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Home My WebLink About2015-11-03 Finance Committee Agenda Packet Finance Committee 1 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. Tuesday, November 3, 2015 Special Meeting Community Meeting Room 6:00 PM Agenda posted according to PAMC Section 2.04.070. Supporting materials are available in the Council Chambers on the Thursday 10 days preceding the meeting. PUBLIC COMMENT Members of the public may speak to agendized items. If you wish to address the Committee on any issue that is on this agenda, please complete a speaker request card located on the table at the entrance to the Council Chambers/Council Conference Room, and deliver it to the Clerk prior to discussion of the item. You are not required to give your name on the speaker card in order to speak to the Committee, but it is very helpful. Call to Order Oral Communications Action Items 1. Library Bond Oversight Committee Quarterly Reports Transmittal 2. Pension Liability: Discussion of Options for the Future Future Meetings and Agendas 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. 2 November 3, 2015 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. Status of Items Requested by the Finance Committee Referral Date Item Title Status 2013 Police Services Utilization and Resources Study (PD) Pending 2015 Review and Discussion of the Public Art Ordinance (CSD) Pending Discussion of Usage and Replacement of Pool Vehicles (Public Works) Finance Committee Items Tentatively Scheduled Meeting Date Item Title 11/17/2015 Close Budget and Approve CAFR for FY 2015 (ASD) 12/1/2015 New Renewable Energy Power Purchase Agreement (Utilities) Library Bond Oversight Committee Quarterly Reports Transmittal, Discussion and Recommendation Regarding Excess Library Bond Funds, and Discussion and Recommendation on the Dissolution of the Library Bond Oversight Committee Update to the Utilities Department Organization Assessment (Utilities) Local Solar Plan Update and Recommention to End the PV Partners Program When Legislative Mandates are Met (Utilities) 12/15/2015 2017-2026 General Fund Long Range Financial Forecast (ASD) Quarter FY 2016 Financial Results (ASD) Comprehensive Plan Update - Fiscal Study Methodology (Planning) Net Energy Metering (NEM) Successor Program Design Guidelines (Utilities) City of Palo Alto (ID # 6283) Finance Committee Staff Report Report Type: Action Items Meeting Date: 11/3/2015 City of Palo Alto Page 1 Summary Title: Library Bond Oversight Committee Quarterly Reports Transmittal Title: Library Bond Oversight Committee Quarterly Reports Transmittal From: City Manager Lead Department: Public Works Executive Summary Please see the attached Library Bond Oversight Committee transmittal letter (Attachment A) and associated financial reports (Attachments B, C, D and E). Attachments:  LBOC Financial Reports Transmittal Letter and Reports_11-3-2015 (PDF) TO: Finance Committee FROM: Library Bond Oversight Committee DATE: November 3, 2015 SUBJECT: Library Bond Oversight Committee Financial Reports The Library Bond Oversight Committee (LBOC) has met with members of City staff on the progress of the library bond projects since 2009. Attached for your approval is the third quarter 2014 financial report (dated July 2, 2014), fourth quarter 2014 financial report (dated October 8, 2014), the first quarter 2015 financial report (dated January 14, 2015), and the second quarter 2015 financial report (dated April 22, 2015). Based on the information provided, the Committee believes that the City’s financial reporting for all library-related projects is accurate and appropriate; however, these reports have not been independently audited. The Committee approves and forwards these reports to the Finance Committee and City Council. The LBOC in the past has discussed a range of issues related to Mitchell Park Library & Community Center and at one time was concerned that the resolution of claims and disputes may exhaust the bond funds; however, it appears at this time that will not be the case. The LBOC and staff are currently preparing a recommendation for the Palo Alto City Council regarding the close-out of the bonds and the termination of the LBOC. This will be discussed at the LBOC’s November 17, 2015 meeting. Submitted: Alice Smith Library Bond Oversight Committee Chair ATTACHMENTS: Attachment B: LBOC Quarterly Financial Report (dated July 2, 2014) Attachment C: LBOC Quarterly Financial Report (dated October 8, 2014) Attachment D: LBOC Quarterly Financial Report (dated January 14, 2015) Attachment E: LBOC Quarterly Financial Report (dated April 22, 2015) 123456 7 8 (3 minus 1) (5 minus 1) (5 minus 4) (7 divide by 4) Measure N Estimates Changes in Measure Estimates Engineer's Estimate Project Budget June 2014 Projected Costs Diff. Between Measure N Estimates vs. Projected Costs $ Diff. Between Project Budget vs. Projected Costs % Diff. Between Project Budget vs. Projected Costs Downtown Library 4,000,000$ 1,212,000$ 5,212,000$ 4,212,000$ 4,191,782$ (191,782) 20,218$ 0.5% Mitchell Park & Community Center Library 50,000,000 (957,000) 49,043,000 47,725,437 47,384,021 2,615,979 341,416 0.7% Cubberley Temporary Library - 645,000 645,000 645,000 619,687 (619,687) 25,313 3.9% Rinconada Library (former Main) 18,000,000 2,100,000 20,100,000 22,342,563 23,192,141 (5,192,141) (849,578) (3.8%) Art Center Temporary Library - 500,000 500,000 500,000 536,509 (536,509) (36,509) (7.3%) Total Prior to Bond Financing Costs 72,000,000 3,500,000 75,500,000 75,425,000 75,924,140 (3,924,140) (499,140) (0.7%) Bond Financing Costs (a)4,000,000 (3,500,000) 500,000 500,000 185,320 3,814,680 314,680 62.9% Grand Total 76,000,000$ -$ 76,000,000$ 75,925,000$ 76,109,460$ (109,460)$ (184,460)$ (0.2%) a) The actual bond issuance cost is substantially lower than the Measure N estimate due to avoidance of Capitalized Interest costs. Project Budget Expenses Commitment s (aka Purchase Orders) Remaining Balance % Diff. Between Engineer's Est. vs. Remaining Bal. Budget Original Budget (per Measure N Ballot Measure)72,000,000$ -$ -$ 72,000,000$ Temporary Mitchell Park Library (Council Approved - CMR: 463:09)645,000 645,000 Temporary Main Library Facility - Art Center Auditorium 500,000 500,000 Net Other Budget Changes 2,280,000 2,280,000 Expenditures - Engineering, Architectural, Constr., and Publishing (Reproduction) Costs 51,019,759 9,876,559 (60,896,318) Construction Costs - - - Contract Contingency 6,320,627 2,998,911 (9,319,537) Other Contract Services 1,182,745 317,602 (1,500,347) City (Inter-department) Service Charge 501,007 273,376 (774,383) Miscellaneous Cost 210,021 - (210,021) Total Library Projects Expenditures 75,425,000 59,234,159 13,466,447 2,724,394 Estimate of Pending Commitments/Costs - - 3,223,534 (3,223,534) Total Bond Funds Less Bond Financing Costs 75,425,000 59,234,159 16,689,981 (499,140) (0.7%) Bond Financing Costs (a)500,000 185,320 - 314,680 62.9% Grand Total 75,925,000$ 59,419,479$ 16,689,981$ (184,460)$ (0.2%) 2010 GO Bond True Interest Cost (TIC)4.21% 2013 GO Bond True Interest Cost (TIC)3.85% a) The actual bond issuance cost is substantially lower than the Measure N estimate due to avoidance of Capitalized Interest costs. Budget History and Projection Description of Activity Library Projects Budget to Actual Activities Summary Library Bond Oversight Committee Quarterly Financial Report City of Palo Alto As of July 2, 2014 1 Library Bond Oversight Committee Quarterly Financial Report City of Palo Alto As of July 2, 2014 Project Budget Expenses Commitment s (aka Purchase Orders) Remaining Balance % Diff. Between Engineer's Est. vs. Remaining Bal. Original Budget (per Measure N Ballot Measure) 4,000,000$ -$ -$ 4,000,000$ Budget Change 212,000 212,000 Expenditures Engineering, Architectural, Constr., and Publishing (Reproduction) Costs 3,617,992 45,706 (3,663,698) Construction Costs - - - - Contract Contingency - 462,490 97 (462,587) Other Contract Services - 27,925 - (27,925) City (Inter-department) Service Charge - 45,501 - (45,501) Miscellaneous Cost - 3,163 - (3,163) Total Library Projects Expenditures 4,212,000 4,157,071 45,802 9,127 Estimate of Pending Commitments/Costs and/or Non-bondable Costs - - (11,091) 11,091 Total Bond Funds Less Bond Financing Costs 4,212,000$ 4,157,071$ 34,711$ 20,218$ 0.5% Reasons for Budget Increase of:212,000$ 1) Seismic upgrade 30,000$ July 2010 2) Roof replacement 125,000 June 2011 3) LEED - Green building upgrades 100,000 4) Construction Management Services increase 400,000 5) Fixed Equipment 187,000 6) Moving costs deemed to be bondable costs 50,000 7) Contingency adjustment 320,000 8) Transfer to Main Library (1,000,000) Net Budget Change 212,000$ Project Budget Expenses Commitment s (aka Purchase Orders) Remaining Balance % Diff. Between Engineer's Est. vs. Remaining Bal. Original Budget (per Measure N Ballot Measure)50,000,000$ -$ -$ 50,000,000$ Budget Change (2,274,563) (2,274,563) Expenditures Engineering, Architectural, Constr., and Publishing (Reproduction) Costs 31,733,636 2,358,012 (34,091,649) Contract Contingency - 5,607,715 2,952,474 (8,560,188) Other Contract Services - 925,606 301,502 (1,227,108) City (Inter-department) Service Charge - 320,534 273,376 (593,910) Miscellaneous Cost - 206,144 - (206,144) Total Library Projects Expenditures 47,725,437 38,793,635 5,885,363 3,046,438 Estimate of Pending Commitments/Costs 2,705,022 (2,705,022) Total Bond Funds Less Bond Financing Costs 47,725,437$ 38,793,635$ 8,590,386$ 341,416$ 0.7% Reasons for Budget Decrease of:(2,274,563)$ 1) LEED - Green building (Council approved) upgrades 1,200,000$ 2) Fixed Equipment 1,750,000 3) Moving costs deemed to be bondable costs 100,000 4) Contingency adjustment (4,007,000) 5) Transfer to Main Library Project (1,317,563) Net Budget Change (2,274,563)$ Description of Activity Mitchell Park Library and Community Center Budget to Actual Activities Summary (PE-09006) Downtown Library Budget to Actual Activities Summary (PE-09005) Completed: Construction Began: Description of Activity 2 Library Bond Oversight Committee Quarterly Financial Report City of Palo Alto As of July 2, 2014 Project Budget Expenses Commitment s (aka Purchase Orders) Remaining Balance % Diff. Between Engineer's Est. vs. Remaining Bal. Original Budget (per Measure N Ballot Measure) 18,000,000$ -$ -$ 18,000,000 Budget Change 4,342,563 4,342,563 Expenditures Engineering, Architectural, Constr., and Publishing (Reproduction) Costs 14,884,658 7,452,502 (22,337,160) Contract Contingency - 215,310 37,930 (253,240) Other Contract Services - 229,214 16,100 (245,314) City (Inter-department) Service Charge - - - - Miscellaneous Cost - 590 - (590) Total Library Projects Expenditures 22,342,563 15,329,771 7,506,532 (493,740) Estimate of Pending Commitments/Costs and/or Non-bondable Costs 355,838 (355,838) Total Bond Funds Less Bond Financing Costs 22,342,563$ 15,329,771$ 7,862,370$ (849,578)$ (3.8%) Reasons for Budget Increase of:4,342,563$ Lowest Accepted Bids Exceeded the Engineer's Estimates 4,342,563$ Net Budget Change 4,342,563$ Project Budget Expenses Commitment s (aka Purchase Orders) Remaining Balance % Diff. Between Engineer's Est. vs. Remaining Bal. Temporary Mitchell Park Library (Council Approved - CMR: 463:09)645,000$ -$ -$ 645,000$ Budget Change -$ - Expenditures Engineering, Architectural, Constr., and Publishing (Reproduction) Costs 464,577 19,102 (483,679) Contract Contingency - 33,500 4,759 (38,259) City (Inter-department) Service Charge - 11,247 - (11,247) Miscellaneous Cost - 125 - (125) Total Library Projects Expenditures 645,000 509,448 23,861 111,691 Estimate of Pending Commitments/Costs 86,378 (86,378) Total Bond Funds Less Bond Financing Costs 645,000$ 509,448$ 110,239$ 25,313$ 3.9% Description of Activity Rinconada Library (former Main) Budget to Actual Activities Summary (PE-11000) Description of Activity Cubberley Temporary Library Budget to Actual Activities Summary (PE-09010) 3 Library Bond Oversight Committee Quarterly Financial Report City of Palo Alto As of July 2, 2014 Project Budget Expenses Commitment s (aka Purchase Orders) Remaining Balance % Diff. Between Engineer's Est. vs. Remaining Bal. Temporary Main Library Facility - Art Center Auditorium 500,000$ -$ -$ 500,000$ Expenditures Engineering, Architectural, Constr., and Publishing (Reproduction) Costs 318,896 1,237 (320,133) Contract Contingency - 1,612 3,651 (5,263) Other Contract Services - City (Inter-department) Service Charge - 123,725 - (123,725) Miscellaneous Cost - - - - Total Library Projects Expenditures 500,000 444,233 4,888 50,879 Estimate of Pending Commitments/Costs 87,388 (87,388) Total Bond Funds Less Bond Financing Costs 500,000$ 444,233$ 92,276$ (36,509)$ (7.3%) Description of Activity Art Center Temporary Library Budget to Actual Activities Summary (Project # PE-11012) 4 Payment or Posting Date Payee Description Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Project Budget Original Budget (per Measure N Ballot Measure) 4,000,000 Budget Change 212,000 Sub-total - 2010 Engineer's Budget Estimate 4,212,000 - - 4,212,000 Engineering, Architectural, Constr., and Publishing (Reproduction) Costs Summary of Expenditures as of July 21, 2010 418,563 08/24/10 Group 4 Architecture Research & Planning Architectural 362 09/21/10 Group 4 Architecture Research & Planning Architectural 135 08/03/10 Group 4 Architecture Research & Planning Architectural 16,233 08/03/10 Group 4 Architecture Research & Planning Architectural 56,000 08/10/10 Protech Consulting and Engineering Hazardous Material Testing 5,210 08/10/10 Turner Construction Company Construction Management Services 68,577 Oct. 21, 2010 Report 09/21/10 Group 4 Architecture Research & Planning Architectural 15 09/21/10 Group 4 Architecture Research & Planning Architectural 18,080 09/21/10 Group 4 Architecture Research & Planning Architectural 2,970 09/21/10 W.L. Butler Construction, Inc.Construction 93,177 10/05/10 Protech Consulting and Engineering Hazardous Material Testing 990 10/19/10 Group 4 Architecture Research & Planning Architectural 10,544 11/02/10 W. L. Butler Construction, Inc.Construction 69,984 11/02/10 Turner Construction Company Construction Management Services 27,984 11/02/10 Group 4 Architecture Research & Planning Architectural 11,864 12/07/10 Turner Construction Company Construction Management Services 55,174 12/07/10 Group 4 Architecture Research & Planning Architectural 11,688 Jan. 25, 2011 Report 12/07/10 W. L. Butler Construction, Inc.Construction 92,055 12/14/10 Group 4 Architecture Research & Planning Architectural 519 12/14/10 W. L. Butler Construction, Inc.Construction 159,940 01/04/11 Turner Construction Company Construction Management Services 27,984 01/07/11 Group 4 Architecture Research & Planning Architectural 11,688 01/21/11 West Coast Code Consultants, Inc.Plan Check 350 01/21/11 Turner Construction Company Construction Management Services 30,212 01/31/11 W. L. Butler Construction, Inc.Construction 211,220 02/18/11 W. L. Butler Construction, Inc.Construction 279,472 02/18/11 Group 4 Architecture Research & Planning Architectural 8,766 02/18/11 Turner Construction Company Construction Management Services 27,429 03/16/11 W. L. Butler Construction, Inc.Construction 277,033 April 26, 2011 Report 03/18/11 Group 4 Architecture Research & Planning Architectural 432 03/18/11 Group 4 Architecture Research & Planning Architectural 409 03/18/11 Group 4 Architecture Research & Planning Architectural 8,766 03/18/11 Group 4 Architecture Research & Planning Architectural 136 03/31/11 Pivot Interiors Design 2,250 03/31/11 Turner Construction Company Construction Management Services 17,808 04/07/11 Group 4 Architecture Research & Planning Architectural 13,149 04/19/11 Group 4 Architecture Research & Planning Architectural 2,795 04/25/11 W. L. Butler Construction, Inc.Construction 342,711 05/10/11 Turner Construction Company Construction Management Services 39,522 05/12/11 Group 4 Architecture Research & Planning Architectural 220 05/12/11 Group 4 Architecture Research & Planning Architectural 24,891 05/12/11 Group 4 Architecture Research & Planning Architectural 14,610 July 26, 2011 Report 05/17/11 Turner Construction Company Construction Management Services 28,334 05/27/11 W. L. Butler Construction, Inc.Construction 238,387 06/07/11 W. L. Butler Construction, Inc.Construction 352,713 06/07/11 Group 4 Architecture Research & Planning Architectural 14,610 06/09/11 Moovers, Inc.Moving Services 10,233 06/16/11 Group 4 Architecture Research & Planning Architectural 233 07/20/11 Group 4 Architecture Research & Planning Architectural 479.16 07/20/11 Group 4 Architecture Research & Planning Architectural 12,405 07/27/11 W.L. Butler Construction, Inc.Construction 157,980 07/27/11 Turner Construction Company Construction Management Services 26,028 08/31/11 Group 4 Architecture Research & Planning Architectural 19,560 October 25, 2011 Report 08/10/11 Group 4 Architecture Research & Planning Architectural 137 08/10/11 Group 4 Architecture Research & Planning Architectural 5,100 08/24/11 Turner Construction Company Construction Management Services 38,160 08/31/11 W.L. Butler Construction, Inc.Construction 137,659 09/14/11 Group 4 Architecture Research & Planning Architectural 2,550 09/14/11 Group 4 Architecture Research & Planning Architectural 1,116 12/07/11 Group 4 Architecture Research & Planning Architectural 5,100.00 10/19/11 Turner Construction Company Construction Management Services 1,176.00 12/21/11 Turner Construction Company Construction Management Services 3,806.42 January 18, 2012 11/09/11 Group 4 Architecture Research & Planning Architectural 1,146.02 12/07/11 W.L. Butler Construction, Inc.Construction 64,873.60 02/08/12 Group 4 Architecture Research & Planning Architectural 29.33 02/08/12 W.L. Butler Construction, Inc.Construction 22,796.10 02/22/12 Group 4 Architecture Research & Planning Architectural 8,407.90 March 28, 2012 Report 03/08/12 Group 4 Architecture Research & Planning Architectural 1,275.00 03/21/12 Group 4 Architecture Research & Planning Architectural 6.82 08/22/12 Group 4 Architecture Research & Planning Architectural 1,268.06 October 30, 2012 Report Downtown Library Activity Details (PE-09005) As of July 2, 2014 5 Payment or Posting Date Payee Description Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Downtown Library Activity Details (PE-09005) As of July 2, 2014 10/03/12 Group 4 Architecture Research & Planning Architectural 70.96 01/09/13 Turner Construction Company Construction Management Services 434.00 January 23, 2013 Report Group 4 Architecture Research Architectural 41,593 Moovers, Inc.Moving Services 4,113 Sub-total - Engineering and Architectural Costs - 3,617,992 45,706 (3,663,698) Contract Contingency Summary of Expenditures as of July 21, 2010 19,140 10/19/10 Group 4 Architecture Research & Planning Architectural 660 10/19/10 Group 4 Architecture Research & Planning Architectural 4,070 Oct. 21, 2010 Report 08/27/10 Asbestos Management Group Hazardous Material Testing 2,500 02/28/11 City of Palo Alto - Planning Plan Check Fee 93 April 26, 2011 Report 02/18/11 W. L. Butler Construction, Inc.Construction 15,686 04/25/11 W. L. Butler Construction, Inc.Construction 59,235 05/27/11 W. L. Butler Construction, Inc.Construction 163,149 07/01/11 Turner Construction Company Construction Management Services 1,123 July 26, 2011 Report 07/01/11 Turner Construction Company Construction Management Services 24,611 06/07/11 Group 4 Architecture Research & Planning Architectural 5,104 06/07/11 Group 4 Architecture Research & Planning Architectural 3,489 07/27/11 Group 4 Architecture Research & Planning Architectural 9,339 October 25, 2011 Report 08/31/11 W. L. Butler Construction, Inc.Construction 13,299 03/08/12 Group 4 Architecture Research & Planning Architectural 4,094 March 28, 2012 Report 02/08/12 W. L. Butler Construction, Inc.Construction 113,631 09/19/12 W. L. Butler Construction, Inc.Construction 10,000 October 30, 2012 Report 01/09/13 Turner Construction Company Construction Management Services 13,266 January 23, 2013 Report Turner Construction Company Construction Management Services 97 Sub-total - Contract Contingency - 462,490 97 (462,587) Other Contract Services Summary of Expenditures as of July 21, 2010 2,225 08/27/10 Asbestos Management Group Hazardous Material Testing 25,700 Oct. 21, 2010 Report Sub-total - Other Contract Services - 27,925 - (27,925) City (Inter-department) Service Charge Summary of Expenditures as of July 21, 2010 43,990 07/13/11 City of Palo Alto - Public Works Parking Permit 230 October 25, 2011 Report 07/13/11 City of Palo Alto - Public Works Parking Permit 420 10/31/10 City of Palo Alto - Planning Plan Checking 861 Jan. 25, 2011 Report Sub-Total - City (Inter-department) Service Charge - 45,501 - (45,501) Miscellaneous Cost Summary of Expenditures as of July 21, 2010 3,158 04/10/11 Santa Clara County Downtown-Notice of Completion Filing Fee 5 January 18, 2012 Report Sub-total - Miscellaneous Cost - 3,163 - (3,163) Grant Total 4,212,000 4,157,071 45,802 9,127 6 Payment Date Payee Description Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Project Budget Original Budget (per Measure N Ballot Measure) 50,000,000$ Budget Change (2,274,563) Sub-total - 2010 Engineer's Budget Estimate 47,725,437 - - 47,725,437 Engineering, Architectural, Constr., and Publishing (Reproduction) Costs Summary of Expenditures as of July 21, 2010 3,101,748 08/03/10 Group 4 Architecture Research & Planning Architectural 37,609 08/10/10 Group 4 Architecture Research & Planning Architectural 18,595 10/05/10 Group 4 Architecture Research & Planning Architectural 7,522 10/05/10 Group 4 Architecture Research & Planning Architectural 13,942 10/05/10 Group 4 Architecture Research & Planning Architectural 2,971 07/27/10 Moovers, Inc.Moving Services 435 09/21/10 Turner Construction Company Construction Management Services 163,918 10/19/10 Group 4 Architecture Research & Planning Architectural 47,110 10/19/10 State Water Resources Control Board Submitting Permit Registration Documents 375 Oct. 21, 2010 Report 10/19/10 Group 4 Architecture Research & Planning Architectural 18,517 08/03/10 Peninsula Digital Imaging Reproduction Services 3,066 08/03/10 Peninsula Digital Imaging Reproduction Services 2,401 08/03/10 Peninsula Digital Imaging Reproduction Services 5,105 08/03/10 Peninsula Digital Imaging Reproduction Services 2,119 11/02/10 Bank of Sacramento - Flintco Pacific Escrow Construction 86,542 11/02/10 Flintco Pacific, Inc.Construction 778,876 11/02/10 Group 4 Architecture Research & Planning Architectural 1,037 12/07/10 Turner Construction Company Construction Management Services 635 12/07/10 Turner Construction Company Construction Management Services 70,780 12/07/10 Turner Construction Company Construction Management Services 64,319 12/07/10 Protech Consulting and Engineering Hazardous Material Testing 8,385 12/07/10 Peninsula Digital Imaging Reproduction Services 7,672 12/14/10 West Coast Code Consultants, Inc.Plan Check 26,820 12/14/10 Group 4 Architecture Research & Planning Architectural 46,200 Jan. 25, 2011 Report 12/21/10 Group 4 Architecture Research & Planning Architectural 46,297 12/21/10 Flintco Pacific, Inc.Construction 732,895 12/21/10 Flintco Pacific, Inc. Escrow 2841-042 Construction 81,433 12/28/10 Flintco Pacific, Inc.Construction 757,231 12/28/10 Flintco Pacific, Inc. Escrow 2841-042 Construction 84,137 01/04/11 Group 4 Architecture Research & Planning Architectural 2,942 01/04/11 Group 4 Architecture Research & Planning Architectural 4,564 01/04/11 Turner Construction Company Construction Management Services 73,919 1/21/2011 Group 4 Architecture Research & Planning Architectural 267 1/21/2011 Group 4 Architecture Research & Planning Architectural 46,261 1/21/2011 Turner Construction Company Construction Management Services 105,917 2/1/2011 Flintco Pacific, Inc.Construction 1,098,865 2/1/2011 Flintco Pacific, Inc. Escrow 2841-042 Construction 126,732 2/18/2011 Flintco Pacific, Inc.Construction 1,497,190 2/18/2011 Turner Construction Company Construction Management Services 94,502 2/18/2011 Flintco Pacific, Inc. Escrow 2841-042 Construction 193,977 2/24/2011 Group 4 Architecture Research & Planning Architectural 46,261 3/10/2011 West Coast Code Consultants, Inc.Plan Check 1,820 3/10/2011 West Coast Code Consultants, Inc.Plan Check 1,680 3/16/2011 West Coast Code Consultants, Inc.Plan Check (560) 3/16/2011 West Coast Code Consultants, Inc.Plan Check 560 April 26, 2011 Report 3/16/2011 Protech Consulting and Engineering Hazardous Material Testing 1,250 3/17/2011 West Coast Code Consultants, Inc.Plan Check 560 3/18/2011 Group 4 Architecture Research & Planning Architectural 46,261 3/31/2011 Flintco Pacific, Inc.Construction 446,177 3/31/2011 Flintco Pacific, Inc. Escrow 2841-042 Construction 76,548 3/31/2011 Turner Construction Company Construction Management Services 94,572 4/11/2011 Group 4 Architecture Research & Planning Architectural 4,219 4/11/2011 Group 4 Architecture Research & Planning Architectural 127 4/11/2011 Group 4 Architecture Research & Planning Architectural 7,366 4/11/2011 Group 4 Architecture Research & Planning Architectural 80,956 4/20/2011 West Coast Code Consultants, Inc.Plan Check 140 4/20/2011 West Coast Code Consultants, Inc.Plan Check 280 4/20/2011 West Coast Code Consultants, Inc.Plan Check 560 3/29/2011 Palo Alto Stores Supplies/Parts 1,342 4/25/2011 Flintco Pacific, Inc. Escrow 2841-042 Construction 85,140 4/25/2011 Flintco Pacific, Inc.Construction 766,263 4/26/2011 Group 4 Architecture Research & Planning Architectural 2,528 5/10/2011 Turner Construction Company Construction Management Services 82,594 5/12/2011 Group 4 Architecture Research & Planning Architectural 683 5/12/2011 Group 4 Architecture Research & Planning Architectural 80,956 5/17/2011 Turner Construction Company Construction Management Services 101,701 5/17/2011 Flintco Pacific, Inc.Construction 815,307 July 26, 2011 Report 5/17/2011 Flintco Pacific, Inc. Escrow 2841-042 Construction 93,874 5/17/2011 Flintco Pacific, Inc.Construction 29,559 7/1/2011 Turner Construction Company Construction Management Services 99,493 Mitchell Park Library and Community Center Activity Details (PE-09006) As of July 2, 2014 7 Payment Date Payee Description Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Mitchell Park Library and Community Center Activity Details (PE-09006) As of July 2, 2014 7/1/2011 Group 4 Architecture Research & Planning Architectural 19,540 7/1/2011 Group 4 Architecture Research & Planning Architectural 3,109 7/1/2011 Group 4 Architecture Research & Planning Architectural 17,038 7/1/2011 Group 4 Architecture Research & Planning Architectural 92,521 July 26, 2011 Report 7/1/2011 Group 4 Architecture Research & Planning Architectural 8,314 7/5/2011 Flintco Pacific, Inc. Escrow 2841-042 Construction 125,101 7/5/2011 Flintco Pacific, Inc.Construction 1,125,909 7/27/2011 Group 4 Architecture Research & Planning Architectural 57,826 7/27/2011 Group 4 Architecture Research & Planning Architectural 13,045 7/27/2011 Group 4 Architecture Research & Planning Architectural 1,954 7/27/2011 Flintco Pacific, Inc.Construction 2,316,525 7/27/2011 Flintco Inc. Escrow Construction 257,391 7/27/2011 Turner Construction Company Construction Management Services 127,367 October 25, 2011 Report 10/5/2011 Group 4 Architecture Research & Planning Architectural 1,898 10/5/2011 Group 4 Architecture Research & Planning Architectural 57,826 10/5/2011 Group 4 Architecture Research & Planning Architectural 1,647 10/5/2011 Flintco Pacific, Inc.Construction 483,144 10/5/2011 Flintco, Inc. Escrow Construction 53,683 10/19/2011 Turner Construction Company Construction Management Services 170,058 11/2/2011 Flintco Pacific, Inc.Construction 705,850 11/2/2011 Group 4 Architecture Research & Planning Architectural 57,826 11/2/2011 Group 4 Architecture Research & Planning Architectural 2,060 11/2/2011 Flintco Pacific, Inc.Construction 78,428 11/30/2011 West Coast Code Consultants, Inc.Plan Check 420 11/30/2011 West Coast Code Consultants, Inc.Plan Check 560 11/30/2011 West Coast Code Consultants, Inc.Plan Check 560 11/30/2011 Group 4 Architecture Research & Planning Architectural 2,051 11/30/2011 West Coast Code Consultants, Inc.Plan Check 700 January 18, 2012 Report 11/30/2011 Flintco Pacific, Inc.Construction 119,803 11/30/2011 Group 4 Architecture Research & Planning Architectural 1,722 11/30/2011 Group 4 Architecture Research & Planning Architectural 57,826 11/30/2011 Group 4 Architecture Research & Planning Architectural 4,789 11/30/2011 Flintco, Inc. Escrow Construction 837,115 *12/21/2011 Turner Construction Company Construction Management Services 187,775 12/21/2011 Turner Construction Company Construction Management Services 129,453 12/21/2011 Turner Construction Company Construction Management Services 233,061 12/21/2011 Turner Construction Company Construction Management Services 2,385 12/21/2011 Turner Construction Company Construction Management Services 109 12/21/2011 Group 4 Architecture Research & Planning Architectural 46,261 2/29/2012 West Coast Code Consultants, Inc.Plan Check 200 2/29/2012 Group 4 Architecture Research & Planning Architectural 1,600 3/21/2012 Group 4 Architecture Research & Planning Architectural 3,457 3/21/2012 Group 4 Architecture Research & Planning Architectural 19,603 2/1/2012 Flintco Pacific, Inc.Construction 940,940 2/1/2012 Flintco Pacific, Inc.Construction 104,549 2/1/2012 Group 4 Architecture Research & Planning Architectural 46,261 2/1/2012 Group 4 Architecture Research & Planning Architectural 654 March 28, 2012 Report 2/8/2012 Group 4 Architecture Research & Planning Architectural 6,417 2/24/2012 Turner Construction Company Construction Management Services 147,880 1/18/2012 Flintco Pacific, Inc.Construction 458,653 1/18/2012 Flintco Pacific, Inc.Construction 50,961 2/29/2012 Group 4 Architecture Research & Planning Architectural 46,261 3/21/2012 Flintco Pacific, Inc.Construction 722,810 3/21/2012 Flintco Pacific, Inc.Construction 80,312 3/21/2012 Group 4 Architecture Research & Planning Architectural 26,657 4/4/2012 Flintco Pacific, Inc.Construction 95,581 4/4/2012 Flintco Pacific, Inc. Escrow Construction 17,187 4/18/2012 Turner Construction Company Construction Management Services 129,709 4/18/2012 Turner Construction Company Construction Management Services 118,875 4/18/2012 Group 4 Architecture Research & Planning Architectural 2,100 4/18/2012 Group 4 Architecture Research & Planning Architectural 23,130 4/18/2012 Turner Construction Company Construction Management Services 120,219 5/9/2013 Sierra Traffic Markings Inc.Construction 7,990 5/9/2012 Group 4 Architecture Research & Planning Architectural 16,191 5/16/2012 Flintco Pacific, Inc.Construction 254,477 5/16/2012 Flintco Pacific, Inc. Escrow Construction 28,395 5/16/2012 Group 4 Architecture Research & Planning Architectural 2,069 5/16/2012 Group 4 Architecture Research & Planning Architectural 9,511 5/16/2012 Turner Construction Company Construction Management Services 116,415 6/20/2012 Group 4 Architecture Research & Planning Architectural 2,551 6/20/2012 Group 4 Architecture Research & Planning Architectural 16,191 July 5, 2012 Report 6/20/2012 Flintco Pacific, Inc.Construction 189,316 6/20/2012 Flintco Pacific, Inc. Escrow Construction 22,270 7/5/2012 West Coast Code Consultants, Inc.Plan Check 420 7/5/2012 West Coast Code Consultants, Inc.Plan Check 560 7/5/2012 West Coast Code Consultants, Inc.Plan Check 560 7/5/2012 West Coast Code Consultants, Inc.Plan Check 1,680 8 Payment Date Payee Description Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Mitchell Park Library and Community Center Activity Details (PE-09006) As of July 2, 2014 7/5/2012 West Coast Code Consultants, Inc.Plan Check 420 7/5/2012 West Coast Code Consultants, Inc.Plan Check 560 7/5/2012 West Coast Code Consultants, Inc.Plan Check 560 7/5/2012 West Coast Code Consultants, Inc.Plan Check 560 7/5/2012 West Coast Code Consultants, Inc.Plan Check 560 7/5/2012 West Coast Code Consultants, Inc.Plan Check 280 7/5/2012 West Coast Code Consultants, Inc.Plan Check 280 7/5/2012 Flintco Pacific, Inc. Escrow Construction 20,813 7/5/2012 Flintco Pacific, Inc.Construction 173,537 7/25/2012 Group 4 Architecture Research & Planning Architectural 762 7/25/2012 Group 4 Architecture Research & Planning Architectural 16,191 8/8/2012 Flintco Pacific, Inc.Construction 11,297 8/8/2012 Group 4 Architecture Research & Planning Architectural 16,191 October 30, 2012 Report 8/8/2012 Flintco Pacific, Inc.Construction 85,728 8/22/2012 Group 4 Architecture Research & Planning Architectural 280 9/26/2012 Group 4 Architecture Research & Planning Architectural 84,027 10/3/2012 Group 4 Architecture Research & Planning Architectural 16,191 10/10/2012 Turner Construction Company Construction 22,926 11/14/2012 Group 4 Architecture Research & Planning Architectural 20,325 11/19/2012 West Coast Code Consultants, Inc.Plan Check 350 11/19/2012 Flintco Pacific, Inc.Construction 383,239 11/19/2012 Flintco Pacific, Inc.Construction 88,321 11/19/2012 West Coast Code Consultants, Inc.Plan Check 420 12/12/2012 Flintco Pacific, Inc.Construction 608,951 12/12/2012 Flintco Pacific, Inc.Construction 81,614 12/12/2012 Flintco Pacific, Inc.Construction 505,497 12/12/2012 Flintco Pacific, Inc.Construction 96,133 12/19/2012 Group 4 Architecture Research & Planning Architectural 93,220 January 23, 2013 Report 12/19/2012 Group 4 Architecture Research & Planning Architectural 30,758 12/26/2012 Flintco Pacific, Inc.Construction 13,946 12/26/2012 Flintco Pacific, Inc.Construction 31,893 12/26/2012 Turner Construction Company Construction Management Services 270,207 12/26/2012 Turner Construction Company Construction Management Services 754,125 12/26/2012 Flintco Pacific, Inc.Construction 9,728 12/26/2012 Flintco Pacific, Inc.Construction 14,250 1/23/2013 West Coast Code Consultants, Inc.Plan Check 160 1/23/2013 West Coast Code Consultants, Inc.Plan Check 560 1/23/2013 Group 4 Architecture Research & Planning Architectural 626 1/23/2013 Group 4 Architecture Research & Planning Architectural 783 2/6/2013 Group 4 Architecture Research & Planning Architectural 68,238 2/20/2013 Group 4 Architecture Research & Planning Architectural 38,341 April 12, 2013 3/6/2013 Group 4 Architecture Research & Planning Architectural 2,775 4/3/2013 Group 4 Architecture Research & Planning Architectural 73,745 06/12/13 Flintco Pacific, Inc.Construction 59,916.00 06/12/13 Flintco Pacific, Inc.Construction 31,230.00 06/12/13 Flintco Pacific, Inc.Construction 27,261.00 06/12/13 Flintco Pacific, Inc.Construction 12,816.00 04/08/13 Flintco Pacific, Inc.Construction 249,800.00 04/08/13 Flintco Pacific, Inc.Construction 184,895.50 04/08/13 Flintco Pacific, Inc.Construction 29,765.00 05/03/13 Flintco Pacific, Inc.Construction 350,886.00 July 23, 2013 04/24/13 Group 4 Architecture Research & Planning Architectural 91,836.71 04/24/13 Group 4 Architecture Research & Planning Architectural 449.55 06/05/13 Group 4 Architecture Research & Planning Architectural 50,003.04 05/01/13 Ross McDonald Company, Inc.Construction Services 495,000.00 04/24/13 West Coast Code Consultants, Inc.Plan Check 320.00 06/17/13 Flintco Pacific, Inc.Construction 142,218.00 06/19/13 Flintco Pacific, Inc.Construction 27,637.00 06/26/13 Group 4 Architecture Research & Planning Architectural 73,498.25 07/17/13 Group 4 Architecture Research & Planning Architectural 46,031.07 07/19/13 Flintco Pacific, Inc.Construction 106,656.00 07/31/13 Flintco Pacific, Inc.Construction 34,269.00 08/07/13 Flintco Pacific, Inc.Construction 72,222.00 08/14/13 Group 4 Architecture Research & Planning Architectural 46,079.91 08/14/13 Flintco Pacific, Inc.Construction 8,025.00 Sept. 25, 2013 08/22/13 Flintco Pacific, Inc.Construction 500,976.00 08/28/13 Flintco Pacific, Inc.Construction 73,759.00 09/11/13 Group 4 Architecture Research & Planning Architectural 58,299.00 09/25/13 Turner Construction Company Construction Management Services 65,864.35 09/25/13 Sign & Services Company Construction Services 66,903.28 09/30/13 Flintco Pacific, Inc.Construction 564,671.00 10/02/13 Turner Construction Company Construction Management Services 450,004.48 10/02/13 Flintco Pacific, Inc.Construction 70,944.00 10/09/13 Group 4 Architecture Research & Planning Architectural 66,584.38 10/11/13 Flintco Pacific, Inc.Construction 580,658.00 10/30/13 Flintco Pacific, Inc.Construction 64,518.00 11/13/13 Moovers, Inc.Moving Services 2,280.00 December 24, 2013 9 Payment Date Payee Description Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Mitchell Park Library and Community Center Activity Details (PE-09006) As of July 2, 2014 11/13/13 Sign & Services Company Construction Services 94,812.80 11/20/13 Turner Construction Company Construction Management Services 143,602.02 12/05/13 Group 4 Architecture Research & Planning Architectural 54,193.34 12/11/13 Turner Construction Company Construction Management Services 158,901.11 12/11/13 Sign & Services Company Construction Services 76,096.34 12/18/13 Turner Construction Company Construction Management Services 134,322.20 12/18/13 Ross McDonald Company, Inc.Construction Services 47,705.00 12/23/13 Group 4 Architecture Research & Planning Architectural 47,489.70 02/26/14 Group 4 Architecture Research & Planning Architectural 43.72 01/22/14 Group 4 Architecture Research & Planning Architectural 4,555.50 02/26/14 Group 4 Architecture Research & Planning Architectural 674.22 02/26/14 Group 4 Architecture Research & Planning Architectural 37,815.00 04/02/14 Group 4 Architecture Research & Planning Architectural 19,826.26 01/22/14 Sign & Services Company Construction Services 106,141.35 April 16, 2014 02/26/14 Sign & Services Company Construction Services 57,626.27 02/12/14 Envision Ware, Inc.Professional services 19,365.11 02/12/14 Envision Ware, Inc.Professional services 422,298.28 04/02/14 Turner Construction Company Construction Management Services 136,131.68 04/02/14 Turner Construction Company Construction Management Services 143,257.39 04/02/14 Turner Construction Company Construction Management Services 102,807.00 01/29/14 Moovers, Inc.Moving Services 1,000.00 05/21/14 Moovers, Inc.Moving Services 580.00 03/05/14 Ross McDonald Company, Inc.Construction Services 54,891.00 03/31/14 Return of Flintco Escrow (Previously Expensed)(2,628,576.00) 05/14/14 Group 4 Architecture Research & Planning Architectural 12,284.10 05/21/14 Moovers, Inc.Moving Services 1,544.00 July 2, 2014 05/28/14 Turner Construction Company Construction Management Services 130,208.94 05/28/14 Turner Construction Company Construction Management Services 110,969.00 05/28/14 Muzak LLC Construction Services 100,317.01 05/23/14 Protech Consulting and Engineering Hazardous Material Testing 1,540.00 06/11/14 Group 4 Architecture Research & Planning Architectural 18,325.68 06/18/14 Turner Construction Company Construction Management Services 109,939.00 BIG-D Pacific Builders, LP Construction 105,425 Group 4 Architecture Research & Planning Architectural 243,201 Moovers, Inc.Moving Services 23,578 Muzak LLC Construction Services 121,675 Ross McDonald Company, Inc.Construction Services 115,816 Sign & Services Company Construction Services 52,130 Turner Construction Company Construction Management Services 1,638,128 West Coast Code Consultants, Inc.Plan Check 1,270 One Workplace L Ferrari Storage 52,990 Contract Office Group, Inc.Storage 3,800 Sub-total - Engineering Costs - 31,733,636 2,358,012 (34,091,649) Contract Contingency Summary of Expenditures as of July 21, 2010 104,373 08/03/10 Group 4 Architecture Research & Planning Architectural 1,771 10/05/10 Group 4 Architecture Research & Planning Architectural 25,951 Jan. 25, 2011 Report 10/19/10 Group 4 Architecture Research & Planning Architectural 10,740 2/1/2011 Flintco Pacific, Inc.Construction 41,725.00 2/18/2011 Flintco Pacific, Inc.Construction 248,603.00 April 26, 2011 Report 3/31/2011 Flintco Pacific, Inc.Construction 242,754.00 8/31/2011 W. L. Butler Construction, Inc.Construction 22,712.50 8/24/2011 Flintco Pacific, Inc.Construction 987,123.00 8/24/2011 Turner Construction Company Construction Management Services 151,367.49 8/24/2011 Flintco Inc. Escrow Construction 117,936.00 8/24/2011 Group 4 Architecture Research & Planning Architectural 48,250.00 October 25, 2011 Report 8/24/2011 Group 4 Architecture Research & Planning Architectural 57,825.84 8/24/2011 Flintco Pacific, Inc.Construction 74,304.00 10/5/2011 Group 4 Architecture Research & Planning Architectural 37,305.95 11/30/2011 Group 4 Architecture Research & Planning Architectural 20,265.95 January 18, 2012 11/30/2011 Flintco Pacific, Inc.Construction 241,110.00 2/29/2012 West Coast Code Consultants, Inc.Plan Check 840.00 2/29/2012 West Coast Code Consultants, Inc.Plan Check 560.00 2/29/2012 West Coast Code Consultants, Inc.Plan Check 840.00 2/29/2012 West Coast Code Consultants, Inc.Plan Check 560.00 2/29/2012 West Coast Code Consultants, Inc.Plan Check 360.00 March 28, 2012 Report 3/8/2012 Group 4 Architecture Research & Planning Architectural 9,937.25 2/29/2012 Turner Construction Company Construction Management Services 39,360.00 3/21/2012 Flintco Pacific, Inc.Construction 104,819.00 3/21/2012 Flintco Pacific, Inc.Construction 11,647.00 4/18/2012 Turner Construction Company Construction Management Services 656.00 4/4/2012 Group 4 Architecture Research & Planning Architectural 91,383.24 5/23/2012 Group 4 Architecture Research & Planning Architectural 25,039.15 7/5/2012 Group 4 Architecture Research & Planning Architectural 12,870.63 4/4/2012 Flintco Pacific, Inc.Construction 59,097.00 July 5, 2012 Report 5/16/2012 Flintco Pacific, Inc.Construction 1,077.00 6/20/2012 Turner Construction Company Construction Management Services 137,682.56 10 Payment Date Payee Description Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Mitchell Park Library and Community Center Activity Details (PE-09006) As of July 2, 2014 6/20/2012 Flintco Pacific, Inc.Construction 11,109.00 7/5/2012 Flintco Pacific, Inc.Construction 13,783.00 7/11/2012 Group 4 Architecture Research & Planning Architectural 65,495.00 8/22/2012 Group 4 Architecture Research & Planning Architectural 80,923.70 8/8/2012 Flintco Pacific, Inc.Construction 15,943.00 October 30, 2012 Report 10/3/2012 Turner Construction Company Construction Management Services 298,982.88 10/31/2012 Group 4 Architecture Research & Planning Architectural 1,578.00 12/26/2012 Group 4 Architecture Research & Planning Architectural 3,052.50 11/19/2012 Flintco Pacific, Inc.Construction 411,653.00 12/12/2012 Flintco Pacific, Inc.Construction 125,571.00 January 23, 2013 Report 12/12/2012 Flintco Pacific, Inc.Construction 359,703.00 12/26/2012 Flintco Pacific, Inc.Construction 73,605.00 12/26/2012 Flintco Pacific, Inc.Construction 96,352.00 04/08/13 Flintco Pacific, Inc.Construction 60,449 04/08/13 Flintco Pacific, Inc.Construction 31,269 04/08/13 Flintco Pacific, Inc.Construction 85,582 July 23, 2013 05/03/13 Flintco Pacific, Inc.Construction 188,366 05/01/13 4LEAF, Inc.Building Inspection 6,993 05/08/13 4LEAF, Inc.Building Inspection 8,381 07/19/13 Flintco Pacific, Inc.Construction 201,760 08/22/13 Flintco Pacific, Inc.Construction 162,856 08/07/13 4LEAF, Inc.Building Inspection 13,764 Sept. 25, 2013 08/07/13 4LEAF, Inc.Building Inspection 14,708 08/07/13 4LEAF, Inc.Building Inspection 11,045 09/18/13 4LEAF, Inc.Building Inspection 16,706 6/14/2013 Flintco Pacific, Inc.Construction 106,512.00 9/25/2013 Sign & Services Company Construction Services 40,944.00 December 24, 2013 9/30/2013 Flintco Pacific, Inc.Construction 73,825.00 1/22/2014 Group 4 Architecture Research & Planning Architectural 34,884.50 4/2/2014 Group 4 Architecture Research & Planning Architectural 12,600.00 4/16/2014 Group 4 Architecture Research & Planning Architectural 19,892.80 April 16, 2014 2/5/2014 4LEAF, Inc.Building Inspection 14,929.50 3/5/2014 4LEAF, Inc.Building Inspection 12,654.00 3/26/2014 4LEAF, Inc.Building Inspection 999.00 Flintco Pacific, Inc.Construction 2,952,474 Sub-total - Contract Contingency - 5,607,715 2,952,474 (8,560,188) Other Contract Services Summary of Expenditures as of July 21, 2010 93,750 07/01/11 FedEx Mailing 89 08/26/10 Bruce Beasley Sculpture 90,000 Oct. 21, 2010 Report 09/30/11 FedEx Coding Error Correction (89) October 25, 2011 Report 11/16/11 Jarvis, Fay, Doporto & Gibson, LLP Legal Services - Mitchell Park Library 3,776 12/21/11 ZFA Structural Engineers Mitchell Library Review 2,925 12/29/11 Jarvis, Fay, Doporto & Gibson, LLP Legal Services for Mitchell Park Library 11,170 January 18, 2012 Report 12/29/11 State Water Resource Board Permit 505 02/08/12 Riedinger Consulting Outside Counsel 9,136 01/25/12 ZFA Structural Engineers Mitchell Library Review 9,289 01/25/12 ZFA Structural Engineers Mitchell Library Review 3,118 02/29/12 Jarvis, Fay, Doporto & Gibson, LLP Legal Services for Mitchell Park Library 6,625 March 28, 2012 Report 02/29/12 Jarvis, Fay, Doporto & Gibson, LLP Legal Services for Mitchell Park Library 9,960 02/29/12 Jarvis, Fay, Doporto & Gibson, LLP Legal Services for Mitchell Park Library 10,423 03/14/12 Envision Ware, Inc.Professional services 5,850 04/04/12 ZFA Structural Engineers Mitchell Library Review 2,518 04/04/12 Riedinger Consulting Outside Counsel 28,371 04/04/12 Riedinger Consulting Outside Counsel 10,235 04/04/12 Riedinger Consulting Outside Counsel 24,585 05/09/12 Jam Services 3,897 July 5, 2012 Report 05/09/12 Jarvis, Fay, Doporto & Gibson, LLP Legal Services for Mitchell Park Library 6,647 05/09/12 Jarvis, Fay, Doporto & Gibson, LLP Legal Services for Mitchell Park Library 5,212 06/13/12 ZFA Structural Engineers Mitchell Library Review 1,732 06/20/12 Jarvis, Fay, Doporto & Gibson, LLP Legal Services for Mitchell Park Library 4,549 06/20/12 Blackstone Discovery Legal Services for Mitchell Park Library 319 08/15/12 Otis and Iriki, Inc.Legal Services for Mitchell Park Library 35,618 09/12/12 County of Santa Clara Mitchell Snack Bar - Environmental Health 220 October 30, 2012 Report 09/12/12 Otis and Iriki, Inc.Legal Services for Mitchell Park Library 30,348 09/05/12 Bruce Beasley Sculpture 1,900 10/24/12 Otis and Iriki, Inc.Legal Services for Mitchell Park Library 15,610 10/24/12 Otis and Iriki, Inc.Legal Services for Mitchell Park Library 38,608 10/24/12 Otis and Iriki, Inc.Legal Services for Mitchell Park Library 33,684 January 23, 2013 Report 10/24/12 Otis and Iriki, Inc.Legal Services for Mitchell Park Library 77,708 12/31/12 City of Palo Alto - Public Works Mitchell Park Library - Plan Review 12 03/26/14 3M Library Systems Library Self Check Stations 258 3/20/2013 Bruce Beasley Sculpture 40,000 02/13/13 Ginn and Crosby, LLC Legal Services 1,272 02/13/13 Ginn and Crosby, LLC Legal Services 48 04/03/13 Moscone Emblidge Sater & Otis, LLP Legal Services 49,268 April 12, 2013 04/03/13 Moscone Emblidge Sater & Otis, LLP Legal Services 13,517 11 Payment Date Payee Description Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Mitchell Park Library and Community Center Activity Details (PE-09006) As of July 2, 2014 04/03/13 Moscone Emblidge Sater & Otis, LLP Legal Services 12,961 04/03/13 Moscone Emblidge Sater & Otis, LLP Legal Services 132,792 07/31/13 Ginn and Crosby, LLC Legal Services 2,688 07/31/13 Ginn and Crosby, LLC Legal Services 8,016 Sept. 25, 2013 10/30/13 Bruce Beasley Sculpture 50,000 December 24, 2013 02/05/14 Ginn and Crosby, LLC Legal Services 8,376 02/12/14 Ginn and Crosby, LLC Legal Services 7,111 April 16, 2014 03/26/14 Ginn and Crosby, LLC Legal Services 4,224 06/18/14 Ginn and Crosby, LLC Legal Services 1,248.00 06/18/14 Ginn and Crosby, LLC Legal Services 2,304.00 01/15/14 Ginn and Crosby, LLC Legal Services 14,952 02/26/14 National Construction Rentals Natl. Const. Rentals/Fencing&windscreen 2,317 03/05/14 United Site Services, Inc.Rental of Portable Toilets & Temporary Fencing 638 03/05/14 United Site Services, Inc.Rental of Portable Toilets & Temporary Fencing 635 July 2, 2014 03/12/14 United Site Services, Inc.Rental of Portable Toilets & Temporary Fencing 251 04/30/14 Ginn and Crosby, LLC Legal Services 1,044 06/18/14 Mobile Modular Management Corp.Rental of Trailers 759 06/18/14 Mobile Modular Management Corp.Rental of Trailers 759 06/18/14 Mobile Modular Management Corp.Rental of Trailers 759 12/23/13 One Workplace L Ferrari Additional Storage (Reduction in Exp. from prev. drawdown) (8,890) Envision Ware, Inc.Sorter System 46,851 Ginn and Crosby, LLC Legal Services 141,978 Protect Consulting and Engineering Hazardous Material Testing 100,000 Riedinger Consulting Legal Services 12,673 Sub-total - Other Contract Services - 925,606 301,502 (1,227,108) City (Inter-department) Service Charge Summary of Expenditures as of July 21, 2010 176,008 09/30/10 City of Palo Alto - Planning Permit Fees - Mitchell Park Library - Bldg A 70,153 09/30/10 City of Palo Alto - Planning Permit Fees - Mitchell Park Teen Center - Bldg B 10,768 09/30/10 City of Palo Alto - Planning Permit Fees - Mitchell Park Multipurpose Center - Bldg C 21,184 Oct. 21, 2010 Report 09/30/10 City of Palo Alto - Planning Demolition Permit MPL - 3700 Middlefield 525 09/30/10 City of Palo Alto - Planning Demolition Permit MPCC - 3800 Middlefield 525 09/28/10 City of Palo Alto - Planning Permit (Grading and Fill)1,830 10/31/10 City of Palo Alto - Planning Revision permit for Mitchell Park Library & CC 141 11/16/10 City of Palo Alto - Planning Architectural Review Board Fees 2,090 Jan. 25, 2011 Report 01/31/11 Palo Alto Stores Supplies/Parts 101 03/31/11 Palo Alto Stores Supplies/Parts 97 03/31/11 Palo Alto Stores Supplies/Parts 4,045 April 26, 2011 Report 03/31/11 Palo Alto Stores Supplies/Parts 89 03/31/11 Palo Alto Stores Supplies/Parts 661 06/14/10 Palo Alto Stores Reversal of Prior Charges (2,834) 03/29/11 Palo Alto Stores Reversal of Prior Charges (628) 03/30/11 Palo Alto Stores Reversal of Prior Charges (571) July 26, 2011 Report 04/04/11 Palo Alto Stores Reversal of Prior Charges (143) 04/30/11 City of Palo Alto - Public Works Underground Fire Supply/Hydrant Permit Fee 1,335 07/06/11 City of Palo Alto - Development Center Plan Check Fee 93 07/06/11 City of Palo Alto - Planning Plan Check Fee 89 08/31/11 City of Palo Alto - Planning Plan Review - modify permit 133 08/31/11 City of Palo Alto - Planning Plan Review - modify permit 105 08/31/11 City of Palo Alto - Planning Plan Review - modify permit 137 08/31/11 City of Palo Alto - Planning Plan Review - modify permit 133 October 25, 2011 Report 08/31/11 City of Palo Alto - Planning Plan Review - modify permit 105 08/31/11 City of Palo Alto - Planning Plan Review - modify permit 121 08/31/11 City Of Palo Alto - Development Center Mitchell Library Plan Check 145 08/31/11 City Of Palo Alto - Development Center Mitchell Library Plan Check 277 08/31/11 City Of Palo Alto - Planning Mitchell Library Plan Check 40 09/30/11 City of Palo Alto - Planning Mitchell Library - Permit Revision 89 10/31/11 City of Palo Alto - Development Center Plan Check Fee 113 January 18, 2012 10/31/11 City of Palo Alto - Development Center Plan Check Fee 325 11/30/11 City of Palo Alto - Planning Plan Review - modify permit 97 11/30/11 City of Palo Alto - Planning Plan Review - modify permit 121 11/30/11 City of Palo Alto - Planning Plan Review - modify permit 121 11/30/11 City of Palo Alto - Planning Plan Review - modify permit 109 01/31/12 City of Palo Alto - Planning Plan Review - modify permit 85 01/31/12 City of Palo Alto - Planning Plan Review - modify permit 4,056 March 28, 2012 12/31/11 City of Palo Alto - Planning Plan Review - modify permit 93 12/21/11 City of Palo Alto - Planning Plan Review - modify permit 85 02/29/12 City of Palo Alto - Planning Plan Review - modify permit 89 02/29/12 City of Palo Alto - Planning Plan Review - modify permit 121 04/25/12 City of Palo Alto - Stores Inventory Conduit, Rgid Steel T/C 10Ft length 2"180.99 04/25/12 City of Palo Alto - Stores Inventory Pipes - Valves - Fitting 3.62 04/30/12 City of Palo Alto - Planning Plan Review (Electrical Veh. Chargers permit)977 05/16/12 City of Palo Alto - Planning Plan Review (Ceiling Structural Chgs.) - Mitchell 344 05/16/12 City of Palo Alto - Planning Plan Review (foundation, framing, plumbing) - Mitchell Park L 364 July 5, 2012 05/16/12 City of Palo Alto - Planning Plan Review (Solar Water Heater) - Mitchell Park Library 165 12 Payment Date Payee Description Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Mitchell Park Library and Community Center Activity Details (PE-09006) As of July 2, 2014 05/16/12 City of Palo Alto - Planning Plan Review - Mitchell Park Library 137 05/31/12 City of Palo Alto - Planning MP -Plan Review for electrical signage permit 112 06/28/12 City of Palo Alto - Planning Plan Review - Mitchell Park Library 105 06/29/12 City of Palo Alto - Planning Plan Review - Mitchell Park Library 105 06/29/12 City of Palo Alto - Planning Plan Review - Mitchell Park Library 300 06/29/12 City of Palo Alto - Planning Plan Review - Mitchell Park Library 151 October 30, 2012 09/14/12 City of Palo Alto - Planning Plan Review - Mitchell Park Library 89 09/14/12 City of Palo Alto - Planning Plan Review - Mitchell Park Library 137 11/30/12 City of Palo Alto - Public Works Mitchell Park Library - Plan Review 116 12/31/12 City of Palo Alto - Public Works Mitchell Park Library - Plan Review 7 January 23, 2013 Report 03/31/13 City of Palo Alto - Development Center Architectural Review 92 April 12, 2013 04/17/13 Ginn and Crosby, LLC Legal Services 225 04/17/13 Ginn and Crosby, LLC Legal Services 432 06/05/13 Ginn and Crosby, LLC Legal Services 144 06/05/13 Ginn and Crosby, LLC Legal Services 5,243 06/05/13 Javis, Fay, Doporto & Gibson, LLP Legal Services 16,570 July 23, 2013 06/05/13 Javis, Fay, Doporto & Gibson, LLP Legal Services 38 06/19/13 David Neagley, AIA Legal Services 1,624 01/30/14 Brad Oldham Internation, Inc.Install of Stainless Owls 49 01/30/14 Brad Oldham Internation, Inc.Install of Stainless Owls 565 July 2, 2014 David Neagley, AIA Legal Services 273,376 Sub-total - City (Inter-department) Service Charge - 320,534 273,376 (593,910) Miscellaneous Cost Summary of Expenditures as of July 21, 2010 3,315 06/30/10 Office Max (US Bank-Calcard) - Reversed Reverse office supplies charged to project (246) 06/30/10 Debra Jacobs Reverse prior travel and meeting expense (6) Oct. 21, 2010 Report 06/30/10 Karen Bengard Reverse prior travel and meeting expense (20) 06/30/10 Hung Nguyen Reverse prior travel and meeting expense (11) 06/30/10 Hung Nguyen Reverse prior travel and meeting expense (20) 03/30/11 Palo Alto Stores Supplies/Parts 4 April 26, 2011 Report 03/30/11 Palo Alto Stores Supplies/Parts 214 03/30/11 Palo Alto Stores Reversal of Prior Charges (4) 03/30/11 Palo Alto Stores Reversal of Prior Charges (214) July 26, 2011 Report 04/21/11 City of Palo Alto - Utilities Utility Connection Fee 68,559 02/15/12 Palo Alto Stores Supplies/Parts 4 02/15/12 Palo Alto Stores Supplies/Parts 176 March 28, 2012 Report 02/15/12 Palo Alto Stores Supplies/Parts 218 02/15/12 Palo Alto Stores Supplies/Parts 4 12/31/12 State Water Resources Control Board Submitting Permit Registration Documents 505 January 23, 2013 Report 02/06/13 4LEAF, Inc.Building Inspection 2,553 02/06/13 4LEAF, Inc.Building Inspection 8,769 April 12, 2013 03/13/13 4LEAF, Inc.Building Inspection 9,213 03/13/13 4LEAF, Inc.Building Inspection 10,656 08/21/13 4LEAF, Inc.Building Inspection 15,318 10/30/13 4LEAF, Inc.Building Inspection 9,713 12/05/13 4LEAF, Inc.Building Inspection 14,430 12/18/13 4LEAF, Inc.Building Inspection 14,708 10/16/13 Computerland of Silicon Valley Wi-Fi Connectivity (Wireless Access Points (WAPs) )25,615 December 24, 2013 11/26/13 CDW Government Uninterruptable Power Supplies for Computers 6,134 12/05/13 CDW Government Uninterruptable Power Supplies for Computers 301 12/18/13 State Water Resources Control Board Submitting Permit Registration Documents 664 11/06/13 Bibliotheca, Inc.Security Gates 12,375 04/23/14 4LEAF, Inc.Building Inspection 1,332 06/04/14 4LEAF, Inc.Building Inspection 1,887 July 2, 2014 Sub-total - Miscellaneous Cost - 206,144 - (206,144) Grant Total 47,725,437 38,793,635 5,885,363 3,046,438 13 Payment Date Purchasing Document Payee Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Project Budget Original Budget (per Measure N Ballot Measure) 18,000,000$ Budget Change 4,342,563 Sub-total - 2010 Engineer's Budget Estimate 22,342,563 - - 22,342,563 Engineering, Architectural, Constr., and Publishing (Reproduction) Costs 10/05/10 Group 4 Architecture Research and Planning Architectural 73,246 10/05/10 Group 4 Architecture Research and Planning Architectural 700 10/05/10 Group 4 Architecture Research and Planning Architectural 73,246 11/02/10 Group 4 Architecture Research and Planning Architectural 5,785 11/02/10 Group 4 Architecture Research and Planning Architectural 122,100 Jan. 25, 2011 Report 12/07/10 Group 4 Architecture Research and Planning Architectural 2,390 01/04/11 Group 4 Architecture Research and Planning Architectural 15,000 01/04/11 Group 4 Architecture Research and Planning Architectural 583 01/04/11 Group 4 Architecture Research and Planning Architectural 859 01/04/11 Turner Construction Company Construction Management Services 1,195 02/24/11 Group 4 Architecture Research and Planning Architectural 4,860 03/18/11 Group 4 Architecture Research and Planning Architectural 73,246 03/18/11 Group 4 Architecture Research and Planning Architectural 7,500 03/18/11 Group 4 Architecture Research and Planning Architectural 53 03/18/11 Group 4 Architecture Research and Planning Architectural 3,843 04/11/11 Group 4 Architecture Research and Planning Architectural 112,464 04/11/11 Group 4 Architecture Research and Planning Architectural 3,993 04/11/11 Group 4 Architecture Research and Planning Architectural 7,500 01/21/11 Group 4 Architecture Research and Planning Architectural 24,392 April 26, 2011 Report 01/21/11 Turner Construction Company Construction Management Services 1,434 01/21/11 Group 4 Architecture Research and Planning Architectural 2,500 01/24/11 Group 4 Architecture Research and Planning Architectural 1,500 01/21/11 Group 4 Architecture Research and Planning Architectural 447 02/18/11 Turner Construction Company Construction Management Services 478 02/18/11 Group 4 Architecture Research and Planning Architectural 48,831 02/18/11 Group 4 Architecture Research and Planning Architectural 2,653 02/18/11 Group 4 Architecture Research and Planning Architectural 3,238 05/12/11 Group 4 Architecture Research and Planning Architectural 6,250 05/12/11 Group 4 Architecture Research and Planning Architectural 40,052 05/12/11 Group 4 Architecture Research and Planning Architectural 12,411 05/12/11 Group 4 Architecture Research and Planning Architectural 3,263 05/17/11 Group 4 Architecture Research and Planning Architectural 4,553 July 26, 2011 Report 06/09/11 Group 4 Architecture Research and Planning Architectural 31,374 07/01/11 Turner Construction Company Construction Management Services 9,169 07/11/11 Group 4 Architecture Research and Planning Architectural 11,100 07/11/11 Group 4 Architecture Research and Planning Architectural 488 07/11/11 Group 4 Architecture Research and Planning Architectural 15,687 07/27/11 Group 4 Architecture Research and Planning Architectural 319 07/27/11 Group 4 Architecture Research and Planning Architectural 1,150 07/27/11 Group 4 Architecture Research and Planning Architectural 1,875 07/27/11 Turner Construction Company Construction Management Services 5,572 08/10/11 Group 4 Architecture Research and Planning Architectural 31,374 08/24/11 Turner Construction Company Construction Management Services 2,868 October 25, 2011 Report 08/31/11 Group 4 Architecture Research and Planning Architectural 117 08/31/11 Group 4 Architecture Research and Planning Architectural 175 08/31/11 Group 4 Architecture Research and Planning Architectural 248 09/14/11 Group 4 Architecture Research and Planning Architectural 67 09/14/11 Group 4 Architecture Research and Planning Architectural 600 09/14/11 Group 4 Architecture Research and Planning Architectural 39,218 10/26/11 Group 4 Architecture Research and Planning Architectural 5,000 10/26/11 Group 4 Architecture Research and Planning Architectural 235,308 10/26/11 Group 4 Architecture Research and Planning Architectural 878 10/26/11 Group 4 Architecture Research and Planning Architectural 5,000 10/26/11 Group 4 Architecture Research and Planning Architectural 291 10/26/11 Group 4 Architecture Research and Planning Architectural 27 11/02/11 Group 4 Architecture Research and Planning Architectural 78,436 11/02/11 Group 4 Architecture Research and Planning Architectural 7,500 11/22/11 Group 4 Architecture Research and Planning Architectural 8,514 12/07/11 Group 4 Architecture Research and Planning Architectural 62,749 January 18, 2012 Report 12/14/11 Group 4 Architecture Research and Planning Architectural 12,584 12/14/11 Group 4 Architecture Research and Planning Architectural 79,172 12/14/11 Group 4 Architecture Research and Planning Architectural 12,584 12/21/11 Protect Consulting and Engineering Hazardous Material Testing 3,530 12/21/11 Group 4 Architecture Research and Planning Architectural 3,052 01/11/12 Group 4 Architecture Research and Planning Architectural 225 01/11/12 Group 4 Architecture Research and Planning Architectural 9,761 01/11/12 Group 4 Architecture Research and Planning Architectural 70,592 01/11/12 Group 4 Architecture Research and Planning Architectural 150 01/11/12 Group 4 Architecture Research and Planning Architectural 247 Rinconada Library (former Main) Activity Details (PE-11000) As of July 2, 2014 14 Payment Date Purchasing Document Payee Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Rinconada Library (former Main) Activity Details (PE-11000) As of July 2, 2014 02/22/12 Group 4 Architecture Research and Planning Architectural 10,000 02/22/12 Group 4 Architecture Research and Planning Architectural 62,749 02/22/12 Group 4 Architecture Research and Planning Architectural 8,676 02/22/12 Group 4 Architecture Research and Planning Architectural 3,590 March 28, 2012 Report 03/21/12 Group 4 Architecture Research and Planning Architectural 1,330 03/21/12 Group 4 Architecture Research and Planning Architectural 5,423 03/21/12 Group 4 Architecture Research and Planning Architectural 39,218 02/22/12 BIG-D Pacific Builders, LP Construction 32,500 12/21/12 BIG-D Pacific Builders, LP Construction 36,960 04/04/12 Group 4 Architecture Research and Planning Architectural 18,925 04/18/12 Group 4 Architecture Research and Planning Architectural 1,500 04/18/12 Group 4 Architecture Research and Planning Architectural 19 04/18/12 Group 4 Architecture Research and Planning Architectural 9,784 05/16/12 Group 4 Architecture Research and Planning Architectural 3,278 July 5, 2012 Report 05/16/12 Group 4 Architecture Research and Planning Architectural 29,046 05/30/12 Group 4 Architecture Research and Planning Architectural 39,504 06/20/12 Group 4 Architecture Research and Planning Architectural 13,884 07/05/12 Group 4 Architecture Research and Planning Architectural 407 07/05/12 Group 4 Architecture Research and Planning Architectural 2,500 07/25/12 Group 4 Architecture Research and Planning Architectural 1,613 07/25/12 Group 4 Architecture Research and Planning Architectural 1,535 07/25/12 Group 4 Architecture Research and Planning Architectural 1,992 October 30, 2012 Report 09/05/12 Group 4 Architecture Research and Planning Architectural 7,551 09/26/12 Group 4 Architecture Research and Planning Architectural 5,996 10/31/12 Turner Construction Company Construction Management Services 7,444 11/19/12 Group 4 Architecture Research and Planning Architectural 2,097 11/19/12 Group 4 Architecture Research and Planning Architectural 5,423 11/19/12 Group 4 Architecture Research and Planning Architectural 8,000 11/19/12 Group 4 Architecture Research and Planning Architectural 270 11/19/12 Group 4 Architecture Research and Planning Architectural 2,097 10/31/12 Turner Construction Company Construction Management Services 10,000 January 23, 2013 Report 10/11/12 Fastsigns signs 389 01/09/13 NOVA Partners, Inc.Construction Management Services 19,320 01/23/13 Group 4 Architecture Research and Planning Architectural 2,500 01/23/13 Group 4 Architecture Research and Planning Architectural 969 01/23/13 Group 4 Architecture Research and Planning Architectural 4,979 01/23/13 Group 4 Architecture Research and Planning Architectural 725 01/23/13 NOVA Partners, Inc.Construction Management Services 12,010 02/06/13 Group 4 Architecture Research and Planning Architectural 3,243 02/27/13 West Coast Code Consultants, Inc.Plan Check 13,300 02/27/13 NOVA Partners, Inc.Construction Management Services 18,280 April 12, 2013 03/06/13 Group 4 Architecture Research and Planning Architectural 30,776 04/03/13 NOVA Partners, Inc.Construction Management Services 17,000 04/24/13 Group 4 Architecture Research and Planning Architectural 13 05/08/13 Group 4 Architecture Research and Planning Architectural 479 05/08/13 Group 4 Architecture Research and Planning Architectural 9,324 05/22/13 Group 4 Architecture Research and Planning Architectural 1,641 05/22/13 Group 4 Architecture Research and Planning Architectural 157 July 23, 2013 04/24/13 NOVA Partners, Inc.Construction Management Services 16,360 05/22/13 NOVA Partners, Inc.Construction Management Services 18,280 04/10/13 ARC Signs 71 05/01/13 ARC signs 210 06/19/13 Metropolitan Van and Storage, Inc.Equipment Moving 31,367 06/26/13 NOVA Partners, Inc.Construction Management Services 6,134 07/31/13 NOVA Partners, Inc.Construction Management Services 31,565 08/21/13 NOVA Partners, Inc.Construction Management Services 30,750 08/21/13 West Coast Code Consultants, Inc.Plan Check 1,185 Sept. 25, 2013 08/21/13 Group 4 Architecture Research and Planning Architectural 34 07/27/13 Group 4 Architecture Research and Planning Architectural 17,341 08/21/13 Group 4 Architecture Research and Planning Architectural 43,310 09/25/13 S.J. Amoroso Construction Construction 1,396,323 09/25/13 ARC Reproductive Services 52 10/02/13 NOVA Partners, Inc.Construction Management Services 35,578 10/16/13 Group 4 Architecture Research and Planning Architectural 86,670 10/23/13 NOVA Partners, Inc.Construction Management Services 38,025 10/30/13 S.J. Amoroso Construction Construction 771,030 December 24, 2013 11/20/13 NOVA Partners, Inc.Construction Management Services 37,554 12/05/13 Group 4 Architecture Research and Planning Architectural 43,360 12/11/13 S.J. Amoroso Construction Construction 1,204,872 12/18/13 NOVA Partners, Inc.Construction Management Services 41,811 12/23/13 S.J. Amoroso Construction Construction 876,464 01/29/14 NOVA Partners, Inc.Construction Management Services 42,311 02/26/14 NOVA Partners, Inc.Construction Management Services 34,852 03/26/14 NOVA Partners, Inc.Construction Management Services 30,855 04/16/14 West Coast Code Consultants, Inc.Plan Check 613 01/29/14 Protech Consulting and Engineering Hazardous Material Testing 22,580 15 Payment Date Purchasing Document Payee Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Rinconada Library (former Main) Activity Details (PE-11000) As of July 2, 2014 01/29/14 S.J. Amoroso Construction Construction 857,070 03/05/14 S.J. Amoroso Construction Construction 1,098,894 April 16, 2014 04/02/14 S.J. Amoroso Construction Construction 1,045,937 01/29/14 Group 4 Architecture Research and Planning Architectural 43,360 02/26/14 Group 4 Architecture Research and Planning Architectural 43,360 01/29/14 Group 4 Architecture Research and Planning Architectural 43,360 04/02/14 Group 4 Architecture Research and Planning Architectural 188,020 04/16/14 Group 4 Architecture Research and Planning Architectural 43,350 03/26/14 ARC Reproduction Services 258 11/29/04 Envision Ware, Inc.Professional services 41,731 05/14/14 NOVA Partners, Inc.Construction Management Services 37,950 05/28/14 NOVA Partners, Inc.Construction Management Services 39,369 06/04/14 Group 4 Architecture Research and Planning Architectural 18,900 06/25/14 NOVA Partners, Inc.Construction Management Services 35,540 July 2, 2014 04/23/14 S.J. Amoroso Construction Construction 1,058,321 05/28/14 S.J. Amoroso Construction Construction 1,487,530 06/04/14 Group 4 Architecture Research and Planning Architectural 86,702 06/25/14 Group 4 Architecture Research and Planning Architectural 86,746 07/02/14 S.J. Amoroso Construction Construction 1,852,722 Group 4 Architecture Research and Planning Architectural 499,842 Turner Construction Company Construction Management Services 34,986 West Coast Code Consultants, Inc.Plan Check 1,600 NOVA Partners, Inc.Construction Management Services 203,909 S.J. Amoroso Construction Construction 6,267,620 Envision Ware, Inc.Professional services 371,125 Golden Gate Systems Professional services 42,962 AT&T Engineering Professional services 6,298 Applied Materials / Engineering, Inc.Professional services 24,160 Sub-total - Engineering and Architectural Costs - 14,884,658 7,452,502 (22,337,160) Contract Contingency 05/27/11 Group 4 Architecture Research and Planning Architectural 22,152 July 26, 2011 Report 06/09/11 Group 4 Architecture Research and Planning Architectural 571 02/22/12 Group 4 Architecture Research and Planning Architectural 122 March 28, 2012 Report 11/19/12 Group 4 Architecture Research and Planning Architectural 124 January 23, 2013 Report 04/03/13 Group 4 Architecture Research and Planning Architectural 8,442 April 12, 2013 03/06/13 Group 4 Architecture Research and Planning Architectural 8,442 04/24/13 Group 4 Architecture Research and Planning Architectural 6,300 05/22/13 Group 4 Architecture Research and Planning Architectural 64,633 July 23, 2013 06/05/13 Group 4 Architecture Research and Planning Architectural 27,225 07/17/13 Group 4 Architecture Research and Planning Architectural 12,658 07/17/13 Group 4 Architecture Research and Planning Architectural 3,150 Sept. 25, 2013 08/21/13 Group 4 Architecture Research and Planning Architectural 9,900 08/21/13 Group 4 Architecture Research and Planning Architectural 9,900 06/21/13 NOVA Partners, Inc.Construction Management Services 9,480.00 December 24, 2013 04/16/14 Group 4 Architecture Research and Planning Architectural 15,750.00 April 16, 2014 04/23/14 S.J. Amoroso Construction Construction 16,461.00 July 2, 2014 Metropolitan Van and Storage, Inc.Equipment Moving 35,650 Protech Consulting and Engineering Hazardous Material Testing 2,280 Sub-total - Contract Contingency - 215,310 37,930 (253,240) Other Contract Services 12/05/12 Planet Orange Termite Inspection Fee 350 12/31/12 Fastsigns Sign 226 12/19/12 Creative Machines, Inc.Plans and Technical Drawings 52,000 12/19/12 Creative Machines, Inc.Plans and Technical Drawings 12,000 10/31/12 City of Palo Alto - Public Works Main Library Renovation - Plan Check Fee 115,654 12/06/12 City of Palo Alto - Development Center Architectural Review 2,678 January 23, 2013 Report 12/06/12 City of Palo Alto - Development Center Architectural Review 25 12/06/12 City of Palo Alto - Development Center Architectural Review 20 12/06/12 City of Palo Alto - Development Center Architectural Review 622 12/06/12 City of Palo Alto - Development Center Architectural Review 2,892 12/06/12 City of Palo Alto - Development Center Architectural Review 252 04/24/13 FedEx Mailing 111 04/24/13 FedEx Mailing 98 July 23, 2013 04/17/13 FedEx Mailing 111 06/30/13 Fastsigns Signs 1,423 07/31/13 Metropolitan Van and Storage, Inc.Equipment Moving 1,365 Sept. 25, 2013 08/21/13 Metropolitan Van and Storage, Inc.Equipment Moving 1,365 10/02/13 Metropolitan Van and Storage, Inc.Equipment Moving 1,365 10/09/13 Metropolitan Van and Storage, Inc.Equipment Moving 1,365 11/13/13 Metropolitan Van and Storage, Inc.Equipment Moving 500 December 24, 2013 11/20/13 Metropolitan Van and Storage, Inc.Equipment Moving 1,365 16 Payment Date Purchasing Document Payee Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Rinconada Library (former Main) Activity Details (PE-11000) As of July 2, 2014 12/18/13 Metropolitan Van and Storage, Inc.Equipment Moving 1,665 04/02/14 Metropolitan Van and Storage, Inc.Equipment Moving 1,365 02/12/14 Metropolitan Van and Storage, Inc.Equipment Moving 1,365 April 16, 2014 04/02/14 Metropolitan Van and Storage, Inc.Equipment Moving 1,365 01/29/14 FedEx Mailing 47 05/15/14 Protech Consulting and Engineering Hazardous Material Testing 3,270 05/07/14 Creative Machines, Inc.Plans and Technical Drawings 13,000 06/11/14 Metropolitan Van and Storage, Inc.Equipment Moving 1,365 05/28/14 Metropolitan Van and Storage, Inc.Equipment Moving 1,365 July 2, 2014 05/21/14 Metropolitan Van and Storage, Inc.Equipment Moving 1,365 06/25/14 Metropolitan Van and Storage, Inc.Equipment Moving 800 07/02/14 AT&T Engineering and Construction 6,298 03/31/14 Envision Ware, Inc.Professional services 157 Creative Machines, Inc.Plans and Technical Drawings 13,000 Schaff & Wheeler Consulting Storm Water (Third Party 3,100 Sub-total - Other Contract Services - 229,214 16,100 (245,314) City (Inter-department) Service Charge Sub-total - City (Inter-department) Service Charge - - - - Miscellaneous Cost 02/27/13 Fastsigns Signage 589.75 April 12, 2013 Sub-total - Miscellaneous Cost - 590 - (590) Grant Total 22,342,563 15,329,771 7,506,532 (493,740) 17 Payment Date Payee Description Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Project Budget Temporary Mitchell Park Library (Council Approved - CMR: 463:09) 645,000 Budget Change - gg Sub-total - 2010 Engineer's Budget Estimate 645,000 - - 645,000 Engineering, Architectural, Constr., and Publishing (Reproduction) Costs Summary of Expenditures as of July 21, 2010 439,283$ 10/05/10 Group 4 Architecture Research & Planning Architectural 5,774 Oct. 21, 2010 Report 08/24/10 Group 4 Architecture Research & Planning Architectural 329 01/27/11 Johnstone Moyer, Inc.Temp. Library Improvements 19,191 April 26, 2011 Report Group 4 Architecture Research & Planning Architectural 12,362 Ross McDonald Company, Inc.Construction Services 6,740 Sub-total - Engineering and Architectural Costs - 464,577 19,102 (483,679) Contract Contingency Summary of Expenditures as of July 21, 2010 2,541 08/24/10 Johnstone Moyer, Inc.Temp. Library Improvements 24,604 Oct. 21, 2010 Report 08/27/10 West Corporation Temp. Lib. - Security Access Card & Alarm 310 01/27/11 Johnstone Moyer, Inc.Temp. Library Improvements 6,045 April 26, 2011 Report West Corporation Temp. Lib. - Security Access Card & Alarm Group 4 Architecture Research & Planning Architectural 4,759 Sub-total - Contract Contingency - 33,500 4,759 (38,259) City (Inter-department) Service Charge Summary of Expenditures as of July 21, 2010 11,247 March 28, 2012 Report Sub-total - City (Inter-department) Service Charge - 11,247 - (11,247) Miscellaneous Cost Summary of Expenditures as of July 21, 2010 125 March 28, 2012 Report Sub-total - Miscellaneous Cost - 125 - (125) Grant Total 645,000 509,448 23,861 111,691 Temporary Library at Cubberley (for Mitchell Facility) - Activity Details (PE-09010) As of July 2, 2014 18 Payment Date Payee Description Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Project Budget Temporary Main Library Facility - Art Center Auditorium 500,000 Sub-total - 2010 Engineer's Budget Estimate 500,000 - - 500,000 Engineering, Architectural, Constr., and Publishing (Reproduction) Costs Summary of Expenditures as of July 21, 2010 -$ 04/04/12 Group 4 Architecture Research & Planning Architectural 15,687 July 5, 2012 Report 04/04/12 Group 4 Architecture Research & Planning Architectural 11,288 07/25/12 Group 4 Architecture Research & Planning Architectural 1,121 October 30, 2012 Report 06/15/76 Ross McDonald Company, Inc.Library Shelving 7,176 06/19/13 Big-D Pacific Builders, LP Construction Services 253,627 July 23, 2013 08/16/13 Big-D Pacific Builders, LP Construction Services 29,997 Sept. 25, 2013 Ross McDonald Company, Inc.Library Shelving 1,101 Group 4 Architecture Research & Planning Architectural 137 Sub-total - Engineering and Architectural Costs - 318,896 1,237 (320,133) Contract Contingency Summary of Expenditures as of July 21, 2010 - 04/30/13 Fastsigns Signs 593 04/30/13 Metropolitan Van and Storage, Inc.Equipment Moving 380 04/30/13 Fastsigns Signs 598 July 23, 2013 04/30/13 Fastsigns Signs 41 Ross McDonald Company, Inc.Library Shelving 828 Group 4 Architecture Research & Planning Architectural 2,823 Sub-total - Contract Contingency - 1,612 3,651 (5,263) City (Inter-department) Service Charge Summary of Expenditures as of July 21, 2010 - 04/30/13 City of Palo Alto - Planning Architectural Review 384 04/30/13 City of Palo Alto - Development Center Architectural Review 216 July 23, 2013 05/31/13 City of Palo Alto _ Development Center Architectural Review 122,489 06/30/13 City of Palo Alto _ Development Center Architectural Review 636 Sept. 25, 2013 Sub-total - City (Inter-department) Service Charge - 123,725 - (123,725) Miscellaneous Cost Summary of Expenditures as of July 21, 2010 - Sub-total - Miscellaneous Cost - - - - Grant Total 500,000 444,233 4,888 50,879 Art Center Temporary Library - Activity Details (Project # PE-11012) As of July 2, 2014 19 12345 6 7 8 (3 minus 1) (5 minus 1) (5 minus 4) (7 divide by 4) Measure N Estimates Changes in Measure Estimates Engineer's Estimate Project Budget September 2014 Projected Costs Diff. Between Measure N Estimates vs. Projected Costs $ Diff. Between Project Budget vs. Projected Costs % Diff. Between Project Budget vs. Projected Costs Downtown Library 4,000,000$ 1,212,000$ 5,212,000$ 4,212,000$ 4,191,782$ (191,782) 20,218$ 0.5% Mitchell Park & Community Center Library 50,000,000 (957,000) 49,043,000 47,725,437 47,384,021 2,615,979 341,416 0.7% Cubberley Temporary Library - 645,000 645,000 645,000 619,687 (619,687) 25,313 3.9% Rinconada (aka Main) Library *18,000,000 2,100,000 20,100,000 22,342,563 22,417,563 (4,417,563) (75,000) (0.3%) Art Center Temporary Library - 500,000 500,000 500,000 536,509 (536,509) (36,509) (7.3%) Total Prior to Bond Financing Costs 72,000,000 3,500,000 75,500,000 75,425,000 75,149,562 (3,149,562) 275,438 0.4% Bond Financing Costs **4,000,000 (3,500,000) 500,000 500,000 185,320 3,814,680 314,680 62.9% Grand Total 76,000,000$ -$ 76,000,000$ 75,925,000$ 75,334,882$ 665,118$ 590,118$ 0.8% *The Rinconada Library Project Budget and Projected Costs excludes $500,000 in non-bondable expenses for connectivity between the Library and the Art Center funded by PF-09007, and excludes $1,800,000 in bondable expenses that are currently being funded by the Infrastructure Reserve. ** The actual bond issuance cost is substantially lower than the Measure N estimate due to avoidance of Capitalized Interest costs. Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance % Diff. Between Engineer's Est. vs. Remaining Bal. Budget Original Budget (per Measure N Ballot Measure)72,000,000$ -$ -$ 72,000,000$ Temporary Mitchell Park Library (Council Approved - CMR: 463:09)645,000 645,000 Temporary Main Library Facility - Art Center Auditorium 500,000 500,000 Net Other Budget Changes 2,280,000 2,280,000 Expenditures - Engineering, Architectural, Constr., and Publishing (Reproduction) Costs 56,010,245 6,830,785 (62,841,029) Construction Costs - - - Contract Contingency 6,809,578 97 (6,809,675) Other Contract Services 1,273,694 - (1,273,694) City (Inter-department) Service Charge 501,007 - (501,007) Miscellaneous Cost 210,565 - (210,565) Total Library Projects Expenditures 75,425,000 64,805,088 6,830,882 3,789,030 Estimate of Pending Commitments/Costs - - 3,513,592 (3,513,592) Total Bond Funds Less Bond Financing Costs 75,425,000 64,805,088 10,344,474 275,438 0.4% Bond Financing Costs (a)500,000 185,320 - 314,680 62.9% Grand Total 75,925,000$ 64,990,408$ 10,344,474$ 590,118$ 0.8% 2010 GO Bond True Interest Cost (TIC)4.21% 2013 GO Bond True Interest Cost (TIC)3.85% ** The actual bond issuance cost is substantially lower than the Measure N estimate due to avoidance of Capitalized Interest costs. Budget History and Projection Description of Activity Library Projects Budget to Actual Activities Summary Library Bond Oversight Committee Quarterly Financial Report City of Palo Alto As of October 8, 2014 (Revised) 1 Library Bond Oversight Committee Quarterly Financial Report City of Palo Alto As of October 8, 2014 (Revised) Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance % Diff. Between Engineer's Est. vs. Remaining Bal. Original Budget (per Measure N Ballot Measure) 4,000,000$ -$ -$ 4,000,000$ Budget Change 212,000 212,000 Expenditures Engineering, Architectural, Constr., and Publishing (Reproduction) Costs 3,617,992 45,706 (3,663,698) Construction Costs - - - - Contract Contingency - 462,490 97 (462,587) Other Contract Services - 27,925 - (27,925) City (Inter-department) Service Charge - 45,501 - (45,501) Miscellaneous Cost - 3,163 - (3,163) Total Library Projects Expenditures 4,212,000 4,157,071 45,802 9,127 Estimate of Pending Commitments/Costs - - (11,091) 11,091 Total Bond Funds Less Bond Financing Costs 4,212,000$ 4,157,071$ 34,711$ 20,218$ 0.5% Reasons for Budget Increase of:212,000$ 1) Seismic upgrade 30,000$ July 2010 2) Roof replacement 125,000 June 2011 3) LEED - Green building upgrades 100,000 4) Construction Management Services increase 400,000 5) Fixed Equipment 187,000 6) Moving costs deemed to be bondable costs 50,000 7) Contingency adjustment 320,000 8) Transfer to Main Library (1,000,000) Net Budget Change 212,000$ Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance % Diff. Between Engineer's Est. vs. Remaining Bal. Original Budget (per Measure N Ballot Measure) 50,000,000$ -$ -$ 50,000,000$ Budget Change (2,274,563) (2,274,563) Expenditures Engineering, Architectural, Constr., and Publishing (Reproduction) Costs 30,985,136 5,338,279 (36,323,416) Contract Contingency - 6,095,725 - (6,095,725) Other Contract Services - 986,100 - (986,100) City (Inter-department) Service Charge - 320,534 - (320,534) Miscellaneous Cost - 206,687 - (206,687) Total Library Projects Expenditures 47,725,437 38,594,183 5,338,279 3,792,975 Estimate of Pending Commitments/Costs 3,451,559 (3,451,559) Total Bond Funds Less Bond Financing Costs 47,725,437$ 38,594,183$ 8,789,838$ 341,416$ 0.7% Reasons for Budget Decrease of:(2,274,563)$ 1) LEED - Green building (Council approved) upgrades 1,200,000$ 2) Fixed Equipment 1,750,000 3) Moving costs deemed to be bondable costs 100,000 4) Contingency adjustment (4,007,000) 5) Transfer to Main Library Project (1,317,563) Net Budget Change (2,274,563)$ Description of Activity Mitchell Park Library and Community Center Budget to Actual Activities Summary (PE-09006) Downtown Library Budget to Actual Activities Summary (PE-09005) Completed: Construction Began: Description of Activity 2 Library Bond Oversight Committee Quarterly Financial Report City of Palo Alto As of October 8, 2014 (Revised) Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance % Diff. Between Engineer's Est. vs. Remaining Bal. Original Budget (per Measure N Ballot Measure)18,000,000$ -$ -$ 18,000,000 Budget Change 4,342,563 4,342,563 Expenditures Engineering, Architectural, Constr., and Publishing (Reproduction) Costs 20,623,643 1,435,172 (22,058,815) Contract Contingency - 216,251 - (216,251) Other Contract Services - 259,669 - (259,669) City (Inter-department) Service Charge - - - - Miscellaneous Cost - 590 - (590) Total Library Projects Expenditures 22,342,563 21,100,153 1,435,172 (192,762) Estimate of Pending Commitments/Costs (117,762) 117,762 Total Bond Funds Less Bond Financing Costs 22,342,563$ 21,100,153$ 1,317,410$ (75,000)$ (0.3%) Reasons for Budget Increase of:4,342,563$ Lowest Accepted Bids Exceeded the Engineer's Estimates 4,342,563$ Net Budget Change 4,342,563$ *The Rinconada Library Project Budget and Projected Costs excludes $500,000 in non-bondable expenses for connectivity between the Library and the Art Center funded by PF-09007, and excludes $1,800,000 in bondable expenses that are currently being funded by the Infrastructure Reserve. Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance % Diff. Between Engineer's Est. vs. Remaining Bal. Temporary Mitchell Park Library (Council Approved - CMR: 463:09)645,000$ -$ -$ 645,000$ Budget Change -$ - Expenditures Engineering, Architectural, Constr., and Publishing (Reproduction) Costs 464,577 6,740 (471,317) Contract Contingency - 33,500 - (33,500) City (Inter-department) Service Charge - 11,247 - (11,247) Miscellaneous Cost - 125 - (125) Total Library Projects Expenditures 645,000 509,448 6,740 128,812 Estimate of Pending Commitments/Costs 103,499 (103,499) Total Bond Funds Less Bond Financing Costs 645,000$ 509,448$ 110,239$ 25,313$ 3.9% Description of Activity Cubberley Temporary Library Budget to Actual Activities Summary (PE-09010) Description of Activity Rinconada (aka Main) Library Budget to Actual Activities Summary (PE-11000) 3 Library Bond Oversight Committee Quarterly Financial Report City of Palo Alto As of October 8, 2014 (Revised) Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance % Diff. Between Engineer's Est. vs. Remaining Bal. Temporary Main Library Facility - Art Center Auditorium 500,000$ -$ -$ 500,000$ Expenditures Engineering, Architectural, Constr., and Publishing (Reproduction) Costs 318,896 4,888 (323,784) Contract Contingency - 1,612 - (1,612) Other Contract Services - City (Inter-department) Service Charge - 123,725 - (123,725) Miscellaneous Cost - - - - Total Library Projects Expenditures 500,000 444,233 4,888 50,879 Estimate of Pending Commitments/Costs 87,388 (87,388) Total Bond Funds Less Bond Financing Costs 500,000$ 444,233$ 92,276$ (36,509)$ (7.3%) Description of Activity Art Center Temporary Library Budget to Actual Activities Summary (Project # PE-11012) 4 Payment or Posting Date Payee Description Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Project Budget Original Budget (per Measure N Ballot Measure)4,000,000 Budget Change 212,000 Sub-total - 2010 Engineer's Budget Estimate 4,212,000 - - 4,212,000 Engineering, Architectural, Constr., and Publishing (Reproduction) Costs Summary of Expenditures as of July 21, 2010 418,563 08/24/10 Group 4 Architecture Research & Planning Architectural 362 09/21/10 Group 4 Architecture Research & Planning Architectural 135 08/03/10 Group 4 Architecture Research & Planning Architectural 16,233 08/03/10 Group 4 Architecture Research & Planning Architectural 56,000 08/10/10 Protech Consulting and Engineering Hazardous Material Testing 5,210 08/10/10 Turner Construction Company Construction Management Services 68,577 Oct. 21, 2010 Report 09/21/10 Group 4 Architecture Research & Planning Architectural 15 09/21/10 Group 4 Architecture Research & Planning Architectural 18,080 09/21/10 Group 4 Architecture Research & Planning Architectural 2,970 09/21/10 W.L. Butler Construction, Inc.Construction 93,177 10/05/10 Protech Consulting and Engineering Hazardous Material Testing 990 10/19/10 Group 4 Architecture Research & Planning Architectural 10,544 11/02/10 W. L. Butler Construction, Inc.Construction 69,984 11/02/10 Turner Construction Company Construction Management Services 27,984 11/02/10 Group 4 Architecture Research & Planning Architectural 11,864 12/07/10 Turner Construction Company Construction Management Services 55,174 12/07/10 Group 4 Architecture Research & Planning Architectural 11,688 Jan. 25, 2011 Report 12/07/10 W. L. Butler Construction, Inc.Construction 92,055 12/14/10 Group 4 Architecture Research & Planning Architectural 519 12/14/10 W. L. Butler Construction, Inc.Construction 159,940 01/04/11 Turner Construction Company Construction Management Services 27,984 01/07/11 Group 4 Architecture Research & Planning Architectural 11,688 01/21/11 West Coast Code Consultants, Inc.Plan Check 350 01/21/11 Turner Construction Company Construction Management Services 30,212 01/31/11 W. L. Butler Construction, Inc.Construction 211,220 02/18/11 W. L. Butler Construction, Inc.Construction 279,472 02/18/11 Group 4 Architecture Research & Planning Architectural 8,766 02/18/11 Turner Construction Company Construction Management Services 27,429 03/16/11 W. L. Butler Construction, Inc.Construction 277,033 April 26, 2011 Report 03/18/11 Group 4 Architecture Research & Planning Architectural 432 03/18/11 Group 4 Architecture Research & Planning Architectural 409 03/18/11 Group 4 Architecture Research & Planning Architectural 8,766 03/18/11 Group 4 Architecture Research & Planning Architectural 136 03/31/11 Pivot Interiors Design 2,250 03/31/11 Turner Construction Company Construction Management Services 17,808 04/07/11 Group 4 Architecture Research & Planning Architectural 13,149 04/19/11 Group 4 Architecture Research & Planning Architectural 2,795 04/25/11 W. L. Butler Construction, Inc.Construction 342,711 05/10/11 Turner Construction Company Construction Management Services 39,522 05/12/11 Group 4 Architecture Research & Planning Architectural 220 05/12/11 Group 4 Architecture Research & Planning Architectural 24,891 05/12/11 Group 4 Architecture Research & Planning Architectural 14,610 July 26, 2011 Report 05/17/11 Turner Construction Company Construction Management Services 28,334 05/27/11 W. L. Butler Construction, Inc.Construction 238,387 06/07/11 W. L. Butler Construction, Inc.Construction 352,713 06/07/11 Group 4 Architecture Research & Planning Architectural 14,610 06/09/11 Moovers, Inc.Moving Services 10,233 06/16/11 Group 4 Architecture Research & Planning Architectural 233 07/20/11 Group 4 Architecture Research & Planning Architectural 479.16 07/20/11 Group 4 Architecture Research & Planning Architectural 12,405 07/27/11 W.L. Butler Construction, Inc.Construction 157,980 07/27/11 Turner Construction Company Construction Management Services 26,028 08/31/11 Group 4 Architecture Research & Planning Architectural 19,560 October 25, 2011 Report 08/10/11 Group 4 Architecture Research & Planning Architectural 137 08/10/11 Group 4 Architecture Research & Planning Architectural 5,100 08/24/11 Turner Construction Company Construction Management Services 38,160 08/31/11 W.L. Butler Construction, Inc.Construction 137,659 09/14/11 Group 4 Architecture Research & Planning Architectural 2,550 09/14/11 Group 4 Architecture Research & Planning Architectural 1,116 12/07/11 Group 4 Architecture Research & Planning Architectural 5,100.00 10/19/11 Turner Construction Company Construction Management Services 1,176.00 12/21/11 Turner Construction Company Construction Management Services 3,806.42 January 18, 2012 11/09/11 Group 4 Architecture Research & Planning Architectural 1,146.02 12/07/11 W.L. Butler Construction, Inc.Construction 64,873.60 02/08/12 Group 4 Architecture Research & Planning Architectural 29.33 02/08/12 W.L. Butler Construction, Inc.Construction 22,796.10 02/22/12 Group 4 Architecture Research & Planning Architectural 8,407.90 March 28, 2012 Report 03/08/12 Group 4 Architecture Research & Planning Architectural 1,275.00 03/21/12 Group 4 Architecture Research & Planning Architectural 6.82 08/22/12 Group 4 Architecture Research & Planning Architectural 1,268.06 October 30, 2012 Report Downtown Library Activity Details (PE-09005) As of October 8, 2014 5 Payment or Posting Date Payee Description Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Downtown Library Activity Details (PE-09005) As of October 8, 2014 10/03/12 Group 4 Architecture Research & Planning Architectural 70.96 01/09/13 Turner Construction Company Construction Management Services 434.00 January 23, 2013 Report Group 4 Architecture Research Architectural 41,593 Moovers, Inc.Moving Services 4,113 Sub-total - Engineering and Architectural Costs - 3,617,992 45,706 (3,663,698) Contract Contingency Summary of Expenditures as of July 21, 2010 19,140 10/19/10 Group 4 Architecture Research & Planning Architectural 660 10/19/10 Group 4 Architecture Research & Planning Architectural 4,070 Oct. 21, 2010 Report 08/27/10 Asbestos Management Group Hazardous Material Testing 2,500 02/28/11 City of Palo Alto - Planning Plan Check Fee 93 April 26, 2011 Report 02/18/11 W. L. Butler Construction, Inc.Construction 15,686 04/25/11 W. L. Butler Construction, Inc.Construction 59,235 05/27/11 W. L. Butler Construction, Inc.Construction 163,149 07/01/11 Turner Construction Company Construction Management Services 1,123 July 26, 2011 Report 07/01/11 Turner Construction Company Construction Management Services 24,611 06/07/11 Group 4 Architecture Research & Planning Architectural 5,104 06/07/11 Group 4 Architecture Research & Planning Architectural 3,489 07/27/11 Group 4 Architecture Research & Planning Architectural 9,339 October 25, 2011 Report 08/31/11 W. L. Butler Construction, Inc.Construction 13,299 03/08/12 Group 4 Architecture Research & Planning Architectural 4,094 March 28, 2012 Report 02/08/12 W. L. Butler Construction, Inc.Construction 113,631 09/19/12 W. L. Butler Construction, Inc.Construction 10,000 October 30, 2012 Report 01/09/13 Turner Construction Company Construction Management Services 13,266 January 23, 2013 Report Turner Construction Company Construction Management Services 97 Sub-total - Contract Contingency - 462,490 97 (462,587) Other Contract Services Summary of Expenditures as of July 21, 2010 2,225 08/27/10 Asbestos Management Group Hazardous Material Testing 25,700 Oct. 21, 2010 Report Sub-total - Other Contract Services - 27,925 - (27,925) City (Inter-department) Service Charge Summary of Expenditures as of July 21, 2010 43,990 07/13/11 City of Palo Alto - Public Works Parking Permit 230 October 25, 2011 Report 07/13/11 City of Palo Alto - Public Works Parking Permit 420 10/31/10 City of Palo Alto - Planning Plan Checking 861 Jan. 25, 2011 Report Sub-Total - City (Inter-department) Service Charge - 45,501 - (45,501) Miscellaneous Cost Summary of Expenditures as of July 21, 2010 3,158 04/10/11 Santa Clara County Downtown-Notice of Completion Filing Fee 5 January 18, 2012 Report Sub-total - Miscellaneous Cost - 3,163 - (3,163) Grant Total 4,212,000 4,157,071 45,802 9,127 6 Payment Date Payee Description Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Project Budget Original Budget (per Measure N Ballot Measure)50,000,000$ Budget Change (2,274,563) Sub-total - 2010 Engineer's Budget Estimate 47,725,437 - - 47,725,437 Engineering, Architectural, Constr., and Publishing (Reproduction) Costs Summary of Expenditures as of July 21, 2010 3,101,748 08/03/10 Group 4 Architecture Research & Planning Architectural 37,609 08/10/10 Group 4 Architecture Research & Planning Architectural 18,595 10/05/10 Group 4 Architecture Research & Planning Architectural 7,522 10/05/10 Group 4 Architecture Research & Planning Architectural 13,942 10/05/10 Group 4 Architecture Research & Planning Architectural 2,971 07/27/10 Moovers, Inc.Moving Services 435 09/21/10 Turner Construction Company Construction Management Services 163,918 10/19/10 Group 4 Architecture Research & Planning Architectural 47,110 10/19/10 State Water Resources Control Board Submitting Permit Registration Documents 375 Oct. 21, 2010 Report 10/19/10 Group 4 Architecture Research & Planning Architectural 18,517 08/03/10 Peninsula Digital Imaging Reproduction Services 3,066 08/03/10 Peninsula Digital Imaging Reproduction Services 2,401 08/03/10 Peninsula Digital Imaging Reproduction Services 5,105 08/03/10 Peninsula Digital Imaging Reproduction Services 2,119 11/02/10 Bank of Sacramento - Flintco Pacific Escrow Construction 86,542 11/02/10 Flintco Pacific, Inc.Construction 778,876 11/02/10 Group 4 Architecture Research & Planning Architectural 1,037 12/07/10 Turner Construction Company Construction Management Services 635 12/07/10 Turner Construction Company Construction Management Services 70,780 12/07/10 Turner Construction Company Construction Management Services 64,319 12/07/10 Protech Consulting and Engineering Hazardous Material Testing 8,385 12/07/10 Peninsula Digital Imaging Reproduction Services 7,672 12/14/10 West Coast Code Consultants, Inc.Plan Check 26,820 12/14/10 Group 4 Architecture Research & Planning Architectural 46,200 Jan. 25, 2011 Report 12/21/10 Group 4 Architecture Research & Planning Architectural 46,297 12/21/10 Flintco Pacific, Inc.Construction 732,895 12/21/10 Flintco Pacific, Inc. Escrow 2841-042 Construction 81,433 12/28/10 Flintco Pacific, Inc.Construction 757,231 12/28/10 Flintco Pacific, Inc. Escrow 2841-042 Construction 84,137 01/04/11 Group 4 Architecture Research & Planning Architectural 2,942 01/04/11 Group 4 Architecture Research & Planning Architectural 4,564 01/04/11 Turner Construction Company Construction Management Services 73,919 1/21/2011 Group 4 Architecture Research & Planning Architectural 267 1/21/2011 Group 4 Architecture Research & Planning Architectural 46,261 1/21/2011 Turner Construction Company Construction Management Services 105,917 2/1/2011 Flintco Pacific, Inc.Construction 1,098,865 2/1/2011 Flintco Pacific, Inc. Escrow 2841-042 Construction 126,732 2/18/2011 Flintco Pacific, Inc.Construction 1,497,190 2/18/2011 Turner Construction Company Construction Management Services 94,502 2/18/2011 Flintco Pacific, Inc. Escrow 2841-042 Construction 193,977 2/24/2011 Group 4 Architecture Research & Planning Architectural 46,261 3/10/2011 West Coast Code Consultants, Inc.Plan Check 1,820 3/10/2011 West Coast Code Consultants, Inc.Plan Check 1,680 3/16/2011 West Coast Code Consultants, Inc.Plan Check (560) 3/16/2011 West Coast Code Consultants, Inc.Plan Check 560 April 26, 2011 Report 3/16/2011 Protech Consulting and Engineering Hazardous Material Testing 1,250 3/17/2011 West Coast Code Consultants, Inc.Plan Check 560 3/18/2011 Group 4 Architecture Research & Planning Architectural 46,261 3/31/2011 Flintco Pacific, Inc.Construction 446,177 3/31/2011 Flintco Pacific, Inc. Escrow 2841-042 Construction 76,548 3/31/2011 Turner Construction Company Construction Management Services 94,572 4/11/2011 Group 4 Architecture Research & Planning Architectural 4,219 4/11/2011 Group 4 Architecture Research & Planning Architectural 127 4/11/2011 Group 4 Architecture Research & Planning Architectural 7,366 4/11/2011 Group 4 Architecture Research & Planning Architectural 80,956 4/20/2011 West Coast Code Consultants, Inc.Plan Check 140 4/20/2011 West Coast Code Consultants, Inc.Plan Check 280 4/20/2011 West Coast Code Consultants, Inc.Plan Check 560 3/29/2011 Palo Alto Stores Supplies/Parts 1,342 4/25/2011 Flintco Pacific, Inc. Escrow 2841-042 Construction 85,140 4/25/2011 Flintco Pacific, Inc.Construction 766,263 4/26/2011 Group 4 Architecture Research & Planning Architectural 2,528 5/10/2011 Turner Construction Company Construction Management Services 82,594 5/12/2011 Group 4 Architecture Research & Planning Architectural 683 5/12/2011 Group 4 Architecture Research & Planning Architectural 80,956 5/17/2011 Turner Construction Company Construction Management Services 101,701 5/17/2011 Flintco Pacific, Inc.Construction 815,307 July 26, 2011 Report 5/17/2011 Flintco Pacific, Inc. Escrow 2841-042 Construction 93,874 5/17/2011 Flintco Pacific, Inc.Construction 29,559 7/1/2011 Turner Construction Company Construction Management Services 99,493 Mitchell Park Library and Community Center Activity Details (PE-09006) As of October 8, 2014 7 Payment Date Payee Description Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Mitchell Park Library and Community Center Activity Details (PE-09006) As of October 8, 2014 7/1/2011 Group 4 Architecture Research & Planning Architectural 19,540 7/1/2011 Group 4 Architecture Research & Planning Architectural 3,109 7/1/2011 Group 4 Architecture Research & Planning Architectural 17,038 7/1/2011 Group 4 Architecture Research & Planning Architectural 92,521 July 26, 2011 Report 7/1/2011 Group 4 Architecture Research & Planning Architectural 8,314 7/5/2011 Flintco Pacific, Inc. Escrow 2841-042 Construction 125,101 7/5/2011 Flintco Pacific, Inc.Construction 1,125,909 7/27/2011 Group 4 Architecture Research & Planning Architectural 57,826 7/27/2011 Group 4 Architecture Research & Planning Architectural 13,045 7/27/2011 Group 4 Architecture Research & Planning Architectural 1,954 7/27/2011 Flintco Pacific, Inc.Construction 2,316,525 7/27/2011 Flintco Inc. Escrow Construction 257,391 7/27/2011 Turner Construction Company Construction Management Services 127,367 October 25, 2011 Report 10/5/2011 Group 4 Architecture Research & Planning Architectural 1,898 10/5/2011 Group 4 Architecture Research & Planning Architectural 57,826 10/5/2011 Group 4 Architecture Research & Planning Architectural 1,647 10/5/2011 Flintco Pacific, Inc.Construction 483,144 10/5/2011 Flintco, Inc. Escrow Construction 53,683 10/19/2011 Turner Construction Company Construction Management Services 170,058 11/2/2011 Flintco Pacific, Inc.Construction 705,850 11/2/2011 Group 4 Architecture Research & Planning Architectural 57,826 11/2/2011 Group 4 Architecture Research & Planning Architectural 2,060 11/2/2011 Flintco Pacific, Inc.Construction 78,428 11/30/2011 West Coast Code Consultants, Inc.Plan Check 420 11/30/2011 West Coast Code Consultants, Inc.Plan Check 560 11/30/2011 West Coast Code Consultants, Inc.Plan Check 560 11/30/2011 Group 4 Architecture Research & Planning Architectural 2,051 11/30/2011 West Coast Code Consultants, Inc.Plan Check 700 January 18, 2012 Report 11/30/2011 Flintco Pacific, Inc.Construction 119,803 11/30/2011 Group 4 Architecture Research & Planning Architectural 1,722 11/30/2011 Group 4 Architecture Research & Planning Architectural 57,826 11/30/2011 Group 4 Architecture Research & Planning Architectural 4,789 11/30/2011 Flintco, Inc. Escrow Construction 837,115 *12/21/2011 Turner Construction Company Construction Management Services 187,775 12/21/2011 Turner Construction Company Construction Management Services 129,453 12/21/2011 Turner Construction Company Construction Management Services 233,061 12/21/2011 Turner Construction Company Construction Management Services 2,385 12/21/2011 Turner Construction Company Construction Management Services 109 12/21/2011 Group 4 Architecture Research & Planning Architectural 46,261 2/29/2012 West Coast Code Consultants, Inc.Plan Check 200 2/29/2012 Group 4 Architecture Research & Planning Architectural 1,600 3/21/2012 Group 4 Architecture Research & Planning Architectural 3,457 3/21/2012 Group 4 Architecture Research & Planning Architectural 19,603 2/1/2012 Flintco Pacific, Inc.Construction 940,940 2/1/2012 Flintco Pacific, Inc.Construction 104,549 2/1/2012 Group 4 Architecture Research & Planning Architectural 46,261 2/1/2012 Group 4 Architecture Research & Planning Architectural 654 March 28, 2012 Report 2/8/2012 Group 4 Architecture Research & Planning Architectural 6,417 2/24/2012 Turner Construction Company Construction Management Services 147,880 1/18/2012 Flintco Pacific, Inc.Construction 458,653 1/18/2012 Flintco Pacific, Inc.Construction 50,961 2/29/2012 Group 4 Architecture Research & Planning Architectural 46,261 3/21/2012 Flintco Pacific, Inc.Construction 722,810 3/21/2012 Flintco Pacific, Inc.Construction 80,312 3/21/2012 Group 4 Architecture Research & Planning Architectural 26,657 4/4/2012 Flintco Pacific, Inc.Construction 95,581 4/4/2012 Flintco Pacific, Inc. Escrow Construction 17,187 4/18/2012 Turner Construction Company Construction Management Services 129,709 4/18/2012 Turner Construction Company Construction Management Services 118,875 4/18/2012 Group 4 Architecture Research & Planning Architectural 2,100 4/18/2012 Group 4 Architecture Research & Planning Architectural 23,130 4/18/2012 Turner Construction Company Construction Management Services 120,219 5/9/2013 Sierra Traffic Markings Inc.Construction 7,990 5/9/2012 Group 4 Architecture Research & Planning Architectural 16,191 5/16/2012 Flintco Pacific, Inc.Construction 254,477 5/16/2012 Flintco Pacific, Inc. Escrow Construction 28,395 5/16/2012 Group 4 Architecture Research & Planning Architectural 2,069 5/16/2012 Group 4 Architecture Research & Planning Architectural 9,511 5/16/2012 Turner Construction Company Construction Management Services 116,415 6/20/2012 Group 4 Architecture Research & Planning Architectural 2,551 6/20/2012 Group 4 Architecture Research & Planning Architectural 16,191 July 5, 2012 Report 6/20/2012 Flintco Pacific, Inc.Construction 189,316 6/20/2012 Flintco Pacific, Inc. Escrow Construction 22,270 7/5/2012 West Coast Code Consultants, Inc.Plan Check 420 7/5/2012 West Coast Code Consultants, Inc.Plan Check 560 7/5/2012 West Coast Code Consultants, Inc.Plan Check 560 7/5/2012 West Coast Code Consultants, Inc.Plan Check 1,680 8 Payment Date Payee Description Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Mitchell Park Library and Community Center Activity Details (PE-09006) As of October 8, 2014 7/5/2012 West Coast Code Consultants, Inc.Plan Check 420 7/5/2012 West Coast Code Consultants, Inc.Plan Check 560 7/5/2012 West Coast Code Consultants, Inc.Plan Check 560 7/5/2012 West Coast Code Consultants, Inc.Plan Check 560 7/5/2012 West Coast Code Consultants, Inc.Plan Check 560 7/5/2012 West Coast Code Consultants, Inc.Plan Check 280 7/5/2012 West Coast Code Consultants, Inc.Plan Check 280 7/5/2012 Flintco Pacific, Inc. Escrow Construction 20,813 7/5/2012 Flintco Pacific, Inc.Construction 173,537 7/25/2012 Group 4 Architecture Research & Planning Architectural 762 7/25/2012 Group 4 Architecture Research & Planning Architectural 16,191 8/8/2012 Flintco Pacific, Inc.Construction 11,297 8/8/2012 Group 4 Architecture Research & Planning Architectural 16,191 October 30, 2012 Report 8/8/2012 Flintco Pacific, Inc.Construction 85,728 8/22/2012 Group 4 Architecture Research & Planning Architectural 280 9/26/2012 Group 4 Architecture Research & Planning Architectural 84,027 10/3/2012 Group 4 Architecture Research & Planning Architectural 16,191 10/10/2012 Turner Construction Company Construction 22,926 11/14/2012 Group 4 Architecture Research & Planning Architectural 20,325 11/19/2012 West Coast Code Consultants, Inc.Plan Check 350 11/19/2012 Flintco Pacific, Inc.Construction 383,239 11/19/2012 Flintco Pacific, Inc.Construction 88,321 11/19/2012 West Coast Code Consultants, Inc.Plan Check 420 12/12/2012 Flintco Pacific, Inc.Construction 608,951 12/12/2012 Flintco Pacific, Inc.Construction 81,614 12/12/2012 Flintco Pacific, Inc.Construction 505,497 12/12/2012 Flintco Pacific, Inc.Construction 96,133 12/19/2012 Group 4 Architecture Research & Planning Architectural 93,220 January 23, 2013 Report 12/19/2012 Group 4 Architecture Research & Planning Architectural 30,758 12/26/2012 Flintco Pacific, Inc.Construction 13,946 12/26/2012 Flintco Pacific, Inc.Construction 31,893 12/26/2012 Turner Construction Company Construction Management Services 270,207 12/26/2012 Turner Construction Company Construction Management Services 754,125 12/26/2012 Flintco Pacific, Inc.Construction 9,728 12/26/2012 Flintco Pacific, Inc.Construction 14,250 1/23/2013 West Coast Code Consultants, Inc.Plan Check 160 1/23/2013 West Coast Code Consultants, Inc.Plan Check 560 1/23/2013 Group 4 Architecture Research & Planning Architectural 626 1/23/2013 Group 4 Architecture Research & Planning Architectural 783 2/6/2013 Group 4 Architecture Research & Planning Architectural 68,238 2/20/2013 Group 4 Architecture Research & Planning Architectural 38,341 April 12, 2013 3/6/2013 Group 4 Architecture Research & Planning Architectural 2,775 4/3/2013 Group 4 Architecture Research & Planning Architectural 73,745 06/12/13 Flintco Pacific, Inc.Construction 59,916.00 06/12/13 Flintco Pacific, Inc.Construction 31,230.00 06/12/13 Flintco Pacific, Inc.Construction 27,261.00 06/12/13 Flintco Pacific, Inc.Construction 12,816.00 04/08/13 Flintco Pacific, Inc.Construction 249,800.00 04/08/13 Flintco Pacific, Inc.Construction 184,895.50 04/08/13 Flintco Pacific, Inc.Construction 29,765.00 05/03/13 Flintco Pacific, Inc.Construction 350,886.00 July 23, 2013 04/24/13 Group 4 Architecture Research & Planning Architectural 91,836.71 04/24/13 Group 4 Architecture Research & Planning Architectural 449.55 06/05/13 Group 4 Architecture Research & Planning Architectural 50,003.04 05/01/13 Ross McDonald Company, Inc.Construction Services 495,000.00 04/24/13 West Coast Code Consultants, Inc.Plan Check 320.00 06/17/13 Flintco Pacific, Inc.Construction 142,218.00 06/19/13 Flintco Pacific, Inc.Construction 27,637.00 06/26/13 Group 4 Architecture Research & Planning Architectural 73,498.25 07/17/13 Group 4 Architecture Research & Planning Architectural 46,031.07 07/19/13 Flintco Pacific, Inc.Construction 106,656.00 07/31/13 Flintco Pacific, Inc.Construction 34,269.00 08/07/13 Flintco Pacific, Inc.Construction 72,222.00 08/14/13 Group 4 Architecture Research & Planning Architectural 46,079.91 08/14/13 Flintco Pacific, Inc.Construction 8,025.00 Sept. 25, 2013 08/22/13 Flintco Pacific, Inc.Construction 500,976.00 08/28/13 Flintco Pacific, Inc.Construction 73,759.00 09/11/13 Group 4 Architecture Research & Planning Architectural 58,299.00 09/25/13 Turner Construction Company Construction Management Services 65,864.35 09/25/13 Sign & Services Company Construction Services 66,903.28 09/30/13 Flintco Pacific, Inc.Construction 564,671.00 10/02/13 Turner Construction Company Construction Management Services 450,004.48 10/02/13 Flintco Pacific, Inc.Construction 70,944.00 10/09/13 Group 4 Architecture Research & Planning Architectural 66,584.38 10/11/13 Flintco Pacific, Inc.Construction 580,658.00 10/30/13 Flintco Pacific, Inc.Construction 64,518.00 11/13/13 Moovers, Inc.Moving Services 2,280.00 December 24, 20139 Payment Date Payee Description Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Mitchell Park Library and Community Center Activity Details (PE-09006) As of October 8, 2014 11/13/13 Sign & Services Company Construction Services 94,812.80 11/20/13 Turner Construction Company Construction Management Services 143,602.02 12/05/13 Group 4 Architecture Research & Planning Architectural 54,193.34 12/11/13 Turner Construction Company Construction Management Services 158,901.11 12/11/13 Sign & Services Company Construction Services 76,096.34 12/18/13 Turner Construction Company Construction Management Services 134,322.20 12/18/13 Ross McDonald Company, Inc.Construction Services 47,705.00 12/23/13 Group 4 Architecture Research & Planning Architectural 47,489.70 02/26/14 Group 4 Architecture Research & Planning Architectural 43.72 01/22/14 Group 4 Architecture Research & Planning Architectural 4,555.50 02/26/14 Group 4 Architecture Research & Planning Architectural 674.22 02/26/14 Group 4 Architecture Research & Planning Architectural 37,815.00 04/02/14 Group 4 Architecture Research & Planning Architectural 19,826.26 01/22/14 Sign & Services Company Construction Services 106,141.35 April 16, 2014 02/26/14 Sign & Services Company Construction Services 57,626.27 02/12/14 Envision Ware, Inc.Professional services 19,365.11 02/12/14 Envision Ware, Inc.Professional services 422,298.28 04/02/14 Turner Construction Company Construction Management Services 136,131.68 04/02/14 Turner Construction Company Construction Management Services 143,257.39 04/02/14 Turner Construction Company Construction Management Services 102,807.00 01/29/14 Moovers, Inc.Moving Services 1,000.00 05/21/14 Moovers, Inc.Moving Services 580.00 03/05/14 Ross McDonald Company, Inc.Construction Services 54,891.00 03/31/14 Return of Flintco Escrow (Previously Expensed)(2,628,576.00) 05/14/14 Group 4 Architecture Research & Planning Architectural 12,284.10 05/21/14 Moovers, Inc.Moving Services 1,544.00 July 2, 2014 05/28/14 Turner Construction Company Construction Management Services 130,208.94 05/28/14 Turner Construction Company Construction Management Services 110,969.00 05/28/14 Muzak LLC Construction Services 100,317.01 05/23/14 Protech Consulting and Engineering Hazardous Material Testing 1,540.00 06/11/14 Group 4 Architecture Research & Planning Architectural 18,325.68 06/18/14 Turner Construction Company Construction Management Services 109,939.00 10/28/14 Incurred bondable expenses that are currently being funded by the Infrastructure Reserve (748,500.00) BIG-D Pacific Builders, LP Construction 94,125 Group 4 Architecture Research & Planning Architectural 122,815 Moovers, Inc.Moving Services 22,803 Muzak LLC Construction Services 49,171 Ross McDonald Company, Inc.Construction Services 115,816 Sign & Services Company Construction Services 52,130 Turner Construction Company Construction Management Services 1,354,731 West Coast Code Consultants, Inc.Plan Check 1,270 One Workplace L Ferrari Storage 52,990 Flintco Pacific, Inc.Construction 2,952,474 Envision Ware, Inc.Sorter System 46,851 Ginn and Crosby, LLC Legal Services 83,099 Riedinger Consulting Legal Services 12,673 Project Controls and Forensics, LLC Legal Services 100,000 David Neagley, AIA Legal Services 273,376 Contract Office Group, Inc.Storage 3,958 Sub-total - Engineering Costs - 30,985,136 5,338,279 (36,323,416) Contract Contingency Summary of Expenditures as of July 21, 2010 104,373 08/03/10 Group 4 Architecture Research & Planning Architectural 1,771 10/05/10 Group 4 Architecture Research & Planning Architectural 25,951 Jan. 25, 2011 Report 10/19/10 Group 4 Architecture Research & Planning Architectural 10,740 2/1/2011 Flintco Pacific, Inc.Construction 41,725.00 2/18/2011 Flintco Pacific, Inc.Construction 248,603.00 April 26, 2011 Report 3/31/2011 Flintco Pacific, Inc.Construction 242,754.00 8/31/2011 W. L. Butler Construction, Inc.Construction 22,712.50 8/24/2011 Flintco Pacific, Inc.Construction 987,123.00 8/24/2011 Turner Construction Company Construction Management Services 151,367.49 8/24/2011 Flintco Inc. Escrow Construction 117,936.00 8/24/2011 Group 4 Architecture Research & Planning Architectural 48,250.00 October 25, 2011 Report 8/24/2011 Group 4 Architecture Research & Planning Architectural 57,825.84 8/24/2011 Flintco Pacific, Inc.Construction 74,304.00 10/5/2011 Group 4 Architecture Research & Planning Architectural 37,305.95 11/30/2011 Group 4 Architecture Research & Planning Architectural 20,265.95 January 18, 2012 11/30/2011 Flintco Pacific, Inc.Construction 241,110.00 2/29/2012 West Coast Code Consultants, Inc.Plan Check 840.00 2/29/2012 West Coast Code Consultants, Inc.Plan Check 560.00 2/29/2012 West Coast Code Consultants, Inc.Plan Check 840.00 2/29/2012 West Coast Code Consultants, Inc.Plan Check 560.00 2/29/2012 West Coast Code Consultants, Inc.Plan Check 360.00 March 28, 2012 Report 3/8/2012 Group 4 Architecture Research & Planning Architectural 9,937.25 2/29/2012 Turner Construction Company Construction Management Services 39,360.00 10 Payment Date Payee Description Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Mitchell Park Library and Community Center Activity Details (PE-09006) As of October 8, 2014 3/21/2012 Flintco Pacific, Inc.Construction 104,819.00 3/21/2012 Flintco Pacific, Inc.Construction 11,647.00 4/18/2012 Turner Construction Company Construction Management Services 656.00 4/4/2012 Group 4 Architecture Research & Planning Architectural 91,383.24 5/23/2012 Group 4 Architecture Research & Planning Architectural 25,039.15 7/5/2012 Group 4 Architecture Research & Planning Architectural 12,870.63 4/4/2012 Flintco Pacific, Inc.Construction 59,097.00 July 5, 2012 Report 5/16/2012 Flintco Pacific, Inc.Construction 1,077.00 6/20/2012 Turner Construction Company Construction Management Services 137,682.56 6/20/2012 Flintco Pacific, Inc.Construction 11,109.00 7/5/2012 Flintco Pacific, Inc.Construction 13,783.00 7/11/2012 Group 4 Architecture Research & Planning Architectural 65,495.00 8/22/2012 Group 4 Architecture Research & Planning Architectural 80,923.70 8/8/2012 Flintco Pacific, Inc.Construction 15,943.00 October 30, 2012 Report 10/3/2012 Turner Construction Company Construction Management Services 298,982.88 10/31/2012 Group 4 Architecture Research & Planning Architectural 1,578.00 12/26/2012 Group 4 Architecture Research & Planning Architectural 3,052.50 11/19/2012 Flintco Pacific, Inc.Construction 411,653.00 12/12/2012 Flintco Pacific, Inc.Construction 125,571.00 January 23, 2013 Report 12/12/2012 Flintco Pacific, Inc.Construction 359,703.00 12/26/2012 Flintco Pacific, Inc.Construction 73,605.00 12/26/2012 Flintco Pacific, Inc.Construction 96,352.00 04/08/13 Flintco Pacific, Inc.Construction 60,449 04/08/13 Flintco Pacific, Inc.Construction 31,269 04/08/13 Flintco Pacific, Inc.Construction 85,582 July 23, 2013 05/03/13 Flintco Pacific, Inc.Construction 188,366 05/01/13 4LEAF, Inc.Building Inspection 6,993 05/08/13 4LEAF, Inc.Building Inspection 8,381 07/19/13 Flintco Pacific, Inc.Construction 201,760 08/22/13 Flintco Pacific, Inc.Construction 162,856 08/07/13 4LEAF, Inc.Building Inspection 13,764 Sept. 25, 2013 08/07/13 4LEAF, Inc.Building Inspection 14,708 08/07/13 4LEAF, Inc.Building Inspection 11,045 09/18/13 4LEAF, Inc.Building Inspection 16,706 6/14/2013 Flintco Pacific, Inc.Construction 106,512.00 9/25/2013 Sign & Services Company Construction Services 40,944.00 December 24, 2013 9/30/2013 Flintco Pacific, Inc.Construction 73,825.00 1/22/2014 Group 4 Architecture Research & Planning Architectural 34,884.50 4/2/2014 Group 4 Architecture Research & Planning Architectural 12,600.00 4/16/2014 Group 4 Architecture Research & Planning Architectural 19,892.80 April 16, 2014 2/5/2014 4LEAF, Inc.Building Inspection 14,929.50 3/5/2014 4LEAF, Inc.Building Inspection 12,654.00 3/26/2014 4LEAF, Inc.Building Inspection 999.00 41850 Group 4 Architecture Research & Planning Architectural 32542.6 9/3/2014 Group 4 Architecture Research & Planning Architectural 43,001.70 9/3/2014 Group 4 Architecture Research & Planning Architectural 16,172.44 9/17/2014 Group 4 Architecture Research & Planning Architectural 14,330.00 8/13/2014 Moovers, Inc.Moving Services 2,110.00 7/16/2014 Muzak LLC Construction Services 29,763.13 9/17/2014 Muzak LLC Construction Services 42,741.36 October 8, 2014 7/30/2014 Turner Construction Company Construction Management Services 107,059.81 9/3/2014 Turner Construction Company Construction Management Services 101,438.04 9/24/2014 Turner Construction Company Construction Management Services 74,899.00 10/8/2014 Group 4 Architecture Research & Planning Architectural 14,340.00 7/23/2014 4LEAF, Inc.Building Inspection 5,994.00 9/14/2014 4LEAF, Inc.Building Inspection 3,618.00 Sub-total - Contract Contingency - 6,095,725 - (6,095,725) Other Contract Services Summary of Expenditures as of July 21, 2010 93,750 07/01/11 FedEx Mailing 89 08/26/10 Bruce Beasley Sculpture 90,000 Oct. 21, 2010 Report 09/30/11 FedEx Coding Error Correction (89) October 25, 2011 Report 11/16/11 Jarvis, Fay, Doporto & Gibson, LLP Legal Services - Mitchell Park Library 3,776 12/21/11 ZFA Structural Engineers Mitchell Library Review 2,925 12/29/11 Jarvis, Fay, Doporto & Gibson, LLP Legal Services for Mitchell Park Library 11,170 January 18, 2012 Report 12/29/11 State Water Resource Board Permit 505 02/08/12 Riedinger Consulting Outside Counsel 9,136 01/25/12 ZFA Structural Engineers Mitchell Library Review 9,289 01/25/12 ZFA Structural Engineers Mitchell Library Review 3,118 02/29/12 Jarvis, Fay, Doporto & Gibson, LLP Legal Services for Mitchell Park Library 6,625 March 28, 2012 Report 02/29/12 Jarvis, Fay, Doporto & Gibson, LLP Legal Services for Mitchell Park Library 9,960 02/29/12 Jarvis, Fay, Doporto & Gibson, LLP Legal Services for Mitchell Park Library 10,423 03/14/12 Envision Ware, Inc.Professional services 5,850 04/04/12 ZFA Structural Engineers Mitchell Library Review 2,518 04/04/12 Riedinger Consulting Outside Counsel 28,371 04/04/12 Riedinger Consulting Outside Counsel 10,235 11 Payment Date Payee Description Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Mitchell Park Library and Community Center Activity Details (PE-09006) As of October 8, 2014 04/04/12 Riedinger Consulting Outside Counsel 24,585 05/09/12 Jam Services 3,897 July 5, 2012 Report 05/09/12 Jarvis, Fay, Doporto & Gibson, LLP Legal Services for Mitchell Park Library 6,647 05/09/12 Jarvis, Fay, Doporto & Gibson, LLP Legal Services for Mitchell Park Library 5,212 06/13/12 ZFA Structural Engineers Mitchell Library Review 1,732 06/20/12 Jarvis, Fay, Doporto & Gibson, LLP Legal Services for Mitchell Park Library 4,549 06/20/12 Blackstone Discovery Legal Services for Mitchell Park Library 319 08/15/12 Otis and Iriki, Inc.Legal Services for Mitchell Park Library 35,618 09/12/12 County of Santa Clara Mitchell Snack Bar - Environmental Health 220 October 30, 2012 Report 09/12/12 Otis and Iriki, Inc.Legal Services for Mitchell Park Library 30,348 09/05/12 Bruce Beasley Sculpture 1,900 10/24/12 Otis and Iriki, Inc.Legal Services for Mitchell Park Library 15,610 10/24/12 Otis and Iriki, Inc.Legal Services for Mitchell Park Library 38,608 10/24/12 Otis and Iriki, Inc.Legal Services for Mitchell Park Library 33,684 January 23, 2013 Report 10/24/12 Otis and Iriki, Inc.Legal Services for Mitchell Park Library 77,708 12/31/12 City of Palo Alto - Public Works Mitchell Park Library - Plan Review 12 03/26/14 3M Library Systems Library Self Check Stations 258 3/20/2013 Bruce Beasley Sculpture 40,000 02/13/13 Ginn and Crosby, LLC Legal Services 1,272 02/13/13 Ginn and Crosby, LLC Legal Services 48 04/03/13 Moscone Emblidge Sater & Otis, LLP Legal Services 49,268 April 12, 2013 04/03/13 Moscone Emblidge Sater & Otis, LLP Legal Services 13,517 04/03/13 Moscone Emblidge Sater & Otis, LLP Legal Services 12,961 04/03/13 Moscone Emblidge Sater & Otis, LLP Legal Services 132,792 07/31/13 Ginn and Crosby, LLC Legal Services 2,688 07/31/13 Ginn and Crosby, LLC Legal Services 8,016 Sept. 25, 2013 10/30/13 Bruce Beasley Sculpture 50,000 December 24, 2013 02/05/14 Ginn and Crosby, LLC Legal Services 8,376 02/12/14 Ginn and Crosby, LLC Legal Services 7,111 April 16, 2014 03/26/14 Ginn and Crosby, LLC Legal Services 4,224 06/18/14 Ginn and Crosby, LLC Legal Services 1,248.00 06/18/14 Ginn and Crosby, LLC Legal Services 2,304.00 01/15/14 Ginn and Crosby, LLC Legal Services 14,952 02/26/14 National Construction Rentals Natl. Const. Rentals/Fencing&windscreen 2,317 03/05/14 United Site Services, Inc.Rental of Portable Toilets & Temporary Fencing 638 03/05/14 United Site Services, Inc.Rental of Portable Toilets & Temporary Fencing 635 July 2, 2014 03/12/14 United Site Services, Inc.Rental of Portable Toilets & Temporary Fencing 251 04/30/14 Ginn and Crosby, LLC Legal Services 1,044 06/18/14 Mobile Modular Management Corp.Rental of Trailers 759 06/18/14 Mobile Modular Management Corp.Rental of Trailers 759 06/18/14 Mobile Modular Management Corp.Rental of Trailers 759 12/23/13 One Workplace L Ferrari Additional Storage (Reduction in Exp. from prev. drawdown) (8,890) 7/23/2014 Ginn and Crosby, LLC Legal Services 1,169.28 07/16/14 Contract Office Group, Inc.Storage 600 07/16/14 Contract Office Group, Inc.Storage 600 October 8, 2014 08/27/14 Ginn and Crosby, LLC Legal Services 25,430 09/17/14 Ginn and Crosby, LLC Legal Services 32,279 08/15/14 National Construction Rentals Natl. Const. Rentals/Fencing&windscreen 416 Sub-total - Other Contract Services - 986,100 - (986,100) City (Inter-department) Service Charge Summary of Expenditures as of July 21, 2010 176,008 09/30/10 City of Palo Alto - Planning Permit Fees - Mitchell Park Library - Bldg A 70,153 09/30/10 City of Palo Alto - Planning Permit Fees - Mitchell Park Teen Center - Bldg B 10,768 09/30/10 City of Palo Alto - Planning Permit Fees - Mitchell Park Multipurpose Center - Bldg C 21,184 Oct. 21, 2010 Report 09/30/10 City of Palo Alto - Planning Demolition Permit MPL - 3700 Middlefield 525 09/30/10 City of Palo Alto - Planning Demolition Permit MPCC - 3800 Middlefield 525 09/28/10 City of Palo Alto - Planning Permit (Grading and Fill)1,830 10/31/10 City of Palo Alto - Planning Revision permit for Mitchell Park Library & CC 141 11/16/10 City of Palo Alto - Planning Architectural Review Board Fees 2,090 Jan. 25, 2011 Report 01/31/11 Palo Alto Stores Supplies/Parts 101 03/31/11 Palo Alto Stores Supplies/Parts 97 03/31/11 Palo Alto Stores Supplies/Parts 4,045 April 26, 2011 Report 03/31/11 Palo Alto Stores Supplies/Parts 89 03/31/11 Palo Alto Stores Supplies/Parts 661 06/14/10 Palo Alto Stores Reversal of Prior Charges (2,834) 03/29/11 Palo Alto Stores Reversal of Prior Charges (628) 03/30/11 Palo Alto Stores Reversal of Prior Charges (571) July 26, 2011 Report 04/04/11 Palo Alto Stores Reversal of Prior Charges (143) 04/30/11 City of Palo Alto - Public Works Underground Fire Supply/Hydrant Permit Fee 1,335 07/06/11 City of Palo Alto - Development Center Plan Check Fee 93 07/06/11 City of Palo Alto - Planning Plan Check Fee 89 08/31/11 City of Palo Alto - Planning Plan Review - modify permit 133 08/31/11 City of Palo Alto - Planning Plan Review - modify permit 105 12 Payment Date Payee Description Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Mitchell Park Library and Community Center Activity Details (PE-09006) As of October 8, 2014 08/31/11 City of Palo Alto - Planning Plan Review - modify permit 137 08/31/11 City of Palo Alto - Planning Plan Review - modify permit 133 October 25, 2011 Report 08/31/11 City of Palo Alto - Planning Plan Review - modify permit 105 08/31/11 City of Palo Alto - Planning Plan Review - modify permit 121 08/31/11 City Of Palo Alto - Development Center Mitchell Library Plan Check 145 08/31/11 City Of Palo Alto - Development Center Mitchell Library Plan Check 277 08/31/11 City Of Palo Alto - Planning Mitchell Library Plan Check 40 09/30/11 City of Palo Alto - Planning Mitchell Library - Permit Revision 89 10/31/11 City of Palo Alto - Development Center Plan Check Fee 113 January 18, 2012 10/31/11 City of Palo Alto - Development Center Plan Check Fee 325 11/30/11 City of Palo Alto - Planning Plan Review - modify permit 97 11/30/11 City of Palo Alto - Planning Plan Review - modify permit 121 11/30/11 City of Palo Alto - Planning Plan Review - modify permit 121 11/30/11 City of Palo Alto - Planning Plan Review - modify permit 109 01/31/12 City of Palo Alto - Planning Plan Review - modify permit 85 01/31/12 City of Palo Alto - Planning Plan Review - modify permit 4,056 March 28, 2012 12/31/11 City of Palo Alto - Planning Plan Review - modify permit 93 12/21/11 City of Palo Alto - Planning Plan Review - modify permit 85 02/29/12 City of Palo Alto - Planning Plan Review - modify permit 89 02/29/12 City of Palo Alto - Planning Plan Review - modify permit 121 04/25/12 City of Palo Alto - Stores Inventory Conduit, Rgid Steel T/C 10Ft length 2"180.99 04/25/12 City of Palo Alto - Stores Inventory Pipes - Valves - Fitting 3.62 04/30/12 City of Palo Alto - Planning Plan Review (Electrical Veh. Chargers permit)977 05/16/12 City of Palo Alto - Planning Plan Review (Ceiling Structural Chgs.) - Mitchell 344 05/16/12 City of Palo Alto - Planning Plan Review (foundation, framing, plumbing) - Mitchell Park L 364 July 5, 2012 05/16/12 City of Palo Alto - Planning Plan Review (Solar Water Heater) - Mitchell Park Library 165 05/16/12 City of Palo Alto - Planning Plan Review - Mitchell Park Library 137 05/31/12 City of Palo Alto - Planning MP -Plan Review for electrical signage permit 112 06/28/12 City of Palo Alto - Planning Plan Review - Mitchell Park Library 105 06/29/12 City of Palo Alto - Planning Plan Review - Mitchell Park Library 105 06/29/12 City of Palo Alto - Planning Plan Review - Mitchell Park Library 300 06/29/12 City of Palo Alto - Planning Plan Review - Mitchell Park Library 151 October 30, 2012 09/14/12 City of Palo Alto - Planning Plan Review - Mitchell Park Library 89 09/14/12 City of Palo Alto - Planning Plan Review - Mitchell Park Library 137 11/30/12 City of Palo Alto - Public Works Mitchell Park Library - Plan Review 116 12/31/12 City of Palo Alto - Public Works Mitchell Park Library - Plan Review 7 January 23, 2013 Report 03/31/13 City of Palo Alto - Development Center Architectural Review 92 April 12, 2013 04/17/13 Ginn and Crosby, LLC Legal Services 225 04/17/13 Ginn and Crosby, LLC Legal Services 432 06/05/13 Ginn and Crosby, LLC Legal Services 144 06/05/13 Ginn and Crosby, LLC Legal Services 5,243 06/05/13 Javis, Fay, Doporto & Gibson, LLP Legal Services 16,570 July 23, 2013 06/05/13 Javis, Fay, Doporto & Gibson, LLP Legal Services 38 06/19/13 David Neagley, AIA Legal Services 1,624 01/30/14 Brad Oldham Internation, Inc.Install of Stainless Owls 49 01/30/14 Brad Oldham Internation, Inc.Install of Stainless Owls 565 July 2, 2014 Sub-total - City (Inter-department) Service Charge - 320,534 - (320,534) Miscellaneous Cost Summary of Expenditures as of July 21, 2010 3,315 06/30/10 Office Max (US Bank-Calcard) - Reversed Reverse office supplies charged to project (246) 06/30/10 Debra Jacobs Reverse prior travel and meeting expense (6) Oct. 21, 2010 Report 06/30/10 Karen Bengard Reverse prior travel and meeting expense (20) 06/30/10 Hung Nguyen Reverse prior travel and meeting expense (11) 06/30/10 Hung Nguyen Reverse prior travel and meeting expense (20) 03/30/11 Palo Alto Stores Supplies/Parts 4 April 26, 2011 Report 03/30/11 Palo Alto Stores Supplies/Parts 214 03/30/11 Palo Alto Stores Reversal of Prior Charges (4) 03/30/11 Palo Alto Stores Reversal of Prior Charges (214) July 26, 2011 Report 04/21/11 City of Palo Alto - Utilities Utility Connection Fee 68,559 02/15/12 Palo Alto Stores Supplies/Parts 4 02/15/12 Palo Alto Stores Supplies/Parts 176 March 28, 2012 Report 02/15/12 Palo Alto Stores Supplies/Parts 218 02/15/12 Palo Alto Stores Supplies/Parts 4 12/31/12 State Water Resources Control Board Submitting Permit Registration Documents 505 January 23, 2013 Report 02/06/13 4LEAF, Inc.Building Inspection 2,553 02/06/13 4LEAF, Inc.Building Inspection 8,769 April 12, 2013 03/13/13 4LEAF, Inc.Building Inspection 9,213 03/13/13 4LEAF, Inc.Building Inspection 10,656 08/21/13 4LEAF, Inc.Building Inspection 15,318 10/30/13 4LEAF, Inc.Building Inspection 9,713 12/05/13 4LEAF, Inc.Building Inspection 14,430 12/18/13 4LEAF, Inc.Building Inspection 14,708 10/16/13 Computerland of Silicon Valley Wi-Fi Connectivity (Wireless Access Points (WAPs) )25,615 December 24, 2013 11/26/13 CDW Government Uninterruptable Power Supplies for Computers 6,134 13 Payment Date Payee Description Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Mitchell Park Library and Community Center Activity Details (PE-09006) As of October 8, 2014 12/05/13 CDW Government Uninterruptable Power Supplies for Computers 301 12/18/13 State Water Resources Control Board Submitting Permit Registration Documents 664 11/06/13 Bibliotheca, Inc.Security Gates 12,375 04/23/14 4LEAF, Inc.Building Inspection 1,332 06/04/14 4LEAF, Inc.Building Inspection 1,887 July 2, 2014 07/31/14 City of Palo Alto - Stores Inventory Safety Vest 16 07/04/14 California Paint Company Special Filler for Wood Bridges 176 07/31/14 City of Palo Alto - Stores Inventory Safety Vest 76 October 8, 2014 07/31/14 City of Palo Alto - Stores Inventory Safety Vest 154 07/31/14 City of Palo Alto - Stores Inventory Safety Vest 63 07/31/14 City of Palo Alto - Stores Inventory Safety Vest 41 07/31/14 City of Palo Alto - Stores Inventory Safety Vest 19 Sub-total - Miscellaneous Cost - 206,687 - (206,687) Grant Total 47,725,437 38,594,183 5,338,279 3,792,975 14 Payment Date Purchasing Document Payee Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Project Budget Original Budget (per Measure N Ballot Measure) 18,000,000$ Budget Change 4,342,563 Sub-total - 2010 Engineer's Budget Estimate 22,342,563 - - 22,342,563 Engineering, Architectural, Constr., and Publishing (Reproduction) Costs 10/05/10 Group 4 Architecture Research and Planning Architectural 73,246 10/05/10 Group 4 Architecture Research and Planning Architectural 700 10/05/10 Group 4 Architecture Research and Planning Architectural 73,246 11/02/10 Group 4 Architecture Research and Planning Architectural 5,785 11/02/10 Group 4 Architecture Research and Planning Architectural 122,100 Jan. 25, 2011 Report 12/07/10 Group 4 Architecture Research and Planning Architectural 2,390 01/04/11 Group 4 Architecture Research and Planning Architectural 15,000 01/04/11 Group 4 Architecture Research and Planning Architectural 583 01/04/11 Group 4 Architecture Research and Planning Architectural 859 01/04/11 Turner Construction Company Construction Management Services 1,195 02/24/11 Group 4 Architecture Research and Planning Architectural 4,860 03/18/11 Group 4 Architecture Research and Planning Architectural 73,246 03/18/11 Group 4 Architecture Research and Planning Architectural 7,500 03/18/11 Group 4 Architecture Research and Planning Architectural 53 03/18/11 Group 4 Architecture Research and Planning Architectural 3,843 04/11/11 Group 4 Architecture Research and Planning Architectural 112,464 04/11/11 Group 4 Architecture Research and Planning Architectural 3,993 04/11/11 Group 4 Architecture Research and Planning Architectural 7,500 01/21/11 Group 4 Architecture Research and Planning Architectural 24,392 April 26, 2011 Report 01/21/11 Turner Construction Company Construction Management Services 1,434 01/21/11 Group 4 Architecture Research and Planning Architectural 2,500 01/24/11 Group 4 Architecture Research and Planning Architectural 1,500 01/21/11 Group 4 Architecture Research and Planning Architectural 447 02/18/11 Turner Construction Company Construction Management Services 478 02/18/11 Group 4 Architecture Research and Planning Architectural 48,831 02/18/11 Group 4 Architecture Research and Planning Architectural 2,653 02/18/11 Group 4 Architecture Research and Planning Architectural 3,238 05/12/11 Group 4 Architecture Research and Planning Architectural 6,250 05/12/11 Group 4 Architecture Research and Planning Architectural 40,052 05/12/11 Group 4 Architecture Research and Planning Architectural 12,411 05/12/11 Group 4 Architecture Research and Planning Architectural 3,263 05/17/11 Group 4 Architecture Research and Planning Architectural 4,553 July 26, 2011 Report 06/09/11 Group 4 Architecture Research and Planning Architectural 31,374 07/01/11 Turner Construction Company Construction Management Services 9,169 07/11/11 Group 4 Architecture Research and Planning Architectural 11,100 07/11/11 Group 4 Architecture Research and Planning Architectural 488 07/11/11 Group 4 Architecture Research and Planning Architectural 15,687 07/27/11 Group 4 Architecture Research and Planning Architectural 319 07/27/11 Group 4 Architecture Research and Planning Architectural 1,150 07/27/11 Group 4 Architecture Research and Planning Architectural 1,875 07/27/11 Turner Construction Company Construction Management Services 5,572 08/10/11 Group 4 Architecture Research and Planning Architectural 31,374 08/24/11 Turner Construction Company Construction Management Services 2,868 October 25, 2011 Report 08/31/11 Group 4 Architecture Research and Planning Architectural 117 08/31/11 Group 4 Architecture Research and Planning Architectural 175 08/31/11 Group 4 Architecture Research and Planning Architectural 248 09/14/11 Group 4 Architecture Research and Planning Architectural 67 09/14/11 Group 4 Architecture Research and Planning Architectural 600 09/14/11 Group 4 Architecture Research and Planning Architectural 39,218 10/26/11 Group 4 Architecture Research and Planning Architectural 5,000 10/26/11 Group 4 Architecture Research and Planning Architectural 235,308 10/26/11 Group 4 Architecture Research and Planning Architectural 878 10/26/11 Group 4 Architecture Research and Planning Architectural 5,000 10/26/11 Group 4 Architecture Research and Planning Architectural 291 10/26/11 Group 4 Architecture Research and Planning Architectural 27 11/02/11 Group 4 Architecture Research and Planning Architectural 78,436 11/02/11 Group 4 Architecture Research and Planning Architectural 7,500 11/22/11 Group 4 Architecture Research and Planning Architectural 8,514 12/07/11 Group 4 Architecture Research and Planning Architectural 62,749 January 18, 2012 Report 12/14/11 Group 4 Architecture Research and Planning Architectural 12,584 12/14/11 Group 4 Architecture Research and Planning Architectural 79,172 12/14/11 Group 4 Architecture Research and Planning Architectural 12,584 12/21/11 Protect Consulting and Engineering Hazardous Material Testing 3,530 12/21/11 Group 4 Architecture Research and Planning Architectural 3,052 01/11/12 Group 4 Architecture Research and Planning Architectural 225 01/11/12 Group 4 Architecture Research and Planning Architectural 9,761 01/11/12 Group 4 Architecture Research and Planning Architectural 70,592 01/11/12 Group 4 Architecture Research and Planning Architectural 150 01/11/12 Group 4 Architecture Research and Planning Architectural 247 02/22/12 Group 4 Architecture Research and Planning Architectural 10,000 02/22/12 Group 4 Architecture Research and Planning Architectural 62,749 02/22/12 Group 4 Architecture Research and Planning Architectural 8,676 Rinconada (aka Main) Library Activity Details (PE-11000) As of October 8, 2014 15 Payment Date Purchasing Document Payee Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Rinconada (aka Main) Library Activity Details (PE-11000) As of October 8, 2014 02/22/12 Group 4 Architecture Research and Planning Architectural 3,590 March 28, 2012 Report 03/21/12 Group 4 Architecture Research and Planning Architectural 1,330 03/21/12 Group 4 Architecture Research and Planning Architectural 5,423 03/21/12 Group 4 Architecture Research and Planning Architectural 39,218 02/22/12 BIG-D Pacific Builders, LP Construction 32,500 12/21/12 BIG-D Pacific Builders, LP Construction 36,960 04/04/12 Group 4 Architecture Research and Planning Architectural 18,925 04/18/12 Group 4 Architecture Research and Planning Architectural 1,500 04/18/12 Group 4 Architecture Research and Planning Architectural 19 04/18/12 Group 4 Architecture Research and Planning Architectural 9,784 05/16/12 Group 4 Architecture Research and Planning Architectural 3,278 July 5, 2012 Report 05/16/12 Group 4 Architecture Research and Planning Architectural 29,046 05/30/12 Group 4 Architecture Research and Planning Architectural 39,504 06/20/12 Group 4 Architecture Research and Planning Architectural 13,884 07/05/12 Group 4 Architecture Research and Planning Architectural 407 07/05/12 Group 4 Architecture Research and Planning Architectural 2,500 07/25/12 Group 4 Architecture Research and Planning Architectural 1,613 07/25/12 Group 4 Architecture Research and Planning Architectural 1,535 07/25/12 Group 4 Architecture Research and Planning Architectural 1,992 October 30, 2012 Report 09/05/12 Group 4 Architecture Research and Planning Architectural 7,551 09/26/12 Group 4 Architecture Research and Planning Architectural 5,996 10/31/12 Turner Construction Company Construction Management Services 7,444 11/19/12 Group 4 Architecture Research and Planning Architectural 2,097 11/19/12 Group 4 Architecture Research and Planning Architectural 5,423 11/19/12 Group 4 Architecture Research and Planning Architectural 8,000 11/19/12 Group 4 Architecture Research and Planning Architectural 270 11/19/12 Group 4 Architecture Research and Planning Architectural 2,097 10/31/12 Turner Construction Company Construction Management Services 10,000 January 23, 2013 Report 10/11/12 Fastsigns signs 389 01/09/13 NOVA Partners, Inc.Construction Management Services 19,320 01/23/13 Group 4 Architecture Research and Planning Architectural 2,500 01/23/13 Group 4 Architecture Research and Planning Architectural 969 01/23/13 Group 4 Architecture Research and Planning Architectural 4,979 01/23/13 Group 4 Architecture Research and Planning Architectural 725 01/23/13 NOVA Partners, Inc.Construction Management Services 12,010 02/06/13 Group 4 Architecture Research and Planning Architectural 3,243 02/27/13 West Coast Code Consultants, Inc.Plan Check 13,300 02/27/13 NOVA Partners, Inc.Construction Management Services 18,280 April 12, 2013 03/06/13 Group 4 Architecture Research and Planning Architectural 30,776 04/03/13 NOVA Partners, Inc.Construction Management Services 17,000 04/24/13 Group 4 Architecture Research and Planning Architectural 13 05/08/13 Group 4 Architecture Research and Planning Architectural 479 05/08/13 Group 4 Architecture Research and Planning Architectural 9,324 05/22/13 Group 4 Architecture Research and Planning Architectural 1,641 05/22/13 Group 4 Architecture Research and Planning Architectural 157 July 23, 2013 04/24/13 NOVA Partners, Inc.Construction Management Services 16,360 05/22/13 NOVA Partners, Inc.Construction Management Services 18,280 04/10/13 ARC Signs 71 05/01/13 ARC signs 210 06/19/13 Metropolitan Van and Storage, Inc.Equipment Moving 31,367 06/26/13 NOVA Partners, Inc.Construction Management Services 6,134 07/31/13 NOVA Partners, Inc.Construction Management Services 31,565 08/21/13 NOVA Partners, Inc.Construction Management Services 30,750 08/21/13 West Coast Code Consultants, Inc.Plan Check 1,185 Sept. 25, 2013 08/21/13 Group 4 Architecture Research and Planning Architectural 34 07/27/13 Group 4 Architecture Research and Planning Architectural 17,341 08/21/13 Group 4 Architecture Research and Planning Architectural 43,310 09/25/13 S.J. Amoroso Construction Construction 1,396,323 09/25/13 ARC Reproductive Services 52 10/02/13 NOVA Partners, Inc.Construction Management Services 35,578 10/16/13 Group 4 Architecture Research and Planning Architectural 86,670 10/23/13 NOVA Partners, Inc.Construction Management Services 38,025 10/30/13 S.J. Amoroso Construction Construction 771,030 December 24, 2013 11/20/13 NOVA Partners, Inc.Construction Management Services 37,554 12/05/13 Group 4 Architecture Research and Planning Architectural 43,360 12/11/13 S.J. Amoroso Construction Construction 1,204,872 12/18/13 NOVA Partners, Inc.Construction Management Services 41,811 12/23/13 S.J. Amoroso Construction Construction 876,464 01/29/14 NOVA Partners, Inc.Construction Management Services 42,311 02/26/14 NOVA Partners, Inc.Construction Management Services 34,852 03/26/14 NOVA Partners, Inc.Construction Management Services 30,855 04/16/14 West Coast Code Consultants, Inc.Plan Check 613 01/29/14 Protech Consulting and Engineering Hazardous Material Testing 22,580 01/29/14 S.J. Amoroso Construction Construction 857,070 03/05/14 S.J. Amoroso Construction Construction 1,098,894 April 16, 2014 04/02/14 S.J. Amoroso Construction Construction 1,045,937 01/29/14 Group 4 Architecture Research and Planning Architectural 43,360 02/26/14 Group 4 Architecture Research and Planning Architectural 43,360 01/29/14 Group 4 Architecture Research and Planning Architectural 43,360 16 Payment Date Purchasing Document Payee Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Rinconada (aka Main) Library Activity Details (PE-11000) As of October 8, 2014 04/02/14 Group 4 Architecture Research and Planning Architectural 188,020 04/16/14 Group 4 Architecture Research and Planning Architectural 43,350 03/26/14 ARC Reproduction Services 258 11/29/04 Envision Ware, Inc.Professional services 41,731 05/14/14 NOVA Partners, Inc.Construction Management Services 37,950 05/28/14 NOVA Partners, Inc.Construction Management Services 39,369 06/04/14 Group 4 Architecture Research and Planning Architectural 18,900 06/25/14 NOVA Partners, Inc.Construction Management Services 35,540 July 2, 2014 04/23/14 S.J. Amoroso Construction Construction 1,058,321 05/28/14 S.J. Amoroso Construction Construction 1,487,530 06/04/14 Group 4 Architecture Research and Planning Architectural 86,702 06/25/14 Group 4 Architecture Research and Planning Architectural 86,746 07/02/14 S.J. Amoroso Construction Construction 1,852,722 07/16/14 NOVA Partners, Inc.Construction Management Services 34,767 08/27/14 NOVA Partners, Inc.Construction Management Services 33,075 09/17/14 NOVA Partners, Inc.Construction Management Services 34,182 07/02/14 West Coast Code Consultants, Inc.Plan Check 1,203 08/13/14 Group 4 Architecture Research and Planning Architectural 39,700 07/30/14 PACIFIC GAS & ELECTRIC CO Survey 6,000 October 8, 2014 08/06/14 S.J. Amoroso Construction Construction 2,164,627 09/03/14 S.J. Amoroso Construction Construction 1,591,611 07/31/14 S.J. Amoroso Construction Construction 1,641,497 10/08/14 Group 4 Architecture Research and Planning Architectural 29,816 10/08/14 Group 4 Architecture Research and Planning Architectural 86,738 10/08/14 Group 4 Architecture Research and Planning Architectural 75,770 Group 4 Architecture Research and Planning Architectural 297,634 Turner Construction Company Construction Management Services 34,986 West Coast Code Consultants, Inc.Plan Check 1,600 NOVA Partners, Inc.Construction Management Services 101,885 S.J. Amoroso Construction Construction 569,385 Envision Ware, Inc.Professional services 371,125 AT&T Engineering Professional services 6,298 Schaff & Wheeler Consulting Storm Water (Third Party 3,100 Metropolitan Van and Storage, Inc.Equipment Moving 30,190 Protech Consulting and Engineering Hazardous Material Testing 2,280 Applied Materials / Engineering, Inc.Professional services 16,689 Sub-total - Engineering and Architectural Costs - 20,623,643 1,435,172 (22,058,815) Contract Contingency 05/27/11 Group 4 Architecture Research and Planning Architectural 22,152 July 26, 2011 Report 06/09/11 Group 4 Architecture Research and Planning Architectural 571 02/22/12 Group 4 Architecture Research and Planning Architectural 122 March 28, 2012 Report 11/19/12 Group 4 Architecture Research and Planning Architectural 124 January 23, 2013 Report 04/03/13 Group 4 Architecture Research and Planning Architectural 8,442 April 12, 2013 03/06/13 Group 4 Architecture Research and Planning Architectural 8,442 04/24/13 Group 4 Architecture Research and Planning Architectural 6,300 05/22/13 Group 4 Architecture Research and Planning Architectural 64,633 July 23, 2013 06/05/13 Group 4 Architecture Research and Planning Architectural 27,225 07/17/13 Group 4 Architecture Research and Planning Architectural 12,658 07/17/13 Group 4 Architecture Research and Planning Architectural 3,150 Sept. 25, 2013 08/21/13 Group 4 Architecture Research and Planning Architectural 9,900 08/21/13 Group 4 Architecture Research and Planning Architectural 9,900 06/21/13 NOVA Partners, Inc.Construction Management Services 9,480.00 December 24, 2013 04/16/14 Group 4 Architecture Research and Planning Architectural 15,750.00 April 16, 2014 04/23/14 S.J. Amoroso Construction Construction 16,461.00 July 2, 2014 07/02/14 West Coast Code Consultants, Inc.Plan Check 941.25 October 8, 2014 Sub-total - Contract Contingency - 216,251 - (216,251) Other Contract Services 12/05/12 Planet Orange Termite Inspection Fee 350 12/31/12 Fastsigns Sign 226 12/19/12 Creative Machines, Inc.Plans and Technical Drawings 52,000 12/19/12 Creative Machines, Inc.Plans and Technical Drawings 12,000 10/31/12 City of Palo Alto - Public Works Main Library Renovation - Plan Check Fee 115,654 12/06/12 City of Palo Alto - Development Center Architectural Review 2,678 January 23, 2013 Report 12/06/12 City of Palo Alto - Development Center Architectural Review 25 12/06/12 City of Palo Alto - Development Center Architectural Review 20 12/06/12 City of Palo Alto - Development Center Architectural Review 622 12/06/12 City of Palo Alto - Development Center Architectural Review 2,892 12/06/12 City of Palo Alto - Development Center Architectural Review 252 04/24/13 FedEx Mailing 111 04/24/13 FedEx Mailing 98 July 23, 2013 04/17/13 FedEx Mailing 111 06/30/13 Fastsigns Signs 1,423 07/31/13 Metropolitan Van and Storage, Inc.Equipment Moving 1,365 Sept. 25, 2013 08/21/13 Metropolitan Van and Storage, Inc.Equipment Moving 1,365 17 Payment Date Purchasing Document Payee Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Rinconada (aka Main) Library Activity Details (PE-11000) As of October 8, 2014 10/02/13 Metropolitan Van and Storage, Inc.Equipment Moving 1,365 10/09/13 Metropolitan Van and Storage, Inc.Equipment Moving 1,365 11/13/13 Metropolitan Van and Storage, Inc.Equipment Moving 500 December 24, 2013 11/20/13 Metropolitan Van and Storage, Inc.Equipment Moving 1,365 12/18/13 Metropolitan Van and Storage, Inc.Equipment Moving 1,665 04/02/14 Metropolitan Van and Storage, Inc.Equipment Moving 1,365 02/12/14 Metropolitan Van and Storage, Inc.Equipment Moving 1,365 April 16, 2014 04/02/14 Metropolitan Van and Storage, Inc.Equipment Moving 1,365 01/29/14 FedEx Mailing 47 05/15/14 Protech Consulting and Engineering Hazardous Material Testing 3,270 05/07/14 Creative Machines, Inc.Plans and Technical Drawings 13,000 06/11/14 Metropolitan Van and Storage, Inc.Equipment Moving 1,365 05/28/14 Metropolitan Van and Storage, Inc.Equipment Moving 1,365 July 2, 2014 05/21/14 Metropolitan Van and Storage, Inc.Equipment Moving 1,365 06/25/14 Metropolitan Van and Storage, Inc.Equipment Moving 800 07/02/14 AT&T Engineering and Construction 6,298 03/31/14 Envision Ware, Inc.Professional services 157 07/09/14 Applied Materials / Engineering, Inc.Professional services 110 07/09/14 Applied Materials / Engineering, Inc.Professional services 1,760 07/16/14 ARC Reproduction Services 71 08/06/14 Creative Machines, Inc.Plans and Technical Drawings 13,000 07/09/14 Chem Aqua Loop corrosion inhibitor chemical addition/water analysis 837 07/23/14 Metropolitan Van and Storage, Inc.Equipment Moving 1,365 08/13/14 Metropolitan Van and Storage, Inc.Equipment Moving 1,365 October 8, 2014 09/17/14 Metropolitan Van and Storage, Inc.Equipment Moving 1,365 10/08/14 Applied Materials / Engineering, Inc.Professional services 5,601 10/08/14 Metropolitan Van and Storage, Inc.Equipment Moving 1,365 07/11/14 City of Palo Alto Signage Review for ARB 698 07/22/14 City of Palo Alto Signage Review for ARB 2,918 Sub-total - Other Contract Services - 259,669 - (259,669) City (Inter-department) Service Charge Sub-total - City (Inter-department) Service Charge - - - - Miscellaneous Cost 02/27/13 Fastsigns Signage 589.75 April 12, 2013 Sub-total - Miscellaneous Cost - 590 - (590) Grant Total 22,342,563 21,100,153 1,435,172 (192,762) 18 Payment Date Payee Description Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Project Budget Temporary Mitchell Park Library (Council Approved - CMR: 463:09) 645,000 Budget Change - gg Sub-total - 2010 Engineer's Budget Estimate 645,000 - - 645,000 Engineering, Architectural, Constr., and Publishing (Reproduction) Costs Summary of Expenditures as of July 21, 2010 439,283$ 10/05/10 Group 4 Architecture Research & Planning Architectural 5,774 Oct. 21, 2010 Report 08/24/10 Group 4 Architecture Research & Planning Architectural 329 01/27/11 Johnstone Moyer, Inc.Temp. Library Improvements 19,191 April 26, 2011 Report Ross McDonald Company, Inc.Construction Services 6,740 Sub-total - Engineering and Architectural Costs - 464,577 6,740 (471,317) Contract Contingency Summary of Expenditures as of July 21, 2010 2,541 08/24/10 Johnstone Moyer, Inc.Temp. Library Improvements 24,604 Oct. 21, 2010 Report 08/27/10 West Corporation Temp. Lib. - Security Access Card & Alarm 310 01/27/11 Johnstone Moyer, Inc.Temp. Library Improvements 6,045 April 26, 2011 Report Sub-total - Contract Contingency - 33,500 - (33,500) City (Inter-department) Service Charge Summary of Expenditures as of July 21, 2010 11,247 March 28, 2012 Report Sub-total - City (Inter-department) Service Charge - 11,247 - (11,247) Miscellaneous Cost Summary of Expenditures as of July 21, 2010 125 March 28, 2012 Report Sub-total - Miscellaneous Cost - 125 - (125) Grant Total 645,000 509,448 6,740 128,812 Temporary Library at Cubberley (for Mitchell Facility) - Activity Details (PE-09010) As of October 8, 2014 19 Payment Date Payee Description Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Project Budget Temporary Main Library Facility - Art Center Auditorium 500,000 Sub-total - 2010 Engineer's Budget Estimate 500,000 - - 500,000 Engineering, Architectural, Constr., and Publishing (Reproduction) Costs Summary of Expenditures as of July 21, 2010 -$ 04/04/12 Group 4 Architecture Research & Planning Architectural 15,687 July 5, 2012 Report 04/04/12 Group 4 Architecture Research & Planning Architectural 11,288 07/25/12 Group 4 Architecture Research & Planning Architectural 1,121 October 30, 2012 Report 06/15/76 Ross McDonald Company, Inc.Library Shelving 7,176 06/19/13 Big-D Pacific Builders, LP Construction Services 253,627 July 23, 2013 08/16/13 Big-D Pacific Builders, LP Construction Services 29,997 Sept. 25, 2013 Ross McDonald Company, Inc.Library Shelving 1,929 Group 4 Architecture Research & Planning Architectural 2,960 Sub-total - Engineering and Architectural Costs - 318,896 4,888 (323,784) Contract Contingency Summary of Expenditures as of July 21, 2010 - 04/30/13 Fastsigns Signs 593 04/30/13 Metropolitan Van and Storage, Inc.Equipment Moving 380 04/30/13 Fastsigns Signs 598 July 23, 2013 04/30/13 Fastsigns Signs 41 Sub-total - Contract Contingency - 1,612 - (1,612) City (Inter-department) Service Charge Summary of Expenditures as of July 21, 2010 - 04/30/13 City of Palo Alto - Planning Architectural Review 384 04/30/13 City of Palo Alto - Development Center Architectural Review 216 July 23, 2013 05/31/13 City of Palo Alto _ Development Center Architectural Review 122,489 06/30/13 City of Palo Alto _ Development Center Architectural Review 636 Sept. 25, 2013 Sub-total - City (Inter-department) Service Charge - 123,725 - (123,725) Miscellaneous Cost Summary of Expenditures as of July 21, 2010 - Sub-total - Miscellaneous Cost - - - - Grant Total 500,000 444,233 4,888 50,879 Art Center Temporary Library - Activity Details (Project # PE-11012) As of October 8, 2014 20 12345 6 7 8 (3 minus 1) (5 minus 1) (5 minus 4) (7 divide by 4) Measure N Estimates Changes in Measure Estimates Engineer's Estimate Project Budget January 2015 Projected Costs Diff. Between Measure N Estimates vs. Projected Costs $ Diff. Between Project Budget vs. Projected Costs % Diff. Between Project Budget vs. Projected Costs Downtown Library 4,000,000$ 1,212,000$ 5,212,000$ 4,212,000$ 4,191,782$ (191,782) 20,218$ 0.5% Mitchell Park & Community Center Library 50,000,000 (957,000) 49,043,000 47,725,437 45,280,000 4,720,000 2,445,437 5.1% Cubberley Temporary Library - 645,000 645,000 645,000 619,687 (619,687) 25,313 3.9% Rinconada (aka Main) Library *18,000,000 2,100,000 20,100,000 22,342,563 21,300,000 (3,300,000) 1,042,563 4.7% Art Center Temporary Library - 500,000 500,000 500,000 536,509 (536,509) (36,509) (7.3%) Total Prior to Bond Financing Costs 72,000,000 3,500,000 75,500,000 75,425,000 71,927,978 72,022 3,497,022 4.6% Bond Financing Costs **4,000,000 (3,500,000) 500,000 500,000 185,320 3,814,680 314,680 62.9% Grand Total 76,000,000$ -$ 76,000,000$ 75,925,000$ 72,113,298$ 3,886,702$ 3,811,702$ 5.0% Interest Earnings on the Project Bond Funds 288,573$ Projected Bond Savings 4,100,274$ *The Rinconada Library Project Budget, Projected Costs, and actual expenditures excludes $500,000 in expenses for connectivity between the Library and the Art Center funded by PF-09007 and excludes $1,800,000 (S.J. Amoroso Construction) expenditures, currently both are being funded by the Infrastructure Reserve. ** The actual bond issuance cost is substantially lower than the Measure N estimate due to avoidance of Capitalized Interest costs. Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance % Diff. Between Engineer's Est. vs. Remaining Bal. Budget Original Budget (per Measure N Ballot Measure)72,000,000$ -$ -$ 72,000,000$ Temporary Mitchell Park Library (Council Approved - CMR: 463:09)645,000 645,000 Temporary Main Library Facility - Art Center Auditorium 500,000 500,000 Net Other Budget Changes 2,280,000 2,280,000 Expenditures - Engineering, Architectural, Constr., and Publishing (Reproduction) Costs 59,530,050 3,946,048 (63,476,098) Construction Costs - - - Contract Contingency 7,195,959 - (7,195,959) Other Contract Services 1,469,871 - (1,469,871) City (Inter-department) Service Charge 501,463 - (501,463) Miscellaneous Cost 232,094 - (232,094) Total Library Projects Expenditures 75,425,000 68,929,437 3,946,048 2,549,516 Estimate of Pending Commitments/Costs and/or (Excess Encumbrances)- - (947,506) 947,506 Total Bond Funds Less Bond Financing Costs 75,425,000 68,929,437 2,998,541 3,497,022 4.6% Bond Financing Costs (a)500,000 185,320 - 314,680 62.9% Grand Total 75,925,000$ 69,114,757$ 2,998,541$ 3,811,702$ 5.0% Interest Earnings on the Project Bond Funds Projected Bond Savings 288,572.56 4,100,274.24 2010 GO Bond True Interest Cost (TIC)4.21% 2013 GO Bond True Interest Cost (TIC)3.85% ** The actual bond issuance cost is substantially lower than the Measure N estimate due to avoidance of Capitalized Interest costs. Budget History and Projection Description of Activity Library Projects Budget to Actual Activities Summary Library Bond Oversight Committee Quarterly Financial Report City of Palo Alto As of January 14, 2015 (Revised 2) 1 Library Bond Oversight Committee Quarterly Financial Report City of Palo Alto As of January 14, 2015 (Revised 2) Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance % Diff. Between Engineer's Est. vs. Remaining Bal. Original Budget (per Measure N Ballot Measure) 4,000,000$ -$ -$ 4,000,000$ Budget Change 212,000 212,000 Expenditures Engineering, Architectural, Constr., and Publishing (Reproduction) Costs 3,617,992 44,467 (3,662,459) Construction Costs - - - - Contract Contingency - 462,490 - (462,490) Other Contract Services - 27,925 - (27,925) City (Inter-department) Service Charge - 45,501 - (45,501) Miscellaneous Cost - 3,163 - (3,163) Total Library Projects Expenditures 4,212,000 4,157,071 44,467 10,462 Estimate of Pending Commitments/Costs and/or (Excess Encumbrances)- - (9,756) 9,756 Total Bond Funds Less Bond Financing Costs 4,212,000$ 4,157,071$ 34,711$ 20,218$ 0.5% Reasons for Budget Increase of:212,000$ 1) Seismic upgrade 30,000$ July 2010 2) Roof replacement 125,000 June 2011 3) LEED - Green building upgrades 100,000 4) Construction Management Services increase 400,000 5) Fixed Equipment 187,000 6) Moving costs deemed to be bondable costs 50,000 7) Contingency adjustment 320,000 8) Transfer to Main Library (1,000,000) Net Budget Change 212,000$ Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance % Diff. Between Engineer's Est. vs. Remaining Bal. Original Budget (per Measure N Ballot Measure) 50,000,000$ -$ -$ 50,000,000$ Budget Change (2,274,563) (2,274,563) Expenditures Engineering, Architectural, Constr., and Publishing (Reproduction) Costs 35,937,324 2,066,152 (38,003,476) Contract Contingency - 6,100,522 - (6,100,522) Other Contract Services - 1,147,244 - (1,147,244) City (Inter-department) Service Charge - 320,534 - (320,534) Miscellaneous Cost - 228,216 - (228,216) Total Library Projects Expenditures 47,725,437 43,733,840 2,066,152 1,925,445 Estimate of Pending Commitments/Costs and/or (Excess Encumbrances)(519,992) 519,992 Total Bond Funds Less Bond Financing Costs 47,725,437$ 43,733,840$ 1,546,160$ 2,445,437$ 5.1% Reasons for Budget Decrease of:(2,274,563)$ 1) LEED - Green building (Council approved) upgrades 1,200,000$ September 2010 2) Fixed Equipment 1,750,000 December 2014 3) Moving costs deemed to be bondable costs 100,000 4) Contingency adjustment (4,007,000) 5) Transfer to Main Library Project (1,317,563) Net Budget Change (2,274,563)$ Description of Activity Mitchell Park Library and Community Center Budget to Actual Activities Summary (PE-09006) Downtown Library Budget to Actual Activities Summary (PE-09005) Completed: Construction Began: Construction Began: Completed: Description of Activity 2 Library Bond Oversight Committee Quarterly Financial Report City of Palo Alto As of January 14, 2015 (Revised 2) Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance % Diff. Between Engineer's Est. vs. Remaining Bal. Original Budget (per Measure N Ballot Measure)18,000,000$ -$ -$ 18,000,000 Budget Change 4,342,563 4,342,563 Expenditures Engineering, Architectural, Constr., and Publishing (Reproduction) Costs 19,188,061 1,827,000 (21,015,061) Contract Contingency - 597,974 - (597,974) Other Contract Services - 294,702 - (294,702) City (Inter-department) Service Charge - 456 - (456) Miscellaneous Cost - 590 - (590) Total Library Projects Expenditures 22,342,563 20,081,782 1,827,000 433,780 Estimate of Pending Commitments/Costs and/or (Excess Encumbrances)(608,783) 608,783 Total Bond Funds Less Bond Financing Costs 22,342,563$ 20,081,782$ 1,218,218$ 1,042,563$ 4.7% Reasons for Budget Increase of:4,342,563$ Lowest Accepted Bids Exceeded the Engineer's Estimates 4,342,563$ June 2013 November 2014 Net Budget Change 4,342,563$ *The Rinconada Library Project Budget, Projected Costs, and actual expenditures excludes $500,000 in expenses for connectivity between the Library and the Art Center funded by PF-09007 and excludes $1,800,000 (S.J. Amoroso Construction) expenditures, currently both are being funded by the Infrastructure Reserve. Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance % Diff. Between Engineer's Est. vs. Remaining Bal. Temporary Mitchell Park Library (Council Approved - CMR: 463:09)645,000$ -$ -$ 645,000$ Budget Change -$ - Expenditures Engineering, Architectural, Constr., and Publishing (Reproduction) Costs 467,777 3,540 (471,317) Contract Contingency - 33,500 - (33,500) City (Inter-department) Service Charge - 11,247 - (11,247) Miscellaneous Cost - 125 - (125) Total Library Projects Expenditures 645,000 512,648 3,540 128,812 Estimate of Pending Commitments/Costs and/or (Excess Encumbrances)103,499 (103,499) Total Bond Funds Less Bond Financing Costs 645,000$ 512,648$ 107,039$ 25,313$ 3.9% Description of Activity Rinconada (aka Main) Library Budget to Actual Activities Summary (PE-11000) Description of Activity Cubberley Temporary Library Budget to Actual Activities Summary (PE-09010) Construction Began: Completed: 3 Library Bond Oversight Committee Quarterly Financial Report City of Palo Alto As of January 14, 2015 (Revised 2) Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance % Diff. Between Engineer's Est. vs. Remaining Bal. Temporary Main Library Facility - Art Center Auditorium 500,000$ -$ -$ 500,000$ Expenditures Engineering, Architectural, Constr., and Publishing (Reproduction) Costs 318,896 4,888 (323,784) Contract Contingency - 1,474 - (1,474) Other Contract Services - City (Inter-department) Service Charge - 123,725 - (123,725) Miscellaneous Cost - - - - Total Library Projects Expenditures 500,000 444,095 4,888 51,017 Estimate of Pending Commitments/Costs and/or (Excess Encumbrances)87,526 (87,526) Total Bond Funds Less Bond Financing Costs 500,000$ 444,095$ 92,414$ (36,509)$ (7.3%) Description of Activity Art Center Temporary Library Budget to Actual Activities Summary (Project # PE-11012) 4 Payment or Posting Date Payee Description Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Project Budget Original Budget (per Measure N Ballot Measure)4,000,000 Budget Change 212,000 Sub-total - 2010 Engineer's Budget Estimate 4,212,000 - - 4,212,000 Engineering, Architectural, Constr., and Publishing (Reproduction) Costs Summary of Expenditures as of July 21, 2010 418,563 08/24/10 Group 4 Architecture Research & Planning Architectural 362 09/21/10 Group 4 Architecture Research & Planning Architectural 135 08/03/10 Group 4 Architecture Research & Planning Architectural 16,233 08/03/10 Group 4 Architecture Research & Planning Architectural 56,000 08/10/10 Protech Consulting and Engineering Hazardous Material Testing 5,210 08/10/10 Turner Construction Company Construction Management Services 68,577 Oct. 21, 2010 Report 09/21/10 Group 4 Architecture Research & Planning Architectural 15 09/21/10 Group 4 Architecture Research & Planning Architectural 18,080 09/21/10 Group 4 Architecture Research & Planning Architectural 2,970 09/21/10 W.L. Butler Construction, Inc.Construction 93,177 10/05/10 Protech Consulting and Engineering Hazardous Material Testing 990 10/19/10 Group 4 Architecture Research & Planning Architectural 10,544 11/02/10 W. L. Butler Construction, Inc.Construction 69,984 11/02/10 Turner Construction Company Construction Management Services 27,984 11/02/10 Group 4 Architecture Research & Planning Architectural 11,864 12/07/10 Turner Construction Company Construction Management Services 55,174 12/07/10 Group 4 Architecture Research & Planning Architectural 11,688 Jan. 25, 2011 Report 12/07/10 W. L. Butler Construction, Inc.Construction 92,055 12/14/10 Group 4 Architecture Research & Planning Architectural 519 12/14/10 W. L. Butler Construction, Inc.Construction 159,940 01/04/11 Turner Construction Company Construction Management Services 27,984 01/07/11 Group 4 Architecture Research & Planning Architectural 11,688 01/21/11 West Coast Code Consultants, Inc.Plan Check 350 01/21/11 Turner Construction Company Construction Management Services 30,212 01/31/11 W. L. Butler Construction, Inc.Construction 211,220 02/18/11 W. L. Butler Construction, Inc.Construction 279,472 02/18/11 Group 4 Architecture Research & Planning Architectural 8,766 02/18/11 Turner Construction Company Construction Management Services 27,429 03/16/11 W. L. Butler Construction, Inc.Construction 277,033 April 26, 2011 Report 03/18/11 Group 4 Architecture Research & Planning Architectural 432 03/18/11 Group 4 Architecture Research & Planning Architectural 409 03/18/11 Group 4 Architecture Research & Planning Architectural 8,766 03/18/11 Group 4 Architecture Research & Planning Architectural 136 03/31/11 Pivot Interiors Design 2,250 03/31/11 Turner Construction Company Construction Management Services 17,808 04/07/11 Group 4 Architecture Research & Planning Architectural 13,149 04/19/11 Group 4 Architecture Research & Planning Architectural 2,795 04/25/11 W. L. Butler Construction, Inc.Construction 342,711 05/10/11 Turner Construction Company Construction Management Services 39,522 05/12/11 Group 4 Architecture Research & Planning Architectural 220 05/12/11 Group 4 Architecture Research & Planning Architectural 24,891 05/12/11 Group 4 Architecture Research & Planning Architectural 14,610 July 26, 2011 Report 05/17/11 Turner Construction Company Construction Management Services 28,334 05/27/11 W. L. Butler Construction, Inc.Construction 238,387 06/07/11 W. L. Butler Construction, Inc.Construction 352,713 06/07/11 Group 4 Architecture Research & Planning Architectural 14,610 06/09/11 Moovers, Inc.Moving Services 10,233 06/16/11 Group 4 Architecture Research & Planning Architectural 233 07/20/11 Group 4 Architecture Research & Planning Architectural 479 07/20/11 Group 4 Architecture Research & Planning Architectural 12,405 07/27/11 W.L. Butler Construction, Inc.Construction 157,980 07/27/11 Turner Construction Company Construction Management Services 26,028 08/31/11 Group 4 Architecture Research & Planning Architectural 19,560 October 25, 2011 Report 08/10/11 Group 4 Architecture Research & Planning Architectural 137 08/10/11 Group 4 Architecture Research & Planning Architectural 5,100 08/24/11 Turner Construction Company Construction Management Services 38,160 08/31/11 W.L. Butler Construction, Inc.Construction 137,659 09/14/11 Group 4 Architecture Research & Planning Architectural 2,550 09/14/11 Group 4 Architecture Research & Planning Architectural 1,116 12/07/11 Group 4 Architecture Research & Planning Architectural 5,100 10/19/11 Turner Construction Company Construction Management Services 1,176 12/21/11 Turner Construction Company Construction Management Services 3,806 January 18, 2012 11/09/11 Group 4 Architecture Research & Planning Architectural 1,146 12/07/11 W.L. Butler Construction, Inc.Construction 64,874 02/08/12 Group 4 Architecture Research & Planning Architectural 29 02/08/12 W.L. Butler Construction, Inc.Construction 22,796 02/22/12 Group 4 Architecture Research & Planning Architectural 8,408 March 28, 2012 Report 03/08/12 Group 4 Architecture Research & Planning Architectural 1,275 03/21/12 Group 4 Architecture Research & Planning Architectural 7 08/22/12 Group 4 Architecture Research & Planning Architectural 1,268 October 30, 2012 Report Downtown Library Activity Details (PE-09005) As of January 14, 2015 (Revised 2) 5 Payment or Posting Date Payee Description Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Downtown Library Activity Details (PE-09005) As of January 14, 2015 (Revised 2) 10/03/12 Group 4 Architecture Research & Planning Architectural 71 01/09/13 Turner Construction Company Construction Management Services 434 January 23, 2013 Report Group 4 Architecture Research Architectural 41,593 Moovers, Inc.Moving Services 2,778 Turner Construction Company Construction Management Services 97 Sub-total - Engineering and Architectural Costs - 3,617,992 44,467 (3,662,459) Contract Contingency Summary of Expenditures as of July 21, 2010 19,140 10/19/10 Group 4 Architecture Research & Planning Architectural 660 10/19/10 Group 4 Architecture Research & Planning Architectural 4,070 Oct. 21, 2010 Report 08/27/10 Asbestos Management Group Hazardous Material Testing 2,500 02/28/11 City of Palo Alto - Planning Plan Check Fee 93 April 26, 2011 Report 02/18/11 W. L. Butler Construction, Inc.Construction 15,686 04/25/11 W. L. Butler Construction, Inc.Construction 59,235 05/27/11 W. L. Butler Construction, Inc.Construction 163,149 07/01/11 Turner Construction Company Construction Management Services 1,123 July 26, 2011 Report 07/01/11 Turner Construction Company Construction Management Services 24,611 06/07/11 Group 4 Architecture Research & Planning Architectural 5,104 06/07/11 Group 4 Architecture Research & Planning Architectural 3,489 07/27/11 Group 4 Architecture Research & Planning Architectural 9,339 October 25, 2011 Report 08/31/11 W. L. Butler Construction, Inc.Construction 13,299 03/08/12 Group 4 Architecture Research & Planning Architectural 4,094 March 28, 2012 Report 02/08/12 W. L. Butler Construction, Inc.Construction 113,631 09/19/12 W. L. Butler Construction, Inc.Construction 10,000 October 30, 2012 Report 01/09/13 Turner Construction Company Construction Management Services 13,266 January 23, 2013 Report Sub-total - Contract Contingency - 462,490 - (462,490) Other Contract Services Summary of Expenditures as of July 21, 2010 2,225 08/27/10 Asbestos Management Group Hazardous Material Testing 25,700 Oct. 21, 2010 Report Sub-total - Other Contract Services - 27,925 - (27,925) City (Inter-department) Service Charge Summary of Expenditures as of July 21, 2010 43,990 07/13/11 City of Palo Alto - Public Works Parking Permit 230 October 25, 2011 Report 07/13/11 City of Palo Alto - Public Works Parking Permit 420 10/31/10 City of Palo Alto - Planning Plan Checking 861 Jan. 25, 2011 Report Sub-Total - City (Inter-department) Service Charge - 45,501 - (45,501) Miscellaneous Cost Summary of Expenditures as of July 21, 2010 3,158 04/10/11 Santa Clara County Downtown-Notice of Completion Filing Fee 5 January 18, 2012 Report Sub-total - Miscellaneous Cost - 3,163 - (3,163) Grant Total 4,212,000 4,157,071 44,467 10,462 6 Payment Date Payee Description Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Project Budget Original Budget (per Measure N Ballot Measure) 50,000,000$ Budget Change (2,274,563) Sub-total - 2010 Engineer's Budget Estimate 47,725,437 - - 47,725,437 Engineering, Architectural, Constr., and Publishing (Reproduction) Costs Summary of Expenditures as of July 21, 2010 3,101,748 08/03/10 Group 4 Architecture Research & Planning Architectural 37,609 08/10/10 Group 4 Architecture Research & Planning Architectural 18,595 10/05/10 Group 4 Architecture Research & Planning Architectural 7,522 10/05/10 Group 4 Architecture Research & Planning Architectural 13,942 10/05/10 Group 4 Architecture Research & Planning Architectural 2,971 07/27/10 Moovers, Inc. Moving Services 435 09/21/10 Turner Construction Company Construction Management Services 163,918 10/19/10 Group 4 Architecture Research & Planning Architectural 47,110 10/19/10 State Water Resources Control Board Submitting Permit Registration Documents 375 Oct. 21, 2010 Report 10/19/10 Group 4 Architecture Research & Planning Architectural 18,517 08/03/10 Peninsula Digital Imaging Reproduction Services 3,066 08/03/10 Peninsula Digital Imaging Reproduction Services 2,401 08/03/10 Peninsula Digital Imaging Reproduction Services 5,105 08/03/10 Peninsula Digital Imaging Reproduction Services 2,119 11/02/10 Bank of Sacramento - Flintco Pacific Escrow Construction 86,542 11/02/10 Flintco Pacific, Inc. Construction 778,876 11/02/10 Group 4 Architecture Research & Planning Architectural 1,037 12/07/10 Turner Construction Company Construction Management Services 635 12/07/10 Turner Construction Company Construction Management Services 70,780 12/07/10 Turner Construction Company Construction Management Services 64,319 12/07/10 Protech Consulting and Engineering Hazardous Material Testing 8,385 12/07/10 Peninsula Digital Imaging Reproduction Services 7,672 12/14/10 West Coast Code Consultants, Inc. Plan Check 26,820 12/14/10 Group 4 Architecture Research & Planning Architectural 46,200 Jan. 25, 2011 Report 12/21/10 Group 4 Architecture Research & Planning Architectural 46,297 12/21/10 Flintco Pacific, Inc. Construction 732,895 12/21/10 Flintco Pacific, Inc. Escrow 2841-042 Construction 81,433 12/28/10 Flintco Pacific, Inc. Construction 757,231 12/28/10 Flintco Pacific, Inc. Escrow 2841-042 Construction 84,137 01/04/11 Group 4 Architecture Research & Planning Architectural 2,942 01/04/11 Group 4 Architecture Research & Planning Architectural 4,564 01/04/11 Turner Construction Company Construction Management Services 73,919 1/21/2011 Group 4 Architecture Research & Planning Architectural 267 1/21/2011 Group 4 Architecture Research & Planning Architectural 46,261 1/21/2011 Turner Construction Company Construction Management Services 105,917 2/1/2011 Flintco Pacific, Inc.Construction 1,098,865 2/1/2011 Flintco Pacific, Inc. Escrow 2841-042 Construction 126,732 2/18/2011 Flintco Pacific, Inc.Construction 1,497,190 2/18/2011 Turner Construction Company Construction Management Services 94,502 2/18/2011 Flintco Pacific, Inc. Escrow 2841-042 Construction 193,977 2/24/2011 Group 4 Architecture Research & Planning Architectural 46,261 3/10/2011 West Coast Code Consultants, Inc.Plan Check 1,820 3/10/2011 West Coast Code Consultants, Inc.Plan Check 1,680 3/16/2011 West Coast Code Consultants, Inc.Plan Check (560) 3/16/2011 West Coast Code Consultants, Inc.Plan Check 560 April 26, 2011 Report 3/16/2011 Protech Consulting and Engineering Hazardous Material Testing 1,250 3/17/2011 West Coast Code Consultants, Inc.Plan Check 560 3/18/2011 Group 4 Architecture Research & Planning Architectural 46,261 3/31/2011 Flintco Pacific, Inc.Construction 446,177 3/31/2011 Flintco Pacific, Inc. Escrow 2841-042 Construction 76,548 3/31/2011 Turner Construction Company Construction Management Services 94,572 4/11/2011 Group 4 Architecture Research & Planning Architectural 4,219 4/11/2011 Group 4 Architecture Research & Planning Architectural 127 4/11/2011 Group 4 Architecture Research & Planning Architectural 7,366 4/11/2011 Group 4 Architecture Research & Planning Architectural 80,956 4/20/2011 West Coast Code Consultants, Inc.Plan Check 140 4/20/2011 West Coast Code Consultants, Inc.Plan Check 280 4/20/2011 West Coast Code Consultants, Inc.Plan Check 560 3/29/2011 Palo Alto Stores Supplies/Parts 1,342 4/25/2011 Flintco Pacific, Inc. Escrow 2841-042 Construction 85,140 4/25/2011 Flintco Pacific, Inc.Construction 766,263 4/26/2011 Group 4 Architecture Research & Planning Architectural 2,528 5/10/2011 Turner Construction Company Construction Management Services 82,594 5/12/2011 Group 4 Architecture Research & Planning Architectural 683 5/12/2011 Group 4 Architecture Research & Planning Architectural 80,956 5/17/2011 Turner Construction Company Construction Management Services 101,701 5/17/2011 Flintco Pacific, Inc.Construction 815,307 July 26, 2011 Report 5/17/2011 Flintco Pacific, Inc. Escrow 2841-042 Construction 93,874 5/17/2011 Flintco Pacific, Inc.Construction 29,559 7/1/2011 Turner Construction Company Construction Management Services 99,493 Mitchell Park Library and Community Center Activity Details (PE-09006) As of January 14, 2015 (Revised 2) 7 Payment Date Payee Description Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Mitchell Park Library and Community Center Activity Details (PE-09006) As of January 14, 2015 (Revised 2) 7/1/2011 Group 4 Architecture Research & Planning Architectural 19,540 7/1/2011 Group 4 Architecture Research & Planning Architectural 3,109 7/1/2011 Group 4 Architecture Research & Planning Architectural 17,038 7/1/2011 Group 4 Architecture Research & Planning Architectural 92,521 July 26, 2011 Report 7/1/2011 Group 4 Architecture Research & Planning Architectural 8,314 7/5/2011 Flintco Pacific, Inc. Escrow 2841-042 Construction 125,101 7/5/2011 Flintco Pacific, Inc.Construction 1,125,909 7/27/2011 Group 4 Architecture Research & Planning Architectural 57,826 7/27/2011 Group 4 Architecture Research & Planning Architectural 13,045 7/27/2011 Group 4 Architecture Research & Planning Architectural 1,954 7/27/2011 Flintco Pacific, Inc.Construction 2,316,525 7/27/2011 Flintco Inc. Escrow Construction 257,391 7/27/2011 Turner Construction Company Construction Management Services 127,367 October 25, 2011 Report 10/5/2011 Group 4 Architecture Research & Planning Architectural 1,898 10/5/2011 Group 4 Architecture Research & Planning Architectural 57,826 10/5/2011 Group 4 Architecture Research & Planning Architectural 1,647 10/5/2011 Flintco Pacific, Inc.Construction 483,144 10/5/2011 Flintco, Inc. Escrow Construction 53,683 10/19/2011 Turner Construction Company Construction Management Services 170,058 11/2/2011 Flintco Pacific, Inc.Construction 705,850 11/2/2011 Group 4 Architecture Research & Planning Architectural 57,826 11/2/2011 Group 4 Architecture Research & Planning Architectural 2,060 11/2/2011 Flintco Pacific, Inc.Construction 78,428 11/30/2011 West Coast Code Consultants, Inc.Plan Check 420 11/30/2011 West Coast Code Consultants, Inc.Plan Check 560 11/30/2011 West Coast Code Consultants, Inc.Plan Check 560 11/30/2011 Group 4 Architecture Research & Planning Architectural 2,051 11/30/2011 West Coast Code Consultants, Inc.Plan Check 700 January 18, 2012 Report 11/30/2011 Flintco Pacific, Inc.Construction 119,803 11/30/2011 Group 4 Architecture Research & Planning Architectural 1,722 11/30/2011 Group 4 Architecture Research & Planning Architectural 57,826 11/30/2011 Group 4 Architecture Research & Planning Architectural 4,789 11/30/2011 Flintco, Inc. Escrow Construction 837,115 *12/21/2011 Turner Construction Company Construction Management Services 187,775 12/21/2011 Turner Construction Company Construction Management Services 129,453 12/21/2011 Turner Construction Company Construction Management Services 233,061 12/21/2011 Turner Construction Company Construction Management Services 2,385 12/21/2011 Turner Construction Company Construction Management Services 109 12/21/2011 Group 4 Architecture Research & Planning Architectural 46,261 2/29/2012 West Coast Code Consultants, Inc.Plan Check 200 2/29/2012 Group 4 Architecture Research & Planning Architectural 1,600 3/21/2012 Group 4 Architecture Research & Planning Architectural 3,457 3/21/2012 Group 4 Architecture Research & Planning Architectural 19,603 2/1/2012 Flintco Pacific, Inc.Construction 940,940 2/1/2012 Flintco Pacific, Inc.Construction 104,549 2/1/2012 Group 4 Architecture Research & Planning Architectural 46,261 2/1/2012 Group 4 Architecture Research & Planning Architectural 654 March 28, 2012 Report 2/8/2012 Group 4 Architecture Research & Planning Architectural 6,417 2/24/2012 Turner Construction Company Construction Management Services 147,880 1/18/2012 Flintco Pacific, Inc.Construction 458,653 1/18/2012 Flintco Pacific, Inc.Construction 50,961 2/29/2012 Group 4 Architecture Research & Planning Architectural 46,261 3/21/2012 Flintco Pacific, Inc.Construction 722,810 3/21/2012 Flintco Pacific, Inc.Construction 80,312 3/21/2012 Group 4 Architecture Research & Planning Architectural 26,657 4/4/2012 Flintco Pacific, Inc.Construction 95,581 4/4/2012 Flintco Pacific, Inc. Escrow Construction 17,187 4/18/2012 Turner Construction Company Construction Management Services 129,709 4/18/2012 Turner Construction Company Construction Management Services 118,875 4/18/2012 Group 4 Architecture Research & Planning Architectural 2,100 4/18/2012 Group 4 Architecture Research & Planning Architectural 23,130 4/18/2012 Turner Construction Company Construction Management Services 120,219 5/9/2013 Sierra Traffic Markings Inc.Construction 7,990 5/9/2012 Group 4 Architecture Research & Planning Architectural 16,191 5/16/2012 Flintco Pacific, Inc.Construction 254,477 5/16/2012 Flintco Pacific, Inc. Escrow Construction 28,395 5/16/2012 Group 4 Architecture Research & Planning Architectural 2,069 5/16/2012 Group 4 Architecture Research & Planning Architectural 9,511 5/16/2012 Turner Construction Company Construction Management Services 116,415 6/20/2012 Group 4 Architecture Research & Planning Architectural 2,551 6/20/2012 Group 4 Architecture Research & Planning Architectural 16,191 July 5, 2012 Report 6/20/2012 Flintco Pacific, Inc.Construction 189,316 6/20/2012 Flintco Pacific, Inc. Escrow Construction 22,270 7/5/2012 West Coast Code Consultants, Inc.Plan Check 420 7/5/2012 West Coast Code Consultants, Inc.Plan Check 560 7/5/2012 West Coast Code Consultants, Inc.Plan Check 560 7/5/2012 West Coast Code Consultants, Inc.Plan Check 1,680 8 Payment Date Payee Description Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Mitchell Park Library and Community Center Activity Details (PE-09006) As of January 14, 2015 (Revised 2) 7/5/2012 West Coast Code Consultants, Inc.Plan Check 420 7/5/2012 West Coast Code Consultants, Inc.Plan Check 560 7/5/2012 West Coast Code Consultants, Inc.Plan Check 560 7/5/2012 West Coast Code Consultants, Inc.Plan Check 560 7/5/2012 West Coast Code Consultants, Inc.Plan Check 560 7/5/2012 West Coast Code Consultants, Inc.Plan Check 280 7/5/2012 West Coast Code Consultants, Inc.Plan Check 280 7/5/2012 Flintco Pacific, Inc. Escrow Construction 20,813 7/5/2012 Flintco Pacific, Inc.Construction 173,537 7/25/2012 Group 4 Architecture Research & Planning Architectural 762 7/25/2012 Group 4 Architecture Research & Planning Architectural 16,191 8/8/2012 Flintco Pacific, Inc.Construction 11,297 8/8/2012 Group 4 Architecture Research & Planning Architectural 16,191 October 30, 2012 Report 8/8/2012 Flintco Pacific, Inc.Construction 85,728 8/22/2012 Group 4 Architecture Research & Planning Architectural 280 9/26/2012 Group 4 Architecture Research & Planning Architectural 84,027 10/3/2012 Group 4 Architecture Research & Planning Architectural 16,191 10/10/2012 Turner Construction Company Construction 22,926 11/14/2012 Group 4 Architecture Research & Planning Architectural 20,325 11/19/2012 West Coast Code Consultants, Inc.Plan Check 350 11/19/2012 Flintco Pacific, Inc.Construction 383,239 11/19/2012 Flintco Pacific, Inc.Construction 88,321 11/19/2012 West Coast Code Consultants, Inc.Plan Check 420 12/12/2012 Flintco Pacific, Inc.Construction 608,951 12/12/2012 Flintco Pacific, Inc.Construction 81,614 12/12/2012 Flintco Pacific, Inc.Construction 505,497 12/12/2012 Flintco Pacific, Inc.Construction 96,133 12/19/2012 Group 4 Architecture Research & Planning Architectural 93,220 January 23, 2013 Report 12/19/2012 Group 4 Architecture Research & Planning Architectural 30,758 12/26/2012 Flintco Pacific, Inc.Construction 13,946 12/26/2012 Flintco Pacific, Inc.Construction 31,893 12/26/2012 Turner Construction Company Construction Management Services 270,207 12/26/2012 Turner Construction Company Construction Management Services 754,125 12/26/2012 Flintco Pacific, Inc.Construction 9,728 12/26/2012 Flintco Pacific, Inc.Construction 14,250 1/23/2013 West Coast Code Consultants, Inc.Plan Check 160 1/23/2013 West Coast Code Consultants, Inc.Plan Check 560 1/23/2013 Group 4 Architecture Research & Planning Architectural 626 1/23/2013 Group 4 Architecture Research & Planning Architectural 783 2/6/2013 Group 4 Architecture Research & Planning Architectural 68,238 2/20/2013 Group 4 Architecture Research & Planning Architectural 38,341 April 12, 2013 3/6/2013 Group 4 Architecture Research & Planning Architectural 2,775 4/3/2013 Group 4 Architecture Research & Planning Architectural 73,745 06/12/13 Flintco Pacific, Inc.Construction 59,916 06/12/13 Flintco Pacific, Inc.Construction 31,230 06/12/13 Flintco Pacific, Inc.Construction 27,261 06/12/13 Flintco Pacific, Inc.Construction 12,816 04/08/13 Flintco Pacific, Inc.Construction 249,800 04/08/13 Flintco Pacific, Inc.Construction 184,896 04/08/13 Flintco Pacific, Inc.Construction 29,765 05/03/13 Flintco Pacific, Inc.Construction 350,886 July 23, 2013 04/24/13 Group 4 Architecture Research & Planning Architectural 91,837 04/24/13 Group 4 Architecture Research & Planning Architectural 450 06/05/13 Group 4 Architecture Research & Planning Architectural 50,003 05/01/13 Ross McDonald Company, Inc.Construction Services 495,000 04/24/13 West Coast Code Consultants, Inc.Plan Check 320 06/17/13 Flintco Pacific, Inc.Construction 142,218 06/19/13 Flintco Pacific, Inc.Construction 27,637 06/26/13 Group 4 Architecture Research & Planning Architectural 73,498 07/17/13 Group 4 Architecture Research & Planning Architectural 46,031 07/19/13 Flintco Pacific, Inc.Construction 106,656 07/31/13 Flintco Pacific, Inc.Construction 34,269 08/07/13 Flintco Pacific, Inc.Construction 72,222 08/14/13 Group 4 Architecture Research & Planning Architectural 46,080 08/14/13 Flintco Pacific, Inc.Construction 8,025 Sept. 25, 2013 08/22/13 Flintco Pacific, Inc.Construction 500,976 08/28/13 Flintco Pacific, Inc.Construction 73,759 09/11/13 Group 4 Architecture Research & Planning Architectural 58,299 09/25/13 Turner Construction Company Construction Management Services 65,864 09/25/13 Sign & Services Company Construction Services 66,903 09/30/13 Flintco Pacific, Inc.Construction 564,671 10/02/13 Turner Construction Company Construction Management Services 450,004 10/02/13 Flintco Pacific, Inc.Construction 70,944 10/09/13 Group 4 Architecture Research & Planning Architectural 66,584 10/11/13 Flintco Pacific, Inc.Construction 580,658 10/30/13 Flintco Pacific, Inc.Construction 64,518 11/13/13 Moovers, Inc.Moving Services 2,280 December 24, 2013 9 Payment Date Payee Description Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Mitchell Park Library and Community Center Activity Details (PE-09006) As of January 14, 2015 (Revised 2) 11/13/13 Sign & Services Company Construction Services 94,813 11/20/13 Turner Construction Company Construction Management Services 143,602 12/05/13 Group 4 Architecture Research & Planning Architectural 54,193 12/11/13 Turner Construction Company Construction Management Services 158,901 12/11/13 Sign & Services Company Construction Services 76,096 12/18/13 Turner Construction Company Construction Management Services 134,322 12/18/13 Ross McDonald Company, Inc.Construction Services 47,705 12/23/13 Group 4 Architecture Research & Planning Architectural 47,490 02/26/14 Group 4 Architecture Research & Planning Architectural 44 01/22/14 Group 4 Architecture Research & Planning Architectural 4,556 02/26/14 Group 4 Architecture Research & Planning Architectural 674 02/26/14 Group 4 Architecture Research & Planning Architectural 37,815 04/02/14 Group 4 Architecture Research & Planning Architectural 19,826 01/22/14 Sign & Services Company Construction Services 106,141 April 16, 2014 02/26/14 Sign & Services Company Construction Services 57,626 02/12/14 Envision Ware, Inc.Professional services 19,365 02/12/14 Envision Ware, Inc.Professional services 422,298 04/02/14 Turner Construction Company Construction Management Services 136,132 04/02/14 Turner Construction Company Construction Management Services 143,257 04/02/14 Turner Construction Company Construction Management Services 102,807 01/29/14 Moovers, Inc.Moving Services 1,000 05/21/14 Moovers, Inc.Moving Services 580 03/05/14 Ross McDonald Company, Inc.Construction Services 54,891 03/31/14 Return of Flintco Escrow (Previously Expensed)(2,628,576) 05/14/14 Group 4 Architecture Research & Planning Architectural 12,284 05/21/14 Moovers, Inc.Moving Services 1,544 July 2, 2014 05/28/14 Turner Construction Company Construction Management Services 130,209 05/28/14 Turner Construction Company Construction Management Services 110,969 05/28/14 Muzak LLC Construction Services 100,317 05/23/14 Protech Consulting and Engineering Hazardous Material Testing 1,540 06/11/14 Group 4 Architecture Research & Planning Architectural 18,326 06/18/14 Turner Construction Company Construction Management Services 109,939 12/23/13 One Workplace L Ferrari Storage 7,010 03/31/14 Envision Ware, Inc.Sorter System 973 06/26/13 Group 4 Architecture Research & Planning Architectural 73,498 10/22/14 Moovers, Inc.Moving Services 213 10/22/14 Moovers, Inc.Moving Services 924 10/22/14 Moovers, Inc.Moving Services 14,463 10/22/14 Moovers, Inc.Moving Services 472 11/12/14 Turner Construction Company Construction Management Services 104,843 January 14, 2015 12/03/14 Group 4 Architecture Research & Planning Architectural 64,500 12/17/14 Turner Construction Company Construction Management Services 11,809 12/17/14 Turner Construction Company Construction Management Services 24,983 12/29/14 Flintco Pacific, Inc.Settlement agreement ($4 million less $100,000)3,900,000 Group 4 Architecture Research & Planning Architectural 58,315 Turner Construction Company Construction Management Services 1,107,497 Ross McDonald Company, Inc.Construction Services 115,816 West Coast Code Consultants, Inc.Plan Check 1,270 Moovers, Inc.Moving Services 1,935 Envision Ware, Inc.Sorter System 19,451 One Workplace L Ferrari Storage 52,990 BIG-D Pacific Builders, LP Construction 94,125 Sign & Services Company Construction Services 52,130 Contract Office Group, Inc.Storage 3,958 Muzak LLC Construction Services 49,171 Ginn and Crosby, LLC Legal Services 23,447 Project Controls and Forensics, LLC Legal Services 100,000 Riedinger Consulting Legal Services 12,673 David Neagley, AIA Legal Services 273,376 Flintco Pacific, Inc.Settlement Amount Being Withheld 100,000 Sub-total - Engineering Costs - 35,937,324 2,066,152 (38,003,476) Contract Contingency Summary of Expenditures as of July 21, 2010 104,373 08/03/10 Group 4 Architecture Research & Planning Architectural 1,771 10/05/10 Group 4 Architecture Research & Planning Architectural 25,951 Jan. 25, 2011 Report 10/19/10 Group 4 Architecture Research & Planning Architectural 10,740 2/1/2011 Flintco Pacific, Inc.Construction 41,725 2/18/2011 Flintco Pacific, Inc.Construction 248,603 April 26, 2011 Report 3/31/2011 Flintco Pacific, Inc.Construction 242,754 8/31/2011 W. L. Butler Construction, Inc.Construction 22,713 8/24/2011 Flintco Pacific, Inc.Construction 987,123 8/24/2011 Turner Construction Company Construction Management Services 151,367 8/24/2011 Flintco Inc. Escrow Construction 117,936 8/24/2011 Group 4 Architecture Research & Planning Architectural 48,250 October 25, 2011 Report 8/24/2011 Group 4 Architecture Research & Planning Architectural 57,826 10 Payment Date Payee Description Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Mitchell Park Library and Community Center Activity Details (PE-09006) As of January 14, 2015 (Revised 2) 8/24/2011 Flintco Pacific, Inc.Construction 74,304 10/5/2011 Group 4 Architecture Research & Planning Architectural 37,306 11/30/2011 Group 4 Architecture Research & Planning Architectural 20,266 January 18, 2012 11/30/2011 Flintco Pacific, Inc.Construction 241,110 2/29/2012 West Coast Code Consultants, Inc.Plan Check 840 2/29/2012 West Coast Code Consultants, Inc.Plan Check 560 2/29/2012 West Coast Code Consultants, Inc.Plan Check 840 2/29/2012 West Coast Code Consultants, Inc.Plan Check 560 2/29/2012 West Coast Code Consultants, Inc.Plan Check 360 March 28, 2012 Report 3/8/2012 Group 4 Architecture Research & Planning Architectural 9,937 2/29/2012 Turner Construction Company Construction Management Services 39,360 3/21/2012 Flintco Pacific, Inc.Construction 104,819 3/21/2012 Flintco Pacific, Inc.Construction 11,647 4/18/2012 Turner Construction Company Construction Management Services 656 4/4/2012 Group 4 Architecture Research & Planning Architectural 91,383 5/23/2012 Group 4 Architecture Research & Planning Architectural 25,039 7/5/2012 Group 4 Architecture Research & Planning Architectural 12,871 4/4/2012 Flintco Pacific, Inc.Construction 59,097 July 5, 2012 Report 5/16/2012 Flintco Pacific, Inc.Construction 1,077 6/20/2012 Turner Construction Company Construction Management Services 137,683 6/20/2012 Flintco Pacific, Inc.Construction 11,109 7/5/2012 Flintco Pacific, Inc.Construction 13,783 7/11/2012 Group 4 Architecture Research & Planning Architectural 65,495 8/22/2012 Group 4 Architecture Research & Planning Architectural 80,924 8/8/2012 Flintco Pacific, Inc.Construction 15,943 October 30, 2012 Report 10/3/2012 Turner Construction Company Construction Management Services 298,983 10/31/2012 Group 4 Architecture Research & Planning Architectural 1,578 12/26/2012 Group 4 Architecture Research & Planning Architectural 3,053 11/19/2012 Flintco Pacific, Inc.Construction 411,653 12/12/2012 Flintco Pacific, Inc.Construction 125,571 January 23, 2013 Report 12/12/2012 Flintco Pacific, Inc.Construction 359,703 12/26/2012 Flintco Pacific, Inc.Construction 73,605 12/26/2012 Flintco Pacific, Inc.Construction 96,352 04/08/13 Flintco Pacific, Inc.Construction 60,449 04/08/13 Flintco Pacific, Inc.Construction 31,269 04/08/13 Flintco Pacific, Inc.Construction 85,582 July 23, 2013 05/03/13 Flintco Pacific, Inc.Construction 188,366 05/01/13 4LEAF, Inc.Building Inspection 6,993 05/08/13 4LEAF, Inc.Building Inspection 8,381 07/19/13 Flintco Pacific, Inc.Construction 201,760 08/22/13 Flintco Pacific, Inc.Construction 162,856 08/07/13 4LEAF, Inc.Building Inspection 13,764 Sept. 25, 2013 08/07/13 4LEAF, Inc.Building Inspection 14,708 08/07/13 4LEAF, Inc.Building Inspection 11,045 09/18/13 4LEAF, Inc.Building Inspection 16,706 6/14/2013 Flintco Pacific, Inc.Construction 106,512 9/25/2013 Sign & Services Company Construction Services 40,944 December 24, 2013 9/30/2013 Flintco Pacific, Inc.Construction 73,825 1/22/2014 Group 4 Architecture Research & Planning Architectural 34,885 4/2/2014 Group 4 Architecture Research & Planning Architectural 12,600 4/16/2014 Group 4 Architecture Research & Planning Architectural 19,893 April 16, 2014 2/5/2014 4LEAF, Inc.Building Inspection 14,930 3/5/2014 4LEAF, Inc.Building Inspection 12,654 3/26/2014 4LEAF, Inc.Building Inspection 999 41850 Group 4 Architecture Research & Planning Architectural 32,543 9/3/2014 Group 4 Architecture Research & Planning Architectural 43,002 9/3/2014 Group 4 Architecture Research & Planning Architectural 16,172 9/17/2014 Group 4 Architecture Research & Planning Architectural 14,330 8/13/2014 Moovers, Inc.Moving Services 2,110 7/16/2014 Muzak LLC Construction Services 29,763 9/17/2014 Muzak LLC Construction Services 42,741 October 8, 2014 7/30/2014 Turner Construction Company Construction Management Services 107,060 9/3/2014 Turner Construction Company Construction Management Services 101,438 9/24/2014 Turner Construction Company Construction Management Services 74,899 10/8/2014 Group 4 Architecture Research & Planning Architectural 14,340 7/23/2014 4LEAF, Inc.Building Inspection 5,994 9/14/2014 4LEAF, Inc.Building Inspection 3,618 10/22/2014 Moovers, Inc.Moving Services 4,797 January 14, 2015 Sub-total - Contract Contingency - 6,100,522 - (6,100,522) Other Contract Services Summary of Expenditures as of July 21, 2010 93,750 07/01/11 FedEx Mailing 89 08/26/10 Bruce Beasley Sculpture 90,000 Oct. 21, 2010 Report 09/30/11 FedEx Coding Error Correction (89) October 25, 2011 Report 11/16/11 Jarvis, Fay, Doporto & Gibson, LLP Legal Services - Mitchell Park Library 3,776 12/21/11 ZFA Structural Engineers Mitchell Library Review 2,925 11 Payment Date Payee Description Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Mitchell Park Library and Community Center Activity Details (PE-09006) As of January 14, 2015 (Revised 2) 12/29/11 Jarvis, Fay, Doporto & Gibson, LLP Legal Services for Mitchell Park Library 11,170 January 18, 2012 Report 12/29/11 State Water Resource Board Permit 505 02/08/12 Riedinger Consulting Outside Counsel 9,136 01/25/12 ZFA Structural Engineers Mitchell Library Review 9,289 01/25/12 ZFA Structural Engineers Mitchell Library Review 3,118 02/29/12 Jarvis, Fay, Doporto & Gibson, LLP Legal Services for Mitchell Park Library 6,625 March 28, 2012 Report 02/29/12 Jarvis, Fay, Doporto & Gibson, LLP Legal Services for Mitchell Park Library 9,960 02/29/12 Jarvis, Fay, Doporto & Gibson, LLP Legal Services for Mitchell Park Library 10,423 03/14/12 Envision Ware, Inc.Professional services 5,850 04/04/12 ZFA Structural Engineers Mitchell Library Review 2,518 04/04/12 Riedinger Consulting Outside Counsel 28,371 04/04/12 Riedinger Consulting Outside Counsel 10,235 04/04/12 Riedinger Consulting Outside Counsel 24,585 05/09/12 Jam Services 3,897 July 5, 2012 Report 05/09/12 Jarvis, Fay, Doporto & Gibson, LLP Legal Services for Mitchell Park Library 6,647 05/09/12 Jarvis, Fay, Doporto & Gibson, LLP Legal Services for Mitchell Park Library 5,212 06/13/12 ZFA Structural Engineers Mitchell Library Review 1,732 06/20/12 Jarvis, Fay, Doporto & Gibson, LLP Legal Services for Mitchell Park Library 4,549 06/20/12 Blackstone Discovery Legal Services for Mitchell Park Library 319 08/15/12 Otis and Iriki, Inc.Legal Services for Mitchell Park Library 35,618 09/12/12 County of Santa Clara Mitchell Snack Bar - Environmental Health 220 October 30, 2012 Report 09/12/12 Otis and Iriki, Inc.Legal Services for Mitchell Park Library 30,348 09/05/12 Bruce Beasley Sculpture 1,900 10/24/12 Otis and Iriki, Inc.Legal Services for Mitchell Park Library 15,610 10/24/12 Otis and Iriki, Inc.Legal Services for Mitchell Park Library 38,608 10/24/12 Otis and Iriki, Inc.Legal Services for Mitchell Park Library 33,684 January 23, 2013 Report 10/24/12 Otis and Iriki, Inc.Legal Services for Mitchell Park Library 77,708 12/31/12 City of Palo Alto - Public Works Mitchell Park Library - Plan Review 12 03/26/14 3M Library Systems Library Self Check Stations 258 01/16/13 3M Library Systems Library Self Check Stations 80,578 3/20/2013 Bruce Beasley Sculpture 40,000 02/13/13 Ginn and Crosby, LLC Legal Services 1,272 02/13/13 Ginn and Crosby, LLC Legal Services 48 04/03/13 Moscone Emblidge Sater & Otis, LLP Legal Services 49,268 April 12, 2013 04/03/13 Moscone Emblidge Sater & Otis, LLP Legal Services 13,517 04/03/13 Moscone Emblidge Sater & Otis, LLP Legal Services 12,961 04/03/13 Moscone Emblidge Sater & Otis, LLP Legal Services 132,792 07/31/13 Ginn and Crosby, LLC Legal Services 2,688 07/31/13 Ginn and Crosby, LLC Legal Services 8,016 Sept. 25, 2013 10/30/13 Bruce Beasley Sculpture 50,000 December 24, 2013 02/05/14 Ginn and Crosby, LLC Legal Services 8,376 02/12/14 Ginn and Crosby, LLC Legal Services 7,111 April 16, 2014 03/26/14 Ginn and Crosby, LLC Legal Services 4,224 06/18/14 Ginn and Crosby, LLC Legal Services 1,248 06/18/14 Ginn and Crosby, LLC Legal Services 2,304 01/15/14 Ginn and Crosby, LLC Legal Services 14,952 02/26/14 National Construction Rentals Natl. Const. Rentals/Fencing&windscreen 2,317 03/05/14 United Site Services, Inc.Rental of Portable Toilets & Temporary Fencing 638 03/05/14 United Site Services, Inc.Rental of Portable Toilets & Temporary Fencing 635 July 2, 2014 03/12/14 United Site Services, Inc.Rental of Portable Toilets & Temporary Fencing 251 04/30/14 Ginn and Crosby, LLC Legal Services 1,044 06/18/14 Mobile Modular Management Corp.Rental of Trailers 759 06/18/14 Mobile Modular Management Corp.Rental of Trailers 759 06/18/14 Mobile Modular Management Corp.Rental of Trailers 759 12/23/13 One Workplace L Ferrari Additional Storage (Reduction in Exp. from prev. drawdown) (8,890) 7/23/2014 Ginn and Crosby, LLC Legal Services 1,169 07/16/14 Contract Office Group, Inc.Storage 600 07/16/14 Contract Office Group, Inc.Storage 600 October 8, 2014 08/27/14 Ginn and Crosby, LLC Legal Services 25,430 09/17/14 Ginn and Crosby, LLC Legal Services 32,279 08/15/14 National Construction Rentals Natl. Const. Rentals/Fencing&windscreen 416 11/24/14 BIG-D Pacific Builders, LP Fence reimbursement (3,341) 11/05/14 Ginn and Crosby, LLC Legal Services 23,691 11/19/14 Ginn and Crosby, LLC Legal Services 25,544 January 14, 2015 11/25/14 Envision Ware, Inc.Professional services 27,400 12/17/14 Ginn and Crosby, LLC Legal Services 7,272 Sub-total - Other Contract Services - 1,147,244 - (1,147,244) City (Inter-department) Service Charge Summary of Expenditures as of July 21, 2010 176,008 09/30/10 City of Palo Alto - Planning Permit Fees - Mitchell Park Library - Bldg A 70,153 09/30/10 City of Palo Alto - Planning Permit Fees - Mitchell Park Teen Center - Bldg B 10,768 09/30/10 City of Palo Alto - Planning Permit Fees - Mitchell Park Multipurpose Center - Bldg C 21,184 Oct. 21, 2010 Report 09/30/10 City of Palo Alto - Planning Demolition Permit MPL - 3700 Middlefield 525 09/30/10 City of Palo Alto - Planning Demolition Permit MPCC - 3800 Middlefield 525 09/28/10 City of Palo Alto - Planning Permit (Grading and Fill)1,830 12 Payment Date Payee Description Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Mitchell Park Library and Community Center Activity Details (PE-09006) As of January 14, 2015 (Revised 2) 10/31/10 City of Palo Alto - Planning Revision permit for Mitchell Park Library & CC 141 11/16/10 City of Palo Alto - Planning Architectural Review Board Fees 2,090 Jan. 25, 2011 Report 01/31/11 Palo Alto Stores Supplies/Parts 101 03/31/11 Palo Alto Stores Supplies/Parts 97 03/31/11 Palo Alto Stores Supplies/Parts 4,045 April 26, 2011 Report 03/31/11 Palo Alto Stores Supplies/Parts 89 03/31/11 Palo Alto Stores Supplies/Parts 661 06/14/10 Palo Alto Stores Reversal of Prior Charges (2,834) 03/29/11 Palo Alto Stores Reversal of Prior Charges (628) 03/30/11 Palo Alto Stores Reversal of Prior Charges (571) July 26, 2011 Report 04/04/11 Palo Alto Stores Reversal of Prior Charges (143) 04/30/11 City of Palo Alto - Public Works Underground Fire Supply/Hydrant Permit Fee 1,335 07/06/11 City of Palo Alto - Development Center Plan Check Fee 93 07/06/11 City of Palo Alto - Planning Plan Check Fee 89 08/31/11 City of Palo Alto - Planning Plan Review - modify permit 133 08/31/11 City of Palo Alto - Planning Plan Review - modify permit 105 08/31/11 City of Palo Alto - Planning Plan Review - modify permit 137 08/31/11 City of Palo Alto - Planning Plan Review - modify permit 133 October 25, 2011 Report 08/31/11 City of Palo Alto - Planning Plan Review - modify permit 105 08/31/11 City of Palo Alto - Planning Plan Review - modify permit 121 08/31/11 City Of Palo Alto - Development Center Mitchell Library Plan Check 145 08/31/11 City Of Palo Alto - Development Center Mitchell Library Plan Check 277 08/31/11 City Of Palo Alto - Planning Mitchell Library Plan Check 40 09/30/11 City of Palo Alto - Planning Mitchell Library - Permit Revision 89 10/31/11 City of Palo Alto - Development Center Plan Check Fee 113 January 18, 2012 10/31/11 City of Palo Alto - Development Center Plan Check Fee 325 11/30/11 City of Palo Alto - Planning Plan Review - modify permit 97 11/30/11 City of Palo Alto - Planning Plan Review - modify permit 121 11/30/11 City of Palo Alto - Planning Plan Review - modify permit 121 11/30/11 City of Palo Alto - Planning Plan Review - modify permit 109 01/31/12 City of Palo Alto - Planning Plan Review - modify permit 85 01/31/12 City of Palo Alto - Planning Plan Review - modify permit 4,056 March 28, 2012 12/31/11 City of Palo Alto - Planning Plan Review - modify permit 93 12/21/11 City of Palo Alto - Planning Plan Review - modify permit 85 02/29/12 City of Palo Alto - Planning Plan Review - modify permit 89 02/29/12 City of Palo Alto - Planning Plan Review - modify permit 121 04/25/12 City of Palo Alto - Stores Inventory Conduit, Rgid Steel T/C 10Ft length 2"181 04/25/12 City of Palo Alto - Stores Inventory Pipes - Valves - Fitting 4 04/30/12 City of Palo Alto - Planning Plan Review (Electrical Veh. Chargers permit)977 05/16/12 City of Palo Alto - Planning Plan Review (Ceiling Structural Chgs.) - Mitchell 344 05/16/12 City of Palo Alto - Planning Plan Review (foundation, framing, plumbing) - Mitchell Park L 364 July 5, 2012 05/16/12 City of Palo Alto - Planning Plan Review (Solar Water Heater) - Mitchell Park Library 165 05/16/12 City of Palo Alto - Planning Plan Review - Mitchell Park Library 137 05/31/12 City of Palo Alto - Planning MP -Plan Review for electrical signage permit 112 06/28/12 City of Palo Alto - Planning Plan Review - Mitchell Park Library 105 06/29/12 City of Palo Alto - Planning Plan Review - Mitchell Park Library 105 06/29/12 City of Palo Alto - Planning Plan Review - Mitchell Park Library 300 06/29/12 City of Palo Alto - Planning Plan Review - Mitchell Park Library 151 October 30, 2012 09/14/12 City of Palo Alto - Planning Plan Review - Mitchell Park Library 89 09/14/12 City of Palo Alto - Planning Plan Review - Mitchell Park Library 137 11/30/12 City of Palo Alto - Public Works Mitchell Park Library - Plan Review 116 12/31/12 City of Palo Alto - Public Works Mitchell Park Library - Plan Review 7 January 23, 2013 Report 03/31/13 City of Palo Alto - Development Center Architectural Review 92 April 12, 2013 04/17/13 Ginn and Crosby, LLC Legal Services 225 04/17/13 Ginn and Crosby, LLC Legal Services 432 06/05/13 Ginn and Crosby, LLC Legal Services 144 06/05/13 Ginn and Crosby, LLC Legal Services 5,243 06/05/13 Javis, Fay, Doporto & Gibson, LLP Legal Services 16,570 July 23, 2013 06/05/13 Javis, Fay, Doporto & Gibson, LLP Legal Services 38 06/19/13 David Neagley, AIA Legal Services 1,624 01/30/14 Brad Oldham Internation, Inc.Install of Stainless Owls 49 01/30/14 Brad Oldham Internation, Inc.Install of Stainless Owls 565 July 2, 2014 Sub-total - City (Inter-department) Service Charge - 320,534 - (320,534) Miscellaneous Cost Summary of Expenditures as of July 21, 2010 3,315 06/30/10 Office Max (US Bank-Calcard) - Reversed Reverse office supplies charged to project (246) 06/30/10 Debra Jacobs Reverse prior travel and meeting expense (6) Oct. 21, 2010 Report 06/30/10 Karen Bengard Reverse prior travel and meeting expense (20) 06/30/10 Hung Nguyen Reverse prior travel and meeting expense (11) 06/30/10 Hung Nguyen Reverse prior travel and meeting expense (20) 03/30/11 Palo Alto Stores Supplies/Parts 4 April 26, 2011 Report 03/30/11 Palo Alto Stores Supplies/Parts 214 03/30/11 Palo Alto Stores Reversal of Prior Charges (4) 03/30/11 Palo Alto Stores Reversal of Prior Charges (214) July 26, 2011 Report 04/21/11 City of Palo Alto - Utilities Utility Connection Fee 68,559 13 Payment Date Payee Description Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Mitchell Park Library and Community Center Activity Details (PE-09006) As of January 14, 2015 (Revised 2) 02/15/12 Palo Alto Stores Supplies/Parts 4 02/15/12 Palo Alto Stores Supplies/Parts 176 March 28, 2012 Report 02/15/12 Palo Alto Stores Supplies/Parts 218 02/15/12 Palo Alto Stores Supplies/Parts 4 12/31/12 State Water Resources Control Board Submitting Permit Registration Documents 505 January 23, 2013 Report 02/06/13 4LEAF, Inc.Building Inspection 2,553 02/06/13 4LEAF, Inc.Building Inspection 8,769 April 12, 2013 03/13/13 4LEAF, Inc.Building Inspection 9,213 03/13/13 4LEAF, Inc.Building Inspection 10,656 08/21/13 4LEAF, Inc.Building Inspection 15,318 10/30/13 4LEAF, Inc.Building Inspection 9,713 12/05/13 4LEAF, Inc.Building Inspection 14,430 12/18/13 4LEAF, Inc.Building Inspection 14,708 10/16/13 Computerland of Silicon Valley Wi-Fi Connectivity (Wireless Access Points (WAPs) )25,615 December 24, 2013 11/26/13 CDW Government Uninterruptable Power Supplies for Computers 6,134 12/05/13 CDW Government Uninterruptable Power Supplies for Computers 301 12/18/13 State Water Resources Control Board Submitting Permit Registration Documents 664 11/06/13 Bibliotheca, Inc.Security Gates 12,375 04/23/14 4LEAF, Inc.Building Inspection 1,332 06/04/14 4LEAF, Inc.Building Inspection 1,887 July 2, 2014 07/31/14 City of Palo Alto - Stores Inventory Safety Vest 16 07/04/14 California Paint Company Special Filler for Wood Bridges 176 07/31/14 City of Palo Alto - Stores Inventory Safety Vest 76 October 8, 2014 07/31/14 City of Palo Alto - Stores Inventory Safety Vest 154 07/31/14 City of Palo Alto - Stores Inventory Safety Vest 63 07/31/14 City of Palo Alto - Stores Inventory Safety Vest 41 07/31/14 City of Palo Alto - Stores Inventory Safety Vest 19 11/06/13 Bibliotheca, Inc.Security Gates 2,995 03/31/13 Office Max (US Bank-Calcard) - Reversed Reversal of Bondable Expenditure (65) 10/16813 Ginn and Crosby, LLC Legal Services 360 10/09/15 Ginn and Crosby, LLC Legal Services 288 11/05/14 Ginn and Crosby, LLC Legal Services 3,145 10/22/14 Moovers, Inc.Moving Services 4,797 10/01/14 4LEAF, Inc.Building Inspection 5,200 January 14, 2015 10/29/14 4LEAF, Inc.Building Inspection 4,810 Sub-total - Miscellaneous Cost - 228,216 - (228,216) Grant Total 47,725,437 43,733,840 2,066,152 1,925,445 14 Payment Date Purchasing Document Payee Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Project Budget Original Budget (per Measure N Ballot Measure) 18,000,000$ Budget Change 4,342,563 Sub-total - 2010 Engineer's Budget Estimate 22,342,563 - - 22,342,563 Engineering, Architectural, Constr., and Publishing (Reproduction) Costs 10/05/10 Group 4 Architecture Research and Planning Architectural 73,246 10/05/10 Group 4 Architecture Research and Planning Architectural 700 10/05/10 Group 4 Architecture Research and Planning Architectural 73,246 11/02/10 Group 4 Architecture Research and Planning Architectural 5,785 11/02/10 Group 4 Architecture Research and Planning Architectural 122,100 Jan. 25, 2011 Report 12/07/10 Group 4 Architecture Research and Planning Architectural 2,390 01/04/11 Group 4 Architecture Research and Planning Architectural 15,000 01/04/11 Group 4 Architecture Research and Planning Architectural 583 01/04/11 Group 4 Architecture Research and Planning Architectural 859 01/04/11 Turner Construction Company Construction Management Services 1,195 02/24/11 Group 4 Architecture Research and Planning Architectural 4,860 03/18/11 Group 4 Architecture Research and Planning Architectural 73,246 03/18/11 Group 4 Architecture Research and Planning Architectural 7,500 03/18/11 Group 4 Architecture Research and Planning Architectural 53 03/18/11 Group 4 Architecture Research and Planning Architectural 3,843 04/11/11 Group 4 Architecture Research and Planning Architectural 112,464 04/11/11 Group 4 Architecture Research and Planning Architectural 3,993 04/11/11 Group 4 Architecture Research and Planning Architectural 7,500 01/21/11 Group 4 Architecture Research and Planning Architectural 24,392 April 26, 2011 Report 01/21/11 Turner Construction Company Construction Management Services 1,434 01/21/11 Group 4 Architecture Research and Planning Architectural 2,500 01/24/11 Group 4 Architecture Research and Planning Architectural 1,500 01/21/11 Group 4 Architecture Research and Planning Architectural 447 02/18/11 Turner Construction Company Construction Management Services 478 02/18/11 Group 4 Architecture Research and Planning Architectural 48,831 02/18/11 Group 4 Architecture Research and Planning Architectural 2,653 02/18/11 Group 4 Architecture Research and Planning Architectural 3,238 05/12/11 Group 4 Architecture Research and Planning Architectural 6,250 05/12/11 Group 4 Architecture Research and Planning Architectural 40,052 05/12/11 Group 4 Architecture Research and Planning Architectural 12,411 05/12/11 Group 4 Architecture Research and Planning Architectural 3,263 05/17/11 Group 4 Architecture Research and Planning Architectural 4,553 July 26, 2011 Report 06/09/11 Group 4 Architecture Research and Planning Architectural 31,374 07/01/11 Turner Construction Company Construction Management Services 9,169 07/11/11 Group 4 Architecture Research and Planning Architectural 11,100 07/11/11 Group 4 Architecture Research and Planning Architectural 488 07/11/11 Group 4 Architecture Research and Planning Architectural 15,687 07/27/11 Group 4 Architecture Research and Planning Architectural 319 07/27/11 Group 4 Architecture Research and Planning Architectural 1,150 07/27/11 Group 4 Architecture Research and Planning Architectural 1,875 07/27/11 Turner Construction Company Construction Management Services 5,572 08/10/11 Group 4 Architecture Research and Planning Architectural 31,374 08/24/11 Turner Construction Company Construction Management Services 2,868 October 25, 2011 Report 08/31/11 Group 4 Architecture Research and Planning Architectural 117 08/31/11 Group 4 Architecture Research and Planning Architectural 175 08/31/11 Group 4 Architecture Research and Planning Architectural 248 09/14/11 Group 4 Architecture Research and Planning Architectural 67 09/14/11 Group 4 Architecture Research and Planning Architectural 600 09/14/11 Group 4 Architecture Research and Planning Architectural 39,218 10/26/11 Group 4 Architecture Research and Planning Architectural 5,000 10/26/11 Group 4 Architecture Research and Planning Architectural 235,308 10/26/11 Group 4 Architecture Research and Planning Architectural 878 10/26/11 Group 4 Architecture Research and Planning Architectural 5,000 10/26/11 Group 4 Architecture Research and Planning Architectural 291 10/26/11 Group 4 Architecture Research and Planning Architectural 27 11/02/11 Group 4 Architecture Research and Planning Architectural 78,436 11/02/11 Group 4 Architecture Research and Planning Architectural 7,500 11/22/11 Group 4 Architecture Research and Planning Architectural 8,514 12/07/11 Group 4 Architecture Research and Planning Architectural 62,749 January 18, 2012 Report 12/14/11 Group 4 Architecture Research and Planning Architectural 12,584 12/14/11 Group 4 Architecture Research and Planning Architectural 79,172 12/14/11 Group 4 Architecture Research and Planning Architectural 12,584 12/21/11 Protect Consulting and Engineering Hazardous Material Testing 3,530 12/21/11 Group 4 Architecture Research and Planning Architectural 3,052 01/11/12 Group 4 Architecture Research and Planning Architectural 225 01/11/12 Group 4 Architecture Research and Planning Architectural 9,761 01/11/12 Group 4 Architecture Research and Planning Architectural 70,592 01/11/12 Group 4 Architecture Research and Planning Architectural 150 01/11/12 Group 4 Architecture Research and Planning Architectural 247 02/22/12 Group 4 Architecture Research and Planning Architectural 10,000 02/22/12 Group 4 Architecture Research and Planning Architectural 62,749 02/22/12 Group 4 Architecture Research and Planning Architectural 8,676 Rinconada (aka Main) Library Activity Details (PE-11000) As of January 14, 2015 (Revised 2) 15 Payment Date Purchasing Document Payee Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Rinconada (aka Main) Library Activity Details (PE-11000) As of January 14, 2015 (Revised 2) 02/22/12 Group 4 Architecture Research and Planning Architectural 3,590 March 28, 2012 Report 03/21/12 Group 4 Architecture Research and Planning Architectural 1,330 03/21/12 Group 4 Architecture Research and Planning Architectural 5,423 03/21/12 Group 4 Architecture Research and Planning Architectural 39,218 02/22/12 BIG-D Pacific Builders, LP Construction 32,500 12/21/12 BIG-D Pacific Builders, LP Construction 36,960 04/04/12 Group 4 Architecture Research and Planning Architectural 18,925 04/18/12 Group 4 Architecture Research and Planning Architectural 1,500 04/18/12 Group 4 Architecture Research and Planning Architectural 19 04/18/12 Group 4 Architecture Research and Planning Architectural 9,784 05/16/12 Group 4 Architecture Research and Planning Architectural 3,278 July 5, 2012 Report 05/16/12 Group 4 Architecture Research and Planning Architectural 29,046 05/30/12 Group 4 Architecture Research and Planning Architectural 39,504 06/20/12 Group 4 Architecture Research and Planning Architectural 13,884 07/05/12 Group 4 Architecture Research and Planning Architectural 407 07/05/12 Group 4 Architecture Research and Planning Architectural 2,500 07/25/12 Group 4 Architecture Research and Planning Architectural 1,613 07/25/12 Group 4 Architecture Research and Planning Architectural 1,535 07/25/12 Group 4 Architecture Research and Planning Architectural 1,992 October 30, 2012 Report 09/05/12 Group 4 Architecture Research and Planning Architectural 7,551 09/26/12 Group 4 Architecture Research and Planning Architectural 5,996 10/31/12 Turner Construction Company Construction Management Services 7,444 11/19/12 Group 4 Architecture Research and Planning Architectural 2,097 11/19/12 Group 4 Architecture Research and Planning Architectural 5,423 11/19/12 Group 4 Architecture Research and Planning Architectural 8,000 11/19/12 Group 4 Architecture Research and Planning Architectural 270 11/19/12 Group 4 Architecture Research and Planning Architectural 2,097 10/31/12 Turner Construction Company Construction Management Services 10,000 January 23, 2013 Report 10/11/12 Fastsigns signs 389 01/09/13 NOVA Partners, Inc.Construction Management Services 19,320 01/23/13 Group 4 Architecture Research and Planning Architectural 2,500 01/23/13 Group 4 Architecture Research and Planning Architectural 969 01/23/13 Group 4 Architecture Research and Planning Architectural 4,979 01/23/13 Group 4 Architecture Research and Planning Architectural 725 01/23/13 NOVA Partners, Inc.Construction Management Services 12,010 02/06/13 Group 4 Architecture Research and Planning Architectural 3,243 02/27/13 West Coast Code Consultants, Inc.Plan Check 13,300 02/27/13 NOVA Partners, Inc.Construction Management Services 18,280 April 12, 2013 03/06/13 Group 4 Architecture Research and Planning Architectural 30,776 04/03/13 NOVA Partners, Inc.Construction Management Services 17,000 04/24/13 Group 4 Architecture Research and Planning Architectural 13 05/08/13 Group 4 Architecture Research and Planning Architectural 479 05/08/13 Group 4 Architecture Research and Planning Architectural 9,324 05/22/13 Group 4 Architecture Research and Planning Architectural 1,641 05/22/13 Group 4 Architecture Research and Planning Architectural 157 July 23, 2013 04/24/13 NOVA Partners, Inc.Construction Management Services 16,360 05/22/13 NOVA Partners, Inc.Construction Management Services 18,280 04/10/13 ARC Signs 71 05/01/13 ARC signs 210 06/19/13 Metropolitan Van and Storage, Inc.Equipment Moving 31,367 06/26/13 NOVA Partners, Inc.Construction Management Services 6,134 07/31/13 NOVA Partners, Inc.Construction Management Services 31,565 08/21/13 NOVA Partners, Inc.Construction Management Services 30,750 08/21/13 West Coast Code Consultants, Inc.Plan Check 1,185 Sept. 25, 2013 08/21/13 Group 4 Architecture Research and Planning Architectural 34 07/27/13 Group 4 Architecture Research and Planning Architectural 17,341 08/21/13 Group 4 Architecture Research and Planning Architectural 43,310 09/25/13 S.J. Amoroso Construction Construction 1,396,323 09/25/13 ARC Reproductive Services 52 10/02/13 NOVA Partners, Inc.Construction Management Services 35,578 10/16/13 Group 4 Architecture Research and Planning Architectural 86,670 10/23/13 NOVA Partners, Inc.Construction Management Services 38,025 10/30/13 S.J. Amoroso Construction Construction 771,030 December 24, 2013 11/20/13 NOVA Partners, Inc.Construction Management Services 37,554 12/05/13 Group 4 Architecture Research and Planning Architectural 43,360 12/11/13 S.J. Amoroso Construction Construction 1,204,872 12/18/13 NOVA Partners, Inc.Construction Management Services 41,811 12/23/13 S.J. Amoroso Construction Construction 876,464 01/29/14 NOVA Partners, Inc.Construction Management Services 42,311 02/26/14 NOVA Partners, Inc.Construction Management Services 34,852 03/26/14 NOVA Partners, Inc.Construction Management Services 30,855 04/16/14 West Coast Code Consultants, Inc.Plan Check 613 01/29/14 Protech Consulting and Engineering Hazardous Material Testing 22,580 01/29/14 S.J. Amoroso Construction Construction 857,070 03/05/14 S.J. Amoroso Construction Construction 1,098,894 April 16, 2014 04/02/14 S.J. Amoroso Construction Construction 1,045,937 01/29/14 Group 4 Architecture Research and Planning Architectural 43,360 02/26/14 Group 4 Architecture Research and Planning Architectural 43,360 01/29/14 Group 4 Architecture Research and Planning Architectural 43,360 16 Payment Date Purchasing Document Payee Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Rinconada (aka Main) Library Activity Details (PE-11000) As of January 14, 2015 (Revised 2) 04/02/14 Group 4 Architecture Research and Planning Architectural 188,020 04/16/14 Group 4 Architecture Research and Planning Architectural 43,350 03/26/14 ARC Reproduction Services 258 04/02/14 Envision Ware, Inc.Professional services 1,795 11/29/04 Envision Ware, Inc.Professional services ($47,731 deleted) 05/14/14 NOVA Partners, Inc.Construction Management Services 37,950 05/28/14 NOVA Partners, Inc.Construction Management Services 39,369 06/04/14 Group 4 Architecture Research and Planning Architectural 18,900 06/25/14 NOVA Partners, Inc.Construction Management Services 35,540 July 2, 2014 04/23/14 S.J. Amoroso Construction Construction 1,058,321 05/28/14 S.J. Amoroso Construction Construction 1,487,530 06/04/14 Group 4 Architecture Research and Planning Architectural 86,702 06/25/14 Group 4 Architecture Research and Planning Architectural 86,746 07/02/14 S.J. Amoroso Construction Construction 1,852,722 07/16/14 NOVA Partners, Inc.Construction Management Services 34,767 08/27/14 NOVA Partners, Inc.Construction Management Services 33,075 09/17/14 NOVA Partners, Inc.Construction Management Services 34,182 07/02/14 West Coast Code Consultants, Inc.Plan Check 1,203 08/13/14 Group 4 Architecture Research and Planning Architectural 39,700 07/30/14 PACIFIC GAS & ELECTRIC CO Survey 6,000 October 8, 2014 08/06/14 S.J. Amoroso Construction Construction 2,164,627 09/03/14 S.J. Amoroso Construction Construction 1,591,611 07/31/14 S.J. Amoroso Construction Construction 1,641,497 10/08/14 Group 4 Architecture Research and Planning Architectural 29,816 10/08/14 Group 4 Architecture Research and Planning Architectural 86,738 10/08/14 Group 4 Architecture Research and Planning Architectural 75,770 07/27/13 Group 4 Architecture Research and Planning Architectural 17,341 11/05/14 NOVA Partners, Inc.Construction Management Services 24,808 11/05/14 S.J. Amoroso Construction Construction 330,380 January 14, 2015 12/03/14 Group 4 Architecture Research and Planning Architectural 26,835 12/17/14 Group 4 Architecture Research and Planning Architectural 4,990 01/14/15 S.J Amoroso Contruction costs that are currently being funded by the Infrastructure Reserve (1,800,000) Protech Consulting and Engineering Hazardous Material Testing 2,280 Group 4 Architecture Research and Planning Architectural 210,022 NOVA Partners, Inc. Construction Management Services 39,158 Turner Construction Company Construction Management Services 34,986 AT&T Engineering Professional services 6,298 Schaff & Wheeler Consulting Storm Water (Third Party 600 Ross McDonald Company, Inc. Construction Services 49,139 West Coast Code Consultants, Inc. Plan Check 1,600 Envision Ware, Inc. Professional services 371,125 3M Library Systems 55,666 Metropolitan Van and Storage, Inc. Equipment Moving 18,102 S.J. Amoroso Construction Construction 1,021,336 Applied Materials / Engineering, Inc. Professional services 16,689 Sub-total - Engineering and Architectural Costs - 19,188,061 1,827,000 (21,015,061) Contract Contingency 05/27/11 Group 4 Architecture Research and Planning Architectural 22,152 July 26, 2011 Report 06/09/11 Group 4 Architecture Research and Planning Architectural 571 02/22/12 Group 4 Architecture Research and Planning Architectural 122 March 28, 2012 Report 11/19/12 Group 4 Architecture Research and Planning Architectural 124 January 23, 2013 Report 04/03/13 Group 4 Architecture Research and Planning Architectural 8,442 April 12, 2013 03/06/13 Group 4 Architecture Research and Planning Architectural 8,442 04/24/13 Group 4 Architecture Research and Planning Architectural 6,300 05/22/13 Group 4 Architecture Research and Planning Architectural 64,633 July 23, 2013 06/05/13 Group 4 Architecture Research and Planning Architectural 27,225 07/17/13 Group 4 Architecture Research and Planning Architectural 12,658 07/17/13 Group 4 Architecture Research and Planning Architectural 3,150 Sept. 25, 2013 08/21/13 Group 4 Architecture Research and Planning Architectural 9,900 08/21/13 Group 4 Architecture Research and Planning Architectural 9,900 06/21/13 NOVA Partners, Inc. Construction Management Services 9,480 December 24, 2013 04/16/14 Group 4 Architecture Research and Planning Architectural 15,750 April 16, 2014 04/23/14 S.J. Amoroso Construction Construction 16,461 July 2, 2014 07/02/14 West Coast Code Consultants, Inc. Plan Check 941 October 8, 2014 12/03/14 Group 4 Architecture Research and Planning Architectural 13,720 12/03/14 Group 4 Architecture Research and Planning Architectural 5,651 12/29/14 NOVA Partners, Inc. Construction Management Services 18,250 January 14, 2015 12/03/14 Group 4 Architecture Research and Planning Architectural 6,600 12/10/14 S.J. Amoroso Construction Construction 316,985 12/10/14 S.J. Amoroso Construction Construction 20,517 Sub-total - Contract Contingency - 597,974 - (597,974) Other Contract Services 12/05/12 Planet Orange Termite Inspection Fee 350 12/31/12 Fastsigns Sign 226 12/19/12 Creative Machines, Inc. Plans and Technical Drawings 52,000 12/19/12 Creative Machines, Inc. Plans and Technical Drawings 12,000 17 Payment Date Purchasing Document Payee Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Rinconada (aka Main) Library Activity Details (PE-11000) As of January 14, 2015 (Revised 2) 10/31/12 City of Palo Alto - Public Works Main Library Renovation - Plan Check Fee 115,654 12/06/12 City of Palo Alto - Development Center Architectural Review 2,678 January 23, 2013 Report 12/06/12 City of Palo Alto - Development Center Architectural Review 25 12/06/12 City of Palo Alto - Development Center Architectural Review 20 12/06/12 City of Palo Alto - Development Center Architectural Review 622 12/06/12 City of Palo Alto - Development Center Architectural Review 2,892 12/06/12 City of Palo Alto - Development Center Architectural Review 252 04/24/13 FedEx Mailing 111 04/24/13 FedEx Mailing 98 July 23, 2013 04/17/13 FedEx Mailing 111 06/30/13 Fastsigns Signs 1,423 07/31/13 Metropolitan Van and Storage, Inc.Equipment Moving 1,365 Sept. 25, 2013 08/21/13 Metropolitan Van and Storage, Inc.Equipment Moving 1,365 10/02/13 Metropolitan Van and Storage, Inc.Equipment Moving 1,365 10/09/13 Metropolitan Van and Storage, Inc.Equipment Moving 1,365 11/13/13 Metropolitan Van and Storage, Inc.Equipment Moving 500 December 24, 2013 11/20/13 Metropolitan Van and Storage, Inc.Equipment Moving 1,365 12/18/13 Metropolitan Van and Storage, Inc.Equipment Moving 1,665 04/02/14 Metropolitan Van and Storage, Inc.Equipment Moving 1,365 02/12/14 Metropolitan Van and Storage, Inc.Equipment Moving 1,365 April 16, 2014 04/02/14 Metropolitan Van and Storage, Inc.Equipment Moving 1,365 01/29/14 FedEx Mailing 47 05/15/14 Protech Consulting and Engineering Hazardous Material Testing 3,270 05/07/14 Creative Machines, Inc.Plans and Technical Drawings 13,000 06/11/14 Metropolitan Van and Storage, Inc.Equipment Moving 1,365 05/28/14 Metropolitan Van and Storage, Inc.Equipment Moving 1,365 July 2, 2014 05/21/14 Metropolitan Van and Storage, Inc.Equipment Moving 1,365 06/25/14 Metropolitan Van and Storage, Inc.Equipment Moving 800 07/02/14 AT&T Engineering and Construction 6,298 03/31/14 Envision Ware, Inc.Professional services 157 07/09/14 Applied Materials / Engineering, Inc.Professional services 110 07/09/14 Applied Materials / Engineering, Inc.Professional services 1,760 07/16/14 ARC Reproduction Services 71 08/06/14 Creative Machines, Inc.Plans and Technical Drawings 13,000 07/09/14 Chem Aqua Loop corrosion inhibitor chemical addition/water analysis 837 07/23/14 Metropolitan Van and Storage, Inc.Equipment Moving 1,365 08/13/14 Metropolitan Van and Storage, Inc.Equipment Moving 1,365 October 8, 2014 09/17/14 Metropolitan Van and Storage, Inc.Equipment Moving 1,365 10/08/14 Applied Materials / Engineering, Inc.Professional services 5,601 10/08/14 Metropolitan Van and Storage, Inc.Equipment Moving 1,365 07/11/14 City of Palo Alto Signage Review for ARB 698 07/22/14 City of Palo Alto Signage Review for ARB 2,918 11/12/14 Metropolitan Van and Storage, Inc.Equipment Moving 11,638 12/10/14 Metropolitan Van and Storage, Inc.Equipment Moving 450 12/17/14 Schaaf & Wheeler Consulting Storm Water 3 Party Review 2,500 January 14, 2015 10/22/14 Bibliotheca, Inc.Security Gates 18,800 10/31/14 Bibliotheca, Inc.Security Gates 1,645 Sub-total - Other Contract Services - 294,702 - (294,702) City (Inter-department) Service Charge 10/31/14 City of Palo Alto - Planning Review of sculpture signage and address sign 456 January 14, 2015 Sub-total - City (Inter-department) Service Charge - 456 - (456) Miscellaneous Cost 02/27/13 Fastsigns Signage 590 April 12, 2013 Sub-total - Miscellaneous Cost - 590 - (590) Grant Total 22,342,563 20,081,782 1,827,000 433,780 18 Payment Date Payee Description Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Project Budget Temporary Mitchell Park Library (Council Approved - CMR: 463:09) 645,000 Budget Change - gg Sub-total - 2010 Engineer's Budget Estimate 645,000 - - 645,000 Engineering, Architectural, Constr., and Publishing (Reproduction) Costs Summary of Expenditures as of July 21, 2010 439,283 10/05/10 Group 4 Architecture Research & Planning Architectural 5,774 Oct. 21, 2010 Report 08/24/10 Group 4 Architecture Research & Planning Architectural 329 01/27/11 Johnstone Moyer, Inc.Temp. Library Improvements 19,191 April 26, 2011 Report 11/12/14 Ross McDonald Company, Inc.Construction Services 3,200 January 14, 2015 Ross McDonald Company, Inc.Construction Services 3,540 Sub-total - Engineering and Architectural Costs - 467,777 3,540 (471,317) Contract Contingency Summary of Expenditures as of July 21, 2010 2,541 08/24/10 Johnstone Moyer, Inc.Temp. Library Improvements 24,604 Oct. 21, 2010 Report 08/27/10 West Corporation Temp. Lib. - Security Access Card & Alarm 310 01/27/11 Johnstone Moyer, Inc.Temp. Library Improvements 6,045 April 26, 2011 Report Sub-total - Contract Contingency - 33,500 - (33,500) City (Inter-department) Service Charge Summary of Expenditures as of July 21, 2010 11,247 March 28, 2012 Report Sub-total - City (Inter-department) Service Charge - 11,247 - (11,247) Miscellaneous Cost Summary of Expenditures as of July 21, 2010 125 March 28, 2012 Report Sub-total - Miscellaneous Cost - 125 - (125) Grant Total 645,000 512,648 3,540 128,812 Temporary Library at Cubberley (for Mitchell Facility) - Activity Details (PE-09010) As of January 14, 2015 (Revised 2) 19 Payment Date Payee Description Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Project Budget Temporary Main Library Facility - Art Center Auditorium 500,000 Sub-total - 2010 Engineer's Budget Estimate 500,000 - - 500,000 Engineering, Architectural, Constr., and Publishing (Reproduction) Costs Summary of Expenditures as of July 21, 2010 - 04/04/12 Group 4 Architecture Research & Planning Architectural 15,687 July 5, 2012 Report 04/04/12 Group 4 Architecture Research & Planning Architectural 11,288 07/25/12 Group 4 Architecture Research & Planning Architectural 1,121 October 30, 2012 Report 06/15/76 Ross McDonald Company, Inc.Library Shelving 7,176 06/19/13 Big-D Pacific Builders, LP Construction Services 253,627 July 23, 2013 08/16/13 Big-D Pacific Builders, LP Construction Services 29,997 Sept. 25, 2013 Group 4 Architecture Research & Planning Architectural 2,960 Ross McDonald Company, Inc.Library Shelving 1,929 Sub-total - Engineering and Architectural Costs - 318,896 4,888 (323,784) Contract Contingency Summary of Expenditures as of July 21, 2010 - 04/30/13 Fastsigns Signs 593 04/30/13 Metropolitan Van and Storage, Inc.Equipment Moving 380 04/30/13 Fastsigns Signs 598 July 23, 2013 04/30/13 Fastsigns Signs 41 05/31/13 Fastsigns (Reversal of Drawdown)Signs (138) January 14, 2015 Sub-total - Contract Contingency - 1,474 - (1,474) City (Inter-department) Service Charge Summary of Expenditures as of July 21, 2010 - 04/30/13 City of Palo Alto - Planning Architectural Review 384 04/30/13 City of Palo Alto - Development Center Architectural Review 216 July 23, 2013 05/31/13 City of Palo Alto _ Development Center Architectural Review 122,489 06/30/13 City of Palo Alto _ Development Center Architectural Review 636 Sept. 25, 2013 Sub-total - City (Inter-department) Service Charge - 123,725 - (123,725) Miscellaneous Cost Summary of Expenditures as of July 21, 2010 - Sub-total - Miscellaneous Cost - - - - Grant Total 500,000 444,095 4,888 51,017 Art Center Temporary Library - Activity Details (Project # PE-11012) As of January 14, 2015 (Revised 2) 20 12345 6 7 8 (3 minus 1) (5 minus 1) (5 minus 4) (7 divide by 4) Measure N Estimates Changes in Measure Estimates Engineer's Estimate Project Budget April 2015 Projected Costs Diff. Between Measure N Estimates vs. Projected Costs $ Diff. Between Project Budget vs. Projected Costs % Diff. Between Project Budget vs. Projected Costs Downtown Library 4,000,000$ 1,212,000$ 5,212,000$ 4,212,000$ 4,191,782$ (191,782) 20,218$ 0.5% Mitchell Park & Community Center Library 50,000,000 (957,000) 49,043,000 47,725,437 45,000,000 5,000,000 2,725,437 5.7% Cubberley Temporary Library - 645,000 645,000 645,000 619,687 (619,687) 25,313 3.9% Rinconada (aka Main) Library *18,000,000 2,100,000 20,100,000 22,342,563 21,300,000 (3,300,000) 1,042,563 4.7% Art Center Temporary Library - 500,000 500,000 500,000 536,509 (536,509) (36,509) (7.3%) Total Prior to Bond Financing Costs 72,000,000 3,500,000 75,500,000 75,425,000 71,647,978 352,022 3,777,022 5.0% Bond Financing Costs **4,000,000 (3,500,000) 500,000 500,000 185,320 3,814,680 314,680 62.9% Grand Total 76,000,000$ -$ 76,000,000$ 75,925,000$ 71,833,298$ 4,166,702$ 4,091,702$ 5.4% Interest Earnings on the Project Bond Funds 282,565$ Projected Bond Savings 4,374,267$ *The Rinconada Library Project Budget, Projected Costs, and actual expenditures excludes $500,000 in expenses for connectivity between the Library and the Art Center funded by PF-09007 and excludes $1,800,000 (S.J. Amoroso Construction) expenditures, currently both are being funded by the Infrastructure Reserve. ** The actual bond issuance cost is substantially lower than the Measure N estimate due to avoidance of Capitalized Interest costs. Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance % Diff. Between Engineer's Est. vs. Remaining Bal. Budget Original Budget (per Measure N Ballot Measure)72,000,000$ -$ -$ 72,000,000$ Temporary Mitchell Park Library (Council Approved - CMR: 463:09)645,000 645,000 Temporary Main Library Facility - Art Center Auditorium 500,000 500,000 Net Other Budget Changes 2,280,000 2,280,000 Expenditures - Engineering, Architectural, Constr., and Publishing (Reproduction) Costs 60,426,045 2,733,632 (63,159,676) Construction Costs - - - Contract Contingency 7,528,985 - (7,528,985) Other Contract Services 1,969,302 - (1,969,302) City (Inter-department) Service Charge 501,463 - (501,463) Miscellaneous Cost 228,455 - (228,455) Total Library Projects Expenditures 75,425,000 70,654,250 2,733,632 2,037,118 Estimate of Pending Commitments/Costs and/or (Excess Encumbrances)- - (1,739,904) 1,739,904 Total Bond Funds Less Bond Financing Costs 75,425,000 70,654,250 993,728 3,777,022 5.0% Bond Financing Costs (a)500,000 185,320 - 314,680 62.9% Grand Total 75,925,000$ 70,839,570$ 993,728$ 4,091,702$ 5.4% Interest Earnings on the Project Bond Funds Projected Bond Savings 282,565.01 4,374,266.69 2010 GO Bond True Interest Cost (TIC)4.21% 2013 GO Bond True Interest Cost (TIC)3.85% ** The actual bond issuance cost is substantially lower than the Measure N estimate due to avoidance of Capitalized Interest costs. Budget History and Projection Description of Activity Library Projects Budget to Actual Activities Summary Library Bond Oversight Committee Quarterly Financial Report City of Palo Alto As of April 22, 2015 1 Library Bond Oversight Committee Quarterly Financial Report City of Palo Alto As of April 22, 2015 Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance % Diff. Between Engineer's Est. vs. Remaining Bal. Original Budget (per Measure N Ballot Measure) 4,000,000$ -$ -$ 4,000,000$ Budget Change 212,000 212,000 Expenditures Engineering, Architectural, Constr., and Publishing (Reproduction) Costs 3,617,992 44,467 (3,662,459) Construction Costs - - - - Contract Contingency - 462,490 - (462,490) Other Contract Services - 27,925 - (27,925) City (Inter-department) Service Charge - 45,501 - (45,501) Miscellaneous Cost - 3,163 - (3,163) Total Library Projects Expenditures 4,212,000 4,157,071 44,467 10,462 Estimate of Pending Commitments/Costs and/or (Excess Encumbrances)- - (9,756) 9,756 Total Bond Funds Less Bond Financing Costs 4,212,000$ 4,157,071$ 34,711$ 20,218$ 0.5% Reasons for Budget Increase of:212,000$ 1) Seismic upgrade 30,000$ July 2010 2) Roof replacement 125,000 June 2011 3) LEED - Green building upgrades 100,000 4) Construction Management Services increase 400,000 5) Fixed Equipment 187,000 6) Moving costs deemed to be bondable costs 50,000 7) Contingency adjustment 320,000 8) Transfer to Main Library (1,000,000) Net Budget Change 212,000$ Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance % Diff. Between Engineer's Est. vs. Remaining Bal. Original Budget (per Measure N Ballot Measure) 50,000,000$ -$ -$ 50,000,000$ Budget Change (2,274,563) (2,274,563) Expenditures Engineering, Architectural, Constr., and Publishing (Reproduction) Costs 36,633,816 1,350,212 (37,984,028) Contract Contingency - 6,101,432 - (6,101,432) Other Contract Services - 1,180,025 - (1,180,025) City (Inter-department) Service Charge - 320,534 - (320,534) Miscellaneous Cost - 224,578 - (224,578) Total Library Projects Expenditures 47,725,437 44,460,384 1,350,212 1,914,840 Estimate of Pending Commitments/Costs and/or (Excess Encumbrances)(810,597) 810,597 Total Bond Funds Less Bond Financing Costs 47,725,437$ 44,460,384$ 539,616$ 2,725,437$ 5.7% Reasons for Budget Decrease of:(2,274,563)$ 1) LEED - Green building (Council approved) upgrades 1,200,000$ September 2010 2) Fixed Equipment 1,750,000 December 2014 3) Moving costs deemed to be bondable costs 100,000 4) Contingency adjustment (4,007,000) 5) Transfer to Main Library Project (1,317,563) Net Budget Change (2,274,563)$ Description of Activity Mitchell Park Library and Community Center Budget to Actual Activities Summary (PE-09006) Downtown Library Budget to Actual Activities Summary (PE-09005) Completed: Construction Began: Construction Began: Completed: Description of Activity 2 Library Bond Oversight Committee Quarterly Financial Report City of Palo Alto As of April 22, 2015 Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance % Diff. Between Engineer's Est. vs. Remaining Bal. Original Budget (per Measure N Ballot Measure)18,000,000$ -$ -$ 18,000,000 Budget Change 4,342,563 4,342,563 Expenditures Engineering, Architectural, Constr., and Publishing (Reproduction) Costs 19,376,514 1,330,629 (20,707,143) Contract Contingency - 930,090 - (930,090) Other Contract Services - 761,351 - (761,351) City (Inter-department) Service Charge - 456 - (456) Miscellaneous Cost - 590 - (590) Total Library Projects Expenditures 22,342,563 21,069,002 1,330,629 (57,067) Estimate of Pending Commitments/Costs and/or (Excess Encumbrances)(1,099,630) 1,099,630 Total Bond Funds Less Bond Financing Costs 22,342,563$ 21,069,002$ 230,998$ 1,042,563$ 4.7% Reasons for Budget Increase of:4,342,563$ Lowest Accepted Bids Exceeded the Engineer's Estimates 4,342,563$ June 2013 November 2014 Net Budget Change 4,342,563$ *The Rinconada Library Project Budget, Projected Costs, and actual expenditures excludes $500,000 in expenses for connectivity between the Library and the Art Center funded by PF-09007 and excludes $1,800,000 (S.J. Amoroso Construction) expenditures, currently both are being funded by the Infrastructure Reserve. Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance % Diff. Between Engineer's Est. vs. Remaining Bal. Temporary Mitchell Park Library (Council Approved - CMR: 463:09)645,000$ -$ -$ 645,000$ Budget Change -$ - Expenditures Engineering, Architectural, Constr., and Publishing (Reproduction) Costs 467,777 3,540 (471,317) Contract Contingency - 33,500 - (33,500) City (Inter-department) Service Charge - 11,247 - (11,247) Miscellaneous Cost - 125 - (125) Total Library Projects Expenditures 645,000 512,648 3,540 128,812 Estimate of Pending Commitments/Costs and/or (Excess Encumbrances)103,499 (103,499) Total Bond Funds Less Bond Financing Costs 645,000$ 512,648$ 107,039$ 25,313$ 3.9% Description of Activity Cubberley Temporary Library Budget to Actual Activities Summary (PE-09010) Construction Began: Completed: Description of Activity Rinconada (aka Main) Library Budget to Actual Activities Summary (PE-11000) 3 Library Bond Oversight Committee Quarterly Financial Report City of Palo Alto As of April 22, 2015 Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance % Diff. Between Engineer's Est. vs. Remaining Bal. Temporary Main Library Facility - Art Center Auditorium 500,000$ -$ -$ 500,000$ Expenditures Engineering, Architectural, Constr., and Publishing (Reproduction) Costs 329,946 4,783 (334,729) Contract Contingency - 1,474 - (1,474) Other Contract Services - City (Inter-department) Service Charge - 123,725 - (123,725) Miscellaneous Cost - - - - Total Library Projects Expenditures 500,000 455,145 4,783 40,072 Estimate of Pending Commitments/Costs and/or (Excess Encumbrances)76,581 (76,581) Total Bond Funds Less Bond Financing Costs 500,000$ 455,145$ 81,364$ (36,509)$ (7.3%) Description of Activity Art Center Temporary Library Budget to Actual Activities Summary (Project # PE-11012) 4 Payment or Posting Date Payee Description Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Project Budget Original Budget (per Measure N Ballot Measure)4,000,000 Budget Change 212,000 Sub-total - 2010 Engineer's Budget Estimate 4,212,000 - - 4,212,000 Engineering, Architectural, Constr., and Publishing (Reproduction) Costs Summary of Expenditures as of July 21, 2010 418,563 08/24/10 Group 4 Architecture Research & Planning Architectural 362 09/21/10 Group 4 Architecture Research & Planning Architectural 135 08/03/10 Group 4 Architecture Research & Planning Architectural 16,233 08/03/10 Group 4 Architecture Research & Planning Architectural 56,000 08/10/10 Protech Consulting and Engineering Hazardous Material Testing 5,210 08/10/10 Turner Construction Company Construction Management Services 68,577 Oct. 21, 2010 Report 09/21/10 Group 4 Architecture Research & Planning Architectural 15 09/21/10 Group 4 Architecture Research & Planning Architectural 18,080 09/21/10 Group 4 Architecture Research & Planning Architectural 2,970 09/21/10 W.L. Butler Construction, Inc.Construction 93,177 10/05/10 Protech Consulting and Engineering Hazardous Material Testing 990 10/19/10 Group 4 Architecture Research & Planning Architectural 10,544 11/02/10 W. L. Butler Construction, Inc.Construction 69,984 11/02/10 Turner Construction Company Construction Management Services 27,984 11/02/10 Group 4 Architecture Research & Planning Architectural 11,864 12/07/10 Turner Construction Company Construction Management Services 55,174 12/07/10 Group 4 Architecture Research & Planning Architectural 11,688 Jan. 25, 2011 Report 12/07/10 W. L. Butler Construction, Inc.Construction 92,055 12/14/10 Group 4 Architecture Research & Planning Architectural 519 12/14/10 W. L. Butler Construction, Inc.Construction 159,940 01/04/11 Turner Construction Company Construction Management Services 27,984 01/07/11 Group 4 Architecture Research & Planning Architectural 11,688 01/21/11 West Coast Code Consultants, Inc.Plan Check 350 01/21/11 Turner Construction Company Construction Management Services 30,212 01/31/11 W. L. Butler Construction, Inc.Construction 211,220 02/18/11 W. L. Butler Construction, Inc.Construction 279,472 02/18/11 Group 4 Architecture Research & Planning Architectural 8,766 02/18/11 Turner Construction Company Construction Management Services 27,429 03/16/11 W. L. Butler Construction, Inc.Construction 277,033 April 26, 2011 Report 03/18/11 Group 4 Architecture Research & Planning Architectural 432 03/18/11 Group 4 Architecture Research & Planning Architectural 409 03/18/11 Group 4 Architecture Research & Planning Architectural 8,766 03/18/11 Group 4 Architecture Research & Planning Architectural 136 03/31/11 Pivot Interiors Design 2,250 03/31/11 Turner Construction Company Construction Management Services 17,808 04/07/11 Group 4 Architecture Research & Planning Architectural 13,149 04/19/11 Group 4 Architecture Research & Planning Architectural 2,795 04/25/11 W. L. Butler Construction, Inc.Construction 342,711 05/10/11 Turner Construction Company Construction Management Services 39,522 05/12/11 Group 4 Architecture Research & Planning Architectural 220 05/12/11 Group 4 Architecture Research & Planning Architectural 24,891 05/12/11 Group 4 Architecture Research & Planning Architectural 14,610 July 26, 2011 Report 05/17/11 Turner Construction Company Construction Management Services 28,334 05/27/11 W. L. Butler Construction, Inc.Construction 238,387 06/07/11 W. L. Butler Construction, Inc.Construction 352,713 06/07/11 Group 4 Architecture Research & Planning Architectural 14,610 06/09/11 Moovers, Inc.Moving Services 10,233 06/16/11 Group 4 Architecture Research & Planning Architectural 233 07/20/11 Group 4 Architecture Research & Planning Architectural 479 07/20/11 Group 4 Architecture Research & Planning Architectural 12,405 07/27/11 W.L. Butler Construction, Inc.Construction 157,980 07/27/11 Turner Construction Company Construction Management Services 26,028 08/31/11 Group 4 Architecture Research & Planning Architectural 19,560 October 25, 2011 Report 08/10/11 Group 4 Architecture Research & Planning Architectural 137 08/10/11 Group 4 Architecture Research & Planning Architectural 5,100 08/24/11 Turner Construction Company Construction Management Services 38,160 08/31/11 W.L. Butler Construction, Inc.Construction 137,659 09/14/11 Group 4 Architecture Research & Planning Architectural 2,550 09/14/11 Group 4 Architecture Research & Planning Architectural 1,116 12/07/11 Group 4 Architecture Research & Planning Architectural 5,100 10/19/11 Turner Construction Company Construction Management Services 1,176 12/21/11 Turner Construction Company Construction Management Services 3,806 January 18, 2012 11/09/11 Group 4 Architecture Research & Planning Architectural 1,146 12/07/11 W.L. Butler Construction, Inc.Construction 64,874 02/08/12 Group 4 Architecture Research & Planning Architectural 29 02/08/12 W.L. Butler Construction, Inc.Construction 22,796 02/22/12 Group 4 Architecture Research & Planning Architectural 8,408 March 28, 2012 Report 03/08/12 Group 4 Architecture Research & Planning Architectural 1,275 03/21/12 Group 4 Architecture Research & Planning Architectural 7 08/22/12 Group 4 Architecture Research & Planning Architectural 1,268 October 30, 2012 Report Downtown Library Activity Details (PE-09005) As of April 22, 2015 5 Payment or Posting Date Payee Description Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Downtown Library Activity Details (PE-09005) As of April 22, 2015 10/03/12 Group 4 Architecture Research & Planning Architectural 71 01/09/13 Turner Construction Company Construction Management Services 434 January 23, 2013 Report Group 4 Architecture Research Architectural 41,593 Moovers, Inc.Moving Services 2,778 Turner Construction Company Construction Management Services 97 Sub-total - Engineering and Architectural Costs - 3,617,992 44,467 (3,662,459) Contract Contingency Summary of Expenditures as of July 21, 2010 19,140 10/19/10 Group 4 Architecture Research & Planning Architectural 660 10/19/10 Group 4 Architecture Research & Planning Architectural 4,070 Oct. 21, 2010 Report 08/27/10 Asbestos Management Group Hazardous Material Testing 2,500 02/28/11 City of Palo Alto - Planning Plan Check Fee 93 April 26, 2011 Report 02/18/11 W. L. Butler Construction, Inc.Construction 15,686 04/25/11 W. L. Butler Construction, Inc.Construction 59,235 05/27/11 W. L. Butler Construction, Inc.Construction 163,149 07/01/11 Turner Construction Company Construction Management Services 1,123 July 26, 2011 Report 07/01/11 Turner Construction Company Construction Management Services 24,611 06/07/11 Group 4 Architecture Research & Planning Architectural 5,104 06/07/11 Group 4 Architecture Research & Planning Architectural 3,489 07/27/11 Group 4 Architecture Research & Planning Architectural 9,339 October 25, 2011 Report 08/31/11 W. L. Butler Construction, Inc.Construction 13,299 03/08/12 Group 4 Architecture Research & Planning Architectural 4,094 March 28, 2012 Report 02/08/12 W. L. Butler Construction, Inc.Construction 113,631 09/19/12 W. L. Butler Construction, Inc.Construction 10,000 October 30, 2012 Report 01/09/13 Turner Construction Company Construction Management Services 13,266 January 23, 2013 Report Sub-total - Contract Contingency - 462,490 - (462,490) Other Contract Services Summary of Expenditures as of July 21, 2010 2,225 08/27/10 Asbestos Management Group Hazardous Material Testing 25,700 Oct. 21, 2010 Report Sub-total - Other Contract Services - 27,925 - (27,925) City (Inter-department) Service Charge Summary of Expenditures as of July 21, 2010 43,990 07/13/11 City of Palo Alto - Public Works Parking Permit 230 October 25, 2011 Report 07/13/11 City of Palo Alto - Public Works Parking Permit 420 10/31/10 City of Palo Alto - Planning Plan Checking 861 Jan. 25, 2011 Report Sub-Total - City (Inter-department) Service Charge - 45,501 - (45,501) Miscellaneous Cost Summary of Expenditures as of July 21, 2010 3,158 04/10/11 Santa Clara County Downtown-Notice of Completion Filing Fee 5 January 18, 2012 Report Sub-total - Miscellaneous Cost - 3,163 - (3,163) Grant Total 4,212,000 4,157,071 44,467 10,462 6 Payment Date Payee Description Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Project Budget Original Budget (per Measure N Ballot Measure) 50,000,000$ Budget Change (2,274,563) Sub-total - 2010 Engineer's Budget Estimate 47,725,437 - - 47,725,437 Engineering, Architectural, Constr., and Publishing (Reproduction) Costs Summary of Expenditures as of July 21, 2010 3,101,748 08/03/10 Group 4 Architecture Research & Planning Architectural 37,609 08/10/10 Group 4 Architecture Research & Planning Architectural 18,595 10/05/10 Group 4 Architecture Research & Planning Architectural 7,522 10/05/10 Group 4 Architecture Research & Planning Architectural 13,942 10/05/10 Group 4 Architecture Research & Planning Architectural 2,971 07/27/10 Moovers, Inc. Moving Services 435 09/21/10 Turner Construction Company Construction Management Services 163,918 10/19/10 Group 4 Architecture Research & Planning Architectural 47,110 10/19/10 State Water Resources Control Board Submitting Permit Registration Documents 375 Oct. 21, 2010 Report 10/19/10 Group 4 Architecture Research & Planning Architectural 18,517 08/03/10 Peninsula Digital Imaging Reproduction Services 3,066 08/03/10 Peninsula Digital Imaging Reproduction Services 2,401 08/03/10 Peninsula Digital Imaging Reproduction Services 5,105 08/03/10 Peninsula Digital Imaging Reproduction Services 2,119 11/02/10 Bank of Sacramento - Flintco Pacific Escrow Construction 86,542 11/02/10 Flintco Pacific, Inc. Construction 778,876 11/02/10 Group 4 Architecture Research & Planning Architectural 1,037 12/07/10 Turner Construction Company Construction Management Services 635 12/07/10 Turner Construction Company Construction Management Services 70,780 12/07/10 Turner Construction Company Construction Management Services 64,319 12/07/10 Protech Consulting and Engineering Hazardous Material Testing 8,385 12/07/10 Peninsula Digital Imaging Reproduction Services 7,672 12/14/10 West Coast Code Consultants, Inc. Plan Check 26,820 12/14/10 Group 4 Architecture Research & Planning Architectural 46,200 Jan. 25, 2011 Report 12/21/10 Group 4 Architecture Research & Planning Architectural 46,297 12/21/10 Flintco Pacific, Inc. Construction 732,895 12/21/10 Flintco Pacific, Inc. Escrow 2841-042 Construction 81,433 12/28/10 Flintco Pacific, Inc. Construction 757,231 12/28/10 Flintco Pacific, Inc. Escrow 2841-042 Construction 84,137 01/04/11 Group 4 Architecture Research & Planning Architectural 2,942 01/04/11 Group 4 Architecture Research & Planning Architectural 4,564 01/04/11 Turner Construction Company Construction Management Services 73,919 1/21/2011 Group 4 Architecture Research & Planning Architectural 267 1/21/2011 Group 4 Architecture Research & Planning Architectural 46,261 1/21/2011 Turner Construction Company Construction Management Services 105,917 2/1/2011 Flintco Pacific, Inc.Construction 1,098,865 2/1/2011 Flintco Pacific, Inc. Escrow 2841-042 Construction 126,732 2/18/2011 Flintco Pacific, Inc.Construction 1,497,190 2/18/2011 Turner Construction Company Construction Management Services 94,502 2/18/2011 Flintco Pacific, Inc. Escrow 2841-042 Construction 193,977 2/24/2011 Group 4 Architecture Research & Planning Architectural 46,261 3/10/2011 West Coast Code Consultants, Inc.Plan Check 1,820 3/10/2011 West Coast Code Consultants, Inc.Plan Check 1,680 3/16/2011 West Coast Code Consultants, Inc.Plan Check (560) 3/16/2011 West Coast Code Consultants, Inc.Plan Check 560 April 26, 2011 Report 3/16/2011 Protech Consulting and Engineering Hazardous Material Testing 1,250 3/17/2011 West Coast Code Consultants, Inc.Plan Check 560 3/18/2011 Group 4 Architecture Research & Planning Architectural 46,261 3/31/2011 Flintco Pacific, Inc.Construction 446,177 3/31/2011 Flintco Pacific, Inc. Escrow 2841-042 Construction 76,548 3/31/2011 Turner Construction Company Construction Management Services 94,572 4/11/2011 Group 4 Architecture Research & Planning Architectural 4,219 4/11/2011 Group 4 Architecture Research & Planning Architectural 127 4/11/2011 Group 4 Architecture Research & Planning Architectural 7,366 4/11/2011 Group 4 Architecture Research & Planning Architectural 80,956 4/20/2011 West Coast Code Consultants, Inc.Plan Check 140 4/20/2011 West Coast Code Consultants, Inc.Plan Check 280 4/20/2011 West Coast Code Consultants, Inc.Plan Check 560 3/29/2011 Palo Alto Stores Supplies/Parts 1,342 4/25/2011 Flintco Pacific, Inc. Escrow 2841-042 Construction 85,140 4/25/2011 Flintco Pacific, Inc.Construction 766,263 4/26/2011 Group 4 Architecture Research & Planning Architectural 2,528 5/10/2011 Turner Construction Company Construction Management Services 82,594 5/12/2011 Group 4 Architecture Research & Planning Architectural 683 5/12/2011 Group 4 Architecture Research & Planning Architectural 80,956 5/17/2011 Turner Construction Company Construction Management Services 101,701 5/17/2011 Flintco Pacific, Inc.Construction 815,307 July 26, 2011 Report 5/17/2011 Flintco