HomeMy WebLinkAbout2023-05-09 Finance Committee Agenda PacketFINANCE COMMITTEE
Special Meeting
Tuesday, May 09, 2023
Community Conference Room & Hybrid
9:00 AM
Late Packet Report
(C = Capital Budget Book, O = Operating Budget Book)
Budget Books Are Available At:
https://www.cityofpaloalto.org/Departments/Administrative‐
Services/City‐Budget
Finance Committee meetings will be held as “hybrid” meetings with the option to attend by
teleconference/video conference or in person. To maximize public safety while still maintaining
transparency and public access, members of the public can choose to participate from home or
attend in person. Information on how the public may observe and participate in the meeting is
located at the end of the agenda. Masks are strongly encouraged if attending in person. The
meeting will be broadcast on Cable TV Channel 26, live on
YouTube https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen Media
Center https://midpenmedia.org.
VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/99227307235)
Meeting ID: 992 2730 7235 Phone: 1(669)900‐6833
PUBLIC COMMENTS
Public comments will be accepted both in person and via Zoom for up to three minutes or an
amount of time determined by the Chair. All requests to speak will be taken until 5 minutes
after the staff’s presentation. Written public comments can be submitted in advance to
city.council@CityofPaloAlto.org and will be provided to the Council and available for inspection
on the City’s website. Please clearly indicate which agenda item you are referencing in your
subject line.
PowerPoints, videos, or other media to be presented during public comment are accepted only
by email to city.clerk@CityofPaloAlto.org at least 24 hours prior to the meeting. Once received,
the Clerk will have them shared at public comment for the specified item. To uphold strong
cybersecurity management practices, USB’s or other physical electronic storage devices are not
accepted.
CALL TO ORDER
PUBLIC COMMENT
Members of the public may speak to any item NOT on the agenda.
ACTION ITEMS
1.Infrastructure and Environment: Capital Improvement Program, Capital Fund Projects
(9:00 AM – 10:30 AM) Presentation
a) Capital Improvement Fund (Pages C: 47‐291)
b) Cubberley Property Infrastructure Fund (Pages C: 293‐313)
2.Infrastructure and Environment: Capital Improvement Program, Enterprise Fund Projects
& Internal Service Fund Projects (10:30 AM – 12:00 PM) Presentation
a) Information Technology
i) Technology Fund (Pages C: 593‐624)
b) Public Works
i) Airport Fund (Pages C: 317‐339)
ii) Stormwater Management Fund (Pages C: 461‐490)
iii) Wastewater Treatment Fund (Pages C: 511‐546)
iv) Vehicle Replacement and Maintenance Fund (Pages C: 625‐653)
c) Utilities
i) Electric Fund (Pages C: 341‐415)
ii) Fiber Optics Fund (Pages C: 417‐433)
iii) Gas Fund (Pages C: 435‐459)
iv) Wastewater Collection Fund (Pages C: 491‐509)
v) Water Fund (Pages C: 547‐589)
LUNCH BREAK (12:00 PM ‐ 1:00 PM)
3.Review and Recommend to Council to Approve the FY 2024 Proposed Municipal Fee
Schedule Amendments as Part of the FY 2024 Budget Late Packet Report, Presentation
4.Infrastructure and Environment (1:30 PM – 3:00 PM) Presentation
a) Utilities: Operating
i) Electric Fund (Pages O: 413‐426)
ii) Fiber Optics Fund (Pages O: 427‐434)
iii) Gas Fund (Pages O: 435‐448)
iv) Wastewater Collection Fund (Pages O: 449‐457)
v) Water Fund (Pages O: 459‐472)
b) Public Works: Operating
i) General Fund (Pages O: 341‐352)
ii) Airport Fund (Pages O: 353‐360)
iii) Refuse Fund (Pages O: 361‐370)
iv) Stormwater Management Fund (Pages O: 371‐381)
v) Vehicle Replacement and Maintenance Fund (Pages O: 383‐391)
vi) Wastewater Treatment Fund (Pages O: 393‐403)
c) Sustainability & Climate Action Plan Update
5.Citywide Internal Support and Administration (3:00 – 4:30 PM) Presentation
a) Information Technology (Pages O: 267‐279)
b) Administrative Services (including Printing & Mailing Fund) (Pages O: 181‐201)
i) Debt Services Fund (Pages O: 105‐115)
c) Human Resources
i) General Fund (Pages O: 247‐254)
ii) General Liabilities Insurance Program (Pages O: 255‐259)
iii) Workers’ Compensation Fund (Pages O: 261‐266)
iv) General Benefits Fund (Pages O: 481‐487)
v) Retiree Health Benefit Fund (Pages O: 488‐490)
d) City Attorney’s Office (Pages O: 119‐128)
e) City Auditor’s Office (Pages O: 129‐136)
f) City Clerk’s Office (Pages O: 137‐146)
g) City Manager’s Office (Pages O: 153‐167)
h) City Council (Pages O: 147‐151)
6.Finance Committee Budget Hearing Recap and Next Steps (4:30 PM – 5:00 PM)
FUTURE MEETINGS AND AGENDAS
Members of the public may not speak to the item(s)
ADJOURNMENT
PUBLIC COMMENT INSTRUCTIONS
Members of the Public may provide public comments to teleconference meetings via email,
teleconference, or by phone.
1. Written public comments may be submitted by email to city.council@cityofpaloalto.org.
2. For in person public comments please complete a speaker request card located on the
table at the entrance to the Council Chambers and deliver it to the Clerk prior to
discussion of the item.
3. Spoken public comments using a computer or smart phone will be accepted through
the teleconference meeting. To address the Council, click on the link below to access a
Zoom‐based meeting. Please read the following instructions carefully.
You may download the Zoom client or connect to the meeting in‐ browser. If using
your browser, make sure you are using a current, up‐to‐date browser: Chrome 30 ,
Firefox 27 , Microsoft Edge 12 , Safari 7 . Certain functionality may be disabled in
older browsers including Internet Explorer. Or download the Zoom application onto
your smart phone from the Apple App Store or Google Play Store and enter in the
Meeting ID below.
You may be asked to enter an email address and name. We request that you
identify yourself by name as this will be visible online and will be used to notify you
that it is your turn to speak.
When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will
activate and unmute speakers in turn. Speakers will be notified shortly before they
are called to speak.
When called, please limit your remarks to the time limit allotted. A timer will be
shown on the computer to help keep track of your comments.
4. Spoken public comments using a phone use the telephone number listed below. When
you wish to speak on an agenda item hit *9 on your phone so we know that you wish to
speak. You will be asked to provide your first and last name before addressing the
Council. You will be advised how long you have to speak. When called please limit your
remarks to the agenda item and time limit allotted.
CLICK HERE TO JOIN Meeting ID: 992‐2730‐7235 Phone: 1‐669‐900‐6833
Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public
programs, services and meetings in a manner that is readily accessible to all. Persons with
disabilities who require materials in an appropriate alternative format or who require auxiliary
aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at
(650) 329‐2550 (voice) or by emailing ada@cityofpaloalto.org. Requests for assistance or
accommodations must be submitted at least 24 hours in advance of the meeting, program, or
service.
FINANCE COMMITTEESpecial MeetingTuesday, May 09, 2023Community Conference Room & Hybrid9:00 AMLate Packet Report(C = Capital Budget Book, O = Operating Budget Book)Budget Books Are Available At:https://www.cityofpaloalto.org/Departments/Administrative‐Services/City‐BudgetFinance Committee meetings will be held as “hybrid” meetings with the option to attend byteleconference/video conference or in person. To maximize public safety while still maintainingtransparency and public access, members of the public can choose to participate from home orattend in person. Information on how the public may observe and participate in the meeting islocated at the end of the agenda. Masks are strongly encouraged if attending in person. Themeeting will be broadcast on Cable TV Channel 26, live onYouTube https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen MediaCenter https://midpenmedia.org.VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/99227307235)Meeting ID: 992 2730 7235 Phone: 1(669)900‐6833PUBLIC COMMENTSPublic comments will be accepted both in person and via Zoom for up to three minutes or anamount of time determined by the Chair. All requests to speak will be taken until 5 minutesafter the staff’s presentation. Written public comments can be submitted in advance tocity.council@CityofPaloAlto.org and will be provided to the Council and available for inspectionon the City’s website. Please clearly indicate which agenda item you are referencing in yoursubject line.
PowerPoints, videos, or other media to be presented during public comment are accepted only
by email to city.clerk@CityofPaloAlto.org at least 24 hours prior to the meeting. Once received,
the Clerk will have them shared at public comment for the specified item. To uphold strong
cybersecurity management practices, USB’s or other physical electronic storage devices are not
accepted.
CALL TO ORDER
PUBLIC COMMENT
Members of the public may speak to any item NOT on the agenda.
ACTION ITEMS
1.Infrastructure and Environment: Capital Improvement Program, Capital Fund Projects
(9:00 AM – 10:30 AM) Presentation
a) Capital Improvement Fund (Pages C: 47‐291)
b) Cubberley Property Infrastructure Fund (Pages C: 293‐313)
2.Infrastructure and Environment: Capital Improvement Program, Enterprise Fund Projects
& Internal Service Fund Projects (10:30 AM – 12:00 PM) Presentation
a) Information Technology
i) Technology Fund (Pages C: 593‐624)
b) Public Works
i) Airport Fund (Pages C: 317‐339)
ii) Stormwater Management Fund (Pages C: 461‐490)
iii) Wastewater Treatment Fund (Pages C: 511‐546)
iv) Vehicle Replacement and Maintenance Fund (Pages C: 625‐653)
c) Utilities
i) Electric Fund (Pages C: 341‐415)
ii) Fiber Optics Fund (Pages C: 417‐433)
iii) Gas Fund (Pages C: 435‐459)
iv) Wastewater Collection Fund (Pages C: 491‐509)
v) Water Fund (Pages C: 547‐589)
LUNCH BREAK (12:00 PM ‐ 1:00 PM)
3.Review and Recommend to Council to Approve the FY 2024 Proposed Municipal Fee
Schedule Amendments as Part of the FY 2024 Budget Late Packet Report, Presentation
4.Infrastructure and Environment (1:30 PM – 3:00 PM) Presentation
a) Utilities: Operating
i) Electric Fund (Pages O: 413‐426)
ii) Fiber Optics Fund (Pages O: 427‐434)
iii) Gas Fund (Pages O: 435‐448)
iv) Wastewater Collection Fund (Pages O: 449‐457)
v) Water Fund (Pages O: 459‐472)
b) Public Works: Operating
i) General Fund (Pages O: 341‐352)
ii) Airport Fund (Pages O: 353‐360)
iii) Refuse Fund (Pages O: 361‐370)
iv) Stormwater Management Fund (Pages O: 371‐381)
v) Vehicle Replacement and Maintenance Fund (Pages O: 383‐391)
vi) Wastewater Treatment Fund (Pages O: 393‐403)
c) Sustainability & Climate Action Plan Update
5.Citywide Internal Support and Administration (3:00 – 4:30 PM) Presentation
a) Information Technology (Pages O: 267‐279)
b) Administrative Services (including Printing & Mailing Fund) (Pages O: 181‐201)
i) Debt Services Fund (Pages O: 105‐115)
c) Human Resources
i) General Fund (Pages O: 247‐254)
ii) General Liabilities Insurance Program (Pages O: 255‐259)
iii) Workers’ Compensation Fund (Pages O: 261‐266)
iv) General Benefits Fund (Pages O: 481‐487)
v) Retiree Health Benefit Fund (Pages O: 488‐490)
d) City Attorney’s Office (Pages O: 119‐128)
e) City Auditor’s Office (Pages O: 129‐136)
f) City Clerk’s Office (Pages O: 137‐146)
g) City Manager’s Office (Pages O: 153‐167)
h) City Council (Pages O: 147‐151)
6.Finance Committee Budget Hearing Recap and Next Steps (4:30 PM – 5:00 PM)
FUTURE MEETINGS AND AGENDAS
Members of the public may not speak to the item(s)
ADJOURNMENT
PUBLIC COMMENT INSTRUCTIONS
Members of the Public may provide public comments to teleconference meetings via email,
teleconference, or by phone.
1. Written public comments may be submitted by email to city.council@cityofpaloalto.org.
2. For in person public comments please complete a speaker request card located on the
table at the entrance to the Council Chambers and deliver it to the Clerk prior to
discussion of the item.
3. Spoken public comments using a computer or smart phone will be accepted through
the teleconference meeting. To address the Council, click on the link below to access a
Zoom‐based meeting. Please read the following instructions carefully.
You may download the Zoom client or connect to the meeting in‐ browser. If using
your browser, make sure you are using a current, up‐to‐date browser: Chrome 30 ,
Firefox 27 , Microsoft Edge 12 , Safari 7 . Certain functionality may be disabled in
older browsers including Internet Explorer. Or download the Zoom application onto
your smart phone from the Apple App Store or Google Play Store and enter in the
Meeting ID below.
You may be asked to enter an email address and name. We request that you
identify yourself by name as this will be visible online and will be used to notify you
that it is your turn to speak.
When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will
activate and unmute speakers in turn. Speakers will be notified shortly before they
are called to speak.
When called, please limit your remarks to the time limit allotted. A timer will be
shown on the computer to help keep track of your comments.
4. Spoken public comments using a phone use the telephone number listed below. When
you wish to speak on an agenda item hit *9 on your phone so we know that you wish to
speak. You will be asked to provide your first and last name before addressing the
Council. You will be advised how long you have to speak. When called please limit your
remarks to the agenda item and time limit allotted.
CLICK HERE TO JOIN Meeting ID: 992‐2730‐7235 Phone: 1‐669‐900‐6833
Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public
programs, services and meetings in a manner that is readily accessible to all. Persons with
disabilities who require materials in an appropriate alternative format or who require auxiliary
aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at
(650) 329‐2550 (voice) or by emailing ada@cityofpaloalto.org. Requests for assistance or
accommodations must be submitted at least 24 hours in advance of the meeting, program, or
service.
