to the
dozens of other smaller maintenance and improvement projects in the Capital
Improvement Program. Note that other departments who manage capital projects,
aside from Public Works (e.g., Utilities) were excluded from this assessment.
1) Review documented policies, procedures and processes
2) Assess the adequacy of the current controls used to avoid, manage, or mitigate
project risks
3) Verify implemented procedures and processes conform to the documented policy
and procedures and identify any gaps between documented procedures and
implemented procedures
Discussion
The attached report summarizes the analysis, audit findings, and recommendations.
Timeline, Resource Impact, Policy Implications
The timeline for implementation of corrective action plans is identified within the
attached report. All corrective actions are scheduled to be implemented by July 1,
2022.
Stakeholder Engagement
The Office of the City Auditor worked primarily with the Public Works Department and
engaged with additional stakeholders, including the City Manager’s Office and City
Attorney’s Office, as necessary.
Environmental Review
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City of Palo Alto
Office of the City Auditor
Construction Project Controls
Assessment
October 20, 2021
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Executive Summary
Purpose of the Assessment
The objectives of Construction Project Controls Assessment was to:
1) Review documented policies, procedures and processes
2) Assess the adequacy of the current controls used to avoid, manage, or mitigate project risks
3) Verify implemented procedures and processes conform to the documented policy and procedures and identify
any gaps between documented procedures and implemented procedures
Report Highlights
The OCA found the documented procedures and controls adequate to manage and mitigate risks on construction
projects. We did not identify any material controls gaps or deficiencies with the implemented controls; however, we have
offered recommendations for improvement to further strengthen the implemented controls. This assessment did not test
the controls for effectiveness. A separate construction audit engagement will be performed on the new Public Safety
Building where the effectiveness of the documented project controls can be observed for an entire project.
Improvement
Recommendation –
Project Reporting
Pg. 8 The OCA recommends developing project reporting that can be used to
track project performance and as a risk mitigation tool.
The Public Works Department maintains a Semiannual Update on the Status of
Capital Improvement Program Projects that reflects including project budgets,
actual expenditures per the SAP system, projected completion dates and a
brief narrative regarding the current status of each project. In addition, each
project manager maintains their own project reporting related to the project
budget and progress; however, it does not follow the same format as the
Semiannual Update, or as other project managers. This is not considered a
controls deficiency because the project managers are actively tracking the
status of their projects and the Construction Administration Manual, which
defines required procedures and does specify a reporting format. Both the
Semiannual Update and project manager’s reporting only reflect historical data.
There is an opportunity to enhance the reporting to better track project
performance and be used as a risk mitigation tool. A uniform reporting format
should be considered and include the current estimate to complete the project
as well as the original scheduled completion date and the current estimated
completion date. Maintaining this type of reporting on a consistent basis can
help to identify and mitigate potential budget and schedule overruns earlier in
the project. It would also help to provide up-to-date project tracking, and could
streamline the process to compile the Semiannual Update.
Improvement
Recommendation –
Document Control
Pg. 8 The OCA recommends developing a consistent file management
structure.
The individual file management systems observed were adequate and allowed
for the efficient recall of project documentation; however, a consistent structure
could strengthen the City's controls on document management.
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Improvement
Recommendation –
Prevailing Wage
Monitoring
Pg. 8 The Construction Administration Manual should be updated to reflect the
controls that are currently implemented to verify prevailing wage
requirements.
The current implemented controls are not documented in the Construction
Administration Manual.
Improvement
Recommendation –
Schedule Management
Pg. 9 The Construction Administration Manual should be updated to provide
guidance and standards on schedule monitoring as well as remedial
procedures and escalation requirements for non-compliance.
The implemented controls related to schedule monitoring should be
documented in the Construction Administration Manual.
Improvement
Recommendation –
Allowance Usage
Pg. 9 The Construction Administration Manual should reflect the controls that
are currently in place for allowance usage and reconciliation.
There are currently controls in place to manage allowance usage when
applicable and these practices should be documented in the Construction
Administration Manual.
See the Assessment Results section for additional detail on each of these highlights.
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Table of Contents
Executive Summary ........................................................................................................................................................... 2
Purpose of the Assessment ........................................................................................................................................ 2
Report Highlights ........................................................................................................................................................... 2
Objective ........................................................................................................................................................................... 5
Background ..................................................................................................................................................................... 5
Scope ................................................................................................................................................................................. 5
Compliance Statement .................................................................................................................................................. 5
Organizational Strengths ............................................................................................................................................. 6
Technical Assessment ..................................................................................................................................................... 7
Assessment Results ....................................................................................................................................................... 14
Improvement Recommendation – Project Reporting ......................................................................................... 14
Improvement Recommendation – Document Control ........................................................................................ 14
Improvement Recommendation – Prevailing Wage Monitoring ...................................................................... 15
Improvement Recommendation – Schedule Management ............................................................................... 15
Improvement Recommendation – Allowance Usage .......................................................................................... 15
Appendices ........................................................................................................................................................................ 16
Appendix A: X ............................................................................................................................................................... 16
Appendix B: Management Response ..................................................................................................................... 17
Index of Tables
Table 1 – Risk Assessment Phase ..................................................................................... Error! Bookmark not defined.
Table 2 – Risk Framework ................................................................................................... Error! Bookmark not defined.
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Introduction
Objective The purpose of this assessment was to:
1) Review documented policies, procedures and processes
2) Assess the adequacy of the current controls used to avoid, manage,
or mitigate project risks
3) Verify implemented procedures and processes conform to the documented policy
and procedures and identify any gaps between documented procedures and
implemented procedures
Background The City of Palo Alto Public Works department currently has approximately 150 active
projects in various stages of planning and construction. Per the Semiannual Update on the
Status of Capital Improvement Program Projects that reflected the status of all active
projects through December 2020, the total budget for the active projects is approximately
$670 million. The active projects include those identified in the Capital Improvement
(Infrastructure) Plan introduced in 2014. This is a $235 million that includes ten major capital
projects ranging in value from $2 million to $118 million as well as dozens of other smaller
maintenance and improvement projects. Note that other departments who manage capital
projects, aside from Public Works (e.g., Utilities) were excluded from this assessment.
Risks related to construction projects include:
Reputational damage related to projects the public considers unsuccessful
Budget overruns due to excessive change order activity or abusive pricing practices
Schedule delays due to poor or improper project management
Weaknesses in project controls can magnify these risks on capital programs of this size.
Scope We reviewed the processes and procedures documented in the City’s Construction
Administration Manual dated February 22, 2021. We then conducted interviews with project
managers to walk through implemented controls and procedures.
The key controls areas included:
Prime contractor bid and award control
Contract administration and control
Schedule management
Communication and document control
Contractor billing review and approval
Change management
Allowance and contingency management
Verification of completed work
Closeout activities
Compliance
Statement
This audit activity was conducted in accordance with the Annual Audit Plan.
The audit activity was not performed in compliance with the generally accepted government
auditing standards (GAGAS). The audit activity was not performed in compliance with
GAGAS for two primary reasons:
- The individuals conducting the activity did not meet the CPE requirements. As
subject matter experts in construction risk, the team members are not required to
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obtain government audit CPE. Rather, multiple team members are required to be
technically competent construction risk professionals and obtain CPE in construction
risk topics.
o Mitigating factor – City Auditor Kyle O’Rourke and Manager Chiemi Perry
both adhere to CPE requirements and
- The City of Palo Alto Office of the City Auditor has not undergone an External Peer
Review in the required 3 year cycle as required by Standards.
o Note – the Office of the City Auditor will undergo a peer review at the
conclusion of FY22.
We planned and performed the activity to obtain sufficient, appropriate evidence to provide a
reasonable basis for our recommendations based on our objectives. We believe that the
evidence obtained provides a reasonable basis for our findings and conclusions based on
our audit the objectives.
Organizational
Strengths
During this audit activity, we observed certain strengths of the Public Works Department.
Key strengths include:
- The project manager’s interviewed have strong backgrounds in construction,
engineering and project management.
- The procedures for construction contract bid and award contained in the Construction
Administration Manual are both thorough and well defined. The Invitation for Bid (IFB)
document contains adequate instructions to the bidders, criteria for selection,
insurance, bonding, and prevailing wage requirements. It also includes the City's
standard contract documents. The project managers interviewed had thorough
understanding of the bid and award process.
- The Construction Administration Manual has a thorough process for reviewing project
change orders. The project manager’s interviewed follow a consistent and rigorous
process to review and validate change order requests from contractors.
Additionally, Baker Tilly noted the documented controls are adequate to manage and
mitigate risks on construction projects. While we have recommendations to further
strengthen the City’s controls, we did not identify any material controls gaps or deficiencies
with the identified controls. This objective of this engagement was to assess the adequacy of
documented controls. The effectiveness of the controls was not tested.
The Office of the City Auditor greatly appreciates the support of the Public Works
Department in conducting this assessment.
Thank you!
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Technical Assessment
To accomplish our objective, we reviewed the Public Works Construction Administration Manual to gain and
understanding of documented controls related to:
Prime contractor bid and award control
Contract administration and control
Schedule management
Communication and document control
Contractor billing review and approval
Change management
Allowance and contingency management
Verification of completed work
Closeout activities
Key processes were assessed to ensure they are adequately defined and appropriate to mitigate both general
construction risks and risks specific to the City of Palo Alto.
We also performed interviews with project managers to verify documented controls have been implemented as well as
to document any project controls that are not defined in the Construction Administration Manual. During these
interviews we asked individuals to provide examples of documentation. This was done to gain a better understanding
of controls environment and processes in place. We interviewed the following individuals/functions:
Director of Public Works
Airport Division
Environmental Services
Engineering Services
The following matrix summarizes each control area reviewed, the key risks and documented controls to address the risks.
The documented controls are adequate to mitigate the key risks in most instances. Testing to confirm the effectiveness of
the controls related to the project portfolio was not in the scope of this assessment. A separate construction audit will be
performed on the new Public Safety Building where the effectiveness of the documented controls will be tested.
Note: for our controls methodology we follow the Construction Audit and Cost Controls Institute (CAACCI) and the Project
Management Institute (PMI).
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Prime Contractor Bid and Award
Key Risks Summary of Documented Controls
Bid and award process is circumvented Policy and procedures related to bid are thoroughly documented in
Sections A and B of the Construction Administration Manual
Purchasing compiles the Invitation for Bid (IFB) and handles the
solicitation and summarizes the bids (Review of Purchasing not in this
assessment scope)
Collusion and bid rigging IFBs are advertised on the City’s procurement system, PlanetBids, and
can be accessed by all registered contractors
Incomplete bid documents leading to
misinterpreted award criteria and contract
requirements
Projects managers review and compile the technical specifications and
drawings
Purchasing compiles the Invitation for Bid (IFB) and handles the
solicitation and summarizes the bids (Review of Purchasing not in this
assessment scope)
The IFB document contains adequate instructions to the bidders,
criteria for selection, insurance, bonding, and prevailing wage
requirements. It also includes the City's standard contract documents
Low bid response IFBs advertised on PlanetBids and can be accessed by all registered
contractors
Response from unqualified contractors Larger projects involve a pre-qualification process to ensure
prospective contractors have the financial strength and qualifications to
perform the work
Contractors are required to provide valid licensing to perform work to
be considered a responsive bidder
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Contract Administration
Key Risks Summary of Documented Controls
Non-compliance with insurance and bonding
requirements
Procedures related to insurance are defined in Section B.1 of the
Construction Administration Manual.
Purchasing contract manager (in consultation with the awarding
department and the City’s risk manager as needed) defines the
insurance requirements that are applicable to the project
The contractor awarded the work needs to provide all certificates of
insurance and proof of bonding prior to the contract being executed
Project managers monitor the expiration dates of the documents and
obtain current documents when needed
Non-compliance with prevailing wage
requirements
Section 4.0 of the IFB defines the certified payroll requirements (No
controls are documented in the Construction Administration
Manual – see Recommendations for Improvement)
When certified payroll is required to be provided to the City under the
contract, it is collected weekly
Project managers verify wages are compliant with prevailing wage
requirements
Project managers perform spot checks with trade and craft workers to
verify rates and hours reflected in the certified payroll are accurate
Billing non-compliance See contractor billing and approval
Failure to deliver the project as specified See verification of complete work
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Schedule Management
Key Risks Summary of Documented Controls
Project delays leading to cost escalation and
delayed placed in service
Project managers interviewed conduct regular schedule reviews with
the contractor at weekly, bi-weekly or monthly meetings depending on
the size and magnitude of the project
The schedule review involves checking the current physical progress of
the project against the project schedule and major milestones, verifying
long lead items are being procured in a timely fashion, and reviewing
look-ahead schedules
The status of current projects are discussed internally at monthly Public
Works project manager meetings
If a project falls behind schedule, project managers issue written notice
to the contractor and require a recovery plan
See Recommendations for Improvement related to documenting
the current procedures
Communication and Document Control
Key Risks Summary of Documented Controls
Budget overruns and schedule delays that
could have been mitigated with timely and
accurate reporting
Each project manager has their own project tracking and progress
reporting document. The documents track amounts expended against
the contract values and have basic information on progress
Public Works compiles a semiannual report reflecting the progress of
all CIP
Project budgets and progress are discussed internally at monthly
Public Works project manager meetings
See Recommendation for Improvement related to project
reporting
Poor document management can result in an
inability to:
Support and defend key decisions on
the project
Verify installed quantities and
physical progress in order to validate
contractor payment applications
Validate change orders
Resolve contractor disputes and
defend against claims
Section C8 of The Construction Administration Manual defines the
principal types of documentation that should be maintained on each
project
Project Managers’ document management systems were observed
during interviews. They were organized and allowed them to access
needed documents. When asked to provide documents as a follow up
to the interviews, the requests were fulfilled within one day
See recommendation for Improvement related to document
control
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Contractor Billing Review and Approval
Key Risks Summary of Documented Controls
Billing errors The following controls are applicable to each key risk:
Overpayments to contractors Section C5 of the Construction Administration Manual defines
contractor billing review procedures
Payment for work that has not been
completed
Project managers observe physical progress to verify work and/or
quantities installed
Project managers review the Project Inspectors daily inspection reports
as additional confirmation of physical progress
Project managers check the math and confirm any unit rate billings
comply with the bid documents
If errors are noted, billings are sent back to the contractor for revisions
Change Management
Key Risks Summary of Documented Controls
Overpriced change orders Section C9 of the Construction Administration Manual defines change
order procedures
Change orders are checked for arithmetic accuracy
Where applicable labor rates and materials rates are compared to the
bid documents to ensure consistency with bid amounts
When applicable labor rates are compared to certified payrolls
If needed, the project management team may do an independent take
off to verify the quantities and pricing are reasonable
Change orders for duplicate scope and
rework
Section C9 of the Construction Administration Manual defines change
order procedures
Change order scope of is compared to the bid documents to confirm it
is a change in scope
RFIs related to the change order scope are reviewed
Unauthorized change orders Section C9 of the Construction Administration Manual defines change
order procedures
The Construction Administration Manual contains an authorization
matrix detailing approval limits
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Allowance and Contingency Management
Key Risks Summary of Documented Controls
Unauthorized allowance usage The following controls are applicable to each key risk:
Allowance costs co-mingling Project Managers track project contingency (this is a requirement in
Section C9 of the Construction Administration Manual)
Allowances are broken out as separate line items in the bid documents
All allowance usage requires an Allowance Usage Request. This is
documented using a process similar to change order review and
approval
See Recommendations for Improvement related to contingency
management.
Verification of Completed Work
Key Risks Summary of Documented Controls
Work not installed per specifications The following controls are applicable to each key risk:
Failure to deliver the contracted scope Section C1 and C8.1 of the Construction Administration Manual define
procedures related to verification of completed work
Each project has a project inspector that reviews progress and verifies
compliance with specifications
The project inspector completes daily inspection reports
Project managers review the daily inspection reports to confirm
progress
Project managers perform regular site visits to verify the work in place
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Closeout Activities
Failure to deliver the contracted scope Section C11 of the Construction Administration Manual defines
procedures related to closeout activities
A punch list is generated by the project manager once the contractor
notifies the project manager the work has been completed
A Letter of Acceptance is issued to the contractor once all work is
certified complete
Subcontractor claims or stop payment
notices against the contractor
Section C11 of the Construction Administration Manual defines
procedures related to closeout activities
The contractor is required to provide an affidavit certifying all
subcontractors and material suppliers have been paid along with stop
payment notice waivers
Inability to operate manage and maintain the
asset
Section C11 of the Construction Administration Manual defines
procedures related to closeout activities
Article 9.8.2 of the General Conditions document stipulates that O&M
Manuals, as built drawings and manufacturer warranties need to be
submitted prior to final payment
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Assessment Results
Improvement
Recommendation – Project
Reporting
The OCA recommends developing project reporting that can be used to
track project performance and as a risk mitigation tool.
In our initial request to the Public Works Department on March 22, 2021, we
asked for a schedule of construction projects in progress along with projects
completed in the past 12 months, including a description of the project, the
initial project budget and the current or final budget. The Public Works
Department provided the most recent Semiannual Update on the Status of
Capital Improvement Program Projects that reflected the status of all active
projects through December 2020. This report reflected each project’s budget,
actual expenditures per the SAP system, projected completion dates and a
brief narrative regarding the current status of each project. In addition we
reviewed the individual project reporting from eight projects with approximate
expenditures of $48 million (see Appendix A). We noted each project
manager maintains their own project reporting related to the project budget
and progress; however, it does not follow the same format as the
Semiannual Update, or as other project managers. This is not considered a
controls deficiency because the project managers are actively tracking the
status of their projects. However, the reporting produced only reflects
historical data and there is an opportunity to enhance the reporting to better
track project performance.
We recommend enhancing the current report format to include the current
estimate to complete the project as well as the original scheduled completion
date and the current estimated completion date. Maintaining this type of
reporting on a consistent basis can help to identify and mitigate potential
budget and schedule overruns earlier in the project. It would also help to
provide up-to-date project tracking, and could streamline the process to
compile the Semiannual Update.
Additionally, this type of project reporting can be used to assess the
performance of specific contractors or project types. This would allow the
Public Works Department to identify trends such project as projects or
contractors that consistently incur a high magnitude of change orders or
consistently fall behind schedule.
This type of reporting can be maintained manually using readily available
tools such as Microsoft Excel; however, the City would benefit by exploring
project management software options that could generate this reporting more
efficiently. Use of a project management software could also help with
consistent file management as well (see Document Control
recommendation).
Improvement
Recommendation – Document
Control
The OCA recommends developing a consistent file management
structure.
Each project manager has their own file management structure. We
observed the different file structures during our interviews by asking project
managers to share their screens and navigate through their file systems with
us. The individual file management systems were adequate and allowed for
the efficient recall of project documentation; however, a consistent structure
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could strengthen Public Works’ controls on document management. As noted
in the Project Reporting recommendation, the City could consider a project
management software option that would also act as a project file
management system.
Improvement
Recommendation – Prevailing
Wage Monitoring
The Construction Administration Manual should be updated to reflect
the controls that are currently implemented to verify prevailing wage
requirements.
The contractor's requirements for prevailing wage and certified payroll
submission are defined in Section 4.0 of the Invitation For Bids (IFB)
document. The procedures performed related to collection and review of
certified payrolls by the project managers, which is required if the project is
grant funded, are not reflected in the Construction Administration Manual. In
circumstances where a project is grant funded, the City policy requires that
the project manager verifies compliance with prevailing wage requirements.
This process should be reflected in the Construction Administration Manual.
Additionally the Construction Administration Manual should detail the City's
remedies for non-compliance.
Improvement
Recommendation – Schedule
Management
The Construction Administration Manual should be updated to provide
guidance and standards on schedule monitoring as well as remedial
procedures and escalation requirements for non-compliance.
The project managers interviewed all conduct regular schedule reviews with
the contractor at weekly, bi-weekly or monthly meetings depending on the
size and magnitude of the project. Typically the schedule review involves
checking the current physical progress of the project against the project
schedule and major milestones, verifying long lead items are being procured
in a timely fashion, and reviewing schedule look-ahead schedules. The
remedies currently used by the project management team if a project falls
behind schedule is to issue written notice to the contractor and require a
recovery plan. In addition, progress on current projects is discussed internally
at Public Works meetings that occur each month. These practices should be
documented in the Construction Administration Manual.
Improvement
Recommendation – Allowance
Usage
The Construction Administration Manual should reflect the controls
that are currently in place for allowance usage and reconciliation.
Projects may contain budgeted scopes of work the City is considering, but
the City has not yet finalized the design. Such scopes are broken out in the
bid documents as an allowance line item. The City can then elect to buy
these items at a later date once the design is completed. The project
manager’s interviewed stated charging against the allowance requires an
allowance usage request. There is a specific document for this request and
the review process follows the same procedures as executing a change
order. These practices should be documented in the Construction
Administration Manual.
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Appendices
Appendix A: Project Reporting
The OCA reviewed the project reporting for the following projects:
Project Project ID Area Total Project Budget Actual Expenditures
Highway 101
Pedestrian/Bicycle
Overpass Project
PE-11011 Council Infrastructure Plan $ 22,889,453 $ 14,142,494
High and Bryant
Street Garages
Waterproofing
and Repairs
PE‐18002 Building and Facilities $ 443,376 $ 257,431
Cubberley Roof
Replacements
CB‐16002 Building and Facilities $ 860,400 $ 569,606
Rinconada Park
Improvements
PE‐08001 Parks and open spaces $ 8,742,375 $ 2,350,551
Street
Maintenance
PE‐86070 Street and Sidewalks $ 11,055,995 $ 5,226,631
Airport Apron
Reconstruction
AP‐16000 Airport Projects $ 44,573,110 $ 23,736,439
Primary
Sedimentation
Tank
Rehabilitation
WQ‐14003 Wastewater Treatment $ 20,681,849 $ 738,257
Plant Repair,
Retrofit and
Equipment
Replacement
WQ‐19002 Wastewater Treatment $ 7,332,834 $ 760,983
Total $ 116,579,392 $ 47,782,392
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Appendix B: Management Response
Recommendation Responsible
Department(s)
Agree, Partially Agree, or Do Not Agree and Target Date and Corrective Action
Plan
The OCA recommends developing project reporting that can be used to
track project performance and as a risk mitigation tool, including
enhancing the current report format to include the current estimate to
complete the project as well as the original scheduled completion date
and the current estimated completion date. Maintaining this type of
reporting on a consistent basis can help to identify and mitigate
potential budget and schedule overruns earlier in the project.
Public Works Public Works Department appreciates the audit observations which
affirm strong project management and controls that manage and mitigate
construction risks. The audit recommendations generally seek to
enhance or further document existing practices, and the department is
confident that they can be addressed with a modest investment of staff
resources.
Concurrence: Partially Agree
Target Date: 7/1/2022
Action Plan:
1. Review current project tracking practices and formats in use: by
2/1/2022
2. Standardize updated project tracking formats, including some
potential differences between approaches due to factors such as
project size and recurring vs. one-time project: by 4/1/2022
3. Update Construction Administration Manual and complete staff
training and implementation of updated practices: by 7/1/2022
The OCA recommends developing a consistent file management
structure. Each project manager has their own file management
structure. A consistent structure could strengthen Public Works’ controls
on document management. As noted in the Project Reporting
recommendation, the City could consider a project management
software option that would also act as a project file management
system.
Public Works Concurrence: Partially Agree
Target Date: March 1, 2022
Action Plan: Public Works has a standard file management structure for
capital project documentation. The department will confirm and make
any potential updates to the existing file management structure,
document the file management structure in the Construction
Administration Manual, and complete staff training and implementation of
the updated practice. Note: Additional supplemental filing systems will
also be maintained as required by grants (e.g. Caltrans, FAA).
The Construction Administration Manual should be updated to reflect
the controls that are currently implemented to verify prevailing wage
requirements. The contractor's requirements for prevailing wage and
certified payroll submission are defined in Section 4.0 of the Initiation
For Bid (IFB) document. The procedures performed related to collection
Public Works Concurrence: Agree
Target Date: March 1, 2022
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Recommendation Responsible
Department(s)
Agree, Partially Agree, or Do Not Agree and Target Date and Corrective Action
Plan
and review of certified payrolls by the project managers are not
reflected in the Construction Administration Manual. This process
should be reflected in the Construction Administration Manual.
Additionally the Construction Administration Manual should detail the
City's remedies for non-compliance.
Action Plan: Public Works is in the process of updating the Construction
Administration Manual and will include this information in the current
update.
The Construction Administration Manual should be updated to provide
guidance and standards on schedule monitoring as well as remedial
procedures and escalation requirements for non-compliance. The
remedies currently used by the project management team if a project
falls behind schedule is to issue written notice to the contractor and
require a recovery plan. In addition, progress on current projects is
discussed internally at Public Works meetings that occur each month.
These practices should be documented in the Construction
Administration Manual.
Public Works Concurrence: Agree
Target Date: March 1, 2022
Action Plan: Public Works is in the process of updating the Construction
Administration Manual and will include this information in the current
update.
The Construction Administration Manual should reflect the controls that
are currently in place for allowance usage and reconciliation. Projects
may contain budgeted scopes of work the City is considering but has
not yet finalized the design. These are broken out in the bid documents
as an allowance line item. The City can then elect to buy these items at
a later date once the design is completed. The project manager’s
interviewed stated charging against the allowance requires an
allowance usage request. There is a specific document for this request
and the review process follows the same procedures as executing a
change order. These practices should be documented in the
Construction Administration Manual.
Public Works Concurrence: Agree
Target Date: March 1, 2022
Action Plan: Public Works is in the process of updating the Construction
Administration Manual and will include this information in the current
update.
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City of Palo Alto (ID # 13890)
City Council Staff Report
Meeting Date: 2/7/2022
City of Palo Alto Page 1
Title: Policy and Services Committee Recommends Approval of the Office of
the City Auditor's Initial Public Safety Building Monitoring Report
From: City Manager
Lead Department: City Auditor
Recommendation
The Policy and Services Committee, City Auditor, and Staff recommend that the City
Council approve the Initial Public Safety Building Construction Monitoring report.
Executive Summary
Baker Tilly, in its capacity serving as the Office of the City Auditor, performed a review
of compliance with contractual audit requirements for the Architect, Inspector of
Record, Construction Manager, Contractor and Waterproofing Inspector associated with
the Public Safety Building construction project. In addition, Baker Tilly will verify that
project expenditures billed to City of Palo Alto are adequately supported, verifiable, and
appropriately allocated to the project. This activity was conducted in accordance with
the FY2021 Audit Plan approved by City Council.
Background
This is an on-going audit activity. The City Auditor will draft a similar report on a
monthly basis. The report contains two critical items:
1) Audit Issues Log – lists various audit ‘issues’ including a description of the issue
identified, the status of the item, and the result (which is management’s
response to the issue).
2) Request for Information (RFI) Log – contains a running list of the monitoring
activities performed by the City Auditor. This list does not represent findings/
observations/ issues, but rather is a mechanism to track on-going monitoring
activities. Note that an ‘open’ item simply indicates that a request for information
has been made by the City Auditor.
As of November 17, 2021, the Office of the City Auditor identified two (2) audit issues,
totaling $7,331.77 in potentially recoverable costs out of a total of $22.5M in financial
transaction reviewed. The Public Works Department is working with the respective
vendors to be credited for those costs.
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City of Palo Alto Page 2
The Office of City Auditor will continue to perform monthly monitoring procedures in
accordance with the approved task order and routinely bring forward status updates t o
the Policy and Services Committee and City Council. Future reports are anticipated to
be presented as informational.
The Policy & Services Committee unanimously approved the report at the December 14,
2021 meeting (ID #13837).
The Office of City Auditor will perform periodic follow up procedures to validate that
corrective actions have been implemented.
Discussion
The attached report summarizes the analysis, audit findings, and recommendations.
Timeline, Resource Impact, Policy Implications
Costs associated with this audit activity were approved by City Council in the form of a
task order. The audit activity has been completed within budget, so there were no
additional impacts on budget. The timeline for implementation of corrective action
plans is identified within the attached report.
The OCA would like to acknowledge the efforts of City Staff, including efforts by Public
Works to respond to information requests and questions in an expeditious manner.
Stakeholder Engagement
Environmental Review
Environmental review is not applicable to this activity.
Attachments:
• Attachment6.a: City of Palo Alto - PS Building - Status Update 11.17.21
The Office of the City Auditor worked primarily with the Public Works Department and
engaged with additional stakeholders, including the City Manager’s Office and City
Attorney’s Office, as necessary.
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This update is solely intended for the use of the City of Palo Alto's internal management.
Status Update
City of Palo Alto
Public Safety Building - Construction Audit
11/17/2021
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Client: City of Palo Alto
Project:Public Safety Building
Status Update
Date:11.17.2021
2. Reviewed additional payment applications, invoices, and change orders from each vendor through September 31, 2021.
Audit Scope and Objectives
City of Palo Alto engaged Baker Tilly US, LLP (“Baker Tilly”, “we”, or “our) to perform construction audit services on the Public
Safety Building project.
The primary objectives of this engagement are to ensure compliance with contractual audit requirements for the Architect,
Inspector of Record, Construction Manager, Contractor and Waterproofing Inspector. In addition, Baker Tilly will verify that project
expenditures billed to City of Palo Alto are adequately supported, verifiable, and appropriately allocated to the project.
Current Period Audit Events
Baker Tilly performed the following items during the current period:
1. Reviewed Public Works response to the RFI log dated October 15, 2021.
There are no events hindering audit progress.
Current Period Audit Issues
Baker Tilly noted the following audit issue in the current period.
- Nova Partners invoices from June 2017 to December 2017 included billing rate overcharges totaling $6,975. Public Works will
work with Nova to receive a credit on a future invoice (See AI No. 2 and RFI No.1). Baker Tilly will note this item as closed once
the forthcoming invoice is executed.
Current Period Requests for Information
During the current period we added RFI No. 13 to No. 16 as follows:
- RFI No. 13 - Swinerton Builders - Pay App #5 is required.
- RFI No. 14 - Swinerton Builders - In Change Order #10, there are differences between amounts executed and support provided.
This difference is due to time extension and its respective costs not being approved at the time. Additional breakdown support of
these costs is required.
- RFI No. 15 - RossDrulisCusenbery (RDC) - Supporting documents for AS #25 is required.
- RFI No. 16 - 4 Leaf, Inc - All invoices subsequent to July 2021 are required.
We will share the RFI log with Public Works and report on the results of the new items on the December Status Update.
Upcoming Audit Activities
1. Review Public Works response to the updated RFI Log items.
2. Collect and review any additional payment applications, invoices, and change orders through October 31, 2021.
3. Draft the December Status Update detailing the results of our review.
Events Hindering Progress
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Client: City of Palo Alto
Project:Public Safety Building
Status Update
Date:11.17.2021
Completed Tasks
Baker Tilly has completed the following tasks:
1. Reviewed the contract documents for 4Leaf, Inc. (Inspector of Record), Nova Partners, Inc (Construction Manager), RDC
(Architect), and Swinerton Builders (Contractor).
2. Developed monthly testing procedures based on the terms of each contract.
3. Reviewed the payment applications, invoices, and change orders from each vendor from project inception through the period
ending September 30, 2021.
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Client City of Palo Alto
Project Public Safety Building
Audit Issues (AI) Log
Updated:11.17.2021
AI ID No.Period Audit Issue AI Date
Response
Date Status Result Amount
001 October Monthly
Review
Swinerton Builders - COR #25 which was
included in Change Order #4 included a
duplicate charge for equipment markup
totaling $356.77 (see RFI #7).
9/23/2021 11/15/2021 Closed Public Works provided Change Order #8
reflecting the credit.
Baker Tilly reviewed Change Order #8
and confirmed credit.
356.77$
002 November Monthly
Review
Nova Partners - Invoices from June 2017 to
December 2017 billed an Estimator at a rate
of $175 per rate rather than the agreed-upon
rate of $160 per hour. This resulted in a
billing rate overcharge totaling $6,975
(see RFI #1).
10/15/2021 Open Public Works will work with Nova to
receive a credit on a future invoice.
6,975.00$
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Client City of Palo Alto
Project Public Safety Building
Request for Information (RFI) Log
Updated:11.17.2021
RFI ID No.Period Request Contact RFI Description Request Date Response Date Response Status Result
001 Monthly testing Public Works Nova Partners - Please provide all invoices prior to February 2021. 9/20/2021 9/23/2021 Public Works provided the requested documents to Baker Tilly. Open 10/15/2021 - Upon review of invoices prior to February 2021 , Baker Tilly noted the
following: Invoices from June 2017 to December 2017 billed an Estimator at a rate
of $175 per hour; however, the agreed-upon rate for an Estimator, as stated in
Exhibit C-1 of the contract, is $160 per hour. This results in a potential billing rate
variance totaling $6,975. Was the rate of $175 per hour previously approved. See
Schedule 1.
11/15/2021 - Public Works provided an explanation for the potential billing rate
variance. Per Public Works, "a Senior Estimator was used to provide services in
2017 and charged the correct rate at the time for Senior Estimator. Public Works
acknowledges that there was no Senior Estimator rate in the contract, but it was
added in 2018 through contract amendment #2. Public Works will work with Nova
to receive a credit on a future invoice for the difference."
11/17/2021 - Baker Tilly reviewed Public Works explanation and it appears
reasonable. Baker Tilly will review future invoice for confirmation of credit
adjustment.
002 Monthly testing Public Works Nova Partners - Invoices from February to April 2021 did not reflect the percentage of
completion for each task as stipulated in Section 5 of the contract. However, this was
rectified in the May invoice which showed an aggregate 68% of completion for all tasks.
No response required at this time; however, we will be monitoring the percentage of
completion in each invoice moving forward to confirm compliance with the contract
documents.
9/20/2021 9/23/2021 No response was required. Public Works is aware Baker Tilly is monitoring the
percentage of completion in each invoice to confirm compliance.
Closed Baker Tilly reviewed invoices subsequent to April 2021. Noted invoices reflect
percentage of completion and are in compliance with contract documents. No
additional comments.
003 Monthly testing Public Works Nova Partners - The following employees were not listed in Exhibit "C-1" of the contract:
Joe Capps-Jenner, Sam Tooley, and Jason Luong. Please provide the approved billing
rates for each employee.
9/20/2021 9/23/2021 Public Works provided the requested billing rates to Baker Tilly. Closed Baker Tilly reviewed the billing rate schedules. No additional comments.
004 Monthly testing Public Works Nova Partners - Please provide all supporting documents for Additional Services prior to
AS #11.
9/20/2021 9/23/2021 Public Works provided the requested documents to Baker Tilly. Closed Baker Tilly reviewed Additional Services prior to AS #11. No exceptions noted.
005 Monthly testing Public Works Swinerton Builders - It appears Pay App #3 has a calculation error on the first page.
Contract Sum to Date (Line 3) totals $84,177,752, the recalculated amount reflects
$84,375,269.04. This does not result in a billing error on the Payment Application #3;
however, the correct Contract Sum should be confirmed and reflected on the payment
application.
9/20/2021 9/23/2021 Public Works provided a revised payment application to Baker Tilly. Closed Baker Tilly reviewed the revised payment application. No exceptions noted.
006 Monthly testing Public Works Swinerton Builders - Please resend Change Order #1 and the supporting documents.
The documents provided were not able to be downloaded.
9/20/2021 9/23/2021 Public Works provided the requested documents to Baker Tilly. Closed Baker Tilly reviewed CO #1 and its supporting documents. No exceptions noted.
007 Monthly testing Public Works Swinerton Builders - In Change Order #4, it appears equipment markup is double
charged in COR #25. Invoice support shows a direct cost of $2,765.04 and a equipment
mark up of 10% totaling $3,041.54. This amount is then carried to the Change Order
Request Breakdown (Line 11) and an additional 10% markup is calculated (Line 15).
This is a minor potential variance totaling $349.77 after the applicable Swinerton fees are
added to the change order. The direct cost alone without the mark up should have been
carried to Line 11. Please review the supporting documentation. Does Palo Alto wish to
correct this on a future change order?
9/20/2021 9/23/2021 Public Works recalculated the variance to be $356.77 rather than $349.77.
Palo Alto will correct this in a future change order once variance is confirmed.
Closed 10/15/2021 - Baker Tilly will review future change order for confirmation of
variance adjustment.
11/15/2021 - Public Works provided Change Order #8 reflecting the variance
adjustment.
11/17/2021 - Baker Tilly reviewed Change Order #8 and confirmed variance
adjustment.
008 Monthly testing Public Works RossDrulisCusenbery (RDC) - Please provide all invoices prior to February 2021.9/20/2021 9/23/2021 Public Works provided the requested documents to Baker Tilly. Closed Baker Tilly reviewed invoices prior to February 2021. No exceptions noted.
009 Monthly testing Public Works RossDrulisCusenbery (RDC) - Please provide all supporting documents for Additional
Services prior to AS #16.
9/20/2021 9/23/2021 Public Works provided the requested documents to Baker Tilly. Closed 10/15/2021 - Upon review of Additional Services prior to AS #16, Baker Tilly noted
the following:
AS #3 - No documents were provided to support AS #3. Please provide supporting
documents.
AS #4 - This includes added services for Hinman Consultants; however, the
original contract documents do not contain a billing rate schedule for Hinman.
Please provide approved billing rates.
AS #9 and AS #12 - Interstice has Designer priced at a rate of $160 per hour;
however, the agreed-upon rate for a Designer is $140 per hour.
AS #13 - Interstice has design services priced at a blended hourly rate of $187.20,
which is higher than the agreed-upon Project Manager rate of $180. Please
provide the build-up to this blended rate.
11/15/2021
AS #3 - Public Works provided supporting documents.
AS #4 - Public Works provided billing rate schedule for Hinman Consultants.
AS #9 and AS #12 - Public Works provided invoices that reflected Designer billed
at the agreed-upon rate.
AS #13 - Public Works provided invoices that reflected Design Services billed at
the agreed-upon rate.
11/17/2021
AS #3 - Baker Tilly reviewed supporting documents. No exceptions noted.
AS #4 - Baker Tilly reviewed the billing rate schedule. No exceptions noted.
AS #9 and AS #12 - Baker Tilly reviewed invoices provided. No exceptions noted.
AS #13 - Baker Tilly reviewed invoices provided. No exceptions noted.
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Client City of Palo Alto
Project Public Safety Building
Request for Information (RFI) Log
Updated:11.17.2021
RFI ID No.Period Request Contact RFI Description Request Date Response Date Response Status Result
010 Monthly testing Public Works RossDrulisCusenbery (RDC) - In reviewing AS #21, we noted no supporting documents
were provided for WSP, Sandis Civil, and Interstice costs.
9/20/2021 9/23/2021 Public Works provided an explanation for the execution of AS#21. Closed Baker Tilly reviewed AS #21 and explanation appears reasonable. No additional
comments.
011 Monthly testing Public Works Consolidated Engineering Laboratories - Please provide all invoices. 9/20/2021 9/23/2021 No Consolidated Engineering Laboratories invoices to date.Closed N/A
012 Monthly testing Public Works 4Leaf, Inc - Please provide master agreement C21177994A.9/20/2021 9/23/2021 Public Works provided the requested agreement to Baker Tilly. Closed Baker Tilly reviewed the agreement. No additional comments.
013 Monthly testing Public Works Swinerton Builders - Please provide Pay App #5. 11/17/2021 Open
014 Monthly testing Public Works Swinerton Builders - In Change Order #10, amount executed for COR 59 shows
$60,284.28; however, support totals $99,635.05. This difference is due to time
extension and its respective costs not being approved at the time. Please provide the
breakdown of these costs as there is no clear breakdown in the support. This also
occurs in COR 41, 83, and 22.
11/17/2021 Open
015 Monthly testing Public Works RossDrulisCusenbery (RDC) - Please provide supporting documents for AS #24. 11/17/2021 Open
016 Monthly testing Public Works 4 Leaf, Inc - Please provide all invoices subsequent to July 2021.11/17/2021 Open
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City of Palo Alto (ID # 13891)
City Council Staff Report
Meeting Date: 2/7/2022
City of Palo Alto Page 1
Title: Policy and Services Committee Recommends Approval of the Office of
the City Auditor's Task Order to Perform a Wire Payment Process and
Controls Review
From: City Manager
Lead Department: City Auditor
Recommendation
The Policy and Services Committee recommends that the City Council approve the
Office of the City Auditor’s Wire Payment Process and Controls Audit Activity Task
Order.
Discussion
In accordance with Baker Tilly's agreement with the City, the Office of the City Auditor
is required to conduct audit activities each year. The forthcoming audit plan, to be
presented to Policy & Services Committee in February of 2022, will include a
recommended audit activity, Wire Payment Process and Controls Review project. Given
the importance of the topic, and that the City has been subject to multiple attempts to
misdirect wire payments, the City Auditor recommends that the City begin the work at
an earlier date.
Preliminary audit objectives include:
• Determine whether adequate controls are in place and working effectively to
ensure that all disbursements are valid and properly processed in compliance
with City’s policies and procedures
• Determine whether end user security awareness training is sufficient to prevent
erroneous payments
The Policy & Services Committee unanimously approved the task order at the December
14, 2021 meeting (ID # 13838).
Timeline, Resource Impact, Policy Implications (If Applicable)
The budget for each Task Order noted above aligns to the previously approved budget
for the Office of the City Auditor, the agreement with Baker Tilly, and will be included in
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City of Palo Alto Page 2
the Audit Plan for 2022, scheduled for review in February 2022. Thus, there is no
additional resource impact associated with this item.
Stakeholder Engagement
The Office of the City Auditor will coordinate with the Administrative Services
Department, as well as with the Office of the City Attorney and the Office of the City
Manager.
Environmental Review
Environmental review is not applicable to this activity.
Attachments:
• Attachment7.a: Task Order 4.12 - Wire Payment Process and Controls Audit
Activity
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PROFESSIONAL SERVICES TASK ORDER
TASK ORDER FY22-004.12
Consultant shall perform the Services detailed below in accordance with all the terms and conditions of the
Agreement referenced in Item 1A below. All exhibits referenced in Item 8 below are incorporated into this
Task Order by this reference. The Consultant shall furnish the necessary facilities, professional, technical
and supporting personnel required by this Task Order as described below.
CONTRACT NO.
OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE)
1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE):
1B. TASK O RDER NO.: FY22-004.12
2. CONSULTANT NAME: Baker Tilly US, LLP
3. PERIOD OF PERFORMANCE: START: January 10, 2022 COMPLETION: June 30, 2022
4 TOTAL TASK ORDER PRICE: $54,550
BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT: Remaining in Task 4 FY22:
5. BUDGET CODE_______________
COST CENTER________________
COST ELEMENT______________
WBS/CIP__________
PHASE__________
6. CITY PROJECT MANAGER’S NAME & DEPARTMENT:
Lydia Kou, Chair of the City Council’s Policy and Services Committee
7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A)
MUST INCLUDE:
SERVICES AND DELIVERABLES TO BE PROVIDED
SCHEDULE OF PERFORMANCE
MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable)
REIMBURSABLE EXPENSES, if any (with “not to exceed” amount)
8. ATTACHMENTS: A: Task Order Scope of Services B (if any): N/A
I hereby authorize the performance of the
work described in this Task Order.
APPROVED:
CITY OF PALO ALTO
BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________
I hereby acknowledge receipt and acceptance of
this Task Order and warrant that I have
authority to sign on behalf of Consultant.
APPROVED:
COMPANY NAME: ______________________
BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________
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Attachment A
DESCRIPTION OF SCOPE OF SERVICES
Introduction
Attachment A, the Description of Scope of Services, contains the following four (4) elements:
Services and Deliverables To Be Provided
Schedule of Performance
Maximum Compensation Amount and Rate Schedule (As Applicable)
Reimbursable Expenses, if any (With “Not To Exceed” Amount)
Services & Deliverables
Baker Tilly’s approach to conducting the Work Order Process Review involves three (3) primary
steps:
Step 1: Audit Planning
Step 2: Process and Control Review
Step 3: Reporting
Step 1 – Audit Planning
This step consists of the tasks performed to adequately plan the work necessary to address
the overall audit objective and to solidify mutual understanding of the audit scope,
objectives, audit process, and timing between stakeholders and auditors. Tasks include:
Gather information to understand the environment under review
o Understand the organizational structure and objectives
o Review the City code, regulations, and other standards and expectations
o Review prior audit results, as applicable
o Review additional documentation and conduct interviews as necessary
Assess the audit risk
Write an audit planning memo and audit program
o Refine audit objectives and scope
o Identify the audit procedures to be performed and the evidence to be obtained
and examined
Announce the initiation of the audit and conduct kick-off meeting with key
stakeholders
o Discuss audit objectives, scope, audit process, timing, resources, and
expectations
o Discuss documentation and interview requests for the audit
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Step 2 – Process and Control Review
This step involves executing the procedures in the audit program to gather information,
interview individuals, and analyze the data and information to obtain sufficient evidence to
address the audit objectives. The preliminary audit objective is to: (1) Determine whether
adequate controls are in place and working effectively to ensure that all disbursements are
valid and properly processed in compliance with City’s policies and procedures; (2)
Determine whether end user security awareness training is sufficient to prevent erroneous
payments caused by phishing. Procedures include:
Interview the appropriate individuals to understand the identified instance of wire
fraud
Interview the appropriate individuals to understand the process, the information
system used, and manual and automated controls related to the disbursement process
including vendor record creation and modification
Interview the appropriate individuals to understand the end user awareness training
Review policies and procedures as well as the regulations and standards to identify
the criteria to be used for evaluation of control design and effectiveness
Test disbursement transactions and new and modified vendor records as well as
related key internal controls on a sample basis
Compare the process and controls against the best practices
Step 3 – Reporting
In Step 3, the project team will perform tasks necessary to finalize audit working papers,
prepare and review a draft report with the stakeholders, and submit a final audit report. Tasks
include:
Develop findings, conclusions, and recommendations based on the supporting
evidence gathered
Validate findings with the appropriate individuals and discuss the root cause of the
identified findings
Complete supervisory review of working papers and a draft audit report
Distribute a draft audit report and conduct a closing meeting with key stakeholders
o Discuss the audit results, finings, conclusions, and recommendations
o Discuss management responses
Obtain written management responses and finalize a report
Review report with members of City Council and/or the appropriate Council
Committee
Present the final report to the City Council and/or appropriate Council Committee
Deliverables:
The following deliverables will be prepared as part of this engagement:
Audit Report
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Schedule of Performance
Anticipated Start Date: January 10, 2022
Anticipated End Date: June 30, 2022
Maximum Compensation Amount and Rate Schedule
The not-to-exceed maximum, inclusive of reimbursable expenses (as summarized below) for this
Task is $54,550. The not-to-exceed budget is based on an estimate of 240 total project hours.
Reimbursable Expenses
We plan to complete all work remote including all interviews and documentation review. If at
any point the City and Baker Tilly mutually determine it will be beneficial to perform a portion
of the work on-site, we will submit an estimate of our reimbursable expenses for the City’s
approval prior to traveling to Palo Alto.
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City of Palo Alto (ID # 13929)
Office of the City Clerk
City Council CAO Report
Meeting Date: 2/7/2022
Title: Adoption of a Resolution Authorizing Use of Teleconferencing for
Council Meetings During Covid-19 State of Emergency
From: Mahealani AhYun, Deputy City Clerk
Recommendation
Adopt a Resolution (Attachment A) authorizing the use of teleconferencing under Government
Code Section 54953(e) for meetings of the Council and its committees due to the Covid -19
declared state of emergency.
Background
In February and March 2020, the state and the County declared a state of emergency due to
the Covid-19 pandemic. Both emergency declarations remain in effect.
On September 16, 2021, the Governor signed AB 361, a bill that amends the Brown Act,
effective October 1, 2021, to allow local policy bodies to continue to meet by
teleconferencing during a state of emergency without complying with restrictions in State
law that would otherwise apply, provided that the policy bodies make certain findings at
least once every 30 days.
AB 361, codified at California Government Code Section 54953(e), empowers local
policy bodies to convene by teleconferencing technology during a proclaimed state of
emergency under the State Emergency Services Act in any of the following
circumstances:
(A) The legislative body holds a meeting during a proclaimed state of emergency,
and state or local officials have imposed or recommended measures to
promote social distancing.
(B) The legislative body holds a meeting during a proclaimed state of emergency
for the purpose of determining, by majority vote, whether as a result of the
emergency, meeting in person would present imminent risks to the health or
safety of attendees.
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Page 2
(C) The legislative body holds a meeting during a proclaimed state of emergency
and has determined, by majority vote, pursuant to subparagraph (B) (B), that,
as a result of the emergency, meeting in person would present imminent risks
to the health or safety of attendees. (Gov. Code § 54953(e)(1).)
In addition, Section 54953(e)(3) requires that policy bodies using teleconferencing reconsider
the state of emergency within 30 days of the first teleconferenced meeting after October 1,
2021, and at least every 30 days thereafter, and find that one of the following circumstances
exists:
1. The state of emergency continues to directly impact the ability of the
members to meet safely in person.
2. State or local officials continue to impose or recommend measures to
promote social distancing.
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Page 3
Discussion
At this time, the circumstances in Section 54953(e)( 1)(A) exist. The Santa Clara County Health
Officer continues to recommend measures to promote outdoor activity, physical distancing and
other social distancing measures, such as masking, in certain contexts. (See August 2, 2021
Order.) In addition, the California Department of Industrial Relations Division of Occupational
Safety and Health (Cal/OSHA) has promulgated Section 3205 of Title 8 of the California Code of
Regulations, which requires most employers in California, including in the City, to train and
instruct employees about measures that can decrease the spread of COVID -19, including
physical distancing and other social distancing measures.
Accordingly, Section 54953(e)(1)(A) authorizes the City to continue using tel econferencing for
public meetings of its policy bodies, provided that any and all members of the public who wish
to address the body or its committees have an opportunity to do so, and that the statutory and
constitutional rights of parties and the members of the public attending the meeting via
teleconferencing are protected.
To comply with public health directives and promote public safety, Palo Alto policy bodies
have been meeting via teleconference since March 2020. On September 27, 2021, Council
considered the format for future Council, committee, and Board and Commission meetings.
Council determined that beginning November 1, 2021, Council meetings would be
conducted using a hybrid format that allows Council Members and the public to decide
whether to attend in person, following masking and distancing protocols, or participate via
teleconference. Council directed that Council standing and ad-hoc committees and Boards
and Commissions would continue meeting via teleconference through January 2022.
Adoption of the Resolution at Attachment A will make the findings required by Section
54953(e)(3) to allow the continued use of teleconferencing for Council meetings (for those
Council Members who elect to participate remotely) and for Council standing and ad h oc
committees. Each Board and Commission will consider and make similar findings.
ATTACHMENTS:
• Attachment8.a: Attachment A: Resolution Allowing Hybrid In-Person and
Teleconferenced Meetings under Section 54953(e) (PDF)
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NOT YET APPROVED
Resolution No. ____
Resolution Making Findings to Allow Teleconferenced Meetings Under California Government
Code Section 54953(e)
R E C I T A L S
A. California Government Code Section 54953(e) empowers local policy bodies to convene
by teleconferencing technology during a proclaimed state of emergency under the State Emergency
Services Act so long as certain conditions are met; and
B. In March 2020, the Governor of the State of California proclaimed a state of emergency
in California in connection with the Coronavirus Disease 2019 (“COVID-19”) pandemic, and that state
of emergency remains in effect; and
C. In February 2020, the Santa Clara County Director of Emergency Services and the
Santa Clara County Health Officer declared a local emergency, which declarations were
subsequently ratified and extended by the Santa Clara County Board of Supervisors, and
those declarations also remain in effect; and
D. On September 16, 2021, the Governor signed AB 361, a bill that amends the Brown Act
to allow local policy bodies to continue to meet by teleconferencing during a state of emergency
without complying with restrictions in State law that would otherwise apply, provided that the
policy bodies make certain findings at least once every 30 days; and
E. While federal, State, and local health officials emphasize the critical importance of
vaccination and consistent mask-wearing to prevent the spread of COVID-19, the Santa Clara County
Health Officer has issued at least one order, on August 2, 2021 (available online at here), that continues
to recommend measures to promote outdoor activity, physical distancing and other social distancing
measures, such as masking, in certain contexts; and
F. The California Department of Industrial Relations Division of Occupational Safety and
Health (“Cal/OSHA”) has promulgated Section 3205 of Title 8 of the California Code of Regulations,
which requires most employers in California, including in the City, to train and instruct employees
about measures that can decrease the spread of COVID-19, including physical distancing and other
social distancing measures; and
G. The Palo Alto City Council has met remotely during the COVID-19 pandemic and can
continue to do so in a manner that allows public participation and transparency while minimizing
health risks to members, staff, and the public that would be present with in-person meetings while
this emergency continues; now, therefore,
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NOT YET APPROVED
The Council of the City of Palo Alto RESOLVES as follows:
1. As described above, the State of California remains in a state of emergency due to the
COVID-19 pandemic. At this meeting, the Palo Alto City Council has considered the
circumstances of the state of emergency.
2. As described above, State and County officials continue to recommend measures
to promote physical distancing and other social distancing measures, in some
settings.
AND BE IT FURTHER RESOLVED, That for at least the next 30 days, meetings of the Palo Alto City
Council and its committees will occur in a hybrid format, where both members of the policy body
and members of the public may elect to be present in person, utilizing appropriate distancing and
masking practices, or participate by teleconferencing technology. Such meetings of the Palo Alto City
Council and its committees that occur using teleconferencing technology will provide an opportunity
for any and all members of the public who wish to address the body its committees and will
otherwise occur in a manner that protects the statutory and constitutional rights of parties and the
members of the public attending the meeting via teleconferencing; and, be it
FURTHER RESOLVED, That the City Clerk is directed to place a resolution substantially similar to this
resolution on the agenda of a future meeting of the Palo Alto City Council within the next 30 days. If
the Palo Alto City Council does not meet within the next 30 days, the City Clerk is directed to place a
such resolution on the agenda of the immediately following meeting of Palo Alto City Council.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
City Attorney City Manager
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City of Palo Alto (ID # 13904)
City Council Staff Report
Meeting Date: 2/7/2022
City of Palo Alto Page 1
Title: Policy and Services Committee Recommendation that City Council
Approve the 2022 Legislative Guidelines; Utilities Advisory Commission
Recommendation that City Council Approve the 2022 Utilities Legislative
Guidelines
From: City Manager
Lead Departme nt: City Manager
Recommendation
Policy & Services Committee and staff recommend that the City Council:
1. Approve the City’s 2022 Legislative Guidelines as recommended by the Policy and
Services Committee on December 14, 2021, and
2. Approve the 2022 Utilities Legislative Policy Guidelines as recommended by the Utilities
Advisory Committee on November 3, 2021.