Pacific, Inc. Escrow 2841-042 Construction 93,874 5/17/2011 Flintco Pacific, Inc.Construction 29,559 7/1/2011 Turner Construction Company Construction Management Services 99,493 Mitchell Park Library and Community Center Activity Details (PE-09006) As of April 22, 2015 7 Payment Date Payee Description Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Mitchell Park Library and Community Center Activity Details (PE-09006) As of April 22, 2015 7/1/2011 Group 4 Architecture Research & Planning Architectural 19,540 7/1/2011 Group 4 Architecture Research & Planning Architectural 3,109 7/1/2011 Group 4 Architecture Research & Planning Architectural 17,038 7/1/2011 Group 4 Architecture Research & Planning Architectural 92,521 July 26, 2011 Report 7/1/2011 Group 4 Architecture Research & Planning Architectural 8,314 7/5/2011 Flintco Pacific, Inc. Escrow 2841-042 Construction 125,101 7/5/2011 Flintco Pacific, Inc.Construction 1,125,909 7/27/2011 Group 4 Architecture Research & Planning Architectural 57,826 7/27/2011 Group 4 Architecture Research & Planning Architectural 13,045 7/27/2011 Group 4 Architecture Research & Planning Architectural 1,954 7/27/2011 Flintco Pacific, Inc.Construction 2,316,525 7/27/2011 Flintco Inc. Escrow Construction 257,391 7/27/2011 Turner Construction Company Construction Management Services 127,367 October 25, 2011 Report 10/5/2011 Group 4 Architecture Research & Planning Architectural 1,898 10/5/2011 Group 4 Architecture Research & Planning Architectural 57,826 10/5/2011 Group 4 Architecture Research & Planning Architectural 1,647 10/5/2011 Flintco Pacific, Inc.Construction 483,144 10/5/2011 Flintco, Inc. Escrow Construction 53,683 10/19/2011 Turner Construction Company Construction Management Services 170,058 11/2/2011 Flintco Pacific, Inc.Construction 705,850 11/2/2011 Group 4 Architecture Research & Planning Architectural 57,826 11/2/2011 Group 4 Architecture Research & Planning Architectural 2,060 11/2/2011 Flintco Pacific, Inc.Construction 78,428 11/30/2011 West Coast Code Consultants, Inc.Plan Check 420 11/30/2011 West Coast Code Consultants, Inc.Plan Check 560 11/30/2011 West Coast Code Consultants, Inc.Plan Check 560 11/30/2011 Group 4 Architecture Research & Planning Architectural 2,051 11/30/2011 West Coast Code Consultants, Inc.Plan Check 700 January 18, 2012 Report 11/30/2011 Flintco Pacific, Inc.Construction 119,803 11/30/2011 Group 4 Architecture Research & Planning Architectural 1,722 11/30/2011 Group 4 Architecture Research & Planning Architectural 57,826 11/30/2011 Group 4 Architecture Research & Planning Architectural 4,789 11/30/2011 Flintco, Inc. Escrow Construction 837,115 *12/21/2011 Turner Construction Company Construction Management Services 187,775 12/21/2011 Turner Construction Company Construction Management Services 129,453 12/21/2011 Turner Construction Company Construction Management Services 233,061 12/21/2011 Turner Construction Company Construction Management Services 2,385 12/21/2011 Turner Construction Company Construction Management Services 109 12/21/2011 Group 4 Architecture Research & Planning Architectural 46,261 2/29/2012 West Coast Code Consultants, Inc.Plan Check 200 2/29/2012 Group 4 Architecture Research & Planning Architectural 1,600 3/21/2012 Group 4 Architecture Research & Planning Architectural 3,457 3/21/2012 Group 4 Architecture Research & Planning Architectural 19,603 2/1/2012 Flintco Pacific, Inc.Construction 940,940 2/1/2012 Flintco Pacific, Inc.Construction 104,549 2/1/2012 Group 4 Architecture Research & Planning Architectural 46,261 2/1/2012 Group 4 Architecture Research & Planning Architectural 654 March 28, 2012 Report 2/8/2012 Group 4 Architecture Research & Planning Architectural 6,417 2/24/2012 Turner Construction Company Construction Management Services 147,880 1/18/2012 Flintco Pacific, Inc.Construction 458,653 1/18/2012 Flintco Pacific, Inc.Construction 50,961 2/29/2012 Group 4 Architecture Research & Planning Architectural 46,261 3/21/2012 Flintco Pacific, Inc.Construction 722,810 3/21/2012 Flintco Pacific, Inc.Construction 80,312 3/21/2012 Group 4 Architecture Research & Planning Architectural 26,657 4/4/2012 Flintco Pacific, Inc.Construction 95,581 4/4/2012 Flintco Pacific, Inc. Escrow Construction 17,187 4/18/2012 Turner Construction Company Construction Management Services 129,709 4/18/2012 Turner Construction Company Construction Management Services 118,875 4/18/2012 Group 4 Architecture Research & Planning Architectural 2,100 4/18/2012 Group 4 Architecture Research & Planning Architectural 23,130 4/18/2012 Turner Construction Company Construction Management Services 120,219 5/9/2013 Sierra Traffic Markings Inc.Construction 7,990 5/9/2012 Group 4 Architecture Research & Planning Architectural 16,191 5/16/2012 Flintco Pacific, Inc.Construction 254,477 5/16/2012 Flintco Pacific, Inc. Escrow Construction 28,395 5/16/2012 Group 4 Architecture Research & Planning Architectural 2,069 5/16/2012 Group 4 Architecture Research & Planning Architectural 9,511 5/16/2012 Turner Construction Company Construction Management Services 116,415 6/20/2012 Group 4 Architecture Research & Planning Architectural 2,551 6/20/2012 Group 4 Architecture Research & Planning Architectural 16,191 July 5, 2012 Report 6/20/2012 Flintco Pacific, Inc.Construction 189,316 6/20/2012 Flintco Pacific, Inc. Escrow Construction 22,270 7/5/2012 West Coast Code Consultants, Inc.Plan Check 420 7/5/2012 West Coast Code Consultants, Inc.Plan Check 560 7/5/2012 West Coast Code Consultants, Inc.Plan Check 560 7/5/2012 West Coast Code Consultants, Inc.Plan Check 1,680 8 Payment Date Payee Description Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Mitchell Park Library and Community Center Activity Details (PE-09006) As of April 22, 2015 7/5/2012 West Coast Code Consultants, Inc.Plan Check 420 7/5/2012 West Coast Code Consultants, Inc.Plan Check 560 7/5/2012 West Coast Code Consultants, Inc.Plan Check 560 7/5/2012 West Coast Code Consultants, Inc.Plan Check 560 7/5/2012 West Coast Code Consultants, Inc.Plan Check 560 7/5/2012 West Coast Code Consultants, Inc.Plan Check 280 7/5/2012 West Coast Code Consultants, Inc.Plan Check 280 7/5/2012 Flintco Pacific, Inc. Escrow Construction 20,813 7/5/2012 Flintco Pacific, Inc.Construction 173,537 7/25/2012 Group 4 Architecture Research & Planning Architectural 762 7/25/2012 Group 4 Architecture Research & Planning Architectural 16,191 8/8/2012 Flintco Pacific, Inc.Construction 11,297 8/8/2012 Group 4 Architecture Research & Planning Architectural 16,191 October 30, 2012 Report 8/8/2012 Flintco Pacific, Inc.Construction 85,728 8/22/2012 Group 4 Architecture Research & Planning Architectural 280 9/26/2012 Group 4 Architecture Research & Planning Architectural 84,027 10/3/2012 Group 4 Architecture Research & Planning Architectural 16,191 10/10/2012 Turner Construction Company Construction 22,926 11/14/2012 Group 4 Architecture Research & Planning Architectural 20,325 11/19/2012 West Coast Code Consultants, Inc.Plan Check 350 11/19/2012 Flintco Pacific, Inc.Construction 383,239 11/19/2012 Flintco Pacific, Inc.Construction 88,321 11/19/2012 West Coast Code Consultants, Inc.Plan Check 420 12/12/2012 Flintco Pacific, Inc.Construction 608,951 12/12/2012 Flintco Pacific, Inc.Construction 81,614 12/12/2012 Flintco Pacific, Inc.Construction 505,497 12/12/2012 Flintco Pacific, Inc.Construction 96,133 12/19/2012 Group 4 Architecture Research & Planning Architectural 93,220 January 23, 2013 Report 12/19/2012 Group 4 Architecture Research & Planning Architectural 30,758 12/26/2012 Flintco Pacific, Inc.Construction 13,946 12/26/2012 Flintco Pacific, Inc.Construction 31,893 12/26/2012 Turner Construction Company Construction Management Services 270,207 12/26/2012 Turner Construction Company Construction Management Services 754,125 12/26/2012 Flintco Pacific, Inc.Construction 9,728 12/26/2012 Flintco Pacific, Inc.Construction 14,250 1/23/2013 West Coast Code Consultants, Inc.Plan Check 160 1/23/2013 West Coast Code Consultants, Inc.Plan Check 560 1/23/2013 Group 4 Architecture Research & Planning Architectural 626 1/23/2013 Group 4 Architecture Research & Planning Architectural 783 2/6/2013 Group 4 Architecture Research & Planning Architectural 68,238 2/20/2013 Group 4 Architecture Research & Planning Architectural 38,341 April 12, 2013 3/6/2013 Group 4 Architecture Research & Planning Architectural 2,775 4/3/2013 Group 4 Architecture Research & Planning Architectural 73,745 06/12/13 Flintco Pacific, Inc.Construction 59,916 06/12/13 Flintco Pacific, Inc.Construction 31,230 06/12/13 Flintco Pacific, Inc.Construction 27,261 06/12/13 Flintco Pacific, Inc.Construction 12,816 04/08/13 Flintco Pacific, Inc.Construction 249,800 04/08/13 Flintco Pacific, Inc.Construction 184,896 04/08/13 Flintco Pacific, Inc.Construction 29,765 05/03/13 Flintco Pacific, Inc.Construction 350,886 July 23, 2013 04/24/13 Group 4 Architecture Research & Planning Architectural 91,837 04/24/13 Group 4 Architecture Research & Planning Architectural 450 06/05/13 Group 4 Architecture Research & Planning Architectural 50,003 05/01/13 Ross McDonald Company, Inc.Construction Services 495,000 04/24/13 West Coast Code Consultants, Inc.Plan Check 320 06/17/13 Flintco Pacific, Inc.Construction 142,218 06/19/13 Flintco Pacific, Inc.Construction 27,637 06/26/13 Group 4 Architecture Research & Planning Architectural 73,498 07/17/13 Group 4 Architecture Research & Planning Architectural 46,031 07/19/13 Flintco Pacific, Inc.Construction 106,656 07/31/13 Flintco Pacific, Inc.Construction 34,269 08/07/13 Flintco Pacific, Inc.Construction 72,222 08/14/13 Group 4 Architecture Research & Planning Architectural 46,080 08/14/13 Flintco Pacific, Inc.Construction 8,025 Sept. 25, 2013 08/22/13 Flintco Pacific, Inc.Construction 500,976 08/28/13 Flintco Pacific, Inc.Construction 73,759 09/11/13 Group 4 Architecture Research & Planning Architectural 58,299 09/25/13 Turner Construction Company Construction Management Services 65,864 09/25/13 Sign & Services Company Construction Services 66,903 09/30/13 Flintco Pacific, Inc.Construction 564,671 10/02/13 Turner Construction Company Construction Management Services 450,004 10/02/13 Flintco Pacific, Inc.Construction 70,944 10/09/13 Group 4 Architecture Research & Planning Architectural 66,584 10/11/13 Flintco Pacific, Inc.Construction 580,658 10/30/13 Flintco Pacific, Inc.Construction 64,518 11/13/13 Moovers, Inc.Moving Services 2,280 December 24, 2013 9 Payment Date Payee Description Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Mitchell Park Library and Community Center Activity Details (PE-09006) As of April 22, 2015 11/13/13 Sign & Services Company Construction Services 94,813 11/20/13 Turner Construction Company Construction Management Services 143,602 12/05/13 Group 4 Architecture Research & Planning Architectural 54,193 12/11/13 Turner Construction Company Construction Management Services 158,901 12/11/13 Sign & Services Company Construction Services 76,096 12/18/13 Turner Construction Company Construction Management Services 134,322 12/18/13 Ross McDonald Company, Inc.Construction Services 47,705 12/23/13 Group 4 Architecture Research & Planning Architectural 47,490 02/26/14 Group 4 Architecture Research & Planning Architectural 44 01/22/14 Group 4 Architecture Research & Planning Architectural 4,556 02/26/14 Group 4 Architecture Research & Planning Architectural 674 02/26/14 Group 4 Architecture Research & Planning Architectural 37,815 04/02/14 Group 4 Architecture Research & Planning Architectural 19,826 01/22/14 Sign & Services Company Construction Services 106,141 April 16, 2014 02/26/14 Sign & Services Company Construction Services 57,626 02/12/14 Envision Ware, Inc.Professional services 19,365 02/12/14 Envision Ware, Inc.Professional services 422,298 04/02/14 Turner Construction Company Construction Management Services 136,132 04/02/14 Turner Construction Company Construction Management Services 143,257 04/02/14 Turner Construction Company Construction Management Services 102,807 01/29/14 Moovers, Inc.Moving Services 1,000 05/21/14 Moovers, Inc.Moving Services 580 03/05/14 Ross McDonald Company, Inc.Construction Services 54,891 03/31/14 Return of Flintco Escrow (Previously Expensed)(2,628,576) 05/14/14 Group 4 Architecture Research & Planning Architectural 12,284 05/21/14 Moovers, Inc.Moving Services 1,544 July 2, 2014 05/28/14 Turner Construction Company Construction Management Services 130,209 05/28/14 Turner Construction Company Construction Management Services 110,969 05/28/14 Muzak LLC Construction Services 100,317 05/23/14 Protech Consulting and Engineering Hazardous Material Testing 1,540 06/11/14 Group 4 Architecture Research & Planning Architectural 18,326 06/18/14 Turner Construction Company Construction Management Services 109,939 12/23/13 One Workplace L Ferrari Storage 7,010 03/31/14 Envision Ware, Inc.Sorter System 973 06/26/13 Group 4 Architecture Research & Planning Architectural 73,498 10/22/14 Moovers, Inc.Moving Services 213 10/22/14 Moovers, Inc.Moving Services 924 10/22/14 Moovers, Inc.Moving Services 14,463 10/22/14 Moovers, Inc.Moving Services 472 11/12/14 Turner Construction Company Construction Management Services 104,843 January 14, 2015 12/03/14 Group 4 Architecture Research & Planning Architectural 64,500 12/17/14 Turner Construction Company Construction Management Services 11,809 12/17/14 Turner Construction Company Construction Management Services 24,983 12/29/14 Flintco Pacific, Inc.Settlement agreement ($4 million less $100,000)3,900,000 03/18/15 Turner Construction Company Construction Management Services 1,576 12/18/15 Sign & Services Company Construction Services 19,242 12/18/15 Sign & Services Company Construction Services 23,098 April 22, 2015 03/18/15 Turner Construction Company Construction Management Services 26,867 02/25/15 Turner Construction Company Construction Management Services 28,964 11/25/14 Turner Construction Company Construction Management Services 105,599 03/20/15 Turner Construction Company Construction Management Services 491,145 Group 4 Architecture Research & Planning Architectural 58,315 Turner Construction Company Construction Management Services 558,944 Ross McDonald Company, Inc.Construction Services 115,816 West Coast Code Consultants, Inc.Plan Check 1,270 Moovers, Inc.Moving Services 1,935 Envision Ware, Inc.Sorter System 86 One Workplace L Ferrari Storage 52,990 BIG-D Pacific Builders, LP Construction 94,125 Sign & Services Company Construction Services 9,790 Contract Office Group, Inc.Storage 3,958 Muzak LLC Construction Services 49,171 Ginn and Crosby, LLC Legal Services 17,765 Project Controls and Forensics, LLC Legal Services 100,000 Riedinger Consulting Legal Services 12,673 David Neagley, AIA Legal Services 273,376 Sub-total - Engineering Costs - 36,633,816 1,350,212 (37,984,028) Contract Contingency Summary of Expenditures as of July 21, 2010 104,373 08/03/10 Group 4 Architecture Research & Planning Architectural 1,771 10/05/10 Group 4 Architecture Research & Planning Architectural 25,951 Jan. 25, 2011 Report 10/19/10 Group 4 Architecture Research & Planning Architectural 10,740 2/1/2011 Flintco Pacific, Inc.Construction 41,725 2/18/2011 Flintco Pacific, Inc.Construction 248,603 April 26, 2011 Report 3/31/2011 Flintco Pacific, Inc.Construction 242,754 10 Payment Date Payee Description Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Mitchell Park Library and Community Center Activity Details (PE-09006) As of April 22, 2015 8/31/2011 W. L. Butler Construction, Inc.Construction 22,713 8/24/2011 Flintco Pacific, Inc.Construction 987,123 8/24/2011 Turner Construction Company Construction Management Services 151,367 8/24/2011 Flintco Inc. Escrow Construction 117,936 8/24/2011 Group 4 Architecture Research & Planning Architectural 48,250 October 25, 2011 Report 8/24/2011 Group 4 Architecture Research & Planning Architectural 57,826 8/24/2011 Flintco Pacific, Inc.Construction 74,304 10/5/2011 Group 4 Architecture Research & Planning Architectural 37,306 11/30/2011 Group 4 Architecture Research & Planning Architectural 20,266 January 18, 2012 11/30/2011 Flintco Pacific, Inc.Construction 241,110 2/29/2012 West Coast Code Consultants, Inc.Plan Check 840 2/29/2012 West Coast Code Consultants, Inc.Plan Check 560 2/29/2012 West Coast Code Consultants, Inc.Plan Check 840 2/29/2012 West Coast Code Consultants, Inc.Plan Check 560 2/29/2012 West Coast Code Consultants, Inc.Plan Check 360 March 28, 2012 Report 3/8/2012 Group 4 Architecture Research & Planning Architectural 9,937 2/29/2012 Turner Construction Company Construction Management Services 39,360 3/21/2012 Flintco Pacific, Inc.Construction 104,819 3/21/2012 Flintco Pacific, Inc.Construction 11,647 4/18/2012 Turner Construction Company Construction Management Services 656 4/4/2012 Group 4 Architecture Research & Planning Architectural 91,383 5/23/2012 Group 4 Architecture Research & Planning Architectural 25,039 7/5/2012 Group 4 Architecture Research & Planning Architectural 12,871 4/4/2012 Flintco Pacific, Inc.Construction 59,097 July 5, 2012 Report 5/16/2012 Flintco Pacific, Inc.Construction 1,077 6/20/2012 Turner Construction Company Construction Management Services 137,683 6/20/2012 Flintco Pacific, Inc.Construction 11,109 7/5/2012 Flintco Pacific, Inc.Construction 13,783 7/11/2012 Group 4 Architecture Research & Planning Architectural 65,495 8/22/2012 Group 4 Architecture Research & Planning Architectural 80,924 8/8/2012 Flintco Pacific, Inc.Construction 15,943 October 30, 2012 Report 10/3/2012 Turner Construction Company Construction Management Services 298,983 10/31/2012 Group 4 Architecture Research & Planning Architectural 1,578 12/26/2012 Group 4 Architecture Research & Planning Architectural 3,053 11/19/2012 Flintco Pacific, Inc.Construction 411,653 12/12/2012 Flintco Pacific, Inc.Construction 125,571 January 23, 2013 Report 12/12/2012 Flintco Pacific, Inc.Construction 359,703 12/26/2012 Flintco Pacific, Inc.Construction 73,605 12/26/2012 Flintco Pacific, Inc.Construction 96,352 04/08/13 Flintco Pacific, Inc.Construction 60,449 04/08/13 Flintco Pacific, Inc.Construction 31,269 04/08/13 Flintco Pacific, Inc.Construction 85,582 July 23, 2013 05/03/13 Flintco Pacific, Inc.Construction 188,366 05/01/13 4LEAF, Inc.Building Inspection 6,993 05/08/13 4LEAF, Inc.Building Inspection 8,381 07/19/13 Flintco Pacific, Inc.Construction 201,760 08/22/13 Flintco Pacific, Inc.Construction 162,856 08/07/13 4LEAF, Inc.Building Inspection 13,764 Sept. 25, 2013 08/07/13 4LEAF, Inc.Building Inspection 14,708 08/07/13 4LEAF, Inc.Building Inspection 11,045 09/18/13 4LEAF, Inc.Building Inspection 16,706 6/14/2013 Flintco Pacific, Inc.Construction 106,512 9/25/2013 Sign & Services Company Construction Services 40,944 December 24, 2013 9/30/2013 Flintco Pacific, Inc.Construction 73,825 1/22/2014 Group 4 Architecture Research & Planning Architectural 34,885 4/2/2014 Group 4 Architecture Research & Planning Architectural 12,600 4/16/2014 Group 4 Architecture Research & Planning Architectural 19,893 April 16, 2014 2/5/2014 4LEAF, Inc.Building Inspection 14,930 3/5/2014 4LEAF, Inc.Building Inspection 12,654 3/26/2014 4LEAF, Inc.Building Inspection 999 41850 Group 4 Architecture Research & Planning Architectural 32,543 9/3/2014 Group 4 Architecture Research & Planning Architectural 43,002 9/3/2014 Group 4 Architecture Research & Planning Architectural 16,172 9/17/2014 Group 4 Architecture Research & Planning Architectural 14,330 8/13/2014 Moovers, Inc.Moving Services 2,110 7/16/2014 Muzak LLC Construction Services 29,763 9/17/2014 Muzak LLC Construction Services 42,741 October 8, 2014 7/30/2014 Turner Construction Company Construction Management Services 107,060 9/3/2014 Turner Construction Company Construction Management Services 101,438 9/24/2014 Turner Construction Company Construction Management Services 74,899 10/8/2014 Group 4 Architecture Research & Planning Architectural 14,340 7/23/2014 4LEAF, Inc.Building Inspection 5,994 9/14/2014 4LEAF, Inc.Building Inspection 3,618 10/22/2014 Moovers, Inc.Moving Services 4,797 January 14, 2015 12/10/2014 4LEAF, Inc.Building Inspection 910 April 22, 2015 Sub-total - Contract Contingency - 6,101,432 - (6,101,432) 11 Payment Date Payee Description Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Mitchell Park Library and Community Center Activity Details (PE-09006) As of April 22, 2015 Other Contract Services Summary of Expenditures as of July 21, 2010 93,750 07/01/11 FedEx Mailing 89 08/26/10 Bruce Beasley Sculpture 90,000 Oct. 21, 2010 Report 09/30/11 FedEx Coding Error Correction (89) October 25, 2011 Report 11/16/11 Jarvis, Fay, Doporto & Gibson, LLP Legal Services - Mitchell Park Library 3,776 12/21/11 ZFA Structural Engineers Mitchell Library Review 2,925 12/29/11 Jarvis, Fay, Doporto & Gibson, LLP Legal Services for Mitchell Park Library 11,170 January 18, 2012 Report 12/29/11 State Water Resource Board Permit 505 02/08/12 Riedinger Consulting Outside Counsel 9,136 01/25/12 ZFA Structural Engineers Mitchell Library Review 9,289 01/25/12 ZFA Structural Engineers Mitchell Library Review 3,118 02/29/12 Jarvis, Fay, Doporto & Gibson, LLP Legal Services for Mitchell Park Library 6,625 March 28, 2012 Report 02/29/12 Jarvis, Fay, Doporto & Gibson, LLP Legal Services for Mitchell Park Library 9,960 02/29/12 Jarvis, Fay, Doporto & Gibson, LLP Legal Services for Mitchell Park Library 10,423 03/14/12 Envision Ware, Inc.Professional services 5,850 04/04/12 ZFA Structural Engineers Mitchell Library Review 2,518 04/04/12 Riedinger Consulting Outside Counsel 28,371 04/04/12 Riedinger Consulting Outside Counsel 10,235 04/04/12 Riedinger Consulting Outside Counsel 24,585 05/09/12 Jam Services 3,897 July 5, 2012 Report 05/09/12 Jarvis, Fay, Doporto & Gibson, LLP Legal Services for Mitchell Park Library 6,647 05/09/12 Jarvis, Fay, Doporto & Gibson, LLP Legal Services for Mitchell Park Library 5,212 06/13/12 ZFA Structural Engineers Mitchell Library Review 1,732 06/20/12 Jarvis, Fay, Doporto & Gibson, LLP Legal Services for Mitchell Park Library 4,549 06/20/12 Blackstone Discovery Legal Services for Mitchell Park Library 319 08/15/12 Otis and Iriki, Inc.Legal Services for Mitchell Park Library 35,618 09/12/12 County of Santa Clara Mitchell Snack Bar - Environmental Health 220 October 30, 2012 Report 09/12/12 Otis and Iriki, Inc.Legal Services for Mitchell Park Library 30,348 09/05/12 Bruce Beasley Sculpture 1,900 10/24/12 Otis and Iriki, Inc.Legal Services for Mitchell Park Library 15,610 10/24/12 Otis and Iriki, Inc.Legal Services for Mitchell Park Library 38,608 10/24/12 Otis and Iriki, Inc.Legal Services for Mitchell Park Library 33,684 January 23, 2013 Report 10/24/12 Otis and Iriki, Inc.Legal Services for Mitchell Park Library 77,708 12/31/12 City of Palo Alto - Public Works Mitchell Park Library - Plan Review 12 03/26/14 3M Library Systems Library Self Check Stations 258 01/16/13 3M Library Systems Library Self Check Stations 80,578 3/20/2013 Bruce Beasley Sculpture 40,000 02/13/13 Ginn and Crosby, LLC Legal Services 1,272 02/13/13 Ginn and Crosby, LLC Legal Services 48 04/03/13 Moscone Emblidge Sater & Otis, LLP Legal Services 49,268 April 12, 2013 04/03/13 Moscone Emblidge Sater & Otis, LLP Legal Services 13,517 04/03/13 Moscone Emblidge Sater & Otis, LLP Legal Services 12,961 04/03/13 Moscone Emblidge Sater & Otis, LLP Legal Services 132,792 07/31/13 Ginn and Crosby, LLC Legal Services 2,688 07/31/13 Ginn and Crosby, LLC Legal Services 8,016 Sept. 25, 2013 10/30/13 Bruce Beasley Sculpture 50,000 December 24, 2013 02/05/14 Ginn and Crosby, LLC Legal Services 8,376 02/12/14 Ginn and Crosby, LLC Legal Services 7,111 April 16, 2014 03/26/14 Ginn and Crosby, LLC Legal Services 4,224 06/18/14 Ginn and Crosby, LLC Legal Services 1,248 06/18/14 Ginn and Crosby, LLC Legal Services 2,304 01/15/14 Ginn and Crosby, LLC Legal Services 14,952 02/26/14 National Construction Rentals Natl. Const. Rentals/Fencing&windscreen 2,317 03/05/14 United Site Services, Inc.Rental of Portable Toilets & Temporary Fencing 638 03/05/14 United Site Services, Inc.Rental of Portable Toilets & Temporary Fencing 635 July 2, 2014 03/12/14 United Site Services, Inc.Rental of Portable Toilets & Temporary Fencing 251 04/30/14 Ginn and Crosby, LLC Legal Services 1,044 06/18/14 Mobile Modular Management Corp.Rental of Trailers 759 06/18/14 Mobile Modular Management Corp.Rental of Trailers 759 06/18/14 Mobile Modular Management Corp.Rental of Trailers 759 12/23/13 One Workplace L Ferrari Additional Storage (Reduction in Exp. from prev. drawdown) (8,890) 7/23/2014 Ginn and Crosby, LLC Legal Services 1,169 07/16/14 Contract Office Group, Inc.Storage 600 07/16/14 Contract Office Group, Inc.Storage 600 October 8, 2014 08/27/14 Ginn and Crosby, LLC Legal Services 25,430 09/17/14 Ginn and Crosby, LLC Legal Services 32,279 08/15/14 National Construction Rentals Natl. Const. Rentals/Fencing&windscreen 416 11/24/14 BIG-D Pacific Builders, LP Fence reimbursement (3,341) 11/05/14 Ginn and Crosby, LLC Legal Services 23,691 11/19/14 Ginn and Crosby, LLC Legal Services 25,544 January 14, 2015 11/25/14 Envision Ware, Inc.Professional services 27,400 12/17/14 Ginn and Crosby, LLC Legal Services 7,272 02/18/15 Ginn and Crosby, LLC Legal Services 2,352 11/24/14 National Construction Rentals Natl. Const. Rentals/Fencing&windscreen 193 09/24/14 National Construction Rentals Natl. Const. Rentals/Fencing&windscreen 416 12/31/14 All Fence Company Inc.Fence 1,525 12 Payment Date Payee Description Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Mitchell Park Library and Community Center Activity Details (PE-09006) As of April 22, 2015 12/18/14 The Preferred Image Signs 2,291 02/11/15 Ginn and Crosby, LLC Legal Services 3,330 April 22, 2015 03/25/15 Envision Ware, Inc.Professional services 1,061 02/06/15 Orchard Supply Locks 35 02/06/15 Amazon.com Signs 42 01/26/15 Deposits In Trans WF Misc.59 10/20/14 Sunnyvale Windustrial Construction materials 1,427 02/04/15 Santa Clara County Completion Filing Fee 5 03/25/15 Envision Ware, Inc.Professional services 20,047 Sub-total - Other Contract Services - 1,180,025 - (1,180,025) City (Inter-department) Service Charge Summary of Expenditures as of July 21, 2010 176,008 09/30/10 City of Palo Alto - Planning Permit Fees - Mitchell Park Library - Bldg A 70,153 09/30/10 City of Palo Alto - Planning Permit Fees - Mitchell Park Teen Center - Bldg B 10,768 09/30/10 City of Palo Alto - Planning Permit Fees - Mitchell Park Multipurpose Center - Bldg C 21,184 Oct. 21, 2010 Report 09/30/10 City of Palo Alto - Planning Demolition Permit MPL - 3700 Middlefield 525 09/30/10 City of Palo Alto - Planning Demolition Permit MPCC - 3800 Middlefield 525 09/28/10 City of Palo Alto - Planning Permit (Grading and Fill)1,830 10/31/10 City of Palo Alto - Planning Revision permit for Mitchell Park Library & CC 141 11/16/10 City of Palo Alto - Planning Architectural Review Board Fees 2,090 Jan. 25, 2011 Report 01/31/11 Palo Alto Stores Supplies/Parts 101 03/31/11 Palo Alto Stores Supplies/Parts 97 03/31/11 Palo Alto Stores Supplies/Parts 4,045 April 26, 2011 Report 03/31/11 Palo Alto Stores Supplies/Parts 89 03/31/11 Palo Alto Stores Supplies/Parts 661 06/14/10 Palo Alto Stores Reversal of Prior Charges (2,834) 03/29/11 Palo Alto Stores Reversal of Prior Charges (628) 03/30/11 Palo Alto Stores Reversal of Prior Charges (571) July 26, 2011 Report 04/04/11 Palo Alto Stores Reversal of Prior Charges (143) 04/30/11 City of Palo Alto - Public Works Underground Fire Supply/Hydrant Permit Fee 1,335 07/06/11 City of Palo Alto - Development Center Plan Check Fee 93 07/06/11 City of Palo Alto - Planning Plan Check Fee 89 08/31/11 City of Palo Alto - Planning Plan Review - modify permit 133 08/31/11 City of Palo Alto - Planning Plan Review - modify permit 105 08/31/11 City of Palo Alto - Planning Plan Review - modify permit 137 08/31/11 City of Palo Alto - Planning Plan Review - modify permit 133 October 25, 2011 Report 08/31/11 City of Palo Alto - Planning Plan Review - modify permit 105 08/31/11 City of Palo Alto - Planning Plan Review - modify permit 121 08/31/11 City Of Palo Alto - Development Center Mitchell Library Plan Check 145 08/31/11 City Of Palo Alto - Development Center Mitchell Library Plan Check 277 08/31/11 City Of Palo Alto - Planning Mitchell Library Plan Check 40 09/30/11 City of Palo Alto - Planning Mitchell Library - Permit Revision 89 10/31/11 City of Palo Alto - Development Center Plan Check Fee 113 January 18, 2012 10/31/11 City of Palo Alto - Development Center Plan Check Fee 325 11/30/11 City of Palo Alto - Planning Plan Review - modify permit 97 11/30/11 City of Palo Alto - Planning Plan Review - modify permit 121 11/30/11 City of Palo Alto - Planning Plan Review - modify permit 121 11/30/11 City of Palo Alto - Planning Plan Review - modify permit 109 01/31/12 City of Palo Alto - Planning Plan Review - modify permit 85 01/31/12 City of Palo Alto - Planning Plan Review - modify permit 4,056 March 28, 2012 12/31/11 City of Palo Alto - Planning Plan Review - modify permit 93 12/21/11 City of Palo Alto - Planning Plan Review - modify permit 85 02/29/12 City of Palo Alto - Planning Plan Review - modify permit 89 02/29/12 City of Palo Alto - Planning Plan Review - modify permit 121 04/25/12 City of Palo Alto - Stores Inventory Conduit, Rgid Steel T/C 10Ft length 2"181 04/25/12 City of Palo Alto - Stores Inventory Pipes - Valves - Fitting 4 04/30/12 City of Palo Alto - Planning Plan Review (Electrical Veh. Chargers permit)977 05/16/12 City of Palo Alto - Planning Plan Review (Ceiling Structural Chgs.) - Mitchell 344 05/16/12 City of Palo Alto - Planning Plan Review (foundation, framing, plumbing) - Mitchell Park L 364 July 5, 2012 05/16/12 City of Palo Alto - Planning Plan Review (Solar Water Heater) - Mitchell Park Library 165 05/16/12 City of Palo Alto - Planning Plan Review - Mitchell Park Library 137 05/31/12 City of Palo Alto - Planning MP -Plan Review for electrical signage permit 112 06/28/12 City of Palo Alto - Planning Plan Review - Mitchell Park Library 105 06/29/12 City of Palo Alto - Planning Plan Review - Mitchell Park Library 105 06/29/12 City of Palo Alto - Planning Plan Review - Mitchell Park Library 300 06/29/12 City of Palo Alto - Planning Plan Review - Mitchell Park Library 151 October 30, 2012 09/14/12 City of Palo Alto - Planning Plan Review - Mitchell Park Library 89 09/14/12 City of Palo Alto - Planning Plan Review - Mitchell Park Library 137 11/30/12 City of Palo Alto - Public Works Mitchell Park Library - Plan Review 116 12/31/12 City of Palo Alto - Public Works Mitchell Park Library - Plan Review 7 January 23, 2013 Report 03/31/13 City of Palo Alto - Development Center Architectural Review 92 April 12, 2013 04/17/13 Ginn and Crosby, LLC Legal Services 225 04/17/13 Ginn and Crosby, LLC Legal Services 432 06/05/13 Ginn and Crosby, LLC Legal Services 144 06/05/13 Ginn and Crosby, LLC Legal Services 5,243 13 Payment Date Payee Description Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Mitchell Park Library and Community Center Activity Details (PE-09006) As of April 22, 2015 06/05/13 Javis, Fay, Doporto & Gibson, LLP Legal Services 16,570 July 23, 2013 06/05/13 Javis, Fay, Doporto & Gibson, LLP Legal Services 38 06/19/13 David Neagley, AIA Legal Services 1,624 01/30/14 Brad Oldham Internation, Inc.Install of Stainless Owls 49 01/30/14 Brad Oldham Internation, Inc.Install of Stainless Owls 565 July 2, 2014 Sub-total - City (Inter-department) Service Charge - 320,534 - (320,534) Miscellaneous Cost Summary of Expenditures as of July 21, 2010 3,315 06/30/10 Office Max (US Bank-Calcard) - Reversed Reverse office supplies charged to project (246) 06/30/10 Debra Jacobs Reverse prior travel and meeting expense (6) Oct. 21, 2010 Report 06/30/10 Karen Bengard Reverse prior travel and meeting expense (20) 06/30/10 Hung Nguyen Reverse prior travel and meeting expense (11) 06/30/10 Hung Nguyen Reverse prior travel and meeting expense (20) 03/30/11 Palo Alto Stores Supplies/Parts 4 April 26, 2011 Report 03/30/11 Palo Alto Stores Supplies/Parts 214 03/30/11 Palo Alto Stores Reversal of Prior Charges (4) 03/30/11 Palo Alto Stores Reversal of Prior Charges (214) July 26, 2011 Report 04/21/11 City of Palo Alto - Utilities Utility Connection Fee 68,559 02/15/12 Palo Alto Stores Supplies/Parts 4 02/15/12 Palo Alto Stores Supplies/Parts 176 March 28, 2012 Report 02/15/12 Palo Alto Stores Supplies/Parts 218 02/15/12 Palo Alto Stores Supplies/Parts 4 12/31/12 State Water Resources Control Board Submitting Permit Registration Documents 505 January 23, 2013 Report 02/06/13 4LEAF, Inc.Building Inspection 2,553 02/06/13 4LEAF, Inc.Building Inspection 8,769 April 12, 2013 03/13/13 4LEAF, Inc.Building Inspection 9,213 03/13/13 4LEAF, Inc.Building Inspection 10,656 08/21/13 4LEAF, Inc.Building Inspection 15,318 10/30/13 4LEAF, Inc.Building Inspection 9,713 12/05/13 4LEAF, Inc.Building Inspection 14,430 12/18/13 4LEAF, Inc.Building Inspection 14,708 10/16/13 Computerland of Silicon Valley Wi-Fi Connectivity (Wireless Access Points (WAPs) )25,615 December 24, 2013 11/26/13 CDW Government Uninterruptable Power Supplies for Computers 6,134 12/05/13 CDW Government Uninterruptable Power Supplies for Computers 301 12/18/13 State Water Resources Control Board Submitting Permit Registration Documents 664 11/06/13 Bibliotheca, Inc.Security Gates 12,375 04/23/14 4LEAF, Inc.Building Inspection 1,332 06/04/14 4LEAF, Inc.Building Inspection 1,887 July 2, 2014 07/31/14 City of Palo Alto - Stores Inventory Safety Vest 16 07/04/14 California Paint Company Special Filler for Wood Bridges 176 07/31/14 City of Palo Alto - Stores Inventory Safety Vest 76 October 8, 2014 07/31/14 City of Palo Alto - Stores Inventory Safety Vest 154 07/31/14 City of Palo Alto - Stores Inventory Safety Vest 63 07/31/14 City of Palo Alto - Stores Inventory Safety Vest 41 07/31/14 City of Palo Alto - Stores Inventory Safety Vest 19 04/15/15 Reconcilation Adjustment Adjustment (3,280) 11/06/13 Bibliotheca, Inc.Security Gates ($2,995 clerical error)- 03/31/13 Office Max (US Bank-Calcard) - Reversed Reversal of Bondable Expenditure (-$65 clerical error)- 10/16813 Ginn and Crosby, LLC Legal Services ($360 clerical error)- 10/09/14 Ginn and Crosby, LLC Legal Services ($288 clerical error)- 11/05/14 Ginn and Crosby, LLC Legal Services 3,145 10/22/14 Moovers, Inc.Moving Services 4,797 10/01/14 4LEAF, Inc.Building Inspection 5,200 January 14, 2015 10/29/14 4LEAF, Inc.Building Inspection 4,810 06/25/14 4LEAF, Inc.Building Inspection 3,219 Sub-total - Miscellaneous Cost - 224,578 - (224,578) Grant Total 47,725,437 44,460,384 1,350,212 1,914,840 14 Payment Date Purchasing Document Payee Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Project Budget Original Budget (per Measure N Ballot Measure) 18,000,000$ Budget Change 4,342,563 Sub-total - 2010 Engineer's Budget Estimate 22,342,563 - - 22,342,563 Engineering, Architectural, Constr., and Publishing (Reproduction) Costs 10/05/10 Group 4 Architecture Research and Planning Architectural 73,246 10/05/10 Group 4 Architecture Research and Planning Architectural 700 10/05/10 Group 4 Architecture Research and Planning Architectural 73,246 11/02/10 Group 4 Architecture Research and Planning Architectural 5,785 11/02/10 Group 4 Architecture Research and Planning Architectural 122,100 Jan. 25, 2011 Report 12/07/10 Group 4 Architecture Research and Planning Architectural 2,390 01/04/11 Group 4 Architecture Research and Planning Architectural 15,000 01/04/11 Group 4 Architecture Research and Planning Architectural 583 01/04/11 Group 4 Architecture Research and Planning Architectural 859 01/04/11 Turner Construction Company Construction Management Services 1,195 02/24/11 Group 4 Architecture Research and Planning Architectural 4,860 03/18/11 Group 4 Architecture Research and Planning Architectural 73,246 03/18/11 Group 4 Architecture Research and Planning Architectural 7,500 03/18/11 Group 4 Architecture Research and Planning Architectural 53 03/18/11 Group 4 Architecture Research and Planning Architectural 3,843 04/11/11 Group 4 Architecture Research and Planning Architectural 112,464 04/11/11 Group 4 Architecture Research and Planning Architectural 3,993 04/11/11 Group 4 Architecture Research and Planning Architectural 7,500 01/21/11 Group 4 Architecture Research and Planning Architectural 24,392 April 26, 2011 Report 01/21/11 Turner Construction Company Construction Management Services 1,434 01/21/11 Group 4 Architecture Research and Planning Architectural 2,500 01/24/11 Group 4 Architecture Research and Planning Architectural 1,500 01/21/11 Group 4 Architecture Research and Planning Architectural 447 02/18/11 Turner Construction Company Construction Management Services 478 02/18/11 Group 4 Architecture Research and Planning Architectural 48,831 02/18/11 Group 4 Architecture Research and Planning Architectural 2,653 02/18/11 Group 4 Architecture Research and Planning Architectural 3,238 05/12/11 Group 4 Architecture Research and Planning Architectural 6,250 05/12/11 Group 4 Architecture Research and Planning Architectural 40,052 05/12/11 Group 4 Architecture Research and Planning Architectural 12,411 05/12/11 Group 4 Architecture Research and Planning Architectural 3,263 05/17/11 Group 4 Architecture Research and Planning Architectural 4,553 July 26, 2011 Report 06/09/11 Group 4 Architecture Research and Planning Architectural 31,374 07/01/11 Turner Construction Company Construction Management Services 9,169 07/11/11 Group 4 Architecture Research and Planning Architectural 11,100 07/11/11 Group 4 Architecture Research and Planning Architectural 488 07/11/11 Group 4 Architecture Research and Planning Architectural 15,687 07/27/11 Group 4 Architecture Research and Planning Architectural 319 07/27/11 Group 4 Architecture Research and Planning Architectural 1,150 07/27/11 Group 4 Architecture Research and Planning Architectural 1,875 07/27/11 Turner Construction Company Construction Management Services 5,572 08/10/11 Group 4 Architecture Research and Planning Architectural 31,374 08/24/11 Turner Construction Company Construction Management Services 2,868 October 25, 2011 Report 08/31/11 Group 4 Architecture Research and Planning Architectural 117 08/31/11 Group 4 Architecture Research and Planning Architectural 175 08/31/11 Group 4 Architecture Research and Planning Architectural 248 09/14/11 Group 4 Architecture Research and Planning Architectural 67 09/14/11 Group 4 Architecture Research and Planning Architectural 600 09/14/11 Group 4 Architecture Research and Planning Architectural 39,218 10/26/11 Group 4 Architecture Research and Planning Architectural 5,000 10/26/11 Group 4 Architecture Research and Planning Architectural 235,308 10/26/11 Group 4 Architecture Research and Planning Architectural 878 10/26/11 Group 4 Architecture Research and Planning Architectural 5,000 10/26/11 Group 4 Architecture Research and Planning Architectural 291 10/26/11 Group 4 Architecture Research and Planning Architectural 27 11/02/11 Group 4 Architecture Research and Planning Architectural 78,436 11/02/11 Group 4 Architecture Research and Planning Architectural 7,500 11/22/11 Group 4 Architecture Research and Planning Architectural 8,514 12/07/11 Group 4 Architecture Research and Planning Architectural 62,749 January 18, 2012 Report 12/14/11 Group 4 Architecture Research and Planning Architectural 12,584 12/14/11 Group 4 Architecture Research and Planning Architectural 79,172 12/14/11 Group 4 Architecture Research and Planning Architectural 12,584 12/21/11 Protect Consulting and Engineering Hazardous Material Testing 3,530 12/21/11 Group 4 Architecture Research and Planning Architectural 3,052 01/11/12 Group 4 Architecture Research and Planning Architectural 225 01/11/12 Group 4 Architecture Research and Planning Architectural 9,761 01/11/12 Group 4 Architecture Research and Planning Architectural 70,592 01/11/12 Group 4 Architecture Research and Planning Architectural 150 01/11/12 Group 4 Architecture Research and Planning Architectural 247 02/22/12 Group 4 Architecture Research and Planning Architectural 10,000 02/22/12 Group 4 Architecture Research and Planning Architectural 62,749 02/22/12 Group 4 Architecture Research and Planning Architectural 8,676 Rinconada (aka Main) Library Activity Details (PE-11000) As of April 22, 2015 15 Payment Date Purchasing Document Payee Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Rinconada (aka Main) Library Activity Details (PE-11000) As of April 22, 2015 02/22/12 Group 4 Architecture Research and Planning Architectural 3,590 March 28, 2012 Report 03/21/12 Group 4 Architecture Research and Planning Architectural 1,330 03/21/12 Group 4 Architecture Research and Planning Architectural 5,423 03/21/12 Group 4 Architecture Research and Planning Architectural 39,218 02/22/12 BIG-D Pacific Builders, LP Construction 32,500 12/21/12 BIG-D Pacific Builders, LP Construction 36,960 04/04/12 Group 4 Architecture Research and Planning Architectural 18,925 04/18/12 Group 4 Architecture Research and Planning Architectural 1,500 04/18/12 Group 4 Architecture Research and Planning Architectural 19 04/18/12 Group 4 Architecture Research and Planning Architectural 9,784 05/16/12 Group 4 Architecture Research and Planning Architectural 3,278 July 5, 2012 Report 05/16/12 Group 4 Architecture Research and Planning Architectural 29,046 05/30/12 Group 4 Architecture Research and Planning Architectural 39,504 06/20/12 Group 4 Architecture Research and Planning Architectural 13,884 07/05/12 Group 4 Architecture Research and Planning Architectural 407 07/05/12 Group 4 Architecture Research and Planning Architectural 2,500 07/25/12 Group 4 Architecture Research and Planning Architectural 1,613 07/25/12 Group 4 Architecture Research and Planning Architectural 1,535 07/25/12 Group 4 Architecture Research and Planning Architectural 1,992 October 30, 2012 Report 09/05/12 Group 4 Architecture Research and Planning Architectural 7,551 09/26/12 Group 4 Architecture Research and Planning Architectural 5,996 10/31/12 Turner Construction Company Construction Management Services 7,444 11/19/12 Group 4 Architecture Research and Planning Architectural 2,097 11/19/12 Group 4 Architecture Research and Planning Architectural 5,423 11/19/12 Group 4 Architecture Research and Planning Architectural 8,000 11/19/12 Group 4 Architecture Research and Planning Architectural 270 11/19/12 Group 4 Architecture Research and Planning Architectural 2,097 10/31/12 Turner Construction Company Construction Management Services 10,000 January 23, 2013 Report 10/11/12 Fastsigns signs 389 01/09/13 NOVA Partners, Inc.Construction Management Services 19,320 01/23/13 Group 4 Architecture Research and Planning Architectural 2,500 01/23/13 Group 4 Architecture Research and Planning Architectural 969 01/23/13 Group 4 Architecture Research and Planning Architectural 4,979 01/23/13 Group 4 Architecture Research and Planning Architectural 725 01/23/13 NOVA Partners, Inc.Construction Management Services 12,010 02/06/13 Group 4 Architecture Research and Planning Architectural 3,243 02/27/13 West Coast Code Consultants, Inc.Plan Check 13,300 02/27/13 NOVA Partners, Inc.Construction Management Services 18,280 April 12, 2013 03/06/13 Group 4 Architecture Research and Planning Architectural 30,776 04/03/13 NOVA Partners, Inc.Construction Management Services 17,000 04/24/13 Group 4 Architecture Research and Planning Architectural 13 05/08/13 Group 4 Architecture Research and Planning Architectural 479 05/08/13 Group 4 Architecture Research and Planning Architectural 9,324 05/22/13 Group 4 Architecture Research and Planning Architectural 1,641 05/22/13 Group 4 Architecture Research and Planning Architectural 157 July 23, 2013 04/24/13 NOVA Partners, Inc.Construction Management Services 16,360 05/22/13 NOVA Partners, Inc.Construction Management Services 18,280 04/10/13 ARC Signs 71 05/01/13 ARC signs 210 06/19/13 Metropolitan Van and Storage, Inc.Equipment Moving 31,367 06/26/13 NOVA Partners, Inc.Construction Management Services 6,134 07/31/13 NOVA Partners, Inc.Construction Management Services 31,565 08/21/13 NOVA Partners, Inc.Construction Management Services 30,750 08/21/13 West Coast Code Consultants, Inc.Plan Check 1,185 Sept. 25, 2013 08/21/13 Group 4 Architecture Research and Planning Architectural 34 07/27/13 Group 4 Architecture Research and Planning Architectural 17,341 08/21/13 Group 4 Architecture Research and Planning Architectural 43,310 09/25/13 S.J. Amoroso Construction Construction 1,396,323 09/25/13 ARC Reproductive Services 52 10/02/13 NOVA Partners, Inc.Construction Management Services 35,578 10/16/13 Group 4 Architecture Research and Planning Architectural 86,670 10/23/13 NOVA Partners, Inc.Construction Management Services 38,025 10/30/13 S.J. Amoroso Construction Construction 771,030 December 24, 2013 11/20/13 NOVA Partners, Inc.Construction Management Services 37,554 12/05/13 Group 4 Architecture Research and Planning Architectural 43,360 12/11/13 S.J. Amoroso Construction Construction 1,204,872 12/18/13 NOVA Partners, Inc.Construction Management Services 41,811 12/23/13 S.J. Amoroso Construction Construction 876,464 01/29/14 NOVA Partners, Inc.Construction Management Services 42,311 02/26/14 NOVA Partners, Inc.Construction Management Services 34,852 03/26/14 NOVA Partners, Inc.Construction Management Services 30,855 04/16/14 West Coast Code Consultants, Inc.Plan Check 613 01/29/14 Protech Consulting and Engineering Hazardous Material Testing 22,580 01/29/14 S.J. Amoroso Construction Construction 857,070 03/05/14 S.J. Amoroso Construction Construction 1,098,894 April 16, 2014 04/02/14 S.J. Amoroso Construction Construction 1,045,937 01/29/14 Group 4 Architecture Research and Planning Architectural 43,360 02/26/14 Group 4 Architecture Research and Planning Architectural 43,360 01/29/14 Group 4 Architecture Research and Planning Architectural 43,360 16 Payment Date Purchasing Document Payee Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Rinconada (aka Main) Library Activity Details (PE-11000) As of April 22, 2015 04/02/14 Group 4 Architecture Research and Planning Architectural 188,020 04/16/14 Group 4 Architecture Research and Planning Architectural 43,350 03/26/14 ARC Reproduction Services 258 04/02/14 Envision Ware, Inc.Professional services 1,795 11/29/04 Envision Ware, Inc.Professional services ($47,731 deleted) 05/14/14 NOVA Partners, Inc.Construction Management Services 37,950 05/28/14 NOVA Partners, Inc.Construction Management Services 39,369 06/04/14 Group 4 Architecture Research and Planning Architectural 18,900 06/25/14 NOVA Partners, Inc.Construction Management Services 35,540 July 2, 2014 04/23/14 S.J. Amoroso Construction Construction 1,058,321 05/28/14 S.J. Amoroso Construction Construction 1,487,530 06/04/14 Group 4 Architecture Research and Planning Architectural 86,702 06/25/14 Group 4 Architecture Research and Planning Architectural 86,746 07/02/14 S.J. Amoroso Construction Construction 1,852,722 07/16/14 NOVA Partners, Inc.Construction Management Services 34,767 08/27/14 NOVA Partners, Inc.Construction Management Services 33,075 09/17/14 NOVA Partners, Inc.Construction Management Services 34,182 07/02/14 West Coast Code Consultants, Inc.Plan Check 1,203 08/13/14 Group 4 Architecture Research and Planning Architectural 39,700 07/30/14 PACIFIC GAS & ELECTRIC CO Survey 6,000 October 8, 2014 08/06/14 S.J. Amoroso Construction Construction 2,164,627 09/03/14 S.J. Amoroso Construction Construction 1,591,611 07/31/14 S.J. Amoroso Construction Construction 1,641,497 10/08/14 Group 4 Architecture Research and Planning Architectural 29,816 10/08/14 Group 4 Architecture Research and Planning Architectural 86,738 10/08/14 Group 4 Architecture Research and Planning Architectural 75,770 07/27/13 Group 4 Architecture Research and Planning Architectural 17,341 11/05/14 NOVA Partners, Inc.Construction Management Services 24,808 11/05/14 S.J. Amoroso Construction Construction 330,380 January 14, 2015 12/03/14 Group 4 Architecture Research and Planning Architectural 26,835 12/17/14 Group 4 Architecture Research and Planning Architectural 4,990 01/14/15 S.J Amoroso Contruction costs that are currently being funded by the Infrastructure Reserve (1,800,000) 02/04/15 NOVA Partners, Inc.Construction Management Services 1,566 01/28/15 NOVA Partners, Inc.Construction Management Services 1,600 02/25/15 NOVA Partners, Inc.Construction Management Services 13,485 April 22, 2015 03/04/15 S.J. Amoroso Construction Construction 31,481 01/28/15 S.J. Amoroso Construction Construction 140,321 Protech Consulting and Engineering Hazardous Material Testing 2,280 Group 4 Architecture Research and Planning Architectural 210,022 NOVA Partners, Inc. Construction Management Services 1,406 Turner Construction Company Construction Management Services 34,986 AT&T Engineering Professional services 6,298 Schaff & Wheeler Consulting Storm Water (Third Party 600 Ross McDonald Company, Inc. Construction Services 49,139 West Coast Code Consultants, Inc. Plan Check 1,600 Envision Ware, Inc. Professional services 2,405 3M Library Systems Library System 1,317 Metropolitan Van and Storage, Inc. Equipment Moving 14,032 S.J. Amoroso Construction Construction 989,855 Applied Materials / Engineering, Inc. Professional services 16,689 Sub-total - Engineering and Architectural Costs - 19,376,514 1,330,629 (20,707,143) Contract Contingency 05/27/11 Group 4 Architecture Research and Planning Architectural 22,152 July 26, 2011 Report 06/09/11 Group 4 Architecture Research and Planning Architectural 571 02/22/12 Group 4 Architecture Research and Planning Architectural 122 March 28, 2012 Report 11/19/12 Group 4 Architecture Research and Planning Architectural 124 January 23, 2013 Report 04/03/13 Group 4 Architecture Research and Planning Architectural 8,442 April 12, 2013 03/06/13 Group 4 Architecture Research and Planning Architectural 8,442 04/24/13 Group 4 Architecture Research and Planning Architectural 6,300 05/22/13 Group 4 Architecture Research and Planning Architectural 64,633 July 23, 2013 06/05/13 Group 4 Architecture Research and Planning Architectural 27,225 07/17/13 Group 4 Architecture Research and Planning Architectural 12,658 07/17/13 Group 4 Architecture Research and Planning Architectural 3,150 Sept. 25, 2013 08/21/13 Group 4 Architecture Research and Planning Architectural 9,900 08/21/13 Group 4 Architecture Research and Planning Architectural 9,900 06/21/13 NOVA Partners, Inc. Construction Management Services 9,480 December 24, 2013 04/16/14 Group 4 Architecture Research and Planning Architectural 15,750 April 16, 2014 04/23/14 S.J. Amoroso Construction Construction 16,461 July 2, 2014 07/02/14 West Coast Code Consultants, Inc. Plan Check 941 October 8, 2014 12/03/14 Group 4 Architecture Research and Planning Architectural 13,720 12/03/14 Group 4 Architecture Research and Planning Architectural 5,651 12/29/14 NOVA Partners, Inc. Construction Management Services 18,250 January 14, 2015 12/03/14 Group 4 Architecture Research and Planning Architectural 6,600 12/10/14 S.J. Amoroso Construction Construction 316,985 12/10/14 S.J. Amoroso Construction Construction 20,517 02/04/15 NOVA Partners, Inc. Construction Management Services 20 01/28/15 NOVA Partners, Inc. Construction Management Services 18,070 02/04/15 NOVA Partners, Inc. Construction Management Services 22,680 17 Payment Date Purchasing Document Payee Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Rinconada (aka Main) Library Activity Details (PE-11000) As of April 22, 2015 01/28/15 S.J. Amoroso Construction Construction 7,103 01/28/15 S.J. Amoroso Construction Construction 9,355 01/28/15 S.J. Amoroso Construction Construction 11,108 01/28/15 S.J. Amoroso Construction Construction 12,420 01/28/15 S.J. Amoroso Construction Construction 12,428 April 22, 2015 01/28/15 S.J. Amoroso Construction Construction 13,295 01/28/15 S.J. Amoroso Construction Construction 14,236 01/28/15 S.J. Amoroso Construction Construction 14,541 01/28/15 S.J. Amoroso Construction Construction 14,651 01/28/15 S.J. Amoroso Construction Construction 14,746 01/28/15 S.J. Amoroso Construction Construction 18,875 01/28/15 S.J. Amoroso Construction Construction 25,973 01/28/15 S.J. Amoroso Construction Construction 37,022 01/28/15 S.J. Amoroso Construction Construction 38,480 01/28/15 S.J. Amoroso Construction Construction 47,113 Sub-total - Contract Contingency - 930,090 - (930,090) Other Contract Services 12/05/12 Planet Orange Termite Inspection Fee 350 12/31/12 Fastsigns Sign 226 12/19/12 Creative Machines, Inc.Plans and Technical Drawings 52,000 12/19/12 Creative Machines, Inc.Plans and Technical Drawings 12,000 10/31/12 City of Palo Alto - Public Works Main Library Renovation - Plan Check Fee 115,654 12/06/12 City of Palo Alto - Development Center Architectural Review 2,678 January 23, 2013 Report 12/06/12 City of Palo Alto - Development Center Architectural Review 25 12/06/12 City of Palo Alto - Development Center Architectural Review 20 12/06/12 City of Palo Alto - Development Center Architectural Review 622 12/06/12 City of Palo Alto - Development Center Architectural Review 2,892 12/06/12 City of Palo Alto - Development Center Architectural Review 252 04/24/13 FedEx Mailing 111 04/24/13 FedEx Mailing 98 July 23, 2013 04/17/13 FedEx Mailing 111 06/30/13 Fastsigns Signs 1,423 07/31/13 Metropolitan Van and Storage, Inc.Equipment Moving 1,365 Sept. 25, 2013 08/21/13 Metropolitan Van and Storage, Inc.Equipment Moving 1,365 10/02/13 Metropolitan Van and Storage, Inc.Equipment Moving 1,365 10/09/13 Metropolitan Van and Storage, Inc.Equipment Moving 1,365 11/13/13 Metropolitan Van and Storage, Inc.Equipment Moving 500 December 24, 2013 11/20/13 Metropolitan Van and Storage, Inc.Equipment Moving 1,365 12/18/13 Metropolitan Van and Storage, Inc.Equipment Moving 1,665 04/02/14 Metropolitan Van and Storage, Inc.Equipment Moving 1,365 02/12/14 Metropolitan Van and Storage, Inc.Equipment Moving 1,365 April 16, 2014 04/02/14 Metropolitan Van and Storage, Inc.Equipment Moving 1,365 01/29/14 FedEx Mailing 47 05/15/14 Protech Consulting and Engineering Hazardous Material Testing 3,270 05/07/14 Creative Machines, Inc.Plans and Technical Drawings 13,000 06/11/14 Metropolitan Van and Storage, Inc.Equipment Moving 1,365 05/28/14 Metropolitan Van and Storage, Inc.Equipment Moving 1,365 July 2, 2014 05/21/14 Metropolitan Van and Storage, Inc.Equipment Moving 1,365 06/25/14 Metropolitan Van and Storage, Inc.Equipment Moving 800 07/02/14 AT&T Engineering and Construction 6,298 03/31/14 Envision Ware, Inc.Professional services 157 07/09/14 Applied Materials / Engineering, Inc.Professional services 110 07/09/14 Applied Materials / Engineering, Inc.Professional services 1,760 07/16/14 ARC Reproduction Services 71 08/06/14 Creative Machines, Inc.Plans and Technical Drawings 13,000 07/09/14 Chem Aqua Loop corrosion inhibitor chemical addition/water analysis 837 07/23/14 Metropolitan Van and Storage, Inc.Equipment Moving 1,365 08/13/14 Metropolitan Van and Storage, Inc.Equipment Moving 1,365 October 8, 2014 09/17/14 Metropolitan Van and Storage, Inc.Equipment Moving 1,365 10/08/14 Applied Materials / Engineering, Inc.Professional services 5,601 10/08/14 Metropolitan Van and Storage, Inc.Equipment Moving 1,365 07/11/14 City of Palo Alto Signage Review for ARB 698 07/22/14 City of Palo Alto Signage Review for ARB 2,918 11/12/14 Metropolitan Van and Storage, Inc.Equipment Moving 11,638 12/10/14 Metropolitan Van and Storage, Inc.Equipment Moving 450 12/17/14 Schaaf & Wheeler Consulting Storm Water 3 Party Review 2,500 January 14, 2015 10/22/14 Bibliotheca, Inc.Security Gates 18,800 10/31/14 Bibliotheca, Inc.Security Gates 1,645 02/24/15 Fastsigns Fastsigns 247 02/04/15 Metropolitan Van and Storage, Inc.Equipment Moving 195 02/04/15 Metropolitan Van and Storage, Inc.Equipment Moving 450 02/04/15 Metropolitan Van and Storage, Inc.Equipment Moving 1,220 02/04/15 Metropolitan Van and Storage, Inc.Equipment Moving 2,205 02/24/15 VKK Signmakers, Inc.Signs 3,472 April 22, 2015 03/25/15 Envision Ware, Inc.Professional services 26,650 11/24/14 Fastsigns Signs 245 03/25/15 3M Library Systems Library System 58,030 03/25/15 Envision Ware, Inc.Professional services 372,856 18 Payment Date Purchasing Document Payee Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Rinconada (aka Main) Library Activity Details (PE-11000) As of April 22, 2015 03/23/15 PolePal Lighting 1,080 Sub-total - Other Contract Services - 761,351 - (761,351) City (Inter-department) Service Charge 10/31/14 City of Palo Alto - Planning Review of sculpture signage and address sign 456 January 14, 2015 Sub-total - City (Inter-department) Service Charge - 456 - (456) Miscellaneous Cost 02/27/13 Fastsigns Signage 590 April 12, 2013 Sub-total - Miscellaneous Cost - 590 - (590) Grant Total 22,342,563 21,069,002 1,330,629 (57,067) 19 Payment Date Payee Description Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Project Budget Temporary Mitchell Park Library (Council Approved - CMR: 463:09) 645,000 Budget Change - gg Sub-total - 2010 Engineer's Budget Estimate 645,000 - - 645,000 Engineering, Architectural, Constr., and Publishing (Reproduction) Costs Summary of Expenditures as of July 21, 2010 439,283 10/05/10 Group 4 Architecture Research & Planning Architectural 5,774 Oct. 21, 2010 Report 08/24/10 Group 4 Architecture Research & Planning Architectural 329 01/27/11 Johnstone Moyer, Inc.Temp. Library Improvements 19,191 April 26, 2011 Report 11/12/14 Ross McDonald Company, Inc.Construction Services 3,200 January 14, 2015 Ross McDonald Company, Inc.Construction Services 3,540 Sub-total - Engineering and Architectural Costs - 467,777 3,540 (471,317) Contract Contingency Summary of Expenditures as of July 21, 2010 2,541 08/24/10 Johnstone Moyer, Inc.Temp. Library Improvements 24,604 Oct. 21, 2010 Report 08/27/10 West Corporation Temp. Lib. - Security Access Card & Alarm 310 01/27/11 Johnstone Moyer, Inc.Temp. Library Improvements 6,045 April 26, 2011 Report Sub-total - Contract Contingency - 33,500 - (33,500) City (Inter-department) Service Charge Summary of Expenditures as of July 21, 2010 11,247 March 28, 2012 Report Sub-total - City (Inter-department) Service Charge - 11,247 - (11,247) Miscellaneous Cost Summary of Expenditures as of July 21, 2010 125 March 28, 2012 Report Sub-total - Miscellaneous Cost - 125 - (125) Grant Total 645,000 512,648 3,540 128,812 Temporary Library at Cubberley (for Mitchell Facility) - Activity Details (PE-09010) As of April 22, 2015 20 Payment Date Payee Description Project Budget Expenses Commitments (aka Purchase Orders) Remaining Balance Project Budget Temporary Main Library Facility - Art Center Auditorium 500,000 Sub-total - 2010 Engineer's Budget Estimate 500,000 - - 500,000 Engineering, Architectural, Constr., and Publishing (Reproduction) Costs Summary of Expenditures as of July 21, 2010 - 04/04/12 Group 4 Architecture Research & Planning Architectural 15,687 July 5, 2012 Report 04/04/12 Group 4 Architecture Research & Planning Architectural 11,288 07/25/12 Group 4 Architecture Research & Planning Architectural 1,121 October 30, 2012 Report 06/15/76 Ross McDonald Company, Inc.Library Shelving 7,176 06/19/13 Big-D Pacific Builders, LP Construction Services 253,627 July 23, 2013 08/16/13 Big-D Pacific Builders, LP Construction Services 29,997 Sept. 25, 2013 02/11/15 Ross McDonald Company, Inc.Library Shelving 1,100 April 22, 2015 04/22/15 JCM Construction, Inc.Construction Services 9,950 Group 4 Architecture Research & Planning Architectural 2,960 Ross McDonald Company, Inc.Library Shelving 829 JCM Construction, Inc.Construction Services 995 Sub-total - Engineering and Architectural Costs - 329,946 4,783 (334,729) Contract Contingency Summary of Expenditures as of July 21, 2010 - 04/30/13 Fastsigns Signs 593 04/30/13 Metropolitan Van and Storage, Inc.Equipment Moving 380 04/30/13 Fastsigns Signs 598 July 23, 2013 04/30/13 Fastsigns Signs 41 05/31/13 Fastsigns (Reversal of Drawdown)Signs (138) January 14, 2015 Sub-total - Contract Contingency - 1,474 - (1,474) City (Inter-department) Service Charge Summary of Expenditures as of July 21, 2010 - 04/30/13 City of Palo Alto - Planning Architectural Review 384 04/30/13 City of Palo Alto - Development Center Architectural Review 216 July 23, 2013 05/31/13 City of Palo Alto _ Development Center Architectural Review 122,489 06/30/13 City of Palo Alto _ Development Center Architectural Review 636 Sept. 25, 2013 Sub-total - City (Inter-department) Service Charge - 123,725 - (123,725) Miscellaneous Cost Summary of Expenditures as of July 21, 2010 - Sub-total - Miscellaneous Cost - - - - Grant Total 500,000 455,145 4,783 40,072 Art Center Temporary Library - Activity Details (Project # PE-11012) As of April 22, 2015 21 City of Palo Alto (ID # 6240) Finance Committee Staff Report Report Type: Action Items Meeting Date: 11/3/2015 City of Palo Alto Page 1 Summary Title: Pension Liability: Options for the Future Title: Pension Liability: Discussion of Options for the Future From: City Manager Lead Department: Administrative Services Recommendation Staff recommends that the Finance Committee review and discuss options for reducing pension liabilities and for stabilizing future pension payments, and identify options for full Council consideration. Background Staff presented a report to Council at its September 9, 2015 Study Session, and John Bartel, the City’s actuary, made a presentation at that meeting regarding the City’s pension liability. After a brief discussion, the City Council referred the matter to the Finance Committee for further discussion and clarification of specific options to bring back to full Council. Please note that staff has made a few corrections to the September 9, 2015 staff report presented to Council. Those corrections are noted in Attachment A, an updated version of that report. Attachment B includes the original report and attachments presented on September 9th. Discussion As mentioned in the September 9th report, staff will present options and approaches to addressing the City’s pension liability for the Finance Committee’s consideration. There are two overall goals with regard to the pension liability: reducing the volatility of future pension rates and reducing the unfunded liability earlier than required by CalPERS. John Bartel will expand on the options mentioned at the September 9th Study Session during the November 3rd Finance Committee meeting. Next Steps The Finance Committee may identify and forward specific options, discussed at the November 3, 2015, Finance Committee meeting for Council consideration. City of Palo Alto Page 2 The pension liability has been the primary focus of recent discussions since it comprises the largest portion of the City’s unfunded liabilities. Going forward, the Retiree Medical liability will also be a topic for continued discussion by the Finance Committee and the City Council. Attachments:  Attachment A: September 9 CMR with Corrections (DOC)  Attachment B - September 9 2015 Staff Report #6074 (PDF) Attachment A City of Palo Alto (ID # 6074) City Council Staff Report Report Type: Study Session Meeting Date: 9/9/2015 City of Palo Alto Page 1 Summary Title: Pension Liabilities - Status and Options for Future Title: Pension Liability Issues: Status and Options for the Future WITH REVISIONS From: City Manager Lead Department: Administrative Services Introduction Long-term unfunded liabilities for employee pension and retiree medical continue to be the dominant issue in discussion of the City’s long-range financial planning. Therefore, as part of the acceptance of the Fiscal Year 2016 - 2025 General Fund Long Range Financial Forecast, the City Council referred to the Finance Committee a discussion for recommendations about means by which to address the City’s unfunded pension and retiree healthcare liabilities. This Study Session is the start of a conversation with this Council about the status of these liabilities, the expected future, and options for managing and/or reducing the liabilities with a focus on the Pension Liability. In future conversations, staff will address the Retiree Medical Liability as well. This report provides background for the presentation by John Bartel on September 9, and for the discussion that evening and beyond. Background and Discussion I. Pension Benefit Tiers The City of Palo Alto provides a defined pension benefit to its employees and participates in the California Public Employees’ Retirement System (CalPERS) to manage and administer the program. City employees vest in the program after five years of service and over time the City has offered different pension payout formulas, and recently, a legislated State pension reform created two additional formulas offered by the City for all new CalPERS members hired on or after January 1, 2013. The City has six different pension formulas, or tiers: three for Miscellaneous (non-safety) employees and three for Safety employees. Tier 1 formulas apply to Miscellaneous employees hired before July 2010 and to Safety employees hired before June 2012. Tier 2 formulas were implemented in 2010, when it had become clear that the severe market losses would result in increasing benefit rates and City of Palo Alto Page 2 necessitate benefit reductions. As a result, the City negotiated lower retirement formulas with all bargaining units in the City. The following tables show the first two tiers and the years they were effective for each bargaining unit: Pension Formulas and Employee Contributions by Employee Unit Miscellaneous Employee Unit Service Employees International Union Management and Professional Group Utilities Management and Professionals Formula 2.7%@55 2%@60 2.7%@55 2%@60 2.7%@55 2%@60 Effective Year 2007 2010 2007 2010 2007 2010 Employee Contribution Amount 8% 7% 8% 7% 8% 7% Safety Employee Unit Police Officers Association Police Mgmt. Association International Assoc. of Fire Fighters Fire Chief Association Formula 3%@50 3%@55 3%@50 3%@55 3%@50 3%@55 3%@50 3%@55 Effective Year 2002 2012 2002 2012 2001 2012 2001 2012 Employee Contribution Amount 9% 9% 9% 9% 9% 9% 5.1% 5.1% The California Public Employees’ Pension Reform Act of 2013 (PEPRA) mandated a third tier pension formula of 2% @ 62 for Miscellaneous and 2.7% at 57 for Safety, effective January 1, 2013. This change provides the lower benefit for those hired and who are new to CalPERS on or after January 1, 2013. The following table shows the employee count in each of the tiers as of June 1, 2015. As of that date, 28 percent of the City’s full-time employees were enrolled in Tier 2 and Tier 3 plans. However, a higher percentage of Miscellaneous employees – 31 percent – are enrolled in Tier 2 and 3 plans compared to Safety – at 15 percent. Correspondingly, about 30 percent of Miscellaneous payroll and 12 percent of Safety payroll is in Tier 2 and 3 plans. City of Palo Alto Page 3 Source: CMR #5946, Report to Finance Committee: 3rd Quarter FY 2015 Financial Report, August 18, 2015 II. Unfunded Liability As of June 30, 2013, the most recent date of CalPERS’s actuarial valuations, the City’s unfunded pension liabilities totaled $296 million - $190 million for Miscellaneous and $105 million for Safety. (See Attachments A and B: CalPERS Actuarial Valuations for Miscellaneous and Safety Pension effective June 30, 2013, page 17.) City of Palo Alto Page 4 Staff estimates that approximately 47 percent1 of the $105 million Miscellaneous unfunded liability – or $49 million - is associated with the General Fund, plus the entire $190 million for Safety – totaling $239 million. According to Bartel Associates, the City’s actuary, the primary reason for the City’s unfunded pension liabilities are the two market downturns during the last 15 years. Below, Bartel Associates’ chart of CalPERS portfolio returns over time shows the impact of the two market downturn periods on CalPERS investments. The following chart, also prepared by Bartel Associates, shows the trend in the City’s Miscellaneous pension liability funded status since 1994. 1 Based on General Fund PERSable payroll as a percentage of Citywide PERSable payroll. City of Palo Alto Page 5 One can see that the growth in the unfunded portion - the negative gap between the green and red bars – appears at first in 2003 and remains until 2007, then reappears in 2008 with more dramatic growth in 2009, coinciding with the market downturns. Note that the increased pension benefit went into effect in 2007. The following chart, also prepared by Bartel Associates, shows the trend in the City’s Safety pension liability funded status since 1994. City of Palo Alto Page 6 Similarly, in the chart above, the unfunded gap begins in 2002 and remains until 2007, reappearing in 2008 and more dramatically in 2009, with the market downturn. However, it is important to note that the Safety benefit increase became effective in 2001. The notable increases in unfunded liability are most pronounced after the 2003 and 2008 market downturns, not after the benefit increases. Mr. Bartel has estimated that more than two-thirds of the City’s decline in the funded ratio was caused by the market downturn, and less than one-third due to the increase in benefits. He will explain his analysis of the City’s unfunded liability trends. An additional characteristic of Palo Alto’s pension liability is the distribution among active employees and current retirees. In the Miscellaneous group, in about 2009, the portion of the actuarial liability attributable to current retirees became larger than the portion for active employees, as documented in the slide below, also prepared by Bartel Associates. City of Palo Alto Page 7 Note: VT=Voluntary Terminations For the Safety group, which has earlier retirement ages, the current retirees exceeded the active employees in their pension liability from the beginning of the chart period in 1997, but the gap became larger after 2010. City of Palo Alto Page 8 Note: VT=Voluntary Terminations The implications of the growing impact of the current retirees on the City’s pension contributions are that reducing current FTEs will not address the unfunded liability or reduce rates in the near term. The unfunded liability would remain even with no current active employees. By extension, the new lower tiers (2 and 3) also will not decrease our current unfunded liability. Rather, they will decrease the future liability accrued for their benefits, and decrease future volatility in the City’s contribution rates in the long term. III. Additional Characteristics of Pension Liability The following two charts, also prepared by Bartel Associates, summarize demographic information for active employees and retirees in both Miscellaneous and Safety groups. Among the more notable details include: 1. The trend in the number of active employees over time - in the Miscellaneous group the number increased 17 percent between 1994 and 2003, but decreased 11 percent in the next ten years; Safety numbers increased only 2.5 percent between 1994 and 2003 and decreased 12 percent over the next ten years. 2. Average service retirement benefit over time – for Miscellaneous this average increased 86 percent over the ten years from 2003 to 2013; for Safety the increase was 63 percent. City of Palo Alto Page 9 City of Palo Alto Page 10 IV. CalPERS Policy Changes In April 2013, the CalPERS Board approved changes to its amortization and smoothing policies. Previously CalPERS had spread investment returns over a 15-year period, while investment gains and losses were amortized over a rolling 30-year period. Effective with the most recent valuation (June 30, 2013) CalPERS will employ an amortization and smoothing policy that spreads rate increases or decreases over a 5-year period, and amortizes all investment gains and losses over a fixed 30-year period. In February 2014, CalPERS adopted asset allocation changes that will reduce the expected volatility of returns. In addition, the Board also changed some demographic assumptions, notably increasing life expectancy for retirees based on recent experience and anticipating future life expectancy increases consistent with recently updated Actuarial Standards of Practice. The demographic assumption changes will be reflected in this fall’s actuarial valuations – impacting FY 2016-17 contribution rates, and increasing liabilities. The liability increases will be amortized over a 20-year period with a 5-year ramp-up. These policy changes have contributed to the City’s projected contribution rate increases in the coming years. City of Palo Alto Page 11 V. Projected City Contribution Rates and Unfunded Liability Levels The City has already experienced significant pension rate increases in the last five years. In 2011 the Miscellaneous contribution rate was 17.6% and Safety’s was 24.7%. In the current (FY 16) year the rate for Miscellaneous is 27.7%, and Safety’s is 41.9%. Bartel Associates projects additional contribution rate increases as follows over the next ten years, given different investment return assumptions. City of Palo Alto Page 12 Over the last five years, the City’s funded ratio - the ratio of funded to total liability – dropped from 86.9% to 68.4% for Miscellaneous and from 90.8% to 68.9% for Safety.2 (See Attachments A and B, page 22 in each.) Yet a third concern for the City, given the changes in CalPERS rate smoothing policies, is future volatility of the CalPERS investment returns. As CalPERS experiences gains and losses in its portfolio, the City’s contribution rates may increase at unpredictably and irregular rates, compromising the City’s ability to plan and budget for its financial obligations. John Bartel will discuss this concern in greater depth in his presentation. In summary, the changes in CalPERS assumptions and investment policy, along with demographic changes in our employees and retirees and the dramatically different investment market environment have created a growing unfunded liability for the City. The following section discusses some options for (a) decreasing the unfunded portion of the liabilities and (b) mitigating the volatility created by market gains and losses in the CalPERS portfolio. 2 Note that the 5-year span from 6/30/08 to 6/30/13 is the actuarial valuation term that determines the rates for the 5-year span from FY 11 to FY 16. City of Palo Alto Page 13 Strategies to Consider I. Strategies for Decreasing the Unfunded Liability Just as with a 30-year mortgage, the City’s annual contribution rate includes an amortized pay- down of its unfunded liability, including current and projected interest on that unfunded liability. To the extent the City can pay down the unfunded liability ahead of schedule, it can save on future interest expense. There are a variety of approaches with which to pursue this. The City could pay an annual amount in excess of the CalPERS-required annual required contribution, or it could contribute periodically, for instance, if and when it experiences budget savings or revenue surpluses at the end of a fiscal year. The amount that it contributes could be paid either directly to CalPERS, or into an irrevocable trust, known as a Section 115 Trust. This type of trust is currently offered by Public Agency Retirement Services (PARS) and by the PFM Group (PFM). Implications of each approach are discussed below. II. Strategies for Decreasing Volatility Please see Attachment C, slides E-19 to E-21 and slides E-30 to E-32 for an illustration of the impact of volatility on both the City’s contribution rates and on the funded ratio. Contributing money to a separately managed 115 trust would be a more effective way to reduce volatility than paying additional funds directly to CalPERS. On the flip side, CalPERS would likely invest the funds more aggressively and potentially attain a higher investment return than would the 115 fund managers. The City would effectively trade off anticipated higher returns for the stabilizing effects of a separate trust. III. Timing of Contributions As mentioned above, the City could contribute money above and beyond its annual required contribution as it experiences budget savings or revenue surpluses (such as in FY 2015) and/or on a planned annual basis as part of the budget. The projected effects of contributing an additional $1 million per year are shown in Bartel’s slides E-33 to E-36 in Attachment C. With $1 million per year additional contributions starting in FY 2016 and continuing through FY 2025 (ten years), Miscellaneous required contribution rates will have decreased by 1.2 percent and unfunded liability decreased by $9 million. For Safety the required contribution rates decrease 2.9 percent by year 10, and unfunded liability drops by $10 million. Staff recommends exploring a dual approach, using both annual contributions to a 115 trust – to reduce future rate volatility - and periodic additional contributions to CalPERS to reduce the amortized payments towards the unfunded liability. City of Palo Alto Page 14 Next Steps and Timeline Staff is aware that City Council has received a significant amount of information and that further discussion will be necessary. There are several options Council may wish to pursue, including referring a subset or all of the topics discussed above to the Finance Committee, or asking staff to return to the full Council will additional information. In the coming weeks staff will work on developing a more specific set of options, including recommended funding levels, and analyzing the impact to the Long Range Financial Forecast of increased annual contributions above and beyond the annual required CalPERS contribution. Attachments:  Attachment A: Miscellaneous Plan Annual Valuation Report as of June 30 2013 (PDF)  Attachment B: Safety Plan Annual Valuation Report as of June 30 2013.pdf (PDF)  Attachment C: Bartel & Associates Appendices (PDF)  Attachment D: CMR #3275, January 22 2013 re: Pension Obligations (PDF) City of Palo Alto (ID # 6074) City Council Staff Report Report Type: Study Session Meeting Date: 9/9/2015 City of Palo Alto Page 1 Summary Title: Pension Liabilities - Status and Options for Future Title: Pension Liability Issues: Status and Options for the Future From: City Manager Lead Department: Administrative Services Introduction Long-term unfunded liabilities for employee pension and retiree medical continue to be the dominant issue in discussion of the City’s long-range financial planning. Therefore, as part of the acceptance of the Fiscal Year 2016 - 2025 General Fund Long Range Financial Forecast, the City Council referred to the Finance Committee a discussion for recommendations about means by which to address the City’s unfunded pension and retiree healthcare liabilities. This Study Session is the start of a conversation with this Council about the status of these liabilities, the expected future, and options for managing and/or reducing the liabilities with a focus on the Pension Liability. In future conversations, staff will address the Retiree Medical Liability as well. This report provides background for the presentation by John Bartel on September 9, and for the discussion that evening and beyond. Background and Discussion I. Pension Benefit Tiers The City of Palo Alto provides a defined pension benefit to its employees and participates in the California Public Employees’ Retirement System (CalPERS) to manage and administer the program. City employees vest in the program after five years of service and over time the City has offered different pension payout formulas, and recently, a legislated State pension reform created two additional formulas offered by the City for all new CalPERS members hired on or after January 1, 2013. The City has six different pension formulas, or tiers: three for Miscellaneous (non-safety) employees and three for Safety employees. Tier 1 formulas apply to Miscellaneous employees hired before July 2010 and to Safety employees hired before June 2012. Tier 2 formulas were implemented in 2010, when it had become clear that the severe market losses would result in increasing benefit rates and necessitate benefit reductions. As a result, the City negotiated lower retirement formulas with City of Palo Alto Page 2 all bargaining units in the City. The following tables show the first two tiers and the years they were effective for each bargaining unit: Pension Formulas and Employee Contributions by Employee Unit Miscellaneous Employee Unit Service Employees International Union Management and Professional Group Utilities Management and Professionals Formula 2.7%@55 2%@60 2.7%@55 2%@60 2.7%@55 2%@60 Effective Year 2007 2010 2007 2010 2007 2010 Employee Contribution Amount 8% 7% 8% 7% 8% 7% Safety Employee Unit Police Officers Association Police Mgmt. Association International Assoc. of Fire Fighters Fire Chief Association Formula 3%@50 3%@55 3%@50 3%@55 3%@50 3%@55 3%@50 3%@55 Effective Year 2002 2012 2002 2012 2001 2012 2001 2012 Employee Contribution Amount 9% 9% 9% 9% 9% 9% 5.1% 5.1% The California Public Employees’ Pension Reform Act of 2013 (PEPRA) mandated a third tier pension formula of 2% @ 62 for Miscellaneous and 2.7% at 57 for Safety, effective January 1, 2013. This change provides the lower benefit for those hired and who are new to CalPERS on or after January 1, 2013. The following table shows the employee count in each of the tiers as of June 1, 2015. As of that date, 28 percent of the City’s full-time employees were enrolled in Tier 2 and Tier 3 plans. However, a higher percentage of Miscellaneous employees – 31 percent – are enrolled in Tier 2 and 3 plans compared to Safety – at 15 percent. Correspondingly, about 29 percent of Miscellaneous payroll and 7 percent of Safety payroll is in Tier 2 and 3 plans. City of Palo Alto Page 3 Source: CMR #5946, Report to Finance Committee: 3rd Quarter FY 2015 Financial Report, August 18, 2015 II. Unfunded Liability As of June 30, 2013, the most recent date of CalPERS’s actuarial valuations, the City’s unfunded pension liabilities totaled $296 million - $105 million for Miscellaneous and $190 million for Safety. (See Attachments A and B: CalPERS Actuarial Valuations for Miscellaneous and Safety Pension effective June 30, 2013.) City of Palo Alto Page 4 Staff estimates that approximately 47 percent of the $105 million Miscellaneous unfunded liability – or $49 million - is associated with the General Fund, plus the entire $190 million for Safety – totaling $239 million. According to Bartel Associates, the City’s actuary, the primary reason for the City’s unfunded pension liabilities are the two market downturns during the last 15 years. Below, Bartel Associates’ chart of CalPERS portfolio returns over time shows the impact of the two market downturn periods on CalPERS investments. The following chart, also prepared by Bartel Associates, shows the trend in the City’s Miscellaneous pension liability funded status since 1994. City of Palo Alto Page 5 One can see that the growth in the unfunded portion - the negative gap between the green and red bars – appears at first in 2003 and remains until 2007, then reappears in 2008 with more dramatic growth in 2009, coinciding with the market downturns. Note that the increased pension benefit went into effect in 2007. The following chart, also prepared by Bartel Associates, shows the trend in the City’s Safety pension liability funded status since 1994. City of Palo Alto Page 6 Similarly, in the chart above, the unfunded gap begins in 2002 and remains until 2007, reappearing in 2008 and more dramatically in 2009, with the market downturn. However, it is important to note that the Safety benefit increase became effective in 2001. The notable increases in unfunded liability are most pronounced after the 2003 and 2008 market downturns, not after the benefit increases. Mr. Bartel has estimated that more than two-thirds of the City’s decline in the funded ratio was caused by the market downturn, and less than one-third due to the increase in benefits. He will explain his analysis of the City’s unfunded liability trends. An additional characteristic of Palo Alto’s pension liability is the distribution among active employees and current retirees. In the Miscellaneous group, in about 2009, the portion of the actuarial liability attributable to current retirees became larger than the portion for active employees, as documented in the slide below, also prepared by Bartel Associates. City of Palo Alto Page 7 Note: VT=Voluntary Terminations For the Safety group, which has earlier retirement ages, the current retirees exceeded the active employees in their pension liability from the beginning of the chart period in 1997, but the gap became larger after 2010. City of Palo Alto Page 8 Note: VT=Voluntary Terminations The implications of the growing impact of the current retirees on the City’s pension contributions are that reducing current FTEs will not address the unfunded liability or reduce rates in the near term. The unfunded liability would remain even with no current active employees. By extension, the new lower tiers (2 and 3) also will not decrease our current unfunded liability. Rather, they will decrease the future liability accrued for their benefits, and decrease future volatility in the City’s contribution rates in the long term. III. Additional Characteristics of Pension Liability The following two charts, also prepared by Bartel Associates, summarize demographic information for active employees and retirees in both Miscellaneous and Safety groups. Among the more notable details include: 1. The trend in the number of active employees over time - in the Miscellaneous group the number increased 17 percent between 1994 and 2003, but decreased 11 percent in the next ten years; Safety numbers increased only 2.5 percent between 1994 and 2003 and decreased 14 percent over the next ten years. 