FINANCE COMMITTEESpecial MeetingTuesday, May 09, 2023Community Conference Room & Hybrid9:00 AMLate Packet Report(C = Capital Budget Book, O = Operating Budget Book)Budget Books Are Available At:https://www.cityofpaloalto.org/Departments/Administrative‐Services/City‐BudgetFinance Committee meetings will be held as “hybrid” meetings with the option to attend byteleconference/video conference or in person. To maximize public safety while still maintainingtransparency and public access, members of the public can choose to participate from home orattend in person. Information on how the public may observe and participate in the meeting islocated at the end of the agenda. Masks are strongly encouraged if attending in person. Themeeting will be broadcast on Cable TV Channel 26, live onYouTube https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen MediaCenter https://midpenmedia.org.VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/99227307235)Meeting ID: 992 2730 7235 Phone: 1(669)900‐6833PUBLIC COMMENTSPublic comments will be accepted both in person and via Zoom for up to three minutes or anamount of time determined by the Chair. All requests to speak will be taken until 5 minutesafter the staff’s presentation. Written public comments can be submitted in advance tocity.council@CityofPaloAlto.org and will be provided to the Council and available for inspectionon the City’s website. Please clearly indicate which agenda item you are referencing in yoursubject line.PowerPoints, videos, or other media to be presented during public comment are accepted onlyby email to city.clerk@CityofPaloAlto.org at least 24 hours prior to the meeting. Once received,the Clerk will have them shared at public comment for the specified item. To uphold strongcybersecurity management practices, USB’s or other physical electronic storage devices are notaccepted.CALL TO ORDERPUBLIC COMMENT Members of the public may speak to any item NOT on the agenda.ACTION ITEMS1.Infrastructure and Environment: Capital Improvement Program, Capital Fund Projects(9:00 AM – 10:30 AM) Presentation a) Capital Improvement Fund (Pages C: 47‐291) b) Cubberley Property Infrastructure Fund (Pages C: 293‐313)2.Infrastructure and Environment: Capital Improvement Program, Enterprise Fund Projects& Internal Service Fund Projects (10:30 AM – 12:00 PM) Presentation a) Information Technology i) Technology Fund (Pages C: 593‐624) b) Public Works i) Airport Fund (Pages C: 317‐339) ii) Stormwater Management Fund (Pages C: 461‐490) iii) Wastewater Treatment Fund (Pages C: 511‐546) iv) Vehicle Replacement and Maintenance Fund (Pages C: 625‐653) c) Utilities i) Electric Fund (Pages C: 341‐415) ii) Fiber Optics Fund (Pages C: 417‐433) iii) Gas Fund (Pages C: 435‐459) iv) Wastewater Collection Fund (Pages C: 491‐509) v) Water Fund (Pages C: 547‐589)LUNCH BREAK (12:00 PM ‐ 1:00 PM)3.Review and Recommend to Council to Approve the FY 2024 Proposed Municipal FeeSchedule Amendments as Part of the FY 2024 Budget Late Packet Report, Presentation4.Infrastructure and Environment (1:30 PM – 3:00 PM) Presentation a) Utilities: Operating i) Electric Fund (Pages O: 413‐426) ii) Fiber Optics Fund (Pages O: 427‐434) iii) Gas Fund (Pages O: 435‐448)
iv) Wastewater Collection Fund (Pages O: 449‐457)
v) Water Fund (Pages O: 459‐472)
b) Public Works: Operating
i) General Fund (Pages O: 341‐352)
ii) Airport Fund (Pages O: 353‐360)
iii) Refuse Fund (Pages O: 361‐370)
iv) Stormwater Management Fund (Pages O: 371‐381)
v) Vehicle Replacement and Maintenance Fund (Pages O: 383‐391)
vi) Wastewater Treatment Fund (Pages O: 393‐403)
c) Sustainability & Climate Action Plan Update
5.Citywide Internal Support and Administration (3:00 – 4:30 PM) Presentation
a) Information Technology (Pages O: 267‐279)
b) Administrative Services (including Printing & Mailing Fund) (Pages O: 181‐201)
i) Debt Services Fund (Pages O: 105‐115)
c) Human Resources
i) General Fund (Pages O: 247‐254)
ii) General Liabilities Insurance Program (Pages O: 255‐259)
iii) Workers’ Compensation Fund (Pages O: 261‐266)
iv) General Benefits Fund (Pages O: 481‐487)
v) Retiree Health Benefit Fund (Pages O: 488‐490)
d) City Attorney’s Office (Pages O: 119‐128)
e) City Auditor’s Office (Pages O: 129‐136)
f) City Clerk’s Office (Pages O: 137‐146)
g) City Manager’s Office (Pages O: 153‐167)
h) City Council (Pages O: 147‐151)
6.Finance Committee Budget Hearing Recap and Next Steps (4:30 PM – 5:00 PM)
FUTURE MEETINGS AND AGENDAS
Members of the public may not speak to the item(s)
ADJOURNMENT
PUBLIC COMMENT INSTRUCTIONS
Members of the Public may provide public comments to teleconference meetings via email,
teleconference, or by phone.
1. Written public comments may be submitted by email to city.council@cityofpaloalto.org.
2. For in person public comments please complete a speaker request card located on the
table at the entrance to the Council Chambers and deliver it to the Clerk prior to
discussion of the item.
3. Spoken public comments using a computer or smart phone will be accepted through
the teleconference meeting. To address the Council, click on the link below to access a
Zoom‐based meeting. Please read the following instructions carefully.
You may download the Zoom client or connect to the meeting in‐ browser. If using
your browser, make sure you are using a current, up‐to‐date browser: Chrome 30 ,
Firefox 27 , Microsoft Edge 12 , Safari 7 . Certain functionality may be disabled in
older browsers including Internet Explorer. Or download the Zoom application onto
your smart phone from the Apple App Store or Google Play Store and enter in the
Meeting ID below.
You may be asked to enter an email address and name. We request that you
identify yourself by name as this will be visible online and will be used to notify you
that it is your turn to speak.
When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will
activate and unmute speakers in turn. Speakers will be notified shortly before they
are called to speak.
When called, please limit your remarks to the time limit allotted. A timer will be
shown on the computer to help keep track of your comments.
4. Spoken public comments using a phone use the telephone number listed below. When
you wish to speak on an agenda item hit *9 on your phone so we know that you wish to
speak. You will be asked to provide your first and last name before addressing the
Council. You will be advised how long you have to speak. When called please limit your
remarks to the agenda item and time limit allotted.
CLICK HERE TO JOIN Meeting ID: 992‐2730‐7235 Phone: 1‐669‐900‐6833
Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public
programs, services and meetings in a manner that is readily accessible to all. Persons with
disabilities who require materials in an appropriate alternative format or who require auxiliary
aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at
(650) 329‐2550 (voice) or by emailing ada@cityofpaloalto.org. Requests for assistance or
accommodations must be submitted at least 24 hours in advance of the meeting, program, or
service.
FINANCE COMMITTEESpecial MeetingTuesday, May 09, 2023Community Conference Room & Hybrid9:00 AMLate Packet Report(C = Capital Budget Book, O = Operating Budget Book)Budget Books Are Available At:https://www.cityofpaloalto.org/Departments/Administrative‐Services/City‐BudgetFinance Committee meetings will be held as “hybrid” meetings with the option to attend byteleconference/video conference or in person. To maximize public safety while still maintainingtransparency and public access, members of the public can choose to participate from home orattend in person. Information on how the public may observe and participate in the meeting islocated at the end of the agenda. Masks are strongly encouraged if attending in person. Themeeting will be broadcast on Cable TV Channel 26, live onYouTube https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen MediaCenter https://midpenmedia.org.VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/99227307235)Meeting ID: 992 2730 7235 Phone: 1(669)900‐6833PUBLIC COMMENTSPublic comments will be accepted both in person and via Zoom for up to three minutes or anamount of time determined by the Chair. All requests to speak will be taken until 5 minutesafter the staff’s presentation. Written public comments can be submitted in advance tocity.council@CityofPaloAlto.org and will be provided to the Council and available for inspectionon the City’s website. Please clearly indicate which agenda item you are referencing in yoursubject line.PowerPoints, videos, or other media to be presented during public comment are accepted onlyby email to city.clerk@CityofPaloAlto.org at least 24 hours prior to the meeting. Once received,the Clerk will have them shared at public comment for the specified item. To uphold strongcybersecurity management practices, USB’s or other physical electronic storage devices are notaccepted.CALL TO ORDERPUBLIC COMMENT Members of the public may speak to any item NOT on the agenda.ACTION ITEMS1.Infrastructure and Environment: Capital Improvement Program, Capital Fund Projects(9:00 AM – 10:30 AM) Presentation a) Capital Improvement Fund (Pages C: 47‐291) b) Cubberley Property Infrastructure Fund (Pages C: 293‐313)2.Infrastructure and Environment: Capital Improvement Program, Enterprise Fund Projects& Internal Service Fund Projects (10:30 AM – 12:00 PM) Presentation a) Information Technology i) Technology Fund (Pages C: 593‐624) b) Public Works i) Airport Fund (Pages C: 317‐339) ii) Stormwater Management Fund (Pages C: 461‐490) iii) Wastewater Treatment Fund (Pages C: 511‐546) iv) Vehicle Replacement and Maintenance Fund (Pages C: 625‐653) c) Utilities i) Electric Fund (Pages C: 341‐415) ii) Fiber Optics Fund (Pages C: 417‐433) iii) Gas Fund (Pages C: 435‐459) iv) Wastewater Collection Fund (Pages C: 491‐509) v) Water Fund (Pages C: 547‐589)LUNCH BREAK (12:00 PM ‐ 1:00 PM)3.Review and Recommend to Council to Approve the FY 2024 Proposed Municipal FeeSchedule Amendments as Part of the FY 2024 Budget Late Packet Report, Presentation4.Infrastructure and Environment (1:30 PM – 3:00 PM) Presentation a) Utilities: Operating i) Electric Fund (Pages O: 413‐426) ii) Fiber Optics Fund (Pages O: 427‐434) iii) Gas Fund (Pages O: 435‐448) iv) Wastewater Collection Fund (Pages O: 449‐457) v) Water Fund (Pages O: 459‐472) b) Public Works: Operating i) General Fund (Pages O: 341‐352) ii) Airport Fund (Pages O: 353‐360) iii) Refuse Fund (Pages O: 361‐370) iv) Stormwater Management Fund (Pages O: 371‐381) v) Vehicle Replacement and Maintenance Fund (Pages O: 383‐391) vi) Wastewater Treatment Fund (Pages O: 393‐403) c) Sustainability & Climate Action Plan Update5.Citywide Internal Support and Administration (3:00 – 4:30 PM) Presentation a) Information Technology (Pages O: 267‐279) b) Administrative Services (including Printing & Mailing Fund) (Pages O: 181‐201) i) Debt Services Fund (Pages O: 105‐115) c) Human Resources i) General Fund (Pages O: 247‐254) ii) General Liabilities Insurance Program (Pages O: 255‐259) iii) Workers’ Compensation Fund (Pages O: 261‐266) iv) General Benefits Fund (Pages O: 481‐487) v) Retiree Health Benefit Fund (Pages O: 488‐490) d) City Attorney’s Office (Pages O: 119‐128) e) City Auditor’s Office (Pages O: 129‐136) f) City Clerk’s Office (Pages O: 137‐146) g) City Manager’s Office (Pages O: 153‐167) h) City Council (Pages O: 147‐151)6.Finance Committee Budget Hearing Recap and Next Steps (4:30 PM – 5:00 PM)FUTURE MEETINGS AND AGENDAS
Members of the public may not speak to the item(s)
ADJOURNMENT
PUBLIC COMMENT INSTRUCTIONS
Members of the Public may provide public comments to teleconference meetings via email,
teleconference, or by phone.
1. Written public comments may be submitted by email to city.council@cityofpaloalto.org.
2. For in person public comments please complete a speaker request card located on the
table at the entrance to the Council Chambers and deliver it to the Clerk prior to
discussion of the item.
3. Spoken public comments using a computer or smart phone will be accepted through
the teleconference meeting. To address the Council, click on the link below to access a
Zoom‐based meeting. Please read the following instructions carefully.
You may download the Zoom client or connect to the meeting in‐ browser. If using
your browser, make sure you are using a current, up‐to‐date browser: Chrome 30 ,
Firefox 27 , Microsoft Edge 12 , Safari 7 . Certain functionality may be disabled in
older browsers including Internet Explorer. Or download the Zoom application onto
your smart phone from the Apple App Store or Google Play Store and enter in the
Meeting ID below.
You may be asked to enter an email address and name. We request that you
identify yourself by name as this will be visible online and will be used to notify you
that it is your turn to speak.
When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will
activate and unmute speakers in turn. Speakers will be notified shortly before they
are called to speak.
When called, please limit your remarks to the time limit allotted. A timer will be
shown on the computer to help keep track of your comments.
4. Spoken public comments using a phone use the telephone number listed below. When
you wish to speak on an agenda item hit *9 on your phone so we know that you wish to
speak. You will be asked to provide your first and last name before addressing the
Council. You will be advised how long you have to speak. When called please limit your
remarks to the agenda item and time limit allotted.
CLICK HERE TO JOIN Meeting ID: 992‐2730‐7235 Phone: 1‐669‐900‐6833
Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public
programs, services and meetings in a manner that is readily accessible to all. Persons with
disabilities who require materials in an appropriate alternative format or who require auxiliary
aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at
(650) 329‐2550 (voice) or by emailing ada@cityofpaloalto.org. Requests for assistance or
accommodations must be submitted at least 24 hours in advance of the meeting, program, or
service.
