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2021-01-25 City Council Agenda Packet
City Council 1 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION ON THE CITY’S WEBSITE. Monday, January 25, 2021 Special Meeting 5:00 PM Agenda posted according to PAMC Section 2.04.070. Supporting materials are available on the city’s website on the Thursday 11 days preceding the meeting. ***BY VIRTUAL TELECONFERENCE ONLY*** CLICK HERE TO JOIN Meeting ID: 362 027 238 Phone:1(669)900-6833 Pursuant to the provisions of California Governor’s Executive Order N-29-20, issued on March 17, 2020, to prevent the spread of Covid-19, this meeting will be held by virtual teleconference only, with no physical location. The meeting will be broadcast on Cable TV Channel 26, live on YouTube at https://www.youtube.com/c/cityofpaloalto, and Midpen Media Center at https://midpenmedia.org. Members of the public who wish to participate by computer or phone can find the instructions at the end of this agenda. To ensure participation in a particular item, we suggest calling in or connecting online 15 minutes before the item you wish to speak on. TIME ESTIMATES Time estimates are provided as part of the Council's effort to manage its time at Council meetings. Listed times are estimates only and are subject to change at any time, including while the meeting is in progress. The Council reserves the right to use more or less time on any item, to change the order of items and/or to continue items to another meeting. Particular items may be heard before or after the time estimated on the agenda. This may occur in order to best manage the time at a meeting or to adapt to the participation of the public. HEARINGS REQUIRED BY LAW Applicants and/or appellants may have up to ten minutes at the outset of the public discussion to make their remarks and up to three minutes for concluding remarks after other members of the public have spoken. Call to Order Special Orders of the Day 5:00-5:10 PM 1.Presentation From the Palo Alto Community Child Care Non-profit Agenda Changes, Additions and Deletions Oral Communications 5:10-5:25 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. REVISED 2 January 25, 2021 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION ON THE CITY’S WEBSITE. Minutes Approval 5:25-5:30 PM 2.Approval of Action Minutes for the January 4 and 11, 2021 City Council Meetings Consent Calendar 5:30-5:35 PM Items will be voted on in one motion unless removed from the calendar by three Council Members. 3.Review and Acceptance of the Annual Status Report on Development Impact Fees for Fiscal Year 2020 and Adoption of a Resolution Making Statutory Findings for Certain Funds 4.Request for Authorization to Amend the Existing Legal Service Agreement With the Law Firm of Colantuono, Highsmith & Whatley, PC (Contract S17167696) to Increase the Contract Amount by an Additional $85,000, Bringing the new Not-to-Exceed Amount to $340,000; and to Increase the Term by one Year City Manager Comments 5:35-5:45 PM Action Items Include: Reports of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Reports of Officials, Unfinished Business and Council Matters 5:45-7:15 PM 4A. 8:15-9:15 PM 6.Status Report on the South Palo Alto Bikeways Project Funded by the VERBS Grant; Approval of the Community Engagement Plan; and Approval of Budget Amendments in the Capital Improvement Fund, Projects: Safe Routes to School PL-00026, and El Camino Real Pedestrian Safety and Streetscape PL-18000 9:15-10:30 PM 7.Update on the Status of Capital Improvement Fund and Potential Direction on Prioritization of Projects for the Fiscal Year (FY) 2022 Budget and 2022-2026 Capital Improvement Plan 5. Provide Feedback and Direction on the Community and Economic Recovery Workplan Which Includes Four Focus Areas: Managing Through the Pandemic, Community Wellness and Wellbeing, Focused Business Support and City Initiatives; and Recommend Returning With Budget Amendments in Various Funds at the Mid-year Budget Review 7:15-8:15 PM PUBLIC HEARING QUASI-JUDI CIAL. 922 College Avenue [20PLN-00104]: Request for Review of a Preliminary Parcel Map With Exceptions to Adjust Lot Lines for two Substandard Parcels to Facilitate the Redevelopment and Sale of two Homes. Environmental Assessment: Exempt. Zoning District: R-1 (Single Family Residential) Q&A Q&A Presentation Presentation Presentation Presentation Public Comment Public Comment Public Comment Public Comment 3 January 25, 2021 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION ON THE CITY’S WEBSITE. Council Member Questions, Comments and Announcements Members of the public may not speak to the item(s) Adjournment AMERICANS WITH DISABILITY ACT (ADA) Persons with disabilities who require auxiliary aids or services in using City facilities, services or programs or who would like information on the City’s compliance with the Americans with Disabilities Act (ADA) of 1990, may contact (650) 329-2550 (Voice) 24 hours in advance. 4 January 25, 2021 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION ON THE CITY’S WEBSITE. Additional Information Informational Report Semiannual Update on the Status of Capital Improvement Program Projects City of Palo Alto's Energy Risk Management Report for the Second Half of Fiscal Year 2020 Schedule of Meetings Schedule of Meetings Public Letters to Council Set 1 Set 2 5 January 25, 2021 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION ON THE CITY’S WEBSITE. Public Comment Instructions Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone. 1.Written public comments may be submitted by email to city.council@cityofpaloalto.org. 2.Spoken public comments using a computer will be accepted through the teleconference meeting. To address the Council, click on the link below to access a Zoom-based meeting. Please read the following instructions carefully. A.You may download the Zoom client or connect to the meeting in- browser. If using your browser, make sure you are using a current, up-to-date browser: Chrome 30+, Firefox 27+, Microsoft Edge 12+, Safari 7+. Certain functionality may be disabled in older browsers including Internet Explorer. B.You may be asked to enter an email address and name. We request that you identify yourself by name as this will be visible online and will be used to notify you that it is your turn to speak. C.When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will activate and unmute speakers in turn. Speakers will be notified shortly before they are called to speak. D.When called, please limit your remarks to the time limit allotted. E.A timer will be shown on the computer to help keep track of your comments. 3.Spoken public comments using a smart phone will be accepted through the teleconference meeting. To address the Council, download the Zoom application onto your phone from the Apple App Store or Google Play Store and enter the Meeting ID below. Please follow the instructions B-E above. 4.Spoken public comments using a phone use the telephone number listed below. When you wish to speak on an agenda item hit *9 on your phone so we know that you wish to speak. You will be asked to provide your first and last name before addressing the Council. You will be advised how long you have to speak. When called please limit your remarks to the agenda item and time limit allotted. CLICK HERE TO JOIN Meeting ID: 362 027 238 Phone:1(669)900-6833 City of Palo Alto (ID # 11875) City Council Staff Report Report Type: Consent Calendar Meeting Date: 1/25/2021 City of Palo Alto Page 1 Summary Title: Annual Status Development Impact Fees FY2020 Title: Review and Acceptance of the Annual Status Report on Development Impact Fees for Fiscal Year 2020 and Adoption of a Resolution Making Statutory Findings for Certain Funds From: City Manager Lead Department: Administrative Services RECOMMENDATION Staff recommends that the City Council review and accept the Annual Report on Development Impact Fees for the period ending June 30, 2020 (Attachment A) and adopt the resolution making statutory findings for certain development impact fee funds (Attachment B). BACKGROUND State law (Government Code Section 66006) requires that each local agency that imposes development impact fees prepare an annual report providing specific information about those fees. This requirement is part of the law commonly referred to as AB 1600 or the Mitigation Fee Act. It codifies the legal requirement that fees on new development must have the proper nexus to any project on which they are imposed. In addition, AB 1600 i mposes certain accounting and reporting requirements with respect to the fees collected. The fees, for accounting purposes, must be segregated from the general funds of the City and from other funds or accounts containing fees collected for other improvements. Interest on each development fee fund or account must be credited to that fund or account and used only for the purposes for which the fees were collected. Government Code Section 66006 contains comprehensive annual reporting requirements for development impact fees. This statute requires that, within 180 days after the close of the fiscal year, the agency that collected the fees must make available to the public the following information regarding each fund or account: • Brief description of the type of fee in the fund. • Amount of the fee. • Beginning and ending balance in the fund. • Amount of fees collected and interest earned. City of Palo Alto Page 2 • Identification of each public improvement on which fees were expended and the amount of the expenditure on each improvement, including the total percentage of the cost of the public improvement that was funded with fees. • Identification of an approximate date by which the construction of a public improvement will commence, if the local agency determines that sufficient funds have been collected to complete financing on an incomplete public improvement. • Description of each interfund transfer or loan made from the account or fund, including the public improvement on which the loaned funds will be expended, and in the case of an interfund loan, the date on which the loan will be repaid and the rate of interest that the account or fund will receive on the loan. • Amount of any refunds made due to inability to expend fees within the required time frame. This report must also be reviewed by the City Council at a regularly scheduled public meeting not less than 15 days after the information is made available to the public. In addition, notice of the time and place of the meeting shall be mailed at least 15 days prior to the meeting to an y interested party who files a written request with the local agency for such a mailed notice. An early packet consisting of Exhibit A only was made available to the public and included in the packet for the December 14, 2020 meeting of the City Council. The law also provides that, for the fifth fiscal year following the first deposit into the fund and every five years thereafter, the local agency shall make findings with respect to any portion of the fee remaining unexpended, whether committed or uncomm itted. The finding must: • identify the purpose to which the fee is to be put; • demonstrate a nexus between the fee and the purpose for which it was originally charged; and • identify all sources and amounts of funding anticipated to complete financing of incomplete improvements along with the approximate dates on which the anticipated funding is expected to be deposited into the fund. If the agency no longer needs the funds for the purposes collected, or if the agency fails to make required findings, or to perform certain administrative tasks prescribed by AB 1600, the agency may be required to refund to property owners a prorated portion of the monies collected for that project and any interest earned on those funds. DISCUSSION The City of Palo Alto development fees covered by AB 1600, and documented in Attachment A, include the following: • Stanford Research Park/El Camino Real traffic impact fees (PAMC Ch. 16.45): Fee for new nonresidential development in the Stanford Research Park/El Camino Real Service City of Palo Alto Page 3 Commercial zone, to fund capacity improvements at eight intersections. City ceased collecting effective fiscal year 2020. • San Antonio/West Bayshore Area traffic impact fees (PAMC Ch. 16.46): Fee for new nonresidential development in the San Antonio/West Bayshore area to fund capacity improvements at four intersections. City ceased collecting effective fiscal year 2020. • Housing impact fees imposed on commercial developments (PAMC Ch. 16.65): Fee on commercial and industrial development to offset the de mand that new jobs create for low income and moderate-income in the City. • Parking in-lieu fees for University Avenue Parking District (PAMC Ch. 16.57): Fee on new non-residential development in the University Avenue Parking Assessment District in lieu of providing required parking spaces. • Parks, Community Centers, and Libraries impact fees (PAMC Ch. 16.58): Fee on new residential and non-residential development to provide community facility funds for parks, community centers, libraries, public safety, and general government. • Residential housing in-lieu fees (PAMC Ch. 16.65): Fee on ownership residential developments of three or more units (including mixed use with ownership housing) in - lieu of providing required below-market rate units to low- and moderate-income households. • Charleston-Arastradero Corridor pedestrian and bicyclist safety fees (PAMC Ch. 16.60): Fee on new development and re-development within the Charleston-Arastradero Corridor to provide for pedestrian and bicyclist improvements. • Citywide Transportation impact fees (PAMC Ch 16.59): Fee on development in all parts of the City to fund transportation projects and programs to reduce congestion. • Public Safety facilities (PAMH Ch. 16.58): Fee on residential and non -residential development to fund police and fire facilities, including fire apparatus and vehicles. • General Government facilities (PAMH Ch. 16.58): Fee on residential and non-residential development to fund facilities associated with municipal administration. • Residential (Rental) impact fees (PAMC Ch. 16.65) Fee on rental residential developments (including mixed use with rental housing) to offset the demand that new market-rate rental housing creates for low and moderate-income housing in the City. • Public Art fees (PAMC 16.61): Fee on public art for private developments. City of Palo Alto Page 4 • Parkland dedication fees (Quimby Act) (California Government Code Section 66477): Fee or parkland dedication imposed on new residential and non-residential development. • Water and sewer capacity fees (California Government Code Section 66000): Fee on developments adding load to water and sewer systems. AB 1600 requires the City to make specified findings in the event any funds are not expended within five fiscal years of collection and every five years thereafter. While there are several funds containing collected fees that have not been expended in five years, the required statutory carryover findings have already been made for many of those funds and no further findings are required. In fiscal year 2020, there are two categories of fees that require statutory findings. These proposed findings are contained in Attachment B. The Public facilities fund has an unexpended balance of $455,912 that was collected in fiscal year 2015 and prior. The General Government facilities fund has an unexpended balance of $574,118 that was collected in fiscal year 2015 and prior. RESOURCE IMPACT These various fee funds are reviewed annually for any unallocated balances and the nexus of appropriate projects annually as part of the development of the City’s five-year capital improvement plan. For example, during the most recent budget process, the City Council expressed a desire to purchase and develop additional parkland off Birch Street. This acquisition and planned improvement were possible in large part due to applicable restricted funds as outlined in this report. If the Council does not make the findings contained in Attachment B, the development fees described therein might be required to be refunded. This would have f iscal impact of $1,030,030 million. Attachments: • Attachment A: Annual Report on Development Impact Fees FY20 • Attachment B: Impact Fee Reso for Pub Safety and Gen Gov Fees Attachment A City of Palo Alto Annual Report on Development Impact Fees for Period Ending June 30, 2020 Stanford Research Park/ San Antonio/West FUND El Camino Fund Bayshore Fund Purpose and Authority Traffic impact fees imposed on new Traffic impact fees imposed on new for Collection nonresidential development in the nonresidential development in the Stanford Research Park/El Camino San Antonio/West Bayshore Areas Real CS zone to fund improvements to fund capacity improvements at at eight identified intersections.four identified intersections. PAMC Ch. 16.45, PAMC Ch. 16.46 Amount of the Fee City ceased collecting effective FY 2020 City ceased collecting effective FY 2020 Fund Balance July 1, 2020 $3,349,581 $1,308,009 Activity in 2019-20 Revenues Fees Collected 0 0 Interest Earnings 73,752 18,987 Unrealized Gain/Loss Investments 74,438 16,860 ----------------------------------------------------------------------------------------------------------------------- Total Revenues $148,190 $35,847 Operating Transfer to Capital Projects Fund 0 (900,000) ----------------------------------------------------------------------------------------------------------------------- Total Expenditures 0 (900,000) ----------------------------------------------------------------------------------------------------------------------- Ending Balance June 30, 2020 $3,497,771 $443,857 Other Commitments/Appropriations Reserve for Reappropriation - Reserve for Unrealized Gain on Investments (90,015) (22,990) Net Funds Available $3,407,756 $420,867 USE OF FEES:USE OF FEES: No expenditures have been made for this fund in Fiscal Year 2020. In FY 2020, City ceased collecting the Stanford Research / El Camino Real CS Zone fee established in 1989. Two of the projects envisioned for funding have been completed and two are funded and in process. Budget transfer of $900k made to Capital Project Fund in FY 2020 for Traffic Signal and Intelligent Transportation Systems (PL-05030). In FY 2020, City ceased collecting the San Antonio/West Bayshore area fee established in 1986. Most of development anticipated has occured, and while not all the original projects envisioned for funding have been pursued by the City, remaining funds will be programmed for alternative improvements in the area, subject to a nexus analysis/finding and City Council approval. Page 1 of 11 Attachment A City of Palo Alto Annual Report on Development Impact Fees for Period Ending June 30, 2020 Commercial Housing University Avenue Parking FUND Impact Fee Fund In-Lieu Fund Purpose and Authority Fees imposed on commercial and industrial Fees collected from non-residential for Collection development to offset the demand that development within the University Ave. new jobs create for low and moderate-Parking Assessment District in lieu of income housing in the City providing the required number of parking spaces. PAMC Ch.16.65 PAMC Ch 16.57 Amount of the Fee Hotel / Retail / Other Non Residential: $21.26 per sq. ft. Office/R&D: $36.53 per sq. ft. $106,171 per space Fund Balance July 1, 2020 $24,797,386 $6,117,748 Activity in 2019-20 Revenues Fees Collected 114,760 0 Interest Earnings 275,160 134,604 Unrealized Gain/Loss Investments 265,591 132,142 ----------------------------------------------------------------------------------------------------------------------- Total Revenues 655,511 266,746 Expenditures Salaries and Benefit (15,704) Planning (7,500) Liability Insurance (567) Operating transfer to General Benefit Fund (477) ----------------------------------------------------------------------------------------------------------------------- Total Expenditures (24,248) 0 ----------------------------------------------------------------------------------------------------------------------- Ending Balance June 30, 2020 $25,428,649 $6,384,494 Other Commitments/Appropriations Reserve for Notes Receivable include:$1,290,000 for 2811 Alma, and $4,137,254 for 801 Alma, $7,700,000 for Bueva Vista Mobile Home Park. (13,127,254) Reserve for Reappropriations (11,669,330) Reserve for unrealized gain on investments (315,320) (164,285) ----------------------------------------------------------------------------------------------------------------------- Net Funds Available $316,745 $6,220,209 USE OF FEES:USE OF FEES: No expenditures have been made from this fund in Fiscal Year 2020 FUTURE USE OF FEES: $5.5M planned to be used for the New Downtown Parking Garage (PE-15007) in FY 2022 as part of the 2021-2025 5-year Capital Improvement Plan Expenditures in Fiscal Year 2020 are $17k for salaries and benefits and $8k for planning. Reserve for Reappropriaton is for Affordable Housing Loan Agreement: 3705 El Camino Real (Wilton Court). Page 2 of 11 Attachment A City of Palo Alto Annual Report on Development Impact Fees for Period Ending June 30, 2020 Residential & Non-Residential Residential & Non-Residential Community Facilities Community Facilities FUND Parks Community Centers Purpose and Authority Fees imposed on new residential and Fees imposed on new residential and for Collection non-residential development approved non-residential development approved after Jan 28, 2002 for Parks. after Jan 28, 2002 for Community Centers. PAMC Ch. 16.58 PAMC Ch. 16.58 Amount of the Fee Residential: Single family $12,436 per residence (or $18,570 per residence larger than 3,000 sq ft); Multi-family $8,141 per unit (or $4116 per unit smaller than or equal to 900 sq ft) Residential: Single family $3,321 per residence (or $4,887 per residence larger than 3,000 sq ft); Multi-family $2,122 per unit (or $1,071 per unit smaller than or equal to 900 sq ft) Nonresidential: Commercial/Industrial $5,281 per 1,000 sq ft or fraction thereof; Hotel/Motel $2,388 per 1,000 sq ft or fraction thereof. Nonresidential: Commercial/industrial $298 per 1,000 sq ft or fraction thereof; Hotel/Motel $134 per 1,000 sq ft or fraction thereof. Fund Balance July 1, 2020 $5,611,245 $4,283,300 Activity in 2019-20 Revenues Fees Collected 402,902 134,638 Operating Transfer from Capital Projects Fund 85,000 Interest Earnings 81,899 59,074 Unrealized Gain/Loss 91,745 72,642 ----------------------------------------------------------------------------------------------------------------------- Total Revenues $661,547 $266,354 Operating Transfer to Capital Projects Fund (2,720,000)(1,671,860) ----------------------------------------------------------------------------------------------------------------------- Total Expenditures (2,720,000)(1,671,860) ----------------------------------------------------------------------------------------------------------------------- Ending Balance June 30, 2020 $3,552,791 $2,877,794 Reserve for unrealized gain on investments (119,679)(94,044)----------------------------------------------------------------------------------------------------------------------- Net Funds Available $3,433,112 $2,783,750 Page 3 of 11 Attachment A City of Palo Alto Annual Report on Development Impact Fees for Period Ending June 30, 2020 Residential & Non-Residential Residential & Non-Residential Community Facilities Community Facilities FUND Parks Community Centers USE OF FEES:USE OF FEES: Budget transfer of $2.7M was made in FY 2020 to Capital Project Fund for Birch Street acquisition (PE-19003). The $85K operating transfer from Capital Project Fund was due to cancellation of Baylands Athletic Center project (PG-19001) Budget transfer of $1.7M was made in FY 2020 to Capital Improvement Fund for JMZ Renovation (AC-18001) FUTURE USE OF FEES:FUTURE USE OF FEES: Budget transfers planned in FY 2021 to Capital Improvement Fund in the amount of $150k for dog park installation (PG- 18001), $350k for park restroom installation (PG-19000) A total of $1.4M is planned in FY2022- 2025 of the 5-year CIP for Birch Street Improvements (PE-19003) ($400K), Park Restroom Installation (PG-19000) ($700K) and Dog Park Installation and Renovation (PG-18001) ($300K). Budget transfers planned in FY 2021 to Capital Improvement Fund in the amount of $126k for JMZ Renovation (AC-18001), $2.4M for Rinconada Park Improvements (PE-08001) Page 4 of 11 Attachment A City of Palo Alto Annual Report on Development Impact Fees for Period Ending June 30, 2020 Residential & Non-Residential Residential Housing Community Facilities In-Lieu Fund FUND Libraries Purpose and Authority for Collection Fees imposed on new residential and non- residentual development approved after January 28, 2002 for Libraries. Fees collected from ownership residential developments of three or more units (including mixed used with ownership in housing) in-lieu of providing the required below-market rate units(s) to low and moderate income households. PAMC Ch. 16.58 PAMC Chapter 16.65 Amount of the Fee Residential: Single family $1,126 per residence (or $1,676 per residence larger than 3,000 sq ft); Multi-family $674 per unit (or $370 per unit smaller than or equal to 900 sq ft) Single family $78.27 per sq. ft. Single family detached; $52.18 per sq. ft. single family attached. Multi Family $52.18 per sq. ft. condos. Nonresidential: Commercial/industrial $284 per 1,000 sq ft or fraction thereof; Hotel/Motel $119 per 1,000 sq ft or fraction thereof. Fund Balance July 1, 2020 $1,150,846 $24,717,614 Activity in 2019-20 Revenues Fees Collected 46,033 35,027 Webster Wood Property Rental 2,775 Interest Earnings 26,171 219,304 Unrealized Gain/Loss Investments 25,465 198,114 ----------------------------------------------------------------------------------------------------------------------- Total Revenues $97,668 $455,220 Expenditures Salaries and Benefits (15,704) Contract Services (174,708) Liability Insurance (567) Transfer to General Benefits Fund (477) ----------------------------------------------------------------------------------------------------------------------- Total Expenditures 0 (191,456) ----------------------------------------------------------------------------------------------------------------------- Ending Balance June 30, 2020 $1,248,514 $24,981,378 Other Commitments/Appropriations Reserve for Reappropriations (8,474,633) Reserve for Encumbrances (54,860) Reserve for unrealized gain on investments (31,531)(244,501) Reserve for Notes Receivable include $375,000 for 3053 Emerson, $3,504,850 for Tree House Apts, $747,734 for Sheridan Apts., $2,285,026 for 801 Alma, $901,201 for Palo Alto Housing Project, $600,000 for 2811-2825 Alma St., $203,561 for Colorado Park Housing, $149,968 for El Dorado Palace, and $6,800,000 for Buena Vista Mobile Home Park.(15,567,340) ----------------------------------------------------------------------------------------------------------------------- Net Funds Available $1,216,983 $640,044 Page 5 of 11 Attachment A City of Palo Alto Annual Report on Development Impact Fees for Period Ending June 30, 2020 Residential & Non-Residential Residential Housing Community Facilities In-Lieu Fund FUND Libraries USE OF FEES:USE OF FEES: No expenditures have been made from this fund in FY2020 FUTURE USE OF FEES: Budget transfers planned in FY 2021 to Capital Improvement Fund in the amount of $260k for Library Automated Material Handling (LB-21000) $370K planned in FY2022-2025 of the 5- year CIP for LB-21000 Expenditures in Fiscal Year 2020 were $16k for salaries and benefit, $175k for Palo Alto Housing Corp for BMR admin fees and for consultancy fees. Fiscal Year 2020 Reserve for Reappropriaton is for Affordable Housing Loan Agreement: 3705 El Camino Real (Wilton Court) and for Alta Housing (formerly Palo Alto Housing Corporation -PAHC) Affordable Housing Loan amounting to $8.3M and $200K, respectively. Page 6 of 11 Attachment A City of Palo Alto Annual Report on Development Impact Fees for Period Ending June 30, 2020 Charleston-Arastradero Corridor Citywide Transportation Pedestrian and Bicyclist Safety FUND Purpose and Authority Fees collected from new development and Transportation impact fees imposed for Collection re-development within the Charleston-on new development in all parts of the Arastradero Corridor to provide for pedest- City to fund congestion reduction rian and bicyclist safety improvements.projects. PAMC Ch. 16.60 PAMC Ch. 16.59 Amount of the Fee Residential: $1,362 per residential unit; Commercial: $0.40 per sq ft $7886 per net new PM peak hour trip Fund Balance July 1, 2020 $18,670 $2,361,542 Activity in 2019-20 Revenues Fees Collected 0 180,103 Interest Earnings 411 50,946 Unrealized Gain/Loss 426 49,156 ----------------------------------------------------------------------------------------------------------------------- Total Revenues $838 $280,205 Operating Transfer to Capital Projects Fund 0 (383,362) ----------------------------------------------------------------------------------------------------------------------- Total Expenditures 0 (383,362) ----------------------------------------------------------------------------------------------------------------------- Ending Balance June 30, 2020 $19,507 $2,258,385 Other Commitments/Reappropriations Reserve for unrealized gain on investments (502)(60,714) ----------------------------------------------------------------------------------------------------------------------- Net Funds Available $19,005 $2,197,671 USE OF FEES:USE OF FEES: Budget transfer of $383k made to Capital Project Fund in FY 2020 for Traffic Signal and Intelligent Transportation (PL-05030) FUTURE USE OF FEES: Budget transfers in FY 2021 to Capital Improvement Fund in the amount of $400k for Traffic Signal and Intelligent Transportation (PL- 05030) $1.58M planned in FY2022-2025 of the 5-year CIP for PL-05030 No expenditure of funds have been made from this Fund in Fiscal Year 2020 Page 7 of 11 Attachment A City of Palo Alto Annual Report on Development Impact Fees for Period Ending June 30, 2020 New Public Safety Facilities General Government Facilities FUND Purpose and Authority Fees imposed on residential and Fees imposed on residential and non- for Collection non-residential development to fund residential development to fund facilities police and fire facilities (including fire associated with municipal administration. apparatus and vehicles)PAMH Ch. 16.58 PAMC Ch. 16.58 Amount of the Fee Residential: Single family $1,081 per unit; Multi-family $865 per unit Residential: Single family $1,362 per unit; Multi-family $1,089 per unit Nonresidential: Commercial $604 per 1,000 sq ft. or fraction thereof; Industrial $200 per 1,000 sq. ft. or fraction thereof; Office/Institutional $806 per 1,000 sq ft or fraction thereof. Nonresidential: Commercial $760 per 1,000 sq ft. or fraction thereof; Industrial $251 per 1,000 sq. ft. or fraction thereof; Hotel/Motel $1,016 per 1,000 sq ft or fraction thereof. Fund Balance July 1, 2020 $346,826 $436,785 Activity in 2019-20 Revenues Fees Collected 90,589 114,039 Interest Earnings 9,312 11,727 Unrealized Gain/(Loss)9,185 11,567 ----------------------------------------------------------------------------------------------------------------------- Total Revenues $109,086 $137,333 ----------------------------------------------------------------------------------------------------------------------- Total Expenditures 0 0 ----------------------------------------------------------------------------------------------------------------------- Ending Balance June 30, 2020 $455,912 $574,118 Other Commitments/Reappropriations Reserve for unrealized gain on investments (10,561)(13,300) ----------------------------------------------------------------------------------------------------------------------- Net Funds Available $445,351 $560,818 USE OF FEES: No expenditure of funds have been made from this Fund in Fiscal Year 2020. USE OF FEES: No expenditure of funds have been made from this Fund in Fiscal Year 2020. FUTURE USE OF FEES: Budget transfers planned in FY 2021 to Capital Improvement Fund in the amount of $450k for New Public Safety Building (PE-15001) Page 8 of 11 FUTURE USE OF FEES: Budget transfers for approval will be recommended in FY 2021 Mid-Year in the amount of $574K to Capital Improvement Fund for Civic Fire Life Safety( PE-18016) Attachment A City of Palo Alto Annual Report on Development Impact Fees for Period Ending June 30, 2020 Residential Housing Impact Fee Fund FUND Purpose and Authority for Collection Fees imposed on all rental residential developments (including mixed use with rental housing) to offset the demand that the new market-rate rental housing creates for low income and moderate- income housing in the City. PAMC Ch. 16.65 Amount of the Fee Single and Multi-Family: $20.87 per sq. ft. apartment (rentals) Fund Balance July 1, 2020 $0 Activity in 2019-20Revenues Fees Collected 600,040 Interest Earnings 11,589 Unrealized Gain/(Loss)8,174 -------------------------------------------------------- Total Revenues $619,803 Expenditures --------------------------------------------------------Total Expenditures 0 -------------------------------------------------------- Ending Balance June 30, 2020 $619,803 Other Commitments/Reappropriations Reserve for Reappropriations (600,000) Reserve for unrealized gain on investments (8,174) -------------------------------------------------------- Net Funds Available $11,629 USE OF FEES: No expenditure of funds have been made from this Fund in Fiscal Year 2020. Reseve for Reappropriationsis for Affordable Housing Loan Agreement: 3705 El Camino Real (Wilton Court) Page 9 of 11 Attachment A City of Palo Alto Annual Report on Development Impact Fees for Period Ending June 30, 2020 (INFORMATION ONLY) Public Art Fund Parkland Dedication FUND Purpose and Authority for collection Fees imposed on new commercial develoments (including mixed use projects), including new construction, remodels, additions and reconstruction that (i) have a floor area of 10,000 sq. ft. or more, and (ii) have a construction value of $200,000, or more, exclusive of costs for architecture, design, engineering, and required studies; and all new residential projects of five or more units to fund public art for private developments. Fees on parkland dedication imposed on new residential and non-residential development. Govt Code Sec. 66477 (Quimby Act) PAMC Ch. 16.61 Amount of the Fee 1% of first $114.13 million construction valuation and 0.9% of construction valuation for valuation in excess of $114.13 million Single Family: $63,107.94 per unit; Multi- Family: $43,498.13 per unit. This applies only to residential projects that require a subdivision or pacel map. Land dedication is required for subdivisions resulting in more than 50 parcels. Parkland Dedication Fee -Land: Single Family: 531 sq. ft, per unit; Multi-Family: 366 sq. ft. per unit. When parkland dedication applies, park impact fees do not apply. Fund Balance July 1, 2020 $1,323,439 $3,981,565 Activity in 2019-20 Revenues Fees Collected 386,100 733,325 Interest Earnings 36,133 102,020 Unrealized Gain/Loss Investments 34,837 97,180 Operating Transfer from General Fund 169,998 100,000 ----------------------------------------------------------------------------------------------------------------------- Total Revenues $627,068 $1,032,525 Expenditures Salaries and benefits (210,233) Liability Insurance (2,896) Transfer to General Benefit Fund (4,818) ----------------------------------------------------------------------------------------------------------------------- Total Expenditures (217,947)0 ----------------------------------------------------------------------------------------------------------------------- Ending Balance June 30, 2020 $1,732,560 $5,014,090 Other Commitments/Reappropriations Reserve for unrealized gain on investments (40,274)(118,245) ----------------------------------------------------------------------------------------------------------------------- Net Funds Available $1,692,286 $4,895,845 This fund is not subject to AB1600 requirements and is listed only for information purposes. This fund is not subject to AB1600 requirements and is listed only for information purposes. Page 10 of 11 Attachment A City of Palo Alto Annual Report on Development Impact Fees for Period Ending June 30, 2020 (INFORMATION ONLY) FUND Water and Wastewater Collection Purpose and Authority Capacity fees charged to developers that for Collection are adding load to the water and sewer systems effective July 1, 2005. California Government Code Sect 66000 Amount of the Fee Water Capacity Fees: 5/8 in., 3/4 in E- Meter. $3,750, 1 in. E-Meter $6,250, 1 1/2 in. E-Meter $18,850, 2 in. E-Meter $31,250, 4 in. Compound Meter by est. $125/FU (min. 5,000 FU) , 6 in. Compound Meter by est. $125/FU (min. 7,000 FU) Fire Service Capacity Fees: 2 in. $750, 4 in. $8,425, 6 in. $18,250, 8 in. $30,950, 10in. $48,110 Sewer Capacity Charges: 4 in. connection with 5/8 in Water Meter (WM) $5,250, 4 in connection. with 1-in WM $10,500, 4 or 6 in. connection with 1-1/2 in WM $31,668, 6 in. connection with 2 in. WM $52,500, 6 in. and larger connection with 4 in. or larger WM by est. at $210/FU Activity in 2019-20 Capacity Fees Collected Water $466,665 Wastewater Collection 500,610 Total USE OF FEES: The fees are used exclusively for water and sewer system improvements Page 11 of 11 1 0160040_20210107_ay16 *NOT YET APPROVED* Resolution No. ____ Resolution of the Council of the City of Palo Alto Making Findings Regarding Continuing Need for Unexpended Development Fees. R E C I T A L S A. Government Code Section 66001(d) requires the City to make certain findings with respect to fees that remain unexpended in the fifth fiscal year following the first deposit into the account or fund, and every five years thereafter; and B. As authorized under Chapter 16.58 of the Palo Alto Municipal Code, the City has collected a fee known as the “Public Safety Facility Development Fee” for the purpose of funding police and fire facilities (including fire apparatus and vehicles); and C. The sum of $455,912 represents the most recent audited total of fees collected pursuant to the Public Safety Facility Development Fee that remain unexpended, together with accrued interest thereon (“unexpended Public Safety Facility funds”); and D. As authorized under Chapter 16.58 of the Palo Alto Municipal Code, the City has collected a fee known as the “General Government Facility Development Fee” for the purpose of funding facilities associated with municipal administration; and E. The sum of $574,118 represents the most recent audited total of fees collected pursuant to the General Government Facility Development Fee that remain unexpended, together with accrued interest thereon (“the unexpended General Government Facility funds”). The Council of the City of Palo Alto RESOLVES as follows: SECTION 1. The Council makes the following findings: Public Safety Facility funds 1. The unexpended Public Safety Facility funds were collected pursuant to Chapter 16.58 of the Palo Alto Municipal Code, to be used for the purpose of funding police and fire facilities (including fire apparatus and vehicles). 2. The unexpended Public Safety Facility funds in the amount of $455,912 are intended to be used to fund development of the City’s Public Safety Building (CIP PE-15001). 3. The City will transfer $455,912 to fund this project in Fiscal Year 2021. The remaining funds needed to complete the Public Safety Building are expected to come from General Fund and Bond Funding sources and be deposited into the appropriate fund in Fiscal Year(s) 2021. Attachment B *NOT YET APPROVED* 2 0160040_20210107_ay16 4. The need for the improvements for which Public Safety Facility funds were collected was identified in the December 10, 2014 Development Impact Fee Justification Study prepared by David Taussig and Associates. General Government Facility funds 5. The unexpended General Government Facility funds were collected pursuant to Chapter 16.58 of the Palo Alto Municipal Code, to be used solely for the purpose of funding. 6. The City plans to spend the unexpended General Government Facility funds in the amount of $574,118 to fund Civic Center Fire Life Safety and Electrical Upgrades (CIP PE-18016), and portions of the JMZ Renovation (CIP AC-18001) dedicated to administrative uses (collectively, the “Buildings & Facilities Projects”). 7. The City will transfer $574,118 to fund the General Government Facility Projects in Fiscal Year 2021. The remaining funds needed to complete these Buildings & Facilities Projects are expected to come from General Fund and Grant sources and be deposited into the appropriate fund in Fiscal Year(s) 2021. 