2. Average service retirement benefit over time – for Miscellaneous this average increased 86 percent over the ten years from 2003 to 2013; for Safety the increase was 63 percent. City of Palo Alto Page 9 City of Palo Alto Page 10 IV. CalPERS Policy Changes In April 2013, the CalPERS Board approved changes to its amortization and smoothing policies. Previously CalPERS had spread investment returns over a 15-year period, while investment gains and losses were amortized over a rolling 30-year period. Effective with the most recent valuation (June 30, 2013) CalPERS will employ an amortization and smoothing policy that spreads rate increases or decreases over a 5-year period, and amortizes all investment gains and losses over a fixed 30-year period. In February 2014, CalPERS adopted asset allocation changes that will reduce the expected volatility of returns. In addition, the Board also changed some demographic assumptions, notably increasing life expectancy for retirees based on recent experience and anticipating future life expectancy increases consistent with recently updated Actuarial Standards of Practice. The demographic assumption changes will be reflected in this fall’s actuarial valuations – impacting FY 2016-17 contribution rates, and increasing liabilities. The liability increases will be amortized over a 20-year period with a 5-year ramp-up. These policy changes have contributed to the City’s projected contribution rate increases in the coming years. City of Palo Alto Page 11 V. Projected City Contribution Rates and Unfunded Liability Levels The City has already experienced significant pension rate increases in the last five years. In 2011 the Miscellaneous contribution rate was 17.6% and Safety’s was 24.7%. In the current (FY 16) year the rate for Miscellaneous is 27.7%, and Safety’s is 41.9%. Bartel Associates projects additional contribution rate increases as follows over the next ten years, given different investment return assumptions. City of Palo Alto Page 12 Over the last five years, the City’s funded ratio - the ratio of funded to total liability – dropped from 86.9% to 68.4% for Miscellaneous and from 90.8% to 60.9% for Safety.1 (See Attachments A and B, page 22 in each.) Yet a third concern for the City, given the changes in CalPERS rate smoothing policies, is future volatility of the CalPERS investment returns. As CalPERS experiences gains and losses in its portfolio, the City’s contribution rates may increase at unpredictably and irregular rates, compromising the City’s ability to plan and budget for its financial obligations. John Bartel will discuss this concern in greater depth in his presentation. In summary, the changes in CalPERS assumptions and investment policy, along with demographic changes in our employees and retirees and the dramatically different investment market environment have created a growing unfunded liability for the City. The following section discusses some options for (a) decreasing the unfunded portion of the liabilities and (b) mitigating the volatility created by market gains and losses in the CalPERS portfolio. 1 Note that the 5-year span from 6/30/08 to 6/30/13 is the actuarial valuation term that determines the rates for the 5-year span from FY 11 to FY 16. City of Palo Alto Page 13 Strategies to Consider I. Strategies for Decreasing the Unfunded Liability Just as with a 30-year mortgage, the City’s annual contribution rate includes an amortized pay- down of its unfunded liability, including current and projected interest on that unfunded liability. To the extent the City can pay down the unfunded liability ahead of schedule, it can save on future interest expense. There are a variety of approaches with which to pursue this. The City could pay an annual amount in excess of the CalPERS-required annual required contribution, or it could contribute periodically, for instance, if and when it experiences budget savings or revenue surpluses at the end of a fiscal year. The amount that it contributes could be paid either directly to CalPERS, or into an irrevocable trust, known as a Section 115 Trust. This type of trust is currently offered by Public Agency Retirement Services (PARS) and by the PFM Group (PFM). Implications of each approach are discussed below. II. Strategies for Decreasing Volatility Please see Attachment C, slides E-19 to E-21 and slides E-30 to E-32 for an illustration of the impact of volatility on both the City’s contribution rates and on the funded ratio. Contributing money to a separately managed 115 trust would be a more effective way to reduce volatility than paying additional funds directly to CalPERS. On the flip side, CalPERS would likely invest the funds more aggressively and potentially attain a higher investment return than would the 115 fund managers. The City would effectively trade off anticipated higher returns for the stabilizing effects of a separate trust. III. Timing of Contributions As mentioned above, the City could contribute money above and beyond its annual required contribution as it experiences budget savings or revenue surpluses (such as in FY 2015) and/or on a planned annual basis as part of the budget. The projected effects of contributing an additional $1 million per year are shown in Bartel’s slides E-33 to E-36 in Attachment C. With $1 million per year additional contributions starting in FY 2016 and continuing through FY 2025 (ten years), Miscellaneous required contribution rates will have decreased by 1.2 percent and unfunded liability decreased by $9 million. For Safety the required contribution rates decrease 2.9 percent by year 10, and unfunded liability drops by $10 million. Staff recommends exploring a dual approach, using both annual contributions to a 115 trust – to reduce future rate volatility - and periodic additional contributions to CalPERS to reduce the amortized payments towards the unfunded liability. City of Palo Alto Page 14 Next Steps and Timeline Staff is aware that City Council has received a significant amount of information and that further discussion will be necessary. There are several options Council may wish to pursue, including referring a subset or all of the topics discussed above to the Finance Committee, or asking staff to return to the full Council will additional information. In the coming weeks staff will work on developing a more specific set of options, including recommended funding levels, and analyzing the impact to the Long Range Financial Forecast of increased annual contributions above and beyond the annual required CalPERS contribution. Attachments:  Attachment A: Miscellaneous Plan Annual Valuation Report as of June 30 2013 (PDF)  Attachment B: Safety Plan Annual Valuation Report as of June 30 2013.pdf (PDF)  Attachment C: Bartel & Associates Appendices (PDF)  Attachment D: CMR #3275, January 22 2013 re: Pension Obligations (PDF) California Public Employees’ Retirement System Actuarial Office P.O. Box 942701 Sacramento, CA 94229-2701 TTY: (916) 795-3240 (888) 225-7377 phone • (916) 795-2744 fax www.calpers.ca.gov October 2014 MISCELLANEOUS PLAN OF THE CITY OF PALO ALTO (CalPERS ID: 6373437857) Annual Valuation Report as of June 30, 2013 Dear Employer, As an attachment to this letter, you will find a copy of the June 30, 2013 actuarial valuation report of your pension plan. Your 2013 actuarial valuation report contains important actuarial information about your pension plan at CalPERS. Your CalPERS staff actuary, whose signature appears in the Actuarial Certification Section on page 1, is available to discuss the report with you after October 31, 2014. Future Contribution Rates The exhibit below displays the Minimum Employer Contribution Rate for fiscal year 2015-16 and a projected contribution rate for 2016-17, before any cost sharing. The projected rate for 2016-17 is based on the most recent information available, including an estimate of the investment return for fiscal year 2013-14, namely 18 percent, and the impact of the actuarial assumptions adopted by the CalPERS Board in February 2014 that will impact employer rates for the first time in fiscal year 2016-17. For a projection of employer rates beyond 2016-17, please refer to the “Projected Rates” in the “Risk Analysis” section, which includes rate projections through 2020-21 under a variety of investment return scenarios. Please disregard any projections that we may have provided you in the past. Fiscal Year Employer Contribution Rate 2015-16 27.694% 2016-17 29.9% (projected) Member contributions other than cost sharing (whether paid by the employer or the employee) are in addition to the above rates. The employer contribution rates in this report do not reflect any cost sharing arrangement you may have with your employees. The estimate for 2016-17 also assumes that there are no future contract amendments and no liability gains or losses (such as larger than expected pay increases, more retirements than expected, etc.). This is a very important assumption because these gains and losses do occur and can have a significant impact on your contribution rate. Even for the largest plans, such gains and losses often cause a change in the employer’s contribution rate of one or two percent of payroll and may be even larger in some less common instances. These gains and losses cannot be predicted in advance so the projected employer contribution rates are just estimates. Your actual rate for 2016-17 will be provided in next year’s report. MISCELLANEOUS PLAN OF THE CITY OF PALO ALTO (CalPERS ID: 6373437857) Annual Valuation Report as of June 30, 2013 Page 2 Changes since the Prior Year’s Valuation On January 1, 2013, the Public Employees’ Pension Reform Act of 2013 (PEPRA) took effect. The impact of the PEPRA changes are included in the rates and the benefit provision listings of the June 30, 2013 valuation for the 2015-16 rates. For more information on PEPRA, please refer to the CalPERS website. On April 17, 2013, the CalPERS Board of Administration approved a recommendation to change the CalPERS amortization and rate smoothing policies. Beginning with the June 30, 2013 valuations that set the 2015-16 rates, CalPERS will no longer use an actuarial value of assets and will employ an amortization and smoothing policy that will pay for all gains and losses over a fixed 30-year period with the increases or decreases in the rate spread directly over a 5-year period. In 2014 CalPERS completed a 2-year asset liability management study incorporating actuarial assumptions and strategic asset allocation. On February 19, 2014 the CalPERS Board of Administration adopted relatively modest changes to the current asset allocation that will reduce the expected volatility of returns. The adopted asset allocation is expected to have a long- term blended return that continues to support a discount rate assumption of 7.5 percent. The Board also approved several changes to the demographic assumptions that more closely align with actual experience. The most significant of these is mortality improvement to acknowledge the greater life expectancies we are seeing in our membership and expected continued improvements. The new actuarial assumptions will be used to set the FY 2016-17 contribution rates for public agency employers. The increase in liability due to new actuarial assumptions will be calculated in the 2014 actuarial valuation and will be amortized over a 20-year period with a 5-year ramp-up/ramp-down in accordance with Board policy. Besides the above noted changes, there may also be changes specific to your plan such as contract amendments and funding changes. Further descriptions of general changes are included in the “Highlights and Executive Summary” section and in Appendix A, “Actuarial Methods and Assumptions.” The effect of the changes on your rate is included in the “Reconciliation of Required Employer Contributions.” We understand that you might have a number of questions about these results. While we are very interested in discussing these results with your agency, in the interest of allowing us to give every public agency their results, we ask that you wait until after October 31 to contact us with actuarial questions. If you have other questions, you may call the Customer Contact Center at (888)-CalPERS or (888-225-7377). Sincerely, ALAN MILLIGAN Chief Actuary ACTUARIAL VALUATION as of June 30, 2013 for the MISCELLANEOUS PLAN of the CITY OF PALO ALTO (CalPERS ID: 6373437857) REQUIRED CONTRIBUTIONS FOR FISCAL YEAR July 1, 2015 – June 30, 2016 THIS PAGE INTENTIONALLY LEFT BLANK TABLE OF CONTENTS ACTUARIAL CERTIFICATION 1 HIGHLIGHTS AND EXECUTIVE SUMMARY Introduction 5 Purpose of the Report 5 Required Employer Contribution 6 Plan’s Funded Status 6 Cost 7 Changes Since the Prior Year’s Valuation 8 Subsequent Events 8 ASSETS Reconciliation of the Market Value of Assets 11 Asset Allocation 12 CalPERS History of Investment Returns 13 LIABILITIES AND RATES Development of Accrued and Unfunded Liabilities 17 (Gain) / Loss Analysis 06/30/12 - 06/30/13 18 Schedule of Amortization Bases 19 Alternate Amortization Schedules 20 Reconciliation of Required Employer Contributions 21 Employer Contribution Rate History 22 Funding History 22 RISK ANALYSIS Volatility Ratios 25 Projected Rates 26 Analysis of Future Investment Return Scenarios 26 Analysis of Discount Rate Sensitivity 27 Hypothetical Termination Liability 28 GASB STATEMENT NO. 27 Information for Compliance with GASB Statement No. 27 31 PLAN’S MAJOR BENEFIT PROVISIONS Plan’s Major Benefit Options 35 APPENDIX A – ACTUARIAL METHODS AND ASSUMPTIONS Actuarial Data A1 Actuarial Methods A1 – A2 Actuarial Assumptions A3 – A20 Miscellaneous A20 – A21 APPENDIX B – PRINCIPAL PLAN PROVISIONS B1 – B9 APPENDIX C – PARTICIPANT DATA Summary of Valuation Data C1 Active Members C2 Transferred and Terminated Members C3 Retired Members and Beneficiaries C4 – C5 APPENDIX D – DEVELOPMENT OF PEPRA MEMBER CONTRIBUTION RATE D1 APPENDIX E – GLOSSARY OF ACTUARIAL TERMS E1 – E3 (CY) FIN PROCESS CONTROL ID: 432056 (PY) FIN PROCESS CONTROL ID: 413234 REPORT ID: 76080 THIS PAGE INTENTIONALLY LEFT BLANK CALPERS ACTUARIAL VALUATION - June 30, 2013 MISCELLANEOUS PLAN OF THE CITY OF PALO ALTO CalPERS ID: 6373437857 Page 1 ACTUARIAL CERTIFICATION To the best of our knowledge, this report is complete and accurate and contains sufficient information to disclose, fully and fairly, the funded condition of the MISCELLANEOUS PLAN OF THE CITY OF PALO ALTO. This valuation is based on the member and financial data as of June 30, 2013 provided by the various CalPERS databases and the benefits under this plan with CalPERS as of the date this report was produced. It is our opinion that the valuation has been performed in accordance with generally accepted actuarial principles, in accordance with standards of practice prescribed by the Actuarial Standards Board, and that the assumptions and methods are internally consistent and reasonable for this plan, as prescribed by the CalPERS Board of Administration according to provisions set forth in the California Public Employees’ Retirement Law. The undersigned is an actuary for CalPERS, who is a member of the American Academy of Actuaries and the Society of Actuaries and meets the Qualification Standards of the American Academy of Actuaries to render the actuarial opinion contained herein. DAVID CLEMENT, ASA, MAAA, EA Senior Pension Actuary, CalPERS THIS PAGE INTENTIONALLY LEFT BLANK HIGHLIGHTS AND EXECUTIVE SUMMARY  INTRODUCTION  PURPOSE OF THE REPORT  REQUIRED EMPLOYER CONTRIBUTION  PLAN’S FUNDED STATUS  COST  CHANGES SINCE THE PRIOR YEAR’S VALUATION  SUBSEQUENT EVENTS THIS PAGE INTENTIONALLY LEFT BLANK CALPERS ACTUARIAL VALUATION - June 30, 2013 MISCELLANEOUS PLAN OF THE CITY OF PALO ALTO CalPERS ID: 6373437857 Page 5 Introduction This report presents the results of the June 30, 2013 actuarial valuation of the MISCELLANEOUS PLAN OF THE CITY OF PALO ALTO of the California Public Employees’ Retirement System (CalPERS). This actuarial valuation sets the fiscal year 2015-16 required employer contribution rates. On January 1, 2013, the Public Employees’ Pension Reform Act of 2013 (PEPRA) took effect. The impact of most of the PEPRA changes are included in the rates and the benefit provision listings of the June 30, 2013 valuation, which sets the 2015-16 contribution rates. For more information on PEPRA, please refer to the CalPERS website. On April 17, 2013, the CalPERS Board of Administration approved a recommendation to change the CalPERS amortization and smoothing policies. Prior to this change, CalPERS employed an amortization and smoothing policy, which spread investment returns over a 15-year period while experience gains and losses were amortized over a rolling 30-year period. Effective with the June 30, 2013 valuations, CalPERS will no longer use an actuarial value of assets and will employ an amortization and smoothing policy that will spread rate increases or decreases over a 5-year period, and will amortize all experience gains and losses over a fixed 30-year period. The new amortization and smoothing policy is used in this valuation. In 2014 CalPERS completed a 2-year asset liability management study incorporating actuarial assumptions and strategic asset allocation. On February 19, 2014 the CalPERS Board of Administration adopted relatively modest changes to the current asset allocation that will reduce the expected volatility of returns. The adopted asset allocation is expected to have a long-term blended return that continues to support a discount rate assumption of 7.5 percent. The Board also approved several changes to the demographic assumptions that more closely align with actual experience. The most significant of these is mortality improvement to acknowledge the greater life expectancies we are seeing in our membership and expected continued improvements. The new actuarial assumptions will be used to set the FY 2016-17 contribution rates for public agency employers. The increase in liability due to new actuarial assumptions will be calculated in the 2014 actuarial valuation and will be amortized over a 20-year period with a 5-year ramp- up/ramp-down in accordance with Board policy. Purpose of the Report The actuarial valuation was prepared by the CalPERS Actuarial Office using data as of June 30, 2013. The purpose of the report is to:  Set forth the assets and accrued liabilities of this plan as of June 30, 2013;  Determine the required employer contribution rate for the fiscal year July 1, 2015 through June 30, 2016;  Provide actuarial information as of June 30, 2013 to the CalPERS Board of Administration and other interested parties; and to  Provide pension information as of June 30, 2013 to be used in financial reports subject to Governmental Accounting Standards Board (GASB) Statement Number 27 for a Single Employer Defined Benefit Pension Plan. California Actuarial Advisory Panel Recommendations This report includes all the basic disclosure elements as described in the Model Disclosure Elements for Actuarial Valuation Reports recommended in 2011 by the California Actuarial Advisory Panel (CAAP), with the exception of including the original base amounts of the various components of the unfunded liability in the Schedule of Amortization Bases shown on page 19. Additionally, this report includes the following “Enhanced Risk Disclosures” also recommended by the CAAP in the Model Disclosure Elements document:  A “Deterministic Stress Test,” projecting future results under different investment income scenarios  A “Sensitivity Analysis,” showing the impact on current valuation results using a 1 percent plus or minus change in the discount rate. CALPERS ACTUARIAL VALUATION - June 30, 2013 MISCELLANEOUS PLAN OF THE CITY OF PALO ALTO CalPERS ID: 6373437857 Page 6 The use of this report for any other purposes may be inappropriate. In particular, this report does not contain information applicable to alternative benefit costs. The employer should contact their actuary before disseminating any portion of this report for any reason that is not explicitly described above. Required Employer Contribution Fiscal Year Fiscal Year 2014-15 2015-16 Actuarially Determined Employer Contributions 1. Contribution in Projected Dollars a) Total Normal Cost $ 12,477,785 $ 12,782,431 b) Employee Contribution1 5,408,805 5,488,848 c) Employer Normal Cost [(1a) – (1b)] 7,068,980 7,293,583 d) Unfunded Liability Contribution 10,888,594 12,207,469 e) Required Employer Contribution [(1c) + (1d)] $ 17,957,574 $ 19,501,052 Projected Annual Payroll for Contribution Year $ 68,744,341 $ 70,414,978 2. Contribution as a Percentage of Payroll a) Total Normal Cost 18.151% 18.153% b) Employee Contribution1 7.868% 7.795% c) Employer Normal Cost [(2a) – (2b)] 10.283% 10.358% d) Unfunded Liability Rate 15.839% 17.336% e) Required Employer Rate [(2c) + (2d)] 26.122% 27.694% Minimum Employer Contribution Rate2 26.122% 27.694% Annual Lump Sum Prepayment Option3 $ 17,319,822 $ 18,808,485 1For classic members this is the percentage specified in the Public Employees Retirement Law, net of any reduction from the use of a modified formula or other factors. For PEPRA members the member contribution rate is based on 50 percent of the normal cost. A development of PEPRA member contribution rates can be found in Appendix D. Employee cost sharing is not shown in this report. 2The Minimum Employer Contribution Rate under PEPRA is the greater of the required employer rate or the employer normal cost. 3Payment must be received by CalPERS before the first payroll reported to CalPERS of the new fiscal year and after June 30. If there is contractual cost sharing or other change, this amount will change. Plan’s Funded Status June 30, 2012 June 30, 2013 1. Present Value of Projected Benefits $ 662,770,685 $ 690,227,166 2. Entry Age Normal Accrued Liability 576,182,013 602,540,178 3. Market Value of Assets (MVA) $ 373,592,926 $ 412,227,784 4. Unfunded Liability [(2) – (3)] $ 202,589,087 $ 190,312,394 5. Funded Ratio [(3) / (2)] 64.8% 68.4% Superfunded Status No No CALPERS ACTUARIAL VALUATION - June 30, 2013 MISCELLANEOUS PLAN OF THE CITY OF PALO ALTO CalPERS ID: 6373437857 Page 7 Cost Actuarial Cost Estimates in General What will this pension plan cost? Unfortunately, there is no simple answer. There are two major reasons for the complexity of the answer. First, actuarial calculations, including the ones in this report, are based on a number of assumptions about the future. These assumptions can be divided into two categories.  Demographic assumptions include the percentage of employees that will terminate, die, become disabled, and retire in each future year.  Economic assumptions include future salary increases for each active employee, and the assumption with the greatest impact, future asset returns at CalPERS for each year into the future until the last dollar is paid to current members of your plan. While CalPERS has set these assumptions to reflect our best estimate of the real future of your plan, it must be understood that these assumptions are very long-term predictors and will surely not be realized in any one year. For example, while the asset earnings at CalPERS have averaged more than the assumed return of 7.5 percent for the past twenty year period ending June 30, 2013, returns for each fiscal year ranged from negative -24 percent to +21.7 percent. Second, the very nature of actuarial funding produces the answer to the question of plan cost as the sum of two separate pieces.  The Normal Cost (i.e., the annual cost associated with one year of service accrual) expressed as a percentage of total active payroll.  The Past Service Cost or Accrued Liability (i.e., the current value of the benefit for all credited past service of current members) which is expressed as a lump sum dollar amount. The cost is the sum of a percent of future pay and a lump sum dollar amount (the sum of an apple and an orange if you will). To communicate the total cost, either the Normal Cost (i.e., future percent of payroll) must be converted to a lump sum dollar amount (in which case the total cost is the present value of benefits), or the Past Service Cost (i.e., the lump sum) must be converted to a percent of payroll (in which case the total cost is expressed as the employer’s rate, part of which is permanent and part temporary). Converting the Past Service Cost lump sum to a percent of payroll requires a specific amortization period, and the employer rate will vary depending on the amortization period chosen. CALPERS ACTUARIAL VALUATION - June 30, 2013 MISCELLANEOUS PLAN OF THE CITY OF PALO ALTO CalPERS ID: 6373437857 Page 8 Changes since the Prior Year’s Valuation Benefits The standard actuarial practice at CalPERS is to recognize mandated legislative benefit changes in the first annual valuation following the effective date of the legislation. Voluntary benefit changes by plan amendment are generally included in the first valuation that is prepared after the amendment becomes effective even if the valuation date is prior to the effective date of the amendment. This valuation generally reflects plan changes by amendments effective before the date of the report. Please refer to the “Plan’s Major Benefit Options” and Appendix B for a summary of the plan provisions used in this valuation. The effect of any mandated benefit changes or plan amendments on the unfunded liability is shown in the “(Gain)/Loss Analysis” and the effect on your employer contribution rate is shown in the “Reconciliation of Required Employer Contributions.” It should be noted that no change in liability or rate is shown for any plan changes, which were already included in the prior year’s valuation. Actuarial Methods and Assumptions On April 17, 2013, the CalPERS Board of Administration approved a recommendation to change the CalPERS amortization and smoothing policies. Beginning with the June 30, 2013 valuations that set the 2015-16 rates, CalPERS will no longer use an actuarial value of assets and will employ an amortization and rate smoothing policy that will pay for all gains and losses over a fixed 30-year period with the increases or decreases in the rate phased in over a 5-year period. A change in the calculation of termination with vested benefits liability for active members was made this year to better reflect the retirement experience. After termination with vested benefits, a miscellaneous member is assumed to retire at age 59 and a safety member at age 54 rather than at earliest retirement age. The higher benefit factors at these ages results in a slightly higher liability and a modest increase in normal cost. Public Employees’ Pension Reform Act of 2013 (PEPRA) On January 1, 2013, the Public Employees’ Pension Reform Act of 2013 (PEPRA) took effect, requiring that a public employer’s contribution to a defined benefit plan, in combination with employee contributions to that defined benefit plan, shall not be less than the normal cost rate. Beginning July 1, 2013, this means that some plans with surplus will be paying more than they otherwise would. For more information on PEPRA, please refer to the CalPERS website. Subsequent Events Actuarial Methods and Assumptions In 2014 CalPERS completed a 2-year asset liability management study incorporating actuarial assumptions and strategic asset allocation. On February 19, 2014 the CalPERS Board of Administration adopted relatively modest changes to the current asset allocation that will reduce the expected volatility of returns (see Risk Analysis section of report). The adopted asset allocation is expected to have a long- term blended return that continues to support a discount rate assumption of 7.5 percent. The Board also approved several changes to the demographic assumptions that more closely align with actual experience. The most significant of these is mortality improvement to acknowledge the greater life expectancies we are seeing in our membership and expected continued improvements. The new actuarial assumptions will be used to set the FY 2016-17 contribution rates for public agency employers. The increase in liability due to new actuarial assumptions will be calculated in the 2014 actuarial valuation and will be amortized over a 20-year period with a 5-year ramp-up/ramp-down in accordance with Board policy. The impact of assumption changes are included in the “Expected Rate Increases” subsection of the “Risk Analysis” section. ASSETS  RECONCILIATION OF THE MARKET VALUE OF ASSETS  ASSET ALLOCATION  CALPERS HISTORY OF INVESTMENT RETURNS THIS PAGE INTENTIONALLY LEFT BLANK CALPERS ACTUARIAL VALUATION - June 30, 2013 MISCELLANEOUS PLAN OF THE CITY OF PALO ALTO CalPERS ID: 6373437857 Page 11 Reconciliation of the Market Value of Assets 1. Market Value of Assets as of 6/30/12 Including Receivables $ 373,592,926 2. Receivables for Service Buybacks as of 6/30/12 2,460,789 3. Market Value of Assets as of 6/30/12 371,132,137 4. Employer Contributions 14,933,196 5. Employee Contributions 6,239,217 6. Benefit Payments to Retirees and Beneficiaries (29,655,129) 7. Refunds (315,736) 8. Lump Sum Payments 0 9. Transfers and Miscellaneous Adjustments (82,508) 10. Investment Return 47,126,719 11. Market Value of Assets as of 6/30/13 $ 409,377,896 12. Receivables for Service Buybacks as of 6/30/13 2,849,888 13. Market Value of Assets as of 6/30/13 Including Receivables $ 412,227,784 CALPERS ACTUARIAL VALUATION - June 30, 2013 MISCELLANEOUS PLAN OF THE CITY OF PALO ALTO CalPERS ID: 6373437857 Page 12 Asset Allocation CalPERS adheres to an Asset Allocation Strategy which establishes asset class allocation policy targets and ranges, and manages those asset class allocations within their policy ranges. CalPERS recognizes that over 90 percent of the variation in investment returns of a well-diversified pool of assets can typically be attributed to asset allocation decisions. On February 19, 2014 the CalPERS Board of Administration adopted changes to the current asset allocation as shown in the Policy Target Allocation below expressed as percentage of total assets. The asset allocation is has an expected long term blended rate of return of 7.5 percent. The asset allocation and market value of assets shown below reflect the values of the Public Employees Retirement Fund (PERF) in its entirety as of June 30, 2013. The assets for CITY OF PALO ALTO MISCELLANEOUS PLAN are part of the Public Employees Retirement Fund (PERF) and are invested accordingly. (A) Asset Class (B) Market Value ($ Billion) (C) Policy Target Allocation 1) Global Equity 133.4 47.0% 2) Private Equity 31.4 12.0% 3) Global Fixed Income 43.9 19.0% 4) Liquidity 10.5 2.0% 5) Real Assets 25.2 14.0% 6) Inflation Sensitive Assets 9.4 6.0% 7) Absolute Return Strategy (ARS) 7.2 0.0% Total Fund $261.0 100.0% Public Equity 51.1% Private Equity 12.0% Income 16.8% Liquidity 4.0% Real Assets 9.6% Inflation 3.6% ARS 2.8% Asset Allocation at 6/30/2013 CALPERS ACTUARIAL VALUATION - June 30, 2013 MISCELLANEOUS PLAN OF THE CITY OF PALO ALTO CalPERS ID: 6373437857 Page 13 CalPERS History of Investment Returns The following is a chart with the 20-year historical annual returns of the Public Employees Retirement Fund for each fiscal year ending on June 30. Beginning in 2002, the figures are reported as gross of fees. The table below shows historical geometric mean annual returns of the Public Employees Retirement Fund for each fiscal year ending on June 30, 2013, (figures are reported as gross of fees). The geometric mean rate of return is the average rate per period compounded over multiple periods. It should be recognized that in any given year the rate of return is volatile. Although the expected rate of return on the recently adopted new asset allocation is 7.5 percent the portfolio has an expected volatility of 11.76 percent per year. Consequently when looking at investment returns it is more instructive to look at returns over longer time horizons. History of CalPERS Geometric Mean Rates of Return and Volatilities 1 year 5 year 10 year 20 year 30 year Geometric Return 13.2% 3.5% 7.0% 7.6% 9.4% Volatility – 17.9% 13.9% 11.8% 11.6% -25.0% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 2. 0 % 16 . 3 % 15 . 3 % 20 . 1 % 19 . 5 % 12 . 5 % 10 . 5 % -7. 2 % -6. 1 % 3. 7 % 16 . 6 % 12 . 3 % 11 . 8 % 19 . 1 % -5. 1 % -24 . 0 % 13 . 3 % 21 . 7 % 0. 1 % 13 . 2 % THIS PAGE INTENTIONALLY LEFT BLANK LIABILITIES AND RATES  DEVELOPMENT OF ACCRUED AND UNFUNDED LIABILITIES  (GAIN) / LOSS ANALYSIS 06/30/12 - 06/30/13  SCHEDULE OF AMORTIZATION BASES  ALTERNATE AMORTIZATION SCHEDULES  RECONCILIATION OF REQUIRED EMPLOYER CONTRIBUTIONS  EMPLOYER CONTRIBUTION RATE HISTORY  FUNDING HISTORY THIS PAGE INTENTIONALLY LEFT BLANK CALPERS ACTUARIAL VALUATION - June 30, 2013 MISCELLANEOUS PLAN OF THE CITY OF PALO ALTO CalPERS ID: 6373437857 Page 17 Development of Accrued and Unfunded Liabilities 1. Present Value of Projected Benefits a) Active Members $ 297,642,775 b) Transferred Members 23,476,142 c) Terminated Members 13,166,269 d) Members and Beneficiaries Receiving Payments 355,941,980 e) Total $ 690,227,166 2. Present Value of Future Employer Normal Costs $ 48,567,418 3. Present Value of Future Employee Contributions $ 39,119,570 4. Entry Age Normal Accrued Liability a) Active Members [(1a) - (2) - (3)] $ 209,955,787 b) Transferred Members (1b) 23,476,142 c) Terminated Members (1c) 13,166,269 d) Members and Beneficiaries Receiving Payments (1d) 355,941,980 e) Total $ 602,540,178 5. Market Value of Assets (MVA) $ 412,227,784 6. Unfunded Liability [(4e) - (5)] $ 190,312,394 7. Funded Ratio [(5) / (4e)] 68.4% CALPERS ACTUARIAL VALUATION - June 30, 2013 MISCELLANEOUS PLAN OF THE CITY OF PALO ALTO CalPERS ID: 6373437857 Page 18 (Gain) /Loss Analysis 6/30/12 – 6/30/13 To calculate the cost requirements of the plan, assumptions are made about future events that affect the amount and timing of benefits to be paid and assets to be accumulated. Each year actual experience is compared to the expected experience based on the actuarial assumptions. This results in actuarial gains or losses, as shown below. A Total (Gain)/Loss for the Year 1. Unfunded Accrued Liability (UAL) as of 6/30/12 $ 128,362,660 2. Expected Payment on the UAL during 2012/2013 8,305,825 3. Interest through 6/30/13 [.075 x (A1) - ((1.075)½ - 1) x (A2)] 9,321,362 4. Expected UAL before all other changes [(A1) - (A2) + (A3)] 129,378,197 5. Change due to plan changes 0 6. Change due to assumption change 0 7. Expected UAL after all other changes [(A4) + (A5) + (A6)] 129,378,197 8. Actual UAL as of 6/30/13 190,312,394 9. Total (Gain)/Loss for 2012/2013 [(A8) - (A7)] $ 60,934,197 B Contribution (Gain)/Loss for the Year 1. Expected Contribution (Employer and Employee) $ 19,982,449 2. Interest on Expected Contributions 735,795 3. Actual Contributions 21,172,413 4. Interest on Actual Contributions 779,612 5. Expected Contributions with Interest [(B1) + (B2)] 20,718,244 6. Actual Contributions with Interest [(B3) + (B4)] 21,952,025 7. Contribution (Gain)/Loss [(B5) - (B6)] $ (1,233,781) C Asset (Gain)/Loss for the Year 1. Actuarial Value of Assets as of 6/30/12 Including Receivables $ 447,819,353 2. Receivables as of 6/30/12 2,460,789 3. Actuarial Value of Assets as of 6/30/12 445,358,564 4. Contributions Received 21,172,413 5. Benefits and Refunds Paid (29,970,865) 6. Transfers and miscellaneous adjustments (82,508) 7. Expected Int. [.075 x (C3) + ((1.075)½ - 1) x ((C4) + (C5) + (C6))] 33,074,877 8. Expected Assets as of 6/30/13 [(C3) + (C4) + (C5) + (C6) + (C7)] 469,552,481 9. Receivables as of 6/30/13 2,849,888 10. Expected Assets Including Receivables 472,402,369 11. Market Value of Assets as of 6/30/13 412,227,784 12. Asset (Gain)/Loss [(C10) - (C11)] $ 60,174,585 D Liability (Gain)/Loss for the Year 1. Total (Gain)/Loss (A9) $ 60,934,197 2. Contribution (Gain)/Loss (B7) (1,233,781) 3. Asset (Gain)/Loss (C12) 60,174,585 4. Liability (Gain)/Loss [(D1) - (D2) - (D3)] $ 1,993,393 CALPERS ACTUARIAL VALUATION - June 30, 2013 MISCELLANEOUS PLAN OF THE CITY OF PALO ALTO CalPERS ID: 6373437857 Page 19 Schedule of Amortization Bases There is a two-year lag between the Valuation Date and the Contribution Fiscal Year.  The assets, liabilities and funded status of the plan are measured as of the valuation date; June 30, 2013.  The employer contribution rate determined by the valuation is for the fiscal year beginning two years after the valuation date; fiscal year 2015-16. This two-year lag is necessary due to the amount of time needed to extract and test the membership and financial data, and due to the need to provide public agencies with their employer contribution rates well in advance of the start of the fiscal year. The Unfunded Liability is used to determine the employer contribution and therefore must be rolled forward two years from the valuation date to the first day of the fiscal year for which the contribution is being determined. The Unfunded Liability is rolled forward each year by subtracting the expected Payment on the Unfunded Liability for the fiscal year and adjusting for interest. The Expected Payment on the Unfunded Liability for a fiscal year is equal to the Expected Employer Contribution for the fiscal year minus the Expected Normal Cost for the year. The Employer Contribution Rate for the first fiscal year is determined by the actuarial valuation two years ago and the rate for the second year is from the actuarial valuation one year ago. The Normal Cost Rate for each of the two fiscal years is assumed to be the same as the rate determined by the current valuation. All expected dollar amounts are determined by multiplying the rate by the expected payroll for the applicable fiscal year, based on payroll as of the valuation date. Amounts for Fiscal 2015-16 Reason for Base Date Established Amorti- zation Period Balance 6/30/13 Expected Payment 2013-14 Balance 6/30/14 Expected Payment 2014-15 Balance 6/30/15 Scheduled Payment for 2015-16 Payment as Percentage of Payroll ASSUMPTION CHANGE 06/30/03 10 $17,798,481 $1,924,538 $17,137,963 $1,982,274 $16,368,045 $2,041,742 2.900% METHOD CHANGE 06/30/04 11 $(1,330,937) $(135,457) $(1,290,313) $(139,521) $(1,242,428) $(143,706) (0.204%) BENEFIT CHANGE 06/30/05 11 $29,486,365 $3,000,992 $28,586,348 $3,091,022 $27,525,484 $3,183,753 4.521% ASSUMPTION CHANGE 06/30/09 16 $26,587,215 $2,149,437 $26,352,672 $2,213,920 $26,033,681 $2,280,338 3.238% SPECIAL (GAIN)/LOSS 06/30/09 26 $16,199,911 $1,007,314 $16,370,499 $1,037,533 $16,522,550 $1,068,659 1.518% SPECIAL (GAIN)/LOSS 06/30/10 27 $1,332,440 $81,378 $1,347,998 $83,819 $1,362,193 $86,333 0.123% ASSUMPTION CHANGE 06/30/11 18 $12,250,695 $924,993 $12,210,444 $952,744 $12,138,402 $981,326 1.394% SPECIAL (GAIN)/LOSS 06/30/11 28 $(55,828) $(3,353) $(56,539) $(3,453) $(57,199) $(3,557) (0.005%) PAYMENT (GAIN)/LOSS 06/30/12 29 $3,162,978 $434,709 $2,949,486 $177,118 $2,987,057 $182,432 0.259% (GAIN)/LOSS 06/30/12 29 $23,946,877 $847,010 $24,864,694 $1,493,138 $25,181,428 $1,537,932 2.184% (GAIN)/LOSS 06/30/13 30 $60,934,197 $(57,264) $65,563,634 $(61,778) $70,544,959 $992,217 1.409% TOTAL $190,312,394 $10,174,297 $194,036,886 $10,826,816 $197,364,172 $12,207,469 17.336% CALPERS ACTUARIAL VALUATION - June 30, 2013 MISCELLANEOUS PLAN OF THE CITY OF PALO ALTO CalPERS ID: 6373437857 Page 20 Page 20 Alternate Amortization Schedules The amortization schedule shown on the previous page shows the minimum contributions required according to CalPERS amortization policy. There has been considerable interest from many agencies in paying off these unfunded accrued liabilities sooner and the passible savings in doing so. Therefore, we have provided alternate amortization schedules to help analyze your current amortization schedule and illustrate the advantages of accelerating payments towards your plan’s unfunded liability of $197,364,172 as of June 30, 2015, which under the minimum schedule, will require total payments of $456,729,477. Shown below are the level rate payments required to amortize your plan’s unfunded liability assuming a fresh start over the various periods noted. Note that the payments under each scenario would increase by 3 percent for each year into the future. If you are interested in changing your plan’s amortization schedule please contact your plan actuary to discuss further. Level Rate of Payroll Amortization Period 2015-16 Rate 2015-16 Payment Total Payments Total Interest Difference from Current Schedule 20 21.163% $ 14,902,066 $ 400,424,100 $ 203,059,928 $ 56,305,377 15 25.694% $ 18,092,282 $ 336,496,793 $ 139,132,621 $ 120,232,684 CALPERS ACTUARIAL VALUATION - June 30, 2013 MISCELLANEOUS PLAN OF THE CITY OF PALO ALTO CalPERS ID: 6373437857 Page 21 Reconciliation of Required Employer Contributions Percentage of Projected Payroll Estimated $ Based on Projected Payroll 1. Contribution for 7/1/14 – 6/30/15 26.122% $ 17,957,574 2. Effect of changes since the prior year annual valuation a) Effect of unexpected changes in demographics and financial results 1.572% 1,107,074 b) Effect of plan changes 0.000% 0 c) Effect of changes in Assumptions 0.000% 0 d) Effect of change in payroll - 436,404 e) Effect of elimination of amortization base 0.000% 0 f) Effect of changes due to Fresh Start 0.000% 0 g) Net effect of the changes above [Sum of (a) through (f)] 1.572% 1,543,478 3. Contribution for 7/1/15 – 6/30/16 [(1)+(2g)] 27.694% 19,501,052 The contribution actually paid (item 1) may be different if a prepayment of unfunded actuarial liability is made or a plan change became effective after the prior year’s actuarial valuation was performed. CALPERS ACTUARIAL VALUATION - June 30, 2013 MISCELLANEOUS PLAN OF THE CITY OF PALO ALTO CalPERS ID: 6373437857 Page 22 Employer Contribution Rate History The table below provides a recent history of the employer contribution rates for your plan, as determined by the annual actuarial valuation. It does not account for prepayments or benefit changes made in the middle of the year. Required By Valuation Fiscal Year Employer Normal Cost Unfunded Rate Total Employer Contribution Rate 2010 - 2011 10.087% 7.468% 17.555% 2011 - 2012 10.100% 11.625% 21.725% 2012 - 2013 10.171% 12.799% 22.970% 2013 - 2014 10.360% 14.240% 24.600% 2014 - 2015 10.283% 15.839% 26.122% 2015 - 2016 10.358% 17.336% 27.694% Funding History The Funding History below shows the recent history of the actuarial accrued liability, the market value of assets, the funded ratio and the annual covered payroll. Valuation Date Accrued Liability Market Value of Assets (MVA) Funded Ratio Annual Covered Payroll 06/30/08 $ 443,337,130 $ 385,304,560 86.9% $ 63,933,506 06/30/09 499,199,907 288,524,538 57.8% 65,602,083 06/30/10 521,269,469 323,971,012 62.2% 62,496,037 06/30/11 552,715,631 384,056,704 69.5% 60,297,783 06/30/12 576,182,013 373,592,926 64.8% 62,910,810 06/30/13 602,540,178 412,227,784 68.4% 64,439,680 RISK ANALYSIS  VOLATILITY RATIOS  PROJECTED RATES  ANALYSIS OF FUTURE INVESTMENT RETURN SCENARIOS  ANALYSIS OF DISCOUNT RATE SENSITIVITY  HYPOTHETICAL TERMINATION LIABILITY THIS PAGE INTENTIONALLY LEFT BLANK CALPERS ACTUARIAL VALUATION - June 30, 2013 MISCELLANEOUS PLAN OF THE CITY OF PALO ALTO CalPERS ID: 6373437857 Page 25 Volatility Ratios The actuarial calculations supplied in this communication are based on a number of assumptions about very long- term demographic and economic behavior. Unless these assumptions (terminations, deaths, disabilities, retirements, salary growth, and investment return) are exactly realized each year, there will be differences on a year-to-year basis. The year-to-year differences between actual experience and the assumptions are called actuarial gains and losses and serve to lower or raise the employer’s rates from one year to the next. Therefore, the rates will inevitably fluctuate, especially due to the ups and downs of investment returns. Asset Volatility Ratio (AVR) Plans that have higher asset to payroll ratios produce more volatile employer rates due to investment return. For example, a plan with an asset to payroll ratio of 8 may experience twice the contribution volatility due to investment return volatility, than a plan with an asset to payroll ratio of 4. Below we have shown your asset volatility ratio, a measure of the plan’s current rate volatility. It should be noted that this ratio is a measure of the current situation. It increases over time but generally tends to stabilize as the plan matures. Liability Volatility Ratio (LVR) Plans that have higher liability to payroll ratios produce more volatile employer rates due to investment return and changes in liability. For example, a plan with a liability to payroll ratio of 8 is expected to have twice the contribution volatility of a plan with a liability to payroll ratio of 4. The liability volatility ratio is also included in the table below. It should be noted that this ratio indicates a longer-term potential for contribution volatility and the asset volatility ratio, described above, will tend to move closer to this ratio as the plan matures. Rate Volatility As of June 30, 2013 1. Market Value of Assets without Receivables $ 409,377,896 2. Payroll 64,439,680 3. Asset Volatility Ratio (AVR = 1. / 2.) 6.4 4. Accrued Liability $ 602,540,178 5. Liability Volatility Ratio (LVR = 4. / 2.) 9.4 CALPERS ACTUARIAL VALUATION - June 30, 2013 MISCELLANEOUS PLAN OF THE CITY OF PALO ALTO CalPERS ID: 6373437857 Page 26 Projected Rates The estimated rate for 2016-17 is based on a projection of the most recent information we have available, including an estimated 18 percent investment return for fiscal 2013-14, the impact of the new smoothing methods adopted by the CalPERS Board in April 2013 that will impact employer rates for the first time in 2015-16 and an estimate of the impact of the new actuarial assumptions adopted by the CalPERS Board in February 2014. These new demographic assumptions include a 20-year projection of on-going mortality improvement. A complete listing of the new demographic assumptions to be implemented with the June 30, 2014 annual actuarial valuation and incorporated in the projected rates for FY 2016-17 and beyond can be found on the CalPERS website at: http://www.calpers.ca.gov/eip-docs/about/pubs/employer/actuarial-assumptions.xls The table below shows projected employer contribution rates (before cost sharing) for the next five Fiscal Years, assuming CalPERS earns 18 percent for fiscal year 2013-14 and 7.50 percent every fiscal year thereafter, and assuming that all other actuarial assumptions will be realized and that no further changes to assumptions, contributions, benefits, or funding will occur between now and the beginning of the fiscal year 2016-17. New Rate Projected Future Employer Contribution Rates 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 Contribution Rates: 27.694% 29.9% 31.4% 33.0% 34.6% 34.8% Analysis of Future Investment Return Scenarios In 2014 CalPERS completed a 2-year asset liability management study incorporating actuarial assumptions and strategic asset allocation. On February 19, 2014 the CalPERS Board of Administration adopted relatively modest changes to the current asset allocation that will reduce the expected volatility of returns. The adopted asset allocation is expected to have a long- term blended return that continues to support a discount rate assumption of 7.5 percent. The newly adopted asset allocation has a lower expected investment volatility which will result in better risk characteristics than an equivalent margin for adverse deviation. The current asset allocation has an expected standard deviation of 12.45 percent while the newly adopted asset allocation has a lower expected standard deviation of 11.76 percent. The investment return for fiscal year 2013-14 was announced July 14, 2014. The investment return in fiscal year 2013-14 is 18.42 percent before administrative expenses. This year, there will be no adjustment for real estate and private equities. For purposes of projecting future employer rates, we are assuming an 18.0 percent investment return for fiscal year 2013-14. The investment return realized during a fiscal year first affects the contribution rate for the fiscal year two years later. Specifically, the investment return for 2013-14 will first be reflected in the June 30, 2014 actuarial valuation that will be used to set the 2016-17 employer contribution rates, the 2014-15 investment return will first be reflected in the June 30, 2015 actuarial valuation that will be used to set the 2017-18 employer contribution rates and so forth. Based on a 18 percent investment return for fiscal year 2013-14, the April 17, 2013 CalPERS Board-approved amortization and rate smoothing method change, the February 18, 2014 new demographic assumptions including 20-year mortality improvement using Scale BB and assuming that all other actuarial assumptions will be realized, and that no further changes to assumptions, contributions, benefits, or funding will occur between now and the beginning of the fiscal year 2016-17, the effect on the 2016-17 Employer Rate is as follows: Estimated 2016-17 Employer Rate Estimated Increase in Employer Rate between 2015-16 and 2016-17 29.9% 2.2% CALPERS ACTUARIAL VALUATION - June 30, 2013 MISCELLANEOUS PLAN OF THE CITY OF PALO ALTO CalPERS ID: 6373437857 Page 27 As part of this report, a sensitivity analysis was performed to determine the effects of various investment returns during fiscal years 2014-15, 2015-16 and 2016-17 on the 2017-18, 2018-19 and 2019-20 employer rates. Once again, the projected rate increases assume that all other actuarial assumptions will be realized and that no further changes to assumptions, contributions, benefits, or funding will occur. Five different investment return scenarios were selected.  The first scenario is what one would expect if the markets were to give us a 5th percentile return from July 1, 2014 through June 30, 2017. The 5th percentile return corresponds to a -3.8 percent return for each of the 2014-15, 2015-16 and 2016-17 fiscal years.  The second scenario is what one would expect if the markets were to give us a 25th percentile return from July 1, 2014 through June 30, 2017. The 25th percentile return corresponds to a 2.8 percent return for each of the 2014-15, 2015-16 and 2016-17 fiscal years.  The third scenario assumed the return for 2014-15, 2015-16, 2016-17 would be our assumed 7.5 percent investment return which represents about a 49th percentile event.  The fourth scenario is what one would expect if the markets were to give us a 75th percentile return from July 1, 2014 through June 30, 2017. The 75th percentile return corresponds to a 12.0 percent return for each of the 2014-15, 2015-16 and 2016-17 fiscal years.  Finally, the last scenario is what one would expect if the markets were to give us a 95th percentile return from July 1, 2014 through June 30, 2017. The 95th percentile return corresponds to a 18.9 percent return for each of the 2014-15, 2015-16 and 2016-17 fiscal years. The table below shows the estimated projected contribution rates and the estimated increases for your plan under the five different scenarios. 2014-17 Investment Return Scenario Estimated Employer Rate Estimated Change in Employer Rate between 2016-17 and 2019-20 2017-18 2018-19 2019-20 -3.8% (5th percentile) 32.6% 36.4% 41.2% 11.3% 2.8% (25th percentile) 31.9% 34.5% 37.4% 7.6% 7.5% 31.4% 33.0% 34.6% 4.7% 12.0%(75th percentile) 31.0% 31.6% 31.7% 1.8% 18.9%(95th percentile) 30.3% 29.4% 26.9% -2.9% Analysis of Discount Rate Sensitivity The following analysis looks at the 2015-16 employer contribution rates under two different discount rate scenarios. Shown below are the employer contribution rates assuming discount rates that are 1 percent lower and 1 percent higher than the current valuation discount rate. This analysis gives an indication of the potential required employer contribution rates if the PERF were to realize investment returns of 6.50 percent or 8.50 percent over the long-term. This type of analysis gives the reader a sense of the long-term risk to the employer contribution rates. 2015-16 Employer Contribution Rate As of June 30, 2013 6.50% Discount Rate (-1%) 7.50% Discount Rate (assumed rate) 8.50% Discount Rate (+1%) Employer Normal Cost 14.667% 10.358% 7.051% Accrued Liability $ 677,476,681 $ 602,540,178 $ 539,962,940 Unfunded Accrued Liability $ 265,248,897 $ 190,312,394 $ 127,735,156 CALPERS ACTUARIAL VALUATION - June 30, 2013 MISCELLANEOUS PLAN OF THE CITY OF PALO ALTO CalPERS ID: 6373437857 Page 28 Hypothetical Termination Liability Below is an estimate of the financial position of your plan if you had terminated your contract with CalPERS as of June 30, 2013 using the discount rates shown below. Your plan liability on a termination basis is calculated differently compared to the plan’s ongoing funding liability. For this hypothetical termination liability both compensation and service is frozen as of the valuation date and no future pay increases or service accruals are included. In December 2012, the CalPERS Board adopted a more conservative investment policy and asset allocation strategy for the Terminated Agency Pool. Since the Terminated Agency Pool has limited funding sources, expected benefit payments are secured by risk-free assets. With this change, CalPERS increased benefit security for members while limiting its funding risk. This asset allocation has a lower expected rate of return than the PERF. Consequently, the lower discount rate for the Terminated Agency pool results in higher liabilities for terminated plans. In order to terminate your plan, you must first contact our Retirement Services Contract Unit to initiate a Resolution of Intent to Terminate. The completed Resolution will allow your plan actuary to give you a preliminary termination valuation with a more up-to-date estimate of your plan liabilities. CalPERS strongly advises you to consult with your plan actuary before beginning this process. Valuation Date Hypothetical Termination Liability1 Market Value of Assets (MVA) Unfunded Termination Liability Termination Funded Ratio Termination Liability Discount Rate2 06/30/11 $ 770,280,910 $ 384,056,704 $ 386,224,206 49.9% 4.82% 06/30/12 1,018,052,435 373,592,926 644,459,509 36.7% 2.98% 06/30/13 950,094,236 412,227,784 537,866,452 43.4% 3.72% 1 The hypothetical liabilities calculated above include a 7 percent mortality contingency load in accordance with Board policy. Other actuarial assumptions, such as wage and inflation assumptions, can be found in appendix A. 2 The discount rate assumption used for termination valuations is a weighted average of the 10 and 30-year US Treasury yields in effect on the valuation date that equal the duration of the pension liabilities. For purposes of this hypothetical termination liability estimate, the discount rate used, is the yield on the 30-year US Treasury Separate Trading of Registered Interest and Principal of Securities (STRIPS). Note that as of June 30, 2014 the 30-year STRIPS rate was 3.55 percent. GASB STATEMENT NO. 27 THIS PAGE INTENTIONALLY LEFT BLANK CALPERS ACTUARIAL VALUATION - June 30, 2013 MISCELLANEOUS PLAN OF THE CITY OF PALO ALTO CalPERS ID: 6373437857 Page 31 MISCELLANEOUS PLAN of the CITY OF PALO ALTO Information for Compliance with GASB Statement No. 27 Disclosure under GASB 27 follows. However, note that effective for financial statements for fiscal years beginning after June 15, 2014, GASB 68 replaces GASB 27. This will be the last year that GASB disclosure information will be included in your annual actuarial report. GASB 68 will require additional reporting that CalPERS is intending to provide upon request for an additional fee. We urge you to start discussions with your auditors on how to implement GASB 68. Under GASB 27, an employer reports an annual pension cost (APC) equal to the annual required contribution (ARC) plus an adjustment for the cumulative difference between the APC and the employer’s actual plan contributions for the year. The cumulative difference is called the net pension obligation (NPO). Since GASB 68 replaces GASB 27, for fiscal year 2015-16, the APC is replaced by the Actuarially Determined Contribution (ADC). The ADC for July 1, 2015 to June 30, 2016 is 27.694% percent of payroll. In order to calculate the dollar value of the ADC for inclusion in financial statements prepared as of June 30, 2016, this contribution rate, less any employee cost sharing, as modified by any amendments for the year, would be multiplied by the payroll of covered employees that was actually paid during the period July 1, 2015 to June 30, 2016. The employer and the employer’s auditor are responsible for determining the NPO, APC or ADC for a given fiscal year. A summary of principal assumptions and methods used to determine the funded status is shown below. Retirement Program Valuation Date June 30, 2013 Actuarial Cost Method Entry Age Normal Cost Method Amortization Method Level Percent of Payroll Asset Valuation Method Market Value Actuarial Assumptions Discount Rate 7.50% (net of administrative expenses) Projected Salary Increases 3.30% to 14.20% depending on Age, Service, and type of employment Inflation 2.75% Payroll Growth 3.00% Individual Salary Growth A merit scale varying by duration of employment coupled with an assumed annual inflation growth of 2.75% and an annual production growth of 0.25%. Initial unfunded liabilities are amortized over a closed period that depends on the plan’s date of entry into CalPERS. Subsequent plan amendments are amortized as a level percentage of pay over a closed 20-year period. Gains and losses that occur in the operation of the plan are amortized over a 30-year period with Direct Rate Smoothing with a 5-year ramp up/ramp down. If the plan’s accrued liability exceeds the actuarial value of plan assets, then the amortization payment on the total unfunded liability may not be lower than the payment calculated over a 30-year amortization period. More detailed information on assumptions and methods is provided in Appendix A of this report. Appendix B contains a description of benefits included in the valuation. The Schedule of Funding Progress below shows the recent history of the actuarial accrued liability, actuarial value of assets, their relationship and the relationship of the unfunded actuarial accrued liability to payroll. Valuation Date Accrued Liability (a) Actuarial value of Assets* (b) Unfunded Liability (UL) (a)-(b) Funded Ratios (b)/(a) Annual Covered Payroll (c) UL As a % of Payroll [(a)-(b)]/(c) 06/30/09 $ 499,199,907 $ 398,764,606 $ 100,435,301 79.9% $ 65,602,083 153.1% 06/30/10 521,269,469 416,810,087 104,459,382 80.0% 62,496,037 167.1% 06/30/11 552,715,631 434,985,547 117,730,084 78.7% 60,297,783 195.2% 06/30/12 576,182,013 447,819,353 128,362,660 77.7% 62,910,810 204.0% 06/30/13 602,540,178 412,227,784 190,312,394 68.4% 64,439,680 295.3% * Beginning with the 6/30/2013 valuation Actuarial Value of Assets equals Market Value of Assets per CalPERS Direct Rate Smoothing Policy. THIS PAGE INTENTIONALLY LEFT BLANK PLAN’S MAJOR BENEFIT PROVISIONS THIS PAGE INTENTIONALLY LEFT BLANK CALPERS ACTUARIAL VALUATION – June 30, 2013 MISCELLANEOUS PLAN OF THE CITY OF PALO ALTO CalPERS ID: 6373437857 Plan’s Major Benefit Options Shown below is a summary of the major optional benefits for which your agency has contracted. A description of principal standard and optional plan provisions is in the following section of this Appendix. Contract Package Receiving Active Misc Active Misc Active Misc Inactive Inactive Active Misc Benefit Provision Benefit Formula 2.0% @ 55 2.7% @ 55 2.0% @ 60 2.0% @ 62 Social Security Coverage No No No No No No Full/Modified Full Full Full Full Full Full Final Average Compensation Period 12 mos. 12 mos. 12 mos. 36 mos. Sick Leave Credit No No No No No No Non-Industrial Disability Standard Standard Standard Standard Industrial Disability No No No No No No Pre-Retirement Death Benefits Optional Settlement 2W No No No No No No 1959 Survivor Benefit Level Level 1 Level 1 Level 1 No No Level 1 Special No No No No No No Alternate (firefighters) No No No No No No Post-Retirement Death Benefits Lump Sum $500 $500 $500 $500 $500 $500 $500 Survivor Allowance (PRSA) No No No No No No No COLA 2% 2% 2% 2% 2% 2% 2% Contractual Employee Cost Sharing Page 35 CALPERS ACTUARIAL VALUATION – June 30, 2013 MISCELLANEOUS PLAN OF THE CITY OF PALO ALTO CalPERS ID: 6373437857 Plan’s Major Benefit Options Shown below is a summary of the major optional benefits for which your agency has contracted. A description of principal standard and optional plan provisions is in the following section of this Appendix. Contract Package Benefit Provision Benefit Formula Social Security Coverage Full/Modified Final Average Compensation Period Sick Leave Credit Non-Industrial Disability Industrial Disability Pre-Retirement Death Benefits Optional Settlement 2W 1959 Survivor Benefit Level Special Alternate (firefighters) Post-Retirement Death Benefits Lump Sum Survivor Allowance (PRSA) COLA Page 36 APPENDICES  APPENDIX A – ACTUARIAL METHODS AND ASSUMPTIONS  APPENDIX B – PRINCIPAL PLAN PROVISIONS  APPENDIX C – PARTICIPANT DATA  APPENDIX D – DEVELOPMENT OF PPERA MEMBER CONTRIBUTION RATES  APPENDIX E – GLOSSARY OF ACTUARIAL TERMS THIS PAGE INTENTIONALLY LEFT BLANK APPENDIX A ACTUARIAL METHODS AND ASSUMPTIONS  ACTUARIAL DATA  ACTUARIAL METHODS  ACTUARIAL ASSUMPTIONS  MISCELLANEOUS THIS PAGE INTENTIONALLY LEFT BLANK CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX A ACTUARIAL METHODS AND ASSUMPTIONS A-1 Actuarial Data As stated in the Actuarial Certification, the data, which serves as the basis of this valuation, has been obtained from the various CalPERS databases. We have reviewed the valuation data and believe that it is reasonable and appropriate in aggregate. We are unaware of any potential data issues that would have a material effect on the results of this valuation, except that data does not always contain the latest salary information for former members now in reciprocal systems and does not recognize the potential for unusually large salary deviation in certain cases such as elected officials. Therefore, salary information in these cases may not be accurate. These situations are relatively infrequent, however, and when they do occur, they generally do not have a material impact on the employer contribution rates. Actuarial Methods Funding Method The actuarial funding method used for the Retirement Program is the Entry Age Normal Cost Method. Under this method, projected benefits are determined for all members and the associated liabilities are spread in a manner that produces level annual cost as a percent of pay in each year from the age of hire (entry age) to the assumed retirement age. The cost allocated to the current fiscal year is called the normal cost. The actuarial accrued liability for active members is then calculated as the portion of the total cost of the plan allocated to prior years. The actuarial accrued liability for members currently receiving benefits, for active members beyond the assumed retirement age, and for members entitled to deferred benefits, is equal to the present value of the benefits expected to be paid. No normal costs are applicable for these participants. The excess of the total actuarial accrued liability over the actuarial value of plan assets is called the unfunded actuarial accrued liability. Funding requirements are determined by adding the normal cost and an amortization of the unfunded liability as a level percentage of assumed future payrolls. Commencing with the June 30, 2013 valuation all new gains or losses are tracked and amortized over a fixed 30-year period with a 5 year ramp up at the beginning and a 5 year ramp down at the end of the amortization period. All changes in liability due to plan amendments (other than golden handshakes), changes in actuarial assumptions, or changes in actuarial methodology are amortized separately over a 20-year period with a 5 year ramp up at the beginning and a 5 year ramp down at the end of the amortization period. Changes in unfunded accrued liability due to a Golden Handshake will be amortized over a period of 5 years. If a plan’s accrued liability exceeds the market value of assets, the annual contribution with respect to the total unfunded liability may not be less than the amount produced by a 30-year amortization of the unfunded liability. An exception has been made for the change in asset value from actuarial to market value in this valuation. The CalPERS Board approved a 30-year amortization with a 5-year ramp-up/ramp-down for only this change in method. Additional contributions will be required for any plan or pool if their cash flows hamper adequate funding progress by preventing the expected funded status on a market value of assets basis to either:  Increase by at least 15 percent by June 30, 2043; or  Reach a level of 75 percent funded by June 30, 2043 The necessary additional contribution will be obtained by changing the amortization period of the gains and losses, except for those occurring in the fiscal years 2008-2009, 2009-2010, and 2010-2011 to a period, which will result in the satisfaction of the above criteria. CalPERS actuaries will reassess the criteria above when performing each future valuation to determine whether or not additional contributions are necessary. An exception to the funding rules above is used whenever the application of such rules results in inconsistencies. In these cases, a “fresh start” approach is used. This simply means that the current unfunded actuarial liability is projected and amortized over a set number of years. As mentioned above, if the annual contribution on the total unfunded liability was less than the amount produced by a 30-year amortization of the unfunded liability, the plan actuary would implement a 30-year fresh start. However, in CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX A ACTUARIAL METHODS AND ASSUMPTIONS A-2 the case of a 30-year fresh start, just the unfunded liability not already in the (gain)/loss base (which is already amortized over 30 years), will go into the new fresh start base. In addition, a fresh start is needed in the following situations: 1) When a positive payment would be required on a negative unfunded actuarial liability (or conversely a negative payment on a positive unfunded actuarial liability); or 2) When there are excess assets, rather than an unfunded liability. In this situation, a 30-year fresh start is used, unless a longer fresh start is needed to avoid a negative total rate. It should be noted that the actuary may choose to use a fresh start under other circumstances. In all cases, the fresh start period is set by the actuary at what is deemed appropriate; however, the period will not be less than five years, nor greater than 30 years. Asset Valuation Method It is the policy of the CalPERS Board of Administration to use professionally accepted amortization methods to eliminate unfunded accrued liabilities or surpluses in a manner that maintains benefit security for the members of the System while minimizing substantial variations in employer contribution rates. On April 17, 2013, the CalPERS Board of Administration approved a recommendation to change the CalPERS amortization and rate smoothing policies. Beginning with the June 30, 2013 valuations that set the 2015-16 rates, CalPERS will employ an amortization and smoothing policy that will pay for all gains and losses over a fixed 30-year period with the increases or decreases in the rate spread directly over a 5-year period. CalPERS will no longer use an actuarial value of assets and will use the market value of assets. This direct rate smoothing method is equivalent to a method using a 5 year asset smoothing period with no actuarial value of asset corridor and a 25 year amortization period for gains and losses. The change in asset value will also be amortized over 30 years with a 5-year ramp-up/ramp-down. CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX A ACTUARIAL METHODS AND ASSUMPTIONS A-3 Actuarial Assumptions In 2014 CalPERS completed a 2-year asset liability management study incorporating actuarial assumptions and strategic asset allocation. On February 19, 2014 the CalPERS Board of Administration adopted relatively modest changes to the current asset allocation that will reduce the expected volatility of returns. The adopted asset allocation is expected to have a long-term blended return that continues to support a discount rate assumption of 7.5 percent. The Board also approved several changes to the demographic assumptions that more closely align with actual experience. The most significant of these is mortality improvement to acknowledge the greater life expectancies we are seeing in our membership and expected continued improvements. The new actuarial assumptions will be used to set the FY 2016-17 contribution rates for public agency employers. The increase in liability due to new actuarial assumptions will be calculated in the 2014 actuarial valuation and will be amortized over a 20-year period with a 5-year ramp- up/ramp-down in accordance with Board policy. For more details, please refer to the experience study report that can be found at the following link: http://www.calpers.ca.gov/eip-docs/about/pubs/employer/ 2014-experience-study.pdf Economic Assumptions Discount Rate 7.5 percent compounded annually (net of expenses). This assumption is used for all plans. Termination Liability Discount Rate The discount rate used for termination valuation is a weighted average of the 10 and 30-year US Treasury yields in effect on the valuation date that equal the duration of the pension liabilities. For purposes of this hypothetical termination liability estimate, the discount rate used, 3.72 percent, is the yield on the 30-year US Treasury Separate Trading of Registered Interest and Principal of Securities (STRIPS) as of June 30, 2013. Please note, as of June 30, 2014 the 30-year STRIPS yield was 3.55 percent. Salary Growth Annual increases vary by category, entry age, and duration of service. A sample of assumed increases are shown below. Public Agency Miscellaneous Duration of Service (Entry Age 20) (Entry Age 30) (Entry Age 40) 0 0.1420 0.1240 0.0980 1 0.1190 0.1050 0.0850 2 0.1010 0.0910 0.0750 3 0.0880 0.0800 0.0670 4 0.0780 0.0710 0.0610 5 0.0700 0.0650 0.0560 10 0.0480 0.0460 0.0410 15 0.0430 0.0410 0.0360 20 0.0390 0.0370 0.0330 25 0.0360 0.0360 0.0330 30 0.0360 0.0360 0.0330 CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX A ACTUARIAL METHODS AND ASSUMPTIONS A-4 Salary Growth (continued) Public Agency Fire Duration of Service (Entry Age 20) (Entry Age 30) (Entry Age 40) 0 0.1050 0.1050 0.1020 1 0.0950 0.0940 0.0850 2 0.0870 0.0830 0.0700 3 0.0800 0.0750 0.0600 4 0.0740 0.0680 0.0510 5 0.0690 0.0620 0.0450 10 0.0510 0.0460 0.0350 15 0.0410 0.0390 0.0340 20 0.0370 0.0360 0.0330 25 0.0350 0.0350 0.0330 30 0.0350 0.0350 0.0330 Public Agency Police Duration of Service (Entry Age 20) (Entry Age 30) (Entry Age 40) 0 0.1090 0.1090 0.1090 1 0.0930 0.0930 0.0930 2 0.0810 0.0810 0.0780 3 0.0720 0.0700 0.0640 4 0.0650 0.0610 0.0550 5 0.0590 0.0550 0.0480 10 0.0450 0.0420 0.0340 15 0.0410 0.0390 0.0330 20 0.0370 0.0360 0.0330 25 0.0350 0.0340 0.0330 30 0.0350 0.0340 0.0330 Public Agency County Peace Officers Duration of Service (Entry Age 20) (Entry Age 30) (Entry Age 40) 0 0.1290 0.1290 0.1290 1 0.1090 0.1060 0.1030 2 0.0940 0.0890 0.0840 3 0.0820 0.0770 0.0710 4 0.0730 0.0670 0.0610 5 0.0660 0.0600 0.0530 10 0.0460 0.0420 0.0380 15 0.0410 0.0380 0.0360 20 0.0370 0.0360 0.0340 25 0.0350 0.0340 0.0330 30 0.0350 0.0340 0.0330 CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX A ACTUARIAL METHODS AND ASSUMPTIONS A-5 Schools Duration of Service (Entry Age 20) (Entry Age 30) (Entry Age 40) 0 0.1080 0.0960 0.0820 1 0.0940 0.0850 0.0740 2 0.0840 0.0770 0.0670 3 0.0750 0.0700 0.0620 4 0.0690 0.0640 0.0570 5 0.0630 0.0600 0.0530 10 0.0450 0.0440 0.0410 15 0.0390 0.0380 0.0350 20 0.0360 0.0350 0.0320 25 0.0340 0.0340 0.0320 30 0.0340 0.0340 0.0320  The Miscellaneous salary scale is used for Local Prosecutors.  The Police salary scale is used for Other Safety, Local Sheriff, and School Police. Overall Payroll Growth 3.00 percent compounded annually (used in projecting the payroll over which the unfunded liability is amortized). This assumption is used for all plans. Inflation 2.75 percent compounded annually. This assumption is used for all plans. Non-valued Potential Additional Liabilities The potential liability loss for a cost-of-living increase exceeding the 2.75 percent inflation assumption, and any potential liability loss from future member service purchases are not reflected in the valuation. Miscellaneous Loading Factors Credit for Unused Sick Leave Total years of service is increased by 1 percent for those plans that have accepted the provision providing Credit for Unused Sick Leave. Conversion of Employer Paid Member Contributions (EPMC) Total years of service is increased by the Employee Contribution Rate for those plans with the provision providing for the Conversion of Employer Paid Member Contributions (EPMC) during the final compensation period. Norris Decision (Best Factors) Employees hired prior to July 1, 1982 have projected benefit amounts increased in order to reflect the use of “Best Factors” in the calculation of optional benefit forms. This is due to a 1983 Supreme Court decision, known as the Norris decision, which required males and females to be treated equally in the determination of benefit amounts. Consequently, anyone already employed at that time is given the best possible conversion factor when optional benefits are determined. No loading is necessary for employees hired after July 1, 1982. Termination Liability The termination liabilities include a 7 percent contingency load. This load is for unforeseen improvements in mortality. Demographic Assumptions Pre-Retirement Mortality Non-Industrial Death Rates vary by age and gender. Industrial Death rates vary by age. See sample rates in table below. The non-industrial death rates are used for all plans. The industrial CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX A ACTUARIAL METHODS AND ASSUMPTIONS A-6 death rates are used for Safety Plans (except for Local Prosecutor safety members where the corresponding Miscellaneous Plan does not have the Industrial Death Benefit). Non-Industrial Death Industrial Death (Not Job-Related) (Job-Related) Age Male Female Male and Female 20 0.00047 0.00016 0.00003 25 0.00050 0.00026 0.00007 30 0.00053 0.00036 0.00010 35 0.00067 0.00046 0.00012 40 0.00087 0.00065 0.00013 45 0.00120 0.00093 0.00014 50 0.00176 0.00126 0.00015 55 0.00260 0.00176 0.00016 60 0.00395 0.00266 0.00017 65 0.00608 0.00419 0.00018 70 0.00914 0.00649 0.00019 75 0.01220 0.00878 0.00020 80 0.01527 0.01108 0.00021 Miscellaneous Plans usually have Industrial Death rates set to zero unless the agency has specifically contracted for Industrial Death benefits. If so, each Non-Industrial Death rate shown above will be split into two components; 99 percent will become the Non-Industrial Death rate and 1 percent will become the Industrial Death rate. Post-Retirement Mortality Rates vary by age, type of retirement and gender. See sample rates in table below. These rates are used for all plans. Healthy Recipients Non-Industrially Disabled Industrially Disabled (Not Job-Related) (Job-Related) Age Male Female Male Female Male Female 50 0.00239 0.00125 0.01632 0.01245 0.00443 0.00356 55 0.00474 0.00243 0.01936 0.01580 0.00563 0.00546 60 0.00720 0.00431 0.02293 0.01628 0.00777 0.00798 65 0.01069 0.00775 0.03174 0.01969 0.01388 0.01184 70 0.01675 0.01244 0.03870 0.03019 0.02236 0.01716 75 0.03080 0.02071 0.06001 0.03915 0.03585 0.02665 80 0.05270 0.03749 0.08388 0.05555 0.06926 0.04528 85 0.09775 0.07005 0.14035 0.09577 0.11799 0.08017 90 0.16747 0.12404 0.21554 0.14949 0.16575 0.13775 95 0.25659 0.21556 0.31025 0.23055 0.26108 0.23331 100 0.34551 0.31876 0.45905 0.37662 0.40918 0.35165 105 0.58527 0.56093 0.67923 0.61523 0.64127 0.60135 110 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 The mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study adopted by the CalPERS Board, first used in the June 30, 2009 valuation. For purposes of the post-retirement mortality rates, those revised rates include 5 years of projected on-going mortality improvement using Scale AA published by the Society of Actuaries until June 30, 2010. There is no margin for future mortality improvement beyond the valuation date. On February 19, 2014 the CalPERS Board adopted new recommended demographic assumption based on the most recent CalPERS Experience Study. These new actuarial assumptions will be implemented for the first time in the June 30, 2014 valuation. For purposes of the post-retirement mortality rates, the revised rates include 20 years of projected on-going mortality improvement using Scale BB published by the Society of Actuaries. CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX A ACTUARIAL METHODS AND ASSUMPTIONS A-7 Marital Status For active members, a percentage who are married upon retirement is assumed according to member category as shown in the following table. Member Category Percent Married Miscellaneous Member 85% Local Police 90% Local Fire 90% Other Local Safety 90% School Police 90% Age of Spouse It is assumed that female spouses are 3 years younger than male spouses. This assumption is used for all plans. Terminated Members It is assumed that terminated members refund immediately if non-vested. Terminated members who are vested are assumed to follow the same service retirement pattern as active members but with a load to reflect the expected higher rates of retirement, especially at lower ages. The following table shows the load factors that are applied to the service retirement assumption for active members to obtain the service retirement pattern for separated vested members: Age Load Factor 50 450% 51 250% 52 through 56 200% 57 through 60 150% 61 through 64 125% 65 and above 100% (no change) Termination with Refund Rates vary by entry age and service for Miscellaneous Plans. Rates vary by service for Safety Plans. See sample rates in tables below. Public Agency Miscellaneous Duration of Service Entry Age 20 Entry Age 25 Entry Age 30 Entry Age 35 Entry Age 40 Entry Age 45 0 0.1742 0.1674 0.1606 0.1537 0.1468 0.1400 1 0.1545 0.1477 0.1409 0.1339 0.1271 0.1203 2 0.1348 0.1280 0.1212 0.1142 0.1074 0.1006 3 0.1151 0.1083 0.1015 0.0945 0.0877 0.0809 4 0.0954 0.0886 0.0818 0.0748 0.0680 0.0612 5 0.0212 0.0193 0.0174 0.0155 0.0136 0.0116 10 0.0138 0.0121 0.0104 0.0088 0.0071 0.0055 15 0.0060 0.0051 0.0042 0.0032 0.0023 0.0014 20 0.0037 0.0029 0.0021 0.0013 0.0005 0.0001 25 0.0017 0.0011 0.0005 0.0001 0.0001 0.0001 30 0.0005 0.0001 0.0001 0.0001 0.0001 0.0001 35 0.0001 0.0001 0.0001 0.0001 0.0001 0.0001 CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX A ACTUARIAL METHODS AND ASSUMPTIONS A-8 Public Agency Safety Duration of Service Fire Police County Peace Officer 0 0.0710 0.1013 0.0997 1 0.0554 0.0636 0.0782 2 0.0398 0.0271 0.0566 3 0.0242 0.0258 0.0437 4 0.0218 0.0245 0.0414 5 0.0029 0.0086 0.0145 10 0.0009 0.0053 0.0089 15 0.0006 0.0027 0.0045 20 0.0005 0.0017 0.0020 25 0.0003 0.0012 0.0009 30 0.0003 0.0009 0.0006 35 0.0003 0.0009 0.0006 The Police Termination and Refund rates are also used for Public Agency Local Prosecutors, Other Safety, Local Sheriff and School Police. Schools Duration of Service Entry Age 20 Entry Age 25 Entry Age 30 Entry Age 35 Entry Age 40 Entry Age 45 0 0.1730 0.1627 0.1525 0.1422 0.1319 0.1217 1 0.1585 0.1482 0.1379 0.1277 0.1174 0.1071 2 0.1440 0.1336 0.1234 0.1131 0.1028 0.0926 3 0.1295 0.1192 0.1089 0.0987 0.0884 0.0781 4 0.1149 0.1046 0.0944 0.0841 0.0738 0.0636 5 0.0278 0.0249 0.0221 0.0192 0.0164 0.0135 10 0.0172 0.0147 0.0122 0.0098 0.0074 0.0049 15 0.0115 0.0094 0.0074 0.0053 0.0032 0.0011 20 0.0073 0.0055 0.0038 0.0020 0.0002 0.0002 25 0.0037 0.0023 0.0010 0.0002 0.0002 0.0002 30 0.0015 0.0003 0.0002 0.0002 0.0002 0.0002 35 0.0002 0.0002 0.0002 0.0002 0.0002 0.0002 Termination with Vested Benefits Rates vary by entry age and service for Miscellaneous Plans. Rates vary by service for Safety Plans. See sample rates in tables below. Public Agency Miscellaneous Duration of Service Entry Age 20 Entry Age 25 Entry Age 30 Entry Age 35 Entry Age 40 5 0.0656 0.0597 0.0537 0.0477 0.0418 10 0.0530 0.0466 0.0403 0.0339 0.0000 15 0.0443 0.0373 0.0305 0.0000 0.0000 20 0.0333 0.0261 0.0000 0.0000 0.0000 25 0.0212 0.0000 0.0000 0.0000 0.0000 30 0.0000 0.0000 0.0000 0.0000 0.0000 35 0.0000 0.0000 0.0000 0.0000 0.0000 CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX A ACTUARIAL METHODS AND ASSUMPTIONS A-9 Public Agency Safety Duration of Service Fire Police County Peace Officer 5 0.0162 0.0163 0.0265 10 0.0061 0.0126 0.0204 15 0.0058 0.0082 0.0130 20 0.0053 0.0065 0.0074 25 0.0047 0.0058 0.0043 30 0.0045 0.0056 0.0030 35 0.0000 0.0000 0.0000  When a member is eligible to retire, the termination with vested benefits probability is set to zero.  After termination with vested benefits, a miscellaneous member is assumed to retire at age 59 and a safety member at age 54.  The Police Termination with vested benefits rates are also used for Public Agency Local Prosecutors, Other Safety, Local Sheriff and School Police. Schools Duration of Service Entry Age 20 Entry Age 25 Entry Age 30 Entry Age 35 Entry Age 40 5 0.0816 0.0733 0.0649 0.0566 0.0482 10 0.0629 0.0540 0.0450 0.0359 0.0000 15 0.0537 0.0440 0.0344 0.0000 0.0000 20 0.0420 0.0317 0.0000 0.0000 0.0000 25 0.0291 0.0000 0.0000 0.0000 0.0000 30 0.0000 0.0000 0.0000 0.0000 0.0000 35 0.0000 0.0000 0.0000 0.0000 0.0000 Non-Industrial (Not Job-Related) Disability Rates vary by age and gender for Miscellaneous Plans. Rates vary by age and category for Safety Plans. Miscellaneous Fire Police County Peace Officer Schools Age Male Female Male and Female Male and Female Male and Female Male Female 20 0.0001 0.0001 0.0001 0.0001 0.0001 0.0001 0.0001 25 0.0001 0.0001 0.0001 0.0001 0.0001 0.0001 0.0001 30 0.0002 0.0002 0.0001 0.0002 0.0001 0.0002 0.0001 35 0.0006 0.0009 0.0001 0.0003 0.0004 0.0006 0.0004 40 0.0015 0.0016 0.0001 0.0004 0.0007 0.0014 0.0009 45 0.0025 0.0024 0.0002 0.0005 0.0013 0.0028 0.0017 50 0.0033 0.0031 0.0005 0.0008 0.0018 0.0044 0.0030 55 0.0037 0.0031 0.0010 0.0013 0.0010 0.0049 0.0034 60 0.0038 0.0025 0.0015 0.0020 0.0006 0.0043 0.0024  The Miscellaneous Non-Industrial Disability rates are used for Local Prosecutors.  The Police Non-Industrial Disability rates are also used for Other Safety, Local Sheriff and School Police. CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX A ACTUARIAL METHODS AND ASSUMPTIONS A-10 Industrial (Job-Related) Disability Rates vary by age and category. Age Fire Police County Peace Officer 20 0.0002 0.0007 0.0003 25 0.0012 0.0032 0.0015 30 0.0025 0.0064 0.0031 35 0.0037 0.0097 0.0046 40 0.0049 0.0129 0.0063 45 0.0061 0.0161 0.0078 50 0.0074 0.0192 0.0101 55 0.0721 0.0668 0.0173 60 0.0721 0.0668 0.0173  The Police Industrial Disability rates are also used for Local Sheriff and Other Safety.  Fifty Percent of the Police Industrial Disability rates are used for School Police.  One Percent of the Police Industrial Disability rates are used for Local Prosecutors.  