FY 2024 PROPOSED BUDGET HEARINGSGENERAL CAPITAL IMPROVEMENT FUND &CUBBERLEY PROPERTY FUNDCAPITAL IMPROVEMENT PLANSCAP PG. 47-291; 293-313
May 9, 2023 www.cityofpaloalto.org/budget
1
Packet Pg. 5
Fund
Balance/Reserve
$35.8M
Transfer from
Parking Funds
$0.6M Transfer from
Other Funds
$0.2M
Transfer from
Enterprise Funds
$0.6M
Stanford University
Medical Center
$8.9M
Revenue from Other
Agencies
$173.6M
Impact Fees/ In-Lieu Fees
$11.1M
Gas Tax Funds
$16.6M
Federal and State
Grants
$19.2M
Transfer from
General Fund
$165.7M
2024-2028 CAPITAL IMPROVEMENT AND CUBBERLEY FUNDS REVENUES BY SOURCE
$432.2 MILLION
FY 2024-2028 PROPOSED BUDGET SUMMARY (Revenue)
2
1
Packet Pg. 6
Buildings and
Facilities
$62.5M
Department Technology
Upgrades and Improvements
$1.7M
Parks and Open
Space
$44.3M
Streets and
Sidewalks
$65.0M
Traffic and
Transportation
$205.7M
Administration
$44.0M
Cubberley Fund
Projects
$9.0M
2024-2028 CAPITAL IMPROVEMENT AND CUBBERLEY FUNDS
EXPENDITURES BY CATEGORY
$432.2 MILLION
FY 2024-2028 PROPOSED BUDGET SUMMARY (Expenses)
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GENERAL FUND CAPITAL PROJECTS
General Capital Improvement Fund Plan Pg. 47-291
Cubberley Property Fund Capital Improvement Plan Pg. 293-313
May 9, 2023 www.cityofpaloalto.org/budget
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FY 2024 GENERAL CAPITAL IMPROVEMENT PLAN
FY 2024 -FY 2028 CIP Baseline Budget Summary*
5
FY 2024
Proposed
FY 2025 FY 2026 FY 2027 FY 2028 5-Year Total
Revenues $73.8 M $50.6 M $87.0 M $86.9 M $85.5 M $383.7 M
Expenses $115.2 M $52.3 M $86.7M $85.3 M $83.7 M $423.2 M
Infrastructure
Reserve $3.6 M $2.4 M $2.7 M $1.9 M $3.7 M $3.7 M
FY 2024 –FY 2028 Capital Improvement Plan Outlook
•Overall Base Transfer from the General Fund (including interest earnings):
$12.3M in FY 2024; $83.6M over 5-Year CIP
•Transfers from Transient Occupancy Tax (TOT) revenues dedicated by
Council for infrastructure improvements:
$12.4M in FY 2024; $67.8M over 5-Year CIP
*Includes all fund expenses, including debt service expenses, as well as all revenues
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GENERAL FUND CAPITAL PROJECT SUMMARY
6
FY 2024 –FY 2028 Capital Improvement Plan Strategy
•Projects continue to be reprioritized to address Council priorities including the
Infrastructure Plan (IP),Climate Change, and Community Health and Safety
•Prioritization also based on staff workload capacity and external funding sources
•Re-establish funding for catch-up and keep-up work in recurring projects including
streets and sidewalks programs, and increase funding for inflation in out-years
•The Proposed 5-Year Plan does not fully fund several major known projects
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FY 2024-2028 NEW GENERAL FUND CAPITAL PROJECTS
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FY 2024-2028 GENERAL FUND CONTINUING CAPITAL PROJECTS
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FY 2024 CUBBERLEY IMPROVEMENT PLAN
FY 2024 –FY 2028 CIP Baseline Budget Summary*
9
FY 2024
Proposed
FY 2025 FY 2026 FY 2027 FY 2028 5-Year
Total
Revenues $3.8 M $1.9 M $2.4 M $2.8 M $2.2 M $13.1 M
Expenses $6.2 M $1.8 M $1.9 M $2.0 M $2.9 M $14.8 M
Ending Fund
Balance $3.0 M $3.1 M $3.6 M $4.3 M $3.7 M $3.7 M
FY 2024 –FY 2028 Cubberley Improvement Plan Outlook/ Strategy
•Revenues from General Fund transfers, and reimbursement from PAUSD for Roof Replacements
•Continuation of maintenance and upkeep of the facilities
•Six capital projects total: Four in Buildings & Facilities and two in Parks & Open Space
•Two new capital projects: Gym HVAC Replacement (CB-24000); Turf Replacement (CB-28000)
*Includes Operating and Capital revenues and expenses
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FY 2024-2028 CUBBERLEY CAPITAL PROJECTS
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FY 2024 PROPOSED BUDGET HEARINGSENTERPRISE FUNDS &INTERNAL SERVICE FUNDS CAPITAL IMPROVEMENT PLANS
Please refer to Project Sections for Page Numbers
May 9, 2023 www.cityofpaloalto.org/budget
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INTERNAL SERVICE FUND PROJECTS
Technology Fund Projects Pg. 593-624
Vehicle Replacement Fund Projects Pg. 625-653
May 9, 2023 www.cityofpaloalto.org/budget
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FY 2024 PROPOSED BUDGET SUMMARY (TECHNOLOGY FUND)
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Major Technology Projects in Progress
•Enterprise Resource Planning (ERP) Phase 2 Updates
•Provide new functionality to improve efficiencies and support new City initiatives
•Council Chambers Redesign
•RFP for design/build to support ADA Compliance and hybrid public meetings
•Computer Aided Dispatch (CAD) Replacement for Public Safety
•RFP to upgrade or replace the current solution in partnership with Mountain View and Los Altos
•Infrastructure Management System
•RFP will be issued for a new Electronic Reporting Management System (ERMS)
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FY 2024 INFORMATION TECHNOLOGY FUND p.593
2024-2028 CIP Proposed Budget Summary
4
FY 2024
Proposed
FY 2025 FY 2026 FY 2027 FY 2028 5-Year Total
Revenues $0.3 M $0.2 M $0.2 M $0.1 M $0.1 M $0.9 M
Expenses $5.4 M $1.7 M $0.2 M $0.1 M $0.1 M $7.5 M
FY 2024 –FY 2028 Information Technology Fund CIP Outlook
New Project:
•Fiscal Year 2025 –IT Data Center Upgrade
The goal is to reduce the footprint of the current datacenter and
reclaim space for IT staff
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FY 2024 VEHICLE REPLACEMENT FUND p.625
2024-2028 CIP Proposed Budget Summary
5
FY 2024
Proposed FY 2025 FY 2026 FY 2027 FY 2028
5-Year
Total
Revenues*$3.9 $3.9 $3.9 $3.9 $3.9 $19.5
Expenses $5.9M $3.5M $3.5M $3.7M $3.7M $20.3M
FY 2024 –FY 2028 Vehicle Replacement Fund CIP Outlook
•FY 2024 includes reappropriated funding ($2.3M) from previous years for
vehicles that still need to be ordered or outfitted
•Continue vehicle replacement program, addressing supply chain issues and
fleet electrification S/CAP goals
•Add 18 passenger and light truck Electric Vehicles to the fleet in the FY 2024
vehicle replacement project, with "Tier 2" option for a fully electric FY2024
project
*Revenue for Vehicle Replacements from other funds appears in the Operating Budget for this Fund
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ENTERPRISE FUND PROJECTS
Public Works Projects Pgs. 317-339; 461-490; 511-546; 625-653
Utilities Projects Pgs. 341-415; 417-433; 435-459; 491-509; 547-589
May 9, 2023 www.cityofpaloalto.org/budget
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COUNCIL CONSIDERATIONS & PUBLIC WORKS ENTERPRISE
PROJECT SUMMARY
7
FY 2024 –FY 2028 Capital Improvement Plan Strategy
•Continue other Airport improvements following completion of 8-year, $36 million
Apron project
•Implement 13 Storm Water Ballot Measure priority projects
•Rebuild and rehabilitate the Regional Water Quality Control Plant (RWQCP), and
begin an update to the 2012 Long Range Facilities Plan
Community Impact
Proposals will continue efforts to improve critical infrastructure at the airport, address
storm drainage deficiencies, and ensure reliable wastewater treatment.
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FY 2024 PUBLIC WORKS -AIRPORT FUND p.317
2024-2028 CIP Proposed Budget Summary
8
FY 2024
Proposed
FY 2025 FY 2026 FY 2027 FY 2028 5-Year
Total
Revenues $0.8M $1.3M $0.9M $2.5M $2.3M $7.8M
Expenses $1.4M $1.7M $1.2M $3.0M $2.7M $10.0M
FY 2024 –FY 2028 Airport Fund CIP Outlook
•With FY 2023 completion of multi-year, $36M apron project, focus on
planning process and smaller projects
•$3.8M Airport Access Road Reconstruction
•$0.5M Automated Weather Observation Station
•Install parking lot EV Chargers and implement Zero Emission Vehicle Fleet
Replacement Program
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FY 2024 PUBLIC WORKS -STORMWATER
MANAGEMENT FUND p.461
2024-2028 CIP Proposed Budget Summary
9
FY 2024
Proposed
FY 2025 FY 2026 FY 2027 FY 2028 5-Year
Total
Revenues $1.2M $0 $0 $0 $0 $1.2M
Expenses $9.9M $3.6M $1.7M $2.3M $2.8M $20.2M
FY 2024 –FY 2028 Stormwater Management Fund CIP Outlook
•Continue program to deliver 13 high priority projects funded by ballot measure
•$3.4M Corporation Way System Upgrades and Pump Station
•$0.6M East Meadow Circle Connection to Adobe Creek Pump Station
•$0.6M East Meadow Drive System Upgrades
•$2.5M West Bayshore Road Pump Station
•$2.4M West Bayshore Road Trunk Line Improvements
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FY 2024 PUBLIC WORKS –WASTEWATER
TREATMENT FUND p.511
2024-2028 CIP Proposed Budget Summary
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FY 2024
Proposed
FY 2025 FY 2026 FY 2027 FY 2028 5-Year
Total
Revenues $45.1M $62.7M $54.1M $0 $0 $161.9M
Expenses $55.8M $67.2M $59.0M $4.5M $5.0M $191.6M
FY 2024 –FY 2028 Wastewater Treatment Fund CIP Outlook
•Continue delivering existing capital renewal program while commencing a Long-
Range Facilities Plan update
•$56.4M Advanced Water Purification Facility
•$52.1M Headworks Facility Replacement
•$23.6M New Laboratory and Environmental Services Building
•$12.6M Joint Intercepting Sewer Rehabilitation
•$17.9M Outfall Line Construction
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FY 2024 PROPOSED BUDGET SUMMARY (UTILITIES)
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Community Impact
Utilities has been laying the foundation for the City's sustainability initiatives, and the
community can expect to see some immediate benefits.
•Smart meters will enable more efficient monitoring of energy usage, resulting in cost
savings for residents and businesses as well as a reduction in carbon emissions.
•Using grant opportunities to deploy critical infrastructure projects, providing a boost to the
City's sustainability efforts.
Major Proposed Changes in Enterprise Fund
•Grid modernization project for citywide electrification with potential bond or grant funding
•Fiber-to-the-premises (FTTP) project to deliver high-speed fiber broadband internet
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COUNCIL CONSIDERATIONS & UTILITIES ENTERPRISE PROJECT
SUMMARY
12
FY 2024 –FY 2028 Capital Improvement Plan Strategy
•Large investments anticipated for S/CAP initiatives such as grid modernization, gas
decommissioning studies
•Develop opportunities to coordinate projects such as electrification and fiber
expansion or FTTP
•Maintain or accelerate main replacement schedules to protect reliability of aging
infrastructure
•Invest in efforts to seek alternative funding such as grants
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FY 2024 UTILITIES -ELECTRIC FUND p.341
2024-2028 CIP Proposed Budget Summary
13
FY 2024
Proposed
FY 2025 FY 2026 FY 2027 FY 2028 5-Year
Total
Revenues 26.9M 26.9M 26.9M 26.9M 25.0M 132.4M
Expenses 54.9M 45.1M 63.8M 65.9M 60.7M 290.5M
FY 2024 –FY 2028 Electric Fund CIP Outlook
•Invest resources for grid modernization master plan
•$200-$300M grid modernization project
•$10.5M Foothills Fire Mitigation
•$6.9M Colorado Power Station Equipment Upgrades
•$5.7M Substation Breaker Replacement
•$4.7M Substation Physical Security
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FY 2024 UTILITIES -FIBER FUND p.417
2024-2028 CIP Proposed Budget Summary
14
FY 2024
Proposed
FY 2025 FY 2026 FY 2027 FY 2028 5-Year
Total
Revenues 0.2M 13.2M 0.2M 0.2M 0.2M 14.0M
Expenses 33.4M 0.6M 0.5M 0.5M 0.5M 35.4M
FY 2024 –FY 2028 Fiber Fund CIP Outlook
•$26M dark fiber backbone project;
•$20M and fiber-to-the-premises (FTTP) project
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FY 2024 UTILITIES -GAS FUND p.435
2024-2028 CIP Proposed Budget Summary
15
FY 2024
Proposed
FY 2025 FY 2026 FY 2027 FY 2028 5-Year
Total
Revenues $0.5M $0.5M $0.5M $0.5M $0.5M $2.5M
Expenses $6.9M $7.2M $5.8M $7.8M $5.8M $33.3M
FY 2024 –FY 2028 Gas Fund CIP Outlook
•Invest resources to study the downsizing of gas in anticipation of
changes in future uses
•Begin $10M Gas Main Replacement (GMR) Project #25 in FY 2024
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FY 2024 UTILITIES –WASTEWATER COLLECTION
FUND p.491
2024-2028 CIP Proposed Budget Summary
16
FY 2024
Proposed
FY 2025 FY 2026 FY 2027 FY 2028 5-Year
Total
Revenues 0.5M 0.5M 0.5M 0.5M 0.5M 2.3M
Expenses 2.2M 3.2M 5.2M 3.3M 5.2M 19.0M
FY 2024 –FY 2028 Wastewater Collection Fund CIP Outlook
•Accelerate wastewater main replacement from 1 mile to 2.5 miles beginning in
FY 2026
•Begin construction on $8.6M Wastewater Collection Replacement Project (SSR)
#31 (advanced from FY 2024 to FY2023) to align with Caltrans street
improvement project
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FY 2024 UTILITIES -WATER FUND p.547
2024-2028 CIP Proposed Budget Summary
17
FY 2024
Proposed
FY 2025 FY 2026 FY 2027 FY 2028 5-Year
Total
Revenues 1.4M 1.5M 1.5M 1.5M 1.5M 7.5M
Expenses 26.2M 4.3M 18.9M 4.8M 13.1M 67.3M
FY 2024 –FY 2028 Water Fund CIP Outlook
•Proceed with the $7.4M second to last of six water tank seismic upgrade
or replacement (Park Reservoir)
•Complete construction of $9.6M Water Main Replacement Project
(WMR) #28
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SUSTAINABILITY AND CLIMATE ACTION PLAN
Office of Transportation (OOT) Operating Budget Page 180,
Public Works (PW) Operating Budget Page 352,
Utilities (UTL) Operating Budget Page 447, Capital Budget EL-24000,
Additional OOT, PW, UTL, and Planning and Development Services,
Climate priority proposals in Transmittal Att C, pages xxvi to xxiv
May 9, 2023 www.cityofpaloalto.org/budget
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FY 2024 BUDGET SUMMARY (Sustainability and Climate Action Plan)
Community Impact
The FY 2024 budget requests will enable the City to begin preparing the electric and gas systems to accommodate
widespread vehicle and building electrification and will improve facilities to enable more bicycling and walking.
The City will be able to lead by example by implementing electrification in City facilities.
Major Proposed Changes to Various Funds
19
Fund Description Cost Council Priority
General Staffing for bicycle and pedestrian projects and
Caltrain crossings (1.0 Sr Planner)
$196,000 (ongoing)Climate (m)
Electric Grid Modernization $25M (ongoing, varies)Climate (p)
Gas Gas decommissioning studies and
implementation –contract costs + staffing
$250,000 (one time) +
$150,000 (ongoing)
Climate (p)
Various
Funds
Staffing for City facility electrification (1.0
Project Manager)
General Fund expenditure
$72,000 per year
Climate (S/CAP work plan)
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FUTURE PROGRAM OUTLOOK (Sustainability and Climate Action Plan)
20
Additional requests may be forthcoming in FY 2025 for individual programs based on 2023
planning efforts. Potential areas include:
•Expansion of existing electrification programs, expansion of program sales and
marketing efforts, new programs
•Mobility: new program proposals (e.g. on-demand transit program extension) and
plan implementation (e.g. Bicycle / Pedestrian Plan, Vision Zero)
•City facility electrification project budgets
•Water/wastewater proposals related to recycled water or other new sources
•Sea Level Rise Plan implementation and/or flood protection efforts
•Zero waste, urban canopy, low carbon construction
•Green stormwater infrastructure plan implementation
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Finance Committee
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: Administrative Services
Meeting Date: May 9, 2023
Report #:2304-1386
TITLE
Review and Recommend to Council to Approve the FY 2024 Proposed Municipal Fee Schedule
Amendments as Part of the FY 2024 Budget
RECOMMENDATION
Staff recommends that the Finance Committee review amendments to the Municipal Fee
Schedule for FY 2024 and make recommendations to Council for incorporation into the FY 2024
budget.
EXECUTIVE SUMMARY
This report presents the annual update to over 960 fees as part of the budget process. It
highlights proposed changes to the FY 2024 Municipal Fee Schedule, which include 19 new fees
for the Community Services Department and Office of Transportation, deletion of 3 fees in the
Office of Transportation, and 237 fee adjustments. It is based on the general premise of exception
reporting, which is reflected in the practice of applying a General Rate of Increase (GRI) to fees
to keep up with the cost of service, new service delivery or changes to service delivery, and
changes in cost recovery levels, and reporting out any fees that are proposed to stay the same or
change by an amount other than the GRI of 7.5% for FY 2024. Recommended approval will be
incorporated in the FY 2024 budget process and ultimately result in the fees for FY 2024 services.
BACKGROUND
The City charges fees for a variety of services provided, such as fees for photocopies, building
inspection services, and room rentals. As part of the annual budget process, staff submit changes
to the Municipal Fee Schedule for review, followed by final approval during City Council’s budget
adoption.
In FY 2013, staff completed a cost of services study for most departments. Results from that study
set the standards used by departments to review and calculate the City’s expenditures linked to
a particular fee activity to determine the fee amount and cost recovery level. These expenditures
represent the budgeted cost of staff time including salaries and benefits, related non-salary
expenditures, department and citywide cost allocations to recuperate costs for department
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1
4
management oversight and internal support functions (e.g. purchasing, payroll, human
resources).
Since its adoption in FY 2015, the User Fee Cost Recovery Level Policy has served as a guide for
departments to update fees by ensuring proper alignment with user cost recovery levels. To
maintain this alignment, departments periodically conduct an in-depth fee analysis or undergo a
fee study. The Policy was last updated by Council in June 2019.1
Table 1: Summary of Municipal Fee Cost Recovery Policy
This annual report brings forward amendments to the Municipal Fee Schedule organized into
three categories:
(1) New fees,
(2) Deletion of existing fees, and
1 Adoption of FY 2020 Budget & Municipal Fees https://www.cityofpaloalto.org/files/assets/public/agendas-
minutes-reports/reports/city-manager-reports-cmrs/year-archive/2019/10419.pdf?t=52421.18
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(3) Changed fees to attain a cost recovery level consistent with other fees or based on a
market study for similar services.