8. The need for the improvements for which the unexpended General Government Facility funds were collected was identified in the December 10, 2014 Development Impact Fee Justification Study prepared by David Taussig and Associates. // // // // // // // // // // // ATTACHMENT B *NOT YET APPROVED* 3 0160040_20210107_ay16 SECTION 2. The Council finds that this is not a project under the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: APPROVED: ______________________________ ______________________________ City Clerk Mayor APPROVED AS TO FORM: ______________________________ City Manager ________________________________ ______________________________ Assistant City Attorney Director of Administrative Services ______________________________ Director of Planning and Community Environment ATTACHMENT B CITY OF PALO ALTO OFFICE OF THE CITY ATTORNEY January 25, 2021 The Honorable City Council Palo Alto, California Request for Authorization to Amend the Existing Legal Service Agreement With the Law Firm of Colantuono, Highsmith & Whatley, PC (Contract S17167696) to Increase the Contract Amount by an Additional $85,000 Bringing the new Not-to-Exceed Amount to $340,000; and to Increase the Term by one Year Recommendation Staff recommends that the City Council approve and authorize an increase to the legal services agreement with the law firm Colantuono, Highsmith & Whatley, PC for litigation defense in the case of Green v. City of Palo Alto, et al. Santa Clara Co. Sup. Ct. Case No. 16CV300760 (Contract S17167696) by an additional $85,000 for a total not to exceed amount of $340,000 and to extend the term to October 1, 2021. Discussion In October 2016, the City retained Colantuono, Highsmith & Whatley, PC (Contract S17167696) to represent the City in the case of Miriam Green v. City of Palo Alto, et al., Santa Clara Superior Court Case No. 16CV300760. An additional $85,000 is needed to fund briefing and arguments for the second phase of the trial and post-trial work through Superior Court judgment. Resource Impact The estimated additional cost for the City’s contract for legal services with Colantuono, Highsmith & Whatley, PC is $85,000. This contract amendment does not require additional budgetary authority as it can be accommodated within the Office of the City Attorney’s budget appropriation. Environmental Review Amendment of legal services contracts is not a project requiring environmental review under the California Environmental Quality Act (CEQA). Department Head: Molly Stump, City Attorney City of Palo Alto (ID # 11967) City Council Staff Report Report Type: Action Items Meeting Date: 1/25/2021 City of Palo Alto Page 1 Summary Title: Community & Economic Recovery Workplan Title: Provide Feedback and Direction on the Community & Economic Recovery Workplan Which Includes Four Focus Areas: Managing Through the Pandemic, Community Wellness and Wellbeing, Focused Business Sup port, and City Initiatives; and Recommend Returning with Budget Amendments in Various Funds at the Mid -Year Budget Review From: City Manager Lead Department: Administrative Services RECOMMENDATION Direction on the City of Palo Alto’s Community and Economi c Recovery efforts including feedback and direction to either continue to prioritize or to begin work on recommended prioritized projects, community engagement strategies, and governance framework for future work. Should the City Council agree with the recommended prioritization, staff recommends the Council direct staff to bring forward the following initial appropriation actions in the FY 2021 Mid-Year Budget Review: a) The Stanford University Medical Center Fund by: a. Increasing the transfer to the General Capital Fund from Expansion Cost Mitigation by $150,000; and b. Increasing the transfer to the General Capital Fund from Community Health and Safety by $500,000; and c. Decreasing the Ending Fund Balance by $650,000. b) The General Capital Fund by: a. Increasing the transfer from the Stanford University Medical Center by $650,000; and b. Establishing the University Avenue Streetscape Update project in the amount of $150,000 to support work on University Avenue; and c. Increasing the Building Systems Improvements project (PF-01003) by $500,000 to support work on City Facilities related to COVID-19 mitigation. City of Palo Alto Page 2 c) The Fiber Optics Fund by: a. Increasing the expense appropriation by $200,000; and b. Decreasing the rate stabilization reserve by $200,000. EXECUTIVE SUMMARY The City’s work to help the community and local economy recover remains a paramount concern in 2021. Although COVID-19 vaccines are now being distributed at the national, state, and local levels, it remains unclear how long it will take to fully administer them. Accordingl y, the timeline and phases through which the City will reach the “next normal” remains unclear, and the rapidly evolving circumstances (including revised guidance from Santa Clara County through refreshed local health orders) continue to constrain the City of Palo Alto’s resources and ability to provide services to the community. Throughout Fall 2020, the City Council examined strategies for community and economic recovery. The City Council discussed it over multiple weeks, including looking at existing ef forts such as “Uplift Local,” convening a panel of experts to discuss national and local trends, local revenue levels, what the future of work may look like, and providing initial reactions to staff’s organization of the ongoing workplan for Community and Economic Recovery. This report further details the potential workplan across four focus areas : “Manage through the Pandemic,” “Community Wellness and Wellbeing,” “Focused Business Support,” and “City Priority Initiatives,” through individual work items and seeks feedback from the City Council regarding the prioritization and resource provisioning necessary to accomplish these items. Included in this report is a recommendation to appropriate funding for three specific projects: Fiber to the Home, work on University Avenue and retrofits to City Facilities to ensure they can mitigate the spread of COVID-19 to the greatest extent possible. As this work continues, staff anticipates providing updates on the various work items to the full City Council and meeting with ad hoc groups and standing committees, as appropriate, to ensure progress can continue to be made. The chart below provides a summary of the four focus areas and specific priorities within each area, discussed with the City Council in December 2020. Staff has developed these priorities based on the City Council discussions and feedback with the assumption that this is the highest and most critical priority for 2021. In order to accomplish the work, kicking off these key work items and continuing to focus on these areas requires these remain the priority. Should the Council wish to identify additional priorities in 2021, this plan will need to be adjusted based on resource needs and availability. City of Palo Alto Page 3 Ma n a g e t h r o u g h t h e Pa n d e m i c a) Maintaining services while managing daily pandemic needs such as testing, contact tracing, exposures, and other tasks necessitated by COVID-19 is currently the highest need of the City. b) Continue high-volume public communications and enhanced community engagement on managing through the COVID-19 pandemic to the City and the Community c) Ensure the continued safety of employees and visitors in various City facilities and workspaces Co m m u n i t y We l l n e s s & We l l b e i n g d) Support Community Wellness and Wellbeing through development of a series of community events, presentations, and engagement opportunities Support and promote childcare programs Provide school-aged youth programs Promote adult and senior wellness programs Build community emergency resilience Fo c u s e d B u s i n e s s Su p p o rt e) Continue, and further promote, Uplift Local and other retail supportive strategies f) Provide technical support for workplace environmental upgrades to mitigate risks for local businesses g) Advance sustainability and electrification goals (i.e. expand electric vehicle (EV) infrastructure) h) Refine the scope and breadth of the City’s economic support activities Ci t y P r i o r i t y I n i t i a t i v e s i) Further accelerate Fiber to the Home (FTTH) and pursue expanded community engagement j) Support experiences at Downtown and California Ave and redesign these corridors for cars, pedestrians, and bicycle travelers and visitors k) Develop remote work staffing models for delivery of services l) Continue progress on the Housing Workplan, with a focus on renter protection and affordable housing construction In addition to the priorities identified in the recovery plan, other key staff work continues to be underway, which requires continued, significant staff resources including, but not limited to: − financial monitoring, reporting, and budget development through the Long-Range Financial Report, Proposed Operating and Capital Budgets, and financial and investment reporting; − serving the community through the Development Center and permitting requests; − continuing to provide public safety and emergency response 24/7; − managing community facing programing in parks community services and library services; − managing labor relations and contracts; − design and construction of capital projects such as the 101 Highway Bike and Pedestrian Bridge; − upgrading the City’s website and other technology infrastructure; and − maintaining and providing for safe bike and pedestrian corridors and parking programs. Based on the January 19, 2021, Council discussion, staff will incorporate Council input on this framework to prioritize and develop additional scoping of the individual work items shown City of Palo Alto Page 4 above, including goals, objectives, and timelines for each. In addition, the purpose of the meeting is to discuss the resources necessary to accomplish each item that the City Council wishes to further pursue. BACKGROUND Several recent Council conversations on the City’s budget and fiscal forecast, economic status, and COVID-19 pandemic have informed the staff work presented as part of this Council report. The City’s FY 2021 Adopted Budget reflected a reduction in General Fund revenues of $34.6 million which was anticipated due to financial impacts of the COVID-19 pandemic and economic challenges. The Adopted Budget projected a nearly 40-50 percent reduction in major revenue categories such as Transient Occupancy Taxes and Sales Taxes. A balanced budget was adopted with expenses of $197 million, down from $230.8 million in the prior adopted budget, representing a nearly 15 percent reduction in costs and services. This inclu ded over a 50 percent reduction in funding for capital investment while freezing 76.5 full -time equivalent (FTE) staffing resources across the City (65 FTE in the General Fund), dropping authorized staffing levels from 1,035 to 958 FTE. In addition, 26.2 F TE in part-time/hourly positions were also frozen, approximately 25 percent of the authorized workforce. The City has reduced service capacity in all areas, ranging from police, fire, and code enforcement to community services and libraries, public works, transportation, and utilities, as well as the administrative services needed to support these functions. On October 19, 2020, the City Council reviewed and discussed the preliminary Q1 FY 2021 financial status report (City Manager’s Report #11596). This update provided a snapshot in time and projected that revenues citywide were approximately in line with adopted budgeted levels. With the information available at the time and persistent uncertainty as a result of the pandemic, no action was taken. Staff has continued monitoring developments since then. At the time, staff shared a series of upcoming Council actions on the budget, long range financial forecast, and reviewed the preliminary development of a community and economic recovery plan which was expected to be discussed in further detail over upcoming months. Subsequently, on November 9, 2020 (City Manager’s Report #11702), the City Council reviewed community and economic recovery strategies, such as “Uplift Local,” and other business support activities and testing. Council also discussed options designed to help bolste r the local economy, and, in response to the significant impact this pandemic has placed on all communities, including Palo Alto, began discussion of a more comprehensive Community and Economic Recovery framework. Staff presented and Council discussed key elements of Community and Economic Recovery including: a) Assemble and facilitate discussion of major economic forces and trends b) Develop analytical tools to evaluate fiscal scenarios c) Identify potential City actions to support and accelerate (where possib le) local community and economic recovery City of Palo Alto Page 5 PRELIMINARY The November 30, 2020 and December 7, 2020 study sessions provided a continuation of the City Council’s discussions on community and economic recovery, with a look at major economic forces and trends. An expert panel discussed current economic trends, the City’s Sales Tax revenues and impacts, as well as the work from home culture and future. The video from these sessions can be found here: November 30, 2020 and December 7, 2020. This information packed discussion, questions and answer session, and detailed analysis on the City’s major tax revenues and current trends. The presentations also provided valuable insights about emerging trends during this uncertain time to assist in informing and shaping future work as part of this overall strategy. The purpose of the January 19, 2021 Council discussion is to review the feedback provided by the City Council at these study sessions and provide direction to staff on the priority projects, governance, and engagement strategies to focus the organization’s limited resources during the coming year and beyond. The preliminary framework organized an initial set of priori ty projects into four focus areas: These priority areas reflect the work done by other Bay Area institutions, while recognizing the unique characteristics and need in Palo Alto as well as the City’s ability to have positive impacts in the midst of the global forces at hand. The City remains nimble in the current environment where change and uncertainty continue to dominate the evolving circumstances. DISCUSSION In order to continue the work on the community and economic recovery plan, staff is bring ing forward the following items in order to gain Council input and further direction: • A distillation of the City Council’s discussion and feedback from the November 30 and December 7 study sessions • Refined framework of focus areas to identify a comprehensive list of projects, including recommended prioritization of those projects • Options for Community / stakeholder engagement and governance for the community and economic recovery plan City of Palo Alto Page 6 As the Council reviews these next steps and priorities, staff is seekin g discussion and either confirmation of recommended priorities or further direction on the projects identified within the focus areas. Current recommended projects have been prioritized based on both project readiness and short- and long-term impacts. As the Council reviews these projects, resource needs must remain at the forefront and staff recommends approaching each project with a framework to ensure it is measurable and the outcome is defined and achievable. Staffing resources citywide have contracted over 7 percent, and more than 11 percent in the General Fund. This corresponds to an equivalent level of service reductions already implemented throughout the organization and the community. As outlined in the City’s FY 2022 Preliminary General Fund Forecast, the City will continue to face extreme fiscal pressures in the near term, further constraining resources. These pressures emphasize the importance of clearly defining the goals and objectives of each of the work items detailed in this report. One common framework to assist in ensuring we are prioritizing with deliverables and action in mind is the SMART criteria (Specific, Measurable, Actionable, Relevant, and Time-bound). Based on contemporary evolution of such efforts, staff recommends that two more criteria be added to that list: Inclusive and Equitable, which would yield SMARTIE criteria as a template to apply to further discussions. As the City continues its ongoing work on Race and Equity, it is important to ensure that the lenses of inclusiv ity and equity be applied throughout city processes. This framework is expected to be included as part of the discussion at the City Council’s January 30, 2020 annual retreat and priority setting. November and December 2020 Council Discussion and Feedback – Summary As discussed above, the City Council heard from a panel of experts on Monday, November 30, 2020, consisting of Dr. Jerry Nicklesburg, Professor Nicholas Bloom, and the City’s Sales Tax consultant, AvenuInsights. Through the panel discussion, the City Council heard not only about the impacts of efforts to contain COVID-19’s spread on the larger economy, but also about specific impacts to the City of Palo Alto’s sales tax base. Although vaccine distribution is now underway, the uncertainty associated with further efforts to contain COVID-19 parallel to that distribution remains. This is evidenced by the most recent Santa Clara County health guidance provided between the November 30th and December 7th City Council meetings, highlighting the rapidly changing nature of efforts to contain the spread of COVID -19. The City Council offered feedback on the preliminary framework and projects identified in the four elements of the City’s Community and Economic Recovery efforts as well as the governance and community engagement strategies. Overall, the feedback from the City Council offered: − Managing through the pandemic is the top and core priority the four focus areas identified, − Additional items to be included in the different elements, − Consensus that this topic should remain with the City Council, and − Reinforced the importance of engagement with stakeholders throughout the process. City of Palo Alto Page 7 Individual items and actions are discussed below in the workplan prioritization section below. The City’s ongoing work on this topic will continue to return to the City Council for further feedback and direction, and will include engagement with ad hoc bodies as well as standing committees, e.g. Parks and Recreation Commission (PRC), Architectural Review Board (ARB), the Planning and Transportation Commission (PTC), the Finance Committee (FC), and Policy and Services (P&S) and Utility Advisory Commission (UAC). Recommended Community and Economic Recovery Plan Focus Areas and Priority Tasks Through the four focus areas, staff has recommended several work items to focus resources on pursuing concurrently. For each focus area, the work items are organized to identify recommended priorities and briefly described in scope, anticipated resources necessary to bring them to completion, timeline, and the relative priority. These are followed by additional ideas and work items discussed or included in the preliminary review with the City Council, however, at this time they will be considered for further action at a later date or emphasis provided in the normal course of current business. Given the unprecedented resource constraints the City is facing, it will be necessary to focus resources to ensure measurable identified outcomes are attained and some of the proposed items that surfaced dur ing the conversation with the City Council may not be able to be pursued immediately. Manage through the Pandemic As the focus area that the City Council voiced the strongest and most significant support and key area for 2021 priorities, staff has recommended most of all work items in this element continue to be prioritized. The workplan for this focus area includes the following items: a) Maintaining services while managing daily pandemic needs such as testing, contact tracing, exposures, and other tasks necessitated by COVID-19 is currently the highest need of the City This work requires close communication and coordination among the City Manager’s Office, the Office of Emergency Services, Human Resources, and the entirety of the organization. The volume of work required to maintain services and ensure employee and community safety by remaining in alignment with rapidly shifting health orders cannot be overstated. Even though vaccines are now being distributed throughout the country, state, and county, it remains unclear when they will be widely available and administered. As such, the highest priority of the City, as an organization and community, remains the provision and recalibration of services in the face of COVID-19. The City will continue coordination, to the extent practicable and possible, with other levels of government and elected officials. b) Continue high-volume public communications and enhanced community engagement on managing through the COVID-19 pandemic to the City and the Community This work has required a fully staffed communications team in the City Manager’s Office and the repurposing of staff resources (on average equivalent to approximately one position) from the Library and other departments in order to support the communication and community engagement needed to inform, engage and support the community through these difficult times. This volume of communication has been especially important City of Palo Alto Page 8 given the rapidly changing circumstances that the community, businesses and community partners have encountered. Guidance from the County evolves constantly, and quickly, and the frequency of the City’s communications has enabled it to convey that revised guidance to the community in a consistent, clear, and timely manner. Some focus areas include generating electronic newsletters, additional blogs on key issues and events, new webpages and websites, flyers, signage and printed materials, newspaper ads, news alerts and news releases, FAQs, and other timely communication to the City Council, community, businesses, and community partners. Other efforts include staffing the Community Support Call Center with redeployed resources. c) Ensure the continued safety of employees and visitors in various City facilities and workspaces The City will continue to examine its options for techniques, interventions, and retrofitting of equipment to mitigate risk to employees and visitors. It is worth noting that, at the moment, City facilities such as Council Chambers, libraries, and other public-facing operations remain closed in compliance with the latest County guidance. The City is actively managing HVAC systems in facilities serving essential functions to comply with CDC and other guidance and is examining retrofitting facilities to provide ongoing improvements in indoor air quality. Staff will pursue any investments necessary during this time to ensure the City is adapting to the evolving County guidance and, once reopening is authorized, facilities are aligned with community needs and safety considerations. In ord er to provide initial resources for this project and reflect its high prioritization, this CMR recommends appropriating funding of ($500,000) in the Capital Fund from the Stanford University Medical Center (SUMC) Community Health and Wellness Fund to estab lish a project for City facility environmental upgrades. Community Wellness and Wellbeing d) Support Community Wellness and Wellbeing through development of a series of community events, presentations, and engagement opportunities This work item would direct staff to develop a series to discuss many of the adapted services available throughout the community providing forums for community engagement and presentations on topics related to health, wellness, and resiliency. This could include presentations by staff, guest speakers, or a panel of experts. Building on past practices of highlighting non-profits throughout the community at a Council meeting and the Library department speaker series, it is expected that this series would provide a reliable frequency of events that enriches the wellness and resilience of the community and highlights the services and its providers that they may avail themselves of. Specific work items staff will prioritize and include in this series include: City of Palo Alto Page 9 o Support and promote childcare programs Staff and the Palo Alto Advisory Committee on Early Care and Education Committee , which is an advisory committee to the City, on issues related to childcare and early learning, have been meeting bi-weekly with local childcare provider since the pandemic began. These meetings have given local providers a much-needed opportunity to get crucial information on County and State guidelines, share their operational struggles and successes, seek advice from other providers, and form a sense of community during these challenging times. Details discussed will then be shared with the community through the City’s communications channels. This work will continue through the short-term as the situation continues to evolve. o Provide school-aged youth programs Both the Community Services and Library Departments continue to provide programming and leadership growth opportunities for school -aged youth and teens. While the format of these program offerings has shifted to a virtual model, the range of programs continues to represent academic, creative, social and athletic interests of Palo Alto youth. Staff continues to develop innovative programs for youth, such as a mindfulness program and opportunities for safe outdoor activities. o Promote adult and senior wellness programs Similar to youth programs, the City continues to provide programming for adults. The Library will continue to develop and provide community read events (Palo Alto Reads, Book to Action, and Silicon Valley Reads) and ESL programming for English language learners. These types of events allow the community to virtually meet, connect together, and discuss important topics as well as learn and interact with each other. Staff will continue to explore ways to promote the City’s programming/services to adults, looking closely at opportunities of forming collaborations/outreach with other local groups. o Build community emergency resilience The Office of Emergency Services (OES) continues to coordinate with other agencies and City departments during this ongoing public health emergency. At the same time, the City is preparing for a wide range of other possible threats and hazards; more information on those efforts can be found at www.cityofpaloalto.org/thira. Additionally, the City’s Emergency Services Volunteer (ESV) program continues to grow, providing training to residents, businesses, and other community members. See www.cityofpaloalto.org/emergencyvolunteers for more information on these efforts. Finally, the City is evaluating new technologies to address our evolving budget and personnel constraints, to increase efficiency of identification of, response to, and recovery from various critical incident scenarios. Part of this focus area includes developing a community engagement opportunity for the community to learn and gain tools to be ready for future emergencies and build resiliency, specifically focused on the first few days of an emergency. City of Palo Alto Page 10 Focused Business Support e) Continue, and further promote, Uplift Local and other retail supportive strategies The City will continue to pursue opportunities to promote local businesses through the “Uplift Local” initiative and facilitate communication among key stakeholders to ensure that concerns can be addressed. This may include things like changes to physical infrastructure (i.e. repurposing University and California Avenues) or encouraging support of local businesses. Actions already attributed to this program include fast-tracked permitting processes, opening of car-free streets in both University and California Avenue business cores, and roundtable meetings with the businesses in these areas to have a continuous dialogue on needs, challenges, and adaptations in alignment with changing health order regulations. These actions include permitted outdoor business activities such as restaurants, retail shops, salons, and fitness and a parklet program. Frequent communication, education and support regarding health order requirements and mandates of local businesses. Staff established a dedicated website to market and promote local businesses to the community and visitors, developed holiday related campaigns to connect the community to business offerings, and has hosted ongoing monthly check-ins with the community to raise concerns, share input and gain updates on this program and other related City initiatives. f) Provide technical support for workplace environmental upgrades to mitigate risks for local businesses The Utilities Department is currently exploring options for partnering with a contractor that can provide an evaluative service to audit workplace safety of local businesses. This would include examining airflow, air filtration, and other mit igation options for businesses to ensure that they are able to operate while minimizing risk to employees, customers, and visitors. g) Advance sustainability and electrification goals (i.e. expand electric vehicle (EV) infrastructure) Through the Sustainability Climate Action Plan (S/CAP) conversations with City Council (currently scheduled for a study session in February/March and action later in the year) the City will further refine its goals and strategies to encourage widespread adoption of electric vehicles, including the necessary charger infrastructure to meet the City’s goals. Work to install 27 additional electric vehicle chargers at the Bryant, Cowper, and City Hall Garages has just been completed, and the new California Avenue Garage includes 33 chargers – these installations are part of a goal to install more than 600 ports and chargers throughout the City within three years. The City is actively working to identify and pursue potential grant funding from the state of California for additional chargers – most recently, $290,000 in CALeVIP (California Electric Vehicle Infrastructure Project) grant funding was approved to support installation of Level 3 DC fast chargers in three City garage locations that will support charging by residents living in multifamily residential units. City of Palo Alto Page 11 h) Further refine the scope of the City’s economic support activities Throughout the conversations in the fall of 2020, the City Council expressed interest in revisiting the economic support function of the City of Palo Alto. As the City Council provides greater direction on what this function could entail staff will be able to respond with options for addressing those concerns. A potential first step in this process could be conducting an economic scan of the City to assess t he current economic landscape of the City and options to expedite the economic recovery while also addressing community needs. Accomplishing that task will require additional funding for consulting services. City Priority Initiatives i) Further accelerate Fiber to the Home (FTTH) and pursue expanded community engagement The COVID-19 Pandemic has emphasized the need for a comprehensive Fiber to the Home (FTTH) initiative. Already, staff has accelerated the FTTH business case and fiber expansion plan through a contract amendment with Magellan Advisors (City Manager's Report #11580). The amendment includes development of a business case and high‐level design fo r FTTH, a local broadband market assessment, exploration of public private partnership business models, and community surveys. Preliminary findings and recommendations are scheduled to be completed by Q2 2021. Should Council confirm authorizing this project and the appropriation of $200,000 in additional funding, staff will be developing a new customer engagement platform for community outreach and enhanced communications for FTTH initiative. In addition to providing project updates, the platform will ena ble community stakeholders and members to provide input on key topics under consideration and enable the City to gauge public sentiment for decision making. Communications resources will be needed to further this work; requiring use of authorized budgeted resources including personnel and contracts. In addition, public-private partnership models and partners and/or service providers that the City could engage with to build-out a citywide FTTH. The City is also considering offering a cost-share bundle package of services to residential neighborhoods which includes FTTH, electric undergrounding, and electrification. Project management resources are being explored and additional resources may be needed to ensure successful execution of this major City effort and would be brought back during one of the City’s budget actions. j) Support experiences at Downtown and California Ave and redesign these corridors for cars, pedestrians, and bicycle travelers and visitors The City continues to look at options for supporting the two retail cores on University and California avenue through strategies such as the installation of bollards and other means for car-free streets. Initial work involves examining how the City can redefine and narrow vehicular lanes and provide flexible opening and closing of streets on a trial basis in the short term. Additionally, with Council’s direction to prioritize this, staff would begin a full redesign of the University Avenue streetscape to increase vibrancy by expanding pedestrian and outdoor spaces available for use by visitors and businesses while allowing for flexible opening and closing of reduced vehicular lanes. In order to continue work on this project City of Palo Alto Page 12 and reflect its high prioritization, this CMR recommends appropriating funding of $150,000 in the Capital Fund from the Stanford University Medical Center (SUMC) Expansion Cost Mitigation Fund to establish/augment a project and begin design of options for parklets and other reconfigurable spaces in the retail cores to facilitate car-free streets. k) Develop remote work staffing models for delivery of services The City continues to work on its re-occupancy plans and will maintain alignment of those plan with evolving direction from the County. At the moment, this includes planning through three phases: the current Shelter-In-Place (SIP), the medium-term (including phased reopening), and the longer-term “next normal.” Although the natural inclination might be to return to the pre-pandemic status quo, staff is taking this opportunity to thoughtfully consider what alternatives could look like. This work includes prioritizing the reopening of activities and facilities to align with community expectations and safety needs. Departments will work on individual re-occupancy plans coordinated through an oversight committee consisting of representatives from the City Manager’s Office, Human Resources, Administrative Services, and Public Works. Through this work, the City will identify the sequencing of reopening and re-occupancy and return to the City Council to provide updates as those plans solidify. l) Continue progress on the Housing Workplan, with a focus on renter protection and affordable housing construction Progress continues on a number of housing initiatives and staff plans to prioritize thi s new work that is about to begin. The Planning and Transportation Commission is scheduled to offer comments on three draft alternative plan scenarios for the North Venture Coordinated Area Plan (NVCAP) that will be presented to the City Council in the fir st quarter of 2021. Based on Council direction, environmental and more detailed land use analysis will be prepared. Additionally, work has begun to assemble of team of community stakeholders and consultants to assist staff with the preparation of a new 202 3 – 2030 Housing Element for the City’s Comprehensive Plan. This housing cycle will require the City to plan for significantly more housing than in previous housing cycles to meet statewide housing production objectives. Following up on Council direction, staff will be meeting with local housing advocates and scheduling meetings with the Planning and Transportation Commission to explore the possibility of additional amendments that would facilitate more accessory dwelling unit production in Palo Alto. Work is also expected to begin during the first quarter of 2021 to re-evaluate the housing development impact fee imposed on commercial development. With the assistance of a consultant, the Architectural Review Board and Planning and Transportation Commission, staff work continues to update subjective development standards into clear objective standards. This effort will enable the City to continue to advance high quality urban design principles on development applications that may be subject to streamlined application review processes. City of Palo Alto Page 13 Other work items for consideration for inclusion in the Community and Economic Recovery Plan The staff and Council identified other areas of interest for consideration as part of this focused Community and Economic Recovery workplan. Many of these items have been transmitted to staff to work to address through the normal course of business, however, overall , it is expected that these areas will be addressed later. As discussed above, given limited resources, a prioritization of efforts is necessary to ensure we can accomplish the goals outlined. Other areas of interest include: − Completing the Caltrain Grade Separation community planning process; − studying the generation of sales and use taxes and refining estimates for new “base” level of tax revenues which staff expects to continue to review as part of its financial work; − pursuing feedback on City Services through Net Promoter Score (NPS) or a similar mechanism; − expanding the City’s partnership with the Chamber of Commerce; − examining options for Palo Alto scrip or a similar merchant gift card; − exploring the creation of an ombudsperson role within the City organization to help businesses (specifically retail) navigate regulations; − expansion of bicycling and pedestrian friendly streets citywide; − support for the arts which staff expects to highlight as part of work item d, the series of events for community wellness and wellbeing; − providing resources for community events through grants; − modifying community programming through car-based activities (i.e. drive-in) which staff expects to work on as part of work item d, the series of events for community wellness and wellbeing; − increasing mental health support for the community which staff expects to highlight as part of work item d, the series of events for community wellness and wellbeing; and − repurposing of existing spaces, such as parking garages, for fitness and dispersing community and commercial activities which staff expects to continue through its work on “Uplift Local” and other retail and business support adaptions these concepts of the repurposing of spaces and adjusting with the changing health orders will continue. City of Palo Alto Page 14 Governance Given the breadth and scope of this work and its critical role in shaping Palo Alto over the coming months, Council directed staff to return to the full Council with updates and additional direction as needed as work on these elements continue. As resource needs solidify, necessary appropriation actions will also be brought forward for City Council approval to ensure that progress towards completing the tasks described above can be achieved. Updates on various work items will be provided as often as practicable and feasible and may be through a variety of channels such as verbal comments during the City Manager’s Updates, information memoranda to City Council, or study sessions and action items at City Council when necessary. In addition to returning to the City Council as a committee of the whole for updates, engagement with various ad hoc groups and standing committees (e.g. Parks and Recreation Commission (PRC), Architectural Review Board (ARB), Planning and Transportation Commission (PTC), Finance Committee (FC), and the Policy and Services (P&S) Committee) is also anticipated. Staff will also work to keep the community informed of progress on these work items, as described in greater detail in the Stakeholder Engagement section of this report. STAKEHOLDER ENGAGEMENT In various discussions the Council identified several areas for specific stakeholder engagement and enhanced community engagement for specific work items outlined above. A desire to cultivate community leaders including emergency volunteers, and neighborhood leaders to support these recovery efforts is a key priority across all elements of the Community and Economic Recovery Strategy. There is also a separate but related County ambassador program underway and staff will continue to connect into this effort as appropriate to support community engagement during the pandemic. Currently, each prioritized work item is expected to include engagement. For example, Community Wellness and Wellbeing work items will include connecting with our local non-profits and arts organizations, building on community resiliency and other management through the pandemic would engage emergency volunteers, and more. Staff is planning roundtable forums for specific interest areas to allow for two -way communication and feedback on initiatives. Similar to the Race and Equity work, a common hub of information through a central website, regular updates to the City Council and the community, and online and virtual engagement platforms will be used to engage and inform. In addition, staff is exploring a community leadership council concept or other venue to engage and tap into the City’s existing neighborhood associations and other engaged groups like Cool Block neighborhood blocks, emergency services volunteers. Not only would this provide an opportunity to maximize already established groups and networks and further community wellness and wellbeing. A broader group such as this is both resource intensive and would require increased responsibility on our community networks but may provide a singular place for engaged citizens and community leaders to tap into for inf ormation-sharing and an opportunity for those engaged to share with their networks as a way to connect together during this challenging time. City of Palo Alto Page 15 RESOURCE IMPACT The City continues to face unprecedent financial constraints. The prudent measures to contain costs in the adoption of the FY 2021 Budget have resulted in significant impacts on service delivery as well as position eliminations, reductions, and freezes. Additionally, the evolving nature of the pandemic has resulted in persistent uncertainty for econ omic and revenue forecasting, and the City will likely face continued adversity and resource scarcity over the coming years. As a result of these circumstances, it is imperative that the City prioritize its ongoing work to ensure that the needs of the community remain met to the extent practicable and possible. This Community and Economic recovery workplan will serve as the template for the periodization of services across the different elements for the foreseeable future, from managing through the pandemic in the short- and medium-terms to focusing the City’s efforts on priority initiatives even through the long-term. This report includes recommendations to direct staff to bring forward appropriate funding for specific projects in three funds during the FY 2021 Mid-Year Budget Review; the Fiber Optics Fund for Fiber to the Home and in the General Capital Fund for work on University Avenue ($150,000) and City Facilities ($500,000) through transfers from the Stanford University Medical Center (SUMC) fund. A transfer from the Stanford University Center Medical Fund of $150,000 would come from the expansion cost mitigation funding to establish the University Avenue Streetscape Update capital project to cover the costs of work on University Avenue while $500,000 of funding from the Community Health and Safety funding would increase the Building Systems Improvements capital project (PF-01003) for COVID-19 mitigation at City Facilities. These actions would leave approximately $2 million in each of these allocation s in the SUMC fund. To the extent additional resource are identified and need to be appropriated for other work items, they will be brought forward to City Council for approval. Through the remainder of FY 2021 and the development of the FY 2022 Budget, staff will continue to look for opportunities to reduce costs to align with available resources while minimizing impacts to the community. However, at this stage of resource scarcity it must be noted that every further reduction will constrain service delivery and limit options for meeting community expectations. ENVIRONMENTAL IMPACT The action recommended is not a project for the purposes of the California Environmental Quality Act. City of Palo Alto (ID # 11831) City Council Staff Report Report Type: Action Items Meeting Date: 1/25/2021 City of Palo Alto Page 1 Summary Title: 922 College Avenue: Prelim Parcel Map with Exceptions Title: PUBLIC HEARING / QUASI -JUDICIAL. 