Normally, rates are zero for Miscellaneous Plans unless the agency has specifically contracted for Industrial Disability benefits. If so, each miscellaneous non-industrial disability rate will be split into two components: 50 percent will become the Non-Industrial Disability rate and 50 percent will become the Industrial Disability rate. Service Retirement Retirement rates vary by age, service, and formula, except for the safety ½ @ 55 and 2% @ 55 formulas, where retirement rates vary by age only. CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX A ACTUARIAL METHODS AND ASSUMPTIONS A-11 Service Retirement Public Agency Miscellaneous 1.5% @ 65 Duration of Service Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years 50 0.008 0.011 0.013 0.015 0.017 0.019 51 0.007 0.010 0.012 0.013 0.015 0.017 52 0.010 0.014 0.017 0.019 0.021 0.024 53 0.008 0.012 0.015 0.017 0.019 0.022 54 0.012 0.016 0.019 0.022 0.025 0.028 55 0.018 0.025 0.031 0.035 0.038 0.043 56 0.015 0.021 0.025 0.029 0.032 0.036 57 0.020 0.028 0.033 0.038 0.043 0.048 58 0.024 0.033 0.040 0.046 0.052 0.058 59 0.028 0.039 0.048 0.054 0.060 0.067 60 0.049 0.069 0.083 0.094 0.105 0.118 61 0.062 0.087 0.106 0.120 0.133 0.150 62 0.104 0.146 0.177 0.200 0.223 0.251 63 0.099 0.139 0.169 0.191 0.213 0.239 64 0.097 0.136 0.165 0.186 0.209 0.233 65 0.140 0.197 0.240 0.271 0.302 0.339 66 0.092 0.130 0.157 0.177 0.198 0.222 67 0.129 0.181 0.220 0.249 0.277 0.311 68 0.092 0.129 0.156 0.177 0.197 0.221 69 0.092 0.130 0.158 0.178 0.199 0.224 70 0.103 0.144 0.175 0.198 0.221 0.248 Public Agency Miscellaneous 2% @ 60 Duration of Service Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years 50 0.011 0.015 0.018 0.021 0.023 0.026 51 0.009 0.013 0.016 0.018 0.020 0.023 52 0.013 0.018 0.022 0.025 0.028 0.031 53 0.011 0.016 0.019 0.022 0.025 0.028 54 0.015 0.021 0.025 0.028 0.032 0.036 55 0.023 0.032 0.039 0.044 0.049 0.055 56 0.019 0.027 0.032 0.037 0.041 0.046 57 0.025 0.035 0.042 0.048 0.054 0.060 58 0.030 0.042 0.051 0.058 0.065 0.073 59 0.035 0.049 0.060 0.068 0.076 0.085 60 0.062 0.087 0.105 0.119 0.133 0.149 61 0.079 0.110 0.134 0.152 0.169 0.190 62 0.132 0.186 0.225 0.255 0.284 0.319 63 0.126 0.178 0.216 0.244 0.272 0.305 64 0.122 0.171 0.207 0.234 0.262 0.293 65 0.173 0.243 0.296 0.334 0.373 0.418 66 0.114 0.160 0.194 0.219 0.245 0.274 67 0.159 0.223 0.271 0.307 0.342 0.384 68 0.113 0.159 0.193 0.218 0.243 0.273 69 0.114 0.161 0.195 0.220 0.246 0.276 70 0.127 0.178 0.216 0.244 0.273 0.306 CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX A ACTUARIAL METHODS AND ASSUMPTIONS A-12 Service Retirement Public Agency Miscellaneous 2% @ 55 Duration of Service Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years 50 0.015 0.020 0.024 0.029 0.033 0.039 51 0.013 0.016 0.020 0.024 0.027 0.033 52 0.014 0.018 0.022 0.027 0.030 0.036 53 0.017 0.022 0.027 0.032 0.037 0.043 54 0.027 0.034 0.041 0.049 0.056 0.067 55 0.050 0.064 0.078 0.094 0.107 0.127 56 0.045 0.057 0.069 0.083 0.095 0.113 57 0.048 0.061 0.074 0.090 0.102 0.122 58 0.052 0.066 0.080 0.097 0.110 0.131 59 0.060 0.076 0.092 0.111 0.127 0.151 60 0.072 0.092 0.112 0.134 0.153 0.182 61 0.089 0.113 0.137 0.165 0.188 0.224 62 0.128 0.162 0.197 0.237 0.270 0.322 63 0.129 0.164 0.199 0.239 0.273 0.325 64 0.116 0.148 0.180 0.216 0.247 0.294 65 0.174 0.221 0.269 0.323 0.369 0.439 66 0.135 0.171 0.208 0.250 0.285 0.340 67 0.133 0.169 0.206 0.247 0.282 0.336 68 0.118 0.150 0.182 0.219 0.250 0.297 69 0.116 0.147 0.179 0.215 0.246 0.293 70 0.138 0.176 0.214 0.257 0.293 0.349 Public Agency Miscellaneous 2.5% @ 55 Duration of Service Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years 50 0.026 0.033 0.040 0.048 0.055 0.062 51 0.021 0.026 0.032 0.038 0.043 0.049 52 0.021 0.026 0.032 0.038 0.043 0.049 53 0.026 0.033 0.040 0.048 0.055 0.062 54 0.043 0.054 0.066 0.078 0.089 0.101 55 0.088 0.112 0.136 0.160 0.184 0.208 56 0.055 0.070 0.085 0.100 0.115 0.130 57 0.061 0.077 0.094 0.110 0.127 0.143 58 0.072 0.091 0.111 0.130 0.150 0.169 59 0.083 0.105 0.128 0.150 0.173 0.195 60 0.088 0.112 0.136 0.160 0.184 0.208 61 0.083 0.105 0.128 0.150 0.173 0.195 62 0.121 0.154 0.187 0.220 0.253 0.286 63 0.105 0.133 0.162 0.190 0.219 0.247 64 0.105 0.133 0.162 0.190 0.219 0.247 65 0.143 0.182 0.221 0.260 0.299 0.338 66 0.105 0.133 0.162 0.190 0.219 0.247 67 0.105 0.133 0.162 0.190 0.219 0.247 68 0.105 0.133 0.162 0.190 0.219 0.247 69 0.105 0.133 0.162 0.190 0.219 0.247 70 0.125 0.160 0.194 0.228 0.262 0.296 CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX A ACTUARIAL METHODS AND ASSUMPTIONS A-13 Service Retirement Public Agency Miscellaneous 2.7% @ 55 Duration of Service Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years 50 0.028 0.035 0.043 0.050 0.058 0.065 51 0.022 0.028 0.034 0.040 0.046 0.052 52 0.022 0.028 0.034 0.040 0.046 0.052 53 0.028 0.035 0.043 0.050 0.058 0.065 54 0.044 0.056 0.068 0.080 0.092 0.104 55 0.091 0.116 0.140 0.165 0.190 0.215 56 0.061 0.077 0.094 0.110 0.127 0.143 57 0.063 0.081 0.098 0.115 0.132 0.150 58 0.074 0.095 0.115 0.135 0.155 0.176 59 0.083 0.105 0.128 0.150 0.173 0.195 60 0.088 0.112 0.136 0.160 0.184 0.208 61 0.085 0.109 0.132 0.155 0.178 0.202 62 0.124 0.158 0.191 0.225 0.259 0.293 63 0.107 0.137 0.166 0.195 0.224 0.254 64 0.107 0.137 0.166 0.195 0.224 0.254 65 0.146 0.186 0.225 0.265 0.305 0.345 66 0.107 0.137 0.166 0.195 0.224 0.254 67 0.107 0.137 0.166 0.195 0.224 0.254 68 0.107 0.137 0.166 0.195 0.224 0.254 69 0.107 0.137 0.166 0.195 0.224 0.254 70 0.129 0.164 0.199 0.234 0.269 0.304 Public Agency Miscellaneous 3% @ 60 Duration of Service Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years 50 0.026 0.033 0.040 0.048 0.055 0.062 51 0.021 0.026 0.032 0.038 0.043 0.049 52 0.019 0.025 0.030 0.035 0.040 0.046 53 0.025 0.032 0.038 0.045 0.052 0.059 54 0.039 0.049 0.060 0.070 0.081 0.091 55 0.083 0.105 0.128 0.150 0.173 0.195 56 0.055 0.070 0.085 0.100 0.115 0.130 57 0.061 0.077 0.094 0.110 0.127 0.143 58 0.072 0.091 0.111 0.130 0.150 0.169 59 0.080 0.102 0.123 0.145 0.167 0.189 60 0.094 0.119 0.145 0.170 0.196 0.221 61 0.088 0.112 0.136 0.160 0.184 0.208 62 0.127 0.161 0.196 0.230 0.265 0.299 63 0.110 0.140 0.170 0.200 0.230 0.260 64 0.110 0.140 0.170 0.200 0.230 0.260 65 0.149 0.189 0.230 0.270 0.311 0.351 66 0.110 0.140 0.170 0.200 0.230 0.260 67 0.110 0.140 0.170 0.200 0.230 0.260 68 0.110 0.140 0.170 0.200 0.230 0.260 69 0.110 0.140 0.170 0.200 0.230 0.260 70 0.132 0.168 0.204 0.240 0.276 0.312 CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX A ACTUARIAL METHODS AND ASSUMPTIONS A-14 Service Retirement Public Agency Miscellaneous 2% @ 62 Duration of Service Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years 50 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 51 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 52 0.0103 0.0132 0.0160 0.0188 0.0216 0.0244 53 0.0131 0.0167 0.0202 0.0238 0.0273 0.0309 54 0.0213 0.0272 0.0330 0.0388 0.0446 0.0504 55 0.0440 0.0560 0.0680 0.0800 0.0920 0.1040 56 0.0303 0.0385 0.0468 0.0550 0.0633 0.0715 57 0.0363 0.0462 0.0561 0.0660 0.0759 0.0858 58 0.00465 0.0592 0.0718 0.0845 0.0972 0.1099 59 0.0578 0.0735 0.0893 0.1050 0.1208 0.1365 60 0.0616 0.0784 0.0952 0.1120 0.1288 0.1456 61 0.0888 0.0788 0.0956 0.1125 0.1294 0.1463 62 0.0941 0.1232 0.1496 0.1760 0.2024 0.2288 63 0.1287 0.1131 0.1373 0.1615 0.1857 0.2100 64 0.1045 0.1197 0.1454 0.1710 0.1967 0.2223 65 0.1045 0.1638 0.1989 0.2340 0.2691 0.3042 66 0.1045 0.1330 0.1615 0.1900 0.2185 0.2470 67 0.1045 0.1330 0.1615 0.1900 0.2185 0.2470 68 0.1045 0.1330 0.1615 0.1900 0.2185 0.2470 69 0.1045 0.1330 0.1615 0.1900 0.2185 0.2470 70 0.1254 0.1596 0.1938 0.2280 0.2622 0.9640 Service Retirement Public Agency Fire ½ @ 55 and 2% @ 55 Age 50 51 52 53 54 55 Rate 0.01588 0.00000 0.03442 0.01990 0.04132 0.07513 Age 56 57 58 59 60 Rate 0.11079 0.00000 0.09499 0.04409 1.00000 Public Agency Police ½ @ 55 and 2% @ 55 Age 50 51 52 53 54 55 Rate 0.02552 0.00000 0.01637 0.02717 0.00949 0.16674 Age 56 57 58 59 60 Rate 0.06921 0.05113 0.07241 0.07043 1.00000 CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX A ACTUARIAL METHODS AND ASSUMPTIONS A-15 Service Retirement Public Agency Police 2% @ 50 Duration of Service Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years 50 0.014 0.014 0.014 0.014 0.025 0.045 51 0.012 0.012 0.012 0.012 0.023 0.040 52 0.026 0.026 0.026 0.026 0.048 0.086 53 0.052 0.052 0.052 0.052 0.096 0.171 54 0.070 0.070 0.070 0.070 0.128 0.227 55 0.090 0.090 0.090 0.090 0.165 0.293 56 0.064 0.064 0.064 0.064 0.117 0.208 57 0.071 0.071 0.071 0.071 0.130 0.232 58 0.063 0.063 0.063 0.063 0.115 0.205 59 0.140 0.140 0.140 0.140 0.174 0.254 60 0.140 0.140 0.140 0.140 0.172 0.251 61 0.140 0.140 0.140 0.140 0.172 0.251 62 0.140 0.140 0.140 0.140 0.172 0.251 63 0.140 0.140 0.140 0.140 0.172 0.251 64 0.140 0.140 0.140 0.140 0.172 0.251 65 1.000 1.000 1.000 1.000 1.000 1.000  These rates also apply to Local Prosecutors, Local Sheriff, School Police and Other Safety. Service Retirement Public Agency Fire 2% @ 50 Duration of Service Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years 50 0.007 0.007 0.007 0.007 0.010 0.015 51 0.008 0.008 0.008 0.008 0.013 0.019 52 0.017 0.017 0.017 0.017 0.027 0.040 53 0.047 0.047 0.047 0.047 0.072 0.107 54 0.064 0.064 0.064 0.064 0.098 0.147 55 0.087 0.087 0.087 0.087 0.134 0.200 56 0.078 0.078 0.078 0.078 0.120 0.180 57 0.090 0.090 0.090 0.090 0.139 0.208 58 0.079 0.079 0.079 0.079 0.122 0.182 59 0.073 0.073 0.073 0.073 0.112 0.168 60 0.114 0.114 0.114 0.114 0.175 0.262 61 0.114 0.114 0.114 0.114 0.175 0.262 62 0.114 0.114 0.114 0.114 0.175 0.262 63 0.114 0.114 0.114 0.114 0.175 0.262 64 0.114 0.114 0.114 0.114 0.175 0.262 65 1.000 1.000 1.000 1.000 1.000 1.000 CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX A ACTUARIAL METHODS AND ASSUMPTIONS A-16 Service Retirement Public Agency Police 3% @ 55 Duration of Service Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years 50 0.019 0.019 0.019 0.019 0.040 0.060 51 0.024 0.024 0.024 0.024 0.049 0.074 52 0.024 0.024 0.024 0.024 0.051 0.077 53 0.059 0.059 0.059 0.059 0.121 0.183 54 0.069 0.069 0.069 0.069 0.142 0.215 55 0.116 0.116 0.116 0.116 0.240 0.363 56 0.076 0.076 0.076 0.076 0.156 0.236 57 0.058 0.058 0.058 0.058 0.120 0.181 58 0.076 0.076 0.076 0.076 0.157 0.237 59 0.094 0.094 0.094 0.094 0.193 0.292 60 0.141 0.141 0.141 0.141 0.290 0.438 61 0.094 0.094 0.094 0.094 0.193 0.292 62 0.118 0.118 0.118 0.118 0.241 0.365 63 0.094 0.094 0.094 0.094 0.193 0.292 64 0.094 0.094 0.094 0.094 0.193 0.292 65 1.000 1.000 1.000 1.000 1.000 1.000  These rates also apply to Local Prosecutors, Local Sheriff, School Police and Other Safety. Service Retirement Public Agency Fire 3% @ 55 Duration of Service Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years 50 0.012 0.012 0.012 0.018 0.028 0.033 51 0.008 0.008 0.008 0.012 0.019 0.022 52 0.018 0.018 0.018 0.027 0.042 0.050 53 0.043 0.043 0.043 0.062 0.098 0.114 54 0.057 0.057 0.057 0.083 0.131 0.152 55 0.092 0.092 0.092 0.134 0.211 0.246 56 0.081 0.081 0.081 0.118 0.187 0.218 57 0.100 0.100 0.100 0.146 0.230 0.268 58 0.081 0.081 0.081 0.119 0.187 0.219 59 0.078 0.078 0.078 0.113 0.178 0.208 60 0.117 0.117 0.117 0.170 0.267 0.312 61 0.078 0.078 0.078 0.113 0.178 0.208 62 0.098 0.098 0.098 0.141 0.223 0.260 63 0.078 0.078 0.078 0.113 0.178 0.208 64 0.078 0.078 0.078 0.113 0.178 0.208 65 1.000 1.000 1.000 1.000 1.000 1.000 CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX A ACTUARIAL METHODS AND ASSUMPTIONS A-17 Service Retirement Public Agency Police 2% @ 57 Duration of Service Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years 50 0.0110 0.0110 0.0110 0.0110 0.0202 0.0361 51 0.0086 0.0086 0.0086 0.0086 0.0158 0.0281 52 0.0183 0.0183 0.0183 0.0183 0.0336 0.0599 53 0.0366 0.0366 0.0366 0.0366 0.0670 0.1194 54 0.0488 0.0488 0.0488 0.0488 0.0893 0.1592 55 0.0629 0.0629 0.0629 0.0629 0.1152 0.2052 56 0.0447 0.0447 0.0447 0.0447 0.0816 0.1455 57 0.0640 0.0640 0.0640 0.0640 0.1170 0.2086 58 0.0471 0.0471 0.0471 0.0471 0.0862 0.1537 59 0.1047 0.1047 0.1047 0.1047 0.1301 0.1908 60 0.1047 0.1047 0.1047 0.1047 0.1289 0.1880 61 0.1047 0.1047 0.1047 0.1047 0.1289 0.1880 62 0.1047 0.1047 0.1047 0.1047 0.1289 0.1880 63 0.1047 0.1047 0.1047 0.1047 0.1289 0.1880 64 0.1047 0.1047 0.1047 0.1047 0.1289 0.1880 65 1.0000 1.0000 1.0000 1.0000 1.0000 1.000  These rates also apply to Local Prosecutors, Local Sheriff, School Police and Other Safety. Service Retirement Public Agency Fire 2% @ 57 Duration of Service Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years 50 0.0052 0.0052 0.0052 0.0052 0.0081 0.0121 51 0.0057 0.0057 0.0057 0.0057 0.0088 0.0131 52 0.0121 0.0121 0.0121 0.0121 0.0187 0.0280 53 0.0326 0.0326 0.0326 0.0326 0.0501 0.0750 54 0.0447 0.0447 0.0447 0.0447 0.0688 0.1030 55 0.0608 0.0608 0.0608 0.0608 0.0935 01400 56 0.0545 0.0545 0.0545 0.0545 0.0840 0.1257 57 0.0811 0.0811 0.0811 0.0811 0.01248 0.1869 58 0.0593 0.0593 0.0593 0.0593 0.0913 0.1366 59 0.0547 0.0547 0.0547 0.0547 0.0842 0.1261 60 0.0851 0.0851 0.0851 0.0851 0.1310 0.1961 61 0.0852 0.0852 0.0852 0.0852 0.1312 0.1964 62 0.0852 0.0852 0.0852 0.0852 0.1312 0.1964 63 0.0852 0.0852 0.0852 0.0852 0.1312 0.1964 64 0.0852 0.0852 0.0852 0.0852 0.1312 0.1964 65 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX A ACTUARIAL METHODS AND ASSUMPTIONS A-18 Service Retirement Public Agency Police 2.5% @ 57 Duration of Service Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years 50 0.0138 0.0138 0.0138 0.0138 0.0253 0.0451 51 0.0117 0.0117 0.0117 0.0117 0.0215 0.0382 52 0.0249 0.0249 0.0249 0.0249 0.0456 0.0812 53 0.0471 0.0471 0.0471 0.0471 0.0861 0.1535 54 0.0627 0.0627 0.0627 0.0627 0.1148 0.2047 55 0.0764 0.0764 0.0764 0.0764 0.1398 0.2492 56 0.0542 0.0542 0.0542 0.0542 0.0991 0.1767 57 0.0711 0.0711 0.0711 0.0711 0.1300 0.2318 58 0.0565 0.0565 0.0565 0.0565 0.1034 0.1844 59 0.1256 0.1256 0.1256 0.1256 0.1562 0.2290 60 0.1256 0.1256 0.1256 0.1256 0.1547 0.2255 61 0.1256 0.1256 0.1256 0.1256 0.1547 0.2255 62 0.1256 0.1256 0.1256 0.1256 0.1547 0.2255 63 0.1256 0.1256 0.1256 0.1256 0.1547 0.2255 64 0.1256 0.1256 0.1256 0.1256 0.1547 0.2255 65 1.0000 1.0000 1.0000 1.0000 1.0000 1.000  These rates also apply to Local Prosecutors, Local Sheriff, School Police and Other Safety. Service Retirement Public Agency Fire 2.5% @ 57 Duration of Service Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years 50 0.0065 0.0065 0.0065 0.0065 0.0101 0.0151 51 0.0077 0.0077 0.0077 0.0077 0.0119 0.0178 52 0.0164 0.0164 0.0164 0.0164 0.0254 0.0380 53 0.0419 0.0419 0.0419 0.0419 0.0644 0.0965 54 0.0574 0.0574 0.0574 0.0574 0.0885 0.1324 55 0.0738 0.0738 0.0738 0.0738 0.1136 01700 56 0.0662 0.0662 0.0662 0.0662 0.1020 0.2077 57 0.0901 0.0901 0.0901 0.0901 0.1387 0.1639 58 0.0711 0.0711 0.0711 0.0711 0.1095 0.1513 59 0.0656 0.0656 0.0656 0.0656 0.1011 0.2354 60 0.1022 0.1022 0.1022 0.1022 0.1572 0.2356 61 0.1022 0.1022 0.1022 0.1022 0.1574 0.2356 62 0.1022 0.1022 0.1022 0.1022 0.1574 0.2356 63 0.1022 0.1022 0.1022 0.1022 0.1574 0.2356 64 0.1022 0.1022 0.1022 0.1022 0.1574 0.2356 65 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX A ACTUARIAL METHODS AND ASSUMPTIONS A-19 Service Retirement Public Agency Police 2.7% @ 57 Duration of Service Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years 50 0.0138 0.0138 0.0138 0.0138 0.0253 0.0451 51 0.0123 0.0123 0.0123 0.0123 0.0226 0.0402 52 0.0249 0.0249 0.0249 0.0249 0.0456 0.0812 53 0.0497 0.0497 0.0497 0.0497 0.0909 0.1621 54 0.0662 0.0662 0.0662 0.0662 0.1211 0.2160 55 0.0854 0.0854 0.0854 0.0854 0.1563 0.2785 56 0.0606 0.0606 0.0606 0.0606 0.1108 0.1975 57 0.0711 0.0711 0.0711 0.0711 0.1300 0.2318 58 0.0628 0.0628 0.0628 0.0628 0.1149 0.2049 59 0.1396 0.1396 0.1396 0.1396 0.1735 0.2544 60 0.1396 0.1396 0.1396 0.1396 0.1719 0.2506 61 0.1396 0.1396 0.1396 0.1396 0.1719 0.2506 62 0.1396 0.1396 0.1396 0.1396 0.1719 0.2506 63 0.1396 0.1396 0.1396 0.1396 0.1719 0.2506 64 0.1396 0.1396 0.1396 0.1396 0.1719 0.2506 65 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000  These rates also apply to Local Prosecutors, Local Sheriff, School Police and Other Safety. Service Retirement Public Agency Fire 2.7% @ 57 Duration of Service Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years 50 0.0065 0.0065 0.0065 0.0065 0.0101 0.0151 51 0.0081 0.0081 0.0081 0.0081 0.0125 0.0187 52 0.0164 0.0164 0.0164 0.0164 0.0254 0.0380 53 0.0442 0.0442 0.0442 0.0442 0.0680 0.1018 54 0.0606 0.0606 0.0606 0.0606 0.0934 0.1397 55 0.0825 0.0825 0.0825 0.0825 0.1269 01900 56 0.0740 0.0740 0.0740 0.0740 0.1140 0.1706 57 0.0901 0.0901 0.0901 0.0901 0.1387 0.2077 58 0.0790 0.0790 0.0790 0.0790 0.1217 0.1821 59 0.0729 0.0729 0.0729 0.0729 0.1123 0.1681 60 0.1135 0.1135 0.1135 0.1135 0.1747 0.2615 61 0.1136 0.1136 0.1136 0.1136 0.1749 0.2618 62 0.1136 0.1136 0.1136 0.1136 0.1749 0.2618 63 0.1136 0.1136 0.1136 0.1136 0.1749 0.2618 64 0.1136 0.1136 0.1136 0.1136 0.1749 0.2618 65 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX A ACTUARIAL METHODS AND ASSUMPTIONS A-20 Service Retirement Schools 2% @ 55 Duration of Service Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years 50 0.005 0.009 0.013 0.015 0.016 0.018 51 0.005 0.010 0.014 0.017 0.019 0.021 52 0.006 0.012 0.017 0.020 0.022 0.025 53 0.007 0.014 0.019 0.023 0.026 0.029 54 0.012 0.024 0.033 0.039 0.044 0.049 55 0.024 0.048 0.067 0.079 0.088 0.099 56 0.020 0.039 0.055 0.065 0.072 0.081 57 0.021 0.042 0.059 0.070 0.078 0.087 58 0.025 0.050 0.070 0.083 0.092 0.103 59 0.029 0.057 0.080 0.095 0.105 0.118 60 0.037 0.073 0.102 0.121 0.134 0.150 61 0.046 0.090 0.126 0.149 0.166 0.186 62 0.076 0.151 0.212 0.250 0.278 0.311 63 0.069 0.136 0.191 0.225 0.251 0.281 64 0.067 0.133 0.185 0.219 0.244 0.273 65 0.091 0.180 0.251 0.297 0.331 0.370 66 0.072 0.143 0.200 0.237 0.264 0.295 67 0.067 0.132 0.185 0.218 0.243 0.272 68 0.060 0.118 0.165 0.195 0.217 0.243 69 0.067 0.133 0.187 0.220 0.246 0.275 70 0.066 0.131 0.183 0.216 0.241 0.270 Miscellaneous Superfunded Status Prior to enactment of the Public Employees’ Pension Reform Act (PEPRA) that became effective January 1, 2013, a plan in superfunded status (actuarial value of assets exceeding present value of benefits) would normally pay a zero employer contribution rate while also being permitted to use its superfunded assets to pay its employees’ normal member contributions. However, Section 7522.52(a) of PEPRA states, “In any fiscal year a public employer’s contribution to a defined benefit plan, in combination with employee contributions to that defined benefit plan, shall not be less than the total normal cost rate…” This means that not only must employers pay their employer normal cost regardless of plan surplus, but also, employers may no longer use superfunded assets to pay employee normal member contributions. Internal Revenue Code Section 415 The limitations on benefits imposed by Internal Revenue Code Section 415 are taken into account in this valuation. Each year the impact of any changes in this limitation since the prior valuation is included and amortized as part of the actuarial gain or loss base. This results in lower contributions for those employers contributing to the Replacement Benefit Fund and protects CalPERS from prefunding expected benefits in excess of limits imposed by federal tax law. CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX A ACTUARIAL METHODS AND ASSUMPTIONS A-21 Internal Revenue Code Section 401(a)(17) The limitations on compensation imposed by Internal Revenue Code Section 401(a)(17) are taken into account in this valuation. Each year, the impact of any changes in the compensation limitation since the prior valuation is included and amortized as part of the actuarial gain or loss base. PEPRA Assumptions The Public Employees’ Pension Reform Act of 2013 (PEPRA) mandated new benefit formulas and new member contributions for new members (as defined by PEPRA) hired after January 1, 2013. For non-pooled plans, these new members will first be reflected in the June 30, 2013 non-pooled plan valuations. New members in pooled plans will first be reflected in the new Miscellaneous and Safety risk pools created by the CalPERS Board in November 2012 in response to the passage of PEPRA, also beginning with the June 30, 2013 valuation. Different assumptions for these new PEPRA members are disclosed above. THIS PAGE INTENTIONALLY LEFT BLANK APPENDIX B PRINCIPAL PLAN PROVISIONS THIS PAGE INTENTIONALLY LEFT BLANK CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX B MISCELLANEOUS PLAN OF THE CITY OF PALO ALTO PRINCIPAL PLAN PROVISIONS B-1 The following is a description of the principal plan provisions used in calculating costs and liabilities. We have indicated whether a plan provision is standard or optional. Standard benefits are applicable to all members while optional benefits vary among employers. Optional benefits that apply to a single period of time, such as Golden Handshakes, have not been included. Many of the statements in this summary are general in nature, and are intended to provide an easily understood summary of the complex Public Employees’ Retirement Law. The law itself governs in all situations. PEPRA Benefit Changes The Public Employees’ Pension Reform Act of 2013 (PEPRA) requires new benefits and member contributions for new members as defined by PEPRA, that are hired after January 1, 2013. These PEPRA members are reflected in your June 30, 2013 actuarial valuation. Members in pooled plans are reflected in the new Miscellaneous and Safety risk pools created by the CalPERS Board in November 2012 in response to the passage of PEPRA, beginning with the June 30, 2013 valuation. Service Retirement Eligibility A classic CalPERS member or PEPRA Safety member becomes eligible for Service Retirement upon attainment of age 50 with at least 5 years of credited service (total service across all CalPERS employers, and with certain other Retirement Systems with which CalPERS has reciprocity agreements). For employees hired into a plan with the 1.5% at 65 formula, eligibility for service retirement is age 55 with at least 5 years of service. PEPRA miscellaneous members become eligible for Service Retirement upon attainment of age 52 with at least 5 years of service. Benefit The Service Retirement benefit is a monthly allowance equal to the product of the benefit factor, years of service, and final compensation.  The benefit factor depends on the benefit formula specified in your agency’s contract. The table below shows the factors for each of the available formulas. Factors vary by the member’s age at retirement. Listed are the factors for retirement at whole year ages: Miscellaneous Plan Formulas Retirement Age 1.5% at 65 2% at 60 2% at 55 2.5% at 55 2.7% at 55 3% at 60 PEPRA 2% at 62 50 0.5000% 1.092% 1.426% 2.000% 2.000% 2.000% N/A 51 0.5667% 1.156% 1.522% 2.100% 2.140% 2.100% N/A 52 0.6334% 1.224% 1.628% 2.200% 2.280% 2.200% 1.000% 53 0.7000% 1.296% 1.742% 2.300% 2.420% 2.300% 1.100% 54 0.7667% 1.376% 1.866% 2.400% 2.560% 2.400% 1.200% 55 0.8334% 1.460% 2.000% 2.500% 2.700% 2.500% 1.300% 56 0.9000% 1.552% 2.052% 2.500% 2.700% 2.600% 1.400% 57 0.9667% 1.650% 2.104% 2.500% 2.700% 2.700% 1.500% 58 1.0334% 1.758% 2.156% 2.500% 2.700% 2.800% 1.600% 59 1.1000% 1.874% 2.210% 2.500% 2.700% 2.900% 1.700% 60 1.1667% 2.000% 2.262% 2.500% 2.700% 3.000% 1.800% 61 1.2334% 2.134% 2.314% 2.500% 2.700% 3.000% 1.900% 62 1.3000% 2.272% 2.366% 2.500% 2.700% 3.000% 2.000% CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX B MISCELLANEOUS PLAN OF THE CITY OF PALO ALTO PRINCIPAL PLAN PROVISIONS B-2 63 1.3667% 2.418% 2.418% 2.500% 2.700% 3.000% 2.100% 64 1.4334% 2.418% 2.418% 2.500% 2.700% 3.000% 2.200% 65 1.5000% 2.418% 2.418% 2.500% 2.700% 3.000% 2.300% 66 1.5000% 2.418% 2.418% 2.500% 2.700% 3.000% 2.400% 67 & up 1.5000% 2.418% 2.418% 2.500% 2.700% 3.000% 2.500% Safety Plan Formulas Retirement Age ½ at 55 * 2% at 55 2% at 50 3% at 55 3% at 50 50 1.783% 1.426% 2.000% 2.400% 3.000% 51 1.903% 1.522% 2.140% 2.520% 3.000% 52 2.035% 1.628% 2.280% 2.640% 3.000% 53 2.178% 1.742% 2.420% 2.760% 3.000% 54 2.333% 1.866% 2.560% 2.880% 3.000% 55 & Up 2.500% 2.000% 2.700% 3.000% 3.000% * For this formula, the benefit factor also varies by entry age. The factors shown are for members with an entry age of 35 or greater. If entry age is less than 35, then the age 55 benefit factor is 50 percent divided by the difference between age 55 and entry age. The benefit factor for ages prior to age 55 is the same proportion of the age 55 benefit factor as in the above table. PEPRA Safety Plan Formulas Retirement Age 2% at 57 2.5% at 57 2.7% at 57 50 1.426% 2.000% 2.000% 51 1.508% 2.071% 2.100% 52 1.590% 2.143% 2.200% 53 1.672% 2.214% 2.300% 54 1.754% 2.286% 2.400% 55 1.836% 2.357% 2.500% 56 1.918% 2.429% 2.600% 57 & Up 2.000% 2.500% 2.700%  The years of service is the amount credited by CalPERS to a member while he or she is employed in this group (or for other periods that are recognized under the employer’s contract with CalPERS). For a member who has earned service with multiple CalPERS employers, the benefit from each employer is calculated separately according to each employer’s contract, and then added together for the total allowance. An agency may contract for an optional benefit where any unused sick leave accumulated at the time of retirement will be converted to credited service at a rate of 0.004 years of service for each day of sick leave.  The final compensation is the monthly average of the member’s highest 36 or 12 consecutive months’ full-time equivalent monthly pay (no matter which CalPERS employer paid this compensation). The standard benefit is 36 months. Employers have the option of providing a final compensation equal to the highest 12 consecutive months. Final compensation must be defined by the highest 36 consecutive months’ pay under the 1.5% at 65 formula. PEPRA members have a cap on the annual salary that can be used to calculate final compensation for all new members based on the Social Security Contribution and Benefit Base. For employees that participate in CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX B MISCELLANEOUS PLAN OF THE CITY OF PALO ALTO PRINCIPAL PLAN PROVISIONS B-3 Social Security this cap is $113,700 for 2013 and for those employees that do not participate in social security the cap for 2013 is $136,440, the equivalent of 120 percent of the 2013 Contribution and Benefit Base. Adjustments to the caps are permitted annually based on changes to the CPI for All Urban Consumers.  Employees must be covered by Social Security with the 1.5% at 65 formula. Social Security is optional for all other benefit formulas. For employees covered by Social Security, the Modified formula is the standard benefit. Under this type of formula, the final compensation is offset by $133.33 (or by one third if the final compensation is less than $400). Employers may contract for the Full benefit with Social Security that will eliminate the offset applicable to the final compensation. For employees not covered by Social Security, the Full benefit is paid with no offsets. Auxiliary organizations of the CSUC system may elect reduced contribution rates, in which case the offset is $317 if members are not covered by Social Security or $513 if members are covered by Social Security.  The Miscellaneous Service Retirement benefit is not capped. The Safety Service Retirement benefit is capped at 90 percent of final compensation. Vested Deferred Retirement Eligibility for Deferred Status A CalPERS member becomes eligible for a deferred vested retirement benefit when he or she leaves employment, keeps his or her contribution account balance on deposit with CalPERS, and has earned at least 5 years of credited service (total service across all CalPERS employers, and with certain other Retirement Systems with which CalPERS has reciprocity agreements). Eligibility to Start Receiving Benefits The CalPERS classic members and Safety PEPRA members become eligible to receive the deferred retirement benefit upon satisfying the eligibility requirements for Deferred Status and upon attainment of age 50 (55 for employees hired into a 1.5% @ 65 plan). PEPRA Miscellaneous members become eligible to receive the deferred retirement benefit upon satisfying the eligibility requirements for Deferred Status and upon attainment of age 52. Benefit The vested deferred retirement benefit is the same as the Service Retirement benefit, where the benefit factor is based on the member’s age at allowance commencement. For members who have earned service with multiple CalPERS employers, the benefit from each employer is calculated separately according to each employer’s contract, and then added together for the total allowance. Non-Industrial (Non-Job Related) Disability Retirement Eligibility A CalPERS member is eligible for Non-Industrial Disability Retirement if he or she becomes disabled and has at least 5 years of credited service (total service across all CalPERS employers, and with certain other Retirement Systems with which CalPERS has reciprocity agreements). There is no special age requirement. Disabled means the member is unable to perform his or her job because of an illness or injury, which is expected to be permanent or to last indefinitely. The illness or injury does not have to be job related. A CalPERS member must be actively employed by any CalPERS employer at the time of disability in order to be eligible for this benefit. Standard Benefit The standard Non-Industrial Disability Retirement benefit is a monthly allowance equal to 1.8 percent of final compensation, multiplied by service, which is determined as follows:  Service is CalPERS credited service, for members with less than 10 years of service or greater than 18.518 years of service; or  Service is CalPERS credited service plus the additional number of years that the member would have worked until age 60, for members with at least 10 years but not more than 18.518 years of service. The maximum benefit in this case is 33 1/3 percent of Final Compensation. CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX B MISCELLANEOUS PLAN OF THE CITY OF PALO ALTO PRINCIPAL PLAN PROVISIONS B-4 Improved Benefit Employers have the option of providing the improved Non-Industrial Disability Retirement benefit. This benefit provides a monthly allowance equal to 30 percent of final compensation for the first 5 years of service, plus 1 percent for each additional year of service to a maximum of 50 percent of final compensation. Members who are eligible for a larger service retirement benefit may choose to receive that benefit in lieu of a disability benefit. Members eligible to retire, and who have attained the normal retirement age determined by their service retirement benefit formula, will receive the same dollar amount for disability retirement as that payable for service retirement. For members who have earned service with multiple CalPERS employers, the benefit attributed to each employer is the total disability allowance multiplied by the ratio of service with a particular employer to the total CalPERS service. Industrial (Job Related) Disability Retirement All safety members have this benefit. For miscellaneous members, employers have the option of providing this benefit. An employer may choose to provide the Increased benefit option or the Improved benefit option. Eligibility An employee is eligible for Industrial Disability Retirement if he or she becomes disabled while working, where disabled means the member is unable to perform the duties of the job because of a work-related illness or injury, which is, expected to be permanent or to last indefinitely. A CalPERS member who has left active employment within this group is not eligible for this benefit, except to the extent described below. Standard Benefit The standard Industrial Disability Retirement benefit is a monthly allowance equal to 50 percent of final compensation. Increased Benefit (75 percent of Final Compensation) The increased Industrial Disability Retirement benefit is a monthly allowance equal to 75 percent final compensation for total disability. Improved Benefit (50 percent to 90 percent of Final Compensation) The improved Industrial Disability Retirement benefit is a monthly allowance equal to the Workman’s Compensation Appeals Board permanent disability rate percentage (if 50 percent or greater, with a maximum of 90 percent) times the final compensation. For a CalPERS member not actively employed in this group who became disabled while employed by some other CalPERS employer, the benefit is a return of accumulated member contributions with respect to employment in this group. With the standard or increased benefit, a member may also choose to receive the annuitization of the accumulated member contributions. If a member is eligible for Service Retirement and if the Service Retirement benefit is more than the Industrial Disability Retirement benefit, the member may choose to receive the larger benefit. Post-Retirement Death Benefit Standard Lump Sum Payment Upon the death of a retiree, a one-time lump sum payment of $500 will be made to the retiree’s designated survivor(s), or to the retiree’s estate. Improved Lump Sum Payment Employers have the option of providing an improved lump sum death benefit of $600, $2,000, $3,000, $4,000 or $5,000. CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX B MISCELLANEOUS PLAN OF THE CITY OF PALO ALTO PRINCIPAL PLAN PROVISIONS B-5 Form of Payment for Retirement Allowance Standard Form of Payment Generally, the retirement allowance is paid to the retiree in the form of an annuity for as long as he or she is alive. The retiree may choose to provide for a portion of his or her allowance to be paid to any designated beneficiary after the retiree’s death. CalPERS provides for a variety of such benefit options, which the retiree pays for by taking a reduction in his or her retirement allowance. Such reduction takes into account the amount to be provided to the beneficiary and the probable duration of payments (based on the ages of the member and beneficiary) made subsequent to the member’s death. Improved Form of Payment (Post Retirement Survivor Allowance) Employers have the option to contract for the post retirement survivor allowance. For retirement allowances with respect to service subject to the modified formula, 25 percent of the retirement allowance will automatically be continued to certain statutory beneficiaries upon the death of the retiree, without a reduction in the retiree’s allowance. For retirement allowances with respect to service subject to the full or supplemental formula, 50 percent of the retirement allowance will automatically be continued to certain statutory beneficiaries upon the death of the retiree, without a reduction in the retiree’s allowance. This additional benefit is often referred to as post retirement survivor allowance (PRSA) or simply as survivor continuance. In other words, 25 percent or 50 percent of the allowance, the continuance portion, is paid to the retiree for as long as he or she is alive, and that same amount is continued to the retiree’s spouse (or if no eligible spouse, to unmarried children until they attain age 18; or, if no eligible children, to a qualifying dependent parent) for the rest of his or her lifetime. This benefit will not be discontinued in the event the spouse remarries. The remaining 75 percent or 50 percent of the retirement allowance, which may be referred to as the option portion of the benefit, is paid to the retiree as an annuity for as long as he or she is alive. Or, the retiree may choose to provide for some of this option portion to be paid to any designated beneficiary after the retiree’s death. Benefit options applicable to the option portion are the same as those offered with the standard form. The reduction is calculated in the same manner but is applied only to the option portion. Pre-Retirement Death Benefits Basic Death Benefit This is a standard benefit. Eligibility An employee’s beneficiary (or estate) may receive the Basic Death benefit if the member dies while actively employed. A CalPERS member must be actively employed with the CalPERS employer providing this benefit to be eligible for this benefit. A member’s survivor who is eligible for any other pre-retirement death benefit may choose to receive that death benefit instead of this Basic Death benefit. Benefit The Basic Death Benefit is a lump sum in the amount of the member’s accumulated contributions, where interest is currently credited at 7.5 percent per year, plus a lump sum in the amount of one month's salary for each completed year of current service, up to a maximum of six months' salary. For purposes of this benefit, one month's salary is defined as the member's average monthly full-time rate of compensation during the 12 months preceding death. 1957 Survivor Benefit This is a standard benefit. CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX B MISCELLANEOUS PLAN OF THE CITY OF PALO ALTO PRINCIPAL PLAN PROVISIONS B-6 Eligibility An employee’s eligible survivor(s) may receive the 1957 Survivor benefit if the member dies while actively employed, has attained at least age 50 for Classic and Safety PEPRA members and age 52 for Miscellaneous PEPRA members, and has at least 5 years of credited service (total service across all CalPERS employers and with certain other Retirement Systems with which CalPERS has reciprocity agreements). A CalPERS member must be actively employed with the CalPERS employer providing this benefit to be eligible for this benefit. An eligible survivor means the surviving spouse to whom the member was married at least one year before death or, if there is no eligible spouse, to the member's unmarried children under age 18. A member’s survivor who is eligible for any other pre-retirement death benefit may choose to receive that death benefit instead of this 1957 Survivor benefit. Benefit The 1957 Survivor benefit is a monthly allowance equal to one-half of the unmodified Service Retirement benefit that the member would have been entitled to receive if the member had retired on the date of his or her death. If the benefit is payable to the spouse, the benefit is discontinued upon the death of the spouse. If the benefit is payable to a dependent child, the benefit will be discontinued upon death or attainment of age 18, unless the child is disabled. The total amount paid will be at least equal to the Basic Death benefit. Optional Settlement 2W Death Benefit This is an optional benefit. Eligibility An employee’s eligible survivor may receive the Optional Settlement 2W Death benefit if the member dies while actively employed, has attained at least age 50 for Classic and Safety PEPRA members and age 52 for Miscellaneous PEPRA members, and has at least 5 years of credited service (total service across all CalPERS employers and with certain other Retirement Systems with which CalPERS has reciprocity agreements). A CalPERS member who is no longer actively employed with any CalPERS employer is not eligible for this benefit. An eligible survivor means the surviving spouse to whom the member was married at least one year before death. A member’s survivor who is eligible for any other pre-retirement death benefit may choose to receive that death benefit instead of this Optional Settlement 2W Death benefit. Benefit The Optional Settlement 2W Death benefit is a monthly allowance equal to the Service Retirement benefit that the member would have received had the member retired on the date of his or her death and elected Optional Settlement 2W. (A retiree who elects Optional Settlement 2W receives an allowance that has been reduced so that it will continue to be paid after his or her death to a surviving beneficiary.) The allowance is payable as long as the surviving spouse lives, at which time it is continued to any unmarried children under age 18, if applicable. The total amount paid will be at least equal to the Basic Death Benefit. Special Death Benefit This is a standard benefit for safety members. An employer may elect to provide this benefit for miscellaneous members. Eligibility An employee’s eligible survivor(s) may receive the Special Death benefit if the member dies while actively employed and the death is job-related. A CalPERS member who is no longer actively employed with any CalPERS employer is not eligible for this benefit. An eligible survivor means the surviving spouse to whom the member was married prior to the onset of the injury or illness that resulted in death. If there is no eligible spouse, an eligible survivor means the member's unmarried children under age 22. An eligible survivor who chooses to receive this benefit will not receive any other death benefit. Benefit The Special Death benefit is a monthly allowance equal to 50 percent of final compensation, and will be increased whenever the compensation paid to active employees is increased but ceasing to increase when the member would CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX B MISCELLANEOUS PLAN OF THE CITY OF PALO ALTO PRINCIPAL PLAN PROVISIONS B-7 have attained age 50. The allowance is payable to the surviving spouse until death at which time the allowance is continued to any unmarried children under age 22. There is a guarantee that the total amount paid will at least equal the Basic Death Benefit. If the member’s death is the result of an accident or injury caused by external violence or physical force incurred in the performance of the member’s duty, and there are eligible surviving children (eligible means unmarried children under age 22) in addition to an eligible spouse, then an additional monthly allowance is paid equal to the following:  if 1 eligible child: 12.5 percent of final compensation  if 2 eligible children: 20.0 percent of final compensation  if 3 or more eligible children: 25.0 percent of final compensation Alternate Death Benefit for Local Fire Members This is an optional benefit available only to local fire members. Eligibility An employee’s eligible survivor(s) may receive the Alternate Death benefit in lieu of the Basic Death Benefit or the 1957 Survivor Benefit if the member dies while actively employed and has at least 20 years of total CalPERS service. A CalPERS member who is no longer actively employed with any CalPERS employer is not eligible for this benefit. An eligible survivor means the surviving spouse to whom the member was married prior to the onset of the injury or illness that resulted in death. If there is no eligible spouse, an eligible survivor means the member's unmarried children under age 18. Benefit The Alternate Death benefit is a monthly allowance equal to the Service Retirement benefit that the member would have received had the member retired on the date of his or her death and elected Optional Settlement 2W. (A retiree who elects Optional Settlement 2W receives an allowance that has been reduced so that it will continue to be paid after his or her death to a surviving beneficiary.) If the member has not yet attained age 50, the benefit is equal to that which would be payable if the member had retired at age 50, based on service credited at the time of death. The allowance is payable as long as the surviving spouse lives, at which time it is continued to any unmarried children under age 18, if applicable. The total amount paid will be at least equal to the Basic Death Benefit. Cost-of-Living Adjustments (COLA) Standard Benefit Beginning the second calendar year after the year of retirement, retirement and survivor allowances will be annually adjusted on a compound basis by 2 percent. Improved Benefit Employers have the option of providing any of these improved cost-of-living adjustments by contracting for any one of these Class 1 optional benefits. An improved COLA is not available in conjunction with the 1.5% at 65 formula. Beginning the second calendar year after the year of retirement, retirement and survivor allowances will be annually adjusted on a compound basis by either 3 percent, 4 percent or 5 percent. However, the cumulative adjustment may not be greater than the cumulative change in the Consumer Price Index since the date of retirement. Purchasing Power Protection Allowance (PPPA) Retirement and survivor allowances are protected against inflation by PPPA. PPPA benefits are cost-of-living adjustments that are intended to maintain an individual’s allowance at 80 percent of the initial allowance at CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX B MISCELLANEOUS PLAN OF THE CITY OF PALO ALTO PRINCIPAL PLAN PROVISIONS B-8 retirement adjusted for inflation since retirement. The PPPA benefit will be coordinated with other cost-of-living adjustments provided under the plan. Employee Contributions Each employee contributes toward his or her retirement based upon the retirement formula. The standard employee contribution is as described below. The percent contributed below the monthly compensation breakpoint is 0 percent. The monthly compensation breakpoint is $0 for full and supplemental formula members and $133.33 for employees covered by the modified formula. The percent contributed above the monthly compensation breakpoint depends upon the benefit formula, as shown in the table below. Benefit Formula Percent Contributed above the Breakpoint Miscellaneous, 1.5% at 65 2% Miscellaneous, 2% at 60 7% Miscellaneous, 2% at 55 7% Miscellaneous, 2.5% at 55 8% Miscellaneous, 2.7% at 55 8% Miscellaneous, 3% at 60 8% Miscellaneous, 2% at 62 50% of the Total Normal Cost Safety, 1/2 at 55 Varies by entry age Safety, 2% at 55 7% Safety, 2% at 50 9% Safety, 3% at 55 9% Safety, 3% at 50 9% Safety, 2% at 57 50% of the Total Normal Cost Safety, 2.5% at 57 50% of the Total Normal Cost Safety, 2.7% at 57 50% of the Total Normal Cost The employer may choose to “pick-up” these contributions for the employees (Employer Paid Member Contributions or EPMC). EPMC is prohibited for new PEPRA members. An employer may also include Employee Cost Sharing in the contract, where employees agree to share the cost of the employer contribution with or without a change in benefit. These contributions are paid in addition to the member contribution. Auxiliary organizations of the CSUC system may elect reduced contribution rates, in which case the offset is $317 and the contribution rate is 6 percent if members are not covered by Social Security. If members are covered by Social Security, the offset is $513 and the contribution rate is 5 percent. Refund of Employee Contributions If the member’s service with the employer ends, and if the member does not satisfy the eligibility conditions for any of the retirement benefits above, the member may elect to receive a refund of his or her employee contributions, which are credited annually with 6 percent interest. CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX B MISCELLANEOUS PLAN OF THE CITY OF PALO ALTO PRINCIPAL PLAN PROVISIONS B-9 1959 Survivor Benefit This is a pre-retirement death benefit available only to members not covered by Social Security. Any agency joining CalPERS subsequent to 1993 was required to provide this benefit if the members were not covered by Social Security. The benefit is optional for agencies joining CalPERS prior to 1994. Levels 1, 2 and 3 are now closed. Any new agency or any agency wishing to add this benefit or increase the current level must choose the 4th or Indexed Level. This benefit is not included in the results presented in this valuation. More information on this benefit is available on the CalPERS website at www.calpers.ca.gov. THIS PAGE INTENTIONALLY LEFT BLANK APPENDIX C PARTICIPANT DATA  SUMMARY OF VALUATION DATA  ACTIVE MEMBERS  TRANSFERRED AND TERMINATED MEMBERS  RETIRED MEMBERS AND BENEFICIARIES THIS PAGE INTENTIONALLY LEFT BLANK CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX C MISCELLANEOUS PLAN OF THE CITY OF PALO ALTO PARTICIPANT DATA C-1 Summary of Valuation Data June 30, 2012 June 30, 2013 1. Active Members a) Counts 794 789 b) Average Attained Age 45.88 46.31 c) Average Entry Age to Rate Plan 35.18 35.30 d) Average Years of Service 10.70 11.01 e) Average Annual Covered Pay $ 79,233 $ 81,673 f) Annual Covered Payroll 62,910,810 64,439,680 g) Projected Annual Payroll for Contribution Year 68,744,341 70,414,978 h) Present Value of Future Payroll 496,755,984 504,789,216 2. Transferred Members a) Counts 288 295 b) Average Attained Age 46.23 45.76 c) Average Years of Service 3.49 3.48 d) Average Annual Covered Pay $ 105,875 $ 106,639 3. Terminated Members a) Counts 321 334 b) Average Attained Age 46.83 47.27 c) Average Years of Service 3.47 3.43 d) Average Annual Covered Pay $ 62,330 $ 61,875 4. Retired Members and Beneficiaries a) Counts 960 989 b) Average Attained Age 68.24 68.56 c) Average Annual Benefits $ 30,175 $ 30,968 5. Active to Retired Ratio [(1a) / (4a)] 0.83 0.80 Counts of members included in the valuation are counts of the records processed by the valuation. Multiple records may exist for those who have service in more than one valuation group. This does not result in double counting of liabilities. Average Annual Benefits represents benefit amounts payable by this plan only. Some members may have service with another agency and would therefore have a larger total benefit than would be included as part of the average shown here. CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX C MISCELLANEOUS PLAN OF THE CITY OF PALO ALTO PARTICIPANT DATA C-2 Active Members Counts of members included in the valuation are counts of the records processed by the valuation. Multiple records may exist for those who have service in more than one valuation group. This does not result in double counting of liabilities. Distribution of Active Members by Age and Service Years of Service at Valuation Date Attained Age 0-4 5-9 10-14 15-19 20-25 25+ Total 15-24 12 0 0 0 0 0 12 25-29 33 6 1 0 0 0 40 30-34 44 26 13 2 0 0 85 35-39 43 25 25 9 0 0 102 40-44 32 21 27 14 7 0 101 45-49 32 18 29 22 15 6 122 50-54 32 21 31 28 31 19 162 55-59 22 21 13 18 7 15 96 60-64 6 8 11 13 10 3 51 65 and over 0 4 3 1 7 3 18 All Ages 256 150 153 107 77 46 789 Distribution of Average Annual Salaries by Age and Service Years of Service at Valuation Date Attained Age 0-4 5-9 10-14 15-19 20-25 25+ Average 15-24 $55,778 $0 $0 $0 $0 $0 $55,778 25-29 68,999 71,174 70,393 0 0 0 69,360 30-34 66,225 73,055 78,041 67,762 0 0 70,157 35-39 71,848 74,273 83,848 81,745 0 0 76,257 40-44 86,209 89,671 89,214 95,538 95,353 0 89,659 45-49 87,483 83,726 80,090 90,931 91,113 90,346 86,380 50-54 77,649 91,029 81,853 83,085 84,877 103,376 85,528 55-59 80,998 79,330 85,869 87,349 92,423 93,680 85,298 60-64 82,227 72,191 80,771 88,205 101,177 90,161 86,045 65 and over 0 34,073 71,247 72,804 84,708 70,731 68,222 All Ages $75,265 $79,099 $82,800 $87,172 $89,832 $95,524 $81,673 CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX C MISCELLANEOUS PLAN OF THE CITY OF PALO ALTO PARTICIPANT DATA C-3 Transferred and Terminated Members Distribution of Transfers to Other CalPERS Plans by Age and Service Years of Service at Valuation Date Attained Age 0-4 5-9 10-14 15-19 20-25 25+ Total Average Salary 15-24 2 0 0 0 0 0 2 $69,016 25-29 16 0 0 0 0 0 16 92,232 30-34 29 2 1 0 0 0 32 94,725 35-39 32 5 0 0 0 0 37 102,814 40-44 36 6 0 2 0 0 44 101,438 45-49 41 14 1 1 1 0 58 113,290 50-54 36 10 5 1 0 0 52 116,807 55-59 24 7 4 2 1 0 38 116,977 60-64 6 5 1 0 0 0 12 91,367 65 and over 2 1 1 0 0 0 4 89,948 All Ages 224 50 13 6 2 0 295 106,639 Distribution of Terminated Participants with Funds on Deposit by Age and Service Years of Service at Valuation Date Attained Age 0-4 5-9 10-14 15-19 20-25 25+ Total Average Salary 15-24 2 0 0 0 0 0 2 $62,303 25-29 6 1 0 0 0 0 7 56,381 30-34 33 4 0 0 0 0 37 59,849 35-39 39 3 0 0 0 0 42 58,165 40-44 35 9 1 0 0 0 45 67,296 45-49 36 15 6 1 0 0 58 61,848 50-54 47 9 5 5 1 0 67 66,794 55-59 27 8 2 0 0 1 38 63,755 60-64 19 4 2 2 0 0 27 53,603 65 and over 8 1 1 0 0 0 10 46,951 All Ages 252 54 17 8 1 1 333 61,882 CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX C MISCELLANEOUS PLAN OF THE CITY OF PALO ALTO PARTICIPANT DATA C-4 Retired Members and Beneficiaries Distribution of Retirees and Beneficiaries by Age and Retirement Type* Attained Age Service Retirement Non- Industrial Disability Industrial Disability Non- Industrial Death Industrial Death Death After Retirement Total Under 30 0 0 0 0 0 3 3 30-34 0 0 1 0 0 1 2 35-39 0 0 2 0 0 0 2 40-44 0 1 1 0 0 0 2 45-49 1 4 2 0 0 0 7 50-54 32 12 2 0 0 2 48 55-59 114 7 1 0 0 5 127 60-64 169 10 1 0 0 14 194 65-69 196 11 2 0 0 8 217 70-74 126 6 2 0 0 17 151 75-79 70 7 1 0 0 6 84 80-84 51 4 0 0 0 19 74 85 and Over 52 2 0 0 0 24 78 All Ages 811 64 15 0 0 99 989 Distribution of Average Annual Amounts for Retirees and Beneficiaries by Age and Retirement Type* Attained Age Service Retirement Non- Industrial Disability Industrial Disability Non- Industrial Death Industrial Death Death After Retirement Average Under 30 $0 $0 $0 $0 $0 $12,099 $12,099 30-34 0 0 242 0 0 10,903 5,573 35-39 0 0 249 0 0 0 249 40-44 0 8,644 239 0 0 0 4,442 45-49 17,094 12,540 618 0 0 0 9,784 50-54 32,222 12,206 885 0 0 6,888 24,857 55-59 42,841 13,975 10,894 0 0 13,610 39,848 60-64 38,551 15,189 2,031 0 0 33,285 36,779 65-69 35,459 16,858 8,908 0 0 14,121 33,485 70-74 28,386 20,616 1,759 0 0 23,916 27,222 75-79 31,204 15,461 4,014 0 0 24,240 29,071 80-84 23,966 15,178 0 0 0 20,766 22,670 85 and Over 20,996 16,768 0 0 0 20,471 20,726 All Ages $33,875 $15,103 $2,817 $0 $0 $21,675 $30,968 CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX C MISCELLANEOUS PLAN OF THE CITY OF PALO ALTO PARTICIPANT DATA C-5 Retired Members and Beneficiaries (continued) Distribution of Retirees and Beneficiaries by Years Retired and Retirement Type* Years Retired Service Retirement Non- Industrial Disability Industrial Disability Non- Industrial Death Industrial Death Death After Retirement Total Under 5 Yrs 289 8 6 0 0 34 337 5-9 210 13 3 0 0 22 248 10-14 142 8 2 0 0 19 171 15-19 71 14 4 0 0 8 97 20-24 59 15 0 0 0 9 83 25-29 23 3 0 0 0 5 31 30 and Over 17 3 0 0 0 2 22 All Years 811 64 15 0 0 99 989 Distribution of Average Annual Amounts for Retirees and Beneficiaries by Years Retired and Retirement Type* Years Retired Service Retirement Non- Industrial Disability Industrial Disability Non- Industrial Death Industrial Death Death After Retirement Average Under 5 Yrs $43,750 $8,668 $253 $0 $0 $27,645 $40,518 5-9 35,330 16,209 9,567 0 0 19,275 32,592 10-14 28,708 19,972 1,614 0 0 21,676 27,201 15-19 20,000 19,428 2,203 0 0 12,910 18,599 20-24 18,981 12,901 0 0 0 17,896 17,764 25-29 21,459 7,012 0 0 0 15,802 19,148 30 and Over 17,603 13,406 0 0 0 13,331 16,642 All Years $33,875 $15,103 $2,817 $0 $0 $21,675 $30,968 * Counts of members do not include alternate payees receiving benefits while the member is still working. Therefore, the total counts may not match information on page 25 of the report. Multiple records may exist for those who have service in more than one coverage group. This does not result in double counting of liabilities. THIS PAGE INTENTIONALLY LEFT BLANK APPENDIX D DEVELOPMENT OF PEPRA MEMBER CONTRIBUTION RATE THIS PAGE INTENTIONALLY LEFT BLANK CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX D MISCELLANEOUS PLAN OF THE CITY OF PALO ALTO PARTICIPANT DATA D-1 DEVELOPMENT OF PEPRA MEMBER CONTRIBUTION RATE The table below shows the determination of the Member contribution rates based on 50 percent of the Total Normal Cost for each respective plan on June 30, 2013. Assembly Bill (AB) 340 created PEPRA that implemented new benefit formulas and a final compensation period as well as new contribution requirements for new employees. In accordance with Section Code 7522.30(b), “new members … shall have an initial contribution rate of at least 50 percent of the normal cost rate.” The normal cost for the plan is dependent on the benefit levels, actuarial assumptions and demographics of the plan particularly the entry age into the plan. Since the actual demographics of new members was not known during the implementation of PEPRA in December 2012, the normal cost rate was determined based on the average demographics of the members in the current 2 percent at age 55 miscellaneous risk pool and the 3 percent at age 50 safety risk pool. In analyzing the first set of PEPRA data, CalPERS staff has become concerned that, for most employers, there is insufficient data to produce stable normal costs and member contribution rates. Further, this situation is likely to persist for a number of years as employers gradually bring on more PEPRA members. The larger employers may have sufficient PEPRA members in the first few years but other employers may not have stable rates for a number of years. Staff has concluded that the best approach is to repeat the process – using the normal costs based on the demographics of the risk pools – for the current valuation and work with stakeholders over the next year to determine the best long-term approach to the issue of calculating PEPRA normal costs and member contribution rates. For more information on this topic please refer to the CalPERS Board of Administration agenda item 9a of the May 20th, 2014 meeting which is available on the CalPERS website. Basis for Current Rate Rates Effective July 1, 2015 Rate Plan Identifier Plan Total Normal Cost Member Rate Total Normal Cost Change Change Needed Member Rate 26004 Miscellaneous PEPRA 12.50% 6.250% 12.50% 0.00% No 6.250% THIS PAGE INTENTIONALLY LEFT BLANK APPENDIX E GLOSSARY OF ACTUARIAL TERMS CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX E MISCELLANEOUS PLAN OF THE CITY OF PALO ALTO GLOSSARY OF ACTUARIAL TERMS E-1 Glossary of Actuarial Terms Accrued Liability (also called Actuarial Accrued Liability or Entry Age Normal Accrued Liability) The total dollars needed as of the valuation date to fund all benefits earned in the past for current members. Actuarial Assumptions Assumptions made about certain events that will affect pension costs. Assumptions generally can be broken down into two categories: demographic and economic. Demographic assumptions include such things as mortality, disability and retirement rates. Economic assumptions include discount rate, salary growth and inflation. Actuarial Methods Procedures employed by actuaries to achieve certain funding goals of a pension plan. Actuarial methods include funding method, setting the length of time to fund the Accrued Liability and determining the Actuarial Value of Assets. Actuarial Valuation The determination, as of a valuation date, of the Normal Cost, Accrued liability, Actuarial Value of Assets and related actuarial present values for a pension plan. These valuations are performed annually or when an employer is contemplating a change to their plan provisions. Actuarial Value of Assets The Actuarial Value of Assets used for funding purposes is obtained through an asset smoothing technique where investment gains and losses are partially recognized in the year they are incurred, with the remainder recognized in subsequent years. This method helps to dampen large fluctuations in the employer contribution rate. Amortization Bases Separate payment schedules for different portions of the Unfunded Liability. The total Unfunded Liability of a Risk Pool or non-pooled plan can be segregated by "cause,” creating “bases” and each such base will be separately amortized and paid for over a specific period of time. However, all bases are amortized using investment and payroll assumptions from the current valuation. This can be likened to a home having a first mortgage of 24 years remaining payments and a second mortgage that has 10 years remaining payments. Each base or each mortgage note has its own terms (payment period, principal, etc.) Generally, in an actuarial valuation, the separate bases consist of changes in unfunded liability due to contract amendments, actuarial assumption changes, actuarial methodology changes, and or gains and losses. Payment periods are determined by Board policy and vary based on the cause of the change. Amortization Period The number of years required to pay off an Amortization Base. Annual Required Contributions (ARC) The employer's periodic required annual contributions to a defined benefit pension plan as set forth in GASB Statement No. 27, calculated in accordance with the plan assumptions. The ARC is determined by multiplying the employer contribution rate by the payroll reported to CalPERS for the applicable fiscal year. However, if this contribution is fully prepaid in a lump sum, then the dollar value of the ARC is equal to the Lump Sum Prepayment. Classic Member (under PEPRA) A classic member is a member who joined CalPERS prior to January, 1, 2013 and who is not defined as a new member under PEPRA. (See definition of new member below) Discount Rate Assumption The actuarial assumption that was called “investment return” in earlier CalPERS reports or “actuarial interest rate” in Section 20014 of the California Public Employees’ Retirement Law (PERL). CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX E MISCELLANEOUS PLAN OF THE CITY OF PALO ALTO GLOSSARY OF ACTUARIAL TERMS E-2 Entry Age The earliest age at which a plan member begins to accrue benefits under a defined benefit pension plan. In most cases, this is the age of the member on their date of hire. Entry Age Normal Cost Method An actuarial cost method designed to fund a member's total plan benefit over the course of his or her career. This method is designed to yield a rate expressed as a level percentage of payroll. (The assumed retirement age less the entry age is the amount of time required to fund a member’s total benefit. Generally, the older a member on the date of hire, the greater the entry age normal cost. This is mainly because there is less time to earn investment income to fund the future benefits.) Fresh Start A Fresh Start is when multiple amortization bases are collapsed to one base and amortized together over a new funding period. Funded Status A measure of how well funded, or how "on track" a plan or risk pool is with respect to assets verses accrued liabilities. A ratio greater than 100% means the plan or risk pool has more assets than liabilities and a ratio less than 100% means liabilities are greater than assets. A funded ratio based on the Actuarial Value of Assets indicates the progress toward fully funding the plan using the actuarial cost methods and assumptions. A funded ratio based on the Market Value of Assets indicates the short-term solvency of the plan. GASB 27 Statement No. 27 of the Governmental Accounting Standards Board. The accounting standard governing a state or local governmental employer’s accounting for pensions. GASB 68 Statement No. 68 of the Governmental Accounting Standards Board. The accounting standard governing a state or local governmental employer’s accounting and financial reporting for pensions. GASB 68 replaces GASB 27 effective the first fiscal year beginning after June 15, 2014. New Member (under PEPRA) A new member includes an individual who becomes a member of a public retirement system for the first time on or after January 1, 2013, and who was not a member of another public retirement system prior to that date, and who is not subject to reciprocity with another public retirement system. Normal Cost The annual cost of service accrual for the upcoming fiscal year for active employees. The normal cost should be viewed as the long term contribution rate. Pension Actuary A business professional that is authorized by the Society of Actuaries, and the American Academy of Actuaries to perform the calculations necessary to properly fund a pension plan. PEPRA The California Public Employees’ Pension Reform Act of 2013 Prepayment Contribution A payment made by the employer to reduce or eliminate the year’s required employer contribution. Present Value of Benefits (PVB) The total dollars needed as of the valuation date to fund all benefits earned in the past or expected to be earned in the future for current members. Rolling Amortization Period An amortization period that remains the same each year, rather than declining. CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX E MISCELLANEOUS PLAN OF THE CITY OF PALO ALTO GLOSSARY OF ACTUARIAL TERMS E-3 Superfunded A condition existing when a plan’s Actuarial Value of Assets exceeds its Present Value of Benefits. Prior to the passage of PEPRA, when this condition existed on a given valuation date for a given plan, employee contributions for the rate year covered by that valuation could be waived. Unfunded Liability When a plan or pool’s Actuarial Value of Assets is less than its Accrued Liability, the difference is the plan or pool’s Unfunded Liability. If the Unfunded Liability is positive, the plan or pool will have to pay contributions exceeding the Normal Cost. California Public Employees’ Retirement System Actuarial Office P.O. Box 942701 Sacramento, CA 94229-2701 TTY: (916) 795-3240 (888) 225-7377 phone • (916) 795-2744 fax www.calpers.ca.gov October 2014 SAFETY PLAN OF THE CITY OF PALO ALTO (CalPERS ID: 6373437857) Annual Valuation Report as of June 30, 2013 Dear Employer, As an attachment to this letter, you will find a copy of the June 30, 2013 actuarial valuation report of your pension plan. Your 2013 actuarial valuation report contains important actuarial information about your pension plan at CalPERS. Your CalPERS staff actuary, whose signature appears in the Actuarial Certification Section on page 1, is available to discuss the report with you after October 31, 2014. Future Contribution Rates The exhibit below displays the Minimum Employer Contribution Rate for fiscal year 2015-16 and a projected contribution rate for 2016-17, before any cost sharing. The projected rate for 2016-17 is based on the most recent information available, including an estimate of the investment return for fiscal year 2013-14, namely 18 percent, and the impact of the actuarial assumptions adopted by the CalPERS Board in February 2014 that will impact employer rates for the first time in fiscal year 2016-17. For a projection of employer rates beyond 2016-17, please refer to the “Projected Rates” in the “Risk Analysis” section, which includes rate projections through 2020-21 under a variety of investment return scenarios. Please disregard any projections that we may have provided you in the past. Fiscal Year Employer Contribution Rate 2015-16 41.932% 2016-17 45.1% (projected) Member contributions other than cost sharing (whether paid by the employer or the employee) are in addition to the above rates. The employer contribution rates in this report do not reflect any cost sharing arrangement you may have with your employees. The estimate for 2016-17 also assumes that there are no future contract amendments and no liability gains or losses (such as larger than expected pay increases, more retirements than expected, etc.). This is a very important assumption because these gains and losses do occur and can have a significant impact on your contribution rate. Even for the largest plans, such gains and losses often cause a change in the employer’s contribution rate of one or two percent of payroll and may be even larger in some less common instances. These gains and losses cannot be predicted in advance so the projected employer contribution rates are just estimates. Your actual rate for 2016-17 will be provided in next year’s report. SAFETY PLAN OF THE CITY OF PALO ALTO (CalPERS ID: 6373437857) Annual Valuation Report as of June 30, 2013 Page 2 Changes since the Prior Year’s Valuation On January 1, 2013, the Public Employees’ Pension Reform Act of 2013 (PEPRA) took effect. The impact of the PEPRA changes are included in the rates and the benefit provision listings of the June 30, 2013 valuation for the 2015-16 rates. For more information on PEPRA, please refer to the CalPERS website. On April 17, 2013, the CalPERS Board of Administration approved a recommendation to change the CalPERS amortization and rate smoothing policies. Beginning with the June 30, 2013 valuations that set the 2015-16 rates, CalPERS will no longer use an actuarial value of assets and will employ an amortization and smoothing policy that will pay for all gains and losses over a fixed 30-year period with the increases or decreases in the rate spread directly over a 5-year period. In 2014 CalPERS completed a 2-year asset liability management study incorporating actuarial assumptions and strategic asset allocation. On February 19, 2014 the CalPERS Board of Administration adopted relatively modest changes to the current asset allocation that will reduce the expected volatility of returns. The adopted asset allocation is expected to have a long- term blended return that continues to support a discount rate assumption of 7.5 percent. The Board also approved several changes to the demographic assumptions that more closely align with actual experience. The most significant of these is mortality improvement to acknowledge the greater life expectancies we are seeing in our membership and expected continued improvements. The new actuarial assumptions will be used to set the FY 2016-17 contribution rates for public agency employers. The increase in liability due to new actuarial assumptions will be calculated in the 2014 actuarial valuation and will be amortized over a 20-year period with a 5-year ramp-up/ramp-down in accordance with Board policy. Besides the above noted changes, there may also be changes specific to your plan such as contract amendments and funding changes. Further descriptions of general changes are included in the “Highlights and Executive Summary” section and in Appendix A, “Actuarial Methods and Assumptions.” The effect of the changes on your rate is included in the “Reconciliation of Required Employer Contributions.” We understand that you might have a number of questions about these results. While we are very interested in discussing these results with your agency, in the interest of allowing us to give every public agency their results, we ask that you wait until after October 31 to contact us with actuarial questions. If you have other questions, you may call the Customer Contact Center at (888)-CalPERS or (888-225-7377). Sincerely, ALAN MILLIGAN Chief Actuary ACTUARIAL VALUATION as of June 30, 2013 for the SAFETY PLAN of the CITY OF PALO ALTO (CalPERS ID: 6373437857) REQUIRED CONTRIBUTIONS FOR FISCAL YEAR July 1, 2015 – June 30, 2016 THIS PAGE INTENTIONALLY LEFT BLANK TABLE OF CONTENTS ACTUARIAL CERTIFICATION 1 HIGHLIGHTS AND EXECUTIVE SUMMARY Introduction 5 Purpose of the Report 5 Required Employer Contribution 6 Plan’s Funded Status 6 Cost 7 Changes Since the Prior Year’s Valuation 8 Subsequent Events 8 ASSETS Reconciliation of the Market Value of Assets 11 Asset Allocation 12 CalPERS History of Investment Returns 13 LIABILITIES AND RATES Development of Accrued and Unfunded Liabilities 17 (Gain) / Loss Analysis 06/30/12 - 06/30/13 18 Schedule of Amortization Bases 19 Alternate Amortization Schedules 20 Reconciliation of Required Employer Contributions 21 Employer Contribution Rate History 22 Funding History 22 RISK ANALYSIS Volatility Ratios 25 Projected Rates 26 Analysis of Future Investment Return Scenarios 26 Analysis of Discount Rate Sensitivity 27 Hypothetical Termination Liability 28 GASB STATEMENT NO. 27 Information for Compliance with GASB Statement No. 27 31 PLAN’S MAJOR BENEFIT PROVISIONS Plan’s Major Benefit Options 35 APPENDIX A – ACTUARIAL METHODS AND ASSUMPTIONS Actuarial Data A1 Actuarial Methods A1 – A2 Actuarial Assumptions A3 – A20 Miscellaneous A20 – A21 APPENDIX B – PRINCIPAL PLAN PROVISIONS B1 – B9 APPENDIX C – PARTICIPANT DATA Summary of Valuation Data C1 Active Members C2 Transferred and Terminated Members C3 Retired Members and Beneficiaries C4 – C5 APPENDIX D – DEVELOPMENT OF PEPRA MEMBER CONTRIBUTION RATE D1 APPENDIX E – GLOSSARY OF ACTUARIAL TERMS E1 – E3 (CY) FIN PROCESS CONTROL ID: 432668 (PY) FIN PROCESS CONTROL ID: 413892 REPORT ID: 76454 THIS PAGE INTENTIONALLY LEFT BLANK CALPERS ACTUARIAL VALUATION - June 30, 2013 SAFETY PLAN OF THE CITY OF PALO ALTO CalPERS ID: 6373437857 Page 1 ACTUARIAL CERTIFICATION To the best of our knowledge, this report is complete and accurate and contains sufficient information to disclose, fully and fairly, the funded condition of the SAFETY PLAN OF THE CITY OF PALO ALTO. This valuation is based on the member and financial data as of June 30, 2013 provided by the various CalPERS databases and the benefits under this plan with CalPERS as of the date this report was produced. It is our opinion that the valuation has been performed in accordance with generally accepted actuarial principles, in accordance with standards of practice prescribed by the Actuarial Standards Board, and that the assumptions and methods are internally consistent and reasonable for this plan, as prescribed by the CalPERS Board of Administration according to provisions set forth in the California Public Employees’ Retirement Law. The undersigned is an actuary for CalPERS, who is a member of the American Academy of Actuaries and the Society of Actuaries and meets the Qualification Standards of the American Academy of Actuaries to render the actuarial opinion contained herein. DAVID CLEMENT, ASA, MAAA, EA Senior Pension Actuary, CalPERS THIS PAGE INTENTIONALLY LEFT BLANK HIGHLIGHTS AND EXECUTIVE SUMMARY  INTRODUCTION  PURPOSE OF THE REPORT  REQUIRED EMPLOYER CONTRIBUTION  PLAN’S FUNDED STATUS  COST  CHANGES SINCE THE PRIOR YEAR’S VALUATION  SUBSEQUENT EVENTS THIS PAGE INTENTIONALLY LEFT BLANK CALPERS ACTUARIAL VALUATION - June 30, 2013 SAFETY PLAN OF THE CITY OF PALO ALTO CalPERS ID: 6373437857 Page 5 Introduction This report presents the results of the June 30, 2013 actuarial valuation of the SAFETY PLAN OF THE CITY OF PALO ALTO of the California Public Employees’ Retirement System (CalPERS). This actuarial valuation sets the fiscal year 2015-16 required employer contribution rates. On January 1, 2013, the Public Employees’ Pension Reform Act of 2013 (PEPRA) took effect. The impact of most of the PEPRA changes are included in the rates and the benefit provision listings of the June 30, 2013 valuation, which sets the 2015-16 contribution rates. For more information on PEPRA, please refer to the CalPERS website. On April 17, 2013, the CalPERS Board of Administration approved a recommendation to change the CalPERS amortization and smoothing policies. Prior to this change, CalPERS employed an amortization and smoothing policy, which spread investment returns over a 15-year period while experience gains and losses were amortized over a rolling 30-year period. Effective with the June 30, 2013 valuations, CalPERS will no longer use an actuarial value of assets and will employ an amortization and smoothing policy that will spread rate increases or decreases over a 5-year period, and will amortize all experience gains and losses over a fixed 30-year period. The new amortization and smoothing policy is used in this valuation. In 2014 CalPERS completed a 2-year asset liability management study incorporating actuarial assumptions and strategic asset allocation. On February 19, 2014 the CalPERS Board of Administration adopted relatively modest changes to the current asset allocation that will reduce the expected volatility of returns. The adopted asset allocation is expected to have a long-term blended return that continues to support a discount rate assumption of 7.5 percent. The Board also approved several changes to the demographic assumptions that more closely align with actual experience. The most significant of these is mortality improvement to acknowledge the greater life expectancies we are seeing in our membership and expected continued improvements. The new actuarial assumptions will be used to set the FY 2016-17 contribution rates for public agency employers. The increase in liability due to new actuarial assumptions will be calculated in the 2014 actuarial valuation and will be amortized over a 20-year period with a 5-year ramp- up/ramp-down in accordance with Board policy. Purpose of the Report The actuarial valuation was prepared by the CalPERS Actuarial Office using data as of June 30, 2013. The purpose of the report is to:  Set forth the assets and accrued liabilities of this plan as of June 30, 2013;  Determine the required employer contribution rate for the fiscal year July 1, 2015 through June 30, 2016;  Provide actuarial information as of June 30, 2013 to the CalPERS Board of Administration and other interested parties; and to  Provide pension information as of June 30, 2013 to be used in financial reports subject to Governmental Accounting Standards Board (GASB) Statement Number 27 for a Single Employer Defined Benefit Pension Plan. California Actuarial Advisory Panel Recommendations This report includes all the basic disclosure elements as described in the Model Disclosure Elements for Actuarial Valuation Reports recommended in 2011 by the California Actuarial Advisory Panel (CAAP), with the exception of including the original base amounts of the various components of the unfunded liability in the Schedule of Amortization Bases shown on page 19. Additionally, this report includes the following “Enhanced Risk Disclosures” also recommended by the CAAP in the Model Disclosure Elements document:  A “Deterministic Stress Test,” projecting future results under different investment income scenarios  A “Sensitivity Analysis,” showing the impact on current valuation results using a 1 percent plus or minus change in the discount rate. CALPERS ACTUARIAL VALUATION - June 30, 2013 SAFETY PLAN OF THE CITY OF PALO ALTO CalPERS ID: 6373437857 Page 6 The use of this report for any other purposes may be inappropriate. In particular, this report does not contain information applicable to alternative benefit costs. The employer should contact their actuary before disseminating any portion of this report for any reason that is not explicitly described above. Required Employer Contribution Fiscal Year Fiscal Year 2014-15 2015-16 Actuarially Determined Employer Contributions 1. Contribution in Projected Dollars a) Total Normal Cost $ 6,371,908 $ 6,424,290 b) Employee Contribution1 2,057,371 2,097,372 c) Employer Normal Cost [(1a) – (1b)] 4,314,537 4,326,918 d) Unfunded Liability Contribution 4,721,544 5,413,603 e) Required Employer Contribution [(1c) + (1d)] $ 9,036,081 $ 9,740,521 Projected Annual Payroll for Contribution Year $ 22,859,681 $ 23,229,280 2. Contribution as a Percentage of Payroll a) Total Normal Cost 27.874% 27.656% b) Employee Contribution1 9.000% 9.029% c) Employer Normal Cost [(2a) – (2b)] 18.874% 18.627% d) Unfunded Liability Rate 20.654% 23.305% e) Required Employer Rate [(2c) + (2d)] 39.528% 41.932% Minimum Employer Contribution Rate2 39.528% 41.932% Annual Lump Sum Prepayment Option3 $ 8,715,170 $ 9,394,593 1For classic members this is the percentage specified in the Public Employees Retirement Law, net of any reduction from the use of a modified formula or other factors. For PEPRA members the member contribution rate is based on 50 percent of the normal cost. A development of PEPRA member contribution rates can be found in Appendix D. Employee cost sharing is not shown in this report. 2The Minimum Employer Contribution Rate under PEPRA is the greater of the required employer rate or the employer normal cost. 3Payment must be received by CalPERS before the first payroll reported to CalPERS of the new fiscal year and after June 30. If there is contractual cost sharing or other change, this amount will change. Plan’s Funded Status June 30, 2012 June 30, 2013 1. Present Value of Projected Benefits $ 382,313,961 $ 392,560,445 2. Entry Age Normal Accrued Liability 327,608,300 338,666,499 3. Market Value of Assets (MVA) $ 215,605,457 $ 233,417,363 4. Unfunded Liability [(2) – (3)] $ 112,002,843 $ 105,249,136 5. Funded Ratio [(3) / (2)] 65.8% 68.9% Superfunded Status No No CALPERS ACTUARIAL VALUATION - June 30, 2013 SAFETY PLAN OF THE CITY OF PALO ALTO CalPERS ID: 6373437857 Page 7 Cost Actuarial Cost Estimates in General What will this pension plan cost? Unfortunately, there is no simple answer. There are two major reasons for the complexity of the answer. First, actuarial calculations, including the ones in this report, are based on a number of assumptions about the future. These assumptions can be divided into two categories.  Demographic assumptions include the percentage of employees that will terminate, die, become disabled, and retire in each future year.  Economic assumptions include future salary increases for each active employee, and the assumption with the greatest impact, future asset returns at CalPERS for each year into the future until the last dollar is paid to current members of your plan. While CalPERS has set these assumptions to reflect our best estimate of the real future of your plan, it must be understood that these assumptions are very long-term predictors and will surely not be realized in any one year. For example, while the asset earnings at CalPERS have averaged more than the assumed return of 7.5 percent for the past twenty year period ending June 30, 2013, returns for each fiscal year ranged from negative -24 percent to +21.7 percent. Second, the very nature of actuarial funding produces the answer to the question of plan cost as the sum of two separate pieces.  The Normal Cost (i.e., the annual cost associated with one year of service accrual) expressed as a percentage of total active payroll.  The Past Service Cost or Accrued Liability (i.e., the current value of the benefit for all credited past service of current members) which is expressed as a lump sum dollar amount. The cost is the sum of a percent of future pay and a lump sum dollar amount (the sum of an apple and an orange if you will). To communicate the total cost, either the Normal Cost (i.e., future percent of payroll) must be converted to a lump sum dollar amount (in which case the total cost is the present value of benefits), or the Past Service Cost (i.e., the lump sum) must be converted to a percent of payroll (in which case the total cost is expressed as the employer’s rate, part of which is permanent and part temporary). Converting the Past Service Cost lump sum to a percent of payroll requires a specific amortization period, and the employer rate will vary depending on the amortization period chosen. CALPERS ACTUARIAL VALUATION - June 30, 2013 SAFETY PLAN OF THE CITY OF PALO ALTO CalPERS ID: 6373437857 Page 8 Changes since the Prior Year’s Valuation Benefits The standard actuarial practice at CalPERS is to recognize mandated legislative benefit changes in the first annual valuation following the effective date of the legislation. Voluntary benefit changes by plan amendment are generally included in the first valuation that is prepared after the amendment becomes effective even if the valuation date is prior to the effective date of the amendment. This valuation generally reflects plan changes by amendments effective before the date of the report. Please refer to the “Plan’s Major Benefit Options” and Appendix B for a summary of the plan provisions used in this valuation. The effect of any mandated benefit changes or plan amendments on the unfunded liability is shown in the “(Gain)/Loss Analysis” and the effect on your employer contribution rate is shown in the “Reconciliation of Required Employer Contributions.” It should be noted that no change in liability or rate is shown for any plan changes, which were already included in the prior year’s valuation. Actuarial Methods and Assumptions On April 17, 2013, the CalPERS Board of Administration approved a recommendation to change the CalPERS amortization and smoothing policies. Beginning with the June 30, 2013 valuations that set the 2015-16 rates, CalPERS will no longer use an actuarial value of assets and will employ an amortization and rate smoothing policy that will pay for all gains and losses over a fixed 30-year period with the increases or decreases in the rate phased in over a 5-year period. A change in the calculation of termination with vested benefits liability for active members was made this year to better reflect the retirement experience. After termination with vested benefits, a miscellaneous member is assumed to retire at age 59 and a safety member at age 54 rather than at earliest retirement age. The higher benefit factors at these ages results in a slightly higher liability and a modest increase in normal cost. Public Employees’ Pension Reform Act of 2013 (PEPRA) On January 1, 2013, the Public Employees’ Pension Reform Act of 2013 (PEPRA) took effect, requiring that a public employer’s contribution to a defined benefit plan, in combination with employee contributions to that defined benefit plan, shall not be less than the normal cost rate. Beginning July 1, 2013, this means that some plans with surplus will be paying more than they otherwise would. For more information on PEPRA, please refer to the CalPERS website. Subsequent Events Actuarial Methods and Assumptions In 2014 CalPERS completed a 2-year asset liability management study incorporating actuarial assumptions and strategic asset allocation. On February 19, 2014 the CalPERS Board of Administration adopted relatively modest changes to the current asset allocation that will reduce the expected volatility of returns (see Risk Analysis section of report). The adopted asset allocation is expected to have a long- term blended return that continues to support a discount rate assumption of 7.5 percent. The Board also approved several changes to the demographic assumptions that more closely align with actual experience. The most significant of these is mortality improvement to acknowledge the greater life expectancies we are seeing in our membership and expected continued improvements. The new actuarial assumptions will be used to set the FY 2016-17 contribution rates for public agency employers. The increase in liability due to new actuarial assumptions will be calculated in the 2014 actuarial valuation and will be amortized over a 20-year period with a 5-year ramp-up/ramp-down in accordance with Board policy. The impact of assumption changes are included in the “Expected Rate Increases” subsection of the “Risk Analysis” section. ASSETS  RECONCILIATION OF THE MARKET VALUE OF ASSETS  ASSET ALLOCATION  CALPERS HISTORY OF INVESTMENT RETURNS THIS PAGE INTENTIONALLY LEFT BLANK CALPERS ACTUARIAL VALUATION - June 30, 2013 SAFETY PLAN OF THE CITY OF PALO ALTO CalPERS ID: 6373437857 Page 11 Reconciliation of the Market Value of Assets 1. Market Value of Assets as of 6/30/12 Including Receivables $ 215,605,457 2. Receivables for Service Buybacks as of 6/30/12 327,039 3. Market Value of Assets as of 6/30/12 215,278,418 4. Employer Contributions 6,414,351 5. Employee Contributions 3,340,206 6. Benefit Payments to Retirees and Beneficiaries (19,259,784) 7. Refunds (3,702) 8. Lump Sum Payments 0 9. Transfers and Miscellaneous Adjustments 13,898 10. Investment Return 26,935,504 11. Market Value of Assets as of 6/30/13 $ 232,718,891 12. Receivables for Service Buybacks as of 6/30/13 698,472 13. Market Value of Assets as of 6/30/13 Including Receivables $ 233,417,363 CALPERS ACTUARIAL VALUATION - June 30, 2013 SAFETY PLAN OF THE CITY OF PALO ALTO CalPERS ID: 6373437857 Page 12 Asset Allocation CalPERS adheres to an Asset Allocation Strategy which establishes asset class allocation policy targets and ranges, and manages those asset class allocations within their policy ranges. CalPERS recognizes that over 90 percent of the variation in investment returns of a well-diversified pool of assets can typically be attributed to asset allocation decisions. On February 19, 2014 the CalPERS Board of Administration adopted changes to the current asset allocation as shown in the Policy Target Allocation below expressed as percentage of total assets. The asset allocation is has an expected long term blended rate of return of 7.5 percent. The asset allocation and market value of assets shown below reflect the values of the Public Employees Retirement Fund (PERF) in its entirety as of June 30, 2013. The assets for CITY OF PALO ALTO SAFETY PLAN are part of the Public Employees Retirement Fund (PERF) and are invested accordingly. (A) Asset Class (B) Market Value ($ Billion) (C) Policy Target Allocation 1) Global Equity 133.4 47.0% 2) Private Equity 31.4 12.0% 3) Global Fixed Income 43.9 19.0% 4) Liquidity 10.5 2.0% 5) Real Assets 25.2 14.0% 6) Inflation Sensitive Assets 9.4 6.0% 7) Absolute Return Strategy (ARS) 7.2 0.0% Total Fund $261.0 100.0% Public Equity 51.1% Private Equity 12.0% Income 16.8% Liquidity 4.0% Real Assets 9.6% Inflation 3.6% ARS 2.8% Asset Allocation at 6/30/2013 CALPERS ACTUARIAL VALUATION - June 30, 2013 SAFETY PLAN OF THE CITY OF PALO ALTO CalPERS ID: 6373437857 Page 13 CalPERS History of Investment Returns The following is a chart with the 20-year historical annual returns of the Public Employees Retirement Fund for each fiscal year ending on June 30. Beginning in 2002, the figures are reported as gross of fees. The table below shows historical geometric mean annual returns of the Public Employees Retirement Fund for each fiscal year ending on June 30, 2013, (figures are reported as gross of fees). The geometric mean rate of return is the average rate per period compounded over multiple periods. It should be recognized that in any given year the rate of return is volatile. Although the expected rate of return on the recently adopted new asset allocation is 7.5 percent the portfolio has an expected volatility of 11.76 percent per year. Consequently when looking at investment returns it is more instructive to look at returns over longer time horizons. History of CalPERS Geometric Mean Rates of Return and Volatilities 1 year 5 year 10 year 20 year 30 year Geometric Return 13.2% 3.5% 7.0% 7.6% 9.4% Volatility – 17.9% 13.9% 11.8% 11.6% -25.0% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 2. 