Background
On December 14, 2021, the Policy and Services Committee received a presentation from staff
and the City’s State and Federal legislative advocates regarding previous and upcoming
potential legislation and programs. Additionally, the Policy and Services Committee discussed
the draft Citywide Federal and State Legislative Guidelines. The guidelines, as recommended
with an amendment by the Committee are included in Attachment A. The redlined version to
show the differences between the 2022 and 2021 guidelines can be found within the staff
report that went to Policy and Services Committee (CMR 13850). The recommended guidelines
closely mirror previous guidelines and include recent referrals to the Policy and Services
Committee including police reform and transparency. The Guidelines work in conjunction with
the City Council-approved Advocacy Process Manual and the City Council action to do “Strategic
Weighing in on Issues of Interest” (June 22, 2021 CMR 12344; Minutes). The Policy and Services
Committee recommended City Council approve these Legislative Guidelines with a 3-0 vote.
On November 3, 2021, the Utilities Advisory Commission (UAC) discussed and recommended
City Council approve the 2022 Utilities Legislative Guidelines, found in Attachment B.
Discussion
The City has a long-standing legislative program to ensure that potentially impactful State and
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City of Palo Alto Page 2
Federal legislation is identified and analyzed by staff, that (as needed) the City takes advocacy
positions, and that the City’s advocacy positions are made known to legislators and the public,
as appropriate. The legislative program is guided by the Advocacy Process Manual. In addition
to this manual, the City maintains a City Council-approved set of Legislative Guidelines for the
City as a whole and for the Utilities Department, as noted below. These guidelines are reviewed
and approved annually.
Legislative Guidelines
The Legislative Guidelines (Attachment A) enhance and add context to the City Council’s
overarching priorities and guide staff and the City’s legislative advocates on issues that arise
during the legislative session. The guidelines are reviewed and possibly updated each year to
address new and evolving issues relevant to Palo Alto. The guidelines are not rank-ordered and
are intentionally reasonably broad, rather than specifically narrow or tailored, to allow for a
flexible and quick response. The guidelines are not specific direction on any given piece of
legislation. Instead, they act as a means by which staff and the City’s advocates can respond to
State and Federal government action without returning to the City Council each time a bill is
introduced or amended.
Utilities Department’s Legislative Guidelines
The Utilities Department is possibly the City’s most regulated department, with over 50 new
state bills potentially impacting its operations introduced each legislative session. The scope
and breadth of state regulatory and legislative action span most utility lines and usually include
water quality, rates, wildfire mitigation, greenhouse gas reduction policies, reporting changes,
infrastructure-related mandates, and more. This is in addition to federal agencies involved in
regulating or overseeing some of our utility lines.
The unique focus on the Utilities Department from the federal and state governments gives rise
to a set of legislative guidelines specific to the Utilities Department and approved by the
Utilities Advisory Commission (UAC). These guidelines work in parallel with the City’s own
legislative guidelines and the City’s Advocacy Process Manual, the latter of which specifically
notes the distinction of the Utilities Department on page 4.
As per the usual process, on November 3, 2021, the UAC discussed and recommended the City
Council approve the 2022 Utilities Legislative Guidelines, found in Attachment B. Part of the
UAC discussion centered on the fact that the Utilities’ guidelines provide direction while
allowing for staff discretion and that staff has worked well within the guidelines in the past.
Importantly, the 2022 guidelines remain unchanged from the 2021 and 2020 guidelines, which
Council approved on February 8, 2021 and January 13, 2020, respectively. While intentionally
crafted to remain evergreen, Utilities staff anticipates taking a thorough review o f the
guidelines this year, to consider any changing policy landscape, any different resource needs,
and any change in the needs of the City and the Utilities Department.
Timeline, Resource Impact, Policy Implications (If Applicable)
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City of Palo Alto Page 3
There is no direct resource impact associated with approving the City’s Legislative guidelines
and the Utilities legislative guidelines. However, actions taken that support the efficient use of
the City’s assets and resources will help control costs, implement the City Council’s policies and
goals, and protect the interests of the community.
Stakeholder Engagement
The City’s and the Utilities Department’s Legislative Guidelines were informed through an
internal and external stakeholder process involving gaining information from City Council
referrals, internal departments, State and Federal advocates, various trade associations, and
the Northern California Power Agency joint action agency. Additionally, both sets of draft
guidelines were reviewed and discussed at noticed, public hearings.
Environmental Review
This report is not a project for the purposes of the California Environmental Quality Act; an
environmental review is not required.
Attachments:
• Attachment9.a: Attachment A: Proposed Final 2022 Citywide Legislative
Guidelines
• Attachment9.b: Attachment B: 2022 Utilities legislative guidelines
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Attachment A: Draft – January 2022
The City of Palo Alto’s 2022 Federal and State Legislative Guidelines
Page 1 of 3
These Guidelines reflect and activate the City Council’s priorities; they do not supplant them.
They work to guide staff and the City’s legislative advocates on issues that are important to the
City Council, and fairly likely to become a legislative issue. These Guidelines are not rank-
ordered and are meant to allow for a flexible and quick response by staff and advocates,
without the need to return to the City Council to seek guidance. The Guidelines work in
conjunction with the City Council-approved Advocacy Process Manual and the City Council
action to do “Strategic Weighing in on Issues of Interest” (June 22, 2021 CMR 12344; Minutes).
The below Foundational Principles represent the ideals that form the core of the City’s policy
agenda. The legislative guidelines all rise from and strengthen four foundational principles:
1. Protect local revenue sources and prevent unfunded mandates.
2. Protect, seek, and increase funding for programs, projects, and services; pursue grants.
3. Protect and increase local government discretion. Oppose items that preempt or reduce the
authority or ability of local government to determine how to effectively operate local programs,
services, activities, and governance.
4. Protect the health and safety of the community.
The Legislative Guidelines create the framework for organizing the City’s policy interests, while
guiding staff and contracted lobbyists in their advocacy efforts on behalf of the City. The items
below provide direction for the City’s efforts when addressing reasonable government actions.
Transportation
The City supports government action that:
• Deters single occupancy drivers and alleviates local traffic congestion
• Supports local and regional public transportation
• Regulates technology that diverts traffic into residential neighborhoods
• Provides funding for rail grade separations, rail efficiency improvements, and other means
of reducing the local impacts of regional transportation systems
Environmental
The City supports government action that:
• Reduces GHG emissions
• Reduces airplane noise, health impacts, and/or airplane emissions
• Promotes residential and vehicle electrification programs
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The City of Palo Alto’s 2021 Federal and State Legislative Guidelines
Page 2 of 3
• Promotes the use of renewable resources, water conservation, and the flexible use of
existing resources
• Supports a statewide ban on polystyrene containers and packaging materials
• Provides opportunities for staff to work with the San Francisquito Creek Joint Powers
Authority and other regional stakeholders in efforts to improve the creek’s watershed and
floodplain
• Supports efforts to protect local communities from sea level rise and other impacts of
climate change
• Supports proper disposal of recyclables once removed from Palo Alto
Financial
The City supports government action that:
• Supports the long-term stability of CalPERS and the ability of local governments to mitigate
and manage with flexibility its pension obligations
• Protects the funding sources and levels of City services
• Provides for COVID-19 related expenses and revenue losses
• Supports the continued deductibility of tax-exempt municipal bonds and the restoration of
Advance Refunding of Tax-Exempt Municipal Bonds
Public Employment
The City supports government action that:
• Preserves local government’s ability to manage its own employment issues, including, but not
limited to hiring, evaluating, disciplining, and/or terminating and negotiating collective
bargaining agreements with employees’ representatives
Technology
The City supports government action that:
• Supports reasonable regulatory efforts surrounding policies regarding cybersecurity,
drones, shared mobility services, returning to Obama-era net neutrality regulations, and
smart city initiatives
Housing
The City supports government action that:
• Supports reasonable housing policies that recognize local autonomy to maintain the local
public process and preserve local government’s ability to determine land use policies and
development standards
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• Provides funding for (a) affordable housing, (b) homelessness, and (c) infrastructure
(such as parks, utilities, roads, and transit) required to support the increased housing
production
• Fosters reasonable ratios between jobs and housing
• Supports the development and implementation of efficient and environmentally sustainable
land use and building practices
Police
The City supports government action that:
• Supports efforts which seek to modify policing services, including but not limited to
alternative public safety models and funding to address community mental health issues,
expansion of requirements regarding police data and rules regarding prior employment
information transparency, and expansion of data and communications including radio
encryption.
Other
The City supports government action that:
• Updates, implements, and refines processes, services, and programs affecting the City. This
includes, but is not limited to, public safety reform efforts and streamlining reporting
mandates
• Protects individual privacy and allows the City to safeguard customer information
• Provides for the equal treatment of all individuals
• Allows the City to support the collaborative work of regional partners, trade associations,
other local governments and organizations, and Joint Powers Authorities
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Attachment B
Utilities Legislative Policy Guidelines: 2022 Update
City of Palo Alto Utilities Department (CPAU) staff will use the below guidelines as well as
the City’s guidelines to help determine any advocacy position or action on Utilities-related
issues. Formal advocacy, such as submitting written letters or comments and meeting with
policymakers and/or staff, requires the approval of the Utilities Director or his designee.
1. Seek to preserve local government flexibility, discretion, accountability, and oversight of
matters impacting utility programs, services, activities, and rates. Oppose action that could
hamper or minimize this flexibility or discretion.
2. Where possible, seek funding and program incentives.
3. Advocate for reasonable government action with minimal customer impact that allows for
flexibility and implementation feasibility.
4. Advocate for locally-designed conservation or efficiency programs. Support reasonable State
conservation or efficiency requirements that consider local populations, environment, and
resources.
5. Inform state and federal policymakers about CPAU’s current programs, services, goals, and
reporting requirements.
6. Oppose unnecessary, unreasonable, impractical, or costly rates or mandates.
7. Collaborate with and support the efforts of regional agencies and associations whose goals
align with ours.
8. Advocate for fair cost allocation and support the principle of beneficiary pays.
9. Support efforts to maintain or improve the security and reliability of our infrastructure.
10. Support government action that cost effectively reduces greenhouse gas emissions.
11. Promote locally-designed residential and commercial electrification programs.
12. Support government action allowing CPAU to maintain customer confidentiality.
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City of Palo Alto (ID # 13801)
City Council Staff Report
Meeting Date: 2/7/2022
City of Palo Alto Page 1
Title: Discuss the FY 2022 Mid -Year Budget Review and Approve the
Following: 1) FY 2022 Budget Amendments in Various Funds, and 2)
Amendments to the FY 2022 Table of Organization to Add 11.00 FTE Positions
From: City Manager
Lead Department: Administrative Services
Recommendation
Staff recommends that the City Council review, discuss, and act on the following items for
consideration:
1) Amend the Fiscal Year 2022 Budget Appropriation for various funds and various capital
projects, as identified in Attachment A and Attachment A, Exhibit 1 (requires a
supermajority, 2/3 approval); and
2) Amend the FY 2022 Table of Organization in Attachment B consistent with the budget
amendments in Attachment A.
Executive Summary
This report continues the City Council’s discussions on the City’s financial situation and fiscal
outlook. While the information contained in this report share some short-term positive news,
the City’s long-term financial sustainability continues to be an important focus and priority. As
outlined in the FY 2023-FY 2032 Long-Range Financial Forecast, the City remains unable to
restore services to pre-pandemic levels. However, the recommendations contained in this
report recognize the unsustainable resource levels and makes strategic investments in key
areas as well as City Council priorities.
The City’s fiscal sustainability strategy continues to be addressed through a series of Council
considerations and actions both contained within the City’s budget process, including the Mid-
Year budget recommendations set forth in this report, and through the City’s Community and
Economic Recovery plan progress and adoption of the recent Long-Range Financial Forecast.
It should be noted that several actions have come before the Council and more are planned
over the next five months. These series of conversations together work towards the important
work of addressing the City’s long-term structural budget realities.
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• Ongoing: Progress continues on the City’s Community and Economic Recovery Plan
• September 2021: Community and Economic Recovery plan Economic Development
actions approved
• October 2021: Q1 Preliminary Financial update approved
• December 2021: Q1 Financial Status approved and review of the City’s Long-Range
Financial Forecast
• January 2022: Potential local tax ballot measure actions adopted
• January 2022: Approved City’s Long-Range Financial Forecast
• February 2022: Consideration of Mid-Year Budget recommendations
• February/March 2022: 2nd Polling on potential local tax ballot measure
• March/April 2022: Local tax ballot measure update following focus group outreach
• April/Early May 2022: Release of the Proposed FY 2022-23 Budget
• May 2022: 3rd Polling on potential local tax ballot measure
• May/June 2022: FY 2022-23 Budget hearings and community outreach and engagement
• June 2022: FY 2022-23 Budget Adoption
• June 2022: Potential local tax ballot measure actions
• June 2022: Economic Development contract approval
These general steps outlined above further the City Council’s progress to address the City’s
long-term financial sustainability to maintain and enhance a high quality of City services.
Each year staff bring forward recommendations to adjust the budget as part of the Mid-Year
Budget review. . In light of the cautiously optimistic economic outlook previously discussed
with the City Council as part of the Preliminary Q1 Financial Status Report (CMR 13439), staff
have modified this FY 2022 Mid-Year Budget Review to be a more robust and significant action
for review as directed by the City Council. Significant adjustments are recommended to realign
the FY 2022 budget with current projections and proactively fund reinvestment activities in FY
2022 and beyond to address the most immediate needs of the City and its residents. The
budget appropriation actions require a supermajority approval by the City Council (PAMC
2.28.080(c)(1)).
Staff continues to actively report the status of the City’s finances considering the ongoing
uncertainties from the pandemic and related economic challenges. The City has adapted
operations to best support and serve the community, however, these changes impact both the
cost of delivering City services and the revenues that pay for them (both taxes and fees). Staff
continues to manage resource availability and demands for extreme flexibility and nimbleness
in an environment that requires increased resources to deliver the same quantity of service in
modified ways to ensure the safety of the community and employees.
Although the economic outlook is more positive than it was a year or even six months ago, this
report is being written as the Omicron variant of the COVID-19 virus is again increasing the
number of cases around the world. Currently, this wave has not resulted in restricting daily
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activities to levels seen at this time last year; however, it is important to reiterate that there
remain several risks and uncertainties, including:
• The pace of consumer confidence in the economic recovery, and its stability and safety;
• The length and pace of the recovery period; this will significantly impact the City’s most
sensitive tax bases;
• The structural changes as a result of the societal adaptations due to COVID-19, including
impacts to daytime population, whether it be workers, students/faculty/staff at
Stanford University, or changes to the City’s resident population.
The City continues to adjust to the economic impacts of the pandemic while being mindful of
the opportunity to reinvest in the most immediate needs of the City as a result of the more
positive economic indicators discussed in the FY 2023-2032 Long Range Financial Forecast
(LRFF) (CMR 13800). Included in this report are updates on the status of major tax revenue
estimates in the FY 2022 operating budget, and appropriate funding for immediate needs to be
addressed in FY 2022, rather than waiting for the FY 2023 budget process.
This report contains: (a) several technical adjustments that are recommended to realign the
FY 2022 budget with current projections, (b) reinvestment of funds for programs impacted by
the COVID-19 pandemic, and (c) a preliminary 2nd Quarter Financial status. This report is
organized as follows:
• FY 2022 Mid-Year Budget Adjustments in the General Fund
o Technical Adjustments
o Reinvestment Actions
o Adjustments to the Table of Organization
• Preliminary Q2 Financial Status:
o General Fund
o Other Funds
o Capital Funds
• Timeline and Next Steps
In these sections, adjustments to realign the FY 2022 Budget are recommended to work to
strategically adjust revenues which are tracking higher than the conservatively positioned
adopted levels and reinvest expenses for activities and services impacted as part of the FY 2022
budget process. The balancing strategy works to continue the practice of funding ongoing
activities with ongoing revenue sources to preserve reserves to the extent possible, however, it
should be acknowledged that there is some use of reserve funding in excess of target levels in
alignment with the Council balancing strategy for the FY 2022 Adopted Budget . Staff will
continue to monitor these estimates and may bring forward a year-end budget adjustment
report in June with any additional refinements to budgeted levels based on the most current
information available.
Background
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As discussed in the FY 2023-2032 Long Range Financial Forecast (LRFF) (CMR 13800), the FY
2022 Mid-Year Report brings forward items that are more than just ministerial in order to
address Council direction to begin reinvestment in the City as a result of the cautiously
optimistic economic outlook. However, this practice is not expected to be ongoing, rather an
adjustment to accommodate the uncertainty the organization continues to face.
This report focuses on recommended changes to the FY 2022 Operating and Capital Budgets.
Where possible, budget change recommendations are brought forward for City Council
consideration as part of the approval of the Mid-Year Budget Report to consolidate requests
and streamline changes to budget appropriations. These adjustments are necessary as
revenues and expenditures vary from the original budget plan for many reasons, including, but
not limited to, changes in economic factors, project estimates and scope, and City Council
policy and direction. The Mid-Year Budget Report reflects adjustments for prior City Council
approved direction, clean-up actions based on FY 2021 actual experience or current FY 2022
actual activities.
The FY 2022 budget extended reductions taken in FY 2021 to address the loss of approximately
$40 million in General Fund tax revenues resulting from the COVID-19 pandemic (CMR 11315).
To align expenditures with continued lower revenue in FY 2022, staff and resource reductions
were unavoidable. As a result, nearly $20 million in service and staffing reductions were
included in the FY 2022 budget on an ongoing basis. Although these reductions were needed,
the City continued to focus on services with the greatest community impact, maintaining core
City services, and managing vulnerabilities and risks associated with a shrinking organization.
The FY 2022 Adopted budget balancing strategy also used one-time Federal funding and one-
time use of the General Fund Budget Stabilization Reserve to mitigate further and more steep
service reductions. The continued reduction of $20 million in services reflects an approximate
10% decline from the General Fund pre-pandemic level.
As part of the Preliminary Q1 FY 2022 Financial Status Report (CMR 13439), staff was optimistic
that revenues would meet or exceed FY 2022 Adopted Budget levels and recommended several
adjustments to begin to realign resources with the priorities identified by the City Council after
the FY 2022 Adopted Budget. These adjustments were funded by reserves that were
established as part of the Adopted Budget to anticipate unbudgeted needs. Below is a summary
of the position changes and funding adjustments approved by the Council.
Positions
• 2.00 FTE Assistant to the City Manager positions to add resources for City Council
priorities such as housing support initiatives and economic development.
• 1.00 FTE Administrative Associate III position to restore front desk reception staffing at
the Development Center, in alignment with increased activity levels.
• 1.00 FTE Public Safety Communications Officer position to restore management
resources for dispatch staff and operations.
Budget Adjustments
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• Funding for Council priorities: Ballot Measure Consultant Contracts and Legal Counsel
($250,000), Economic Development Coordination and Management ($150,000), Support
for Unhoused Services and Emergency Shelter Operations ($550,000).
• Support for administration due to changes in service levels and adaptation to COVID-19
recovery: Geographic Information System (GIS) Software Support ($125,000), additional
City Hall Lobby Support ($100,000), Development Center Front Desk Staffing ($65,000),
and Public Safety Communications Management ($120,000).
• Proactive funding of the Reserve: Utilities Transfer Litigation (Equity Transfer) ($4.0
million).
Additionally, forecasts for FY 2023 and beyond have been discussed with the City Council to
assist in providing a longer outlook beyond June 30, 2022, and to begin work on planning for FY
2023 and the continued contraction of available resources. Prior staff reports providing various
fiscal updates for Council deliberations are below. However, this does not include informational
items that have been distributed for quarterly reporting, such as investments.
• September 21, 2021, Finance Committee (CMR 13440): Accept CalPERS Pension Annual
Valuation as of June 30, 2020
• October 25, 2021, City Council (CMR 13439): Preliminary Q1 Fiscal Year (FY) 2022 Financial
Status and Amendments in Various Funds and the Table of Organization to add 4.00 FTE
Positions
• November 2, 2021, Finance Committee (CMR 13499): Receive and Discuss Report on Public
Safety Long Term Financial Trends
• November 30, 2021, Finance Committee (CMR 13501): Recommendation to the City Council
to Approve the Fiscal Year (FY) 2021 Annual Comprehensive Financial Report (ACFR) and FY
2021 Budget Amendments in Various Funds
• December 7, 2021, Finance Committee (CMR 13502): Review and Recommend that the City
Council Accept the FY 2023 – FY 2032 Long Range Financial Forecast (LRFF) and FY 2023
Budget Development Guidelines
• December 7, 2021, Finance Committee (CMR 12394): First Quarter Financial Report FY 2022
• January 10, 2021, City Council (CMR 13800): Review and Accept the FY 2023 – FY 2032 Long
Range Financial Forecast (LRFF) and FY 2023 Budget Development Guidelines
• January 24, 2021, City Council (CMR 13876): Approval of the FY 2021 Annual Comprehensive
Financial Report (ACFR); and Amendment of the FY 2021 Budget in Various Funds
As discussed with the City Council on January 10 in reviewing potential financial scenarios, data
is gathered and reviewed throughout the fiscal year.
Discussion
This item serves as a continuation of the many touch points as the City balances responding to
emergent priorities with following through on established commitments. This report highlights
several areas of staff work ahead and outlines next steps and timing for a series of City Council
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conversations planned to focus on fiscal monitoring, community and economic recovery, and
more. Further strategic work continues aside from the financial reporting discussed above,
focused on a Community and Economic Recovery Strategy as well as actively working on a
potential tax ballot measure for the November 2022 General Election with the Council and
Finance Committee. Findings and recommended adjustments in this report are based on the
data available at the time of reporting and reflect preliminary 2nd Quarter financial activity in FY
2022. Final Q2 data will not be available until the end of March 2022.
FY 2022 Mid-Year Budget Adjustments
The following is an overview of the status for the General Fund, Enterprise Funds, and other
funds including recommended budget adjustments as they pertain to the City’s FY 2022
Operating and Capital Budgets.
Overview of Mid-Year Balancing Strategy
The General Fund ended FY 2021 with funding in excess of the 18.5% Budget Stabilization
Reserve (BSR) for FY 2022. The BSR is currently at $43.3 million or $4.6 million above the 18.5%
Council recommended target. Use of this excess BSR funding is recommended to fund actions in
this memorandum. In addition to this funding, a few of the major tax revenue categories are
tracking at or above the FY 2022 budget, most significantly Property Tax. An adjustment to
Property Tax revenue is recommended to align the budget with current projections for this
category, and staff will continue to monitor other more volatile revenue sources. The following
table outlines the major drivers of the General Fund mid-year recommended balancing strategy
to offset the collective impact of these activities:
Table 1: General Fund Mid-Year Adjustments and Balancing Solutions
Summary of General Fund Adjustments
Net $ Impact
(Cost)/Benefit
Reinvestment Actions:
Neighborhood, Community and Library Services $(0.1) M
Public Safety $(1.2) M
Planning and Transportation Services $(0.2) M
Infrastructure and Environment
(Sustainability and Climate Action Plan (S/CAP) costs in Enterprise Funds)
-
Internal Services/Strategic Support $(0.3) M
Subtotal Reinvestment Actions: $(1.8) M
Technical Adjustments:
Major Tax Revenues
(Property Tax)
$2.0 M
Department Revenues
(Foothills Preserve Entry Fees, County Task Force, Other Grants/Donations)
$(0.2) M
Golf Course Revenues and Contract Services Alignment $(0.1) M
Supplemental Pension 115 Trust Contribution $(2.0) M
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(Approximately 50% of the excess FY 21 Budget Stabilization Reserve)
Utility Equity Transfer $(0.3) M
Public Safety Employee Appreciation Leave $(0.4) M
Consultancy Services
(Project Homekey, OPEB valuation, inspections and application processing)
$(0.5) M
Code Enforcement Litigation – Edgewood Plaza $(0.4) M
Gas Commodity Purchase/Utility Allocated Charges $(0.1) M
Subtotal Technical Adjustments $(2.0) M
Total Net Impact General Fund Mid-Year Adjustments $(3.8) M
Recommended Use of Reserves
Development Services Reserve $(0.2) M
Use of Budget Stabilization Reserve (BSR)
(BSR remains at 19.0% and $1.0 M above the 18.5% target level)
$(3.6) M
Recommended Use of Reserves $(3.8) M
Reinvestment Actions, Recommended Adjustments to the Budget and Table of Organization
This report includes budget adjustments, grouped by service area, to continue to realign
resources with the priorities identified by the City Council after the FY 2022 Adopted Budget.
Major changes are recommended as directed by the City Council and/or recommended by staff
are below, and all transactions can be found in greater detail in Attachment A. It should be
noted that recommended budget adjustments have been prorated for the remainder of the
fiscal year, or approximately five (5) months.
Neighborhood, Community and Library Services: $46,000 est. revenue $208,000 expense
0.25 full-time; 0.48 part-time staffing
The Community Services Department has resumed most programming and operations as public
health restrictions continue to ease. Community demand for classes has returned with the
desire and willingness for in-person participation, though some programs and classes continue
to be offered in both virtual and in-person formats. At this time, several programs and classes
are experiencing high demand and sell out or result in waitlists. Therefore, this report includes
staffing and other reinvestments to facilitate additional classes and programs to meet higher
demands in areas such as child and youth-oriented ceramics, and children’s spring and summer
camps. Libraries are expected to continue to operate at reduced hours while the department
completes a community needs assessment and grapples with impacts of COVID-19 on staffing
and consequently facility availability with a focus on safety. This assessment will focus on
staffing and operating strategies and will inform the development of a new service-model that
best meets the needs of the community. Additional resources are expected to be
contemplated as part of the FY 2023 Proposed Budget regarding library hours. Additional
actions are included in this report to restore funding for Library collections, and parks
maintenance and landscaping to pre-pandemic levels.
Public Safety Services $0 est. revenue $1.2 M expense
1.00 full-time; 0.00 part-time staffing
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The elimination of the Deputy Director and Communications (Dispatch) Manager positions in FY
2022 has created significant operational disruptions throughout the Police Department. Actions
were taken in the first quarter (Q1) FY 2022 report to restore the Communications Manager to
provide direct management of dispatchers. This report includes actions to restore the Deputy
Director of Technical Services to oversee Communications, Records, and Technical Support
units. This position will play a critical role in the configuration and moving of all
communications, telecommunications, radio, and other equipment to the new Public Safety
Building project.
Additionally, this report includes recommendations in the Fire Department to purchase a
temporary training facility, pilot a paramedic training certification program, and provides
funding for promotional opportunities for sworn employees. Recruitment and retention are top
priorities in the immediate term for the Fire Department as well as continuing to review and
tighten operations for Fire Inspection services. To support these activities, incremental
investments are recommended in this Mid-Year Report including funding for hiring of new
firefighters (additional information below), a temporary training facility, and support for
promotional processes. These investments are all focused on ensuring the Department can
continue to provide suppression and rescue services for the City while meeting necessary
staffing levels and training requirements. The department is currently reviewing its
management structure among suppression, prevention, and support roles and expects to have
recommendations as part of the FY 2023 Proposed Operating Budget to realign and stabilize the
executive management structure.
Planning and Transportation Services: $0 est. revenue $159,000 expense
1.00 full-time; 0.00 part-time staffing
This report includes City Council action at the October 25, 2021 meeting to add a Code
Enforcement Officer position to investigate inquires, requests, and complaints, including leaf
blower concerns by the community. With this addition if approved, the Code Enforcement
Team will be comprised of one (1) Code Enforcement Officer and one (1) Code Enforcement
Lead. This report also includes recommendations to increase capacity of the Building and Fire
Inspection Programs and Planning application processing, resolves outstanding code
enforcement litigation in light of recent court decisions, and recognizes grant funding in support
of the Housing Element update.
For the Office of Transportation, this report recommends adjustments in Safe Routes to School
contract funding for the conversion of a longtail cargo bike into a mobility information kiosk, to
provide information and materials on upcoming active transportation infrastructure projects
and Safe Routes to School education, and to engage in mobility-related conversations with
members of the public who might not otherwise attend community meetings. Additional
funding is included for the reclassification of a 1.00 FTE Traffic Engineering Lead to a 1.00 FTE
Senior Engineer for the management of complex engineering design and construction projects
related to roadways, as the duties of the position now require professional certification as an
engineer. Information on the Parking Funds can be found in the Special Revenue Fund section
of this report.
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Infrastructure and Environment: General Fund All Funds
$0 est.
revenue
$42,000
expense
$0 est.
revenue
$425,000
expense
-0.09 Full-time Staffing 5.25 Full-time Staffing
Resources for contractual work to clear brush and vegetation along the road in order to
mitigate fire danger in the foothills area. Although a number of adjustments for S/CAP work are
happening in the Enterprise Funds, a complete list of recommendations is included here to
summarize them all in one place.
Sustainability and Climate Action Plan (S/CAP):
The City’s Sustainability and Climate Action Plan (S/CAP) includes a goal to achieve an 80%
reduction in carbon emissions from 1990 levels by 2030. Accomplishing this requires behavioral
modifications for the community to move away from natural gas towards electric, adopt biking
and public transit over individual vehicles, and increasing use of electric vehicles over vehicles
with emissions. Various departments (Office of Sustainability, Public Works, Utilities, Office of
Transportation) are tasked with achieving these goals and several will have their operations
impacted by these changes (Utilities, Planning and Development Services, Fire, Public Works).
While discussions about the S/CAP work plan and implementation approach are still underway,
these FY 2022 Mid-Year requests represent some of the highest impact resource requests
related to S/CAP communications, beginning to address the impact of electric system
infrastructure upgrades, and beginning to address non-residential building electrification. More
detailed information about specific changes in each fund can be found in Attachment A.
• The Office of Sustainability in the Public Works Department requires additional staffing
(net 1.25 FTE) to manage S/CAP plan development, community engagement, leadership of
the inter-departmental Sustainability Leadership Team, and sustainability partnerships
with other agencies, nonprofits, and inter-agency working groups. The higher level of
attention to the S/CAP and the ambitious goals have required an expanded level of effort,
including but not limited to a greater number of partners, more engagement, and
extremely ambitious goals that require increased management attention. Staffing
adjustments include reclassifying a 0.75 FTE Management Analyst position to a 1.00 FTE
Manager Environmental Control Program and adds a 1.00 FTE Environmental Specialist
position. This work will be supported by the General Fund and various Enterprise Funds.
• The Utilities Department recommends additional staffing (net 4.00 FTE) to assess and
upgrade the electric distribution infrastructure and develop electrification programs for
residential and non-residential customers, including developing custom partnerships to
address major employer building electrification and commuter emissions. Staffing
adjustments consist of 1.00 FTE Electric Project Coordinator and 3.00 FTE Electric Project
Engineers for increasing workload capacity in the Electric engineering and operations
project management work functions; 1.00 FTE Utilities Programs Services Manager to
focus on commercial energy efficiency and electrification; and 1.00 FTE Senior Engineer
for technical oversight and scaling up the electrification program. These position additions
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are offset by the elimination of 1.00 FTE Metering Technician and 1.00 FTE Power
Engineer. This work will be supported by the Electric Funds.
Internal Services/Strategic Support: $250,000 est. revenue $545,000 expense
1.00 full-time; 0.96 part-time staffing
The Human Resources Department continues to provide support for COVID-19 activities and
devoting resources to the prioritization and recruitment of essential positions. The City
Attorney’s Office is pursuing additional staffing capacity and employee development by
recommending reclassification of 2.00 FTE Deputy City Attorney positions into 2.00 FTE
Assistant City Attorney positions. This will allow junior level attorneys the opportunity to work
on higher level projects and continue to grow with the City as their years and knowledge
increase.
The Information Technology department recommendations can be found in the Internal Service
Funds section of this document. As an internal service fund, costs for the Technology Fund are
allocated across the City and the General Fund is responsible for $432,000 of the costs.
Development Services related Technology expenses account for $250,000 of these costs and
are offset by increased development revenue.
Position/Table of Organization Changes:
Critical staffing challenges remain citywide. This report includes recommendations to add 11.00
full-time and 0.96 part-time positions. This is in addition to the 9.00 FTE added in prior Council
actions subsequent to the FY 2022 budget adoption in CMR 13439 (4.00 FTE) and CMR 13643
(5.00 FTE). The cumulative impact of current year staffing additions previously directed by
Council and the recommendations in this report increase full-time staffing levels in the General
Fund Table of Organization from the FY 2022 adopted level of 506.80 FTE to 519.46 FTE (956.00
FTE to 976.00 FTE Citywide). A restated Table of Organization with all full-time position actions
taken after the FY 2022 Adopted Budget can be found in Attachment B.
Technical Adjustments and Previous Council Direction
This report includes actions that are technical in nature and are needed to align budget with
current trends, and previous direction approved by the Council. Major changes are
recommended as directed by the City Council and/or recommended by staff are below, and all
transactions can be found in greater detail in Attachment A.
Department Revenue and Major Tax Revenue: $1.8 M est. revenue $66,000 expense
Staff evaluated departmental and major tax revenue through Q2 and recommends a number of
actions that result in a net $1.8 million increase. As noted in the Q1 Financial Report, Property
Tax revenue is trending higher than budgeted in FY 2022, and a $2.0 million increase is
recommended. Other adjustments in this area include reductions to Foothills Park entrance
fees due to connectivity issues with an onsite payment kiosk, reduction of revenue from Santa
Clara County for decreased participation in the Regional Auto Theft Task Force, and recognition
and appropriation of funds for various grants and donations.
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Golf Course Services: $258,000 est. revenue $362,000 expense
Contract expenditures increased to reflect amounts owed to the management company
including (a) $83,000 for a 3 percent allowable annual increase in service costs; and (b)
$280,000 for 20 percent of the calculated FY 2021 difference between Gross Revenue and
Target Revenue. These expenditures are partially offset by a revenue increase based on current
projections for FY 2022 Golf Course operations.
Supplemental Pension Trust Contribution: $0 est. revenue $2.0 M expense
Increase the contribution to the Section 115 Pension Trust fund by $2.0 million to bring the
total principal contributions to $39.3 million ($26.1 million from the General Fund). Staff will
work to true up proportional contributions from other funds as part of the FY 2022 year-end
process. This reflects approximately 50% of the excess BSR from FY 2021, and is in alignment
with strategies outlined in the Council Approved Pension Funding Policy.
Utility Equity Transfer: ($349,000) est. revenue $0 expense
This action reduces the equity transfer to the General Fund from the Electric ($160,000) and
Gas ($189,000) Funds in FY 2022 as a result of lower than anticipated fixed assets in FY 2021.
This action is in alignment with the FY 2021 Annual Comprehensive Financial Report (ACFR) as
of June 30, 2021 (CMR 13501).
Public Safety Employee Appreciation Leave: $0 est. revenue $400,000 expense
The City Council approved three days of employee appreciation leave for City staff on
December 13, 2021. Due to the nature of work in the Police and Fire Departments to provide
essential services and emergency response, many employees were unable to take the leave
time and the hours were cashed out as compensation in their paychecks in early January 2022.
This funding will right-size the departments for these expenses. Other departments are
anticipated to be able to absorb these costs through vacancy savings.
Consultancy Services: $0 est. revenue $515,000 expense
Funding for consultant work is needed to accomplish some administrative services and planning
and development related tasks in a timely manner in FY 2022 as directed by Council or required
by regulations. Project funding includes: support Project Homekey real estate work, complete
the bi-annual Other Post-Employment Benefits (OPEB) actuarial valuation report; increase
capacity for Building and Fire Inspections and planning application processing. The cost for
inspections will be funded out of the Development Center Reserve.
Code Enforcement Litigation-Edgewood Plaza: $0 est. revenue $353,000 expense
Based on the Court of Appeal's decision on Edgewood Plaza, the City is obligated to refund
administrative penalties that were previously collected, with interest.
Gas Commodity Purchases/Utility Allocated Charges: $0 est. revenue $82,000 expense
Gas commodity purchases increased in the Gas Fund consistent with the preliminary gas supply
forecast, which reflects fluctuating market prices and anticipated demand. This action aligns
revenue in the Gas Fund and City gas expenses accordingly.
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Proposed Balancing Solutions
With the approval of these amendments the BSR would be reduced by $3.6 million. The
projected ending balance of the General Fund Budget Stabilization Reserve is anticipated to be
$39.7 million, which is above the City Council recommended 18.5 percent level of $38.7 million
by $1.0 million.
In order to fund contract expenses for consulting services in the Planning and Development
Services Department to increase the capacity of both the building and fire inspection programs.
$240,000 will be used from the Development Services reserve. This will reduces that reserve to
approximately$2.3 million.
Other Funds Adjustments
The Technology Fund will add 2.00 FTE Senior Technologists to provide enhanced
security/network management and GIS capacity, CODE42 software to improves security of staff
technological devices and data, FME Safe software to allow for multiple GIS licenses in all City
departments, Laserfiche software to serve as a searchable record repository for permanent City
generated records, and contract expenses to replace the City's current public meeting agenda
management system. These costs will be allocated across the City’s departments and funds in
alignment with the allocation methodology used as part of the FY 2022 Adopted Budget. More
details for these adjustments can be found in Attachment A.
Preliminary 2nd Quarter Financial Status: Operating Budget
General Fund
Overall, the General Fund is tracking at or above adopted estimated revenues and at or below
adopted expenses. Based on the uncertainty of impacts from new COVID-19 variants, consumer
behaviors continue to evolve, impacting the financial forecasts. As a result of the City Council’s
leadership and adoption of a fiscally conservative budget, the identification of critical priority
projects, and current projected financial trends, staff have included in this report
recommended adjustments to the FY 2022 budget. Although economic trends and data
continue to be uncertain, staff believe that these recommended adjustments are measured and
necessary.
General Fund: Revenues
The FY 2022 Adopted Operating Budget approved a $206.5 million estimate for revenue
sources, of which $81.5 million has been collected to date, or 39 percent of the budgeted
estimate. The overall tax revenue estimates in the FY 2022 Adopted Budget remain relatively
constant to FY 2021 Adopted Budget levels of approximately $110 million. Adjustments to
realign revenue estimates such as increasing estimates for Sales Tax receipts and lowering
estimates for Transient Occupancy Tax receipts were adopted in FY 2022 to align with actual
activities in FY 2021. Highlights of current data on major revenue sources are included below.
Overall, staff is optimistic that revenues will meet or exceed FY 2022 Adopted Budget levels and
will continue to monitor results closely.
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Property Tax
The FY 2022 Adopted Budget assumed an estimate of $51.2 million, a $0.8 million or 1.5%
decrease from the FY 2021 budgeted level of $55.0 million. Property Tax receipts of $56.6
million were received in FY 2021 due to higher than anticipated assessed value growth and a
favorable settlement of the calculation for excess Educational Revenue Augmentation Fund
(ERAF) distributions1 contributed to these increased receipts. Consistent with the County of
Santa Clara Assessor’s Office, revenues are expected to meet or exceed FY 2022 budget levels
due to excess ERAF of approximately $1.7 - $2.0 million from the favorable resolution regarding
Excess ERAF distributions. In November 2021, the County of Santa Clara notified the cities that
the California School Boards Association and its Education Legal Alliance filed a lawsuit against
the Controller of the State of California arguing that the settlement reached with the counties is
unlawful. The County estimates that 20 percent of ERAF in FY 2022 is subject to this litigation.
Property Tax is anticipated to generate more than the budgeted $51.2 million in FY 2022 and
staff recommends increasing the FY 2022 budget by $2.0 million in this report.
Sales Tax
The FY 2022 Adopted Budget included an estimate of $28.2 million, an assumed growth of
12.6% from the FY 2021 budgeted level of $25.0 million. Actual Sales Tax receipts of $29.1
million in FY 2021 were above year end estimated levels; however, overall receipts remained
20% below pre-pandemic actuals of $36.5 million in FY 2019. In the Preliminary Q1 Financial
Report, the City’s sales tax consultant expected receipts to exceed FY 2022 budgeted levels by
$2.5 to $3.5 million. However, the consultant recently revised their estimate to lower
anticipated receipts in FY 2022 due to a recent slow-down of the economy in this area. It is
important to note that typically during a downturn period, the consultant is more optimistic
and staff continue to evaluate financial impacts of the changing economic base in Palo Alto.
Transient Occupancy Tax (TOT)
The FY 2022 Adopted Budget assumed an estimate of $8.4 million, a 74.5% increase from FY
2021 actual receipts of $5.2 million or $3.6 million above. FY 2021 actual receipts were slightly
higher than revised budget levels of $4.8 million by $0.4 million but remained significantly
lower than pre-pandemic actuals of $25.7 million in FY 2019. This revenue remains extremely
low compared to typical levels, up to a 90% reduction or more over the course of the pandemic.
Current receipts indicate that this revenue category continues to have robust growth from the
unprecedented lows seen during the pandemic; optimistically, if current activity levels continue
through the full fiscal year, staff expects revenues to exceed FY 2022 budget estimates.
However, this revenue source continues to remain volatile and no adjustments to the budget
are recommended at this time.
Actual receipts as of November 2021 are over 200 percent compared to FY 2021; however, due
to the on-going surge in COVID-19 and the economic uncertainty this has created, staff is
conservatively forecasting for the remainder of FY 2022. Included in the capital portion is the
revenue from the two new hotels (AC Hotel Palo Alto and Hotel Citrine Palo Alto).
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The open hotels average daily room and occupancy rates, as of November 2021 were $181 per
day and 59.6 percent, respectively. For the open hotels, occupancy percentage ranges from
31.0 percent to 96.1 percent. Year-over-year (for the same period), daily average room rates
increased by half, from $117 per day to $181 per day, while the occupancy rate has increased
from 40.2 percent to 59.6 percent.
Documentary Transfer Tax (DTT)
The FY 2022 Adopted Budget assumed an estimate of $7.1 million, a 3.8 percent increase from
the FY 2021 adjusted level of $6.9 million or $0.3 million above. FY 2021 experienced record
receipts of $10.6 million in this category, significantly above adjusted budget levels by $3.7
million. This high level of receipts was primarily attributed to six large commercial transactions
during the year. To date, receipts of $4.6 million are approximately 65 percent of the budget.
Staff will continue to monitor these receipts closely as this revenue source is highly volatile and
dependent on sales volume and the mix of commercial and residential sales. Therefore,
significant fluctuations can occur month to month depending on real estate transactions.
As in past years, this revenue source is challenging to forecast since it is highly dependent on
sales volume and the mix of commercial and residential sales. Although the total value of these
transactions has decreased by 4.6 percent, the number of transactions through December 2020
(365) are running significantly higher than those through December 2019 (285). A proposed
$2.2 million revenue budget increase is included in Attachment A to account for this increased
activity and estimate moderate sale activity for the remainder for the year.
Utility User Tax (UUT)
The FY 2022 Adopted Budget assumed an estimate of $14.4 million, a 2.1 percent increase from
the FY 2021 adjusted level of $14.1 million or $0.3 million above. FY 2021 receipts of $14.6
million were higher than the adjusted budget level by $0.5 million. Revenue in this category is
impacted by consumption levels and has experienced reductions in prior periods due to water
reduction programs and reduced workforces and business closures due to the pandemic. This
revenue was showing early signs of recovery as public health orders eased and workers
returned to the office; however, with the emergence of the COVID-19 Omicron variant the
previous return to office may be slowed. UUT is anticipated to remain in line with overall
expectations assumed in the FY 2022 Adopted budget at this time.
Charges for Services & Permits and Licenses
The FY 2022 Adopted Budget assumed an estimate of $23.9 million in Charges for Services,
consistent with the FY 2021 adjusted level. The FY 2022 Adopted Budget assumed an estimate
of $8.4 million in permit and license revenue, a 5.9 percent reduction from the FY 2021
adjusted level of $8.9 million or $0.5 million below. Together, these revenue categories make
up nearly half of all non-tax revenues. In total, $32.4 million was received during FY 2021,
slightly below the revised budget estimates by $0.4 million. These revenue categories consist of
charges to Stanford for fire services and paramedic services, fees related to the City’s golf
course, arts and science classes, plan check fees, and payments to the City for issuance of
Building Permits, Fire Permits, and miscellaneous health and safety-related licenses. Several
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adjustments to revenue in Charges for Service are recommended in this report; however,
overall revenues in these categories are in line with activity levels anticipated thus far.
Community Services (CSD): CSD has resumed most programming and operations in accordance
with the lifting of many State and County Public Health restrictions. At the end of the second
quarter, CSD revenue reached 35 percent of levels assumed in the adopted budget, at
approximately $4.7 million. The department continues to offer programming as anticipated and
detailed in the Winter Enjoy! catalog despite the unpredictable course of the pandemic. This is
similar to this same time last fiscal year. Outdoor recreation activities specifically golf, middle
school athletics, aquatics at Rinconada Pool, tennis and pickleball have been very popular for
the first six months of FY 2022 demonstrating community members’ comfort with outdoor
activities during the pandemic. Programming at the Arts Center, Children’s Theatre and special
interest classes have begun to take place inside with the rainy weather and have proven to be
very popular. Many classes sold out the weekend that Fall and Winter registration opened, and
waitlists were established. Lucie Stern continues to exceed revenue targets for facilities rentals,
and demand is growing for rentals at Michell Park Community Center and the Art Center.
Despite the Omicron variant, Winter classes are taking place in person, with most classes
operating as scheduled. CSD has not seen an increase in the number of withdrawals from
classes in the Winter 2022 session that began in January 2022, as compared to Fall 2021. CSD
anticipates enrollment in Spring classes and Summer camps across all CSD programs will result
in achieving budgeted revenue targets in the third and fourth quarter.
Golf Course: Golf revenue continues to perform well in the first and second quarter of FY 2022.
To reflect this and in alignment with Council direction in June 2021 (CMR 12343), the revenue
target is recommended to be raised by $260,000. However, the outlook for the remainder of
the fiscal year is dependent upon the COVID-19 pandemic and winter weather. Should Omicron
or a different COVID variant bring player hesitancy or necessitate another course closure, the
revenue loss per month could be up to $500,000. The multiple atmospheric river rainstorms in
December brought heavy rain periods surpassing the Year to Date rainfall of prior drought
winters. Should a wet winter continue, there will be fewer days available for ideal golf play and
inferior playing conditions. For FY 2023, the department is proposing an assessment of the
driving range by a consultant to explore the potential feasibility of expanding with construction
of a second deck. The assessment would include revenue potential, operating costs, and use
projection.
Junior Museum & Zoo (JMZ): The new JMZ opened with its full schedule (Tuesday through
Sunday) on December 21. Ticket sales were negatively impacted by the COVID-19 pandemic
due to measures taken to improve visitor and staff safety. Admission to the facility was
arranged into two sessions per day with a cleaning-closure between sessions, on-line
reservations for tickets and member access were strongly encouraged, and the number people
allowed into the facility during each session was limited to 250 to enable social distancing. As a
consequence, these protocols limited the total maximum visits to 500 per day as compared to a
historic visitor count of up to 1,100 visits per day in the old, smaller facility during weekends
and the winter holidays. Then in January, the Omicron- wave caused people to stay home and
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visitors decreased. Despite the soft opening and pandemic; however, the JMZ has received an
enthusiastic reception. All dates in November and December 2021 sold out. Over 1,000
memberships have sold since memberships went on sale in October 2021, with membership
sales on track to reach the FY 2022 goal of 2,000 memberships. The JMZ is experiencing
complications in tracking non-membership ticket sales, and CSD does not have the exact count
of ticketed sales at this time. CivicRec, the software that CSD uses for class and camp
registration, has been challenging to use for ticket sales. CSD is proposing a new ticketing
software in the FY 2023 budget proposals that will make ticket purchase and sales reporting
significantly easier. Due to its delayed opening, and the pandemic, JMZ revenues are tracking at
approximately 10 percent of target, but CSD anticipates that this percentage will significantly
increase in the next six months now that the JMZ is open six days per week and Spring and
Summer JMZ camps will take place. CSD looks forward to returning to the Finance Committee
with a report on JMZ operations and revenues after six months of operations.
Development Services: Preliminary FY 2022 Development Services revenue is up two percent
compared to last year and is currently at 38 percent of the FY 2022 revenue target. Due to
seasonality and significant fluctuations in development activity, staff is unable to anticipate
whether this pace will continue into the spring. Department-managed expenses are currently
under or on pace to meet the budget. The Department is monitoring this category closely as
Development Services strives to remain cost neutral. The table below articulates development
services revenues from January through December from 2019 to 2021. Note that Q2 of 2019 is
not an accurate pre-Covid baseline comparison as it was a code change year, resulting in the
surge of activity in December 2019.
Table 2: Development Services Revenue – 2020 vs 2021
Other Revenues
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Rent Forgiveness Program: On June 7, 2021, Council approved a rent forgiveness program (CMR
12234) to forgive three months of rent for active non-profit tenants. Staff is continuing to
evaluate applications from tenants to determine eligibility for the program. Funding for this
program ($744,000) was reappropriated to FY 2022 in order to limit impacts to rental income
revenue in FY 2022. Since the program was established, 31 tenants have applied as of
December 30, 2021. The total amount of rent requested to be forgiven by those tenants that
have applied is approximately $286,000, with the program culminating on June 30, 2022.
General Fund: Expenses
Overall General Fund expenses are currently expected to remain within the FY 2022 Adjusted
budget levels of $210.6 million. General Fund expenses (excluding operating transfers) for
second quarter are 0.5 percent higher than the prior year and are tracking at 45.0 percent of
the Adjusted Budget (excluding encumbrances).
Salaries and Benefits
As a service driven organization, the largest expenses are salaries and benefits. Preliminary
salary and benefits expenditures through December 2021 are approximately $64.3 million, or
48.9 percent of the $131.5 million FY 2022 Adopted Budget, compared to $64.1 million in the
same period in the prior year. The City continues to maintain vacancies of approximately 121
positions, though this changes frequently, which reflects approximately a 12.6% vacancy rate.
When comparing staff capacity to deliver services to the community beyond the authorized
staffing levels, looking at December 2020 to December 2021, the City has 40 fewer full-time
employees and is approximately 11% below pre-pandemic benefitted employee (typically full-
time) counts. If looking at all employees, including part-time staffing from March 2020 (pre-
pandemic) to December 2021, the total number of City employees is down over 12%. Use of
leaves2 also impacts service capacity. Looking at the six-month period ending December 2021
versus that same period in December 2020, use of leave has increased over 31%. Use of leave in
the six-month period ending December 2021 exceeded pre-pandemic holiday season, which
included the use of Employee Appreciation Leave.
Public Safety Overtime
For the Police Department, overtime has tracked higher than expected through Q2 due to
backfilling vacancies and adding staffing resources to the 24/7 dispatch center as an operational
necessity, as well as servicing a utility team and extra retail patrols. However, the number of
workers’ compensation cases and disability days are tracking lower compared to FY 2021. As of
this writing, the Department has 11 vacancies: five police officers, four dispatchers, two records
specialists, and approximately 10 staff members on various categories of leave. Although
Overtime is tracking higher, overall the Department is tracking within budget and anticipates
continuing to do this through the remainder of FY 2022. For more information, see Attachment
C.
Fire Department overtime has also tracked higher than expected, primarily due to vacancies
and employees on disability leave. During this time, the Department had six employees on
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leave and six employees separated from the Department, creating 12 effective on-shift
vacancies that require overtime backfill. This has generated significant strain on current
employees having to work additional backfill overtime. However, the Department is hiring six
new firefighters to begin a Joint Fire Academy at the start of the year, which is anticipated to
alleviate the need for as much backfill overtime. The number of workers’ compensation cases
and disability days are tracking similarly to that of FY 2021. As a result, net overtime cost is
higher through Q2 than it was for FY 2021. Actions in this report are recommended to adjust
the Department’s overtime budget to address the need for backfill, and at this time the
Department anticipates staying within budget in FY 2022. For more information, see
Attachment C.
General Fund: Budget Stabilization Reserve
The General Fund Budget Stabilization Reserve is anticipated to be $39.7 million, which is above
the City Council recommended 18.5 percent level of $38.7 million by $1.0 million.
Below is a summary of the remaining reserve balances in the General Fund that Council
designated as part of the FY 2022 Adopted Budget after adjusting for the recommended uses in
this report:
• Reserve: Administrative Support $175,000, from $300,000
• Reserve: Strategic Investments $275,000, from $750,000
• Reserve: Transition Costs $515,000, from $1.1 million (it is expected that an additional
up to $200,000 will be recommended for executive and contractual recruitment
services, to be considered with the contract award at a later date)
Other Funds
Parking Funds
On November 1, 2021, Council approved parking permit pricing adjustments and the expansion
of employee permit allocations in City garages and lots (CMR 11795). Staff had projected that
demand for employee parking permits in all districts would begin to trend upwards toward pre-
pandemic levels and did not anticipate or factor the Omicron variant.
A new and major sales cycle began in December 2021 for employee parking permits in all
districts (including garages and lots and RPPs). This sales cycle was a restart to the parking
programs that have been primarily on hold throughout the pandemic. Unlike prior permit
cycles, where a certain level of permits typically sell out within a week or two, permit sales have
continued into the new year and a second sales cycle should increase permit sales assuming
COVID-19 concerns and/or restrictions are lifted.
However, as of January 2022, the anticipated increase in revenue levels has not materialized,
demand for permits is down due to the Omicron variant and its effects on local business,
including continued remote work, labor supply shortages, and temporary business closures. At
this time, sales are down in all programs (see table below). An uptick in sales remains largely
dependent upon business/commuter reactions to future COVID effects/variants. It is expected
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that the resident permits that have upcoming sales cycles, should not see a decrease in the
same manner that employee permits have.
Table 3: Parking Permit Sales as of FY 2022 Q2
Program Inventory Active Permits % Sold
Residential
Parking Permits
660 370 56%
University Ave. 3,878 1,670 43%
California Ave. 1075 361 34%
Internal Service Funds
Technical adjustments in several internal service funds such as the General Benefit Fund, the
General Liabilities Fund, and the Retiree Health Care Fund are recommended to align budget
with current estimates. More details for these adjustments can be found in Attachment A.
The Technology Fund will add 2.00 FTE Senior Technologists to provide enhanced
security/network management and GIS capacity, CODE42 software to improves security of staff
technological devices and data, FME Safe software to allow for multiple GIS licenses in all City
departments, Laserfiche software to serve as a searchable record repository for permanent City
generated records, and contract expenses to replace the City's current public meeting agenda
management system. These costs will be allocated across the City’s departments and funds in
alignment with the allocation methodology used as part of the FY 2022 Adopted Budget. More
details for these adjustments can be found in Attachment A.
The Vehicle Replacement and Maintenance Fund will be augmented to purchase several new
vehicles for Code Enforcement activities, Airport grounds maintenance, and replacement of a
Police vehicle that was totaled as a result of an accident. More details for these adjustments
can be found in Attachment A.