922 College Avenue [20PLN - 00104]: Request for Review of a Preliminary Parcel Map with Exceptions to Adjust Lot Lines for Two Substandard Parcels to Facilitate the Redevelopment and Sale of Two Homes. Environmental Assessment: Exempt. Zoning District: R-1 (Single Family Residential) From: City Manager Lead Department: Planning and Development Services Recommendation Staff recommends that the City Council adopts a Record of Land Use Action (RULA) approving the requests for a Preliminary Parcel Map with Exceptions based on findings and subject to the conditions of approval, and as recommended by the PTC. Executive Summary The applicant/owner proposes to adjust lot lines on an R-1 zoned property with two underlying lots to better align the lots with existing residences and assessor’s parcels. The applicant’s (Stanford University) stated intention is to redevelop and sell the properties to separate owners. Staff’s research suggests that two underlying lots were established in 1912 in a long, rectangular configuration that would not reasonably allow development of two residences. In the 1950’s, the City approved the reconfiguration of the property into two squarish lots to facilitate the development of a second residence on the property. Unfortunately, the owner at that time never recorded the subdivision with the County of Santa Clara, though separate Assessor’s Parcel Numbers (APNs) were assigned and the second residence at 2160 Cornell Street was constructed in 1954. A parcel map with exception is required because the lot line adjustment would result in an equal number of substandard lots, as City of Palo Alto Page 2 described further in this report. The lot at 922 College Avenue would be 4,874 square feet. The lot at 2160 Cornell Street would be 3,750 square feet. Exceptions may only be granted by the City Council after recommendation by the Planning and Transportation Commission. The Planning and Transportation Commission considered this project on November 18, 2020. By a vote of 5-0-2 (Summa recused, Riggs absent), the PTC recommended approval of the Parcel Map with Exceptions.1 Background The proposed project is a Preliminary Parcel Map with Exceptions to redistribute lot area from two existing substandard underlying lots, to two substandard lots which align with the existing Assessor’s Parcel Number (APN) boundaries assigned to 922 College Avenue and 2160 Cornell Street. The College Terrace neighborhood has several substandard lots. Many of the larger lots are comprised of two or more underlying lots as narrow as 25 feet wide from the original subdivision of property in 1891.2 In this case, the underlying lots were created by a combination of the 1891 map and separate conveyance of the lots evidenced by a 1912 grant deed. One of the underlying lots is 25 feet wide by 115 feet deep, while the other is 50 feet wide by 115 feet deep. In 1952 the City approved an application to subdivide the property and construct the house now addressed 2160 Cornell Street. However, that map was never recorded with the County, so the subdivision was never made effective. Two residences currently exist on the property and two APNs were assigned for tax purposes. Discussion The parcel map application includes a request for an Exception following the requirements of PAMC 21.32. It should be noted PAMC 21.04.030(17) allows for a preliminary parcel map to merge four or fewer substandard R-1 lots into a parcel in greater compliance with the requirements of lot width, depth or area set forth in Title 18 and not be considered an Exception. This project does not qualify because it is not merging lots; there are currently two lots and there will remain two lots if this project is approved. This property would be subdivided as follows: •Parcel 1: 922 College Avenue would be 65 feet wide (along Cornell St. frontage) and 74.99 feet deep (along the College Ave. frontage), total area 4,874 square feet. 1 Staff Report Link: https://bit.ly/922CollegePTC 2 Because this 1891 “subdivision” pre-dates the Subdivision Map Act, which was first enacted in 1893, the “underlying” lots in this area cannot be recognized unless they were also separately conveyed. City of Palo Alto Page 3 • Parcel 2: 2160 Cornell Street would be 50 feet wide, 74.99 feet deep, and an area of 3,750 square feet. This would align with the current APNs as shown in our City GIS here: The new lots will be more in compliance in the sense that the lot lines will not go through the existing buildings, and the lots will each meet the R-1 development density of one primary unit per lot. The proposed lot sizes for this project would be comparable to others lots on the block, which vary from 2,875 square feet to 6,813 square feet. Other lots in this neighborhoo d also have multiple units despite being zoned R-1, including what appears to be a cottage cluster of four houses on two lots at the other end of the block, at College Avenue and Princeton Street. Consistency with Application Findings The necessary findings for approval of the Preliminary Parcel Map are contained in State law and incorporated into Title 21 of the Municipal Code. Under the Subdivision Map Act, the City Council must make a series of “reverse” findings to justify approval. If the findings can not be made, the subdivision must be approved. In particular, under government code Section 66474, the City shall deny a Preliminary Parcel Map if any of the findings are made. Otherwise, the City must approve the subdivision. In addition, to approve a map with Exceptions, the City Council must make a series of findings. The findings for the proposed map and the conditions of approval are included in the draft Record of Land Use Action, Attachment C. City of Palo Alto Page 4 Policy Implications This project has no major policy implications as the project will bring two substandard lots into greater compliance with the Zoning Code. Staff performed a detailed review of the proposed project’s consistency with applicable zoning standards, reflected in a summary table (Attachment B). This site has a Comprehensive Plan land use designation of Single-Family Residential and is not subject to any Area Plans or Guideline documents. The project does not propose to change the property’s use as two single-family residences. Stakeholder Engagement The PAMC requires notice of this public hearing be published in a local newspaper of general circulation and mailed to owners and occupants of property within 600 feet of the subject property at least ten days in advance of a public hearing. Notice of a public hearing for this project was published in the Daily Post on January 15, 2021, which is 10 days in advance of the meeting. Postcard mailing occurred on January 11, 2021, which is 14 days in advance of the meeting. Attachment D includes public comments. Environmental Review The subject project has been assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), the State CEQA Guidelines, and the environmental regulations of the City. Specifically, the project is categorically exempt per CEQA Guideline Section 15315 (Minor Land Subdivisions). Additionally, the City’s historic preservation consultant evaluated the property at 922 College Avenue in 2019. The City’s consultant found the home to be ineligible for listing on the California Register of Historical Resources. Should the property owner wish to construct new homes on the new substandard lots, they would be required to obtain a ministerial building permit and comply with the development standards for substandard lots in PAMC 18.12.040(c). Attachments: Attachment A: Location Map Attachment B: Zoning Comparison Table Attachment C: Draft Record of Land Use Action Attachment D: Neighbor Comments Attachment E: Project Plans Attachment F: College Terrace Original Tract Map 03-033 137-04-070 137-04-040 137-04-039 137-04-018 137-04-088 137-04-011 137-04-012 137-04-013 137-04-014 137-04-015 137-03-093 137-03-059 137-03-058 137-03-031 137-03-032 137-04-016 137-04-017 137-03-024 137-03-028 137-03-030 137-03-029 137-03-025 137-03-027 137-03-026 137-03-006 137-03-005 137-03-004 137-03-001 137-03-002 137-03-092 137-02-001 137-02-081 137-02-082 137-02-083 137-02-040 137-02-041 137-02-042 137-02-002 137-02-003 137-02-004 137-02-039 1 137-04-087 137-04-074 137 13 137-04-021 137-04-020 137-04-019 137-02-077 137-02-078 137-02-079 137-02-080 137-02-043 137-02-045 137-02-044 137-02-072 137-04-093 137-04-092 COLLEGE AVENUE PRINCET O N STR EE T CORNELL ST COLLEGE AVENUE STREET 72 1062 0 1021 1021 941 941 961 961 981 981 2251 2251 2250 2250 106 1045 2250 2272 2274 90 1052 1032 2170 2170 1010 1010 921 921 990 990 2161 2161 980 980 940 940 942 942 960 960 2160 2160 922 922 2150 2150 2151 2151 2141 2141 2105 2115 2115 2140 2140 2124 2124 2110 21102100 884 884 870 870 2225 2225 2225A 889 889 885 885 851 851 2255 2255 2329 2311 2311 2300 2298 2298 2290 2290 2270 2270 2271 2271 2291 2291 2293 2293 901 901 2226 811 817 819 827 827 790 0 850 850 826 826 2158 2158 2155 2155 2101 2101 2081 2081 2091 2091 2132 2132 2134 2134 2136 2136 2138 2138- 2144 2140 2142 2144 2133 2133 2127 2127 2121 2121 2115 2115 2105 2105 2208 2208 2228 2171 2171 This map is a product of the City of Palo Alto GIS This document is a graphic representation only of best available sources. Legend Assessment Parcel Palo Alto Assessment Parcel Palo Alto Assessment Parcel Outside Palo Alto abc Road Centerline Small Text (TC) Curb Face (RF) Pavement Edge (RF) abc Address Label (AP) Highlighted Features Current Features 0' 58' Attachment AVicinity Map922 College Ave and 1026 Cornell St CITY O F PALO A L T O I N C O R P O R A T E D C ALI FO R N I A P a l o A l t oT h e C i t y o f A P R I L 1 6 1 8 9 4 The City of Palo Alto assumes no responsibility for any errors. ©1989 to 2016 City of Palo Alto efoley2, 2020-12-28 15:55:01 Assessor Parcels (\\cc-maps\Encompass\Admin\Meta\View.mdb) ATTACHMENT B ZONING COMPARISON TABLE 922 College Avenue, 20PLN-00104 Table 1: COMPARISON WITH CHAPTER 18.12 (R-1 DISTRICT) Regulation Required Existing Proposed 922 College Proposed 2160 Cornell St. Minimum/Maximu m Site Area, Width and Depth 6,000-9,999 sf area, 60 foot width, 100 foot depth 2 underlying lots, 2,875 sf, 25 feet wide, 115 feet deep and, 5,750 sf, 50 feet wide and 115 feet deep. Total 8,624 sf area, 74.99 feet wide, 115 feet deep Non-conforming: 4,874 sf, 65 feet wide, 74.99 feet deep Non-conforming: 3,750 sf, 50 feet wide, 74.99 feet deep Minimum/Contextu al Front Yard (2) 20 feet or the average setback (18.12.040(e)) Approximately 25’ on College Ave. for front unit Approximately 28’ from Cornell Street Approximately 20’ from Cornell Street Rear Yard 20 feet Approximately 6’ for rear unit Non-conforming: Approximately 17’ Approximately 28’ Interior Side Yard 6 feet Approximately 12’-20’ 11.5’ Non-conforming: 5.6’ Street Side Yard 16 feet Approximately 20’-30’ on Cornell St. Approximately 16’ on College Ave. N/A Max. Building Height 30 feet or 33 feet for a roof pitch of 12;12 or greater (3) 17 feet for substandard lots One story, approximately 12’-14’ Substandard Lot: One story, approximately 14’ Substandard Lot: One story, approximately 12’ Side Yard Daylight Plane 10 feet at interior side lot line then 45 degree angle (6) conforms conforms conforms Rear Yard Daylight Plane 16 feet at rear setback line then 60 degree angle (6) conforms conforms conforms Max. Site Coverage 35% with an additional 5% for covered patio/ overhangs (3,018 sf) Existing: 22%, 1,905 sf Allowed: 35%, 3,018 sf Existing: 17.8%, 868 sf Allowed: 35%, 1,705.9 sf Existing: 27.6%, 1,037 sf Allowed: 35%, 1,312.5 sf Max. Total Floor Area Ratio 45% for first 5,000 sf lot size and 30% for lot size in excess of 5,000 sf (3,337.2 sf) Existing: 22%, 1,905 sf Allowed: 38.7% 3,337.2 sf Existing: 17.8%, 868 sf Allowed: 45%, 2,193.3 sf Existing: 27.6%, 1,037 sf Allowed: 45%, 1,687.5 sf Max. House Size 6,000 sf 6,000 sf 6,000 sf 6,000 sf Residential Density One unit, except as provided in 18.12.070 Two units, existing non-complying One unit One unit (3) R-1 Floodzone Heights: Provided, in a special flood hazard area as defined in Chapter 16.52, the maximum heights are increased by one-half of the increase in elevation required to reach base flood elevation, up to a maximum building height of 33 feet. (6) R-1 Floodzone Daylight Plane: Provided, if the site is in a special flood hazard area and is entitled to an increase in the maximum height, the heights for the daylight planes shall be adjusted by the same amount. Table 2: CONFORMANCE WITH SECTION 18.12.060 and CHAPTER 18.52 (Off-Street Parking) for Single Family Residential Uses Type Required Existing Proposed 922 College Proposed 2160 Cornell Vehicle Parking 2 parking spaces per unit, of which one must be covered 2 spaces, one covered for each unit No change, Legal Non- conforming: 1 covered carport No change, Legal Non-conforming: 1 covered garage 1 ACTION NO. XXXX-XX DRAFT RECORD OF THE COUNCIL OF THE CITY OF PALO ALTO LAND USE ACTION FOR 922 COLLEGE AVENUE: PRELIMINARY PARCEL MAP 20PLN-00104 (STANFORD UNIVERSITY, APPLICANTS) At its meeting on January 25, 2021, the City Council approved the Preliminary Parcel Map for a two-lot subdivision project with exceptions, making the following findings, determinations and declarations: SECTION 1. Background. The City Council of the City of Palo Alto (“City Council”) finds, determines, and declares as follows: A. On June 10, 2020, Eoin Buckley, on behalf of Stanford University, applied for a Preliminary Parcel Map with exceptions for the development of a Two-lot subdivision project (“The Project”). B. The project site is comprised of two narrow substandard lots (APN No. 137- 03-029, 137-03-030) of approximately 8,624 square feet total. The site contains two residential structures and single-family residential land uses are located adjacent to the lots. SECTION 2. Environmental Review. The subject project has been assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), the State CEQA Guidelines, and the environmental regulations of the City. Specifically, the project is categorically exempt per CEQA Guideline Section 15315 (Minor Land Subdivisions). SECTION 3. Preliminary Parcel Map Findings. A legislative body of a city shall deny approval of a Parcel Map, if it makes any of the following findings (California Government Code Section 66474): 1. That the proposed map is not consistent with applicable general and specific plans as specified in Section 65451: The site does not lie within a specific plan area and is consistent with the provisions of the Comprehensive Plan. 2. That the design or improvement of the proposed subdivision is not consistent with applicable general and specific plans: The map is consistent with the following Comprehensive Plan policies: a. Policy L-6.1: Promote high-quality design and site planning that is compatible with surrounding development and public spaces. 2 b. Policy L-6.5: In areas of the City having a historic or consistent design character, encourage the design of new development to maintain and support the existing character. 3. That the site is not physically suitable for the type of development: The site currently contains two single-family houses, in a residential neighborhood. The proposed parcel map does not propose to change this. 4. That the site is not physically suitable for the proposed density of development: The proposal for the site creates two substandard R-1 lots, however the site is currently comprised of two narrow substandard R-1 lots. The proposed project will result in two lots which are more in compliance with the Zoning Code than the existing, which is allowed under PAMC 21.04.030(b)(17). This project does not propose to change the current density of two single-family houses. 5. That the design of the subdivision or the proposed improvements are likely to cause substantial environmental damage or substantially and avoidably injure fish or wildlife or their habitat: The minor subdivision will not cause environmental damage or injure fish, wildlife, or their habitat. The project site has been fully urbanized and developed and is centrally located within the College Terrace area. There is no recognized sensitive wildlife or habita t in the project vicinity. 6. That the design of the subdivision or type of improvements is likely to cause serious public health problems: The creation of two individual parcels will not cause serious public health problems, as it does not substantially affect the existing conditions and overall function of the properties as a site for two single-family residences. 7. That the design of the subdivision or the type of improvements will conflict with easements, acquired by the public at large, for access through or use of, property within the proposed subdivision. In this connection, the governing body may approve a map if it finds that alternate easements, for access or for use, will be provided, and that these will be substantially equivalent to ones previously acquired by the public. This subsection shall apply only to easements of record or to easements established by judgment of a court of competent jurisdiction and no authority is hereby granted to a legislative body to determine that the public at large has acquired easements for access through or use of property within the proposed subdivision. 3 The parcel map does not propose nor require any easements. SECTION 4. Exception Findings 1. There are special circumstances or conditions affecting the property. The division of the property as proposed was approved by the City in 1952, but the record of survey (or parcel map) was not recorded. The property was subsequently developed with the second single-family house as if the division of the property had been properly completed. There are currently two underlying legal lots on the property, which are also substandard, but are asymmetrical and completely unaligned with the existing improvements. The new lots will be more in compliance in the sense that the lot lines will not go through the existing buildings, and the lots will each meet the R-1 development density of one primary unit per lot. 2. The exception is necessary for the preservation and enjoyment of a substantial property right of the petitioner. The property is currently developed and used as two single family homes with distinct addresses. This has been the case since at least 1954. The proposed subdivision will ensure that only one existing home is located on each new parcel. 3. The granting of the exception will not be detrimental to the public welfare or injurious to other property in the territory in which the property is situated. The subdivision of the property will confirm the existing conditions. The proposed lot sizes, while substandard, are in keeping with other lots in the College Terrace neighborhood . 4. The granting of the exception will not violate the requirements, goals, policies, or spirit of the law. Granting this exception is found to be consistent with the Subdivision Map Act, Zoning Code, and Comprehensive Plan. SECTION 6. Parcel Map Approval. The Parcel Map submitted for review and approval by the City Council shall be in substantial conformance with the Preliminary Parcel Map prepared by MacLeod and Associates titled “Preliminary Parcel Map With Exceptions for Subdivision Purposes (2 Lots)”, consisting of one (1) page, uploaded to Accela Citizen Access on January 4, 2021 except as modified to 4 incorporate the conditions of approval in Section 7. A copy of this plan is on file in the Department of Planning and Development Services. SECTION 7. Conditions of Approval. Planning Division 1. PROJECT PLANS. The Parcel Map submitted for review and approval by the Director shall be in substantial conformance with the Preliminary Parcel Map noted in Section 6. 2. PARCEL MAP COVER PAGE. At such time as the Parcel Map is filed, the cover page shall include the name and title of the Director of Planning and Development Services. 3. PARCEL MAP. A Parcel Map, in conformance with the approved Preliminary Parcel Map, all requirements of the Subdivision Ordinance (PAMC Section 21.16), and to the satisfaction of the City Engineer, shall be filed with the Planning Division and the Public Wo rks Engineering Division. The resultant parcel map must be recorded prior to any building permit issuance. 4. INDEMNITY. To the extent permitted by law, the Applicant shall indemnify and hold harmless the City, its City Council, its officers, employees and agents (the “indemnified parties”) from and against any claim, action, or proceeding brought by a third party against the indemnified parties and the applicant to attack, set aside or void, any permit or approval authorized hereby for the Project, includi ng (without limitation) reimbursing the City for its actual attorneys’ fees and costs incurred in defense of the litigation. The City may, in its sole discretion, elect to defend any such action with attorneys of its own choice. Building Division 1. Underlying lot lines shall be removed at time of building permit application. Public Works Engineering Department 2. Applicant shall provide a preliminary title report including copies of all referenced documents. The report shall be dated within 3 months of Parc el Map submittal. 3. The applicant agrees that the City of Palo Alto will employ the services of Siegfried Engineering who will function as the City Surveyor and will review, sign, and stamp the Parcel Map associated with this project. In an effort to employ the services of Siegfried Engineering, and as part of the City’s cost recovery measures, the applicant is required to provide payment to cover the cost of 5 Siegfried Engineering’s review. The map and associated documents will be forwarded to Siegfried Engineering for an initial review to establish the overall review cost. This will be based on the complexity of the project and the information shown on the document. This information will be shared with the applicant who will then provide written acknowledgement of the amount. The applicant may then provide payment for the review. Payment shall be provided prior to beginning the formal review process. Scope and Fee Letter from Siegfried Engineering will be provided separately. Utilities Water Gas Wastewater Department 4. Show each parcel has one electric, water, gas, service, and one wastewater lateral connection connected to City of Palo Alto Utilities. 5. The applicant shall submit a completed water-gas-wastewater service connection application – load sheet for each home to City of Palo Alto Utilities. The applicant must provide all the information requested for utility service demands. The applicant shall provide the new total loads. 6. Please amend the Site Plan or Utility Map to include: the size and location of all underground utilities within the development and the public right of way including electric, water, gas, mains and meters, backflow prevents, fire sprinkler riser, sewer/storm mains, sewer cleanouts, catch basins and any other required utilities. Include topographic features in the sidewalk like vaults, curb & gutter, sidewalk, planting strips, driveway approach, trees, etc. 7. Add to the Site Plan or Deconstruction Plan the following note: UNUSED UTILITIES SERVICES REQUIREMENTS: ALL EXISTING WATER, GAS AND WASTEWATER SERVICES THAT WILL NOT BE REUSED SHALL BE ABANDOED AT THE MAIN PER WGW UTILITIES PROCEDURES. SECTION 8. Term of Approval. 1. Preliminary Parcel Map. All conditions of approval of the Preliminary Parcel Map shall be fulfilled prior to approval of a Parcel Map (PAMC Section 21.16.010[c]). Unless a Parcel Map is filed, and all conditions of approval are fulfilled within a two -year period from the date of Preliminary Parcel Map approval, or such extension as may be granted, the Preliminary Parcel Map shall expire and all proceedings shall terminate. The Director of Planning and Development Services may approve one extension prior to expiration of the Preliminary Parcel Map, consistent with the provisions of PAMC Title 21. PASSED: AYES: 6 NOES: ABSENT: ABSTENTIONS: ATTEST: APPROVED: _________________________ ____________________________ City Clerk Director of Planning and Development Services APPROVED AS TO FORM: ___________________________ Senior Asst. City Attorney PLANS AND DRAWINGS REFERENCED: Those plans prepared by MacLeod Associates titled “Preliminary Parcel Map with Exceptions for Subdivision (2 Lots)”, consisting of one page, dated January 4, 2021. 1 Foley, Emily From:Carolyn Sledge <carsledge@yahoo.com> Sent:Wednesday, December 9, 2020 2:07 PM To:Foley, Emily; CAROLYN SLEDGE Subject:opposition to 922 College avenue strong opposition CAUTION: This email originated from outside of the organization. Be cautious of opening attachments and clicking on links. Hello Emily, Just wanted to let you know I am strong opposed to this variance that would let a builder build 2 houses on this very small lot. Our neighborhood is being destroyed by landlords that do not even live here. All they care about is there profits and not the livability of this neighborhood. Please have some compassion on the people who live through all of this noise, loss of use of sidewalks Mess etc. Please just build one home as the zone requires. Thank you, Carolyn Sledge neighbor who actually live within 100 feet of this property. We need some open space for life to exist.!!!! 1 Foley, Emily From:Foley, Emily Sent:Tuesday, November 10, 2020 2:01 PM To:herb_borock@hotmail.com Cc:French, Amy; Nguyen, Vinhloc; Gerhardt, Jodie Subject:RE: 922 College Avenue [20PLN-00104] Hello Herb, Yes, as you noted this project has already been scheduled and noticed for a Planning and Transportation Commission Hearing. Typically, we cannot cancel a hearing after it has been noticed, but since the item has been removed from the 11/12 Director’s Hearing and there are no other items, the meeting is effectively cancelled as there are no items on the agenda. Please let me know if you have any additional questions about the project. Thanks, Emily Emily Foley | AICP | Associate Planner | Planning & Development Services 250 Hamilton Ave. 5th Floor, Palo Alto CA 94301 Phone: (650) 617 ‐ 3125 Please think of the environment before printing this email – Thank you! Online Parcel Report | Palo Alto Municipal Code Planning Forms & Handouts | Planning Applications Mapped Permit Tracking – Public Access From: French, Amy <Amy.French@CityofPaloAlto.org> Sent: Tuesday, November 10, 2020 10:10 AM To: Nguyen, Vinhloc <Vinhloc.Nguyen@CityofPaloAlto.org>; Gerhardt, Jodie <Jodie.Gerhardt@CityofPaloAlto.org>; Foley, Emily <Emily.Foley@CityofPaloAlto.org> Subject: FW: 922 College Avenue [20PLN‐00104] Amy French| Chief Planning Official 250 Hamilton Avenue | Palo Alto, CA 94301 D: 650.329.2336| E: amy.french@cityofpaloalto.org Please think of the environment before printing this email – Thank you! The City of Palo Alto is doing its part to reduce the spread of COVID-19. We have successfully transitioned most of our employees to a remote work environment. We remain available to The linked image cannot be displayed. The file may have been moved, renamed, or deleted. Verify that the link points to the correct file and location. 2 you via email, phone, and virtual meetings during our normal business hours. From: herb <herb_borock@hotmail.com> Sent: Sunday, November 08, 2020 5:57 PM To: French, Amy <Amy.French@CityofPaloAlto.org> Subject: 922 College Avenue [20PLN‐00104] CAUTION: This email originated from outside of the organization. Be cautious of opening attachments and clicking on links. A public hearing notice in the Daily Post indicated that there will be a Director's Hearing on a Preliminary Parce Map to divide 922 College Avenue into two parcels (File 20PLN‐00104] on November 12, 2020. This proposed lot division requires exceptions and, therefore, is not a subject that can be reviewed at a Director's Hearing. The same subject is now scheduled for a hearing on November 18, 2020 before the Planning and Transportation Commission, which is the appropriate body to make a recommendation to the City Council on an application for a Preliminary Parcel Map with Exceptions. Holding a separate Director's Hearing on the subject would bias the hearing process before the Planning & Transportation Commission. Please cancel the Director's Hearing for 922 College Avenue if you have not already done so. Thank you. Herb Borock 1 Foley, Emily From:Maryjane Marcus <maryjane.marcus@gmail.com> Sent:Monday, November 9, 2020 11:03 PM To:Foley, Emily Subject:Re: 922 college Dear Emily, Thank you. yes, I oppose this change and am also still troubled that Stanford is viewed as single use owners rather than a massive developer, since they own already 30% of my street and over 40 homes in College Terrace. It is not fair for us individuals to have to go up against Stanford ‐ we just can't win. It's not a level playing field. Warmly Mary Jane On Mon, Nov 9, 2020 at 4:25 PM Foley, Emily <Emily.Foley@cityofpaloalto.org> wrote: Hi Mary Jane, You are receiving this email since you previously commented on the subdivision project for 922 College Ave . I wanted to inform you that this item will be heard at the Planning and Transportation Commission meeting on November 18th. The agenda and staff report will be published later this week on this webpage: https://www.cityofpaloalto.org/gov/boards/ptc/default.asp. Please let me know if you have any questions. Thank you, Emily Emily Foley | AICP | Associate Planner | Planning & Development Services 250 Hamilton Ave. 5th Floor, Palo Alto CA 94301 Phone: (650) 617 ‐ 3125 Please think of the environment before printing this email – Thank you! Online Parcel Report | Palo Alto Municipal Code 2 Planning Forms & Handouts | Planning Applications Mapped Permit Tracking – Public Access From: Maryjane Marcus <maryjane.marcus@gmail.com> Sent: Thursday, September 10, 2020 1:25 PM To: Foley, Emily <Emily.Foley@CityofPaloAlto.org> Cc: Lait, Jonathan <Jonathan.Lait@CityofPaloAlto.org> Subject: Re: 922 college Dear Emily, Yes, thanks for emailing me. Just FYI ‐‐ (why I'm cc'ing Jonathan) We have a much bigger issue in that Stanford's activity in College Terrace, in my opinion, should we viewed as a 'development' and not viewed as a bunch of single homes each reviewed separately. Stanford's purchases are a coordinated effort approved by the Board of Stanford to advance educational purposes, and they coordinate renovations, tear downs (which are most, much more than average homes here) and they sell them at the same time. These are permanently removed from the housing stock, and now 40+ homes in College TErrace are gone. The character of the neighborhood is losing its flavor as more and more homes are torn down here, unprecedented relative to home purchases before Stanford became a big player in the last 4 years. They tore down a beautiful Craftsman next door to me to build a mega‐home. We are uniquely targeted in Palo Alto being right off campus. this is something you can also discuss in planning, that would be great. Sincerely Mary Jane 3 On Thu, Sep 10, 2020 at 10:16 AM Foley, Emily <Emily.Foley@cityofpaloalto.org> wrote: Hello Mary Jane, Thank you for sharing your concerns for the 922 College project application. The project is going through two simultaneous project review processes, for the preliminary parcel map and for a variance. The subdivision is a discretionary permit, which is approved at a Director’s Hearing. This meeting has not yet been scheduled, but you will be notified by mail at least 10 days prior to the hearing, as required by the Subdivision Code. I will also make a note to email you. You will have the opportunity to provide public comment at the hearing, and the Director makes his decision within two weeks after the hearing. The variance is a staff‐level project, which does not require a public hearing. However, after the decision is made, it can be appealed to the Planning and Transportation Commission. The project is still under Staff review, it will not move forward to a hearing until both application types are ready to be approved. At this point, we are waiting for the applicant to resubmit the project, which will start another 30‐day staff review period. A Director’s Hearing would be a minimum of 60 days from the date of resubmittal, and typically occur on a Thursday afternoon. The City is expecting to still be working from home, and therefore the hearing is expected to take place on Zoom. Please let me know if you have any questions. Thank you, Emily Emily Foley | AICP | Associate Planner | Planning & Development Services 4 250 Hamilton Ave. 5th Floor, Palo Alto CA 94301 Phone: (650) 617 ‐ 3125 Please think of the environment before printing this email – Thank you! Online Parcel Report | Palo Alto Municipal Code Planning Forms & Handouts | Planning Applications Mapped Permit Tracking – Public Access From: Maryjane Marcus <maryjane.marcus@gmail.com> Sent: Wednesday, September 9, 2020 6:23 PM To: Foley, Emily <Emily.Foley@CityofPaloAlto.org> Subject: 922 college CAUTION: This email originated from outside of the organization. Be cautious of opening attachments and clicking on links. Dear Emily, I completely oppose turning those houses into 2 separate parcels. Stanford has already torn down 2 homes on our street to build mega homes and they are significantly changing the character of our street which has Small homes and cottages. Stanford owns 5 homes on our street. Sincerely Mary Jane Marcus 2090 Cornell st 4162699079 ‐‐ Kafenia COVID Response: 5 Millions need help, but you can start with one neighbor in our own community. Support our RENT FUND. ‐‐ Kafenia COVID Response: Millions need help, but you can start with one neighbor in our own community. Support our RENT FUND. ‐‐ “The heart is a The thousand-stringed instrument That can only be tuned with Love.” ― ﻅﻓﺎﺣ ﺩﻣﺣﻣ ﻥﻳﺩﻟﺍ ﺱﻣﺷ / Khwāja Šams ud-Dīn Muhammad Hāfez-e Šīrāzī, The Gift Attachment E Project Plans During the ongoing Shelter-in-Place, project plans are only available online. Directions to review Project plans online: 1. Go to: bit.ly/PApendingprojects 2. Scroll down to find “922 College Ave. and 2160 Cornell St.” and click the address link 3. On this project specific webpage you will find a link to the project plans and other important information Direct Link to Project Webpage: https://www.cityofpaloalto.org/news/displaynews.asp?NewsID=4722&TargetID=319 ii { yru.'.�p1• r /.: Yrr: /}.v�� •,d rs _ r raf,.,,e%s•L'. / r:� i r,.;r y j ryk• rrri r r.A.vt a • .,� al ..s..Y .:7.z'n.../.r.../..+�..3p.;'.: fr,rr rrrr•r;f....d�,•..r . - ..r/rr/. f...,.• rr.,� ,..,y s rrr r,,..t'w,'v.r� r.•rr f.sl'Yhw � n'r s/f rcr.r r,,r.yfrri :.i��'n, ::,r/ .•r r.r�r..i• 'tee?' .T;yr.•r/.rr :. rr..N/'w+vr ego f7nr Yi/ ,. r..7rrt > .. ▪ /,;rte.: ;r; r . • -:/ . p_:x...r , or ooie, � .r� l/ rarr.s r a f� y err r r Fos • .flifr •�aw!/y� ..rsr� re, EOE EgitarrE, C i b 4 4 Aai to (. cu (SQ.OaCa.. ..t✓r &eV. /r /nt rJ r2 ['o 24,44 i/✓e/r>r0rrr rt4r fi '- '- - rra ..,v. •e* .y 64.0••••,' 414.0r.. Fa3 x�. Y.4 rr.w .., fy ff ;y, rir f6. '� -'_/4 -ri !� f7r rnF r f.F /ir»y, re•,sr >3 ,rte 4/ y > p ,•.yr fb , f✓.,r> f 73.4 ,e/J'.'ry /n.•.r y .r,rrAr..,,d ' T' >,.rnvr,yfvt...rrf�rr l'!J vVf/'2,ri>rr%ray frir.r✓/Vo.e. )XFO/:'.0 Pr11 el /q[r L//V4/JLt✓' o. {d's1/-,.,' -.e.v-. / ^ +..:.err, c /r:.r ,t.„......2,2 -c.,,... '� fi' Eris �,'- f, _ r 401!4, !� i_. �LfE.PA'F[ 00.0 ,04- City of Palo Alto (ID # 11757) City Council Staff Report Report Type: Action Items Meeting Date: 1/25/2021 City of Palo Alto Page 1 Summary Title: VERBS Grant Project and Community Engagement Plan Title: Status Report on the South Palo Alto Bikeways Project Funded by the VERBS Grant; Approval of the Community Engagement Plan; and Approval of Budget Amendments in the Capital Improvement Fund Projects Safe Routes to School PL -00026 and El Camino Real Pedestrian Safety and Streetscape Project PL -18000 From: City Manager Lead Department: Transportation Department Recommendation Staff recommends that the Palo Alto City Council: 1. Receive a status report on the South Palo Alto Bikeways Project funded by the One Bay Area Grant 2 (OBAG 2) for Vehicle Emissions Reductions Based at Schools (VERBS) program; and 2. Approve the Draft Community Engagement Plan (CEP), including specific public outreach strategies for the South Palo Alto Bikeways Project; and 3. Direct staff to return after the first phase of public outreach to present the final concept plan for the project; and 4. Approve Amendment of the Fiscal Year 2021 Budget Appropriation Ordinance by a 2/3 vote for the Capital Improvement Fund by: a. Increasing the Safe Routes to School Project (PL-00026) expense appropriation by $110,000; and b. Decreasing the El Camino Real Pedestrian Safety and Streetscape Project (PL-18000) by $110,000. Background In 2017, the City submitted a project application to the Vehicle Emissions Reductions Based at Schools (VERBS) program, a subprogram of the One Bay Area Grant 2 (OBAG 2) program for the Waverley Multi-Use Path Improvements and East Meadow Drive and Fabian Way Enhanced Bikeways Project (South Palo Alto Bikeways Project) PL-00026. The proposed project was City of Palo Alto Page 2 awarded federal funds for construction in the amount of $919,000 with a local match of $480,000. Due to challenges with staffing resources, planning for this project has been delayed. The project has an imminent construction obligation deadline of January 2023. Staff is preparing to initiate the South Palo Alto Bikeways Project in anticipation of construction by January 2023. South Palo Alto Bikeways Project The South Palo Alto Bikeways Project is proposed for Fabian Way, East Meadow Drive, and the Waverley Path on Palo Alto Unified School District (PAUSD) land between E ast Meadow Drive and East Charleston Road. Proposed changes to enhance bicyclist visibility along Fabian Way from East Meadow Drive to East Charleston Road include reconfiguring Fabian Way with a travel lane reduction to accommodate a protected bicycle facility in each direction. Proposed changes to improve bicyclist visibility along East Meadow Driv e from Alma to Fabian Way include installing a protected bicycle facility that may require some parking reconfiguration or limited removal. Proposed changes to the third corridor, the Waverley Multi -Use Path between East Meadow Drive and East Charleston Road, include widening the Waverley Bike Path by at least two feet where feasible to accommodate the high flows and varying speeds of cyclists and pedestrians. Repaving and grading will help to mitigate uneven surfaces caused by root damage. The following local planning efforts support creating an enhanced network of low-stress school corridor routes to provide more families with the opportunity to leave their cars at home for their daily school and work trips, improving mobility options for all road users. By upgrading the bicycle facilities in the South Palo Alto Bikeways project, the City will improve the bicycle network and strengthen its investment in the Adobe Bridge Highway overcrossing and the Charleston-Arastradero Road Corridor project, both of which link to it. 2010 VERBS Grant The City was awarded a 2010 Vehicle Emissions Reductions Based at School (VERBS) grant to develop Walk and Roll Maps that included infrastructure recommended for each PAUSD elementary, middle, and high school. The initiative heightened the visibility of the Safe Routes to School (SRTS) program among the individual school communities and greatly increased the demand for City SRTS resources in both infrastructure and non-infrastructure programming. The Waverley Multi-Use Path was identified for upgrades and widening in the 2012-2016 Walk and Roll Recommendations Maps for the adjacent schools. City of Palo Alto Bicycle & Pedestrian Transportation Plan 2012 The 2012 City of Palo Alto Bicycle & Pedestrian Transportation Plan (BPTP) guides public and private investment in non-motorized transportation facilities and related programs in the city. The Fabian Way Enhanced Bikeway and the Meadow St./El Camino Way/Los Robles Enhanced City of Palo Alto Page 3 Bikeway are identified as key BPTP projects for the City. In November 2015, the Palo Alto City Council directed staff to develop a Class 4 separated bikeway on East Meadow to increase design safety. The project will link to other BPTP projects currently in progress, the Charleston - Arastradero Corridor Project, the Adobe Bridge Highway 101 Overcrossing. PAUSD Bike Counts, Parent Surveys, and Related Data Annual bike counts are taken by PTA Parent Transportation Safety Representatives Volunteers within a four-week period during the peak month of September. An average of multiple counts is encouraged. Data from 2016 show that between 8% and 54% of PAUSD elementary, middle, and school students bike to school. The 2019 JLS bike count revealed 54% of students biking, or 651 students. Gunn students biked at a rate of 44%, or 838 students. JLS Middle School reached the highest rate of student bike trips among PAUSD public middle and high schools in 2016. On an average day, 651 students, or more than 54% of JLS students biked to school. An average of 44% of Gunn High School students, or over 800, biked to school. These numbers have continued increasing since 2016. Recent data from 2019 show that between 7% and 70% of PAUSD elementary, middle, and school students bike to school. The 2019 JLS bike count revealed 70% of students biking, or 760 students. Gunn students biked at a rate of 50%, or 982 students. The 2014 District-Wide Safe Routes to School Parent Survey Report was conducted in Fall 2014 by the Palo Alto Safe Routes to School (SRTS) Program. Overall, 1,970 surveys were filled out, providing results for 3,124 students. The surveys found that parents preferred enhanced bicycle lanes that go beyond striping for their child’s route. Additionally, 2016-2017 estimates from JLS Middle School administrators indicated e ight students reported bike-related injuries along the Waverley Path, including a broken wrist from a student that fell off the Path due to the variability of the surface. Discussion This item is intended to reengage the Council on this project, share details about community engagement planned and lessons learned from other projects, request funding to move forward with the engagement and share a timeline and next steps to move the project forward as grant funds have timing restrictions for use. In addition to potential changes in travel patterns, a significant amount of time has passed since letters of support for the VERBS grant were submitted by the Jewish Community Center (JCC), Gideon Hausner Jewish Day School, Kehillah Jewish High School, PAUSD, and the local PTAs of each school along the corridor. It will be beneficial to re-engage neighbors, schools, the major employment (i.e. office, industrial, medical) districts along E. Meadow Drive and Fabian Way, as well as the JCC to gather suggestions, preferences, and considerations related to signage, striping, curb, buffers, extensions, and signalization changes. City of Palo Alto Page 4 While community engagement efforts are limited by the ongoing pandemic due to in -person events and meetings are currently prohibited by the County Public Health Department, there are several options to engage the community on this project. Options below are listed to engage the Council and staff will incorporate Council input into the final community engagement plans working with the City Manager’s Office and other Departments, as needed. Staff will also engage both PTC and PAUSD to incorporate feedback on the community engagement plan to make certain that we maximize reach to interested parties. As an example of how staff would apply the process and tools developed in the Draft Transportation CEP, a Draft Community Engagement Plan tailored for the South Palo Alto Bikeways Project is explained in this section. Amidst the unpredictable circumstances of the pandemic, staff aims to conduct as much community engagement as possible, and as safely as possible, using available resources. One of the goals of the Draft Community Engagement Plan is to determine if protected bikeways on either Fabian Way or East Meadow Drive would be acceptable to the S outh Palo Alto community. Because the grant specifies protected bikeway installation, the grant funds would need to be returned to VTA if the installation of protected bikeways cannot be accommodated on either Fabian Way or East Meadow Drive. Recent Community Engagement Led by the Office of Transportation Community engagement for Office of Transportation (OOT) projects adapt to the ongoing pandemic and take into account the City’s recent experience with roadway projects. Prior to social media and online engagement opportunities, the City’s Transportation staff used several techniques to engage the public, including but not limited to in -person meetings, usually held in the evenings, mailings to residents near a project, email blasts, and tabling near a pro ject or at a Farmers’ Market. Each technique has its benefits and drawbacks and reaching diverse segments of the community requires multiple methods, potentially increasing project timelines and costs. Community concerns raised about the Neighborhood Transportation Safety and Bicycle Boulevards (NTSBB) Project implementation, for which public outreach had been done years before construction, caused the temporary suspension and adjustment of the project. It also created tension in relationships staff built with the public and expended additional limited resources to remediate the situation. The Draft Community Engagement Plan (CEP) in this section reflects on lessons learned from the NTSBB Project, the Charleston-Arastradero Project, and the Connecting Palo Alto Grade Separation planning process as well as nationwide best practices. The South Palo Alto Bikeways Project will allow OOT to pilot the new framework and adjust it for future transportation projects. Community Engagement Options for the South Palo Alto Bikeways Project City of Palo Alto Page 5 The pandemic has highlighted digital methods for engaging large numbers of people, the pandemic has also underscored the need for cities to reach out to and support those who are on the other side of the digital divide or have limited computer literacy, who may not speak or read English, or whose essential jobs make it difficult for them to participate in meetings or events. Traditional methods like phone-calling and posting flyers in multiple languages at essential businesses (groceries, pharmacies, banks, etc.) may help reach these segments of the community. If allowed by Public Health, tabling at essential business is also a key strategy to reaching a diverse group. In addition, OOT staff can work with local non -profits that serve specific populations to help get the word out about the project. Based on several elements including the IAP2 model1, pandemic restrictions, and budget realities, OOT staff propose the following Draft Community Engagement Plan for the South Palo Alto Bikeways Project. Staff seeks feedback on the depth and breadth of the plan. Because the project is on a tight budget and timeline, activities that can provide the broadest reach within limited time and budget were selected. Purpose: • Provide accessible information on the South Palo Alto Bikeways project alternatives and to provide opportunities and platforms to enhance and encourage community engagement and participation. • Identify, engage, and work with key stakeholders to inform the community about the project, urgency of timely decisions, and the need to participate to assist Council to adopt a preferred solution. The outreach effort will be successful if: • The public understands and agrees to the problem that the ultimate solutions would solve. • Participants feel they had early and ongoing opportunities for meaningful input. • Stakeholders and interested parties can access timely and meaningful information. • The trade-offs were understood and that all parties were acknowledged and considered. • The public understood the funding constraints and opportunities related to the preferred solution and other ideas. • Decision-makers are afforded the opportunity to consider public input prior to key decisions. • The public understands how decisions were made. Bottom Line Question: To what level of protection should the bike lanes on Fabian Way and East Meadow Drive be upgraded, especially considering these routes are used by children biking to school and that East 1 IAP2 Spectrum of Public Participation: https://cdn.ymaws.com/www.iap2.org/resource/resmgr/pillars/Spectrum_8.5x11_Print.pdf City of Palo Alto Page 6 Meadow Drive and Fabian Way connect to the new Adobe Bridge via th e Reach Trail? If no installation of protected bikeways can be accommodated on either Fabian Way or E ast Meadow Drive, the grant funds must revert back to VTA. Key Stakeholders: • Nearby residents • Property owners • Business owners • Business tenants • Nearby schools • Council, PTC, PRC, PABAC, CSTSC • Various Palo Alto City Departments • Bicyclists – Silicon Valley Bicycle Coalition (Palo Alto Chapter), etc. • Students who bike here (Gunn, JLS, Fairmeadow, Hoover, GMS, Kehillah HS) • People who walk here • People who drive here • Transit Providers • Mitchell Park Field Users • Mitchell Park Library and Community Center Users Timeline: PHASE 1: Document Existing Conditions & Introduce Options Timeframe: April – May 2021 Tentative Events: • Host one webinar to describe the purpose of the project and the public engagement effort and post link to webinar recording on project website • Host Route Audit webinar to engage road users to provide feedback • Presentations to PTC, PABAC, and CSTSC Recommended Outreach