0 % 16 . 3 % 15 . 3 % 20 . 1 % 19 . 5 % 12 . 5 % 10 . 5 % -7. 2 % -6. 1 % 3. 7 % 16 . 6 % 12 . 3 % 11 . 8 % 19 . 1 % -5. 1 % -24 . 0 % 13 . 3 % 21 . 7 % 0. 1 % 13 . 2 % THIS PAGE INTENTIONALLY LEFT BLANK LIABILITIES AND RATES  DEVELOPMENT OF ACCRUED AND UNFUNDED LIABILITIES  (GAIN) / LOSS ANALYSIS 06/30/12 - 06/30/13  SCHEDULE OF AMORTIZATION BASES  ALTERNATE AMORTIZATION SCHEDULES  RECONCILIATION OF REQUIRED EMPLOYER CONTRIBUTIONS  EMPLOYER CONTRIBUTION RATE HISTORY  FUNDING HISTORY THIS PAGE INTENTIONALLY LEFT BLANK CALPERS ACTUARIAL VALUATION - June 30, 2013 SAFETY PLAN OF THE CITY OF PALO ALTO CalPERS ID: 6373437857 Page 17 Development of Accrued and Unfunded Liabilities 1. Present Value of Projected Benefits a) Active Members $ 136,627,084 b) Transferred Members 7,130,683 c) Terminated Members 1,166,821 d) Members and Beneficiaries Receiving Payments 247,635,857 e) Total $ 392,560,445 2. Present Value of Future Employer Normal Costs $ 36,022,369 3. Present Value of Future Employee Contributions $ 17,871,577 4. Entry Age Normal Accrued Liability a) Active Members [(1a) - (2) - (3)] $ 82,733,138 b) Transferred Members (1b) 7,130,683 c) Terminated Members (1c) 1,166,821 d) Members and Beneficiaries Receiving Payments (1d) 247,635,857 e) Total $ 338,666,499 5. Market Value of Assets (MVA) $ 233,417,363 6. Unfunded Liability [(4e) - (5)] $ 105,249,136 7. Funded Ratio [(5) / (4e)] 68.9% CALPERS ACTUARIAL VALUATION - June 30, 2013 SAFETY PLAN OF THE CITY OF PALO ALTO CalPERS ID: 6373437857 Page 18 (Gain) /Loss Analysis 6/30/12 – 6/30/13 To calculate the cost requirements of the plan, assumptions are made about future events that affect the amount and timing of benefits to be paid and assets to be accumulated. Each year actual experience is compared to the expected experience based on the actuarial assumptions. This results in actuarial gains or losses, as shown below. A Total (Gain)/Loss for the Year 1. Unfunded Accrued Liability (UAL) as of 6/30/12 $ 68,947,159 2. Expected Payment on the UAL during 2012/2013 2,623,616 3. Interest through 6/30/13 [.075 x (A1) - ((1.075)½ - 1) x (A2)] 5,074,430 4. Expected UAL before all other changes [(A1) - (A2) + (A3)] 71,397,973 5. Change due to plan changes 0 6. Change due to assumption change 0 7. Expected UAL after all other changes [(A4) + (A5) + (A6)] 71,397,973 8. Actual UAL as of 6/30/13 105,249,136 9. Total (Gain)/Loss for 2012/2013 [(A8) - (A7)] $ 33,851,163 B Contribution (Gain)/Loss for the Year 1. Expected Contribution (Employer and Employee) $ 8,629,750 2. Interest on Expected Contributions 317,765 3. Actual Contributions 9,754,557 4. Interest on Actual Contributions 359,183 5. Expected Contributions with Interest [(B1) + (B2)] 8,947,515 6. Actual Contributions with Interest [(B3) + (B4)] 10,113,740 7. Contribution (Gain)/Loss [(B5) - (B6)] $ (1,166,225) C Asset (Gain)/Loss for the Year 1. Actuarial Value of Assets as of 6/30/12 Including Receivables $ 258,661,141 2. Receivables as of 6/30/12 327,039 3. Actuarial Value of Assets as of 6/30/12 258,334,102 4. Contributions Received 9,754,557 5. Benefits and Refunds Paid (19,263,486) 6. Transfers and miscellaneous adjustments 13,898 7. Expected Int. [.075 x (C3) + ((1.075)½ - 1) x ((C4) + (C5) + (C6))] 19,025,431 8. Expected Assets as of 6/30/13 [(C3) + (C4) + (C5) + (C6) + (C7)] 267,864,502 9. Receivables as of 6/30/13 698,472 10. Expected Assets Including Receivables 268,562,974 11. Market Value of Assets as of 6/30/13 233,417,363 12. Asset (Gain)/Loss [(C10) - (C11)] $ 35,145,611 D Liability (Gain)/Loss for the Year 1. Total (Gain)/Loss (A9) $ 33,851,163 2. Contribution (Gain)/Loss (B7) (1,166,225) 3. Asset (Gain)/Loss (C12) 35,145,611 4. Liability (Gain)/Loss [(D1) - (D2) - (D3)] $ (128,223) CALPERS ACTUARIAL VALUATION - June 30, 2013 SAFETY PLAN OF THE CITY OF PALO ALTO CalPERS ID: 6373437857 Page 19 Schedule of Amortization Bases There is a two-year lag between the Valuation Date and the Contribution Fiscal Year.  The assets, liabilities and funded status of the plan are measured as of the valuation date; June 30, 2013.  The employer contribution rate determined by the valuation is for the fiscal year beginning two years after the valuation date; fiscal year 2015-16. This two-year lag is necessary due to the amount of time needed to extract and test the membership and financial data, and due to the need to provide public agencies with their employer contribution rates well in advance of the start of the fiscal year. The Unfunded Liability is used to determine the employer contribution and therefore must be rolled forward two years from the valuation date to the first day of the fiscal year for which the contribution is being determined. The Unfunded Liability is rolled forward each year by subtracting the expected Payment on the Unfunded Liability for the fiscal year and adjusting for interest. The Expected Payment on the Unfunded Liability for a fiscal year is equal to the Expected Employer Contribution for the fiscal year minus the Expected Normal Cost for the year. The Employer Contribution Rate for the first fiscal year is determined by the actuarial valuation two years ago and the rate for the second year is from the actuarial valuation one year ago. The Normal Cost Rate for each of the two fiscal years is assumed to be the same as the rate determined by the current valuation. All expected dollar amounts are determined by multiplying the rate by the expected payroll for the applicable fiscal year, based on payroll as of the valuation date. Amounts for Fiscal 2015-16 Reason for Base Date Established Amorti- zation Period Balance 6/30/13 Expected Payment 2013-14 Balance 6/30/14 Expected Payment 2014-15 Balance 6/30/15 Scheduled Payment for 2015-16 Payment as Percentage of Payroll FRESH START 06/30/04 21 $(925,453) $(64,163) $(928,336) $(66,087) $(929,441) $(68,070) (0.293%) BENEFIT CHANGE 06/30/05 11 $158,922 $16,174 $154,072 $16,660 $148,354 $17,159 0.074% ASSUMPTION CHANGE 06/30/09 16 $7,634,175 $617,183 $7,566,829 $635,699 $7,475,235 $654,769 2.819% SPECIAL (GAIN)/LOSS 06/30/09 26 $8,660,491 $538,511 $8,751,688 $554,666 $8,832,974 $571,306 2.459% SPECIAL (GAIN)/LOSS 06/30/10 27 $4,107,580 $250,867 $4,155,544 $258,393 $4,199,302 $266,144 1.146% ASSUMPTION CHANGE 06/30/11 18 $6,287,467 $474,738 $6,266,808 $488,980 $6,229,833 $503,649 2.168% SPECIAL (GAIN)/LOSS 06/30/11 28 $2,319,200 $139,269 $2,348,742 $143,447 $2,376,169 $147,751 0.636% PAYMENT (GAIN)/LOSS 06/30/12 29 $977,891 $(444,542) $1,512,144 $90,805 $1,531,406 $93,529 0.403% (GAIN)/LOSS 06/30/12 29 $42,177,701 $1,987,915 $43,279,914 $2,598,982 $43,831,226 $2,676,951 11.524% (GAIN)/LOSS 06/30/13 30 $33,851,162 $517 $36,389,463 $(14,346) $39,133,547 $550,415 2.369% TOTAL $105,249,136 $3,516,469 $109,496,868 $4,707,199 $112,828,605 $5,413,603 23.305% CALPERS ACTUARIAL VALUATION - June 30, 2013 SAFETY PLAN OF THE CITY OF PALO ALTO CalPERS ID: 6373437857 Page 20 Page 20 Alternate Amortization Schedules The amortization schedule shown on the previous page shows the minimum contributions required according to CalPERS amortization policy. There has been considerable interest from many agencies in paying off these unfunded accrued liabilities sooner and the passible savings in doing so. Therefore, we have provided alternate amortization schedules to help analyze your current amortization schedule and illustrate the advantages of accelerating payments towards your plan’s unfunded liability of $112,828,605 as of June 30, 2015, which under the minimum schedule, will require total payments of $300,400,504. Shown below are the level rate payments required to amortize your plan’s unfunded liability assuming a fresh start over the various periods noted. Note that the payments under each scenario would increase by 3 percent for each year into the future. If you are interested in changing your plan’s amortization schedule please contact your plan actuary to discuss further. Level Rate of Payroll Amortization Period 2015-16 Rate 2015-16 Payment Total Payments Total Interest Difference from Current Schedule 25 32.103% $ 7,457,343 $ 271,889,238 $ 159,060,633 $ 28,511,266 20 36.674% $ 8,519,172 $ 228,913,342 $ 116,084,737 $ 71,487,162 CALPERS ACTUARIAL VALUATION - June 30, 2013 SAFETY PLAN OF THE CITY OF PALO ALTO CalPERS ID: 6373437857 Page 21 Reconciliation of Required Employer Contributions Percentage of Projected Payroll Estimated $ Based on Projected Payroll 1. Contribution for 7/1/14 – 6/30/15 39.528% $ 9,036,081 2. Effect of changes since the prior year annual valuation a) Effect of unexpected changes in demographics and financial results 2.404% 558,345 b) Effect of plan changes 0.000% 0 c) Effect of changes in Assumptions 0.000% 0 d) Effect of change in payroll - 146,095 e) Effect of elimination of amortization base 0.000% 0 f) Effect of changes due to Fresh Start 0.000% 0 g) Net effect of the changes above [Sum of (a) through (f)] 2.404% 704,440 3. Contribution for 7/1/15 – 6/30/16 [(1)+(2g)] 41.932% 9,740,521 The contribution actually paid (item 1) may be different if a prepayment of unfunded actuarial liability is made or a plan change became effective after the prior year’s actuarial valuation was performed. CALPERS ACTUARIAL VALUATION - June 30, 2013 SAFETY PLAN OF THE CITY OF PALO ALTO CalPERS ID: 6373437857 Page 22 Employer Contribution Rate History The table below provides a recent history of the employer contribution rates for your plan, as determined by the annual actuarial valuation. It does not account for prepayments or benefit changes made in the middle of the year. Required By Valuation Fiscal Year Employer Normal Cost Unfunded Rate Total Employer Contribution Rate 2010 - 2011 16.996% 7.699% 24.695% 2011 - 2012 17.813% 12.312% 30.125% 2012 - 2013 18.015% 13.035% 31.050% 2013 - 2014 18.658% 14.786% 33.444% 2014 - 2015 18.874% 20.654% 39.528% 2015 - 2016 18.627% 23.305% 41.932% Funding History The Funding History below shows the recent history of the actuarial accrued liability, the market value of assets, the funded ratio and the annual covered payroll. Valuation Date Accrued Liability Market Value of Assets (MVA) Funded Ratio Annual Covered Payroll 06/30/08 $ 258,963,682 $ 235,054,144 90.8% $ 22,181,324 06/30/09 280,292,862 172,078,263 61.4% 22,086,992 06/30/10 293,895,452 190,527,731 64.8% 23,030,400 06/30/11 313,183,690 225,015,089 71.8% 22,774,462 06/30/12 327,608,300 215,605,457 65.8% 20,919,846 06/30/13 338,666,499 233,417,363 68.9% 21,258,082 RISK ANALYSIS  VOLATILITY RATIOS  PROJECTED RATES  ANALYSIS OF FUTURE INVESTMENT RETURN SCENARIOS  ANALYSIS OF DISCOUNT RATE SENSITIVITY  HYPOTHETICAL TERMINATION LIABILITY THIS PAGE INTENTIONALLY LEFT BLANK CALPERS ACTUARIAL VALUATION - June 30, 2013 SAFETY PLAN OF THE CITY OF PALO ALTO CalPERS ID: 6373437857 Page 25 Volatility Ratios The actuarial calculations supplied in this communication are based on a number of assumptions about very long- term demographic and economic behavior. Unless these assumptions (terminations, deaths, disabilities, retirements, salary growth, and investment return) are exactly realized each year, there will be differences on a year-to-year basis. The year-to-year differences between actual experience and the assumptions are called actuarial gains and losses and serve to lower or raise the employer’s rates from one year to the next. Therefore, the rates will inevitably fluctuate, especially due to the ups and downs of investment returns. Asset Volatility Ratio (AVR) Plans that have higher asset to payroll ratios produce more volatile employer rates due to investment return. For example, a plan with an asset to payroll ratio of 8 may experience twice the contribution volatility due to investment return volatility, than a plan with an asset to payroll ratio of 4. Below we have shown your asset volatility ratio, a measure of the plan’s current rate volatility. It should be noted that this ratio is a measure of the current situation. It increases over time but generally tends to stabilize as the plan matures. Liability Volatility Ratio (LVR) Plans that have higher liability to payroll ratios produce more volatile employer rates due to investment return and changes in liability. For example, a plan with a liability to payroll ratio of 8 is expected to have twice the contribution volatility of a plan with a liability to payroll ratio of 4. The liability volatility ratio is also included in the table below. It should be noted that this ratio indicates a longer-term potential for contribution volatility and the asset volatility ratio, described above, will tend to move closer to this ratio as the plan matures. Rate Volatility As of June 30, 2013 1. Market Value of Assets without Receivables $ 232,718,891 2. Payroll 21,258,082 3. Asset Volatility Ratio (AVR = 1. / 2.) 10.9 4. Accrued Liability $ 338,666,499 5. Liability Volatility Ratio (LVR = 4. / 2.) 15.9 CALPERS ACTUARIAL VALUATION - June 30, 2013 SAFETY PLAN OF THE CITY OF PALO ALTO CalPERS ID: 6373437857 Page 26 Projected Rates The estimated rate for 2016-17 is based on a projection of the most recent information we have available, including an estimated 18 percent investment return for fiscal 2013-14, the impact of the new smoothing methods adopted by the CalPERS Board in April 2013 that will impact employer rates for the first time in 2015-16 and an estimate of the impact of the new actuarial assumptions adopted by the CalPERS Board in February 2014. These new demographic assumptions include a 20-year projection of on-going mortality improvement. A complete listing of the new demographic assumptions to be implemented with the June 30, 2014 annual actuarial valuation and incorporated in the projected rates for FY 2016-17 and beyond can be found on the CalPERS website at: http://www.calpers.ca.gov/eip-docs/about/pubs/employer/actuarial-assumptions.xls The table below shows projected employer contribution rates (before cost sharing) for the next five Fiscal Years, assuming CalPERS earns 18 percent for fiscal year 2013-14 and 7.50 percent every fiscal year thereafter, and assuming that all other actuarial assumptions will be realized and that no further changes to assumptions, contributions, benefits, or funding will occur between now and the beginning of the fiscal year 2016-17. New Rate Projected Future Employer Contribution Rates 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 Contribution Rates: 41.932% 45.1% 47.5% 49.9% 52.3% 52.4% Analysis of Future Investment Return Scenarios In 2014 CalPERS completed a 2-year asset liability management study incorporating actuarial assumptions and strategic asset allocation. On February 19, 2014 the CalPERS Board of Administration adopted relatively modest changes to the current asset allocation that will reduce the expected volatility of returns. The adopted asset allocation is expected to have a long- term blended return that continues to support a discount rate assumption of 7.5 percent. The newly adopted asset allocation has a lower expected investment volatility which will result in better risk characteristics than an equivalent margin for adverse deviation. The current asset allocation has an expected standard deviation of 12.45 percent while the newly adopted asset allocation has a lower expected standard deviation of 11.76 percent. The investment return for fiscal year 2013-14 was announced July 14, 2014. The investment return in fiscal year 2013-14 is 18.42 percent before administrative expenses. This year, there will be no adjustment for real estate and private equities. For purposes of projecting future employer rates, we are assuming an 18.0 percent investment return for fiscal year 2013-14. The investment return realized during a fiscal year first affects the contribution rate for the fiscal year two years later. Specifically, the investment return for 2013-14 will first be reflected in the June 30, 2014 actuarial valuation that will be used to set the 2016-17 employer contribution rates, the 2014-15 investment return will first be reflected in the June 30, 2015 actuarial valuation that will be used to set the 2017-18 employer contribution rates and so forth. Based on a 18 percent investment return for fiscal year 2013-14, the April 17, 2013 CalPERS Board-approved amortization and rate smoothing method change, the February 18, 2014 new demographic assumptions including 20-year mortality improvement using Scale BB and assuming that all other actuarial assumptions will be realized, and that no further changes to assumptions, contributions, benefits, or funding will occur between now and the beginning of the fiscal year 2016-17, the effect on the 2016-17 Employer Rate is as follows: Estimated 2016-17 Employer Rate Estimated Increase in Employer Rate between 2015-16 and 2016-17 45.1% 3.2% CALPERS ACTUARIAL VALUATION - June 30, 2013 SAFETY PLAN OF THE CITY OF PALO ALTO CalPERS ID: 6373437857 Page 27 As part of this report, a sensitivity analysis was performed to determine the effects of various investment returns during fiscal years 2014-15, 2015-16 and 2016-17 on the 2017-18, 2018-19 and 2019-20 employer rates. Once again, the projected rate increases assume that all other actuarial assumptions will be realized and that no further changes to assumptions, contributions, benefits, or funding will occur. Five different investment return scenarios were selected.  The first scenario is what one would expect if the markets were to give us a 5th percentile return from July 1, 2014 through June 30, 2017. The 5th percentile return corresponds to a -3.8 percent return for each of the 2014-15, 2015-16 and 2016-17 fiscal years.  The second scenario is what one would expect if the markets were to give us a 25th percentile return from July 1, 2014 through June 30, 2017. The 25th percentile return corresponds to a 2.8 percent return for each of the 2014-15, 2015-16 and 2016-17 fiscal years.  The third scenario assumed the return for 2014-15, 2015-16, 2016-17 would be our assumed 7.5 percent investment return which represents about a 49th percentile event.  The fourth scenario is what one would expect if the markets were to give us a 75th percentile return from July 1, 2014 through June 30, 2017. The 75th percentile return corresponds to a 12.0 percent return for each of the 2014-15, 2015-16 and 2016-17 fiscal years.  Finally, the last scenario is what one would expect if the markets were to give us a 95th percentile return from July 1, 2014 through June 30, 2017. The 95th percentile return corresponds to a 18.9 percent return for each of the 2014-15, 2015-16 and 2016-17 fiscal years. The table below shows the estimated projected contribution rates and the estimated increases for your plan under the five different scenarios. 2014-17 Investment Return Scenario Estimated Employer Rate Estimated Change in Employer Rate between 2016-17 and 2019-20 2017-18 2018-19 2019-20 -3.8% (5th percentile) 49.4% 55.5% 63.1% 18.0% 2.8% (25th percentile) 48.3% 52.3% 57.0% 11.9% 7.5% 47.5% 49.9% 52.3% 7.2% 12.0%(75th percentile) 46.7% 47.6% 47.5% 2.4% 18.9%(95th percentile) 45.6% 43.8% 39.7% -5.4% Analysis of Discount Rate Sensitivity The following analysis looks at the 2015-16 employer contribution rates under two different discount rate scenarios. Shown below are the employer contribution rates assuming discount rates that are 1 percent lower and 1 percent higher than the current valuation discount rate. This analysis gives an indication of the potential required employer contribution rates if the PERF were to realize investment returns of 6.50 percent or 8.50 percent over the long-term. This type of analysis gives the reader a sense of the long-term risk to the employer contribution rates. 2015-16 Employer Contribution Rate As of June 30, 2013 6.50% Discount Rate (-1%) 7.50% Discount Rate (assumed rate) 8.50% Discount Rate (+1%) Employer Normal Cost 25.365% 18.627% 13.423% Accrued Liability $ 380,696,166 $ 338,666,499 $ 303,751,850 Unfunded Accrued Liability $ 147,278,803 $ 105,249,136 $ 70,334,487 CALPERS ACTUARIAL VALUATION - June 30, 2013 SAFETY PLAN OF THE CITY OF PALO ALTO CalPERS ID: 6373437857 Page 28 Hypothetical Termination Liability Below is an estimate of the financial position of your plan if you had terminated your contract with CalPERS as of June 30, 2013 using the discount rates shown below. Your plan liability on a termination basis is calculated differently compared to the plan’s ongoing funding liability. For this hypothetical termination liability both compensation and service is frozen as of the valuation date and no future pay increases or service accruals are included. In December 2012, the CalPERS Board adopted a more conservative investment policy and asset allocation strategy for the Terminated Agency Pool. Since the Terminated Agency Pool has limited funding sources, expected benefit payments are secured by risk-free assets. With this change, CalPERS increased benefit security for members while limiting its funding risk. This asset allocation has a lower expected rate of return than the PERF. Consequently, the lower discount rate for the Terminated Agency pool results in higher liabilities for terminated plans. In order to terminate your plan, you must first contact our Retirement Services Contract Unit to initiate a Resolution of Intent to Terminate. The completed Resolution will allow your plan actuary to give you a preliminary termination valuation with a more up-to-date estimate of your plan liabilities. CalPERS strongly advises you to consult with your plan actuary before beginning this process. Valuation Date Hypothetical Termination Liability1 Market Value of Assets (MVA) Unfunded Termination Liability Termination Funded Ratio Termination Liability Discount Rate2 06/30/11 $ 458,637,906 $ 225,015,089 $ 233,622,817 49.1% 4.82% 06/30/12 610,760,250 215,605,457 395,154,793 35.3% 2.98% 06/30/13 560,471,618 233,417,363 327,054,255 41.6% 3.72% 1 The hypothetical liabilities calculated above include a 7 percent mortality contingency load in accordance with Board policy. Other actuarial assumptions, such as wage and inflation assumptions, can be found in appendix A. 2 The discount rate assumption used for termination valuations is a weighted average of the 10 and 30-year US Treasury yields in effect on the valuation date that equal the duration of the pension liabilities. For purposes of this hypothetical termination liability estimate, the discount rate used, is the yield on the 30-year US Treasury Separate Trading of Registered Interest and Principal of Securities (STRIPS). Note that as of June 30, 2014 the 30-year STRIPS rate was 3.55 percent. GASB STATEMENT NO. 27 THIS PAGE INTENTIONALLY LEFT BLANK CALPERS ACTUARIAL VALUATION - June 30, 2013 SAFETY PLAN OF THE CITY OF PALO ALTO CalPERS ID: 6373437857 Page 31 SAFETY PLAN of the CITY OF PALO ALTO Information for Compliance with GASB Statement No. 27 Disclosure under GASB 27 follows. However, note that effective for financial statements for fiscal years beginning after June 15, 2014, GASB 68 replaces GASB 27. This will be the last year that GASB disclosure information will be included in your annual actuarial report. GASB 68 will require additional reporting that CalPERS is intending to provide upon request for an additional fee. We urge you to start discussions with your auditors on how to implement GASB 68. Under GASB 27, an employer reports an annual pension cost (APC) equal to the annual required contribution (ARC) plus an adjustment for the cumulative difference between the APC and the employer’s actual plan contributions for the year. The cumulative difference is called the net pension obligation (NPO). Since GASB 68 replaces GASB 27, for fiscal year 2015-16, the APC is replaced by the Actuarially Determined Contribution (ADC). The ADC for July 1, 2015 to June 30, 2016 is 41.932% percent of payroll. In order to calculate the dollar value of the ADC for inclusion in financial statements prepared as of June 30, 2016, this contribution rate, less any employee cost sharing, as modified by any amendments for the year, would be multiplied by the payroll of covered employees that was actually paid during the period July 1, 2015 to June 30, 2016. The employer and the employer’s auditor are responsible for determining the NPO, APC or ADC for a given fiscal year. A summary of principal assumptions and methods used to determine the funded status is shown below. Retirement Program Valuation Date June 30, 2013 Actuarial Cost Method Entry Age Normal Cost Method Amortization Method Level Percent of Payroll Asset Valuation Method Market Value Actuarial Assumptions Discount Rate 7.50% (net of administrative expenses) Projected Salary Increases 3.30% to 14.20% depending on Age, Service, and type of employment Inflation 2.75% Payroll Growth 3.00% Individual Salary Growth A merit scale varying by duration of employment coupled with an assumed annual inflation growth of 2.75% and an annual production growth of 0.25%. Initial unfunded liabilities are amortized over a closed period that depends on the plan’s date of entry into CalPERS. Subsequent plan amendments are amortized as a level percentage of pay over a closed 20-year period. Gains and losses that occur in the operation of the plan are amortized over a 30-year period with Direct Rate Smoothing with a 5-year ramp up/ramp down. If the plan’s accrued liability exceeds the actuarial value of plan assets, then the amortization payment on the total unfunded liability may not be lower than the payment calculated over a 30-year amortization period. More detailed information on assumptions and methods is provided in Appendix A of this report. Appendix B contains a description of benefits included in the valuation. The Schedule of Funding Progress below shows the recent history of the actuarial accrued liability, actuarial value of assets, their relationship and the relationship of the unfunded actuarial accrued liability to payroll. Valuation Date Accrued Liability (a) Actuarial value of Assets* (b) Unfunded Liability (UL) (a)-(b) Funded Ratios (b)/(a) Annual Covered Payroll (c) UL As a % of Payroll [(a)-(b)]/(c) 06/30/09 $ 280,292,862 $ 236,274,455 $ 44,018,407 84.3% $ 22,086,992 199.3% 06/30/10 293,895,452 244,413,456 49,481,996 83.2% 23,030,400 214.9% 06/30/11 313,183,690 254,304,173 58,879,517 81.2% 22,774,462 258.5% 06/30/12 327,608,300 258,661,141 68,947,159 79.0% 20,919,846 329.6% 06/30/13 338,666,499 233,417,363 105,249,136 68.9% 21,258,082 495.1% * Beginning with the 6/30/2013 valuation Actuarial Value of Assets equals Market Value of Assets per CalPERS Direct Rate Smoothing Policy. THIS PAGE INTENTIONALLY LEFT BLANK PLAN’S MAJOR BENEFIT PROVISIONS THIS PAGE INTENTIONALLY LEFT BLANK CALPERS ACTUARIAL VALUATION – June 30, 2013 SAFETY PLAN OF THE CITY OF PALO ALTO CalPERS ID: 6373437857 Plan’s Major Benefit Options Shown below is a summary of the major optional benefits for which your agency has contracted. A description of principal standard and optional plan provisions is in the following section of this Appendix. Contract Package Receiving Receiving Active Police Active Fire Active Fire Active Police Active Fire Benefit Provision Benefit Formula 3.0% @ 50 3.0% @ 50 3.0% @ 50 2.7% @ 57 3.0% @ 50 Social Security Coverage No No No No No Full/Modified Full Full Full Full Full Final Average Compensation Period 12 mos. 12 mos. 12 mos. 36 mos. 12 mos. Sick Leave Credit No No No No No Non-Industrial Disability Standard Standard Standard Standard Standard Industrial Disability Yes Yes Yes Yes Yes Pre-Retirement Death Benefits Optional Settlement 2W No Yes Yes No Yes 1959 Survivor Benefit Level Level 1 Level 1 Level 1 Level 1 Level 1 Special Yes Yes Yes Yes Yes Alternate (firefighters) No No No No No Post-Retirement Death Benefits Lump Sum $500 $500 $500 $500 $500 $500 $500 Survivor Allowance (PRSA) No No No No No No No COLA 2% 2% 2% 2% 2% 2% 2% Contractual Employee Cost Sharing Page 35 CALPERS ACTUARIAL VALUATION – June 30, 2013 SAFETY PLAN OF THE CITY OF PALO ALTO CalPERS ID: 6373437857 Plan’s Major Benefit Options Shown below is a summary of the major optional benefits for which your agency has contracted. A description of principal standard and optional plan provisions is in the following section of this Appendix. Contract Package Active Fire Active Fire Active Fire Active Police Benefit Provision Benefit Formula 3.0% @ 50 3.0% @ 50 3.0% @ 55 3.0% @ 55 Social Security Coverage No No No No Full/Modified Full Full Full Full Final Average Compensation Period 12 mos. 12 mos. 36 mos. 36 mos. Sick Leave Credit No No No No Non-Industrial Disability Standard Standard Standard Standard Industrial Disability Yes Yes Yes Yes Pre-Retirement Death Benefits Optional Settlement 2W Yes Yes Yes No 1959 Survivor Benefit Level Level 1 Level 1 Level 1 Level 1 Special Yes Yes Yes Yes Alternate (firefighters) No No No No Post-Retirement Death Benefits Lump Sum $500 $500 $500 $500 Survivor Allowance (PRSA) No No No No COLA 2% 2% 2% 2% Page 36 APPENDICES  APPENDIX A – ACTUARIAL METHODS AND ASSUMPTIONS  APPENDIX B – PRINCIPAL PLAN PROVISIONS  APPENDIX C – PARTICIPANT DATA  APPENDIX D – DEVELOPMENT OF PPERA MEMBER CONTRIBUTION RATES  APPENDIX E – GLOSSARY OF ACTUARIAL TERMS THIS PAGE INTENTIONALLY LEFT BLANK APPENDIX A ACTUARIAL METHODS AND ASSUMPTIONS  ACTUARIAL DATA  ACTUARIAL METHODS  ACTUARIAL ASSUMPTIONS  MISCELLANEOUS THIS PAGE INTENTIONALLY LEFT BLANK CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX A ACTUARIAL METHODS AND ASSUMPTIONS A-1 Actuarial Data As stated in the Actuarial Certification, the data, which serves as the basis of this valuation, has been obtained from the various CalPERS databases. We have reviewed the valuation data and believe that it is reasonable and appropriate in aggregate. We are unaware of any potential data issues that would have a material effect on the results of this valuation, except that data does not always contain the latest salary information for former members now in reciprocal systems and does not recognize the potential for unusually large salary deviation in certain cases such as elected officials. Therefore, salary information in these cases may not be accurate. These situations are relatively infrequent, however, and when they do occur, they generally do not have a material impact on the employer contribution rates. Actuarial Methods Funding Method The actuarial funding method used for the Retirement Program is the Entry Age Normal Cost Method. Under this method, projected benefits are determined for all members and the associated liabilities are spread in a manner that produces level annual cost as a percent of pay in each year from the age of hire (entry age) to the assumed retirement age. The cost allocated to the current fiscal year is called the normal cost. The actuarial accrued liability for active members is then calculated as the portion of the total cost of the plan allocated to prior years. The actuarial accrued liability for members currently receiving benefits, for active members beyond the assumed retirement age, and for members entitled to deferred benefits, is equal to the present value of the benefits expected to be paid. No normal costs are applicable for these participants. The excess of the total actuarial accrued liability over the actuarial value of plan assets is called the unfunded actuarial accrued liability. Funding requirements are determined by adding the normal cost and an amortization of the unfunded liability as a level percentage of assumed future payrolls. Commencing with the June 30, 2013 valuation all new gains or losses are tracked and amortized over a fixed 30-year period with a 5 year ramp up at the beginning and a 5 year ramp down at the end of the amortization period. All changes in liability due to plan amendments (other than golden handshakes), changes in actuarial assumptions, or changes in actuarial methodology are amortized separately over a 20-year period with a 5 year ramp up at the beginning and a 5 year ramp down at the end of the amortization period. Changes in unfunded accrued liability due to a Golden Handshake will be amortized over a period of 5 years. If a plan’s accrued liability exceeds the market value of assets, the annual contribution with respect to the total unfunded liability may not be less than the amount produced by a 30-year amortization of the unfunded liability. An exception has been made for the change in asset value from actuarial to market value in this valuation. The CalPERS Board approved a 30-year amortization with a 5-year ramp-up/ramp-down for only this change in method. Additional contributions will be required for any plan or pool if their cash flows hamper adequate funding progress by preventing the expected funded status on a market value of assets basis to either:  Increase by at least 15 percent by June 30, 2043; or  Reach a level of 75 percent funded by June 30, 2043 The necessary additional contribution will be obtained by changing the amortization period of the gains and losses, except for those occurring in the fiscal years 2008-2009, 2009-2010, and 2010-2011 to a period, which will result in the satisfaction of the above criteria. CalPERS actuaries will reassess the criteria above when performing each future valuation to determine whether or not additional contributions are necessary. An exception to the funding rules above is used whenever the application of such rules results in inconsistencies. In these cases, a “fresh start” approach is used. This simply means that the current unfunded actuarial liability is projected and amortized over a set number of years. As mentioned above, if the annual contribution on the total unfunded liability was less than the amount produced by a 30-year amortization of the unfunded liability, the plan actuary would implement a 30-year fresh start. However, in CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX A ACTUARIAL METHODS AND ASSUMPTIONS A-2 the case of a 30-year fresh start, just the unfunded liability not already in the (gain)/loss base (which is already amortized over 30 years), will go into the new fresh start base. In addition, a fresh start is needed in the following situations: 1) When a positive payment would be required on a negative unfunded actuarial liability (or conversely a negative payment on a positive unfunded actuarial liability); or 2) When there are excess assets, rather than an unfunded liability. In this situation, a 30-year fresh start is used, unless a longer fresh start is needed to avoid a negative total rate. It should be noted that the actuary may choose to use a fresh start under other circumstances. In all cases, the fresh start period is set by the actuary at what is deemed appropriate; however, the period will not be less than five years, nor greater than 30 years. Asset Valuation Method It is the policy of the CalPERS Board of Administration to use professionally accepted amortization methods to eliminate unfunded accrued liabilities or surpluses in a manner that maintains benefit security for the members of the System while minimizing substantial variations in employer contribution rates. On April 17, 2013, the CalPERS Board of Administration approved a recommendation to change the CalPERS amortization and rate smoothing policies. Beginning with the June 30, 2013 valuations that set the 2015-16 rates, CalPERS will employ an amortization and smoothing policy that will pay for all gains and losses over a fixed 30-year period with the increases or decreases in the rate spread directly over a 5-year period. CalPERS will no longer use an actuarial value of assets and will use the market value of assets. This direct rate smoothing method is equivalent to a method using a 5 year asset smoothing period with no actuarial value of asset corridor and a 25 year amortization period for gains and losses. The change in asset value will also be amortized over 30 years with a 5-year ramp-up/ramp-down. CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX A ACTUARIAL METHODS AND ASSUMPTIONS A-3 Actuarial Assumptions In 2014 CalPERS completed a 2-year asset liability management study incorporating actuarial assumptions and strategic asset allocation. On February 19, 2014 the CalPERS Board of Administration adopted relatively modest changes to the current asset allocation that will reduce the expected volatility of returns. The adopted asset allocation is expected to have a long-term blended return that continues to support a discount rate assumption of 7.5 percent. The Board also approved several changes to the demographic assumptions that more closely align with actual experience. The most significant of these is mortality improvement to acknowledge the greater life expectancies we are seeing in our membership and expected continued improvements. The new actuarial assumptions will be used to set the FY 2016-17 contribution rates for public agency employers. The increase in liability due to new actuarial assumptions will be calculated in the 2014 actuarial valuation and will be amortized over a 20-year period with a 5-year ramp- up/ramp-down in accordance with Board policy. For more details, please refer to the experience study report that can be found at the following link: http://www.calpers.ca.gov/eip-docs/about/pubs/employer/ 2014-experience-study.pdf Economic Assumptions Discount Rate 7.5 percent compounded annually (net of expenses). This assumption is used for all plans. Termination Liability Discount Rate The discount rate used for termination valuation is a weighted average of the 10 and 30-year US Treasury yields in effect on the valuation date that equal the duration of the pension liabilities. For purposes of this hypothetical termination liability estimate, the discount rate used, 3.72 percent, is the yield on the 30-year US Treasury Separate Trading of Registered Interest and Principal of Securities (STRIPS) as of June 30, 2013. Please note, as of June 30, 2014 the 30-year STRIPS yield was 3.55 percent. Salary Growth Annual increases vary by category, entry age, and duration of service. A sample of assumed increases are shown below. Public Agency Miscellaneous Duration of Service (Entry Age 20) (Entry Age 30) (Entry Age 40) 0 0.1420 0.1240 0.0980 1 0.1190 0.1050 0.0850 2 0.1010 0.0910 0.0750 3 0.0880 0.0800 0.0670 4 0.0780 0.0710 0.0610 5 0.0700 0.0650 0.0560 10 0.0480 0.0460 0.0410 15 0.0430 0.0410 0.0360 20 0.0390 0.0370 0.0330 25 0.0360 0.0360 0.0330 30 0.0360 0.0360 0.0330 CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX A ACTUARIAL METHODS AND ASSUMPTIONS A-4 Salary Growth (continued) Public Agency Fire Duration of Service (Entry Age 20) (Entry Age 30) (Entry Age 40) 0 0.1050 0.1050 0.1020 1 0.0950 0.0940 0.0850 2 0.0870 0.0830 0.0700 3 0.0800 0.0750 0.0600 4 0.0740 0.0680 0.0510 5 0.0690 0.0620 0.0450 10 0.0510 0.0460 0.0350 15 0.0410 0.0390 0.0340 20 0.0370 0.0360 0.0330 25 0.0350 0.0350 0.0330 30 0.0350 0.0350 0.0330 Public Agency Police Duration of Service (Entry Age 20) (Entry Age 30) (Entry Age 40) 0 0.1090 0.1090 0.1090 1 0.0930 0.0930 0.0930 2 0.0810 0.0810 0.0780 3 0.0720 0.0700 0.0640 4 0.0650 0.0610 0.0550 5 0.0590 0.0550 0.0480 10 0.0450 0.0420 0.0340 15 0.0410 0.0390 0.0330 20 0.0370 0.0360 0.0330 25 0.0350 0.0340 0.0330 30 0.0350 0.0340 0.0330 Public Agency County Peace Officers Duration of Service (Entry Age 20) (Entry Age 30) (Entry Age 40) 0 0.1290 0.1290 0.1290 1 0.1090 0.1060 0.1030 2 0.0940 0.0890 0.0840 3 0.0820 0.0770 0.0710 4 0.0730 0.0670 0.0610 5 0.0660 0.0600 0.0530 10 0.0460 0.0420 0.0380 15 0.0410 0.0380 0.0360 20 0.0370 0.0360 0.0340 25 0.0350 0.0340 0.0330 30 0.0350 0.0340 0.0330 CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX A ACTUARIAL METHODS AND ASSUMPTIONS A-5 Schools Duration of Service (Entry Age 20) (Entry Age 30) (Entry Age 40) 0 0.1080 0.0960 0.0820 1 0.0940 0.0850 0.0740 2 0.0840 0.0770 0.0670 3 0.0750 0.0700 0.0620 4 0.0690 0.0640 0.0570 5 0.0630 0.0600 0.0530 10 0.0450 0.0440 0.0410 15 0.0390 0.0380 0.0350 20 0.0360 0.0350 0.0320 25 0.0340 0.0340 0.0320 30 0.0340 0.0340 0.0320  The Miscellaneous salary scale is used for Local Prosecutors.  The Police salary scale is used for Other Safety, Local Sheriff, and School Police. Overall Payroll Growth 3.00 percent compounded annually (used in projecting the payroll over which the unfunded liability is amortized). This assumption is used for all plans. Inflation 2.75 percent compounded annually. This assumption is used for all plans. Non-valued Potential Additional Liabilities The potential liability loss for a cost-of-living increase exceeding the 2.75 percent inflation assumption, and any potential liability loss from future member service purchases are not reflected in the valuation. Miscellaneous Loading Factors Credit for Unused Sick Leave Total years of service is increased by 1 percent for those plans that have accepted the provision providing Credit for Unused Sick Leave. Conversion of Employer Paid Member Contributions (EPMC) Total years of service is increased by the Employee Contribution Rate for those plans with the provision providing for the Conversion of Employer Paid Member Contributions (EPMC) during the final compensation period. Norris Decision (Best Factors) Employees hired prior to July 1, 1982 have projected benefit amounts increased in order to reflect the use of “Best Factors” in the calculation of optional benefit forms. This is due to a 1983 Supreme Court decision, known as the Norris decision, which required males and females to be treated equally in the determination of benefit amounts. Consequently, anyone already employed at that time is given the best possible conversion factor when optional benefits are determined. No loading is necessary for employees hired after July 1, 1982. Termination Liability The termination liabilities include a 7 percent contingency load. This load is for unforeseen improvements in mortality. Demographic Assumptions Pre-Retirement Mortality Non-Industrial Death Rates vary by age and gender. Industrial Death rates vary by age. See sample rates in table below. The non-industrial death rates are used for all plans. The industrial CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX A ACTUARIAL METHODS AND ASSUMPTIONS A-6 death rates are used for Safety Plans (except for Local Prosecutor safety members where the corresponding Miscellaneous Plan does not have the Industrial Death Benefit). Non-Industrial Death Industrial Death (Not Job-Related) (Job-Related) Age Male Female Male and Female 20 0.00047 0.00016 0.00003 25 0.00050 0.00026 0.00007 30 0.00053 0.00036 0.00010 35 0.00067 0.00046 0.00012 40 0.00087 0.00065 0.00013 45 0.00120 0.00093 0.00014 50 0.00176 0.00126 0.00015 55 0.00260 0.00176 0.00016 60 0.00395 0.00266 0.00017 65 0.00608 0.00419 0.00018 70 0.00914 0.00649 0.00019 75 0.01220 0.00878 0.00020 80 0.01527 0.01108 0.00021 Miscellaneous Plans usually have Industrial Death rates set to zero unless the agency has specifically contracted for Industrial Death benefits. If so, each Non-Industrial Death rate shown above will be split into two components; 99 percent will become the Non-Industrial Death rate and 1 percent will become the Industrial Death rate. Post-Retirement Mortality Rates vary by age, type of retirement and gender. See sample rates in table below. These rates are used for all plans. Healthy Recipients Non-Industrially Disabled Industrially Disabled (Not Job-Related) (Job-Related) Age Male Female Male Female Male Female 50 0.00239 0.00125 0.01632 0.01245 0.00443 0.00356 55 0.00474 0.00243 0.01936 0.01580 0.00563 0.00546 60 0.00720 0.00431 0.02293 0.01628 0.00777 0.00798 65 0.01069 0.00775 0.03174 0.01969 0.01388 0.01184 70 0.01675 0.01244 0.03870 0.03019 0.02236 0.01716 75 0.03080 0.02071 0.06001 0.03915 0.03585 0.02665 80 0.05270 0.03749 0.08388 0.05555 0.06926 0.04528 85 0.09775 0.07005 0.14035 0.09577 0.11799 0.08017 90 0.16747 0.12404 0.21554 0.14949 0.16575 0.13775 95 0.25659 0.21556 0.31025 0.23055 0.26108 0.23331 100 0.34551 0.31876 0.45905 0.37662 0.40918 0.35165 105 0.58527 0.56093 0.67923 0.61523 0.64127 0.60135 110 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 The mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study adopted by the CalPERS Board, first used in the June 30, 2009 valuation. For purposes of the post-retirement mortality rates, those revised rates include 5 years of projected on-going mortality improvement using Scale AA published by the Society of Actuaries until June 30, 2010. There is no margin for future mortality improvement beyond the valuation date. On February 19, 2014 the CalPERS Board adopted new recommended demographic assumption based on the most recent CalPERS Experience Study. These new actuarial assumptions will be implemented for the first time in the June 30, 2014 valuation. For purposes of the post-retirement mortality rates, the revised rates include 20 years of projected on-going mortality improvement using Scale BB published by the Society of Actuaries. CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX A ACTUARIAL METHODS AND ASSUMPTIONS A-7 Marital Status For active members, a percentage who are married upon retirement is assumed according to member category as shown in the following table. Member Category Percent Married Miscellaneous Member 85% Local Police 90% Local Fire 90% Other Local Safety 90% School Police 90% Age of Spouse It is assumed that female spouses are 3 years younger than male spouses. This assumption is used for all plans. Terminated Members It is assumed that terminated members refund immediately if non-vested. Terminated members who are vested are assumed to follow the same service retirement pattern as active members but with a load to reflect the expected higher rates of retirement, especially at lower ages. The following table shows the load factors that are applied to the service retirement assumption for active members to obtain the service retirement pattern for separated vested members: Age Load Factor 50 450% 51 250% 52 through 56 200% 57 through 60 150% 61 through 64 125% 65 and above 100% (no change) Termination with Refund Rates vary by entry age and service for Miscellaneous Plans. Rates vary by service for Safety Plans. See sample rates in tables below. Public Agency Miscellaneous Duration of Service Entry Age 20 Entry Age 25 Entry Age 30 Entry Age 35 Entry Age 40 Entry Age 45 0 0.1742 0.1674 0.1606 0.1537 0.1468 0.1400 1 0.1545 0.1477 0.1409 0.1339 0.1271 0.1203 2 0.1348 0.1280 0.1212 0.1142 0.1074 0.1006 3 0.1151 0.1083 0.1015 0.0945 0.0877 0.0809 4 0.0954 0.0886 0.0818 0.0748 0.0680 0.0612 5 0.0212 0.0193 0.0174 0.0155 0.0136 0.0116 10 0.0138 0.0121 0.0104 0.0088 0.0071 0.0055 15 0.0060 0.0051 0.0042 0.0032 0.0023 0.0014 20 0.0037 0.0029 0.0021 0.0013 0.0005 0.0001 25 0.0017 0.0011 0.0005 0.0001 0.0001 0.0001 30 0.0005 0.0001 0.0001 0.0001 0.0001 0.0001 35 0.0001 0.0001 0.0001 0.0001 0.0001 0.0001 CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX A ACTUARIAL METHODS AND ASSUMPTIONS A-8 Public Agency Safety Duration of Service Fire Police County Peace Officer 0 0.0710 0.1013 0.0997 1 0.0554 0.0636 0.0782 2 0.0398 0.0271 0.0566 3 0.0242 0.0258 0.0437 4 0.0218 0.0245 0.0414 5 0.0029 0.0086 0.0145 10 0.0009 0.0053 0.0089 15 0.0006 0.0027 0.0045 20 0.0005 0.0017 0.0020 25 0.0003 0.0012 0.0009 30 0.0003 0.0009 0.0006 35 0.0003 0.0009 0.0006 The Police Termination and Refund rates are also used for Public Agency Local Prosecutors, Other Safety, Local Sheriff and School Police. Schools Duration of Service Entry Age 20 Entry Age 25 Entry Age 30 Entry Age 35 Entry Age 40 Entry Age 45 0 0.1730 0.1627 0.1525 0.1422 0.1319 0.1217 1 0.1585 0.1482 0.1379 0.1277 0.1174 0.1071 2 0.1440 0.1336 0.1234 0.1131 0.1028 0.0926 3 0.1295 0.1192 0.1089 0.0987 0.0884 0.0781 4 0.1149 0.1046 0.0944 0.0841 0.0738 0.0636 5 0.0278 0.0249 0.0221 0.0192 0.0164 0.0135 10 0.0172 0.0147 0.0122 0.0098 0.0074 0.0049 15 0.0115 0.0094 0.0074 0.0053 0.0032 0.0011 20 0.0073 0.0055 0.0038 0.0020 0.0002 0.0002 25 0.0037 0.0023 0.0010 0.0002 0.0002 0.0002 30 0.0015 0.0003 0.0002 0.0002 0.0002 0.0002 35 0.0002 0.0002 0.0002 0.0002 0.0002 0.0002 Termination with Vested Benefits Rates vary by entry age and service for Miscellaneous Plans. Rates vary by service for Safety Plans. See sample rates in tables below. Public Agency Miscellaneous Duration of Service Entry Age 20 Entry Age 25 Entry Age 30 Entry Age 35 Entry Age 40 5 0.0656 0.0597 0.0537 0.0477 0.0418 10 0.0530 0.0466 0.0403 0.0339 0.0000 15 0.0443 0.0373 0.0305 0.0000 0.0000 20 0.0333 0.0261 0.0000 0.0000 0.0000 25 0.0212 0.0000 0.0000 0.0000 0.0000 30 0.0000 0.0000 0.0000 0.0000 0.0000 35 0.0000 0.0000 0.0000 0.0000 0.0000 CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX A ACTUARIAL METHODS AND ASSUMPTIONS A-9 Public Agency Safety Duration of Service Fire Police County Peace Officer 5 0.0162 0.0163 0.0265 10 0.0061 0.0126 0.0204 15 0.0058 0.0082 0.0130 20 0.0053 0.0065 0.0074 25 0.0047 0.0058 0.0043 30 0.0045 0.0056 0.0030 35 0.0000 0.0000 0.0000  When a member is eligible to retire, the termination with vested benefits probability is set to zero.  After termination with vested benefits, a miscellaneous member is assumed to retire at age 59 and a safety member at age 54.  The Police Termination with vested benefits rates are also used for Public Agency Local Prosecutors, Other Safety, Local Sheriff and School Police. Schools Duration of Service Entry Age 20 Entry Age 25 Entry Age 30 Entry Age 35 Entry Age 40 5 0.0816 0.0733 0.0649 0.0566 0.0482 10 0.0629 0.0540 0.0450 0.0359 0.0000 15 0.0537 0.0440 0.0344 0.0000 0.0000 20 0.0420 0.0317 0.0000 0.0000 0.0000 25 0.0291 0.0000 0.0000 0.0000 0.0000 30 0.0000 0.0000 0.0000 0.0000 0.0000 35 0.0000 0.0000 0.0000 0.0000 0.0000 Non-Industrial (Not Job-Related) Disability Rates vary by age and gender for Miscellaneous Plans. Rates vary by age and category for Safety Plans. Miscellaneous Fire Police County Peace Officer Schools Age Male Female Male and Female Male and Female Male and Female Male Female 20 0.0001 0.0001 0.0001 0.0001 0.0001 0.0001 0.0001 25 0.0001 0.0001 0.0001 0.0001 0.0001 0.0001 0.0001 30 0.0002 0.0002 0.0001 0.0002 0.0001 0.0002 0.0001 35 0.0006 0.0009 0.0001 0.0003 0.0004 0.0006 0.0004 40 0.0015 0.0016 0.0001 0.0004 0.0007 0.0014 0.0009 45 0.0025 0.0024 0.0002 0.0005 0.0013 0.0028 0.0017 50 0.0033 0.0031 0.0005 0.0008 0.0018 0.0044 0.0030 55 0.0037 0.0031 0.0010 0.0013 0.0010 0.0049 0.0034 60 0.0038 0.0025 0.0015 0.0020 0.0006 0.0043 0.0024  The Miscellaneous Non-Industrial Disability rates are used for Local Prosecutors.  The Police Non-Industrial Disability rates are also used for Other Safety, Local Sheriff and School Police. CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX A ACTUARIAL METHODS AND ASSUMPTIONS A-10 Industrial (Job-Related) Disability Rates vary by age and category. Age Fire Police County Peace Officer 20 0.0002 0.0007 0.0003 25 0.0012 0.0032 0.0015 30 0.0025 0.0064 0.0031 35 0.0037 0.0097 0.0046 40 0.0049 0.0129 0.0063 45 0.0061 0.0161 0.0078 50 0.0074 0.0192 0.0101 55 0.0721 0.0668 0.0173 60 0.0721 0.0668 0.0173  The Police Industrial Disability rates are also used for Local Sheriff and Other Safety.  Fifty Percent of the Police Industrial Disability rates are used for School Police.  One Percent of the Police Industrial Disability rates are used for Local Prosecutors.  Normally, rates are zero for Miscellaneous Plans unless the agency has specifically contracted for Industrial Disability benefits. If so, each miscellaneous non-industrial disability rate will be split into two components: 50 percent will become the Non-Industrial Disability rate and 50 percent will become the Industrial Disability rate. Service Retirement Retirement rates vary by age, service, and formula, except for the safety ½ @ 55 and 2% @ 55 formulas, where retirement rates vary by age only. CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX A ACTUARIAL METHODS AND ASSUMPTIONS A-11 Service Retirement Public Agency Miscellaneous 1.5% @ 65 Duration of Service Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years 50 0.008 0.011 0.013 0.015 0.017 0.019 51 0.007 0.010 0.012 0.013 0.015 0.017 52 0.010 0.014 0.017 0.019 0.021 0.024 53 0.008 0.012 0.015 0.017 0.019 0.022 54 0.012 0.016 0.019 0.022 0.025 0.028 55 0.018 0.025 0.031 0.035 0.038 0.043 56 0.015 0.021 0.025 0.029 0.032 0.036 57 0.020 0.028 0.033 0.038 0.043 0.048 58 0.024 0.033 0.040 0.046 0.052 0.058 59 0.028 0.039 0.048 0.054 0.060 0.067 60 0.049 0.069 0.083 0.094 0.105 0.118 61 0.062 0.087 0.106 0.120 0.133 0.150 62 0.104 0.146 0.177 0.200 0.223 0.251 63 0.099 0.139 0.169 0.191 0.213 0.239 64 0.097 0.136 0.165 0.186 0.209 0.233 65 0.140 0.197 0.240 0.271 0.302 0.339 66 0.092 0.130 0.157 0.177 0.198 0.222 67 0.129 0.181 0.220 0.249 0.277 0.311 68 0.092 0.129 0.156 0.177 0.197 0.221 69 0.092 0.130 0.158 0.178 0.199 0.224 70 0.103 0.144 0.175 0.198 0.221 0.248 Public Agency Miscellaneous 2% @ 60 Duration of Service Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years 50 0.011 0.015 0.018 0.021 0.023 0.026 51 0.009 0.013 0.016 0.018 0.020 0.023 52 0.013 0.018 0.022 0.025 0.028 0.031 53 0.011 0.016 0.019 0.022 0.025 0.028 54 0.015 0.021 0.025 0.028 0.032 0.036 55 0.023 0.032 0.039 0.044 0.049 0.055 56 0.019 0.027 0.032 0.037 0.041 0.046 57 0.025 0.035 0.042 0.048 0.054 0.060 58 0.030 0.042 0.051 0.058 0.065 0.073 59 0.035 0.049 0.060 0.068 0.076 0.085 60 0.062 0.087 0.105 0.119 0.133 0.149 61 0.079 0.110 0.134 0.152 0.169 0.190 62 0.132 0.186 0.225 0.255 0.284 0.319 63 0.126 0.178 0.216 0.244 0.272 0.305 64 0.122 0.171 0.207 0.234 0.262 0.293 65 0.173 0.243 0.296 0.334 0.373 0.418 66 0.114 0.160 0.194 0.219 0.245 0.274 67 0.159 0.223 0.271 0.307 0.342 0.384 68 0.113 0.159 0.193 0.218 0.243 0.273 69 0.114 0.161 0.195 0.220 0.246 0.276 70 0.127 0.178 0.216 0.244 0.273 0.306 CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX A ACTUARIAL METHODS AND ASSUMPTIONS A-12 Service Retirement Public Agency Miscellaneous 2% @ 55 Duration of Service Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years 50 0.015 0.020 0.024 0.029 0.033 0.039 51 0.013 0.016 0.020 0.024 0.027 0.033 52 0.014 0.018 0.022 0.027 0.030 0.036 53 0.017 0.022 0.027 0.032 0.037 0.043 54 0.027 0.034 0.041 0.049 0.056 0.067 55 0.050 0.064 0.078 0.094 0.107 0.127 56 0.045 0.057 0.069 0.083 0.095 0.113 57 0.048 0.061 0.074 0.090 0.102 0.122 58 0.052 0.066 0.080 0.097 0.110 0.131 59 0.060 0.076 0.092 0.111 0.127 0.151 60 0.072 0.092 0.112 0.134 0.153 0.182 61 0.089 0.113 0.137 0.165 0.188 0.224 62 0.128 0.162 0.197 0.237 0.270 0.322 63 0.129 0.164 0.199 0.239 0.273 0.325 64 0.116 0.148 0.180 0.216 0.247 0.294 65 0.174 0.221 0.269 0.323 0.369 0.439 66 0.135 0.171 0.208 0.250 0.285 0.340 67 0.133 0.169 0.206 0.247 0.282 0.336 68 0.118 0.150 0.182 0.219 0.250 0.297 69 0.116 0.147 0.179 0.215 0.246 0.293 70 0.138 0.176 0.214 0.257 0.293 0.349 Public Agency Miscellaneous 2.5% @ 55 Duration of Service Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years 50 0.026 0.033 0.040 0.048 0.055 0.062 51 0.021 0.026 0.032 0.038 0.043 0.049 52 0.021 0.026 0.032 0.038 0.043 0.049 53 0.026 0.033 0.040 0.048 0.055 0.062 54 0.043 0.054 0.066 0.078 0.089 0.101 55 0.088 0.112 0.136 0.160 0.184 0.208 56 0.055 0.070 0.085 0.100 0.115 0.130 57 0.061 0.077 0.094 0.110 0.127 0.143 58 0.072 0.091 0.111 0.130 0.150 0.169 59 0.083 0.105 0.128 0.150 0.173 0.195 60 0.088 0.112 0.136 0.160 0.184 0.208 61 0.083 0.105 0.128 0.150 0.173 0.195 62 0.121 0.154 0.187 0.220 0.253 0.286 63 0.105 0.133 0.162 0.190 0.219 0.247 64 0.105 0.133 0.162 0.190 0.219 0.247 65 0.143 0.182 0.221 0.260 0.299 0.338 66 0.105 0.133 0.162 0.190 0.219 0.247 67 0.105 0.133 0.162 0.190 0.219 0.247 68 0.105 0.133 0.162 0.190 0.219 0.247 69 0.105 0.133 0.162 0.190 0.219 0.247 70 0.125 0.160 0.194 0.228 0.262 0.296 CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX A ACTUARIAL METHODS AND ASSUMPTIONS A-13 Service Retirement Public Agency Miscellaneous 2.7% @ 55 Duration of Service Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years 50 0.028 0.035 0.043 0.050 0.058 0.065 51 0.022 0.028 0.034 0.040 0.046 0.052 52 0.022 0.028 0.034 0.040 0.046 0.052 53 0.028 0.035 0.043 0.050 0.058 0.065 54 0.044 0.056 0.068 0.080 0.092 0.104 55 0.091 0.116 0.140 0.165 0.190 0.215 56 0.061 0.077 0.094 0.110 0.127 0.143 57 0.063 0.081 0.098 0.115 0.132 0.150 58 0.074 0.095 0.115 0.135 0.155 0.176 59 0.083 0.105 0.128 0.150 0.173 0.195 60 0.088 0.112 0.136 0.160 0.184 0.208 61 0.085 0.109 0.132 0.155 0.178 0.202 62 0.124 0.158 0.191 0.225 0.259 0.293 63 0.107 0.137 0.166 0.195 0.224 0.254 64 0.107 0.137 0.166 0.195 0.224 0.254 65 0.146 0.186 0.225 0.265 0.305 0.345 66 0.107 0.137 0.166 0.195 0.224 0.254 67 0.107 0.137 0.166 0.195 0.224 0.254 68 0.107 0.137 0.166 0.195 0.224 0.254 69 0.107 0.137 0.166 0.195 0.224 0.254 70 0.129 0.164 0.199 0.234 0.269 0.304 Public Agency Miscellaneous 3% @ 60 Duration of Service Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years 50 0.026 0.033 0.040 0.048 0.055 0.062 51 0.021 0.026 0.032 0.038 0.043 0.049 52 0.019 0.025 0.030 0.035 0.040 0.046 53 0.025 0.032 0.038 0.045 0.052 0.059 54 0.039 0.049 0.060 0.070 0.081 0.091 55 0.083 0.105 0.128 0.150 0.173 0.195 56 0.055 0.070 0.085 0.100 0.115 0.130 57 0.061 0.077 0.094 0.110 0.127 0.143 58 0.072 0.091 0.111 0.130 0.150 0.169 59 0.080 0.102 0.123 0.145 0.167 0.189 60 0.094 0.119 0.145 0.170 0.196 0.221 61 0.088 0.112 0.136 0.160 0.184 0.208 62 0.127 0.161 0.196 0.230 0.265 0.299 63 0.110 0.140 0.170 0.200 0.230 0.260 64 0.110 0.140 0.170 0.200 0.230 0.260 65 0.149 0.189 0.230 0.270 0.311 0.351 66 0.110 0.140 0.170 0.200 0.230 0.260 67 0.110 0.140 0.170 0.200 0.230 0.260 68 0.110 0.140 0.170 0.200 0.230 0.260 69 0.110 0.140 0.170 0.200 0.230 0.260 70 0.132 0.168 0.204 0.240 0.276 0.312 CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX A ACTUARIAL METHODS AND ASSUMPTIONS A-14 Service Retirement Public Agency Miscellaneous 2% @ 62 Duration of Service Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years 50 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 51 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 52 0.0103 0.0132 0.0160 0.0188 0.0216 0.0244 53 0.0131 0.0167 0.0202 0.0238 0.0273 0.0309 54 0.0213 0.0272 0.0330 0.0388 0.0446 0.0504 55 0.0440 0.0560 0.0680 0.0800 0.0920 0.1040 56 0.0303 0.0385 0.0468 0.0550 0.0633 0.0715 57 0.0363 0.0462 0.0561 0.0660 0.0759 0.0858 58 0.00465 0.0592 0.0718 0.0845 0.0972 0.1099 59 0.0578 0.0735 0.0893 0.1050 0.1208 0.1365 60 0.0616 0.0784 0.0952 0.1120 0.1288 0.1456 61 0.0888 0.0788 0.0956 0.1125 0.1294 0.1463 62 0.0941 0.1232 0.1496 0.1760 0.2024 0.2288 63 0.1287 0.1131 0.1373 0.1615 0.1857 0.2100 64 0.1045 0.1197 0.1454 0.1710 0.1967 0.2223 65 0.1045 0.1638 0.1989 0.2340 0.2691 0.3042 66 0.1045 0.1330 0.1615 0.1900 0.2185 0.2470 67 0.1045 0.1330 0.1615 0.1900 0.2185 0.2470 68 0.1045 0.1330 0.1615 0.1900 0.2185 0.2470 69 0.1045 0.1330 0.1615 0.1900 0.2185 0.2470 70 0.1254 0.1596 0.1938 0.2280 0.2622 0.9640 Service Retirement Public Agency Fire ½ @ 55 and 2% @ 55 Age 50 51 52 53 54 55 Rate 0.01588 0.00000 0.03442 0.01990 0.04132 0.07513 Age 56 57 58 59 60 Rate 0.11079 0.00000 0.09499 0.04409 1.00000 Public Agency Police ½ @ 55 and 2% @ 55 Age 50 51 52 53 54 55 Rate 0.02552 0.00000 0.01637 0.02717 0.00949 0.16674 Age 56 57 58 59 60 Rate 0.06921 0.05113 0.07241 0.07043 1.00000 CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX A ACTUARIAL METHODS AND ASSUMPTIONS A-15 Service Retirement Public Agency Police 2% @ 50 Duration of Service Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years 50 0.014 0.014 0.014 0.014 0.025 0.045 51 0.012 0.012 0.012 0.012 0.023 0.040 52 0.026 0.026 0.026 0.026 0.048 0.086 53 0.052 0.052 0.052 0.052 0.096 0.171 54 0.070 0.070 0.070 0.070 0.128 0.227 55 0.090 0.090 0.090 0.090 0.165 0.293 56 0.064 0.064 0.064 0.064 0.117 0.208 57 0.071 0.071 0.071 0.071 0.130 0.232 58 0.063 0.063 0.063 0.063 0.115 0.205 59 0.140 0.140 0.140 0.140 0.174 0.254 60 0.140 0.140 0.140 0.140 0.172 0.251 61 0.140 0.140 0.140 0.140 0.172 0.251 62 0.140 0.140 0.140 0.140 0.172 0.251 63 0.140 0.140 0.140 0.140 0.172 0.251 64 0.140 0.140 0.140 0.140 0.172 0.251 65 1.000 1.000 1.000 1.000 1.000 1.000  These rates also apply to Local Prosecutors, Local Sheriff, School Police and Other Safety. Service Retirement Public Agency Fire 2% @ 50 Duration of Service Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years 50 0.007 0.007 0.007 0.007 0.010 0.015 51 0.008 0.008 0.008 0.008 0.013 0.019 52 0.017 0.017 0.017 0.017 0.027 0.040 53 0.047 0.047 0.047 0.047 0.072 0.107 54 0.064 0.064 0.064 0.064 0.098 0.147 55 0.087 0.087 0.087 0.087 0.134 0.200 56 0.078 0.078 0.078 0.078 0.120 0.180 57 0.090 0.090 0.090 0.090 0.139 0.208 58 0.079 0.079 0.079 0.079 0.122 0.182 59 0.073 0.073 0.073 0.073 0.112 0.168 60 0.114 0.114 0.114 0.114 0.175 0.262 61 0.114 0.114 0.114 0.114 0.175 0.262 62 0.114 0.114 0.114 0.114 0.175 0.262 63 0.114 0.114 0.114 0.114 0.175 0.262 64 0.114 0.114 0.114 0.114 0.175 0.262 65 1.000 1.000 1.000 1.000 1.000 1.000 CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX A ACTUARIAL METHODS AND ASSUMPTIONS A-16 Service Retirement Public Agency Police 3% @ 55 Duration of Service Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years 50 0.019 0.019 0.019 0.019 0.040 0.060 51 0.024 0.024 0.024 0.024 0.049 0.074 52 0.024 0.024 0.024 0.024 0.051 0.077 53 0.059 0.059 0.059 0.059 0.121 0.183 54 0.069 0.069 0.069 0.069 0.142 0.215 55 0.116 0.116 0.116 0.116 0.240 0.363 56 0.076 0.076 0.076 0.076 0.156 0.236 57 0.058 0.058 0.058 0.058 0.120 0.181 58 0.076 0.076 0.076 0.076 0.157 0.237 59 0.094 0.094 0.094 0.094 0.193 0.292 60 0.141 0.141 0.141 0.141 0.290 0.438 61 0.094 0.094 0.094 0.094 0.193 0.292 62 0.118 0.118 0.118 0.118 0.241 0.365 63 0.094 0.094 0.094 0.094 0.193 0.292 64 0.094 0.094 0.094 0.094 0.193 0.292 65 1.000 1.000 1.000 1.000 1.000 1.000  These rates also apply to Local Prosecutors, Local Sheriff, School Police and Other Safety. Service Retirement Public Agency Fire 3% @ 55 Duration of Service Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years 50 0.012 0.012 0.012 0.018 0.028 0.033 51 0.008 0.008 0.008 0.012 0.019 0.022 52 0.018 0.018 0.018 0.027 0.042 0.050 53 0.043 0.043 0.043 0.062 0.098 0.114 54 0.057 0.057 0.057 0.083 0.131 0.152 55 0.092 0.092 0.092 0.134 0.211 0.246 56 0.081 0.081 0.081 0.118 0.187 0.218 57 0.100 0.100 0.100 0.146 0.230 0.268 58 0.081 0.081 0.081 0.119 0.187 0.219 59 0.078 0.078 0.078 0.113 0.178 0.208 60 0.117 0.117 0.117 0.170 0.267 0.312 61 0.078 0.078 0.078 0.113 0.178 0.208 62 0.098 0.098 0.098 0.141 0.223 0.260 63 0.078 0.078 0.078 0.113 0.178 0.208 64 0.078 0.078 0.078 0.113 0.178 0.208 65 1.000 1.000 1.000 1.000 1.000 1.000 CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX A ACTUARIAL METHODS AND ASSUMPTIONS A-17 Service Retirement Public Agency Police 2% @ 57 Duration of Service Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years 50 0.0110 0.0110 0.0110 0.0110 0.0202 0.0361 51 0.0086 0.0086 0.0086 0.0086 0.0158 0.0281 52 0.0183 0.0183 0.0183 0.0183 0.0336 0.0599 53 0.0366 0.0366 0.0366 0.0366 0.0670 0.1194 54 0.0488 0.0488 0.0488 0.0488 0.0893 0.1592 55 0.0629 0.0629 0.0629 0.0629 0.1152 0.2052 56 0.0447 0.0447 0.0447 0.0447 0.0816 0.1455 57 0.0640 0.0640 0.0640 0.0640 0.1170 0.2086 58 0.0471 0.0471 0.0471 0.0471 0.0862 0.1537 59 0.1047 0.1047 0.1047 0.1047 0.1301 0.1908 60 0.1047 0.1047 0.1047 0.1047 0.1289 0.1880 61 0.1047 0.1047 0.1047 0.1047 0.1289 0.1880 62 0.1047 0.1047 0.1047 0.1047 0.1289 0.1880 63 0.1047 0.1047 0.1047 0.1047 0.1289 0.1880 64 0.1047 0.1047 0.1047 0.1047 0.1289 0.1880 65 1.0000 1.0000 1.0000 1.0000 1.0000 1.000  These rates also apply to Local Prosecutors, Local Sheriff, School Police and Other Safety. Service Retirement Public Agency Fire 2% @ 57 Duration of Service Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years 50 0.0052 0.0052 0.0052 0.0052 0.0081 0.0121 51 0.0057 0.0057 0.0057 0.0057 0.0088 0.0131 52 0.0121 0.0121 0.0121 0.0121 0.0187 0.0280 53 0.0326 0.0326 0.0326 0.0326 0.0501 0.0750 54 0.0447 0.0447 0.0447 0.0447 0.0688 0.1030 55 0.0608 0.0608 0.0608 0.0608 0.0935 01400 56 0.0545 0.0545 0.0545 0.0545 0.0840 0.1257 57 0.0811 0.0811 0.0811 0.0811 0.01248 0.1869 58 0.0593 0.0593 0.0593 0.0593 0.0913 0.1366 59 0.0547 0.0547 0.0547 0.0547 0.0842 0.1261 60 0.0851 0.0851 0.0851 0.0851 0.1310 0.1961 61 0.0852 0.0852 0.0852 0.0852 0.1312 0.1964 62 0.0852 0.0852 0.0852 0.0852 0.1312 0.1964 63 0.0852 0.0852 0.0852 0.0852 0.1312 0.1964 64 0.0852 0.0852 0.0852 0.0852 0.1312 0.1964 65 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX A ACTUARIAL METHODS AND ASSUMPTIONS A-18 Service Retirement Public Agency Police 2.5% @ 57 Duration of Service Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years 50 0.0138 0.0138 0.0138 0.0138 0.0253 0.0451 51 0.0117 0.0117 0.0117 0.0117 0.0215 0.0382 52 0.0249 0.0249 0.0249 0.0249 0.0456 0.0812 53 0.0471 0.0471 0.0471 0.0471 0.0861 0.1535 54 0.0627 0.0627 0.0627 0.0627 0.1148 0.2047 55 0.0764 0.0764 0.0764 0.0764 0.1398 0.2492 56 0.0542 0.0542 0.0542 0.0542 0.0991 0.1767 57 0.0711 0.0711 0.0711 0.0711 0.1300 0.2318 58 0.0565 0.0565 0.0565 0.0565 0.1034 0.1844 59 0.1256 0.1256 0.1256 0.1256 0.1562 0.2290 60 0.1256 0.1256 0.1256 0.1256 0.1547 0.2255 61 0.1256 0.1256 0.1256 0.1256 0.1547 0.2255 62 0.1256 0.1256 0.1256 0.1256 0.1547 0.2255 63 0.1256 0.1256 0.1256 0.1256 0.1547 0.2255 64 0.1256 0.1256 0.1256 0.1256 0.1547 0.2255 65 1.0000 1.0000 1.0000 1.0000 1.0000 1.000  These rates also apply to Local Prosecutors, Local Sheriff, School Police and Other Safety. Service Retirement Public Agency Fire 2.5% @ 57 Duration of Service Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years 50 0.0065 0.0065 0.0065 0.0065 0.0101 0.0151 51 0.0077 0.0077 0.0077 0.0077 0.0119 0.0178 52 0.0164 0.0164 0.0164 0.0164 0.0254 0.0380 53 0.0419 0.0419 0.0419 0.0419 0.0644 0.0965 54 0.0574 0.0574 0.0574 0.0574 0.0885 0.1324 55 0.0738 0.0738 0.0738 0.0738 0.1136 01700 56 0.0662 0.0662 0.0662 0.0662 0.1020 0.2077 57 0.0901 0.0901 0.0901 0.0901 0.1387 0.1639 58 0.0711 0.0711 0.0711 0.0711 0.1095 0.1513 59 0.0656 0.0656 0.0656 0.0656 0.1011 0.2354 60 0.1022 0.1022 0.1022 0.1022 0.1572 0.2356 61 0.1022 0.1022 0.1022 0.1022 0.1574 0.2356 62 0.1022 0.1022 0.1022 0.1022 0.1574 0.2356 63 0.1022 0.1022 0.1022 0.1022 0.1574 0.2356 64 0.1022 0.1022 0.1022 0.1022 0.1574 0.2356 65 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX A ACTUARIAL METHODS AND ASSUMPTIONS A-19 Service Retirement Public Agency Police 2.7% @ 57 Duration of Service Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years 50 0.0138 0.0138 0.0138 0.0138 0.0253 0.0451 51 0.0123 0.0123 0.0123 0.0123 0.0226 0.0402 52 0.0249 0.0249 0.0249 0.0249 0.0456 0.0812 53 0.0497 0.0497 0.0497 0.0497 0.0909 0.1621 54 0.0662 0.0662 0.0662 0.0662 0.1211 0.2160 55 0.0854 0.0854 0.0854 0.0854 0.1563 0.2785 56 0.0606 0.0606 0.0606 0.0606 0.1108 0.1975 57 0.0711 0.0711 0.0711 0.0711 0.1300 0.2318 58 0.0628 0.0628 0.0628 0.0628 0.1149 0.2049 59 0.1396 0.1396 0.1396 0.1396 0.1735 0.2544 60 0.1396 0.1396 0.1396 0.1396 0.1719 0.2506 61 0.1396 0.1396 0.1396 0.1396 0.1719 0.2506 62 0.1396 0.1396 0.1396 0.1396 0.1719 0.2506 63 0.1396 0.1396 0.1396 0.1396 0.1719 0.2506 64 0.1396 0.1396 0.1396 0.1396 0.1719 0.2506 65 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000  These rates also apply to Local Prosecutors, Local Sheriff, School Police and Other Safety. Service Retirement Public Agency Fire 2.7% @ 57 Duration of Service Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years 50 0.0065 0.0065 0.0065 0.0065 0.0101 0.0151 51 0.0081 0.0081 0.0081 0.0081 0.0125 0.0187 52 0.0164 0.0164 0.0164 0.0164 0.0254 0.0380 53 0.0442 0.0442 0.0442 0.0442 0.0680 0.1018 54 0.0606 0.0606 0.0606 0.0606 0.0934 0.1397 55 0.0825 0.0825 0.0825 0.0825 0.1269 01900 56 0.0740 0.0740 0.0740 0.0740 0.1140 0.1706 57 0.0901 0.0901 0.0901 0.0901 0.1387 0.2077 58 0.0790 0.0790 0.0790 0.0790 0.1217 0.1821 59 0.0729 0.0729 0.0729 0.0729 0.1123 0.1681 60 0.1135 0.1135 0.1135 0.1135 0.1747 0.2615 61 0.1136 0.1136 0.1136 0.1136 0.1749 0.2618 62 0.1136 0.1136 0.1136 0.1136 0.1749 0.2618 63 0.1136 0.1136 0.1136 0.1136 0.1749 0.2618 64 0.1136 0.1136 0.1136 0.1136 0.1749 0.2618 65 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX A ACTUARIAL METHODS AND ASSUMPTIONS A-20 Service Retirement Schools 2% @ 55 Duration of Service Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years 50 0.005 0.009 0.013 0.015 0.016 0.018 51 0.005 0.010 0.014 0.017 0.019 0.021 52 0.006 0.012 0.017 0.020 0.022 0.025 53 0.007 0.014 0.019 0.023 0.026 0.029 54 0.012 0.024 0.033 0.039 0.044 0.049 55 0.024 0.048 0.067 0.079 0.088 0.099 56 0.020 0.039 0.055 0.065 0.072 0.081 57 0.021 0.042 0.059 0.070 0.078 0.087 58 0.025 0.050 0.070 0.083 0.092 0.103 59 0.029 0.057 0.080 0.095 0.105 0.118 60 0.037 0.073 0.102 0.121 0.134 0.150 61 0.046 0.090 0.126 0.149 0.166 0.186 62 0.076 0.151 0.212 0.250 0.278 0.311 63 0.069 0.136 0.191 0.225 0.251 0.281 64 0.067 0.133 0.185 0.219 0.244 0.273 65 0.091 0.180 0.251 0.297 0.331 0.370 66 0.072 0.143 0.200 0.237 0.264 0.295 67 0.067 0.132 0.185 0.218 0.243 0.272 68 0.060 0.118 0.165 0.195 0.217 0.243 69 0.067 0.133 0.187 0.220 0.246 0.275 70 0.066 0.131 0.183 0.216 0.241 0.270 Miscellaneous Superfunded Status Prior to enactment of the Public Employees’ Pension Reform Act (PEPRA) that became effective January 1, 2013, a plan in superfunded status (actuarial value of assets exceeding present value of benefits) would normally pay a zero employer contribution rate while also being permitted to use its superfunded assets to pay its employees’ normal member contributions. However, Section 7522.52(a) of PEPRA states, “In any fiscal year a public employer’s contribution to a defined benefit plan, in combination with employee contributions to that defined benefit plan, shall not be less than the total normal cost rate…” This means that not only must employers pay their employer normal cost regardless of plan surplus, but also, employers may no longer use superfunded assets to pay employee normal member contributions. Internal Revenue Code Section 415 The limitations on benefits imposed by Internal Revenue Code Section 415 are taken into account in this valuation. Each year the impact of any changes in this limitation since the prior valuation is included and amortized as part of the actuarial gain or loss base. This results in lower contributions for those employers contributing to the Replacement Benefit Fund and protects CalPERS from prefunding expected benefits in excess of limits imposed by federal tax law. CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX A ACTUARIAL METHODS AND ASSUMPTIONS A-21 Internal Revenue Code Section 401(a)(17) The limitations on compensation imposed by Internal Revenue Code Section 401(a)(17) are taken into account in this valuation. Each year, the impact of any changes in the compensation limitation since the prior valuation is included and amortized as part of the actuarial gain or loss base. PEPRA Assumptions The Public Employees’ Pension Reform Act of 2013 (PEPRA) mandated new benefit formulas and new member contributions for new members (as defined by PEPRA) hired after January 1, 2013. For non-pooled plans, these new members will first be reflected in the June 30, 2013 non-pooled plan valuations. New members in pooled plans will first be reflected in the new Miscellaneous and Safety risk pools created by the CalPERS Board in November 2012 in response to the passage of PEPRA, also beginning with the June 30, 2013 valuation. Different assumptions for these new PEPRA members are disclosed above. THIS PAGE INTENTIONALLY LEFT BLANK APPENDIX B PRINCIPAL PLAN PROVISIONS THIS PAGE INTENTIONALLY LEFT BLANK CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX B SAFETY PLAN OF THE CITY OF PALO ALTO PRINCIPAL PLAN PROVISIONS B-1 The following is a description of the principal plan provisions used in calculating costs and liabilities. We have indicated whether a plan provision is standard or optional. Standard benefits are applicable to all members while optional benefits vary among employers. Optional benefits that apply to a single period of time, such as Golden Handshakes, have not been included. Many of the statements in this summary are general in nature, and are intended to provide an easily understood summary of the complex Public Employees’ Retirement Law. The law itself governs in all situations. PEPRA Benefit Changes The Public Employees’ Pension Reform Act of 2013 (PEPRA) requires new benefits and member contributions for new members as defined by PEPRA, that are hired after January 1, 2013. These PEPRA members are reflected in your June 30, 2013 actuarial valuation. Members in pooled plans are reflected in the new Miscellaneous and Safety risk pools created by the CalPERS Board in November 2012 in response to the passage of PEPRA, beginning with the June 30, 2013 valuation. Service Retirement Eligibility A classic CalPERS member or PEPRA Safety member becomes eligible for Service Retirement upon attainment of age 50 with at least 5 years of credited service (total service across all CalPERS employers, and with certain other Retirement Systems with which CalPERS has reciprocity agreements). For employees hired into a plan with the 1.5% at 65 formula, eligibility for service retirement is age 55 with at least 5 years of service. PEPRA miscellaneous members become eligible for Service Retirement upon attainment of age 52 with at least 5 years of service. Benefit The Service Retirement benefit is a monthly allowance equal to the product of the benefit factor, years of service, and final compensation.  The benefit factor depends on the benefit formula specified in your agency’s contract. The table below shows the factors for each of the available formulas. Factors vary by the member’s age at retirement. Listed are the factors for retirement at whole year ages: Miscellaneous Plan Formulas Retirement Age 1.5% at 65 2% at 60 2% at 55 2.5% at 55 2.7% at 55 3% at 60 PEPRA 2% at 62 50 0.5000% 1.092% 1.426% 2.000% 2.000% 2.000% N/A 51 0.5667% 1.156% 1.522% 2.100% 2.140% 2.100% N/A 52 0.6334% 1.224% 1.628% 2.200% 2.280% 2.200% 1.000% 53 0.7000% 1.296% 1.742% 2.300% 2.420% 2.300% 1.100% 54 0.7667% 1.376% 1.866% 2.400% 2.560% 2.400% 1.200% 55 0.8334% 1.460% 2.000% 2.500% 2.700% 2.500% 1.300% 56 0.9000% 1.552% 2.052% 2.500% 2.700% 2.600% 1.400% 57 0.9667% 1.650% 2.104% 2.500% 2.700% 2.700% 1.500% 58 1.0334% 1.758% 2.156% 2.500% 2.700% 2.800% 1.600% 59 1.1000% 1.874% 2.210% 2.500% 2.700% 2.900% 1.700% 60 1.1667% 2.000% 2.262% 2.500% 2.700% 3.000% 1.800% 61 1.2334% 2.134% 2.314% 2.500% 2.700% 3.000% 1.900% 62 1.3000% 2.272% 2.366% 2.500% 2.700% 3.000% 2.000% CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX B SAFETY PLAN OF THE CITY OF PALO ALTO PRINCIPAL PLAN PROVISIONS B-2 63 1.3667% 2.418% 2.418% 2.500% 2.700% 3.000% 2.100% 64 1.4334% 2.418% 2.418% 2.500% 2.700% 3.000% 2.200% 65 1.5000% 2.418% 2.418% 2.500% 2.700% 3.000% 2.300% 66 1.5000% 2.418% 2.418% 2.500% 2.700% 3.000% 2.400% 67 & up 1.5000% 2.418% 2.418% 2.500% 2.700% 3.000% 2.500% Safety Plan Formulas Retirement Age ½ at 55 * 2% at 55 2% at 50 3% at 55 3% at 50 50 1.783% 1.426% 2.000% 2.400% 3.000% 51 1.903% 1.522% 2.140% 2.520% 3.000% 52 2.035% 1.628% 2.280% 2.640% 3.000% 53 2.178% 1.742% 2.420% 2.760% 3.000% 54 2.333% 1.866% 2.560% 2.880% 3.000% 55 & Up 2.500% 2.000% 2.700% 3.000% 3.000% * For this formula, the benefit factor also varies by entry age. The factors shown are for members with an entry age of 35 or greater. If entry age is less than 35, then the age 55 benefit factor is 50 percent divided by the difference between age 55 and entry age. The benefit factor for ages prior to age 55 is the same proportion of the age 55 benefit factor as in the above table. PEPRA Safety Plan Formulas Retirement Age 2% at 57 2.5% at 57 2.7% at 57 50 1.426% 2.000% 2.000% 51 1.508% 2.071% 2.100% 52 1.590% 2.143% 2.200% 53 1.672% 2.214% 2.300% 54 1.754% 2.286% 2.400% 55 1.836% 2.357% 2.500% 56 1.918% 2.429% 2.600% 57 & Up 2.000% 2.500% 2.700%  The years of service is the amount credited by CalPERS to a member while he or she is employed in this group (or for other periods that are recognized under the employer’s contract with CalPERS). For a member who has earned service with multiple CalPERS employers, the benefit from each employer is calculated separately according to each employer’s contract, and then added together for the total allowance. An agency may contract for an optional benefit where any unused sick leave accumulated at the time of retirement will be converted to credited service at a rate of 0.004 years of service for each day of sick leave.  The final compensation is the monthly average of the member’s highest 36 or 12 consecutive months’ full-time equivalent monthly pay (no matter which CalPERS employer paid this compensation). The standard benefit is 36 months. Employers have the option of providing a final compensation equal to the highest 12 consecutive months. Final compensation must be defined by the highest 36 consecutive months’ pay under the 1.5% at 65 formula. PEPRA members have a cap on the annual salary that can be used to calculate final compensation for all new members based on the Social Security Contribution and Benefit Base. For employees that participate in CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX B SAFETY PLAN OF THE CITY OF PALO ALTO PRINCIPAL PLAN PROVISIONS B-3 Social Security this cap is $113,700 for 2013 and for those employees that do not participate in social security the cap for 2013 is $136,440, the equivalent of 120 percent of the 2013 Contribution and Benefit Base. Adjustments to the caps are permitted annually based on changes to the CPI for All Urban Consumers.  Employees must be covered by Social Security with the 1.5% at 65 formula. Social Security is optional for all other benefit formulas. For employees covered by Social Security, the Modified formula is the standard benefit. Under this type of formula, the final compensation is offset by $133.33 (or by one third if the final compensation is less than $400). Employers may contract for the Full benefit with Social Security that will eliminate the offset applicable to the final compensation. For employees not covered by Social Security, the Full benefit is paid with no offsets. Auxiliary organizations of the CSUC system may elect reduced contribution rates, in which case the offset is $317 if members are not covered by Social Security or $513 if members are covered by Social Security.  