DISCUSSION
The development of the Municipal Fee Schedule for FY 2024 reflects department service
realignments, as most fees across the City have been updated to maintain cost recovery levels.
The average increase of salaries and benefits from FY 2023 to FY 2024 was 7.5% and is the general
rate of increase that is applied to most fees to maintain current cost recovery levels, as directed
by the policy. Fees that were updated by a factor greater or lesser than 7.5% to realize a higher
cost recovery level, or were adjusted based on a fee study, market study, or staff
recommendation are further detailed in Attachment A. Budget proposals that will be discussed
by the Finance Committee and City Council that result in an impact to fees have been identified
and considered in staff’s analysis of fees.
New Fees
As identified in Table 2 below, nineteen (19) new fees are recommended to be added to the FY
2024 Municipal Fee Schedule for the Community Services Department (14 fees) and Office of
Transportation (five fees).
Community Services Department recommended additions:
• Twelve fees for veterinary services for cats and dogs
• One fee for community center rental lighting
• One fee for camp rentals
Office of Transportation recommended additions:
• Five fees for on-demand transportation and parking fares/passes
Table 2: New Fees for FY 2024
Department Fee Type Fee Title FY 2024 Proposed Fee
Cost Recovery
Level
Community
Services
Veterinary
Medication
Brachycephalic Fee $75.00 per pet High
Community
Services
Adoption Cats
(5+ Years)
Resident: $50.00 per cat
Non-Resident: $50.00 per cat
High
Community
Services
Adoption Cats
(6 months - 5 years)
Resident: $125.00 per cat
Non-Resident: $125.00 per cat
High
Community
Services
Adoption Cats
(Two adopted at once)
Resident: $175.00 per cat
Non-Resident: $175.00 per cat
High
Community
Services
Adoption Cats
(Under 6 Months)
Resident: $150.00 per cat
Non-Resident: $175.00 per cat
High
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1
4
Department Fee Type Fee Title FY 2024 Proposed Fee
Cost Recovery
Level
Community
Services
Adoption Dogs
(5+ Years)
Resident: $75.00 per dog
Non-Resident: $75.00 per dog
High
Community
Services
Adoption Dogs
(6 months - 5 years)
Resident: $150.00 per dog
Non-Resident: $175.00 per dog
High
Community
Services
Adoption Dogs
(Under 6 Months)
Resident: $150.00 per dog
Non-Resident: $250.00 per dog
High
Community
Services
Veterinary
Medication
Injectable Medication $18.00 - $58.00 each High
Community
Services
Lab Services Labwork - USG $17.00 each High
Community
Services
Community
Rental
Lighting Resident: $170.00 per use
Non-Resident: $220.00 per use
High
Community
Services
Veterinary
Medication
Rabbit Hemorrhagic
Disease Vaccine
$150.00 - $250.00 each High
Community
Services
Animal
Transport
Specialty Animal Program
Fee
$150.00 - $250.00 each High
Community
Services
Community
Rental
Towle Camp Group
(16 People)
$50.00 per day High
Office of
Transportation
On-Demand
Transit
Discounted Fare
(age 65+)
$1.00 per passenger trip High
Office of
Transportation
On-Demand
Transit
Monthly Pass $65.00 per month High
Office of
Transportation
On-Demand
Transit
On-Demand Transit
(Palo Alto Link)
$0.00 - $3.50 per passenger trip High
Office of
Transportation
On-Demand
Transit
One-Way fare $3.50 per passenger trip High
Office of
Transportation
On-Demand
Transit
Weekly Pass $20.00 per week High
Deleted Fees
Sixteen (16) fees in the Community Services Department and three (3) fees in the Office of
Transportation are recommended to be deleted in the FY 2024 Municipal Fee Schedule. Each fee,
and the justification for its deletion, is detailed in Table 3 below.
Table 3. Deletion of Fees for FY 2024
Department Fee Title Justification
Community
Services
Common – Procedures – Special Prescription Diets Vendor recommended
Community
Services
Bandages – Paws Consolidate into new fee “Bandage.”
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Department Fee Title Justification
Community
Services
Bandages – Robert Jones Consolidate into new fee “Bandage.”
Community
Services
Bandages – Splint Consolidate into new fee “Bandage.”
Community
Services
Common Procedures – Incubator/ICU Cage with O2 Vendor recommended
Community
Services
Common Procedures - Intensive Care (additional)Vendor recommended
Community
Services
Dogs & Cats Changed to multiple fees based on age
criteria
Community
Services
Injections - IM & SQ Consolidated into new fee “Injectable
Medication.”
Community
Services
Injections - IV Consolidated into new fee “Injectable
Medication.”
Community
Services
Injections - IV solu-delta cortef 100mg Consolidated into new fee “Injectable
Medication.”
Community
Services
Injections – IV solu-delta cortef 500mg Consolidated into new fee “Injectable
Medication.”
Community
Services
Fluid Therapy – IVAC Set Up and Use Vendor recommended
Community
Services
Labwork – Multistick Urinalysis Consolidated into new fee “Labwork -
Urine Dipstick.”
Community
Services
Labwork - Azostick or Dextrostick Consolidated into new fee “Labwork -
Urine Dipstick.”
Community
Services
Microchip Rescue Group Consolidated into existing “Microchip”
fee.
Community
Services
Rx for Clinic Consolidated into “Oral Prescription
Medication.”
Office of
Transportation
Downtown RPP - Daily Employee Parking Permit Permit will no longer be offered.
Office of
Transportation
Evergreen Park - Mayfield RPP Daily Employee
Parking Permit
Permit will no longer be offered.
Office of
Transportation
Southgate RPP - Daily Employee
Parking Permit
Permit will no longer be offered.
Changed Fees
235 fees are recommended to be adjusted by a factor other than the 7.5% to adjust for the
general change in salary and benefits adjustments between FY 2023 and FY 2024. Changes to
these fees as detailed in Attachment A generally reflect changes to:
(1)Attain a cost recovery level consistent with other fees;
(2)Align with a market study;
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(3)Modify the fee structure to align with current service delivery; or
(4)Hold the fee flat to avoid discouraging use of the service or activity.
Each fee is listed by name along with the Adopted FY 2023 rate, the Proposed FY 2024 rate, the
percentage change, and the fee change justification in Attachment A. The 235 changed fees
detailed in the attachment are for the following departments: five in Administrative Services,
four in City Clerk, 115 in Community Services, seven in Fire, 15 in Library, 14 in non-departmental,
45 in Office of Transportation, 10 in Planning and Development Services, 12 in Police, and 8 in
Public Works.
Partner Agencies or Vendor Fees
The City may form partnerships to provide services it wishes to maintain but not provide directly
using City staff. While the City no longer directly administers these services, the fees may still be
included in the Municipal Fee Schedule. Changes to these fees are based on the contract terms,
such as Community Services animal shelter fees, which were changed based on the market value
for providing animal care services or held at the same level at the shelter operator’s
recommendation; Community Services golf course fees, which are adjusted to align with the
upper and lower limits of the course’s dynamic, demand-based pricing model. Since these fees
are governed by the contract through which partner agencies or vendors provide the service,
they are discussed in Attachment B.
Parking In-Lieu fees
Palo Alto Municipal Code (PAMC) Chapter 16.57.0302 requires that the Parking In-Lieu Fee be
recalculated in the event the City Council approved the construction of a public parking structure.
Per the Municipal Code, the fee shall be adjusted at the time the construction contract is awarded
to include actual costs to date, plus the projected construction cost, and authorized contingency.
A second recalculation must occur after the project is completed, based on actual design and
construction costs incurred. The recalculated fee may be higher or lower than the initial fee.
In December 2018, Council awarded a construction contract to Swinerton Builders3 for the
California Avenue Area Parking Garage. The total project cost was calculated per PAMC
16.57.0302 and includes design costs plus additional services, the construction bid with
authorized contingency, and all other staff and administrative costs incurred. This calculation was
done and approved as part of the FY 2020 budget development process4. The cost per parking
space was calculated at $106,171 for the FY 2020 Adopted Municipal Fee Schedule. The California
Avenue Parking Garage was completed and opened in December 2020. Staff has completed all
project close-out documents and recalculated the Parking In-Lieu Fee at $105,811. After adding
the appropriate construction cost indexes for the San Francisco Bay Area for FY 2021 through FY
2 Municipal Code 16.57.030 https://codelibrary.amlegal.com/codes/paloalto/latest/paloalto_ca/0-0-0-74866
3 CMR 9688 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-
reports-cmrs/year-archive/2018/id.-9688-350-sherman-ave-garage-construction.pdf?t=62452.05
4 CMR 10225 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-
reports-cmrs/year-archive/2019/10225.pdf
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2023, the revised fee was set at $124,275. Adding the respective construction cost index for FY
2024 brings the fee to $130,823.
Development Impact and In-Lieu Fees
In the Planning and Development Services Department, impact fees (i.e., community center,
park, library, and citywide transportation impact fees) and in-lieu fees (parking and housing in-
lieu, parkland dedication) were increased by 5.27% to reflect the most recently published
Construction Cost Index (CCI) for the San Francisco Bay Area, as calculated by the Engineering
News Record. This is in accordance with Municipal Code 16.64.1105, as amended on November
28, 20166, to standardize when these fees are paid, bring uniformity to the calculation in effect,
bring uniformity to the annual adjustment rate, and other updates. Since these fees are governed
by the applicable Municipal Code section, they are not discussed in Attachment A.
The Park, Library, and Community Center impact fee increases proposed for FY 2024 do not yet
reflect the changes that Council approved on June 13, 20227, including (1) new fee categories; (2)
increased land valuation for new park acquisition; and (3) a square foot basis (instead of a per
housing unit basis) to calculate the fees. The Council directed staff to conduct and economic
feasibility study before implementing these changes. The economic feasibility study has not been
completed, and staff will return to Council upon completion. The fees can be updated upon an
amendment to the Municipal Fee Schedule.
FISCAL IMPACT
This action aligns fees with expense increases associated with these services. It works to ensure
the City can maintain cost recovery levels, and is part of the FY 2024 Proposed Operating Budget.
POLICY IMPLICATIONS
These recommendations are consistent with existing City policies. Where a fee or charge is
subject to Proposition 26, the amount of the new or increased fee or charge is no more than
necessary to cover the reasonable cost of the City service, and the manner in which those costs
are allocated to a payer bears a fair and reasonable relationship to the payer’s burden on, or
benefits received from, the City service funded by the fee. Certain types of fees, such as fines,
penalties and/or late charges, or charges imposed for entrance to or use of, as well as the
purchase, rental, or lease of local government property, are expressly exempted from the
requirements of Proposition 26. These types of fees are more typically governed by local market
rates, reasonableness, and potentially other policy factors.
STAKEHOLDER ENGAGEMENT
Staff has coordinated internally with budget and management staff in each department citywide
5 Municipal Code 16.64.110 https://codelibrary.amlegal.com/codes/paloalto/latest/paloalto_ca/0-0-0-75337
6 CMR 7518 https://www.cityofpaloalto.org/civicax/filebank/documents/54800
7 CMR 14074 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/city-
council-agendas-minutes/2022/20220613/20220613pccsm-final-amended-linked.pdf
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to develop the recommendations in this report. Conversations with the City Council throughout
May and June prior to the adoption of the FY 2024 Operating and Capital Budgets and Municipal
Fee Schedule allow for public participation in this annual process. Staff will also comply with
notice requirements under state law for amending the fees, including the Mitigation Fee Act.
ENVIRONMENTAL REVIEW
This activity is not a project under California Environmental Quality Act (CEQA) as defined in CEQA
Guidelines, section 15378, because it has no potential for resulting in either a direct or reasonably
foreseeable indirect physical change in the environment.
ATTACHMENTS
Attachment A: Municipal Fee Schedule Amendments for FY 2024 Changed Fees
Attachment B: Municipal Fee Schedule Amendments for FY 2024 Partner Agency or Vendor
Changed Fees
APPROVED BY:
Kiely Nose, Assistant City Manager
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Attachment A: Page 1 of 3
Municipal Fee Schedule Amendments for FY 2024 Changed Fees ATTACHMENT A
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Administrative Services
Fee Title FY 2023 Adopted FY 2024 Proposed % Change Justification
Budget Book $40.00 each $46.00 each 15.0%Fees aligned to cover material and staffing costs
Mailing (Certified)$3.75 each $4.15 each 10.7%
Returned Payment Charge (CA Civil Code Section 1719)$25.00 each $25.00 each 0.0%
Tobacco Retail Permit One-time application fee $347. Annual permit fee $434.One-time application fee $347. Annual permit fee $434.0.0%
Fee set by outside agency
Business Registry Fee $50.00 per business $50.00 per business 0.0%Fee set by Council policy
City Clerk
Fee Title FY 2023 Adopted FY 2024 Proposed % Change Justification
Domestic Partners Registration Fee $38.00 each $38.00 each 0.0%Keep fees flat due to low volume
Candidate Filing Fee $25.00 each $25.00 each 0.0%To avoid discouraging use
Certification Fee $11.00 each $11.00 each 0.0%To avoid discouraging use
Fair Political Practices Commission Photocopies $0.10 per page $0.10 per page 0.0%Fee set by outside agency
Community Services
Fee Title FY 2023 Adopted FY 2024 Proposed % Change Justification
A. Vehicle Entry - Daily Fee - Vehicle Capacity 9
passengers or less
$6.00 each $6.00 each 0.0%
B. Vehicle Entry - Daily Fee - Vehicle Capacity 10 - 24
passengers
$30.00 each $30.00 each 0.0%
C. Vehicle Entry - Daily Fee - Vehicle Capacity 25 or more
passengers with a group permit
$60.00 each $60.00 each 0.0%
To avoid discouraging use
Canoe (Foothills Nature Preserve Only)$20.00 per hour $22.00 per hour 10.0%
Field Trips $200.00 per group $263.00 per group 31.5%
Align fee to actual costs
Synthetic Turf Field - Palo Alto Based Youth Sports
Organizations
Resident Fee: $40.00 per hour
Non-Resident Fee: Not Available
Resident Fee: $40.00 per hour
Non-Resident Fee: Not Available
0.0%Fee recently increased; maintain cost recovery level
Organic Garden Clean-up/Security Deposit $100.00 - $200.00 per garden plot $100.00 - $200.00 per garden plot 0.0%
Teen Center Membership - Monthly $5.00 - $10.00 per month $5.00 - $10.00 per month 0.0%
Teen Center Membership - School Year $70.00 each $70.00 each 0.0%
Towle Camp (8 People)$30.00 per day $30.00 per day 0.0%
To avoid discouraging use
Fire
Fee Title FY 2023 Adopted FY 2024 Proposed % Change Justification
Alarm Registration Fee - New $56.00 per incident $56.00 per incident 0.0%
Alarm Registration Fee - Renewal $42.00 per incident $42.00 per incident 0.0%
Alarm Registration Late Fee $20.00 per incident $20.00 per incident 0.0%
Alarm Reinstatement Fee $50.00 per incident $50.00 per incident 0.0%
Keep fees flat due to recent rollout
Returned Check Fee $25.00 per incident $25.00 per incident 0.0%Fee set by outside agency
Engine Company Second Reinspection $279.00 per hour $279.00 per hour 0.0%Keep fee flat due to cost recovery level
Paramedic Internship Fee $1,000.00 each $1,000.00 each 0.0%To avoid discouraging use
Library
Fee Title FY 2023 Adopted FY 2024 Proposed % Change Justification
Billing Fee for Overdue Items $5.00 per item $5.00 per item 0.0%
Collection Agency Processing Fee $10.00 per item $12.00 per item 20.0%
Damaged and Lost Materials - LINK+$115.00 per item $115.00 per item 0.0%
Fees set by outside agency
Expired Hold Fee $1.00 per item $1.00 per item 0.0%
Laser Prints - Black & White $0.15 per page $0.15 per page 0.0%
Laser Prints - Color $0.50 per page $0.50 per page 0.0%
Mitchell Park Library Community Room
Resident Fee: $66.00 per hour
Non-Resident Fee: $99.00 per hour
Resident Fee: $66.00 per hour
Non-Resident Fee: $99.00 per hour
0.0%
Mitchell Park Library Community Room - Full Day Rental Resident Fee: $330.00 per day
Non-Resident Fee: $494.00 per day
Resident Fee: $330.00 per day
Non-Resident Fee: $494.00 per day
0.0%
Overdue Materials - In House Laptops $0.30 per hour $0.30 per hour 0.0%
Photography/Filming - Space Rental Fee $100.00 - $2,000.00 per session $100.00 - $2,000.00 per session 0.0%
Replacement Library Card $1.00 each $1.00 each 0.0%
To avoid discouraging use
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Attachment A: Page 2 of 3
Municipal Fee Schedule Amendments for FY 2024 Changed Fees ATTACHMENT A
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Rinconada Library Community Room
Resident Fee: $96.00 per hour
Non-Resident Fee: $143.00 per hour
Resident Fee: $96.00 per hour
Non-Resident Fee: $143.00 per hour
0.0%
Rinconada Library Community Room - Full Day Rental Resident Fee: $478.00 per day
Non-Resident Fee: $716.00 per day
Resident Fee: $478.00 per day
Non-Resident Fee: $716.00 per day
0.0%
Room Cleaning & Damage Deposit $306.00 - $3,060.00 per deposit $306.00 - $3,060.00 per deposit 0.0%
Room Cleaning Fee - Add on $80.00 - $500.00 per event $80.00 - $500.00 per event 0.0%
Office of Transportation (OOT)
Fee Title FY 2023 Adopted FY 2024 Proposed % Change Justification
All Downtown and SOFA Garages and Lots - One Day
Parking Permit
$25.00 per day $0.00 - $25.00 per day 0.0%Provide flexibility in adjustment of pricing based on
market conditions.