and Communications Tools: • Project Information Meetings/Webinars • Online survey • Share details through City Communications channels • Interviews of Key Partners • Attendance of Standing Meetings of relevant local groups and various Boards and Commissions • Virtual Tour – Video of the segments to be considered • Self-Tour/Route Audit – With worksheet/google form that can be filled out by bicyclists/pedestrians/drivers touring the route • Self-Tour/Route Audit Webinar – Host webinar for those who have toured the route City of Palo Alto Page 7 and want to ask questions or provide additional feedback and ideas • Project Website - project description, status updates, calendar of events, survey link, map, virtual tour link, and FAQ • Flyers/Posters - shopping centers (Charleston Center, Midtown), JCC, schools, Mitchell Park Library and Community Center, Stevenson House • Signage along the routes • Newspaper Ads • Project Email Distribution List • Digital Mapping, if resources allow • Tabling at Farmers Market and other locations if allowed by Public Health • Temporary Treatments on Roadways • Letters mailed to addresses within 1000 feet of the routes • Translations • Presentations to neighborhoods directly affected and other community groups upon request, pending capacity PHASE 2: Develop Design Alternatives Timeframe: September 2021 Tentative Events: • Host webinar to obtain feedback on schematic designs (30%) • Presentations to PTC, PABAC, and CSTSC • Tabling at Farmers Market and Shopping Centers if allowed by Public Health • Presentations to neighborhoods directly affected and other community groups upo n request, pending capacity Recommended Outreach and Communication Tools: • Online survey • Attend Standing Meetings of relevant business and neighborhood groups • Share details through City Communications channels • Project Website - project description, status updates, calendar of events, survey link, map, virtual tour link, and FAQ • Flyers/Posters - shopping centers (Charleston Center, Midtown), JCC, schools, Mitchell Park Library and Community Center, Stevenson House • Signage along the routes • Newspaper Ads • Project Email Distribution List • Tabling at Farmers Market and other locations if allowed by Public Health • Letters mailed to addresses within 1000 feet of the routes • Translations City of Palo Alto Page 8 PHASE 3: Outreach for Preliminary Engineering Timeframe: April 2022 Tentative Events: • Host webinar to obtain feedback on Preliminary Engineering plans (60%) • Presentations to PTC, PABAC, and CSTSC • Tabling at Farmers Market and Shopping Centers if allowed by Public Health • Presentations to neighborhoods directly affected and other community groups upon request, pending capacity Recommended Outreach and Communications Tools: • Share details through City Communications channels • Project Website - project description, status updates, calendar of events, survey link, map, virtual tour link, and FAQ • Online survey • Flyers/Posters - shopping centers (Charleston Center, Midtown), JCC, schools, Mitchell Park Library and Community Center, Stevenson House • Signage along the routes • Newspaper Ads • Project Email Distribution List • Tabling at Farmers Market and other locations if allowed by Public Health • Translations PHASE 4: Informative Community Outreach Timeframe: August – October 2022 Tentative Events: • Host webinar and open house (if allowed) to obtain feedback on final design plans (100%) • Tabling at Farmers Market and Shopping Centers if allowed by Public Health • Presentations to neighborhoods directly affected and other community groups upon request, pending capacity • Presentations to PTC, PABAC, and CSTSC for recommendations to Council • Presentation to Council for project design approval. Recommended Outreach and Communications Tools: • PTC and City Council Study Session to review elements of the plan • Present plan to the public in an open house format and a webinar • Online survey • Submit final plan to City Council for adoption, allowing for public comment and sharing City of Palo Alto Page 9 public comment received so far • Share details through City Communications channels • Project Website - project description, status updates, calendar of events, survey link, map, virtual tour link, and FAQ • Flyers/Posters - shopping centers (Charleston Center, Midtown), JCC, schools, Mitchell Park Library and Community Center, Stevenson House • Signage along the routes • Newspaper Ads • Project Email Distribution List • Letters mailed to addresses within 1000 feet of the routes • Translations PHASE 5: Informative Community Outreach Timeframe: From January 2023 Onward Tentative Event: • Pop-up Construction Event Recommended Outreach and Communications Tools: • Signage along route • Share details through City Communications channels • Notice mailed to properties along the route • Door Hangers • Project Website - project description, status updates, calendar of events, survey link, map, virtual tour link, and FAQ • Translations The first phase of outreach is expected to be completed via OOT’s potential on-call consultant contract. The first phase is estimated to cost approximately $110,000 based on average consultant rates of similar consulting services. This would cover the cost of project initiation, project drawings, outreach materials, and outreach support. Due to challenges with the initial project concept for PL-18000, El Camino Real Streetscape Project, and time constraints to execute before the obligation deadline of January 2023, it is staff's recommendation to return the El Camino Real project grant funds to VTA. Funds from PL-18000, which would be adjusted during mid-year budget to support PL-00026, Safe Routes to School, which is funding the South Palo Alto Bikeways Project. Policy Implications The South Palo Alto Bikeways Project is consistent with the following goals, policies, and programs in the Comprehensive Plan 2030 Transportation Element: City of Palo Alto Page 10 Goal T-1: Create a sustainable transportation system, complimented by a mix of land uses, that emphasizes walking, bicycling, use of public transportation and other methods to reduce GHG emissions and the use of single occupancy motor vehicles. Policy T-1.1: Take a comprehensive approach to reducing single-occupant vehicle trips by involving those who live, work and shop in Palo Alto in developing strategies that make it easier and more convenient not to drive. Policy T-1.3: Reduce GHG and pollutant emissions associated with transportation by reducing VMT and per-mile emissions through increasing transit options, supporting biking and walking, and through the use of zero-emission vehicle technologies to meet City and State goals for GHG reductions by 2030. Goal T-2: Decrease delay, congestion, and VMT with a priority on our worst intersections and our peak commute times, including school traffic. Goal T-3: Maintain an efficient roadway network for all users. Policy T-3.5: When constructing or modifying roadways, plan for use of the roadway by all users. Program T3.5.1: Continue to use best practices in roadway design that are consistent with complete streets principles and the Urban Forest Master Plan, focusing on bicycle and pedestrian safety and multi-modal uses. Consider opportunities to incorporate best practices from the National Association of City Transportation Officials guidelines for urban streets and bikeways tailored to the Palo Alto context. Policy T-3.14: Continue to prioritize the safety of school children in street modification projects that affect school travel routes, including during constru ction. Goal T-6: Provide a safe environment for motorists, pedestrians, and bicyclists on Palo Alto streets. Policy T-6.1: Continue to make safety the first priority of citywide transportation planning. Prioritize pedestrian, bicycle, and automobile safety over motor vehicle level of service at intersections and motor vehicle parking. Policy T-6.4: Continue the Safe Routes to School partnership with PAUSD and the Palo Alto Council of PTAs. Policy T-6.6: Use engineering, enforcement and educational tools to improve safety for all users on City roadways. City of Palo Alto Page 11 Additionally, the South Palo Alto Bikeways Project is consistent with the following top recommended projects in the Bicycle & Pedestrian Transportation Plan 2012: BB-3 Bryant Street Bicycle Boulevard: Wayfinding signs and pavement markings south of Bryant Street. Spot improvements for additional safety and comfort, including Churchill/Coleridge Avenue spot improvement and arterial crossing enhancements at University Avenue, Meadow Drive (consider beacon or signal), Charleston Road, and San Antonio Road at Nita Drive into Mountain View. BK-7 Meadow St / El Camino Way / Los Robles Enhanced Bikeway: Potential cycletrack redesign or enhanced striping and signage of existing bike lanes between La Donna and Meadow Street along Los Robles/El Camino Way; Enhanced striping and signage, including intersection through-markings, for existing Meadow Street bike lanes from El Camino Way to Fabian Way. BK-9 Fabian Way Enhanced Bikeway: Potential cycletrack or enhanced striping and signage of existing substandard (time restricted) bike lanes to improve safety and access to Adobe Creek Highway 101 crossing, Charleston bike lanes to San Antonio Road TR-2 Adobe Creek Reach Trail: Upgrade the existing Santa Clara Valley Water District (SCVWD) maintenance road to a Class I trail facility from W. Bayshore Road at Adobe Creek to E. Meadow Drive. This trail would help connect the existing Benjamin Lefkowitz underpass and future potential overcrossing. Resource Impact Approval for the Community Engagement Plan requires a budget amendment in the Capital Improvement Fund to increase the Safe Routes to School Project (PL-00026) expenses by $110,000 and offset with a decrease to the El Camino Real Pedestrian Safety and Streetscape Project (PL-18000) expenses by $110,000; thus, it will be cost neutral. Staff anticipates potential savings from closing the El Camino Real Pedestrian Safety and Streetscape Project (PL -18000), which will be brought forward as part of the recommendations for FY 2021 Midyear Adjustments. Funding for the Safe Routes to School Project (PL-00026) is contingent upon Council approval through the annual budget process. The Waverley Multi-Use Path Improvements and East Meadow Drive and Fabian Way Enhanced Bikeways Project (South Palo Alto Bikeways Project) is funded through the FY 2021 Capital Improvement Project (CIP) Safe Routes to School (PL-00026). The City was awarded a grant by the Vehicle Emissions Reductions Based at Schools (VERBS) program, a subprogram o f the One Bay Area Grant 2 (OBAG 2) program. As stated earlier in the staff report, the award is $919,000 with a local match of $480,000 to cover the $1.4M project cost. The awarded VERBS funds are for construction costs only, not for community engagement (outreach) or design. City of Palo Alto Page 12 It must be noted that the $1.4M project budget was calculated in 2016, and accounting for inflation, the project budget has increased to $1.7M. This increases our local match obligation to $781,000 in 2020. Timeline Staff is implementing the first round of community engagement for the South Palo Alto Bikeways project. Subsequently, staff will return to Council with findings from the first round of public outreach, including the final concept plan. The timeframe of major milestones for the South Palo Alto Bikeways Project is presented in Table 2 below: Table 2: South Palo Alto Bikeways Project Milestones Fiscal Year Months Milestones 2021 Q3: Jan – Mar 2021 • Project status report to Council 2021 Q4: Apr – Jun 2021 • Stage 1 community engagement on application’s initial concept plan • Council approval on the final concept plan • Request for proposal 2022 Q1: Jul to Sep 2021 • Request for proposal (cont.) • Notice of award • Develop schematic design 30% • Stage 2 community engagement on schematic design 30% • CEQA and NEPA submission 2022 Q2: Oct – Dec 2021 • CEQA and NEPA submission (cont.) 2022 Q3: Jan – Mar 2022 • PAUSD Encroachment Permit • Develop preliminary engineering design 60% 2022 Q4: Apr – Jun 2022 • Develop preliminary engineering design 60% (cont.) • Stage 3 community engagement on preliminary engineering design 60% • Final engineering design 100% 2023 Q1: Jul – Sep 2022 • Final engineering design 100% (cont.) • Stage 4 informative community engagement 2023 Q2: Oct – Dec 2022 • Stage 4 informative community engagement (cont.) City of Palo Alto Page 13 • Initiate construction 2023 Q3: Jan – Mar 2023 • Stage 5 informative community engagement Stakeholder Engagement As described in this report, stakeholders have been involved throughout the development of the recommended project concept, as reflected in letters of support for the VERBS grant application. This includes PAUSD, whose staff have been involved in assessing the need for the project. The Draft Community Engagement Plan (CEP) could serve as a guide for implementing appropriate levels of public outreach for this project. As an example of how staff would apply the process and tools developed in the CEP, including identifying a range of stakeholders and public outreach strategies, a Draft Community Engagement Plan tailored for the South Palo Alto Bikeways Project is explained in the discussion section. Environmental Review No environmental review is necessary at this time for approval of the Draft Community Engagement Plan and direction to staff to return with a final concept plan following public outreach. Once Council approves the final concept plan for the South Palo Alto Bikeways project, staff will release a request for proposals for design and conduct environmental review of the project. Pursuant to the California Environmental Quality Act (CEQA), the South Palo Alto Bikeways project is subject to evaluation. As this project includes federal funding for construction, it will require a separate assessment under the federal National Environmental Policy Act (NEPA). City of Palo Alto (ID # 11808) City Council Staff Report Report Type: Action Items Meeting Date: 1/25/2021 City of Palo Alto Page 1 Summary Title: General Capital Improvement Fund Title: Update on Status of Capital Improvement Fund and Potential Direction on Prioritization of Projects for the FY 2022 Budget and 2022 -2026 Capital Improvement Plan From: City Manager Lead Department: Admi nistrative Services Recommendation Staff recommends that the City Council review and discuss this status report of the General Capital Improvement Fund for FY 2021, review potential impacts to the five-year capital improvement plan (CIP) due to current unknown financial impacts in the current fiscal environment, and potentially provide direction to staff on revisions to current Council priorities for inclusion as part of the FY 2022-2026 CIP development. Executive Summary The purpose of this review is to provide a status update on the General Capital Improvement Fund, share historical context for how the projects in the five -year CIP were prioritized, provide major economic forces and trends impacting this fund, and outline potential fiscal scenarios for review. Council discussion and feedback will assist in informing the FY 2022 budget process including the five-year CIP. As the Council considers the elements of this report, the following specific discussion topics are outlined as potential areas for the Council provide guidance to staff: • Prioritization principles; current and future • Fiscal Scenarios; varying projected financial recovery speeds • Known Unknowns; upcoming potential needs This discussion is a part of a series of conversations planned with t he City Council around the FY 2022 Budget and CIP development. Other discussions coming up include consideration of the Community and Economic Recovery Strategy and action items (scheduled for January 19); possible award of the construction contract of the Public Safety Building and related actions (scheduled for February 1): Long Range Financial Forecast (tentatively scheduled for February 8): FY 2021 Mid-Year Budget Review (tentatively scheduled for February 22) and the FY 2022 City of Palo Alto Page 2 Budget public hearings and actions associated (beginning in May). Background The need for this review arose from continued financial impacts of the Coronavirus (COVID-19) pandemic and the Shelter in Place Orders issued by the County Public Health Officer and the State Department of Public Health, and particularly, the significantly lower Transient Occupancy Tax (TOT) revenue seen as a result of these impacts. The economic conditions resulting from the current pandemic and Shelter in Place Orders has impacted the City with decreasing available resources in the General Fund, including resources for capital investment. Discussion during this review session will help City Council and the community understand the current financial outlook as the annual budget is developed, taking into co nsideration known unknowns, for example, the construction contract award and corresponding issuance of debt financing for the Public Safety Building. Funding Components of General Capital Improvement Fund The Capital Improvement Fund is primarily supported by the General Fund through an annual base transfer and a portion of revenue from Transient Occupancy Tax (TOT) receipts, also referred to as hotel tax. Additional financial support to the Fund is provided through debt issuance proceeds, grants and reimbursements from other agencies, and eligible in-lieu and impact fee funds. Over the past five years, General Fund contributions have accounted for approximately 60 percent of the annual revenue in the Capital Improvement Fund. During the development of the FY 2021 budget, significant decreases in revenue in the General Fund, including TOT revenue, were anticipated due to financial impacts of the pandemic, which resulted in: • General Fund base transfer to the General Capital Improvement Fund adopted at $5.0 million for FY 2021, a 68 percent reduction from pre-pandemic estimates of $15.7 million. • General Fund TOT revenue portion transferred to the General Capital Improvement Fund adopted at $6.6 million for FY 2021, a 56 percent reduction from pre -pandemic estimates of $15.0 million. • Other Non-General Fund revenue sources adopted at $32.0 million for FY 2021 are anticipated to have minimal changes as most of this funding is restricted to be used for specific projects. This amount excludes estimated bond funding of $102 million for the Public Safety Building. Altogether, the financial support from General Fund sources was reduced by $18.4 million in FY 2021. Since the Capital Improvement Fund relies heavily on funding transferred from the General Fund, this reduction resulted in the need to prioritize investments to the most critical infrastructure needs and pushed some projects previously planned in the five -year CIP beyond the 2021-2025 timeframe to minimize service impacts as part of the operating budget. Detailed information on changes to these projects can be found in Attachment A, Exhibit 2 of Staff Report #11376. City of Palo Alto Page 3 Projects that were pushed beyond the 2021-2025 five-year CIP were related to Parks and Open Space; Buildings and Facilities projects, such as Foothills Park Restroom Rehabilitation/Replacement; Community Theatre Rigging System and System Assessment; and Rinconada Pool Family Changing Rooms. Projects remaining in the five-year plan include Infrastructure Plan (IP) projects and projects related to maintenance and upkeep work for City facilities, public safety equipment, parks, streets, and traffic improvements. Detailed information on the 2021-2025 Adopted five-year CIP can be found in Attachment A of this staff report, and a current update for all projects provided in Staff Report #11096: “Semiannual Update on the Status of Capital Improvement Program Projects” (Informational Item). Table 1 below summarizes the funding components of the General Capital Improvement Fund, excluding revenues from debt financing, in the Capital Improvement Fund for the Adopted FY 2021 Budget as well as the five-year CIP. Table 1. Major Non-Debt Financed Sources in the Capital Improvement Fund FY2021 Adopted Budget and 2021-2025 Capital Improvement Plan Revenue Source ($000's) ADOPTED FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 Total CIP 2021-25 General Fund Base Transfer $ 5,047 $ 7,840 $ 12,604 $ 16,875 $ 17,288 $ 59,654 General Fund TOT Transfer $ 6,556 $ 8,850 $ 10,251 $ 11,295 $ 12,806 $ 49,758 Subtotal General Fund Sources $11,603 $16,690 $22,855 $28,170 $30,094 $109,412 Interest Income $ 1,190 $ 1,190 $ 1,190 $ 1,190 $ 1,190 $ 5,948 Gas Tax Funds $ 2,591 $ 2,711 $ 2,711 $ 2,711 $ 2,711 $ 13,433 Impact Fees/In-Lieu Fees $ 6,435 $ 7,966 $ 735 $ 745 $ 545 $ 16,426 Federal, State & Local Agencies $ 16,170 $ 10,042 $ 2,904 $ 1,765 $ 1,765 $ 32,646 Stanford University Medical Center Fund $ 3,250 $ 7,269 $ 4,075 $ 0 $ 0 $ 14,594 Transfer from Parking Funds $ 100 $ 115 $ 75 $ 65 $ 0 $ 355 Transfer from Other Funds $ 2,292 $ 176 $ 168 $ 0 $ 0 $ 2,636 Subtotal Other Sources $32,027 $29,468 $11,857 $6,475 $6,210 $86,038 Total* Capital Improvement Fund $ 43,630 $ 46,158 $ 34,712 $ 34,645 $ 36,304 $ 195,450 *Total excludes $102M of Debt Financed Bond Funding in FY 2021 for the Public Safety Building Impact to Revenue Sources from General Fund Prior to the COVID-19 pandemic, TOT revenues contributed approximately 20 to 25 percent of the overall revenues in the Capital Improvement Fund, discounting for large one -time revenue sources such as bond proceeds, with a three-year average for TOT revenue prior to the COVID- 19 pandemic of $8.2 million annually. The FY 2021 Adopted Capital Budget assumed $6.6 million for TOT revenues in FY 2021; however, based on current estimates, TOT is projected to decline at least another 67 percent to a total of $2.2 million for the year in the best case scenario. In accordance with the City Council policy regarding the voter-approved ballot City of Palo Alto Page 4 measures that increased the TOT rate by 3.5 percent, TOT funding is programmed to fund the IP projects and the associated debt service payments from the bond issuances for two of the IP projects, the New California Avenue Area Parking Garage (PE-18000) and the New Public Safety Building (PE-15001). Further discussion can be found in the Debt Service section of this report. This revenue remains extremely low compared to typical levels. In recent months, actual FY 2021 receipts reflect approximately 80 percent reduction, an improvement from the 90 percent or higher reductions seen in the final quarter of FY 2020. However, this remains below the FY 2021 Adopted Budget, which assumed a 50 percent decline from pre -pandemic activity levels. In addition, revenue from two new hotels anticipated to come online in FY 2021 remains lower than forecasted due to the current low occupancy levels and average room night that the City is currently experiencing. If current activity levels continue through the full fiscal year, staff expects revenues to fall below budgeted estimates as reflected in the scenarios above for FY 2021 projected TOT revenues. The pressure on hotels will persist in the immediate term, driven by efforts to contain COVID- 19. According to CBRE, demand for hotel rooms nationally was down by 36.8 percent year-over- year from calendar year third quarter 2019 (Q3 2019) to Q3 2020, and national hotel occupancy declined a corresponding 37.9 percent year-over-year. San Francisco saw a significant 84.1 percent loss in Revenue Per Available Room (RevPAR), the third greatest decline in the continental U.S. behind only Boston (85 percent) and New York (87.9 percent). San Jose saw a loss slightly greater than 70 percent from Q3 2019 to Q3 2020. In addition to TOT revenue, staff looked at the base transfer from the General Fund to the General Capital Fund. Previously in the five-year CIP, it was planned that this transfer would return to levels prior to the COVID-19 pandemic by FY 2024. However, more recent forecasting reduces that base General Fund support to a 5-year phase in, with full funding not restored until FY 2026, slowly recovering from an annual transfer of $5.1 million in FY 2022 to a transfer of $17.7 million in FY 2026. Table 2 below shows the sources of revenue from General Fund transfers to the Capital Improvement Fund for the Adopted FY 2021 Budget compared to the current five-year CIP projections, and the percent change between the adopted and projected amounts. City of Palo Alto Page 5 Table 2. General Fund Transfers to Capital Improvement Fund 2021-2025 Capital Improvement Plan (% change between adopted and projection) Revenue Source ($000's) FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 Total CIP 2021-2025 General Fund Sources (Base Transfer) Adopted in 2021-25 CIP $5,047 $7,840 $12,604 $16,875 $17,288 $59,654 Current Projections* $5,047 $5,142 $8,809 $11,776 $14,743 $45,517 % difference from Adopted 0.0% -34.4% -30.1% -30.2% -14.7% -23.7% General Fund Sources (TOT Transfer) Adopted in 2021-25 CIP $6,556 $8,850 $10,251 $11,295 $12,806 $49,758 Scenario B Projections** $2,200 $6,291 $9,436 $12,399 $13,267 $43,593 % difference from Adopted -66.4% -28.9% -8.0% 9.8% 3.6% -12.4% Subtotal General Fund Sources Adopted in 2021-25 CIP $11,603 $16,690 $22,855 $28,170 $30,094 $109,412 Scenario B Projections $7,247 $11,433 $18,245 $24,175 $28,010 $89,110 % difference from Adopted -37.5% -31.5% -20.2% -14.2% -6.9% -18.6%*** * General Fund Base Transfer projections remain consistent across all three scenarios ** TOT Transfer projections align to Scenario B discussed later in this report *** This reduction represents an 18% reduction above the significant reductions already included in the FY 2021 budget. As a reminder, the FY 2021 Adopted Budget reflected a 68% reduction in General Fund transfer support and a 56% reduction in TOT support or $18.4 million. This table reflects in FY 2021 an additional 37.5% reduction, or $4.4 million for a total reduction in FY 2021 of $22.7 million. The 2021-2025 CIP reflected a 32% or $50.4 million reduction in support from the General Fund, compared to the 2020-2024 CIP. This table reflects an additional 19% or $20.3 million reduction for a total reduction of 44.2% or $70.7 million over the five-year CIP. Impact to Other Revenue Sources Funding from other revenue sources can be categorized into three main groups : Interest Income, Transfers from Other Funds, and Grants/Revenue from Other Agencies. Revenue of $32.0 million is estimated in FY 2021 with Interest Income of $1.2 million, Transfers from Other Funds of $14.7 million, and Grants/Revenue from Other Agencies of $16.2 million. These revenue estimates are not anticipated to change in FY 2021 or throughou t the five year CIP, because they are restricted in how they can be used and assigned to specific projects. In addition, the fee revenue from impact and in-lieu fees has already been collected by the City and agreements with other agencies have been executed to ensure the City will receive the funding. One possible exception in these funds is Measure B funding coming from the Valley Transportation Authority (VTA) of approximately $1.3 million annually and recorded in the Grants/Revenue from Other Agencies. CMR 11825 was approved by the Council on November 30, 2020, endorsing a letter of concern and objection to the VTA potentially reducing Measure B funding to the City and other local jurisdictions and using the funding for the BART extension City of Palo Alto Page 6 to San Jose. This decision is still pending; however, reductions in Measure B funding would impact Railroad Grade Separation, Street Maintenance, and Traffic Signal and Intelligent Transportation System Upgrade projects. Bond Financing and Debt Service Costs As discussed above, part of the approval of the Infrastructure Plan (IP) projects included using debt financed bond funding, with the assumption that TOT funding would pay for the annual debt service after the projects were complete. A bond in the amount of $42 million was issued in FY 2019 for the California Avenue Area Parking Garage project, with an annual debt service cost of $2.4 million starting in FY 2020. The Public Safety Building (PSB) project is the other IP project with anticipated bond funding needed to cover the cost of the project. In preparation for the construction award of the PSB in FY 2021, debt financing assumptions were reviewed for a $102 million bond and debt service cost estimates for the PSB were adjusted based on staff’s analysis. Staff worked with the City’s financial advisor partners to model the potential issuance of debt for the PSB, considering the current market conditions. With the change in the monetary policy by the Federal Reserve, and the current state of the markets, it is expected that borrowing costs will remain at low levels. Staff applied this most recent modeling from the City’s financial advisors and determined that the annual debt service cost for the PSB, assuming $102 million in financing is needed, is estimated to be reduced from $7.3 million assumed in the 2021-2025 CIP to $5.6 million. This estimated debt service cost also assumes capitalized interest and allows the City to begin repayment in FY 2023, as opposed to FY 2022 as assumed in the 2021-2025 CIP. This is important to note, should the City Council decide not to pursue the building of the Public Safety Building, financial relief would not be seen in this fund until FY 2023 when the f irst debt service payment would be due. Table 3 below compares the debt service cost estimated in the 2021- 2025 CIP to current projections, with the percent change of costs incorporated in the Adopted 2021-25 CIP compared to current projections. City of Palo Alto Page 7 Table 3. Estimated Annual Cost of Debt Service in 2021 -2025 Capital Improvement Plan vs Current Projections Estimated Annual Debt Service Cost (Millions) FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 Total Debt Service Costs (2021-25 CIP)* California Ave. Parking Garage $2.4 $2.4 $2.4 $2.4 $2.4 $12.0 Public Safety Building - $7.3 $7.3 $7.3 $7.3 $29.2 Total Debt Service Costs (2021-25 CIP) $2.4 $9.7 $9.7 $9.7 $9.7 $41.2 Debt Services Costs (Current Projections)** California Ave. Parking Garage $2.4 $2.4 $2.4 $2.4 $2.4 $12.0 Public Safety Building - - $5.6 $5.6 $5.6 $16.8 Total Debt Service Costs (Current Projections) $2.4 $2.4 $8.0 $8.0 $8.0 $28.8 % Change 0.0% -75.3% -17.5% -17.5% -17.5% -30.1% * Cost of debt service projections incorporated in Adopted 2021-25 CIP ** Cost of debt service projections incorporated consistently across all three scenarios Discussion Prioritization Principles Projects within the Capital Improvement Fund account for general capital investments such as public safety facilities and equipment; parks, community, and recreation facilities; traffic and transportation improvements and upgrades; streets and sidewalk maintenance; and the catch - up and keep-up priorities identified by the Infrastructure Blue Ribbon Commission (IBRC). In 2010, Council appointed the 17-member IBRC, in recognition that the City had, over a period of several decades, systematically underfunded maintenance of its existing assets and failed to plan funding for replacement of assets at the end of useful lives. IBRC was tasked primarily with developing an inventory of the City’s infrastructure backlog, future needs, and proposing ideas for funding those needs. Following the completion of IBRC’s final report, efforts were focused on identifying long-term revenue sources to renew the City’s physical assets. Because of nearly half a decade of joint efforts from this coalition, Council adopted the Infrastructure Plan (IP) in June 2014, a set of nine new critical infrastructure improvement projects needed throughout the City. A tenth project was approved to be added to the IP as part of the FY 2020 Capital Budget. The funding plan for the IP projects has been supported primarily by two voter-approved rate changes in Transient Occupancy Tax (TOT)1, debt financed bond funding, grant funding, funds from other agencies, and transfers from the General Fund to the Capital Improvement Fund. The budget in this fund currently reflects the priorities identified by the IBRC and IP projects. The budget also reflects new and emerging priorities such as upgrades to the recently purchased Birch Street Park, and Magical Bridge Playground resurfacing. Based on the findings from the IBRC and the City of Palo Alto Page 8 priorities identified by the City Council, below are the principles used in prioritizing the allocation of capital investments in the General Capital Improvement fund annually and in the five-year planning. • Health & Safety: ensuring the health and safety of residents, visitors, and employees throughout the City’s infrastructure is a top priority. This includes ensuring facilities meet emergency evacuation regulations, are structurally sound, and accessible to all visitors. • Catch up; Keep up: IBRC priorities and identified deficiencies • Infrastructure Plan Projects: Complete the 10 IP projects in a timely manner to fulfil l the 2014 Council direction for upgrading the City’s infrastructure. • Council/Public/Interagency: Ad hoc priorities that arise through the Council and public any given year for special projects or investments such as the IDS camera system for train tracks, Birch Street acquisition and park build-out. This principle could also include regulatory/policy required projects. • Alternative Funding Sources: Special consideration for projects that qualify for alternative non-general fund sources such as donations, grants, or impact fees that would partially or completely offset project expenses. 1 Council policy to allocate revenues from TOT to fund the Infrastructure Plan, with a voter- approved 3.5% TOT increase plus revenue from new hotels built after January 2015. Fiscal Scenarios To model how the fund could be impacted over the five-year CIP while facing uncertainties surrounding the COVID-19 pandemic, staff developed several scenarios modeling potential TOT collections. These TOT scenarios include estimates for revenue associated with two new hotels opening in February 2021 and align with General Fund tax revenue modeling that will be presented to Council in February 2021 as part of the consideration of the Long-Range Financial Forecast and assist in the review of the PSB project. These models demonstrate various recovery paces and range from assuming a quick recovery, moderate recovery, to a slow recovery. For comparison purposes, the following assumptions were consistently applied across these scenarios: revised lower level of annual General Fund support; potential debt service costs if the City takes advantage of its strong bond rating in a low interest environment to cover long-term capital improvements as a low cost strategy for maintaining investments in the City’s infrastructure during an economic downturn; and continued priorities for infrastructure improvements. City of Palo Alto Page 9 Table 4. TOT comparison between Adopted 2021-25 CIP vs TOT estimated in Scenarios Actual 2020 Adopted 2021 Projected 2021 2022 2023 2024 2025 Adopted 2021-25 CIP 6,985 6,556 6,556 8,850 10,251 11,295 12,806 Scenario A 6,985 6,556 2,200 7,119 10,679 14,032 15,014 % difference from Adopted 0.0% 0.0% -66.4% -19.6% 4.2% 24.2% 17.2% Scenario B 6,985 6,556 2,090 5,899 8,849 11,628 12,442 % difference from Adopted 0.0% 0.0% -68.1% -33.3% -13.7% 3.0% -2.8% Scenario C 6,985 6,556 1,910 4,638 6,958 8,804 10,124 % difference from Adopted 0.0% 0.0% -70.9% -47.6% -32.1% -22.1% -20.9% Scenario A Assumes a quick recovery in which TOT reaches the lowest level in FY 2021 and begins to recover in FY 2022, returning to TOT levels previously anticipated by FY 2023. The ending fund balance in this scenario dips to the lowest point in FY 2024 at $4.6M ending fund balance, while remaining positive overall through FY 2026. Chart 1. Scenario A City of Palo Alto Page 10 Scenario B Assumes a moderate recovery in which TOT reaches the lowest level in FY 2021 and begins to recover in FY 2022, gradually returning to TOT levels previously anticipated by FY 2023. The ending fund balance in this scenario dips to the lowest point in FY 2023, at $1.8M or roughly 4.7% of the total planned project expenses in FY 2024, requiring a reprioritization of projects if the fund balance reserves must be improved. Chart 2. Scenario B City of Palo Alto Page 11 Scenario C Assumes a slow recovery in which TOT reaches the lowest level in FY 2021 and begins a gradual recovery in FY 2022, slowly returning to a “new normal” by FY 2024 that is lower than previously anticipated within the same 2021-2025-time frame. The ending fund balance in this scenario falls below zero in FY 2023, accumulating negatively to $10M below zero in FY 2025, requiring a significant reprioritization of projects to rebalance the fund. Chart 3. Scenario C Known Unknowns As with any forecasting and planning for future investments, the City faces a number of moving variables that could impact these scenarios which provide an isolated view of one key variable, the impact of the economic impacts on TOT receipts. Major variables to consider outside of these scenarios that may also impact the financial status of this fund and the City’s capital investments are highlighted below • General Fund Base Transfer: A smoothing of the increase of the General Fund base transfer to the Capital Improvement Fund to FY 2026, instead of the quicker ramp up to pre-COVID base transfer levels in FY 2023 assumed in the 2021 -2025 CIP (details in Table 2 above) • Measure B Funding: VTA BART. • Availability of Existing or New Funding Sources: Measure B funding currently potentially redirected to BART investments, CARES Act, State, Federal stimulus funding, etc. are changing. • Public Safety Building: These plans assume the award of the Public Safety Building construction contract, issuance of certificates of participation, and subsequent debt service costs. This estimated $118 Million project is funded by SUMC funding ($5.6M), Impact Fee Funding ($0.4M), the Capital Improvement Fund ($10.0M), and the remaining costs through the issuance of debt financed bond proceeds ($102.0M). As outlined above, debt service projected at $5.6 million annually is anticipated to begin in FY 2023. City of Palo Alto Page 12 • Additional funding needs for upcoming potential capital improvement projects that are not included in these scenarios. Estimated Project Costs* Range Cubberley Community Center (City’s 8.7 acres) $250 M Foothills Park Improvements $4-$14 M Junior Museum and Zoo Construction Phase II (tentative estimates from FY 2018) $5 M New Animal Shelter (tentative estimates from FY 2018) $10-$15 M Parks Master Plan (priority projects, tentative estimates from FY 2018) $40-$45 M Railroad train crossing/Grade separation $300 M ROTH Building and PAM partnership (“cold shell” or Phase 1 rehabilitation)** $6.5M to $11.0 M *Total project costs estimated at this time **Per Staff Report 11832 the unfunded portion for this project is between $0.2M to $4.2M On December 14, 2020 the Finance Committee discussed options for the additional funding needs of the Roth Building, which can be found here (CMR 11832). Should Council decide to proceed with the “cold shell” option, the estimated cost would be $6.5 million, out of which approximately $6 million of potential funding for this project has been identified. At the Council’s behest, staff reviewed available funding sources for a contribution of $500,000 to $1 million, to assist in funding at minimum the “cold shell.” Currently staff expects to be able to fund this level through savings in the Street Maintenance Project (PE-86070) and slightly higher interest earnings from the current reserve of TDR and General Fund proceeds . All other revenues and project expenditures in the General Capital Improvement Fund remain in line with the information outlined in the 2021-2025 CIP in the Adopted FY 2021 Budget (Link to the FY 2021 Capital Budget Document). The Capital Improvement Fund Source and Use statement has been attached to this staff report for ease of reference as Attachment A. It should be noted that in addition to volatility in potential TOT receipts, currently there are risks associated with Measure B funds, which provide funding for the City’s railroad grade separation project and may potentially affect other transportation projects. Identification of alternative funding sources will continue to be necessary. Areas staff consider as part of the annual budget process include the most recent reports for impact fee fund balances which can be found here (CMR 11875) and the Stanford University Medical Center Fund which can be found here (CMR 10643). Conclusion These scenarios, including the award of the Public Safety Building, continue the City’s Capital Improvement Plan without impacting services any further than service levels adopted in the FY 2021 budget. The scenarios do not require any debt service payment for the Public Safety Building until FY 2023, allowing the City to prepare reserves to the extent feasible to buffer any City of Palo Alto Page 13 lags in economic recovery trends over the coming two years. Should a slow recovery become the reality, current planned capital infrastructure investments will need to be re-evaluated in the outer years of the current five-year CIP, including either deferring projects beyond the planned period, rescoping projects to reduce costs, or defunding one or more projects altogether. Staff would anticipate working with the City Council through a review of planned projects either through a focused effort or through a potential alternative process with the Finance Committee or City Council as directed. As the City continues to evaluate the magnitude of the pandemic, further balancing strategies may need to be implemented to minimize disruptions to IP projects and other top priorities. Resource Impact This report is a status report and Council could provide potential direction to staff on priorities for inclusion as part of the FY 2022 Budget and 2022-2026 CIP development, including prioritization of current principles, CIP priorities, fiscal scenarios for budget development. Staff will continue to evaluate TOT revenue along with other revenue and expenditures in the Capital Improvement Fund and recommendations to update the FY 2021 budget will be brought forward as part of the FY 2021 Mid-Year Budget Review as needed. Adjustments that potentially impact years beyond the five-year CIP will be reviewed by staff and brou ght forward as part of the development of the FY 2022 Capital Budget and the 2022 -2026 CIP. Policy Implications This recommendation does not represent any change to existing City policies. Stakeholder Engagement This report was developed in coordination with the Public Works, Community Services, Office of Transportation, Information Technology, and Public Safety Departments. Environmental Review Acceptance and discussion of this Capital Improvements Fund report does not meet the definition of a “project” under the California Environmental Quality Act (CEQA) and therefore no environmental review is required. Attachments: • Attachment A: General Capital Improvement Fund FY2021-2025 CIP Source & Use Project Status Project Number Project Title FY 2019 Actuals FY 2020 Estimate FY 2021 Adopted FY 2022 FY 2023 FY 2024 FY 2025 5‐Year Total Source of Funds Beginning Fund Balance Infrastructure Reserve ‐ Beginning Fund Balance 51,533,218 51,456,186 46,798,098 15,659,870 8,932,896 3,996,164 1,873,190 46,798,098 Reserve: Roth Building & Sea Scout Building TDRs 4,687,468 4,919,782 4,919,782 4,919,782 4,919,782 4,919,782 4,919,782 4,919,782 Reserve: Library Bond Proceeds 638,000 588,000 588,000 588,000 588,000 588,000 588,000 588,000 Reserve: Infrastructure Plan 25,537,577 58,812,390 000000 Reserve: Debt Service 0 000002,500,000 0 Reserve: Future Capital Needs 0 0000000 Total Beginning Fund Balance 82,396,263 115,776,358 52305880 21,167,652 14,440,678 9,503,946 9,880,972 52,305,880 General Fund Contributions Annual General Fund Capital Transfer 16,958,000 15,323,000 5,047,000 7,840,000 12,604,000 16,875,000 17,288,000 59,654,000 Transfer from General Fund ‐ TOT Funding 8,691,712 7,155,906 6,556,000 8,850,300 10,250,700 11,294,800 12,806,400 49,758,200 Interest Income 1,279,833 1,178,500 1,189,600 1,189,600 1,189,600 1,189,600 1,189,600 5,948,000 Total General Fund Contributions 26,929,545 23,657,406 12,792,600 17,879,900 24,044,300 29,359,400 31,284,000 115,360,200 Project Reimbursements & Fund Transfers Transfer from California Avenue Parking District Fund PL‐16002 Parking Management and System Implementation 0 138,000 000000 Total Transfer 0 138,000 000000 Transfer from Charleston/Arastradero Fund PE‐13011 Charleston/Arastradero Corridor Project 0 18,000 000000 Total Transfer 0 18,000 000000 Transfer from Community Center Impact Fee Fund Capital Improvement Fund Attachment A: Source and Use FY 2021‐2025 Adopted Project Status Project Number Project Title FY 2019 Actuals FY 2020 Estimate FY 2021 Adopted FY 2022 FY 2023 FY 2024 FY 2025 5‐Year Total Capital Improvement Fund Attachment A: Source and Use FY 2021‐2025 Adopted AC‐18001 JMZ Renovation 1,025,717 