The Miscellaneous Service Retirement benefit is not capped. The Safety Service Retirement benefit is capped at 90 percent of final compensation. Vested Deferred Retirement Eligibility for Deferred Status A CalPERS member becomes eligible for a deferred vested retirement benefit when he or she leaves employment, keeps his or her contribution account balance on deposit with CalPERS, and has earned at least 5 years of credited service (total service across all CalPERS employers, and with certain other Retirement Systems with which CalPERS has reciprocity agreements). Eligibility to Start Receiving Benefits The CalPERS classic members and Safety PEPRA members become eligible to receive the deferred retirement benefit upon satisfying the eligibility requirements for Deferred Status and upon attainment of age 50 (55 for employees hired into a 1.5% @ 65 plan). PEPRA Miscellaneous members become eligible to receive the deferred retirement benefit upon satisfying the eligibility requirements for Deferred Status and upon attainment of age 52. Benefit The vested deferred retirement benefit is the same as the Service Retirement benefit, where the benefit factor is based on the member’s age at allowance commencement. For members who have earned service with multiple CalPERS employers, the benefit from each employer is calculated separately according to each employer’s contract, and then added together for the total allowance. Non-Industrial (Non-Job Related) Disability Retirement Eligibility A CalPERS member is eligible for Non-Industrial Disability Retirement if he or she becomes disabled and has at least 5 years of credited service (total service across all CalPERS employers, and with certain other Retirement Systems with which CalPERS has reciprocity agreements). There is no special age requirement. Disabled means the member is unable to perform his or her job because of an illness or injury, which is expected to be permanent or to last indefinitely. The illness or injury does not have to be job related. A CalPERS member must be actively employed by any CalPERS employer at the time of disability in order to be eligible for this benefit. Standard Benefit The standard Non-Industrial Disability Retirement benefit is a monthly allowance equal to 1.8 percent of final compensation, multiplied by service, which is determined as follows:  Service is CalPERS credited service, for members with less than 10 years of service or greater than 18.518 years of service; or  Service is CalPERS credited service plus the additional number of years that the member would have worked until age 60, for members with at least 10 years but not more than 18.518 years of service. The maximum benefit in this case is 33 1/3 percent of Final Compensation. CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX B SAFETY PLAN OF THE CITY OF PALO ALTO PRINCIPAL PLAN PROVISIONS B-4 Improved Benefit Employers have the option of providing the improved Non-Industrial Disability Retirement benefit. This benefit provides a monthly allowance equal to 30 percent of final compensation for the first 5 years of service, plus 1 percent for each additional year of service to a maximum of 50 percent of final compensation. Members who are eligible for a larger service retirement benefit may choose to receive that benefit in lieu of a disability benefit. Members eligible to retire, and who have attained the normal retirement age determined by their service retirement benefit formula, will receive the same dollar amount for disability retirement as that payable for service retirement. For members who have earned service with multiple CalPERS employers, the benefit attributed to each employer is the total disability allowance multiplied by the ratio of service with a particular employer to the total CalPERS service. Industrial (Job Related) Disability Retirement All safety members have this benefit. For miscellaneous members, employers have the option of providing this benefit. An employer may choose to provide the Increased benefit option or the Improved benefit option. Eligibility An employee is eligible for Industrial Disability Retirement if he or she becomes disabled while working, where disabled means the member is unable to perform the duties of the job because of a work-related illness or injury, which is, expected to be permanent or to last indefinitely. A CalPERS member who has left active employment within this group is not eligible for this benefit, except to the extent described below. Standard Benefit The standard Industrial Disability Retirement benefit is a monthly allowance equal to 50 percent of final compensation. Increased Benefit (75 percent of Final Compensation) The increased Industrial Disability Retirement benefit is a monthly allowance equal to 75 percent final compensation for total disability. Improved Benefit (50 percent to 90 percent of Final Compensation) The improved Industrial Disability Retirement benefit is a monthly allowance equal to the Workman’s Compensation Appeals Board permanent disability rate percentage (if 50 percent or greater, with a maximum of 90 percent) times the final compensation. For a CalPERS member not actively employed in this group who became disabled while employed by some other CalPERS employer, the benefit is a return of accumulated member contributions with respect to employment in this group. With the standard or increased benefit, a member may also choose to receive the annuitization of the accumulated member contributions. If a member is eligible for Service Retirement and if the Service Retirement benefit is more than the Industrial Disability Retirement benefit, the member may choose to receive the larger benefit. Post-Retirement Death Benefit Standard Lump Sum Payment Upon the death of a retiree, a one-time lump sum payment of $500 will be made to the retiree’s designated survivor(s), or to the retiree’s estate. Improved Lump Sum Payment Employers have the option of providing an improved lump sum death benefit of $600, $2,000, $3,000, $4,000 or $5,000. CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX B SAFETY PLAN OF THE CITY OF PALO ALTO PRINCIPAL PLAN PROVISIONS B-5 Form of Payment for Retirement Allowance Standard Form of Payment Generally, the retirement allowance is paid to the retiree in the form of an annuity for as long as he or she is alive. The retiree may choose to provide for a portion of his or her allowance to be paid to any designated beneficiary after the retiree’s death. CalPERS provides for a variety of such benefit options, which the retiree pays for by taking a reduction in his or her retirement allowance. Such reduction takes into account the amount to be provided to the beneficiary and the probable duration of payments (based on the ages of the member and beneficiary) made subsequent to the member’s death. Improved Form of Payment (Post Retirement Survivor Allowance) Employers have the option to contract for the post retirement survivor allowance. For retirement allowances with respect to service subject to the modified formula, 25 percent of the retirement allowance will automatically be continued to certain statutory beneficiaries upon the death of the retiree, without a reduction in the retiree’s allowance. For retirement allowances with respect to service subject to the full or supplemental formula, 50 percent of the retirement allowance will automatically be continued to certain statutory beneficiaries upon the death of the retiree, without a reduction in the retiree’s allowance. This additional benefit is often referred to as post retirement survivor allowance (PRSA) or simply as survivor continuance. In other words, 25 percent or 50 percent of the allowance, the continuance portion, is paid to the retiree for as long as he or she is alive, and that same amount is continued to the retiree’s spouse (or if no eligible spouse, to unmarried children until they attain age 18; or, if no eligible children, to a qualifying dependent parent) for the rest of his or her lifetime. This benefit will not be discontinued in the event the spouse remarries. The remaining 75 percent or 50 percent of the retirement allowance, which may be referred to as the option portion of the benefit, is paid to the retiree as an annuity for as long as he or she is alive. Or, the retiree may choose to provide for some of this option portion to be paid to any designated beneficiary after the retiree’s death. Benefit options applicable to the option portion are the same as those offered with the standard form. The reduction is calculated in the same manner but is applied only to the option portion. Pre-Retirement Death Benefits Basic Death Benefit This is a standard benefit. Eligibility An employee’s beneficiary (or estate) may receive the Basic Death benefit if the member dies while actively employed. A CalPERS member must be actively employed with the CalPERS employer providing this benefit to be eligible for this benefit. A member’s survivor who is eligible for any other pre-retirement death benefit may choose to receive that death benefit instead of this Basic Death benefit. Benefit The Basic Death Benefit is a lump sum in the amount of the member’s accumulated contributions, where interest is currently credited at 7.5 percent per year, plus a lump sum in the amount of one month's salary for each completed year of current service, up to a maximum of six months' salary. For purposes of this benefit, one month's salary is defined as the member's average monthly full-time rate of compensation during the 12 months preceding death. 1957 Survivor Benefit This is a standard benefit. CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX B SAFETY PLAN OF THE CITY OF PALO ALTO PRINCIPAL PLAN PROVISIONS B-6 Eligibility An employee’s eligible survivor(s) may receive the 1957 Survivor benefit if the member dies while actively employed, has attained at least age 50 for Classic and Safety PEPRA members and age 52 for Miscellaneous PEPRA members, and has at least 5 years of credited service (total service across all CalPERS employers and with certain other Retirement Systems with which CalPERS has reciprocity agreements). A CalPERS member must be actively employed with the CalPERS employer providing this benefit to be eligible for this benefit. An eligible survivor means the surviving spouse to whom the member was married at least one year before death or, if there is no eligible spouse, to the member's unmarried children under age 18. A member’s survivor who is eligible for any other pre-retirement death benefit may choose to receive that death benefit instead of this 1957 Survivor benefit. Benefit The 1957 Survivor benefit is a monthly allowance equal to one-half of the unmodified Service Retirement benefit that the member would have been entitled to receive if the member had retired on the date of his or her death. If the benefit is payable to the spouse, the benefit is discontinued upon the death of the spouse. If the benefit is payable to a dependent child, the benefit will be discontinued upon death or attainment of age 18, unless the child is disabled. The total amount paid will be at least equal to the Basic Death benefit. Optional Settlement 2W Death Benefit This is an optional benefit. Eligibility An employee’s eligible survivor may receive the Optional Settlement 2W Death benefit if the member dies while actively employed, has attained at least age 50 for Classic and Safety PEPRA members and age 52 for Miscellaneous PEPRA members, and has at least 5 years of credited service (total service across all CalPERS employers and with certain other Retirement Systems with which CalPERS has reciprocity agreements). A CalPERS member who is no longer actively employed with any CalPERS employer is not eligible for this benefit. An eligible survivor means the surviving spouse to whom the member was married at least one year before death. A member’s survivor who is eligible for any other pre-retirement death benefit may choose to receive that death benefit instead of this Optional Settlement 2W Death benefit. Benefit The Optional Settlement 2W Death benefit is a monthly allowance equal to the Service Retirement benefit that the member would have received had the member retired on the date of his or her death and elected Optional Settlement 2W. (A retiree who elects Optional Settlement 2W receives an allowance that has been reduced so that it will continue to be paid after his or her death to a surviving beneficiary.) The allowance is payable as long as the surviving spouse lives, at which time it is continued to any unmarried children under age 18, if applicable. The total amount paid will be at least equal to the Basic Death Benefit. Special Death Benefit This is a standard benefit for safety members. An employer may elect to provide this benefit for miscellaneous members. Eligibility An employee’s eligible survivor(s) may receive the Special Death benefit if the member dies while actively employed and the death is job-related. A CalPERS member who is no longer actively employed with any CalPERS employer is not eligible for this benefit. An eligible survivor means the surviving spouse to whom the member was married prior to the onset of the injury or illness that resulted in death. If there is no eligible spouse, an eligible survivor means the member's unmarried children under age 22. An eligible survivor who chooses to receive this benefit will not receive any other death benefit. Benefit The Special Death benefit is a monthly allowance equal to 50 percent of final compensation, and will be increased whenever the compensation paid to active employees is increased but ceasing to increase when the member would CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX B SAFETY PLAN OF THE CITY OF PALO ALTO PRINCIPAL PLAN PROVISIONS B-7 have attained age 50. The allowance is payable to the surviving spouse until death at which time the allowance is continued to any unmarried children under age 22. There is a guarantee that the total amount paid will at least equal the Basic Death Benefit. If the member’s death is the result of an accident or injury caused by external violence or physical force incurred in the performance of the member’s duty, and there are eligible surviving children (eligible means unmarried children under age 22) in addition to an eligible spouse, then an additional monthly allowance is paid equal to the following:  if 1 eligible child: 12.5 percent of final compensation  if 2 eligible children: 20.0 percent of final compensation  if 3 or more eligible children: 25.0 percent of final compensation Alternate Death Benefit for Local Fire Members This is an optional benefit available only to local fire members. Eligibility An employee’s eligible survivor(s) may receive the Alternate Death benefit in lieu of the Basic Death Benefit or the 1957 Survivor Benefit if the member dies while actively employed and has at least 20 years of total CalPERS service. A CalPERS member who is no longer actively employed with any CalPERS employer is not eligible for this benefit. An eligible survivor means the surviving spouse to whom the member was married prior to the onset of the injury or illness that resulted in death. If there is no eligible spouse, an eligible survivor means the member's unmarried children under age 18. Benefit The Alternate Death benefit is a monthly allowance equal to the Service Retirement benefit that the member would have received had the member retired on the date of his or her death and elected Optional Settlement 2W. (A retiree who elects Optional Settlement 2W receives an allowance that has been reduced so that it will continue to be paid after his or her death to a surviving beneficiary.) If the member has not yet attained age 50, the benefit is equal to that which would be payable if the member had retired at age 50, based on service credited at the time of death. The allowance is payable as long as the surviving spouse lives, at which time it is continued to any unmarried children under age 18, if applicable. The total amount paid will be at least equal to the Basic Death Benefit. Cost-of-Living Adjustments (COLA) Standard Benefit Beginning the second calendar year after the year of retirement, retirement and survivor allowances will be annually adjusted on a compound basis by 2 percent. Improved Benefit Employers have the option of providing any of these improved cost-of-living adjustments by contracting for any one of these Class 1 optional benefits. An improved COLA is not available in conjunction with the 1.5% at 65 formula. Beginning the second calendar year after the year of retirement, retirement and survivor allowances will be annually adjusted on a compound basis by either 3 percent, 4 percent or 5 percent. However, the cumulative adjustment may not be greater than the cumulative change in the Consumer Price Index since the date of retirement. Purchasing Power Protection Allowance (PPPA) Retirement and survivor allowances are protected against inflation by PPPA. PPPA benefits are cost-of-living adjustments that are intended to maintain an individual’s allowance at 80 percent of the initial allowance at CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX B SAFETY PLAN OF THE CITY OF PALO ALTO PRINCIPAL PLAN PROVISIONS B-8 retirement adjusted for inflation since retirement. The PPPA benefit will be coordinated with other cost-of-living adjustments provided under the plan. Employee Contributions Each employee contributes toward his or her retirement based upon the retirement formula. The standard employee contribution is as described below. The percent contributed below the monthly compensation breakpoint is 0 percent. The monthly compensation breakpoint is $0 for full and supplemental formula members and $133.33 for employees covered by the modified formula. The percent contributed above the monthly compensation breakpoint depends upon the benefit formula, as shown in the table below. Benefit Formula Percent Contributed above the Breakpoint Miscellaneous, 1.5% at 65 2% Miscellaneous, 2% at 60 7% Miscellaneous, 2% at 55 7% Miscellaneous, 2.5% at 55 8% Miscellaneous, 2.7% at 55 8% Miscellaneous, 3% at 60 8% Miscellaneous, 2% at 62 50% of the Total Normal Cost Safety, 1/2 at 55 Varies by entry age Safety, 2% at 55 7% Safety, 2% at 50 9% Safety, 3% at 55 9% Safety, 3% at 50 9% Safety, 2% at 57 50% of the Total Normal Cost Safety, 2.5% at 57 50% of the Total Normal Cost Safety, 2.7% at 57 50% of the Total Normal Cost The employer may choose to “pick-up” these contributions for the employees (Employer Paid Member Contributions or EPMC). EPMC is prohibited for new PEPRA members. An employer may also include Employee Cost Sharing in the contract, where employees agree to share the cost of the employer contribution with or without a change in benefit. These contributions are paid in addition to the member contribution. Auxiliary organizations of the CSUC system may elect reduced contribution rates, in which case the offset is $317 and the contribution rate is 6 percent if members are not covered by Social Security. If members are covered by Social Security, the offset is $513 and the contribution rate is 5 percent. Refund of Employee Contributions If the member’s service with the employer ends, and if the member does not satisfy the eligibility conditions for any of the retirement benefits above, the member may elect to receive a refund of his or her employee contributions, which are credited annually with 6 percent interest. CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX B SAFETY PLAN OF THE CITY OF PALO ALTO PRINCIPAL PLAN PROVISIONS B-9 1959 Survivor Benefit This is a pre-retirement death benefit available only to members not covered by Social Security. Any agency joining CalPERS subsequent to 1993 was required to provide this benefit if the members were not covered by Social Security. The benefit is optional for agencies joining CalPERS prior to 1994. Levels 1, 2 and 3 are now closed. Any new agency or any agency wishing to add this benefit or increase the current level must choose the 4th or Indexed Level. This benefit is not included in the results presented in this valuation. More information on this benefit is available on the CalPERS website at www.calpers.ca.gov. THIS PAGE INTENTIONALLY LEFT BLANK APPENDIX C PARTICIPANT DATA  SUMMARY OF VALUATION DATA  ACTIVE MEMBERS  TRANSFERRED AND TERMINATED MEMBERS  RETIRED MEMBERS AND BENEFICIARIES THIS PAGE INTENTIONALLY LEFT BLANK CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX C SAFETY PLAN OF THE CITY OF PALO ALTO PARTICIPANT DATA C-1 Summary of Valuation Data June 30, 2012 June 30, 2013 1. Active Members a) Counts 180 184 b) Average Attained Age 40.16 40.56 c) Average Entry Age to Rate Plan 29.10 29.20 d) Average Years of Service 11.06 11.36 e) Average Annual Covered Pay $ 116,221 $ 115,533 f) Annual Covered Payroll 20,919,846 21,258,082 g) Projected Annual Payroll for Contribution Year 22,859,681 23,229,280 h) Present Value of Future Payroll 197,739,373 197,632,871 2. Transferred Members a) Counts 59 59 b) Average Attained Age 43.67 42.98 c) Average Years of Service 4.16 3.77 d) Average Annual Covered Pay $ 108,463 $ 103,052 3. Terminated Members a) Counts 31 29 b) Average Attained Age 42.78 42.21 c) Average Years of Service 3.69 2.68 d) Average Annual Covered Pay $ 73,686 $ 75,591 4. Retired Members and Beneficiaries a) Counts 398 404 b) Average Attained Age 66.74 66.93 c) Average Annual Benefits $ 46,860 $ 48,491 5. Active to Retired Ratio [(1a) / (4a)] 0.45 0.46 Counts of members included in the valuation are counts of the records processed by the valuation. Multiple records may exist for those who have service in more than one valuation group. This does not result in double counting of liabilities. Average Annual Benefits represents benefit amounts payable by this plan only. Some members may have service with another agency and would therefore have a larger total benefit than would be included as part of the average shown here. CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX C SAFETY PLAN OF THE CITY OF PALO ALTO PARTICIPANT DATA C-2 Active Members Counts of members included in the valuation are counts of the records processed by the valuation. Multiple records may exist for those who have service in more than one valuation group. This does not result in double counting of liabilities. Distribution of Active Members by Age and Service Years of Service at Valuation Date Attained Age 0-4 5-9 10-14 15-19 20-25 25+ Total 15-24 1 0 0 0 0 0 1 25-29 12 4 0 0 0 0 16 30-34 20 20 1 0 0 0 41 35-39 5 5 12 1 0 0 23 40-44 7 7 17 8 1 0 40 45-49 1 4 6 15 10 7 43 50-54 1 1 4 2 5 2 15 55-59 0 0 1 0 0 2 3 60-64 0 0 0 0 1 1 2 65 and over 0 0 0 0 0 0 0 All Ages 47 41 41 26 17 12 184 Distribution of Average Annual Salaries by Age and Service Years of Service at Valuation Date Attained Age 0-4 5-9 10-14 15-19 20-25 25+ Average 15-24 $88,524 $0 $0 $0 $0 $0 $88,524 25-29 91,581 109,450 0 0 0 0 96,048 30-34 101,893 115,604 116,235 0 0 0 108,931 35-39 95,071 108,102 130,488 160,784 0 0 119,239 40-44 92,479 112,025 116,911 124,615 161,660 0 114,440 45-49 184,829 104,981 107,135 123,633 127,480 139,324 124,468 50-54 110,275 115,887 112,471 101,639 131,231 131,131 119,849 55-59 0 0 141,098 0 0 161,433 154,654 60-64 0 0 0 0 115,776 116,912 116,344 65 and over 0 0 0 0 0 0 0 All Ages $98,791 $112,448 $119,594 $123,672 $129,905 $139,775 $115,533 CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX C SAFETY PLAN OF THE CITY OF PALO ALTO PARTICIPANT DATA C-3 Transferred and Terminated Members Distribution of Transfers to Other CalPERS Plans by Age and Service Years of Service at Valuation Date Attained Age 0-4 5-9 10-14 15-19 20-25 25+ Total Average Salary 15-24 0 0 0 0 0 0 0 $0 25-29 4 0 0 0 0 0 4 94,431 30-34 10 0 0 0 0 0 10 89,509 35-39 7 0 0 0 0 0 7 103,158 40-44 6 2 1 0 0 0 9 122,339 45-49 10 6 3 0 0 0 19 98,083 50-54 2 2 0 1 0 0 5 106,983 55-59 1 2 1 0 0 0 4 124,444 60-64 0 0 1 0 0 0 1 87,824 65 and over 0 0 0 0 0 0 0 0 All Ages 40 12 6 1 0 0 59 103,052 Distribution of Terminated Participants with Funds on Deposit by Age and Service Years of Service at Valuation Date Attained Age 0-4 5-9 10-14 15-19 20-25 25+ Total Average Salary 15-24 0 0 0 0 0 0 0 $0 25-29 0 0 0 0 0 0 0 0 30-34 6 1 0 0 0 0 7 74,881 35-39 2 3 0 0 0 0 5 98,554 40-44 5 3 0 0 0 0 8 81,795 45-49 4 0 0 0 0 0 4 48,607 50-54 4 0 0 0 0 0 4 54,988 55-59 0 0 0 0 0 0 0 0 60-64 0 1 0 0 0 0 1 106,475 65 and over 0 0 0 0 0 0 0 0 All Ages 21 8 0 0 0 0 29 75,591 CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX C SAFETY PLAN OF THE CITY OF PALO ALTO PARTICIPANT DATA C-4 Retired Members and Beneficiaries Distribution of Retirees and Beneficiaries by Age and Retirement Type* Attained Age Service Retirement Non- Industrial Disability Industrial Disability Non- Industrial Death Industrial Death Death After Retirement Total Under 30 0 0 0 0 0 0 0 30-34 0 0 1 0 0 0 1 35-39 0 0 2 0 0 0 2 40-44 0 0 6 0 0 0 6 45-49 0 1 4 0 0 0 5 50-54 34 1 19 0 2 0 56 55-59 36 0 15 0 1 2 54 60-64 27 0 18 0 0 3 48 65-69 34 1 19 0 0 7 61 70-74 33 1 25 0 0 5 64 75-79 28 1 21 0 0 4 54 80-84 14 0 14 0 0 7 35 85 and Over 11 0 3 0 0 4 18 All Ages 217 5 147 0 3 32 404 Distribution of Average Annual Amounts for Retirees and Beneficiaries by Age and Retirement Type* Attained Age Service Retirement Non- Industrial Disability Industrial Disability Non- Industrial Death Industrial Death Death After Retirement Average Under 30 $0 $0 $0 $0 $0 $0 $0 30-34 0 0 50,015 0 0 0 50,015 35-39 0 0 59,693 0 0 0 59,693 40-44 0 0 53,706 0 0 0 53,706 45-49 0 80 36,520 0 0 0 29,232 50-54 79,807 31,030 59,018 0 46,762 0 70,702 55-59 70,335 0 68,425 0 26,044 57,408 68,506 60-64 76,132 0 43,849 0 0 29,846 61,133 65-69 47,138 16,350 38,531 0 0 41,217 43,273 70-74 47,039 14,012 32,953 0 0 29,749 39,670 75-79 40,619 8,676 26,936 0 0 16,830 32,944 80-84 30,248 0 24,070 0 0 32,960 28,319 85 and Over 26,597 0 24,747 0 0 11,006 22,824 All Ages $56,725 $14,030 $41,548 $0 $39,856 $30,740 $48,491 CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX C SAFETY PLAN OF THE CITY OF PALO ALTO PARTICIPANT DATA C-5 Retired Members and Beneficiaries (continued) Distribution of Retirees and Beneficiaries by Years Retired and Retirement Type* Years Retired Service Retirement Non- Industrial Disability Industrial Disability Non- Industrial Death Industrial Death Death After Retirement Total Under 5 Yrs 63 1 19 0 0 4 87 5-9 37 0 17 0 1 7 62 10-14 33 0 17 0 0 14 64 15-19 29 1 21 0 1 1 53 20-24 29 1 16 0 0 4 50 25-29 14 0 17 0 0 1 32 30 and Over 12 2 40 0 1 1 56 All Years 217 5 147 0 3 32 404 Distribution of Average Annual Amounts for Retirees and Beneficiaries by Years Retired and Retirement Type* Years Retired Service Retirement Non- Industrial Disability Industrial Disability Non- Industrial Death Industrial Death Death After Retirement Average Under 5 Yrs $79,595 $80 $79,325 $0 $0 $16,281 $75,711 5-9 56,906 0 59,077 0 49,608 42,602 55,768 10-14 56,805 0 51,831 0 0 34,272 50,555 15-19 44,383 31,030 40,522 0 43,915 291 41,760 20-24 41,382 16,350 34,616 0 0 29,766 37,787 25-29 33,440 0 27,308 0 0 19,800 29,757 30 and Over 29,960 11,344 21,146 0 26,044 1,390 22,419 All Years $56,725 $14,030 $41,548 $0 $39,856 $30,740 $48,491 * Counts of members do not include alternate payees receiving benefits while the member is still working. Therefore, the total counts may not match information on page 25 of the report. Multiple records may exist for those who have service in more than one coverage group. This does not result in double counting of liabilities. THIS PAGE INTENTIONALLY LEFT BLANK APPENDIX D DEVELOPMENT OF PEPRA MEMBER CONTRIBUTION RATE THIS PAGE INTENTIONALLY LEFT BLANK CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX D SAFETY PLAN OF THE CITY OF PALO ALTO PARTICIPANT DATA D-1 DEVELOPMENT OF PEPRA MEMBER CONTRIBUTION RATE The table below shows the determination of the Member contribution rates based on 50 percent of the Total Normal Cost for each respective plan on June 30, 2013. Assembly Bill (AB) 340 created PEPRA that implemented new benefit formulas and a final compensation period as well as new contribution requirements for new employees. In accordance with Section Code 7522.30(b), “new members … shall have an initial contribution rate of at least 50 percent of the normal cost rate.” The normal cost for the plan is dependent on the benefit levels, actuarial assumptions and demographics of the plan particularly the entry age into the plan. Since the actual demographics of new members was not known during the implementation of PEPRA in December 2012, the normal cost rate was determined based on the average demographics of the members in the current 2 percent at age 55 miscellaneous risk pool and the 3 percent at age 50 safety risk pool. In analyzing the first set of PEPRA data, CalPERS staff has become concerned that, for most employers, there is insufficient data to produce stable normal costs and member contribution rates. Further, this situation is likely to persist for a number of years as employers gradually bring on more PEPRA members. The larger employers may have sufficient PEPRA members in the first few years but other employers may not have stable rates for a number of years. Staff has concluded that the best approach is to repeat the process – using the normal costs based on the demographics of the risk pools – for the current valuation and work with stakeholders over the next year to determine the best long-term approach to the issue of calculating PEPRA normal costs and member contribution rates. For more information on this topic please refer to the CalPERS Board of Administration agenda item 9a of the May 20th, 2014 meeting which is available on the CalPERS website. Basis for Current Rate Rates Effective July 1, 2015 Rate Plan Identifier Plan Total Normal Cost Member Rate Total Normal Cost Change Change Needed Member Rate 25006 Safety Fire PEPRA 22.40% 11.250% 22.40% 0.00% No 11.250% 25007 Safety Police PEPRA 22.40% 11.250% 22.40% 0.00% No 11.250% THIS PAGE INTENTIONALLY LEFT BLANK APPENDIX E GLOSSARY OF ACTUARIAL TERMS CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX E SAFETY PLAN OF THE CITY OF PALO ALTO GLOSSARY OF ACTUARIAL TERMS E-1 Glossary of Actuarial Terms Accrued Liability (also called Actuarial Accrued Liability or Entry Age Normal Accrued Liability) The total dollars needed as of the valuation date to fund all benefits earned in the past for current members. Actuarial Assumptions Assumptions made about certain events that will affect pension costs. Assumptions generally can be broken down into two categories: demographic and economic. Demographic assumptions include such things as mortality, disability and retirement rates. Economic assumptions include discount rate, salary growth and inflation. Actuarial Methods Procedures employed by actuaries to achieve certain funding goals of a pension plan. Actuarial methods include funding method, setting the length of time to fund the Accrued Liability and determining the Actuarial Value of Assets. Actuarial Valuation The determination, as of a valuation date, of the Normal Cost, Accrued liability, Actuarial Value of Assets and related actuarial present values for a pension plan. These valuations are performed annually or when an employer is contemplating a change to their plan provisions. Actuarial Value of Assets The Actuarial Value of Assets used for funding purposes is obtained through an asset smoothing technique where investment gains and losses are partially recognized in the year they are incurred, with the remainder recognized in subsequent years. This method helps to dampen large fluctuations in the employer contribution rate. Amortization Bases Separate payment schedules for different portions of the Unfunded Liability. The total Unfunded Liability of a Risk Pool or non-pooled plan can be segregated by "cause,” creating “bases” and each such base will be separately amortized and paid for over a specific period of time. However, all bases are amortized using investment and payroll assumptions from the current valuation. This can be likened to a home having a first mortgage of 24 years remaining payments and a second mortgage that has 10 years remaining payments. Each base or each mortgage note has its own terms (payment period, principal, etc.) Generally, in an actuarial valuation, the separate bases consist of changes in unfunded liability due to contract amendments, actuarial assumption changes, actuarial methodology changes, and or gains and losses. Payment periods are determined by Board policy and vary based on the cause of the change. Amortization Period The number of years required to pay off an Amortization Base. Annual Required Contributions (ARC) The employer's periodic required annual contributions to a defined benefit pension plan as set forth in GASB Statement No. 27, calculated in accordance with the plan assumptions. The ARC is determined by multiplying the employer contribution rate by the payroll reported to CalPERS for the applicable fiscal year. However, if this contribution is fully prepaid in a lump sum, then the dollar value of the ARC is equal to the Lump Sum Prepayment. Classic Member (under PEPRA) A classic member is a member who joined CalPERS prior to January, 1, 2013 and who is not defined as a new member under PEPRA. (See definition of new member below) Discount Rate Assumption The actuarial assumption that was called “investment return” in earlier CalPERS reports or “actuarial interest rate” in Section 20014 of the California Public Employees’ Retirement Law (PERL). CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX E SAFETY PLAN OF THE CITY OF PALO ALTO GLOSSARY OF ACTUARIAL TERMS E-2 Entry Age The earliest age at which a plan member begins to accrue benefits under a defined benefit pension plan. In most cases, this is the age of the member on their date of hire. Entry Age Normal Cost Method An actuarial cost method designed to fund a member's total plan benefit over the course of his or her career. This method is designed to yield a rate expressed as a level percentage of payroll. (The assumed retirement age less the entry age is the amount of time required to fund a member’s total benefit. Generally, the older a member on the date of hire, the greater the entry age normal cost. This is mainly because there is less time to earn investment income to fund the future benefits.) Fresh Start A Fresh Start is when multiple amortization bases are collapsed to one base and amortized together over a new funding period. Funded Status A measure of how well funded, or how "on track" a plan or risk pool is with respect to assets verses accrued liabilities. A ratio greater than 100% means the plan or risk pool has more assets than liabilities and a ratio less than 100% means liabilities are greater than assets. A funded ratio based on the Actuarial Value of Assets indicates the progress toward fully funding the plan using the actuarial cost methods and assumptions. A funded ratio based on the Market Value of Assets indicates the short-term solvency of the plan. GASB 27 Statement No. 27 of the Governmental Accounting Standards Board. The accounting standard governing a state or local governmental employer’s accounting for pensions. GASB 68 Statement No. 68 of the Governmental Accounting Standards Board. The accounting standard governing a state or local governmental employer’s accounting and financial reporting for pensions. GASB 68 replaces GASB 27 effective the first fiscal year beginning after June 15, 2014. New Member (under PEPRA) A new member includes an individual who becomes a member of a public retirement system for the first time on or after January 1, 2013, and who was not a member of another public retirement system prior to that date, and who is not subject to reciprocity with another public retirement system. Normal Cost The annual cost of service accrual for the upcoming fiscal year for active employees. The normal cost should be viewed as the long term contribution rate. Pension Actuary A business professional that is authorized by the Society of Actuaries, and the American Academy of Actuaries to perform the calculations necessary to properly fund a pension plan. PEPRA The California Public Employees’ Pension Reform Act of 2013 Prepayment Contribution A payment made by the employer to reduce or eliminate the year’s required employer contribution. Present Value of Benefits (PVB) The total dollars needed as of the valuation date to fund all benefits earned in the past or expected to be earned in the future for current members. Rolling Amortization Period An amortization period that remains the same each year, rather than declining. CALPERS ACTUARIAL VALUATION – June 30, 2013 APPENDIX E SAFETY PLAN OF THE CITY OF PALO ALTO GLOSSARY OF ACTUARIAL TERMS E-3 Superfunded A condition existing when a plan’s Actuarial Value of Assets exceeds its Present Value of Benefits. Prior to the passage of PEPRA, when this condition existed on a given valuation date for a given plan, employee contributions for the rate year covered by that valuation could be waived. Unfunded Liability When a plan or pool’s Actuarial Value of Assets is less than its Accrued Liability, the difference is the plan or pool’s Unfunded Liability. If the Unfunded Liability is positive, the plan or pool will have to pay contributions exceeding the Normal Cost. September 9, 2015 E - 3 PENSION TERMINOLOGY  Defined Benefit Plan: Guaranteed annual pension based on retirement age, years of service and salary, for example  Public Sector – CalPERS  Private Sector – Generally only very large employers  Defined Contribution Plan: Employer contribution is a fixed dollar amount; benefit based on contributions and investment earnings net of expenses  Public Sector – 457 Plan  Private Sector – 401(k) Plan  Individual Vested Rights: As determined by CA Supreme Court  Employee must be eligible to continue earning benefit formula in place when hired.  Cannot be reduced or eliminated unless traded for something of equal or greater value.  Individual right, cannot be negotiated away.  Recent Stockton decision indicates may be set aside in bankruptcy September 9, 2015 E - 4 CALPERS HISTORY  Established in 1932  Local public agency employees allowed to contract with CalPERS in 1939  City joined in 1942  Investment strategy  Initial legislation had tight restrictions on how funds could be invested  Proposition 21 passed in 1984 allowed CalPERS to invest up to 25% of assets in public equities  Proposition 162 passed in 1992 allowing board to have absolute and exclusive powers over administration and investment of CalPERS funds September 9, 2015 E - 5 CALPERS HISTORY  Enhanced pension formulas  SB 400 passed in 1999 allowed enhanced Safety formulas  Before: 2%@55, 2.5%@55, 2%@50  Added formulas: 3%@55, 3%@50  AB 616 passed in 2001 allowed enhanced Miscellaneous formulas  Before: 2%@60, 2%@55  Added formulas: 2.5%@55, 2.7%@55, 3%@60  Adopting enhanced formulas applied retroactively to all agency service  CalPERS Retirement formulas  Options used to vary based on contract between Agency and CalPERS  New Law (PEPRA) now mandates formulas September 9, 2015 E - 6 CITY CALPERS BENEFITS  City has 3 different CalPERS contracts:  Miscellaneous: Hired Formula  Tier 1 < 7/17/10 2.7% @ 55  Tier 2 (Classic) > 7/17/10 2.0% @ 60  Tier 3 (PEPRA) > 1/1/13 2.0% @ 62  Police Safety:  Tier 1 < 12/7/12 3.0% @ 50  Tier 2 (Classic) > 12/7/12 3.0% @ 55  Tier 3 (PEPRA) > 1/1/13 2.7% @ 57  Fire Safety:  Tier 1 < 6/8/12 3.0% @ 50  Tier 2 (Classic) > 6/8/12 3.0% @ 55  Tier 3 (PEPRA) > 1/1/13 2.7% @ 57  Benefits under each formula are calculated as: (Final Average Earnings) x (City Service) x (Benefit Factor at Retirement Age) Septemmber 9, 2015 CITY CAL E - 7 LPERS BEENEFITS Septemmber 9, 2015 CITY CAL E - 8 LPERS BEENEFITS    Septem PVB - P  Di pay Actuar  Di [va  Po Curren  Po  Va mber 9, 2015 Present Va scounted v yments bas ial Liabili scounted v alue of pas ortion of PV nt Normal ortion of PV alue of emp alue of all value (at va sed on vari ty: value (at va t service b VB “earned l Cost: VB allocate ployee and DEF Projected aluation da ious (actua aluation da enefit] d” at measu ed to (or “e d employer E - 9 FINITIONS d Benefits: ate - 6/30/1 arial) assum ate) of bene urement earned” du current se S : 3), of all fu mptions efits earned uring) curre rvice bene future expe d through v ent year efit ected benef valuation d fit date     Septem Target Unfund Excess  Mo  Do Super F  As  If e (em mber 9, 2015 - Have mo ded Liabili Assets / Su oney over oesn’t mean Funded: ssets cover everything mployer or oney in the ity - Mone urplus: and above n you’re do whole pie g goes exac r employee DEF e bank to co ey short of target at th one contrib (PVB) ctly like PE e) dime in E - 10 FINITIONS over Actua target at v hat point in buting ERS calcul S arial Liabil aluation da n time ated, you’l lity (past se ate ll never ha ervice) ave to put a another Septemmber 9, 2015 AS AVA is bei SSET VALU 6/ ing set equal t UES (MIL /30/14 & 6/30 to MVA and E - 11 LLIONS) - M 0/15 asset valu a separate AV MISCELL ues estimated. VA is not avai LANEOUS . ilable startingg 6/30/13. Septemmber 9, 2015 AVA is bei FUND 6/3ing set equal t DED RATIO 30/14 & 6/30/to MVA and E - 12 O - MISCE /15 funded staa separate AV ELLANEOU atus estimatedVA is not avai US d. ilable startingg 6/30/13. September 9, 2015 E - 13 PLAN MATURITY - MISCELLANEOUS 0 1 2 3 4 5 6 7 8 9 10 19 9 5 19 9 6 19 9 7 19 9 8 19 9 9 20 0 0 20 0 1 20 0 2 20 0 3 20 0 4 20 0 5 20 0 6 20 0 7 20 0 8 20 0 9 20 1 0 20 1 1 20 1 2 20 1 3 Asset Volatility Index: Ratio of MVA to Payroll September 9, 2015 E - 14 PLAN MATURITY - MISCELLANEOUS 0 1 2 3 4 5 6 7 8 9 10 11 12 19 9 5 19 9 6 19 9 7 19 9 8 19 9 9 20 0 0 20 0 1 20 0 2 20 0 3 20 0 4 20 0 5 20 0 6 20 0 7 20 0 8 20 0 9 20 1 0 20 1 1 20 1 2 20 1 3 Liability Volatility Index: Ratio of AAL to Payroll September 9, 2015 E - 15 PLAN MATURITY - MISCELLANEOUS -200% -150% -100% -50% 0% 50% 100% 150% 200% 250% 300% 350% 19 9 5 19 9 6 19 9 7 19 9 8 19 9 9 20 0 0 20 0 1 20 0 2 20 0 3 20 0 4 20 0 5 20 0 6 20 0 7 20 0 8 20 0 9 20 1 0 20 1 1 20 1 2 20 1 3 Unfunded Actuarial Accrued Liability as % of Payroll September 9, 2015 E - 16 RATIO OF AAL TO PENSION WAGES - MISCELLANEOUS September 9, 2015 E - 17 NORMAL COST RATE - MISCELLANEOUS September 9, 2015 E - 18 TOTAL CONTRIBUTION RATE - MISCELLANEOUS September 9, 2015 E - 19 CONTRIBUTION & FUNDED RATIO VOLATILITY EXAMPLE  Assumed CalPERS returns for example: Return Fiscal Year Scenario A Scenario B 2015/16 (5.0%) 12.0% 2016/17 0.0% 20.0% 2017/18 12.0% 3.0% 2018/19 20.0% (5.0%) 2019/20 15.0% 0.0% 2020/21 (5.0%) 12.0% 2021/22 0.0% 20.0% 2022/23 12.0% 3.0% 2023/24 20.0% (5.0%) September 9, 2015 E - 20 FUNDED RATIO VOLATILITY EXAMPLE - MISCELLANEOUS 71.2% 68.5% 61.1% 57.3% 60.4% 68.5% 75.0% 68.0% 64.8% 69.1% 79.0% 71.2% 68.5% 72.1% 81.7% 79.6% 71.6% 67.6% 71.4% 80.9% 79.0% 71.0% 55% 60% 65% 70% 75% 80% 85% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Funded Ratio ‐As of June 30 Funded Ratio -MVA/AAL - Scenario A Funded Ratio -MVA/AAL - Scenario B September 9, 2015 E - 21 CONTRIBUTION VOLATILITY EXAMPLE - MISCELLANEOUS 26.1%27.7%29.5% 34.3% 38.1% 40.1%40.8%40.2%39.8%39.5% 26.1%27.7%29.5%31.3%32.6%32.6%31.8%32.4%33.3%34.1%35.0% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 22/23 23/24 24/25 Scenario A Scenario B Septemmber 9, 2015 AVA is bei ASSET 6/ ing set equal t VALUES ( /30/14 & 6/30 to MVA and E - 22 (MILLION 0/15 asset valu a separate AV NS) - SAFE ues estimated. VA is not avai ETY . ilable startingg 6/30/13. Septemmber 9, 2015 AVA is bei F 6/3ing set equal t FUNDED R 30/14 & 6/30/to MVA and E - 23 RATIO - SA /15 funded staa separate AV AFETY atus estimatedVA is not avaid. ilable startingg 6/30/13. September 9, 2015 E - 24 PLAN MATURITY - SAFETY 0 2 4 6 8 10 12 14 19 9 5 19 9 6 19 9 7 19 9 8 19 9 9 20 0 0 20 0 1 20 0 2 20 0 3 20 0 4 20 0 5 20 0 6 20 0 7 20 0 8 20 0 9 20 1 0 20 1 1 20 1 2 20 1 3 Asset Volatility Index: Ratio of MVA to Payroll September 9, 2015 E - 25 PLAN MATURITY - SAFETY 0 2 4 6 8 10 12 14 16 19 9 5 19 9 6 19 9 7 19 9 8 19 9 9 20 0 0 20 0 1 20 0 2 20 0 3 20 0 4 20 0 5 20 0 6 20 0 7 20 0 8 20 0 9 20 1 0 20 1 1 20 1 2 20 1 3 Liability Volatility Index: Ratio of AAL to Payroll September 9, 2015 E - 26 PLAN MATURITY - SAFETY -350% -250% -150% -50% 50% 150% 250% 350% 450% 550% 650% 19 9 5 19 9 6 19 9 7 19 9 8 19 9 9 20 0 0 20 0 1 20 0 2 20 0 3 20 0 4 20 0 5 20 0 6 20 0 7 20 0 8 20 0 9 20 1 0 20 1 1 20 1 2 20 1 3 Unfunded Actuarial Accrued Liability as % of Payroll September 9, 2015 E - 27 RATIO OF AAL TO PENSION WAGES - SAFETY September 9, 2015 E - 28 NORMAL COST RATE - SAFETY September 9, 2015 E - 29 TOTAL CONTRIBUTION RATE - SAFETY September 9, 2015 E - 30 CONTRIBUTION & FUNDED RATIO VOLATILITY EXAMPLE  Assumed CalPERS returns for example: Return Fiscal Year Scenario A Scenario B 2015/16 (5.0%) 12.0% 2016/17 0.0% 20.0% 2017/18 12.0% 3.0% 2018/19 20.0% (5.0%) 2019/20 15.0% 0.0% 2020/21 (5.0%) 12.0% 2021/22 0.0% 20.0% 2022/23 12.0% 3.0% 2023/24 20.0% (5.0%) September 9, 2015 E - 31 FUNDED RATIO VOLATILITY EXAMPLE - SAFETY 71.3% 67.9% 59.9% 55.4% 57.4% 64.3% 69.6% 62.3% 58.6% 61.5% 69.4% 71.3% 67.9% 70.9% 79.6% 77.0% 68.5% 64.0% 66.7% 74.7% 72.1% 63.9% 50% 55% 60% 65% 70% 75% 80% 85% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Funded Ratio ‐As of June 30 Funded Ratio -MVA/AAL - Scenario A Funded Ratio -MVA/AAL - Scenario B September 9, 2015 E - 32 CONTRIBUTION VOLATILITY EXAMPLE - SAFETY 39.5%41.9%44.6% 52.9% 58.9% 61.9%63.2%62.4%61.7%60.9% 39.5%41.9%44.6%47.9%50.0%49.9%48.4%49.1%50.2%51.4%52.8% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 22/23 23/24 24/25 Scenario A Scenario B September 9, 2015 E - 33 ADDITIONAL $1 MILLION ANNUAL PAYMENTS September 9, 2015 E - 34 ADDITIONAL $1 MILLION ANNUAL PAYMENTS September 9, 2015 E - 35 ADDITIONAL $1 MILLION ANNUAL PAYMENTS September 9, 2015 E - 36 ADDITIONAL $1 MILLION ANNUAL PAYMENTS City of Palo Alto (ID # 3275) City Council Staff Report Report Type: Action Items Meeting Date: 1/22/2013 City of Palo Alto Page 1 Council Priority: City Finances Summary Title: Staff Response to Colleague's Memo Concerning Pension Benefits Title: Response to Colleagues' Memo on Employee Benefits From: City Manager Lead Department: Human Resources Recommendation Staff recommends that Council receive input and provide guidance, on issues related to the City’s strategy for reforms and innovations in employee retirement plans and pension. The Council’s direction for this session anticipated the following purposes: 1. Educate the public and employees about CalPERS pensions and how they work 2. Inform the public and employees about the recently enacted pension reform and how it impacts the City of Palo Alto 3. Enumerate the limitations on the City’s options given our participation in the CalPERS system and the requirements of state law. 4. Explore additional pension legislation to close remaining loopholes and to give cities broader decision making power in regards to their pension plans. Staff recommends, at a minimum, the following action by the Council: DRAFT MOTION: I move that the staff explore additional pension legislation with our legislators and other parties (such as the League of California Cities) to close remaining loopholes and to give cities broader decision making power in regards to their pension plans. (Agenda Item later this evening on Legislative Matters anticipates this action). I further move that staff continue to work with our employees and the public to fully City of Palo Alto Page 2 understand the facts about pensions and the status of the City’s efforts to manage our costs and provision of benefits while maintaining a talented work force. Background Council proposed exploring a sustainable model of pension, health and other benefits in its Colleagues’ Memo dated June 15, 2012. Beginning with the Council meeting of October 15, staff created a foundation for this discussion with a review of the components of total compensation (salary, health benefits, retirement savings/pension, paid time off, etc.) and their relationship to recruitment and employee engagement. This report, the second in a series of three reports, seeks to educate the public and City employees about the CalPERS pensions system, explain the Public Employee Retirement Law (PERL) and the Public Employee Pension Reform Act (PEPRA) that became effective January 1, 2013, and provide a foundation for policy discussions and long-term strategies from Council regarding employee pensions. Many of these issues are subject to collective bargaining with the City’s recognized bargaining units and to state law. The primary objective of PEPRA is to ensure that employees share in paying the normal pension cost, introducing a lower-formula second pension tier, and in this regard Palo Alto has been in the forefront of implementing cost-cutting pension practices as permissible under existing law. Before PEPRA, Palo Alto had already implemented second tier CalPERS plans and negotiated that employees pay their full percentage of pension cost for nearly every employee group. A review of our standard Bay Area survey cities indicates that only 41% of cities have created second pension tiers for miscellaneous employees and 50% for public safety. Additionally, 25% of survey cities continue to provide City-paid employee pension contributions and only one agency pays some portion of the employee pension contribution for safety employees. Most of the PEPRA changes apply to new, future employees. PEPRA does not do enough, however, to address the hurdle that California agencies still face covering the cost of increasingly expensive employee pensions for current active employees and retirees. Cities operating under the CalPERS pension system will experience increasing costs and the lack of flexibility provided to cities will put downward pressure on salaries and health benefits. City of Palo Alto Page 3 PEPRA does level the playing field for competing for talent for the long-term, with all new CalPERS agency non-safety employees earning the same 2% at 62 pension benefit formula across CalPERS agencies statewide. It also caps pensionable earnings, imitating social security. There the flexibility ends, leaving CalPERS cities like Palo Alto with few alternatives to traditional defined-benefit pensions short of further legislation. If the City wished to hire employees with alternate retirement benefits but no defined-benefit CalPERS pension, we could not legally do so. Attachment A is an analysis of PEPRA’s impact to Palo Alto. At Council request, staff has sought employee feedback about the desirability and the perceived value of various benefits through two facilitated employee forums. (Attachment B is a summary of the employee feedback). Discussion What is a “defined benefit” pension? A “defined benefit” pension is a retirement plan that guarantees a fixed monthly retirement allowance, calculated according to the plan formula, when certain prerequisites are met. CalPERS’ retirement allowances are calculated based on three factors: Service Credit - generally, the number of years the employee worked Benefit Factor - the percentage of Final Compensation an employee is entitled to for each year of service. For most CalPERS’ plans, the benefit factor increases with the age of the employee at retirement Final Compensation - either the highest single year or the average of the highest three City of Palo Alto Page 4 consecutive years of the employee’s compensation Defined benefit examples. For example, under CalPERS’ “2%@ 60” formula, which is now in use for Palo Alto employees hired after July 2010 in non-safety positions, pension is calculated at age 60 by taking the number of Years of Service x .02 (Benefit Factor) x Final Compensation equal the Annual Retirement Allowance, as shown in the two examples below. A non-safety employee who retires under that formula at age 60, with 30 years of service and a final compensation of $70,000 will receive the following annual retirement allowance: 30 Years of Service X .02 Benefit Factor X $70,000 Final Compensation = $42,000 Annual Retirement Allowance A safety employee, who retires at age 55 under the “3% at 55” formula, with 30 years of service and a final compensation of $70,000 will receive the following annual retirement allowance: 30 Years of Service X .03 Benefit Factor X $70,000 Final Compensation = $63,000 Annual Retirement Allowance Both of these examples reflect the second tier pension formulas adopted by the City over the past few years. The majority of existing employees maintain their tier one formula benefits of 2.7% at 55 for non-safety employees and 3% at 50 for safety employees, which result in a higher pension benefit. PEPRA made no changes in this regard. Benefit increases with age. The above illustrated examples do not tell the entire story, because the benefit factor increases with age. The “2% at 60” plan, for instance, pays a factor of 1.092 for early retirement at age 50, increasing incrementally to a factor of 2.418 at age 63 or older. This translates to an annual pension of $50,778 at age 63, up from an annual pension at age 60 of $42,000. At Attachment C are detailed charts showing the available percentage of final compensation for the CalPERS’ safety and non-safety plans according to age/benefit fact and years of service. Note that the reduced benefit formulas and increased retirement age provisions under PEPRA, explained later in this report, create new defined benefit formulae for all miscellaneous (non-safety) and safety employees. Moreover, CalPERS pensions are subject to inflation adjustments up to 2% each year but cannot exceed the national rate of inflation. How are CalPERS’ defined benefit pensions funded? Three sources fund CalPERS’ pensions. City of Palo Alto Page 5 First, employees generally contribute a percentage of their annual pay toward their pension. Historically, statute sets that amount, and for most commonly-used plans it is 7% or 8% for non-safety employees and 9% for safety. Employers may agree to pay some or the employees’ entire portion, and many have done so. A comparison of Bay Area pension plans shows that 25% of local agencies pay all or part of the employees’ portion of pension. For fiscal year 2014 the employee contributions will be a combined 7.945% for non-safety employees and 9% for safety employees (not including new pension tiers). Under PEPRA, employee contribution rules and procedures will be changing, as described in this report and the attachments. Second, the entire CalPERS’ system has investment earnings (or losses) arising from investment of system assets in stocks, bonds, real estate and other investment vehicles. This source of funding varies from year to year, sometimes dramatically. Gains are available to fund pension benefits. Losses must be made up by the agencies providing additional funding. If investment earnings are not high enough, CalPERS will just pass the bill onto the city. CalPERS reports total returns varying as shown in the table below. 2012 YTD ending 10.31.12 4.1% 3 year period ending 9/30/12 9.3% 5 year period ending 9/30/12 0.1% 10 year period ending 9/30/12 7.3%  Third, employer contributions provide the balance of needed funds. Employer contributions may decline when investment returns rise and increase when returns fall and/or when actuarial assumptions adjust to reflect higher system costs. Every year, CalPERS transmits an actuarial study to each participating employer stating the percentage of payroll that the employer must pay to fund benefits for its current employees and retirees. Employers must pay the entire employer contribution each year. In the last 15 years, employer contributions have varied from zero (when investment earnings were very high) to more than 24.6% of payroll for non-safety employees and 33.4% of payroll for safety employees in fiscal year 2014. This translates that, for every $1 in qualified pension salary, the city pays $0.25 and $0.33 respectively. What are Palo Alto’s pension costs? For fiscal year 2014 CalPERS provided the following pension costs: City of Palo Alto Page 6 CalPERS Required Employer Contribution FY 2012-13 June 30, 2010 FY 2013-14 June 30, 2011 Difference Non-safety 15,800,795$ 16,208,975$ 408,180$ 3% Safety 7,870,938$ 8,322,938$ 452,000$ 6% Total 23,671,733$ 24,531,913$ 860,180$ 4% Funded Status Total Unfunded Liability (AVA Basis)153,941,378$ 176,609,601$ 22,668,223$ 15% Total Unfunded Liability (MVA Basis)300,666,178$ 256,827,528$ (43,838,650)$ -15% Non-Safety Funded Ratio (AVA Basis)80%79%-1% Funded Ration (MVA Basis)62%69%7% Safety Funded Ratio (AVA Basis)83%81%-2% Funded Ration (MVA Basis)65%72%7% * The Actuary Value of Assets (AVA) is used to establish funding requirements and the funded ratio on this basis represents the progress toward fully funding future benefits for current participants. The funded ratio based on the Market Value of Assets (MVA) is an indicator of the short-term solvency of the plan. End of the “Reversal”. A long-standing retirement pay practice is ending for Palo Alto employees because of PEPRA and the City’s policy that employees pay their full share of pension costs. When a city employee retires, they must designate a 12 month period during his or her service in CalPERS as their “final compensation period.” Prior to employees paying the full employee retirement contribution, an employee retiring was eligible for reversal of Employer-Paid Member Contributions (EPMC). The City would reverse the applicable 7, 8 or 9 % employer-paid member contribution paid out of a retiring employee’s wages, by increasing their salary by the applicable 7, 8 or 9% and the employee would then pay the contribution directly to CalPERS. However this “reversal” was only applicable if an employee was designating the final 12 month period preceding the effective date of retirement. Any employee who designated an earlier period as their highest 12 months would not be eligible for the EPMC or “reversal.” Since employees are now paying their full employee retirement contribution, this “reversal” is no longer available. The Colleague’s Memo posed the following questions about public pensions. City of Palo Alto Page 7 I. How should the costs of pensions be shared between employers and employees? Cost sharing is a critical issue in pension design. There are two primary means of lowering pension costs for employers: reducing benefit levels and achieving greater cost sharing from employees. Of the two, only cost sharing has the potential to impact employer costs in the short and medium term. This is because under current law, pension benefit levels are generally considered to be “vested,” which means that employers are prohibited from making significant reductions for existing employees. Lower pension formulas may be applied only to new hires, resulting in a longer time horizon for cost-reduction. By contrast, employers may lawfully seek additional cost sharing from current employees. Changes in cost sharing generally are subject to collective bargaining and may be subject to other limitations, as described in part below. The new PEPRA legislation fails to increase cost sharing options for the City, since we have already achieved employee pick up of the employee pension costs. Years down the road, the City may have more options but these are restricted over the next five years. Because Palo Alto provides pensions through the CalPERS system, the City must comply with the cost-sharing procedures and limitations in the Public Employees Retirement Law (PERL), as amended by the Public Employee Pension Reform Act (“PEPRA”), which took effective January 1, 2013. Under the PERL, the employee contribution amount is fixed by statute and ranges from 5% to 9% of earnings. Pension formulas and cost-sharing for Palo Alto employees are shown below: City of Palo Alto Page 8 Pension Formulas and Employee Contributions by Employee Unit Non-Safety (Miscellaneous) SEIU Mgmt (Unrepresented) Utilities Mgrs Formula 2.7%@55 2%@60 2.7%@55 2%@60 2.7%@55 2%@60 Eff Date 2007 2010 2007 2010 2007 2010 Current EE Contribution Amount 8% 7% 8% 7% 2%* 2%* *Currently negotiating increased EE pension contribution Safety POA Police Mgrs Assoc IAFF Fire Fire Chiefs' Assoc Formula 3%@50 3%@55 3%@50 3%@55 3%@50 3%@55 3%@50 3%@55 Eff Date 2002 2012 2002 2012 2001 2012 2001 2012 Current EE Contribution Amount 9% 9% 0%* 0%* 9% 9% 9% 9%** *Will be negotiating increased EE pension contribution this fiscal year **Employee contribution for 4 members of Fire Chiefs Association will reset to 5.1% in March 2013 based on concession agreement in MOA. The question of who actually pays the employee contribution has historically been subject to negotiation, as employee pension contributions falls within the scope of representation under the Meyers Milias Brown Act (MMBA). However, for new employees, PEPRA establishes mandatory formulae and cost sharing of pension benefits, leaving little negotiating discretion over the legislatively mandated changes. Non-Safety employees hired on or after Jan. 1, 2013 will receive the new 2% at 62 pension formula; new public safety employees as of Jan. 1, 2013 will receive the new formula (2.7% @ 57) that is closest to the formula provided to safety members in the same retirement classification offered by the City on Dec. 31, 2012). PEPRA provides as of Jan. 1, 2013, that the new employee contribution rate will be at least 50% City of Palo Alto Page 9 of the total “normal cost” for the pension plan. This DOES NOT mean 50% of the pension contribution costs and in fact is far less than that cost. An employer may not pay any part of new members’ employee contribution. If the terms of a contract between an employer and its employees in effect on Jan. 1, 2013, would be impaired by the equal sharing of normal cost for new employees, the equal sharing of normal cost will not apply until the contact contract expires, is renewed, amended or otherwise extended. Local agencies throughout the state are seeking to understand CalPERS’ instruction regarding how it will implement cost-sharing for employees hired on or after January 1, 2013. CalPERS has issued guidance in the form of a Circular Letters, such as attached in Attachment D. PEPRA also addresses cost-sharing for existing employees, in two ways. First, after January 1, 2018, PEPRA authorizes employers to bargain for current employees to pay 50% of the normal cost so long as the employee contribution does not exceed 8% for Miscellaneous and 12% for Police & Fire. This language and its implementation are not entirely clear. In Palo Alto, most employees already pay their full statutory PERS contribution of 7%, 8% or 9%. PEPRA appears to authorize Palo Alto to negotiate, after January 1, 2018, additional increments up to the PEPRA cap of 8% for Miscellaneous and 12% for Safety employees. At this point, with limited guidance from CalPERS, it appears that this provision will apply to Tier 2 non-safety employees (who currently pay 7%) and safety employees (who currently pay 9%). Second, PEPRA authorizes employers and employees to agree to share the employer contribution, but prohibits employers from imposing cost-sharing of the employer share in the absence of an agreement with labor. In sum, Palo Alto and its employees have already achieved substantial cost sharing through employees’ agreement to pay their full PERS contribution. Going forward after 2018, the Council has authority to consider seeking additional cost sharing, through negotiations where appropriate, with respect to employees paying50% of the normal cost, capped at 8% for Miscellaneous and 12% for Safety. In addition, at any time when contracts are open, the Council may consider seeking additional cost sharing of the employer contribution through collective bargaining process. Finally, Council should be aware that there is active litigation over the question of whether there is a constitutional limit to the extent of costs that can be shifted to employees without impairing vested pension rights, and if so, what is that limit. San Jose voters enacted changes to that city’s pension system that shifted substantial costs onto current employees who wish to retain current benefit levels. San Jose unions have challenged that cost shift on the theory that it violates members’ constitutional vested contract rights. The matter is in litigation in the Superior Court. City of Palo Alto Page 10 II. Should the City establish a hybrid plan combining defined benefits, defined contributions, and social security? PEPRA has answered this question in the negative and precludes such options. The question of whether the City should establish a hybrid plan combining defined benefits, defined contributions and social security is moot short of new State legislation. Retirement planning has long held that a three-fold approach yields the most predictable results for the retiree by spreading risk. The three foundational pillars of retirement have been social security, employer pension and personal savings. A defined benefit plan is one where the employee, upon retirement, is entitled to a fixed periodic payment. The asset pool - available to pay benefits - may be funded by employer or employee contributions, or a combination of both. But the employer typically bears the entire investment risk and must cover any underfunding as the result of a shortfall that may occur from the plan’s investments. Conversely, defined contribution plans are a type of retirement plan in which the amount of the employees’ annual contribution is specified. Individual accounts are set up for participants and benefits are based on the amounts credited to these accounts (through employee contributions and, if applicable, employer contributions) plus any investment earnings on the money in the account. Only contributions to the account are guaranteed, not the future benefits. In the last two decades, the traditional three-fold approach almost entirely disappeared from the private sector, as corporate defined-benefit pension plans were being phased out in favor of defined-contribution programs, such as 401(k) employee savings accounts. A 2010 survey by Towers Watson, the global consulting firm, found that only 17% of Fortune 100 companies still offer a defined-benefit plan, down from 67% in 1998. Those that offer direct-contribution plans, such as 401(k)'s, total 58%, up from 10%. There is more emergent data and studies that challenge the effectiveness of 401(k) plans for providing adequately towards retirement. Despite the decline, 36% of the country's small and medium companies still offer pensions, and there is a slight trend towards combining defined benefit pension benefits with 401(k) plans among companies, according to Towers Watson. That study, as written up in HR Magazine, is detailed in the attached Attachment E. Currently, Palo Alto uses two of the three traditional retirement planning vehicles: a pension plan and optional voluntary employee savings. Palo Alto’s pension plan is described in detail elsewhere in this report. The City supports employee’s savings by sponsoring a defined contribution 457 plan, although the City does not contribute any funds. Employees may defer a portion of gross compensation each year, up to an annual dollar limit, which is $17,500 for 2013. The 457 plan offers a "Catch-Up" provision for employees over age 50, which allows employees to contribute an additional annual amount of $5,500. Currently 55% of employees actively participate in the 457 plan. Establishing a hybrid pension/social security plan would either necessitate that the City commit to change to the one CalPERS plan that combines social security with a lower-level CalPERS pension, or exit CalPERS. This is because the CalPERS system only provides for one social City of Palo Alto Page 11 security plan (that may or may not still be open to new entrants). CalPERS has an option to combine social security with a lower pension formula called a “Section 218 agreement.” This option would only be available for non-sworn future new hires and any current employees who vote in agreement to join Social Security. For safety employees, all members of their bargaining group would have to vote and approve the change. If the City were to pursue the CalPERS Social Security plan, staff will need to investigate how would the plan work in conjunction with PEPRA. The alternative scenario for adopting a hybrid pension/social security plan is for the City to leave CalPERS altogether. In that case, the City must pay a sum to CalPERS that will secure the pensions already in the system. CalPERS has informed the Administrative Services Department (ASD) that the City’s cost to exit CalPERS is estimated to be between $600,000,000 and $1 billion. III. What is the appropriate and sustainable vesting for pension rights? The question of what is the appropriate vesting schedule for pension rights is the subject of much scholarly debate and developing legal case law. A “vested” benefit is one that has matured into an irrevocable contractual right. It cannot be taken away or otherwise impaired without the member’s consent, except in extremely limited circumstances. According to CalPERS, California law establishes that public employee retirement benefits are a form of deferred compensation and part of the employment contract. At the time when the employee provides service to his public employer, he earns rights to the deferred compensation. To be eligible for any service retirement (as opposed to disability or industrial disability retirement) active employees must be at least 50 years of age and have at least five years of credited service. Frequently the term “vested” indicates that the employee earned the minimum number of credited service years and that a pension will be due to the employee upon reaching 50 years old. A member’s initial allowance is subject to annual cost-of-living adjustments (“COLAs”) that account for changes in the applicable cost of living index each year. IV. Are retroactive pension increases justifiable and, if not, how can they be prohibited? Retroactive pension increases are prohibited under PEPRA. PEPRA now prohibits retroactive pension increases. The new law prohibits public employers from granting retroactive pension benefit enhancements that would apply to service performed prior to the date of the enhancement. In addition, if a change in a member’s classification or employment results in a benefit enhancement, such enhancement applies only to service performed on or after the operative date of the change. This provision applies to both classic and new members. Note that annual cost-of-living adjustments are excluded from this City of Palo Alto Page 12 prohibition. This is an important and long overdue change. V. Should the city offer employees a choice of significantly reduced pension packages in exchange for more desirable near term compensation and employment terms? The City is currently restricted to offering pension packages offered by CalPERS. The CalPERS system, the largest public pension system in the U.S., offers a set group of packages, none of which is a significantly reduced package. It would not be possible for the City to offer anything else unless the City exits CalPERS altogether. VI. How should the timing of negotiations and the City’s position in negotiations relate to The Long Range Financial Forecast? The City’s Long Range Forecast provides the basis for the funding resources and service cost to run the City, and it provides the information needed to attain cost savings that may be necessary to make up funding shortfalls. Each union negotiation features a financial overview to share the fiscal forecast with employees. Therefore it is advantageous to update the long range forecast before the next round of negotiations, which will begin the Summer 2013. The coming union bargaining schedule is set forth below: January 2013 UMPAPA January 2013 SEIU Hourly March 2013 Begin discussions with PMA (pension cost sharing issue) June 2013 Deadline PMA Begin SEIU December 2013 Deadline SEIU (contract expires) Begin PMA, POA, Fire June, 2014 Deadline POA, PMA, Fire (contracts expire) Resource Impact At this time funding isn’t required. However, if a study is necessary, staff will come back to Council for such a request. Attachments:  Attachment A - PERPRA Effect on CalPers Pension Benefits (PDF)  Attachment B - Summary of Employee Feedback (PDF) City of Palo Alto Page 13  Attachment C - Percentage of Final Comp Charts (PDF)  Attachment D - Circular Letters (PDF)  Attachment E - HR Magazine Article (PDF) 1 Attachment A CalPERS PENSION BENEFITS: STATE LAW, PENSION REFORM & IMPACTS ON PALO ALTO State Law Mandates for Local Agencies Offering CalPERS Pensions Palo Alto Benefits Pension Formulas and Retirement Age State Law as of 12/31/2012 CalPERS offers employers a menu of pre-defined basic and enhanced benefit formulas for Miscellaneous (Non-Safety) and Safety (Police & Fire). In general, employers contract with CalPERS for one of the formulas after bargaining with employee organizations. The benefit factor is a percentage of pay to which members are entitled for each year of service. It is determined at the member’s age at retirement and one of the following retirement formulas that the employer has contracted for. Misc: 2% at 55, 2% at 60. 2.5% at 55, 2.7% at 55, 3% at 60 Safety: 2% at 50. 2% at 55, 2.5% at 55, 3% at 50, 3% at 55 In 1999, the California Legislature amended the pension law to allow the state to offer enhanced pension formulas: 3% at age 50 for Safety and 2.7% at age 55 for Miscellaneous. Subsequently, the Legislature authorized cities and other local government agencies to adopt the same enhanced benefit formulas. The California Courts have held that a pension formula generally “vests” at the time it is promised, which means the promise is binding and cannot be reduced during the employees service or retirement, subject to certain limited exceptions. For this reason, reduced formulas are applied only to newly hired employees. Palo Alto Pension Benefits as of 12/31/2012 Palo Alto last moved to enhance benefit formulas in 2002 for Police and Fire and in January 2007 for Miscellaneous employees. Beginning in July 2010, the City has been negotiating lower more sustainable benefits for newly hired employees. Currently, Palo Alto’s pension formulas are: Miscellaneous (Non-Safety) Employees  Tier 1, hired before July 16, 2010: 2.7% at 55  Tier 2, hired on or after July 17, 2010: 2% at 60 Police & Fire  Tier 1 Fire, hired before June 8, 2012: 3% at 50  Tier 1 Police, hired before December 2012 (estimated): 3% at 50  Tier 2 Fire, hired on or after June 8, 2012: 3% at 55 Tier 2 Police, estimated to change in December 2012: 3% at 55 2 PEPRA Effective January 1, 2013, all newly hired employees must be enrolled in the following pension plans:  Miscellaneous Employees: 2% at 62  Police & Fire: PEPRA includes three formulas – 2% at 57, 2.5% at 57, and 2.7% at 57 – and mandates that the employer use the formula closest to status quo. After January 1, 2013, an employer could bargain to use a lower formula, but may not impose a lower formula in the absence of an agreement. Note: Employees who move from one CalPERS or reciprocal employer to another after Jan. 1, 2013, are not considered new employees, unless there is a break in service of more than six months. PEPRA requires that employees who move from one public employer to another be enrolled in the new employer’s formula that would have applied on December 31, 2012. PEPRA’s Impact on Palo Alto PEPRA will add a 3rd pension tier for both Miscellaneous and Safety, applicable to employees hired on or after Jan. 1, 2013 (except that employees previously employed by another CalPERS or reciprocal employer will move into Tier 2):  Miscellaneous Tier 3: 2% at 62 (earliest eligibility 50 years @1.426% - 2.5% @ 67 years of age)  Safety Tier 3: 2.7% at 57 (earliest eligibility 50 years @2% - 2.7% @ 57 years of age) 3 State Law Mandates for Local Agencies Offering CalPERS Pensions Palo Alto Benefits Calculation of Final Compensation: Single Highest Year or Average of Three Consecutive Highest Years State Law as of 12/31/2012 The CalPERS basic pension benefit is calculated using the average of the three highest consecutive earning years. CalPERS allowed employers to select an enhanced benefit of basing pension on the single highest earning year. Palo Alto Pension Benefits as of 12/31/2012 Palo Alto moved to single highest year in 1983 for Miscellaneous and 1981 for Fire and Police. Beginning in 2011 for Public Safety, the City began negotiating a return to three-year final averaging as part of its effort to adopt more sustainable pensions for new employees. Currently, Palo Alto plans are as follows: Miscellaneous (Non-Safety) –  All Miscellaneous: single highest year Safety (Police & Fire) –  Fire, hired before June 7, 2012: single highest year  Police, hired before December 6, 2012 (estimated): single highest year  Fire, hired on or after June 8, 2011: average of three highest years  Police, hired on or after Dec. 7, 2012: average of three highest years PEPRA Effective January 1, 2013, pensions must be calculated using the average of the three highest consecutive years. This change applies only to new employees hired on or after Jan. 1, 2013, except that employees with prior public service will be enrolled in the local plan in effect on December 31, 2012. PEPRA’s Impact on Palo Alto For all employees hired on or after Jan. 1, 2013, pensions will be based on the average of three highest consecutive years, except that Miscellaneous employees hired from another CalPERS or reciprocal employer will remain eligible for single highest year. 4 State Law Mandates for Local Agencies Offering CalPERS Pensions Palo Alto Benefits Base Retirement Allowance on Regular Pay State Law as of 12/31/2012 State law defines compensation as that which is payment for the member's services performed during normal working hours or for time during which the member is excused from work because of holidays, sick, disability, and other leaves, vacation (taken, not cashed out). State law also defines special compensation. Special compensation is outside of base pay but still included in pensionable earnings. Examples are bilingual pay or fire inspector certification pay. Palo Alto Pension Benefits as of 12/31/2012 Memoranda of Agreement may contain provisions for special compensation for employees to receive payment for special skills, knowledge, abilities, work assignment, workdays or hours, or other work conditions as permissible under PERL. PEPRA For employees hired on or after January 1, 2013, pension must be calculated on normal monthly rate of pay. Excludes some payments such as vacation, sick leave, overtime and other special pay categories. In December, 2012, CalPERS issued an interim regulation stating that many categories of payments that were previously pensionable as “special compensation” will still be considered “pensionable compensation” under PEPRA. Palo Alto is seeking clarification from CalPERS. PEPRA’s Impact on Palo Alto Will be subject to further consultation with CalPERS. 5 State Law Mandates for Local Agencies Offering CalPERS Pensions Palo Alto Benefits Cap on Pensionable Compensation State Law as of 12/31/2012 CalPERS limits safety pensions at either 80% or 90% of final compensation. Miscellaneous employees are not subject to these limits, although generally are covered by lower formulas and in most cases are unlikely to reach 80% or 90% of final compensation. Otherwise, CalPERS pensions apply to all compensation up to the federal limit in Internal Revenue Code section 401(a)(17), currently $250,000. Palo Alto Pension Benefits as of 12/31/2012 The limits in state and federal law apply to Palo Alto retirees. PEPRA For employees hired on or after January 1, 2013, PEPRA caps the amount of compensation that can be used to calculate a retirement benefit at:  $ $113,700for employers participating in social security  $136,440for employers not participating in social security. The cap is adjusted annually based on the Consumer Price Index for All Urban Consumers or otherwise by the Legislature. Employers are barred from adopting any supplementary defined benefit plan. Employers may contribute to a defined contribution plan, subject to certain limitations. PEPRA’s Impact on Palo Alto Palo Alto does not participate in social security. New employees hired on or after Jan. 1, 2013, except those with prior CalPERS or reciprocal service, will be subject to $136,440 cap on pensionable income. At this time, Palo Alto does not have a program in place to make deferred compensation contributions on behalf of all employees. However, employees can make voluntary contributions to deferred compensation plans made available. 6 State Law Mandates for Local Agencies Offering CalPERS Pensions Palo Alto Benefits Cost Sharing: Employee Contributions to Pension Costs State Law of 12/31/2012 CalPERS establishes a fixed mandatory employee contribution:  Misc. Basic Plans (Tier 2) – 7%  Misc. Enhanced Plans (Tier 1) – 8%  Safety All Plans – 9% Employers may agree to “pick up” part or all of the employee contribution. In addition to the employee contribution, which does not change from year to year, CalPERS determines annually an amount that the employer must pay to fund the benefits owed to retirees and current employees. CalPERS’ actuaries determine the employer contribution by adding the employee contributions to the system’s investment returns and subtracting those sums from the total amount required to fund the system. Funds collected from employees and employers fund two types of liabilities:  the “normal cost” of pension benefits, which is the amount that must be set aside this year to pay for the pension obligations earned by active employees this year, incorporating CalPERS’ rate of return and employee demographic assumptions, and  any “unfunded liabilities,” which are funding gaps generated by shortfalls in the projected rate of return on investment, changes in employee demographic assumptions (such as employees living longer), etc. Palo Alto Pension Benefits as of 12/31/2012 Palo Alto began “picking up” the employee contribution in 1981 for Fire and Police and in 1983 for Miscellaneous employees. In 2007, the City began to bargain for employees to resume paying the employee contribution for Miscellaneous employees. Currently:  SEIU, IAFF, Battalion Chiefs, POA and Managers/Professionals pay full employee contribution of 7%, 8% or 9%, depending on the employee’s benefit formula.  PMA pays 0%.  UMPAPA pays 2%. In addition to the employee contribution, as of June 30, 2011, CalPERS actuaries calculated Palo Alto’s pension liabilities as follows (expressed as a percent of payroll): Miscellaneous  Normal cost 10.360%  Unfunded liabilities 14.240%  Total = 24.600% Safety  Normal cost 18.658%  Unfunded liabilities 14.786%  Total = 33.444% 7 PEPRA The cost-sharing provisions of PEPRA are complex and not clearly drafted. CalPERS is working to clarify the implementation of the new law. Clean-up legislation, implementing regulations or litigation may be required in order to clarify the meaning of several of the provisions. New employees – sharing the “normal cost.” PEPRA states that employees hired on or after Jan. 1, 2013, must pay “at least” 50% of the normal cost of their pension or the current contribution rate of similarly situated employees, whichever is greater. CalPERS has informed Palo Alto that new Miscellaneous members will pay 6.25% and new Safety members will pay 11.25%. Current employees – sharing the “normal cost.” After Jan. 1, 2018, PEPRA authorizes employers to bargain for current employees to pay 50% of the normal cost so long as the employee contribution does not exceed 8% for Misc and 12% for Police & Fire. The employer contribution. PEPRA also authorizes employers and employees to agree to share the employer contribution, but prohibits employers from imposing cost-sharing of the employer share in the absence of an agreement with labor. PEPRA’s Impact on Palo Alto Palo Alto is at or close to the goal set in PEPRA for employee cost sharing. Except for Police Managers and UMPAPA, all Palo Alto employees already pay their full employee PERS contribution (7%, 8% or 9%). After 2018, PEPRA allows employers to negotiate an additional increment, not to exceed 8% for Miscellaneous and 12% for Safety, as labor contracts are open. Under PEPRA, the City could seek to negotiate additional employee contributions towards the employer portion. Any such negotiations would require agreement and would not be subject to impasse procedures. 8 OTHER PENSION REFORM CHANGES Restrictions on Hiring Retirees PEPRA requires new retirees to sit out for at least 180 days before returning to work as a retiree. The local agency’s governing body may make exceptions for critically needed positions. The 180-day rule does not apply to police or fire retirees. Forfeit Pension on Felony Conviction PEPRA requires a pension be forfeited upon a felony conviction related to the performance of official duties. It appears that this requirement only applies to pension benefits earned after the date of the felony. PEPRA states the rule applies to both new and current employees, although CalPERS has stated it believes the rule may violate the vested rights of current employees. Eliminate Airtime CalPERS allows employees to purchase service credit for years in excess of those actually worked, known as “air time.” Effective January 1, 2013, PEPRA bans the practice of allowing the purchase of “air time.” PEPRA applies the ban to both new and current employees. CalPERS has stated that it believes the application of this rule to current employees may violate vested rights. Prohibit Retroactive Benefit Increases Historically, CalPERS has required benefit increases to apply to all service earned by current employees, including service already earned in prior years. Effective January 1, 2013, PEPRA requires that any enhancements to formulas or benefits must occur prospectively and not retrospectively. Prohibit Pension Holidays CalPERS calculates the annual contribution for all employers. Participating employers must pay the full amount of the annual required contribution as determined by CalPERS. In some past years, when high returns on investments led to funded status well over 100%, CalPERS granted employers a “pension holiday,” meaning employers were not required to contribute to CalPERS for that year. Effective January 1, 2013, PEPRA prohibits pension holidays, except if (a) the plan is more than 120% funded; (b) excess earnings could result in disqualification of tax deferred status; and (c) the CalPERS board finds that additional contributions would conflict with its fiduciary duty. Other changes PEPRA makes other changes, including requiring local elected members first elected after January 1, 2013, to receive pensions based on the highest average compensation earned as an elected member; instructing CalPERS to develop regulations to adjust costs between employers where excessive compensation is paid by a successor agency; increasing Disability Retirements for certain public safety employees; and requiring equal health benefits vesting rules for non-represented and represented employee groups.