All Downtown and SOFA Lots and Garages Annual
Parking Permit
$900.00 per year $900.00 per year 0.0%
All Downtown and SOFA Lots and Garages Reduced-Price
Annual Parking Permit
$225.00 per year $225.00 per year 0.0%
Bicycle Training (or other training TBD)$17.00 - $80.00 per class $17.00 - $80.00 per class 0.0%
FY 2024 pricing based on CMR #11795
(November 1, 2021)
California Avenue Area All Garages and Lots - Daily
Parking Permit
$25.00 per day $0 - $25 per day 0.0%Provide flexibility in adjustment of pricing based on
market conditions.
California Avenue Area All Garages and Lots Annual
Parking Permit
$650.00 per year $650.00 per year 0.0%
California Avenue Area All Garages and Lots Reduced-
Price Annual Parking Permit
$162.50 per year $162.50 per year 0.0%
FY 2024 pricing based on CMR #11795
(November 1, 2021)
Charleston Arastradero - Commercial $0.46 per sq. ft $0.49 per sq. ft 6.5%Provide flexibility in adjustment of pricing based on
market conditions.
College Terrace RPP - Annual Resident Parking Permit $50.00 per year $50.00 per year 0.0%
College Terrace RPP Daily Resident Parking Permit $5.00 per day $5.00 per day 0.0%
Crescent Park NOP - Annual Resident Parking Permit $50.00 per year $50.00 per year 0.0%
Crescent Park NOP Daily Resident Parking Permit $5.00 per day $5.00 per day 0.0%
Downtown RPP - Annual Resident Parking Permit $50.00 per year $50.00 per year 0.0%
Downtown RPP - Daily Resident Parking Permit $5.00 per day $5.00 per day 0.0%
Downtown RPP - Reduced-Price Employee Parking
Permit
$131.25 each $131.25 each 0.0%
Downtown RPP Full Price Employee Parking Permit $525.00 each $525.00 each 0.0%
Evergreen Park - Mayfield RPP Annual Resident Parking
Permit
$50.00 per year $50.00 per year 0.0%
Evergreen Park - Mayfield RPP Daily Resident Parking
Permit
$5.00 per day $5.00 per day 0.0%
Evergreen Park - Mayfield RPP Full Price Employee
Parking Permit
$375.00 each $375.00 each 0.0%
Evergreen Park - Mayfield RPP Reduced-Price Employee
Parking Permit
$93.75 each $93.75 each 0.0%
Old Palo Alto RPP - Annual Resident Parking Permit $50.00 per year $50.00 per year 0.0%
Old Palo Alto RPP - Daily Resident Parking Permit $5.00 per day $5.00 per day 0.0%
Southgate RPP - Annual Resident Parking Permit $50.00 per year $50.00 per year 0.0%
Southgate RPP - Daily Resident Parking Permit $5.00 per day $5.00 per day 0.0%
Southgate RPP - Full Price Employee Parking Permit $375.00 each $375.00 each 0.0%
Southgate RPP - Reduced Price Employee Parking Permit $93.75 each $93.75 each 0.0%
Standard On-street Disabled Parking Space $1,010.00 each $1,010.00 each 0.0%
FY 2024 pricing based on CMR #11795
(November 1, 2021)
Planning and Development Services
Fee Title FY 2023 Adopted FY 2024 Proposed % Change Justification
A. $1.00 - $25,000.00 Permit Valuation $1.00 per unit $1.00 per unit 0.0%
B. $25,001.00 - $50,000.00 Permit Valuation $2.00 per unit $2.00 per unit 0.0%
C. $50,001.00 - $75,000.00 Permit Valuation $3.00 per unit $3.00 per unit 0.0%
D. $75,001.00 - $100,000.00 Permit Valuation $4.00 per unit $4.00 per unit 0.0%
E. Each $25,000.00 Increment or Fraction Thereof Above
$100,000.00
$1.00 per unit $1.00 per unit 0.0%
F. Minimum $1.00 per unit $1.00 per unit 0.0%
SB 1186 Mandated Fee $4.00 each $4.00 each 0.0%
SB 330 Fee $2,961.84 each $2,961.84 each 0.0%
Fees set by outside agency
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Attachment A: Page 3 of 3
Municipal Fee Schedule Amendments for FY 2024 Changed Fees ATTACHMENT A
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Parkland Dedication Fee - Land Single Family: 531 sq. ft. per unit
Multi-Family: 366 sq. ft. per unit
Single Family: 531 sq. ft. per unit
Multi-Family: 366 sq. ft. per unit
0.0%FY 2024 pricing based on CMR #11795
(November 1, 2021)
Police
Fee Title FY 2023 Adopted FY 2024 Proposed % Change Justification
Concealed Weapons Permit Application - New $30.00 per application $30.00 per application 0.0%
Concealed Weapons Permit Application - Renewal $20.00 per application $20.00 per application 0.0%Fee in line with that of neighboring jurisdictions
Department of Justice Fingerprint and Rolling Fee $69.00 each $52.00 each -24.6%
OPM/DOD Background Check $5.00 per application $5.00 per application 0.0%
Report Copy Fee $14.00 each $15.00 each 7.1%
Secondhand Dealer - DOJ $300.00 per application $300.00 per application 0.0%
State Mandated Fees - First Offense $35.00 per occurrence $35.00 per occurrence 0.0%
State Mandated Fees - Second Offense $50.00 per occurrence $50.00 per occurrence 0.0%
State Mandated Fees - Third and Subsequent Offenses $100.00 per occurrence $100.00 per occurrence 0.0%
Subpoena Fee $24.00 per hour $24.00 per hour 0.0%
Fee set by outside agency
Temporary Street Closure $124.00 - $1,474.00 plus cost to provide certain services $124.00 - $1,474.00 plus cost to provide certain services 0.0%Maintain cost recovery level
Vehicle Repossession Receipt $15.00 each $15.00 each 0.0%Fee set by outside agency
Public Works
Fee Title FY 2023 Adopted FY 2024 Proposed % Change Justification
A. Pavement Condition: Poor $12.00 per square foot $13.00 per square foot 8.3%
B. Pavement Condition: Fair/At-Risk $15.00 per square foot $16.00 per square foot 6.7%
C. Pavement Condition: Good $18.00 per square foot $19.00 per square foot 5.6%
D. Pavement Condition: Very Good - Excellent $25.00 per square foot $27.00 per square foot 8.0%
Electric Vehicle Charger Connection $0.00 to $2.00 per connection $0.00 to $2.00 per connection 0.0%
Electric Vehicle Charger Connection Overstay $0.00 to $5.00 per hour $0.00 to $5.00 per hour 0.0%
Electric Vehicle Charging $0.23 per kilowatt hour $0.23 per kilowatt hour 0.0%
Service Lateral Connection $1,650.00 each $1,681.00 each 1.9%
Adjustment of labor and materials costs.
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Attachment B: Page 1 of 2
Municipal Fee Schedule Amendments for FY 2024 Partner Agency or Vendor Changed Fees ATTACHMENT B
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Community Services
Fee Title FY 2023 Adopted FY 2024 Proposed %
Change
Justification
48-Hour Cancellation Fee (non-refundable)$25.00 per pet $25.00 per pet 0% Fee set by vendor
A. Domestic Animals (up to 20lbs)$81.00 per pet $81.00 per pet 0%Fee set by vendor
A. Neuter (0lbs - 50lbs)$100.00 per pet $100.00 per pet 0%Fee set by vendor
Adoption Hold Fee $25.00 per pet $25.00 per pet 0%Fee set by vendor
Antibiotic Injection $18.00 per pet $18.00 per pet 0%Fee set by vendor
Attempted Spay Surgery in Previously Spayed
Animal
$38.00 per pet $40.00 per pet 7.5%Change title from “Previously Spayed/Neutered.”
B. Dogs (21lbs to 75lbs)$119.00 per pet $119.00 per pet 0%Fee set by vendor
B. Neuter (51lbs and over)$150.00 per pet $150.00 per pet 0%Fee set by vendor
B. Vehicle Entry - Daily Fee - Vehicle Capacity 10-24
passengers
$30.00 each $30.00 each 0%Fee set by vendor
Bandages $28.00 - $47.00 per pet; $76.00 per pet; $83.00 - $110.00 per
pet
$28.00 - $110.00 per pet 0%Consolidated three fees (Bandages – Paws, Bandages –
Robert Jones, Bandages – Splint) into one ranged fee.
Bordatella $15.00 per pet $15.00 per pet 0%Fee set by vendor
C. Dogs (76lbs and over)$71.00 per pet $71.00 per pet 0%Fee set by vendor
C. Neuter (100 lbs and over)$200.00 per pet $200.00 per pet 0%Fee set by vendor
Canine Training Deposit $75.00 each $75.00 each 0%Fee set by vendor
Cat (Boarding)$20.00 per day $20.00 per day 0%Fee set by vendor
Cockatiels, Parakeets, Chickens, Pigeons, & Doves $10.00 per pet $10.00 per pet 0%Fee set by vendor
Common Procedures - Fluorescein Eye Stain $18.00 each $18.00 each 0%Fee set by vendor
Common Procedures - Flushing Drains $3.00 each $3.00 each 0%Fee set by vendor
Common Procedures - Medical Grooming $87.00 per hour $87.00 per hour 0%Fee set by vendor
Common Procedures - Oral or Topical Treatment $3.00 each $3.00 each 0%Fee set by vendor
Cryptorchid Fee $50.00 - $100.00 per pet $53.00 - $107.00 per pet 7.5%Change title from “Cryptorchid plus Neuter Fee.”
D. Small Animals and Birds $43.00 per pet $43.00 per pet 0%Fee set by vendor
D. Spay (0lbs - 50lbs)$125.00 per pet $125.00 per pet 0%Fee set by vendor
DA2PP (Vaccination)$15.00 per pet $15.00 per pet 0%Fee set by vendor
Deciduous Tooth Extraction $27.00 each $27.00 each 0%Fee set by vendor
Deworming $29.00 per pet $31.00 per pet 7.5%Change title from “Common Procedures – Wormings.”
Dog (Boarding)$20.00 per day $20.00 per day 0%Fee set by vendor
E. Spay (51lbs and over)$175.00 per pet $175.00 per pet 0%Fee set by vendor
Ear Cleaning $35.00 per pet $35.00 per pet 0%Fee set by vendor
Ear Mite Treatment $32.00 per pet $32.00 per pet 0%Fee set by vendor
Exotic Animals $10.00 per pet $10.00 per pet 0%Fee set by vendor
F. Cremation Services - Custom Engraved Plaque Fee $22.00 each $22.00 each 0%Fee set by vendor
F. Spay (100 lbs and over)$225.00 per pet $225.00 per pet 0%Fee set by vendor
Feline Leukemia $15.00 per pet $15.00 per pet 0%Fee set by vendor; change title from “Leukemia.”
Feral TNR Package $55.00 per pet $55.00 per pet 0%Fee set by vendor
Feral/Rescue Own FeLV/FIV Test $16.00 per pet $17.25 per pet 7.5%Change title from “Feral Rescue Own Felv/FIV Test.”
Feral/Rescue Own Vaccine $5.00 per pet $5.00 per pet 0%Change title from “Feral Rescue Own Vaccine.”
Flea Preventative (per dose)$20.00 - $28.00 per pet $20.00 - $28.00 per pet 0%Change title from “Flea Preventative.”
Fluid Therapy - IV Fluids $26.00 each $26.00 each 0%Fee set by vendor
Fluid Therapy - SQ (Cats)$41.00 each $41.00 each 0%Fee set by vendor
Fluid Therapy - SQ (Dogs)$53.00 each $53.00 each 0%Fee set by vendor
FVRCP $15.00 per pet $15.00 per pet 0%Fee set by vendor
Injectable Medication $29.00 each, $41.00 each; $46.00 each; $58.00 each $18.00 - $58.00 each 0%Consolidate from four fees Injections - IM & SQ;
Injections – IV; Injections - IV solu-delta cortef 100mg;
Injections - IV solu-delta cortef 500mg into one ranged
fee).
IV Catheter Placement $58.00 each $62.00 each 7.5%Change title from “Fluid Therapy - IV Catheter plus
Insertion.”
Kitten Package $100.00 per pet $100.00 per pet 0%Fee set by vendor
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Attachment B: Page 2 of 2
Municipal Fee Schedule Amendments for FY 2024 Partner Agency or Vendor Changed Fees ATTACHMENT B
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Labwork - Fecal $29.00 each $29.00 each 0%Fee set by vendor
Labwork - FeLV/FIV Test $35.00 each $35.00 each 0%Fee set by vendor
Labwork - Fungal Culture $35.00 each $37.00 7.5%Change title from Labwork - DTM
Labwork - Heartworm Test $41.00 each $41.00 each 0%Fee set by vendor
Labwork - Parvo Test $41.00 each $44.00 each 7.5%Change title from “Labwork - Cite CPV Test”
Labwork - PCV $17.00 each $17.00 each 0%Fee set by vendor
Labwork - PCV/TP $29.00 each $29.00 each 0%Fee set by vendor
Labwork - Pre-surgical $150.00 per pet $150.00 per pet 0%Fee set by vendor
Labwork - Skin Scraping $24.00 each $24.00 each 0%Fee set by vendor
Labwork - Urine Dipstick $17.00 each $17.00 each 0%Consolidated from two fees: Labwork - Multistick
Urinalysis and Labwork - Azostick or Dextrostick
Late Fee $30.00 per dog $30.00 per dog 0%Fee set by vendor
Late Fee for Spay/Neuter Pickup $25.00 per pet $25.00 per pet 0%Fee set by vendor
Local Anesthetic $35.00 each $37.00 each 7.5%Change title from “Sedation/Anesthesia – Local.”