Enterprise Funds
Mid-year actions being recommended in these funds are primarily related to the alignment of
the Utilities Department budgets with current market conditions for revenues and expenses
related to the purchase of commodities and the operation of utilities. The actions
recommended for FY 2022 mid-year will align revenues and expenses for the maintenance
contract for the cooperatively owned back-up generator (COBUG); contract for tree and
vegetation clearing from the overhead electric distribution system; Fiber Fund revenue
projections; interfund transfers for the Gas and Electric Fund Utilities Equity Transfers; Electric
and Gas commodity costs; and S/CAP electrification initiatives as detailed above in the
Reinvestment Actions Infrastructure and Environment section of this report.
Adjustments in the Airport Fund are recommended to improve the ability to manage airport
operations, revenue collection, and facility maintenance needs through the purchase of a new
software system. In addition, the purchase of a tractor to maintain the grounds at the airport is
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recommended to replace the tractor that is currently leased. The costs for these actions are
mostly offset by federal grant funds.
Preliminary 2nd Quarter Financial Status: Capital Budget
Overall, most Capital Improvement projects are anticipated to remain within budgeted levels in
FY 2022. Two adjustments to the City’s 2022 Capital Improvement Plan are noted in
Attachment A. In the Capital Improvement Fund, $75,000 will be shifted from the Traffic Signal
and Intelligent Transportation Systems capital project (PL-05030) to the Street Lights
Improvements capital project (PO-05054). This adjustment will allow staff to fix street light
poles that are damaged due to accidents or must be replaced immediately due to safety issues.
Planned work in PL-05030 will not be completed in FY 2022, so there is capacity to shift funding
between these projects to address the most critical needs related to street lights and traffic
signals.
In the Vehicle Replacement and Maintenance Fund, $75,000 will be added to the Emergency
Repair and Replacement capital project (VR-15001) to fund the replacement of a Police vehicle
that was totaled in an accident earlier in FY 2022. This will allow Fleet Staff to replace the
vehicle with a current year model, instead of a potentially more expensive future year model,
and get the vehicle back in service more quickly.
Timeline and Next Steps
Staff expect to continue to diligently manage financials across the organization, providing City
Council updates as information becomes available. As we continue into the 2022 fiscal year,
staff is actively working on the FY 2023 budget as well as several regular reporting activities
over the coming months. Below is a list of expected reports and Council updates planned over
the next few months. The Council will continue to be updated on the financials of FY 2022
through these planned discussions with adjustments brought forward as necessary once more
information in available and known. Expected upcoming financial status, budget reporting and
Community and Economic Recovery Strategy conversations include:
March/April 2022:
• Various Utility rate and financial forecast review with Utility Advisory Commission and
Finance Committee
May 2022:
• Release of the FY 2023 Proposed Operating and Capital Budgets
• Public Budget Hearings on the Proposed Budgets with Finance Committee
June 2022:
• FY 2023 Operating and Capital Budget Adoption
• FY 2023 Municipal Fee Adoption
• FY 2023 Utility Rates adoption
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Resource Impact
Approval of the attached transactions is required to amend the FY 2022 budget appropriation.
With the approval of these amendments, the projected ending balance of the General Fund
Budget Stabilization Reserve is anticipated to be $39.7 million, which is above the City Council
recommended 18.5 percent level of $38.7 million by $1.0 million. The projected changes to the
fund balance for all other funds including Enterprise Funds, Internal Services Funds, Special
Revenue Funds, and Capital Funds are outlined in Attachment A and accompanying exhibits and
impacts to fund balance summarized as follows:
Table 4: Resource Impact (Non-General Fund)
Fund Type Fund Amount
Capital Capital Improvement Fund $69,000
Enterprise Airport Fund $(2,000)
Electric Fund $(7.8 M)
Fiber Optics Fund $(0.8 M)
Gas Fund $0.2 M
Refuse Fund $(15,000)
Stormwater Management Fund $(12,000)
Utility Administration Fund $(0.1 M)
Wastewater Treatment Fund $(76,000)
Internal Service General Liabilities Insurance Fund $(0.7 M)
Information Technology Fund $0.3 M
Print and Mail Services Fund $(1,000)
Retiree Health Fund $1.4 M
Vehicle Replacement Fund $(0.1 M)
Special Revenue University Avenue Parking Fund $46,000
Stakeholder Engagement
The Office of Management and Budget has coordinated with all departments city-wide and the
City Manager’s Office, as appropriate, to bring forward the changes discussed and
recommended in this report.
Environmental Review
This is not a project under Section 21065 for purposes of the California Environmental Quality
Act (CEQA).
Attachments:
• Attachment10.a: Attachment A - Recommended Budget Adjustments
• Attachment10.b: Attachment A, Exhibit 1 - Central Adjustments in Various Funds
• Attachment10.c: Attachment B - Amended Table of Organization
• Attachment10.d: Attachment C - Public Safety Overtime Analysis
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Revenues
Department FTE Adjustment Adjustment
GENERAL FUND (102)
Administrative
Services
Project Homekey
This action appropriates $143,000 for work was previously approved by the Council on September 27, 2021
(CMR 13595). The funding will be used to perform work such as an appraisal report, survey and
environmental reporting, and design consultation to build an emergency shelter for the unhoused at 1237
San Antonio Road. Staff in partnership with LifeMoves has submitted for reimbursable Project Homekey grant
funding from the State of California and should it be awarded will seek to offset these costs with recognizing
the grant revenues. However, if the City and LifeMoves is unsuccessful in their application, these costs will be
financial impacts to support the development and evaluation of a complete grant application. (Ongoing costs:
$0)
0.00 -$ 143,000$
Administrative
Services
OPEB Valuation Report
This action appropriates $64,500 to complete a bi-annual Other Post Employment Benefits (OPEB) actuarial
valuation report to meet California Employers' Retiree Benefit Trust (CERBT) Fund requirements. Information
from this report will be used to develop the FY 2023 Budget as well as inform future planning for Long Range
Financial Forecasts. (Ongoing costs: $0)
0.00 -$ 64,500$
City Attorney City Attorney's Office Staffing Reclassification
This action modifies the authorized staffing levels in the City Attorney's Office, reclassifying two (2.0) Deputy
City Attorney positions to two (2.0) Assistant City Attorney positions. This adjustment in the authorized
staffing levels will allow junior level attorneys the opportunity to work on higher level projects and continue
to grow with the City as their years and knowledge increase. There is no immediate financial impact
associated with this actions, however, the salary of an Assistant City Attorney classification is approximately
27% higher than a Deputy City Attorney classification maximum salary (Approx. $169,000 annually) and
therefore may result in increased costs eventually. (Ongoing costs: $0)
0.00 -$ -$
Community
Services
Art Center Staffing: Child and Youth Oriented Ceramics Classes
This action increases Art Center capacity to meet community demand for children and youth oriented
Ceramics classes that are held at the Art Center. Salary expenses are increased to add one Junior Museum &
Zoo Educator position (0.75 FTE) and eliminate two hourly Instructor positions (total 0.5 FTE), for a net
increase of 0.25 FTE. Additionally, this action increases revenues for fees generated by new Ceramics classes
that will become available. (Ongoing costs: $0)
0.25 8,965$ 2,656$
Community
Services
Art Center Staffing: Spring Classes and Summer Camps
This action adds one (1) Arts and Sciences Professional I - Hourly position (0.48 FTE) in order to meet
increased community demand for children's art classes in Spring 2022 and camps in Summer 2022. These
expenses are fully offset by increased class and camp enrollment revenue resulting from this increase in
staffing capacity, which would allow the Art Center to facilitate an additional 25 spring classes and 12 summer
camps. Children's classes at the Art Center have been exceeding revenue projections for FY 2022, driven by
high level of demand for classes and camps, most of which have been selling out and have waitlists. This
position will provide support for the day-to-day operations of the Children's Fine Art program, supporting
afterschool, weekend and summer camp programs. (Ongoing savings: $33,000)
0.48 37,500$ 11,968$
Community
Services
Art Center Foundation Donation Revenue Estimate
This technical clean-up action restores $21,500 for the Art Center Foundation donation to the City, which was
erroneously eliminated in the FY 2022 Adopted Budget. As part of the adoption of the FY 2022 Budget, the
Finance Committee included a recommendation to restore a Junior Museum & Zoo Educator position that
staffs the Art Center; however, that recommendation did not include a restoration of the donation revenue
that partially offsets the cost of this position. (Ongoing savings: $43,000)
0.00 21,500$ -$
Community
Services
Restore Park Maintenance Contract Services
This action restores the park maintenance contract service levels back to pre-COVID levels, the amount
requested for approval here is prorated for the current Fiscal Year. Funding for services under this contract
was reduced by approximately 25 percent as part of the FY 2021 Adopted Budget. Services under this
contract include landscape maintenance of parks, athletic fields, courts, roadsides, medians, City buildings,
community centers, and other facilities throughout Palo Alto. (Ongoing costs: $275,000)
0.00 -$ 68,711$
Community
Services
Golf Course Green Fee Revenue/Management Contract Services Alignment
This action increases revenues and expenditures related to City Golf Course operations. Contract
expenditures are increased by $362,000 to reflect amounts owed to OB Sports per the terms of the
agreement with the City, which includes (a) $83,000 for a 3 percent allowable annual increase in service
costs; and (b) $280,000 for the calculated FY 2021 revenue share, or 20% of the difference between Gross
Revenue and Target Revenue for that fiscal year. These expenditures are partially offset by a revenue
increase of $260,000, based on current Staff projections for FY 2022 Golf Course operational revenue. Staff
expect in the future to address the revenue share calculation as part of the annual fiscal year closing
proceedures moving forward. (Ongoing costs: $84,000)
0.00 257,646$ 362,216$
Community
Services
Foothills Nature Preserve Vehicle Entry Fee Revenue/Supervising Ranger Vacancy Savings
This action reduces Foothills Nature Preserve entry fee revenue budgeted estimates due to connectivity
issues with the on-site payment kiosk, which relies on an unreliable cellular service for payment processing. A
self-service payment system is anticipated to be installed in Spring 2022 for weekday vehicle entry fee
collection to supplement the current weekend fee collection by staff. This revenue reduction is partially offset
by six months of estimated salary savings for one vacant Manager Community Services position that was
added as part of the FY 2022 Adopted Budget as a Supervising Ranger at Foothills and Pearson-Arastradero
Preserves. (Ongoing costs: $0)
0.00 (137,200)$ (70,000)$
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 BUDGET
Expenses
ATTACHMENT A
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Department FTE Adjustment Adjustment
GENERAL FUND (102)
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 BUDGET
Expenses
ATTACHMENT A
Fire 0.00 -$ 135,000$
Fire 0.00 -$ 805,000$
Fire 0.00 -$ $150,000
Fire 0.00 -$ 150,000$
Human
Resources 0.96 -$ 62,724$
Human
Resources 1.00 -$ 50,691$
Library
0.00 -$ 50,000$
Library
0.00 -$ 75,000$
Office of
Transportation 0.00 -$ 60,000$
Office of
Transportation
Temporary Fire Training Facility
This action appropriates $135,000 for the purchase of a temporary training trailer to provide required training
for new firefighters and to meet mandatory training requirements for current firefighters as options for a
future permanent training facility are studied and identified. This trailer allows staff to remain in Palo Alto and
respond to incidents during training exercises instead of traveling to another juristiction. (Ongoing costs: $0)
Firefighter Academy Overtime and Personal Protective Equiment (PPE)
This action appropriates $682,500 for backfill overtime costs estimated for the hire of up to 7.0 FTE firefighters
planned to be hired and attend the Academy during FY 2022. Backfill overtime is used to maintain minimum
staffing levels on assigned units while new firefighters attend the academy. This action anticipated filling four
vacancies and allows for a hire ahead program of up to three candidates in anticipation of future attrition.
This action also appropriates $122,500 for corresponding personal protective equipment (PPE) for each of the
new employees. This does not contemplate the additional 5.0 new fire fighter positions added with the recent
award of the SAFER grant as backfill for these new position is not necessary. (Ongoing costs: $0)
Sworn Fire Paramedic Training and Promotional Opportunities
This action appropriates funding for a paramedic certification pilot program ($120,000) and various costs
related to promoting sworn Fire Department staff ($30,000). The paramedic program includes the cost of
attending the program as well as backfill overtime to maintain line staffing. This will help the Department to
meet its required proportion of 60% paramedics for all line personnel. The Department currently has 59% of
paramedics for all line personnel but anticipates upcoming difficulties maintaining and increasing that number.
Funding for promotional opportunities will be used to cover costs for testing and evaluating employees that
want to apply for promotions within the sworn Fire position classifications. This will allow the Department to fill
higher level positions to have more management support and create vacancies in lower level positions to fill
with employees in the Academy.(Ongoing costs: $135,000)
Public Safety Employee Appreciation Leave
The City Council approved three days of employee appreciation leave for City staff on December 13, 2021. Due
to the nature of work in the Fire Department to provide essential services and emergency response, many
employees were unable to take the leave time and the hours were cashed out as compensation in their
paychecks in early January 2022. This funding will right-size the Department for these expenses. (Ongoing
costs: $0)
Human Resources Administrative and Special Project Staffing
This action restores two hourly Management Specialist positions of 0.48 FTE each that were eliminated in the
FY 2021 Adopted Budget. These positions will provide support for special projects and administrative tasks and
allow more senior staff to focus their efforts toward Employee/Labor Relations, Recruitment and Selection,
Benefits, Human Resources Information Systems, Workers’ Compensation, and Risk. (Ongoing costs: $154,000)
Human Resources Recruitment Staffing
This action adds 1.00 FTE Human Resources Technician position that was eliminated from the Recruitment
Division in the FY 2022 Adopted Budget. This position will assist with streamlining the recruitment process.
Currently, the Department is actively recruiting to fill two existing Human Resources Technician positions by
February 2022 to assist with Council priorities, such as staff development, long-term succession planning, and
enhancing the Citywide training program. (Ongoing costs: $125,000)
Community Needs Assessment and Staff Analysis
This action adds $50,000 for contract services to conduct a community needs assessment and staff analysis to
develop an updated service-model that addresses current and future challenges impacting Library services and
operations. To meet community demands for increased library operating hours and new services, Staff will
procure a consultant to evaluate the existing Library system and recommend a service-model focussing on
updated staffing strategies. Timeline for this study is still being determined and changes will be brought
forward in the annual budget process as appropriate. (Ongoing costs: $0)
Library Collections
This action adds $75,000 in contract services to update the Library Collections that were reduced in previous
fiscal years, due to impacts of COVID-19. Staff will purchase an estimated 3,000 items, including fiction
acquisitions that include additional copies of popular titles to reduce the length of waiting time for customers.
Non-fiction acquisitions will focus on updating the collection on subject matters of computer science, social
science, medicine, technology, and biography. The Library continues to maintain a viable, well-rounded library
collection to meet customers’ perennial needs, which were identified in the Library’s Collection Development
Plan. (Ongoing costs: $75,000)
Safe Routes to School
This action appropriates $60,000 for Safe Routes to Schools outreach and education contract services. Funding
would be used to convert a longtail cargo bike into a mobility information kiosk, provide information and
materials on upcoming active transportation infrastructure projects and Safe Routes to School education, and
engage in mobility-related conversations with members of the public who might not otherwise attend
community meetings. (Ongoing costs: $60,000)
Reclassify Traffic Engineering Lead to Senior Engineer
This action reclassifies of a vacant 1.00 FTE Traffic Engineering-Lead position to a 1.00 FTE Senior Engineer
position in the Engineering Division. The nature of the position has evolved to require professional certification
as an engineer and tasks requiring certification are currently being performed by another Senior Engineer in
the Department, which has led to other duties being absorbed by other staff. The reclassification will also
allow for the position to perform management administrative duties, management of complex engineering
design and construction projects, and to ensure that the City’s roadways are appropriately signed and marked,
and safe. (Ongoing costs: $11,000)
0.00 -$ 4,146$
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Department FTE Adjustment Adjustment
GENERAL FUND (102)
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 BUDGET
Expenses
ATTACHMENT A
Planning and
Development
Code Enforcement Staffing
This action adds one Code Enforcement Officer position (1.00 FTE) to address code violations, including leaf
blower concerns by the community. As part of the October 25, 2021 Council Meeting, a recommendation was
made to return to Council as part of the Mid-Year Review to add staff to address code enforcement.
Additionally, this action adds one vehicle to the City's fleet for the officer to be able to execute job duties.
(Ongoing costs: $138,000)
1.00 -$ 94,605$
Planning and
Development
Regional Early Impact Planning (REAP) Grant
This action recognizes the acceptance of the Regional Early Impact Planning (REAP) Grant for the amount of
$62,232 and aligns expenses to procure consulting support services for the current Housing Element update.
The REAP grant is funded through the Association of Bay Area Governments - Metropolitan Transportation
Commission (ABAG-MTC). A Housing Element is a City’s primary planning document to address its housing
needs for the future. Through goals, policies and programs in the Housing Element, the City must
demonstrate that it is able to provide housing opportunities to adequately meet its housing needs for all
income levels. State law requires that all jurisdictions adopt a Housing Element as part of their general or
comprehensive plan. The Housing Element must be updated every eight years. The City’s current Housing
Element for the period of 2015-2023 was adopted on November 10, 2014 and was certified by the California
Department of Housing and Community Development (HCD) on January 20, 2015. (Ongoing costs: $0)
0.00 63,262$ 63,262$
Planning and
Development
Increase Capacity of Building and Fire Inspection Programs
This one-time action adds $240,000 in contract expenses for consulting services to increase the capacity of
both the building and fire inspection programs to address the current and ongoing volume of outstanding
inspections. This action is fully offset by the use of the Development Services reserve, intended to complete
prior year works in progress, and reduces the remaining balance to approximately $2.26 million.
During peak times, wait time for building inspections can increase to more than 2 weeks. The building
inspection program is currently staffed with 6.0 FTE and is not augmented by any additional consultant
support. $105,000 will allow 1,040 consultant hours to manage variability in the volume of inspection
requests. This request will also create a temporary consultant budget for the fire inspection program,
specifically in Hazmat services. In the FY 2021 Adopted Budget, the fire inspection team was reduced from 6.0
FTE inspectors (2 hazmat, 4 fire) to 4.0 FTE inspectors (2 hazmat, 2 fire). Out of approximately 1,000 total
inspections, roughly 50 hazmat inspections had been completed as of December 2021. $135,000 will allow
1,040 hours of consultant resources to assist with reducing the number of outstanding inspections. (Ongoing
costs: $0)
0.00 -$ 240,000$
Planning and
Development
Increased Capacity for Planning Application Processing
This one-time action adds $67,500, or a 35 percent increase from the FY 2022 Adopted Budget of $193,000, in
support of increased capacity for Planning application processing. From FY 2020 to FY 2021, this budget was
reduced by 61% from $495,000 to $193,000. This action will provide approximately 500 hours of consulting
support services to allow the program to keep up with application processing and maintain current
turnaround times, which are impacted due to the return of planning activity over the past year. (Ongoing
costs: $0)
0.00 -$ 67,500$
Police Uniforms and Equipment Funding
This action appropriates funding for the uniforms and equipment budget that had been previously reduced in
FY 2021. This action also recognizes federal grant funding for approximately 15 bullet proof vests that will be
purchased with this action. Agencies apply for funding annually based on the number of vests needing
replacement (due to damage, wear, date of expiration) or vests purchased for new police officers. (Ongoing
costs: $0)
0.00 7,612$ 36,000$
Police Technical Services Division Staffing
This action restores 1.00 FTE Deputy Director position to oversee the Technical Services Division (TSD),
allocated 0.80 FTE - Police and 0.20 FTE - Fire. Since its elimination in FY 2021, management staff were
realigned from the Patrol Division to TSD. Restoring this position will provide support to both Technical
Services and Patrol, with TSD benefitting from a subject matter expert and Patrol with increased oversight.
Should the position not be restored, the City would maintaining reduced costs in the short run but would
likely increase costs due to unmitigated risks in the the Department. Given near-term changes in executive
staffing, it is important to recruit and hire for this position as soon as is practical. (Ongoing costs: $262,000)
1.00 -$ 106,211$
Police Santa Clara County Auto Theft Task Force
This action decreases revenue related to the County Auto Theft Task Force, as the City's participating officer
has been brought back onto the Investigative Division. Law enforcement departments often combine
resources to combat regional issues such as auto related crimes such as stolen automobiles, stolen catalytic
converters or stolen license plates. Prior to reducing sworn staffing in FY 2021, the Department deployed one
officer to the task force and would receive reimbursement for the officer’s salary through a State grant.
While the funding and opportunity remain, the Department can not maintain current service levels in the
Detective Division with current authorized staffing, and called back this resource. (Ongoing costs: $103,000)
0.00 (103,004)$ -$
Police Public Safety Employee Appreciation Leave
The City Council approved three days of employee appreciation leave for City staff on December 13, 2021.
Due to the nature of work in the Police Department to provide essential services and emergency response,
many employees were unable to take the leave time and the hours were cashed out as compensation in their
paychecks in early January 2022. This funding will right-size the Department for these expenses. (Ongoing
costs: $0)
0.00 -$ 250,000$
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Department FTE Adjustment Adjustment
GENERAL FUND (102)
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 BUDGET
Expenses
ATTACHMENT A
Public Works Foothills Road Brush Clearing
This action restores funding for brush clearing services on Pagemill Road that was reduced as part of the FY
2021 Mid-Year Review. Previously it was assumed in-house staff would take over this work; however, the
Department has determined that staff does not have capacity. This funding will be used for contractual work
to clear brush and vegetation along the road in order to mitigate fire danger in the foothills area. (Ongoing
costs: $55,000)
0.00 -$ 54,800$
Public Works Sustainability and Climate Action Plan (S/CAP) Oversight Staffing
This action reclassifies a 0.75 FTE Management Analyst position to a 1.00 FTE Manager Environmental Control
Program and adds a 1.00 FTE Environmental Specialist position. These positions will provide technical
oversight and support of the Council priority S/CAP program. As discussed at the December 13, 2021 Council
meeting (CMR 13765) these positions will address Council’s request and accelerate elements of S/CAP
implementation and coordination as well as additional work items, such as long-range sustainability planning,
increased collaboration with Department Heads, increased regional collaboration, developing and
implementing the Sustainability Impact Statement requested in the Council Motion, and evaluating the City’s
sustainability work through an equity lens. The costs for these positions will be spread over the General Fund
and Utility and Public Works Enterprise funds. (Ongoing savings: $32,000)
(0.09)-$ (13,134)$
Non-
Departmental
Utilities Equity Transfer to the General Fund
This action reduces the equity transfer to the General Fund from the Electric and Gas Funds in FY 2022. The
decrease of $349,000 is the result of lower than anticipated fixed assets and is in alignment with the FY 2021
Annual Comprehensive Financial Report (ACFR) as of June 30, 2021 (CMR 13501). This alignment reduces
transfers from the Electric Fund by $160,000 and the Gas Fund by $189,000 for a total decrease of $349,000.
(Ongoing costs: $0)
0.00 (349,000)$ -$
Non-
Departmental
Code Enforcement Litigation - Edgewood Plaza
Based on the Court of Appeal's decision on Edgewood Plaza, the City is obligated to refund administrative
penalties that were previously collected, with interest. (Ongoing costs: $0)
0.00 -$ 352,646$
Non-
Departmental
Transfer to the General Benefits Fund for Supplemental Pension Contributions
This action transfers funds to the General Benefits Fund to increase the contribution to the Section 115
Pension Trust fund. This brings the total contributions to $39.3 million ($26.1 million from the General Fund).
Staff will work to true up proportional contributions from other funds as part of the FY 2022 year-end
process. (Ongoing costs: $0)
0.00 -$ 2,000,000$
Non-
Departmental
Property Tax Revenue
This action recognizes adjustments to estimates for the Property Tax revenue category based on trends
experienced through the first half of FY 2022. (Ongoing savings: $0)
0.00 2,000,000$ -$
Non-
Departmental
Development Services Reserve
This action funds actions above related to consulting support services to address the current and ongoing
volume of outstanding building and fire inspections. The Development Services Reserve will have $2.26
million remaining. (Ongoing savings: $0)
0.00 -$ (240,000)$
Various Employee Parking Permit Transfer to the University Avenue Parking Fund
This action appropriates $36,600 for the General Fund's share of City employee parking permit in the
University Avenue Parking Fund. (Ongoing costs: $37,000)
0.00 -$ 36,600$
Various Information Technology Reinvestment Actions and Allocated Charges
Expenses for reinvestment actions in the Information Technology Fund cost approximately $273,000 for
staffing support for security/network managment and the City's Geographic Information System (GIS),
updated security software, new records management software, and updated licensing requirements. The
costs of these services are budgeted as allocated charges in citywide departments and funds; therefore,
corresponding increases in various departments’ allocated charges for internal services provided by the
Information Technology Department are also recommended. For the General Fund, this action also includes
technical corrections for direct allocations to the Planning and Development Services Department (PDS) to
support existing department-specific technology ($324,000) and the Police and Public Works Departments for
dedicated IT staff (net zero impact). To remain cost neutral, Development Services revenue will be increased
by $250,000 to offset the costs related to development specific technology. The impact to the General Fund
in FY 2022 is approximately $432,000; other funds $165,000. A detailed list of impacts by department and
fund can be found in Attachment A, Exhibit 1. (Ongoing costs: $320,000)
0.00 250,000$ 431,645$
Various Gas Commodity Purchase/Utilities Allocated Charges
Expenses for gas commodity purchases increased by $7.7 million in the Gas Fund. This adjustment is
consistent with the preliminary gas supply forecast, which reflects fluctuating market prices and anticipated
demand. The City's cost of gas is budgeted as allocated charges in citywide departments and funds; therefore,
corresponding increases in various departments' allocated charges are recommended. The impact to the
General Fund in FY 2022 is approximately $82,000; other funds $29,000. A detailed list of impacts by
department and fund can be found in Attachment A, Exhibit 1. (Ongoing costs: $82,000)
0.00 -$ 82,246$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
0.00 -$ $ ( 3,630,711)
GENERAL FUND (102) SUBTOTAL 4.60 2,057,281$ 2,057,281$
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CAPITAL IMPROVEMENT FUNDS
GENERAL FUND CAPITAL IMPROVEMENT FUND (471)
Office of
Transportation
Reclassify Traffic Engineering Lead to Senior Engineer
This action reclassifies of a vacant 1.00 FTE Traffic Engineering-Lead position to a 1.00 FTE
Senior Engineer position in the Engineering Division. The nature of the position has evolved to
require professional certification as an engineer and tasks requiring certification are currently
being performed by another Senior Engineer in the Department, which has led to other duties
being absorbed by other staff. The reclassification will also allow for the position to perform
management administrative duties, management of complex engineering design and
construction projects, and to ensure that the City’s roadways are appropriately signed and
marked, and safe. (Ongoing costs: $16,000)
0.00 -$ (68,781)$
Public Works Streetlight Repair and Installation
This action shifts $75,000 from the Traffic Signal and Intelligent Transportation Systems capital
project (PL-05030) to the Street Lights Improvements capital project (PO-05054). Funding in PO-
05054 was reduced as part of the development of the FY 2022 Capital Budget and the
remaining budget has already been exhausted. Additional funding is needed to fix street light
poles that are damaged due to accidents or must be replaced immediately due to safety issues.
Planned work in PL-05030 will not be completed in FY 2022, so there is capacity to shift funding
between these projects to address the most critical needs related to street lights and traffic
signals. (Ongoing costs: $0)
0.00 -$ -$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
0.00 -$ 68,781$
GENERAL FUND CAPITAL IMPROVEMENT FUND (471) SUBTOTAL 0.00 -$ -$
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 BUDGET
Expenses
ATTACHMENT A
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Department FTE Adjustment Adjustment
ENTERPRISE FUNDS
AIRPORT ENTERPRISE FUND (530)
Public Works Gas Commodity Purchase/Utilities Allocated Charges
Expenses for gas commodity purchases increased by $7.7 million in the Gas Fund. This
adjustment is consistent with the preliminary gas supply forecast, which reflects fluctuating
market prices and anticipated demand. The City's cost of gas is budgeted as allocated charges
in citywide departments and funds; therefore, corresponding increases in various departments'
allocated charges are recommended. The impact to the General Fund in FY 2022 is
approximately $82,000; other funds $29,000. A detailed list of impacts by department and
fund can be found in Attachment A, Exhibit 1. (Ongoing costs: $1,000)
0.00 -$ 1,083$
Public Works Airport Management Software
This action adds funding to purchase software to manage rental and administrative functions
at the airport. The software will provide an interactive platform in which customers can view
their account information, view and pay their invoices and/or report issues with facilities, and
allow staff to streamline their day to day workload, and better track costs of maintenance
projects. This action also recognizes federal grant funding to offset the cost of the software.
(Ongoing costs: $12,000)
0.00 45,000$ 45,000$
Public Works Airport Fleet Tractor
This action adds funding to purchase a tractor at the Airport. The Airport is currently leasing a
tractor to maintain approximately 100 acres of land. Long term the cost of leasing a vehicle is
more expensive than purchasing a tractor, and legally the Airport is obligated by Federal
Aviation Administration standards to maintain the infields and movement areas to be kept free
from vegetation and debris in order to keep signs and lighting free from obstructions. This
action also recognizes federal grant funding to offset the cost of the vehicle. (Ongoing costs:
$4,500)
0.00 69,000$ 69,000$
Public Works Information Technology Reinvestment Actions and Allocated Charges
Expenses for reinvestment actions in the Information Technology Fund cost approximately
$273,000 for staffing support for security/network managment and the City's Geographic
Information System (GIS), updated security software, new records management software, and
updated licensing requirements. The costs of these services are budgeted as allocated charges
in citywide departments and funds; therefore, corresponding increases in various departments’
allocated charges for internal services provided by the Information Technology Department are
recommended. For the General Fund, this action also includes technical corrections for direct
allocations to the Planning and Development Services Department (PDS) to support existing
department-specific technology ($324,000). The impact to the General Fund in FY 2022 is
approximately $432,000; other funds $165,000. A detailed list of impacts by department and
fund can be found in Attachment A, Exhibit 1. (Ongoing costs: $3,000)
0.00 -$ 1,259$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
0.00 -$ (2,342)$
AIRPORT ENTERPRISE FUND (530) SUBTOTAL 0.00 114,000$ 114,000$
ELECTRIC FUND (513 & 523)
Utilities Cooperatively Owned Back-Up Generator (COBUG)
This action increases net expenses to the Electric Fund and decreases revenue to the Vehicle
Replacement and Maintenance (VRM) Fund for year two of the service contract for the
Cooperatively Owned Back-Up Generator (COBUG), as approved by City Council on June 6,
2021 (CMR 12055). Prior to the service contract, all standard maintenance was performed by
City staff and costs were budgeted as allocated charges from the VRM Fund. The current
service model includes a lower level of VRM activity, therefore adjustments include a contract
services expense increase and a decrease in allocated charges in the Electric Fund and a
corresponding revenue decrease in the VRM Fund. (Ongoing costs: $22,000)
0.00 -$ 92,305$
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 BUDGET
Expenses
ATTACHMENT A
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CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 BUDGET
Expenses
ATTACHMENT A
Utilities Net Sales Revenue/Electric Commodity Purchase
This action increases expenses for electric commodity purchase based on market price, load,
supply, and cost projections. The commodity purchase budget is developed from historic
averages and usage trends. This action aligns the budget to better reflect actuals, which had
less hydro-generated electricity and was offset by spot market purchases. Net supply cost
consists of costs incurred from purchasing activities, joint agency debt service, net surplus
energy, and net revenue. The primary drivers of changes in net supply costs in FY 2022 are due
to lower hydro output, which leads to more on the spot market purchases; increases in market
prices; a decrease in California Independent System Operator (CAISO)/Transmission costs due
to anticipated settlement and potential backdated adjustments; and increased regulatory
requirements and higher priced resource adequacy products for calendar year 2022 and
onwards. (Ongoing cost: $0)
0.00 1,558,000$ 8,793,600$
Utilities Gas Commodity Purchase/Utilities Allocated Charges
Expenses for gas commodity purchases increased by $7.7 million in the Gas Fund. This
adjustment is consistent with the preliminary gas supply forecast, which reflects fluctuating
market prices and anticipated demand. The City's cost of gas is budgeted as allocated charges
in citywide departments and funds; therefore, corresponding increases in various departments'
allocated charges are recommended. The impact to the General Fund in FY 2022 is
approximately $82,000; other funds $29,000. A detailed list of impacts by department and
fund can be found in Attachment A, Exhibit 1. (Ongoing costs: $3,000)
0.00 -$ 2,999$
Utilities Tree Line Clearing Contract Adjustment
This action increases contract services expenses in the Electric Fund by $272,000, in
accordance with the five-year contract approved by the City Council in June 2020 (CMR 10883).
This adjustment will fund the remaining anticipated expenses for year two of contract work
planned for clearing trees and other vegetation from the overhead electric distribution system
throughout the City. Clearing vegetation from power lines is an on-going operation necessary
to ensure the City provides safe, reliable power to the City’s utility customers. Clearance
requirements have been established by the California Public Utilities Commission for Investor
Owned Utilities and these requirements have been accepted as the applicable standard for
vegetation clearance in the City of Palo Alto. (Ongoing costs: $1.7 million)
0.00 -$ 272,000$
Utilities Utilities Equity Transfer to the General Fund
This action reduces the equity transfer to the General Fund from the Electric and Gas Funds in
FY 2022. The decrease of $349,000 is the result of lower than anticipated fixed assets and is in
alignment with the FY 2021 Annual Comprehensive Financial Report (ACFR) as of June 30, 2021
(CMR 13501). This alignment reduces transfers from the Electric Fund by $160,000 and the Gas
Fund by $189,000 for a total decrease of $349,000. (Ongoing costs: $0)
0.00 -$ (160,000)$
Utilities Sustainability and Climate Action Plan (S/CAP) Phase I - Electrification Programs
This action increases staffing by net 4.00 FTE in support of the Sustainability and Climate Action
Plan (S/CAP), a Council priority item that includes a goal to achieve an 80% reduction in carbon
emissions from 1990 levels by 2030. Council approved the work plan on December 13, 2021
(CMR 13765) along with a request for staff to return with staffing resource requests to
implement the work plan. To address Council’s request and accelerate elements of S/CAP
initiatives, staff recommends 1.00 FTE Electric Project Coordinators, 3.00 FTE Electric Project
Engineers for increasing workload capacity in the Electric engineering and operations project
management work functions, 1.00 FTE Utilities Programs Services, Manager to focus on
commercial energy efficiency and electrification, and 1.00 FTE Senior Engineer for technical
oversight and scaling up the electrification program. These position additions are offset by the
elimination of 1.00 FTE Metering Technician and 1.00 FTE Power Engineer. This represents
phase one of a multi-phased approach to build capacity in project management, build in-house
resources, and design and implement infrastructure upgrades such as increasing capacity in the
electric distribution grid for electrification of single-family residences (SFR) as a part of S/CAP
initiatives. (Ongoing costs: $842,000)
4.00 -$ 343,192$
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ENTERPRISE FUNDS
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 BUDGET
Expenses
ATTACHMENT A
Utilities Sustainability and Climate Action Plan (S/CAP) Oversight Staffing
This action reclassifies a 0.75 FTE Management Analyst position to a 1.00 FTE Manager
Environmental Control Program and adds a 1.00 FTE Environmental Specialist position. These
positions will provide technical oversight and support of the Council priority S/CAP program. As
discussed at the December 13, 2021 Council meeting (CMR 13765) these positions will address
Council’s request and accelerate elements of S/CAP implementation and coordination as well
as additional work items, such as long-range sustainability planning, increased collaboration
with Department Heads, increased regional collaboration, developing and implementing the
Sustainability Impact Statement requested in the Council Motion, and evaluating the City’s
sustainability work through an equity lens. The costs for these positions will be spread over the
General Fund and Utility and Public Works Enterprise funds. (Ongoing costs: $60,000)
0.34 -$ 24,353$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
0.00 -$ (7,810,449)$
ELECTRIC FUND (513 & 523) SUBTOTAL 4.34 1,558,000$ 1,558,000$
FIBER OPTICS FUND (533)
Utilities Fiber Revenues Adjustment
This action decreases Fiber revenues by a net value of $796,533 to align with anticipated
revenue receipts based on current active accounts. Fiber revenue changes are primarily driven
by new accounts, deleted accounts, or large customers, such as Stanford, moving to different
rate schedule. Fiber revenue consists of fiber backbone provided to internal City departments,
commercial fiber, and industrial fiber. (Ongoing costs: $797,000)
0.00 (796,533)$ -$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
0.00 -$ (796,533)$
FIBER OPTICS FUND (533) SUBTOTAL 0.00 (796,533)$ (796,533)$
GAS FUND (514 & 524)
Utilities Gas Commodity Purchase/Utilities Allocated Charges
This action increases expenses for gas commodity purchase by $7.7 million in the Gas Fund and
aligns revenue and City gas expenses accordingly. This adjustment is consistent with the
preliminary gas supply forecast, which reflects fluctuating market prices and anticipated
demand. Most components of the gas commodity costs behave as a pass-through and are
offset by gas revenues. The cost of gas is budgeted as allocated charges in citywide
departments and funds; therefore, corresponding increases in various departments' allocated
charges are also recommended to offset this expense. The expense impact to the General Fund
in FY 2022 is approximately $82,000; other funds $29,000. A detailed list of impacts by
department and fund can be found in Attachment A, Exhibit 1. (Ongoing costs: $0)
0.00 7,373,134$ 7,373,134$
Utilities Sustainability and Climate Action Plan (S/CAP) Oversight Staffing
This action reclassifies a 0.75 FTE Management Analyst position to a 1.00 FTE Manager
Environmental Control Program and adds a 1.00 FTE Environmental Specialist position. These
positions will provide technical oversight and support of the Council priority S/CAP program. As
discussed at the December 13, 2021 Council meeting (CMR 13765) these positions will address
Council’s request and accelerate elements of S/CAP implementation and coordination as well
as additional work items, such as long-range sustainability planning, increased collaboration
with Department Heads, increased regional collaboration, developing and implementing the
Sustainability Impact Statement requested in the Council Motion, and evaluating the City’s
sustainability work through an equity lens. The costs for these positions will be spread over the
General Fund and Utility and Public Works Enterprise funds. (Ongoing costs: $60,000)
0.34 -$ 24,353$
10.a
Packet Pg. 129
Revenues
Department FTE Adjustment Adjustment
ENTERPRISE FUNDS
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 BUDGET
Expenses
ATTACHMENT A
Utilities Utilities Equity Transfer to the General Fund
This action reduces the equity transfer to the General Fund from the Electric and Gas Funds in
FY 2022. The decrease of $349,000 is the result of lower than anticipated fixed assets and is in
alignment with the FY 2021 Annual Comprehensive Financial Report (ACFR) as of June 30, 2021
(CMR 13501). This alignment reduces transfers from the Electric Fund by $160,000 and the Gas
Fund by $189,000 for a total decrease of $349,000. (Ongoing costs: $0)
0.00 -$ (189,000)$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
0.00 -$ 164,647$
GAS FUND (514 & 524) SUBTOTAL 0.34 7,373,134$ 7,373,134$
REFUSE FUND (525)
Public Works Sustainability and Climate Action Plan (S/CAP) Oversight Staffing
This action reclassifies a 0.75 FTE Management Analyst position to a 1.00 FTE Manager
Environmental Control Program and adds a 1.00 FTE Environmental Specialist position. These
positions will provide technical oversight and support of the Council priority S/CAP program. As
discussed at the December 13, 2021 Council meeting (CMR 13765) these positions will address
Council’s request and accelerate elements of S/CAP implementation and coordination as well
as additional work items, such as long-range sustainability planning, increased collaboration
with Department Heads, increased regional collaboration, developing and implementing the
Sustainability Impact Statement requested in the Council Motion, and evaluating the City’s
sustainability work through an equity lens. The costs for these positions will be spread over the
General Fund and Utility and Public Works Enterprise funds. (Ongoing costs: $18,000)
0.10 -$ 7,163$
Public Works Information Technology Reinvestment Actions and Allocated Charges
Expenses for reinvestment actions in the Information Technology Fund cost approximately
$273,000 for staffing support for security/network managment and the City's Geographic
Information System (GIS), updated security software, new records management software, and
updated licensing requirements. The costs of these services are budgeted as allocated charges
in citywide departments and funds; therefore, corresponding increases in various departments’
allocated charges for internal services provided by the Information Technology Department are
recommended. For the General Fund, this action also includes technical corrections for direct
allocations to the Planning and Development Services Department (PDS) to support existing
department-specific technology ($324,000). The impact to the General Fund in FY 2022 is
approximately $432,000; other funds $165,000. A detailed list of impacts by department and
fund can be found in Attachment A, Exhibit 1. (Ongoing costs: $15,000)
0.00 -$ 7,945$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
0.00 -$ (15,108)$
REFUSE FUND (525) SUBTOTAL 0.10 -$ -$
STORMWATER MANGEMENT FUND (528)
Public Works Sustainability and Climate Action Plan (S/CAP) Oversight Staffing
This action reclassifies a 0.75 FTE Management Analyst position to a 1.00 FTE Manager
Environmental Control Program and adds a 1.00 FTE Environmental Specialist position. These
positions will provide technical oversight and support of the Council priority S/CAP program. As
discussed at the December 13, 2021 Council meeting (CMR 13765) these positions will address
Council’s request and accelerate elements of S/CAP implementation and coordination as well
as additional work items, such as long-range sustainability planning, increased collaboration
with Department Heads, increased regional collaboration, developing and implementing the
Sustainability Impact Statement requested in the Council Motion, and evaluating the City’s
sustainability work through an equity lens. The costs for these positions will be spread over the
General Fund and Utility and Public Works Enterprise funds. (Ongoing costs: $14,000)
0.08 -$ 5,730$
10.a
Packet Pg. 130
Revenues
Department FTE Adjustment Adjustment
ENTERPRISE FUNDS
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 BUDGET
Expenses
ATTACHMENT A
Public Works Information Technology Reinvestment Actions and Allocated Charges
Expenses for reinvestment actions in the Information Technology Fund cost approximately
$273,000 for staffing support for security/network managment and the City's Geographic
Information System (GIS), updated security software, new records management software, and
updated licensing requirements. The costs of these services are budgeted as allocated charges
in citywide departments and funds; therefore, corresponding increases in various departments’
allocated charges for internal services provided by the Information Technology Department are
recommended. For the General Fund, this action also includes technical corrections for direct
allocations to the Planning and Development Services Department (PDS) to support existing
department-specific technology ($324,000). The impact to the General Fund in FY 2022 is
approximately $432,000; other funds $165,000. A detailed list of impacts by department and
fund can be found in Attachment A, Exhibit 1. (Ongoing costs: $12,000)
0.00 -$ 6,219$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
0.00 -$ (11,949)$
STORMWATER MANGEMENT FUND (528) SUBTOTAL 0.08 -$ -$
UTILITIES ADMINISTRATION FUND (521)
Utilities Reclassification Deputy City Attorney to Assistant City Attorney
This action reclassifies two Deputy City Attorney positions to two Assistant City Attorney
positions. This will allow junior level attorneys the opportunity to work on higher level projects
and continue to grow with the City as their years and knowledge increase. The current salary of
the employees in these positions will not change as a result of this reclassification. (Ongoing
costs: $0)
0.00 -$ -$
Utilities Information Technology Reinvestment Actions and Allocated Charges
Expenses for reinvestment actions in the Information Technology Fund cost approximately
$273,000 for staffing support for security/network managment and the City's Geographic
Information System (GIS), updated security software, new records management software, and
updated licensing requirements. The costs of these services are budgeted as allocated charges
in citywide departments and funds; therefore, corresponding increases in various departments’
allocated charges for internal services provided by the Information Technology Department are
recommended. For the General Fund, this action also includes technical corrections for direct
allocations to the Planning and Development Services Department (PDS) to support existing
department-specific technology ($324,000). The impact to the General Fund in FY 2022 is
approximately $432,000; other funds $165,000. A detailed list of impacts by department and
fund can be found in Attachment A, Exhibit 1. (Ongoing costs: $199,000)
0.00 -$ 102,808$
Various Employee Parking Permit Transfer to the University Avenue Parking Fund
This action appropriates $36,600 for the Utility Administration Fund's share of City employee
parking permit in the University Avenue Parking Fund. (Ongoing costs: $6,000)
0.00 -$ 6,298$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
0.00 -$ (109,106)$
UTILITIES ADMINISTRATION FUND (521) SUBTOTAL 0.00 -$ -$
10.a
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Revenues
Department FTE Adjustment Adjustment
ENTERPRISE FUNDS
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 BUDGET
Expenses
ATTACHMENT A
WASTEWATER TREATMENT FUND (526)
Public Works Gas Commodity Purchase/Utilities Allocated Charges
Expenses for gas commodity purchases increased by $7.7 million in the Gas Fund. This
adjustment is consistent with the preliminary gas supply forecast, which reflects fluctuating
market prices and anticipated demand. The City's cost of gas is budgeted as allocated charges
in citywide departments and funds; therefore, corresponding increases in various departments'
allocated charges are recommended. The impact to the General Fund in FY 2022 is
approximately $82,000; other funds $29,000. A detailed list of impacts by department and
fund can be found in Attachment A, Exhibit 1. (Ongoing costs: $4,000)
0.00 -$ 4,039$
Public Works Sustainability and Climate Action Plan (S/CAP) Oversight Staffing
This action reclassifies a 0.75 FTE Management Analyst position to a 1.00 FTE Manager
Environmental Control Program and adds a 1.00 FTE Environmental Specialist position. These
positions will provide technical oversight and support of the Council priority S/CAP program. As
discussed at the December 13, 2021 Council meeting (CMR 13765) these positions will address
Council’s request and accelerate elements of S/CAP implementation and coordination as well
as additional work items, such as long-range sustainability planning, increased collaboration
with Department Heads, increased regional collaboration, developing and implementing the
Sustainability Impact Statement requested in the Council Motion, and evaluating the City’s
sustainability work through an equity lens. The costs for these positions will be spread over the
General Fund and Utility and Public Works Enterprise funds. (Ongoing costs: $85,000)
0.48 -$ 34,381$
Public Works Information Technology Reinvestment Actions and Allocated Charges
Expenses for reinvestment actions in the Information Technology Fund cost approximately
$273,000 for staffing support for security/network managment and the City's Geographic
Information System (GIS), updated security software, new records management software, and
updated licensing requirements. The costs of these services are budgeted as allocated charges
in citywide departments and funds; therefore, corresponding increases in various departments’
allocated charges for internal services provided by the Information Technology Department are
recommended. For the General Fund, this action also includes technical corrections for direct
allocations to the Planning and Development Services Department (PDS) to support existing
department-specific technology ($324,000). The impact to the General Fund in FY 2022 is
approximately $432,000; other funds $165,000. A detailed list of impacts by department and
fund can be found in Attachment A, Exhibit 1. (Ongoing costs: $73,000)
0.00 -$ 37,631$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
0.00 -$ (76,051)$
WASTEWATER TREATMENT FUND (526) SUBTOTAL 0.48 -$ -$
10.a
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Revenues
Department FTE Adjustment Adjustment
INTERNAL SERVICE FUNDS
GENERAL BENEFITS FUND (687)
Non-
Departmental
Charges to Other Funds / Healthcare and Pension Expense
This net-neutral action increases the estimate for charges to other funds by $0.8
million due to staffing restorations approved as part of the FY 2022 Adopted Budget (CMR
12307). During budget hearings, the Finance Committee and City Council recommended
significant adjustments to the FY 2022 Proposed Budget to restore staffing in Community,
Library, Public Safety, and Planning service areas and the administrative staff necessary to
support these functions. The General Benefits Fund acts as a pass-through for pension and
healthcare costs; therefore, this action increases expenditures by a corresponding amount.
(Ongoing costs: $0)
0.00 756,128$ 756,128$
Non-
Departmental
Supplemental Pension Contribution - Transfer from General Fund/Pension Expense
This action increases the revenue estimate and expense appropriation for additional
contributions to the City's irrevocable Section 115 Pension Trust Fund. This brings the total
contributions to $39.3 million ($26.1 million from the General Fund). Staff will work to true up
proportional contributions from other funds as part of the FY 2022 year-end process. (Ongoing
costs: $0)
0.00 2,000,000$ 2,000,000$
GENERAL BENEFITS FUND (687) SUBTOTAL - 756,128$ 756,128$
GENERAL LIABILITIES INSURANCE FUND (689)
Human
Resources
Umbrella Excess Liability Insurance Expense
This action increases the estimate for umbrella excess liability insurance to align
with higher than anticipated premium costs, from $2.8 million to $3.2 million. (Ongoing costs:
$0)
0.00 -$ 480,500$
Human
Resources
Property Loss Insurance Expense
This action increases the estimate for property loss insurance to align
with higher than anticipated premium costs, from $0.3 million to $0.5 million. (Ongoing costs:
$0)
0.00 -$ 220,225$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
0.00 -$ (700,725)$
GENERAL LIABILITIES INSURANCE FUND (689) SUBTOTAL 0.00 -$ -$
INFORMATION TECHNOLOGY FUND (682)
Information
Technology
Security and GIS Administration Staffing
This action appropriates $164,739 for 1.0 FTE Senior Technologist to perform network and
security administration, and 1.0 FTE Senior Technologist to manage the City's geographic
information system (GIS). (Ongoing costs: $406,000)
2.00 -$ 164,739$
Information
Technology
Security Software
This action appropriates $64,600 for the restoration of the data center cloud backup software,
CODE42, which improves security of staff technological devices and data. (Ongoing costs:
$65,000)
0.00 -$ 64,600$
Information
Technology
Citywide Geographinc Information System Licensing
This action appropriates $9,500 for an upgrade of the City's GIS license with FME Safe Software
to allow for multiple users in all City departments. (Ongoing costs: $15,000)
0.00 -$ 9,500$
Information
Technology
Public Records Management Software
This action adds $19,000 in contract expenses for the purchase and initial implementation of a
web-based program, Laserfiche, to serve as a searchable record repository for permanent City
generated records. Implementation will include a searchable, public-facing portal to enhance
public access to City and City council records." (Ongoing costs: $12,000)
0.00 $ - 18,770$
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 BUDGET
Expenses
ATTACHMENT A
10.a
Packet Pg. 133
Revenues
Department FTE Adjustment Adjustment
INTERNAL SERVICE FUNDS
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 BUDGET
Expenses
ATTACHMENT A
Information
Technology
Agenda Management System Software
This action adds $15,000 in contract expenses to replace the City's current public meeting
agenda management system, "MinuteTraq", which is no longer supported. Staff has issued an
Request for Proposals and can implement the new system within FY 2022. The new system will
include workflows, publication, and record-management for all City public meetings. (Ongoing
costs: $30,000)
0.00 $ - 15,000$
Information
Technology
Information Technology Reinvestment Actions and Allocated Charges
This action increases expenses in the Information Technology Fund by $272,609 for staffing
support reinvestments, software, and licensing: 2.00 FTE Senior Technologists to provide
enhanced security/network management and GIS capacity, CODE42 software to improves
security of staff technological devices and data, FME Safe software to allow for multiple GIS
licenses in all City departments, Laserfiche software to serve as a searchable record repository
for permanent City generated records, and contract expenses to replace the City's current
public meeting agenda management system. This action also includes technical corrections for
direct allocations to the Planning and Development Services Department (PDS) to support
existing department-specific technology and the Police and Public Works Departments for
dedicated IT staff. With this adjustment, Development Services continues to be cost neutral.
The costs of these services are budgeted as allocated charges in citywide departments;
therefore, corresponding increases in various departments’ allocated charges for internal
services provided by the Information Technology Department are also recommended to offset
this expense. The impact to the General Fund in FY 2022 is $431,645, other funds is $164,923.
A detailed list of impacts by department and fund can be found in Attachment A, Exhibit 1.
(Ongoing costs: $528,000)
0.00 596,568$ -$
Information
Technology
Employee Parking Permit Transfer to the University Avenue Parking Fund
This action appropriates $36,600 for the Utility Administration Fund's share of City employee
parking permit in the University Avenue Parking Fund based on changes approved by Council in
CMR 11795. (Ongoing costs: $3,000)
0.00 -$ 2,820$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
0.00 -$ 321,139$
INFORMATION TECHNOLOGY FUND (682) SUBTOTAL 2.00 596,568$ 596,568$
RETIREE HEALTH FUND (694)
Non-
Departmental
Supplemental Retiree Healthcare / Other Post Employment Benefit (OPEB) Contribution (for
the FY 2021 period)
This action aligns the expense appropriation for an additional planned contribution of $1.4
million ($0.9 million in the General Fund) to the City's California Employers' Retiree Benefit
Trust (CERBT) Fund. In May 2020, the City Council directed staff to budget retiree healthcare
costs at a more conservative 6.25 percent discount rate and transmit the additional amount as
a discretionary payment to the CERBT Fund (CMR 11284). Though additional funds were
collected from departments in FY 2021, the payment was not made to CERBT before the end of
the fiscal year. Subsequently, staff inadvertently recommended duplicate corrective actions to
appropriate funds for the FY 2021 payment to the CERBT; $1.4 million in the FY 2021 to 2022
Reappropriation process (CMR 12397) and $1.4 million in the first quarter (Q1) FY 2022 update
(CMR 13439). This action corrects that duplication and aligns the appropriation to the planned
contribution amount. (Ongoing costs: $0)
0.00 -$ (1,358,000)$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
0.00 -$ 1,358,000$
RETIREE HEALTH FUND (694) SUBTOTAL 0.00 -$ -$
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Revenues
Department FTE Adjustment Adjustment
INTERNAL SERVICE FUNDS
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 BUDGET
Expenses
ATTACHMENT A
VEHICLE REPLACEMENT & MAINTENANCE FUND (681)
Public Works Gas Commodity Purchase/Utilities Allocated Charges
Expenses for gas commodity purchases increased by $7.7 million in the Gas Fund. This
adjustment is consistent with the preliminary gas supply forecast, which reflects fluctuating
market prices and anticipated demand. The City's cost of gas is budgeted as allocated charges
in citywide departments and funds; therefore, corresponding increases in various departments'
allocated charges are recommended. The impact to the General Fund in FY 2022 is
approximately $82,000; other funds $29,000. A detailed list of impacts by department and
fund can be found in Attachment A, Exhibit 1. (Ongoing costs: $0)
0.00 -$ 20,694$
Public Works Emergency Repair and Replacement (VR-15001)
This action increases the Emergency Repair and Replacement capital project (VR-15001) to
fund the replacement of 2017 Ford Explorer for the Police Department that was totaled in an
accident in FY 2022. VR-15001 only has approximately $40,000 remaining in FY 2022 for any
additional emergency replacement or repair needs. This additional funding will allow Fleet Staff
to purchase a current year model replacement vehicle and return a vehicle to active status
more quickly while retaining funding for any other repair or replacement needs in FY 2022.