1,671,860 1254980000125,498 PE‐08001 Rinconada Park Improvements 0 0 2,399,529 00002,399,529 Total Transfer 1,025,717 1,671,860 2,525,027 00002,525,027 Transfer from Gas Tax Fund PE‐13011 Charleston/Arastradero Corridor Project 1,170,237 0000000 PL‐00026 Safe Routes To School 100,000 100,000 90,000 100,000 100,000 100,000 100,000 490,000 PE‐86070 Street Maintenance 1,300,000 2,453,997 2,500,690 2,610,690 2,610,690 2,610,690 2,610,690 12,943,450 Total Transfer 2,570,237 2,553,997 2,590,690 2,710,690 2,710,690 2,710,690 2,710,690 13,433,450 Transfer from Library Impact Fee Fund LB‐21000 Library Automated Material Handling 0 0 260,000 180,000 190,000 0 0 630,000 Total Transfer 0 0 260,000 180,000 190,000 0 0 630,000 Transfer from New Public Safety Facilities Impact Fee Fund PE‐15001 New Public Safety Building 0 0 350,000 0000350,000 Total Transfer 0 0 350,000 0000350,000 Transfer from Parks Dedication Fee Fund PE‐14018 Baylands Boardwalk Improvements 470,000 0000000 PE‐19003 Birch Street Improvements 0 0 0 1,100,000 0 0 0 1,100,000 PE‐18006 Byxbee Park Completion 0 0 2,400,000 00002,400,000 PG‐18002 Turf Management Plan 100,000 0000000 Total Transfer 570,000 0 2,400,000 1,100,0000003,500,000 Transfer from Parks Development Impact Fee Fund PE‐19003 Birch Street Improvements 0 2,720,000 0 400,000000400,000 Project Status Project Number Project Title FY 2019 Actuals FY 2020 Estimate FY 2021 Adopted FY 2022 FY 2023 FY 2024 FY 2025 5‐Year Total Capital Improvement Fund Attachment A: Source and Use FY 2021‐2025 Adopted PG‐18001 Dog Park Installation and Renovation 0 0 150,000 0 150,000 0 150,000 450,000 PG‐19001 Baylands Athletic Center 10.5 Acre Expansion Plan 100,000 0000000 PG‐19000 Park Restroom Installation ‐ 0 350000 350000 0 350000 0 1050000 Total Transfer 100,000 2,720,000 500,000 750,000 150,000 350,000 150,000 1,900,000 Transfer from Refuse Fund PF‐17000 Municipal Service Center A, B, & C Roof Replacement 0 9,500 10,250 000010,250 PF‐16006 Municipal Service Center Lighting, Mechanical, and Electrical Improvements 0 27,000 27,000 000027,000 Total Transfer 0 36,500 37,250 000037,250 Transfer from Residential Parking Permits Program Fund PL‐16002 Parking Management and System Implementation 0 255,000 000000 Total Transfer 0 255,000 000000 Transfer from San Antonio/West Bayshore Fund PL‐05030 Traffic Signal and Intelligent Transportation System Upgrades 0 900,000 000000 Total Transfer 0 900,000 000000 Transfer from Stanford University Medical Center Development Agreement Fund PL‐04010 Bicycle and Pedestrian Plan‐Implementation Project 0 0 1,200,000 1,200,000 0 0 0 2,400,000 PL‐19000 Emergency Vehicle Traffic Signal Preemption System Pilot 11,200 0 0 0 0 0 0 0 PE‐18004 Fire Station 4 Replacement 0 0 750,000 4,075,000 4,075,000 0 0 8,900,000 PE‐15001 New Public Safety Building 0 900,000 800,000 0000800,000 PL‐16000 Quarry Road Improvements 0 200,000 0 1,493,513 0 0 0 1,493,513 PL‐17001 Railroad Grade Separation 0 0 500,000 500,000 0 0 0 1,000,000 Total Transfer 11,200 1,100,000 3,250,000 7,268,513 4,075,000 ‐ ‐ 14,593,513 Project Status Project Number Project Title FY 2019 Actuals FY 2020 Estimate FY 2021 Adopted FY 2022 FY 2023 FY 2024 FY 2025 5‐Year Total Capital Improvement Fund Attachment A: Source and Use FY 2021‐2025 Adopted Transfer from Storm Drainage Fund PE‐13011 Charleston/Arastradero Corrider Project 330,000 0000000 Total Transfer 330,000 0000000 Transfer from Traffic Impact Fee Fund PL‐05030 Traffic Signal and Intelligent Transportation System Upgrades 506,475 383,400 400,000 395,000 395,000 395,000 395,000 1,980,000 Total Transfer 506,475 383,400 400,000 395,000 395,000 395,000 395,000 1,980,000 Transfer from University Avenue Parking District Fund PL‐15004 Downtown Parking Wayfinding 280,015 40,000 000000 PL‐16002 Parking Management & System Implementation 0 752,220 000000 PE‐18002 High and Bryant Street Garages Waterproofing and Repairs 300,000 0000000 PF‐18000 Parking Lot J Elevator Modernization 50,000 0000000 PF‐14003 University Avenue Parking Improvements 63,517 343,000 100,000 115,000 75,000 65,000 0 355,000 Total Transfer 693,532 1,135,220 100,000 115,000 75,000 65,000 0 355,000 Transfer from University Avenue Parking In Lieu Fund PE‐15007 New Downtown Parking Garage 0 0 0 5,541,000 0 0 0 5,541,000 Total Transfer 0 0 0 5,541,000 0 0 0 5,541,000 Transfer from Utilities Administration Fund PE‐09003 City Facility Parking Lot Maintenance 0 0 0 0 100,000 0 0 100,000 PF‐02022 Facility Interior Finishes Replacement 370,000 0 169,000 176,000 0 0 0 345,000 PF‐17000 Municipal Service Center A, B, & C Roof Replacement 0 342,000 369,000 0000369,000 PF‐16006 Municipal Service Center Lighting, Mechanical, and Electrical Improvements 0 972,000 972,000 0000972,000 PE‐19001 Water, Gas, Wastewater Office Remodel 70,000 654,000 000000 Total Transfer 440,000 1,968,000 1,510,000 176,000 100,000 0 0 1,786,000 Project Status Project Number Project Title FY 2019 Actuals FY 2020 Estimate FY 2021 Adopted FY 2022 FY 2023 FY 2024 FY 2025 5‐Year Total Capital Improvement Fund Attachment A: Source and Use FY 2021‐2025 Adopted Transfer from Vehicle Maintenance Fund PF‐02022 Facility Interior Finishes Replacement 0 0 0 0 68,000 0 0 68,000 PF‐17000 Municipal Service Center A, B, & C Roof Replacement 0 190,000 205,000 0000205,000 PF‐16006 Municipal Service Center Lighting, Mechanical, and Electrical Improvements 0 540,000 540,000 0000540,000 Total Transfer 0 730,000 745,000 0 68,000 0 0 813,000 Grants/Other Revenue AC‐86017 Art in Public Spaces: Federal Grant and Private Donations 175,000 0000000 FD‐21000 Automated External Defibrillator Replacement: Stanford 0 0 38,000 0 0 0 0 38,000 FD‐20000 Cardiac Monitor Replacement: Stanford 0 135,000 7,000 0 0 0 0 7,000 PE‐13011 Charleston/Arastradero Corridor Project: VTA Grant 315,929 206,290 1,303,710 0 0 0 0 1,303,710 PL‐20000 Churchill Avenue/Alma Street Railroad Crossing Safety Improvements: CalTrans Section 130 0 500,000 4,000,000 0 0 0 0 4,000,000 PE‐17010 Civic Center Electrical Upgrade & EV Charger Installation: BAAQMD Grant 0 243,000 000000 PL‐18000 El Camino Real Pedestrian Safety and Streetscape Project: VTA Grant 0 0 2,000,000 2,000,000 1,138,750 0 0 5,138,750 FD‐22000 Extrication Tool Replacement: Stanford 0 0 0 42,700 0 0 0 42,700 FD‐14002 Fire Ringdown System Replacement: Stanford 0 40,000 5,00000005,000 PE‐19003 Birch Street Improvements 41,995,000 0000000 PG‐13003 Golf Reconfiguration & Baylands Athletic Center Improvements: SF Creek Joint Powers and Certificates of Participation 0 2,250,000 000000 PE‐11011 Highway 101 Pedestrian/Bicycle Overpass Project: Santa Clara County & OBAG Grants and Google Reimbursement 0 9,350,000 1,500,000 00001,500,000 AC‐18001 JMZ Renovation: IMLS Grant 18,956 240,200 000000 PE‐15001 New Public Safety Building: Certificates of Participation 0 0 102,000,000 0000102,000,000 PE‐12011 Newell Road/San Francisquito Creek Bridge Replacement: Caltrans & Silicon Valley Water 56,797 1,949,600 5,075,000 5,775,000 0 0 0 10,850,000 PL‐17001 Railroad Grade Separation: Measure B 0 2,000,000 500,000 500,000 1,000,000 1,000,000 1,000,000 4,000,000 PL‐00026 Safe Routes To School: VTA Grant 0 0 459,677 459,677 0 0 0 919,354 Project Status Project Number Project Title FY 2019 Actuals FY 2020 Estimate FY 2021 Adopted FY 2022 FY 2023 FY 2024 FY 2025 5‐Year Total Capital Improvement Fund Attachment A: Source and Use FY 2021‐2025 Adopted FD‐20001 Self‐Contanied Breathing Apparatus (SCBA) Air Compressor Replacement: Stanford 0 0 16,300 000016,300 FD‐18000 Self‐Contained Breathing Apparatus (SCBA) Replacement: Stanford 5,958 3,700 000000 PE‐86070 Street Maintenance: State Grant 505,463 2,172,200 965,000 965,000 465,000 465,000 465,000 3,325,000 PL‐12000 Transportation and Parking Improvements 8,060 000000 FD‐20002 Thermal Imaging Cameras Replacement: Stanford 0 8,500 000000 PL‐05030 Traffic Signal and Intelligent Transportation System Upgrades: Measure B 52,552 700,000 300,000 300,000 300,000 300,000 300,000 1,500,000 Total Grants/Other Revenue 43,133,715 19,798,490 118,169,687 10,042,377 2,903,750 1,765,000 1,765,000 134,645,814 Total Revenue 76,310,421 57,065,873 145,630,254 46,158,480 34,711,740 34,645,090 36,304,690 297,450,254 Total Sources 158,706,684 172,842,231 197,936,134 67,326,132 49,152,418 44,149,036 46,185,662 349,756,134 Use of Funds Buildings & Facilities PF‐93009 Americans With Disabilities Act Compliance 227,637 200,000 471,826 342,800 369,000 447,400 530,000 2,161,026 PE‐19002 Animal Shelter Renovation 270,962 2,939,971 582,657 0000582,657 PE‐14018 Baylands Boardwalk Improvements 1,417,456 164,657 110,519 0000110,519 PE‐17006 Baylands Flood Protection Levee Improvements 133,333 0 000000 AC‐14001 Baylands Nature Interpretive Center Exhibit Improvements 15,200 0 000000 PE‐15029 Baylands Nature Interpretive Center Facility Improvements 0 2,008 000000 PF‐01003 Building Systems Improvements 26,223 250,008 415,883 239,954 237,400 258,200 282,200 1,433,637 PE‐20002 City Facilities Assessment and Record Plan Management System 0 150,000 164,800 0000164,800 PE‐09003 City Facility Parking Lot Maintenance 27,831 319,725 419,941 233,500 489,200 0 0 1,142,641 PE‐12017 City Hall First Floor Renovations 14,959 188,402 000000 PE‐17002 City Hall Floor 3 Remodel 22,355 0000000 PE‐17008 City Hall Floor 4 Remodel 466,360 7,500 000000 PE‐17009 City Hall Floor 5 Remodel 432,096 32,002 000000 Project Status Project Number Project Title FY 2019 Actuals FY 2020 Estimate FY 2021 Adopted FY 2022 FY 2023 FY 2024 FY 2025 5‐Year Total Capital Improvement Fund Attachment A: Source and Use FY 2021‐2025 Adopted PE‐19000 City Hall Space Planning 0 0 631,700 0000631,700 PE‐17010 Civic Center Electrical Upgrade & EV Charger Installation 18,360 243,000 679,800 0000679,800 PE‐18016 Civic Center Fire Life Safety and Electrical Upgrades 14,088 269,104 356,956 0000356,956 PE‐15020 Civic Center Waterproofing Study and Repairs 968 49,800 617,255 0000617,255 PF‐15005 Emergency Facilities Improvement 0 14,370 000000 PF‐02022 Facility Interior Finishes Replacement 75,238 564,100 560,626 261,331 365,414 270,146 315,700 1,773,217 FD‐14002 Fire Ringdown System Replacement 244,144 140,000 16,000000016,000 PF‐14002 Fire Station 1 Improvements 15,242 84,800 000000 PE‐15003 Fire Station 3 Replacement 3,878,007 2,423,274 000000 PE‐18004 Fire Station 4 Replacement 0 350,000 700,000 4,575,000 4,575,000 0 0 9,850,000 PE‐18002 High and Bryant Street Garages Waterproofing and Repairs 26,472 213,454 210,446 0000210,446 PD‐14000 Internal Alarm System Replacement 50,759 26,800 000000 AC‐18001 JMZ Renovation 474,155 1,202,060 2,231,551 00002,231,551 LB‐21000 Library Automated Material Handling 0 0 316,400 230,900 256,600 0 0 803,900 PE‐14015 Lucie Stern Buildings Mechanical and Electrical Upgrades 2,420,500 505,455 000000 PF‐17000 Municipal Service Center A, B, & C Roof Replacement 0 0 2,169,800 00002,169,800 PF‐16006 Municipal Service Center Lighting, Mechanical, and Electrical Improvements 69,649 257,000 6,038,732 00006,038,732 PE‐18000 New California Avenue Area Parking Garage 5,044,555 43,587,279 000000 PE‐15007 New Downtown Parking Garage 510,437 73,121 0 5,103,000 0 0 0 5,103,000 PE‐15001 New Public Safety Building 1,563,200 7,000,000 102,800,000 3,400,000 400,000 0 0 106,600,000 PF‐18000 Parking Lot J Elevator Modernization 413,998 286,001 000000 AC‐18000 Performing Arts Venue Seat Replacement 0 0 439,400 0000439,400 PF‐00006 Roofing Replacement 770,934 184,435 183,600 474,900 285,629 674,076 621,886 2,240,091 PF‐07011 Roth Building Maintenance 1,420 10,000 31,973 000031,973 PF‐14003 University Avenue Parking Improvements 48,116 0 462,400 160,500 133,300 137,200 0 893,400 PE‐15011 Ventura Buildings Improvements 143,871 25,000 00000‐ PE‐19001 Water, Gas, Wastewater Office Remodel 5,996 90,765 692,035 0000692,035 Project Status Project Number Project Title FY 2019 Actuals FY 2020 Estimate FY 2021 Adopted FY 2022 FY 2023 FY 2024 FY 2025 5‐Year Total Capital Improvement Fund Attachment A: Source and Use FY 2021‐2025 Adopted Total Building & Facilities 18,844,521 61,854,091 121,304,300 15,021,885 7,111,543 1,787,022 1,749,786 146,974,536 Department Technology Upgrades and Improvements FD‐21000 Automated External Defibrillator Replacement 0 0 219,700 0000219,700 FD‐20000 Cardiac Monitor Replacement 0 808,000 42,000000042,000 FD‐22000 Extrication Tool Replacement 0 0 0 283,400 0 0 0 283,400 PD‐20000 Police Video Recording Systems Replacement 0 48,000 114,400 182,700 0 0 0 297,100 FD‐20001 Self‐Contanied Breathing Apparatus (SCBA) Air Compressor Replacement 0 0 94,500 000094,500 FD‐18000 Self‐Contained Breathing Apparatus (SCBA) Replacement 31,356 20,000 000000 FD‐20002 Thermal Imaging Cameras Replacement 0 65,000 000000 Total Department Technology Upgrades and Improvements 31,356 941,000 470,600 466,100 0 0 0 936,700 Parks & Open Space AC‐86017 Art In Public Spaces 208,945 1,239,055 1,615,424 337,524 200,438 242,145 352,550 2,748,081 PG‐06001 Athletic Courts Resurfacing 55,378 811,225 327,735 216,640 286,600 303,700 323,300 1,457,975 PG‐19001 Baylands Athletic Center 10.5 Acre Expansion Plan 10,402 000000‐ PG‐17000 Baylands Comprehensive Conservation Plan 205,089 90,000 7,100 00007,100 OS‐09002 Baylands Levee Repair for Public Safety Access 0 0000375,202 0 375,202 PG‐06003 Benches, Signage, Walkways, Perimeter Landscaping 420,374 126,901 271,019 223,300 236,900 251,700 268,700 1,251,619 PE‐19003 Birch Park Improvements 0 2,720,000 0 2,400,0000002,400,000 PE‐16000 Bol Park Improvements 0 0000685,100 0 685,100 PE‐17005 Boulware Park Improvements 23,830 20,102 442,499 0000442,499 PE‐18006 Byxbee Park Completion 187,251 16,074 2,881,146 00002,881,146 PG‐14002 Cameron Park Improvements 0 0 217,800 0000217,800 PG‐18001 Dog Park Installation and Renovation 15,746 0 164,800 0 200,000 0 225,600 590,400 OS‐18000 Foothills Park Boronda Lake Dock Replacement 0 0 230,700 0000230,700 PE‐20000 Foothills Park Dam Seepage Investigation & Repairs 0 30,000 000000 Project Status Project Number Project Title FY 2019 Actuals FY 2020 Estimate FY 2021 Adopted FY 2022 FY 2023 FY 2024 FY 2025 5‐Year Total Capital Improvement Fund Attachment A: Source and Use FY 2021‐2025 Adopted PE‐21000 Foothills Park Improvement Project 0 0 0 0 83,300 397,200 0 480,500 PG‐17001 Foothills Park, Pearson Arastradero Preserve, and Esther Clark Park Comprehensive Conservation Plan 0 0000000 PG‐18000 Golf Course Net and Artificial Turf Replacement 0 0 0 0 970,000 0 0 970,000 PG‐13003 Golf Course Reconfiguration & Baylands Athletic Center Improvements 2,455 10,000 200,0000000200,000 PE‐17000 Mitchell Park Adboe Creek Bridge Replacement 306,499 0000000 PG‐21000 Heritage Park Site Amenities Replacement 0 00000195,500 195,500 PE‐18012 Hoover Park Improvements 0 000001,255,700 1,255,700 PE‐21002 Johnson Park Renovation 0 0000474,800 1,573,900 2,048,700 PE‐21003 Magical Bridge Playground Rubber and Synthetic Turf Resurfacing 0 0 404,050 463,250 0 0 0 867,300 PE‐18010 Mitchell Park Improvements 0 0 0 0 374,000 1,059,895 0 1,433,895 OS‐09001 Off‐Road Pathway Resurfacing And Repair 0 173,000 124,000 136,900 147,300 158,600 171,500 738,300 OS‐00002 Open Space Lakes And Pond Maintenance 14,406 71,350 113,350 59,900 64,200 68,700 74,000 380,150 OS‐00001 Open Space Trails and Amenities 286,674 355,175 192,300 220,400 233,300 247,200 263,200 1,156,400 PG‐09002 Parks and Open Space Emergency Repairs 177,434 17,866 233,855 201,500 266,100 306,900 325,000 1,333,355 PG‐19000 Park Restroom Installation 0 0 350,000 440,900 0 494,400 0 1,285,300 PE‐13003 Parks,Trails, Open Space, & Recreation Master Plan 3,637 0 0 ‐ 0 ‐ 00 PE‐21001 Pearson Arastradero Improvement Project 0 0 0 0 70,800 306,700 0 377,500 OS‐18001 Pearson Arastradero Preserve Parking Lot Improvement 0 0 170,300 0000170,300 PG‐14001 Peers Park Improvements 0 0000289,600 0 289,600 PG‐14000 Ramos Park Improvements 0 20,000 209,0000000209,000 PE‐08001 Rinconada Park Improvements 232,671 365,000 2,495,229 0 538,300 0 3,073,800 6,107,329 PE‐12003 Rinconada Park Master Plan and Design 8,938 0000000 PE‐18015 Robles Park Improvements 0 0000953,500 0 953,500 PG‐14003 Seale Park Improvements 0 00000427,800 427,800 PG‐22000 Werry Park Playground Improvements 0 0000126,000 0 126,000 Total Parks & Open Space 2,159,729 6,065,748 10,650,307 4,700,314 3,671,238 6,741,342 8,530,550 34,293,751 Project Status Project Number Project Title FY 2019 Actuals FY 2020 Estimate FY 2021 Adopted FY 2022 FY 2023 FY 2024 FY 2025 5‐Year Total Capital Improvement Fund Attachment A: Source and Use FY 2021‐2025 Adopted Streets and Sidewalks PE‐17004 California Ave District Gateway Signs 729 142,886 000000 PE‐18001 CalTrain Corridor Video Management System Installation 749,178 99,232 000000 PE‐20001 City Bridge Improvements 0 0 94,400 137,900 348,600 185,200 198,600 964,700 PO‐12001 Curb and Gutter Repairs 450,166 744,397 123,853 126,700 134,200 142,400 151,800 678,953 PE‐12011 Newell Road/San Francisquito Creek Bridge Replacement 244,356 2,449,600 6,017,111 6,354,30000012,371,411 PO‐89003 Sidewalk Repairs 1,658,872 1,541,417 448,363 595,500 1,400,900 1,406,500 1,410,600 5,261,863 PO‐11000 Sign Reflectivity Upgrade 10,207 60,660 131,400 66,900 71,700 76,800 82,700 429,500 PE‐13014 Street Lights Condition Assessment 0 0 0 0 242,000 0 0 242,000 PO‐05054 Street Lights Improvements 100,374 38,306 156,287 103,800 119,000 235,500 254,400 868,987 PE‐86070 Street Maintenance 5,353,373 11,894,696 5,435,543 4,074,200 5,091,900 5,110,200 5,123,400 24,835,243 PO‐11001 Thermoplastic Lane Marking and Striping 13,006 98,328 133,400 97,100 103,300 110,100 117,800 561,700 Total Streets and Sidewalks 8,580,261 17,069,522 12,540,357 11,556,400 7,511,600 7,266,700 7,339,300 46,214,357 Traffic and Transportation PL‐04010 Bicycle and Pedestrian Plan‐Implementation Project 2,367,931 402,385 1,273,595 2,000,000 1,950,000 2,100,000 0 7,323,595 PE‐13011 Charleston/Arastradero Corridor Project 4,589,736 6,500,000 5,800,00000005,800,000 PL‐20000 Churchill Avenue/Alma Street Railroad Crossing Safety Improvements 0 400,000 4,636,200 00004,636,200 PL‐14000 Churchill Avenue Enhanced Bikeway 113 181,534 3,159,466 00003,159,466 PL‐15002 Downtown Automated Parking Guidance Systems, Access Controls, and Revenue Collection Equipment 2,359 448 2,726,860 00002,726,860 PL‐16001 Downtown Mobility and Safety Improvements 1,803,034 100,000 000000 PL‐15004 Downtown Parking Wayfinding 346,824 589,038 000000 PL‐18000 El Camino Real Pedestrian Safety and Streetscape Project 108,594 43,167 2,954,181 2,202,700 1,349,050 0 0 6,505,931 PL‐15001 Embarcadero Road at El Camino Improvements 88,607 0000000 PL‐19000 Emergency Vehicle Traffic Signal Preemption System Pilot 0 597,500 60,000000060,000 Project Status Project Number Project Title FY 2019 Actuals FY 2020 Estimate FY 2021 Adopted FY 2022 FY 2023 FY 2024 FY 2025 5‐Year Total Capital Improvement Fund Attachment A: Source and Use FY 2021‐2025 Adopted PE‐11011 Highway 101 Pedestrian/Bicycle Overpass Project 1,084,589 17,792,509 000000 PL‐15003 Parking District Implementation 32,760 307,257 0 0 218,800 236,700 256,800 712,300 PL‐16002 Parking Management & System Implementation 248 627,000 563,600 0000563,600 PL‐16000 Quarry Road Improvements 555,425 6,000 928,400 1,353,900 2,748,000 0 0 5,030,300 PL‐17001 Railroad Grade Separation 1,232,373 1,706,421 4,260,625 1,233,600 1,271,900 1,311,400 1,190,700 9,268,225 PL‐00026 Safe Routes To School 89,373 218,800 651,177 677,477 241,200 266,500 260,600 2,096,954 PL‐05030 Traffic Signal and Intelligent Transportation System 368,200 1,695,700 1,172,355 935,950 886,250 980,700 1,076,400 5,051,655 PL‐12000 Transportation and Parking Improvements 290,303 330,811 471,342 487,000 518,600 552,900 619,200 2,649,042 Total Traffic and Transportation 12,960,469 31,498,570 28,657,801 8,890,627 9,183,800 5,448,200 3,403,700 55,584,128 Administration AS‐10000 Capital Improvement Fund Administration 169,401 587,420 765,117 2,584,128 2,509,291 3,368,800 3,563,226 12,790,562 Total Administration 169,401 587,420 765,117 2,584,128 2,509,291 3,368,800 3,563,226 12,790,562 Total Project Expenses 42,745,737 118,016,351 174,388,482 43,219,454 29,987,472 24,612,064 24,586,562 296,794,034 Transfers to Other Funds Debt Service Fund (New California Avenue Parking Garage) 0 2,335,000 2,380,000 2,380,000 2,375,000 2,370,000 2,365,000 11,870,000 General Benefits Funds 53,757 0000000 PG‐19001 Parks Development Impact Fee Fund ‐ Baylands Athletic Center 10.5 Acre Expansion Plan 085,000000000 PG‐18002 Parks Dedication Fee Fund ‐ Turf Management Plan 0 100,000000000 Total Transfers to Other Funds 53,757 2,520,000 2,380,000 2,380,000 2,375,000 2,370,000 2,365,000 11,870,000 Debt Service Certificates of Participation Debt Repayment (New Public Safety Building) 0 0 0 7,286,000 7,286,000 7,286,000 7,286,000 29,144,000 Golf Course Certificates of Participation Bond Issuance 17,507 0000000 Total Debt Service 17,507 ‐ 0 7,286,000 7,286,000 7,286,000 7,286,000 29,144,000 Project Status Project Number Project Title FY 2019 Actuals FY 2020 Estimate FY 2021 Adopted FY 2022 FY 2023 FY 2024 FY 2025 5‐Year Total Capital Improvement Fund Attachment A: Source and Use FY 2021‐2025 Adopted Total Expenses 42,817,001 120,536,351 176,768,482 52,885,454 39,648,472 34,268,064 34,237,562 337,808,034 Reserves Reserve: Roth Building & Sea Scout Building TDRs 4,919,782 4,919,782 4,919,782 4,919,782 4,919,782 4,919,782 4,919,782 4,919,782 Reserve: Library Bond Proceeds 588,000 588,000 588,000 588,000 588,000 588,000 588,000 588,000 Reserve: Infrastructure Plan 58,812,390 0000000 Reserve: Debt Service 000002,500,000 5,000,000 5,000,000 Reserve: Future Capital Needs 00000000 Total Reserves 64,320,172 5,507,782 5,507,782 5,507,782 5,507,782 8,007,782 10,507,782 10,507,782 Total Ending Fund Balance (Infrastructure Reserve) 51,569,511 46,798,098 15,659,870 8,932,896 3,996,164 1,873,190 1,440,318 1,440,318 Total Uses 158,706,684 172,842,231 197,936,134 67,326,132 49,152,418 44,149,036 46,185,662 349,756,134 City of Palo Alto (ID # 11096) City Council Staff Report Report Type: Information Reports Meeting Date: 1/25/2021 City of Palo Alto Page 1 Summary Title: CIP Projects Update Title: Semiannual Update on the Status of Capital Improvement Program Projects From: City Manager Lead Department: Public Works Recommendation This report is provided for information only and requires no Council action. Executive Summary The City Council and Palo Alto community can be proud of the City’s capital improvement program (CIP). The CIP represents major investments in infrastructure functionality and sustainability, funded largely through the 2014 Council Inf rastructure Plan, as well as utility rates and various other sources totaling $772 million through 192 projects over the next five years. Over the past five years, the City has completed 73 individual community-serving projects totaling nearly $244 million of improvements. The CIP also represents a major effort for much of the City workforce. The following table summarizes the status of all projects for the six-month period of July to December 2020. CITY OF PALO ALTO City of Palo Alto Page 2 Project Type Active Projects Construction Phase (excludes Recurring) Completed One-Time Recurring Buildings & Facilities 25 9 4 3 Parks & Open Space 12 9 - - Streets & Sidewalks 2 7 - - Traffic & Transportation 10 5 2 - Airport 3 - 2 - Electric Fund 16 9 7 1 Fiber Optics Fund 1 2 - - Gas Fund 2 4 1 1 Stormwater Management Fund 4 1 - 1 Water Fund 5 7 - 1 Wastewater Collection Fund 2 4 - 1 Wastewater Treatment Fund 6 1 2 - Totals 88 58 18 8 Background This report provides Council with an update on the status of capital improvement program (C IP) projects. Prior to 2016, year-end and mid-year financial reports included very simple status updates on CIP projects. In contrast, this semiannual report provides more detailed and useful information for the Council and public regarding general fund and enterprise fund projects that appear on Council agendas and will be visible throughout the community. Discussion Project Update Organization The City has a robust capital improvement program, and many individual projects are in progress at any given time. In the five-year CIP Fiscal Year 2021-2025, there are 192 projects (Capital, Enterprise, and Internal Fund projects) totaling $772 million in funding. The attached CIP project tables are intended to provide Council with a quick overview of each project, including budgetary information, the anticipated completion date, a brief description of the project scope, the status of the project, and upcoming activities including Council actions. Also included in the report, is a list of all completed projects since the introduction of the Infrastructure Management System. City of Palo Alto Page 3 During the Fiscal Year 2021 budget process, several CIP projects were either defunded or experienced significant funding reductions as the City worked to address the projected revenue shortfalls associated with the shelter-in-place orders instituted in response to COVID-19. Projects that were subject to funding reductions in the Fiscal Year 2021 -2025 CIP will be called out throughout this CMR with an asterisk * tag. Detailed information on the changes to these projects can be found in Attachment A, Exhibit 2 of Staff Report #11376. Major/Significant Projects Summary The 2014 Council Infrastructure Plan is a major fo cus of staff’s capital improvement program efforts. The following table details the Total Project Budget and Total Actual Expenses through the first half of Fiscal Year 2021 for the Infrastructure Plan projects. Significant milestones have been achieved on the Infrastructure Plan projects since June 2020, even though construction delays occurred due to the COVID-19 pandemic. The California Avenue Garage has been completed and is open to the Public, and the Highway 101 Pedestrian/Bicycle Bridge project is making significant progress and is expected to be completed this summer. Current Infrastructure Plan project schedules can be found at http://www.infrastructure.cityofpaloalto.org/ City of Palo Alto Page 4 Council Infrastructure Plan Projects CIP Number Update Total Project Budget Total Actual Expenses** New Public Safety Building PE-15001 A construction contract will be brought to Council for approval in February 2021. $118,007,012 $9,384,436 Bicycle and Pedestrian Transportation Implementation Plan* PL-04010 Project on hold pending recent project evaluation and review of future project scoping. $16,616,736 $9,466,834 New Downtown Parking Garage* PE-15007 Certified EIR and approved land use actions. Project on hold pending review of downtown parking supply options. $6,583,930 $1,440,311 New California Avenue Area Parking Garage PE-18000 Completed; project closeout in progress $50,119,976 $47,556,788 Charleston Arastradero Corridor Project PE-13011 Phase 1 & 2 improvements are complete. Phase 3 to start construction in spring 2021. $19,554,473 $12,331,417 Fire Station 3 Replacement PE-15003 Completed; project closeout in progress $10,080,258 $9,705,786 Highway 101 Pedestrian/Bicycle Overpass Project PE-11011 Construction is underway with completion expected in summer 2021. $22,889,453 $14,142,494 Fire Station 4 Replacement PE-18004 A contract for design services will be brought to Council for approval in early 2021. $10,200,000 $86,979 Byxbee Park Completion* PE-18006 On hold pending completion of Baylands Comprehensive Conservation Plan. $3,240,043 $368,192 Downtown Parking Guidance System PL-15002 Staff is evaluating design/build proposals received in December 2020 and a contract is expected to be brought to Council in early 2021. $2,857,335 $149,969 Total Project Budget and Total Actual Expenses $260,149,216 $104,483,237 **Expenses as of December 31, 2020 Key considerations for the information presented in the project update tables include: • Project status information is current as of December 2020 • The individual project tables align with the Capital Improvement Fund categories in the FY 2021-2025 capital budget: Buildings and Facilities, Parks and Open Space, Streets and Sidewalks, and Traffic and Transportation. Enterprise Fund projects follow the order of their respective Fund in the capital budget • Additional project information is available in the FY 2021-2025 capital budget • Cubberley Property Infrastructure Fund projects are included in the Buildings and Facilities table • Each project table is divided into a section for one -time projects and a section for recurring projects that have ongoing annual funding City of Palo Alto Page 5 •Budgetary figures include staff oversight costs for projects to which st aff costs have been allocated Completed Projects Projects completed in the first half of Fiscal Year 2021, since the last update through June 2020, from July 2020 to December 2020 include the following: Capital Improvement Fund (general fund): •New California Avenue Area Parking Garage (PE-18000) •Civic Center Electrical Upgrade & EV Charger Installation (PE-17010) •Fire Station 1 Improvements (PF-14002) Enterprise Funds: •Gas ABS/Tenite Replacement Project (GS-18000) •Loma Verde Avenue Trunk Line Improvements (SD-19000) •Mayfield Reservoir Subgrade and Venting Repair (WS-19000) •Underground District 47 – Middlefield, Homer, Webster, Addison (EL-11010) •Wastewater Collection System Rehabilitation / Augmentation Project 29 (WC -16001) These completed projects do not include the significant amount of annual work completed under ongoing recurring projects, such as streets and sidewalks repairs, parking lot maintenance, roofing replacements, and regular maintenance of Utilities assets. Below are some photos of completed projects: New California Avenue Area Parking Garage (PE-18000) City of Palo Alto Page 6 Loma Verde Avenue Trunk Line Improvements (SD-19000) SHERMAN t -~'i - I I· --~·-· '::.-:. •-· I Pf f[B j Its l as IU9 tuJ City of Palo Alto Page 7 Projects Under Construction Projects that are currently under construction include the following: Capital Improvement Fund (general fund): •Cubberley Building Management Systems (CB-19001) •Emergency Vehicle Traffic Signal Preemption System Pilot (PL‐19000) •Fire Ringdown System Replacement (FD-14002) •High and Bryant Street Garages Waterproofing and Repairs (PE-18002) •Highway 101 Pedestrian Bicycle Overpass Project (PE-11011) •JMZ Renovation (AC-18001) Enterprise Funds: •Airport Apron Reconstruction (AP-16000) •Airport Facilities Electrical Improvements (AP-20000) •Facility Relocation for Caltrain Modernization (EL-17007) •Gas Main Replacement Project 23 (GS-13001) •Inter Substation Line Protection Relay (EL-17005) •Plant Master Plan (WQ-14003) •Primary Sedimentation Tank Rehabilitation (WQ-14003) •Rebuild Underground District 24 (EL-10006) •Reconfigure Quarry Feeders (EL-14005) •Underground District 46 – Charleston, El Camino Real (EL-12001) •Substation Physical Security (EL-16003) City of Palo Alto Page 8 •Substation 60kV Breaker Replacement (EL-17002) As described above for completed projects, the list of projects under construction does not include work currently being conducted under recurring CIP projects. Below are some photos of projects under construction: Highway 101 Pedestrian/Bicycle Overpass Project (PE-11011) City of Palo Alto Page 9 JMZ Renovation Capital Improvement of Note Implemented by Others El Camino Real: El Camino Real (State Highway 82) is maintained by Caltrans. Pavement Condition Index scores for El Camino Real are significantly lower than the average for Palo Alto streets. Staff has been communicating with Caltrans about the upcoming plans to repave El Camino Real from the Mountain View to Menlo Park borders. Currently, this work is planned for 2022. Caltrain Electrification: Construction continues on Caltrain Electrification in Palo Alto. All the foundations for the project have been installed and more than 90% of the poles have been installed in the City. These poles will hold the electric overhead lines that will power the new electric trains. About 25% of the wiring has been completed. Crews will continue to install the remaining poles and wires over the next few months. Construction is continuing at the Paralleling Station near Page Mill Road in Palo Alto. The power transformer and one of the two gantries has been installed at the facility. Resource Impact Funding for the projects discussed in this report is provided in the FY 2021 Capital Budget and 5-Year Plan. Stakeholder Engagement Stakeholder engagement is conducted separately for each project. Attachments: •Attachment A DECEMBER 2020 Semiannual Update on the Status of Capital Improvement Program Projects Capital Improvement Fund CIP Projects Buildings and Facilities Projects Parks and Open Space Projects Streets and Sidewalks Projects Traffic and Transportation Projects Enterprise Fund CIP Projects Airport Projects Electric Projects Fiber Optics Projects Gas Projects Storm Drain Projects Wastewater Collection Projects Wastewater Treatment Projects Water Projects List of Completed Projects ATTACHMENT A Blank page Buildings and Facilities Projects Status as of December 2020 *‐ Projects that were subject to funding reductions in the Fiscal Year 2021‐2025 CIP Buildings and Facilities Projects – Page 1 of 11 One‐Time Projects Animal Shelter Renovation (PE‐19002) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $1,824,043 $4,846,391 Public Works Design Spring 2022 Project Status: This project installs interim facility improvements to the Animal Shelter that accompany the agreement for operation of the shelter by Pets in Need approved by City Council in November 2018. The medical area upgrades and the modular office building are complete. The new kennel addition has been submitted for building permit and construction is anticipated to start in spring 2021. Automated External Defibrillator Replacement (FD‐21000) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $219,700 Fire Department Design Winter 2022 Project Status: This project replaces the entire complement of Automated External Defibrillators (AEDs) throughout City facilities and emergency response vehicles, which currently totals 93 AEDs. The Department is working on the Request for Proposal and plans to complete the bidding process in summer 2021. City Facilities Assessment and Record Plan Management System (PE‐20002) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $464,800 Public Works Design Fall 2021 Project Status: The Kitchell Report in 2008 summarized the last City‐wide facility condition assessment. A new facility condition assessment is warranted per the City’s APWA reaccreditation requirements. All City facilities will be assessed to bring current the “catch‐up” and “keep up” costs. In addition, an electrification assessment will be included to help the City reach its sustainability goals for 2030 to calculate “look ahead” costs. It is also an ideal opportunity to develop a new electronic system for managing the record plans of all City facilities. Currently, older record plans are managed through a Microsoft Access Database. The project will include scanning older hardcopy sets and compiling all records into a new indexed system that will be accessible to all City staff. An RFP will go out in early 2021. Buildings and Facilities Projects Status as of December 2020 * ‐ Projects that were subject to funding reductions in the Fiscal Year 2021‐2025 CIP Buildings and Facilities Projects – Page 2 of 11 City Hall Space Planning (PE‐19000) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $631,700 Public Works Pre‐Design Fall 2024 Project Status: This project involves space planning to determine future workgroup space needs and programming for the City Hall office building. The project will include preliminary design of the space following the initial feasibility phase. Civic Center Electrical Upgrade & EV Charger Installation (PE‐17010) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $134,744 $1,173,710 Public Works Completed Fall 2020 Project Status: This project installed EV chargers to existing downtown garages and replaced the aging Civic Center electrical switchgear and motor control centers. A request for proposals for a switchgear replacement design contract is currently underway to hire an engineering consultant. Another part of the project is to install 13 dual head level 2 chargers in City parking garages. Five new dual head EV chargers were installed in the Civic Center garage. Two new dual head EV chargers were installed in the Bryant Street garage. Six new dual head EV chargers were installed at the Webster Street garage. EV charger construction was completed in December. Civic Center Fire Life Safety Upgrades (PE‐18016) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $56,730 $892,038 Public Works Design Summer 2021 Project Status: This project will assess, update, and replace the Civic Center fire alarm system. The fire life safety system is approaching the end of its useful life. The fire alarm panels and associated equipment need an upgrade to meet current code requirements. A design‐build contract is currently under negotiation for an expected award by Council in early 2021. Civic Center Waterproofing Study and Repairs (PE‐15020) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $54,493 $771,345 Public Works Design Spring 2021 Project Status: This project includes a condition assessment of the Civic Center plaza deck structural system. In late 2016, RDH Building Science, Inc. was hired to investigate the problem. The results indicated that the Buildings and Facilities Projects Status as of December 2020 * ‐ Projects that were subject to funding reductions in the Fiscal Year 2021‐2025 CIP Buildings and Facilities Projects – Page 3 of 11 expansion joint on the plaza can be repaired. The scope expanded to include replacing the waterproof coatings on the inside of the plaza perimeter planter boxes. The design contract is under review and construction is estimated to begin in spring 2021. Cubberley Community Center Master Plan (CB‐16001) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $731,263 $926,792 Community Services Design Summer 2021 Project Status: This project supports the development of a Master Plan for future use of the Cubberley Community Center site by the City and Palo Alto Unified School District. A draft Cubberley Concept Plan was completed in November 2019 and was distributed to the community for input. Completion of CEQA has been delayed due to new guidelines for assessing impacts related to traffic and transportation, which will require an amendment to the consultant’s contract. Cubberley Building Management Systems (CB‐19001) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $669,999 Public Works Construction Spring 2021 Project Status: This project replaces the Building Management System (BMS) controls for the Pavilion, Theater, Wing I, and Gyms A and B boiler rooms at the Cubberley Community Center. The project will include the installation of control points for each building along with controllers, valve and damper actuators. A construction contract was approved by Council in November 2020. Construction started in December 2020 and will be completed in early 2021. Fire Ringdown System Replacement (FD‐14002) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $376,441 $400,144 Fire Department Construction Summer 2021 Project Status: This project will replace the current ring down system that provides an audible alert of calls for service in the fire stations. A vendor was selected through a cooperative purchasing agreement. Installation has been ongoing since 2018 and the installation for Fire Station 3 has been completed. The primary system installation is complete, and additional room monitors and switches are being installed and tested. Buildings and Facilities Projects Status as of December 2020 * ‐ Projects that were subject to funding reductions in the Fiscal Year 2021‐2025 CIP Buildings and Facilities Projects – Page 4 of 11 Fire Station 1 Improvements (PF‐14002) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $158,636 $187,064 Public Works Completed Fall 2020 Project Status: This project updated the individual sleeping quarters in the firehouse to address gender issues and privacy concerns. Fire Station #1 is the only fire station in the City that does not have separate bedrooms to accommodate male and female firefighters. This project was completed in fall 2020. Fire Station 4 Improvements (PE‐18004) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $17,781 $10,200,000 Public Works Design Summer 2024 Project Status: This project provides funding to replace Fire Station #4 at the corner of Middlefield Road and East Meadow Drive. The replacement facility will be based on the prior Replacement Study and Needs Assessment prepared in 2005. The consultant has been selected and the contract is going to Council in February 2021. High and Bryant Street Garages Waterproofing and Repairs (PE‐18002) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion 257,431 $443,376 Public Works Construction Winter 2021 Project Status: This project includes a study for analysis and repairs to the water proofing system in the High Street and Bryant Street parking garages. Water proofing repairs have been completed in the High Street parking garage. Repairs per the original CIP were completed. Additional funding was added to add waterproofing repairs to the subterranean stairwells. This additional phase will be completed winter 2021. Internal Alarm System Replacement (PD‐14000) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $51,944 $77,569 Police Department Design Winter 2021 Project Status: This project will replace the citywide Internal Alarm System. The City Hall alarms migrated to the new system in FY 2019. There are on‐going discussions about adding additional sites and a CAD interface. JMZ Renovation (AC‐18001) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $2,486,385 $4,572,903 Community Services Construction Winter 2021 Project Status: This project provides the relocation of the JMZ to Cubberley for two years while a new JMZ is being Buildings and Facilities Projects Status as of December 2020 *‐ Projects that were subject to funding reductions in the Fiscal Year 2021‐2025 CIP Buildings and Facilities Projects – Page 5 of 11 built. Construction of the new Junior Museum and Zoo commenced in June 2018 and is now 95% complete. Several animal exhibits have been completed, including the aquatics exhibit with a fish life support system. Other exhibits have been delayed due to the current health pandemic with most slated for completion and installation by May 2021. Relocating staff, collections and equipment to the rebuilt facility is on a staggered schedule including the acquisition of new animals and animal health quarantines. The public opening of the new JMZ is currently under review due to the health pandemic and may be postponed till June or November 2021. The transition from the temporary Junior Museum and Zoo at Cubberley Community Center to the new permanent location is underway, including the restoration of the temporary location. Two federal grants are also associated with the CIP. One grant funds the improvements to exhibits to provide access to children with disabilities. The other funds a portion of the California Dinosaur Garden. Progress on both grants was delayed due to the pandemic and work is now scheduled through 2023. Library Automated Material Handling (LB‐21000 ) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $803,900 Library Design Summer 2023 Project Status: This project is to provide the design and construction of three new Automated Material Handling (AMH) Systems for the College Terrace, Children’s, and Downtown Libraries. AMH systems efficiently sort returned library materials based on the Radio Frequency Identification Devices (RFID) on the materials. An architect was selected in December 2020, and design is to start in January 2021. Municipal Service Center A, B, & C Roof Replacement (PF‐17000) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $3,883 $2,169,800 Public Works Design Summer 2021 Project Status: This project will replace the existing MSC roofs. The existing asphalt and gravel roofs have reached the end of their useful life and needs to be replaced. The new roofs will meet current cool roofing codes to optimize energy efficiency. Staff has prepared construction documents and will be out to bid in early 2021 with construction starting in spring 2021. Municipal Service Center Lighting, Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $955,530 $7,711,513 Public Works Design Fall 2021 Buildings and Facilities Projects Status as of December 2020 * ‐ Projects that were subject to funding reductions in the Fiscal Year 2021‐2025 CIP Buildings and Facilities Projects – Page 6 of 11 Mechanical, and Electrical Improvements (PF‐16006) Project Status: This project replaces original mechanical, electrical, and lighting systems installed in 1966. It also includes design and construction for office renovations for the Zero Waste group. Bids for the site‐wide mechanical and electrical upgrades exceeded the available budget. Additional funding was added for FY 2020. A contract amendment with the design consultant is currently in negotiation. New California Avenue Area Parking Garage (PE‐18000) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $37,889,567 $50,119,976 Public Works Completed Fall 2020 