Long-Acting Topical Ear Medication $60.00 per pet $64.00 per pet 7.5%Change title from “Ear Antibiotics.”
Microchip $25.00 per pet $25.00 per pet 0%Fee set by vendor
Nail Clip $10.00 per pet $10.00 per pet 0%Fee set by vendor
Neuter (Cat)$70.00 per pet $70.00 per pet 0%Fee set by vendor
No-Show Fee (non-refundable)$50.00 per pet $50.00 per pet 0%Fee set by vendor
Oral Prescription Medication $12.00 - $70.00 per medication $13.00 - $75.00 per medication 7.5%Change title from “Common Procedures - Medication
(Rx Fee).”
Puppy Package $100.00 per pet $100.00 per pet 0%Fee set by vendor
Rabbit (Boarding)$20.00 per day $20.00 per day 0%Fee set by vendor
Rabbits (Adoption)$40.00 per pet $40.00 per pet 0%Fee set by vendor
Rabies (Vaccination)$15.00 per pet $15.00 per pet 0%Fee set by vendor
Rabies (Actual Clinic Cost)$6.00 per pet $6.00 per pet 0%Fee set by vendor
Rats, Hamsters, Guinea Pigs, & Mice (Adoption)$10.00 per pet $10.00 per pet 0%Fee set by vendor
Replacement License Tags (Dogs)$5.00 each $5.00 each 0%Fee set by vendor
Rescue Group (Non-Profit) - Cat Neuter $50.00 per pet $50.00 per pet 0%Fee set by vendor
Rescue Group (Non-Profit) - Cat Spay $65.00 per pet $65.00 per pet 0%Fee set by vendor
Rescue Group (Non-Profit) - Dog Spay (over 50 lbs)$125.00 per pet $125.00 per pet 0%Fee set by vendor
Rescue Group (Non-Profit) - Dog Spay (under 50 lbs)$100.00 per pet $100.00 per pet 0%Fee set by vendor
Sedation/Anesthesia - IM $58.00 each $58.00 each 0%Fee set by vendor
Sedation/Anesthesia - IV $82.00 each $82.00 each 0%Fee set by vendor
Small Animal (Reptiles, Birds, etc.) (Boarding)$20.00 per day $20.00 per day 0%Fee set by vendor
Spay (Cat)$85.00 per pet $85.00 per pet 0%Fee set by vendor
Special Medications City cost plus $17.00 service fee City cost plus $18.00 service fee 7.5%Change title from “Special Rx.”
Specialized Feeding $5.00 each $5.00 each 0%Change title from “Common Procedures – Force
Feeding.”
Surgery - Surgical Time/Veterinary Treatment Time $116.00 per hour $116.00 per hour 0%Fee set by vendor
Tapeworm Treatment $17.00 per pet $18.00 per pet 0%Change title from “Droncit Injection (Tapeworms).”
Trap Rental - Deposit $100.00 each $100.00 each 0%Fee set by vendor
Trap Rental (14 day maximum)$5.00 per day $5.00 per day 0%Fee set by vendor
Umbilical Hernia Repair $38.00 - $81.00 per pet $40.00 - $87.00 per pet 7.5%Change title from “Umbilical Hernia.”
Veterinarian Time $160.00 per hour $172.00 per hour 7.5%Change title from “City Veterinarian.”
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FY 2024 PROPOSED BUDGET HEARINGSENTERPRISE FUNDS &INTERNAL SERVICE FUNDS CAPITAL IMPROVEMENT PLANS
Please refer to Project Sections for Page Numbers
May 9, 2023 www.cityofpaloalto.org/budget
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INTERNAL SERVICE FUND PROJECTS
Technology Fund Projects Pg. 593-624
Vehicle Replacement Fund Projects Pg. 625-653
May 9, 2023 www.cityofpaloalto.org/budget
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FY 2024 PROPOSED BUDGET SUMMARY (TECHNOLOGY FUND)
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Major Technology Projects in Progress
• Enterprise Resource Planning (ERP) Phase 2 Updates
•Provide new functionality to improve efficiencies and support new City initiatives
• Council Chambers Redesign
•RFP for design/build to support ADA Compliance and hybrid public meetings
• Computer Aided Dispatch (CAD) Replacement for Public Safety
•RFP to upgrade or replace the current solution in partnership with Mountain View and Los Altos
•Infrastructure Management System
•RFP will be issued for a new Electronic Reporting Management System (ERMS)
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FY 2024 INFORMATION TECHNOLOGY FUND p.593
2024-2028 CIP Proposed Budget Summary
4
FY 2024
Proposed
FY 2025 FY 2026 FY 2027 FY 2028 5-Year Total
Revenues $0.3 M $0.2 M $0.2 M $0.1 M $0.1 M $0.9 M
Expenses $5.4 M $1.7 M $0.2 M $0.1 M $0.1 M $7.5 M
FY 2024 – FY 2028 Information Technology Fund CIP Outlook
New Project:
• Fiscal Year 2025 – IT Data Center Upgrade
Ø The goal is to reduce the footprint of the current datacenter and
reclaim space for IT staff
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FY 2024 VEHICLE REPLACEMENT FUND p.625
2024-2028 CIP Proposed Budget Summary
5
FY 2024
Proposed FY 2025 FY 2026 FY 2027 FY 2028
5-Year
Total
Revenues*$3.9 $3.9 $3.9 $3.9 $3.9 $19.5
Expenses $5.9M $3.5M $3.5M $3.7M $3.7M $20.3M
FY 2024 – FY 2028 Vehicle Replacement Fund CIP Outlook
•FY 2024 includes reappropriated funding ($2.3M) from previous years for
vehicles that still need to be ordered or outfitted
•Continue vehicle replacement program, addressing supply chain issues and
fleet electrification S/CAP goals
•Add 18 passenger and light truck Electric Vehicles to the fleet in the FY 2024
vehicle replacement project, with "Tier 2" option for a fully electric FY2024
project
*Revenue for Vehicle Replacements from other funds appears in the Operating Budget for this Fund
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ENTERPRISE FUND PROJECTS
Public Works Projects Pgs. 317-339; 461-490; 511-546; 625-653
Utilities Projects Pgs. 341-415; 417-433; 435-459; 491-509; 547-589
May 9, 2023 www.cityofpaloalto.org/budget
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COUNCIL CONSIDERATIONS & PUBLIC WORKS ENTERPRISE
PROJECT SUMMARY
7
FY 2024 – FY 2028 Capital Improvement Plan Strategy
•Continue other Airport improvements following completion of 8-year, $36 million
Apron project
•Implement 13 Storm Water Ballot Measure priority projects
•Rebuild and rehabilitate the Regional Water Quality Control Plant (RWQCP), and
begin an update to the 2012 Long Range Facilities Plan
Community Impact
Proposals will continue efforts to improve critical infrastructure at the airport, address
storm drainage deficiencies, and ensure reliable wastewater treatment.
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FY 2024 PUBLIC WORKS - AIRPORT FUND p.317
2024-2028 CIP Proposed Budget Summary
8
FY 2024
Proposed
FY 2025 FY 2026 FY 2027 FY 2028 5-Year
Total
Revenues $0.8M $1.3M $0.9M $2.5M $2.3M $7.8M
Expenses $1.4M $1.7M $1.2M $3.0M $2.7M $10.0M
FY 2024 – FY 2028 Airport Fund CIP Outlook
•With FY 2023 completion of multi-year, $36M apron project, focus on
planning process and smaller projects
•$3.8M Airport Access Road Reconstruction
•$0.5M Automated Weather Observation Station
•Install parking lot EV Chargers and implement Zero Emission Vehicle Fleet
Replacement Program
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FY 2024 PUBLIC WORKS - STORMWATER
MANAGEMENT FUND p.461
2024-2028 CIP Proposed Budget Summary
9
FY 2024
Proposed
FY 2025 FY 2026 FY 2027 FY 2028 5-Year
Total
Revenues $1.2M $0 $0 $0 $0 $1.2M
Expenses $9.9M $3.6M $1.7M $2.3M $2.8M $20.2M
FY 2024 – FY 2028 Stormwater Management Fund CIP Outlook
•Continue program to deliver 13 high priority projects funded by ballot measure
•$3.4M Corporation Way System Upgrades and Pump Station
•$0.6M East Meadow Circle Connection to Adobe Creek Pump Station
•$0.6M East Meadow Drive System Upgrades
•$2.5M West Bayshore Road Pump Station
•$2.4M West Bayshore Road Trunk Line Improvements
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FY 2024 PUBLIC WORKS – WASTEWATER
TREATMENT FUND p.511
2024-2028 CIP Proposed Budget Summary
10
FY 2024
Proposed
FY 2025 FY 2026 FY 2027 FY 2028 5-Year
Total
Revenues $45.1M $62.7M $54.1M $0 $0 $161.9M
Expenses $55.8M $67.2M $59.0M $4.5M $5.0M $191.6M
FY 2024 – FY 2028 Wastewater Treatment Fund CIP Outlook
•Continue delivering existing capital renewal program while commencing a Long-
Range Facilities Plan update
•$56.4M Advanced Water Purification Facility
•$52.1M Headworks Facility Replacement
•$23.6M New Laboratory and Environmental Services Building
•$12.6M Joint Intercepting Sewer Rehabilitation
•$17.9M Outfall Line Construction
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FY 2024 PROPOSED BUDGET SUMMARY (UTILITIES)
11
Community Impact
Utilities has been laying the foundation for the City's sustainability initiatives, and the
community can expect to see some immediate benefits.
•Smart meters will enable more efficient monitoring of energy usage, resulting in cost
savings for residents and businesses as well as a reduction in carbon emissions.
•Using grant opportunities to deploy critical infrastructure projects, providing a boost to the
City's sustainability efforts.
Major Proposed Changes in Enterprise Fund
•Grid modernization project for citywide electrification with potential bond or grant funding
•Fiber-to-the-premises (FTTP) project to deliver high-speed fiber broadband internet
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COUNCIL CONSIDERATIONS & UTILITIES ENTERPRISE PROJECT
SUMMARY
12
FY 2024 – FY 2028 Capital Improvement Plan Strategy
•Large investments anticipated for S/CAP initiatives such as grid modernization, gas
decommissioning studies
•Develop opportunities to coordinate projects such as electrification and fiber
expansion or FTTP
•Maintain or accelerate main replacement schedules to protect reliability of aging
infrastructure
•Invest in efforts to seek alternative funding such as grants
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FY 2024 UTILITIES - ELECTRIC FUND p.341
2024-2028 CIP Proposed Budget Summary
13
FY 2024
Proposed
FY 2025 FY 2026 FY 2027 FY 2028 5-Year
Total
Revenues 26.9M 26.9M 26.9M 26.9M 25.0M 132.4M
Expenses 54.9M 45.1M 63.8M 65.9M 60.7M 290.5M
FY 2024 – FY 2028 Electric Fund CIP Outlook
•Invest resources for grid modernization master plan
•$200-$300M grid modernization project
•$10.5M Foothills Fire Mitigation
•$6.9M Colorado Power Station Equipment Upgrades
•$5.7M Substation Breaker Replacement
•$4.7M Substation Physical Security
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FY 2024 UTILITIES - FIBER FUND p.417
2024-2028 CIP Proposed Budget Summary
14
FY 2024
Proposed
FY 2025 FY 2026 FY 2027 FY 2028 5-Year
Total
Revenues 0.2M 13.2M 0.2M 0.2M 0.2M 14.0M
Expenses 33.4M 0.6M 0.5M 0.5M 0.5M 35.4M
FY 2024 – FY 2028 Fiber Fund CIP Outlook
•$26M dark fiber backbone project;
•$20M and fiber-to-the-premises (FTTP) project
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FY 2024 UTILITIES - GAS FUND p.435
2024-2028 CIP Proposed Budget Summary
15
FY 2024
Proposed
FY 2025 FY 2026 FY 2027 FY 2028 5-Year
Total
Revenues $0.5M $0.5M $0.5M $0.5M $0.5M $2.5M
Expenses $6.9M $7.2M $5.8M $7.8M $5.8M $33.3M
FY 2024 – FY 2028 Gas Fund CIP Outlook
•Invest resources to study the downsizing of gas in anticipation of
changes in future uses
•Begin $10M Gas Main Replacement (GMR) Project #25 in FY 2024
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FY 2024 UTILITIES – WASTEWATER COLLECTION
FUND p.491
2024-2028 CIP Proposed Budget Summary
16
FY 2024
Proposed
FY 2025 FY 2026 FY 2027 FY 2028 5-Year
Total
Revenues 0.5M 0.5M 0.5M 0.5M 0.5M 2.3M
Expenses 2.2M 3.2M 5.2M 3.3M 5.2M 19.0M
FY 2024 – FY 2028 Wastewater Collection Fund CIP Outlook
•Accelerate wastewater main replacement from 1 mile to 2.5 miles beginning in
FY 2026
•Begin construction on $8.6M Wastewater Collection Replacement Project (SSR)
#31 (advanced from FY 2024 to FY2023) to align with Caltrans street
improvement project
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FY 2024 UTILITIES - WATER FUND p.547
2024-2028 CIP Proposed Budget Summary
17
FY 2024
Proposed
FY 2025 FY 2026 FY 2027 FY 2028 5-Year
Total
Revenues 1.4M 1.5M 1.5M 1.5M 1.5M 7.5M
Expenses 26.2M 4.3M 18.9M 4.8M 13.1M 67.3M
FY 2024 – FY 2028 Water Fund CIP Outlook
•Proceed with the $7.4M second to last of six water tank seismic upgrade
or replacement (Park Reservoir)
•Complete construction of $9.6M Water Main Replacement Project
(WMR) #28
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MAY 9, 2023 www.cityofpaloalto.org/budget
FY 2024 PROPOSED BUDGET
HEARINGS
INFRASTRUCTURE AND
ENVIRONMENT SERVICE AREA
Public Works & Utilities Departments
Please refer to Dept Sections for Page Numbers
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2
Infrastructure
&Environment
FY 2023
Adopted
FY 2024
Proposed
%
change
FY 2023
Adopted FTE
FY 2024
Proposed FTE
%
change
General Fund $20.1 M $22.8 M 13.4%50.34 52.19 3.7%
Other Funds $663.8 M $627.7 M (5.4%)403.58 412.90 2.3%
Department
General Fund
Revenue
General Fund
Expenses
General Fund
FTE
All Funds
Revenue
All Funds
Expenses All Funds FTE
Utilities $0 $0 0.00 $413.8M $469.2M 285.66
Public Works $3.7M $22.8M 52.19 $146.5M $181.3M 179.43*
FY 2024 PROPOSED BUDGET SUMMARY (MAY 9)
*This table does not reflect positions in the Capital Improvement Fund nor the Cubberley Property Infrastructure Fund.
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UTILITIES DEPARTMENTELECTRIC, FIBER, GAS, WASTEWATER COLLECTION, AND WATER FUNDS
Operating Pg. 405-472
May 9, 2023 www.cityofpaloalto.org/budget
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1 FY23 reflect rates in effect as of 1/1/23.
2 FY23 37% includes 4/1/22 hydro rate adjuster (HRA) activation 10%, 7/1/22 5% rate increase, 1/1/23 HRA increase 19%;FY24 –5% includes 21% increase,deactivation of HRA.
3 Gas utility rates shown exclude gas market price changes. FY 24 bill forecast with projected market price changes is (-13%).