(Ongoing costs: $0)
0.00 -$ 75,000$
Public Works Code Enforcement Staffing
This action adds one Code Enforcement Officer position (1.00 FTE) to address code violations,
including leaf blower concerns by the community. As part of the October 25, 2021 Council
Meeting, a recommendation was made to return to Council as part of the Mid-Year Review to
add staff to address code enforcement. Additionally, this action adds one vehicle to the City's
fleet for the officer to be able to execute job duties. (Ongoing costs: $0)
0.00 40,000$ 40,000$
Public Works Cooperatively Owned Back-Up Generator (COBUG)
This action increases net expenses to the Electric Fund and decreases revenue to the Vehicle
Replacement and Maintenance (VRM) Fund for year two of the service contract for the
Cooperatively Owned Back-Up Generator (COBUG), as approved by City Council on June 6,
2021 (CMR 12055). Prior to the service contract, all standard maintenance was performed by
City staff and costs were budgeted as allocated charges from the VRM Fund. The current
service model includes a lower level of VRM activity, therefore adjustments include a contract
services expense increase and a decrease in allocated charges in the Electric Fund and a
corresponding revenue decrease in the VRM Fund. (Ongoing costs: 27,800)
0.00 (27,807)$ -$
Public Works Airport Fleet Tractor
This action adds funding to purchase a tractor at the Airport. The Airport is currently leasing a
tractor to maintain approximately 100 acres of land. Long term the cost of leasing a vehicle is
more expensive than purchasing a tractor, and legally the Airport is obligated by Federal
Aviation Administration standards to maintain the infields and movement areas to be kept free
from vegetation and debris in order to keep signs and lighting free from obstructions. This
action also recognizes federal grant funding to offset the cost of the vehicle. (Ongoing costs:
$0)
0.00 100,000$ 100,000$
Public Works Information Technology Reinvestment Actions and Allocated Charges
Expenses for reinvestment actions in the Information Technology Fund cost approximately
$273,000 for staffing support for security/network managment and the City's Geographic
Information System (GIS), updated security software, new records management software, and
updated licensing requirements. The costs of these services are budgeted as allocated charges
in citywide departments and funds; therefore, corresponding increases in various departments’
allocated charges for internal services provided by the Information Technology Department are
recommended. For the General Fund, this action also includes technical corrections for direct
allocations to the Planning and Development Services Department (PDS) to support existing
department-specific technology ($324,000). The impact to the General Fund in FY 2022 is
approximately $432,000; other funds $165,000. A detailed list of impacts by department and
fund can be found in Attachment A, Exhibit 1. (Ongoing costs: $15,000)
0.00 -$ 8,090$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
0.00 -$ (131,591)$
VEHICLE REPLACEMENT & MAINTENANCE FUND (681) SUBTOTAL 0.00 112,193$ 112,193$
10.a
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Revenues
Department FTE Adjustment Adjustment
INTERNAL SERVICE FUNDS
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 BUDGET
Expenses
ATTACHMENT A
PRINT AND MAIL SERVICES FUND (683)
Administrative
Services
Information Technology Reinvestment Actions and Allocated Charges
Expenses for reinvestment actions in the Information Technology Fund cost approximately
$273,000 for staffing support for security/network managment and the City's Geographic
Information System (GIS), updated security software, new records management software, and
updated licensing requirements. The costs of these services are budgeted as allocated charges
in citywide departments and funds; therefore, corresponding increases in various departments’
allocated charges for internal services provided by the Information Technology Department are
recommended. For the General Fund, this action also includes technical corrections for direct
allocations to the Planning and Development Services Department (PDS) to support existing
department-specific technology ($324,000). The impact to the General Fund in FY 2022 is
approximately $432,000; other funds $165,000. A detailed list of impacts by department and
fund can be found in Attachment A, Exhibit 1. (Ongoing costs: $2,000)
0.00 -$ 971$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
0.00 -$ (971)$
PRINT AND MAIL SERVICES FUND (683) SUBTOTAL 0.00 -$ -$
10.a
Packet Pg. 136
Revenues
Department FTE Adjustment Adjustment
SPECIAL REVENUE FUNDS
UNIVERSITY AVENUE PARKING FUND (236)
Office of
Transportation
Transfer from General Fund
This action recognizes $36,600 in revenue from the General Fund for it's share of City employee
parking permit in the University Avenue Parking Fund. (Ongoing savings: $37,000)
0.00 36,600$ -$
Office of
Transportation
Transfer from Utilities Administration Fund
This action recognizes $6,298 in revenue from the Utility Administration Fund for it's share of City
employee parking permit in the University Avenue Parking Fund. (Ongoing savings: $6,000)
0.00 6,298$ -$
Office of
Transportation
Transfer from Technology Fund
This action recognizes $2,820 in revenue from the Technology Fund for it's share of City employee
parking permit in the University Avenue Parking Fund. (Ongoing savings: $3,000)
0.00 2,820$ -$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
0.00 -$ 45,718$
UNIVERSITY AVENUE PARKING FUND (236) SUBTOTAL 0.00 45,718$ 45,718$
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 BUDGET
Expenses
ATTACHMENT A
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ATTACHMENT A, EXHIBIT 1: Central Adjutments in Various Funds
Fund
Department/
Fund Title Revenue Expense Comments
General Fund Administrative
Services
Information Technology Adjustment $- $ 5,268 Adjustment to allocated charges for technology
services to align with mid-year restorations in
FY 2022.
General Fund City Attorney Information Technology Adjustment $- $ 2,196 Adjustment to allocated charges for technology
services to align with mid-year restorations in
FY 2022.
General Fund City Auditor Information Technology Adjustment $- $ 522 Adjustment to allocated charges for technology
services to align with mid-year restorations in
FY 2022.
General Fund City Clerk Information Technology Adjustment $- $ 785 Adjustment to allocated charges for technology
services to align with mid-year restorations in
FY 2022.
General Fund City Council Information Technology Adjustment $- $ 455 Adjustment to allocated charges for technology
services to align with mid-year restorations in
FY 2022.
General Fund City Manager Information Technology Adjustment $- $ 1,991 Adjustment to allocated charges for technology
services to align with mid-year restorations in
FY 2022.
General Fund Community
Services
Information Technology Adjustment $- $ 17,867 Adjustment to allocated charges for technology
services to align with mid-year restorations in
FY 2022.
General Fund Community
Services
Utilities Commodity Purchase
Adjustments
$- $ 41,012 Adjustment to allocated charges for gas
commodity purchase adjustment in FY 2022.
General Fund Fire Information Technology Adjustment $- $ 21,171 Adjustment to allocated charges for technology
services to align with mid-year restorations in
FY 2022.
General Fund Fire Utilities Commodity Purchase
Adjustments
$- $ 2,457 Adjustment to allocated charges for gas
commodity purchase adjustment in FY 2022.
General Fund Human
Resources
Information Technology Adjustment $- $ 2,266 Adjustment to allocated charges for technology
services to align with mid-year restorations in
FY 2022.
General Fund Library Information Technology Adjustment $- $ 5,305 Adjustment to allocated charges for technology
services to align with mid-year restorations in
FY 2022.
General Fund Library Utilities Commodity Purchase
Adjustments
$- $ 4,076 Adjustment to allocated charges for gas
commodity purchase adjustment in FY 2022.
General Fund Office of
Emergency
Services
Information Technology Adjustment $- $ 855 Adjustment to allocated charges for technology
services to align with mid-year restorations in
FY 2022.
General Fund Office of
Transportation
Information Technology Adjustment $- $ 1,200 Adjustment to allocated charges for technology
services to align with mid-year restorations in
FY 2022.
General Fund Planning and
Development
Services
Information Technology Adjustment $- $ 10,952 Adjustment to allocated charges for technology
services to align with mid-year restorations in
FY 2022.
General Fund Planning and
Development
Services
Information Technology Adjustment $- $ 323,769 Technical correction to technology allocated
charges.
General Fund Police Information Technology Adjustment $- $ 25,435 Adjustment to allocated charges for technology
services to align with mid-year restorations in
FY 2022.
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 BUDGET
GENERAL FUND
Attachment A, Exhibit 1 page 1
10.b
Packet Pg. 138
ATTACHMENT A, EXHIBIT 1: Central Adjutments in Various Funds
Fund
Department/
Fund Title Revenue Expense Comments
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 BUDGET
General Fund Police Information Technology Adjustment $- $ 211,034 Technical correction to technology allocated
charges.
General Fund Public Works Information Technology Adjustment $- $ 11,609 Adjustment to allocated charges for technology
services to align with mid-year restorations in
FY 2022.
General Fund Public Works Information Technology Adjustment $- $ (211,034)Technical correction to technology allocated
charges.
General Fund Public Works Utilities Commodity Purchase
Adjustments
$- $ 34,701 Adjustment to allocated charges for gas
commodity purchase adjustment in FY 2022.
$- $ 513,891
Airport
Enterprise Fund
530 Information Technology Adjustment $- $ 1,259 Adjustment to allocated charges for technology
services to align with mid-year restorations in
FY 2022.
Airport
Enterprise Fund
530 Utilities Commodity Purchase
Adjustments
$- $ 1,083 Adjustment to allocated charges for gas
commodity purchase adjustment in FY 2022.
Electric Supply
Fund
513 Utilities Commodity Purchase
Adjustments
$- $ 1,416 Adjustment to allocated charges for gas
commodity purchase adjustment in FY 2022.
Electric Fund 523 Utilities Commodity Purchase
Adjustments
$- $ 1,583 Adjustment to allocated charges for gas
commodity purchase adjustment in FY 2022.
Refuse Fund 525 Information Technology Adjustment $- $ 7,945 Adjustment to allocated charges for technology
services to align with mid-year restorations in
FY 2022.
Stormwater
Management
Fund
528 Information Technology Adjustment $- $ 6,219 Adjustment to allocated charges for technology
services to align with mid-year restorations in
FY 2022.
Utilities
Administration
Fund
521 Information Technology Adjustment $- $ 102,808 Adjustment to allocated charges for technology
services to align with mid-year restorations in
FY 2022.
Wastewater
Treatment Fund
526 Information Technology Adjustment $- $ 37,631 Adjustment to allocated charges for technology
services to align with mid-year restorations in
FY 2022.
Wastewater
Treatment Fund
526 Utilities Commodity Purchase
Adjustments
$- $ 4,039 Adjustment to allocated charges for gas
commodity purchase adjustment in FY 2022.
$- $ 163,982
Printing &
Mailing Services
Fund
683 Information Technology Adjustment $- $ 971 Adjustment to allocated charges for technology
services to align with mid-year restorations in
FY 2022.
Vehicle
Replacement &
Maintenance
Fd
681 Information Technology Adjustment $- $ 8,090 Adjustment to allocated charges for technology
services to align with mid-year restorations in
FY 2022.
Vehicle
Replacement &
Maintenance
Fd
681 Utilities Commodity Purchase
Adjustments
$- $ 20,694 Adjustment to allocated charges for gas
commodity purchase adjustment in FY 2022.
$- $ 29,755
TOTAL ADJUSTMENT $-$ 707,628
ENTERPRISE FUNDS SUBTOTAL
INTERNAL SERVICE FUNDS
INTERNAL SERVICE FUNDS SUBTOTAL
GENERAL FUND SUBTOTAL
ENTERPRISE FUNDS
Attachment A, Exhibit 1 page 2
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ATTACHMENT B 1
Attachment B provides a comprehensive list of all staffing adjustments since FY 2022
budget adoption. A restated Table of Organization can be found below, which includes
all full-time adjustments. These changes include:
1.CMR 13439 Preliminary Q1 FY 2022 Financial Status in which 4.00 Full-Time
Equivalent (FTE) were added:
a.2.00 FTE Assistant to the City Manager
b.1.00 FTE Administrative Associate III
c.1.00 FTE Communications Manager
2.CMR 13643 Staffing for Adequate Fire and Emergency Response (SAFER) Grant in
which 5.00 FTE Firefighters were added in the Fire Department;
3.CMR 13801 FY 2022 Mid-Year Budget Review in which net 11.00 FTE full-time and
0.94 FTE part-time positions are recommended. Position additions,
reclassifications and realignments include:
a.Reclassify 2.00 FTE Deputy City Attorney to 2.00 FTE Assistant City
Attorney
b.Add 0.75 FTE Junior Museum and Zoo Educator, offset by net 0.50 FTE
Instructor II - H part-time staffing eliminations
c.Add 0.48 FTE Arts & Sciences Professional I - H
d.Add 1.00 FTE Deputy Director of Technical Services
e.Add 1.00 FTE Human Resources Technician
f.Add 0.96 FTE Management Specialist, comprised of two 0.48 FTE positions
g.Add 2.00 FTE Senior Technologist
h.Reclassify 1.00 FTE Traffic Engineering-Lead to a 1.00 FTE Senior Engineer
i.Add 1.00 FTE Code Enforcement Officer
j.Add 1.00 FTE Environmental Specialist
k.Reclassify 0.75 FTE Management Analyst to a 1.00 FTE Manager
Environmental Control Program
l.Reclassify 1.00 FTE Metering Technician to a 1.00 FTE Electric Project
Coordinator
m.Add 3.00 FTE Electric Project Engineer, offset by the reduction of 1.00 FTE
Power Engineer
n.Add 1.00 FTE Utilities Program Services Manager
o.Add 1.00 FTE Senior Engineer
Attachment B 10.c
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2 ATTACHMENT B
Table of Organization
FY 2019
Actuals
FY 2020
Actuals
FY 2021
Adopted
Budgeta
FY 2022
Amended
Budget
FY 2022
Change FTE
FY 2022
Change %
General Fund
Administrative Services
Account Specialist 4.63 4.63 3.13 4.13 1.00 31.9%
Account Specialist (Freeze)——1.50 —(1.50)(100.0)%
Account Specialist-Lead 3.45 3.45 3.45 3.45 ——%
Accountant 3.00 3.00 3.00 2.00 (1.00)(33.3)%
Administrative Assistant 1.00 1.00 1.00 1.00 ——%
Administrative Associate II 1.00 1.00 0.50 0.50 ——%
Administrative Associate II (Freeze)——0.50 —(0.50)(100.0)%
Administrative Associate III 1.00 1.00 1.00 1.00 ——%
Assistant Director Administrative Services 1.65 1.65 1.65 1.65 ——%
Buyer 1.00 1.00 1.00 2.00 1.00 100.0%
Chief Procurement Officer 1.00 1.00 1.00 1.00 ——%
Contracts Administrator 2.70 2.70 2.30 1.70 (0.60)(26.0)%
Contracts Administrator (Freeze)——0.40 —(0.40)(100.0)%
Director Administrative Services/CFO 0.80 0.80 0.80 0.80 ——%
Director Office of Management and Budget 1.00 1.00 —1.00 1.00 —%
Director Office of Management and Budget
(Freeze)
——1.00 —(1.00)(100.0)%
Management Analyst 1.00 2.00 2.00 2.00 ——%
Manager Budget 2.00 2.00 2.00 2.00 ——%
Manager Real Property 1.00 1.00 1.00 1.00 ——%
Manager Revenue Collections 0.62 0.62 0.62 0.62 ——%
Manager Treasury, Debt & Investments 0.60 0.60 0.60 0.60 ——%
Manager, Finance 1.00 1.00 1.00 1.00 ——%
Payroll Analyst 2.00 2.00 2.00 2.00 ——%
Performance Auditor II (Freeze)——1.00 —(1.00)(100.0)%
Senior Accountant 3.00 3.00 3.00 3.00 ——%
Senior Buyer 1.00 1.00 1.00 1.00 ——%
Senior Management Analyst 2.30 2.30 2.30 2.30 ——%
Storekeeper 1.00 1.00 1.00 1.00 ——%
Storekeeper-Lead 0.20 0.20 0.20 0.20 ——%
Warehouse Supervisor 0.20 0.20 0.20 0.20 ——%
Total Administrative Services 38.15 39.15 40.15 37.15 (3.00)(7.5)%
Attachment B 10.c
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ATTACHMENT B 3
City Attorney
Assistant City Attorney***3.00 3.00 3.00 4.00 1.00 100.0%
Chief Assistant City Attorney 1.00 1.00 1.00 1.00 ——%
City Attorney 1.00 1.00 1.00 1.00 ——%
Claims Investigator 1.00 1.00 1.00 1.00 ——%
Deputy City Attorney***1.00 1.00 1.00 —(1.00)(100.0)%
Legal Fellow 1.00 1.00 0.50 1.00 0.50 100.0%
Legal Fellow (Freeze)——0.50 —(0.50)(100.0)%
Secretary to City Attorney 1.00 1.00 1.00 1.00 ——%
Senior Management Analyst 1.00 1.00 1.00 1.00 ——%
Total City Attorney 10.00 10.00 10.00 10.00 ——%
City Auditor
City Auditor 1.00 1.00 1.00 —(1.00)(100.0)%
Performance Auditor I 1.00 —————%
Performance Auditor II 1.00 2.00 ————%
Senior Performance Auditor 1.00 1.00 2.00 —(2.00)(100.0)%
Total City Auditor 4.00 4.00 3.00 —(3.00)(100.0)%
City Clerk
Administrative Associate III 2.00 2.00 2.00 2.00 ——%
Assistant City Clerk 1.00 1.00 1.00 1.00 ——%
City Clerk 1.00 1.00 1.00 1.00 ——%
Deputy City Clerk 1.00 1.00 1.00 1.00 ——%
Total City Clerk 5.00 5.00 5.00 5.00 ——%
City Manager
Administrative Assistant 1.00 2.00 2.00 2.00 ——%
Administrative Associate III 1.00 —————%
Assistant City Manager —1.00 1.00 1.00 ——%
Assistant City Manager/Utilities General
Manager
0.25 —————%
Assistant to the City Manager***2.00 2.00 1.00 3.00 2.00 200.0%
Assistant to the City Manager (Freeze)——1.00 —(1.00)(100.0)%
Chief Communications Officer 1.00 1.00 1.00 1.00 ——%
Chief Sustainability Officer 1.00 —————%
City Manager 1.00 1.00 1.00 1.00 ——%
Table of Organization
FY 2019
Actuals
FY 2020
Actuals
FY 2021
Adopted
Budgeta
FY 2022
Amended
Budget
FY 2022
Change FTE
FY 2022
Change %
Attachment B 10.c
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4 ATTACHMENT B
Deputy City Manager 2.00 1.00 1.00 1.00 ——%
Executive Assistant to the City Manager 1.00 1.00 1.00 1.00 ——%
Management Analyst 0.75 0.75 ————%
Manager Communications 1.00 1.00 1.00 1.00 ——%
Total City Manager 12.00 10.75 10.00 11.00 1.00 10.0%
Community Services
Administrative Assistant 1.00 1.00 1.00 1.00 ——%
Administrative Associate III 1.00 1.00 ————%
Administrative Associate III (Freeze)——1.00 —(1.00)(100.0)%
Assistant Director Community Services 2.00 2.00 1.00 1.00 ——%
Assistant Director Community Services (Freeze)——1.00 —(1.00)(100.0)%
Building Serviceperson 1.25 1.25 1.00 1.00 ——%
Building Serviceperson-Lead 0.60 0.60 0.60 0.60 ——%
Coordinator Recreation Programs 3.00 4.00 4.00 4.00 ——%
Director Community Services 1.00 1.00 1.00 1.00 ——%
Division Manager Open Space, Parks and Golf 1.00 1.00 ————%
Heavy Equipment Operator 0.07 0.07 0.07 —(0.07)(100.0)%
Inspector, Field Services 2.00 2.00 2.00 2.00 ——%
Junior Museum & Zoo Educator***3.60 3.60 3.25 4.00 0.75 23.1%
Junior Museum & Zoo Educator (Freeze)——0.35 —(0.35)(100.0)%
Management Analyst 1.00 1.00 1.00 1.00 ——%
Management Assistant 1.00 1.00 1.00 1.00 ——%
Manager Community Services 5.00 5.00 4.00 5.00 1.00 25.0%
Manager Community Services (Freeze)——1.00 —(1.00)(100.0)%
Manager Community Services Senior Program 4.00 4.00 4.00 4.00 ——%
Manager Human Services 1.00 1.00 1.00 1.00 ——%
Park Maintenance Person 6.00 6.00 6.00 6.00 ——%
Park Maintenance-Lead 1.00 1.00 1.00 1.00 ——%
Park Ranger 5.00 5.00 5.00 5.00 ——%
Parks/Golf Crew-Lead 2.00 2.00 2.00 2.00 ——%
Producer Arts/Science Program 11.00 11.00 10.25 11.00 0.75 (12.0)%
Producer Arts/Science Program (Freeze)——1.75 —(1.75)(100.0)%
Program Assistant I 8.00 8.00 3.00 3.00 ——%
Program Assistant I (Freeze)——4.00 —(4.00)(100.0)%
Table of Organization
FY 2019
Actuals
FY 2020
Actuals
FY 2021
Adopted
Budgeta
FY 2022
Amended
Budget
FY 2022
Change FTE
FY 2022
Change %
Attachment B 10.c
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ATTACHMENT B 5
Program Assistant II 4.00 3.00 4.00 4.00 ——%
Project Manager 0.10 0.10 0.10 0.10 ——%
Senior Management Analyst 1.00 1.00 1.00 1.00 ——%
Sprinkler System Representative 4.00 4.00 4.00 4.00 ——%
Superintendent Community Services 2.00 2.00 2.00 2.00 ——%
Superintendent Recreation 1.00 1.00 ————%
Superintendent Recreation (Freeze)——1.00 —(1.00)(100.0)%
Theater Specialist 2.00 2.00 2.00 2.00 ——%
WGW Heavy Equipment Operator ———0.07 0.07 —%
Total Community Services 75.62 75.62 75.37 67.77 (7.60)(10.1)%
Fire
40-Hour Training Battalion Chief 1.00 1.00 1.00 1.00 ——%
40-Hour Training Captain 1.00 1.00 —1.00 1.00 100.0%
40-Hour Training Captain (Freeze)——1.00 —(1.00)(100.0)%
Administrative Assistant 1.00 1.00 1.00 1.00 ——%
Administrative Associate II 2.20 2.20 1.20 2.20 1.00 83.3%
Administrative Associate II (Freeze)——1.00 —(1.00)(100.0)%
Battalion Chief 3.00 3.00 3.00 3.00 ——%
Business Analyst 0.80 0.80 0.80 0.80 ——%
Deputy Chief/Fire Marshal 0.05 0.05 0.05 0.05 ——%
Deputy Director Technical Services Division***0.20 0.20 —0.20 0.20 100.0%
Deputy Director Technical Services Division
(Freeze)
——0.20 —(0.20)(100.0)%
Deputy Fire Chief 2.00 2.00 2.00 1.00 (1.00)(50.0)%
Emergency Medical Service Director 1.00 1.00 1.00 1.00 ——%
Emergency Medical Services Data Specialist 1.00 1.00 1.00 1.00 ——%
Fire Apparatus Operator 26.00 26.00 26.00 26.00 ——%
Fire Captain 21.00 21.00 21.00 20.00 (1.00)(4.8)%
Fire Chief 1.00 1.00 1.00 1.00 ——%
Fire Fighter***34.00 34.00 29.00 34.00 5.00 17.2%
Fire Fighter (Freeze)——5.00 —(5.00)(100.0)%
Fire Inspector 0.80 0.80 0.40 0.40 ——%
Fire Inspector (Freeze)——0.40 —(0.40)(100.0)%
Geographic Information System Specialist 0.50 0.50 0.50 0.50 ——%
Hazardous Materials Inspector 0.30 0.30 0.30 0.30 ——%
Table of Organization
FY 2019
Actuals
FY 2020
Actuals
FY 2021
Adopted
Budgeta
FY 2022
Amended
Budget
FY 2022
Change FTE
FY 2022
Change %
Attachment B 10.c
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6 ATTACHMENT B
Senior Management Analyst 1.00 1.00 1.00 1.00 ——%
Total Fire 97.85 97.85 97.85 95.45 (2.40)(2.5)%
Human Resources
Assistant Director Human Resources 1.00 1.00 1.00 1.00 ——%
Director Human Resources/CPO 1.00 1.00 1.00 1.00 ——%
Human Resources Representative 3.00 3.00 2.50 2.00 (0.50)(20.0)%
Human Resources Representative (Freeze)——0.50 —(0.50)(100.0)%
Human Resources Technician***4.00 4.00 3.50 4.00 0.50 14.3%
Human Resources Technician (Freeze)——0.50 —(0.50)(100.0)%
Manager Employee Benefits 1.00 1.00 1.00 1.00 ——%
Manager Employee Relations 1.00 1.00 1.00 1.00 ——%
Senior Human Resources Administrator 3.00 3.00 3.00 3.00 ——%
Senior Management Analyst 2.00 2.00 2.00 2.00 ——%
Total Human Resources 16.00 16.00 16.00 15.00 (1.00)(6.3)%
Library
Administrative Associate III 1.00 1.00 ————%
Administrative Associate III (Freeze)——1.00 —(1.00)(100.0)%
Assistant Director Library Services 1.00 1.00 ————%
Assistant Director Library Services (Freeze)——1.00 —(1.00)(100.0)%
Business Analyst 1.00 1.00 1.00 1.00 ——%
Coordinator Library Programs 1.00 1.00 1.00 1.00 ——%
Director Libraries 1.00 1.00 1.00 1.00 ——%
Division Head Library Services 1.00 1.00 1.00 1.00 ——%
Librarian 7.00 6.00 6.00 6.00 ——%
Library Associate 7.00 7.00 6.00 6.00 ——%
Library Associate (Freeze)——1.00 —(1.00)(100.0)%
Library Specialist 11.50 11.50 10.50 10.50 ——%
Library Specialist (Freeze)——1.00 —(1.00)(100.0)%
Management Analyst 1.00 1.00 1.00 1.00 ——%
Manager Library Services 4.00 3.00 3.00 3.00 ——%
Senior Librarian 9.00 8.00 6.00 6.00 ——%
Senior Librarian (Freeze)——2.00 —(2.00)(100.0)%
Supervising Librarian 2.00 4.00 4.00 4.00 ——%
Total Library 47.50 46.50 46.50 40.50 (6.00)(12.9)%
Table of Organization
FY 2019
Actuals
FY 2020
Actuals
FY 2021
Adopted
Budgeta
FY 2022
Amended
Budget
FY 2022
Change FTE
FY 2022
Change %
Attachment B 10.c
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ATTACHMENT B 7
Office of Emergency Services
Director Office of Emergency Services 1.00 1.00 1.00 1.00 ——%
Office of Emergency Services Coordinator 1.00 1.00 1.00 1.00 ——%
Program Assistant II 1.00 1.00 ————%
Program Assistant II (Freeze)——1.00 —(1.00)(100.0)%
Total Office of Emergency Services 3.00 3.00 3.00 2.00 (1.00)(33.3)%
Office of Transportationb
Administrative Assistant —0.50 0.50 0.60 0.10 20.0%
Administrative Associate III 0.30 —————%
Associate Engineer 0.65 0.30 0.30 0.35 0.05 16.7%
Associate Planner 0.24 0.30 0.45 0.40 (0.05)(11.1)%
Chief Transportation Official 0.55 0.70 0.70 0.70 ——%
Coordinator Transportation Systems
Management
0.74 1.25 1.25 0.65 (0.60)(48.0)%
Management Analyst 0.02 0.50 0.50 0.50 ——%
Parking Operations-Lead 0.10 ——0.05 0.05 —%
Project Engineer 0.50 0.45 0.45 0.25 (0.20)(44.4)%
Senior Engineer***—0.20 0.20 0.55 0.35 175.0%
Senior Planner 0.28 0.50 0.50 0.15 (0.35)(70.0)%
Traffic Engineering-Lead***0.65 0.35 0.35 —(0.35)100.0%
Transportation Planning Manager 0.36 1.15 1.15 1.00 (0.15)(13.0)%
Total Office of Transportation 4.39 6.20 6.35 5.20 (1.15)(18.1)%
Planning and Development Servicesc
Administrative Assistant 2.00 1.00 1.00 1.00 ——%
Administrative Associate I 1.00 1.00 1.00 1.00 ——%
Administrative Associate II 2.80 2.80 2.80 2.80 ——%
Administrative Associate III***3.29 4.00 4.00 4.00 ——%
Assistant Chief Building Official 1.00 1.00 1.00 1.00 ——%
Assistant Director PCE 1.00 1.00 1.00 1.00 ——%
Associate Engineer 0.02 0.22 0.20 —(0.20)(100.0)%
Associate Planner 3.03 3.15 3.00 3.25 0.25 8.3%
Building Inspector Specialist 4.00 4.00 6.00 6.00 ——%
Building/Planning Technician 3.00 3.00 2.00 2.00 ——%
Building/Planning Technician (Freeze)——1.00 —(1.00)(100.0)%
Table of Organization
FY 2019
Actuals
FY 2020
Actuals
FY 2021
Adopted
Budgeta
FY 2022
Amended
Budget
FY 2022
Change FTE
FY 2022
Change %
Attachment B 10.c
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8 ATTACHMENT B
Business Analyst 1.00 —————%
Chief Building Official 1.00 1.00 1.00 1.00 ——%
Chief Planning Official 1.00 1.00 1.00 1.00 ——%
Chief Transportation Official 0.09 —————%
Code Enforcement Officer***2.00 2.00 —1.00 1.00 100.0%
Code Enforcement Officer (Freeze)——2.00 —(2.00)(100.0)%
Code Enforcement-Lead 1.00 1.00 1.00 1.00 ——%
Deputy Chief/Fire Marshal 0.80 0.80 0.80 0.80 ——%
Development Project Coordinator II 2.00 2.00 2.00 2.00 ——%
Development Project Coordinator III 3.00 3.00 3.00 3.00 ——%
Development Services Director 1.00 —————%
Director Planning/Community Environment 1.00 1.00 1.00 1.00 ——%
Engineer 0.64 0.64 0.52 0.52 ——%
Engineering Technician III 1.78 1.78 1.50 1.50 ——%
Fire Inspector 3.20 3.20 1.60 1.60 ——%
Fire Inspector (Freeze)——1.60 —(1.60)(100.0)%
Hazardous Materials Inspector 1.60 1.60 1.60 1.60 ——%
Industrial Waste Inspector 0.01 0.01 ————%
Industrial Waste Investigator 0.35 0.35 0.35 0.35 ——%
Inspector, Field Services 0.68 0.68 0.68 0.68 ——%
Landscape Architect Park Planner 0.50 0.50 0.50 0.50 ——%
Management Analyst 1.79 0.01 ————%
Manager Development Center 1.00 —————%
Manager Environmental Control Program 0.10 0.10 ————%
Manager Planning 3.00 5.00 4.00 4.00 ——%
Manager Urban Forestry 0.04 0.04 ————%
Planner 4.00 4.00 4.00 4.00 ——%
Planning Division Manager 1.00 —————%
Principal Management Analyst —1.00 ————%
Principal Planner 1.00 2.00 1.00 1.00 ——%
Principal Planner (Freeze)——1.00 —(1.00)(100.0)%
Program Assistant —1.00 ————%
Program Assistant I (Freeze)——1.00 —(1.00)(100.0)%
Project Engineer 0.33 0.13 0.10 —(0.10)(100.0)%
Senior Business Analyst —1.00 1.00 1.00 ——%
Table of Organization
FY 2019
Actuals
FY 2020
Actuals
FY 2021
Adopted
Budgeta
FY 2022
Amended
Budget
FY 2022
Change FTE
FY 2022
Change %
Attachment B 10.c
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ATTACHMENT B 9
Senior Engineer***0.46 0.46 0.40 0.45 0.05 12.5%
Senior Industrial Waste Investigator 0.01 0.01 ————%
Senior Management Analyst 1.88 2.00 2.00 2.00 ——%
Senior Planner 3.60 3.60 2.60 3.65 1.05 40.0%
Senior Planner (Freeze)——1.00 —(1.00)(100.0)%
Supervisor Inspection and Surveying 0.27 0.27 0.25 0.25 ——%
Traffic Engineering-Lead***—0.10 0.10 —(0.10)(100.0)%
Transportation Planning Manager 0.05 ——0.05 0.05 —%
Total Planning and Development Services 62.32 62.45 61.60 56.00 (5.60)(9.1)%
Police
Administrative Assistant 1.00 1.00 1.00 1.00 ——%
Administrative Associate II 3.00 3.00 2.00 2.00 ——%
Administrative Associate II (Freeze)——1.00 —(1.00)(100.0)%
Animal Control Officer 3.00 3.00 2.00 2.00 ——%
Animal Control Officer (Freeze)——1.00 —(1.00)(100.0)%
Animal Control Officer-Lead 1.00 1.00 1.00 1.00 ——%
Animal Services Specialist II 2.00 —————%
Assistant Police Chief 1.00 1.00 1.00 1.00 ——%
Business Analyst 1.20 1.20 1.20 1.20 ——%
Code Enforcement Officer 1.00 1.00 1.00 1.00 ——%
Communications Manager 1.00 1.00 ————%
Communications Manager (Freeze)——1.00 —(1.00)(100.0)%
Communications Technician 1.00 1.00 ————%
Communications Technician (Freeze)——1.00 —(1.00)(100.0)%
Community Service Officer 7.50 7.50 5.63 5.63 ——%
Community Service Officer (Freeze)——1.87 —(1.87)(100.0)%
Court Liaison Officer 1.00 1.00 1.00 1.00 ——%
Crime Analyst 1.00 1.00 1.00 1.00 ——%
Deputy Director Technical Services Division***0.80 0.80 —0.80 0.80 100.0%
Deputy Director Technical Services Division
(Freeze)
——0.80 —(0.80)(100.0)%
Geographic Information System Specialist 0.50 0.50 0.50 0.50 ——%
Police Agent 19.00 19.00 19.00 19.00 ——%
Police Captain 2.00 2.00 2.00 2.00 ——%
Police Chief 1.00 1.00 1.00 1.00 ——%
Table of Organization
FY 2019
Actuals
FY 2020
Actuals
FY 2021
Adopted
Budgeta
FY 2022
Amended
Budget
FY 2022
Change FTE
FY 2022
Change %
Attachment B 10.c
Packet Pg. 148
10 ATTACHMENT B
Police Lieutenant 5.00 5.00 4.00 4.00 ——%
Police Lieutenant (Freeze)——1.00 —(1.00)(100.0)%
Police Officer 50.00 50.00 39.00 39.00 ——%
Police Officer (Freeze)——11.00 —(11.00)(100.0)%
Police Records Specialist II 6.00 6.00 6.00 6.00 ——%
Police Records Specialist-Lead 1.00 1.00 1.00 1.00 ——%
Police Sergeant 14.00 14.00 14.00 14.00 ——%
Program Assistant II 1.00 1.00 1.00 1.00 ——%
Property Evidence Technician 2.00 2.00 2.00 2.00 ——%
Public Safety Communications Manager***1.00 1.00 —1.00 1.00 100.0%
Public Safety Communications Manager
(Freeze)
——1.00 —(1.00)(100.0)%
Public Safety Dispatcher 16.00 16.00 12.00 12.00 ——%
Public Safety Dispatcher (Freeze)——4.00 —(4.00)(100.0)%
Public Safety Dispatcher-Lead 4.00 4.00 4.00 4.00 ——%
Public Safety Program Manager 2.00 2.00 2.00 1.00 (1.00)(50.0)%
Senior Management Analyst 1.00 1.00 1.00 1.00 ——%
Superintendent Animal Services 1.00 —————%
Veterinarian 1.00 —————%
Veterinarian Technician 2.00 —————%
Total Police 155.00 149.00 149.00 126.13 (22.87)(15.3)%
Public Works
Administrative Assistant 1.00 1.00 1.00 0.50 (0.50)(50.0)%
Administrative Associate I 0.60 0.10 0.10 —(0.10)(100.0)%
Administrative Associate II 2.65 2.65 2.65 2.65 ——%
Administrative Associate III 0.01 0.01 0.01 —(0.01)(100.0)%
Assistant Director Public Works 0.87 0.73 0.73 0.73 ——%
Associate Engineer 0.30 —————%
Building Serviceperson-Lead 1.00 1.00 1.00 1.00 ——%
Cement Finisher 2.00 2.00 2.00 2.00 ——%
Cement Finisher-Lead 0.26 0.26 0.26 0.26 ——%
Coordinator Public Works Projects 1.50 1.50 1.50 1.50 ——%
Director Public Works/City Engineer 1.00 1.00 1.00 1.00 ——%
Electrician 0.80 0.80 0.80 0.80 ——%
Engineer 0.66 0.36 0.48 0.48 ——%
Table of Organization
FY 2019
Actuals
FY 2020
Actuals
FY 2021
Adopted
Budgeta
FY 2022
Amended
Budget
FY 2022
Change FTE
FY 2022
Change %
Attachment B 10.c
Packet Pg. 149
ATTACHMENT B 11
Engineering Technician III 1.47 1.47 1.75 1.75 ——%
Environmental Specialist***———0.33 0.33 100.0%
Equipment Operator 2.46 2.46 2.46 2.46 ——%
Facilities Carpenter 1.00 1.00 1.00 1.00 ——%
Facilities Maintenance-Lead 1.85 1.85 1.85 1.85 ——%
Facilities Painter 1.75 1.75 1.75 1.75 ——%
Facilities Technician 4.05 4.05 4.05 4.05 ——%
Heavy Equipment Operator 2.33 2.33 2.33 2.10 (0.23)(9.9)%
Heavy Equipment Operator-Lead 0.85 0.85 0.85 0.85 ——%
Inspector, Field Services 0.11 0.11 0.11 0.11 ——%
Landscape Architect Park Planner 0.60 0.60 0.60 0.60 ——%
Management Analyst***0.70 0.70 1.45 0.70 (0.75)51.7%
Manager Environmental Control Program***———0.33 0.33 100.0%
Manager Facilities 0.90 0.90 0.90 0.90 ——%
Manager Maintenance Operations 1.20 1.20 1.20 1.20 ——%
Manager Urban Forestry 0.96 0.96 1.00 1.00 ——%
Manager Watershed Protection 0.05 0.05 0.05 0.05 ——%
Project Engineer 0.50 —————%
Project Manager 2.65 2.65 2.00 2.00 ——%
Project Manager (Freeze)——0.65 —(0.65)(100.0)%
Senior Engineer 0.79 0.59 0.60 0.60 ——%
Senior Management Analyst 1.11 1.11 1.11 1.11 ——%
Senior Project Manager 0.10 —————%
Supervisor Inspection and Surveying 0.10 0.10 0.10 0.10 ——%
Surveyor, Public Works 0.33 0.33 0.33 0.33 ——%
Traffic Controller Maintainer I 1.94 1.94 1.94 1.94 ——%
Traffic Controller Maintainer II 2.00 2.00 2.00 1.00 (1.00)(50.0)%
Tree Maintenance Person 1.00 1.00 1.00 1.00 ——%
Tree Trim/Line Clear 7.00 7.00 7.00 7.00 ——%
Tree Trim/Line Clear-Lead 1.00 1.00 1.00 1.00 ——%
WGW Heavy Equipment Operator ———0.23 0.23 —%
Total Public Works 51.45 49.41 50.61 48.26 (2.35)(4.6)%
Total General Fund 582.28 574.93 574.43 519.46 (54.97)(9.6)%
Table of Organization
FY 2019
Actuals
FY 2020
Actuals
FY 2021
Adopted
Budgeta
FY 2022
Amended
Budget
FY 2022
Change FTE
FY 2022
Change %
Attachment B 10.c
Packet Pg. 150
12 ATTACHMENT B
Enterprise Fund
Public Works
Account Specialist 0.30 0.30 0.30 —(0.30)(100.0)%
Accountant 0.40 0.40 0.40 0.70 0.30 75.0%
Administrative Associate I 0.10 0.10 0.10 —(0.10)(100.0)%
Administrative Associate II 2.15 2.15 2.15 2.15 ——%
Administrative Associate III 0.10 0.10 0.10 0.20 0.10 100.0%
Assistant Director Public Works 1.30 1.30 1.30 1.30 ——%
Assistant Manager WQCP 2.00 2.00 2.00 2.00 ——%
Associate Engineer 2.99 2.99 3.00 3.00 ——%
Chemist 3.00 3.00 3.00 2.00 (1.00)(33.3)%
Deputy Chief/Fire Marshal 0.07 0.07 0.07 0.07 ——%
Electrician 3.00 3.00 3.00 3.00 ——%
Electrician-Lead 2.00 2.00 2.00 2.00 ——%
Engineer 0.90 0.90 0.90 0.90 ——%
Engineering Technician III 0.25 0.25 0.25 0.25 ——%
Environmental Specialist***2.00 2.00 2.00 2.33 0.33 16.5%
Equipment Operator 0.54 0.54 0.54 0.54 ——%
Facilities Maintenance Lead 1.00 1.00 1.00 1.00 ——%
Facilities Technician 1.50 1.50 1.50 1.50 ——%
Hazardous Materials Inspector 0.04 0.04 0.04 0.04 ——%
Heavy Equipment Operator 0.90 0.90 0.90 0.90 ——%
Heavy Equipment Operator-Lead 1.15 1.15 1.15 1.15 ——%
Industrial Waste Inspector 2.99 2.99 3.00 3.00 ——%
Industrial Waste Investigator 1.15 1.15 1.15 1.15 ——%
Laboratory Technician WQC 3.00 3.00 3.00 3.00 ——%
Landfill Technician 1.00 1.00 1.00 1.00 ——%
Management Analyst 2.30 2.30 2.30 2.30 ——%
Manager Airport 1.00 1.00 1.00 1.00 ——%
Manager Environmental Control Program***4.90 4.90 5.00 5.33 0.33 6.6%
Manager Laboratory Services 1.00 1.00 1.00 1.00 ——%
Manager Maintenance Operations 1.96 1.96 1.96 1.96 ——%
Manager Solid Waste 1.00 1.00 1.00 1.00 ——%
Manager Water Quality Control Plant 1.00 1.00 1.00 1.00 ——%
Table of Organization
FY 2019
Actuals
FY 2020
Actuals
FY 2021
Adopted
Budgeta
FY 2022
Amended
Budget
FY 2022
Change FTE
FY 2022
Change %
Attachment B 10.c
Packet Pg. 151
ATTACHMENT B 13
Manager Watershed Protection 0.95 0.95 0.95 0.95 ——%
Plant Mechanic 7.00 7.00 7.00 7.00 ——%
Program Assistant I 1.00 1.00 1.00 1.00 ——%
Program Assistant II 2.00 2.00 2.00 2.00 ——%
Project Engineer 1.83 1.83 1.83 1.83 ——%
Project Manager 1.35 1.35 1.35 1.35 ——%
Senior Accountant 0.30 0.30 0.30 0.30 ——%
Senior Buyer 1.00 1.00 1.00 1.00 ——%
Senior Chemist 1.00 1.00 1.00 2.00 1.00 100.0%
Senior Engineer 3.76 3.76 3.76 3.76 ——%
Senior Industrial Waste Investigator 0.99 0.99 1.00 1.00 ——%
Senior Management Analyst 0.21 0.21 0.21 0.21 ——%
Senior Mechanic 1.00 1.00 1.00 1.00 ——%
Senior Operator WQC 6.00 6.00 6.00 6.00 ——%
Senior Technologist 1.00 1.00 1.00 1.00 ——%
Storekeeper 1.00 1.00 1.00 1.00 ——%
Street Maintenance Assistant 1.00 1.00 1.00 1.00 ——%
Street Sweeper Operator 1.63 1.63 1.63 1.63 ——%
Supervisor WQCP Operations 3.00 3.00 3.00 3.00 ——%
Surveyor, Public Works 0.12 0.12 0.12 0.12 ——%
Technologist 1.00 1.00 1.00 1.00 ——%
Traffic Controller Maintainer I 0.06 0.06 0.06 0.06 ——%
WQC Plant Operator II 16.00 16.00 16.00 16.00 ——%
Zero Waste Coordinator 1.00 1.00 1.00 1.00 ——%
Total Public Works 101.19 101.19 101.32 101.98 0.66 0.7%
Utilities
Account Specialist 1.70 1.70 1.70 1.00 (0.70)(41.2)%
Accountant 0.60 0.60 0.60 1.30 0.70 116.7%
Administrative Assistant 1.00 1.00 1.00 1.00 ——%
Administrative Associate II 7.00 6.00 6.00 6.00 ——%
Assistant City Attorney***———1.00 1.00 100.0%
Assistant City Manager/Utilities General
Manager
0.75 —————%
Assistant Director Administrative Services 0.25 0.25 0.25 0.25 ——%
Table of Organization
FY 2019
Actuals
FY 2020
Actuals
FY 2021
Adopted
Budgeta
FY 2022
Amended
Budget
FY 2022
Change FTE
FY 2022
Change %
Attachment B 10.c
Packet Pg. 152
14 ATTACHMENT B
Assistant Director Utilities Customer Support
Services
1.00 1.00 1.00 1.00 ——%
Assistant Director Utilities Engineering 1.00 1.00 —1.00 1.00 100.0%
Assistant Director Utilities Engineering (Freeze)——1.00 —(1.00)(100.0)%
Assistant Director Utilities Operations 1.00 1.00 1.00 1.00 ——%
Assistant Director Utilities/Resource
Management
1.00 1.00 1.00 1.00 ——%
Business Analyst 6.00 6.00 5.00 6.00 1.00 20.0%
Business Analyst (Freeze)——1.00 —(1.00)(100.0)%
Cathodic Protection Technician Assistant 1.00 1.00 1.00 1.00 ——%
Cathodic Technician 1.00 1.00 1.00 1.00 ——%
Cement Finisher 2.00 2.00 2.00 2.00 ——%
Contracts Administrator 0.70 0.70 0.70 0.70 ——%
Coordinator Utilities Projects***6.00 6.00 6.00 7.00 1.00 16.7%
Customer Service Representative 7.00 7.00 7.00 7.00 ——%
Customer Service Specialist 2.00 2.00 2.00 2.00 ——%
Customer Service Specialist-Lead 2.00 2.00 2.00 2.00 ——%
Deputy Chief/Fire Marshal 0.08 0.08 0.08 0.08 ——%
Deputy City Attorney***1.00 1.00 1.00 —(1.00)(100.0)%
Director Administrative Services/CFO 0.20 0.20 0.20 0.20 ——%
Electric Heavy Equipment Operator ——2.00 2.00 ——%
Electric Project Engineer***2.00 4.00 4.00 7.00 3.00 75.0%
Electric Underground Inspector 2.00 2.00 2.00 2.00 ——%
Electric Underground Inspector-Lead 1.00 1.00 1.00 1.00 ——%
Electrical Equipment Technician 1.00 1.00 1.00 1.00 ——%
Electrician Assistant I 3.00 3.00 3.00 3.00 ——%
Engineer 4.00 4.00 4.00 4.00 ——%
Engineering Manager - Electric 1.00 1.00 1.00 1.00 ——%
Engineering Manager - WGW 1.00 1.00 1.00 1.00 ——%
Engineering Technician III 3.00 3.00 3.00 3.00 ——%
Environmental Specialist***———0.34 0.34 100.0%
Gas and Water Meter Measurement and
Control Technician
4.00 4.00 4.00 4.00 ——%
Gas and Water Meter Measurement and
Control Technician - Lead
1.00 1.00 1.00 1.00 ——%
Hazardous Materials Inspector 0.06 0.06 0.06 0.06 ——%
Table of Organization
FY 2019
Actuals
FY 2020
Actuals
FY 2021
Adopted
Budgeta
FY 2022
Amended
Budget
FY 2022
Change FTE
FY 2022
Change %
Attachment B 10.c
Packet Pg. 153
ATTACHMENT B 15
Heavy Equipment Operator 6.70 6.70 ————%
Heavy Equipment Operator - Install/Repair 4.00 4.00 4.00 4.00 ——%
Human Resources Representative ———1.00 1.00 —%
Industrial Waste Investigator 0.50 0.50 0.50 0.50 ——%
Inspector, WGW Utilities Field Services 5.00 5.00 5.00 5.00 ——%
Lineperson/Cable Specialist 11.00 11.00 10.00 10.00 ——%
Lineperson/Cable Specialist-Lead 4.00 4.00 4.00 4.00 ——%
Maintenance Mechanic-Welding 2.00 2.00 2.00 2.00 ——%
Manager Communications 1.00 1.00 1.00 1.00 ——%
Manager Customer Service 1.00 1.00 1.00 1.00 ——%
Manager Electric Operations 1.00 1.00 1.00 1.00 ——%
Manager Environmental Control Program***———0.34 0.34 100.0%
Manager Treasury, Debt & Investments 0.40 0.40 0.40 0.40 ——%
Manager Utilities Compliance 1.00 1.00 1.00 1.00 ——%
Manager Utilities Credit & Collection 1.00 1.00 1.00 1.00 ——%
Manager Utilities Operations WGW 1.00 1.00 1.00 1.00 ——%
Manager Utilities Program Services***1.00 1.00 1.00 2.00 1.00 50.0%
Manager Utilities Strategic Business 1.00 1.00 1.00 1.00 ——%
Manager Utilities Telecommunications 1.00 1.00 1.00 1.00 ——%
Meter Reader 6.00 6.00 6.00 6.00 ——%
Meter Reader-Lead 1.00 1.00 1.00 1.00 ——%
Metering Technician***3.00 3.00 3.00 2.00 (1.00)(33.3)%
Metering Technician-Lead 1.00 1.00 1.00 1.00 ——%
Offset Equipment Operator 0.48 0.48 0.48 0.48 ——%
Overhead Underground Troubleman 2.00 2.00 2.00 2.00 ——%
Power Engineer***3.00 1.00 1.00 —(1.00)(100.0)%
Principal Business Analyst 1.00 1.00 1.00 1.00 ——%
Program Assistant I 1.50 1.50 1.50 1.50 ——%
Program Assistant II —1.00 1.00 1.00 ——%
Project Engineer 5.00 5.00 5.00 5.00 ——%
Project Manager 0.75 0.75 0.75 0.75 ——%
Resource Planner 6.00 5.00 5.00 5.00 ——%
Restoration Lead 1.00 1.00 1.00 1.00 ——%
SCADA Technologist 2.00 2.00 2.00 2.00 ——%
Senior Accountant 0.70 0.70 0.70 0.70 ——%
Table of Organization
FY 2019
Actuals
FY 2020
Actuals
FY 2021
Adopted
Budgeta
FY 2022
Amended
Budget
FY 2022
Change FTE
FY 2022
Change %
Attachment B 10.c
Packet Pg. 154
16 ATTACHMENT B
Senior Business Analyst 3.00 3.00 3.00 3.00 ——%
Senior Electrical Engineer 4.00 4.00 4.00 5.00 1.00 25.0%
Senior Engineer***5.00 5.00 5.00 6.00 1.00 20.0%
Senior Management Analyst 0.70 0.70 0.70 0.70 ——%
Senior Mechanic 1.00 1.00 1.00 1.00 ——%
Senior Performance Auditor 1.00 1.00 1.00 —(1.00)(100.0)%
Senior Resource Planner 6.00 6.50 6.50 6.50 ——%
Senior Utilities Field Service Representative 1.00 1.00 1.00 1.00 ——%
Senior Water Systems Operator 2.00 2.00 2.00 2.00 ——%
Storekeeper 1.00 1.00 1.00 1.00 ——%
Storekeeper-Lead 0.80 0.80 0.80 0.80 ——%
Street Light, Traffic Signal & Fiber Technician 5.00 5.00 5.00 5.00 ——%
Street Light, Traffic Signal & Fiber-Lead 2.00 2.00 2.00 2.00 ——%
Substation Electrician 6.00 6.00 5.00 6.00 1.00 20.0%
Substation Electrician (Freeze)——1.00 —(1.00)(100.0)%
Substation Electrician-Lead 2.00 2.00 2.00 2.00 ——%
Supervising Electric Project Engineer 1.00 1.00 1.00 —(1.00)(100.0)%
Sustainability Programs Administrator ———4.00 4.00 —%
Tree Maintenance Person 1.00 1.00 1.00 1.00 ——%
Utilities Chief Operating Officer 1.00 1.00 —1.00 1.00 100.0%
Utilities Chief Operating Officer (Freeze)——1.00 —(1.00)(100.0)%
Utilities Compliance Technician 2.00 2.00 3.00 3.00 ——%
Utilities Compliance Technician-Lead 1.00 1.00 1.00 1.00 ——%
Utilities Credit/Collection Specialist 2.00 2.00 2.00 2.00 ——%
Utilities Director —1.00 1.00 1.00 ——%
Utilities Engineer Estimator 5.00 5.00 5.00 5.00 ——%
Utilities Field Services Representative 5.00 5.00 5.00 5.00 ——%
Utilities Install Repair-Lead-Welding Certified 2.00 2.00 2.00 2.00 ——%
Utilities Install Repair-Welding Certified 3.00 3.00 3.00 3.00 ——%
Utilities Install/Repair 10.00 10.00 10.00 10.00 ——%
Utilities Install/Repair Assistant 1.00 1.00 1.00 1.00 ——%
Utilities Install/Repair-Lead 5.00 5.00 5.00 5.00 ——%
Utilities Key Account Representative 3.00 3.00 3.00 3.00 ——%
Utilities Locator 3.00 3.00 3.00 3.00 ——%
Utilities Marketing Program Administrator 3.00 4.00 4.00 —(4.00)(100.0)%
Table of Organization
FY 2019
Actuals
FY 2020
Actuals
FY 2021
Adopted
Budgeta
FY 2022
Amended
Budget
FY 2022
Change FTE
FY 2022
Change %
Attachment B 10.c
Packet Pg. 155
ATTACHMENT B 17
Utilities Safety Officer 1.00 1.00 1.00 1.00 ——%
Utilities Supervisor 12.00 12.00 11.00 12.00 1.00 100.0%
Utilities Supervisor (Freeze)——1.00 —(1.00)(100.0)%
Utilities System Operator 5.00 5.00 5.00 5.00 ——%
Utility Engineering Estimator - Lead 1.00 1.00 1.00 1.00 ——%
Warehouse Supervisor 0.80 0.80 0.80 0.80 ——%
Water System Operator II 4.00 4.00 4.00 4.00 ——%
WGW Heavy Equipment Operator ——4.70 4.70 ——%
Total Utilities 256.67 257.42 257.42 262.10 4.68 1.8%
Total Enterprise Fund 357.86 358.61 358.74 364.08 5.34 1.5%
Other Funds
Capital Project Fund
Administrative Assistant —0.15 0.15 0.65 0.50 333.3%
Administrative Associate I 0.80 0.80 0.80 —(0.80)(100.0)%
Administrative Associate III 1.09 0.89 0.89 0.80 (0.09)(10.1)%
Assistant Director Public Works 0.58 0.72 0.72 0.72 ——%
Associate Engineer 3.04 2.49 1.50 1.65 0.15 10.0%
Associate Engineer (Freeze)——1.00 —(1.00)(100.0)%
Associate Planner 0.31 0.30 0.30 0.35 0.05 16.7%
Building Serviceperson 0.75 0.75 1.00 1.00 ——%
Building Serviceperson-Lead 1.40 1.40 1.40 1.40 ——%
Cement Finisher-Lead 0.74 0.74 0.74 0.74 ——%
Chief Transportation Official 0.36 0.30 0.30 0.30 ——%
Contracts Administrator 0.60 0.60 0.60 0.60 ——%
Coordinator Public Works Projects 1.30 1.30 1.30 1.30 ——%
Coordinator Transportation Systems
Management
0.76 0.75 0.75 1.35 0.60 80.0%
Engineer 2.80 3.10 2.10 2.10 ——%
Engineer (Freeze)——1.00 —(1.00)(100.0)%
Engineering Technician III 0.50 0.50 0.50 0.50 ——%
Facilities Technician 1.50 1.50 1.50 1.50 ——%
Inspector, Field Services 1.21 1.21 1.21 1.21 ——%
Landscape Architect Park Planner 0.90 0.90 0.90 0.90 ——%
Management Analyst 0.82 0.94 0.95 0.95 ——%
Table of Organization
FY 2019
Actuals
FY 2020
Actuals
FY 2021
Adopted
Budgeta
FY 2022
Amended
Budget
FY 2022
Change FTE
FY 2022
Change %
Attachment B 10.c
Packet Pg. 156
18 ATTACHMENT B
Manager Facilities 0.10 0.10 0.10 0.10 ——%
Manager Maintenance Operations 0.65 0.65 0.65 0.65 ——%
Parking Operations-Lead 0.35 0.40 0.40 0.30 (0.10)(25.0)%
Project Engineer 6.84 7.59 7.62 7.92 0.30 3.9%
Project Manager 1.15 1.15 0.80 0.80 ——%
Project Manager (Freeze)——0.35 —(0.35)(100.0)%
Senior Engineer***1.99 2.99 4.04 4.64 0.60 14.9%
Senior Management Analyst 0.72 0.60 0.60 0.60 ——%
Senior Planner 0.72 0.50 0.50 0.80 0.30 60.0%
Senior Project Manager 0.90 1.00 ————%
Supervisor Inspection and Surveying 0.63 0.63 0.65 0.65 ——%
Surveyor, Public Works 0.55 0.55 0.55 0.55 ——%
Traffic Engineering-Lead***0.35 0.55 0.55 —(0.55)(100.0)%
Transportation Planning Manager 0.35 0.35 0.35 0.45 0.10 28.6%
Total Capital Project Fund 34.76 36.40 36.77 35.48 (1.29)(3.5)%
Printing and Mailing Services
Manager Revenue Collections 0.10 0.10 0.10 0.10 ——%
Offset Equipment Operator 1.52 1.52 1.52 1.52 ——%
Total Printing and Mailing Services 1.62 1.62 1.62 1.62 ——%
Special Revenue Funds
Account Specialist 1.87 1.87 1.37 1.37 ——%
Account Specialist (Freeze)——0.50 —(0.50)(100.0)%
Account Specialist-Lead 0.55 0.55 0.55 0.55 ——%
Administrative Assistant —0.35 0.35 0.25 (0.10)(28.6)%
Administrative Associate II 0.20 0.20 0.20 0.20 ——%
Administrative Associate III 0.21 —————%
Associate Planner 0.42 0.25 0.25 —(0.25)(100.0)%
Community Service Officer 0.50 0.50 0.37 0.37 ——%
Community Service Officer (Freeze)——0.13 —(0.13)(100.0)%
Coordinator Public Works Projects 0.20 0.20 0.20 0.20 ——%
Electrician 0.20 0.20 0.20 0.20 ——%
Facilities Maintenance-Lead 0.15 0.15 0.15 0.15 ——%
Facilities Painter 0.25 0.25 0.25 0.25 ——%
Facilities Technician 0.45 0.45 0.45 0.45 ——%
Table of Organization
FY 2019
Actuals
FY 2020
Actuals
FY 2021
Adopted
Budgeta
FY 2022
Amended
Budget
FY 2022
Change FTE
FY 2022
Change %
Attachment B 10.c
Packet Pg. 157
ATTACHMENT B 19
Management Analyst 0.17 0.35 0.35 0.35 ——%
Manager Community Services Senior Program 1.00 1.00 1.00 1.00 ——%
Manager Maintenance Operations 0.19 0.19 0.19 0.19 ——%
Manager Revenue Collections 0.28 0.28 0.28 0.28 ——%
Parking Operations-Lead 0.55 0.60 0.60 0.65 0.05 8.3%
Senior Planner 0.40 0.40 0.40 0.40 ——%
Street Maintenance Assistant 2.00 2.00 2.00 2.00 ——%
Street Sweeper Operator 0.37 0.37 0.37 0.37 ——%
Transportation Planning Manager 0.24 0.50 0.50 0.50 ——%
Total Special Revenue Funds 10.20 10.66 10.66 9.73 (0.93)(8.7)%
Technology Fund
Administrative Assistant 1.00 1.00 1.00 1.00 ——%
Assistant Director Administrative Services 0.10 0.10 0.10 0.10 ——%
Business Analyst 1.00 1.00 1.00 1.00 ——%
Desktop Technician 6.00 6.00 6.00 6.00 ——%
Director Information Technology/CIO 1.00 1.00 —1.00 1.00 100.0%
Director Information Technology/CIO (Freeze)——1.00 —(1.00)(100.0)%
Manager Information Technology 3.00 3.00 3.00 3.00 ——%
Manager Information Technology Security 1.00 1.00 1.00 —(1.00)(100.0)%
Principal Business Analyst 1.00 1.00 1.00 —(1.00)(100.0)%
Senior Business Analyst 2.00 2.00 2.00 2.00 ——%
Senior Management Analyst 1.00 1.00 1.00 1.00 ——%
Senior Technologist***18.00 18.00 16.00 16.00 ——%
Senior Technologist (Freeze)——2.00 —(2.00)(100.0)%
Technologist 1.00 1.00 ————%
Technologist (Freeze)——1.00 —(1.00)(100.0)%
Total Technology Fund 36.10 36.10 36.10 31.10 (5.00)(13.9)%
Vehicle Replacement and Maintenance Fund
Administrative Associate III 1.00 —————%
Assistant Director Public Works 0.25 0.25 0.25 0.25 ——%
Assistant Fleet Manager 1.00 1.00 1.00 1.00 ——%
Equipment Maintenance Service Person 2.00 2.00 2.00 1.00 (1.00)(50.0)%
Fleet Services Coordinator 2.00 1.00 1.00 1.00 ——%
Management Analyst 0.20 0.20 0.20 0.20 ——%
Table of Organization
FY 2019
Actuals
FY 2020
Actuals
FY 2021
Adopted
Budgeta
FY 2022
Amended
Budget
FY 2022
Change FTE
FY 2022
Change %
Attachment B 10.c
Packet Pg. 158
20 ATTACHMENT B
Management Assistant —1.00 1.00 1.00 ——%
Manager Fleet 1.00 1.00 1.00 1.00 ——%
Motor Equipment Mechanic II 6.00 6.00 5.00 5.00 ——%
Motor Equipment Mechanic II (Freeze)——1.00 —(1.00)(100.0)%
Motor Equipment Mechanic-Lead 2.00 2.00 2.00 2.00 ——%
Project Manager 1.00 1.00 1.00 1.00 ——%
Senior Management Analyst 0.08 0.08 0.08 0.08 ——%
Total Vehicle Replacement and
Maintenance Fund
16.53 15.53 15.53 13.53 (2.00)(12.9)%
Workers' Compensation Program Fund
Senior Human Resources Administrator 1.00 1.00 1.00 1.00 ——%
Total Workers’ Compensation Program
Fund
1.00 1.00 1.00 1.00 ——%
Total Other Funds 100.21 101.31 101.68 92.46 (9.22)(9.1)%
Total Citywide Positions 1,040.35 1,034.85 1,034.85 976.00 (58.85)(5.7)%
a.The FY 2021 Adopted Budget includes position freezes that reduced the funding equivalent to holding a position
vacant. The positions impacted by this action are identified with “(Freeze)” following the job classification title and
summarized in two rows; one to reflect the total FTE authorized (less freezes), and another to reflect FTE freezes. The
FY 2022 Adopted Budget includes City Council direction to eliminate these positions (CMR 11872).