Project Status: This project built the California Avenue Area Parking Garage, as part of the 2014 Council Infrastructure Plan and is being coordinated with the new Public Safety Building Project. The Public Safety Building will be placed on Lot C‐6 while the new garage was placed on Lot C‐7. The parking garage has 627 parking spaces with 2 basement levels and 4 above grade floors. The garage features an automated parking space guidance system, EV charging stations, bicycle parking, and motorcycle parking. The garage was opened to the public on December 8, 2020. New Downtown Parking Garage (PE‐15007)* Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $1,440,311 $6,583,930 Public Works Design Spring 2024 Project Status: This project was intended to provide a new parking structure in the University Avenue commercial area at existing Parking Lot D at the corner of Hamilton Avenue and Waverley Street. The project received ARB approval in July 2018. In February 2019, the City Council certified the EIR by adopting the Resolution and Mitigation Monitoring and Reporting Program. The Record of Land Use Action was approved for three (3) years and the project is on hold until after the City returns to the Policy and Services Committee for further discussion on the downtown parking management strategy. As part of the FY 2021 budget strategy, all Capital Improvement Fund funding has been removed and only the downtown parking in‐lieu fee funding remains for this project. Potential opportunities to use the remaining funding include public/private partnerships that may result in an increase in public parking spaces. Buildings and Facilities Projects Status as of December 2020 * ‐ Projects that were subject to funding reductions in the Fiscal Year 2021‐2025 CIP Buildings and Facilities Projects – Page 7 of 11 New Public Safety Building (PE‐15001) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $8,577,817 $ 118,007,012 Public Works Design Summer 2023 Project Status: This project will provide a new, modern Public Safety Building (PSB) that will meet essential services standards and the current and future needs of the public safety departments. The PSB and new garage in the California Avenue business district are now an integrated project and both are part of the 2014 Council Infrastructure Plan. The PSB plans were submitted for building permit review in late December 2019. Project bidding will take place in fall 2020 with construction scheduled to begin in early 2021. Performing Arts Venues Seat Replacement (AC‐18000) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $439,400 Community Services Design Summer 2022 Project Status: This project to replace the self‐rise mechanism in three venues for performing arts has been revised to replace all the seats in the Community and Children’s Theatres. Staff will be seeking a consultant to advise on ADA upgrade requirements that need to be completed with the seat replacement, in assessing the costs and finalizing the scope of the project. Police Video Recording Systems Replacement (PD‐20000) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $37,443 $345,100 Police Department Design Winter 2021 Project Status: This project replaces the Palo Alto Police Department video recording systems used to record events in the field with in‐car cameras as well as body‐worn cameras (BWC). The in‐car camera technology was introduced in 2013. In‐car systems are fixed in the vehicles and BWCs operate on rechargeable batteries for up to 8 hours, secured to the officer’s uniform. The in‐car video system is nearing the end of its service life and will need to be replaced as they fail in FY 2021. The BWCs are under warranty for the current fiscal year after a one‐year pilot program was implemented in FY 2019. Self‐Contained Breathing Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $ 94,500 Fire Department Pre‐Design Summer 2021 Buildings and Facilities Projects Status as of December 2020 * ‐ Projects that were subject to funding reductions in the Fiscal Year 2021‐2025 CIP Buildings and Facilities Projects – Page 8 of 11 Apparatus (SCBA) Air Compressor Replacement (FD‐20001) Project Status: This project replaces the central air compressor that provides air for Self‐Contained Breathing Apparatus (SCBA) tanks to ensure firefighter safety when entering environments with hazardous air quality. The compressor has been purchased and the Department is working with the vendor to complete installation and training. The project is still on track for completion by summer 2021. Water, Gas, Wastewater Office Remodel (PE‐19001) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $34,388 $873,064 Public Works Design Fall 2021 Project Status: This project incorporates renovations to the Utilities Water Gas Wastewater (WGW) office space at the Municipal Service Center (MSC). The current space no longer meets the operational needs of the department. This project will reconfigure the work area so it is more efficient for department operations and replace aging furniture and finishes. The new space will include a small reception area, additional offices and cubicles for new staff. Upgrades to lighting, fire life systems and enhancements to the WGW corridors will also be included with this renovation. The project is currently in design, and construction is anticipated to start in summer 2021. Recurring Projects Americans With Disabilities Act Compliance (PF‐93009)* Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $84,076 $471,826 Public Works N/A Recurring Project Status: This project provides accessibility upgrades to City facilities and equipment. It includes continued funding for improvements such as path of travel, restrooms, drinking fountains, and counters. Work in FY 2020 includes Council adoption of the update to the citywide ADA Transition Plan that began in November 2015. On December 17, 2018, Council approved an amendment to the consultant contract for public outreach to complete Buildings and Facilities Projects Status as of December 2020 * ‐ Projects that were subject to funding reductions in the Fiscal Year 2021‐2025 CIP Buildings and Facilities Projects – Page 9 of 11 the ADA Transition Plan update. The public outreach process for the updated plan was completed in June 2019 and survey responses were compiled and taken into consideration to the ADA Transition Plan Schedule. A final report was submitted to the City by the consultants for review and finalization in September 2019. The updated Transition Plan is expected to go to Council for acceptance in February 2021. Building Systems Improvements (PF‐01003)* Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $225,671 $445,954 Public Works N/A Recurring Project Status: This project provides electrical, mechanical, plumbing, structural, and security upgrades for City facilities. The installation of a new air‐cooled chiller for SA‐5 at City Hall was completed. This CIP was partially defunded because of COVID budget cuts. The design for tennis courts lighting upgrade has been completed. New “test fixtures” have been installed for one tennis court and for four pickleball courts. Staff has received positive feedback regarding these new fixtures. The new cooling tower media replacement originally scheduled for winter 2020 will be delayed until FY 2022. City Facility Parking Lot Maintenance (PE‐09003)* Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $126,739 $619,807 Public Works N/A Recurring Project Status: This project maintains parking lots and walkways at City facilities. The Lucie Stern Drive‐through parking lot and four small parking lots in Las Trampas Valley along the road near Foothills Park Interpretive Center were completed as part of the FY 2020 Street Resurfacing Project. Cubberley Repairs (CB‐17001) Prior Years Actuals Current Year Budget Implementing Department Project Phase Project Completion $3,712 $858,522 Public Works N/A Recurring Project Status: This project is for general maintenance needs of the Cubberley campus. Parking lot striping should be completed by spring 2021 and some hazardous flooring abatement with new flooring work for two classrooms will be completed by winter 2021. Buildings and Facilities Projects Status as of December 2020 * ‐ Projects that were subject to funding reductions in the Fiscal Year 2021‐2025 CIP Buildings and Facilities Projects – Page 10 of 11 Cubberley Roof Replacements (CB‐16002) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $569,606 $860,400 Public Works N/A Recurring Project Status: This project replaces existing roofs at Cubberley Community Center. Cubberley Wings F‐FH and H roofs are scheduled to be completed in spring 2021. Facility Interior Finishes Replacement (PF‐02022)* Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $227,087 $804,048 Public Works N/A Recurring Project Status: This project improves the interior finishes of City facilities, including flooring, walls, cabinets, paint, lighting, ceiling tiles, soundproofing, and fixed office furniture, doors, windows, and associated fire/life safety, mechanical, electrical and plumbing code compliance requirements. Design for the Office of Management and Budget’s (OMB) furniture reconfiguration is complete, and installation was completed in April 2020. Conceptual design for the Revenue Collections area is in process and includes new furniture, new casework, and painting of the interior office space. The Children’s Library carpet replacement is scheduled to be completed in spring 2021. Roofing Replacement (PF‐00006)* Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $59,065 $183,600 Public Works N/A Recurring Project Status: This project replaces existing roofs at City facilities that have outlived their useful lifespans. The roof replacement for the Ventura Community Center has been completed. The Animal Shelter roof recoating has been delayed due to roof modifications required for the current remodel of the facility. The Baylands Athletic Center Snack Shack and Restroom roof and Mitchell Park Tiny Tot Restroom roof are scheduled for replacement in spring 2021. Roth Building Maintenance (PF‐07011) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $2,792 $31,973 Public Works N/A Recurring Project Status: This project is for window repairs, waterproofing of foundation walls, installation of electrical Buildings and Facilities Projects Status as of December 2020 * ‐ Projects that were subject to funding reductions in the Fiscal Year 2021‐2025 CIP Buildings and Facilities Projects – Page 11 of 11 service, and a new ventilation system at the Roth building. In addition, roofing repairs will be done on an as needed basis until such time that the building is leased and occupied. There has been no maintenance work needed in the first half of FY 2021. University Avenue Parking Improvements (PF‐14003) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $361,100 $462,400 Public Works N/A Recurring Project Status: This project maintains parking lots and parking structures within the University Avenue Downtown Business Parking District. With the completion of work on Parking Lot C in spring 2019, all University Avenue parking district lots have been resurfaced and no additional work is needed at this time. Parks and Open Space Projects Status as of December 2020 * ‐ Projects that were subject to funding reductions in the Fiscal Year 2021‐2025 CIP Parks and Open Space Projects – Page 1 of 7 One‐Time Projects Baylands Comprehensive Conservation Plan (PG‐17000) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $368,952 $419,319 Community Services Pre‐Design Summer 2021 Project Status: This project develops a conservation plan examining native vegetation, wildlife habitat, and public access for trails, recreation amenities, and interpretive messaging. Staff interviewed and selected a consultant, AECOM, to create the plan. Staff and the consultant created an existing conditions report, formed a stakeholder and staff advisory group, held three stakeholder meetings, and one community meeting, created draft chapters of the report, and have developed conceptual plans for Byxbee Park including the former ITT property. An environmental impact study is in process and upon completion the Baylands Comprehensive Conservation Plan will be presented to the Parks and Recreation Commission and then to Council for formal adoption. Boulware Park Improvements (PE‐17005) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $148,808 $563,060 Public Works Pre‐Design Fall 2022 Project Status: This park renovation project was initially planned in FY 2018 but was postponed due to project priorities and potential purchase of the adjacent AT&T lot located at 3350 Birch Street. In fall 2019, the lot was purchased by the City. In response to the purchase, the City utilized the funding for the initial renovation project for preliminary design and outreach for both the existing park and the newly purchased park land. Additional funding was requested as part of the FY 2021 CIP process to implement park renovations for the existing Boulware Park and the new park land. In early 2020, a Parks and Recreation Commission meeting and a second community meeting were held to obtain input on project design. A third online community meeting was conducted in December 2020. Byxbee Park Completion (PE‐18006)* Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $ 368,192 $3,240,043 Public Works Pre‐Design Spring 2023 Project Status: This project allows for the remaining improvements to Byxbee Park that follows the completion of the landfill capping work. The Baylands Comprehensive Conservation Plan (BCCP), which is currently undergoing CEQA analysis, will include recommendations on the scope of the Byxbee Park project. The BCCP and the conceptual plan Parks and Open Space Projects Status as of December 2020 * ‐ Projects that were subject to funding reductions in the Fiscal Year 2021‐2025 CIP Parks and Open Space Projects – Page 2 of 7 for Byxbee Park are anticipated to be completed in summer 2021. Cameron Park Improvements (PG‐14002) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $18,620 $217,800 Community Services Design Summer 2021 Project Status: This project upgrades and renovates safety and accessibility features at Cameron Park with a primary focus on the park playground. The project is currently in the design and planning phase. Community meetings were held in May and July 2020 in addition to the Parks and Recreation Commission discussion in September 2020. A park improvement ordinance is scheduled to go to Council in January 2021. The project will go out to bid in February 2021, and construction should start in spring 2021. Cubberley Field Restroom (CB‐17002) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $116,523 $699,337 Public Works Design Winter 2022 Project Status: This project will install a new restroom in the sports field area of the Cubberley Community Center. Design for the project started in fall 2018 along with public outreach. A community meeting was held, and the Parks and Recreation Commission reviewed the project in November 2018. The project is in design and needs to be reviewed by the Architectural Review Board. Due to staffing constraints and other priorities, the restroom installation is anticipated in winter 2022. Foothills Park Boronda Lake Dock Replacement (OS‐18000) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $230,700 Public Works Pre‐design Spring 2021 Project Status: This project replaces an aged and deteriorating Boronda Lake Dock. Foothills Park Dam Seepage Investigation Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $30,000 Public Works Pre‐design Winter 2022 Project Status: This project will study a location of historic seepage from the Foothills Park Dam at the sharp bend in Parks and Open Space Projects Status as of December 2020 * ‐ Projects that were subject to funding reductions in the Fiscal Year 2021‐2025 CIP Parks and Open Space Projects – Page 3 of 7 and Repairs (PE‐20000) the road on the face of the dam. The seepage is very minor, but it appears to be slowly worsening. The source of the seepage is suspected to be the trench backfill around the pipe that returns shallow groundwater to Boronda Lake. This project will locate and investigate the pipe and trench backfill material. Due to staffing constraints and other priorities, this project is on hold. Golf Course Reconfiguration & Baylands Athletic Center Improvements (PG‐13003) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $14,002,205 $14,205,595 Community Services Design Summer 2025 Project Status: This project renovates the Municipal Golf Course in accordance with the Council‐approved conceptual plan. The project includes less turf, raising the elevation of the course with imported soil, replacement of the irrigation and drainage systems and space for athletic fields. Construction is complete and the course is in operation. Per regulatory permits, environmental monitoring of the course remains as the last part of the project. Magical Bridge Playground Rubber and Synthetic Turf Resurfacing (PE‐21003) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $867,300 Community Services Design Summer 2022 Project Status: This project will replace rubberized and synthetic turf surfacing in the playground and will repair or replace play equipment. Staff anticipates replacing the playground surfacing by summer 2021. The play equipment including swings, climbing net and playhouse will be repaired or replaced in FY 2022. Pearson Arastradero Preserve Parking Lot Improvement (OS‐18001) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $170,300 Community Services Design Spring 2021 Project Status: This project provides funding to improve the Pearson Arastradero Preserve parking lot by improving the base rock surfacing, adding drainage, widening the entrance for safety, and new fencing. The improvement will allow the overflow parking area to be open year‐round, rather than only during the dry periods of the year. Ramos Park Improvements Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $18,773 $229,000 Community Services Design Summer 2021 Parks and Open Space Projects Status as of December 2020 * ‐ Projects that were subject to funding reductions in the Fiscal Year 2021‐2025 CIP Parks and Open Space Projects – Page 4 of 7 (PG‐14000) Project Status: This project includes safety and accessibility improvements at Ramos Park. The work includes replacing the existing park playground, benches, drinking fountains, and resurfacing the basketball court playing surface. A Park Improvement Ordinance (PIO) for these improvements went to the Parks and Recreation Commission on December 15, 2020. The PIO will go to Council in February 2021. Construction is planned for spring 2021. Rinconada Park Improvements (PE‐08001) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $2,350,551 $8,742,375 Community Services Design Spring 2025 Project Status: This project provides upgrades to safety, site amenities, playground facilities, a new restroom, irrigation, drainage and ADA accessibility improvements at Rinconada Park. These improvements were identified in the Rinconada Long Range Plan (LRP). The project schedule is currently being coordinated with the construction of the new Junior Museum and Zoo Project. Design and public outreach for the project was completed by in house staff. In summer 2020, the project received bid prices that were higher than anticipated and staff is reevaluating the project for rebidding. Phase 2 of the project would include improvements to the eastern half of the park by fiscal year 2025 including pathway improvement, new restroom, ADA upgrades, planting, irrigation, lighting, and site furnishing. According to the LRP, future improvement phases would include renovation to the eastern side of the park, arbor and pool areas, and development around the electrical substation. Recurring Projects Art in Public Spaces (AC‐86017) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $819,050 $1,615,424 Community Services N/A Recurring Project Status: This project provides the ongoing temporary and permanent artworks throughout the City. The FY 2021 budget funded temporary public artwork at King Plaza, temporary murals in the California Avenue and Parks and Open Space Projects Status as of December 2020 * ‐ Projects that were subject to funding reductions in the Fiscal Year 2021‐2025 CIP Parks and Open Space Projects – Page 5 of 7 University Avenue corridors, and microgrant projects throughout the City. Additional funds were also used to create a California Avenue Public Art Plan and hire a racial equity consultant to evaluate the Public Art Program’s outreach policies and procedures. Projects in process include artworks for King Plaza, Fire Station 4, Charleston and Arastradero Corridor, the Highway 101 Bike and Pedestrian Bridge, the Public Safety Building, and public programming for Code: ART2. Athletic Courts Resurfacing (PG‐06001) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $866,277 $327,735 Community Services N/A Recurring Project Status: This project repairs and resurfaces tennis and basketball courts in various Palo Alto parks. In summer 2020, minor asphalt repairs and acrylic resurfacing to the basketball court at Peers Park were completed. In fall 2020, acrylic resurfacing to the basketball court at Briones Park was completed. Benches, Signage, Walkways, Perimeter Landscaping (PG‐06003) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $118,883 $271,019 Community Services N/A Recurring Project Status: This project restores and replaces existing benches, signage, fencing, walkways, and landscaping at various City facilities. In summer 2020, maintenance gates were installed at Cameron Park, Weisshaar Park and Werry Park. In fall 2020, new picnic tables were installed at Johnson Park and Hopkins Park. Dog Park Installation and Renovation (PG‐18001) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $0 $164,800 Community Services N/A Recurring Project Status: This project enables the construction of dog parks at various City parks and facilities that currently do not have dog parks, as well as renovating existing dog parks. The next dog park installation or renovation has not been determined as several locations are under consideration. Staff is meeting with the Parks and Recreation Commission to discuss location options and expansion of existing dog parks at Greer Park and Mitchell Park. Off‐Road Pathway Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion Parks and Open Space Projects Status as of December 2020 * ‐ Projects that were subject to funding reductions in the Fiscal Year 2021‐2025 CIP Parks and Open Space Projects – Page 6 of 7 Resurfacing and Repair (OS‐09001)* $47,241 $124,000 Community Services N/A Recurring Project Status: This project resurfaces failing and broken pathways within the City. Pathways are chosen based on inspections and resident requests. The Adobe Creek Reach Trail is under construction with the Highway 101 Pedestrian and Bicycle Overcrossing Project that began in early 2020. Open Space Lakes and Pond Maintenance (OS‐00002) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $42,509 $113,350 Community Services N/A Recurring Project Status: This project rehabilitates lakes and ponds in open space nature preserves to protect wildlife habitat and recreational safety and to meet State Division of Safety of Dams requirements. A three‐year contract to clear aquatic weeds at Boronda Lake is in progress and scheduled to be completed by June 2021. Open Space Trails and Amenities (OS‐00001) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $197,481 $192,300 Community Services N/A Recurring Project Status: This project restores unpaved trails, fences, picnic areas, and campgrounds at Foothills Park, the Baylands, and the Pearson‐Arastradero Nature Preserves. A contract for trail maintenance was awarded in May 2018, and the contractor has started the annual trail work. In summer 2020 trail repairs to the Redtail Loop trail were completed. In fall 2020, road surface reconstruction of fire roads at gate 4 (near Page Mill Road) and the annual maintenance to the Foothills Park trails was completed. Parks and Open Space Emergency Repairs (PG‐09002) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $65,289 $233,855 Community Services N/A Recurring Project Status: This project replaces or repairs playgrounds, play yard surfaces, wooden structures, park amenities, and play equipment in the event of storms, fire, vandalism or structural failure. In summer 2020, the rubber surfacing was repaired at Boulware Park. In fall 2020, a wooden bridge at the Mitchell Park playground was restored. Parks and Open Space Projects Status as of December 2020 * ‐ Projects that were subject to funding reductions in the Fiscal Year 2021‐2025 CIP Parks and Open Space Projects – Page 7 of 7 Park Restroom Installation (PG‐19000) Prior Years Actuals Current Year Budget Implementing Department Project Phase Project Completion $10,947 $350,000 Community Services N/A Recurring Project Status: This project installs new restrooms at City parks that currently do not have restroom facilities. The restrooms may be prefabricated, and each installation will require a Park Improvement Ordinance. Staff conducted a community meeting in January 2020 to discuss adding a restroom at Ramos Park. A park improvement ordinance for adding a new restroom was reviewed and unanimously recommended for Council approval by the Parks and Recreation Commission in December 2020. The park improvement ordinance will go to Council in February 2021. Streets and Sidewalks Projects Status as of December 2020 * ‐ Projects that were subject to funding reductions in the Fiscal Year 2021‐2025 CIP Streets and Sidewalks Projects – Page 1 of 3 One‐Time Projects California Avenue District Gateway Signs (PE‐17004) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $7,604 $142,886 Public Works Design Fall 2021 Project Status: This project includes the design and replacement of two existing gateway signs in the right‐of‐way for the California Avenue business district. An application to the Architectural Review Board will be made in spring 2021. The signs are expected to be replaced in fall 2021. Newell Road San Francisquito Creek Bridge Replacement (PE‐12011) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $1,495,633 $16,173,303 Public Works Pre‐Design Spring 2024 Project Status: This project removes and replaces the Newell Road bridge over San Francisquito Creek with a clear span to allow the channel to convey up to the natural capacity of the San Francisquito Creek, approximately 7,500 cfs, and improved safety for vehicular, bicycle, and pedestrian traffic. The project is being closely coordinated with the City of East Palo Alto, Santa Clara Valley Water District, and the San Francisquito Creek Joint Powers Authority (JPA). The Environmental Assessment (EA) was approved by Caltrans in May 2020. The preferred project alternative was selected and the Final Environmental Impact Report was certified by Council on June 1, 2020. During the first half of FY 2021 staff secured additional funding from Caltrans in August 2020 for preliminary engineering, right‐of‐ way and construction administration. Once funds are programmed, the existing agreements with Caltrans, the City’s consultant and Santa Clara Valley Water will be scheduled for City Council approval in spring 2021. Staff will advance the design once the contract amendments are completed. Recurring Projects City Bridge Improvements (PE‐20001) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $7,370 $94,400 Public Works N/A Recurring Project Status: This project includes bridge maintenance, repair, and an improvement program over the next five years. This program will include on‐going inspections to report physical changes to the structures, Streets and Sidewalks Projects Status as of December 2020 * ‐ Projects that were subject to funding reductions in the Fiscal Year 2021‐2025 CIP Streets and Sidewalks Projects – Page 2 of 3 recommendations for work to be done, and additional information to meet functional and structural standards in accordance with industry standards. Staff is in the process of hiring an on‐call structural engineering firm to assist with the bridge inspection and repair program. A Request for Proposal was issued in fall 2020 and the proposals are being evaluated. Curb and Gutter Repairs (PO‐12001) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $295,023 $572,322 Public Works N/A Recurring Project Status: This project repairs curbs and gutters uplifted by tree roots. For FY 2020, the curb and gutter locations are selected from a list reported by the public and evaluated by Public Works staff. This project is combined with the current year’s Sidewalk Repair Project (PO‐89003). In the first half of FY 2021, there were 2,400 linear feet of three feet wide valley gutters installed in Barron Park as part of the FY 2020 street resurfacing project. Sidewalk Repairs (PO‐89003)* Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $2,020,661 $848,436 Public Works N/A Recurring Project Status: This project repairs and replaces broken and uplifted sidewalks. The program completed all twenty‐ three sidewalk districts in 2017, a thirty‐year (1986 – 2017) sidewalk repair district cycle. Council approved a sidewalk assessment contract in November 2017 to evaluate the sidewalk program and assess potential improvements to the current district‐based program. Staff used this assessment to compile a list of areas that require prompt action at varying locations throughout Palo Alto. These priority locations were repaired in FY 2020. Funding was reduced in FY 2021 as part of the FY 2021 Capital Improvement Program budget strategy. Remaining funding will be used to perform emergency maintenance and spot repairs. There were no new sidewalk repairs performed in the first half of FY 2021. Sign Reflectivity Upgrade (PO‐11000) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $3,320 $131,400 Public Works N/A Recurring Project Status: This project includes the annual inventorying, upgrading and maintaining of all traffic signs. A list of Streets and Sidewalks Projects Status as of December 2020 * ‐ Projects that were subject to funding reductions in the Fiscal Year 2021‐2025 CIP Streets and Sidewalks Projects – Page 3 of 3 signs not meeting the minimum requirement is derived from MUTCD approved Nighttime Visual Inspection surveys. Due to Covid‐19, there were no new signs identified for reflectivity replacement in the first half of FY 2021. Street Lights Improvements (PO‐05054)* Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $53,029 $156,287 Public Works N/A Recurring Project Status: This project replaces streetlights, including poles, pole foundations, luminaires and wiring as needed to restore or improve street lighting. There were no street light improvements performed in the first half of FY 2021. Street Maintenance (PE‐86070)* Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $5,226,631 $11,055,995 Public Works N/A Recurring Project Status: This project includes the annual resurfacing, micro‐seal, crack seal and reconstruction of various city streets. This project funds the street maintenance work that supports Council’s adopted goal of achieving a citywide average pavement condition index (PCI) score of 85, representing very good or excellent conditions, by 2019. The citywide PCI goal of 85 was met at the end of calendar year 2018, and the emphasis has been shifted to maintaining the 85 score while addressing the remaining streets with PCI scores less than 60. The OBAG2 project resurfaced 3.6 lane miles of roads including Sand Hill Road from London Plane Way to Stock Farm Road during summer and fall 2020. The FY 2020 Street Resurfacing Project that started in summer 2020, overlaid approximately four lane miles of roads. Due to the FY 2021 Capital Improvement Program budget strategy, street resurfacing projects will have reduced scope, resulting in less lane miles of roadways being resurfaced through FY 2023. Thermoplastic Lane Marking and Striping (PO‐11001) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $91,330 $149,794 Public Works N/A Recurring Project Status: This project maintains the thermoplastic markings on roadways. Thermoplastic lane marking and striping is incorporated into annual Pavement Preventive Maintenance Projects. There were no new thermoplastic lane marking and/or striping repairs performed in the first half of FY 2021. Traffic and Transportation Projects Status as of December 2020 * ‐ Projects that were subject to funding reductions in the Fiscal Year 2021‐2025 CIP Traffic and Transportation Projects – Page 1 of 6 One‐Time Projects Charleston Arastradero Corridor Project (PE‐13011) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $11,701,371 $19,554,473 Public Works Design Spring 2022 Project Status: This project is part of the 2014 Council Infrastructure Plan. It will reconfigure the Charleston Arastradero Corridor to provide new landscaped median islands, bulb outs, enhanced bike lanes, traffic signal improvements and new street trees to complement the new lane configurations that were approved for permanent retention. This project will be constructed in three phases. Phase 1 (Arastradero Road between Foothill Expressway to Clemo Avenue) and Phase 2 (Charleston Road from Alma Street to Middlefield Road) were completed in 2020. Phase 3 (Arastradero Road from Los Palos Avenue to El Camino Real, Charleston Road from El Camino Real to Alma Street and from Middlefield Road to San Antonio Road) is expected to go out to bid early 2021 and start construction in spring 2021. Staff is working with Caltrans on obtaining an encroachment permit for the planned improvements at the El Camino intersection. Churchill Avenue Alma Street Railroad Crossing Safety Improvements (PL‐20000) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $5,436,200 Office of Transportation Design Summer 2024 Project Status: This project is a railroad crossing improvement project to enhance safety at the intersection of Churchill Avenue and Alma Street. This crossing was identified for possible funding of hazard elimination and safety improvements through the Federal Section 130 funds. Design includes traffic signal modifications, street lighting improvements, roadway resurfacing, sidewalk realignment and/or widening, drainage improvements, utility relocations and signage and striping. The project is currently in the initial phases of design working on the conceptual plan development. Council approval of concept plan is expected in Fall 2021 after community outreach. Staff is currently working with various stakeholders including but not limited to Caltrain, Caltrans, California Public Utilities Commission for conceptual plan development and approvals. The project design and environmental documentation will be completed by fall 2022. Construction is anticipated to begin in late 2022. Traffic and Transportation Projects Status as of December 2020 * ‐ Projects that were subject to funding reductions in the Fiscal Year 2021‐2025 CIP Traffic and Transportation Projects – Page 2 of 6 Downtown Automated Parking Guidance Systems, Access Controls & Revenue Collection Equipment (PL‐15002) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $138,611 $2,857,335 Office of Transportation Design Spring 2022 Project Status: This project includes design and installation of new downtown parking guidance systems, access controls and revenue collection equipment that will be coordinated with both the Downtown Parking Wayfinding, PL‐15004 project and the 2016 Downtown Parking Management. Staff contracted with Dixon Resources for additional management support in design and procurement for the system installation in the Downtown garages on University Avenue. In fall 2020, Staff released a design build RFP for a camera‐based parking guidance system similarly installed at the new California Avenue Parking Garage. Design and construction are anticipated to start in early 2021. El Camino Real Pedestrian Safety and Streetscape Project (PL‐18000) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $113,422 $6,662,520 Office of Transportation Pre‐Design Winter 2023 Project Status: The El Camino Real Pedestrian Safety and Streetscape Project will install complete streets improvements focused on pedestrian safety at controlled and uncontrolled crosswalks, enhanced bus operations at two existing major transit stops, and new urban design amenities between Stanford Avenue and Sheridan Avenue. The project includes curb extensions, median refuges, median shade trees, pedestrian scale lighting, and potential bus enhancements. A request to rescope the proposed project due to its lack of inclusion of bicycle facilities was submitted to VTA in December 2020. VTA rejected the request and encouraged the City to rescope and submit the project for OBAG Cycle 3 funds. Emergency Vehicle Traffic Signal Preemption System Pilot (PL‐ 19000) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $486,422 $657,500 Palo Alto Fire Department Construction Summer 2021 Project Status: This project will purchase and implement an emergency vehicle preemption system pilot project. The system will integrate with the City’s current traffic signal management system and with the City’s computer‐ aided emergency response dispatch system to provide safer and quicker response times for emergency vehicles. Traffic and Transportation Projects Status as of December 2020 * ‐ Projects that were subject to funding reductions in the Fiscal Year 2021‐2025 CIP Traffic and Transportation Projects – Page 3 of 6 This project began in spring 2020 and staff is working with our CAD and Signal System vendors to prepare the system to turn on. Highway 101 Pedestrian Bicycle Overpass Project (PE‐11011) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $7,182,628 $23,059,354 Public Works Construction Summer 2021 Project Status: This project, part of the 2014 Council Infrastructure Plan, includes the design and construction of a new pedestrian bridge across Highway 101 at Adobe Creek. Council approved a contract with Granite Construction on November 18, 2019. Construction began in January 2020 and is anticipated to be completed by summer 2021. The project started with utility relocations, vegetation removal, and site preparation work. Bridge foundations, columns, and supports and underground utilities relocation are complete. A 140‐foot long prefabricated bridge was installed over Adobe Creek in October 2020. Construction of approach structures on east and west sides of the highway is in progress. The East Approach Structure deck concrete pouring was completed in December 2020. The project is scheduled to be complete in summer 2021. Parking Management and System Implementation (PL‐16002) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $248 $ 1,190,848 Office of Transportation Design Spring 2022 Project Status: This project includes implementation and installation of equipment to implement the outcomes of the paid parking study for downtown, including the Comprehensive Parking Permit and Citation System. Professional Account Management (Duncan) was selected as the City’s service provider for the comprehensive permit and citation management system. System design started in fall 2019, and the base system was launched fall 2020. Quarry Road Improvements and Transit Center Access Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $1,282,050 $6,318,346 Office of Transportation Pre‐Design Fall 2024 Project Status: This project includes the planning, design, and construction of bicycle, pedestrian, and transit access improvements along Quarry Road between El Camino Real and Welch Road, including, but not limited to, upgraded bicycle lanes and crosswalks, innovative intersection treatments for bicyclists, improved access to transit stops, Traffic and Transportation Projects Status as of December 2020 * ‐ Projects that were subject to funding reductions in the Fiscal Year 2021‐2025 CIP Traffic and Transportation Projects – Page 4 of 6 (PL‐16000) roadway for transit access and signal modification. Planning, design, and construction of bicycle lanes and pedestrian improvements between the Palo Alto Transit Center bus depot and the intersection of Quarry Road and El Camino Real, and between El Camino Real and Welch Road have been completed. The next phase of the project will provide for the transit access from the Quarry Road to Transit Center. Currently, the City is revisiting the land ownership and entitlements before proceeding with design of such improvements. Railroad Grade Separation (PL‐17001) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $3,045,765 $13,075,717 Office of Transportation Pre‐Design Fall 2025 Project Status: This project is a community‐based process to advance the railroad grade crossing circulation study and context sensitive solutions study envisioned by the City Council. It will also fund the preparation of a Project Study Report and environmental analysis that will be required for the City to realize its goals of advancing grade separations. This capital project provides funds to perform preliminary engineering design, conduct project related studies and to prepare environmental documents for the project City’s consultant in collaboration with community prepared several conceptual plans for grade separations. In 2019 City Council established the Expanded Community Advisory Panel (XCAP) for reviewing the selected nine alternatives at the three crossing locations (Churchill Avenue, Meadow Drive and Charleston Road) to provide recommendation to the City Council. XCAP is expected to provide their final report to City Council early 2021. After City Council review of XCAP recommendations and direction, staff will work towards developing the engineering design and environmental documents. Recurring Projects Bicycle and Pedestrian Transportation Plan Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $93,346 $1,273,595 Office of Transportation N/A Recurring Project Status: The Neighborhood Traffic Safety and Bicycle Boulevards Phase 1 Project along Amarillo Avenue/Moreno Avenue, and Ross Road was completed in November 2018. Conceptual plans for the Traffic and Transportation Projects Status as of December 2020 * ‐ Projects that were subject to funding reductions in the Fiscal Year 2021‐2025 CIP Traffic and Transportation Projects – Page 5 of 6 Implementation (PL‐04010)* Neighborhood Traffic Safety and Bicycle Boulevards Phase 2 Project along Bryant Street, Maybell Avenue, Stanford Avenue, Park Boulevard, and Wilkie Way were adopted by City Council in 2015. Currently, Phase 2 is on hold at 75% design until a community engagement process is identified to allow for community review in 2020/2021. Community engagement process is delayed due to shift of staff resources to pandemic response. Parking District Implementation (PL‐15003)* Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $36,350 $0 Office of Transportation N/A Recurring Project Status: This project implemented the signage needs of the residential preferential parking program. Phase 1 of the Downtown Residential Preferential Parking Program was implemented in October 2015, Phase 2 was implemented in April 2016, and the program was made permanent in April 2017. The Evergreen Park‐Mayfield RPP program was made permanent in April 2018. The Southgate RPP program was made permanent in October 2019. The Old Palo Alto RPP was made permanent in November 2020. Safe Routes to School (PL‐00026) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $81,185 $651,177 Office of Transportation N/A Recurring Project Status: This project enables the City’s Safe Routes to School program, including school commute planning, encouragement activities, and capital improvements along local and collector streets that may be impacted by school commute activities. The capital improvements include traffic calming devices, enhanced crosswalks, and improved signage along suggested safe routes to school. In FY 2020, traffic calming projects and traffic studies were pursued for locations in need of traffic calming and other safety countermeasures. In FY 2021 and 2022, the CIP will fund the construction of the South Palo Alto Bikeways project, implementing enhanced signage, striping and buffers on East Meadow Drive from Alma to Fabian Way, on Fabian Way from East Meadow Drive to East Charleston Road, and the widening and repaving of the Waverley Bike Path between East Meadow Drive and Charleston Road. Traffic and Transportation Projects Status as of December 2020 * ‐ Projects that were subject to funding reductions in the Fiscal Year 2021‐2025 CIP Traffic and Transportation Projects – Page 6 of 6 Traffic Signal and Intelligent Transportation Systems (PL‐05030)* Prior Years Actuals Current Year Budget Implementing Department Project Phase Project Completion $802,654 $1,172,355 Office of Transportation N/A Recurring Project Status: This project will include design and construction of traffic signals, traffic signal communications networks, detection and data projects for transportation use, and maintenance of the City’s traffic signal Central management system. The project includes the replacement of traffic signal controllers/cabinets, video detection systems, accessible pedestrian buttons, and