4 Storm drain fees increase by CPI index annually per approved 2017 ballot measure.
5 Based on a FY 2023 average monthly bill of $369.
FY 2024 RECOMMENDED RATES & 5-YEAR OUTLOOK
4
FY 20231 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028
Electric Utility 2 $22.70 ($4.20)$3.90 $4.10 $4.40 $4.60
37%-5%5%5%5%5%
Gas Utility 3 $2.60 $5.20 $4.90 $3.70 $3.90 $4.10
4%8%7%5%5%5%
Wastewater
$1.30 $4.00 $4.40 $4.80 $4.60 $3.10
3%9%9%9%8%5%
Water Utility
$8.00 $5.90 $4.20 $3.30 $3.40 $5.80
9%6%4%3%3%5%
Refuse
$0.00 $0.00 $1.50 $1.50 $1.60 $1.60
0%0%3%3%3%3%
Storm Drain 4 $0.60 $0.80 $0.70 $0.70 $0.70 $0.80
4%5%4%4%4%4%
Monthly Bill Change 5 $35.20 $11.70 $19.60 $18.10 $18.60 $20.00
11%3%5%5%4%5%
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FY 2024 BUDGET SUMMARY (UTILITIES –ELECTRIC)
Community Impact
Major efforts underway to invest in the electric grid infrastructure to support
electrification such as developing an electric grid modernization plan and obtaining
grants, in addition to ongoing efforts such as launching the new outage management
system and performing a cost of service study.
Major Proposed Changes in Electric Fund
•Budget alignments for the low carbon fuel standard (LCFS) program, which supports
electric vehicle (EV) programs to reduce greenhouse gas (GHG) emissions.
•Recognize $24M one-time revenue from Bureau of Reclamation settlement
•$25M increase in capital expenses for grid modernization project
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FY 2024 DEPARTMENT OUTLOOK
(UTL –ELECTRIC)
•Grid modernization will require heavy investments in
contract services, equipment, and staffing
•Implementation of the electric advanced metering
infrastructure (AMI) will enhance distribution optimization
and distributed energy resources (DER) programs
•Department of Energy (DOE) grants will alleviate some of
the funding constraints of electrification
•Electric Cost of Service Analysis (COSA) to inform on rates
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FY 2024 BUDGET SUMMARY (UTILITIES –FIBER)
Community Impact
December 2022 Council approval to construct a new fiber backbone and start
providing new fiber broadband internet services to the community will significantly
impact the allocation of resources in this fund.
Major Proposed Changes in Fiber Fund
•Add key positions to support the dark fiber network expansion and fiber-to-the-
premises (FTTP) project to provide new fiber broadband internet services to the
community.
•Assistant Director
•Sales & Marketing Manager
•Outside Plant Manager
•Sr. Network Engineer/Architect
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FY 2024 DEPARTMENT OUTLOOK
(UTL –FIBER)
•Add dark fiber in the Foothills to improve City communications
•Invest resources to evaluate cost-sharing construction
opportunities with other CIP projects
•Issue construction bids and proposals related to fiber
backbone expansion and FTTP summer 2023
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FY 2024 BUDGET SUMMARY (UTILITIES -GAS, WASTEWATER, WATER)
Community Impact
The City will need to maintain reserve levels while updating aging infrastructure in spite of
rising costs. Efforts to maintain and update utilities infrastructure must be balanced with
anticipated changes in future demand, such as shifts in usage from implementing S/CAP
initiatives resulting in the phasing out of gas-based consumer end uses.
Major Proposed Changes in Gas, Water, & Wastewater Collection Funds
•Accelerate sewer replacement schedule from 1 to 2.5 miles to replace aging pipes
•Lead and copper testing for water service laterals to comply with new Environmental
Protection Agency (EPA) regulation
•Continue Gas Cross Bore Inspections Program to investigate remaining sewer lateral
inspections
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FY 2024 DEPARTMENT OUTLOOK
(UTL -WGW)
•Invest resources to study the downsizing of gas in anticipation
of changes in future uses
•Continue to maintain a safe and reliable system for delivering
existing services through ongoing inspections and
replacements or upgrades, where necessary
•Obtain alternative funds, such as the DOE grant for natural
gas distribution infrastructure safety and modernization
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PUBLIC WORKS
Operating Pg. 341-403
May 9, 2023 www.cityofpaloalto.org/budget
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FY 2024 BUDGET SUMMARY (PUBLIC WORKS)
Community Impact
FY 2024 budget proposals address staffing levels for maintenance of City facilities and
changes as the new Public Safety Building opens. The proposals also support
electrification of City facilities and appropriate staffing for development plan review.
Major Proposed Changes in General Fund
•Add 1.0 FTE Project Manager
•Add 1.0 FTE Facilities Technician
•Initial funding for City Hall security services when new PSB opens
•Convert 1.0 FTE Engineering Technician III to 1.0 FTE Associate Engineer
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FY 2024 DEPARTMENT OUTLOOK
(PUBLIC WORKS)
•Recover from unprecedented staff vacancies that have
impacted service and project delivery capacity
•Pivot from three years of S/CAP Update work to
implementation and 3-Year Workplan following Council
approval
•Continue implementation of new Tree Protection Ordinance
while evaluating potential modifications
•Continue delivery of 2014 Council Infrastructure Plan capital
projects, with opening of Public Safety Building and completion
of Fire Station 4 design
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FY 2024 BUDGET SUMMARY (PUBLIC WORKS –OTHER FUNDS)
Community Impact
Proposals address staffing needed for increased workloads at the RWQCP, and to
efficiently deliver landfill maintenance and fleet maintenance functions.
Major Proposed Changes in Enterprise and Internal Service Funds
•Add 1.0 FTE Project Engineer and 1.0 Engineer in the Wastewater Treatment Fund
•Add a 1.0 FTE Chemist in the Wastewater Treatment Fund
•Convert a 1.0 FTE Street Maintenance Assistant in the Refuse Fund to a 1.0 FTE
Landfill Technician
•Convert a 0.48 FTE Maintenance Assistant in the Vehicle Replacement and
Maintenance Fund to a 1.0 FTE Equipment Maintenance Service Person
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FY 2024 DEPARTMENT OUTLOOK
(PW-OTHER FUNDS)
•Make progress on the Airport Long Range Facilities and
Sustainability Plan and implement unleaded aviation fuel
•Negotiate and complete Valley Water agreements for the
purified water facility at LATP Area B
•Renew focus on flood protection and
preparedness:Newell Road Bridge, JPA Reach 2 projects, winter
preparation
•Continue implementation of City fleet electrification through
vehicle replacements and charger infrastructure deployment
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SUSTAINABILITY AND CLIMATE ACTION PLAN
Office of Transportation (OOT) Operating Budget Page 180,
Public Works (PW) Operating Budget Page 352,
Utilities (UTL) Operating Budget Page 447
May 9, 2023 www.cityofpaloalto.org/budget
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FY 2024 BUDGET SUMMARY (Sustainability and Climate Action Plan)
Community Impact
The FY 2024 budget requests will enable the City to begin preparing the electric and gas systems to accommodate
widespread vehicle and building electrification and will improve facilities to enable more bicycling and walking.
The City will be able to lead by example by implementing electrification in City facilities.
Major Proposed Changes to Various Funds
17
Fund Description Cost Council Priority
General Staffing for bicycle and pedestrian projects and
Caltrain crossings (1.0 Sr Planner)
$196,000 (ongoing)Climate (m)
Electric Grid Modernization $25M (ongoing, varies)Climate (p)
Gas Gas decommissioning studies and
implementation –contract costs + staffing
$250,000 (one time) +
$150,000 (ongoing)
Climate (p)
Various
Funds
Staffing for City facility electrification (1.0
Project Manager)
General Fund expenditure
$72,000 per year
Climate (S/CAP work plan)
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FUTURE PROGRAM OUTLOOK (Sustainability and Climate Action Plan)
18
Additional requests may be forthcoming in FY 2025 budget or as budget amendment
ordinances for individual programs based on 2023 planning efforts. Potential areas include:
•Expansion of existing electrification programs, expansion of program sales and marketing
efforts, new programs
•Mobility: new program proposals (e.g. on-demand transit program extension) and plan
implementation (e.g. Bicycle / Pedestrian Plan, Vision Zero)
•City facility electrification project budgets
•Water/wastewater proposals related to recycled water or other new sources
•Sea Level Rise Plan implementation and/or flood protection efforts
•Zero waste, urban canopy, low carbon construction
•Green stormwater infrastructure plan implementation
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May 9, 2023 www.cityofpaloalto.org/budget
FY 2024 PROPOSEDBUDGET HEARINGS
INTERNAL SERVICE DEPT &
COUNCIL APPOINTED OFFICERS
Please refer to Dept Sections for Page Numbers
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SERVICE AREA SUMMARY
2
FY 2023
Adopted
FY 2024
Proposed
%
change
FY 2023
Adopted FTE
FY 2024
Proposed FTE
%
change
General Fund $25.7 M $27.1 M 5.3%90.09 90.84 0.8%
Other Funds*$145.0 M $156.8 M 8.2%36.64 38.64 5.5%
Department
General Fund
Revenue
General Fund
Expenses
General Fund
FTE
City Attorney $1,924,847 $4,378,420 9.50
City Auditor $452,858 $986,484 0.00
City Clerk $647,952 $1,490,921 5.00
City Council $157,106 $439,030 7.00
City Manager $1,552,991 $4,617,595 12.00
Administrative Services $5,531,194 $10,539,018 40.63
Human Resources $1,958,185 $4,600,157 16.71
Information Technology $0 $0 0.00
*Other Funds include printing &
mailing services, benefit, insurance,
and workers' compensation funds
and exclude debt service. Additional
information is available in the
Internal Service Fund and Employee
Information sections.
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Administrative Services Department
Operating Pg. 181-201
May 9, 2023 www.cityofpaloalto.org/budget
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FY 2024 BUDGET SUMMARY (ADMINISTRATIVE SERVICES)
Community Impact
Enhance the department’s ability to provide responsive and thorough customer
service to the community and other City departments.
Major Proposed Changes in General Fund
•Add 0.50 FTE Administrative Support to support technical and management staff
across multiple divisions
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FY 2024 DEPARTMENT OUTLOOK (ASD)
5
•Administer the Roth Building lease; ensure tenant work letter
compliance together with Public Works
•Develop lease guidelines for current/new tenants at Cubberley
•Secure a new tenant at 445 Bryant Street (formerly Form Fitness)
•Assist with redevelopment of LATP site
•Implement the City’s Business Tax (Measure K)
•Continue review of purchasing and accounting policies and
business processes
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Human Resources Department
Operating Pg. 247-266; 481-490
May 9, 2023 www.cityofpaloalto.org/budget
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FY 2024 BUDGET SUMMARY (HUMAN RESOURCES)
Community Impact
Enhance the Department’s ability to support recruitment efforts, the City’s Positive
Work Environment Initiative, and customer service. These improvements will focus on
providing a welcoming and supportive City culture and purpose to serve the
community.
Major Proposed Changes in General Fund
•Reclassification of 2.00 FTE HR Technicians to 2.00 FTE HR Representatives
•Adding 1 citywide Customer Service Representative, 0.75 FTE Administrative
Assistant
•New Employee Orientation Funding
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FY 2024 DEPARTMENT OUTLOOK (HR)
8
•Continue to Expand the Expedited Hiring Process Model
Provides additional recruitment support in collaboration with Departments
•Focus on Positive Work Environment Initiative
The City’s goal to position Palo Alto as an employer of choice includes strengthening the
City work environment, key to recruitment and retention
•Expand the City’s Management Training Program to offer an advanced leadership
academy
•Continue to develop employee learning opportunities to enhance Workforce
Development
•Explore integration with the City’s ERP system and the Department’s online
solutions in partnership with the Information Technology Department
•Launch a new self-service portal for employees to make changes to their benefits
during open enrollment
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Information Technology
Operating Pg. 267-279
May 9, 2023 www.cityofpaloalto.org/budget
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FY 2024 BUDGET SUMMARY (INFORMATION TECHNOLOGY)
Community Impact
Provide technical guidance and innovative solutions to enhance IT’s ability
to support City department’s in providing responsive and thorough
customer service to the community.
Major Proposed Changes in IT Fund
•Add 1.00 Management Analyst
•Increase GIS Modernization Budget
•Restoration of Computer Refresh
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FY 2024 DEPARTMENT OUTLOOK (IT)
•Continue working on GIS initiatives
•Strengthen our cybersecurity posture
•Complete IT Risk Assessment project
•Upgrading Citywide phone system
•Data Governance Framework
•Upgrade IT Infrastructure
•Public Safety Building IT infrastructure
•Public Safety Mobile Device Computer replacements
•Enterprise Resource Planning improvements
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City Attorney’s Office
Operating Pg. 119-128
May 9, 2023 www.cityofpaloalto.org/budget
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Community Impact
Additional attorney resource supports S/CAP, capital projects, and other complex legal
support needs. Investigations contingency replaces ad hoc approach used in prior years
to fund legally-required work.
Major Proposed Changes in General Fund
•Added 0.50 FTE Deputy City Attorney to enhance organizational legal support
•Reallocated 1.00 Assistant City Attorney to Utilities to accurately reflect
work performed
•Added $250,000 contingency for department personnel investigations if needed
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FY 2024 BUDGET SUMMARY (CITY ATTORNEY’S OFFICE)
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FY 2024 DEPARTMENT OUTLOOK (ATTORNEY)
•Support Council Housing priority through Zoning Code amendments,
legislation, financing and public/private agreements.
•Support economic development initiatives and programs as directed by
Council.
•Legal review and advice on options, challenges and alternatives to
accelerate a wide variety of new and expansive S/CAP and electrification
proposals.
•Support capital program including RWQCP, recycled water,SF Creek
projects, Fiber and more.
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City Auditor's Office
Operating Pg. 129-136
May 9, 2023 www.cityofpaloalto.org/budget
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FY 2024 BUDGET SUMMARY (CITY AUDITOR’S OFFICE)
Community Impact
The City appointed Adriane McCoy (Baker Tilly) on April 24, 2023 to serve as the City
Auditor (CMR # 2304-1295)
Major Proposed Changes in General Fund
•The budget for services from Baker Tilly does not have any significant changes to the
FY 2024 budget.
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FY 2024 DEPARTMENT OUTLOOK (AUDITOR)
•Fulfill the mission of the Office of the City Auditor,
which furthers the City Council’s commitment to internal
auditing,transparency,and accountability in government.
•The annual budget accounts for annual external
audit services,including the City’s audited financials,single
audit services,and other initiatives.
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City Clerk’s Office
Operating Pg. 137-146
May 9, 2023 www.cityofpaloalto.org/budget
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FY 2024 BUDGET SUMMARY (CITY CLERK’S OFFICE)
Community Impact
Continuity of services with growth and retention of qualified personnel
Major Proposed Changes in General Fund
•Reclasses 1.0 FTE Deputy City Clerk to 1.0 FTE Assistant City Clerk. The Office would
consist of a City Clerk, two Assistant City Clerks and two administrative positions.
•Additional staff training and professional development to improve recruitment, training,
and retention .
•Restores funding for annual boards, committees, and commissions awards and service
recognition celebrations.
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FY 2024 DEPARTMENT OUTLOOK (CLERK)
•Continued focus on innovative meeting management strategies to
increase public participation and promoting transparency,
accountability,and effective service delivery.
•Revise record policies and management processes and train all staff on
public records creation,management,and transparency.
•Continue to identify ways to increase community engagement
opportunities with the public.
•Assist with building workflows and archiving structure for all city
contracts.
•Identification of processes that would automate the release of routine
disclosable city records for increased transparency.
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City Council
Operating Pg. 147-151
May 9, 2023 www.cityofpaloalto.org/budget
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FY 2024 BUDGET SUMMARY (CITY COUNCIL OFFICE)
Community Impact
Restore service levels for Council/Community engagement with minimal impacts on
overall City finances.