b.The Office of Transportation was created within the City Manager’s Office in FY 2020 through the reallocation of staff
and resources from the Planning and Development Services Department (previously the Planning and Community
Environment Department). Prior year staffing levels have been restated for demonstrative purposes.
c.The Planning and Development Services Department was established in FY 2020 through the merging of the
Development Services Department and Planning and Community Environment Department and the reallocation of
resources to create a dedicated Office of Transportation within the City Manager’s Office. Prior year staffing levels
have been restated for demonstrative purposes.
*** Indicates position additions subsequent to the adoption of the FY 2022 budget, consistent with
recommendations in the following City Manager Reports (CMRs):
1.CMR 13439 Preliminary Q1 FY 2022 Financial Status - In total, 4.00 Full-Time Equivalent (FTE) positions are added in
the City Manager's Office (2.00 FTE), Planning and Development Services Department (1.00 FTE), and Police
Department (1.00 FTE).
2.CMR 13643 Staffing for Adequate Fire and Emergency Response (SAFER) Grant - In total, 5.00 Firefighter
positions are added in the Fire Department.
3.CMR 13801 FY 2022 Mid-Year Budget Review - In total, 11.00 FTE Full-Time Equivalent (FTE) positions are added
in the Community Services, Fire, Human Resources, Office of Transportation, Planning and Development Services,
Police, Public Works, and Utilities Departments.
Overall, these actions resulted in staffing increases from 506.80 FTE to 519.46 FTE in the General Fund (956.00 FTE to
976.00 FTE Citywide).
Table of Organization
FY 2019
Actuals
FY 2020
Actuals
FY 2021
Adopted
Budgeta
FY 2022
Amended
Budget
FY 2022
Change FTE
FY 2022
Change %
Attachment B 10.c
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Q2
2020 2021 2022
POLICE DEPARTMENT
Overtime Expense
Adopted Budget (A)$1,842,231 $944,186 $944,186
Modified Budget 1,842,231 944,186 1,244,186
Net Overtime Cost - see below 441,197 366,045 270,078
Variance to Budget 1,401,034 578,141 974,108
Overtime Net Cost
Actual Expense $2,566,590 $1,431,959 $1,010,504
Less Reimbursements
California OES/FEMA (Strike Teams)- - -
Stanford Communications 110,177 64,906 52,550
Utilities Communications Reimbursement 54,086 33,191 26,615
Local Agencies (B)9,329 2,412 2,701
Police Service Fees 205,126 467,167 68,134
Total Reimbursements 378,717 567,676 150,000
Less Department Vacancies (A)1,746,677 498,238 590,426
Net Overtime Cost $441,197 $366,045 $270,078
Department Vacancies (number of days)6,192 1,494 1,647
Workers' Compensation Cases 30 18 3
Department Disabilities (number of days)700 1324 320
FIRE DEPARTMENT
Overtime Expense
Adopted Budget $1,672,872 $1,931,121 $1,931,121
Modified Budget (C)2,086,872 2,971,460 2,613,621
Net Overtime Cost - see below 1,831,059 1,792,228 2,235,282
Variance to Budget 255,813 1,026,424 378,339
Overtime Net Cost
Actual Expense $2,018,548 $2,840,968 $2,352,625
Less Reimbursements
California OES/FEMA (Strike Teams) 114,000 887,531 -
Total Reimbursements 114,000 887,531 -
Less Department Vacancies 73,489 161,208 117,343
Net Overtime Cost $1,831,059 $1,792,228 $2,235,282
Department Vacancies (number of days)173 1,942 755
Workers' Compensation Cases 33 17 6
Department Disabilities (number of days)227 629 254
NOTES:
(A)The FY 2022/23 Police Department budget was reduced by 1.0 FTE Parking Management position.
(B)Includes Animal Control Services contract with Los Altos and Los Altos Hills.
(C)The FY 2022 Modified Budget includes overtime adjustments recommended as part of the FY 2022 Mid-Year review for
additional backfill overtime ($682,500).
Attachment C
Public Safety Departments
Overtime Analysis for Fiscal Years 2020 through 2022
10.d
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City of Palo Alto (ID # 13644)
City Council Staff Report
Report Type: Action Items Meeting Date: 2/7/2022
City of Palo Alto Page 1
Summary Title: California Avenue Temporary and Permanent Street Closure
Discussion
Title: California Avenue and Ramona Street Temporary and Permanent
Closure: Direct Staff to Issue RFP for a Feasibility Study and Return for
Contract Approval, and Provide D irection to Staff on Activities and
Programming
From: City Manager
Lead Department: Planning and Development Services
Recommendation:
Staff recommends that the City Council:
I. Direct staff to issue a Request for Information (RFI) and/or Request For Proposals (RFP)
to obtain a consultant to conduct a feasibility study to define the scope and understand
the impact of the proposed permanent closure(s) on portions of California Avenue from
El Camino Real to Park Blvd. and the section of Ramona Street between Hamilton
Avenue and University Avenue.
II. Direct staff to return to Council for approval of the contract for the feasibility study and
to provide a schedule.
III. Discuss and provide direction regarding activities in the temporarily closed portion of
California Avenue (from El Camino Real to Park Blvd.).
Executive Summary:
This report provides information on next steps that would be necessary to evaluate and
determine the feasibility of moving forward with permanent closure(s) of portions of California
Avenue and Ramona Street and seeks the City Council’s direction on next steps.
Background:
On September 13, 2021, City Council authorized staff to extend the closure of California Avenue
and Ramona Street through June 2022 (CMR 13540). At the same Council meeting, the Council
directed staff to return for discussion on the permanent street closures. On June 22, 2021,
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Council also directed staff to return to the City Council for further discussion regarding
additional elements on the California Ave street closure , referring to the area closed through
June 2022 for outdoor retail and dining (CMR 12354). Specifically, Council directed “Staff to
include in its workplan for streetscape design on California Avenue, have Staff return with a
process recommendation to pursue a pro-bono design expertise such as AIA, ARB or others,
and to include an evaluation of potential sites for permanent performance stages in other
potential areas such as downtown.”
Discussion:
City Council directed staff to return for a discussion on permanent street closures . This report
outlines the next steps that would be necessary to proceed forward. While the City’s authority
to close streets to vehicular traffic is regulated by the State, the decision to pursue closure of a
street under the prescribed state processes rests with the Palo Alto City Council. The policy
decision incorporates balancing numerous factors to determine the avenue most appropr iate
for the City. To aid Council in its discussion, staff have outlined several policy considerations.
Community and Economic Recovery
The closure of certain public streets to vehicular traffic was a step taken by the City Council
near the beginning of the pandemic to provide outdoor areas for retail, dining, and other
activities (gyms, etc.). These efforts help maintain access to local goods, services, and dining.
The closures of certain streets also aided some businesses in remaining open, especially
restaurants, because patrons could dine outdoors.
While the pandemic is not “over”, experts have suggested due to highly effective vaccines, the
pandemic is shifting into a new phase. In this phase, Americans are working to re -establish
normalcy; and normalcy itself has adjusted. The experiment with closed streets proved to be
very popular with Palo Alto residents, with thousands corresponding to Council requesting the
street closures continue. Continuation of the closures temporarily and contemplation of
permanent closures may represent a “new normal” in Palo Alto. Not only loved by many in the
community, the potential new normal provides economic benefits to local businesses,
especially restaurants. Not only because it creates an enhanced opportunity for al fresco dining,
but also because the closed portions of streets contribute to a strong sense of place that
attracts diners and shoppers alike, helping generate businesses activity (that in turn generates
tax revenue).
Maintaining Access
Council is aware, however, that all businesses do not benefit equally from street closures. As
the City explores this topic, Council may consider various combinations of closing portions of
California Avenue and Ramona Street. The closures may be 24 hours a day , 7 days a week
(ongoing and continuous), the closures might occur regularly during certain hours (weekends),
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or the ultimate decision could result in maintaining some vehicular access but significantly
decreasing the right of way available for motorized vehicles.
In each of these options, the City should aim to improve the conditions for all stakeholders —
from restaurants to retailers, grocery stores to financial institutions. Ensuring that customers of
all abilities and transportation modes can continue to access goods and services throughout the
areas is important and can be accomplished through careful and thoughtful planning.
Use of Public Space
One of the overarching policy decisions for the Council is how the City should use its public
space. There are at least two dimensions of this decision. First, who will be occupying the
street? Some cities are closing streets for pedestrian activities, others to promote economic
activity. Second, the City will want to determine if and how to allow the use of this publi c space
by private businesses. During the pandemic, the City has allowed the use of public space by
private establishments through no cost encroachment permits. If the streets are closed on a
more permanent basis, the City will need to determine if space c an continue to be used by
private establishments and the terms of that use.
These specific decisions do not need to be resolved immediately, as the first overall choice is
whether or not to investigate permanent closures. Yet, being clear that a potentia l use of public
right of way by private establishments that provide goods or services is a likely use of spaces ,
allows staff to work with consultants and other experts as well as stakeholders in future
discussions.
Future choices related to this include establishing the cost of using public space; establishing a
permitting process for use of public space; and determining procedures to ensure that even if
some portions of road include private uses, that the public has ample access to enjoy the street.
The City’s authority to close streets to vehicular traffic is regulated by the State. The State has
preempted the entire field of traffic control (Vehicle Code Section 21). As a result, the right of
local authorities to make changes affecting traffic flow, such as closing a street, must be derived
from an express delegation of authority from the State. Staff explored various statutes that
allow for such authority to the local agencies. The following statutes describe the authority that
allows local agencies to close streets on a temporary or permanent basis:
• Temporary Street Closures (including regular/frequent closures on long-term basis)
The State of California’s Vehicle Code (CVC) 21101 (e): CVC Section 21101(e) allows for
local authorities to temporarily close a portion of any street for celebrations, parades,
local special events, and other purposes by adoption of a resolution when the closi ng is
necessary for the safety and protection of persons who are to use that portion of the
street during the temporary closing. The current closure of street is temporary as a
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result of the State of Emergency due to the COVID -19 pandemic and the need to
support the economic recovery of the businesses on California Street, Ramona Avenue,
and University Avenue.
With regards to the permanent closure of streets, staff will consider various available statutes
within the State Codes that delegate to the City the authority to permanently close streets. The
first step in this process will be conducting a feasibility study, which will help staff determine
which statute might be the most feasible.
For reference, the different state statutes describing the proce ss for road closures are listed as
follows:
• Permanent Street Closures
i. The State of California’s Streets and Highways Code 11100 et seq. Provides local
agencies with the authority to establish pedestrian malls and to prohibit, in whole or
in part, traffic on a pedestrian mall. The legislature found that in certain areas in
cities and particularly in retail shopping areas, there is need to separate pedestrian
travel from vehicular travel and that such separation is necessary to protect the
public safety or otherwise to serve the public interest and convenience. The
legislature further found that such objective can, in p art, be accomplished by the
establishment of pedestrian malls pursuant to this part.
ii. The State of California’s Vehicle Code (CVC) 21101(a): CVC 21101 (a) allows for the
permanent closure of a street if the City Council adopts an ordinance or resolution
that finds the street is no longer needed for vehicular traffic.
iii. The State of California’s Vehicle Code (CVC) 21101 (f): CVC 21101 (f) allows for the
permanent closure of the streets and prohibiting entry to, or exit from, or both,
from any street by means of islands, curbs, traffic barriers, or other roadway design
features to implement the circulation element of a general plan adopted pursuant to
Article 6 (commencing with Section 65350) of Chapter 3 of Division 1 of Title 7 of the
Government Code. The rules and regulations authorized by this subdivision shall be
consistent with the responsibility of local government to provide for the health and
safety of its citizens.
iv. The State of California’s AB 773: Recently, on October 6, 2021, the California
Legislature passed the Assembly Bill 773 to create a new CVC Section 21101 (f) to
authorize a local authority to adopt a rule or regulation by ordinance for
implementing a slow streets program. This legislation became effective in January
2022. For purposes of this section, a “slow streets program” may include closures to
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vehicular traffic or through vehicular traffic of neighborhood local streets with
connections to citywide bicycle networks; destinations, such as a business district,
that are within walking distance; or green space. A l ocal authority therefore may
implement a slow streets program by adopting an ordinance that provides for the
closing of streets to vehicular traffic or limiting access and speed on a street using
roadway design features, including, but not limited to, isla nds, curbs, or traffic
barriers.
Street Closure Next Steps:
Feasibility Study: In order to initiate permanent street closure, staff recommends
conducting a feasibility study to define the scope and to understand the impact of the
proposed closure. This exercise shall also include developing conceptual plans with
possible alternatives. The feasibility study shall review the existing conditions, traffic
circulation, and its impacts to access for properties in the proposed segments. The
traffic analysis shall include but is not limited to analysis of traffic circulation, access to
properties, emergency access, parking, loading-unloading, delivery, access for
maintenance of utilities, impacts to signal operations, etc. Parking impacts in the area
and surrounding areas will need to be studied. In addition, the feasibility study can also
include economic analysis to determine the potential impacts on business based on
similar implementations in other cities. Outreach to stakeholders and the public should
also be considered as part of this feasibility study.
The feasibility study may include a component to review the impacts of long-term
temporary closures such as seasonal closures or regular weekend closures, in the event
such options are considered for implementation.
Environmental Documentation Review & Preparation: After reviewing the feasibility
study and selection of preferred closure option by City Council , the next step will be
consideration and preparation of the required environmental approval necessary under
California Environmental Quality Act (CEQA).
Resolution of Intent & Public Hearing: The next step in the process is the adoption of
resolution of intent which sets a public hearing date for the consideration of the street
closure. The public hearing date must be set for at least 90 days after the adoption of
the resolution of intent.
Adoption of the Ordinance: The last step is the introduction of an ordinance to establish
the pedestrian mall and any related regulations governing the use o f the roadway. Any
objections from the abutting property owners must be resolved , and the majority of
property owners must not object to moving forward on street closure.
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Placemaking, such as determining possible locations for permanent performance stages, would
occur after a feasibility study during conceptual plan development of the street closure.
Considerations such as responsibility for programming, design, and operating costs will also
need to be addressed.
Actions on Similar Permanent Street Closures in Other Nearby Cities
As the Council considers whether or not to pursue longer-term closures, the actions of nearby
cities may provide insight. Staff reviewed actions of several neighboring cities and provide a
summary below.
• City of Mountain View: On October 12, 2021, the City Council of Mountain View
conducted a study session to review the Castro Street Pedestrian Mall Feasibility Study.
The City was considering closure of Castro Street prior to the pandemic and was
authorized to conduct a feasibility study on December 10, 2019 (link to City of Mountain
View staff report).
• City of San Mateo: On September 20, 2021, City Council adopted a resolution to
establish pedestrian malls on B Street between 1st and 2nd Avenues and on B Street
between 2nd and 3rd Avenues and introduced an Ordinance to amend the San Mateo
Municipal Code to establish rules and regulations governing pedestrian malls (link to
City of San Mateo staff report). The public hearing for resolution of intent to establish a
pedestrian mall was conducted on June 21, 2021.
• The City and County of San Francisco has considered making some residential low-
volume streets as “Slow Streets” in post-pandemic times. The information about San
Francisco’s Slow Street program can be found at San Francisco Municipal Transportation
Agency (SFMTA) Post Pandemic Slow Street Program.
Temporary California Avenue Street Closures
Currently, California Avenue from El Camino Real to Birch Street remains closed to vehicular
traffic. The Public Works Department continues to work with permit holders to ensure their
temporary facilities (tables, chairs, canopies, etc.) comply with standards established by the
City. Staff recommend continuing to allow the permit holders to continue as-is as the
exploration of permanent closure continues. This allows staff energies to focus on that effort.
Stakeholders have provided testimony to City Council regarding a desire for more aesthetic
cohesion among the establishments. Creating more cohesion would require aesthetic
standards, new applications, review of compliance with the standards, and possibly installation
of new temporary facilities by private establishments. Staff recommends focusing California
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Avenue energies on the design of the permanent parklet program as well as other public and
privately-owned street features. Working with the ARB, local businesses, and community
members, the City can create a unique permanent parklet program that enhances the
streetscape and pedestrian environment along California Avenue. This discussion could also
include consideration of minor streetscape improvements that take into account the significant
investment already made in the recent California Avenue Streetscape project.
The permanent closure, if ultimately pursued, could and likely should include development of
aesthetic guidelines leading to an even stronger sense of place on California Avenue. The timing
of the development of these guidelines may be best placed as part of the permanent closure
discussion, instead of the temporary program.
In the interim, the City may continue to collaborate with the local business community by
providing street cleaning services, tree and shrub mainte nance, public safety services, and by
facilitating events and attractions. In the past, public art has been used to attract visitors, the
city is currently collaborating with local merchants to place seasonal winter decorations on Cal
Ave. Efforts to facilitate public performances of music can also be undertaken in collaboration.
In sum, staff recommend focusing in the short term on flexible opportunities for collaboration
that do not entail major capital outlay for the City or for permit holders. Likewise, focusing
energies of the Office of Transportation on the exploration of the permanent closure and the
energy of Planning and Development Services—and other departments—along with ARB on the
permanent parklet standards, can ensure that public resources are sequentially allocated.
Perhaps more simply put: establishing long term standards for what remains a temporary
closure may be ill-timed.
Policy Implications:
Overall, the street closure topic reflects a decision about how best to use public space, in this
case, the public roadways. Key considerations include determining if the space will include
facilities for pedestrians and bicycles and if private businesses will be charged to utilize the
public space.
Resource Impact:
The permanent street closure of California Avenue and Ramona Street is not currently included
in the Office of Transportation Work Plan or FY 2022 budget. Should Council wish to pursue
studying the feasibility of any street closure options, reprioritization of current work and staff
augmentation through contract consultant and additional budgetary amount authority will be
necessary. Staff estimates the additional amount to range from $300K -$500K for conducting
this feasibility study. Staff will return to Council for review and approval of any such contract
before awarding.
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Regarding the ongoing street closures that are set to continue through June 2022, the City is
challenged to consider how to best allocate existing staff resources to achieve City Council
priorities. Community and economic recovery remains a key Council priority in 2021. To further
this priority, staff recommend focusing resources on the long term parklet standards. These
standards, if adopted, could enhance and enliven California Avenue in 2022 and beyond.
If Council seeks additional efforts for the current closure area, staff request guidance. Staff may
return with a resource request depending on the direction expressed by City Council. If funds
are allocated, time and availability of human resources—both staff and consultant—may delay
the commencement of assigned work.
Timeline:
Staff will initiate an RFI/RFP process following Council approval and return for review and
approval of the contract.
Stakeholder Engagement:
The opinions of stakeholders have not shifted significantly since the Council’s last discussion of
this matter. Generally speaking, owners of restaurants located within the closed streets along
Ramona Street and on California Avenue prefer the closures. Due to the rise in delta variant,
they report that fewer diners want to eat indoors. Likewise, retail and retail -like uses generally
prefer the streets be opened to vehicular traffic. These businesses feel restaurants have had a
chance to use the streets and that now, more balance is needed. These businesses also point
out that through parklets, these restaurants can continue outdoor meal service. Retailers
continue to report diminished sales and indicate the street closure contributes to these
decreased sale volumes. While there are fewer retailers in the Cal Ave closure, retailers within
and around the closure report challenges they attribute to the closure. Palo Alto residents
continue to support continuation of the street closures.
With the onset of the COVID-19 pandemic in early 2020, the City Council authorized the
creation of a Temporary Outdoor Dining program, including the approval of the temporary
closure of portions of California Avenue, University Avenue, and Ramona Street. Uplift Local, a
Council-supported effort enabling outdoor dining, retail, personal services, and outdoor gyms
and fitness options in business districts such as California Avenue and the downtown core and
other business areas throughout Palo Alto was created. A dedicated Uplift Local website
provided information to the community. This program continues to evolve based on business
and community input. Staff has been meeting with the community regularly to seek feedback
from the business owners and residents to address concerns associated with outdoor dining
program and street closures. While there are fewer retailers in the Cal Ave closure, retailers
within and around the closure report challenges they attribute to the closure. Palo Alto
residents continue to support continuation of the street closures.
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However, during the study of the feasibility of permanent closure, additional stakeholder
outreach will be necessary.
Environmental Review:
The proposed action is part of a planning study for a possible future action, which has not been
approved, adopted, or funded and is therefore exempt from the California Environmental
Quality Act (CEQA) in accordance with CEQA Guidelines Section 15262. The future decision to
approve the construction would be subject to CEQA and require the preparation of an
environmental analysis. Environmental review and project design will be performed in the
subsequent steps of the project development.
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City of Palo Alto (ID # 13623)
City Council Staff Report
Meeting Date: 2/7/2022
City of Palo Alto Page 1
Title: Investment Activity Report for the Second Quarter, Fiscal Year 2022
From: City Manager
Lead Department: Administrative Services
Background
The City’s Investment Policy requires that staff report to Council quarterly on the City’s
portfolio composition and performance compared to the Council -adopted policy; discuss
overall compliance with the City’s Investment Policy; and provide recommendations, if any, for
policy changes. In addition, staff provides a detailed list of all securities and report on the City’s
ability to meet expenditure requirements over the next six months. This report is to inform
Council of the City’s investment portfolio performance as of the second quarter ending
December 31, 2021 and to disclose staff’s cash flow projections for the next six months.
Discussion
The City’s investment portfolio is summarized in Graph 1 and detailed in the Investments by
Fund Report (Attachment B). The Investments by Fund Report groups the portfolio’s securities
by investment type and includes details of the investment issuer, date of maturity, current
market value, the book and face (par) value, and the weighted average maturity of each type of
investment and of the entire portfolio.
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The par value of the City’s portfolio is $553.8 million; in comparison, last quarter it was $542.3
million. The $11.5 million portfolio growth since the last quarter results from timing of cash
flows. Receipts include a $11.7 million in Public Safety Bldg. bond construction funds drawdown
that was partially offset by payments to the construction contractors during this quarter and
higher revenue receipts (e.g. sale, transient occupancy, utility user taxes, etc.) due to the
COVID-19 recession recovery that began in the fourth quarter of Fiscal Year 2021. In addition,
receipts of property taxes started in the second quarter.
The portfolio consists of $16.7 million in liquid accounts and $537.1 million in various
investment types as detailed in the following Table 1. The investment policy requires that at
least $50 million be maintained in securities maturing in less than two years. The portfolio
includes $120.0 million in investments maturing in less than two years, comprising 21.7 percent
of the City’s investment portfolio. In addition, the Investment Policy allows up to 30 percent of
the portfolio to be invested in securities with maturities beyond five years; actual at the end of
the second quarter is 29.5 percent of the portfolio.
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The current market value of the portfolio is 99.3 percent of the book value. The market value
of securities fluctuates, depending on how interest rates perform. When interest rates
decrease, the market value of the securities in the City’s portfolio will likely increase; likewise,
when interest rates increase, the market value of the securities will likely decrease.
Understanding and showing market values is not only a reporting requirement, but essential to
knowing the principal risks in actively buying and selling securities. It is important to note,
however, that the City’s practice is to buy and hold investments until they mature so changes in
market price do not affect the City’s investment principal. The market valuation is provided by
U.S. Bank, which is the City’s safekeeping agent. The average life to maturity of the investment
portfolio is 4.28 years compared to 4.21 years last quarter.
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Investments Made During the Second Quarter
During the second quarter, $13.2 million of securities with an average yield of 2.2 percent
matured. During the same period, per the following Table 2, securities totaling $37.4 million
with an average yield of 1.5 percent were purchased. As expected, as interest rates slowly rose
on new investments, the City’s portfolio’s average yield plateaued in this and the prior two
quarters. In the prior two fiscal years or during the height of the COVID -19 economic closures,
the portfolio’s interest rate had steadily declined. The City’s short-term money market and pool
account decreased by $12.6 million compared to the first quarter of Fiscal Year 2022. Staff
continually monitors the City’s short-term cash flow needs and adjusts liquid funds to meet
them. The decline is attributable to new investments in higher yielding securities.
Availability of Funds for the Next Six Months
Normally, the flow of revenues from the City’s utility billings and General Fund sources is
enough to provide funds for ongoing expenditures in those respe ctive funds. Projections
indicate receipts will be $317.2 million and expenditures will be $289.2 million over the next six
months, indicating an overall growth in the portfolio of $28.0 million. The steady revenue
recovery that began in the prior quarters is expected to continue though, possibly at a slower
rate due to the recent pandemic surge, so this is expected to contribute to this growth in
addition to property tax receipts in the second half of fiscal year 2022.
As of December 31, 2021, the City had $16.7 million deposited in the Local Agency Investment
Fund (LAIF) and a money market account that could be withdrawn on a daily basis. In addition,
investments totaling $28.1 million will mature between January 1, 2022 and June 30, 2022.
Based on the above and staff’s revenue and expenditure forecast for the next six months, staff
is confident that the City will have sufficient funds or liquidity to meet expenditure
requirements for the next six months.
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Compliance with City Investment Policy
During the second quarter, staff complied with all aspects of the investment policy. Attachment
C lists the major restrictions in the City’s investment policy compared with the portfolio’s actual
performance.
Investment Yields
Interest income on an accrual basis for the second quarter was $2.2 million; same as the prior
quarter. As of December 31, 2021, the yield to maturity of the City’s portfolio was 1.62
percent; in the prior quarter it was similar or at 1.61 percent. In the second quarter, LAIF’s
average yield was 0.22 percent while the average yield on the two-year and five-year Treasury
bonds was approximately 0.53 percent and 1.18 percent, respectively. In comparison, in the
prior quarter LAIF had a similar yield, however, the two-year and five-year Treasury bonds
yields were lower at 0.23 percent and 0.80 percent. The interest rates on new investments have
slowly begun to rise. As a result, the portfolio’s yields have plateaued and is expected to remain
at this level or slowly rise. Historically, the City’s portfolio yield has outperformed the two-year
and five-year Treasury bond rates and did so again starting over two years ago; this is an
expected occurrence during economic downturns. As the City’s laddered portfolio investments
mature in the next year or two, funds are expected to be reinvested, in both lower and higher
yielding securities compared to the yield on the matured investments. Graph 2 shows the City’s
yields and interest earnings for the past 20+ years.
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5.88%
4.17%
4.54%
City of Palo Alto
2.71%
1.93%1.62%
2 Yr. Treasury 0.53%
5-Yr. Treasury 2.47%
1.18%
LAIF
0.22%
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
$4.5
$5.0
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
5.0%
5.5%
6.0%
Int. Earnings
(Millions)Yields
Fiscal Year Quarters
Graph 2: Yields and Interest Earnings
City’s portfolio duration is 4.28 years.
Yield Trends
The Federal Open Market Committee (FOMC), for 16 consecutive meeting or since March 2020,
held the federal funds rate near zero (0 percent to 0.25 percent) at its December 2021 meeting.
However, the expectation is a possibility of several federal funds rate interest rate increases in
calendar year 2022, 2023, and 2024. The Committee members feel more confident in the
economic recovery helped by “progress on vaccinations and strong policy support” but have
acknowledged the “path of the economy continues to depend on the course of the virus.” They
highlighted the continued strength in the labor market and noted “Job gains have been solid in
recent months, and the unemployment rate has declined substantially”. The U.S. labor market
remains very tight, including near-record rates of quits and job vacancies, as well as a notable
pickup in wage growth. FOMC feels stronger to end pandemic induced (economic) support.
This has fueled the pressure to potentially raise interest rates in the near future to mitigate
persistent high inflation due to “supply chain bottlenecks and labor shortages continued to limit
businesses' ability to meet strong demand.” The outlook is the U.S. economy no longer needs
emergency levels of monetary policy support. As a result, the FOMC’s has accelerated the
winding down of its asset purchase program which was intended to provide enough liquidity in
the market as to keep the federal funds rate low. The wind down by mid -2022 of this program
will clear the path for rate hikes.
12
Packet Pg. 175
City of Palo Alto Page 7
Funds Held by the City or Managed Under Contract
Attachment A is a consolidated report of all City investment funds, including those not held
directly in the investment portfolio. These include cash in the City’s regular bank account with
US Bank and Wells Fargo. A description of the City’s banking relationships can be found in City
Council Staff Report ID # 7858 and ID # 11402. The bond proceeds, reserves, and debt service
payments being held by the City’s fiscal agents are subject to the requirements of the
underlying debt indenture. The trustees for the bond funds are U.S. Bank and California Asset
Management Program (CAMP). Bond funds with U.S. Bank are invested in federal agency and
money market mutual funds that consist exclusively of U.S. Treasury securities. Bond funds in
CAMP are invested in banker’s acceptance notes, certificates of deposit, commercial paper,
federal agency securities, and repurchase agreements. The most recent data on funds held by
the fiscal agent is as of December 31, 2021.
In January 2017, the City established a Section 115 Irrevocable Trust (Public Agencies Post -
Employment Benefits Trust) administered by Public Agency Retirement Services (PARS). This
fund is not governed by the City’s Investment Policy; however, it is discussed in this repor t for
administrative ease. It is the City’s intent to prefund pension costs and began to address the
Net Pension Liabilities (NPL) as calculated by Governmental Accounting Standards Board
Pronouncement No. 68 (GASB 68). The Section 115 Trust offered by PA RS has five portfolios
from which to choose in making investments of City funds. The City has selected the
“Moderately Conservative” portfolio which is the second most conservative. Additional
information on this trust can be found in City Council Staff Report ID # 7553. Through
December 31, 2021, principal investment contributions of $32.3 million have grown to $37.7
million and the net return for one and three year has been 5.68 percent and 9.24 percent.
Fiscal Impact
This is an information report.
Environmental Review
This information report is not a project under the California Environmental Quality Act;
therefore, an environmental review is not required.
Attachments:
• Attachment12.a: Attachment A Consolidated Report of Cash Management
• Attachment12.b: Attachment B Investment Portfolio
• Attachment12.c: Attachment C Investment Policy Compliance
12
Packet Pg. 176
Book Value Market Value
City Investment Portfolio (see Attachment B)565,577,285$ 561,703,006$
Other Funds Held by the City
Cash with Wells Fargo Bank 333,681 333,681
(includes general and imprest accounts)
Cash with US Bank 5,013,774 5,013,774
(includes general and imprest accounts)
Petty/Working Cash 11,927 11,927
Total - Other Funds Held By City 5,359,382 5,359,382
Funds Under Management of Third Party Trustees *
Debt Service Proceeds
US Bank Trust Services **
1999 Utility Revenue Bonds
Debt Service Fund - -
2009 Water Revenue Bonds (Build America Bonds)
Debt Service and Reserve Funds 2,551,100 2,551,100
2010 General Obligation (Library) Bond
Debt Service and Escrow Funds 2,961,465 2,961,465
2011 Utility Revenue Refunding Bonds
Debt Service and Reserve Funds 789,011 789,011
2012 University Ave. Parking Refunding Bonds
Reserve and Escrow Funds 1,704,897 1,704,897
2018 Capital Improvement (Golf Course & 2002B COP Refinance)
(Taxable- Green Bond) Certificates of Participation
Debt Service and Cost of Issuance Funds 17,996 17,996
2019 California Avenue Parking Garage Certificates of Participation
(Tax-Exempt and Taxable Bonds)
Construction and Cost of Issuance Funds 16,090 16,090
2021 Public Safety Building Certificates of Participation
Construction Debt Svc, Capitalized Interest, and Cost of Issuan 77,811,960 77,811,960
California Asset Management Program (CAMP) ***
2012 University Ave. Parking Refunding Bonds
Reserve Fund 2,706,022 2,706,022
2013 General Obligation (Library) Bond
Reserve Fund 598,895 598,895
Public Agencies Post-Employment Benefits Trust ****
Public Agency Retirement Services (PARS) 37,744,852 37,744,852
Total Under Trustee Management 126,902,288 126,902,288
GRAND TOTAL 697,838,955$ 693,964,676$
* These funds are subject to the requirements of the underlying debt indenture.
** U.S. Bank investments are in money market mutual funds that exclusively invest in U.S. Treasury securities.
*** CAMP investments are in money market mutual fund which invest in bankers acceptance, certificate of deposit,
commercial paper, federal agency securities, and repurchase agreements.
**** PARS investments are in moderately conservative index plus funds
Attachment A
Second Quarter, Fiscal Year 2021-22
(Unaudited)
Consolidated Report of Cash Management
City of Palo Alto Cash and Investments
12.a
Packet Pg. 177
City of Palo Alto City of Palo Alto
Administration Svcs. Dept.