related field equipment. The new controllers enable additional traffic signal timing strategies and improve the reliability of the City's traffic signals. Design for traffic signal safety and operational improvements at intersection of San Antonio and Charleston are currently in progress. Construction is anticipated to begin in fall 2021. Transportation and Parking Improvements (PL‐12000)* Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $47,320 $471,342 Office of Transportation N/A Recurring Project Status: This project implements miscellaneous neighborhood traffic calming improvements including neighborhood traffic studies and parking improvements. This project also funds the development of grant proposals used to procure funding for future projects. Projects which are currently in progress include the Middlefield North Traffic Safety Project and Crescent Park neighborhood traffic calming pilot. The conceptual plan for traffic calming pilot project in Crescent Park neighborhood was approved by the City Council in November 2020. Design for installation of improvements is currently in progress. Construction is anticipated in summer 2021. Airport Projects Status as of December 2020 * ‐ Projects that were subject to funding reductions in the Fiscal Year 2021‐2025 CIP Airport Projects – Page 1 of 1 One‐Time Projects Airport Apron Reconstruction (AP‐16000) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $23,736,439 $44,573,110 Public Works Construction Summer 2021 Project Status: This project includes the design and reconstruction of the Palo Alto Airport apron and is being implemented in multiple phases. The pavement surfaces at the airport are failing and uneven. The need to reconstruct the aircraft parking apron is critical to airport safety. Construction Phase I was completed in November 2017. Construction Phase II was completed in winter 2020. Construction on Phase III began November 2020 and is expected to be completed in summer 2021. Airport Layout Plan (AP‐21000) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $740,000 Public Works Design Spring 2022 Project Status: This project provides updates to the Airport Layout Plan (ALP), including a narrative report and environmental study. The project is scheduled to start in spring 2021 with an anticipated completion date in summer 2022. Airport Facilities Electrical Improvements (AP‐20000) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $28,533 $146,466 Public Works Construction Winter 2021 Project Status: This project upgrades the outdated electrical panels for the Palo Alto Airport office rental spaces. The project design and building permits were approved in spring 2020. The construction contract was awarded in fall 2020 and construction is scheduled to begin January 2021. Recurring Projects 2019‐2023 – Airport Capital Improvements Program Projects: There are no recurring projects scheduled at this time. Electric Fund Projects Status as of December 2020 * ‐ Projects that were subject to funding reductions in the Fiscal Year 2021‐2025 CIP Electric Fund Projects – Page 1 of 9 One‐Time Projects 230 kV Electric Intertie (EL‐06001) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $578,055 $440,040 Utilities Pre‐Design Summer 2025 Project Status: This project will perform a technical feasibility study to determine the general project requirements to establish a 115 kV electric intertie line and construct a 115/60 kV substation to connect the City's electric system directly to the 15kV transmission line at a new location. Stanford decided they do not want to participate in the project so the 230 kV option is no longer viable. Staff will pursue other options to procure an alternative transmission source to serve Palo Alto. This project will be renamed in the future. Capacitor Bank Installation (EL‐16002) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $247,564 $850,429 Utilities Design Fall 2021 Project Status: This project installs capacitor banks at electric substations and on distribution lines to ensure Northern California Power Association Power Factor requirements are met. Staff has performed an analysis where capacitors are needed to provide VAR support to enhance the voltage regulation and stability of the system. Capacitor banks will be installed at Hanover Avenue, Hansen Way, Quarry Road and Park Boulevard Substations. Progress on the project was delayed due to restrictions posed by COVID‐19 and the installations are now expected to be completed by fall 2021. Coleridge Cowper Tennyson 4/12kV Conversion (EL‐14000)* Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $111879 $129,826 Utilities Design Summer 2022 Project Status: This project converts the primary electric distribution system in the Coleridge, Cowper, Tennyson area from 4 kV to 12 kV. This project is a precursor to work being planned for the Colorado and Hopkins Substations. Design is at 90% completion and is delayed due to COVID‐19 restrictions. Construction of this project is deferred to maintain zero rate increases to ease economic recovery because of COVID‐19. Electric Fund Projects Status as of December 2020 * ‐ Projects that were subject to funding reductions in the Fiscal Year 2021‐2025 CIP Electric Fund Projects – Page 2 of 9 Colorado Power Station Equipment Upgrade (EL‐19001) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $4,049,071 $10,822,313 Utilities Pre‐Design Fall 2024 Project Status: Staff is evaluating the need to replace the COP‐3 115 kV/60 kV transformer bank at Colorado Substation. Future project completion dates will be based on the outcome of this evaluation. Colorado Substation Improvements (EL‐19002) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $1,116,625 $1,396,358 Utilities Pre‐Design Fall 2022 Project Status: This project will make modifications to the substation driveways and fence to provide adequate ingress and egress for utility vehicles used for maintenance and repair. Staff is preparing an overall masterplan for Colorado Substation to include all proposed improvements. Preliminary designs for lighting, driveway, fences, and an oil containment improvement have been prepared. All the proposed improvements need to be incorporated together, to ensure a cohesive design and plan for construction. East Meadow Circles 4/12kV Conversion (EL‐17001)* Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $38,704 $138,701 Utilities Pre‐Design Spring 2022 Project Status: The project converts the primary electric distribution system in the East Charleston/Alma Street/East Meadow Drive/Middlefield Road area from 4 kV to 12 kV and is challenging because of the configuration of the streets and rear easement facilities. Engineering is continuing to work on a design that should be completed spring 2021. Construction of this project is deferred to maintain zero rate increases to ease economic recovery because of COVID‐19. Facility Relocation for Caltrain Modernization Project Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $311,071 $2,037,329 Utilities Construction Fall 2020 Project Status: The Utilities Department received approval from Caltrain to continue removal of the overhead lines in October 2018. The installation of the Overhead Catenary System above the rails to power the trains will cause conflicts with the City's overhead electric and communication lines, as well as those owned by others, Electric Fund Projects Status as of December 2020 * ‐ Projects that were subject to funding reductions in the Fiscal Year 2021‐2025 CIP Electric Fund Projects – Page 3 of 9 (EL‐17007) including AT&T and Comcast, which cross the railroad tracks. In June 2020, Council approved the contract for construction of this project, in conjunction with EL‐19004. All the overhead electric facility crossing the railroad have been raised to meet Caltrain’s requirement, and two fiber crossings are underway to be converted to underground. Foothills Rebuild (Fire Mitigation) (EL‐21001) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $4,000,000 Utilities Design Fall 2022 Project Status: This project will rebuild the approximately 11 miles of overhead line in Foothills Park, as necessary to mitigate the possibility of wildfire due to overhead electric lines. This could include the utilization of more robust equipment or construction practices, rerouting to avoid vegetation and improve access for inspection and maintenance, or converting the overhead lines to underground where feasible. Two proposals were received for this project and both proposals were rejected because they did not provide an option to underground existing overhead electric lines. Staff is currently looking at different options to complete this work. Inter‐Substation Line Protection Relay (EL‐17005) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $329,224 $793,586 Utilities Construction Summer 2022 Project Status: This project replaces the existing HCB pilot wire relays with a new microprocessor line differential protective relay to protect the city’s 60 kV sub‐transmission line sections and equipment from damage due to faults (i.e. short circuits) on the 60 kV line sections. This project is being done is phases, with design and construction happening concurrently on the different phases. Construction of these improvements rely on work completed by other projects to install fiber optic connections. Staff is working on the design for the replacement of relays at Park Substation and Switching Station and between line sections COP‐PB, COP‐AC and COP‐HO. Rebuild Underground Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $43,348 $93,337 Utilities Design Spring 2022 Electric Fund Projects Status as of December 2020 * ‐ Projects that were subject to funding reductions in the Fiscal Year 2021‐2025 CIP Electric Fund Projects – Page 4 of 9 District 15 (EL‐11003)* Project Status: This project rebuilds and replaces the underground electric system in Underground District 15, the area bounded by Los Palos Avenue, Glenbrook Drive, Pomona Avenue, and Arastradero Road. This project is in the preliminary stages of engineering design and work will be coordinated with EL‐16000 which is currently rebuilding the electric system along Arastradero Road. Work on this project was delayed due to public input regarding the design of the project. Changes to the Rules and Regulations will require property owners to pay for the differential cost should they want submersible equipment instead of pad mount. Design of the project is delayed as staff prepares cost information to present to affected property owners showing how much they will have to pay. Construction of this project is also deferred to maintain zero rate increases to ease economic recovery because of COVID‐19. Rebuild Underground District 16 (EL‐13003)* Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $26,340 $384,854 Utilities Design Spring 2022 Project Status: This project rebuilds and replaces the underground electric system in Underground District 16, the area along Louis Road between Greer Street and Loma Verde Avenue. The project design and cost estimate is nearly complete and this project will be bundled with other similar type jobs for bidding to obtain more favorable pricing. Construction of this project is deferred to maintain zero rate increases to ease economic recovery because of COVID‐19. Rebuild Underground District 24 (EL‐10006) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $1,939,102 $525,678 Utilities Construction Spring 2021 Project Status: This project rebuilds and replaces the underground electric system in Underground District 24, the area bounded by Lytton Avenue; Bryant Street; Forest Avenue; and Alma Street. Construction by city staff is approximately 90% completed but is currently slowed due to a shortage of Operations staff and COVID‐19 restrictions. Work is being scheduled with Operations and to accommodate impacted customers as best as possible. Electric Fund Projects Status as of December 2020 * ‐ Projects that were subject to funding reductions in the Fiscal Year 2021‐2025 CIP Electric Fund Projects – Page 5 of 9 Rebuild Underground District 26 (EL‐16000)* Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $12,454 $304,794 Utilities Design Spring 2022 Project Status: This project rebuilds and replaces the underground electric system in Underground District 26 the area along Arastradero Road between El Camino Real and Hillview Avenue. This project is in design and will be designed in conjunction with, and eventually bid with, EL‐11003 which is rebuilding the electric system on Los Palos Avenue, Glenbrook Drive, and Pomona Avenue. This project will be bundled with other similar type jobs for better bid results. Construction of this project is deferred to maintain zero rate increases to ease economic recovery because of COVID‐19. Reconfigure Quarry Feeders (EL‐14005) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $479,186 $632,356 Utilities Construction Winter 2021 Project Status: This project reconfigures how distribution circuits are connected to each substation transformer at Quarry Substation. While phases of this project have been completed in construction, other phases still need to be designed and constructed. Design of the final phase of this project is being estimated and the drawings and job package prepared. Construction has been delayed due to the impact of COVID‐19 restrictions. Smart Grid Technology Installation (EL‐11014) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $873,573 $19,377,391 Utilities Design Fall 2024 Project Status: Council approved proceeding with Advanced Metering Infrastructure (AMI) and associated smart grid investments in December 2018. AMI is a foundational technology that is becoming a standard in the utilities industry and will improve customer experience while enabling CPAU to operate more effectively. An AMI‐based smart grid system will empower customers to more efficiently utilize utility supplies, facilitate customer adoption of distributed energy resources (DER) such as solar photovoltaics (PV) and electric vehicles (EV), and enable the timely detection of water leaks. AMI will also enable CPAU to optimize operations and improve reliability by reducing restoration time for outages. Staff has gone out to bid for procurement of an AMI system and the bids are being evaluated. Electric Fund Projects Status as of December 2020 * ‐ Projects that were subject to funding reductions in the Fiscal Year 2021‐2025 CIP Electric Fund Projects – Page 6 of 9 Substation 60kV Breaker Replacement (EL‐17002) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $351,249 $4,572,619 Utilities Construction Summer 2025 Project Status: This project replaces high voltage circuit breakers that interconnect the nine electric substations and two power switching stations that are reaching the end of their useful life and/or are now underrated for the use. This project is being done is phases, with design and construction happening concurrently on the different phases. Staff completed the construction on the first phase and is working to procure a multi‐year contract with a contractor to complete the design and replacement of the remaining breakers. Substation Physical Security (EL‐16003)* Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $315,791 $3,229,942 Utilities Construction Winter 2025 Project Status: This project installs facilities providing physical protection of electric substations from vandalism and intrusion. A professional services contract was awarded to Burns & McDonnell and the study was completed. Staff continues to implement recommendations from the study each fiscal year. Initial construction for improvements at Hanover Avenue and Hansen Way substations are in progress during fall 2020 and into 2021. Underground District 46 Charleston, El Camino Real (EL‐12001) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $2,370,663 $3,499,955 Utilities Construction Fall 2021 Project Status: This project undergrounds the existing overhead utility systems in the area along the 400 block of West Charleston and El Camino Real. Underground substructures have been installed. A shortage of Operations staff has caused a review and revision of construction plans. Staff has completed 80% of cable and equipment installation and 40% of customer service conversions so far with the remainder to be converted by March 2021. Staff is going back out for re‐bid of 60 kV line reconstruction and installation of steel poles as prior bids were rejected. Electric Fund Projects Status as of December 2020 * ‐ Projects that were subject to funding reductions in the Fiscal Year 2021‐2025 CIP Electric Fund Projects – Page 7 of 9 Underground District 47 Middlefield, Homer, Webster, Addison (EL‐11010) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $3,237,066 $3,350,095 Utilities Completed Summer 2020 Project Status: This project undergrounded the existing overhead distribution system in the area bounded by Middlefield Road, Homer Avenue, Webster Street, and Addison Avenue. Where possible, the overhead electric lines have been removed and poles cut down to the level of the communication lines. The construction of this project was completed in summer 2020. Recurring Projects Communications System Improvements (EL‐89031) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $21,857 $170,000 Utilities N/A Recurring Project Status: This project installs copper wire cable systems, high frequency coaxial cable, fiber optic cable, and related equipment to provide communications services for traffic signal coordination, telephone links, computer data transmission, and the Electric Supervisory Control and Data Acquisition (SCADA) system. This project is funding a portion of the design phase of an expanded Utilities fiber optic network. The contract for design of this network was approved by Council in June 2020 and as of December 2020 the work has not begun yet. Electric Customer Connections (EL‐89028) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $2,975,402 $2,700,000 Utilities N/A Recurring Project Status: This project installs services, transformers, and meters for new customers; upgrading of existing services; temporary service connections; and overhead and underground extensions for new or existing customers. Projects are in many stages of design and construction to provide temporary and permanent power to residential and commercial customers in Palo Alto. These are ongoing electric customer connections each year. Electric Fund Projects Status as of December 2020 * ‐ Projects that were subject to funding reductions in the Fiscal Year 2021‐2025 CIP Electric Fund Projects – Page 8 of 9 Electric System Improvements (EL‐98003) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $1,479,695 $2,504,700 Utilities N/A Recurring Project Status: This project consists of various projects that replace deteriorated facilities or install protective devices that improve the Electric Distribution System. Projects are in many stages of development to replace transformers, replace poles, replace overhead wires, and install protective devices to improve service reliability. This is ongoing electric systems improvements each year. Electric Utility Geographic Information System (EL‐02011) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $32,423 $385,000 Utilities N/A Recurring Project Status: This project enhances the citywide Geographical Information System (GIS). The primary emphasis will be to provide a compatible user interface and estimating software, to edit and update data which will reside in the citywide GIS. This funding is also being used to pay for Utilities Electric Division’s share of cost for the implementation of new city‐wide GIS system (ESRI) led by IT. Staff is also working directly with IT to assess GIS needs and the transition of the mapping information to ESRI. IT has issued contracts and the implementation is underway beginning with converting the existing data model into an ESRI format. SCADA System Upgrades (EL‐02010) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $165,262 $135,000 Utilities N/A Recurring Project Status: This project upgrades the Supervisory Control and Data Acquisition (SCADA) system hardware. Staff completed upgrade of the servers used for monitoring the utility substations and equipment in 2014. Vendor delays due to COVID‐19 restrictions postponed the server upgrade till 2022. Substation Facility Improvements (EL‐89044) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $198,060 $740,000 Utilities N/A Recurring Project Status: This project makes improvements to facilities at the electric substations in Palo Alto. Staff is working on the replacement of Remote Terminal Units (RTU) at various substations, upgrading gravel and Electric Fund Projects Status as of December 2020 * ‐ Projects that were subject to funding reductions in the Fiscal Year 2021‐2025 CIP Electric Fund Projects – Page 9 of 9 grounding, and reconfiguring steel trusses and associated devices. Substation Protection Improvements (EL‐89038) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $279,543 $620,000 Utilities N/A Recurring Project Status: This project makes improvements to equipment used at electric substations to protect the substation equipment and circuits emanating from the substation from damage due to faults (i.e. short circuits) on the electric system. Underground System Rebuild (EL‐16001)* Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $31,908 $350,000 Utilities N/A Recurring Project Status: This project replaces underground electric equipment in areas that were originally installed underground, that are not part of an Underground District. Staff is working to identify areas where the age of the existing cables are a high priority for cable replacement. To date, this includes areas in the Stanford Research Park, Arastradero Road, and along East Bayshore Road. New areas have been identified and progress has been made on development of the project. Construction of this project is deferred to maintain zero rate increases to ease economic recovery because of COVID‐19. Wood Pole Replacement (EL‐19004) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $6,759 $1,896,192 Utilities N/A Recurring Project Status: This project will fund the annual replacement of deteriorated wood power poles. Staff has identified 84 wood poles for the pole replacement contract. In June 2020, Council approved the contract for construction of this project, in conjunction with EL‐17007 ‐ Facility Relocation for Caltrain Modernization and construction is expected to start in July 2020. The current project was completed in November 2020. Staff is working on the next pole replacement package for spring 2021. Fiber Optics Fund Projects Status as of December 2020 * ‐ Projects that were subject to funding reductions in the Fiscal Year 2021‐2025 CIP Fiber Optics Fund Projects – Page 1 of 1 One‐Time Projects Fiber Optic Network System Rebuild (FO‐16000) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $167,849 $1,241,474 Utilities Design Spring 2021 Project Status: This project is for the System Capacity Improvement that rebuilds portions of the "dark" fiber optic network around Palo Alto. The first phase of this project has been constructed. Additional work is being assessed and will be coordinated with the project to expand the Utilities Fiber Optic Network (EL‐89031). Recurring Projects Fiber Optics Customer Connections (FO‐10000) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $54,640 $250,000 Utilities N/A Recurring Project Status: This project enables the installation of fiber optic infrastructure for new service connections. Projects are developed as needed to meet customer requests for leasing of fibers on the Dark Fiber system. Staff have processed and completed fifteen customer connection projects in the first half of FY 2021, in addition to several smaller projects involving existing fiber optic cable connections that were handled directly by Operations staff. The reduced number of projects was impacted by COVID‐19 work restrictions. Fiber Optics Network System Improvements (FO‐10001) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $313,533 $200,000 Utilities N/A Recurring Project Status: This project improves the reliability within the fiber optic network system. A project to install a new fiber optic cable from Park Substation to the Stanford Research Park to enhance capabilities and reliability is identified and waiting for availability of staff to design. The project relies on the fiber project engineer position to be posted in January 2021 in order to complete the work involved. Recruitment was postponed due COVID‐19. Gas Fund Projects Status as of December 2020 * ‐ Projects that were subject to funding reductions in the Fiscal Year 2021‐2025 CIP Gas Fund Projects – Page 1 of 3 One‐Time Projects Gas Main Replacement Project 23 (GS‐13001) * Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $214,201 $8,064,570 Utilities Construction Fall 2021 Project Status: This project enables the design and construction to replace approximately 21,700 linear feet (which represents 1.9% of the City's Gas distribution main system) of distribution main and 320 gas service laterals constructed mainly of PVC material on various streets within the Midtown, Evergreen Park, Ventura, College Terrace, Charleston Terrace, and Research Park neighborhoods. The design was completed in summer 2020 with construction beginning in winter 2021. Gas ABS/Tenite Replacement Project (GS‐18000) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $1,018,807 $2,615,100 Utilities Completed Fall 2020 Project Status: This project replaced gas services laterals constructed of Acrylonitrile‐butadiene‐styrene (ABS) or Tenite material on various streets. In 2020 this project replaced 104 ABS and Tenite gas services. The WQCP ABS gas service is assigned to Utility Operations for replacement and the remaining five ABS gas services will be scheduled for replacement once the five‐year moratorium ends on those streets. As of November 2020, this project is complete. Recurring Projects Gas Distribution System Improvements (GS‐11002) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $122,104 $500,000 Utilities N/A Recurring Project Status: This project enables Gas Distribution System improvements. Typical activities include increasing distribution system capacity for load growth, replacing deteriorated capital facilities, reconfiguring/adding to the system to improve service reliability, and conducting research related to performance of the gas distribution system or its various components making general improvements to the system. The City must continuously evaluate service Gas Fund Projects Status as of December 2020 * ‐ Projects that were subject to funding reductions in the Fiscal Year 2021‐2025 CIP Gas Fund Projects – Page 2 of 3 reliability needs and make improvements to the system to maintain top level service to City customers and to minimize potential economic losses due to service interruptions. In the second half of FY 2021, replacement of the WQCT gas service, replacement of leaking valves, main and service pipe and replacement of emergency gas valves will be upgraded or replaced. Gas Equipment and Tools (GS‐13002) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $209,084 $100,000 Utilities N/A Recurring Project Status: This project purchases polyethylene (PE) fusion equipment and tools, directional boring/locating equipment and tools, and general shop equipment and tools. The equipment needs to be upgraded on an annual basis to safely operate and maintain a natural gas distribution system and to ensure operators’ safety and productivity. The purchase of a new electrofusion machine was completed. Gas Meters and Regulators (GS‐80019) * Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $66,606 $111791 Utilities N/A Recurring Project Status: This project provides replacement of the existing gas meters and regulators annually. The coordination of gas meter and regulator replacements with gas meters identified to be replaced under the AMI contract, which is generally gas meters that are 25 years or older. The gas meter replacement program ensures the accuracy of gas consumption measurement, reduces possible revenue loss due to under‐registered gas, and provides customers with accurate monthly bills. Replacement of aged gas meters and regulators are on‐going. The next major replacement of meters and regulators will be coordinated with Gas Main Replacement Project 23 (GS‐13001) and Advanced Metering Infrastructure project. Gas System, Customer Connections (GS‐80017) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $948,373 $1,082,688 Utilities N/A Recurring Project Status: This project enables the Gas Distribution System to be extended in order to provide gas service to new customers and augment service to customers with increased natural gas demands. Improvements include new mains, Gas Fund Projects Status as of December 2020 * ‐ Projects that were subject to funding reductions in the Fiscal Year 2021‐2025 CIP Gas Fund Projects – Page 3 of 3 services, valves, regulators, meters, and accessories. This project upgrades infrastructure to provide gas service connections to new customers, meet changes in existing customer service demands, and respond to changes in gas service requirements due to new development or redevelopment. This project is funded partially from reimbursements by customers. City crews completed 93 new gas services in the first half of FY 2021. Stormwater Management Projects Status as of December 2020 * ‐ Projects that were subject to funding reductions in the Fiscal Year 2021‐2025 CIP Storm Drain Projects ‐ Page 1 of 2 One‐Time Projects Corporation Way System Upgrades and Pump Station (SD‐21000) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $108 $3,972,333 Public Works Design Fall 2022 Project Status: This project incorporates a design of a new small pump station with 25 cubic feet per second capacity and upgrades 700 linear feet of pipe to 30 inch diameter High Density Polyethylene. The existing system does not have the force needed to discharge storm flows into the Adobe Creek. Adding a pump station in advance of the outfall and upsizing the storm pipe will eliminate the routine flooding along East Bayshore Road and convey runoff from a 10‐year storm event. The design consultant contract was awarded in June 2020. In the first half of FY 2021 the consultant completed the topographic survey, site investigation, developed the Basis of Design and staff communicated with an adjacent property owner to secure an easement for the pump station. The design will be completed in summer 2021. Construction is anticipated to start in early 2022 with project completion by late 2022. Loma Verde Avenue Trunk Line Improvements (SD‐19000) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $104,981 $2,325,945 Public Works Completed Fall 2020 Project Status: This project replaced 1,750 linear feet of storm drain with 48‐inch diameter High Density Polyethylene (HDPE) pipe and associated catch basins, laterals and manholes. This project was dependent on completion of the Matadero Creek Storm Water Pump Station Project, located downstream from Loma Verde Avenue storm drain improvements. The contract was awarded in June 2020, construction work began in August 2020, and was completed in December 2020. West Bayshore Road Pump Station (SD‐20000) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $46,345 $1,774,653 Public Works Design Spring 2024 Project Status: This project incorporates design and construction of a new small pump station with 15 cubic feet per second capacity. Installing a new pump station will allow storm flows to be pumped into the Adobe Barron Creek confluence while adding a pump station in advance of the outfall would eliminate the routine flooding Stormwater Management Projects Status as of December 2020 * ‐ Projects that were subject to funding reductions in the Fiscal Year 2021‐2025 CIP Storm Drain Projects ‐ Page 2 of 2 along West Bayshore Road and allow the system to convey runoff from a 10‐year storm event. The design consultant contract was awarded in June 2020. During the first half of FY 2021, the consultant completed the topographic survey, site investigation, developed the Basis of Design and staff communicated with an adjacent property owner to secure an easement for the pump station. The design will be completed in summer 2021. Construction will start in fall 2023 with project completion in spring 2024. West Bayshore Road Trunk Line Improvements (SD‐23000) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $2401,475 Public Works Design Spring 2024 Project Status: This project replaces approximately 1,400 linear feet of existing 15‐inch diameter pipe with 36‐ inch HDPE pipe. These improvements along with the new West Bayshore Road Pump Station (SD‐20000) will eliminate the routine flooding along West Bayshore Road and allow the system to convey runoff from a 10‐year storm event. The design for the pump station is underway, once the design for the pump station is finalized the consultant can advance the design for the capacity upgrades. The design will be completed by summer 2021. Construction will start in fall 2023 with project completion in spring 2024. Recurring Projects Storm Drainage System Replacement and Rehabilitation (SD‐06101) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $358,817 $2,441,803 Public Works N/A Recurring Project Status: This project provides for annual replacement and rehabilitation to maintain the integrity of the storm drain system, including deteriorated storm drain piping, manholes, and storm drain inlets. The design for the rehabilitation of an existing concrete box culvert located over Oregon Expressway was completed in 2019. The construction contract was awarded in fall 2020. The rehabilitation includes site clean‐up, filling in existing surface cracks and coating the structure with reinforced fiber polymer for structural support. In addition, sixty‐ two linear feet of the existing broken 12‐inch concrete pipe and forty‐two linear feet of existing broken 15‐inch concrete pipe were replaced with 12‐inch HDPE and 15‐inch HDPE. The rehabilitation work was completed in December 2020. Wastewater Collection Fund Projects Status as of December 2020 * ‐ Projects that were subject to funding reductions in the Fiscal Year 2021‐2025 CIP Wastewater Collection Fund Projects – Page 1 of 2 One‐Time Projects Wastewater Collection System Rehabilitation Augmentation Project 29 (WC‐16001) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $767,485 $2,267495 Utilities Completed Fall 2020 Project Status: This project replaced of 8,972 linear feet of wastewater mains. The sanitary sewer mains, laterals, and manholes to be rehabilitated or replaced in this project where located in the Charleston Meadows neighborhood. Construction started in February 2020 and was suspended for almost 3 months due to COVID‐19 County’s Shelter‐in‐Place Order. The project is complete as of December 2020. Wastewater Collection System Rehabilitation Augmentation Project 30 (WC‐17001)* Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $42,317 $6,180,000 Utilities Design Summer 2022 Project Status: This project includes the design and construction of high priority main and lateral replacement work, which reduces inflow of rainfall and groundwater into the collection system. The wastewater mains on various streets in the City, including Ventura, Charleston Meadows, and Research Park neighborhoods will be replaced. Recurring Projects Sewer Lateral/Manhole Rehabilitation and Replacement (WC‐99013) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $0 $876,000 Utilities N/A Recurring Project Status: This project replaces defective sewer laterals, cleanouts, manholes, backwater devices, and equipment to support these activities to maintain the Wastewater Collection System. Information collected during routine annual maintenance activities is used to prioritize work. The continued work performed will help reduce both the backflow of sewage onto private property and the City's treatment expenses. Sewer System, Customer Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $345,290 $420,000 Utilities N/A Recurring Wastewater Collection Fund Projects Status as of December 2020 * ‐ Projects that were subject to funding reductions in the Fiscal Year 2021‐2025 CIP Wastewater Collection Fund Projects – Page 2 of 2 Connections (WC‐80020) Project Status: This project installs sewer lateral connections and additions or extensions of existing mains to serve new customers and to respond to changes in sewer requirements due to redevelopment. Old existing non‐plastic sewer laterals with condition deficiencies per Utilities Operations’ criteria are required to be replaced. This project generates revenue through customer connection fees and capacity increase fees for connecting to the wastewater collection system. Wastewater General Equipment and Tools (WC‐13002) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $22,345 $185,000 Utilities N/A Recurring Project Status: This project includes the acquisition of new fusion equipment and other associated tools. The equipment is used to fuse together pipe joints in the City's wastewater collection system. As the equipment ages, the quality of the fusion joints begins to decline, and the operators must spend more time scraping, aligning, and fusing construction joints to maintain a high quality of standards for the installation of City's wastewater collection mains, along with the associated service standards and worker safety and productivity measures, equipment and tools require continuous upgrades. There have been no new equipment purchases in the first of half of FY 2021, however in spring 2021, the transporter will be replaced for the wastewater CCTV camera to accommodate ongoing operations and maintenance activities. Wastewater System Improvements (WC‐15002) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $53,585 $200,000 Utilities N/A Recurring Project Status: This project implements improvements to the Wastewater Collection System by increasing system capacity for growth, flow monitoring, hydraulic modeling and system analysis, load simulations, asset management analysis and assessment, system inflow/infiltration analysis, and sanitary sewer overflow monitoring and reduction. Mainline sewer backups and overflows into homes and businesses are costly and create a health risk. Reducing the losses associated with these backup claims requires a continuous evaluation of system needs and making improvements to maintain a high level of service. Replacement of the City’s legacy wastewater maintenance and asset management software (ICOM) will be completed by February 2021. Wastewater Treatment Fund Projects Status as of December 2020 * ‐ Projects that were subject to funding reductions in the Fiscal Year 2021‐2025 CIP Wastewater Treatment Fund Projects – Page 1 of 3 One‐Time Projects Advanced Water Purification Facility (WQ‐19003) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $26,780,988 Public Works Design Spring 2024 Project Status: This project enables the design and construction of an Advanced Water Purification Facility to further improve the quality of the tertiary‐treated recycled water by ultrafiltration or ultrafiltration followed by reverse osmosis to reduce the level of total dissolved solids. The water reuse partnership agreement with Valley Water and Mountain View provides $16 million in funding from Valley Water for this project. The design contract will be brought to Council in January 2021 for approval. Pending approval by Council, the design is expected to be completed in FY 2022 with project construction completed in FY 2024. New Laboratory and Environmental Services Building (WQ‐14002) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $324,422 $24,191,994 Public Works Design Fall 2027 Project Status: This project was originally envisioned to replace the existing plant laboratory and environmental services offices. A design consultant completed preliminary design in early 2020. Staff are currently revising space planning assumptions and have put further design efforts on hold until more advanced planning can be completed. Outfall Line Construction (WQ‐19000) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $8,926,000 Public Works Design Summer 2023 Project Status: This project consists of the construction of a new parallel outfall pipe to convey final plant effluent to San Francisco Bay. Design is complete, with all permits in hand. Staff is currently working with PAO / FAA staff towards gaining FAA concurrence for the project. FAA final review is expected by end of 2020. The City is expecting a State low‐interest loan for the design and construction phase. Plant Master Plan Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $3,723,184 $3,723,184 Public Works Construction Fall 2022 Wastewater Treatment Fund Projects Status as of December 2020 * ‐ Projects that were subject to funding reductions in the Fiscal Year 2021‐2025 CIP Wastewater Treatment Fund Projects – Page 2 of 3 (WQ‐10001) Project Status: This project enables the ongoing program management support for major capital projects. Current tasks include developing scopes of work, evaluating consultant proposals, coordinating project management activities, pursuing State low‐interest loans for multiple projects, and updating partner agreements. The consultant continues to provide support for the projects associated with the Long Range Facilities Plan (LRFP). Primary Sedimentation Tank Rehabilitation (WQ‐14003) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $738,257 $20,681,849 Public Works Construction Fall 2023 Project Status: This project enables the design and construction for new protective coatings on each of the four concrete primary sedimentation tanks, replacement of worn rotating parts and mechanical and electrical equipment. These tanks were installed in 1972 and the recoating project will extend the concrete life for another 30 years. Design was completed in fall 2019 and the construction phase is in the award process. The City is expecting a State low‐interest loan for the design and construction cost of the project. The approval of a construction contract, amended agreements with partner agencies, and State loan is scheduled for Council approval in early 2021. Secondary Treatment Upgrades (WQ‐19001) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $945,894 $32,831,979 Public Works Design Spring 2026 Project Status: This project upgrades the Secondary Treatment process at the Regional Water Quality Control Plant. The existing Secondary Treatment process has two main components; the Fixed Film Reactors (FFR) and the Activated Sludge (AS) Process. This project includes the reconstruction of the AS process, rehabilitation of the AS Aeration Basins, and the elimination of the FFRs. The design contract began in October 2018. Staff is pursuing a State low‐interest loan or bond, as well as a USEPA low‐interest loan for the construction phase. The project design is at 60% , with a complete design expected by late spring 2021. Construction is expected to start in winter 2023. Wastewater Treatment Fund Projects Status as of December 2020 * ‐ Projects that were subject to funding reductions in the Fiscal Year 2021‐2025 CIP Wastewater Treatment Fund Projects – Page 3 of 3 Recurring Projects Plant Repair, Retrofit and Equipment Replacement (WQ‐19002) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $760,983 $7,332,834 Public Works N/A Recurring Project Status: This project enables the assessment, repair, and retrofit of the Plant's concrete and metal structures; the replacement of necessary Plant equipment and ancillary facilities, including electrical equipment/systems, to maintain treatment reliability and existing infrastructure; and the replacement of large diameter flow meters built into the wastewater treatment system on sewers, pipes, and water lines. Current projects include the design of the 12kV Electrical Loop Upgrade Project, that is 60% completed and construction of the Secondary Clarifier Nos. 4 and 6 Mechanism Replacement project. The replacement of Clarifier No.4 mechanism, was completed in October 2020 and replacement of Clarifier No. 6 mechanism is scheduled for completion in spring 2021. Water Fund Projects Status as of December 2020 * ‐ Projects that were subject to funding reductions in the Fiscal Year 2021‐2025 CIP Water Fund Projects – Page 1 of 5 One‐Time Projects Mayfield Reservoir Subgrade and Venting Repair (WS‐19000) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $36,747 $368,142 Utilities Completed Fall 2020 Project Status: This project repaired part of the City’s recent Seismic Upgrade and Emergency Water Supply and Storage system. The Mayfield reservoir was drained in 2012 for approximately two years to allow extensive seismic rehabilitation work to be performed and construction of a new pump station. Subsequently hairline cracks were sealed in the reservoir. A geotechnical consultant was hired to evaluate the tank foundation. This study was completed and there were several options identified. Staff has completed the design and construction of the vent screen replacement along with crack sealing. Water Main Replacement Project 28 (WS‐14001) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $22,591 $ 9,062,516 Utilities Design Winter 2021 Project Status: This project will replace approximately 14,985 linear feet (which represents 1.2% of the City's water distribution system) of mains and services on various streets within the City, including areas in the Duveneck, St. Francis, Barron Park and Charleston Meadows neighborhoods. The design will be completed in winter 2021 with construction anticipated to start in summer 2021. Water Recycling Facilities (WS‐07001)* Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $ 710,106 $ 852,697 Utilities Pre‐Design Fall 2023 Project Status: This project allows the City to hire a consultant to prepare a business plan, prepare preliminary design, and secure funding options for an expansion of the existing recycled water delivery system in the City. The pipeline will primarily serve the Stanford Research Park and provide an alternative supply source of 435,600 cubic feet per year, roughly 10% of Palo Alto’s total water consumption in 2015. The environmental impact report was completed in September 2015. The expansion pipeline is one of several water reuse projects being considered in the Northwest County Recycled Water Strategic Plan. This, or one of the other projects, may be recommended to Council for design and construction. The earliest that work would commence is in FY 2022. Water Fund Projects Status as of December 2020 * ‐ Projects that were subject to funding reductions in the Fiscal Year 2021‐2025 CIP Water Fund Projects – Page 2 of 5 Water Regulation Station Improvements (WS‐07000)* Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $ 1,591,817 $2,104,292 Utilities Pre‐Design Spring 2021 Project Status: This project for Water Regulation Station Improvements includes seismic upgrades, piping improvements and other various upgrades to increase the structural reliability of three of the City’s turnouts with SFPUC. Work under this project was included in the Seismic Upgrade of four Steel Tanks and three Turnouts’ Project and the project was completed and closed out. Due to multiple existing issues at the California Turnout, upgrade work at this facility has been removed from the contract. Structural evaluation for restraining the Page Mill PRV and piping will start in winter 2021. Water Tank Seismic Water System Upgrades (WS‐09000) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $ 3,789,650 $ 15,629,679 Utilities Design Summer 2022 Project Status: This project for Seismic Water System Upgrades includes seismic upgrades at the Montebello, Mayfield, Corte Madera, Park, Boronda, and Dahl Reservoirs in compliance with the American Society of Civil Engineers (ASCE 7) seismic codes. Work at the steel tank sites includes the installation of new concrete footings, anchor chairs and tie‐downs, installation of seismic shut off valves and control valves, flexible joints at the inlet/outlet piping connections, relocation of various inlet and outlet piping, backup power supplies, and reinforcement and/or replacement of interior tank columns. Seismic upgrade work at the Mayfield Reservoir was completed in summer 2013 and work on the Boronda Reservoir was completed in summer 2016. Corte Madera Reservoir is scheduled to be replaced in FY 2021/2022. The design of the tank is anticipated to begin in spring 2021 and construction will start in summer 2021. A financial study of Dahl and Park Reservoir upgrade options is being performed. Water Fund Projects Status as of December 2020 * ‐ Projects that were subject to funding reductions in the Fiscal Year 2021‐2025 CIP Water Fund Projects – Page 3 of 5 Recurring Projects Water Distribution System Improvements (WS‐11003) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $194,090 $269,469 Utilities N/A Recurring Project Status: This project enables improvements to water distribution system deliverability and reliability. Typical activities include installing restraining joints at critical pipelines and bridge crossings, increasing the size of inadequate facilities, system leakage surveys, network modeling, and fire flow studies or other system improvements as required. Continuous evaluation of system needs and making required improvements is necessary to maintain adequate quantities of quality water, meeting local, state, and federal safe drinking water standards. During the last six months the Mayfield Reservoir variable frequency drive (VFD) replacement and back‐up controls were completed. El Camino Pump Station pump programming was completed and tested to add the capability for the El Camino Reservoir to pump into zone 1 in addition to zone 2. The 18” concrete cylinder pipe (CCP) repair and valve installation on Page Mill Road was completed in fall 2020. Staff continues the asbestos cement pipe (ACP) study and is in the process of collecting pipe samples. Water, Gas, Wastewater Utility GIS Data (WS‐02014) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $255,148 $905,862 Utilities N/A Recurring Project Status: This project enables contracts related to Utilities GIS (Geographic Information System) needs. AME database is heavily utilized by Utilities Engineering staff to update the utility information in GIS. The updated information is used by various City staff, such as marking/locating underground utilities to comply with USA (Underground Service Alert) requirements; developing design drawings for pipeline replacement projects; verifying existing underground utilities during construction activities; creating customized utility map books for field crews and on‐call personnel to meet their specific needs. Annual surveying contracts to collect GPS points of existing above‐ground utility features within the CIP project areas. The data being collected continues to be used to correct the GIS database. Accurate utility data helps the design of new pipe alignment to minimize construction conflicts, create synchronization and user interface between the upcoming Citywide ESRI GIS database and Utilities AME database. Water Fund Projects Status as of December 2020 * ‐ Projects that were subject to funding reductions in the Fiscal Year 2021‐2025 CIP Water Fund Projects – Page 4 of 5 Water General Equipment/Tools (WS‐13002) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $3,025 $ 50,000 Utilities N/A Recurring Project Status: This project acquires new equipment and tools, the replacement of existing fusion equipment, and other associated tools. The fusion equipment is used to fuse together pipe joints in the City's water distribution system. Equipment and tools are required to be upgraded on an annual basis to maintain high quality standards for the installation of the City's water distribution mains, along with the associated service standards and worker safety and productivity measures. Staff have not purchased any equipment or tools in the first half of FY 2021. Water Meters (WS‐80015)* Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $96,105 $530,450 Utilities N/A Recurring Project Status: This project enables the purchasing of meters for new customers, upgrading meters for current customers, installing meter bypasses, and replacing obsolete meters that are no longer repairable. This funding also allows for annual testing and calibration of selected meters to maintain meter accuracy and reliability. During the AMI implementation process approximately 50% of the meters will be replaced. Water Service Hydrant Replacement (WS‐80014) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $134,008 $400,000 Utilities N/A Recurring Project Status: This project replaces system control valves, deteriorated galvanized service lines, lead goosenecks, and fire hydrant valves and assemblies per the Fire Department’s flow testing, upgrades fire hydrants in main line replacement project areas, and replaces existing undersized or deteriorated copper water services. Water System Customer Connections Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $947,918 $ 850,000 Utilities N/A Recurring Project Status: This project allows for improvements that include new main extensions, valves, domestic Water Fund Projects Status as of December 2020 * ‐ Projects that were subject to funding reductions in the Fiscal Year 2021‐2025 CIP Water Fund Projects – Page 5 of 5 (WS‐80013) services, meters on upgraded services, backflow devices, fire services, and fire hydrants. System extensions are required to provide service to new large developments and to serve existing customers requesting expanded service. Water System Supply Improvements (WS‐11004) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $153,316 $749,469 Utilities N/A Recurring Project Status: This project evaluates and improves the City’s water distribution system on an as‐needed basis. This project includes piping modifications, equipment replacements associated with water delivery, supervisory control software upgrades, system modifications for water system quality compliance, conditional assessment of the reliability of transmission mains, and security system installations. The water system includes the connection facilities between the City’s and the San Francisco Public Utility Commission’s pipelines, emergency water wells within the City, pumping stations, water reservoirs, and pipelines. Staff is working to procure SCADA controller upgrades for the water facilities throughout the City. List of Completed Projects CIP #Project Name Project Description Project Type Fund Source Department Season Completed Year Completed Total Project Budget ** PE‐18000 New California Avenue Area Parking Garage This project built the California Avenue Area Parking Garage, as part of the 2014 Council Infrastructure Plan. The parking garage has 627 parking spaces with 2 basement levels and 4 above grade floors. The garage features an automated parking space guidance system, EV charging stations, bicycle parking, and motorcycle parking. The garage was opened to the public on December 8, 2020. Construction Buildings and Facilities Public Works Fall 2020 $ 50,119,976 PF‐14002 Fire Station 1 Improvements This project updated the individual sleeping quarters in the firehouse to address gender issues and privacy concerns. Fire Station #1 was the only fire station in the City that did not have separate bedrooms to accommodate male and female firefighters. This project was completed in fall 2020. Construction Buildings and Facilities Public Works Fall 2020 $ 187,064 PE‐17010 Civic Center Electrical Upgrade & EV Charger Installation This project installed EV chargers to existing downtown garages and replaced the aging Civic Center electrical switchgear and motor control centers. Another part of the project is to install 13 dual head level 2 chargers in City parking garages. Five new dual head EV chargers were installed in the Civic Center garage. Two new dual head EV chargers were installed in the Bryant Street garage. Six new dual head EV chargers were installed at the Webster Street garage. EV charger construction was completed by December 31, 2020. Construction Buildings and Facilities Public Works Fall 2020 1,173,710$ GS‐18000 Gas ABS/Tenite Replacement Project This project replaced gas services laterals constructed of Acrylonitrile‐ butadiene‐styrene (ABS) or Tenite material on various streets. Council approved funding in June 2019. The project replaced 104 ABS and Tenite gas services. The WQCP ABS gas service is assigned to Utility Operations for replacement and the remaining five ABS gas services will be scheduled for replacement once the five‐year moratorium ends on those streets. As of November 2020, this project is complete. Construction Gas Utilities Fall 2020 $ 2,615,100 SD‐19000 Loma Verde Avenue Trunk Line Improvements This project replaced 1,750 linear feet of storm drain with 48‐inch diameter High Density Polyethylene (HDPE) pipe and associated catch basins, laterals and manholes. In addition to underground work, additional street restoration and concrete work was completed. Work includes resurfacing one full lane on Loma Verde from the beginning to the end of the project limits, replacement of driveways, sidewalk, and 718 linear feet of curb and gutter. The contract was awarded in June 2020, construction work began in August 2020, and was completed in December 2020. Construction Storm Drain Utilities Fall 2020 $ 2,976,813 WS‐19000 Mayfield Reservoir Subgrade and Venting Repair This project is part of the City s recent Seismic Upgrade and Emergency Water Supply and Storage Projects. The reservoir was drained in 2012 for approximately two years to allow extensive seismic rehabilitation work to be performed and construction of a new pump station. Subsequently hairline cracks were sealed in the reservoir. A geotechnical consultant was hired to evaluate the tank foundation. This study was completed and there were several options identified. Staff has completed the design and construction of the vent screen replacement and crack sealing Construction Water Utilities Fall 2020 $ 600,000 1 List of Completed Projects CIP #Project Name Project Description Project Type Fund Source Department Season Completed Year Completed Total Project Budget ** EL‐11010 Underground District 47 Middlefield, Homer, Webster, Addison This project undergrounded the existing overhead distribution system in the area bounded by Middlefield Road, Homer Avenue, Webster Street, and Addison Avenue. Installation of substructures and utility electric system is completed. Where possible, the overhead electric lines were removed and poles cut down to the level of the communication lines. Construction Electric Utilities Fall 2020 $ 3,649,356 WC‐16001 Wastewater Collection System Rehabilitation Augmentation Project 29 This project replaced of 8,972 linear feet of wastewater mains. The sanitary sewer mains, laterals, and manholes to be rehabilitated or replaced in this project are located in the Charleston Meadows neighborhood. Construction started in February 2020 and was suspended for almost 3 months due to COVID‐ 19 County’s Shelter‐in‐Place Order. The project is complete as of December 2020. Construction Wastewater Collection Utilities Fall 2020 $ 4,434,839 PF‐18000 Parking Lot J Elevator Modernization This project modernized the existing elevators at parking Lot J. The project involves upgrading the interior of the elevators, elevator control interface, call buttons, and meeting current ADA standards. Construction started in April 2019. Project is complete except for the State final inspection on the second car. State is behind because of COVID, but the inspection should be done by the end of July 2020. Construction Buildings and Facilities Public Works Spring 2020 $ 781,324 PE‐15003 Fire Station 3 Replacement This project replaced the existing Fire Station at Embarcadero Road and Newell Road with a new structure that meets essential services standards and current program needs. Construction completed in March 2020. Construction Buildings and Facilities Public Works Winter 2020 $ 10,080,258 WS‐08001 Water Reservoir Coating Improvements This project included the recoating of four steel tanks. Work under this project was included in the Seismic Upgrade of four Steel Tanks and the three Turnout Projects. Once construction started, it was found that the Montebello Reservoir was in very poor condition. Due to escalating costs associated with roof replacement, staff decided to complete construction of the Montebello Reservoir and re‐evaluate the remaining three tanks for replacement. Construction Water Utilities Spring 2020 $ 2,141,172 WS‐13001 Water Main Replacement ‐ Project 27 This project replaced approximately 9,600 linear feet of structurally deficient, aging, or corroded water mains and services along the mains on Sand Hill Road, Oak Creek Drive (5%) and Fulton Avenue. Construction Water Utilities Spring 2020 $ 7,786,998 2 List of Completed Projects CIP #Project Name Project Description Project Type Fund Source Department Season Completed Year Completed Total Project Budget ** WC‐15001 Wastewater Collection System Rehabilitation Augmentation Project 28 This project enabled the design and construction of a high priority wastewater main and lateral replacement work to reduce inflow of rainfall and ground water into the collection system. The project replaced or rehabbed a total of 7,655 linear feet of wastewater mains located in the Leland Manor/Garland, Midtown West, and Lower Page Mill/Los Altos Hills areas of the City. Construction Wastewater Collection Utilities Spring 2020 $ 5,665,897 EL‐17003 VA Hospital ‐ Customer Load Requirements This project met the growing electric needs of the VA Hospital. Staff has had numerous discussions with VA Hospital on electric load growth at the hospital and anticipated needs from the utility. Much of the cost is reimbursed to the City by the VA Hospital. Staff has prepared preliminary designs for interim solutions and is awaiting additional information from VA to develop long range plans to meet their future needs. Design Electric Utilities Spring 2020 $ 84,984 EL‐04012 Utility Site Security Improvements This project added electronic security systems at utility sites to protect equipment at electric substations, water pumping plants, reservoirs, and gas stations from intrusion and vandalism. Cameras and detection systems have been installed at nine electric substations, three water stations, and one natural gas station to monitor facilities. Construction Electric Utilities Spring 2020 $ 1,644,681 EL‐11008 Rebuild Underground District 19 This project rebuilt and replaced the underground electric system in Underground District 19, the area bounded by Forest Avenue, Waverley Street, Addison Avenue, and Alma Street. Construction Electric Utilities Spring 2020 $ 149,023 FD‐18000 Self Contained Breathing Apparatus Replacement This project replaced Self Contained Breathing Apparatus equipment (SCBA) used by firefighters when entering hazardous conditions when responding to fire and hazardous materials incidents. The SCBA provides breathable air for firefighters when entering environments where the atmosphere is immediately dangerous to life or health. The expected service life for SCBAs is 15 years. Purchase Buildings and Facilities Fire Department Spring 2020 $ 799,999 FD‐20000 Cardiac Monitor Replacement This project replaced the entire complement of twenty cardiac monitors in the Department. Along with other tools needed for patient assessment and airway verification, cardiac monitors assess cardiac activity in patients and provide defibrillation and pacing. Purchase Buildings and Facilities Fire Department Spring 2020 $ 850,000 3 List of Completed Projects CIP #Project Name Project Description Project Type Fund Source Department Season Completed Year Completed Total Project Budget ** PL‐16001 Downtown Mobility and Safety Improvements This project included the construction of curb extensions and the installation of new pedestrian signal heads and traffic signal modifications in 2019 as part of the Upgrade Downtown project. Construction Traffic and Transportation Office of Transportation Fall 2019 $ 1,819,847 FD‐20002 Thermal Imaging Cameras Replacement This project replaced the Thermal Imaging Cameras (TICs) on all fire and response vehicles used to help identify the location of victims; assess the source of fires, smoke, and heat; to assist in creating a plan of action. Purchase Buildings and Facilities Fire Department Fall 2019 $ 99,000 WC‐11000 Wastewater Collection System Rehabilitation Augmentation Project 24 This project addressed areas that were identified in Wastewater Capital Improvement Project 17 (Cleaning and Video Inspection of the Collection System) as needing rehabilitation. This project was combined with Project 25 and 26(WC‐12001; WC‐13001). Construction Wastewater Collection Utilities Fall 2019 $ 3,131,595 WC‐13001 Wastewater Collection System Rehabilitation Augmentation Project 26 This project was combined with Project 24 and 25(WC‐11001; WC‐12001). All new service laterals were installed from the new sewer main to the new sewer cleanouts located in the City’s right‐of‐way. Construction Wastewater Collection Utilities Fall 2019 $ 3,309,998 CB‐19000 Cubberley Track and Field Replacement This project replaced the synthetic turf field, installed an all‐weather track and a fitness area.Construction Parks and Open Space Public Works Fall 2019 $ 1,851,708 PE‐14018 Baylands Boardwalk Improvements This project replaced the existing boardwalk with similar alignment and configuration. Construction Buildings and Facilities Public Works Winter 2019 2,123,681$ PE‐17009 City Hall Floor 4 Remodel This project improved the Administrative Services Department offices on the fourth floor of City Hall.Construction Buildings and Facilities Public Works Winter 2019 494,818$ PE‐14015 Lucie Stern Buildings Mechanical and Electrical Upgrades This project replaced and upgraded the mechanical, electrical, and fire/life safety systems at Lucie Stern Children’s Theater, Lucie Stern Community Theater, and Lucie Stern Community Center. Construction Buildings and Facilities Public Works Spring 2019 6,142,607$ PL‐16000 Quarry Road Improvements and Transit Center Access This project included planning, design and construction of bicycle and pedestrian improvements along Quarry Road.Construction Traffic and Transportation Planning and Community Environment Spring 2019 5,148,378$ EL‐17008 Utility Control Center Upgrades This project upgraded the Utility Control Center working environment. Construction Electric Utilities Winter 2019 499,997$ GS‐12001 Gas Main Replacement Project 22 This project replaced approximately 23,700 linear feet of gas mains and services along University Avenue and other streets in the Downtown North nieghborhood. Construction Gas Utilities Spring 2019 11,658,997$ 4 List of Completed Projects CIP #Project Name Project Description Project Type Fund Source Department Season Completed Year Completed Total Project Budget ** WC‐12001 Wastewater Collection System Rehabilitation / Augmentation Project 25 This project was combined with Project 24 and 26 (WC‐11001; WC‐13001) replacing 45,294 linear feet of sanitary sewer mains in university South, Professorville and Old palo Alto neigborhoods. Construction Wastewater Collection Utilities Spring 2019 3,211,998$ WQ‐14001 Dewatering and Loadout Facility This project provides funding for the design and construction of the sludge dewatering facility and truck loadout to retire existing dewatering and sewage sludge incinerators. Construction Wastewater Treatment Public Works Spring 2019 27,497,551$ WS‐12001 Water Main Replacement – Project 26 This project replaced approximately 11,000 linear feet of aging water mains and services which included water main replacement as part of the Upgrade Downtown Project. Construction Water Utilities Spring 2019 7,506,161$ PE‐17009 City Hall Floor 5 Remodel This project improved the Planning and Community Environment (PCE) Department offices on the fifth floor of City Hall. Construction Buildings and Facilities Public Works Summer 2018 525,000$ AC‐14001 Baylands Nature Interpretive Center Exhibit Improvements This project replaced worn out or non‐functioning exhibits at the Baylands Nature Interpretive Center.Construction Buildings and Facilities Community Services Summer 2018 56,000$ PE‐17000 Mitchell Park Adobe Creek Bridge Replacement This project replaced the existing bridge over Adobe Creek in Mitchell Park. Construction Parks and Open Space Public Works Summer 2018 250,000$ PD‐14000 Internal Alarm System Replacement This project replaced the citywide system of panic alarms from various departments and the Council chambers.Construction Buildings and Facilities Police Summer 2018 78,000$ EL‐14004 Maybell 1&2 4/12kV Conversion This project converted circuits 1 & 2 at Maybell substation from 4kV to 12kV. Construction Electric Utilities Fall 2018 364,796$ GS‐15001 Security at City Gas Receiving Stations This project equiped the City’s four Gas Receiving Stations with video surveillance systems. Construction Gas Utilities Summer 2018 150,000$ SD‐13003 Matadero Creek Storm Water Pump Station and Trunk Line Improvements This project upgraded the capacity to the Matadero Creek Storm Water Pump Station, which serves a low‐lying 1200‐acre area of southeastern Palo Alto. Construction Storm Drain Public Works Summer 2018 6,685,317$ AP‐16002 Wildlife Hazard Management Plan The Wildlife hazard Management Plan identified the specific actions the airport will take to mitigate the risk of wildlife strikes on or near the airport.Study Airport Public Works Summer 2018 63,415$ 5 List of Completed Projects CIP #Project Name Project Description Project Type Fund Source Department Season Completed Year Completed Total Project Budget ** WC‐14001 Wastewater Collection System Rehabilitation Augmentation Project 27 This project replaced 16,859 linear feet of sanitary sewer mains of various sizes on various streets.Construction Wastewater Collection Utilities Winter 2018 4,022,455$ PG‐15000 Buckeye Creek Hydrology Study This project analyzed flooding conditions and recommended flood control structures and drainage and erosion control solutions for the creek located within Foothills Park. Study Parks and Open Space Public Works Spring 2018 167,741$ PE‐17004 CalTrain Corridor Video Management System Installation This project replaced two existing gateway signs in the right‐of‐way for the California Avenue business district. Construction Streets and Sidewalks Public Works Spring 2018 1,550,000$ PF‐16003 Parking Lot Q Elevator Modernization This project modernized the existing elevator at Parking Lot Q.Construction Buildings and Facilities Public Works Fall 2017 170,608$ PE‐13003 Parks, Trails, Open Space, and Recreation Master Plan This master plan provided guidance on the recreation and improvement needs for Palo Alto’s parks, trails, open space and recreational programs. Study Parks and Open Space Community Services Fall 2017 627,057$ PE‐12003 Rinconada Park Master Plan This project developed a plan for short, medium and long range improvements to the regional park including the consideration of pathways, new restrooms and playgrounds, new landscaping, and revitalization of underutilized areas within the park. Study Parks and Open Space Community Services Fall 2017 541,355$ PE‐13012 Structural Assessment of City Bridges The project developed an inventory of all City‐owned bridges and culvert structures, condition assessment, cost estimate for rehabilitation, and recommendation for future inspection frequencies, assessment and improvements. Study Buildings and Facilities Public Works Fall 2017 198,529$ WC‐11000 Wastewater Collection System Rehabilitation / Augmentation Project 24 Combined with Project 25 and 26 (WC‐12001; WC‐13001), this project replaced and/or rehabilitated approximately 42,398 linear feet of sanitary sewer mains of various sizes, 779 sewer laterals, and 121 sewer manholes. Construction Wastewater Collection Utilities Fall 2017 3,119,806$ WC‐13001 Wastewater Collection System Rehabilitation / Augmentation Project 26 Combined with Project 25 and 26 (WC‐12001; WC‐13001), this project replaced and/or rehabilitated approximately 42,398 linear feet of sanitary sewer mains of various sizes, 779 sewer laterals, and 121 sewer manholes. Construction Wastewater Collection Utilities Fall 2017 3,361,118$ PG‐13003 Golf Reconfiguration and Baylands Athletic Center Improvements This project completed the rehabilitation of the Palo Alto Municipal Golf Course, including a new layout for the course, new prefabricated restroom, new water‐saving turf and irrigation system, and rebranded the course as the Baylands Golf Links. Construction Parks and Open Space Public Works Fall 2017 13,675,177$ 6 List of Completed Projects CIP #Project Name Project Description Project Type Fund Source Department Season Completed Year Completed Total Project Budget ** GS‐11000 Gas Main Replacement – Project 21 This project combined with GWR 19B & GMR 20 and replaced ABS gas mains and services. Construction Gas Utilities Winter 2017 2,364,937$ WS‐11000 Water Main Replacement – Project 25 This project provided installation of approximately 11,869 linear feet of new High Density Polyethylene (HDPE) water mains, 232 new HDPE water services, and 15 new fire hydrants within the City limits. Construction Water Utilities Winter 2017 5,445,069$ WS‐15004 Water System Master Plan The 2015 Water System Master Plan identified present capital improvements and replacement rates required to ensure optimal reliability levels of service to the existing distribution and transmission systems. Study Water Utilities Spring 2017 500,000$ WC‐10002 Wastewater Collection System Rehabilitation / Augmentation Project 23 Combined with Project 22 (WC‐09001). This project replaced and/or rehabilitated approximately 33,497 linear feet of sanitary sewer mains of various sizes, 554 sewer laterals, and 102 sewer manholes. Construction Wastewater Collection Utilities Winter 2017 1,272,289$ EL‐10009 Street Light System Street Light System Conversion Project This project converted HPS streetlights to LED and the conversion of approximately 4500 cobrahead streetlight fixtures. Construction Electric Utilities Spring 2017 696,918$ EL‐13006 Sand Hill / Quarry 12kV InterTie This project installed new wire to connect circuits QR‐24 and QR‐27 in the Sand Hill/Quarry area. Construction Electric Utilities Winter 2017 208,648$ EL‐15001 Electric Substation Battery Replacement This project replaced the batteries in all nine of the City's electric substations. Construction Electric Utilities Winter 2017 400,000$ PG‐13001 Stanford/Palo Alto Playing Fields Soccer Turf Replacement This project replaced the synthetic turf at the Stanford/Palo Alto Playing Fields. Construction Parks and Open Space Community Services Fall 2016 1,499,979$ PG‐09003 Park Maintenance Shop Remodel This project renovated and remodeled the Parks maintenance shop for safety and efficienciency upgrades.Construction Parks and Open Space Community Services Summer 2016 94,419$ PE‐12017 City Hall First Floor Renovations This project installed new elevator control panels and replaced the gray‐painted panels inside the elevators.Construction Buildings and Facilities Public Works Summer 2016 3,974,963$ 7 List of Completed Projects CIP #Project Name Project Description Project Type Fund Source Department Season Completed Year Completed Total Project Budget ** PE‐11012 Temporary Main Library This project created a temporary main Library to be used while the new one was being constructed.Construction Buildings and Facilities Public Works 156,254$ PE‐15029 Baylands Nature Interpretive Center Facility Improvement The project replaced decking, railings, structural framing members, exterior wood flooring, and cabinetry, restroom reconfiguration, and provided Americans with Disabilities Act (ADA) improvements. Construction Buildings and Facilities Public Works Spring 2017 889,452$ PE‐13008 Bowden Park Improvements This project improved the children’s playground and included park amenity upgrades such as new playground equipment, a new retaining wall, surfacing and pathway upgrades, planting restoration and irrigation renovations, and replaced of damaged wood benches and the playground perimeter fence. Construction Parks and Open Space Community Services Summer 2016 421,126$ PE‐13020 Byxbee Park Trails This project provided trail and site amenities over the remaining area of the landfill cap. Construction Parks and Open Space Public Works Fall 2016 334,607$ PE‐17002 City Hall Floor 3 Remodel This project improved the Utilities Department administrative offices on the third floor of City Hall. It included new carpet, wall reconfiguration, a kitchenette, cabinets, paint, soundproofing, office furniture, doors, and associated building systems. Construction Buildings and Facilities Public Works Spring 2017 440,000$ PE‐14015 Lucie Stern Buildings Mechanical and Electrical Upgrades – Phase 1 This project replaced and upgraded the mechanical, electrical, and fire/life safety systems at Lucie Stern Children’s Theater, Lucie Stern Community Theater, and Lucie Stern Community Center. Construction Buildings and Facilities Public Works Summer 2016 3,247,248$ PG‐12004 Sarah Wallis Park Improvements This project improved site amenities with new concrete pathways, replaced old furnishings, and upgraded landscape with drought tolerant species. Construction Parks and Open Space Community Services Winter 2017 65,000$ AP‐16003 Airport Perimeter Fence This project replaced the perimeter fencing and gates surrounding the Palo Alto Airport boundaries to prevent unauthorized access to the airport runway in accordance with Federal and State standards. Construction Airport Public Works Spring 2017 2,003,540$ SD‐11101 Channing Avenue/Lincoln Avenue Storm Drain Improvements This project installed of 5,800 linear feet of 36‐inch to 60‐inch diameter storm drain along Channing and Lincoln Avenues over three project phases to increase drainage system capacity. Construction Storm Drain Public Works Winter 2016 7,676,275$ GS‐14004 Gas Distribution System Model This project included the development, model installation, testing, documentation, and staff training of a natural gas distribution system model. Study Gas Utilities Summer 2016 149,500$ 8 List of Completed Projects CIP #Project Name Project Description Project Type Fund Source Department Season Completed Year Completed Total Project Budget ** AC‐14000 Art Center Auditorium Audio, Visual and Furnishings This project replaced outdated audio visual equipment and furnishings following the auditorium’s use as a temporary library. Construction Buildings and Facilities Community Services Winter 2016 150,000$ PF‐15000 Rinconada Pool Locker Room This project renovated the Rinconada Pool locker room including the changing area, restrooms, and showers in the women's and men's locker rooms. Construction Buildings and Facilities Public Works Winter 2016 464,433$ PE‐13016 El Camino Park Restoration This project installed new athletic fields, synthetic turf, field lighting, fencing, a new restroom, scorekeeper booth and storage buildings, an expanded parking lot, new bike and pedestrian pathways, landscaping, benches, and other amenities. Construction Parks and Open Space Community Services Fall 2015 5,611,122$ 243,909,683$ Notes: ** Final Project Actuals may be different from Total Project Budget amounts Grand Total 9 City of Palo Alto (ID # 11033) City Council Staff Report Report Type: Information Reports Meeting Date: 1/25/2021 City of Palo Alto Page 1 Summary Title: Energy Risk Management Second Half (Third and Fourth Quarters) of FY 2020 Title: City of Palo Alto's Energy Risk Management Report for the Second Half of Fiscal Year 2020 From: City Manager Lead Department: Administrative Services Recommendation This is an informational report and no City Council action is required. Executive Summary Staff continues to purchase electricity and gas in compliance with the City’s Energy Risk Management Policies, Guidelines, and Procedures. This report is based on market prices and load and supply data as of June 30, 2020, the end of the second half of Fiscal Year (FY) 2020. The projected cost of the City’s fixed-price electricity purchases is $1.15 million lower than the market value of that electricity as of June 30, 2020 for the 12-month period beginning July 1, 2020. In the second half of FY 2020 (January 1, 2020 through June 30, 2020) the City’s credit exposure to fixed price contracts is minimal. The projected Electric Supply Operations Reserve is above the FY 2020 minimum guideline reserve level and the projected gas reserve is also above the FY 2020 guideline reserve level range. There were no exceptions to the Energy Risk Management Policies, Guidelines, or Procedures during the second half of FY 2020. Background The purpose of this report is to inform the Council about the status of the City’s energy portfolio and transactions executed with energy suppliers as of the end of the second half of FY 2020. The City’s Energy Risk Management Policy requires that staff report on a quarterly basis but due to lower trading activity levels the Utility Risk Oversight Coordinating Committee (UROCC) has approved providing this report on a semi-annual basis to Council on: 1) the City’s energy portfolio; 2) the City’s credit and market risk profile; 3) portfolio performance; and 4) other key market and risk information. City of Palo Alto Page 2 The City’s Energy Risk Management Policy describes the management organization, authority, and processes to monitor, measure, and control market risks. “Market risks” include price and counterparty credit risk. These are risks that the City is exposed to on a regular basis in procuring electric supplies, and to a lesser extent for gas supplies which are purchased at market rates via a monthly index price. The energy risk management section is located in the Treasury Division of the Administrative Services Department. Its role is to monitor and mitigate these risks. This second half of FY 2020 energy risk management report contains information on the following: • Electric Supplies • Hydroelectricity • Fixed-Price Forward Electricity Purchases • Gas Supplies • Credit Risk • Electric Forward Mark-to-Market Values • Electric and Gas Supply Operations Reserves Adequacy • Exceptions to Energy Risk Management Policies, Guidelines, or Procedures Discussion Electric Supplies In order to serve the City’s electric supply demands, the City obtains electricity from: hydroelectric resources (from Western and Calaveras Hydroelectric Projects); long -term renewable energy contracts (from landfill gas converted to electricity, wind, and solar projects); wholesale purchases which are carried out via fixed-priced forward market purchase contracts; and the electric spot market. Figure 1 below illustrates the projected sources and expected purchases of electricity supplies by month for the 36 months from July 1, 2020 to July 1, 2023, in megawatt -hours (MWh). The negative bars represent sales of excess power on the wholesale market. City of Palo Alto Page 3 -60,000 -40,000 -20,000 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 Ju l - 2 0 Se p - 2 0 No v - 2 0 Ja n - 2 1 M a r - 2 1 M a y - 2 1 Ju l - 2 1 Se p - 2 1 No v - 2 1 Ja n - 2 2 M a r - 2 2 M a y - 2 2 Ju l - 2 2 Se p - 2 2 No v - 2 2 Ja n - 2 3 M a r - 2 3 M a y - 2 3 Me g a w a t t H o u r s Figure 1 -Electric Balance Wind Wholesale Western Solar Landfill Calaveras Total Load Hydroelectricity The cost of hydroelectricity received from Western over the 12-month period ending June 30, 2020 is more than the market value of electricity by $0.6 million. Hydroelectric power from Calaveras was expected to cost $8.1 million (as of June 30, 2020) more than the market value of electricity. Note that Calaveras provides benefits not reflected in the mark-to-market (MTM) calculation, including, for example, ancillary services (e.g., the ability to regulate energy output when the electric grid needs change), and that much of t he above-market costs are related to debt service on the cost of constructing the dam. The MTM is defined in the following section. This debt is due to be retired in 2032, and retirement will substantially improve the value of the project relative to the market price of electricity. Fixed-Price Forward Electricity Purchases The City, as of June 30, 2020, has purchased and sold fixed-priced supplies of electricity for the next 12 months totaling 89,445 MWh with an average price of $40.54 per MWh and totaling 119,840 with an average price of $39.78, respectively. The City contracted for these purchases with three of its approved counterparties: SENA (Shell Energy North America), BP, and NextEra Energy Resources. The 12-month MTM value of the City’s forward transactions for wholesale power was $1.15 million at the end of the second half of FY 2020. A positive MTM means that the purchase cost (contract price) for these transactions was lower than the market value as of June 30, 2020. The City tracks the mark to market value of its forward contracts to measure the City of Palo Alto Page 4 value that would be lost due to a counterparty failing to deliver on its contractual commitments, forcing the City to purchase replacement electricity in the market. The exposure listed above is well within risk management guidelines and presents little risk to the City’s financial outlook. The figures below represent the electric forward volumes (Figure 2) and MTM positions (Figure 3) for each electric supplier by month of delivery for all forward fixe d-price electricity contracts over the 12-month period ending June 30, 2021. -50,000 -40,000 -30,000 -20,000 -10,000 0 10,000 20,000 30,000 40,000 08 / 0 1 / 2 0 09 / 0 1 / 2 0 10 / 0 1 / 2 0 11 / 0 1 / 2 0 12 / 0 1 / 2 0 07 / 0 1 / 2 0 01 / 0 1 / 2 1 02 / 0 1 / 2 1 03 / 0 1 / 2 1 04 / 0 1 / 2 1 05 / 0 1 / 2 1 06 / 0 1 / 2 1 Me g a w a t t H o u r s Figure 2 -Electric Forward Volumes ending as of 06/30/21 BP SENA NextEra Energy Resources City of Palo Alto Page 5 (1,000,000) (500,000) - 500,000 1,000,000 1,500,000 Au g - 2 0 Se p - 2 0 Oc t - 2 0 No v - 2 0 De c - 2 0 Ju l - 2 0 Ja n - 2 1 Fe b - 2 1 M a r - 2 1 Ap r - 2 1 M a y - 2 1 Ju n - 2 1 MT M D o l l a r A m o u n t Figure 3 -Electric Mark-to-Market Values ending as of 06/30/21 BP SENA NextEra Energy Resources Gas Supplies In order to serve the City’s natural gas needs, the City purchases gas on the monthly and daily spot markets. The City purchases all of its forecasted gas need s for the month ahead at a price based on the published monthly spot market index price for that month. Within the month, the City’s gas operator buys and sells gas to match the City’s daily needs if the actual daily usage is different from the forecasted daily usage. Those daily transactions are made at an average price based on the published daily spot market index. These costs are passed through directly to customers using a monthly rate adjustment mechanism, leaving the City with little or no price risk or counterparty risk exposure for the gas utility. Credit Risk Staff monitors and reports on counterparty credit risk based on the major credit rating agencies (S&P and Moody’s) scores, Ameresco has a 0.24 percent Expected Default Frequency (EDF) which is higher than the recommended EDF level of .08 percent. The EDF has improved, the prior year it was 0.31 percent and, as of writing of this report, (December 18, 2020), the EDF is 0.11 percent. Staff is continuing to monitor Ameresco’s EDF and will conti nue to report to City Council in this semi-annual report. Table 1 below shows the EDF values for the City’s renewable energy counterparties. Table 2 below shows the EDF values and credit exposure for the City’s electric suppliers. There is virtually no credit exposure to the City’s gas suppliers since the supplies are purchased on a short-term basis. City of Palo Alto Page 6 Table 1 - Renewable Counterparties Credit Ratings and EDFs as of 06/30/20 Current Expected Default Frequency Moody's (EDF) Implied Rating Ameresco 0.24%Baa3 0.02%A2 Source: CreditEdge website Renewable Counterparty Avangrid (fomerly Iberdrola) Table 2 - Credit Exposure and Expected Default Frequency of Electric Suppliers as of 06/30/20 Electric Counterparty Cost of Transaction Market Value of Transaction Current Expected Default Frequency Moody's (EDF) Implied Rating Exelon -$ -$ A1 NextEra 1,178,993 1,247,265 0.010%Aaa SENA (2,834,205) (1,552,490) 0.043%Baa3 BP 514,080 579,621 0.041%Baa3 Totals (1,141,133)$ 274,397$ 65,541 - A- -$ BBB -$ - 68,272 (1,147,902)$ (551)$ Cost vs. Market (MTM) Value S & P C r e Expected Loss (MTM x Expected Default Frequency) (1,281,715) AA-(551) Electric Forward Mark-to-Market Values It is important to note that, for renewable energy companies, Council waived the investment grade credit rating requirement of Section 2.30.340(d) of the Palo Alto Municipal Code, which applies to energy companies that do business with the City. In addition, the City does not pay for renewable energy until it is received, thereby reducing risk. An EDF of 0.08% or below indicate supplier’s current expected default frequency falls within the investment grade range. An EDF above 0.08% indicates the supplier may have financial issues that require monitoring. Electric and Gas Supply Operations Reserves Adequacy As shown in Table 3 below, the Electric Supply Operations reserve’s audited balance as of June 30, 2020 is $38.5 million, which is $10.9 million above the minimum reserve guideline level. The audited Gas Operations reserve balance is $13.4 million, which is $4.4 million above the minimum reserve guideline level. City of Palo Alto Page 7 Table 3 - Electric Supply Operations and Gas Operations Reserve Levels for FY 2020 Fund Reserve for Operations Balance as of 07/01/2019 ($ Millions) Changes to the Reserves for Operations ($ Millions) Audited Reserve for Operations Balance as of 06/30/20 ($ Millions) Minimum Guideline Reserve Level ($ Millions) Maximum Guideline Reserve Level ($ Millions) Electric $45.2 ($6.7)$38.5 $27.6 $51.7 Gas $10.0 $3.5 $13.4 $9.0 $18.1 FY 2020 Exceptions to Energy Risk Management Policies, Guidelines, or Procedures There were no exceptions to the Energy Risk Management Policies, Guidelines, or Pro cedures to report during the second half of FY 2020.