Major Proposed Changes in General Fund
•Restoration of prior travel, meetings, and special events funding
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FY 2024 DEPARTMENT OUTLOOK (CCO)
•The City Council will continue to provide leadership and management
to the City government organization while working with the Council
Appointed Officers Offices to maintain and enhance Palo Alto’s
quality of life.
•Continued Focus and Investment on Council Priorities
•Economic Recovery & Transition
•Housing for Social and Economic Balance
•Community Health and Safety
•Climate Change –Protection and Adaptation
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City Manager's Office
Operating Pg. 153-167
May 9, 2023 www.cityofpaloalto.org/budget
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FY 2024 BUDGET SUMMARY (CITY MANAGER'S OFFICE)
Community Impact
The CMO is maintaining service levels with this year's budget proposal.
Major Proposed Changes in General Fund
•None in proposed budget
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FY 2024 DEPARTMENT OUTLOOK (CMO)
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•Provide support and coordination on housing and services for
the unhoused.
•Adopt + implement an economic development strategy and
further partnerships with businesses.Develop + lead
workforce development, retention and hiring practices.
•Lead community engagement programs.
•Initiate Measure K & L implementation with community.
•Advance race and equity and inclusive opportunities.
•Implement S/CAP work plan and facilitate sustainability goals.
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FINANCE COMMITTEE MEETING
5/9/2023
[ ] Placed Before Meeting
[X] Received at Meeting
City of Palo Alto
MEMORANDUM
To: Finance Committee
Date: May 9, 2023
SUBJECT: Agenda Item #6: Additional Information Requested by Finance Committee
This memo includes information requested by the Finance Committee at the May 5, 2023 Budget Hearing
to provide additional context and/or data points of reference to aid in budget deliberations. There are
also several Parking Lot and Tier 2 items that needed additional clarification after discussions with the
Finance Committee at their meeting.
AGENDA ITEM #1 FISCAL YEAR 2024 BUDGET PROCESS OVERVIEW & NON-DEPARTMENTAL
Pension Trust Fund Contributions
In January 2017 the City Council authorized the establishment of a Pension Trust Fund with the Public
Agency Retirement Service (PARS) (surplus funds - 1 savings or excess revenues). In October 2018, the City
Council revised to more conservative normal cost calculations for pension benefits and a transfer these
funds (“supplemental”) funding beyond CalPERS actuarial determined contribution levels to the Pension
Trust Fund (CMR 97402). This practice was memorialized in a Retiree Benefit Funding Policy (formerly
Pension Funding policy) (CMR 117223 as modified by CMR 2212-05154). This policy also stipulates
additional one-time contributions if excess revenues or unspent savings are available. Annual
contributions to the Pension Trust fluctuate – a history of these contributions across all funds is provided
in the table below.
Contribution
(Baseline)
Contribution
(One-time)*
Total
Contribution
City
Discount Rate
CalPERS
Discount Rate
FY 2017 $- $2.1M $2.1M - 7.5%
FY 2018 $- $3.4M $3.4M - 7.5%
FY 2019 $6.0M $2.0M $8.0M 6.2% 7.375%
FY 2020 $6.2M $7.6M $13.8M 6.2% 7.25%
FY 2021 $5.0M - $5.0M 6.2% 7.0%
1 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports-cmrs/year-
archive/2017/7553.pdf
2 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports-cmrs/year-
archive/2018/9740.pdf
3 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports-cmrs/year-
archive/2020-2/id-11722.pdf
4 https://cityofpaloalto.primegov.com/Portal/viewer?id=1663&type=0
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Contribution
(Baseline)
Contribution
(One-time)*
Total
Contribution
City
Discount Rate
CalPERS
Discount Rate
FY 2022 $5.1M $3.9M $9.0M 6.2% 7.0%
FY 2023 (est.) $7.6M $5.5M $13.1M 5.8% 7.0%
FY 2024 (est.) $13.1M - $13.1M 5.3% 6.8%
TOTAL $45.9M $21.6M $67.5M
* Includes one-time contributions from the General Fund Budget Stabilization Reserve (BSR) and
payments from other funds to maintain similar contribution levels. Approximately 65% of contributions
are from the General Fund.
AGENDA ITEM #2 COMMUNITY & LIBRARY SERVICES
Human Services Resource Allocation Process (HSRAP) Funding
As discussed during the Finance Committee meeting on May 5, funding levels from HSRAP have not been
tied to a percentage of General Fund budgeted expenditures. Historical funding levels for this program
are included in the chart below detailing the total budgeted City expenditures for General Human Service
Contracts, HSRAP funding, HSRAP Contingency Funding, and additional one-time HSRAP funding
allocations.
• General Human Services: Annual entitlements to Avenidas, Palo Alto Community Child Care
(PACCC); more recently includes Youth Community Services (YCS) and Youth Connectedness
Initiative (YCI).
• HSRAP: Annual grant funding for non-profits which is distributed through the Human Services
Resources Allocation Process (HSRAP) on a two-year cycle. A more detailed history is provided in
the chart below.
• One-Time HSRAP: Additional HSRAP funding that was allocated on a one-time basis for
extenuating circumstances such as COVID-19 Recovery.
• HSRAP Contingency: A reserve set aside annually to be used for emerging or unexpected
community services needs throughout the year.
General
Human
Services
HSRAP
One-Time
HSRAP
HSRAP
Contingency
Total
FY 2001 852,744 386,245 - - $1,238,989
FY 2002 878,326 433,254 - - $1,311,580
FY 2003 904,676 444,862 - - $1,349,538
FY 2004 943,018 335,835 - - $1,278,853
FY 2005 943,018 375,835 - - $1,318,853
FY 2006 918,949 331,453 - - $1,250,402
FY 2007 918,949 331,453 - - $1,250,402
FY 2008 935,249 300,453 - - $1,235,702
FY 2009 868,444 300,453 - - $1,168,897
FY 2010 825,022 285,430 - - $1,110,452
FY 2011 825,022 285,430 - - $1,110,452
FY 2012 809,715 300,737 - - $1,110,452
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General
Human
Services
HSRAP
One-Time
HSRAP
HSRAP
Contingency
Total
FY 2013 809,715 300,737 - - $1,110,452
FY 2014 881,950 355,324 - - $1,237,274
FY 2015 890,583 357,215 118,380 50,000 $1,416,178
FY 2016 913,738 436,659 - 50,000 $1,400,397
FY 2017 937,495 448,013 - 50,000 $1,435,508
FY 2018 960,933 347,654 155,559 50,000 $1,514,146
FY 2019 1,226,581 515,793 - 50,000 $1,792,374
FY 2020 1,267,592 535,908 - 50,000 $1,853,500
FY 2021 1,169,907 549,306 - 50,000 $1,769,213
FY 2022 1,169,907 549,306 200,000 50,000 $1,969,213
FY 2023 1,216,943 622,377 - 50,000 $1,889,320
FY 2024* 1,275,291 651,035 - 50,000 $1,976,326
* FY 2024 amount excludes $50,000 included in FY24 Proposed ($100,000 total over two years) and additional funding of
$150,000 recommended by the Finance Committee at the May 5 meeting, as these amounts remain unallocated.
Note: FY 2001 General Fund Budget was $108.8 million and in FY 2023, was $247.4 million.
The graph below reflects the History of HSRAP Funding allocated for grants through the HSRAP program.
These annual amounts do not include funding for Avenidas and Palo Alto Community Child Care in order
to provide a more accurate comparison to the current funding amount.
Parking Lot/Tier 2: Art Center Positions Recommended Revisions: $171,000 ongoing
The Committee requested prioritization of staffing on Tier 2 for support and volunteer staffing in
Community Services Department. Instead of adding funding for Exhibit Installation or Visitor Services, staff
recommends adjusting the current Tier 2 Art Center proposals as follows:
• Reduce the Palo Alto Art Center Exhibit Installation Crew from 1.0 FTE to 0.48 FTE,
• Reduce the Arts Center Program Visitor Services Staffing from 1.0 FTE to 0.75 FTE, and
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• Combine these into one proposal.
This proposal ($171,000 ongoing) costs more than adding funding for either Exhibit Installation or Visitor
Services, but it would provide vital staffing restorations in two areas at the Art Center and provide
additional support to the Public Art Program to increase efficiencies and meet community demand for
visual arts.
These additions would allow the Art Center to restore hours to pre-pandemic public open hours, providing
exhibition access, staff access for rental reservations on Sundays, and much-needed family workshops on
Sundays (note, this would generate $10,000 annually in revenue). These additions would also allow the
Department to hire temporary employees for the Art Center’s exhibition installations and provide support
for the Public Art Program, hanging works from the Art in Public Places collection, performing regular
maintenance duties, and supporting temporary installations and events such as CODE:ART.
Annual Cost to Manage Library Branches and Number of Patrons Served
Many patrons use more than one branch for physical materials. Although physical materials do have a
“home” branch location, all physical materials are accessible to patrons at any branch – patrons may place
holds on materials available systemwide and pick up at their preferred branch. Digital materials (ebook,
eaudio, streaming, etc.) is not tracked per branch even if the patron is using a digital service while sitting
in a branch.
Both circulation and visitor data is provided as per hour to more accurately compare library usage in FY
2023 to pre-pandemic levels in FY 2019. Open hours in FY 2023 have slowly expanded over the year, with
COVID subsiding and increased hiring. The authorized 10,452 open hours for FY 2023 is still pending due
to the Mitchell Park branch not yet open on Sundays as a result of hiring lead-times.
LIBRARY SERVICES Pre-pandemic (FY19)a Post-pandemic (FY23)
Staffing (FTE) 62.58 55.5 b
Open hours 13,520 10,452 c
Programming events 1,208 670 d
Annual circulation 1,470,551 1,222,484 d
Circulation per open hour 109 139 d
LIBRARY BRANCH VISITORS FY19 Visitor per hour FY23 Visitor per hour d
Rinconada Library 72 42
Children's Library 33 24
Mitchell Park Library 145 167
College Terrace Library 31 12
Downtown Library 48 25
Total systemwide 329 270
a Actual numbers from a 12-month year in FY 2019
b Budgeted - As of May 2023, 19 positions (13.4 FTE) are vacant.
c Budgeted - Not yet achieved due to Mitchell Park branch not yet open on Sun
due to hiring lead-times.
d Projected based on 10 months of data in FY 2023
days
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AGENDA ITEM #3 PLANNING & TRANSPORTATION SERVICES
Palo Alto Transportation Management Authority (PATMA) Expansion and Pass Distribution
The City has an annual contract with the Palo Alto Transportation Management Association (PATMA) to
reduce the number of single occupancy commuters in the downtown area by providing program
administration services including but not limited to outreach, transit pass distribution, and transit pass
monitoring. Currently, the FY 2024 budget recommends $200,000 in the University Avenue Parking Fund
for the PATMA, and as part of their work PATMA donates free transit passes to downtown businesses
only. While PATMA could provide program administration services outside of the downtown area, those
services would have to be covered by a different funding source, because the University Avenue Parking
Funds are limited by policy to services in the downtown business district. In order to expand the PATMA
services citywide in FY 2024, staff recommends that the total amount of the contract with PATMA not
change; however, a portion of the contract should be funded from the General Fund. Based on the
assumption that administrative costs for non-downtown areas would be lower because those areas have
fewer employers, staff estimates that $25,000 would cover the administrative costs for work beyond
downtown. Staff’s recommendation is to shift $25,000 of the existing $200,000 contract from the
University Avenue Parking Fund to the General Fund.
Parking Lot/Tier 2: Housing ad hoc Committee
On January 28, 2022, the City Council held its annual retreat to approve the 2023 Council Priorities and
directed staff to return with objectives to advance these priorities (CMR 2301-0791). On February 12,
2023, the Council approved an objective to establish an ad hoc committee on housing (CMR 2302-0910).
This committee was recently established. On May 5, 2023, the Finance Committee placed direction for
the housing ad hoc committee to examine the coordinated area plan process in the parking lot. Staff
have noted this direction and will follow up accordingly. There is no identified resource impact to this
action, therefore staff recommend this item be removed from parking lot/resource allocation
deliberations.
Parking Lot/Tier 2: Downtown Housing Plan
The Planning and Development Services Department recommends the Finance Committee consider
funding tier 2 proposal “Expand housing opportunities through the initiation of a Downtown Housing Plan:
approval of project funding and a consultant contract (formerly HSEB10)” ($550,000, one-time). The
Downtown Housing Plan is currently underway, and staff is in the process of reviewing proposals and
evaluating scopes. Funding is needed to augment the $800,000 in grant funding and $150,000 per year
for four years based on the initial results from a public procurement solicitation (RFP). Project costs may
escalate up to $1.4 million based on the RFP responses requiring additional funding of up to $550,000 to
complete this project (average response cost was $1.1 million for a minimum cost increase of $300,000).
Current grant funds expire in 2025 though if work extends beyond that period, staff will apply for an
extension. Should this project not be completed, the City is not at risk of refunding grant funds already
spent, however, the City would need to return any unspent portion. If additional funding is not approved
in the FY 2024 operating budget, the Downtown Housing Plan will no longer be pursued. Alternatively,
upon completion of the procurement process, staff can concurrently return to Council for contract
approval and the corresponding budget appropriation in fall 2023.
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5/9 AGENDA ITEM #1 INFRASTRUCTURE AND ENVIRONMENT: CAPITAL IMPROVEMENT PROGRAM,
CAPITAL FUND PROJECTS
AGENDA ITEM #4 PUBLIC SAFETY SERVICES
Canine Unit Funding Detail
The Police Department’s funding for the City’s Canine Unit (two canines) is $15,000 budgeted in the
General Fund and spread across several budget categories (supplies and materials and general expenses)
for animal care and training. Approximately $10,000 is for monthly ongoing maintenance training, which
is budgeted in the general expense category in the training budget of the Personnel and Training division.
The other $5,000 is funded in supplies and materials for costs such as veterinary care, kennel services,
and food. Over the last six years, donors have provided designated funds for purchasing canines when
needed.
Two Police Officers from the Field Services Division (Patrol) are designated as Canine Officers in addition
to their normal patrol duties on one of the daily patrol teams. These Officer positions are budgeted like
other Patrol positions, apart from any overtime they may incur as a result of the training required for their
Canine Unit designation. Overtime for training averages approximately 4 hours per month, approximately
$5,000 annually.
Cubberley Custodial Costs
The Cubberley Fund has approximately $0.9 million in operating and maintenance costs in FY 2024, which
includes salaries and benefits and funding for landscaping services, fire sprinkler inspections and repair,
parking lot sweeping, and supplies and equipment. To zero in on the janitorial costs, it is approximately
$0.2 million of the $0.7 million in operating and maintenance salaries and benefits in this fund. The
majority of janitorial costs were shifted from the General Fund to the Cubberley Maintenance Fund in FY
2019 as part of CMR 99255. This implemented direction from the City Council to find $4.0 million in
General Fund savings to fund a $4.0 million transfer to the Pension 115 Trust Fund in FY 2019.
Pursuant to Section 8 of the 7/1/2020 Cubberley lease agreement, the City’s maintenance obligations for
both the Palo Alto Unified School District (PAUSD) owned and City owned portions of Cubberley include
all interior and exterior work and common areas of the property, janitorial, pest control, plumbing, fire
sprinkler, sewage, HVAC, roof, electrical and lighting facilities, irrigation systems, fences, landscaping, and
litter collection and removal. The lease requires PAUSD to reimburse their prorata share of these costs to
the City within 30 days of receipt of invoice from the City. PAUSD’s original prorata share was 41.19% of
the PAUSD owned portion of Cubberley, but increased to 53.12%, effective April 16, 2022, when the City
surrendered the temporary JMZ Building back to PAUSD.
Kiely Nose Ed Shikada
Director of Administrative Services City Manager
5 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports-
cmrs/year-archive/2018/9925.pdf
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