250 Hamilton Ave., 4th Floor
Palo Alto, CA 94301
(650)329-2362
December 31, 2021
Fund ALL - Portfolio Listings
Investments by Fund
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket ValueCUSIPInvestment # Issuer
Purchase
Date Remaining Cost
YTM
360
YTM
365
LAIF & Fidelity Cash Accounts
Fidelity Investments158 4,162,014.15SYS158 10.01007/01/2020 4,162,014.15 0.009 0.0104,162,014.15
Local Agency Investment Fund159 12,495,913.80SYS159 10.22007/01/2020 12,494,335.08 0.216 0.22012,495,913.80
Subtotal and Average 16,657,927.95 16,657,927.95 16,656,349.23 0.165 0.168 1
Negotiable Certificates of Deposits
Comenity Capital Bank1959 NCD 245,000.0020033AM86 10/30/2023 6673.45010/30/2018 257,747.35 3.404 3.451245,000.00
American Federal Bank1476 NCD 245,000.0002600ADE4 09/30/2022 2722.45009/30/2015 248,942.05 2.418 2.451245,000.00
Allegiance Bank - Texas1844 NCD 245,000.0001748DAW6 09/29/2022 2712.05009/29/2017 248,197.25 2.022 2.051245,000.00
Alpine Bank1525 NCD 245,000.0002082CBG4 08/16/2023 5922.40002/16/2016 245,671.30 2.367 2.400245,000.00
American Eagle Bank2124 NCD 249,000.0002554BCN9 05/23/2022 1422.10009/27/2019 250,827.66 1.869 1.895250,317.21
Aneca Federal Credit Union2298 NCD 249,000.00034577AN6 03/20/2025 1,1741.10003/20/2020 250,177.77 1.085 1.100249,000.00
American State Bank OSCE1805 NCD 245,000.00029733BX9 05/30/2024 8802.30005/30/2017 254,084.60 2.270 2.301245,000.00
American Express Centurion Bk1986 NCD 245,000.0002589AA28 12/04/2023 7023.55012/04/2018 258,712.65 3.501 3.550245,000.00
Banner Capital Bank2453 NCD 249,000.0006654HAA6 11/28/2025 1,4270.45011/27/2020 242,670.42 0.493 0.500248,377.50
Bank of Wisconsin Dells2455 NCD 249,000.00065847EH4 07/28/2025 1,3041.05011/23/2020 249,134.46 0.542 0.549254,750.28
Texas Exchange Bank2346 NCD 249,000.0088241THJ2 06/13/2025 1,2591.00006/02/2020 248,905.38 0.986 1.000249,000.00
Bank West1472 NCD 245,000.00063615AX6 09/16/2022 2582.25009/16/2015 248,403.05 2.220 2.251245,000.00
Apex Bank1693 NCD 245,000.0003753XAN0 09/30/2022 2721.70009/30/2016 247,565.15 1.676 1.700245,000.00
Century Next Bank2074 NCD 245,000.00156634AY3 08/30/2024 9721.70008/30/2019 250,718.30 1.678 1.701245,000.00
BankUnited NA2474 NCD 249,000.00066519QC6 01/22/2026 1,4820.55001/22/2021 243,123.60 0.592 0.600248,377.50
BMO Harris Bank2480 NCD 249,000.0005600XBX7 10/27/2028 2,4911.00001/27/2021 239,468.28 1.019 1.034248,377.50
BMW Bank of North America2448 NCD 249,000.0005580AXU3 11/20/2025 1,4190.50011/20/2020 243,248.10 0.493 0.500249,000.00
BankFirst1767 NCD 245,000.0006644QAA9 04/13/2022 1022.00004/13/2017 246,227.45 1.973 2.001245,000.00
Balboa Thrift & Loan1984 NCD 245,000.0005765LAW7 11/30/2022 3333.25011/30/2018 251,529.25 3.207 3.252245,000.00
Citigroup1950 NCD 245,000.0017312QJ67 04/22/2023 4763.00004/24/2018 253,197.70245,000.00
Encore Bank2343 NCD 249,000.0029260MBH7 05/21/2027 1,9661.15005/21/2020 246,198.75 1.134 1.150249,000.00
Commercial Bank - Alma1772 NCD 245,000.00201282HM5 04/21/2022 1102.05004/21/2017 246,359.75 2.023 2.051245,000.00
First Carolina Bank2389 NCD 248,000.0031944MBB0 08/20/2025 1,3270.45008/20/2020 242,695.28 0.444 0.450248,000.00
Celtic Bank2063 NCD 245,000.0015118RRH2 08/30/2024 9721.85008/30/2019 251,688.50 1.826 1.852245,000.00
Central State Bank1538 NCD 245,000.0015524EAA2 02/16/2022 461.70002/16/2016 245,453.25 1.678 1.701245,000.00
Central State Bank IOWA2324 NCD 249,000.0015523RCP9 03/27/2025 1,1811.00003/27/2020 249,353.58 1.189 1.206246,510.00
Portfolio CPA
AP
Run Date: 01/10/2022 - 02:52 FI (PRF_FI) 7.3.11
Report Ver. 7.3.11
Attachment B12.b
Packet Pg. 178
December 31, 2021
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 2
CUSIP Investment #Issuer
Purchase
Date Remaining Cost
YTM
360
YTM
365
Negotiable Certificates of Deposits
First Iowa State Bank1840 NCD 245,000.00320636AC7 01/31/2022 301.90007/31/2017 245,347.90 1.876 1.902245,000.00
Choice Bank - Oshkosh WI1884 NCD 245,000.0017037VBT8 12/29/2022 3622.35012/29/2017 249,865.70 2.317 2.350245,000.00
Cinfed Fed Credtit Union Bank2504 NCD 249,000.0017248MAC1 03/04/2027 1,8880.65003/04/2021 240,441.87 0.691 0.701248,253.00
Citadel Federal Credit Union2267 NCD 245,000.0017286TAG0 02/27/2025 1,1531.65002/27/2020 250,431.65 1.668 1.691244,510.00
Citizens State Bank1541 NCD 250,000.0017670BAQ1 02/17/2023 4121.75002/19/2016 253,830.00 1.727 1.751250,000.00
Commercial Savings Bank1868 NCD 245,000.00202291AD2 10/18/2022 2902.10010/18/2017 248,496.15 2.071 2.100245,000.00
Enerbank USA2215 NCD 245,000.0029278TMR8 01/29/2025 1,1241.80001/29/2020 251,563.55 1.779 1.803245,000.00
City National Bk of Metropolis1791 NCD 245,000.0017801GBQ1 05/16/2022 1352.00005/15/2017 246,619.45 1.972 2.000245,000.00
Connexus Credit Union2643 NCD 249,000.0020825WAR1 12/23/2026 1,8171.25012/23/2021 248,277.90 1.273 1.291248,502.00
Capital One Bank USA NA2089 NCD 245,000.0014042TCP0 09/05/2024 9781.90009/05/2019 251,992.30 1.873 1.900245,000.00
Capital One Bank USA NA2609 NCD 249,000.0014042RQB0 11/17/2026 1,7811.10011/17/2021 246,739.08 1.084 1.100249,000.00
Commerce State Bank1797 NCD 245,000.0020070PJA6 05/23/2022 1422.00005/22/2017 246,702.75 1.972 2.000245,000.00
Community State Bank, IA1471 NCD 245,000.0020404MAN1 09/12/2022 2542.25009/11/2015 248,354.05 2.224 2.255245,000.00
Crescent Bank & Trust2296 NCD 248,000.00225645DN7 03/20/2025 1,1741.10003/20/2020 249,173.04 1.085 1.100248,000.00
Country Club Bank2477 NCD 249,000.00222327AD0 01/29/2030 2,9501.10001/29/2021 238,571.88 1.154 1.170247,506.00
Discover Bank / Delaware1956 NCD 245,000.00254673VJ2 10/24/2023 6613.35010/24/2018 257,176.50 3.304 3.350245,000.00
Dollar Bank FSB1756 NCD 245,000.0025665QAV7 03/08/2022 662.05003/08/2017 245,820.75 2.021 2.050245,000.00
Eaglemark Savings Bank2545 NCD 249,000.0027004PBV4 07/07/2026 1,6480.85007/07/2021 244,884.03 0.919 0.932248,004.00
Eagle Bank2040 NCD 245,000.0027002YEL6 04/28/2023 4822.65004/30/2019 252,146.65 2.615 2.651245,000.00
Farmers & Merchant State Bank2486 NCD 249,000.00308682BM4 02/12/2029 2,5991.00002/12/2021 238,517.10 1.037 1.052248,004.00
Flagstar Bank FSB2414 NCD 249,000.0033847E4E4 09/30/2024 1,0030.40009/30/2020 246,049.35 0.394 0.400249,000.00
FirstBank Puerto Rico1768 NCD 245,000.0033767A2C4 04/07/2022 962.10004/07/2017 246,220.10 2.072 2.101245,000.00
Poppy Bank2285 NCD 249,000.0073319FAF6 03/18/2025 1,1721.10003/18/2020 250,185.24 1.085 1.100249,000.00
First Federal S&L Bank1626 NCD 245,000.0032018YAW8 06/22/2023 5371.80006/22/2016 250,069.05 1.776 1.800245,000.00
1st Financial Bank2390 NCD 248,000.0032022RNT0 08/19/2025 1,3260.45008/19/2020 242,705.20 0.444 0.450248,000.00
First Farmers Bank & Trust2076 NCD 245,000.00320165JK0 09/04/2024 9771.75009/04/2019 251,036.80 1.727 1.751245,000.00
First Internet Bank1834 NCD 245,000.0032056GCQ1 07/14/2022 1942.05007/14/2017 247,364.25 2.023 2.051245,000.00
Farmers Insurance Group CU2479 NCD 249,000.0030960QAK3 01/27/2026 1,4870.50001/27/2021 242,578.29 0.543 0.550248,377.50
First Oklahoma Bank2451 NCD 249,000.00335857CK2 11/30/2026 1,7940.65011/30/2020 241,310.88 0.691 0.701248,253.00
Farmers & Merchant Bank1735 NCD 245,000.0030781TBD9 01/18/2022 172.05001/18/2017 245,220.50 2.021 2.050245,000.00
First National Bank of America2465 NCD 249,000.0032110YRQ0 12/31/2026 1,8250.60012/31/2020 240,399.54 0.625 0.633248,502.00
FNB Bank Inc.1863 NCD 245,000.00330459CB2 10/13/2023 6502.25010/13/2017 252,239.75 2.220 2.251245,000.00
Portfolio CPA
AP
Run Date: 01/10/2022 - 02:52 FI (PRF_FI) 7.3.11
Report Ver. 7.3.11
12.b
Packet Pg. 179
December 31, 2021
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 3
CUSIP Investment #Issuer
Purchase
Date Remaining Cost
YTM
360
YTM
365
Negotiable Certificates of Deposits
Franklin Synergy Bank1771 NCD 103,000.0035471TCV2 01/31/2022 302.00004/04/2017 103,155.53 1.972 1.999103,000.00
First Northeast Bank1779 NCD 245,000.0033583FAA0 10/19/2022 2912.10004/19/2017 248,508.40 2.072 2.101245,000.00
First State Bank - Dequeen1824 NCD 245,000.00336460CH1 04/29/2022 1182.00006/30/2017 246,428.35 1.973 2.000245,000.00
First Technology Federal Credi1955 NCD 245,000.0033715LCM0 10/17/2023 6543.40010/17/2018 257,306.35 3.355 3.401245,000.00
First Community Credit Union2554 NCD 249,000.0031986JAD3 02/26/2027 1,8820.85007/28/2021 242,981.67 0.892 0.905248,253.00
Firstier Bank2061 NCD 245,000.0033766LAJ7 08/23/2024 9651.95008/23/2019 252,305.90 1.925 1.952245,000.00
First Kentucky Bank1856 NCD 245,000.0032065TAW1 10/06/2022 2782.10010/06/2017 248,366.30 2.072 2.101245,000.00
First Western Bank & Trust1770 NCD 245,000.0033749VAM0 04/07/2022 962.00004/07/2017 246,153.95 1.973 2.001245,000.00
Gesa Credit Union2456 NCD 249,000.0037424PAC8 11/30/2027 2,1590.80011/30/2020 239,988.69 0.825 0.836248,377.50
Great Plains Bank1865 NCD 245,000.0039115UBB8 07/25/2022 2052.00010/25/2017 247,418.15 1.972 2.000245,000.00
Grant County Bank West V.2042 NCD 245,000.00387625AA4 05/08/2024 8582.55005/08/2019 255,363.50 2.513 2.548245,000.00
Goldman Sachs Bank USA / NY1951 NCD 245,000.0038148PJ81 05/09/2023 4933.15005/09/2018 253,913.10 3.106 3.150245,000.00
Haddon Savings Bank2447 NCD 207,000.00404730DA8 10/20/2025 1,3880.35011/16/2020 201,315.78 0.527 0.535205,137.00
Bank Hapoalim BM2457 NCD 249,000.0006251A2Q2 12/15/2025 1,4440.50012/14/2020 242,989.14 0.543 0.550248,377.50
Investors Community Bank1765 NCD 245,000.0046147USQ4 09/23/2022 2652.20003/24/2017 248,412.85 2.172 2.202245,000.00
Industrial & Com Bk of China1773 NCD 245,000.0045581EAC5 04/12/2022 1012.15004/12/2017 246,318.10 2.121 2.151245,000.00
Inst. for Sav in Newburyport2556 NCD 249,000.0045780PAQ8 07/29/2026 1,6700.90007/29/2021 245,255.04 0.888 0.900249,000.00
Jonesboro State Bank2452 NCD 249,000.0048040PJL0 11/26/2027 2,1550.75011/27/2020 239,323.86 0.790 0.801248,128.50
Kansas State Bank Manhattan1798 NCD 245,000.0050116CAX7 05/31/2024 8812.50005/31/2017 255,253.25 2.465 2.500245,000.00
Knox TVA Empl Credit Union2140 NCD 248,000.00499724AF9 10/31/2023 6683.35010/24/2019 260,447.12 2.210 2.241258,564.80
Lakeside Bank1686 NCD 245,000.0051210SLR6 09/18/2023 6251.80009/16/2016 245,815.85 1.775 1.800245,000.00
Legacy Bank & Trust Company2469 NCD 249,000.0052470QAN4 12/21/2028 2,5460.85012/30/2020 236,373.21 0.889 0.901248,004.00
Legends Bank1533 NCD 245,000.0052465JGM3 02/11/2022 411.70002/12/2016 245,602.70 1.678 1.701245,000.00
Live Oak Banking Company2599 NCD 249,000.00538036SS4 10/18/2027 2,1161.10010/18/2021 244,532.94 1.135 1.151248,253.00
Bank Leumi USA NY2335 NCD 249,000.00063248KR8 03/31/2023 4541.45003/31/2020 252,167.28 1.430 1.449249,000.00
Malaga Bank FSB2402 NCD 249,000.0056102AAQ9 06/30/2025 1,2760.40008/31/2020 243,718.71 0.394 0.400249,000.00
Marathon Savings Bank1818 NCD 245,000.0056585YAA8 06/28/2022 1782.05006/28/2017 247,178.05 2.023 2.051245,000.00
MB Financial Bank NA1730 NCD 245,000.0055266CUF1 01/13/2022 122.10001/13/2017 245,164.15 2.072 2.101245,000.00
Mercantile Bank of Michigan1793 NCD 245,000.0058740XZF0 05/12/2022 1312.10005/12/2017 246,661.10 2.071 2.100245,000.00
Mechanics Coop Bank1803 NCD 245,000.00583626AC0 05/26/2022 1452.05005/26/2017 246,788.50 2.023 2.051245,000.00
Medallion Bank - Salt Lake2010 NCD 245,000.0058404DDB4 01/03/2024 7323.30001/10/2019 257,940.90 3.254 3.299245,000.00
Landmark Community Bank2123 NCD 249,000.0051507LBU7 06/27/2022 1772.35009/27/2019 251,569.68 1.868 1.894252,037.80
Portfolio CPA
AP
Run Date: 01/10/2022 - 02:52 FI (PRF_FI) 7.3.11
Report Ver. 7.3.11
12.b
Packet Pg. 180
December 31, 2021
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 4
CUSIP Investment #Issuer
Purchase
Date Remaining Cost
YTM
360
YTM
365
Negotiable Certificates of Deposits
Merchants State Bank2059 NCD 245,000.00589227AG2 08/30/2024 9721.80008/30/2019 251,343.05 1.775 1.800245,000.00
Merrick Bank2610 NCD 249,000.0059013KPS9 05/19/2026 1,5991.00011/19/2021 247,901.91 1.053 1.068248,253.00
Merchants National Bank OH1534 NCD 245,000.00588806AV1 02/17/2022 471.80002/17/2016 245,656.60 1.776 1.801245,000.00
Mid-Missouri Bank1806 NCD 245,000.0059541KBL0 06/10/2022 1602.05006/12/2017 246,972.25 2.023 2.051245,000.00
Minwest Bank MV2478 NCD 249,000.0060425SJQ3 01/29/2029 2,5851.00001/28/2021 238,561.92 1.024 1.039248,253.00
Maine Savings Credit Union2144 NCD 245,000.00560507AN5 11/08/2024 1,0421.90011/08/2019 252,158.90 1.875 1.902245,000.00
Mainstreet Bank2038 NCD 245,000.0056065GAG3 04/26/2024 8462.60004/26/2019 255,547.25 2.567 2.602245,000.00
Mountain America FD Credit Uni2202 NCD 249,000.0062384RAC0 11/08/2022 3112.30001/08/2020 253,200.63 1.928 1.955251,365.50
Morgan Stanley Bank NA1890 NCD 245,000.0061747MF63 01/11/2023 3752.65001/11/2018 250,752.60 2.613 2.650245,000.00
Morgan Stanley Bank NA1993 NCD 245,000.0061760ASZ3 12/06/2023 7043.55012/06/2018 258,744.50 3.501 3.550245,000.00
Municipal Trust and Savings1800 NCD 245,000.00625925AP7 05/02/2024 8522.35005/22/2017 254,177.70 2.317 2.349245,000.00
Nebraska State Bank & Trust1466 NCD 245,000.0063969ABL7 08/26/2022 2372.25008/26/2015 248,885.70 2.220 2.251245,000.00
Numerica Credit Union1991 NCD 245,000.0067054NAN3 11/28/2023 6963.55011/28/2018 258,617.10 3.503 3.551245,000.00
South Ottumwa Savings Bank1851 NCD 245,000.00839145AA7 09/29/2022 2712.05009/29/2017 248,197.25 2.022 2.051245,000.00
Ottawa Savings Bank1892 NCD 245,000.0068956HAC7 01/19/2023 3832.40001/19/2018 250,220.95 2.368 2.401245,000.00
Pacific Western Bank2420 NCD 249,000.0069506YSA8 09/30/2025 1,3680.45009/30/2020 243,292.92 0.443 0.450249,000.00
Pathfinder Bank2429 NCD 249,000.0070320KAR2 10/14/2025 1,3820.50010/13/2020 243,599.19 0.533 0.540248,502.00
People's Bank2468 NCD 249,000.00710665GD6 12/31/2029 2,9210.90012/30/2020 235,016.16 0.967 0.981247,257.00
Ponce De Leon Federal Bank1795 NCD 245,000.00732333AH2 05/26/2022 1452.10005/26/2017 246,837.50 2.072 2.101245,000.00
Pentagon Fed Cred Union2565 NCD 249,000.0070962LAE2 09/01/2026 1,7040.85009/01/2021 244,433.34 0.889 0.901248,377.50
Preferred Bank LA California2047 NCD 245,000.00740367HP5 08/16/2024 9582.00008/16/2019 252,599.90 1.972 2.000245,000.00
Parkside Financial Bank1833 NCD 245,000.0070147ACE2 03/15/2023 4382.10007/19/2017 249,951.45 2.072 2.101245,000.00
Pony Express Bank2488 NCD 249,000.00732770BJ0 02/25/2030 2,9771.00002/24/2021 236,554.98 1.055 1.070247,506.00
Providence Bank1445 NCD 245,000.00743738BQ8 02/25/2022 552.10002/26/2015 245,918.75 2.072 2.101245,000.00
Rayond James Bank NA2188 NCD 245,000.0075472RAU5 12/30/2024 1,0941.85012/30/2019 251,884.50 1.824 1.850245,000.00
Sallie Mae Bank2102 NCD 245,000.007954504D4 09/18/2024 9911.90009/18/2019 252,026.60 1.873 1.900245,000.00
State Bank of India2403 NCD 249,000.00856285UJ8 09/04/2025 1,3420.50009/04/2020 243,995.10 0.493 0.500249,000.00
Stifel Bank & Trust1953 NCD 245,000.0086063QAK1 05/15/2023 4992.95005/15/2018 253,344.70 2.911 2.951245,000.00
San Francisco Credit Union2297 NCD 249,000.0079772FAF3 03/27/2025 1,1811.10003/27/2020 250,150.38 1.085 1.100249,000.00
Summit Community Bank1888 NCD 245,000.0086604XMN3 01/26/2022 252.25001/26/2018 245,352.80 2.220 2.251245,000.00
Sunwest Bank2491 NCD 249,000.0086804DCQ9 02/17/2028 2,2380.80002/17/2021 239,191.89 0.861 0.873247,755.00
Somerset Trust Company Bank1616 NCD 245,000.00835104BL3 06/12/2023 5271.80006/10/2016 250,002.90 1.776 1.800245,000.00
Portfolio CPA
AP
Run Date: 01/10/2022 - 02:52 FI (PRF_FI) 7.3.11
Report Ver. 7.3.11
12.b
Packet Pg. 181
December 31, 2021
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 5
CUSIP Investment #Issuer
Purchase
Date Remaining Cost
YTM
360
YTM
365
Negotiable Certificates of Deposits
Slovak Savings Bank1872 NCD 245,000.0083158TAA0 10/20/2022 2922.10010/20/2017 248,520.65 2.072 2.101245,000.00
Security Bank1777 NCD 245,000.00814107AQ1 04/19/2022 1082.00004/19/2017 246,298.50 1.973 2.001245,000.00
Southwest Financial Fed. Credi2333 NCD 249,000.0084485EAG2 03/28/2024 8171.15003/31/2020 251,437.71 1.134 1.150249,000.00
Synchrony Bank2563 NCD 249,000.0087165FZN7 08/20/2026 1,6920.90008/20/2021 245,095.68 0.887 0.900249,000.00
Texas Bank Henderson2464 NCD 249,000.00882214AA7 12/23/2025 1,4520.45012/23/2020 242,154.99 0.483 0.490248,502.00
Third Federal Savings and Loan2157 NCD 245,000.0088413QCK2 11/25/2024 1,0591.95011/25/2019 252,528.85 1.923 1.950245,000.00
Crossfirst Bank of Leawood1804 NCD 245,000.0022766ABF1 06/09/2023 5242.15006/09/2017 250,860.40 2.121 2.151245,000.00
Toyota Financial Savings Bank2551 NCD 249,000.0089235MLC3 07/15/2026 1,6560.95007/15/2021 245,917.38 0.936 0.950249,000.00
Traverse City State Bank1820 NCD 245,000.00894333FF5 06/28/2022 1782.00006/28/2017 247,129.05 1.972 2.000245,000.00
UBS Bank USA1815 NCD 250,000.0090348JBR0 01/20/2022 192.25006/15/2017 250,277.50 2.219 2.249250,000.00
United Community Bank GA1749 NCD 245,000.0090984P5A9 03/01/2022 592.05003/01/2017 245,735.00 2.021 2.050245,000.00
Uinta Bank1639 NCD 245,000.00903572BC8 12/26/2023 7241.70006/24/2016 251,330.80 1.676 1.700245,000.00
Greenstate Credit Union2552 NCD 249,000.0039573LBM9 07/21/2026 1,6620.95007/21/2021 245,867.58 0.937 0.950249,000.00
USAlliance Federal Credit Unio2325 NCD 249,000.0090352RAU9 03/31/2025 1,1851.15003/31/2020 249,199.20 1.154 1.170248,751.00
USF Federal Credit Union2546 NCD 249,000.0090353EAR4 07/15/2031 3,4821.75007/15/2021 247,364.07 1.801 1.826247,257.00
Vystar Credit Union2136 NCD 245,000.0092891CCE0 12/11/2023 7093.65010/18/2019 259,295.75 2.170 2.200259,087.50
Washington Federal2049 NCD 245,000.00938828BJ8 08/23/2024 9652.05008/23/2019 252,945.35 2.024 2.052245,000.00
Western State Bank2342 NCD 248,000.0095960NKE6 11/13/2025 1,4121.05005/13/2020 247,491.60 1.035 1.050248,000.00
Washington First Bank1745 NCD 245,000.00940727AH3 02/23/2022 532.05002/23/2017 245,661.50 2.021 2.050245,000.00
Wyoming Bank & Trust2446 NCD 249,000.0098321PAJ9 11/28/2025 1,4270.50011/27/2020 243,155.97 0.515 0.522248,626.50
Woodford State Bank1459 NCD 245,000.00979424AA6 07/29/2022 2092.35008/12/2015 248,405.50 2.317 2.349245,000.00
Washington County Bank1842 NCD 245,000.0093754PAN7 05/11/2022 1302.05008/11/2017 246,604.75 2.021 2.050245,000.00
Subtotal and Average 35,334,247.59 35,325,000.00 35,523,719.38 1.680 1.704 901
Corporate Medium Term Bonds
Apple, Inc.2082 MTN 550,000.00037833AK6 05/03/2023 4872.40008/29/2019 563,117.50 1.726 1.750562,672.00
Apple, Inc.2323 MTN 750,000.00037833AY6 02/09/2022 392.15003/19/2020 751,342.50 1.583 1.605757,567.50
Apple, Inc.2401 MTN 1,500,000.00037833DF4 01/13/2025 1,1082.75008/28/2020 1,567,050.00 0.620 0.6281,637,094.00
Apple, Inc.2489 MTN 700,000.00037833EB2 02/08/2026 1,4990.70002/08/2021 685,706.00 0.684 0.694700,201.31
Alphabet (Google) Inc.2507 MTN 200,000.0002079KAH0 08/15/2025 1,3220.45003/01/2021 195,404.00 0.668 0.678198,001.92
Johnson & Johnson2466 MTN 2,000,000.00478160CN2 09/01/2025 1,3390.55012/23/2020 1,957,800.00 0.479 0.4862,005,913.30
Johnson & Johnson2508 MTN 2,000,000.00478160BY9 03/01/2026 1,5202.45003/01/2021 2,086,800.00 0.812 0.8232,151,231.80
Johnson & Johnson2509 MTN 1,000,000.00478160BY9 03/01/2026 1,5202.45003/01/2021 1,043,400.00 0.812 0.8241,075,596.51
Portfolio CPA
AP
Run Date: 01/10/2022 - 02:52 FI (PRF_FI) 7.3.11
Report Ver. 7.3.11
12.b
Packet Pg. 182
December 31, 2021
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 6
CUSIP Investment #Issuer
Purchase
Date Remaining Cost
YTM
360
YTM
365
Corporate Medium Term Bonds
Microsoft Corporation1878 MTN 100,000.00594918BW3 02/06/2022 362.40012/11/2017 100,012.00 2.292 2.324100,297.00
Microsoft Corporation2212 MTN 1,800,000.00594918BX1 02/06/2024 7662.87501/22/2020 1,873,476.00 1.727 1.7511,875,420.00
Microsoft Corporation2450 MTN 2,920,000.00594918BJ2 11/03/2025 1,4023.12511/18/2020 3,114,851.60 0.572 0.5803,264,676.80
Microsoft Corporation2506 MTN 180,000.00594918BJ2 11/03/2025 1,4023.12503/01/2021 192,011.40 0.753 0.763198,447.74
Stanford University2046 MTN 2,000,000.00525555AB4 02/01/2024 7616.87505/14/2019 2,236,060.00 2.367 2.4002,396,540.00
Stanford University2182 MTN 1,000,000.00525555AB4 02/01/2024 7616.87512/12/2019 1,118,030.00 1.934 1.9601,194,280.00
Yale University2376 MTN 2,000,000.0098459LAA1 04/15/2025 1,2000.87307/01/2020 1,979,600.00 0.616 0.6252,022,920.00
Yale University2511 MTN 3,000,000.0098459LAA1 04/15/2025 1,2000.87303/01/2021 2,969,400.00 0.638 0.6463,027,000.00
Subtotal and Average 23,167,859.88 21,700,000.00 22,434,061.00 1.019 1.034 1,132
Federal Agency Bonds
Apple, Inc.2053 MTN 1,500,000.00037833CU2 05/11/2024 8612.85008/06/2019 1,562,295.00 1.998 2.0251,554,000.00
Federal Agricultural Mortgage1130 1,500,000.0031315PPX1 07/05/2022 1852.20012/13/2012 1,514,895.00 1.930 1.9571,531,633.50
Federal Agricultural Mortgage1134 750,000.0031315PB32 11/21/2022 3242.00012/19/2012 760,927.50 2.081 2.110742,642.50
Federal Agricultural Mortgage1137 1,500,000.0031315PUE7 12/27/2022 3602.18001/04/2013 1,527,465.00 2.165 2.1961,497,853.50
Federal Agricultural Mortgage1141 1,500,000.0031315PUE7 12/27/2022 3602.18001/08/2013 1,527,465.00 2.195 2.2251,493,910.00
Federal Agricultural Mortgage1144 1,500,000.0031315PUE7 12/27/2022 3602.18001/23/2013 1,527,465.00 2.111 2.1411,505,190.00
Federal Agricultural Mortgage1147 2,595,000.0031315PUE7 12/27/2022 3602.18001/28/2013 2,642,514.45 2.199 2.2292,583,504.15
Federal Agricultural Mortgage1279 1,250,000.0031315PPX1 07/05/2022 1852.20004/23/2014 1,262,412.50 2.889 2.9301,183,888.32
Federal Agricultural Mortgage1428 404,000.0031315PL23 03/27/2024 8163.33001/09/2015 426,389.68 2.540 2.575428,846.00
Federal Agricultural Mortgage1433 1,604,000.0031315PD89 06/12/2023 5272.61001/22/2015 1,650,660.36 2.269 2.3011,641,594.55
Federal Agricultural Mortgage1447 1,450,000.0031315PD89 06/12/2023 5272.61002/09/2015 1,492,180.50 2.377 2.4101,471,764.50
Federal Agricultural Mortgage1452 1,000,000.003130H0AJ2 03/01/2022 592.15003/05/2015 1,003,000.00 2.120 2.1501,000,000.00
Federal Agricultural Mortgage1576 1,000,000.0031315PZS1 01/24/2023 3882.13004/06/2016 1,018,220.00 1.839 1.8641,016,839.00
Federal Agricultural Mortgage1580 474,000.0031315PEM7 08/04/2025 1,3114.35004/08/2016 527,609.40 2.296 2.328553,883.22
Federal Agricultural Mortgage1595 1,500,000.0031315P2J7 05/01/2024 8513.30004/21/2016 1,584,540.00 2.084 2.1121,630,830.00
Federal Agricultural Mortgage1604 1,500,000.0031315P2J7 05/01/2024 8513.30004/26/2016 1,584,540.00 2.159 2.1891,621,770.00
Federal Agricultural Mortgage1617 500,000.0031315PUE7 12/27/2022 3602.18005/26/2016 509,155.00 1.844 1.870509,540.00
Federal Agricultural Mortgage1665 2,000,000.003132X0BH3 07/15/2022 1952.38007/25/2016 2,022,840.00 1.499 1.5202,097,820.00
Federal Agricultural Mortgage1710 1,500,000.0031315PRA9 02/03/2026 1,4944.81010/18/2016 1,716,180.00 2.131 2.1601,832,850.00
Federal Agricultural Mortgage1755 1,000,000.003132X0PX3 02/23/2022 532.10002/23/2017 1,002,500.00 2.034 2.0631,001,745.00
Federal Agricultural Mortgage1758 1,500,000.003132X0PX3 02/23/2022 532.10003/02/2017 1,503,750.00 2.085 2.1141,498,950.00
Federal Agricultural Mortgage1769 1,500,000.003132X0RS2 04/06/2022 952.07504/06/2017 1,507,020.00 2.046 2.0751,500,000.00
Portfolio CPA
AP
Run Date: 01/10/2022 - 02:52 FI (PRF_FI) 7.3.11
Report Ver. 7.3.11
12.b
Packet Pg. 183
December 31, 2021
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 7
CUSIP Investment #Issuer
Purchase
Date Remaining Cost
YTM
360
YTM
365
Federal Agency Bonds
Federal Agricultural Mortgage1788 1,000,000.003132X0NZ0 01/03/2022 22.10005/04/2017 1,000,000.00 1.938 1.9651,005,980.00
Federal Agricultural Mortgage1817 1,000,000.0031315PPX1 07/05/2022 1852.20006/14/2017 1,009,930.00 1.908 1.9341,012,720.00
Federal Agricultural Mortgage1830 1,500,000.003132X0UA7 06/29/2022 1791.88006/29/2017 1,512,105.00 1.903 1.9301,496,430.00
Federal Agricultural Mortgage1831 1,000,000.003132X0UA7 06/29/2022 1791.88006/29/2017 1,008,070.00 1.923 1.949996,681.00
Federal Agricultural Mortgage1867 1,000,000.003132X0WL1 08/23/2024 9652.25010/06/2017 1,033,940.00 2.332 2.365992,720.00
Federal Agricultural Mortgage1877 1,500,000.003132X0ZZ7 12/12/2022 3452.26012/12/2017 1,527,720.00 2.229 2.2601,500,000.00
Federal Agricultural Mortgage1893 1,000,000.003130H0AU7 08/01/2024 9432.62501/09/2018 1,043,170.00 2.546 2.5811,002,590.00
Federal Agricultural Mortgage1901 1,500,000.003130H0AU7 08/01/2024 9432.62501/11/2018 1,564,755.00 2.623 2.6601,496,847.90
Federal Agricultural Mortgage1912 2,000,000.003132X0G39 01/30/2023 3942.50001/30/2018 2,044,960.00 2.472 2.5071,999,320.00
Federal Agricultural Mortgage1915 1,500,000.003132X0G39 01/30/2023 3942.50001/30/2018 1,533,720.00 2.481 2.5151,498,887.00
Federal Agricultural Mortgage1921 2,000,000.003132X0G39 01/30/2023 3942.50001/31/2018 2,044,960.00 2.556 2.5921,991,412.00
Federal Agricultural Mortgage1924 1,100,000.0031315PZS1 01/24/2023 3882.13002/08/2018 1,120,042.00 2.578 2.6141,075,360.00
Federal Agricultural Mortgage1928 1,500,000.003132X0H87 02/22/2023 4172.60002/22/2018 1,537,110.00 2.564 2.6001,500,000.00
Federal Agricultural Mortgage1936 1,500,000.003132X0L33 02/21/2023 4162.77002/23/2018 1,539,915.00 2.732 2.7701,500,000.00
Federal Agricultural Mortgage1999 549,000.0031315P4B2 01/30/2024 7593.46012/14/2018 579,310.29 3.018 3.060559,334.93
Federal Agricultural Mortgage2034 1,000,000.0031422BEJ5 04/09/2024 8292.35004/09/2019 1,034,030.00 2.365 2.398997,730.00
Federal Agricultural Mortgage2035 678,000.0031315PCY3 11/20/2024 1,0545.25004/08/2019 759,217.62 2.420 2.454776,872.74
Federal Agricultural Mortgage2098 550,000.0031315PEM7 08/04/2025 1,3114.35009/09/2019 612,205.00 1.659 1.683632,086.95
Federal Agricultural Mortgage2301 1,569,000.0031315PB99 11/19/2027 2,1482.85003/11/2020 1,697,579.55 1.050 1.0641,775,240.34
Federal Agricultural Mortgage2340 Call 2,000,000.0031422BZS2 05/13/2030 3,0541.50005/13/2020 1,958,180.00 1.479 1.5002,000,000.00
Federal Agricultural Mortgage2366 Call 1,750,000.0031422BF54 06/24/2030 3,0961.40006/24/2020 1,703,432.50 1.380 1.4001,750,000.00
Federal Agricultural Mortgage2367 Call 2,000,000.0031422BF54 06/24/2030 3,0961.40006/24/2020 1,946,780.00 1.380 1.4002,000,000.00
Federal Agricultural Mortgage2381 Call 1,500,000.0031422BH78 07/08/2030 3,1101.40007/08/2020 1,459,725.00 1.380 1.4001,500,000.00
Federal Agricultural Mortgage2425 Call 2,000,000.0031422BX54 09/27/2030 3,1911.30010/08/2020 1,931,520.00 1.286 1.3042,000,000.00
Federal Agricultural Mortgage2435 Call 2,000,000.0031422BZ45 10/21/2030 3,2151.28010/21/2020 1,929,100.00 1.262 1.2802,000,000.00
Federal Agricultural Mortgage2439 Call 2,000,000.0031422B2E9 10/29/2030 3,2231.34010/29/2020 1,935,320.00 1.321 1.3402,000,000.00
Federal Agricultural Mortgage2449 1,500,000.0031422B3D0 11/20/2030 3,2451.15011/20/2020 1,431,945.00 1.134 1.1501,500,000.00
Federal Agricultural Mortgage2458 Call 1,500,000.0031422B4A5 12/11/2030 3,2661.30012/11/2020 1,452,390.00 1.282 1.3001,500,000.00
Federal Agricultural Mortgage2459 Call 2,000,000.0031422B3W8 12/16/2030 3,2711.45012/16/2020 1,948,520.00 1.430 1.4502,000,000.00
Federal Agricultural Mortgage2461 1,000,000.0031422B3D0 11/20/2030 3,2451.15012/09/2020 954,630.00 1.144 1.160999,000.00
Federal Agricultural Mortgage2471 1,500,000.0031422B6K1 01/15/2026 1,4750.48001/15/2021 1,458,915.00 0.493 0.5001,498,500.00
Federal Agricultural Mortgage2473 Call 1,500,000.0031422B6A3 01/15/2031 3,3011.29001/15/2021 1,444,650.00 1.319 1.3381,493,250.00
Portfolio CPA
AP
Run Date: 01/10/2022 - 02:52 FI (PRF_FI) 7.3.11
Report Ver. 7.3.11
12.b
Packet Pg. 184
December 31, 2021
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 8
CUSIP Investment #Issuer
Purchase
Date Remaining Cost
YTM
360
YTM
365
Federal Agency Bonds
Federal Agricultural Mortgage2484 Call 1,000,000.0031422B7E4 01/28/2031 3,3141.32001/28/2021 964,590.00 1.301 1.3201,000,000.00
Federal Agricultural Mortgage2496 Call 1,500,000.0031422XAW2 02/25/2031 3,3421.53002/25/2021 1,462,425.00 1.509 1.5301,500,000.00
Federal Agricultural Mortgage2513 1,000,000.0031422XCB6 03/04/2031 3,3491.47003/04/2021 977,790.00 1.581 1.602987,760.00
Federal Agricultural Mortgage2519 1,500,000.0031422XDX7 03/27/2026 1,5460.83003/29/2021 1,477,155.00 0.828 0.8401,499,250.00
Federal Agricultural Mortgage2524 1,500,000.0031422XDX7 03/27/2026 1,5460.83003/31/2021 1,477,155.00 0.913 0.9261,492,950.00
Federal Agricultural Mortgage2527 Call 1,500,000.0031422XEE8 04/07/2031 3,3832.07004/07/2021 1,494,855.00 2.074 2.1031,495,500.00
Federal Agricultural Mortgage2529 2,000,000.0031422XEL2 04/13/2028 2,2941.37504/15/2021 1,992,820.00 1.311 1.3302,005,980.00
Federal Agricultural Mortgage2530 1,500,000.0031422XFJ6 04/29/2031 3,4051.66004/29/2021 1,488,660.00 1.627 1.6501,501,350.00
Federal Agricultural Mortgage2533 1,500,000.0031422XDX7 03/27/2026 1,5460.83005/20/2021 1,477,155.00 0.864 0.8761,496,725.50
Federal Agricultural Mortgage2540 255,000.0031422XDX7 03/27/2026 1,5460.83006/08/2021 251,116.35 0.820 0.831254,979.09
Federal Agricultural Mortgage2593 1,000,000.0031422XNM0 10/05/2026 1,7381.05010/05/2021 990,010.00 1.035 1.0501,000,000.00
Federal Agricultural Mortgage2621 1,000,000.0031422XPS5 11/17/2026 1,7811.15011/17/2021 993,800.00 1.272 1.290993,220.00
Federal Agricultural Mortgage2625 1,000,000.0031422XQM7 12/01/2026 1,7951.32012/01/2021 1,001,670.00 1.301 1.3201,000,000.00
Federal Agricultural Mortgage2640 Call 1,500,000.0031422XRY0 12/29/2031 3,6492.15012/29/2021 1,497,090.00 2.120 2.1501,500,000.00
Federal Farm Credit Bank .1241 500,000.003133ECRH9 06/06/2023 5212.45001/09/2014 515,070.00 3.383 3.430460,870.00
Federal Farm Credit Bank .1526 625,000.003133EAA65 07/26/2023 5712.12501/27/2016 642,068.75 2.024 2.052628,150.00
Federal Farm Credit Bank .1563 500,000.0031331XSS2 03/14/2022 725.16003/17/2016 504,920.00 1.876 1.902591,815.50
Federal Farm Credit Bank .1596 1,000,000.003133ECPF5 05/13/2022 1321.87504/21/2016 1,006,260.00 1.578 1.6001,015,820.00
Federal Farm Credit Bank .1615 1,000,000.003133EC7D0 12/13/2024 1,0772.12505/13/2016 1,037,720.00 1.930 1.9561,013,220.00
Federal Farm Credit Bank .1659 500,000.0031331XSS2 03/14/2022 725.16007/08/2016 504,920.00 1.215 1.232607,470.00
Federal Farm Credit Bank .1787 900,000.003133EEVD9 03/25/2024 8142.30005/04/2017 933,993.00 2.274 2.306899,631.00
Federal Farm Credit Bank .1822 500,000.003133EDWX6 10/07/2024 1,0102.91006/21/2017 529,230.00 2.143 2.172524,725.00
Federal Farm Credit Bank .1843 445,000.003133ED6R8 11/07/2022 3102.93009/14/2017 455,568.75 1.870 1.896467,436.90
Federal Farm Credit Bank .1932 1,500,000.003133EJDE6 02/16/2023 4112.57002/16/2018 1,539,285.00 2.605 2.6421,494,972.47
Federal Farm Credit Bank .2016 500,000.003133EEG79 09/07/2023 6142.15001/15/2019 514,505.00 2.656 2.693488,198.50
Federal Farm Credit Bank .2017 650,000.003133EC2C7 11/09/2023 6772.13001/15/2019 669,851.00 2.662 2.699633,373.65
Federal Farm Credit Bank .2226 Call 1,000,000.003133ELJU9 01/27/2026 1,4871.98001/29/2020 1,001,280.00 1.955 1.982999,850.00
Federal Farm Credit Bank .2314 1,000,000.003133EAG44 08/03/2026 1,6752.63003/13/2020 1,060,320.00 1.089 1.1041,093,840.00
Federal Farm Credit Bank .2371 Call 1,500,000.003133ELQ31 07/01/2030 3,1031.33007/01/2020 1,453,470.00 1.311 1.3301,500,000.00
Federal Farm Credit Bank .2372 Call 1,500,000.003133ELQ31 07/01/2030 3,1031.33007/01/2020 1,453,470.00 1.311 1.3301,500,000.00
Federal Farm Credit Bank .2391 Call 1,500,000.003133EL3H5 08/12/2025 1,3190.57008/12/2020 1,466,865.00 0.587 0.5951,498,125.00
Federal Farm Credit Bank .2406 Call 1,500,000.003133EL4W1 08/25/2025 1,3320.61009/03/2020 1,468,140.00 0.611 0.6201,499,250.00
Portfolio CPA
AP
Run Date: 01/10/2022 - 02:52 FI (PRF_FI) 7.3.11
Report Ver. 7.3.11
12.b
Packet Pg. 185
December 31, 2021
Par Value
Days To
Maturity
Maturity
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Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 9
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Purchase
Date Remaining Cost
YTM
360
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365
Federal Agency Bonds
Federal Farm Credit Bank .2408 Call 1,500,000.003133EL4W1 08/25/2025 1,3320.61009/10/2020 1,468,140.00 0.611 0.6201,499,250.00
Federal Farm Credit Bank .2416 Call 1,500,000.003133EL7K4 09/16/2025 1,3540.55009/22/2020 1,461,480.00 0.542 0.5491,500,000.00
Federal Farm Credit Bank .2417 Call 1,500,000.003133EMBH4 09/29/2025 1,3670.53009/29/2020 1,463,055.00 0.522 0.5301,500,000.00
Federal Farm Credit Bank .2423 Call 1,500,000.003133EMBJ0 09/29/2025 1,3670.53009/29/2020 1,460,595.00 0.537 0.5451,498,875.00
Federal Farm Credit Bank .2427 Call 2,000,000.003133EMAZ5 06/24/2030 3,0961.25010/01/2020 1,909,840.00 1.246 1.2631,997,500.00
Federal Farm Credit Bank .2442 Call 1,500,000.003133EMFG2 11/04/2030 3,2291.37011/04/2020 1,452,690.00 1.351 1.3701,500,000.00
Federal Farm Credit Bank .2443 Call 1,500,000.003133EMFG2 11/04/2030 3,2291.37011/04/2020 1,452,690.00 1.351 1.3701,500,000.00
Federal Farm Credit Bank .2472 Call 1,500,000.003133EMNB4 01/14/2031 3,3001.38001/14/2021 1,453,275.00 1.361 1.3801,500,000.00
Federal Farm Credit Bank .2525 Call 1,500,000.003133EMRE4 02/18/2031 3,3351.42004/01/2021 1,440,240.00 1.834 1.8591,440,675.00
Federal Farm Credit Bank .2538 Call 1,000,000.003133EMUG5 03/24/2031 3,3691.98005/27/2021 997,100.00 1.887 1.9131,005,890.00
Federal Home Loan Bank1041 1,500,000.00313378LA7 02/25/2022 552.33003/20/2012 1,504,395.00 2.298 2.3301,500,000.00
Federal Home Loan Bank1699 500,000.003133827E7 02/06/2023 4012.13010/05/2016 509,115.00 1.578 1.600515,900.00
Federal Home Loan Bank1780 1,000,000.00313378CR0 03/11/2022 692.25004/12/2017 1,004,050.00 1.903 1.9301,014,910.00
Federal Home Loan Bank1886 1,000,000.003130A3VC5 12/08/2023 7062.25001/03/2018 1,029,090.00 2.359 2.392992,160.00
Federal Home Loan Bank1896 1,000,000.003130A3DL5 09/08/2023 6152.37501/09/2018 1,029,230.00 2.376 2.409998,192.50
Federal Home Loan Bank1903 500,000.003130ADEV0 01/17/2023 3812.38001/18/2018 510,145.00 2.385 2.418499,100.00
Federal Home Loan Bank2347 Call 1,500,000.003130AJMF3 11/28/2028 2,5231.32005/28/2020 1,476,975.00 1.301 1.3201,500,000.00
Federal Home Loan Bank2358 Call 1,000,000.003130AJP78 06/11/2029 2,7181.40006/11/2020 977,270.00 1.380 1.4001,000,000.00
Federal Home Loan Bank2361 Call 1,000,000.003130AJP78 06/11/2029 2,7181.40006/11/2020 977,270.00 1.427 1.447996,000.00
Federal Home Loan Bank2368 Call 900,000.003130AJR76 06/29/2029 2,7361.25006/29/2020 875,628.00 1.232 1.250900,000.00
Federal Home Loan Bank2369 Call 1,500,000.003130AJRG6 06/24/2030 3,0961.36006/24/2020 1,458,405.00 1.341 1.3601,500,000.00
Federal Home Loan Bank2375 Call 1,500,000.003130AJSR1 07/09/2030 3,1111.39007/09/2020 1,457,460.00 1.370 1.3901,500,000.00
Federal Home Loan Bank2377 Call 1,500,000.003130AJSR1 07/09/2030 3,1111.39007/09/2020 1,457,460.00 1.370 1.3901,500,000.00
Federal Home Loan Bank2384 Call 1,500,000.003130AJSR1 07/09/2030 3,1111.39007/09/2020 1,457,460.00 1.382 1.4011,498,350.00
Federal Home Loan Bank2395 Call 1,500,000.003130AJZ36 08/27/2025 1,3340.60008/27/2020 1,470,600.00 0.611 0.6201,498,500.00
Federal Home Loan Bank2399 Call 1,500,000.003130AJZ36 08/27/2025 1,3340.60008/27/2020 1,470,600.00 0.611 0.6201,498,500.00
Federal Home Loan Bank2405 Call 1,500,000.003130AK3Z7 09/29/2025 1,3670.57009/29/2020 1,474,605.00 0.582 0.5901,498,500.00
Federal Home Loan Bank2411 Call 1,180,000.003130AJZ36 08/27/2025 1,3340.60009/16/2020 1,156,872.00 0.591 0.5991,180,000.00
Federal Home Loan Bank2419 Call 1,500,000.003130AKAZ91 09/29/2025 1,3670.52009/29/2020 1,472,340.00 0.512 0.5201,500,000.00
Federal Home Loan Bank2445 Call 1,200,000.003130AJQS1 06/25/2030 3,0971.35011/04/2020 1,165,560.00 1.334 1.3531,199,616.00
Federal Home Loan Bank2475 Call 1,500,000.003130AKQN9 01/09/2031 3,2951.40001/28/2021 1,453,545.00 1.380 1.4001,500,000.00
Federal Home Loan Bank2476 Call 1,500,000.003130AKQV1 01/28/2031 3,3141.40001/28/2021 1,453,005.00 1.380 1.4001,500,000.00
Portfolio CPA
AP
Run Date: 01/10/2022 - 02:52 FI (PRF_FI) 7.3.11
Report Ver. 7.3.11
12.b
Packet Pg. 186
December 31, 2021
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Investments by Fund Page 10
CUSIP Investment #Issuer
Purchase
Date Remaining Cost
YTM
360
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365
Federal Agency Bonds
Federal Home Loan Bank2485 Call 1,500,000.003130AKVH6 02/10/2031 3,3271.35002/10/2021 1,455,315.00 1.331 1.3501,500,000.00
Federal Home Loan Bank2490 Call 2,000,000.003130AKYB6 02/18/2031 3,3351.40002/18/2021 1,936,520.00 1.380 1.4002,000,000.00
Federal Home Loan Bank2494 Call 1,500,000.003130AL2J2 02/26/2031 3,3431.50002/26/2021 1,460,070.00 1.479 1.5001,500,000.00
Federal Home Loan Bank2500 Call 1,500,000.003130ALF66 02/25/2031 3,3421.62502/25/2021 1,472,580.00 1.602 1.6251,500,000.00
Federal Home Loan Bank2520 Call 1,925,000.003130ALF33 03/16/2026 1,5350.75003/25/2021 1,890,927.50 0.853 0.8651,914,220.00
Federal Home Loan Bank2607 Call 1,000,000.003130APPJ8 11/04/2031 3,5942.00011/04/2021 998,000.00 1.972 2.0001,000,000.00
Federal Home Loan Bank2613 Call 1,000,000.003130APV77 12/10/2026 1,8041.50012/10/2021 999,250.00 1.479 1.5001,000,000.00
Federal Home Loan Bank2616 Call 1,000,000.003130APW84 12/03/2026 1,7971.50012/03/2021 999,860.00 1.479 1.5001,000,000.00
Federal Home Loan Bank2618 Call 1,000,000.003130APXD2 12/17/2026 1,8111.55012/17/2021 1,000,740.00 1.528 1.5501,000,000.00
Federal Home Loan Bank2619 Call 1,000,000.003130APWY7 12/07/2026 1,8011.35012/07/2021 1,000,830.00 1.331 1.3501,000,000.00
Federal Home Loan Bank2620 Call 1,000,000.003130APXT7 12/17/2026 1,8111.60012/17/2021 1,000,430.00 1.578 1.6001,000,000.00
Fed. Home Loan Mortgage Corp.2345 Call 455,000.003134GVUA4 05/18/2028 2,3291.20005/18/2020 446,650.75 1.183 1.200455,000.00
Fed. Home Loan Mortgage Corp.2370 Call 1,500,000.003134GV3B2 06/28/2030 3,1001.40006/30/2020 1,458,795.00 1.380 1.4001,500,000.00
Fed. Home Loan Mortgage Corp.2373 Call 1,500,000.003134GV3U0 06/29/2029 2,7361.25006/29/2020 1,448,685.00 1.232 1.2501,500,000.00
Fed. Home Loan Mortgage Corp.2379 Call 1,500,000.003134GV4E5 12/29/2028 2,5541.20007/01/2020 1,460,910.00 1.183 1.1991,500,000.00
Fed. Home Loan Mortgage Corp.2380 Call 1,500,000.003134GV5D6 01/08/2029 2,5641.20007/08/2020 1,452,870.00 1.183 1.2001,500,000.00
Fed. Home Loan Mortgage Corp.2382 Call 1,500,000.003134GV5A2 07/15/2030 3,1171.37507/15/2020 1,454,835.00 1.356 1.3751,500,000.00
Fed. Home Loan Mortgage Corp.2386 Call 1,500,000.003134GV7L6 07/29/2030 3,1311.35007/29/2020 1,451,835.00 1.331 1.3501,500,000.00
Fed. Home Loan Mortgage Corp.2387 Call 1,500,000.003134GV7L6 07/29/2030 3,1311.35007/29/2020 1,451,835.00 1.331 1.3501,500,000.00
Fed. Home Loan Mortgage Corp.2396 Call 1,000,000.003134GWNC6 08/19/2025 1,3260.62508/20/2020 981,580.00 0.616 0.6251,000,000.00
Fed. Home Loan Mortgage Corp.2400 Call 1,500,000.003134GWC53 09/15/2025 1,3530.65009/15/2020 1,472,280.00 0.641 0.6501,500,000.00
Fed. Home Loan Mortgage Corp.2404 Call 1,447,000.003134GWA55 09/09/2025 1,3470.65009/09/2020 1,427,668.08 0.641 0.6501,447,000.00
Fed. Home Loan Mortgage Corp.2407 Call 1,500,000.003134GWD52 09/02/2025 1,3400.68009/04/2020 1,477,185.00 0.670 0.6791,500,000.00
Fed. Home Loan Mortgage Corp.2409 Call 1,500,000.003134GWP75 09/23/2025 1,3610.62509/23/2020 1,470,780.00 0.616 0.6251,500,000.00
Fed. Home Loan Mortgage Corp.2410 Call 1,000,000.003134GWP75 09/23/2025 1,3610.62509/23/2020 980,520.00 0.616 0.6251,000,000.00
Fed. Home Loan Mortgage Corp.2418 Call 1,500,000.003134GWVV5 10/15/2025 1,3830.50010/15/2020 1,460,910.00 0.493 0.5001,500,000.00
Fed. Home Loan Mortgage Corp.2421 Call 2,000,000.003134GWW93 09/30/2025 1,3680.55009/30/2020 1,955,660.00 0.542 0.5502,000,000.00
Fed. Home Loan Mortgage Corp.2422 Call 1,500,000.003134GWW93 09/30/2025 1,3680.55009/30/2020 1,466,745.00 0.542 0.5501,500,000.00
Fed. Home Loan Mortgage Corp.2424 Call 1,500,000.003134GWXK7 09/30/2025 1,3680.55009/30/2020 1,466,745.00 0.542 0.5501,500,000.00
Fed. Home Loan Mortgage Corp.2426 Call 1,500,000.003134GWXX9 10/15/2025 1,3830.55010/15/2020 1,466,085.00 0.542 0.5501,500,000.00
Fed. Home Loan Mortgage Corp.2428 Call 1,500,000.003134GWY26 10/08/2025 1,3760.57010/08/2020 1,467,420.00 0.562 0.5701,500,000.00
Fed. Home Loan Mortgage Corp.2430 Call 1,500,000.003134GWYZ3 10/28/2025 1,3960.53010/28/2020 1,464,585.00 0.522 0.5301,500,000.00
Portfolio CPA
AP
Run Date: 01/10/2022 - 02:52 FI (PRF_FI) 7.3.11
Report Ver. 7.3.11
12.b
Packet Pg. 187
December 31, 2021
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 11
CUSIP Investment #Issuer
Purchase
Date Remaining Cost
YTM
360
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365
Federal Agency Bonds
Fed. Home Loan Mortgage Corp.2431 Call 1,500,000.003134GWZ33 10/22/2030 3,2161.25010/22/2020 1,442,040.00 1.232 1.2501,500,000.00
Fed. Home Loan Mortgage Corp.2432 Call 1,500,000.003134GWZL3 10/29/2025 1,3970.57010/29/2020 1,466,550.00 0.562 0.5701,500,000.00
Fed. Home Loan Mortgage Corp.2433 Call 2,000,000.003134GW3T1 10/28/2030 3,2221.40010/28/2020 1,942,080.00 1.380 1.4002,000,000.00
Fed. Home Loan Mortgage Corp.2434 Call 1,500,000.003134GW3H7 10/29/2025 1,3970.61010/29/2020 1,468,605.00 0.601 0.6101,500,000.00
Fed. Home Loan Mortgage Corp.2436 Call 2,000,000.003134GWZZ2 10/28/2030 3,2221.30010/28/2020 1,927,360.00 1.282 1.3002,000,000.00
Fed. Home Loan Mortgage Corp.2437 Call 750,000.003134GW3Z7 10/28/2025 1,3960.60010/28/2020 734,032.50 0.591 0.600750,000.00
Fed. Home Loan Mortgage Corp.2438 Call 1,500,000.003134GW3X2 10/27/2025 1,3950.62510/27/2020 1,469,985.00 0.616 0.6251,500,000.00
Fed. Home Loan Mortgage Corp.2440 Call 1,500,000.003134GW6N1 11/05/2030 3,2301.40011/05/2020 1,456,470.00 1.380 1.4001,500,000.00
Fed. Home Loan Mortgage Corp.2444 Call 1,500,000.003134GW6N1 11/05/2030 3,2301.40011/05/2020 1,456,470.00 1.380 1.4001,500,000.00
Federal National Mortgage Asso1715 500,000.0031364CCC0 04/30/2026 1,5807.12511/10/2016 624,015.00 2.367 2.400699,100.09
Federal National Mortgage Asso1883 500,000.003136G05L1 08/26/2022 2372.00012/29/2017 505,680.00 2.238 2.270494,058.00
Federal National Mortgage Asso1894 1,000,000.003135G0T78 10/05/2022 2772.00001/09/2018 1,012,680.00 2.288 2.320985,700.00
Federal National Mortgage Asso1904 1,000,000.003135G0T78 10/05/2022 2772.00001/19/2018 1,012,680.00 2.409 2.443980,384.20
Federal National Mortgage Asso1926 1,500,000.003135G0T94 01/19/2023 3832.37502/08/2018 1,530,720.00 2.574 2.6101,483,732.85
Federal National Mortgage Asso2392 Call 1,000,000.003136G4R62 08/28/2025 1,3350.62508/28/2020 980,690.00 0.616 0.6251,000,000.00
Federal National Mortgage Asso2393 Call 1,000,000.003136G4S87 08/27/2025 1,3340.65008/27/2020 981,550.00 0.641 0.6501,000,000.00
Federal National Mortgage Asso2394 Call 1,500,000.003136G4Q97 08/27/2025 1,3340.65008/27/2020 1,472,325.00 0.641 0.6501,500,000.00
Federal National Mortgage Asso2397 Call 1,500,000.003136G4V59 08/27/2025 1,3340.62508/27/2020 1,471,005.00 0.616 0.6251,500,000.00
Federal National Mortgage Asso2412 Call 1,500,000.003136G44G5 09/22/2025 1,3600.51509/22/2020 1,464,705.00 0.507 0.5151,500,000.00
Federal National Mortgage Asso2413 Call 1,500,000.003136G43L5 09/30/2025 1,3680.55009/30/2020 1,466,595.00 0.542 0.5501,500,000.00
Federal National Mortgage Asso2415 Call 1,500,000.003136G44L4 09/25/2025 1,3630.60009/25/2020 1,469,370.00 0.591 0.6001,500,000.00
Federal National Mortgage Asso2460 2,000,000.003135G05Q2 08/05/2030 3,1380.87512/07/2020 1,884,680.00 1.139 1.1551,948,940.00
Federal National Mortgage Asso2463 Call 1,500,000.003135GAAS0 12/23/2030 3,2781.40012/23/2020 1,454,115.00 1.380 1.4001,500,000.00
Federal National Mortgage Asso2467 Call 1,000,000.003135G06Q1 12/30/2025 1,4590.64012/30/2020 973,100.00 0.597 0.6051,001,690.00
San Mateo Foster City SCH Dist2153 MUN 1,360,000.00799017WD6 09/01/2028 2,4352.23711/07/2019 1,416,698.40 2.447 2.4801,333,888.00
Tennessee Valley Authority1133 1,010,000.00880591EN8 08/15/2022 2261.87512/14/2012 1,020,049.50 1.893 1.9201,005,995.33
Tennessee Valley Authority1508 1,000,000.00880591CJ9 11/01/2025 1,4006.75011/20/2015 1,203,920.00 2.807 2.8461,336,070.00
Tennessee Valley Authority1519 750,000.00880591ER9 09/15/2024 9882.87501/15/2016 787,402.50 2.564 2.600765,892.50
Tennessee Valley Authority1589 775,000.00880591CJ9 11/01/2025 1,4006.75004/18/2016 933,038.00 2.337 2.3701,063,199.25
Tennessee Valley Authority1703 1,490,000.00880591EN8 08/15/2022 2261.87510/07/2016 1,504,825.50 1.538 1.5601,516,149.50
Tennessee Valley Authority1714 1,250,000.00880591CJ9 11/01/2025 1,4006.75011/10/2016 1,504,900.00 2.317 2.3501,692,700.00
Subtotal and Average 238,200,117.93 235,590,000.00 234,772,721.93 1.471 1.492 1,781
Portfolio CPA
AP
Run Date: 01/10/2022 - 02:52 FI (PRF_FI) 7.3.11
Report Ver. 7.3.11
12.b
Packet Pg. 188
December 31, 2021
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 12
CUSIP Investment #Issuer
Purchase
Date Remaining Cost
YTM
360
YTM
365
Treasury Securities (Notes)
U.S. Treasury1761 TB 1,500,000.00912828J43 02/28/2022 581.75003/09/2017 1,503,930.00 2.071 2.1001,475,316.29
U.S. Treasury1866 TB 1,500,000.00912828L57 09/30/2022 2721.75010/06/2017 1,515,990.00 1.914 1.9411,486,450.50
U.S. Treasury1898 TB 1,500,000.00912828P38 01/31/2023 3951.75001/11/2018 1,521,030.00 2.308 2.3401,458,030.00
U.S. Treasury1905 TB 1,500,000.00912828N30 12/31/2022 3642.12501/22/2018 1,524,900.00 2.387 2.4201,479,492.19
U.S. Treasury1923 TB 1,500,000.00912828P38 01/31/2023 3951.75002/05/2018 1,521,030.00 2.560 2.5961,441,003.50
U.S. Treasury1925 TB 1,000,000.00912828P38 01/31/2023 3951.75002/08/2018 1,014,020.00 2.487 2.521964,101.56
U.S. Treasury1929 TB 1,000,000.00912828P79 02/28/2023 4231.50002/09/2018 1,011,840.00 2.534 2.570949,599.00
U.S. Treasury1934 TB 1,000,000.00912828P79 02/28/2023 4231.50002/15/2018 1,011,840.00 2.601 2.638946,659.00
U.S. Treasury2505 TB 1,500,000.0091282CBC4 12/31/2025 1,4600.37502/26/2021 1,453,950.00 0.731 0.7421,473,861.00
U.S. Treasury2516 TB 1,500,000.0091282CBQ3 02/28/2026 1,5190.50003/09/2021 1,457,400.00 0.819 0.8311,475,835.00
U.S. Treasury2587 TB 1,500,000.0091282CCP4 07/31/2026 1,6720.62509/24/2021 1,458,570.00 0.888 0.9011,480,392.00
Subtotal and Average 14,630,740.04 15,000,000.00 14,994,500.00 1.878 1.904 693
Municipal Bonds
Acalanes Union High School Dis2334 MUN 485,000.00004284ZY4 08/01/2022 2122.90003/25/2020 491,843.35 1.677 1.700498,337.50
County of Alameda2173 MUN 290,000.00010878AS5 08/01/2026 1,6734.00012/05/2019 324,829.00 2.139 2.168322,741.00
Alameda County Joint Pws Auth.2005 MUN 505,000.00010831DS1 06/01/2025 1,2473.36512/24/2018 538,824.90 3.175 3.220509,216.75
Alameda County Joint Pws Auth.2566 MUN 110,000.00010831DT9 06/01/2026 1,6123.39508/13/2021 118,776.90 0.925 0.938122,643.40
Antelope Valley Community Coll1790 MUN 220,000.0003667PFL1 08/01/2022 2122.60805/09/2017 222,763.20 2.266 2.298223,315.40
Antelope Valley Community Coll2069 MUN 500,000.0003667PFN7 08/01/2024 9433.02608/16/2019 524,345.00 1.876 1.902526,460.00
State of Arkansas1913 MUN 320,000.00041042ZW5 06/01/2022 1512.87501/26/2018 323,324.80 2.486 2.520324,643.20
Bay Area Toll Authority2558 MUN 1,750,000.00072024XC1 04/01/2026 1,5511.07907/26/2021 1,720,915.00 0.739 0.7501,776,425.00
Beverly Hills Public Fing Auth2612 MUN 350,000.00088006KA8 06/01/2026 1,6121.14711/15/2021 344,795.50 1.183 1.200349,181.00
Burlingame School District1548 MUN 470,000.00121457EQ4 08/01/2025 1,3086.23802/24/2016 517,300.80 3.557 3.606568,154.80
Burbank Unified School Distri.2570 MUN 1,000,000.0012082SDN1 08/01/2026 1,6731.36708/30/2021 998,620.00 0.947 0.9601,019,500.00
Cabrillo Community College Dis2119 MUN 2,000,000.00127109QD1 08/01/2027 2,0382.38510/08/2019 2,048,760.00 2.342 2.3752,000,000.00
Carlsbad Unified School Dist .1857 MUN 305,000.00142665DJ4 08/01/2026 1,6735.23409/27/2017 350,676.80 2.850 2.890360,430.70
CA ST Dept of WTR Resources2633 MUN 180,000.0013067WRC8 12/01/2025 1,4300.79012/13/2021 176,392.80 1.301 1.320176,324.40
CA ST Dept of WTR Resources2645 MUN 300,000.0013067WRD6 12/01/2026 1,7950.92012/23/2021 291,954.00 1.430 1.450292,446.00
Chabot-Las Positas CCD2564 MUN 285,000.0015722TJR3 08/01/2026 1,6731.08008/16/2021 280,744.95 0.897 0.910287,342.70
Chabot-Las Positas CCD2589 MUN 125,000.0015722TJQ5 08/01/2025 1,3080.88009/29/2021 123,363.75 0.897 0.910124,857.50
Calleguas Municipal Water Dist2544 MUN 550,000.0013124MCE3 07/01/2029 2,7381.86507/01/2021 552,183.50 1.425 1.445567,391.00
Calleguas Municipal Water Dist2646 MUN 600,000.0013124MCB9 07/01/2026 1,6421.09712/27/2021 592,956.00 1.233 1.250595,980.00
Portfolio CPA
AP
Run Date: 01/10/2022 - 02:52 FI (PRF_FI) 7.3.11
Report Ver. 7.3.11
12.b
Packet Pg. 189
December 31, 2021
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 13
CUSIP Investment #Issuer
Purchase
Date Remaining Cost
YTM
360
YTM
365
Municipal Bonds
City of Corona2601 MUN 500,000.0021969AAJ1 05/01/2030 3,0422.24210/14/2021 502,665.00 2.052 2.081506,270.00
Cerritos Community College Dis1876 MUN 55,000.00156792GW7 08/01/2022 2122.97111/30/2017 55,789.25 2.416 2.45056,255.65
Contra Costa Community College2103 MUN 400,000.00212204JJ1 08/01/2028 2,4042.21309/12/2019 410,976.00 2.071 2.100403,640.00
Contra Costa Community College2120 MUN 990,000.00212204JK8 08/01/2029 2,7692.26309/20/2019 1,017,264.60 2.505 2.539966,220.20
Contra Costa Community College2244 MUN 1,500,000.00212204JK8 08/01/2029 2,7692.26302/07/2020 1,541,310.00 2.100 2.1301,517,040.00
Contra Costa Community College2291 MUN 320,000.00212204JF9 08/01/2025 1,3081.91803/09/2020 327,724.80 1.128 1.143332,924.80
Contra Costa Community College2555 MUN 1,000,000.00212204LM1 08/01/2026 1,6731.30008/02/2021 994,340.00 0.764 0.7751,025,680.00
State of Delaware1952 MUN 1,500,000.002463807H6 07/01/2022 1813.50005/03/2018 1,523,940.00 2.927 2.9671,530,990.00
Desert Community Clg Dist2611 MUN 200,000.00250375JX1 08/01/2027 2,0381.16911/12/2021 194,984.00 1.479 1.500196,382.00
Desert Sands Unif Sch District2635 MUN 880,000.00250433UA5 08/01/2026 1,6731.98212/16/2021 897,582.40 1.390 1.410902,448.80
Fremon Union High School Distr1646 MUN 525,000.00357172VA0 02/01/2026 1,4926.08006/28/2016 600,558.00 2.994 3.035658,875.00
Fremon Union High School Distr2595 MUN 235,000.00357172C52 08/01/2031 3,4992.02010/01/2021 239,267.60 1.825 1.851238,546.15
Fullerton School District1916 MUN 995,000.00359819DN6 08/01/2026 1,6733.16002/14/2018 1,066,938.50 3.028 3.0701,001,616.75
Fullerton School District1917 MUN 750,000.00359819DM8 08/01/2025 1,3083.04002/14/2018 792,855.00 2.959 3.000751,980.00
Fullerton School District2085 MUN 365,000.00359819DN6 08/01/2026 1,6733.16008/29/2019 391,389.50 1.913 1.940393,710.90
State of Georgia1613 MUN 500,000.00373384RU2 10/01/2022 2733.57005/17/2016 511,280.00 1.878 1.904549,880.00
State of Georgia1645 MUN 365,000.00373384W69 02/01/2023 3963.25006/27/2016 375,190.80 1.898 1.925394,809.55
State of Georgia1666 MUN 1,825,000.003733844V5 02/01/2025 1,1272.37507/29/2016 1,890,773.00 1.972 1.9991,878,271.75
State of Georgia1691 MUN 385,000.00373384RU2 10/01/2022 2733.57009/26/2016 393,685.60 1.630 1.653427,153.65
State of Georgia1775 MUN 250,000.00373384RX6 10/01/2025 1,3694.00004/10/2017 274,162.50 2.739 2.777272,945.00
State of Georgia1919 MUN 1,095,000.00373384RY4 10/01/2026 1,7344.31001/26/2018 1,236,452.10 2.979 3.0201,202,112.90
State of Georgia1945 MUN 200,000.00373384RY4 10/01/2026 1,7344.31003/19/2018 225,836.00 3.204 3.248215,686.00
State of Georgia1962 MUN 390,000.00373384SP2 10/01/2023 6383.74010/25/2018 409,289.40 3.093 3.136400,682.10
State of Georgia1967 MUN 350,000.00373385BU6 02/01/2027 1,8572.72010/31/2018 370,118.00 3.412 3.460331,537.50
State of Georgia1980 MUN 1,200,000.00373384PB6 11/01/2027 2,1305.01411/30/2018 1,427,220.00 3.649 3.7001,318,824.00
State of Georgia2086 MUN 1,500,000.00373384RV0 10/01/2023 6383.72008/29/2019 1,573,665.00 1.749 1.7741,614,615.00
State of Georgia2229 MUN 425,000.00373384RY4 10/01/2026 1,7344.31001/31/2020 479,901.50 1.837 1.863489,897.50
State of Georgia2332 MUN 1,000,000.00373384RW8 10/01/2024 1,0043.82003/23/2020 1,071,570.00 1.889 1.9151,082,110.00
City of Glendora2109 MUN 1,345,000.00378612AL9 06/01/2028 2,3432.26509/16/2019 1,382,135.45 2.318 2.3501,336,015.40
City of Glendora2137 MUN 400,000.00378612AL9 06/01/2028 2,3432.26510/02/2019 411,044.00 2.194 2.225401,248.00
City of Glendora2590 MUN 1,365,000.00378612AJ4 06/01/2026 1,6122.10809/29/2021 1,398,688.20 1.075 1.0901,428,117.60
State of Hawaii1685 MUN 1,045,000.00419792DA1 10/01/2026 1,7343.15010/19/2016 1,113,447.50 2.431 2.4651,107,773.15
Portfolio CPA
AP
Run Date: 01/10/2022 - 02:52 FI (PRF_FI) 7.3.11
Report Ver. 7.3.11
12.b
Packet Pg. 190
December 31, 2021
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 14
CUSIP Investment #Issuer
Purchase
Date Remaining Cost
YTM
360
YTM
365
Municipal Bonds
State of Hawaii1852 MUN 225,000.00419791YP7 02/01/2022 314.80009/21/2017 225,776.25 2.071 2.100250,184.25
State of Hawaii1944 MUN 1,000,000.00419792NH5 10/01/2022 2731.92103/20/2018 1,010,890.00 2.584 2.620970,310.00
State of Hawaii1946 MUN 355,000.00419791YP7 02/01/2022 314.80003/21/2018 356,224.75 2.761 2.800380,801.40
State of Hawaii1947 MUN 1,500,000.00419792NH5 10/01/2022 2731.92103/29/2018 1,516,335.00 2.663 2.7001,450,725.00
State of Hawaii1961 MUN 250,000.00419791YS1 02/01/2025 1,1275.23010/25/2018 280,340.00 3.363 3.410275,462.50
State of Hawaii1981 MUN 500,000.00419791YV4 02/01/2028 2,2225.48011/30/2018 608,985.00 3.687 3.739567,020.00
State of Hawaii1995 MUN 800,000.00419791YT9 02/01/2026 1,4925.33012/06/2018 923,680.00 3.304 3.350899,968.00
State of Hawaii2019 MUN 750,000.00419792NH5 10/01/2022 2731.92101/17/2019 758,167.50 2.613 2.650730,807.50
City of Huntington Beach2560 MUN 1,000,000.00446201AE5 06/15/2026 1,6261.34408/12/2021 989,390.00 0.909 0.9211,019,930.00
City of Huntington Beach2562 MUN 1,000,000.00446201AE5 06/15/2026 1,6261.34408/13/2021 989,390.00 0.927 0.9391,019,060.00
City of Los Angeles1748 MUN 1,000,000.00544351KS7 09/01/2023 6082.64002/14/2017 1,029,500.00 2.784 2.8231,001,780.00
City of Los Angeles1879 MUN 1,090,000.00544351KR9 09/01/2022 2432.44012/11/2017 1,104,562.40 2.355 2.3881,092,496.10
City of Los Angeles1969 MUN 295,000.00544351NP0 09/01/2026 1,7043.30011/02/2018 318,405.30 3.530 3.579289,392.05
City of Los Angeles2008 MUN 1,000,000.00544351MS5 09/01/2026 1,7043.50001/07/2019 1,088,300.00 3.077 3.1191,025,650.00
City of Los Angeles2200 MUN 840,000.00544351NQ8 09/01/2027 2,0693.40001/06/2020 918,607.20 2.360 2.393898,800.00
City of Los Angeles2213 MUN 985,000.00544351LQ0 09/01/2029 2,8003.05001/22/2020 1,051,260.95 2.413 2.4461,035,599.45
City of Los Angeles2283 MUN 1,000,000.00544351KV0 09/01/2026 1,7043.15003/05/2020 1,072,620.00 1.519 1.5411,098,990.00
Los Angeles Community College2487 MUN 1,000,000.0054438CYN6 08/01/2030 3,1341.80601/28/2021 992,480.00 1.432 1.4521,031,330.00
Los Angeles Community College2592 MUN 250,000.0054438CYL0 08/01/2026 1,6731.17409/30/2021 247,745.00 1.064 1.078251,117.50
Los Angeles Community College2614 MUN 1,500,000.0054438CYL0 08/01/2026 1,6731.17411/15/2021 1,486,470.00 1.233 1.2501,494,780.00
Los Angeles Community College2642 MUN 275,000.0054438CYL0 08/01/2026 1,6731.17412/21/2021 272,519.50 1.282 1.300273,451.75
Los Angeles Cnty Met Tran Auth2641 MUN 1,000,000.005447122K7 06/01/2025 1,2475.13012/21/2021 1,128,790.00 1.085 1.1001,135,840.00
Los Angeles Dept. of WTR & PWR1949 MUN 1,500,000.00544495VX9 07/01/2027 2,0075.51603/29/2018 1,787,370.00 3.254 3.3001,763,160.00
Los Angeles Dept. of WTR & PWR1965 MUN 425,000.00544495VX9 07/01/2027 2,0075.51610/29/2018 506,421.50 3.600 3.650483,475.75
Los Angeles Dept. of WTR & PWR1975 MUN 300,000.00544525NW4 07/01/2022 1815.18111/07/2018 307,131.00 3.166 3.210320,199.00
State of Massachusetts2227 MUN 250,000.0057582PUT5 05/01/2029 2,6774.91001/30/2020 299,190.00 2.331 2.363302,632.50
State of Massachusetts2543 MUN 1,000,000.0057582PUT5 05/01/2029 2,6774.91007/01/2021 1,196,760.00 1.484 1.5051,251,110.00
State of Maryland1689 MUN 485,000.005741925C0 03/01/2022 594.30009/16/2016 488,191.30 1.534 1.555554,544.15
State of Maryland1762 MUN 1,000,000.00574193NC8 03/15/2022 732.25003/22/2017 1,004,000.00 2.219 2.2501,000,000.00
State of Maryland1943 MUN 1,280,000.005741925D8 03/01/2023 4244.40003/20/2018 1,337,011.20 2.633 2.6701,381,964.80
State of Maryland1958 MUN 1,690,000.005741926L9 08/01/2024 9434.20010/19/2018 1,828,360.30 3.413 3.4611,754,896.00
State of Maryland2184 MUN 500,000.005741926N5 08/01/2025 1,3084.35012/16/2019 552,625.00 2.089 2.118558,850.00
Portfolio CPA
AP
Run Date: 01/10/2022 - 02:52 FI (PRF_FI) 7.3.11
Report Ver. 7.3.11
12.b
Packet Pg. 191
December 31, 2021
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 15
CUSIP Investment #Issuer
Purchase
Date Remaining Cost
YTM
360
YTM
365
Municipal Bonds
State of Maryland2581 MUN 245,000.005741926N5 08/01/2025 1,3084.35009/23/2021 270,786.25 0.690 0.700278,954.55
State of Maryland - Dept/Trans2134 MUN 1,000,000.00574204WH2 06/15/2023 5304.45010/15/2019 1,055,070.00 1.893 1.9201,089,140.00
State of Michigan2002 MUN 825,000.005946108C4 05/15/2026 1,5953.85012/21/2018 834,784.50 3.452 3.500843,653.25
Menlo Park City School Dist.2104 MUN 1,000,000.00586840ND8 07/01/2027 2,0072.21410/08/2019 1,033,600.00 2.183 2.2141,000,000.00
Marin Community College Dist.1858 MUN 500,000.0056781RGU5 08/01/2027 2,0383.27209/28/2017 545,765.00 2.791 2.830518,855.00
Marin Community College Dist.1973 MUN 120,000.0056781RGT8 08/01/2026 1,6733.17211/05/2018 129,622.80 3.452 3.500117,346.80
Marin Community College Dist.2084 MUN 250,000.0056781RJL2 08/01/2027 2,0383.33008/29/2019 273,795.00 1.874 1.900276,175.00
Marin Community College Dist.2287 MUN 310,000.0056781RJJ7 08/01/2025 1,3085.00003/06/2020 351,149.40 1.193 1.210371,262.20
Marin Community College Dist.2495 MUN 1,000,000.0056781RKH9 08/01/2030 3,1341.45102/25/2021 971,130.00 1.431 1.4511,000,000.00
Marin Community College Dist.2499 MUN 710,000.0056781RKH9 08/01/2030 3,1341.45102/25/2021 689,502.30 1.470 1.490707,515.00
Marin Community College Dist.2568 MUN 1,000,000.0056781RKU0 08/01/2026 1,6730.89309/14/2021 979,440.00 0.880 0.8931,000,000.00
Marin Community College Dist.2588 MUN 285,000.0056781RKD8 08/01/2026 1,6730.67909/29/2021 276,441.45 1.025 1.040280,155.00
Mt. San Antonio Community Coll1489 MUN 1,335,000.00623040GX4 08/01/2023 5774.10310/26/2015 1,407,850.95 2.490 2.5251,482,637.65
Mt. San Antonio Community Coll2208 MUN 230,000.00623040KQ4 08/01/2029 2,7692.56902/04/2020 243,119.20 2.533 2.569230,000.00
State of Mississippi1968 MUN 1,500,000.00605581LM7 11/01/2026 1,7653.75111/07/2018 1,662,570.00 3.377 3.4241,533,885.00
State of Mississippi1972 MUN 500,000.00605581LM7 11/01/2026 1,7653.75111/07/2018 554,190.00 3.401 3.449510,420.00
State of Mississippi2087 MUN 750,000.00605581HL4 12/01/2024 1,0652.98708/30/2019 790,515.00 1.745 1.770795,577.50
State of Mississippi2090 MUN 500,000.00605581HL4 12/01/2024 1,0652.98709/04/2019 527,010.00 1.783 1.807529,350.00
State of Mississippi2096 MUN 150,000.006055805W5 11/01/2025 1,4004.68109/09/2019 169,129.50 1.888 1.914174,010.50
State of Mississippi2189 MUN 250,000.006055805V7 11/01/2024 1,0354.51112/19/2019 273,815.00 2.079 2.108277,642.50
State of Mississippi2329 MUN 1,000,000.00605581LJ4 11/01/2023 6693.40803/20/2020 1,046,816.75 1.626 1.6491,061,410.00
State of Mississippi2626 MUN 1,000,000.00605581QR1 10/01/2031 3,5602.11712/09/2021 1,021,610.00 1.992 2.0201,008,580.00
State of Mississippi2629 MUN 250,000.00605581LL9 11/01/2025 1,4003.64612/06/2021 272,247.50 1.080 1.095274,297.50
City of Napa Solid Waste2055 MUN 595,000.00630337AL7 08/01/2024 9432.20008/08/2019 607,863.90 1.968 1.996600,723.90
New York St Envrnmntl Facs2007 MUN 450,000.0064985HWS2 07/15/2024 9262.12001/04/2019 460,827.00 2.860 2.900432,180.00
New York State Urban Dev Corp.2097 MUN 700,000.006500357D4 03/15/2026 1,5343.07009/09/2019 745,458.00 2.071 2.100741,146.00
New York State Envrnmntl Corp1933 MUN 2,000,000.0064986DEE1 06/15/2022 1652.43802/15/2018 2,017,680.00 2.624 2.6611,981,800.00
New York State Envrnmntl Corp2022 MUN 1,000,000.00649791CN8 03/01/2023 4244.69001/22/2019 1,043,360.00 2.752 2.7911,073,200.00
New York State Envrnmntl Corp2024 MUN 1,000,000.00649791CN8 03/01/2023 4244.69002/08/2019 1,043,360.00 2.751 2.7901,072,500.00
New York State Envrnmntl Corp2146 MUN 1,500,000.00649791PQ7 02/15/2025 1,1412.12010/31/2019 1,543,170.00 2.063 2.0911,502,205.00
New York State Envrnmntl Corp2224 MUN 580,000.00649791PS3 02/15/2027 1,8712.36001/30/2020 604,673.20 1.933 1.960595,184.40
New York State Envrnmntl Corp2575 MUN 1,500,000.00649791PR5 02/15/2026 1,5062.26009/13/2021 1,555,170.00 0.794 0.8051,594,620.00
Portfolio CPA
AP
Run Date: 01/10/2022 - 02:52 FI (PRF_FI) 7.3.11
Report Ver. 7.3.11
12.b
Packet Pg. 192
December 31, 2021
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 16
CUSIP Investment #Issuer
Purchase
Date Remaining Cost
YTM
360
YTM
365
Municipal Bonds
City of Oakland2293 MUN 1,500,000.00672240WY0 01/15/2030 2,9362.11003/09/2020 1,520,550.00 1.436 1.4561,589,580.00
City of Oakland2307 MUN 1,500,000.00672240WY0 01/15/2030 2,9362.11003/13/2020 1,520,550.00 1.638 1.6611,560,885.00
City of Oakland2313 MUN 1,080,000.00672240WY0 01/15/2030 2,9362.11003/16/2020 1,094,796.00 2.247 2.2791,063,897.20
City of Oakland2316 MUN 1,500,000.00672240WX2 01/15/2029 2,5712.07003/16/2020 1,523,895.00 2.151 2.1811,486,500.00
City of Oakland Pension2630 MUN 450,000.00672319CF5 12/15/2025 1,4444.67612/06/2021 499,896.00 1.562 1.584504,036.90
Ohlone Community College Distr2165 MUN 600,000.00677765GY9 08/01/2027 2,0382.23711/22/2019 621,552.00 2.271 2.303597,204.00
Ohlone Community College Distr2175 MUN 280,000.00677765GY9 08/01/2027 2,0382.23712/06/2019 290,057.60 2.327 2.360277,597.60
Ohlone Community College Distr2179 MUN 970,000.00677765HA0 08/01/2029 2,7692.33712/11/2019 1,007,335.30 2.382 2.415963,501.00
Ohlone Community College Distr2341 MUN 1,185,000.00677765GZ6 08/01/2028 2,4042.28705/08/2020 1,228,169.55 1.849 1.8751,222,031.25
State of Ohio1688 MUN 800,000.00677522JB1 05/01/2023 4852.11009/13/2016 814,984.00 1.764 1.788816,000.00
State of Ohio1742 MUN 2,000,000.00677522JB1 05/01/2023 4852.11001/31/2017 2,037,460.00 2.485 2.5201,952,820.00
State of Ohio1832 MUN 900,000.006775207G7 04/01/2024 8214.97106/30/2017 979,416.00 2.416 2.4501,040,382.00
State of Ohio2308 MUN 500,000.00677521CT1 09/01/2026 1,7045.26203/13/2020 586,075.00 1.710 1.734607,440.00
Orange Cnty Water District2578 MUN 315,000.0068442CCY0 08/15/2025 1,3222.09509/16/2021 323,111.25 0.690 0.700331,934.40
Orchard School District1910 MUN 200,000.00685585FD8 08/01/2027 2,0383.12501/25/2018 210,472.00 3.208 3.253197,966.00
State of Oregon1682 MUN 570,000.0068609BGH4 05/01/2022 1202.50008/29/2016 574,069.80 1.528 1.550599,286.60
State of Oregon1974 MUN 500,000.0068607LXQ5 06/01/2027 1,9775.89211/06/2018 585,655.00 3.516 3.565572,923.88
State of Oregon2003 MUN 300,000.0068608USE7 08/01/2025 1,3082.87712/21/2018 310,377.00 3.156 3.200294,261.00
State of Oregon2015 MUN 445,000.0068607LXQ5 06/01/2027 1,9775.89201/16/2019 521,232.95 3.537 3.587518,611.90
State of Oregon2223 MUN 570,000.0068609TDT2 05/01/2024 8513.22701/30/2020 600,420.90 1.641 1.664606,411.60
State of Oregon2230 MUN 495,000.0068607LXQ5 06/01/2027 1,9775.89201/31/2020 579,798.45 2.583 2.619602,415.00
State of Oregon2266 MUN 1,000,000.0068607LXQ5 06/01/2027 1,9775.89202/24/2020 1,171,310.00 2.482 2.5171,222,870.00
State of Oregon2310 MUN 350,000.0068609BXT9 05/01/2027 1,9463.08003/13/2020 378,847.00 1.302 1.320391,776.00
State of Oregon2378 MUN 355,000.0068609TVS4 06/01/2030 3,0731.67207/02/2020 353,306.65 1.433 1.452362,156.80
State of Oregon2542 MUN 870,000.0068608KA24 08/01/2030 3,1345.33207/01/2021 1,075,363.50 1.943 1.9701,112,088.81
State of Oregon2549 MUN 1,225,000.0068609TU30 08/01/2028 2,4041.48407/08/2021 1,210,189.75 1.134 1.1501,252,672.75
State of Oregon2584 MUN 265,000.0068609TT81 08/01/2025 1,3080.80309/24/2021 260,818.30 0.690 0.700266,033.50
State of Oregon2624 MUN 250,000.0068609TZT8 08/01/2026 1,6730.98411/19/2021 245,317.50 1.292 1.310246,295.00
State of Oregon2627 MUN 900,000.0068609T3M8 11/01/2031 3,5912.03711/26/2021 918,747.00 2.020 2.048899,028.00
City of Pacifica2138 MUN 1,015,000.0069511AAS3 06/01/2025 1,2472.56310/23/2019 1,052,514.40 2.469 2.5031,018,095.75
City of Pacifica2139 MUN 580,000.0069511AAT1 06/01/2026 1,6122.66310/23/2019 605,462.00 2.611 2.647580,522.00
Pasadena CA Public Finance Aut1985 MUN 665,000.00702274CP4 12/01/2023 6993.43812/06/2018 696,527.65 3.205 3.250670,705.70
Portfolio CPA
AP
Run Date: 01/10/2022 - 02:52 FI (PRF_FI) 7.3.11
Report Ver. 7.3.11
12.b
Packet Pg. 193
December 31, 2021
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 17
CUSIP Investment #Issuer
Purchase
Date Remaining Cost
YTM
360
YTM
365
Municipal Bonds
Pasadena CA Public Finance Aut2573 MUN 120,000.0070227RBM1 05/01/2026 1,5811.98409/09/2021 121,586.40 0.903 0.915125,818.80
Pasadena CA Public Finance Aut2615 MUN 550,000.00702274CS8 12/01/2026 1,7953.50012/01/2021 600,809.00 1.380 1.400605,583.00
Polomar Community Clge Distri2582 MUN 1,000,000.00697511FU2 08/01/2026 1,6731.03110/13/2021 981,600.00 1.016 1.0311,000,000.00
Redondo Beach Unified School D2388 MUN 750,000.00757710UE6 08/01/2030 3,1341.66008/06/2020 738,975.00 1.439 1.459763,980.00
State of Rhode Island2192 MUN 260,000.0076222RYN6 01/15/2025 1,1102.00012/20/2019 265,941.00 2.231 2.262259,435.80
State of Rhode Island2219 MUN 1,500,000.0076222RXB3 04/01/2028 2,2823.25001/27/2020 1,627,530.00 2.077 2.1061,628,190.00
State of Rhode Island2239 MUN 550,000.0076222RXB3 04/01/2028 2,2823.25002/06/2020 596,761.00 1.990 2.018600,671.50
Riverside Cmnty College Distt.2596 MUN 1,365,000.0076886PJP9 08/01/2026 1,6731.12410/04/2021 1,343,692.35 1.006 1.0201,371,661.20
Rancho Santiago Comm College D2522 MUN 450,000.00752147HH4 09/01/2024 9740.63403/29/2021 446,485.50 0.625 0.633450,000.00
Redwood City School District2130 MUN 1,000,000.00757889EH9 08/01/2027 2,0382.28410/16/2019 1,035,160.00 2.252 2.2841,000,000.00
Redwood City School District2253 MUN 1,095,000.00757889EG1 08/01/2026 1,6732.15902/13/2020 1,125,900.90 1.727 1.7511,122,188.85
City of Santa Ana2603 MUN 175,000.00801139AE6 08/01/2026 1,6731.17610/18/2021 171,524.50 1.223 1.240174,480.25
Santa Barbara Unified School D2385 MUN 490,000.00801315KU5 08/01/2029 2,7691.65307/21/2020 484,531.60 1.483 1.504496,120.10
San Bernardino Cmty College Di2166 MUN 1,500,000.00796720NC0 08/01/2028 2,4042.59012/12/2019 1,581,855.00 2.554 2.5901,500,000.00
San Bernardino Cmty College Di2365 MUN 2,000,000.00796720NV8 08/01/2029 2,7691.84807/07/2020 1,996,720.00 1.822 1.8482,000,000.00
County of Santa Clara1897 MUN 1,340,000.00801546PH9 08/01/2023 5772.50001/11/2018 1,378,230.20 2.436 2.4701,342,063.60
County of Santa Clara1899 MUN 1,460,000.00801546PJ5 08/01/2024 9432.68001/12/2018 1,523,612.20 2.643 2.6801,460,000.00
Santa Clarita Community Colleg2557 MUN 1,250,000.00801686TF3 08/01/2026 1,6731.14608/02/2021 1,237,725.00 0.742 0.7521,274,225.00
Santa Clara Valley Water Dist.2181 MUN 1,555,000.0080168ACV7 06/01/2028 2,3432.43412/12/2019 1,619,516.95 2.416 2.4501,553,087.35
Santa Cruz County Capital Fin.1906 MUN 465,000.0080181PCT2 06/01/2024 8822.50001/25/2018 480,842.55 2.968 3.010451,375.50
Santa Cruz County Capital Fin.1907 MUN 465,000.0080181PCU9 06/01/2025 1,2472.75001/25/2018 487,440.90 3.008 3.050455,862.75
Santa Cruz County Capital Fin.1908 MUN 470,000.0080181PCV7 06/01/2026 1,6123.00001/25/2018 500,648.70 3.107 3.150464,844.10
Santa Cruz County Capital Fin.1909 MUN 275,000.0080181PCW5 06/01/2027 1,9773.00001/25/2018 294,954.00 3.205 3.250269,486.25
San Diego Unified Sch District2602 MUN 1,000,000.00797356DL3 07/01/2031 3,4681.98410/21/2021 998,690.00 1.824 1.8501,011,830.00
San Diego Unified Sch District2606 MUN 900,000.00797356DL3 07/01/2031 3,4681.98410/23/2021 898,821.00 2.024 2.053894,600.00
San Diego Unified Sch District2617 MUN 270,000.00797356DH2 07/01/2028 2,3731.59911/17/2021 267,462.00 1.712 1.736267,691.50
San Diego Community College Di2550 MUN 255,000.00797272QS3 08/01/2027 2,0382.40707/09/2021 267,023.25 1.007 1.021275,718.75
San Diego Community College Di2639 MUN 1,980,000.00797272RN3 08/01/2026 1,6731.44512/28/2021 1,990,236.60 1.193 1.2102,000,710.80
San Diego Regl Trans Commissio2632 MUN 200,000.00797400MR6 04/01/2026 1,5511.03612/08/2021 197,380.00 1.292 1.310197,708.00
San Diego Cnty Wtr Authority2580 MUN 875,000.00797412DN0 05/01/2026 1,5810.97109/17/2021 856,196.25 0.887 0.900877,800.00
San Diego Cnty Wtr Authority2600 MUN 210,000.00797412DM2 05/01/2025 1,2160.74310/08/2021 206,455.20 0.838 0.850209,212.50
San Diego Cnty Wtr Authority2604 MUN 250,000.00797412DN0 05/01/2026 1,5810.97110/20/2021 244,627.50 1.134 1.150248,027.50
Portfolio CPA
AP
Run Date: 01/10/2022 - 02:52 FI (PRF_FI) 7.3.11
Report Ver. 7.3.11
12.b
Packet Pg. 194
December 31, 2021
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 18
CUSIP Investment #Issuer
Purchase
Date Remaining Cost
YTM
360
YTM
365
Municipal Bonds
San Diego Cnty Wtr Authority2623 MUN 750,000.00797412DN0 05/01/2026 1,5810.97111/19/2021 733,882.50 1.282 1.300739,357.50
San Dieguito Union High Sch Di2536 MUN 430,000.00797508JW9 08/01/2026 1,6731.07406/09/2021 423,279.10 1.059 1.074430,000.00
San Dieguito Union High Sch Di2537 MUN 435,000.00797508JX7 08/01/2027 2,0381.37206/09/2021 430,610.85 1.353 1.372435,000.00
Sequoia Union High School Dist2320 MUN 400,000.00817409N35 07/01/2025 1,2771.73503/18/2020 404,392.00 1.381 1.400406,800.00
Sequoia Union High School Dist2531 MUN 250,000.00817409N76 07/01/2029 2,7382.10304/30/2021 253,035.00 1.658 1.681258,000.00
City & County of San Francisco1441 MUN 360,000.00797646NL6 06/15/2022 1654.95002/09/2015 367,264.80 2.416 2.450420,188.40
City & County of San Francisco1509 MUN 1,000,000.00797646NC6 06/15/2025 1,2615.45011/27/2015 1,134,930.00 3.067 3.1101,192,040.00
City & County of San Francisco1711 MUN 2,105,000.00797646T48 06/15/2025 1,2612.29011/01/2016 2,170,360.25 2.219 2.2492,111,525.50
City & County of San Francisco1712 MUN 245,000.00797646T55 06/15/2026 1,6262.39011/01/2016 253,388.80 2.376 2.410244,576.15
City & County of San Francisco1839 MUN 230,000.00797646T48 06/15/2025 1,2612.29007/14/2017 237,141.50 2.682 2.720222,991.90
City & County of San Francisco2014 MUN 1,420,000.00797646ND4 06/15/2026 1,6265.60001/16/2019 1,663,402.20 3.304 3.3501,628,157.80
City & County of San Francisco2148 MUN 1,120,000.007976466C5 06/15/2029 2,7222.10010/31/2019 1,141,291.20 2.337 2.3691,094,094.40
San Francisco Cmnty Facs Dist1937 MUN 680,000.0079772EBC2 09/01/2027 2,0693.25003/02/2018 737,378.40 3.451 3.499666,400.00
San Francisco Cmnty Facs Dist2132 MUN 350,000.0079772ECL1 09/01/2029 2,8003.64810/11/2019 388,027.50 2.398 2.431387,201.50
San Francisco Cmnty Facs Dist2309 MUN 130,000.0079772ECJ6 09/01/2027 2,0693.46803/13/2020 142,493.00 1.577 1.599147,026.10
San Francisco Cmnty Facs Dist2571 MUN 300,000.0079772ECF4 09/01/2024 9743.10808/30/2021 315,318.00 0.741 0.752320,964.00
San Francisco Cmnty Facs Dist2608 MUN 575,000.0079772EDY2 09/01/2031 3,5302.59111/03/2021 586,810.50 2.305 2.337587,747.75
San Francisco Cmnty Facs Dist2628 MUN 1,295,000.0079772EDA4 09/01/2026 1,7042.23611/29/2021 1,336,025.60 1.425 1.4451,341,840.15
SF Bay Area Rapid Transit Dist2029 MUN 200,000.00797669XW3 07/01/2023 5462.62102/25/2019 205,582.00 2.672 2.710199,270.00
SF Bay Area Rapid Transit Dist2572 MUN 500,000.00797669ZJ0 07/01/2024 9121.97109/08/2021 511,260.00 0.419 0.425521,585.00
SF Bay Area Rapid Transit Dist2636 MUN 480,000.00797669ZR2 07/01/2031 3,4682.76812/16/2021 507,268.80 1.846 1.872517,406.40
SF Bay Area Rapid Transit Dist2638 MUN 600,000.00797669XW3 07/01/2023 5462.62112/20/2021 616,746.00 0.572 0.580618,630.00
Sierra Joint Com. College Dist2501 MUN 585,000.00826239GD1 08/01/2029 2,7691.44503/09/2021 572,750.10 1.425 1.445585,000.00
Sierra Joint Com. College Dist2535 MUN 500,000.00826239GD1 08/01/2029 2,7691.44505/27/2021 489,530.00 1.461 1.481498,600.00
San Jose Financing Authority2622 MUN 345,000.00798153NF5 06/01/2026 1,6121.31111/18/2021 341,398.20 1.459 1.480342,450.45
San Jose Evergreen Cmnty Colll1966 MUN 315,000.00798189PK6 09/01/2027 2,0693.72810/29/2018 347,800.95 3.676 3.727315,000.00
San Jose Evergreen Cmnty Colll2105 MUN 500,000.00798189QA7 08/01/2028 2,4042.35010/01/2019 522,710.00 2.317 2.350500,000.00
San Jose Unified School Dist.1435 MUN 580,000.00798186C83 08/01/2023 5772.50001/29/2015 596,269.00 2.663 2.700571,236.20
San Jose Unified School Dist.2518 MUN 1,000,000.00798186N81 08/01/2025 1,3080.55803/15/2021 976,370.00 0.739 0.750991,740.00
Santa Monica Cmnty College Dis2025 MUN 215,000.00802385QW7 08/01/2022 2122.90802/19/2019 218,182.00 2.714 2.752216,107.25
Santa Monica Cmnty College Dis2091 MUN 315,000.00802385RC0 08/01/2028 2,4043.47209/05/2019 350,434.35 1.972 2.000352,648.80
Santa Monica Cmnty College Dis2481 MUN 570,000.00802385RV8 08/01/2030 3,1341.69601/22/2021 563,239.80 1.499 1.520578,863.50
Portfolio CPA
AP
Run Date: 01/10/2022 - 02:52 FI (PRF_FI) 7.3.11
Report Ver. 7.3.11
12.b
Packet Pg. 195
December 31, 2021
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 19
CUSIP Investment #Issuer
Purchase
Date Remaining Cost
YTM
360
YTM
365
Municipal Bonds
Santa Monica Cmnty College Dis2482 MUN 600,000.00802385RT3 08/01/2028 2,4041.49601/22/2021 593,934.00 1.085 1.100617,112.00
Santa Monica-Malibu USD2561 MUN 650,000.00802498VW2 07/01/2026 1,6420.98908/12/2021 639,600.00 0.877 0.890653,068.00
Santa Monica-Malibu USD2637 MUN 215,000.00802498ZA6 08/01/2026 1,6730.84912/20/2021 210,065.75 1.193 1.210211,525.60
San Mateo Cnty Comm. College D2521 MUN 2,000,000.00799038NP5 09/01/2024 9740.50004/14/2021 1,974,760.00 0.444 0.4502,003,340.00
San Mateo Cnty Comm. College D2523 MUN 1,500,000.00799038NP5 09/01/2024 9740.50004/14/2021 1,481,070.00 0.444 0.4501,502,505.00
San Mateo Foster City SCH Dist1902 MUN 1,000,000.00799017UW6 09/01/2025 1,3392.69901/16/2018 1,052,410.00 2.786 2.825991,390.00
San Mateo Foster City SCH Dist1940 MUN 1,000,000.00799017UW6 09/01/2025 1,3392.69903/09/2018 1,052,410.00 2.959 3.000979,960.00
San Mateo Foster City SCH Dist2178 MUN 1,565,000.00799017VM7 09/01/2028 2,4352.54212/11/2019 1,659,291.25 2.311 2.3431,589,304.45
San Mateo Foster City SCH Dist2567 MUN 500,000.00799017XW3 09/01/2026 1,7040.92509/21/2021 490,910.00 0.912 0.925500,000.00
San Mateo Foster City SCH Dist2585 MUN 175,000.00799055QV3 08/01/2026 1,6731.79909/27/2021 177,553.25 0.897 0.910182,355.25
San Mateo Foster City SCH Dist2591 MUN 1,320,000.00799055ME5 08/01/2026 1,6736.00009/29/2021 1,507,519.20 2.297 2.3291,540,440.00
Solano Cnty Community Clg Dist2176 MUN 1,150,000.0083412PFQ0 08/01/2028 2,4042.71712/09/2019 1,218,850.50 2.462 2.4961,169,584.50
Solano Cnty Community Clg Dist2579 MUN 750,000.0083412PHQ8 08/01/2026 1,6731.02510/06/2021 736,980.00 1.011 1.025750,000.00
Solano Cnty Community Clg Dist2583 MUN 200,000.0083412PGZ9 08/01/2026 1,6731.02510/06/2021 196,528.00 0.887 0.900201,174.00
Solano Cnty Community Clg Dist2594 MUN 390,000.0083412PHE5 08/01/2031 3,4991.86110/06/2021 382,601.70 1.948 1.975386,022.00
Solano Cnty Community Clg Dist2597 MUN 750,000.0083412PHU9 08/01/2030 3,1341.76110/06/2021 737,332.50 1.834 1.860743,977.50
Solano Cnty Community Clg Dist2598 MUN 825,000.0083412PHW5 08/01/2031 3,4991.86110/06/2021 809,349.75 1.879 1.905821,739.60
Sonoma Cnty Jr. College Distr.2577 MUN 155,000.00835569GT5 08/01/2026 1,6732.44709/15/2021 162,179.60 0.843 0.855166,762.95
South Pasadena Unified School1914 MUN 180,000.00839278JM1 08/01/2027 2,0383.00002/15/2018 193,372.20 3.057 3.100178,531.20
South Pasadena Unified School2161 MUN 370,000.00839278KC1 08/01/2029 2,7695.00012/12/2019 454,330.40 2.598 2.634444,059.20
South Pasadena Unified School2162 MUN 250,000.00839278KB3 08/01/2028 2,4045.00012/12/2019 300,960.00 2.549 2.584296,475.00
South Pasadena Unified School2163 MUN 145,000.00839278KA5 08/01/2027 2,0385.00012/12/2019 171,178.30 2.500 2.534169,679.00
South Pasadena Unified School2164 MUN 390,000.00839278JZ2 08/01/2026 1,6735.00012/12/2019 450,726.90 2.378 2.411451,565.40
San Rafael City High Sch Distr2150 MUN 1,755,000.00799289MR1 08/01/2024 9431.96511/13/2019 1,796,014.35 1.938 1.9651,755,000.00
San Ramon Vly Unif Sch Dist.2605 MUN 1,500,000.007994082K4 08/01/2030 3,1341.91411/03/2021 1,495,035.00 1.805 1.8301,510,110.00
Sunnyvale Elementary Sch Distr2100 MUN 135,000.00867578UT1 09/01/2028 2,4352.19009/19/2019 138,932.55 2.157 2.187135,000.00
Sunnyvale Elementary Sch Distr2101 MUN 135,000.00867578US3 09/01/2027 2,0692.09009/19/2019 138,932.55 2.061 2.090135,000.00
Tracy Unified School District2493 MUN 500,000.00892404CN2 08/01/2029 2,7691.64402/08/2021 488,815.00 1.437 1.457507,420.00
Temecula Valley Unified School2539 MUN 250,000.0087970GPS0 08/01/2028 2,4041.50306/16/2021 246,042.50 1.482 1.503250,000.00
Temecula Valley Unified School2569 MUN 355,000.0087970GPQ4 08/01/2026 1,6731.05108/27/2021 347,697.65 0.887 0.900357,577.30
State of Tennessee1673 MUN 1,000,000.00880541XY8 08/01/2026 1,6732.11608/25/2016 1,040,740.00 1.923 1.9501,014,910.00
State of Tennessee1674 MUN 1,650,000.00880541XX0 08/01/2025 1,3082.06608/25/2016 1,708,327.50 1.893 1.9201,669,668.00
Portfolio CPA
AP
Run Date: 01/10/2022 - 02:52 FI (PRF_FI) 7.3.11
Report Ver. 7.3.11
12.b
Packet Pg. 196
December 31, 2021
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 20
CUSIP Investment #Issuer
Purchase
Date Remaining Cost
YTM
360
YTM
365
Municipal Bonds
State of Tennessee1676 MUN 700,000.00880541XX0 08/01/2025 1,3082.06608/25/2016 724,745.00 1.893 1.920708,344.00
State of Tennessee2001 MUN 205,000.00880541QU4 08/01/2024 9433.72812/20/2018 219,815.35 2.860 2.900213,728.90
State of Texas1708 MUN 110,000.00882722VJ7 04/01/2022 903.67310/19/2016 110,948.20 1.825 1.850120,348.80
State of Texas1855 MUN 250,000.00882723EN5 08/01/2025 1,3083.83209/22/2017 254,257.50 2.747 2.785268,337.50
State of Texas2195 MUN 1,500,000.008827237P8 10/01/2025 1,3693.05112/23/2019 1,601,715.00 1.975 2.0031,585,230.00
State of Texas2225 MUN 940,000.008827237T0 10/01/2029 2,8303.52101/30/2020 1,042,657.40 2.191 2.2211,045,750.00
State of Texas2255 MUN 1,265,000.008827237T0 10/01/2029 2,8303.52102/14/2020 1,403,150.65 2.192 2.2221,406,680.00
State of Texas2311 MUN 250,000.008827237N3 10/01/2024 1,0042.89903/16/2020 262,737.50 1.231 1.248268,165.00
State of Texas2541 MUN 245,000.008827235K1 10/01/2025 1,3692.92206/30/2021 260,459.50 0.641 0.650268,309.30
State of Texas2548 MUN 1,000,000.00882724RF6 10/01/2030 3,1952.42607/02/2021 1,053,010.00 1.480 1.5011,079,570.00
State of Texas2631 MUN 500,000.00882723A90 10/01/2025 1,3692.83112/07/2021 529,890.00 1.030 1.045533,320.00
University of California2077 MUN 1,500,000.0091412GQG3 05/15/2025 1,2303.05008/26/2019 1,590,195.00 1.930 1.9571,588,215.00
University of California2095 MUN 1,000,000.0091412GQG3 05/15/2025 1,2303.05009/09/2019 1,060,130.00 1.797 1.8211,066,000.00
State of Utah1731 MUN 450,000.00917542QR6 07/01/2024 9124.55401/04/2017 473,904.00 2.904 2.944498,361.50
State of Utah2306 MUN 1,500,000.00917542QV7 07/01/2025 1,2773.53903/13/2020 1,567,860.00 1.948 1.9751,617,435.00
State of Washington1672 MUN 250,000.0093974DHW1 08/01/2022 2122.74008/08/2016 253,327.50 1.504 1.524267,297.50
State of Washington1721 MUN 515,000.0093974CPH7 08/01/2022 2124.63612/05/2016 527,880.15 2.465 2.500572,664.55
State of Washington1802 MUN 485,000.0093974CRC6 08/01/2024 9434.66905/23/2017 529,823.70 2.416 2.450555,523.85
State of Washington2196 MUN 500,000.0093974CRC6 08/01/2024 9434.66912/24/2019 546,210.00 1.978 2.005558,265.00
State of Wisconsin2547 MUN 2,000,000.0097705MNU5 05/01/2031 3,4072.45107/02/2021 2,111,840.00 1.553 1.5752,158,960.00
State of Wisconsin2574 MUN 1,500,000.0097705MNP6 05/01/2026 1,5812.08909/09/2021 1,546,050.00 0.739 0.7501,591,500.00
State of Wisconsin2576 MUN 1,000,000.0097705MNP6 05/01/2026 1,5812.08909/13/2021 1,030,700.00 0.769 0.7801,059,440.00
Subtotal and Average 202,237,857.49 194,245,000.00 202,585,977.15 1.997 2.025 1,696
Supranationals (World Bank) Bonds
Inter-American Dev. Bank1978 IADB 1,500,000.004581X0CZ9 09/14/2022 2561.75011/09/2018 1,514,175.00 3.106 3.1501,424,448.00
Inter-American Dev. Bank2528 IADB 2,000,000.004581X0DV7 04/20/2026 1,5700.87504/20/2021 1,968,180.00 0.910 0.9231,995,300.00
Inter-American Dev. Bank2586 IADB 2,000,000.0045818WDH6 06/17/2026 1,6280.80009/27/2021 1,967,860.00 0.914 0.9271,988,270.54
Intl Bk Recon & Development1976 IBRD 1,500,000.00459056LD7 01/19/2023 3837.62511/08/2018 1,611,030.00 3.111 3.1551,761,554.16
Intl Bk Recon & Development1982 IBRD 1,000,000.00459058GL1 09/27/2023 6343.00011/27/2018 1,039,170.00 3.018 3.060997,297.93
Intl Bk Recon & Development2470 IBRD 1,500,000.00459058JL8 10/28/2025 1,3960.50001/08/2021 1,461,120.00 0.480 0.4871,500,897.00
Intl Bk Recon & Development2492 IBRD 1,500,000.00459058JS3 02/10/2026 1,5010.65002/10/2021 1,462,065.00 0.641 0.6501,500,000.00
Intl Bk Recon & Development2497 IBRD 1,500,000.0045905U5Y6 02/18/2026 1,5090.60002/18/2021 1,456,995.00 0.591 0.6001,500,000.00
Portfolio CPA
AP
Run Date: 01/10/2022 - 02:52 FI (PRF_FI) 7.3.11
Report Ver. 7.3.11
12.b
Packet Pg. 197
December 31, 2021
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 21
CUSIP Investment #Issuer
Purchase
Date Remaining Cost
YTM
360
YTM
365
Supranationals (World Bank) Bonds
Intl Bk Recon & Development2498 IBRD 1,500,000.00459058JL8 10/28/2025 1,3960.50002/18/2021 1,461,120.00 0.591 0.6001,493,065.50
Intl Bk Recon & Development2510 IBRD 1,500,000.00459058JL8 10/28/2025 1,3960.50003/01/2021 1,461,120.00 0.787 0.7981,479,585.00
Intl Bk Recon & Development2534 IBRD 1,500,000.00459058JS3 02/10/2026 1,5010.65005/26/2021 1,462,065.00 0.833 0.8451,486,531.50
Intl Bk Recon & Development2553 IBRD 1,500,000.00459058JS3 02/10/2026 1,5010.65007/15/2021 1,462,065.00 0.839 0.8511,486,500.00
Intl Bk Recon & Development2559 IBRD 1,500,000.00459058JS3 02/10/2026 1,5010.65008/12/2021 1,462,065.00 0.871 0.8831,484,620.50
International Finance Corp.2217 IFC 1,266,000.0045950VNR3 01/15/2025 1,1101.62501/27/2020 1,245,402.18 2.186 2.2161,266,000.00
International Finance Corp.2441 IFC 1,000,000.0045950VPE0 10/15/2025 1,3830.25010/30/2020 969,060.00 0.497 0.5041,000,000.00
International Finance Corp.2454 IFC 1,500,000.0045950VPH3 11/15/2025 1,4140.25011/30/2020 1,456,755.00 0.683 0.6921,500,000.00
International Finance Corp.2483 IFC 1,500,000.0045950VPJ9 01/15/2026 1,4750.58001/25/2021 1,454,400.00 0.501 0.5081,505,250.00
International Finance Corp.2502 IFC 1,500,000.0045950VPJ9 01/15/2026 1,4750.58002/11/2021 1,454,400.00 0.522 0.5301,503,630.00
International Finance Corp.2503 IFC 1,500,000.0045950VPS9 02/26/2026 1,5170.50002/26/2021 1,461,675.00 0.616 0.6251,490,784.14
International Finance Corp.2514 IFC 2,000,000.0045950VPT7 03/15/2026 1,5340.50003/15/2021 1,964,440.00 0.808 0.8192,000,000.00
International Finance Corp.2515 IFC 1,500,000.0045950VPU4 03/23/2026 1,5420.75003/23/2021 1,480,485.00 0.746 0.7571,499,460.00
International Finance Corp.2517 IFC 2,000,000.0045950VPU4 03/23/2026 1,5420.75003/23/2021 1,973,980.00 0.887 0.9001,985,340.00
International Finance Corp.2532 IFC 1,500,000.0045950VPY6 05/15/2026 1,5950.50005/28/2021 1,486,050.00 1.006 1.0201,500,000.00
Subtotal and Average 35,348,534.27 35,266,000.00 34,735,677.18 1.059 1.074 1,359
Total Investments and Average 565,577,285.15 553,783,927.95 561,703,005.87 1.599 1.622 1,561
Portfolio CPA
AP
Run Date: 01/10/2022 - 02:52 FI (PRF_FI) 7.3.11
Report Ver. 7.3.11
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1 General Investment Guidelines:Full Compliance
a) The max. stated final maturity of individual securities in the portfolio should be 10 years.
b) A max. of 30 percent of the par value of the portfolio shall be invested in securities with maturities 29.54%
beyond 5 years.
c) The City shall maintain a minimum of one month's cash needs in short term investments.
d) At least $50 million shall be maintained in securities maturing in less than 2 years.
Plus two managed pool accounts which provide instant liquidity:
- Local Agency Investment Fund (LAIF) - maximum investment limit i $75 million $12.5 million
- Fidelity Investments $4.2 million
e) Should market value of the portfolio fall below 95 percent of the book value, report this fact within a 99.31%
reasonable time to the City Council and evaluate if there are risk of holding securities to maturity.
d) Commitments to purchase securities newly introduced on the market shall be made no more than
three (3) working days before pricing.
f) Whenever possible, the City will obtain three or more quotations on the purchase or sale of
comparable securities (excludes new issues, LAIF, City of Palo Alto bonds, money market
accounts, and mutual funds).
2 U.S. Government Securities:Full Compliance
a) There is no limit on purchase of these securities.
b) Securities will not exceed 10 years maturity.
3 U.S. Government Agency Securities:Full Compliance
a) There is no limit on purchase of these securities except for:
Callable and Multi-step-up securities provided that:
- The potential call dates are known at the time of purchase;
- the interest rates at which they "step-up" are known at the time of purchase; and
- the entire face value of the security is redeemed at the call date.
- No more than 25 percent of the par value of portfolio.24.85%
b) Securities will not exceed 10 years maturity.
4 California State, California Local Government Agencies, and other United States State Bonds:Full Compliance
a)Having at time of investment a minimum Double A (AA/Aa2) rating as provided by a nationally
recognized rating service (e.g., Moody’s, Fitch, and/or Standard and Poor’s).
b)May not exceed 40 percent of the par value of the portfolio.35.77%
5 Certificates of Deposit (CD):Full Compliance
a) May not exceed 20 percent of the par value of the portfolio;None Held
b) No more than 10 percent of the par value of the portfolio in collateralized CDs in any institution.
c) Purchase collateralized deposits only from federally insured large banks that are rated by
a nationally recognized rating agency (e.g. Moody's, Fitch, and/or Standard & Poor's).
d) For non-rated banks, deposit should be limited to amounts federally insured (FDIC)
e) Rollovers are not permitted without specific instruction from authorized City staff.
6 Banker's Acceptance Notes (BA):Full Compliance
a) No more than 30 percent of the par value of the portfolio.None Held
b) Not to exceed 180 days maturity.
c) No more than $5 million with any one institution.
Attachment C
Investment Policy Compliance
As of December 31, 2021
Investment Policy Requirements
Compliance
Check / Actual
$120 million
2.71%
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Attachment C
Investment Policy Compliance
As of December 31, 2021
Investment Policy Requirements
Compliance
Check / Actual
7 Commercial Paper:Full Compliance
a) No more than 15 percent of the par value of the portfolio.None Held
b) Having highest letter or numerical rating from a nationally recognized rating service.
c) Not to exceed 270 days maturity.
d) No more than $3 million or 10 percent of the outstanding commercial paper of any one institution,
whichever is lesser.
8 Short-Term Repurchase Agreement (REPO):Full Compliance
a) Not to exceed 1 year.None Held
b) Market value of securities that underlay a repurchase agreement shall be valued at 102 percent or
greater of the funds borrowed against those securities.
9 Money Market Deposit Accounts Full Compliance
a) Liquid bank accounts which seek to maintain a net asset value of $1.00.
10 Mutual Funds:Full Compliance
a) No more than 20 percent of the par value of the portfolio.None Held
b) No more than 10 percent of the par value with any one institution.
11 Negotiable Certificates of Deposit (NCD):Full Compliance
a) No more than 20 percent of the par value of the portfolio.7.28%
b) No more than $5 million in any one institution.Federally Insured
12 Medium-Term Corporate Notes:Full Compliance
a) No more than 10 percent of the par value of the portfolio.4.19%
b) Not to exceed 5 years maturity.
c) Securities eligible for investment shall have a minimum rating of AA or Aa2 from a nationally
recognized rating service.
d) No more than $5 million of the par value may be invested in securities of any single issuer, other
than the U.S. Government, its agencies and instrumentality.
e) If securities owned by the City are downgraded by either rating agencies to a level below AA it
shall be the City's policy to review the credit situation and make a determination as to whether
to sell or retain such securities.
13 Supranational Organizations Securities:Full Compliance
a) Securities will not exceed 5 years maturity
b) No more than 20 percent of the par value of the portfolio.6.37%
c) No more than 10 percent in any one institution.
d) Securities eligible for investment shall have a minimum rating of AA or Aa2 from a nationally
recognized rating service.
14 Prohibited Investments:
a) Reverse Repurchase Agreements
b) Derivatives as defined in Appendix B of the Investment Policy
15 All securities shall be delivered to the City's safekeeping custodian, and held in the name of the
City, with the exception of :
- Certificates of Deposit, Mutual Funds, and Local Agency Investment Fund (LAIF)
Full Compliance
None Held
Full Compliance
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City of Palo Alto (ID # 13807)
City Council Staff Report
Meeting Date: 2/7/2022
City of Palo Alto Page 1
Title: Informational Report on Valley Water's Implementation of a new
Model Water Efficient New Development Ordinance
From: City Manager
Lead Department: Utilities
Executive Summary
This report is to inform Council of Santa Clara Valley Water District’s (Valley Water) Model
Water Efficient New Development Ordinance (MWENDO) and staff’s approach to reviewing and
evaluating water efficiency measures for Palo Alto.
Background
Valley Water developed the MWENDO to provide a resource to assist jurisdictions in Santa
Clara County to improve water efficiency in new developments. Valley Water manages
groundwater, provides flood protection and stream stewardship and supplies imported water
to some jurisdictions in Santa Clara County. Palo Alto obtains 100% of its potable water supply
from San Francisco Public Utilities Commission (SFPUC) and does not currently use groundwater
or imported water from Valley Water.
Discussion
California is facing drought conditions, and our state, county, and water supplier have declared
drought emergencies. Palo Alto has permanent water use restrictions in place focusing on
eliminating water waste regardless of drought or rain conditions. Palo Alto requires a variety of
water efficient measures for new construction and partners with Valley Water to provide free
consultation services and rebates for water efficient landscaping upgrades and resources for
residents and businesses to improve water efficiency. Palo Alto regularly conducts outreach to
water customers encouraging the wise use of water through email, social media, bill inserts and
other communication channels.
Since 2015, Palo Alto City Council has approved updated Green Building Ordinances (Palo Alto
Municipal Code Chapter 16.14) that incorporate the State’s Green Building Standards Code
(CALGreen), Mandatory, Tier I and Tier II requirements, which set permit requirements for
water efficiency design, including irrigation systems, in new development and alteration
construction projects. In addition to the CALGreen standards, the City requires the installation
of a “laundry to landscape ready” irrigation system for all residential new construction projects.
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The State Water Efficient Landscape Ordinance went into effect February 1, 2016 in Palo Alto
per Governor Brown’s Drought Executive Order EO-29-15 and pursuant to the California Water
Conservation in Landscaping Act, also known as the State Landscape Model Ordinanc e,
Government Code §§ 65591, et seq. as amended, see Palo Alto Municipal Code 12.32.040.
MWENDO includes measures that primarily target indoor water use efficiency for new
development such as hot water recirculation and drain water heat recovery. MWENDO a lso
includes some outdoor measures such as water meters and pool/spa covers.1 Staff will likely
not recommend MWENDO as written but will consider elements of MWENDO in the
appropriate municipal and building code updates for Palo Alto. Staff from the approp riate
departments (including Urban Forestry, Development Services, and Public Works) will compare
the various measures in MWENDO to Palo Alto’s existing code requirements and to the new
state requirements under the CalGreen Building Code updates. Staff wil l evaluate the water
efficiency measures in MWENDO as appropriate and make recommendations to Council as part
of the regular cycle of code updates.
Fiscal Impact
This is an informational report.
Environmental Review
This information report does not meet the definition of a project under the California
Environmental Quality Act (Public Resources Code 21065); therefore, an environmental review
is not required.
1 Valley Water’s 10/27/21 presentation on the MWENDO to the Santa Clara Valley Water
Commission is available at this link.
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City of Palo Alto (ID # 13796)
City Council Staff Report
Meeting Date: 2/7/2022
City of Palo Alto Page 1
Title: Sales Tax Digest Summary Calendar 2021 Q3
From: City Manager
Lead Department: Administrative Services
DISCUSSION
This report transmits information regarding the City of Palo Alto’s sales tax receipts for the third
quarter (July to September) of 2021.
There are two attachments to this report that provide further level of information:
• City of Palo Alto Sales Tax Digest Summary (Attachment A)
• Policy and Capitol Update - December 2021 (Attachment B)
The City’s sales tax cash receipts of $6.8 million for the third quarter (July to September 2021) is
$251 thousand (3.8 percent) higher than the same quarter of the prior year (see Attachment A,
Table 5). In contrast, the third quarter of 2020 compared to the same quarter of 2019 declined
by $2 million (23.8 percent). It is important to recognize that the state of California offered
small businesses a 90-day extension to pay their first quarter of 2020 taxes due to the economic
impact of the pandemic. This resulted in some businesses paying their first quarter economic
payments in the third quarter of 2020. After adjustments made for the non-period related
payments, the overall economic quarter over quarter sales tax activity (Q3 2020 to Q3 2021)
increased by 17.6 percent. It should be noted that Q3 2020 saw significant impacts from COVID-
19 due to it being the first full quarter after the pandemic began.
For the year ending in the third quarter of 2021, cash receipts (including county pools) for the
City increased by 1.9 percent from the prior year. In comparison, statewide increased by 17.6
percent, Northern California increased by 16.7 percent, and Southern California by 18.4
percent.
After adjustments for non-period related payments, the overall economic sales tax activity
(local business excluding pools) in Palo Alto for the year increased by 4.0 percent, while it
increased 9.5 percent for the state, increased 7.7 percent in Northern California and increased
10.8 percent in Southern California.
.
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The third quarter includes $1.3 million of sales tax receipts from the county pool. The City’s
share of the county pool for this quarter is 5 percent, down from 5.3 percent in the third
quarter of 2020. County pools are primarily from online purchases from out of state companies,
remote sellers who ship merchandise to California/County destinations, and private vehicle
sales that are not directly allocated to a jurisdiction. County pools are allocated to local
jurisdictions based on each jurisdiction’s’ share of total sales taxes.
Attachments:
• Attachment14.a: Attachment A - City of Palo Alto Sales Tax Digest Summary
• Attachment14.b: Attachment B - Policy and Capitol Update - December 2021
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City of Palo Alto
Sales Tax Digest Summary
Collections through December 2021
Sales July through September 2021 (2021Q3)
www.avenuinsights.com (800) 800-8181 Page 1
California Overview
For the year ending in third quarter of 2021, cash receipts increased 17.6% statewide, 16.7% in Northern
California and 18.4% in Southern California. However, when adjusted for non‐period related payments,
the overall economic sales tax activity for the year ending in third quarter of 2021 increased by 9.5%
statewide, 10.8% in Southern California, and up 7.7% in Northern California.
City of Palo Alto
For the year ending in the third quarter of 2021, sales tax cash receipts for the city increased by 1.9% from
the prior year. However, when adjusted for non‐period related payments, the overall economic sales tax
activity in Palo Alto for the year ending in third quarter of 2021 increased by 4.0%.
On a quarterly basis, sales tax cash receipts increased by 3.8% from Quarter 3 of 2020 to Quarter 3 of
2021. However, this increase includes late payment anomalies related to a state sales tax extension
program (see note below). The period’s cash receipts include tax from business activity during the period,
payments for prior periods and other cash adjustments. When adjusted for non‐period related payments,
the overall economic quarter over quarter sales tax activity (Q3 2020 to Q3 2021) in Palo Alto increased
by 17.6%.
Note: It is important to recognize that the state offered small businesses a 90‐day extension to pay their
first quarter of 2020 taxes (to alleviate some of the short‐term economic difficulties of the pandemic), and
some businesses had partial or no payments for the first quarter of 2020. As a result of this extension
program, some payments for first quarter economic activity were paid in the third quarter of 2020. While
Palo Alto experienced a 26.6% cash decrease for the first quarter of 2020 (from Q1 2019), this includes
late payment decreases related to the state 90‐day extension program, actual first quarter of 2020
economic activity did not decline to this extent.
Regional Overview
The first chart on page two shows adjusted economic benchmark year amounts, which means that it
shows a full calendar year from the third quarter of 2020 through third quarter of 2021 compared to third
quarter of 2019 through third quarter of 2020 (benchmark years are rolling annual comparisons through
the current quarter). The decrease is different between the state and Palo Alto because the sales tax from
businesses in Palo Alto were more impacted than those statewide.
Attachment A
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% of Total / % Change Palo Alto California
Statewide S.F. Bay Area Sacramento
Valley Central Valley South Coast Inland Empire North Coast Central Coast
General Retail 28.5 / 10.4 28.6 / 15.4 26.6 / 7.0 28.1 / 32.7 38.8 / 33.6 27.0 / 14.0 31.5 / 9.0 30.4 / 12.0 30.0 / 6.3
Food Products 13.7 / ‐5.4 18.8 / 7.6 18.2 / ‐5.5 15.2 / 7.7 13.5 / ‐1.3 20.8 / 6.1 17.7 / 12.8 16.1 / ‐29.4 31.0 / ‐4.1
Transportation 23.9 / 30.5 23.9 / 13.8 21.6 / 8.3 28.0 / 18.0 21.0 / 1.0 24.6 / 17.1 13.6 / 11.2 27.6 / 8.5 22.7 / 11.4
Business to Business 30.1 / ‐15.2 16.8 / 4.2 21.3 / 3.6 14.1 / 6.6 15.1 / 1.8 16.7 / 4.9 26.0 / 19.3 9.4 / 8.0 7.5 / ‐19.4
Misc/Other 27.8 / 35.6 11.8 / 7.1 12.3 / 2.8 14.7 / 16.7 11.6 / 3.1 10.8 / 7.8 14.2 / 10.9 16.5 / 7.7 8.8 / 4.9
Total 100.0 / 4.0 100.0 / 9.5 100.0 / 3.5 100.0 / 18.0 100.0 / 11.6 100.0 / 10.7 100.0 / 11.8 100.0 / 0.5 100.0 / 1.4
Palo Alto California
Statewide S.F. Bay Area Sacramento
Valley Central Valley South Coast Inland Empire North Coast Central Coast
Largest Segment Auto Sales ‐
New Restaurants Auto Sales ‐
New
Auto Sales ‐
New
Miscellaneous
Retail Restaurants Auto Sales ‐
New
Auto Sales ‐
New Restaurants
% of Total / % Change 20.3 / 34.9 12.5 / 2.4 11.9 / 13.6 12.4 / 22.9 13.2 / 150.0 14.2 / 5.9 13.0 / 17.9 11.9 / 17.8 21.1 / ‐4.9
2nd Largest Segment Leasing
Auto Sales ‐
New Restaurants Restaurants
Department
Stores
Auto Sales ‐
New
Miscellaneous
Retail
Department
Stores
Auto Sales ‐
New
% of Total / % Change 19.6 / 33.3 12.2 / 20.4 11.8 / ‐6.3 9.8 / 9.7 10.9 / ‐0.4 13.1 / 27.1 12.4 / 65.1 11.9 / 8.9 12.9 / 14.9
3rd Largest Segment Restaurants
Miscellaneous
Retail
Miscellaneous
Retail
Miscellaneous
Retail Restaurants Department
Stores Restaurants Bldg.Matls‐
Retail
Miscellaneous
Retail
% of Total / % Change 11.8 / ‐4.8 8.9 / 32.9 9.8 / 8.7 9.5 / 106.5 8.7 / 0.6 8.4 / 7.1 10.9 / 7.1 10.0 / 10.0 9.1 / 6.5
ECONOMIC CATEGORY ANALYSIS FOR YEAR ENDED 3rd Quarter 2021
ECONOMIC SEGMENT ANALYSIS FOR YEAR ENDED 3rd Quarter 2021
Regional Overview Chart (Economic)
Gross Historical Sales Tax Cash Receipts by Benchmark Year and Quarter (Before Adjustments)
$‐
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
Quarterly Benchmark Year
Table 1
Table 2
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Auto Sales ‐New
20.3%
Restaurants
11.8%
Leasing
19.7%
Office Equipment
5.5%Furniture/Appliance
4.8%
Department Stores
5.7%
All Other
32.1%
Net Pools & Adjustments
22.5%
Anderson Honda HP Enterprise Services Shell Service Stations
Apple Stores Louis Vuitton Shreve & Co.
Arco AM/PM Mini Marts Lucile Packard Children's Hospital Stanford Outpatient Clinic Pharmacy
Atila Biosystems Incorporated Macy's Department Store Tesla
Audi Palo Alto Magnussen's Toyota of Palo Alto Tesla Lease Trust
Bloomingdale's Neiman Marcus Tiffany & Company
Crate & Barrel Nordstrom Department Store Varian Medical Systems
Hengehold Trucks Richemont Volvo Cars Palo Alto
Hermes
Net Cash Receipts for Benchmark Year third Quarter 2021: $28,375,417
*Benchmark year (BMY) is the sum of the current and 3 previous quarters (2021Q3 BMY is sum of 2021 Q3, 2021 Q2, 2021 Q1, 2020 Q4)
TOP 25 SALES/USE TAX CONTRIBUTORS
The following list identifies Palo Alto’s Top 25 Sales/Use Tax contributors. The list is in alphabetical order
and represents the year ended third quarter of 2021. The Top 25 Sales/Use Tax contributors generate
62.3% of Palo Alto’s total sales and use tax revenue.
Table 3
Ta
b
l
e
Ty
p
e
t
e
x
t
h
e
r
e
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$‐
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
$5,000,000
Benchmark Year 2021Q3 Benchmark Year 2020Q3
Sales Tax from Largest Non‐Confidential Sales Tax Segments (Economic)
Table 4
Ta
b
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Economic Category % 2021Q3 2021Q2 2021Q1 2020Q4 2020Q3 2020Q2 2020Q1 2019Q4 2019Q3 2019Q2 2019Q1
Business To Business 26.0% 1,762,093 1,652,745 1,765,043 2,060,217 2,022,479 1,851,601 2,000,210 2,375,333 1,942,593 1,958,591 2,244,140
Miscellaneous/Other 25.1% 1,702,838 1,620,383 1,467,407 1,679,573 1,322,172 997,005 1,227,541 1,693,416 1,516,049 1,784,443 1,464,642
General Retail 26.5% 1,798,257 1,803,297 1,262,756 1,746,602 1,300,645 660,300 1,450,820 2,579,412 2,416,101 1,993,425 1,887,330
Food Products 14.3% 970,873 897,222 619,501 668,640 650,152 439,540 990,266 1,256,287 1,205,242 1,268,595 1,176,607
Subtotal Economic (Local Business) 92.0% 6,234,061 5,973,646 5,114,708 6,155,031 5,295,448 3,948,447 5,668,837 7,904,447 7,079,986 7,005,054 6,772,720
Net Pools & Adjustments 8.0% 539,929 1,496,795 1,675,094 1,186,152 1,227,876 1,877,921 ‐2,287 1,937,461 1,477,413 1,741,608 942,435
Total Cash Receipts 100.0% 6,773,990 7,470,441 6,789,802 7,341,183 6,523,324 5,826,368 5,666,550 9,841,908 8,557,399 8,746,661 7,715,155
Economic Segment % 2021Q3 2021Q2 2021Q1 2020Q4 2020Q3 2020Q2 2020Q1 2019Q4 2019Q3 2019Q2 2019Q1
Miscellaneous/Other 56.7% 3,837,648 3,654,707 3,499,781 4,170,752 3,682,918 3,181,367 3,551,274 4,677,431 4,315,212 4,044,495 4,097,694
Restaurants 12.7% 857,066 785,086 527,203 552,176 545,728 342,533 867,027 1,105,719 1,073,522 1,123,322 1,041,119
Miscellaneous Retail 6.0% 407,467 456,685 327,729 479,041 326,777 108,953 280,493 499,697 384,397 392,196 333,960
Apparel Stores 5.9% 400,589 395,779 264,322 358,744 263,940 72,307 305,737 552,735 469,447 486,790 408,476
Department Stores 5.7% 388,703 384,763 237,473 315,453 186,316 29,842 245,948 552,822 431,717 453,675 356,943
Service Stations 2.7% 181,448 152,565 116,258 111,241 108,840 70,063 146,291 181,082 175,309 185,969 159,032
Food Markets 1.3% 87,521 89,669 71,321 89,396 81,580 77,803 102,026 118,952 104,192 113,363 106,194
Business Services 1.1% 73,620 54,393 70,621 78,228 99,348 65,579 170,042 216,011 126,190 205,245 269,302
Subtotal Economic (Local Business) 92.0% 6,234,061 5,973,646 5,114,708 6,155,031 5,295,448 3,948,447 5,668,837 7,904,447 7,079,986 7,005,054 6,772,720
Net Pools & Adjustments 8.0% 539,929 1,496,795 1,675,094 1,186,152 1,227,876 1,877,921 ‐2,287 1,937,461 1,477,413 1,741,608 942,435
Total Cash Receipts 100.0% 6,773,990 7,470,441 6,789,802 7,341,183 6,523,324 5,826,368 5,666,550 9,841,908 8,557,399 8,746,661 7,715,155
Historical Analysis by Calendar Quarter
The chart above shows the categories and segments in quarterly economic basis amounts. The total amount is the net cash receipts, and it was obtained by adding
up the categories/segments with the “Net Pools & Adjustments” amount.
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Economic Category % 2021Q3 2020Q3 2019Q3 2018Q3 2017Q3 2016Q3 2015Q3 2014Q3 2013Q3 2012Q3
Business To Business 24.7% 6,999,219 8,253,250 8,055,541 6,763,767 5,531,447 5,274,809 4,252,383 4,537,394 4,206,253 4,530,832
Miscellaneous/Other 22.5% 6,372,414 4,712,030 7,171,279 6,980,525 5,906,596 6,045,883 5,685,238 5,340,922 9,283,251 3,646,358
General Retail 23.3% 6,619,559 5,993,272 8,856,399 8,591,732 8,426,080 8,235,548 8,097,731 8,085,021 7,813,954 7,813,144
Food Products 11.2% 3,178,556 3,361,012 4,895,601 4,798,957 4,627,887 4,622,126 4,411,228 4,126,302 3,731,703 3,459,735
Subtotal Economic (Local Business) 81.7% 23,169,747 22,319,564 28,978,821 27,134,981 24,492,011 24,178,367 22,446,580 22,089,640 25,035,161 19,450,069
Net Pools & Adjustments 18.3% 5,205,669 5,538,585 5,948,180 4,835,355 5,055,052 4,110,642 4,201,030 3,612,493 3,626,104 2,339,062
Total 100.0% 28,375,417 27,858,150 34,927,001 31,970,337 29,547,063 28,289,009 26,647,610 25,702,133 28,661,265 21,789,131
Economic Segment % 2021Q3 2020Q3 2019Q3 2018Q3 2017Q3 2016Q3 2015Q3 2014Q3 2013Q3 2012Q3
Miscellaneous/Other 52.3% 14,838,334 14,569,551 17,209,047 15,271,633 12,784,979 12,449,507 11,022,846 11,018,397 14,405,546 9,179,741
Restaurants 9.7% 2,741,388 2,879,829 4,321,305 4,196,864 4,027,179 4,020,785 3,835,898 3,602,981 3,200,200 2,951,772
Miscellaneous Retail 5.9% 1,677,314 1,216,140 1,655,675 1,687,520 2,033,076 1,992,497 1,519,840 1,518,777 1,394,483 1,307,501
Apparel Stores 5.0% 1,421,321 1,194,935 1,964,304 1,930,814 1,721,788 1,630,972 1,656,560 1,663,440 1,617,661 1,610,052
Department Stores 4.7% 1,326,441 1,014,928 1,842,132 2,085,700 2,032,059 2,188,368 2,402,334 2,376,717 2,466,909 2,463,373
Service Stations 2.0% 561,512 506,276 693,647 671,528 601,794 554,825 668,928 784,615 760,477 749,389
Food Markets 1.2% 339,229 386,305 448,033 482,100 502,234 508,991 500,731 454,455 466,036 450,222
Business Services 0.9% 264,209 551,601 844,677 808,822 788,902 832,423 839,442 670,259 723,849 738,017
Subtotal Economic (Local Business) 81.7% 23,169,747 22,319,564 28,978,821 27,134,981 24,492,011 24,178,367 22,446,580 22,089,640 25,035,161 19,450,069
Net Pools & Adjustments 18.3% 5,205,669 5,538,585 5,948,180 4,835,355 5,055,052 4,110,642 4,201,030 3,612,493 3,626,104 2,339,062
Total 100.0% 28,375,417 27,858,150 34,927,001 31,970,337 29,547,063 28,289,009 26,647,610 25,702,133 28,661,265 21,789,131
Historical Analysis by Calendar BMY from 2012Q3 to 2021Q3
The chart above shows the categories and segments in benchmark year economic basis amounts. The total amount is the net cash receipts, and it was obtained by
adding up the categories/segments with the “Net Pools & Adjustments” amount. Benchmark year (BMY) is the sum of the current and 3 previous quarters
(2021Q3 BMY is sum of 2021 Q3, 2021 Q2, 2021 Q1, 2020 Q4).
Table 6 14.a
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www.avenuinsights.com (800) 800-8181 Page 7
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Campbell 5.9% 41.9% 31.8%‐21.5% 3.4% 2,343,797 2,071,441 13.1% Restaurants Service Stations Office Equipment Florist/Nursery
Cupertino 16.1% 51.4% 65.5%‐4.7% 1.8% 10,031,062 10,151,803 ‐1.2% I.T. Infrastructure Restaurants Office Equipment Heavy Industry
Gilroy 21.6% 23.0% 62.7% 9.3%‐0.2% 4,197,465 3,309,845 26.8% Auto Sales ‐ New Service Stations Light Industry Bldg.Matls‐Retail
Los Altos 37.2% 27.2% 49.6% 7.9% 13.1% 551,214 421,926 30.6% Restaurants Service Stations Business Services Bldg.Matls‐Retail
Los Gatos 16.3% 17.2% 19.8% 27.9%‐17.0% 1,369,505 1,200,384 14.1% Restaurants Service Stations Food Processing Eqp Miscellaneous Other
Milpitas 74.9% 64.0% 26.2%‐0.6%‐8.2% 5,242,698 4,311,523 21.6% Apparel Stores Restaurants Office Equipment Bldg.Matls ‐Whsle
Morgan Hill 7.8% 22.3% 26.4% 0.6% 14.8% 2,414,955 2,060,075 17.2% Service Stations Restaurants Light Industry Auto Parts/Repair
Mountain View 5.7% 28.8% 50.6% 63.0%‐31.2% 4,188,404 3,303,760 26.8% Restaurants Business Services Bldg.Matls‐Whsle Miscellaneous Retail
Palo Alto 38.1% 49.2% 38.6%‐12.9%‐29.8% 6,234,061 5,302,548 17.6% Leasing Auto Sales ‐ New Office Equipment Green Energy
San Jose 3.3% 28.2% 31.2% 19.8% 5.0% 51,823,853 45,460,288 14.0% Restaurants Auto Sales ‐ New Miscellaneous Retail Auto Sales ‐ Used
Santa Clara 47.4% 57.0% 14.7% 12.5% 31.2% 12,275,721 10,046,392 22.2% Office Equipment Restaurants Business Services Leasing
County of Santa Clara 60.8% 93.4%‐10.7%‐6.3% 26.3% 1,190,957 868,291 37.2% Food Processing Eqp Miscellaneous Retail Misc. Vehicle Sales Business Services
Saratoga 49.9% 40.7% 67.1% 83.2%‐43.4% 261,278 179,605 45.5% Restaurants Service Stations Furniture/Appliance Bldg.Matls‐Whsle
Sunnyvale 27.8% 27.5% 27.5% 7.2% 20.4% 5,736,796 4,779,402 20.0% Light Industry Auto Sales ‐ New Office Equipment Business Services
Quarterly Analysis by Sales Tax Category: Change from 2020Q3 to 2021Q3 (Economic)
Unlike the chart on page one which showed a ‘benchmark year’ through third quarter of 2021, the chart above shows a comparison of one quarter only – third
quarter of 2021 to third quarter of 2020. This chart is for local ‘brick and mortar’ businesses and it excludes county pools and adjustments.
Table 7 14.a
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California Avenue % CHANGE QoQ 2021Q3 QE 2020Q3 QE 21Q3 % OF TOTAL 20Q3 % OF TOTAL
FOOD PRODUCTS 70.3% 48,380 28,412 41.8%35.6%
GENERAL RETAIL 8.8% 34,833 32,026 30.1%40.2%
ALL OTHER 68.7% 32,519 19,279 28.1%24.2%
TOTAL 45.2% 115,733 79,717 100.0% 100.0%
El Camino Real and Midtown % CHANGE QoQ 2021Q3 QE 2020Q3 QE 21Q3 % OF TOTAL 20Q3 % OF TOTAL
FOOD PRODUCTS 44.8% 125,775 86,839 38.2%34.2%
GENERAL RETAIL 11.5% 35,937 32,232 10.9%12.7%
ALL OTHER 24.4% 167,486 134,602 50.9%53.1%
TOTAL 29.8% 329,197 253,673 100.0% 100.0%
Greater Downtown % CHANGE QoQ 2021Q3 QE 2020Q3 QE 21Q3 % OF TOTAL 20Q3 % OF TOTAL
FOOD PRODUCTS 64.9% 366,469 222,282 55.9%51.3%
GENERAL RETAIL 42.9% 232,977 162,996 35.5%37.6%
BUSINESS TO B US INESS 44.2% 33,753 23,403 5.1%5.4%
CONSTRUCTION ‐23.9% 11,823 15,535 1.8%3.6%
MISCELLANEOUS 21.6% 7,126 5,862 1.1%1.4%
TRANSPORTATION 27.3% 3,957 3,109 0.6%0.7%
TOTAL 51.5% 656,105 433,188 100.0% 100.0%
Stanford Shopping Center % CHANGE QoQ 2021Q3 QE 2020Q3 QE 21Q3 % OF TOTAL 20Q3 % OF TOTAL
GENERAL RETAIL 62.2% 1,049,142 646,676 72.1%68.3%
FOOD PRODUCTS 40.6% 133,926 95,278 9.2%10.1%
ALL OTHER 32.9% 272,815 205,215 18.7%21.7%
TOTAL 53.7% 1,455,883 947,169 100.0% 100.0%
City of Palo Alto Geo Areas & Citywide Chart Data: Change from 2020Q3 to 2021Q3 (Economic)
Table 8 14.a
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Town And Country Shopping Center % CHANGE QoQ 2021Q3 QE 2020Q3 QE 21Q3 % OF TOTAL 20Q3 % OF TOTAL
GENERAL RETAIL 27.3% 54,803 43,038 37.6%42.6%
ALL OTHER 57.0% 91,082 58,014 62.4%57.4%
TOTAL 44.4% 145,885 101,052 100.0% 100.0%
All Other Geos combined with Balance of Jurisdiction % CHANGE QoQ 2021Q3 QE 2020Q3 QE 21Q3 % OF TOTAL 20Q3 % OF TOTAL
BUSINESS TO BUSINESS ‐11.4% 1,611,066 1,819,100 29.5%39.4%
GENERAL RETAIL 38.8% 1,604,631 1,155,676 29.4%25.1%
TRANSPORTATION 40.1% 1,330,344 949,355 24.4%20.6%
FOOD PRODUCTS 52.9% 805,274 526,836 14.8%11.4%
MISCELLANEOUS 17.2% 54,951 46,885 1.0%1.0%
CONSTRUCTION ‐58.7% 47,547 115,103 0.9%2.5%
TOTAL 18.2% 5,453,814 4,612,954 100.0% 100.0%
All Geo Area Totals Comparison 21Q3 & 20Q3 % CHANGE QoQ 2021Q3 QE 2020Q3 QE 21Q3 % OF TOTAL 20Q3 % OF TOTAL
Balance of Jurisdiction ‐1.7% 2,751,011 2,798,156 50.4%60.7%
Stanford Shopping Center 53.7% 1,455,883 947,169 26.7%20.5%
Greater Downtown 51.5% 656,105 433,188 12.0%9.4%
El Camino Real and Midtown 29.8% 329,197 253,673 6.0%5.5%
Town And Country Shopping Center 44.4% 145,885 101,052 2.7%2.2%
California Avenue 45.2% 115,733 79,717 2.1%1.7%
TOTAL 18.2% 5,453,814 4,612,954 100.0% 100.0%
Palo Alto citywide QE 21Q3 & 20Q3 % CHANGE QoQ 2021Q3 QE 2020Q3 QE 21Q3 % OF TOTAL 20Q3 % OF TOTAL
GENERAL RETAIL 38.1% 1,798,257 1,301,799 28.8%24.6%
BUSINESS TO BUSINESS ‐12.9% 1,762,093 2,024,034 28.3%38.2%
TRA NSPORTATION 38.6% 1,558,372 1,124,734 25.0%21.2%
FOOD PRODUCTS 49.2% 970,873 650,744 15.6%12.3%
MISCELLANEOUS 16.0% 91,461 78,840 1.5%1.5%
CONSTRUCTION ‐56.7% 53,005 122,397 0.9%2.3%
TOTAL 17.6% 6,234,061 5,302,548 100.0% 100.0%
City of Palo Alto Geo Areas & Citywide Chart Data: Change from 2020Q3 to 2021Q3 (Economic) Cont.
Table 9 14.a
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FOOD PRODUCTS,
70.3% CHANGE, $48,380 ,
41.8% TOTAL
GENERAL RETAIL, 8.8% CHANGE,
$34,833 , 30.1% TOTAL
ALL OTHER,
68.7% CHANGE, $32,519 ,
28.1% TOTAL
California Avenue 2021Q3 SALES TAX AMOUNTS
FOOD PRODUCTS, $28,412 ,
35.6% TOTAL
GENERAL RETAIL,
$32,026 , 40.2% TOTAL
ALL OTHER, $19,279 ,
24.2% TOTAL
California Avenue 2020Q3 SALES TAX AMOUNTS
FOOD PRODUCTS,
44.8% CHANGE, $125,775 ,
38.2% TOTAL
GENERAL RETAIL,
11.5% CHANGE, $35,937 ,
10.9% TOTAL
ALL OTHER,
24.4% CHANGE,
$167,486 ,
50.9% TOTAL
El Camino Real and Midtown 2021Q3SALES TAX AMOUNTS
FOOD PRODUCTS, $86,839 ,
34.2% TOTAL
GENERAL RETAIL,
$32,232, 12.7% TOTAL
ALL OTHER, $134,602,
53.1% TOTAL
El Camino Real and Midtown 2020Q3SALES TAX AMOUNTS
City of Palo Alto Geo Area Pie Charts
Table 10 14.a
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www.avenuinsights.com (800) 800-8181 Page 11
FOOD PRODUCTS,
64.9% CHANGE, $366,469 ,
55.9% TOTAL
GENERAL RETAIL,
42.9% CHANGE,
$232,977 ,
35.5% TOTAL
BUSINESS TO BUSINESS,
44.2% CHANGE, $33,753 ,
5.1% TOTAL
CONSTRUCTION,
‐23.9% CHANGE, $11,823 ,
1.8% TOTAL
MISCELLANEOUS, 21.6% CHANGE,
$7,126 , 1.1% TOTAL
TRANSPORTATION,
27.3% CHANGE, $3,957 ,
0.6% TOTAL
Greater Downtown 2021Q3SALES TAX AMOUNTS
FOOD PRODUCTS,
$222,282 , 51.3% TOTAL
GENERAL RETAIL,
$162,996 , 37.6% TOTAL
BUSINESS TO BUSINESS,
$23,403 , 5.4% TOTAL
CONSTRUCTION, $15,535 ,
3.6% TOTAL
MISCELLANEOUS,
$5,862 , 1.4% TOTAL
TRANSPORTATION, $3,109 ,
0.7% TOTAL
Greater Downtown 2020Q3SALES TAX AMOUNTS
GENERAL RETAIL
$646,676 , 68.3% TOTAL
FOOD PRODUCTS, $95,278 ,
10.1% TOTAL
ALL OTHER, $205,215 ,
21.7% TOTAL
Stanford Shopping Center 2020Q3SALES TAX AMOUNTS
GENERAL RETAIL, 62.2% CHANGE,
$1,049,142 , 72.1% TOTAL
FOOD PRODUCTS,
40.6% CHANGE,
$133,926 , 9.2% TOTAL
ALL OTHER, 32.9% CHANGE,
$272,815 , 18.7% TOTAL
Stanford Shopping Center 2021Q3SALES TAX AMOUNTS
City of Palo Alto Geo Areas Pie Charts
Table 11 14.a
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City of Palo Alto
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GENERAL RETAIL,
27.3% CHANGE, $54,803 ,
37.6% TOTAL
ALL OTHER,
57.0% CHANGE,
$91,082 , 62.4% TOTAL
Town And Country Shopping Center 2021Q3SALES TAX AMOUNTS
GENERAL RETAIL, $43,038 ,
42.6% TOTAL
ALL OTHER, $58,014 ,
57.4% TOTAL
Town And Country Shopping Center 2020Q3 SALES TAX AMOUNTS
BUSINESS TO BUSINESS,
‐11.4% CHANGE,
$1,611,066 ,
29.5% TOTAL
GENERAL RETAIL,
38.8% CHANGE, $1,604,631,
29.4% TOTAL
TRANSPORTATION,
40.1% CHANGE,
$1,330,344,
24.4% TOTAL
FOOD PRODUCTS,
52.9% CHANGE, $805,274 ,
14.8% TOTAL
MISCELLANEOUS,
17.2% CHANGE, $54,951 ,
1.0% TOTAL
CONSTRUCTION, ‐58.7% CHANGE,
$47,547 , 0.9% TOTAL
All Other Geos combined with Balance of Jurisdiction 2021Q3
SALES TAX AMOUNTS
BUSINESS TO BUSINESS,
$1,819,100 ,
39.4% TOTAL
GENERAL RETAIL, $1,155,676,
25.1% TOTAL
TRANSPORTATION,
$949,355,
20.6% TOTAL
FOOD PRODUCTS,
$526,836 , 11.4% TOTAL
MISCELLANEOUS,
$46,885 , 1.0% TOTAL
CONSTRUCTION,
$115,103 , 2.5% TOTAL
All Other Geos combined with Balance of Jurisdiction 2020Q3
SALES TAX AMOUNTS
City of Palo Alto Geo Area Pie Charts
Table 12 14.a
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Balance of Jurisdiction,
‐1.7% CHANGE,
$2,751,011 ,
50.4% TOTAL
Stanford Shopping Center,
53.7% CHANGE, $1,455,883 ,
26.7% TOTAL
Greater Downtown,
51.5% CHANGE, $656,105 ,
12.0% TOTAL
El Camino Real and Midtown,
29.8% CHANGE, $329,197 ,
6.0% TOTAL
Town And Country Shopping Center,
44.4% CHANGE, $145,885 , 2.7% TOTAL California Avenue, 45.2% CHANGE,
$115,733 , 2.1% TOTAL
All Geo Area Totals 2021Q3SALES TAX AMOUNTS
Balance of Jurisdiction,
$2,798,156 , 60.7% TOTAL
Stanford Shopping Center,
$947,169 , 20.5% TOTAL
Greater Downtown,
$433,188 ,9.4%TOTAL
El Camino Real and Midtown,
$253,673 , 5.5% TOTAL
Town And Country Shopping Center,
$101,052 , 2.2% TOTAL
California Avenue,
$79,717 , 1.7% TOTAL
All Geo Area Totals 2020Q3SALES TAX AMOUNTS
GENERAL RETAIL,
38.1% CHANGE, $1,798,257 ,
28.8% TOTAL
BUSINESS TO BUSINESS,
‐12.9% CHANGE,
$1,762,093 , 28.3% TOTAL
TRANSPORTATION,
38.6% CHANGE,
$1,558,372 ,
25.0% TOTAL
FOOD PRODUCTS,
49.2% CHANGE, $970,873 ,
15.6% TOTAL
MISCELLANEOUS, 16.0% CHANGE,
$91,461 , 1.5% TOTAL
CONSTRUCTION,
‐56.7% CHANGE,
$53,005 , 0.9% TOTAL
Palo Alto citywide 2021Q3SALES TAX AMOUNTS
GENERAL RETAIL, $1,301,799 ,
24.6% TOTAL
BUSINESS TO BUSINESS,
$2,024,034 ,38.2% TOTAL
TRANSPORTATION,
$1,124,734 ,
21.2% TOTAL
FOOD PRODUCTS,
$650,744 , 12.3% TOTAL
MISCELLANEOUS,
$78,840 , 1.5% TOTAL
CONSTRUCTION, $122,397 ,
2.3% TOTAL
Palo Alto citywide 2020Q3SALES TAX AMOUNTS
City of Palo Alto Geo Area & Citywide Pie Charts
Table 13 14.a
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1264 Hawks Flight Court #270, El Dorado Hills CA 95762 | 559-288-7296 | www.avenuinsights.com
March 2021
The Muniservices/Avenu teams sends our very best to you for a safe and enjoyable holiday season. It is a
pleasure and an honor to collaborate with all of you. Please feel free to contact us at any time as we come
to the close of 2021 and as things gear up in 2022.
Please feel free to contact me with any questions.
Fran Mancia, Vice President of Government Relations Fran.Mancia@AvenuInsights.com
What lies ahead in 2022?
We are anticipating another busy legislative and budget year in 2022, with the Legislature reconvening to
begin their work for 2022 on January 3rd. As the second year in a two-year session, legislation introduced
in 2021 that has not yet moved to the second house must move forward in January or will die, with
exceptions for measures requiring a ⅔ vote. This means that in January there will be a rush of policy and
fiscal committee hearings in addition to the release of the governor’s 2022-23 budget proposal on or by
January 10.
Important Dates in early 2021:
January 3: Legislature reconvenes
January 10: Budget must be submitted by governor
January 14: Last day for policy committees to hear and report to fiscal committees on fiscal bills
introduced in their house in 2021
January 21: Last day for any committee to hear and report to the Floor bills introduced in their house in
2021
January 21: Last day to submit bill requests to the Office of Legislative Counsel
January 31: Last day for each house to pass bills introduced in 2021 in their house
February 18: Last day for bills to be introduced
During December, legislators, their staff, the governor, and his staff are all completing their office moves
over to the “swing space” at 10th and O Street to allow for the rebuilding of the Capitol annex which is
estimated to be completed in 2025. This will necessitate a number of adjustments both as it pertains to
lobbying, as well as to the location of committee hearings. The new swing space has four committee
rooms, which will be utilized for larger hearings traditionally taking place in the Capitol annex.
Budget Updates: Both the Senate and Assembly Budget Committees released overviews of their priorities
for 2022 last week, in advance of the governor’s January 10 proposal.
The Senate’s Key Values document was a preview of their detailed Senate budget priorities to be released
early next year. Below are their high-level areas of focus.
Policy and Capitol Update – December 2021
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Sustain Progress: Build upon reserves, pay down debt and retirement liabilities, use one-time funding for
one-time purposes, maintain existing priorities that promote equity, and expand oversight and
accountability.
Strengthen Equity/Meet Gann Limit Requirements
● Maximize infrastructure investment.
● Build on targeted tax relief programs for families.
● Ensure ongoing commitments can be made to health, safety net, and higher education programs,
and
● Consider reforms to modernize the Gann Limit.
Build a More Equitable Economy
● Support childcare, small businesses, and the essential workforce.
● Support aging Californians.
● Improve public health, mental health, and health access and affordability.
● Balance public safety and justice.
● Address housing challenges.
● Boost infrastructure including transportation, education, broadband, and climate/disaster
resiliency.
● Protect school budgets.
● Improve higher education quality, affordability, and accessibility.
● Enhance climate, environment, and resource protection, and
● Strengthen wildfire mitigation and response.
The Assembly Budget Blueprint reviewed actions taken in the 2021-22 budget and prioritized the
following for 2022:
● Implementation of 2021 investments including climate resilience, wildfires, broadband, and
behavioral health.
● Addressing the State Appropriations (Gann) limit.
● Increased funding for education, particularly as it relates to mental health and learning loss.
● Ensuring homelessness and affordable housing funding are providing additional permanent and
temporary housing.
● Oversight of the Employment Development Department’s progress in implementing
improvements.
● Preventing tenant evictions.
● Funding wildfire prevention and climate investments promptly.
● Improve public health infrastructure.
● Accountability measures for CalAIM and the Children and Youth Behavioral Health initiatives.
● Address disparities and needs in the child welfare and foster care system.
● Drought response and water resilience funding to the most vulnerable communities.
● Broadband access to inaccessible communities.
● Scrutinize prison operations and restore independent oversight in the Office of the Inspector
General.
● Promote the creation of living wage jobs.
Attachment B
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● Fund the Department of Toxic Substances Control to ensure resources to clean toxic sites.
● Major infrastructure investments:
○ $10 billion for school facilities; $10 billion for transportation projects including transit
infrastructure; more affordable housing and homelessness prevention; modernize
courthouses and leverage federal infrastructure funds.
○ Create an ongoing funding stream for supportive housing of indigent adults.
○ Bolster enrollment growth at UC and CSU.
○ Attract new workers to health care, education, and childcare occupations.
○ Increase access to Medi-Cal, CalFresh, and CalWORKs through program simplification
and expanded eligibility.
○ More resources for violence and suicide prevention.
○ Focus on providing second chances for formerly incarcerated individuals.
Legislative Prospective: With the new legislative cycle a few weeks away, many lawmakers have already
signaled their legislative priorities for 2022. These include existing issues like the COVID-19 pandemic,
broadband funding, and the implementation of large-scale behavioral health programs.
Though we don't know much about the new Omicron strain of COVID-19, a number of bills are likely to
be introduced relating to the ongoing pandemic. These include both legislation allowing personal belief
exemptions as well as conflicting legislation mandating vaccinations or testing. Cal/OSHA is scheduled to
meet on December 16 and could expand worker protections related to COVID-19 that employers have
been fighting throughout the pandemic. In addition, the State’s $6 billion investment in broadband will
now be enhanced by more than $100 million in federal funding which must be programmed.
Legislation that stalled in 2021 may also be revived in 2022, including attempts to decriminalize
hallucinogens, the implementation of public injection sites in an effort to address substance abuse,
development of a single-payer health system, and the regulation of social media platforms.
The continued fight for environmental protections could ramp up in 2022 with the recent oil spill off the
coast of Orange County and a number of legislators’ attendance at the Glasgow Climate Change
Conference. Legislators have already committed to introducing bills that would ban oil drilling in state
waters. Additionally, we could see administrative action on battery-powered engines, rules to prohibit
wasteful water use, and CPUC proposals on Net Energy Metering reform.
Additionally, the upcoming legislative cycle could prove extra challenging for legislators, as revised maps
from the California Citizens Redistricting Commission will greatly change some lawmakers’ districts.
Legislators will need to be cognizant of their new constituents, which could influence their voting and the
legislation they choose to pursue. Competitive districts will change, making for a unique legislative year
as legislators not only adjust to new Sacramento offices, but new districts with new priorities.
LAO Fiscal Outlook: 2022-23 Budget: November 17, the Legislative Analyst's Office (LAO) published a
report on California's fiscal outlook for the 2022-23 budget. This report is an early projection of
California's economic status for the upcoming fiscal year.
Surplus: Due to continued growing state revenues, the LAO projects a surplus of $31 billion for the 2022-
23 fiscal year. Retail sales have doubled in growth in 2021, stock prices have doubled since the pandemic
low in Spring 2020, and major firms posted historically high earnings. As a result of this unexpected
Attachment B
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growth, the Legislature will need to allocate roughly $14 billion to meet the constitutional requirement
under State Appropriations Limit (SAL) by reducing taxes, spending more on excluded purposes like
infrastructure, or making additional payments to schools and community colleges.
Spending to meet SAL: Prop 98 guarantees K-14 funding through a combination of state General Fund
dollars and local property tax revenues. In remaining consistent with revenue increases, spending on K-14
schools is likely to increase by almost $11 billion. Additionally, with the expansion of Transitional
Kindergarten, a $421 million spending increase in 2022-23 is anticipated. This leaves the Legislature with
an estimated $9.5 billion in ongoing discretionary funds available, and $10.2 billion in one-time funds
available, totaling $19.7 billion for K-14 over the next 3 years in order to meet the constitutional
requirement under SAL.
Spending in the rest of the budget is lower than projected by $5 billion due to a number of factors,
including savings associated with an enhanced federal share of certain Medicaid programs. The federal
match increased 6.2% during the pandemic, and the continued enhanced share is assumed through March
2022. This means that General Fund spending will increase beginning the 4th quarter of the current fiscal
year 2021-22 to fully cover Medi-Cal. Additionally, $3.3 billion of spending set aside for transportation
infrastructure that ultimately did not pass the Legislature will revert to the General Fun. As a result, the
state may end up with an additional $5.2 billion surplus in 2022-23 which is included in the total surplus
projection of $31 billion. The LAO suggests that the Legislature should plan to meet the SAL early to
avoid adjustments during the governor’s May revise.
Reserves: With the current LAO estimates, the state's constitutional reserves could reach 10% of revenues
and transfers in the 2022-23 fiscal year, which is about $21 billion in the Budget Stabilization Account.
Pre-pandemic reserves were 13% of the state's revenues and transfers, so the state would need to make
additional, discretionary deposits into one of the reserves to meet the state's reserves prior to the
pandemic. The LAO recommends that the Legislature increase total reserves by more than the
constitutionally mandated level to return to pre-pandemic levels sooner. Because the bulk of revenue and
spending projections are dependent on legislative action, the LAO projects a surplus range between $3
and $8 billion through the 2025-26 budget.
26th UN Climate Change Conference of the Parties: This week, members of the Legislature and
Lieutenant Governor Eleni Kounalakis traveled to and have been reporting from the 26th UN Climate
Change Conference of the Parties (COP26) in Glasgow, Scotland. Governor Newsom was originally
scheduled to participate in the conference, however canceled his plans sending the Lieutenant Governor in
his stead. Over the past year, the governor has signed executive orders to phase out internal-combustion
vehicles, preserve 30 percent of the state's land and water by 2030, and phase out fracking by 2024 and oil
extraction by 2045. $15 billion was allocated in the 2021-22 Budget Act over the next three years by the
governor and Legislature for climate programs.
Although California legislators originally branded the trip as one to showcase California’s leadership in
climate change, it became clear quickly that we still have a lot to learn from other countries and states as
well as additional work to do in California.
Assembly Speaker Anthony Rendon (D-Lakewood), said that he anticipates reconsideration of AB 1395
or a similar measure in 2022 as a follow-up to the conference. AB 1395 (Muratsuchi), which failed
passage on the Senate Floor in September, declares it is the policy of the state to achieve net zero
greenhouse gas (GHG) emissions as soon as possible, but no later than 2045, and to achieve and maintain
net negative GHG emissions thereafter. Additionally, it declares that it is a policy of the state to ensure
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that by 2045, statewide anthropogenic (originating from human activity) GHG emissions are reduced by
at least 90% below 1990 levels, which includes emissions prevented by carbon capture and storage.
Senator Josh Becker (D-Menlo Park) also announced his intent this week to introduce a bill requiring
California to reduce its emissions from state-owned vehicles, buildings, and other sectors to net zero by
2035, 10 years before the economy-wide target of 2045. He is additionally exploring legislation to
streamline the building of low-carbon construction projects.
On Monday November 8, the California Air Resources Board, on behalf of the state of California, signed
a Joint Declaration of cooperation in the fight against climate change with the governments of New
Zealand and Québec. AB 32 (Chapter 488, Statutes of 2006) requires consultation with other states, the
federal government, and other nations to identify the most effective strategies and methods to reduce
greenhouse gases, manage greenhouse gas control programs, and to facilitate the development of
integrated and cost-effective regional, national, and international greenhouse gas reduction programs. The
Joint Declaration states the intent to:
● Share information, experiences, and best practices on the implementation of strategies, policies,
and programs on the design of cap-and-trade systems for greenhouse gas emissions,
measurement, reporting and verification systems, sustainable mobility, forestry, agriculture, and
aligning incentives and investments to support and bolster climate action.
● Foster research, development, deployment, and exchange of clean technologies including in
renewable energy, energy efficiency, energy storage, agriculture, and zero-emission
transportation.
● Promote environmental integrity of carbon pricing instruments to reduce greenhouse gas
emissions worldwide.
● Explore opportunities for potential future alignment of our respective cap-and-trade programs
through focused information sharing and discussions related to cap setting, scope, auctions,
allocation, market rules, and other key program design features.
Legislators attending the conference included Senators Josh Becker, Lena Gonzalez (D-Long Beach), Bob
Hertzberg (D-Van Nuys), John Laird (D-Santa Cruz) and Bob Wieckowski (D-Fremont), Assembly
Speaker Anthony Rendon, and Assemblymembers Isaac Bryan (D-Los Angeles), Lisa Calderon (D-
Whittier), Laura Friedman (D-Glendale), Tasha Boerner Horvath (D-Encinitas), Eduardo Garcia (D-
Coachella), Al Muratsuchi (D-Torrance), Luz Rivas (D-North Hollywood), Mark Stone (D-Scotts
Valley), and Christopher Ward (D-San Diego).
Select Committee on Ports and Goods Movement: On November 3, the Assembly and Senate Select
Committees on Ports and Goods Movement held a joint hearing to discuss recent issues contributing to
delays in our national supply chain. The panelists consisted of experts representing ports in California, the
retail industry, labor groups, and various agricultural organizations who provided feedback to lawmakers
on factors hindering business operations as well as temporary solutions currently being utilized to address
port congestion.
Background: Port congestion is detrimental to both the California and national economy. About 40% of
all shipping containers entering the country come through the twin Los Angeles and Long Beach ports.
Manufacturers are struggling to acquire products to meet consumer demand and farmers are struggling to
secure empty containers to ship agricultural goods. Record demand for imported goods and labor
shortages are contributing to the backlog of container ships, and these delays will ultimately lead to higher
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prices for consumers, greater wait times for goods, and could hinder California’s post-pandemic economic
recovery. The agriculture industry alone is experiencing a cancelation rate of about 80% of their
bookings, leading to a $7.5 million loss in sales for the industry.
Labor Shortage: As of October 19, 62 container ships were anchored off the coast waiting to unload at the
Los Angeles and Long Beach ports. Current wait time for ships is now approximately ten days, over 3.8
days longer than the wait time during September. Before the backlog, containers were typically left at
terminals for less than four days, however, recently, approximately 40% of containers are left for nine or
more days. Both ports are now implementing fines for containers left for long periods of time in hopes of
expediting the process.
The nation’s transportation industry is also facing an unprecedented worker shortage. According to the
Labor Department, job openings in the transportation, warehousing, and utilities sector have steadily
increased this year and reached 537,000 in August - a 67% increase from February 2020. Older
employees have retired or decided to transfer into other industries, and replacements are not forthcoming.
As a result, ports lack truckers, dock workers, and other utility driver workers that are essential to the
expedient unloading of materials into the United States.
State Action: The administration and ports have already taken some actions to address the supply chain
backlog to try and improve it, and we anticipate further action when the Legislature returns in January.
Earlier this year, GO-Biz launched the California Supply Chain Success Initiative, a partnership with the
California State Transportation Agency, the Port of Long Beach, and the CSU Long Beach Center for
International Trade and Transportation to engage stakeholders along the supply chain to discuss key
challenges and identify creative solutions. This effort, which brought together federal, state, and local
leaders, is focused on both short-term and long-term steps to address port congestion, improving
collaboration, and exploring policies to remove obstacles and improve the movement of goods.
On Wednesday, October 20, Governor Newsom signed Executive Order N-19-21 formalizing efforts
already underway to address supply chain shortfalls. The Executive Order directs that within 30 days, the
Department of Transportation and the California State Transportation Agency, in collaboration with
industry stakeholders, shall evaluate and identify priority freight routes to be considered for a temporary
exemption to current gross vehicle weight limits; GO-Biz shall identify non-state sites, including private,
locally owned, and federally owned parcels, that could be available to address short-term storage needs;
the Department of General Services shall complete its review of state owned property in proximity to
impacted ports that may be made available to address short-term storage needs by December 15, 2021 and
shall collaborate with other state agencies to expedite leasing for the purpose of storing cargo containers
on state-owned parcels; and the California Labor and Workforce Development Agency shall identify
potential high road training partnerships to increase education, career technical education, skilled job
training, and workforce development opportunities for port workers and other workers across the supply
chain.
Additionally, the Executive Order directs the California Labor and Workforce Development Agency to
announce the membership of the industry panel established by AB 639 (Cervantes, 2020) by December
31, 2021 and convene the panel for its first meeting by March 1, 2022. AB 639 requires that the Labor
and Workforce Development Agency and California Workforce Investment Board oversee a stakeholder
process to develop recommendations on how to address automation at the Port of Los Angeles and the
Port of Long Beach.
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Emerging Projects Agreement: Last week, the U.S. Department of Transportation and Governor Newsom
announced a federal-state partnership, dubbed the Emerging Projects Agreement, to identify funding for
infrastructure projects at California ports. There is currently an imbalance in the investments in ports in
California versus ports on the east coast that receive eleven times more funding from the federal
government. $5 billion in loans will be issued to the Long Beach and Los Angeles port authorities in part
through two Department of Transportation credit assistance programs: the Transportation Infrastructure
Finance and Innovation Act and Railroad Rehabilitation and Improvement Financing.
The loans are intended to expedite a network of projects including expanding rail capacity, developing
inland port facilities for increased warehouse storage, and highway upgrades. However, these are longer
term projects and will do little to alleviate the current backlog.
On October 20, President Biden announced an agreement with the Port of Los Angeles to increase
operations to 24 hours, seven days per week as a short-term solution. FedEx, Walmart, and UPS also
reportedly plan to increase operations to 24 hours. Long Beach officials have even suspended a portion of
the city’s municipal code limiting container stacking heights outside the port complex to immediately
increase storage capacity within our California ports.
The California Business Roundtable, along with a number of statewide business associations, requested
that an Extraordinary Session of the Legislature be called for the purpose of repealing, suspending, or
reforming state laws and regulations hindering expeditious service at California ports. A group of ten
Assembly Republicans, led by Kevin Kiley, echoed that request. Newsom's senior advisor and director of
GO-Biz said she'd received the letter and that there would be no state of emergency, however the
governor has yet to publicly address whether a special session will be called.
Housing Strike Force: This fall, Attorney General Rob Bonta announced the formation of a Housing
Strike Force made up of deputy attorneys general with expertise in housing and related matters to work
with state agencies and other partners in addressing the housing crisis and to enforce state laws aimed at
increasing housing supply and providing housing security. In part, this action came as a result of AB 215
(Chiu, Chapter 342, Statutes of 2021) which provides the Department of Housing and Community
Development and the Attorney General with additional enforcement authority for local agency violations
of housing laws.
Specifically, the Housing Strike Force will:
● Enforce state housing and development laws in the Attorney General’s independent capacity and
on behalf of the Department of Justice’s client agencies;
● Enforce tenant rights, mortgage servicing, and other consumer protection laws;
● Issue consumer alerts advising tenants and homeowners on their protections under state and
federal law;
● Issue guidance letters to local governments on state housing laws;
● Defend state housing and tenant protection laws from legal challenges; and
● Advocate with the state legislature, federal agencies, and other state agencies to advance a right
to housing.
As an Assemblymember, Bonta introduced ACA 10, which if passed and approved by California voters,
would have declared in the California Constitution that housing is a fundamental human right and is the
shared responsibility of both state and local governments. ACA 10 did not move forward, however, AB
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Schedule of Meetings
Published January 27, 2022
This is a courtesy notice only. Meeting dates, times, and locations are subject to change. Almost all Palo Alto
Council and some Standing Committee meetings are cablecast live on Channel 26. If there happens to be
concurrent meetings, one meeting will be broadcast on Channel 29.
Until further notice, all meetings will be held virtually.
Persons with disabilities who require auxiliary aids or services in using City facilities or programs, or who would like information on the City’s compliance with the Americans with Disabilities Act (ADA) of 1990, may
contact: ADA Coordinator, City of Palo Alto, 650-329-2550 (voice) or 329-1199 (TDD), ada@cityofpaloalto.org. Listening assistive devices are available in the Council Chambers. Sign language interpreters will be
provided upon request with 72 hours advance notice. Please advise the City Clerk's Office (650-329-2571) of meetings or changes by 3:00 p.m. on Wednesdays for inclusion in the following week’s schedule.
1/27/2022
THURSDAY, JANUARY 27
Historic Resources Board Meeting, 8:30 a.m.
MONDAY, JANUARY 31
Sp. City Council Meeting, 5 p.m.
TUESDAY, FEBRUARY 1
Sp. Finance Committee Meeting, 6 p.m.
WEDNESDAY, FEBRUARY 2
Sp. Utilities Advisory Commission Meeting, 5 p.m.
THURSDAY, FEBRUARY 3
Architectural Review Board Meeting, 8:30 a.m.
SATURDAY, FEBRUARY 5
City Council Retreat, 8:30 a.m.
MONDAY, FEBRUARY 7
Sp. City Council Meeting, 5 p.m.
TUESDAY, FEBRUARY 8
Policy & Services Committee Meeting, 7 p.m.
WEDNESDAY, FEBRUARY 9
Planning & Transportation Commission Meeting, 6 p.m.
THURSDAY, FEBRUARY 10
Historic Resources Board Meeting, 8:30 a.m.
Human Relations Commissions Meeting, 6 p.m.
FRIDAY, FEBRUARY 11
Parks and Recreation Commissions Retreat, 10:30 a.m.
MONDAY, FEBRUARY 14
Sp. City Council Meeting, 5 p.m.
TUESDAY, FEBRUARY 15
Finance Committee Meeting, 7 p.m.
THURSDAY, FEBRUARY 17
City/School Liaison Committee Meeting, 8:30 a.m.
Architectural Review Board Meeting, 8:30 a.m.
Public Art Commission Meeting, 7 p.m.
MONDAY, FEBRUARY 21
City Council Meeting, 6 p.m. (CANCELLED DUE TO HOLIDAY)
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